EX-99.2 3 axsex99-2.htm THIRD QUARTER 2014 INVESTOR FINANCIAL SUPPLEMENT

Q3 2014 Financial Supplement

AXIS Capital Holdings Limited

INVESTOR FINANCIAL SUPPLEMENT

THIRD QUARTER 2014

AXIS Capital Holdings Limited

92 Pitts Bay Road

Pembroke HM 08 Bermuda

Contact Information:

Linda Ventresca

Investor Relations

441 405 2727

investorrelations@axiscapital.com

Website Information:

www.axiscapital.com

This report is for informational purposes only. It should be read in conjunction with the documents that we file with the Securities and Exchange Commission pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934.

AXIS Capital Holdings Limited

FINANCIAL SUPPLEMENT TABLE OF CONTENTS

		Page(s)
Basis of Presentation		i - iii
I. Financial Highlights		1
II. Income Statements
a. Consolidated Statements of Income - Quarterly		2
b. Consolidated Statements of Income - Year to Date		3
c. Consolidated Segment Data		4
d. Gross Premium Written by Segment by Line of Business		5
e. Segment Data - Quarterly		6-7
f. Net Investment Income - Quarterly and Year to Date		8
III. Balance Sheets
a. Consolidated Balance Sheets		9
b. Cash and Invested Assets:
•    Cash and Invested Assets Portfolio		10
•    Cash and Invested Assets Composition - Quarterly		11
•    Geographic Distribution of Fixed Maturities and Equities		12
•    Corporate Debt Composition		13
•    Ten Largest Corporate Debt Holdings		14
•    Mortgage-Backed and Asset-Backed Securities Composition		15
c. Reinsurance Recoverable Analysis		16-17
IV. Losses Reserve Analysis
a. Paid to Incurred Analysis		18
b. Paid to Incurred Analysis by Segment		19
c. Paid to Incurred Analysis by Segment - Quarterly		20-21
d. Net Probable Maximum Losses to Certain Peak Industry Catastrophe Exposures		22
V. Share Analysis
a. Earnings Per Common Share Information - As Reported, GAAP		23
b. Earnings Per Common Share Information and Common Share Rollforward - Quarterly		24
c. Diluted Book Value Per Common Share Analysis		25
VI. Non-GAAP Financial Measures
a. Operating Income and Diluted Tangible Book Value Per Common Share		26
b. Adjusted Group Results		27
c. Adjusted Reinsurance Segment Results		28
d. Use of Non-GAAP Financial Measures		29

AXIS Capital Holdings Limited

BASIS OF PRESENTATION

DEFINITIONS AND PRESENTATION

Unless otherwise noted, all data is in thousands, except for per share amounts and ratio information.

• All financial information contained herein is unaudited, except for the consolidated balance sheet at December 31, 2013.

• Amounts may not reconcile exactly due to rounding differences.

• NM - Not meaningful; NA - Not applicable

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

Statements in this presentation that are not historical facts, including statements regarding our estimates, beliefs, expectations, intentions, strategies or projections, may be “forward-looking statements” within the meaning of the U.S. federal securities laws, including the Private Securities Litigation Reform Act of 1995. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the United States securities laws. In some cases, these statements can be identified by the use of forward-looking words such as “may,” “should,” “could,” “anticipate,” “estimate,” “expect,” “plan,” “believe,” “predict,” “potential,” “intend” or similar expressions. Our expectations are not guarantees and are based on currently available competitive, financial and economic data along with our operating plans. Forward-looking statements contained in this presentation may include, but are not limited to, information regarding our estimates of losses related to catastrophes and other large losses, measurements of potential losses in the fair market value of our investment portfolio, our expectations regarding pricing and other market conditions, our growth prospects, and valuations of the potential impact of movements in interest rates, equity securities' prices, credit spreads and foreign currency rates.

Forward-looking statements only reflect our expectations and are not guarantees of performance. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements. We believe that these factors include, but are not limited to, the following:

• the occurrence and magnitude of natural and man-made disasters,

• actual claims exceeding our loss reserves,

• general economic, capital and credit market conditions,

• the failure of any of the loss limitation methods we employ,

• the effects of emerging claims, coverage and regulatory issues, including uncertainty related to coverage definitions, limits, terms and conditions,

• the failure of our cedants to adequately evaluate risks,

• inability to obtain additional capital on favorable terms, or at all,

• the loss of one or more key executives,

• a decline in our ratings with rating agencies,

• loss of business provided to us by our major brokers,

• changes in accounting policies or practices,

• the use of industry catastrophe models and changes to these models,

• changes in governmental regulations,

• increased competition,

• changes in the political environment of certain countries in which we operate or underwrite business,

• fluctuations in interest rates, credit spreads, equity securities' prices and/or currency values, and

• the other factors set forth in our most recent report on Form 10-K, Form 10-Q and other documents on file with the Securities and Exchange Commission.

We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

i

AXIS Capital Holdings Limited

BASIS OF PRESENTATION

BUSINESS DESCRIPTIONS

INSURANCE SEGMENT

Our insurance segment offers specialty insurance products to a variety of niche markets on a worldwide basis. The following are the lines of business in our insurance segment:

Property: provides physical loss or damage, business interruption and machinery breakdown coverage for virtually all types of property, including commercial buildings, residential premises, construction projects and onshore energy installations. This line of business consists of both primary and excess risks, some of which are catastrophe-exposed.

Marine: provides coverage for traditional marine classes, including offshore energy, cargo, liability, recreational marine, fine art, specie, hull and war. Offshore energy coverage includes physical damage, business interruption, operators extra expense and liability coverage for all aspects of offshore upstream energy, from exploration and construction through the operation and distribution phases.

Terrorism: provides coverage for physical damage and business interruption of an insured following an act of terrorism.

Aviation: provides hull and liability and specific war coverage primarily for passenger airlines but also for cargo operations, general aviation operations, airports, aviation authorities, security firms and product manufacturers.

Credit and Political Risk: provides credit and political risk insurance products for banks and corporations. Coverage is provided for a range of risks including sovereign default, credit default, political violence, currency inconvertibility and non-transfer, expropriation, aircraft non-repossession and contract frustration due to political events. The credit insurance coverage is primarily for lenders seeking to mitigate the risk of non-payment from their borrowers in emerging markets. For the credit insurance contracts, it is necessary for the buyer of the insurance (most often a bank) to hold an insured asset (most often an underlying loan) in order to claim compensation under the insurance contract.

Professional Lines: provides coverage for directors’ and officers’ liability, errors and omissions liability, employment practices liability, fiduciary liability, crime, professional indemnity and other financial insurance related coverages for commercial enterprises, financial institutions and not-for-profit organizations. This business is predominantly written on a claims-made basis.

Liability: primarily targets primary and low/mid-level excess and umbrella commercial liability risks in the U.S. excess and surplus lines markets. Target industry sectors include construction, manufacturing, transportation and trucking and other services. We also target middle to high excess liability business in the London and Bermuda wholesale markets and primary and excess business in the Canadian market place.

Accident and Health: includes accidental death, travel insurance and specialty health products for employer and affinity groups, as well as accident and health reinsurance for catastrophic or per life events on a quota share and/or excess of loss basis, with aggregate and/or per person deductibles.

ii

AXIS Capital Holdings Limited

BASIS OF PRESENTATION

BUSINESS DESCRIPTIONS (CONTINUED)

REINSURANCE SEGMENT

Our reinsurance segment provides non-life reinsurance to insurance companies on a worldwide basis. The following are the lines of business in our reinsurance segment:

Catastrophe: provides protection for most catastrophic losses that are covered in the underlying insurance policies written by our cedants. The exposure in the underlying policies is principally property exposure but also covers other exposures including workers compensation, personal accident and life. The principal perils in this portfolio are hurricane and windstorm, earthquake, flood, tornado, hail and fire. In some instances, terrorism may be a covered peril or the only peril. We underwrite catastrophe reinsurance principally on an excess of loss basis.

Property: provides coverage for property damage and related losses resulting from natural and man-made perils contained in underlying personal and commercial policies. While our predominant exposure is to property damage, other risks, including business interruption and other non-property losses, may also be covered when arising from a covered peril. While our most significant exposures typically relate to losses from windstorms, tornadoes and earthquakes, we are also exposed to other perils such as freezes, riots, floods, industrial explosions, fires, hail and a number of other loss events. We assume business on both a proportional and excess of loss basis.

Professional Lines: covers directors’ and officers’ liability, employment practices liability, medical malpractice, professional indemnity, environmental liability and miscellaneous errors and omissions insurance risks. The underlying business is predominantly written on a claims-made basis. Business is written on both a proportional and excess of loss basis.

Credit and Surety: consists of reinsurance of trade credit insurance products and includes both proportional and excess of loss structures. The underlying insurance indemnifies sellers of goods and services in the event of a payment default by the buyer of those goods and services. Also included in this line of business is coverage for losses arising from a broad array of surety bonds issued by insurers to satisfy regulatory demands or contract obligations in a variety of jurisdictions around the world.

Motor: provides coverage to cedants for motor liability and property damage losses arising out of any one occurrence. The occurrence can involve one or many claimants where the ceding insurer aggregates the claims from the occurrence.

Liability: provides coverage to insurers of standard casualty business, excess and surplus casualty business and specialty casualty programs. The primary focus of the underlying business is general liability, although workers' compensation and auto liability are also written.

Agriculture: provides coverage for risks associated with the production of food and fiber on a global basis for primary insurance companies writing multi-peril crop insurance, crop hail, and named peril covers, as well as custom risk transfer mechanisms for agricultural dependent industries with exposures to crop yield and/or price deviations. We provide both proportional and aggregate stop loss reinsurance.

Engineering: provides coverage for all types of construction risks and risks associated with erection, testing and commissioning of machinery and plants during the construction stage. This line of business also includes coverage for losses arising from operational failures of machinery, plant and equipment and electronic equipment as well as business interruption.

Other: includes aviation, marine and personal accident reinsurance.

iii

AXIS Capital Holdings Limited

FINANCIAL HIGHLIGHTS

				Quarter ended September 30,												Nine months ended September 30,
				2014				2013				Change				2014				2013				Change
HIGHLIGHTS		Gross premiums written		$	896,814			$	904,797			(0.9	%)			$	3,949,479			$	3,871,085			2.0	%
		Gross premiums written - Insurance		61.9		%		63.5		%		(1.6	)	pts		48.4		%		50.4		%		(2.0	)	pts
		Gross premiums written - Reinsurance		38.1		%		36.5		%		1.6		pts		51.6		%		49.6		%		2.0		pts
		Net premiums written		$	687,223			$	716,389			(4.1	%)			$	3,351,958			$	3,280,236			2.2	%
		Net premiums earned		$	966,138			$	945,242			2.2	%			$	2,912,482			$	2,765,154			5.3	%
		Net premiums earned - Insurance		47.8		%		47.4		%		0.4		pts		47.0		%		46.0		%		1.0		pts
		Net premiums earned - Reinsurance		52.2		%		52.6		%		(0.4	)	pts		53.0		%		54.0		%		(1.0	)	pts
		Net income available to common shareholders		$	279,104			$	137,121			103.5	%			$	606,992			$	512,383			18.5	%
		Operating income [a]		132,770				196,677				(32.5	%)			442,581				474,215				(6.7	%)
		Reserve for losses and loss expenses		9,751,903				9,484,516				2.8	%			9,751,903				9,484,516				2.8	%
		Total shareholders’ equity attributable to AXIS Capital		$	5,818,489			$	5,787,829			0.5	%			$	5,818,489			$	5,787,829			0.5	%
PER COMMON SHARE AND COMMON SHARE DATA		Basic earnings per common share			$2.71				$1.23			120.3	%				$5.74				$4.47			28.4	%
		Diluted earnings per common share		2.68				1.21				121.5	%			5.68				4.41				28.8	%
		Operating income per common share - diluted [b]			$1.27				$1.74			(27.0	%)				$4.14				$4.08			1.5	%
		Weighted average common shares outstanding		102,945				111,676				(7.8	%)			105,683				114,606				(7.8	%)
		Diluted weighted average common shares outstanding		104,247				113,355				(8.0	%)			106,953				116,214				(8.0	%)
		Book value per common share			$51.48				$46.22			11.4	%				$51.48				$46.22			11.4	%
		Diluted book value per common share (treasury stock method)		49.88				44.60				11.8	%			49.88				44.60				11.8	%
		Diluted tangible book value per common share (treasury stock method) [a]		49.02				43.81				11.9	%			49.02				43.81				11.9	%
		Accumulated dividends declared per common share			$8.69				$7.61			14.2	%				$8.69				$7.61			14.2	%
FINANCIAL RATIOS		ROACE [c]		21.2		%		10.9		%		10.3		pts		15.6		%		13.1		%		2.5		pts
		Operating ROACE [d]		10.1		%		15.6		%		(5.5	)	pts		11.4		%		12.1		%		(0.7	)	pts
		Net loss and loss expense ratio		57.1		%		53.1		%		4.0		pts		57.1		%		57.2		%		(0.1	)	pts
		Acquisition cost ratio		19.2		%		18.4		%		0.8		pts		18.9		%		17.7		%		1.2		pts
		General and administrative expense ratio		15.9		%		14.8		%		1.1		pts		15.6		%		15.6		%		—		pts
		Combined ratio		92.2		%		86.3		%		5.9		pts		91.6		%		90.5		%		1.1		pts
INVESTMENT DATA		Total assets		$	20,965,047			$	19,932,949			5.2	%			$	20,965,047			$	19,932,949			5.2	%
		Total cash and invested assets [e]		15,451,826				14,750,214				4.8	%			15,451,826				14,750,214				4.8	%
		Net investment income		66,562				103,429				(35.6	%)			264,171				295,450				(10.6	%)
		Net realized investment gains (losses)		$	77,448			$	(4,708	)		nm				$	121,329			$	56,004			116.6	%
		Total return on cash and investments [f]		(0.7		%)		1.4		%		(2.1	)	pts		1.9		%		0.8		%		1.1		pts
		Return on other investments [g]		(0.3		%)		3.3		%		(3.6	)	pts		4.6		%		9.2		%		(4.6	)	pts
		Book yield of fixed maturities		2.5		%		2.6		%		(0.1	)	pts		2.5		%		2.6		%		(0.1	)	pts

[a] Operating income and diluted tangible book value per common share are “non-GAAP financial measures” as defined by Regulation G. See page 26 for reconciliation of operating income to net income available to common shareholders and diluted tangible book value per common share to diluted book value per common share.

[b] Operating income per common share - diluted, is calculated by dividing operating income for the period by weighted average common shares and share equivalents.

[c] Return on average common equity (“ROACE”) is calculated by dividing net income available to common shareholders for the period by the average common shareholders’ equity determined by using the common shareholders’ equity balances at the beginning and end of the period. Net income for the quarter-periods is annualized.

[d] Operating ROACE, also a “non-GAAP financial measure”, is calculated by dividing operating income for the period by the average common shareholders’ equity determined by using the common shareholders’ equity balances at the beginning and end of the period. Operating income for the quarter-periods is annualized.

[e] Cash and invested assets represents the total cash, available for sale investments, other investments, short-term investments, accrued interest receivable and net receivable (payable) for investments sold (purchased).

[f] In calculating total return, we include net investment income, net realized investment gains (losses) and the change in unrealized gains (losses) generated by our average cash and investment balances.

[g] Return on other investments is calculated by dividing other investment income by the average month-end other investment balances for the period.

1

AXIS Capital Holdings Limited

CONSOLIDATED STATEMENTS OF INCOME - QUARTERLY

	Q3 2014				Q2 2014				Q1 2014				Q4 2013				Q3 2013				Q3 2012
UNDERWRITING REVENUES
Gross premiums written	$	896,814			$	1,231,279			$	1,821,399			$	825,957			$	904,797			$	847,686
Premiums ceded	(209,591		)		(231,117		)		(156,815		)		(177,992		)		(188,408		)		(197,087		)
Net premiums written	687,223				1,000,162				1,664,584				647,965				716,389				650,599
Gross premiums earned	1,160,577				1,194,367				1,133,052				1,129,147				1,125,289				1,037,600
Ceded premiums expensed	(194,439		)		(193,967		)		(187,103		)		(187,236		)		(180,047		)		(175,153		)
Net premiums earned	966,138				1,000,400				945,949				941,911				945,242				862,447
Other insurance related income	7,702				1,683				3,082				2,668				725				953
Total underwriting revenues	973,840				1,002,083				949,031				944,579				945,967				863,400
UNDERWRITING EXPENSES
Net losses and loss expenses	552,064				565,829				544,207				551,360				501,522				442,652
Acquisition costs	185,950				191,862				172,036				175,299				173,682				158,796
Underwriting-related general and administrative expenses [a]	122,362				117,811				124,022				123,761				117,675				106,953
Total underwriting expenses	860,376				875,502				840,265				850,420				792,879				708,401
UNDERWRITING INCOME [b]	113,464				126,581				108,766				94,159				153,088				154,999
OTHER OPERATING REVENUE (EXPENSES)
Net investment income	66,562				114,867				82,744				113,863				103,429				103,638
Net realized investment gains (losses)	77,448				33,261				10,620				19,558				(4,708		)		50,803
Interest expense and financing costs	(20,344		)		(19,975		)		(16,594		)		(15,625		)		(15,260		)		(15,558		)
Total other operating revenues	123,666				128,153				76,770				117,796				83,461				138,883
OTHER (EXPENSES) REVENUE
Foreign exchange gains (losses)	72,292				(9,705		)		(4,233		)		(14,484		)		(56,860		)		(23,927		)
Corporate expenses [a]	(30,554		)		(33,270		)		(28,707		)		(20,422		)		(23,024		)		(27,658		)
Total other (expenses) revenues	41,738				(42,975		)		(32,940		)		(34,906		)		(79,884		)		(51,585		)
INCOME BEFORE INCOME TAXES	278,868				211,759				152,596				177,049				156,665				242,297
Income tax (expense) benefit	4,098				(9,500		)		(4,125		)		4,497				(6,030		)		(10,149		)
NET INCOME	282,966				202,259				148,471				181,546				150,635				232,148
Amounts attributable (to) from noncontrolling interests	6,160				(1,573		)		(1,222		)		—				—				—
NET INCOME ATTRIBUTABLE TO AXIS CAPITAL	289,126				200,686				147,249				181,546				150,635				232,148
Preferred share dividends	(10,022		)		(10,022		)		(10,022		)		(10,022		)		(13,514		)		(8,741		)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	279,104			$	190,664			$	137,227			$	171,524			$	137,121			$	223,407
KEY RATIOS/PER SHARE DATA
Net loss and loss expense ratio	57.1		%		56.6		%		57.5		%		58.5		%		53.1		%		51.3		%
Acquisition cost ratio	19.2		%		19.2		%		18.2		%		18.6		%		18.4		%		18.4		%
General and administrative expense ratio [a]	15.9		%		15.0		%		16.2		%		15.4		%		14.8		%		15.6		%
Combined ratio	92.2		%		90.8		%		91.9		%		92.5		%		86.3		%		85.3		%
Weighted average basic shares outstanding	102,945				105,118				109,053				110,757				111,676				121,127
Weighted average diluted shares outstanding	104,247				106,289				110,391				112,702				113,355				122,952
Basic earnings per common share		$2.71				$1.81				$1.26				$1.55				$1.23				$1.84
Diluted earnings per common share		$2.68				$1.79				$1.24				$1.52				$1.21				$1.82
ROACE (annualized)	21.2		%		14.5		%		10.6		%		13.3		%		10.9		%		16.9		%
Operating ROACE (annualized)	10.1		%		13.1		%		10.6		%		12.3		%		15.6		%		15.2		%

[a] Underwriting-related general and administrative expenses is a "non-GAAP financial measure" as defined in SEC Regulation G. Our total general and administrative expenses also include corporate expenses. Both underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.

[b] Group (or consolidated) underwriting income is also a "non-GAAP financial measure". Reconciliations of consolidated underwriting income to the nearest GAAP financial measure (income before income taxes) are presented above.

2

AXIS Capital Holdings Limited

CONSOLIDATED STATEMENTS OF INCOME - YEAR TO DATE

	Nine months ended September 30,												Year ended December 31,
	2014				2013				2012				2013				2012
UNDERWRITING REVENUES
Gross premiums written	$	3,949,479			$	3,871,085			$	3,387,229			$	4,697,041			$	4,139,643
Premiums ceded	(597,521		)		(590,849		)		(567,869		)		(768,841		)		(802,187		)
Net premiums written	3,351,958				3,280,236				2,819,360				3,928,200				3,337,456
Gross premiums earned	3,487,990				3,330,123				3,072,778				4,459,269				4,141,037
Ceded premiums expensed	(575,508		)		(564,969		)		(513,364		)		(752,204		)		(725,574		)
Net premiums earned	2,912,482				2,765,154				2,559,414				3,707,065				3,415,463
Other insurance related income	12,468				1,756				1,884				4,424				2,676
Total underwriting revenues	2,924,950				2,766,910				2,561,298				3,711,489				3,418,139
UNDERWRITING EXPENSES
Net losses and loss expenses	1,662,097				1,582,835				1,420,981				2,134,195				2,096,028
Acquisition costs	549,848				488,892				483,589				664,191				627,653
Underwriting-related general and administrative expenses	364,195				361,373				319,300				485,134				431,321
Total underwriting expenses	2,576,140				2,433,100				2,223,870				3,283,520				3,155,002
UNDERWRITING INCOME	348,810				333,810				337,428				427,969				263,137
OTHER OPERATING REVENUE (EXPENSES)
Net investment income	264,171				295,450				294,110				409,312				380,957
Net realized investment gains	121,329				56,004				95,699				75,564				127,469
Interest expense and financing costs	(56,913		)		(46,355		)		(46,365		)		(61,979		)		(61,863		)
Total other operating revenues	328,587				305,099				343,444				422,897				446,563
OTHER (EXPENSES) REVENUE
Foreign exchange gains (losses)	58,353				(11,659		)		(8,212		)		(26,143		)		(29,512		)
Corporate expenses [a]	(92,530		)		(69,834		)		(100,295		)		(90,256		)		(129,660		)
Total other expenses	(34,177		)		(81,493		)		(108,507		)		(116,399		)		(159,172		)
INCOME BEFORE INCOME TAXES	643,220				557,416				572,365				734,467				550,528
Income tax expense	(9,527		)		(11,500		)		(15,314		)		(7,002		)		(3,287		)
NET INCOME	633,693				545,916				557,051				727,465				547,241
Amounts attributable (to) from noncontrolling interests	3,365				—				—				—				—
NET INCOME ATTRIBUTABLE TO AXIS CAPITAL	637,058				545,916				557,051				727,465				547,241
Preferred share dividends	(30,066		)		(30,452		)		(29,487		)		(40,474		)		(38,228		)
Loss on repurchase of preferred shares	—				(3,081		)		(14,009		)		(3,081		)		(14,009		)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	606,992			$	512,383			$	513,555			$	683,910			$	495,004
KEY RATIOS/PER SHARE DATA
Net loss and loss expense ratio	57.1		%		57.2		%		55.5		%		57.6		%		61.4		%
Acquisition cost ratio	18.9		%		17.7		%		18.9		%		17.9		%		18.4		%
General and administrative expense ratio [a]	15.6		%		15.6		%		16.4		%		15.5		%		16.4		%
Combined ratio	91.6		%		90.5		%		90.8		%		91.0		%		96.2		%
Weighted average basic shares outstanding	105,683				114,606				123,568				113,636				122,148
Weighted average diluted shares outstanding	106,953				116,214				124,858				115,328				123,654
Basic earnings per common share		$5.74				$4.47				$4.16				$6.02				$4.05
Diluted earnings per common share		$5.68				$4.41				$4.11				$5.93				$4.00
ROACE [b]	15.6		%		13.1		%		13.3		%		13.1		%		9.7		%
Operating ROACE [b]	11.4		%		12.1		%		11.6		%		12.1		%		8.2		%

[a] Both underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.

[b] Annualized for the nine-month periods.

3

AXIS Capital Holdings Limited

CONSOLIDATED SEGMENT DATA

		Quarter ended September 30, 2014												Nine months ended September 30, 2014
		Insurance				Reinsurance				Total				Insurance				Reinsurance				Total
UNDERWRITING REVENUES
Gross premiums written		$	555,283			$	341,531			$	896,814			$	1,911,102			$	2,038,377			$	3,949,479
Net premiums written		363,571				323,652				687,223				1,361,351				1,990,607				3,351,958
Gross premiums earned		643,864				516,713				1,160,577				1,914,620				1,573,370				3,487,990
Ceded premiums expensed		(182,059		)		(12,380		)		(194,439		)		(545,937		)		(29,571		)		(575,508		)
Net premiums earned		461,805				504,333				966,138				1,368,683				1,543,799				2,912,482
Other insurance related income		—				7,702				7,702				—				12,468				12,468
Total underwriting revenues		461,805				512,035				973,840				1,368,683				1,556,267				2,924,950
UNDERWRITING EXPENSES
Net losses and loss expenses		289,207				262,857				552,064				859,093				803,004				1,662,097
Acquisition costs		71,264				114,686				185,950				207,360				342,488				549,848
Underwriting-related general and administrative expenses		85,750				36,612				122,362				257,208				106,987				364,195
Total underwriting expenses		446,221				414,155				860,376				1,323,661				1,252,479				2,576,140
UNDERWRITING INCOME		$	15,584			$	97,880			$	113,464			$	45,022			$	303,788			$	348,810
KEY RATIOS
Current accident year loss ratio		64.7		%		63.0		%		63.8		%		66.7		%		61.0		%		63.7		%
Prior period reserve development		(2.1		%)		(10.9		%)		(6.7		%)		(3.9		%)		(9.0		%)		(6.6		%)
Net loss and loss expense ratio		62.6		%		52.1		%		57.1		%		62.8		%		52.0		%		57.1		%
Acquisition cost ratio		15.4		%		22.7		%		19.2		%		15.2		%		22.2		%		18.9		%
Underwriting-related general and administrative expense ratio		18.6		%		7.3		%		12.7		%		18.7		%		6.9		%		12.4		%
Corporate expense ratio										3.2		%										3.2		%
Combined ratio		96.6		%		82.1		%		92.2		%		96.7		%		81.1		%		91.6		%

4

AXIS Capital Holdings Limited

GROSS PREMIUM WRITTEN BY SEGMENT BY LINE OF BUSINESS

																										Nine months ended September 30,
		Q3 2014				Q2 2014				Q1 2014				Q4 2013				Q3 2013				Q3 2012				2014				2013
INSURANCE SEGMENT
Property		$	143,236			$	207,788			$	139,929			$	144,321			$	147,485			$	136,759			$	490,953			$	527,650
Marine		41,529				84,833				85,722				23,148				38,406				45,435				212,084				206,345
Terrorism		11,055				9,478				6,978				10,264				10,418				10,589				27,511				28,109
Aviation		17,735				10,568				2,717				23,250				4,379				16,470				31,020				20,076
Credit and Political Risk		3,782				7,179				18,307				23,563				7,099				4,553				29,268				36,639
Professional lines		196,576				244,011				154,248				269,524				208,174				191,882				594,835				630,547
Liability		94,833				106,643				74,366				84,447				100,018				74,642				275,842				262,780
Accident and Health		46,537				83,610				119,454				28,074				58,799				49,348				249,589				240,402
TOTAL INSURANCE SEGMENT		555,283				754,110				601,721				606,591				574,778				529,678				1,911,102				1,952,548
REINSURANCE SEGMENT
Catastrophe		71,319				117,245				171,260				15,537				71,851				73,329				359,824				378,115
Property		45,030				61,027				239,620				20,689				58,294				64,717				345,677				343,626
Professional lines		51,007				104,801				68,219				166,377				66,017				50,648				224,028				213,978
Credit and Surety		23,933				20,359				208,468				10,372				29,487				30,728				252,761				258,122
Motor		9,445				2,676				274,019				(3,789		)		4,286				10,622				286,141				245,834
Liability		145,488				82,566				102,644				15,118				75,100				78,118				330,698				253,555
Agriculture		(10,206		)		76,665				103,165				(11,214		)		8,659				2,015				169,624				143,995
Engineering		2,579				8,772				36,510				5,142				12,462				6,745				47,861				59,115
Other		2,936				3,058				15,773				1,134				3,863				1,086				21,763				22,197
TOTAL REINSURANCE SEGMENT		341,531				477,169				1,219,678				219,366				330,019				318,008				2,038,377				1,918,537
CONSOLIDATED TOTAL		$	896,814			$	1,231,279			$	1,821,399			$	825,957			$	904,797			$	847,686			$	3,949,479			$	3,871,085

5

AXIS Capital Holdings Limited

INSURANCE SEGMENT DATA - QUARTERLY

		Q3 2014				Q2 2014				Q1 2014				Q4 2013				Q3 2013				Q3 2012
UNDERWRITING REVENUES
Gross premiums written		$	555,283			$	754,110			$	601,721			$	606,591			$	574,778			$	529,678
Net premiums written		363,571				541,097				456,692				427,647				393,627				332,591
Gross premiums earned		643,864				641,335				629,425				631,695				626,005				569,710
Ceded premiums expensed		(182,059		)		(183,665		)		(180,211		)		(181,230		)		(177,933		)		(171,372		)
Net premiums earned		461,805				457,670				449,214				450,465				448,072				398,338
Other insurance related income		—				—				—				681				725				953
Total underwriting revenues		461,805				457,670				449,214				451,146				448,797				399,291
UNDERWRITING EXPENSES
Net losses and loss expenses		289,207				290,466				279,423				285,634				216,440				185,845
Acquisition costs		71,264				71,039				65,057				65,266				61,087				59,026
General and administrative expenses		85,750				83,512				87,946				89,722				82,548				78,029
Total underwriting expenses		446,221				445,017				432,426				440,622				360,075				322,900
UNDERWRITING INCOME		$	15,584			$	12,653			$	16,788			$	10,524			$	88,722			$	76,391
KEY RATIOS
Current accident year loss ratio		64.7		%		70.7		%		64.8		%		64.3		%		55.9		%		54.6		%
Prior period reserve development		(2.1		%)		(7.2		%)		(2.6		%)		(0.9		%)		(7.6		%)		(7.9		%)
Net loss and loss expense ratio		62.6		%		63.5		%		62.2		%		63.4		%		48.3		%		46.7		%
Acquisition cost ratio		15.4		%		15.5		%		14.5		%		14.5		%		13.6		%		14.8		%
General and administrative expense ratio		18.6		%		18.2		%		19.6		%		19.9		%		18.5		%		19.6		%
Combined ratio		96.6		%		97.2		%		96.3		%		97.8		%		80.4		%		81.1		%

6

AXIS Capital Holdings Limited

REINSURANCE SEGMENT DATA - QUARTERLY

		Q3 2014				Q2 2014				Q1 2014				Q4 2013				Q3 2013				Q3 2012
UNDERWRITING REVENUES
Gross premiums written		$	341,531			$	477,169			$	1,219,678			$	219,366			$	330,019			$	318,008
Net premiums written		323,652				459,065				1,207,892				220,318				322,762				318,008
Gross premiums earned		516,713				553,032				503,627				497,452				499,284				467,890
Ceded premiums expensed		(12,380		)		(10,302		)		(6,892		)		(6,006		)		(2,114		)		(3,781		)
Net premiums earned		504,333				542,730				496,735				491,446				497,170				464,109
Other insurance related income		7,702				1,683				3,082				1,987				—				—
Total underwriting revenues		512,035				544,413				499,817				493,433				497,170				464,109
UNDERWRITING EXPENSES
Net losses and loss expenses		262,857				275,363				264,784				265,726				285,082				256,807
Acquisition costs		114,686				120,823				106,979				110,033				112,595				99,770
General and administrative expenses		36,612				34,299				36,076				34,039				35,127				28,924
Total underwriting expenses		414,155				430,485				407,839				409,798				432,804				385,501
UNDERWRITING INCOME		$	97,880			$	113,928			$	91,978			$	83,635			$	64,366			$	78,608
KEY RATIOS
Current accident year loss ratio		63.0		%		60.4		%		59.7		%		62.0		%		66.6		%		61.6		%
Prior period reserve development		(10.9		%)		(9.7		%)		(6.4		%)		(7.9		%)		(9.3		%)		(6.3		%)
Net loss and loss expense ratio		52.1		%		50.7		%		53.3		%		54.1		%		57.3		%		55.3		%
Acquisition cost ratio		22.7		%		22.3		%		21.5		%		22.4		%		22.6		%		21.5		%
General and administrative expense ratio		7.3		%		6.3		%		7.3		%		6.9		%		7.2		%		6.3		%
Combined ratio		82.1		%		79.3		%		82.1		%		83.4		%		87.1		%		83.1		%

7

AXIS Capital Holdings Limited

NET INVESTMENT INCOME - QUARTERLY AND YEAR TO DATE

																										Nine months ended September 30,
		Q3 2014				Q2 2014				Q1 2014				Q4 2013				Q3 2013				Q3 2012				2014				2013
Fixed maturities		$	74,996			$	78,523			$	72,957			$	74,732			$	74,691			$	72,251			$	226,475			$	218,877
Other investments		(3,384		)		32,492				16,760				41,408				32,127				34,242				45,868				87,406
Equity securities		2,022				5,301				2,286				2,478				3,871				2,862				9,609				8,419
Cash and cash equivalents		2,081				6,183				863				3,423				382				708				9,127				2,915
Short-term investments		141				246				214				125				127				537				600				1,056
Gross investment income		75,856				122,745				93,080				122,166				111,198				110,600				291,679				318,673
Investment expense		(9,294		)		(7,878		)		(10,336		)		(8,303		)		(7,769		)		(6,962		)		(27,508		)		(23,223		)
Net investment income		$	66,562			$	114,867			$	82,744			$	113,863			$	103,429			$	103,638			$	264,171			$	295,450

8

AXIS Capital Holdings Limited

CONSOLIDATED BALANCE SHEETS

		September 30,				June 30,				March 31,				December 31,				September 30,				September 30,
		2014				2014				2014				2013				2013				2012
ASSETS
Investments:
Fixed maturities, available for sale, at fair value		$	12,444,684			$	12,598,897			$	12,095,839			$	11,986,327			$	11,984,740			$	11,794,985
Equity securities, available for sale, at fair value		629,502				744,760				708,412				701,987				650,627				650,168
Other investments, at fair value		946,836				1,044,492				1,005,762				1,045,810				994,572				838,641
Short-term investments, at fair value and amortized cost		114,428				100,166				296,800				46,212				84,709				91,814
Total investments		14,135,450				14,488,315				14,106,813				13,780,336				13,714,648				13,375,608
Cash and cash equivalents		1,407,811				1,189,403				1,294,709				987,876				1,109,998				869,444
Accrued interest receivable		91,777				91,278				89,536				97,132				98,285				95,654
Insurance and reinsurance premium balances receivable		2,112,906				2,422,983				2,292,954				1,688,957				1,920,985				1,712,025
Reinsurance recoverable on paid and unpaid losses		1,947,529				1,954,985				1,912,840				1,929,988				1,899,510				1,789,410
Deferred acquisition costs		556,723				623,573				634,413				456,122				505,002				460,661
Prepaid reinsurance premiums		351,488				337,608				299,994				330,261				340,280				293,684
Receivable for investments sold		6,472				366				1,972				1,199				1,317				7,375
Goodwill and intangible assets		88,740				90,025				90,350				89,528				91,656				98,165
Other assets		266,151				247,921				274,053				273,385				251,268				195,755
TOTAL ASSETS		$	20,965,047			$	21,446,457			$	20,997,634			$	19,634,784			$	19,932,949			$	18,897,781
LIABILITIES
Reserve for losses and loss expenses		$	9,751,903			$	9,805,988			$	9,667,841			$	9,582,140			$	9,484,516			$	8,751,070
Unearned premiums		3,142,055				3,411,108				3,372,166				2,683,849				2,990,301				2,770,889
Insurance and reinsurance balances payable		244,815				272,062				207,909				234,412				261,737				239,394
Senior notes		1,490,498				1,490,427				1,490,198				995,855				995,699				995,097
Payable for investments purchased		189,684				237,019				162,747				21,744				174,034				105,023
Other liabilities		265,968				221,348				218,502				248,822				238,833				180,040
TOTAL LIABILITIES		15,084,923				15,437,952				15,119,363				13,766,822				14,145,120				13,041,513
SHAREHOLDERS’ EQUITY
Preferred shares		627,843				627,843				627,843				627,843				627,843				502,843
Common shares		2,190				2,189				2,188				2,174				2,172				2,145
Additional paid-in capital		2,273,110				2,261,084				2,247,102				2,240,125				2,225,826				2,165,478
Accumulated other comprehensive income		22,935				272,664				182,254				117,825				130,373				373,199
Retained earnings		5,581,942				5,331,199				5,170,948				5,062,706				4,921,716				4,576,381
Treasury shares, at cost		(2,689,531		)		(2,539,269		)		(2,403,286		)		(2,232,711		)		(2,120,101		)		(1,763,778		)
TOTAL SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO AXIS CAPITAL		5,818,489				5,955,710				5,827,049				5,817,962				5,787,829				5,856,268
Noncontrolling interests		61,635				52,795				51,222				50,000				—				—
TOTAL SHAREHOLDERS' EQUITY		5,880,124				6,008,505				5,878,271				5,867,962				5,787,829				5,856,268
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	20,965,047			$	21,446,457			$	20,997,634			$	19,634,784			$	19,932,949			$	18,897,781
Basic common shares outstanding		100,827				103,906				106,745				109,485				111,651				117,857
Diluted common shares outstanding		104,073				107,228				110,327				113,325				115,684				122,865
Book value per common share			$51.48				$51.28				$48.71				$47.40				$46.22				$45.42
Diluted book value per common share		49.88				49.69				47.13				45.80				44.60				43.57
Diluted tangible book value per common share			$49.02				$48.85				$46.31				$45.01				$43.81				$42.77
Debt to total capital [a]		20.4		%		20.0		%		20.4		%		14.6		%		14.7		%		14.5		%
Debt and preferred equity to total capital		29.0		%		28.4		%		28.9		%		23.8		%		23.9		%		21.9		%

[a] The debt to total capital ratio is calculated by dividing our senior notes by total capital. Total capital represents the sum of total shareholders’ equity attributable to AXIS Capital and our senior notes.

9

AXIS Capital Holdings Limited

CASH AND INVESTED ASSETS PORTFOLIO

At September 30, 2014

		Cost or Amortized Cost				Unrealized Gains				Unrealized Losses				Fair Value				Percentage
Fixed Maturities, available for sale
U.S. government and agency		$	1,545,328			$	1,564			$	(27,424	)		$	1,519,468			9.8	%
Non-U.S. government		1,175,260				9,122				(45,460		)		1,138,922				7.4	%
Corporate debt		4,240,910				47,065				(37,179		)		4,250,796				27.5	%
Agency RMBS		2,103,587				28,931				(11,571		)		2,120,947				13.7	%
CMBS		945,134				12,212				(2,829		)		954,517				6.2	%
Non-Agency RMBS		75,452				3,531				(588		)		78,395				0.5	%
ABS		1,443,932				3,775				(11,842		)		1,435,865				9.3	%
Municipals		910,669				36,181				(1,076		)		945,774				6.1	%
Total fixed maturities		12,440,272				142,381				(137,969		)		12,444,684				80.5	%
Equity securities, available for sale
Common stocks		49,426				14,367				(648		)		63,145				0.4	%
Exchange traded funds		420,219				31,506				(1,049		)		450,676				2.9	%
Non-U.S. bond mutual funds		113,651				2,030				—				115,681				0.7	%
Total equity securities		583,296				47,903				(1,697		)		629,502				4.0	%
Total available for sale investments		$	13,023,568			$	190,284			$	(139,666	)		13,074,186				84.5	%
Other investments (see below)														946,836				6.1	%
Short-term investments														114,428				0.9	%
Total investments														14,135,450				91.5	%
Cash and cash equivalents [a]														1,407,811				9.1	%
Accrued interest receivable														91,777				0.6	%
Net receivable/(payable) for investments sold (purchased)														(183,212		)		(1.2	%)
Total cash and invested assets														$	15,451,826			100.0	%
														Fair Value				Percentage
Other Investments:
Long/short equity funds														$	292,086			30.8	%
Multi-strategy funds														315,480				33.3	%
Event-driven funds														188,397				19.9	%
Leveraged bank loan funds														9,904				1.0	%
Direct lending funds														43,836				4.6	%
Collateralized loan obligations - equity tranches														97,133				10.4	%
Total														$	946,836			100.0	%

[a] Includes $117 million of restricted cash and cash equivalents.

10

AXIS Capital Holdings Limited

CASH AND INVESTED ASSETS COMPOSITION - QUARTERLY

		Q3 2014			Q2 2014			Q1 2014			Q4 2013			Q3 2013			Q3 2012
		Fair Value %			Fair Value %			Fair Value %			Fair Value %			Fair Value %			Fair Value %
CASH AND INVESTED ASSETS PORTFOLIO
Fixed Maturities:
U.S. government and agency		9.8	%		10.3	%		11.0	%		9.4	%		10.1	%		8.7	%
Non-U.S. government		7.4	%		8.0	%		8.0	%		7.9	%		8.2	%		8.0	%
Corporate debt		27.5	%		27.5	%		25.0	%		24.3	%		23.8	%		25.7	%
MBS:
Agency RMBS		13.7	%		13.6	%		15.4	%		16.5	%		17.0	%		21.0	%
CMBS		6.2	%		6.0	%		5.6	%		5.4	%		5.0	%		5.0	%
Non-agency RMBS		0.5	%		0.5	%		0.6	%		0.5	%		0.5	%		1.0	%
ABS		9.3	%		8.4	%		6.3	%		6.4	%		6.2	%		4.4	%
Municipals		6.1	%		6.8	%		6.9	%		10.4	%		10.5	%		9.1	%
Total Fixed Maturities		80.5	%		81.1	%		78.8	%		80.8	%		81.3	%		82.9	%
Equity securities		4.0	%		4.8	%		4.6	%		4.8	%		4.4	%		4.5	%
Other investments		6.1	%		6.7	%		6.6	%		7.0	%		6.7	%		5.9	%
Short-term investments		0.9	%		0.6	%		2.0	%		0.1	%		0.6	%		0.6	%
Total investments		91.5	%		93.2	%		92.0	%		92.7	%		93.0	%		93.9	%
Cash and cash equivalents		9.1	%		7.7	%		8.4	%		6.7	%		7.5	%		6.1	%
Accrued interest receivable		0.6	%		0.6	%		0.6	%		0.7	%		0.7	%		0.7	%
Net receivable/(payable) for investments sold or purchased		(1.2	%)		(1.5	%)		(1.0	%)		(0.1	%)		(1.2	%)		(0.7	%)
Total Cash and Invested Assets		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
CREDIT QUALITY OF FIXED MATURITIES		Fair Value %			Fair Value %			Fair Value %			Fair Value %			Fair Value %			Fair Value %
U.S. government and agency		12.2	%		12.7	%		13.9	%		11.6	%		12.4	%		10.5	%
AAA		35.5	%		34.2	%		34.7	%		34.7	%		35.8	%		41.5	%
AA		12.3	%		12.6	%		12.1	%		15.0	%		15.2	%		10.8	%
A		19.1	%		19.7	%		18.2	%		18.5	%		17.6	%		18.0	%
BBB		12.8	%		12.8	%		12.7	%		12.3	%		11.3	%		11.2	%
Below BBB		8.1	%		8.0	%		8.4	%		7.9	%		7.7	%		8.0	%
Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
MATURITY PROFILE OF FIXED MATURITIES		Fair Value %			Fair Value %			Fair Value %			Fair Value %			Fair Value %			Fair Value %
Within one year		4.5	%		4.0	%		4.5	%		5.9	%		5.6	%		5.3	%
From one to five years		42.3	%		43.7	%		43.7	%		42.7	%		42.7	%		39.8	%
From five to ten years		14.4	%		15.2	%		14.4	%		14.9	%		15.4	%		16.3	%
Above ten years		2.0	%		1.9	%		1.9	%		0.8	%		1.0	%		0.7	%
Asset-backed and mortgage-backed securities		36.8	%		35.2	%		35.5	%		35.7	%		35.3	%		37.9	%
Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
CASH AND INVESTED ASSETS PORTFOLIO CHARACTERISTICS
Book yield of fixed maturities		2.5	%		2.5	%		2.5	%		2.5	%		2.6	%		2.7	%
Yield to maturity of fixed maturities		2.3	%		2.0	%		2.1	%		2.3	%		2.2	%		1.4	%
Average duration of fixed maturities (inclusive of duration hedges)		2.9 yrs			2.9 yrs			3.0 yrs			3.2 yrs			3.2 yrs			2.7 yrs
Average credit quality		AA-			AA-			AA-			AA-			AA-			AA-

11

AXIS Capital Holdings Limited

GEOGRAPHIC DISTRIBUTION OF FIXED MATURITIES AND EQUITIES

At September 30, 2014

					Corporate Debt
	Governments and Agencies				Financials				Non-Financials				Government Guaranteed				Total				Agency RMBS				Non-Agency RMBS/CMBS				ABS				Total Fixed Maturities				Equities				Total Fixed Maturities and Equities
Composition by country
Eurozone countries:
Germany	$	32,561			$	9,071			$	96,594			$	44,737			$	150,402			$	—			$	—			$	2,158			$	185,121			$	—			$	185,121
Supranational [a]	103,867				—				—				—				—				—				—				—				103,867				—				103,867
Netherlands	10,298				15,638				44,705				—				60,343				—				3,776				—				74,417				—				74,417
France	—				5,823				46,676				—				52,499				—				—				597				53,096				2,730				55,826
Luxembourg	—				—				22,533				—				22,533				—				—				—				22,533				—				22,533
Spain	—				—				15,540				—				15,540				—				—				—				15,540				—				15,540
Ireland	—				2,637				6,816				—				9,453				—				—				5,742				15,195				—				15,195
Belgium	—				—				12,811				—				12,811				—				—				—				12,811				—				12,811
Italy	—				—				12,268				—				12,268				—				—				—				12,268				—				12,268
Slovenia	1,851				—				—				—				—				—				—				—				1,851				—				1,851
Austria	—				—				513				—				513				—				—				—				513				—				513
Other [b]	—				—				—				—				—				—				—				—				—				177,992				177,992
Total eurozone	148,577				33,169				258,456				44,737				336,362				—				3,776				8,497				497,212				180,722				677,934
Other concentrations:
United Kingdom	174,282				31,021				154,974				602				186,597				—				20,102				2,156				383,137				1,670				384,807
Canada	139,098				98,633				73,230				23,896				195,759				—				—				—				334,857				4,036				338,893
Australia	194,974				64,150				27,762				—				91,912				—				—				2,268				289,154				—				289,154
Mexico	86,110				—				20,298				1,047				21,345				—				—				—				107,455				—				107,455
Brazil	94,511				—				8,278				—				8,278				—				—				—				102,789				—				102,789
Other	301,370				72,484				92,600				—				165,084				—				4,293				—				470,747				89,048			[c]	559,795
Total other concentrations	990,345				266,288				377,142				25,545				668,975				—				24,395				4,424				1,688,139				94,754				1,782,893
Total Non-U.S. concentrations	1,138,922				299,457				635,598				70,282				1,005,337				—				28,171				12,921				2,185,351				275,476				2,460,827
United States	1,390,737			[d]	1,443,420				1,802,039				—				3,245,459				2,120,947				1,004,741				1,422,944				9,184,828				354,026			[e]	9,538,854
United States agencies	128,731				—				—				—				—				—				—				—				128,731				—				128,731
United States local governments	945,774				—				—				—				—				—				—				—				945,774				—				945,774
Total U.S. concentrations	2,465,242				1,443,420				1,802,039				—				3,245,459				2,120,947				1,004,741				1,422,944				10,259,333				354,026				10,613,359
Totals	$	3,604,164			$	1,742,877			$	2,437,637			$	70,282			$	4,250,796			$	2,120,947			$	1,032,912			$	1,435,865			$	12,444,684			$	629,502			$	13,074,186

[a] Represents holdings of the European Investment Bank.

[b] Represents holdings in two non-U.S. bond mutual funds with underlying exposure to primarily sovereign and corporate debt and one exchange-traded fund ("ETF"). The primary countries of risk for these underlying securities are countries within the eurozone.

[c] Contains $65 million exchange-traded funds (“ETF’s”) designed to track indexes with primary underlying exposures to countries other than the United States and those within the eurozone.

[d] Represents United States Treasuries.

[e] Represents $50 million of common stocks of companies with the United States as their primary country of risk and $304 million of ETF’s designed to track the S&P 500, an index consisting primarily of exposure to the United States.

12

AXIS Capital Holdings Limited

CORPORATE DEBT COMPOSITION

At September 30, 2014

		Fair Value				% of Total Corporate Debt			% of Total Cash and Invested Assets
Composition by sector - Investment grade
Financial institutions:
U.S. banking		$	1,005,560			23.7	%		6.5	%
Corporate/commercial finance		243,689				5.7	%		1.6	%
Foreign banking [a]		217,785				5.1	%		1.4	%
Insurance		174,751				4.1	%		1.1	%
Investment brokerage		11,279				0.3	%		0.1	%
Total financial institutions		1,653,064				38.9	%		10.7	%
Communications		341,370				8.0	%		2.2	%
Consumer cyclical		294,890				6.9	%		1.9	%
Consumer non-cyclicals		271,473				6.4	%		1.8	%
Energy		214,312				5.0	%		1.4	%
Industrials		148,862				3.5	%		1.0	%
Utilities		138,845				3.3	%		0.9	%
Transportation		83,139				2.0	%		0.5	%
Technology		76,151				1.8	%		0.5	%
Non-U.S. government guaranteed [b]		70,282				1.7	%		0.5	%
Total investment grade		3,292,388				77.5	%		21.4	%
Total non-investment grade		958,408				22.5	%		6.1	%
Total corporate debt		$	4,250,796			100.0	%		27.5	%

[a] Located in Canada, Australia, Japan, United Kingdom, Germany, New Zealand and Switzerland.

[b] Includes $45 million from Germany. No other corporate debt guaranteed by a eurozone country.

13

AXIS Capital Holdings Limited

INVESTMENT PORTFOLIO

TEN LARGEST CORPORATE DEBT HOLDINGS

At September 30, 2014

		Amortized Cost				Net Unrealized Gain				Fair Value				% of Total Fixed  Maturities
ISSUER [a]
BANK OF AMERICA CORP		$	165,488			$	2,784			$	168,272			1.4	%
JP MORGAN CHASE & CO		142,753				1,056				143,809				1.2	%
GOLDMAN SACHS GROUP		136,455				3,545				140,000				1.1	%
MORGAN STANLEY		118,660				3,576				122,236				1.0	%
WELLS FARGO & COMPANY		105,192				1,105				106,297				0.9	%
CITIGROUP INC		99,565				1,875				101,440				0.8	%
FORD MOTOR COMPANY		81,989				345				82,334				0.7	%
VERIZON COMMUNICATIONS INC		77,052				(941		)		76,111				0.6	%
DAIMLER AG		75,089				(25		)		75,064				0.6	%
AT&T INC		64,816				115				64,931				0.5	%

[a] The holdings represent direct investments in fixed maturities of the parent issuer and its major subsidiaries. These investments exclude asset and mortgage backed securities that were issued, sponsored or serviced by the parent.

14

AXIS Capital Holdings Limited

MORTGAGE-BACKED AND ASSET-BACKED SECURITIES COMPOSITION

At September 30, 2014

		Agencies				AAA				AA				A				BBB				Non-Investment Grade				Total
Residential MBS		$	2,120,947			$	24,682			$	348			$	7,288			$	13,193			$	32,884			$	2,199,342
Commercial MBS		—				557,549				196,412				139,061				59,711				1,784				954,517
ABS		—				1,041,503				316,996				51,819				22,556				2,991				1,435,865
Total mortgage-backed and asset-backed securities		$	2,120,947			$	1,623,734			$	513,756			$	198,168			$	95,460			$	37,659			$	4,589,724
Percentage of total		46.2		%		35.4		%		11.2		%		4.3		%		2.1		%		0.8		%		100.0		%

15

AXIS Capital Holdings Limited

REINSURANCE RECOVERABLE ANALYSIS

		Q3 2014				Q2 2014				Q1 2014				Q4 2013				Q3 2013				Q3 2012
Reinsurance recoverable on paid losses and loss expenses:
Insurance		$	31,460			$	24,680			$	26,943			$	29,897			$	16,713			$	21,527
Reinsurance		1,399				1,281				1,077				(21		)		—				—
Total		$	32,859			$	25,961			$	28,020			$	29,876			$	16,713			$	21,527
Reinsurance recoverable on unpaid losses and loss expenses: OSLR
Insurance		$	608,304			$	625,142			$	575,811			$	587,727			$	608,886			$	528,009
Reinsurance		514				15				36				—				—				—
Total		$	608,818			$	625,157			$	575,847			$	587,727			$	608,886			$	528,009
Reinsurance recoverable on unpaid losses and loss expenses: IBNR
Insurance		$	1,318,833			$	1,319,543			$	1,322,309			$	1,321,597			$	1,285,078			$	1,194,561
Reinsurance		5,244				2,725				5,289				9,280				6,982				62,329
Total		$	1,324,077			$	1,322,268			$	1,327,598			$	1,330,877			$	1,292,060			$	1,256,890
Provision against reinsurance recoverables:
Insurance		$	(18,225	)		$	(18,401	)		$	(18,625	)		$	(18,492	)		$	(18,149	)		$	(16,473	)
Reinsurance		—				—				—				—				—				(543		)
Total		$	(18,225	)		$	(18,401	)		$	(18,625	)		$	(18,492	)		$	(18,149	)		$	(17,016	)
Net reinsurance recoverables:
Insurance		$	1,940,372			$	1,950,964			$	1,906,438			$	1,920,729			$	1,892,528			$	1,727,624
Reinsurance		7,157				4,021				6,402				9,259				6,982				61,786
Total		$	1,947,529			$	1,954,985			$	1,912,840			$	1,929,988			$	1,899,510			$	1,789,410

16

AXIS Capital Holdings Limited

REINSURANCE RECOVERABLE ANALYSIS

At September 30, 2014

Categories		Gross Recoverable				Collateral				Gross Recoverable Net of Collateral				% of  Total Gross Recoverable Net  of Collateral		% of  Total Shareholders’ Equity Attributable to AXIS Capital		Provision Against Reinsurance Recoverable				Provision Against  Reinsurance Recoverable as % of Gross Recoverable		Net Recoverable
Top 10 reinsurers based on gross recoverables		$	1,509,267			$	(24,627	)		$	1,484,640			78.2%		25.5%		$	(12,738	)		0.8%		$	1,496,529
Other reinsurers balances > $20 million		201,680				(2,342		)		199,338				10.5%		3.4%		(1,758		)		0.9%		199,922
Other reinsurers balances < $20 million		254,807				(41,203		)		213,604				11.3%		3.7%		(3,729		)		1.5%		251,078
Total		$	1,965,754			$	(68,172	)		$	1,897,582			100.0%		32.6%		$	(18,225	)		0.9%		$	1,947,529

At September 30, 2014, 98.5% (December 31, 2013: 98.8%) of our gross recoverables were collectible from reinsurers rated the equivalent of A- or better by internationally recognized rating agencies.

Top 10 Reinsurers (net of collateral)		% of  Total Gross Recoverable Net  of Collateral		% of  Total Shareholders’ Equity Attributable to AXIS Capital
Transatlantic Reinsurance Company		14.2%		4.6%
Partner Reinsurance Company of the US		11.2%		3.7%
Swiss Reinsurance America Corporation		10.6%		3.5%
Lloyd's of London		10.2%		3.3%
Berkley Insurance Company		8.4%		2.7%
Ace Property & Casualty Insurance		6.1%		2.0%
XL Reinsurance America Inc		4.9%		1.6%
Everest Reinsurance Company		4.6%		1.5%
Hannover Ruckversicherungs Aktiengesellschaft		4.6%		1.5%
Liberty Mutual Insurance Company		3.4%		1.1%
		78.2%		25.5%

17

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

		Quarter ended September 30, 2014												Nine months ended September 30, 2014
		Gross				Recoveries				Net				Gross				Recoveries				Net
Reserve for unpaid losses and loss expenses
Beginning of period		$	9,805,988			$	(1,929,024	)		$	7,876,964			$	9,582,140			$	(1,900,112	)		$	7,682,028
Incurred		658,697				(106,633		)		552,064				1,951,260				(289,163		)		1,662,097
Paid		(525,845		)		108,487				(417,358		)		(1,634,500		)		266,921				(1,367,579		)
Foreign exchange and other		(186,937		)		12,500				(174,437		)		(146,997		)		7,684				(139,313		)
End of period [a]		$	9,751,903			$	(1,914,670	)		$	7,837,233			$	9,751,903			$	(1,914,670	)		$	7,837,233

[a] At September 30, 2014, the gross reserve for losses and loss expenses included IBNR of $6,355 million, or 65%, of total gross reserves for loss and loss expenses. At December 31, 2013, the comparable amount was $6,082 million, or 63%.

18

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS BY SEGMENT

		Quarter ended September 30, 2014												Nine months ended September 30, 2014
		Insurance				Reinsurance				Total				Insurance				Reinsurance				Total
Gross losses paid		$	299,526			$	226,319			$	525,845			$	873,303			$	761,197			$	1,634,500
Reinsurance recoveries		(108,012		)		(475		)		(108,487		)		(262,229		)		(4,692		)		(266,921		)
Net losses paid		191,514				225,844				417,358				611,074				756,505				1,367,579
Change in:
Reported case reserves		(153		)		1,038				885				112,422				(143,064		)		(30,642		)
IBNR		92,959				39,008				131,967				161,345				186,057				347,402
Reinsurance recoveries on unpaid loss and loss expense reserves		4,887				(3,033		)		1,854				(25,748		)		3,506				(22,242		)
Total net incurred losses and loss expenses		$	289,207			$	262,857			$	552,064			$	859,093			$	803,004			$	1,662,097
Gross reserve for losses and loss expenses		$	5,117,053			$	4,634,850			$	9,751,903			$	5,117,053			$	4,634,850			$	9,751,903
Net favorable prior year reserve development		$	9,488			$	55,050			$	64,538			$	54,059			$	139,326			$	193,385
Key Ratios
Net paid to net incurred percentage		66.2		%		85.9		%		75.6		%		71.1		%		94.2		%		82.3		%
Net paid losses / Net premiums earned		41.5		%		44.8		%		43.2		%		44.6		%		49.0		%		47.0		%
Change in net loss and loss expense reserves / Net premiums earned		21.1		%		7.3		%		13.9		%		18.2		%		3.0		%		10.1		%
Net loss and loss expense ratio		62.6		%		52.1		%		57.1		%		62.8		%		52.0		%		57.1		%

19

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

INSURANCE - QUARTERLY

		Q3 2014				Q2 2014				Q1 2014				Q4 2013				Q3 2013				Q3 2012
Gross losses paid		$	299,526			$	323,513			$	250,264			$	342,952			$	275,082			$	208,617
Reinsurance recoveries		(108,012		)		(86,537		)		(67,679		)		(98,263		)		(89,562		)		(75,749		)
Net losses paid		191,514				236,976				182,585				244,689				185,520				132,868
Change in:
Reported case reserves		(153		)		101,943				10,632				(30,643		)		8,348				27,634
IBNR		92,959				(5,143		)		73,532				87,794				14,979				24,796
Reinsurance recoveries on unpaid loss and loss expense reserves		4,887				(43,310		)		12,674				(16,206		)		7,593				547
Total net incurred losses and loss expenses		$	289,207			$	290,466			$	279,423			$	285,634			$	216,440			$	185,845
Gross reserve for losses and loss expenses		$	5,117,053			$	5,068,149			$	4,960,559			$	4,873,184			$	4,819,976			$	4,302,340
Net favorable prior year reserve development		$	9,488			$	32,963			$	11,608			$	4,000			$	34,065			$	31,566
Key Ratios
Net paid to net incurred percentage		66.2		%		81.6		%		65.3		%		85.7		%		85.7		%		71.5		%
Net paid losses/Net premiums earned		41.5		%		51.8		%		40.6		%		54.3		%		41.4		%		33.4		%
Change in net loss and loss expense reserves / Net premiums earned		21.1		%		11.7		%		21.6		%		9.1		%		6.9		%		13.3		%
Net loss and loss expense ratio		62.6		%		63.5		%		62.2		%		63.4		%		48.3		%		46.7		%

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AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

REINSURANCE - QUARTERLY

		Q3 2014				Q2 2014				Q1 2014				Q4 2013				Q3 2013				Q3 2012
Gross losses paid		$	226,319			$	255,715			$	279,163			$	249,816			$	224,578			$	220,024
Reinsurance recoveries		(475		)		(183		)		(4,033		)		(6		)		—				—
Net losses paid		225,844				255,532				275,130				249,810				224,578				220,024
Change in:
Reported case reserves		1,038				(55,460		)		(88,642		)		64,636				19,370				(4,092		)
IBNR		39,008				72,706				74,341				(46,422		)		(21,781		)		42,580
Reinsurance recoveries on unpaid loss and loss expense reserves		(3,033		)		2,585				3,955				(2,298		)		62,915				(1,705		)
Total net incurred losses and loss expenses		$	262,857			$	275,363			$	264,784			$	265,726			$	285,082			$	256,807
Gross reserve for losses and loss expenses		$	4,634,850			$	4,737,839			$	4,707,282			$	4,708,956			$	4,664,540			$	4,448,730
Net favorable prior year reserve development		$	55,050			$	52,391			$	31,885			$	38,788			$	45,970			$	28,865
Key Ratios
Net paid to net incurred percentage		85.9		%		92.8		%		103.9		%		94.0		%		78.8		%		85.7		%
Net paid losses / Net premiums earned		44.8		%		47.1		%		55.4		%		50.8		%		45.2		%		47.4		%
Change in net loss and loss expense reserves / Net premiums earned		7.3		%		3.6		%		(2.1		%)		3.3		%		12.1		%		7.9		%
Net loss and loss expense ratio		52.1		%		50.7		%		53.3		%		54.1		%		57.3		%		55.3		%

21

AXIS Capital Holdings Limited

NET PROBABLE MAXIMUM LOSSES TO CERTAIN PEAK INDUSTRY CATASTROPHE EXPOSURES - AS OF OCTOBER 1, 2014

				Estimated Net Exposures (millions of U.S. dollars)
Territory		Peril		50 Year Return Period				100 Year Return Period				250 Year Return Period
Single zone, single event
Southeast		U.S. Hurricane		$	559			$	761			$	932
Northeast		U.S. Hurricane		60				195				341
Mid-Atlantic		U.S. Hurricane		100				301				688
Gulf of Mexico		U.S. Hurricane		351				498				768
California		Earthquake		369				512				623
Europe		Windstorm		219				304				399
Japan		Earthquake		175				295				475
Japan		Windstorm		56				92				132

The above table shows our Probable Maximum Loss (“PML”) to a single natural peril catastrophe event within certain defined single zones which correspond to peak industry catastrophe exposures at October 1, 2014. The return period refers to the frequency with which losses of a given amount or greater are expected to occur. A zone is a geographic area in which the insurance risks are considered to be correlated to a single catastrophic event. Estimated losses from a modeled event are grouped into a single zone, as shown above, based on where the majority of the total estimated industry loss is expected to occur.

As indicated in the table above, our modeled single occurrence 1-in-100 year return period PML for a Southeast hurricane, net of reinsurance, is approximately $0.8 billion. According to our modeling, there is a one percent chance that on an annual basis, our losses incurred from a Southeast hurricane event could be in excess of $0.8 billion. Conversely, there is a 99% chance that on an annual basis, the loss from a Southeast hurricane will fall below $0.8 billion.

We have developed our PML estimates using multiple commercially available catastrophe vendor models, including AIR and RMS. We weight the use of these vendor models based upon our own judgment and experience, and include in our estimates non-modeled perils and other factors which we believe provide us with a more complete view of catastrophe risk.

A supplementary disclosure entitled “Overview of AXIS Natural Peril Catastrophe Risk Measurement and Management” dated August 3, 2011 is available in the Investor Information section of our website. This disclosure provides an overview of our PML methodology, including our approach to zonal aggregation, as well as information about zonal definitions commonly used by other external parties.

Our PML estimates are based on assumptions that are inherently subject to significant uncertainties and contingencies. These uncertainties and contingencies can affect actual losses and could cause actual losses to differ materially from those expressed above. We aim to reduce the potential for model error in a number of ways, foremost by ensuring that management’s judgment supplements the model outputs. We also perform ongoing model validation both within our business units and through our catastrophe model validation unit. These validation procedures include sensitivity testing of models to understand their key variables and, where possible, back testing the model outputs to actual results.

Our estimated net losses from peak zone catastrophes may change from period to period as a result of several factors, which include but are not limited to, updates to vendor catastrophe models, changes in our own modeling, changes in our underwriting portfolios, changes to our reinsurance purchasing strategy and changes in foreign exchange rates.

22

AXIS Capital Holdings Limited

EARNINGS PER COMMON SHARE INFORMATION - AS REPORTED, GAAP

		Quarter ended September 30,								Nine months ended September 30,
		2014				2013				2014				2013
Net income available to common shareholders		$	279,104			$	137,121			$	606,992			$	512,383
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Weighted average shares outstanding - basic		102,945				111,676				105,683				114,606
Dilutive share equivalents:
Stock compensation plans		1,302				1,679				1,270				1,608
Weighted average shares outstanding - diluted		104,247				113,355				106,953				116,214
EARNINGS PER COMMON SHARE
Basic			$2.71				$1.23				$5.74				$4.47
Diluted			$2.68				$1.21				$5.68				$4.41

23

AXIS Capital Holdings Limited

EARNINGS PER COMMON SHARE INFORMATION AND COMMON SHARE ROLLFOWARD - QUARTERLY

		Q3 2014				Q2 2014				Q1 2014				Q4 2013				Q3 2013				Q3 2012
Net income available to common shareholders		$	279,104			$	190,664			$	137,227			$	171,524			$	137,121			$	223,407
COMMON SHARES OUTSTANDING
Common shares - at beginning of period		103,906				106,745				109,485				111,651				111,588				122,773
Shares issued, including those sourced from treasury		90				219				1,296				162				74				311
Shares repurchased for treasury		(3,169		)		(3,058		)		(4,036		)		(2,328		)		(11		)		(5,227		)
Common shares - at end of period		100,827				103,906				106,745				109,485				111,651				117,857
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Weighted average shares outstanding - basic		102,945				105,118				109,053				110,757				111,676				121,127
Dilutive share equivalents:
Stock compensation plans		1,302				1,171				1,338				1,945				1,679				1,825
Weighted average shares outstanding - diluted		104,247				106,289				110,391				112,702				113,355				122,952
EARNINGS PER COMMON SHARE
Basic			$2.71				$1.81				$1.26				$1.55				$1.23				$1.84
Diluted			$2.68				$1.79				$1.24				$1.52				$1.21				$1.82

24

AXIS Capital Holdings Limited

DILUTED BOOK VALUE PER COMMON SHARE ANALYSIS - TREASURY STOCK METHOD [a]

		At September 30, 2014
		Weighted Average Strike Price				Common Shareholders’ Equity				Outstanding Common Shares net of Treasury Shares			Per share
Closing stock price														$47.33
Book value per common share						$	5,190,646			100,827				$51.48
Dilutive securities: [b]
Restricted stocks										1,340			(0.67		)
Options			$27.96							32			(0.02		)
Restricted and phantom stock units										1,874			(0.91		)
Diluted book value per common share						$	5,190,646			104,073				$49.88
		At December 31, 2013
		Weighted Average Strike Price				Common Shareholders’ Equity				Outstanding Common Shares net of Treasury Shares			Per share
Closing stock price														$47.57
Book value per common share						$	5,190,119			109,485				$47.40
Dilutive securities: [b]
Restricted stocks										2,515			(1.06		)
Options			$27.98							88			(0.04		)
Restricted and phantom stock units										1,237			(0.50		)
Diluted book value per common share						$	5,190,119			113,325				$45.80

[a] This method assumes that proceeds received upon exercise of options will be used to repurchase our common shares at the closing market price. Unvested restricted stocks and units and unrestricted phantom stock units are also added to determine the diluted common shares outstanding.

[b] Excludes cash-settled restricted stock unit awards.

25

AXIS Capital Holdings Limited

OPERATING INCOME AND DILUTED TANGIBLE BOOK VALUE PER COMMON SHARE [a]

OPERATING INCOME [a]		Quarter ended September 30,								Nine months ended September 30,
		2014				2013				2014				2013
Net income available to common shareholders		$	279,104			$	137,121			$	606,992			$	512,383
Adjustment for:
Net realized (gains) losses		(77,448		)		4,708				(121,329		)		(56,004		)
Associated tax impact		1,482				(340		)		13,952				4,698
Foreign exchange losses (gains)		(72,292		)		56,860				(58,353		)		11,659
Associated tax impact		1,924				(1,672		)		1,319				(1,602		)
Loss on repurchase of preferred shares		—				—				—				3,081
Associated tax impact		—				—				—				—
Operating income		$	132,770			$	196,677			$	442,581			$	474,215
Net earnings per share - diluted		$	2.68			$	1.21			$	5.68			$	4.41
Adjustment for:
Net realized (gains) losses		(0.74		)		0.04				(1.13		)		(0.48		)
Associated tax impact		0.01				—				0.13				0.03
Foreign exchange losses (gains)		(0.69		)		0.50				(0.55		)		0.10
Associated tax impact		0.01				(0.01		)		0.01				(0.01		)
Loss on repurchase of preferred shares		—				—				—				0.03
Associated tax impact		—				—				—				—
Operating income per share - diluted		$	1.27			$	1.74			$	4.14			$	4.08
Weighted average common shares and common share equivalents - diluted		104,247				113,355				106,953				116,214
Average common shareholders' equity		$	5,259,257			$	5,047,045			$	5,190,383			$	5,218,452
Annualized return on average common equity		21.2		%		10.9		%		15.6		%		13.1		%
Annualized operating return on average common equity		10.1		%		15.6		%		11.4		%		12.1		%

DILUTED TANGIBLE BOOK VALUE PER COMMON SHARE - TREASURY STOCK METHOD [a] [b]
	September 30,				June 30,				March 31,				December 31,				September 30,				September 30,
	2014				2014				2014				2013				2013				2012
Common shareholders' equity	$	5,190,646			$	5,327,867			$	5,199,206			$	5,190,119			$	5,159,986			$	5,353,425
Less: goodwill and intangible assets	(88,740		)		(90,025		)		(90,350		)		(89,528		)		(91,656		)		(98,165		)
Tangible common shareholders' equity	$	5,101,906			$	5,237,842			$	5,108,856			$	5,100,591			$	5,068,330			$	5,255,260
Outstanding diluted common shares, net of treasury shares	104,073				107,228				110,327				113,325				115,684				122,865
Diluted book value per common share	$	49.88			$	49.69			$	47.13			$	45.80			$	44.60			$	43.57
Diluted tangible book value per common share	$	49.02			$	48.85			$	46.31			$	45.01			$	43.81			$	42.77

[a] Operating income and diluted tangible book value per common share are “non-GAAP financial measures” as defined by Regulation G. Reconciliations of operating income to net income available to common shareholders and diluted tangible book value per common share to diluted book value per common share are presented above.

[b] This method assumes that proceeds received upon exercise of options will be used to repurchase our common shares at the closing market price. Unvested restricted stocks and units and unrestricted phantom stock units are also added to determine the diluted common shares outstanding. Cash-settled restricted stock unit awards are excluded.

26

AXIS Capital Holdings Limited

ADJUSTED GROUP RESULTS [a]

		Quarter ended September 30, 2014																Nine months ended September 30, 2014
		Reported Group Results				Cession To AXIS Ventures Reinsurance Limited [b]				Adjustment For Agriculture Hedges				Adjusted Group Results [a]				Reported Group Results				Cession To AXIS Ventures Reinsurance Limited [b]				Adjustment For Agriculture Hedges				Adjusted Group Results [a]
UNDERWRITING REVENUES
Gross premiums written		$	896,814			$	—			$	—			$	896,814			$	3,949,479			$	—			$	—			$	3,949,479
Net premiums written		687,223				(32,862		)		—				654,361				3,351,958				(41,265		)		—				3,310,693
Gross premiums earned		1,160,577				—				—				1,160,577				3,487,990				—				—				3,487,990
Ceded premiums expensed		(194,439		)		(26,502		)		—				(220,941		)		(575,508		)		(30,669		)		—				(606,177		)
Net premiums earned		966,138				(26,502		)		—				939,636				2,912,482				(30,669		)		—				2,881,813
Other insurance related income [c]		7,702				—				(7,530		)		172				12,468				—				(9,243		)		3,225
Total underwriting revenues		973,840				(26,502		)		(7,530		)		939,808				2,924,950				(30,669		)		(9,243		)		2,885,038
UNDERWRITING EXPENSES
Net losses and loss expenses		552,064				(28,518		)		(7,530		)		516,016				1,662,097				(28,519		)		(9,243		)		1,624,335
Acquisition costs		185,950				(3,937		)		—				182,013				549,848				(5,072		)		—				544,776
Underwriting-related general and administrative expenses		122,362				(211		)		—				122,151				364,195				(451		)		—				363,744
Total underwriting expenses		860,376				(32,666		)		(7,530		)		820,180				2,576,140				(34,042		)		(9,243		)		2,532,855
UNDERWRITING INCOME		$	113,464			$	6,164			$	—			$	119,628			$	348,810			$	3,373			$	—			$	352,183
KEY RATIOS
Net loss and loss expense ratio		57.1		%										54.9		%		57.1		%										56.4		%
Acquisition cost ratio		19.2		%										19.4		%		18.9		%										18.9		%
Underwriting-related general and administrative expense ratio		12.7		%										12.9		%		12.4		%										12.6		%
Corporate expense ratio		3.2		%										3.3		%		3.2		%										3.2		%
Combined ratio		92.2		%										90.5		%		91.6		%										91.1		%

[a] Adjusted group results is a "non-GAAP financial measures" as defined in SEC Regulation G. Reconciliations of adjusted group results to the nearest GAAP financial measures (reported group results) are presented above.

[b] Amounts attributable from noncontrolling interests of $6,160 and $3,365 for the three and nine months ended September 30, 2014, respectively, also include net investment income attributable to noncontrolling interests of $4 and $8 for the three and nine months ended September 30, 2014, respectively.

[c] Other insurance related income primarily includes realized gains (losses) on our crop derivatives and the results of our weather and commodity business. This balance is adjusted to reclass the gains(losses) on our crop derivatives to net losses and loss expenses.

27

AXIS Capital Holdings Limited

ADJUSTED REINSURANCE SEGMENT RESULTS [a]

		Quarter ended September 30, 2014																Nine months ended September 30, 2014
		Reported Reinsurance Segment Results				Cession To AXIS Ventures Reinsurance Limited [b]				Adjustment For Agriculture Hedges				Adjusted Reinsurance Segment Results [a]				Reported Reinsurance Segment Results				Cession To AXIS Ventures Reinsurance Limited[b]				Adjustment For Agriculture Hedges				Adjusted Reinsurance Segment Results [a]
UNDERWRITING REVENUES
Gross premiums written		$	341,531			$	—			$	—			$	341,531			$	2,038,377			$	—			$	—			$	2,038,377
Net premiums written		323,652				(32,862		)		—				290,790				1,990,607				(41,265		)		—				1,949,342
Gross premiums earned		516,713				—				—				516,713				1,573,370				—				—				1,573,370
Ceded premiums expensed		(12,380		)		(26,502		)		—				(38,882		)		(29,571		)		(30,669		)		—				(60,240		)
Net premiums earned		504,333				(26,502		)		—				477,831				1,543,799				(30,669		)		—				1,513,130
Other insurance related income [c]		7,702				—				(7,530		)		172				12,468				—				(9,243		)		3,225
Total underwriting revenues		512,035				(26,502		)		(7,530		)		478,003				1,556,267				(30,669		)		(9,243		)		1,516,355
UNDERWRITING EXPENSES
Net losses and loss expenses		262,857				(28,518		)		(7,530		)		226,809				803,004				(28,519		)		(9,243		)		765,242
Acquisition costs		114,686				(3,937		)		—				110,749				342,488				(5,072		)		—				337,416
Underwriting-related general and administrative expenses		36,612				(211		)		—				36,401				106,987				(451		)		—				106,536
Total underwriting expenses		414,155				(32,666		)		(7,530		)		373,959				1,252,479				(34,042		)		(9,243		)		1,209,194
UNDERWRITING INCOME		$	97,880			$	6,164			$	—			$	104,044			$	303,788			$	3,373			$	—			$	307,161
KEY RATIOS
Net loss and loss expense ratio		52.1		%										47.5		%		52.0		%										50.6		%
Acquisition cost ratio		22.7		%										23.2		%		22.2		%										22.3		%
General and administrative expense ratio		7.3		%										7.6		%		6.9		%										7.0		%
Combined ratio		82.1		%										78.3		%		81.1		%										79.9		%

[a] Adjusted reinsurance segment results is a "non-GAAP financial measures" as defined in SEC Regulation G. Reconciliations of adjusted reinsurance segment results to the nearest GAAP financial measures (reported reinsurance segment results) are presented above.

[b] Amounts attributable from noncontrolling interests of $6,160 and $3,365 for the three and nine months ended September 30, 2014, respectively, also include net investment income attributable to noncontrolling interests of $4 and $8 for the three and nine months ended September 30, 2014, respectively.

[c] Other insurance related income primarily includes realized gains (losses) on our crop derivatives and the results of our weather and commodity business. This balance is adjusted to reclass the gains(losses) on our crop derivatives to net losses and loss expenses.

28

AXIS Capital Holdings Limited

USE OF NON-GAAP FINANCIAL MEASURES

In this document, we present operating income, consolidated underwriting income, underwriting-related general and administrative expenses, diluted tangible book value per common share, adjusted group results and adjusted reinsurance segment results, which are “non-GAAP financial measures” as defined in Regulation G.

Operating income represents after-tax operational results without consideration of after-tax net realized investment gains (losses), foreign exchange (losses) gains and losses on the repurchase of preferred shares. We also present diluted operating earnings per share and operating return on average common equity ("operating ROACE"), which are derived from the non-GAAP operating income measure. Reconciliations of operating income, diluted operating earnings per share and operating ROACE to the nearest GAAP financial measures (based on net income available to common shareholders) are included on the previous page.

Consolidated underwriting income is a pre-tax measure of underwriting profitability that takes into account net premiums earned and other insurance related income as revenues and net losses and loss expenses, acquisition costs and underwriting-related general and administrative costs as expenses. Underwriting-related general and administrative expenses include those general and administrative expenses that are incremental and/or directly attributable to our individual underwriting operations. While these measures are presented in the Segment Information footnote to our Consolidated Financial Statements, they are considered non-GAAP financial measures when presented elsewhere on a consolidated basis. A reconciliation of consolidated underwriting income to income before income taxes (the nearest GAAP financial measure) is included in the 'Consolidated Statements of Income - Quarterly' and 'Consolidated Statements of Income - Year To Date' sections of this document. Our total general and administrative expenses (the nearest GAAP financial measure to underwriting-related general and administrative expenses) also includes corporate expenses; the two components are separately presented in the 'Consolidated Statements of Income - Quarterly' and 'Consolidated Statements of Income - Year To Date' sections of this document.

Tangible book value is defined as common shareholders' equity excluding goodwill and intangible assets. Diluted tangible book value per common share uses this measure as the numerator, with the denominator being outstanding diluted common shares calculated under the treasury stock method. A reconciliation of diluted tangible book value per common share to diluted book value per common share (the nearest GAAP financial measure) is included on the previous page.

Adjusted group results and adjusted reinsurance segment results represent the group and the reinsurance segment results after adjusting for ceded transactions with AXIS Ventures Reinsurance Limited (Ventures Re) and realized gains (losses) on crop derivatives. A reconciliation of adjusted group results to reported group results (the nearest GAAP financial measure) is included in the 'Adjusted Group Results' section of this document. A reconciliation of adjusted reinsurance segment results to reported reinsurance segment results (the nearest GAAP financial measure) is included in the 'Adjusted Reinsurance Segment Results' section of this document.

We present our results of operations in the way we believe will be most meaningful and useful to investors, analysts, rating agencies and others who use our financial information to evaluate our performance. This includes the presentation of “operating income” (in total and on a per share basis), “annualized operating ROACE” (which is based on the “operating income” measure), "consolidated underwriting income" (which incorporates "underwriting-related general and administrative expenses"), diluted tangible book value per common share and adjusted reinsurance results.

Operating Income

Although the investment of premiums to generate income and realized investment gains (or losses) is an integral part of our operations, the determination to realize investment gains (or losses) is independent of the underwriting process and is heavily influenced by the availability of market opportunities. Furthermore, many users believe that the timing of the realization of investment gains (or losses) is somewhat opportunistic for many companies.

Foreign exchange (losses) gains in our Consolidated Statements of Operations are primarily driven by the impact of foreign exchange rate movements on net insurance-related liabilities. However, this movement is only one element of the overall impact of foreign exchange rate fluctuations on our financial position. In addition, we recognize unrealized foreign exchange (losses) gains on our available-for-sale investments in other comprehensive income and foreign exchange (losses) gains realized upon the sale of these investments in net realized investment (losses) gains. These unrealized and realized foreign exchange movements generally offset a large portion of the foreign exchange (losses) gains reported separately in earnings, thereby minimizing the impact of foreign exchange rate movements on total shareholders’ equity. As such, the Statement of Operations foreign exchange (losses) gains in isolation are not a fair representation of the performance of our business.

Losses on repurchase of preferred shares arise from capital transactions and, therefore, are not reflective of underlying business performance.

29

In this regard, certain users of our financial statements evaluate earnings excluding after-tax net realized investment gains (losses), foreign exchange (losses) gains and losses on repurchase of preferred shares to understand the profitability of recurring sources of income. We believe that showing net income available to common shareholders exclusive of net realized gains (losses), foreign exchange (losses) gains and losses on repurchase of preferred shares reflects the underlying fundamentals of our business. In addition, we believe that this presentation enables investors and other users of our financial information to analyze performance in a manner similar to how our management analyzes the underlying business performance. We also believe this measure follows industry practice and, therefore, facilitates comparison of our performance with our peer group. We believe that equity analysts and certain rating agencies that follow us, and the insurance industry as a whole, generally exclude these items from their analysis for the same reasons.

Consolidated Underwriting Income/Underwriting-Related General and Administrative Expenses

Corporate expenses include holding company costs necessary to support our worldwide (re)insurance operations and costs associated with operating as a publicly-traded company. As these costs are not incremental and/or directly attributable to our individual underwriting operations, we exclude them from underwriting-related general and administrative expenses and, therefore, consolidated underwriting income. Interest expense and financing costs primarily relate to interest payable on our senior notes and are excluded from consolidated underwriting income for the same reason.

We evaluate our underwriting results separately from the performance of our investment portfolio. As such, we believe it appropriate to exclude net investment income and net realized investment gains (losses) from our underwriting profitability measure.

As noted above, foreign exchange (losses) gains in our Consolidated Statement of Operations primarily relate to our net insurance-related liabilities. However, we manage our investment portfolio in such a way that unrealized and realized foreign exchange rate gains (losses) on our investment portfolio generally offset a large portion of the foreign exchange (losses) gains arising from our underwriting portfolio. As a result, we believe that foreign exchange (losses) gains are not a meaningful contributor to our underwriting performance and, therefore, exclude them from consolidated underwriting income. We believe that presentation of underwriting-related general and administrative expenses and consolidated underwriting income provides investors with an enhanced understanding of our results of operations, by highlighting the underlying pre-tax profitability of our underwriting activities.

Diluted Tangible Book Value per Common Share

Diluted tangible book value per common share removes certain effects of purchase accounting. We believe that this measure, in combination with diluted book value per common share, is useful in assessing value generated for our common shareholders.

Adjusted Group Results/Adjusted Reinsurance Segment Results

Adjusted group results and adjusted reinsurance segment results include the impact of ceded reinsurance transactions with Ventures Re that are presented on a net basis in the amounts attributable to (from) noncontrolling interests within our Consolidated Financial Statements and the reclassification of the realized gains (losses) on crop derivatives from other insurance related income to net losses and loss expenses.

Ventures Re is a variable interest entity and AXIS Capital was determined to be its primary beneficiary. Following this determination Ventures Re is consolidated in our Consolidated Financial Statements. To date Ventures Re has only assumed business written by AXIS Capital. As the underwriting performance of the business assumed by Ventures Re has been fully collateralized through capital provided by third party investors, we believe that presenting the underwriting results of our group and of the reinsurance segment net of the cessions to Ventures Re provides additional relevant information in assessing the performance of our group and of the reinsurance segment.

Additionally, we purchase crop derivatives to protect our agriculture reinsurance products from a significant decline in commodity prices that would impact our group and reinsurance segment underwriting results. These derivatives were purchased to provide economic benefit similar to reinsurance protection. We view movements in these derivatives as part of the results of our underwriting operations that should be seen as an offset against the net losses and loss expenses incurred on this line of business.

We believe that showing our underwriting metrics net of cessions to Ventures Re and the impact of crop derivatives aids in the understanding of the underlying fundamentals of our reinsurance business. In addition, we believe that this presentation enables investors and other users of our financial information to analyze performance in a manner similar to how our management analyzes the underlying business performance. We also believe this measure follows the practices of our industry peers and, therefore, facilitates comparison of our performance with our peer group.

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