NONCONTROLLING INTERESTS

3 Months Ended

Mar. 31, 2015

During November 2013, the Company formed AXIS Ventures Reinsurance Limited ("Ventures Re"), a Bermuda domiciled insurer. Ventures Re was formed to write reinsurance on a fully collateralized basis.

During the first quarter of 2015, Ventures Re repurchased $40 million of Class A non-voting redeemable preferred shares. Additionally, during the first quarter of 2015, third party investors purchased $57 million of Class C non-voting redeemable preferred share capital issued by Ventures Re. The Ventures Re Class C preferred shares are redeemable at the sole discretion of Ventures Re's Board of Directors.

Ventures Re is considered to be a variable interest entity. The Company has concluded that it is the primary beneficiary of Ventures Re as it has the power to direct, and has more than an insignificant economic interest in, the activities of this entity. Following this determination, Ventures Re was consolidated by the Company. Shareholders' equity attributable to Ventures Re's third party investors is recorded in the Consolidated Financial Statements as noncontrolling interests.

At March 31, 2015, total assets of Ventures Re were $120 million (2014: $97 million), consisting primarily of cash and cash equivalents and insurance receivables. Total liabilities were $50 million (2014: $38 million) consisting primarily of loss reserves and unearned premium. The assets of Ventures Re can only be used to settle its own liabilities, and there is no recourse to the Company for any liabilities incurred by this entity.

The reconciliation of the beginning and ending balances of the noncontrolling interests in Ventures Re for the periods indicated below was as follows:




Three months ended March 31,	2015			2014

Balance at beginning of period	$	58,819		$	50,000
Increase from issuance of preferred equity to noncontrolling interests	56,991			—
Decrease from return of capital to noncontrolling interests	(40,000		)	—
Amounts attributable to (from) noncontrolling interests	(4,873		)	1,222
Foreign currency translation adjustment attributable to (from) noncontrolling interests	(1,865		)	—
Balance at end of period	$	69,072		$	51,222

- Definition

The entire disclosure for noncontrolling interest in consolidated subsidiaries, which could include the name of the subsidiary, the ownership percentage held by the parent, the ownership percentage held by the noncontrolling owners, the amount of the noncontrolling interest, the location of this amount on the balance sheet (when not reported separately), an explanation of the increase or decrease in the amount of the noncontrolling interest, the noncontrolling interest share of the net Income or Loss of the subsidiary, the location of this amount on the income statement (when not reported separately), the nature of the noncontrolling interest such as background information and terms, the amount of the noncontrolling interest represented by preferred stock, a description of the preferred stock, and the dividend requirements of the preferred stock.

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