Exhibit

EX-99.2 3 axsex99-2.htm THIRD QUARTER 2015 INVESTOR FINANCIAL SUPPLEMENT Exhibit

AXIS Capital Holdings Limited

INVESTOR FINANCIAL SUPPLEMENT

THIRD QUARTER 2015





		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 Premiums 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		26
b. Diluted Tangible Book Value Per Common Share		27
c. Use of Non-GAAP Financial Measures		28

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, 2014.


•	Amounts may not reconcile exactly due to rounding differences.

•

During the second quarter of 2015, AXIS Capital Holdings Limited (the "Company") early adopted the Accounting Standard Update (“ASU”) 2015-02, “Amendments to the Consolidation Analysis” issued by the Financial Accounting Standards Board. The adoption of this amended accounting guidance resulted in the Company concluding that it is no longer required to consolidate the results of operations and the financial position of AXIS Ventures Reinsurance Limited (“Ventures Re”), a Bermuda domiciled insurer. The Company adopted this revised accounting guidance using the modified retrospective approach and ceased to consolidate Ventures Re effective as of January 1, 2015. The first quarter 2015 results have been adjusted to reflect the adoption of this guidance throughout this document. There was no impact from the adoption of ASU 2015-02 on the Company’s cumulative retained earnings.


•	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,


•	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.

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, medical malpractice 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. wholesale and retail 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.

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.

The reinsurance segment also writes, primarily derivative based, risk management products designed to address weather and commodity price risks. The majority of these contracts cover the risk of variations in quantifiable weather-related phenomenon, such as temperature. In general, the portfolio of such derivatives is of short duration, with contracts being predominately seasonal in nature.

iii

AXIS Capital Holdings Limited

FINANCIAL HIGHLIGHTS



		Quarter ended September 30,									Nine months ended September 30,
		2015			2014			Change			2015			2014			Change

HIGHLIGHTS	Gross premiums written	$	936,583		$	896,814		4.4	%		$	3,803,928		$	3,949,479		(3.7	%)
	Gross premiums written - Insurance	64.8		%	61.9		%	2.9		pts	51.8		%	48.4		%	3.4		pts
	Gross premiums written - Reinsurance	35.2		%	38.1		%	(2.9	)	pts	48.2		%	51.6		%	(3.4	)	pts
	Net premiums written	$	677,217		$	687,223		(1.5	%)		$	3,079,307		$	3,351,958		(8.1	%)
	Net premiums earned	$	919,341		$	966,138		(4.8	%)		$	2,764,605		$	2,912,482		(5.1	%)
	Net premiums earned - Insurance	48.4		%	47.8		%	0.6		pts	48.6		%	47.0		%	1.6		pts
	Net premiums earned - Reinsurance	51.6		%	52.2		%	(0.6	)	pts	51.4		%	53.0		%	(1.6	)	pts
	Net income available to common shareholders	$	247,620		$	279,104		(11.3	%)		$	466,772		$	606,992		(23.1	%)
	Operating income [a]	51,031			132,770			(61.6	%)		280,682			442,581			(36.6	%)
	Reserve for losses and loss expenses	9,703,583			9,751,903			(0.5	%)		9,703,583			9,751,903			(0.5	%)
	Total shareholders’ equity attributable to AXIS Capital	$	5,826,366		$	5,818,489		0.1	%		$	5,826,366		$	5,818,489		0.1	%


PER COMMON SHARE AND COMMON SHARE DATA	Basic earnings per common share		$2.52			$2.71		(7.0	%)			$4.69			$5.74		(18.3	%)
	Diluted earnings per common share	2.50			2.68			(6.7	%)		4.65			5.68			(18.1	%)
	Operating income per common share - diluted [b]		$0.51			$1.27		(59.8	%)			$2.79			$4.14		(32.6	%)
	Weighted average common shares outstanding	98,226			102,945			(4.6	%)		99,464			105,683			(5.9	%)
	Diluted weighted average common shares outstanding	99,124			104,247			(4.9	%)		100,468			106,953			(6.1	%)
	Book value per common share [c]		$54.91			$51.48		6.7	%			$54.91			$51.48		6.7	%
	Diluted book value per common share (treasury stock method) [c]	53.68			49.88			7.6	%		53.68			49.88			7.6	%
	Diluted tangible book value per common share (treasury stock method) [a][c]	52.78			49.02			7.7	%		52.78			49.02			7.7	%
	Accumulated dividends declared per common share		$9.85			$8.69		13.3	%			$9.85			$8.69		13.3	%


FINANCIAL RATIOS	ROACE [d]	18.8		%	21.2		%	(2.4	)	pts	12.0		%	15.6		%	(3.6	)	pts
	Operating ROACE [e]	3.9		%	10.1		%	(6.2	)	pts	7.2		%	11.4		%	(4.2	)	pts
	Net loss and loss expense ratio	61.0		%	57.1		%	3.9		pts	59.8		%	57.1		%	2.7		pts
	Acquisition cost ratio	19.9		%	19.2		%	0.7		pts	19.4		%	18.9		%	0.5		pts
	General and administrative expense ratio	15.7		%	15.9		%	(0.2	)	pts	16.5		%	15.6		%	0.9		pts
	Combined ratio	96.6		%	92.2		%	4.4		pts	95.7		%	91.6		%	4.1		pts


INVESTMENT DATA	Total assets	$	20,557,341		$	20,965,047		(1.9	%)		$	20,557,341		$	20,965,047		(1.9	%)
	Total cash and invested assets [f]	14,724,806			15,451,826			(4.7	%)		14,724,806			15,451,826			(4.7	%)
	Net investment income	45,685			66,562			(31.4	%)		226,336			264,171			(14.3	%)
	Net realized investment gains (losses)	$	(69,957	)	$	77,448		nm			$	(123,618	)	$	121,329		nm
	Total return on cash and investments (inclusive of investment related foreign exchange movements) [g]	(0.3		%)	(0.7		%)	0.4		pts	0.3		%	1.9		%	(1.6	)	pts
	Total return on cash and investments (exclusive of investment related foreign exchange movements) [g]	(0.1		%)	(0.1		%)	—		pts	0.9		%	2.4		%	(1.5	)	pts
	Return on other investments [h]	(3.3		%)	(0.3		%)	(3.0	)	pts	2.0		%	4.6		%	(2.6	)	pts
	Book yield of fixed maturities	2.5		%	2.5		%	—		pts	2.5		%	2.5		%	—		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 page 27 for 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 diluted weighted average common shares and share equivalents outstanding.


[c]	Calculation at September 30, 2015 includes 1,372,048 additional shares expected to be delivered to the Company under the Company's Accelerated Share Repurchase ("ASR") agreement. See page 25 'Diluted Book Value per Common Share Analysis' for more details.


[d]	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.


[e]	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.


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


[g]	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.


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

AXIS Capital Holdings Limited

CONSOLIDATED STATEMENTS OF INCOME - QUARTERLY



	Q3 2015			Q2 2015			Q1 2015			Q4 2014			Q3 2014			Q3 2013
UNDERWRITING REVENUES
Gross premiums written	$	936,583		$	1,188,413		$	1,678,932		$	762,040		$	896,814		$	904,797
Premiums ceded	(259,366		)	(241,869		)	(223,386		)	(207,023		)	(209,591		)	(188,408		)
Net premiums written	677,217			946,544			1,455,546			555,017			687,223			716,389

Gross premiums earned	1,148,356			1,158,755			1,114,311			1,164,355			1,160,577			1,125,289
Ceded premiums expensed	(229,015		)	(217,544		)	(210,258		)	(205,838		)	(194,439		)	(180,047		)
Net premiums earned	919,341			941,211			904,053			958,517			966,138			945,242
Other insurance related income (loss)	1,158			3,486			7,676			(11,818		)	7,702			725
Total underwriting revenues	920,499			944,697			911,729			946,699			973,840			945,967

UNDERWRITING EXPENSES
Net losses and loss expenses	560,387			580,153			512,328			524,625			552,064			501,522
Acquisition costs	182,744			183,263			171,542			187,349			185,950			173,682
Underwriting-related general and administrative expenses [a]	121,123			124,433			127,069			122,005			122,362			117,675
Total underwriting expenses	864,254			887,849			810,939			833,979			860,376			792,879

UNDERWRITING INCOME [b]	56,245			56,848			100,790			112,720			113,464			153,088

OTHER OPERATING REVENUE (EXPENSES)
Net investment income	45,685			88,544			92,107			78,595			66,562			103,429
Net realized investment gains (losses)	(69,957		)	(11,110		)	(42,553		)	10,779			77,448			(4,708		)
Interest expense and financing costs	(12,918		)	(12,939		)	(12,257		)	(17,783		)	(20,344		)	(15,260		)
Total other operating revenues (expenses)	(37,190		)	64,495			37,297			71,591			123,666			83,461

OTHER (EXPENSES) REVENUE
Foreign exchange (losses) gains	28,088			(22,108		)	63,220			46,086			72,292			(56,860		)
Termination fee received	280,000			—			—			—			—			—
Corporate expenses [a]	(23,604		)	(24,049		)	(36,172		)	(43,145		)	(30,554		)	(23,024		)
Reorganization and related expenses	(45,867		)	—			—			—			—			—
Total other (expenses) revenues	238,617			(46,157		)	27,048			2,941			41,738			(79,884		)

INCOME BEFORE INCOME TAXES	257,672			75,186			165,135			187,252			278,868			156,665

Income tax (expense) benefit	(30		)	(1,815		)	690			(16,382		)	4,098			(6,030		)

NET INCOME	257,642			73,371			165,825			170,870			282,966			150,635

Amounts attributable from noncontrolling interests	—			—			—			2,815			6,160			—

NET INCOME ATTRIBUTABLE TO AXIS CAPITAL	257,642			73,371			165,825			173,685			289,126			150,635

Preferred share dividends	(10,022		)	(10,022		)	(10,022		)	(10,022		)	(10,022		)	(13,514		)

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	247,620		$	63,349		$	155,803		$	163,663		$	279,104		$	137,121

KEY RATIOS/PER SHARE DATA
Net loss and loss expense ratio	61.0		%	61.6		%	56.7		%	54.7		%	57.1		%	53.1		%
Acquisition cost ratio	19.9		%	19.5		%	19.0		%	19.5		%	19.2		%	18.4		%
General and administrative expense ratio [a]	15.7		%	15.8		%	18.0		%	17.3		%	15.9		%	14.8		%
Combined ratio	96.6		%	96.9		%	93.7		%	91.5		%	92.2		%	86.3		%

Weighted average basic shares outstanding	98,226			100,274			99,910			100,468			102,945			111,676
Weighted average diluted shares outstanding	99,124			101,160			101,139			102,038			104,247			113,355
Basic earnings per common share		$2.52			$0.63			$1.56			$1.63			$2.71			$1.23
Diluted earnings per common share		$2.50			$0.63			$1.54			$1.60			$2.68			$1.21
ROACE (annualized)	18.8		%	4.7		%	11.8		%	12.6		%	21.2		%	10.9		%
Operating ROACE (annualized)	3.9		%	7.0		%	10.3		%	9.3		%	10.1		%	15.6		%


[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 and on the following page.

AXIS Capital Holdings Limited

CONSOLIDATED STATEMENTS OF INCOME - YEAR TO DATE



	Nine months ended September 30,									Year ended December 31,
	2015			2014			2013			2014			2013
UNDERWRITING REVENUES
Gross premiums written	$	3,803,928		$	3,949,479		$	3,871,085		$	4,711,519		$	4,697,041
Premiums ceded	(724,621		)	(597,521		)	(590,849		)	(804,544		)	(768,841		)
Net premiums written	3,079,307			3,351,958			3,280,236			3,906,975			3,928,200

Gross premiums earned	3,421,422			3,487,990			3,330,123			4,652,345			4,459,269
Ceded premiums expensed	(656,817		)	(575,508		)	(564,969		)	(781,346		)	(752,204		)
Net premiums earned	2,764,605			2,912,482			2,765,154			3,870,999			3,707,065
Other insurance related income	12,319			12,468			1,756			650			4,424
Total underwriting revenues	2,776,924			2,924,950			2,766,910			3,871,649			3,711,489

UNDERWRITING EXPENSES
Net losses and loss expenses	1,652,868			1,662,097			1,582,835			2,186,722			2,134,195
Acquisition costs	537,549			549,848			488,892			737,197			664,191
Underwriting-related general and administrative expenses	372,625			364,195			361,373			486,201			485,134
Total underwriting expenses	2,563,042			2,576,140			2,433,100			3,410,120			3,283,520

UNDERWRITING INCOME	213,882			348,810			333,810			461,529			427,969

OTHER OPERATING REVENUE (EXPENSES)
Net investment income	226,336			264,171			295,450			342,766			409,312
Net realized investment gains (losses)	(123,618		)	121,329			56,004			132,108			75,564
Interest expense and financing costs	(38,114		)	(56,913		)	(46,355		)	(74,695		)	(61,979		)
Total other operating revenues	64,604			328,587			305,099			400,179			422,897

OTHER (EXPENSES) REVENUE
Foreign exchange gains (losses)	69,200			58,353			(11,659		)	104,439			(26,143		)
Termination fee received	280,000			—			—			—			—
Corporate expenses [a]	(83,826		)	(92,530		)	(69,834		)	(135,675		)	(90,256		)
Reorganization and related expenses	(45,867		)	—			—			—			—
Total other expenses	219,507			(34,177		)	(81,493		)	(31,236		)	(116,399		)

INCOME BEFORE INCOME TAXES	497,993			643,220			557,416			830,472			734,467

Income tax expense	(1,155		)	(9,527		)	(11,500		)	(25,908		)	(7,002		)

NET INCOME	496,838			633,693			545,916			804,564			727,465

Amounts attributable from noncontrolling interests	—			3,365			—			6,181			—

NET INCOME ATTRIBUTABLE TO AXIS CAPITAL	496,838			637,058			545,916			810,745			727,465

Preferred share dividends	(30,066		)	(30,066		)	(30,452		)	(40,088		)	(40,474		)
Loss on repurchase of preferred shares	—			—			(3,081		)	—			(3,081		)

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	466,772		$	606,992		$	512,383		$	770,657		$	683,910

KEY RATIOS/PER SHARE DATA
Net loss and loss expense ratio	59.8		%	57.1		%	57.2		%	56.5		%	57.6		%
Acquisition cost ratio	19.4		%	18.9		%	17.7		%	19.0		%	17.9		%
General and administrative expense ratio [a]	16.5		%	15.6		%	15.6		%	16.1		%	15.5		%
Combined ratio	95.7		%	91.6		%	90.5		%	91.6		%	91.0		%

Weighted average basic shares outstanding	99,464			105,683			114,606			104,368			113,636
Weighted average diluted shares outstanding	100,468			106,953			116,214			105,713			115,328
Basic earnings per common share		$4.69			$5.74			$4.47			$7.38			$6.02
Diluted earnings per common share		$4.65			$5.68			$4.41			$7.29			$5.93
ROACE [b]	12.0		%	15.6		%	13.1		%	14.8		%	13.1		%
Operating ROACE [b]	7.2		%	11.4		%	12.1		%	10.8		%	12.1		%


[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.

AXIS Capital Holdings Limited

CONSOLIDATED SEGMENT DATA



	Quarter ended September 30, 2015									Nine months ended September 30, 2015
	Insurance			Reinsurance			Total			Insurance			Reinsurance			Total
UNDERWRITING REVENUES
Gross premiums written	$	606,704		$	329,879		$	936,583		$	1,970,554		$	1,833,374		$	3,803,928
Net premiums written	381,118			296,099			677,217			1,352,122			1,727,185			3,079,307

Gross premiums earned	647,024			501,332			1,148,356			1,934,425			1,486,997			3,421,422
Ceded premiums expensed	(202,474		)	(26,541		)	(229,015		)	(590,086		)	(66,731		)	(656,817		)
Net premiums earned	444,550			474,791			919,341			1,344,339			1,420,266			2,764,605
Other insurance related income	542			616			1,158			811			11,508			12,319
Total underwriting revenues	445,092			475,407			920,499			1,345,150			1,431,774			2,776,924

UNDERWRITING EXPENSES
Net losses and loss expenses	283,272			277,115			560,387			866,580			786,288			1,652,868
Acquisition costs	69,118			113,626			182,744			200,493			337,056			537,549
Underwriting-related general and administrative expenses	85,814			35,309			121,123			261,924			110,701			372,625
Total underwriting expenses	438,204			426,050			864,254			1,328,997			1,234,045			2,563,042

UNDERWRITING INCOME	$	6,888		$	49,357		$	56,245		$	16,153		$	197,729		$	213,882

KEY RATIOS
Current accident year loss ratio	64.3		%	67.4		%	65.9		%	66.0		%	65.5		%	65.8		%
Prior period reserve development	(0.6		%)	(9.0		%)	(4.9		%)	(1.5		%)	(10.1		%)	(6.0		%)
Net loss and loss expense ratio	63.7		%	58.4		%	61.0		%	64.5		%	55.4		%	59.8		%
Acquisition cost ratio	15.5		%	23.9		%	19.9		%	14.9		%	23.7		%	19.4		%
Underwriting-related general and administrative expense ratio	19.4		%	7.4		%	13.1		%	19.5		%	7.8		%	13.5		%
Corporate expense ratio							2.6		%							3.0		%
Combined ratio	98.6		%	89.7		%	96.6		%	98.9		%	86.9		%	95.7		%

AXIS Capital Holdings Limited

GROSS PREMIUMS WRITTEN BY SEGMENT BY LINE OF BUSINESS



																Nine months ended September 30,
	Q3 2015			Q2 2015		Q1 2015		Q4 2014			Q3 2014			Q3 2013		2015		2014

INSURANCE SEGMENT
Property	$	139,488		$	196,817	$	129,624	$	153,563		$	143,236		$	147,485	$	465,929	$	490,953
Marine	38,817			85,483		91,586		26,236			41,529			38,406		215,885		212,084
Terrorism	11,192			6,610		7,935		10,194			11,055			10,418		25,737		27,511
Aviation	10,222			9,519		10,014		26,601			17,735			4,379		29,755		31,020
Credit and Political Risk	8,542			12,981		8,117		16,100			3,782			7,099		29,640		29,268
Professional Lines	196,218			251,730		150,422		267,950			196,576			208,174		598,370		594,835
Liability	104,666			112,870		82,667		92,608			94,833			100,018		300,204		275,842
Accident and Health	97,559			85,116		122,359		31,061			46,537			58,799		305,034		249,589
TOTAL INSURANCE SEGMENT	606,704			761,126		602,724		624,313			555,283			574,778		1,970,554		1,911,102

REINSURANCE SEGMENT
Catastrophe	56,693			95,653		131,216		13,101			71,319			71,851		283,562		359,824
Property	67,539			58,258		182,012		4,099			45,030			58,294		307,809		345,677
Professional Lines	45,509			94,152		65,024		69,236			51,007			66,017		204,685		224,028
Credit and Surety	23,390			16,210		191,357		6,104			23,933			29,487		230,958		252,761
Motor	21,359			14,196		297,690		5,152			9,445			4,286		333,245		286,141
Liability	111,361			57,730		89,772		34,769			145,488			75,100		258,862		330,698
Agriculture	(3,303		)	72,709		69,729		(3,577		)	(10,206		)	8,659		139,135		169,624
Engineering	4,397			15,707		38,059		7,589			2,579			12,462		58,163		47,861
Other	2,934			2,672		11,349		1,254			2,936			3,863		16,955		21,763
TOTAL REINSURANCE SEGMENT	329,879			427,287		1,076,208		137,727			341,531			330,019		1,833,374		2,038,377

CONSOLIDATED TOTAL	$	936,583		$	1,188,413	$	1,678,932	$	762,040		$	896,814		$	904,797	$	3,803,928	$	3,949,479

AXIS Capital Holdings Limited

INSURANCE SEGMENT DATA - QUARTERLY



	Q3 2015			Q2 2015			Q1 2015			Q4 2014			Q3 2014			Q3 2013
UNDERWRITING REVENUES
Gross premiums written	$	606,704		$	761,126		$	602,724		$	624,313		$	555,283		$	574,778
Net premiums written	381,118			534,263			436,740			418,150			363,571			393,627

Gross premiums earned	647,024			649,053			638,348			655,199			643,864			626,005
Ceded premiums expensed	(202,474		)	(196,731		)	(190,881		)	(193,339		)	(182,059		)	(177,933		)
Net premiums earned	444,550			452,322			447,467			461,860			461,805			448,072
Other insurance related income (loss)	542			269			—			(12		)	—			725
Total underwriting revenues	445,092			452,591			447,467			461,848			461,805			448,797

UNDERWRITING EXPENSES
Net losses and loss expenses	283,272			297,534			285,773			272,787			289,207			216,440
Acquisition costs	69,118			66,920			64,455			71,444			71,264			61,087
General and administrative expenses	85,814			88,420			87,689			84,005			85,750			82,548
Total underwriting expenses	438,204			452,874			437,917			428,236			446,221			360,075

UNDERWRITING INCOME (LOSS)	$	6,888		$	(283	)	$	9,550		$	33,612		$	15,584		$	88,722

KEY RATIOS
Current accident year loss ratio	64.3		%	69.2		%	64.6		%	61.2		%	64.7		%	55.9		%
Prior period reserve development	(0.6		%)	(3.4		%)	(0.7		%)	(2.1		%)	(2.1		%)	(7.6		%)
Net loss and loss expense ratio	63.7		%	65.8		%	63.9		%	59.1		%	62.6		%	48.3		%
Acquisition cost ratio	15.5		%	14.8		%	14.4		%	15.5		%	15.4		%	13.6		%
General and administrative expense ratio	19.4		%	19.5		%	19.6		%	18.1		%	18.6		%	18.5		%
Combined ratio	98.6		%	100.1		%	97.9		%	92.7		%	96.6		%	80.4		%

AXIS Capital Holdings Limited

REINSURANCE SEGMENT DATA - QUARTERLY



	Q3 2015			Q2 2015			Q1 2015			Q4 2014			Q3 2014			Q3 2013
UNDERWRITING REVENUES
Gross premiums written	$	329,879		$	427,287		$	1,076,208		$	137,727		$	341,531		$	330,019
Net premiums written	296,099			412,281			1,018,806			136,867			323,652			322,762

Gross premiums earned	501,332			509,702			475,963			509,156			516,713			499,284
Ceded premiums expensed	(26,541		)	(20,813		)	(19,377		)	(12,499		)	(12,380		)	(2,114		)
Net premiums earned	474,791			488,889			456,586			496,657			504,333			497,170
Other insurance related income (loss)	616			3,217			7,676			(11,806		)	7,702			—
Total underwriting revenues	475,407			492,106			464,262			484,851			512,035			497,170

UNDERWRITING EXPENSES
Net losses and loss expenses	277,115			282,619			226,555			251,838			262,857			285,082
Acquisition costs	113,626			116,343			107,087			115,905			114,686			112,595
General and administrative expenses	35,309			36,013			39,380			38,000			36,612			35,127
Total underwriting expenses	426,050			434,975			373,022			405,743			414,155			432,804

UNDERWRITING INCOME	$	49,357		$	57,131		$	91,240		$	79,108		$	97,880		$	64,366

KEY RATIOS
Current accident year loss ratio	67.4		%	67.9		%	61.2		%	62.0		%	63.0		%	66.6		%
Prior period reserve development	(9.0		%)	(10.1		%)	(11.6		%)	(11.3		%)	(10.9		%)	(9.3		%)
Net loss and loss expense ratio	58.4		%	57.8		%	49.6		%	50.7		%	52.1		%	57.3		%
Acquisition cost ratio	23.9		%	23.8		%	23.5		%	23.3		%	22.7		%	22.6		%
General and administrative expense ratio	7.4		%	7.4		%	8.6		%	7.7		%	7.3		%	7.2		%
Combined ratio	89.7		%	89.0		%	81.7		%	81.7		%	82.1		%	87.1		%

AXIS Capital Holdings Limited

NET INVESTMENT INCOME - QUARTERLY AND YEAR TO DATE



																			Nine months ended September 30,
	Q3 2015			Q2 2015			Q1 2015			Q4 2014			Q3 2014			Q3 2013			2015			2014

Fixed maturities	$	75,980		$	77,998		$	66,088		$	70,187		$	74,996		$	74,691		$	220,066		$	226,475
Other investments	(27,421		)	14,102			30,935			11,753			(3,384		)	32,127			17,616			45,868
Equity securities	3,445			2,674			1,676			2,223			2,022			3,871			7,795			9,609
Mortgage loans	482			281			13			—			—			—			776			—
Cash and cash equivalents	993			1,678			1,099			2,409			2,081			382			3,770			9,127
Short-term investments	83			125			69			125			141			127			277			600

Gross investment income	53,562			96,858			99,880			86,697			75,856			111,198			250,300			291,679
Investment expenses	(7,877		)	(8,314		)	(7,773		)	(8,102		)	(9,294		)	(7,769		)	(23,964		)	(27,508		)

Net investment income	$	45,685		$	88,544		$	92,107		$	78,595		$	66,562		$	103,429		$	226,336		$	264,171

AXIS Capital Holdings Limited

CONSOLIDATED BALANCE SHEETS



	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,
	2015			2015			2015			2014			2014			2013
ASSETS
Investments:
Fixed maturities, available for sale, at fair value	$	12,139,595		$	12,005,736		$	12,012,894		$	12,129,273		$	12,444,684		$	11,984,740
Equity securities, available for sale, at fair value	689,157			659,181			601,329			567,707			629,502			650,627
Mortgage loans, held for investment, at amortized cost	129,431			79,606			9,935			—			—			—
Other investments, at fair value	800,319			853,101			939,006			965,465			946,836			994,572
Short-term investments, at fair value and amortized cost	7,152			30,618			38,373			107,534			114,428			84,709
Total investments	13,765,654			13,628,242			13,601,537			13,769,979			14,135,450			13,714,648
Cash and cash equivalents	1,180,473			1,180,059			1,183,782			1,209,695			1,407,811			1,109,998
Accrued interest receivable	75,375			78,409			79,706			83,070			91,777			98,285
Insurance and reinsurance premium balances receivable	2,169,581			2,394,037			2,255,036			1,808,620			2,112,906			1,920,985
Reinsurance recoverable on paid and unpaid losses	2,036,099			2,063,087			1,952,371			1,926,145			1,947,529			1,899,510
Deferred acquisition costs	544,178			594,863			616,785			466,987			556,723			505,002
Prepaid reinsurance premiums	416,451			387,639			357,042			351,441			351,488			340,280
Receivable for investments sold	7,220			1,304			13,432			169			6,472			1,317
Goodwill and intangible assets	87,329			101,053			88,508			88,960			88,740			91,656
Other assets	274,981			276,182			268,350			250,670			266,151			251,268
TOTAL ASSETS	$	20,557,341		$	20,704,875		$	20,416,549		$	19,955,736		$	20,965,047		$	19,932,949

LIABILITIES
Reserve for losses and loss expenses	$	9,703,583		$	9,693,440		$	9,443,222		$	9,596,797		$	9,751,903		$	9,484,516
Unearned premiums	3,107,348			3,324,578			3,287,920			2,735,376			3,142,055			2,990,301
Insurance and reinsurance balances payable	301,830			296,794			300,029			249,186			244,815			261,737
Senior notes	991,562			991,302			991,045			990,790			1,490,498			995,699
Payable for investments purchased	303,916			213,142			196,526			188,176			189,684			174,034
Other liabilities	322,736			237,061			220,644			315,471			265,968			238,833
TOTAL LIABILITIES	14,730,975			14,756,317			14,439,386			14,075,796			15,084,923			14,145,120

SHAREHOLDERS’ EQUITY
Preferred shares	627,843			627,843			627,843			627,843			627,843			627,843
Common shares	2,202			2,201			2,200			2,191			2,190			2,172
Additional paid-in capital	2,230,278			2,285,772			2,287,065			2,285,016			2,273,110			2,225,826
Accumulated other comprehensive income	(117,593		)	(78,067		)	(17,070		)	(45,574		)	22,935			130,373
Retained earnings	6,093,897			5,875,147			5,842,239			5,715,504			5,581,942			4,921,716
Treasury shares, at cost	(3,010,261		)	(2,764,338		)	(2,765,114		)	(2,763,859		)	(2,689,531		)	(2,120,101		)
TOTAL SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO AXIS CAPITAL	5,826,366			5,948,558			5,977,163			5,821,121			5,818,489			5,787,829
Noncontrolling interests	—			—			—			58,819			61,635			—
TOTAL SHAREHOLDERS' EQUITY	5,826,366			5,948,558			5,977,163			5,879,940			5,880,124			5,787,829

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	20,557,341		$	20,704,875		$	20,416,549		$	19,955,736		$	20,965,047		$	19,932,949

Basic common shares outstanding	96,049			100,284			100,219			99,426			100,827			111,651
Diluted common shares outstanding	98,213			102,690			102,924			102,577			104,073			115,684
Book value per common share [a]		$54.91			$53.06			$53.38			$52.23			$51.48			$46.22
Diluted book value per common share [a]	53.68			51.81			51.97			50.63			49.88			44.60
Diluted tangible book value per common share [a]		$52.78			$50.83			$51.11			$49.76			$49.02			$43.81
Debt to total capital [b]	14.5		%	14.3		%	14.2		%	14.5		%	20.4		%	14.7		%
Debt and preferred equity to total capital	23.8		%	23.3		%	23.2		%	23.8		%	29.0		%	23.9		%


[a]	Calculation at September 30, 2015 includes 1,372,048 additional shares expected to be delivered to the Company under the Company's Accelerated Share Repurchase ("ASR") agreement. See page 25 'Diluted Book Value per Common Share Analysis' for more details.


[b]	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.

AXIS Capital Holdings Limited

CASH AND INVESTED ASSETS PORTFOLIO

At September 30, 2015



	Cost or Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value			Percentage
Fixed Maturities, available for sale
U.S. government and agency	$	1,867,800	$	9,517	$	(12,859	)	$	1,864,458		12.7	%
Non-U.S. government	835,965		3,888		(67,139		)	772,714			5.2	%
Corporate debt	4,540,189		29,437		(77,543		)	4,492,083			30.5	%
Agency RMBS	2,172,782		38,239		(3,313		)	2,207,708			15.0	%
CMBS	1,069,887		11,623		(3,651		)	1,077,859			7.3	%
Non-Agency RMBS	103,180		2,173		(1,456		)	103,897			0.7	%
ABS	1,448,536		2,138		(11,451		)	1,439,223			9.8	%
Municipals	178,919		3,780		(1,046		)	181,653			1.2	%
Total fixed maturities	12,217,258		100,795		(178,458		)	12,139,595			82.4	%

Equity securities, available for sale
Exchange traded funds	563,262		21,835		(17,704		)	567,393			3.9	%
Bond mutual funds	122,200		—		(436		)	121,764			0.8	%
Total equity securities	685,462		21,835		(18,140		)	689,157			4.7	%

Total available for sale investments	$	12,902,720	$	122,630	$	(196,598	)	12,828,752			87.1	%

Mortgage loans, held for investment								129,431			0.9	%

Other investments (see below)								800,319			5.4	%

Short-term investments								7,152			0.1	%

Total investments								13,765,654			93.5	%

Cash and cash equivalents [a]								1,180,473			8.0	%

Accrued interest receivable								75,375			0.5	%

Net receivable/(payable) for investments sold (purchased)								(296,696		)	(2.0	%)

Total cash and invested assets								$	14,724,806		100.0	%

								Fair Value			Percentage
Other Investments:
Long/short equity funds								$	154,099		19.3	%
Multi-strategy funds								341,452			42.7	%
Event-driven funds								140,343			17.5	%
Leveraged bank loan funds								75			—	%
Direct lending funds								79,283			9.9	%
Real estate funds								4,369			0.5	%
Collateralized loan obligations - equity tranches								80,698			10.1	%
Total								$	800,319		100.0	%


[a]	Includes $188 million of restricted cash and cash equivalents.

AXIS Capital Holdings Limited

CASH AND INVESTED ASSETS COMPOSITION - QUARTERLY



	Q3 2015		Q2 2015		Q1 2015		Q4 2014		Q3 2014		Q3 2013
	Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %
CASH AND INVESTED ASSETS PORTFOLIO
Fixed Maturities:
U.S. government and agency	12.7	%	11.5	%	10.1	%	10.9	%	9.8	%	10.1	%
Non-U.S. government	5.2	%	6.1	%	5.9	%	6.9	%	7.4	%	8.2	%
Corporate debt	30.5	%	30.0	%	30.7	%	29.3	%	27.5	%	23.8	%
MBS:
Agency RMBS	15.0	%	14.5	%	14.9	%	15.3	%	13.7	%	17.0	%
CMBS	7.3	%	7.5	%	7.7	%	7.4	%	6.2	%	5.0	%
Non-agency RMBS	0.7	%	0.7	%	0.5	%	0.5	%	0.5	%	0.5	%
ABS	9.8	%	9.7	%	10.1	%	9.8	%	9.3	%	6.2	%
Municipals	1.2	%	1.7	%	1.4	%	1.4	%	6.1	%	10.5	%

Total Fixed Maturities	82.4	%	81.7	%	81.3	%	81.5	%	80.5	%	81.3	%
Equity securities	4.7	%	4.5	%	4.1	%	4.0	%	4.0	%	4.4	%
Mortgage loans	0.9	%	0.5	%	0.1	%	—	%	—	%	—	%
Other investments	5.4	%	5.8	%	6.3	%	6.5	%	6.1	%	6.7	%
Short-term investments	0.1	%	0.4	%	0.3	%	0.6	%	0.9	%	0.6	%

Total Investments	93.5	%	92.9	%	92.1	%	92.6	%	91.5	%	93.0	%
Cash and cash equivalents	8.0	%	8.0	%	8.6	%	8.1	%	9.1	%	7.5	%
Accrued interest receivable	0.5	%	0.5	%	0.5	%	0.6	%	0.6	%	0.7	%
Net receivable/(payable) for investments sold or purchased	(2.0	%)	(1.4	%)	(1.2	%)	(1.3	%)	(1.2	%)	(1.2	%)
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	15.4	%	14.0	%	12.4	%	13.4	%	12.2	%	12.4	%
AAA	35.0	%	35.8	%	36.9	%	38.9	%	35.5	%	35.8	%
AA	10.9	%	10.5	%	10.6	%	8.5	%	12.3	%	15.2	%
A	18.7	%	18.4	%	18.5	%	18.2	%	19.1	%	17.6	%
BBB	11.6	%	12.3	%	12.6	%	12.5	%	12.8	%	11.3	%
Below BBB	8.4	%	9.0	%	9.0	%	8.5	%	8.1	%	7.7	%
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	3.5	%	4.5	%	4.2	%	3.5	%	4.5	%	5.6	%
From one to five years	36.5	%	36.4	%	36.2	%	40.3	%	42.3	%	42.7	%
From five to ten years	17.7	%	16.7	%	16.8	%	14.0	%	14.4	%	15.4	%
Above ten years	2.5	%	2.7	%	2.0	%	1.7	%	2.0	%	1.0	%
Asset-backed and mortgage-backed securities	39.8	%	39.7	%	40.8	%	40.5	%	36.8	%	35.3	%
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	%	2.5	%	2.6	%
Yield to maturity of fixed maturities	2.5	%	2.5	%	2.2	%	2.4	%	2.3	%	2.2	%
Average duration of fixed maturities (inclusive of duration hedges)	3.1 yrs		3.2 yrs		3.0 yrs		2.9 yrs		2.9 yrs		3.2 yrs
Average credit quality	AA-		AA-		AA-		AA-		AA-		AA-

AXIS Capital Holdings Limited

GEOGRAPHIC DISTRIBUTION OF FIXED MATURITIES AND EQUITIES

At September 30, 2015



				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:
Netherlands	$	9,437		$	18,386	$	46,389	$	—	$	64,775	$	—	$	794	$	—	$	75,006	$	—		$	75,006
Germany	—			8,315		25,930		20,387		54,632		—		9,178		—		63,810		—			63,810
France	—			1,760		49,758		—		51,518		—		—		—		51,518		—			51,518
Luxembourg	—			—		32,555		—		32,555		—		—		—		32,555		—			32,555
Ireland	—			5,950		11,015		—		16,965		—		—		4,860		21,825		—			21,825
Supranational [a]	17,946			—		—		—		—		—		—		—		17,946		—			17,946
Italy	—			2,859		13,013		—		15,872		—		—		—		15,872		—			15,872
Belgium	—			—		11,838		—		11,838		—		—		—		11,838		—			11,838
Spain	—			—		6,828		—		6,828		—		—		—		6,828		—			6,828
Austria	—			—		3,185		—		3,185		—		—		—		3,185		—			3,185
Other [b]	—			—		—		—		—		—		—		—		—		52,384			52,384
Total eurozone	27,383			37,270		200,511		20,387		258,168		—		9,972		4,860		300,383		52,384			352,767
Other concentrations:
United Kingdom	207,046			44,136		142,092		567		186,795		—		24,916		1,753		420,510		5,418			425,928
Canada	117,827			101,475		74,521		41,548		217,544		—		—		—		335,371		—			335,371
Australia	186,250			62,266		20,343		—		82,609		—		—		903		269,762		—			269,762
Japan	—			53,974		8,466		—		62,440		—		—		—		62,440		18,079			80,519
Mexico	53,091			—		19,000		—		19,000		—		—		—		72,091		—			72,091
Other	181,117			10,611		71,600		—		82,211		—		—		—		263,328		35,335		[c]	298,663
Total other concentrations	745,331			272,462		336,022		42,115		650,599		—		24,916		2,656		1,423,502		58,832			1,482,334

Total Non-U.S. concentrations	772,714			309,732		536,533		62,502		908,767		—		34,888		7,516		1,723,885		111,216			1,835,101

United States	1,834,673		[d]	1,527,550		2,055,766		—		3,583,316		2,207,708		1,146,868		1,431,707		10,204,272		577,941		[e]	10,782,213
United States agencies	29,785			—		—		—		—		—		—		—		29,785		—			29,785
United States local governments	181,653			—		—		—		—		—		—		—		181,653		—			181,653
Total U.S. concentrations	2,046,111			1,527,550		2,055,766		—		3,583,316		2,207,708		1,146,868		1,431,707		10,415,710		577,941			10,993,651

Totals	$	2,818,825		$	1,837,282	$	2,592,299	$	62,502	$	4,492,083	$	2,207,708	$	1,181,756	$	1,439,223	$	12,139,595	$	689,157		$	12,828,752


[a]	Represents holdings of the European Investment Bank.


[b]	Represents holdings in one non-U.S. bond mutual fund 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]	Represents 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 ETF’s designed to track the S&P 500, closed end funds with the United States as the primary country of risk and a U.S. bond mutual fund.

AXIS Capital Holdings Limited

CORPORATE DEBT COMPOSITION

At September 30, 2015



	Fair Value		% of Total Corporate Debt		% of Total Cash and Invested Assets
Composition by sector - Investment grade
Financial institutions:
U.S. banking	$	1,112,703	24.8	%	7.6	%
Foreign banking [a]	243,281		5.4	%	1.7	%
Corporate/commercial finance	220,359		4.9	%	1.5	%
Insurance	99,077		2.2	%	0.7	%
Investment brokerage	26,058		0.6	%	0.2	%
Total financial institutions	1,701,478		37.9	%	11.7	%
Consumer non-cyclicals	407,674		9.1	%	2.8	%
Consumer cyclical	323,261		7.2	%	2.2	%
Communications	267,206		5.9	%	1.8	%
Industrials	228,859		5.1	%	1.6	%
Technology	163,914		3.6	%	1.1	%
Energy	155,173		3.5	%	1.1	%
Utilities	104,422		2.3	%	0.7	%
Transportation	83,908		1.9	%	0.6	%
Non-U.S. government guaranteed [b]	62,502		1.4	%	0.4	%
Total investment grade	3,498,397		77.9	%	24.0	%

Total non-investment grade	993,686		22.1	%	6.5	%

Total corporate debt	$	4,492,083	100.0	%	30.5	%


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


[b]	Includes $20 million from Germany. No other corporate debt guaranteed by a eurozone country.

AXIS Capital Holdings Limited

INVESTMENT PORTFOLIO

TEN LARGEST CORPORATE DEBT HOLDINGS

At September 30, 2015



	Amortized Cost		Net Unrealized Gain (Loss)			Fair Value		% of Total Fixed Maturities
ISSUER [a]
MORGAN STANLEY	$	129,931	$	2,075		$	132,006	1.1	%
GOLDMAN SACHS GROUP	119,762		1,126			120,888		1.0	%
JP MORGAN CHASE & CO	116,466		1,609			118,075		1.0	%
BANK OF AMERICA CORP	112,078		395			112,473		0.9	%
AMERICAN EXPRESS COMPANY	98,355		27			98,382		0.8	%
WELLS FARGO & COMPANY	88,098		(187		)	87,911		0.7	%
PNC FINANCIAL SERVICES GROUP INC	86,110		76			86,186		0.7	%
FORD MOTOR COMPANY	71,021		(1,584		)	69,437		0.6	%
VERIZON COMMUNICATIONS INC	58,316		(841		)	57,475		0.5	%
KEYCORP	54,426		118			54,544		0.4	%


[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.

AXIS Capital Holdings Limited

MORTGAGE-BACKED AND ASSET-BACKED SECURITIES COMPOSITION

At September 30, 2015



	Agencies			AAA			AA			A			BBB			Non-Investment Grade			Total

Residential MBS	$	2,207,708		$	24,157		$	5,936		$	25,791		$	20,900		$	27,113		$	2,311,605
Commercial MBS	—			649,761			232,334			164,012			31,421			331			1,077,859
ABS	—			991,848			354,961			79,917			9,725			2,772			1,439,223

Total mortgage-backed and asset-backed securities	$	2,207,708		$	1,665,766		$	593,231		$	269,720		$	62,046		$	30,216		$	4,828,687

Percentage of total	45.7		%	34.5		%	12.3		%	5.6		%	1.3		%	0.6		%	100.0		%

AXIS Capital Holdings Limited

REINSURANCE RECOVERABLE ANALYSIS



	Q3 2015			Q2 2015			Q1 2015			Q4 2014			Q3 2014			Q3 2013
Reinsurance recoverable on paid losses and loss expenses:
Insurance	$	28,812		$	38,639		$	23,788		$	29,280		$	31,460		$	16,713
Reinsurance	—			2,389			7,944			6,584			1,399			—
Total	$	28,812		$	41,028		$	31,732		$	35,864		$	32,859		$	16,713

Reinsurance recoverable on unpaid losses and loss expenses: OSLR
Insurance	$	660,861		$	668,053		$	576,718		$	584,378		$	608,304		$	608,886
Reinsurance	8,039			9,143			936			985			514			—
Total	$	668,900		$	677,196		$	577,654		$	585,363		$	608,818		$	608,886

Reinsurance recoverable on unpaid losses and loss expenses: IBNR
Insurance	$	1,323,350		$	1,327,163		$	1,326,362		$	1,320,518		$	1,318,833		$	1,285,078
Reinsurance	32,457			34,889			33,509			2,023			5,244			6,982
Total	$	1,355,807		$	1,362,052		$	1,359,871		$	1,322,541		$	1,324,077		$	1,292,060

Provision against reinsurance recoverables:
Insurance	$	(17,420	)	$	(17,189	)	$	(16,886	)	$	(17,623	)	$	(18,225	)	$	(18,149	)
Reinsurance	—			—			—			—			—			—
Total	$	(17,420	)	$	(17,189	)	$	(16,886	)	$	(17,623	)	$	(18,225	)	$	(18,149	)

Net reinsurance recoverables:
Insurance	$	1,995,603		$	2,016,666		$	1,909,982		$	1,916,553		$	1,940,372		$	1,892,528
Reinsurance	40,496			46,421			42,389			9,592			7,157			6,982
Total	$	2,036,099		$	2,063,087		$	1,952,371		$	1,926,145		$	1,947,529		$	1,899,510

AXIS Capital Holdings Limited

REINSURANCE RECOVERABLE ANALYSIS

At September 30, 2015



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	$	1,523,642	$	(18,364	)	$	1,505,278	77.3%	25.8%	$	(13,004	)	0.9%	$	1,510,638
Other reinsurers balances > $20 million	262,753		(36,590		)	226,163		11.6%	3.9%	(1,513		)	0.6%	261,240
Other reinsurers balances < $20 million	267,124		(50,975		)	216,149		11.1%	3.7%	(2,903		)	1.1%	264,221
Total	$	2,053,519	$	(105,929	)	$	1,947,590	100.0%	33.4%	$	(17,420	)	0.8%	$	2,036,099

At September 30, 2015, 97.4% (December 31, 2014: 98.5%) 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	12.6%	4.2%
Lloyd's of London	11.5%	3.8%
Swiss Reinsurance America Corporation	11.5%	3.8%
Partner Reinsurance Company of the US	10.7%	3.6%
Berkley Insurance Company	7.8%	2.6%
Hannover Ruckversicherungs Aktiengesellschaft	5.3%	1.8%
Ace Property & Casualty Insurance	5.2%	1.7%
Everest Reinsurance Company	5.0%	1.7%
XL Reinsurance America Inc	4.1%	1.4%
Liberty Mutual Insurance Company	3.6%	1.2%
	77.3%	25.8%

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS



	Quarter ended September 30, 2015									Nine months ended September 30, 2015
	Gross			Recoveries			Net			Gross			Recoveries			Net
Reserve for unpaid losses and loss expenses

Beginning of period	$	9,693,440		$	(2,022,059	)	$	7,671,381		$	9,596,797		$	(1,890,280	)	$	7,706,517
Incurred	681,516			(121,129		)	560,387			2,076,344			(423,476		)	1,652,868
Paid	(601,001		)	123,224			(477,777		)	(1,802,557		)	322,828			(1,479,729		)
Foreign exchange and other	(70,372		)	12,677			(57,695		)	(167,001		)	(16,359		)	(183,360		)

End of period [a]	$	9,703,583		$	(2,007,287	)	$	7,696,296		$	9,703,583		$	(2,007,287	)	$	7,696,296


[a]	At September 30, 2015, the gross reserve for losses and loss expenses included IBNR of $6,423 million, or 66%, of total gross reserves for loss and loss expenses. At December 31, 2014, the comparable amount was $6,311 million, or 66%.

AXIS Capital Holdings Limited

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



	Quarter ended September 30, 2015									Nine months ended September 30, 2015
	Insurance			Reinsurance			Total			Insurance			Reinsurance			Total

Gross losses paid	$	388,142		$	212,859		$	601,001		$	1,028,618		$	773,939		$	1,802,557
Reinsurance recoveries	(121,560		)	(1,664		)	(123,224		)	(302,704		)	(20,124		)	(322,828		)

Net losses paid	266,582			211,195			477,777			725,914			753,815			1,479,729

Change in:
Reported case reserves	(29,415		)	22,545			(6,870		)	106,208			(11,036		)	95,172
IBNR	46,941			40,444			87,385			132,756			45,859			178,615
Reinsurance recoveries on unpaid loss and loss expense reserves	(836		)	2,931			2,095			(98,298		)	(2,350		)	(100,648		)

Total net incurred losses and loss expenses	$	283,272		$	277,115		$	560,387		$	866,580		$	786,288		$	1,652,868

Gross reserve for losses and loss expenses	$	5,243,445		$	4,460,138		$	9,703,583		$	5,243,445		$	4,460,138		$	9,703,583

Net favorable prior year reserve development	$	2,444		$	42,681		$	45,125		$	21,225		$	144,579		$	165,804

Key Ratios

Net paid to net incurred percentage	94.1		%	76.2		%	85.3		%	83.8		%	95.9		%	89.5		%

Net paid losses / Net premiums earned	60.0		%	44.5		%	52.0		%	54.0		%	53.1		%	53.5		%
Change in net loss and loss expense reserves / Net premiums earned	3.7		%	13.9		%	9.0		%	10.5		%	2.3		%	6.3		%
Net loss and loss expense ratio	63.7		%	58.4		%	61.0		%	64.5		%	55.4		%	59.8		%

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

INSURANCE - QUARTERLY



	Q3 2015			Q2 2015			Q1 2015			Q4 2014			Q3 2014			Q3 2013

Gross losses paid	$	388,142		$	365,887		$	274,589		$	400,408		$	299,526		$	275,082
Reinsurance recoveries	(121,560		)	(112,071		)	(69,075		)	(120,151		)	(108,012		)	(89,562		)

Net losses paid	266,582			253,816			205,514			280,257			191,514			185,520

Change in:
Reported case reserves	(29,415		)	110,735			24,888			(57,519		)	(153		)	8,348
IBNR	46,941			17,744			68,071			39,704			92,959			14,979
Reinsurance recoveries on unpaid loss and loss expense reserves	(836		)	(84,761		)	(12,700		)	10,345			4,887			7,593

Total net incurred losses and loss expenses	$	283,272		$	297,534		$	285,773		$	272,787		$	289,207		$	216,440

Gross reserve for losses and loss expenses	$	5,243,445		$	5,262,956		$	5,112,243		$	5,063,147		$	5,117,053		$	4,819,976

Net favorable prior year reserve development	$	2,444		$	15,421		$	3,361		$	9,676		$	9,488		$	34,065

Key Ratios

Net paid to net incurred percentage	94.1		%	85.3		%	71.9		%	102.7		%	66.2		%	85.7		%

Net paid losses/Net premiums earned	60.0		%	56.1		%	45.9		%	60.7		%	41.5		%	41.4		%
Change in net loss and loss expense reserves / Net premiums earned	3.7		%	9.7		%	18.0		%	(1.6		%)	21.1		%	6.9		%
Net loss and loss expense ratio	63.7		%	65.8		%	63.9		%	59.1		%	62.6		%	48.3		%

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

REINSURANCE - QUARTERLY



	Q3 2015			Q2 2015			Q1 2015			Q4 2014			Q3 2014			Q3 2013

Gross losses paid	$	212,859		$	256,376		$	304,704		$	289,236		$	226,319		$	224,578
Reinsurance recoveries	(1,664		)	(5,798		)	(12,661		)	(5,213		)	(475		)	—

Net losses paid	211,195			250,578			292,043			284,023			225,844			224,578

Change in:
Reported case reserves	22,545			(10,675		)	(22,906		)	566			1,038			19,370
IBNR	40,444			52,179			(46,764		)	(35,469		)	39,008			(21,781		)
Reinsurance recoveries on unpaid loss and loss expense reserves	2,931			(9,463		)	4,182			2,718			(3,033		)	62,915

Total net incurred losses and loss expenses	$	277,115		$	282,619		$	226,555		$	251,838		$	262,857		$	285,082

Gross reserve for losses and loss expenses	$	4,460,138		$	4,430,484		$	4,330,979		$	4,533,650		$	4,634,850		$	4,664,540

Net favorable prior year reserve development	$	42,681		$	49,192		$	52,705		$	55,883		$	55,050		$	45,970

Key Ratios

Net paid to net incurred percentage	76.2		%	88.7		%	128.9		%	112.8		%	85.9		%	78.8		%

Net paid losses / Net premiums earned	44.5		%	51.3		%	64.0		%	57.2		%	44.8		%	45.2		%
Change in net loss and loss expense reserves / Net premiums earned	13.9		%	6.5		%	(14.3		%)	(6.5		%)	7.3		%	12.1		%
Net loss and loss expense ratio	58.4		%	57.8		%	50.8		%	50.7		%	52.1		%	57.3		%

AXIS Capital Holdings Limited

NET PROBABLE MAXIMUM LOSSES TO CERTAIN PEAK INDUSTRY CATASTROPHE EXPOSURES - AS OF OCTOBER 1, 2015



		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	$	509	$	629	$	784
Northeast	U.S. Hurricane	38		122		196
Mid-Atlantic	U.S. Hurricane	97		211		546
Gulf of Mexico	U.S. Hurricane	334		434		635
California	Earthquake	356		455		564
Europe	Windstorm	147		211		288
Japan	Earthquake	122		223		295
Japan	Windstorm	41		70		101

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, 2015. 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 $0.6 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 $0.6 billion. Conversely, there is a 99% chance that on an annual basis, the loss from a Southeast hurricane will fall below $0.6 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.

AXIS Capital Holdings Limited

EARNINGS PER COMMON SHARE INFORMATION - AS REPORTED, GAAP



	Quarter ended September 30,				Nine months ended September 30,
	2015		2014		2015		2014

Net income available to common shareholders	$	247,620	$	279,104	$	466,772	$	606,992

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Weighted average shares outstanding - basic	98,226		102,945		99,464		105,683
Dilutive share equivalents:
Stock compensation plans	898		1,302		1,004		1,270
Weighted average shares outstanding - diluted	99,124		104,247		100,468		106,953

EARNINGS PER COMMON SHARE
Basic		$2.52		$2.71		$4.69		$5.74
Diluted		$2.50		$2.68		$4.65		$5.68

AXIS Capital Holdings Limited

EARNINGS PER COMMON SHARE INFORMATION AND COMMON SHARES ROLLFOWARD - QUARTERLY



	Q3 2015			Q2 2015			Q1 2015			Q4 2014			Q3 2014			Q3 2013

Net income available to common shareholders	$	247,620		$	63,349		$	155,803		$	163,663		$	279,104		$	137,121

COMMON SHARES OUTSTANDING
Common shares - at beginning of period	100,284			100,219			99,426			100,827			103,906			111,588
Shares issued, including those sourced from treasury	22			125			1,083			88			90			74
Shares repurchased for treasury	(4,257		)	(60		)	(290		)	(1,489		)	(3,169		)	(11		)
Common shares - at end of period	96,049			100,284			100,219			99,426			100,827			111,651

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Weighted average shares outstanding - basic	98,226			100,274			99,910			100,468			102,945			111,676
Dilutive share equivalents:
Stock compensation plans	898			886			1,229			1,570			1,302			1,679
Weighted average shares outstanding - diluted	99,124			101,160			101,139			102,038			104,247			113,355

EARNINGS PER COMMON SHARE
Basic		$2.52			$0.63			$1.56			$1.63			$2.71			$1.23
Diluted		$2.50			$0.63			$1.54			$1.60			$2.68			$1.21

AXIS Capital Holdings Limited

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



	At September 30, 2015

	Weighted Average Strike Price		Common Shareholders’ Equity		Outstanding Common Shares net of Treasury Shares		Per share

Closing stock price								$53.72

Book value per common share excluding the impact of additional shares expected to be settled under the accelerated share repurchase program ("ASR")			$	5,198,523	96,049			$54.12

Additional shares expected to be settled under the ASR program [b]					(1,372	)	0.79

Book value per common share					94,677			$54.91

Dilutive securities: [c]
Restricted stocks					339		(0.20		)
Restricted and phantom stock units					1,825		(1.03		)
Diluted book value per common share			$	5,198,523	96,841			$53.68

	At December 31, 2014

	Weighted Average Strike Price		Common Shareholders’ Equity		Outstanding Common Shares net of Treasury Shares		Per share

Closing stock price								$51.09

Book value per common share			$	5,193,278	99,426			$52.23

Dilutive securities: [c]
Restricted stocks					1,295		(0.67		)
Options		$28.02			9		—
Restricted and phantom stock units					1,846		(0.93		)
Diluted book value per common share			$	5,193,278	102,577			$50.63


[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]

On August 17, 2015, the Company entered into an accelerated share repurchase agreement with Goldman, Sachs & Co. (“Goldman Sachs”) to repurchase an aggregate of $300 million of the Company’s ordinary shares. On August 20, 2015, under the terms of this agreement the Company initially acquired 4,149,378 ordinary shares. The scheduled termination date of the ASR agreement is February 18, 2016 but Goldman Sachs may accelerate the termination at any time on, or after, November 18, 2015. The final number of shares to be delivered will be based on the Company’s volume-weighted average price (“VWAP”) for the period from August 18, 2015 to the termination date less a discount. The additional shares expected to be settled under the ASR of 1,372,048 have been calculated based on the VWAP for the period from August 18, 2015 to September 30, 2015, less a discount.


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

AXIS Capital Holdings Limited

OPERATING INCOME [a]




OPERATING INCOME	Quarter ended September 30,						Nine months ended September 30,
	2015			2014			2015			2014
Net income available to common shareholders	$	247,620		$	279,104		$	466,772		$	606,992
Adjustment for:
Net realized (gains) losses	69,957			(77,448		)	123,618			(121,329		)
Associated tax impact	(2,060		)	1,482			(4,176		)	13,952
Foreign exchange gains	(28,088		)	(72,292		)	(69,200		)	(58,353		)
Associated tax impact	678			1,924			744			1,319
Termination fee received	(280,000		)	—			(280,000		)	—
Associated tax impact	—			—			—			—
Reorganization and related expenses	45,867			—			45,867			—
Associated tax impact	(2,943		)	—			(2,943		)	—
Operating income	$	51,031		$	132,770		$	280,682		$	442,581

Net earnings per share - diluted	$	2.50		$	2.68		$	4.65		$	5.68
Adjustment for:
Net realized (gains) losses	0.71			(0.74		)	1.23			(1.13		)
Associated tax impact	(0.03		)	0.01			(0.04		)	0.13
Foreign exchange gains	(0.28		)	(0.69		)	(0.69		)	(0.55		)
Associated tax impact	—			0.01			—			0.01
Termination fee received	(2.82		)	—			(2.79		)	—
Associated tax impact	—			—			—			—
Reorganization and related expenses	0.46			—			0.46			—
Associated tax impact	(0.03		)	—			(0.03		)	—
Operating income per share - diluted	$	0.51		$	1.27		$	2.79		$	4.14

Weighted average common shares and common share equivalents - diluted	99,124			104,247			100,468			106,953

Average common shareholders' equity	$	5,259,619		$	5,259,257		$	5,195,901		$	5,190,383

Annualized return on average common equity	18.8		%	21.2		%	12.0		%	15.6		%

Annualized operating return on average common equity	3.9		%	10.1		%	7.2		%	11.4		%


[a]	Operating income is a “non-GAAP financial measure” as defined by Regulation G. Reconciliation of operating income to net income available to common shareholders is presented above.

AXIS Capital Holdings Limited

DILUTED TANGIBLE BOOK VALUE PER COMMON SHARE [a]



DILUTED TANGIBLE BOOK VALUE PER COMMON SHARE - TREASURY STOCK METHOD [b]
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,
	2015			2015			2015			2014			2014			2013
Common shareholders' equity	$	5,198,523		$	5,320,715		$	5,349,320		$	5,193,278		$	5,190,646		$	5,159,986
Less: goodwill and intangible assets	(87,329		)	(101,053		)	(88,508		)	(88,960		)	(88,740		)	(91,656		)
Tangible common shareholders' equity	$	5,111,194		$	5,219,662		$	5,260,812		$	5,104,318		$	5,101,906		$	5,068,330

Outstanding diluted common shares, net of treasury shares	98,213			102,690			102,924			102,577			104,073			115,684

Diluted book value per common share [c]	$	53.68		$	51.81		$	51.97		$	50.63		$	49.88		$	44.60

Diluted tangible book value per common share [c]	$	52.78		$	50.83		$	51.11		$	49.76		$	49.02		$	43.81


[a]	Diluted tangible book value per common share is a “non-GAAP financial measure” as defined by Regulation G. Reconciliation of diluted tangible book value per common share to diluted book value per common share is 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.


[c]	Calculation at September 30, 2015 includes 1,372,048 additional shares expected to be delivered to the Company under the Company's Accelerated Share Repurchase ("ASR") agreement. See page 25 'Diluted Book Value per Common Share Analysis' for more details.

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 and diluted tangible book value per common share, 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, termination fee received and reorganization and related expenses. 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 'Operating Income" section of this document.

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 in the 'Diluted Tangible Book Value per Common Share' 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") and diluted tangible book value per common share.

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 Consolidated Statements of Operations foreign exchange (losses) gains in isolation are not a fair representation of the performance of our business.

The termination fee received represents the break-up fee paid by PartnerRe Ltd. following the cancellation of the amalgamation agreement with AXIS Capital and is not indicative of future revenues of the Company.

Reorganization and related expenses are primarily driven by business decisions, the nature and timing of which are unrelated to the underwriting process and which are not representative of underlying business performance.

In this regard, certain users of our financial statements evaluate earnings excluding after-tax net realized investment gains (losses), foreign exchange (losses) gains, termination fee received and reorganization and related expenses 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, termination fee received and reorganization and related expenses 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 Statements 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.

The termination fee received represents the break-up fee received on the cancellation of the amalgamation agreement between PartnerRe Ltd. and AXIS Capital and should be excluded from consolidated underwriting income since it is not related to underwriting operations.

Reorganization and related expenses are driven by business decisions, the nature and timing of which are unrelated to the underwriting process and for this reason they are excluded 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.