Exhibit

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

AXIS Capital Holdings Limited

INVESTOR FINANCIAL SUPPLEMENT

FOURTH 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		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		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. Loss 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 Analysis 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 sheets at December 31, 2014 and December 31, 2013 and consolidated statements of income for the years then ended.


•	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, 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.

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 December 31,									Year ended December 31,
		2015			2014			Change			2015			2014			Change

HIGHLIGHTS	Gross premiums written	$	799,802		$	762,040		5.0	%		$	4,603,730		$	4,711,519		(2.3	%)
	Gross premiums written - Insurance	76.6		%	81.9		%	(5.3	)	pts	56.1		%	53.8		%	2.3		pts
	Gross premiums written - Reinsurance	23.4		%	18.1		%	5.3		pts	43.9		%	46.2		%	(2.3	)	pts
	Net premiums written	$	595,358		$	555,017		7.3	%		$	3,674,666		$	3,906,975		(5.9	%)
	Net premiums earned	$	921,812		$	958,517		(3.8	%)		$	3,686,417		$	3,870,999		(4.8	%)
	Net premiums earned - Insurance	49.2		%	48.2		%	1.0		pts	48.8		%	47.3		%	1.5		pts
	Net premiums earned - Reinsurance	50.8		%	51.8		%	(1.0	)	pts	51.2		%	52.7		%	(1.5	)	pts
	Net income available to common shareholders	$	134,787		$	163,663		(17.6	%)		$	601,562		$	770,657		(21.9	%)
	Operating income [a]	119,829			120,292			(0.4	%)		400,515			562,875			(28.8	%)
	Reserve for losses and loss expenses	9,646,285			9,596,797			0.5	%		9,646,285			9,596,797			0.5	%
	Total shareholders’ equity attributable to AXIS Capital	5,866,882			5,821,121			0.8	%		5,866,882			5,821,121			0.8	%


PER COMMON SHARE AND COMMON SHARE DATA	Basic earnings per common share		$1.40			$1.63		(14.1	%)			$6.10			$7.38		(17.3	%)
	Diluted earnings per common share		$1.39			$1.60		(13.1	%)			$6.04			$7.29		(17.1	%)
	Operating income per common share - diluted [b]		$1.23			$1.18		4.2	%			$4.02			$5.32		(24.4	%)
	Weighted average common shares outstanding	96,072			100,468			(4.4	%)		98,609			104,368			(5.5	%)
	Diluted weighted average common shares outstanding	97,148			102,038			(4.8	%)		99,629			105,713			(5.8	%)
	Book value per common share [c]		$55.32			$52.23		5.9	%			$55.32			$52.23		5.9	%
	Diluted book value per common share (treasury stock method) [c]		$54.08			$50.63		6.8	%			$54.08			$50.63		6.8	%
	Diluted tangible book value per common share (treasury stock method) [a][c]		$53.18			$49.76		6.9	%			$53.18			$49.76		6.9	%
	Accumulated dividends declared per common share		$10.20			$8.98		13.6	%			$10.20			$8.98		13.6	%


FINANCIAL RATIOS	ROACE [d]	10.3		%	12.6		%	(2.3	)	pts	11.5		%	14.8		%	(3.3	)	pts
	Operating ROACE [e]	9.2		%	9.3		%	(0.1	)	pts	7.7		%	10.8		%	(3.1	)	pts
	Net loss and loss expense ratio	56.8		%	54.7		%	2.1		pts	59.0		%	56.5		%	2.5		pts
	Acquisition cost ratio	19.6		%	19.5		%	0.1		pts	19.5		%	19.0		%	0.5		pts
	General and administrative expense ratio	15.2		%	17.3		%	(2.1	)	pts	16.2		%	16.1		%	0.1		pts
	Combined ratio	91.6		%	91.5		%	0.1		pts	94.7		%	91.6		%	3.1		pts


INVESTMENT DATA	Total assets	$	19,981,891		$	19,955,736		0.1	%		$	19,981,891		$	19,955,736		0.1	%
	Total cash and invested assets [f]	14,640,788			14,874,737			(1.6	%)		14,640,788			14,874,737			(1.6	%)
	Net investment income	79,000			78,595			0.5	%		305,336			342,766			(10.9	%)
	Net realized investment gains (losses)	(14,872		)	10,779			nm			(138,491		)	132,108			nm
	Total return on cash and investments (inclusive of investment related foreign exchange movements) [g]	(0.1		%)	0.1		%	(0.2	)	pts	0.2		%	2.0		%	(1.8	)	pts
	Total return on cash and investments (exclusive of investment related foreign exchange movements) [g]	—		%	0.4		%	(0.4	)	pts	0.9		%	2.8		%	(1.9	)	pts
	Return on other investments [h]	0.3		%	1.2		%	(0.9	)	pts	2.3		%	5.8		%	(3.5	)	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 weighted average common shares and share equivalents.


[c]	Calculation at December 31, 2015 includes 1,358,380 additional shares delivered to the Company in January 2016 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



	Q4 2015			Q3 2015			Q2 2015			Q1 2015			Q4 2014			Q4 2013
UNDERWRITING REVENUES
Gross premiums written	$	799,802		$	936,583		$	1,188,413		$	1,678,932		$	762,040		$	825,957
Premiums ceded	(204,444		)	(259,366		)	(241,869		)	(223,386		)	(207,023		)	(177,992		)
Net premiums written	595,358			677,217			946,544			1,455,546			555,017			647,965

Gross premiums earned	1,146,532			1,148,356			1,158,755			1,114,311			1,164,355			1,129,147
Ceded premiums expensed	(224,720		)	(229,015		)	(217,544		)	(210,258		)	(205,838		)	(187,236		)
Net premiums earned	921,812			919,341			941,211			904,053			958,517			941,911
Other insurance related income (loss)	(15,272		)	1,158			3,486			7,676			(11,818		)	2,668
Total underwriting revenues	906,540			920,499			944,697			911,729			946,699			944,579

UNDERWRITING EXPENSES
Net losses and loss expenses	523,331			560,387			580,153			512,328			524,625			551,360
Acquisition costs	180,564			182,744			183,263			171,542			187,349			175,299
Underwriting-related general and administrative expenses [a]	114,287			121,123			124,433			127,069			122,005			123,761
Total underwriting expenses	818,182			864,254			887,849			810,939			833,979			850,420

UNDERWRITING INCOME [b]	88,358			56,245			56,848			100,790			112,720			94,159

OTHER OPERATING REVENUE (EXPENSES)
Net investment income	79,000			45,685			88,544			92,107			78,595			113,863
Net realized investment gains (losses)	(14,872		)	(69,957		)	(11,110		)	(42,553		)	10,779			19,558
Interest expense and financing costs	(12,851		)	(12,918		)	(12,939		)	(12,257		)	(17,783		)	(15,625		)
Total other operating revenues (expenses)	51,277			(37,190		)	64,495			37,297			71,591			117,796

OTHER (EXPENSES) REVENUE
Foreign exchange (losses) gains	33,112			28,088			(22,108		)	63,220			46,086			(14,484		)
Termination fee received	—			280,000			—			—			—			—
Corporate expenses [a]	(26,084		)	(23,604		)	(24,049		)	(36,172		)	(43,145		)	(20,422		)
Reorganization and related expenses	—			(45,867		)	—			—			—			—
Total other (expenses) revenues	7,028			238,617			(46,157		)	27,048			2,941			(34,906		)

INCOME BEFORE INCOME TAXES	146,663			257,672			75,186			165,135			187,252			177,049

Income tax (expense) benefit	(1,873		)	(30		)	(1,815		)	690			(16,382		)	4,497

NET INCOME	144,790			257,642			73,371			165,825			170,870			181,546

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

NET INCOME ATTRIBUTABLE TO AXIS CAPITAL	144,790			257,642			73,371			165,825			173,685			181,546

Preferred share dividends	(10,003		)	(10,022		)	(10,022		)	(10,022		)	(10,022		)	(10,022		)

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	134,787		$	247,620		$	63,349		$	155,803		$	163,663		$	171,524

KEY RATIOS/PER SHARE DATA
Net loss and loss expense ratio	56.8		%	61.0		%	61.6		%	56.7		%	54.7		%	58.5		%
Acquisition cost ratio	19.6		%	19.9		%	19.5		%	19.0		%	19.5		%	18.6		%
General and administrative expense ratio [a]	15.2		%	15.7		%	15.8		%	18.0		%	17.3		%	15.4		%
Combined ratio	91.6		%	96.6		%	96.9		%	93.7		%	91.5		%	92.5		%

Weighted average basic shares outstanding	96,072			98,226			100,274			99,910			100,468			110,757
Weighted average diluted shares outstanding	97,148			99,124			101,160			101,139			102,038			112,702
Basic earnings per common share		$1.40			$2.52			$0.63			$1.56			$1.63			$1.55
Diluted earnings per common share		$1.39			$2.50			$0.63			$1.54			$1.60			$1.52
ROACE (annualized)	10.3		%	18.8		%	4.7		%	11.8		%	12.6		%	13.3		%
Operating ROACE (annualized)	9.2		%	3.9		%	7.0		%	10.3		%	9.3		%	12.3		%


[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 (loss) is also a "non-GAAP financial measure". Reconciliations of consolidated underwriting income to the nearest GAAP financial measure (income (loss) before income taxes) are presented above and on the following page.

AXIS Capital Holdings Limited

CONSOLIDATED STATEMENTS OF INCOME - YEAR



	Year ended December 31,
	2015			2014			2013
UNDERWRITING REVENUES
Gross premiums written	$	4,603,730		$	4,711,519		$	4,697,041
Premiums ceded	(929,064		)	(804,544		)	(768,841		)
Net premiums written	3,674,666			3,906,975			3,928,200

Gross premiums earned	4,567,953			4,652,345			4,459,269
Ceded premiums expensed	(881,536		)	(781,346		)	(752,204		)
Net premiums earned	3,686,417			3,870,999			3,707,065
Other insurance related income (loss)	(2,953		)	650			4,424
Total underwriting revenues	3,683,464			3,871,649			3,711,489

UNDERWRITING EXPENSES
Net losses and loss expenses	2,176,199			2,186,722			2,134,195
Acquisition costs	718,112			737,197			664,191
Underwriting-related general and administrative expenses [a]	486,911			486,201			485,134
Total underwriting expenses	3,381,222			3,410,120			3,283,520

UNDERWRITING INCOME	302,242			461,529			427,969

OTHER OPERATING REVENUE (EXPENSES)
Net investment income	305,336			342,766			409,312
Net realized investment gains (losses)	(138,491		)	132,108			75,564
Interest expense and financing costs	(50,963		)	(74,695		)	(61,979		)
Total other operating revenues	115,882			400,179			422,897

OTHER (EXPENSES) REVENUE
Foreign exchange (losses) gains	102,312			104,439			(26,143		)
Termination fee received	280,000			—			—
Corporate expenses [a]	(109,910		)	(135,675		)	(90,256		)
Reorganization and related expenses	(45,867		)	—			—
Total other (expenses) revenues	226,535			(31,236		)	(116,399		)

INCOME BEFORE INCOME TAXES	644,659			830,472			734,467

Income tax expense	(3,028		)	(25,908		)	(7,002		)

NET INCOME	641,631			804,564			727,465

Amounts attributable from noncontrolling interests	—			6,181			—

NET INCOME ATTRIBUTABLE TO AXIS CAPITAL	641,631			810,745			727,465

Preferred share dividends	(40,069		)	(40,088		)	(40,474		)
Loss on repurchase of preferred shares	—			—			(3,081		)

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	601,562		$	770,657		$	683,910

KEY RATIOS/PER SHARE DATA
Net loss and loss expense ratio	59.0		%	56.5		%	57.6		%
Acquisition cost ratio	19.5		%	19.0		%	17.9		%
General and administrative expense ratio [a]	16.2		%	16.1		%	15.5		%
Combined ratio	94.7		%	91.6		%	91.0		%

Weighted average basic shares outstanding	98,609			104,368			113,636
Weighted average diluted shares outstanding	99,629			105,713			115,328
Basic earnings per common share		$6.10			$7.38			$6.02
Diluted earnings per common share		$6.04			$7.29			$5.93
ROACE	11.5		%	14.8		%	13.1		%
Operating ROACE	7.7		%	10.8		%	12.1		%


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

AXIS Capital Holdings Limited

CONSOLIDATED SEGMENT DATA



	Quarter ended December 31, 2015									Year ended December 31, 2015
	Insurance			Reinsurance			Total			Insurance			Reinsurance			Total
UNDERWRITING REVENUES
Gross premiums written	$	612,527		$	187,275		$	799,802		$	2,583,081		$	2,020,649		$	4,603,730
Net premiums written	407,236			188,122			595,358			1,759,359			1,915,307			3,674,666

Gross premiums earned	652,349			494,183			1,146,532			2,586,774			1,981,179			4,567,953
Ceded premiums expensed	(198,498		)	(26,222		)	(224,720		)	(788,583		)	(92,953		)	(881,536		)
Net premiums earned	453,851			467,961			921,812			1,798,191			1,888,226			3,686,417
Other insurance related income (loss)	225			(15,497		)	(15,272		)	1,036			(3,989		)	(2,953		)
Total underwriting revenues	454,076			452,464			906,540			1,799,227			1,884,237			3,683,464

UNDERWRITING EXPENSES
Net losses and loss expenses	288,348			234,983			523,331			1,154,928			1,021,271			2,176,199
Acquisition costs	60,716			119,848			180,564			261,208			456,904			718,112
Underwriting-related general and administrative expenses	79,734			34,553			114,287			341,658			145,253			486,911
Total underwriting expenses	428,798			389,384			818,182			1,757,794			1,623,428			3,381,222

UNDERWRITING INCOME	$	25,278		$	63,080		$	88,358		$	41,433		$	260,809		$	302,242

KEY RATIOS
Current accident year loss ratio	64.0		%	66.2		%	65.2		%	65.5		%	65.7		%	65.6		%
Prior period reserve development	(0.5		%)	(16.0		%)	(8.4		%)	(1.3		%)	(11.6		%)	(6.6		%)
Net loss and loss expense ratio	63.5		%	50.2		%	56.8		%	64.2		%	54.1		%	59.0		%
Acquisition cost ratio	13.4		%	25.6		%	19.6		%	14.5		%	24.2		%	19.5		%
Underwriting-related general and administrative expense ratio	17.6		%	7.4		%	12.4		%	19.1		%	7.7		%	13.2		%
Corporate expense ratio							2.8		%							3.0		%
Combined ratio	94.5		%	83.2		%	91.6		%	97.8		%	86.0		%	94.7		%

AXIS Capital Holdings Limited

GROSS PREMIUM WRITTEN BY SEGMENT BY LINE OF BUSINESS



																	Year ended December 31,
	Q4 2015			Q3 2015			Q2 2015		Q1 2015		Q4 2014			Q4 2013			2015		2014

INSURANCE SEGMENT
Property	$	141,429		$	139,488		$	196,817	$	129,624	$	153,563		$	144,321		$	607,358	$	644,516
Marine	26,071			38,817			85,483		91,586		26,236			23,148			241,956		238,320
Terrorism	7,972			11,192			6,610		7,935		10,194			10,264			33,709		37,705
Aviation	24,887			10,222			9,519		10,014		26,601			23,250			54,642		57,622
Credit and Political Risk	30,327			8,542			12,981		8,117		16,100			23,563			59,967		45,368
Professional Lines	251,641			196,218			251,730		150,422		267,950			269,524			850,011		862,784
Liability	83,941			104,666			112,870		82,667		92,608			84,447			384,145		368,450
Accident and Health	46,259			97,559			85,116		122,359		31,061			28,074			351,293		280,650
TOTAL INSURANCE SEGMENT	612,527			606,704			761,126		602,724		624,313			606,591			2,583,081		2,535,415

REINSURANCE SEGMENT
Catastrophe	8,135			56,693			95,653		131,216		13,101			15,537			291,697		372,925
Property	(2,649		)	67,539			58,258		182,012		4,099			20,689			305,160		349,775
Professional Lines	71,794			45,509			94,152		65,024		69,236			166,377			276,479		293,263
Credit and Surety	11,662			23,390			16,210		191,357		6,104			10,372			242,620		258,865
Motor	1,839			21,359			14,196		297,690		5,152			(3,789		)	335,084		291,293
Liability	86,457			111,361			57,730		89,772		34,769			15,118			345,319		365,466
Agriculture	(6,506		)	(3,303		)	72,709		69,729		(3,577		)	(11,214		)	132,629		166,047
Engineering	13,886			4,397			15,707		38,059		7,589			5,142			72,050		55,450
Other	2,657			2,934			2,672		11,349		1,254			1,134			19,611		23,020
TOTAL REINSURANCE SEGMENT	187,275			329,879			427,287		1,076,208		137,727			219,366			2,020,649		2,176,104

CONSOLIDATED TOTAL	$	799,802		$	936,583		$	1,188,413	$	1,678,932	$	762,040		$	825,957		$	4,603,730	$	4,711,519

AXIS Capital Holdings Limited

INSURANCE SEGMENT DATA - QUARTERLY



	Q4 2015			Q3 2015			Q2 2015			Q1 2015			Q4 2014			Q4 2013
UNDERWRITING REVENUES
Gross premiums written	$	612,527		$	606,704		$	761,126		$	602,724		$	624,313		$	606,591
Net premiums written	407,236			381,118			534,263			436,740			418,150			427,647

Gross premiums earned	652,349			647,024			649,053			638,348			655,199			631,695
Ceded premiums expensed	(198,498		)	(202,474		)	(196,731		)	(190,881		)	(193,339		)	(181,230		)
Net premiums earned	453,851			444,550			452,322			447,467			461,860			450,465
Other insurance related income (loss)	225			542			269			—			(12		)	681
Total underwriting revenues	454,076			445,092			452,591			447,467			461,848			451,146

UNDERWRITING EXPENSES
Net losses and loss expenses	288,348			283,272			297,534			285,773			272,787			285,634
Acquisition costs	60,716			69,118			66,920			64,455			71,444			65,266
General and administrative expenses	79,734			85,814			88,420			87,689			84,005			89,722
Total underwriting expenses	428,798			438,204			452,874			437,917			428,236			440,622

UNDERWRITING INCOME (LOSS)	$	25,278		$	6,888		$	(283	)	$	9,550		$	33,612		$	10,524

KEY RATIOS
Current accident year loss ratio	64.0		%	64.3		%	69.2		%	64.6		%	61.2		%	64.3		%
Prior period reserve development	(0.5		%)	(0.6		%)	(3.4		%)	(0.7		%)	(2.1		%)	(0.9		%)
Net loss and loss expense ratio	63.5		%	63.7		%	65.8		%	63.9		%	59.1		%	63.4		%
Acquisition cost ratio	13.4		%	15.5		%	14.8		%	14.4		%	15.5		%	14.5		%
General and administrative expense ratio	17.6		%	19.4		%	19.5		%	19.6		%	18.1		%	19.9		%
Combined ratio	94.5		%	98.6		%	100.1		%	97.9		%	92.7		%	97.8		%

AXIS Capital Holdings Limited

REINSURANCE SEGMENT DATA - QUARTERLY



	Q4 2015			Q3 2015			Q2 2015			Q1 2015			Q4 2014			Q4 2013
UNDERWRITING REVENUES
Gross premiums written	$	187,275		$	329,879		$	427,287		$	1,076,208		$	137,727		$	219,366
Net premiums written	188,122			296,099			412,281			1,018,806			136,867			220,318

Gross premiums earned	494,183			501,332			509,702			475,963			509,156			497,452
Ceded premiums expensed	(26,222		)	(26,541		)	(20,813		)	(19,377		)	(12,499		)	(6,006		)
Net premiums earned	467,961			474,791			488,889			456,586			496,657			491,446
Other insurance related income (loss)	(15,497		)	616			3,217			7,676			(11,806		)	1,987
Total underwriting revenues	452,464			475,407			492,106			464,262			484,851			493,433

UNDERWRITING EXPENSES
Net losses and loss expenses	234,983			277,115			282,619			226,555			251,838			265,726
Acquisition costs	119,848			113,626			116,343			107,087			115,905			110,033
General and administrative expenses	34,553			35,309			36,013			39,380			38,000			34,039
Total underwriting expenses	389,384			426,050			434,975			373,022			405,743			409,798

UNDERWRITING INCOME	$	63,080		$	49,357		$	57,131		$	91,240		$	79,108		$	83,635

KEY RATIOS
Current accident year loss ratio	66.2		%	67.4		%	67.9		%	61.2		%	62.0		%	62.0		%
Prior period reserve development	(16.0		%)	(9.0		%)	(10.1		%)	(11.6		%)	(11.3		%)	(7.9		%)
Net loss and loss expense ratio	50.2		%	58.4		%	57.8		%	49.6		%	50.7		%	54.1		%
Acquisition cost ratio	25.6		%	23.9		%	23.8		%	23.5		%	23.3		%	22.4		%
General and administrative expense ratio	7.4		%	7.4		%	7.4		%	8.6		%	7.7		%	6.9		%
Combined ratio	83.2		%	89.7		%	89.0		%	81.7		%	81.7		%	83.4		%

AXIS Capital Holdings Limited

NET INVESTMENT INCOME - QUARTERLY AND YEAR



																			Year ended December 31,
	Q4 2015			Q3 2015			Q2 2015			Q1 2015			Q4 2014			Q4 2013			2015			2014

Fixed maturities	$	74,659		$	75,980		$	77,998		$	66,088		$	70,187		$	74,732		$	294,725		$	296,663
Other investments	2,531			(27,421		)	14,102			30,935			11,753			41,408			20,148			57,621
Equity securities	3,494			3,445			2,674			1,676			2,223			2,478			11,289			11,832
Mortgage loans	1,085			482			281			13			—			—			1,861			—
Cash and cash equivalents	4,802			993			1,678			1,099			2,409			3,423			8,572			11,536
Short-term investments	163			83			125			69			125			125			439			725

Gross investment income	86,734			53,562			96,858			99,880			86,697			122,166			337,034			378,377
Investment expense	(7,734		)	(7,877		)	(8,314		)	(7,773		)	(8,102		)	(8,303		)	(31,698		)	(35,611		)

Net investment income	$	79,000		$	45,685		$	88,544		$	92,107		$	78,595		$	113,863		$	305,336		$	342,766

AXIS Capital Holdings Limited

CONSOLIDATED BALANCE SHEETS



	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,
	2015			2015			2015			2015			2014			2013
ASSETS
Investments:
Fixed maturities, available for sale, at fair value	$	11,719,749		$	12,139,595		$	12,005,736		$	12,012,894		$	12,129,273		$	11,986,327
Equity securities, available for sale, at fair value	597,998			689,157			659,181			601,329			567,707			701,987
Mortgage loans, held for investment, at amortized cost	206,277			129,431			79,606			9,935			—			—
Other investments, at fair value	816,756			800,319			853,101			939,006			965,465			1,045,810
Short-term investments, at fair value and amortized cost	34,406			7,152			30,618			38,373			107,534			46,212
Total investments	13,375,186			13,765,654			13,628,242			13,601,537			13,769,979			13,780,336
Cash and cash equivalents	1,174,751			1,180,473			1,180,059			1,183,782			1,209,695			987,876
Accrued interest receivable	73,729			75,375			78,409			79,706			83,070			97,132
Insurance and reinsurance premium balances receivable	1,967,535			2,169,581			2,394,037			2,255,036			1,808,620			1,688,957
Reinsurance recoverable on paid and unpaid losses	2,096,104			2,036,099			2,063,087			1,952,371			1,926,145			1,929,988
Deferred acquisition costs	471,782			544,178			594,863			616,785			466,987			456,122
Prepaid reinsurance premiums	396,201			416,451			387,639			357,042			351,441			330,261
Receivable for investments sold	26,478			7,220			1,304			13,432			169			1,199
Goodwill and intangible assets	86,858			87,329			101,053			88,508			88,960			89,528
Other assets	313,267			274,981			276,182			268,350			250,670			273,385
TOTAL ASSETS	$	19,981,891		$	20,557,341		$	20,704,875		$	20,416,549		$	19,955,736		$	19,634,784

LIABILITIES
Reserve for losses and loss expenses	$	9,646,285		$	9,703,583		$	9,693,440		$	9,443,222		$	9,596,797		$	9,582,140
Unearned premiums	2,760,889			3,107,348			3,324,578			3,287,920			2,735,376			2,683,849
Insurance and reinsurance balances payable	356,417			301,830			296,794			300,029			249,186			234,412
Senior notes	991,825			991,562			991,302			991,045			990,790			995,855
Payable for investments purchased	9,356			303,916			213,142			196,526			188,176			21,744
Other liabilities	350,237			322,736			237,061			220,644			315,471			248,822
TOTAL LIABILITIES	14,115,009			14,730,975			14,756,317			14,439,386			14,075,796			13,766,822

SHAREHOLDERS’ EQUITY
Preferred shares	627,843			627,843			627,843			627,843			627,843			627,843
Common shares	2,202			2,202			2,201			2,200			2,191			2,174
Additional paid-in capital	2,241,388			2,230,278			2,285,772			2,287,065			2,285,016			2,240,125
Accumulated other comprehensive income	(188,465		)	(117,593		)	(78,067		)	(17,070		)	(45,574		)	117,825
Retained earnings	6,194,353			6,093,897			5,875,147			5,842,239			5,715,504			5,062,706
Treasury shares, at cost	(3,010,439		)	(3,010,261		)	(2,764,338		)	(2,765,114		)	(2,763,859		)	(2,232,711		)
TOTAL SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO AXIS CAPITAL	5,866,882			5,826,366			5,948,558			5,977,163			5,821,121			5,817,962
Noncontrolling interests	—			—			—			—			58,819			50,000
TOTAL SHAREHOLDERS' EQUITY	5,866,882			5,826,366			5,948,558			5,977,163			5,879,940			5,867,962

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	19,981,891		$	20,557,341		$	20,704,875		$	20,416,549		$	19,955,736		$	19,634,784

Basic common shares outstanding	96,066			96,049			100,284			100,219			99,426			109,485
Diluted common shares outstanding	96,883			98,213			102,690			102,924			102,577			113,325
Book value per common share [a]		$55.32			$54.91			$53.06			$53.38			$52.23			$47.40
Diluted book value per common share [a]	54.08			53.68			51.81			51.97			50.63			45.80
Diluted tangible book value per common share [a]		$53.18			$52.78			$50.83			$51.11			$49.76			$45.01
Debt to total capital [b]	14.5		%	14.5		%	14.3		%	14.2		%	14.5		%	14.6		%
Debt and preferred equity to total capital	23.6		%	23.8		%	23.3		%	23.2		%	23.8		%	23.8		%

[a]

Calculations at December 31, 2015 and September 30, 2015 include 1,358,380 and 1,372,048, respectively, of additional shares to be delivered to the Company under the Company's Accelerated Share Repurchase ("ASR") agreement. The amount of shares at December 31, 2015 is based on the actual amount of shares delivered to the Company following the early termination of the ASR agreement on January 15, 2016. The amount of shares at September 30, 2015 was estimated based on the volume-weighted average price ("VWAP") for the period from August 18, 2015 to September 30, 2015, less a discount. 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 December 31, 2015



	Cost or Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value		Percentage
Fixed Maturities, available for sale
U.S. government and agency	$	1,673,617	$	1,545	$	(23,213	)	$	1,651,949	11	%
Non-U.S. government	809,025		2,312		(72,332		)	739,005		5	%
Corporate debt	4,442,315		16,740		(96,286		)	4,362,769		30	%
Agency RMBS	2,236,138		22,773		(9,675		)	2,249,236		15	%
CMBS	1,088,595		3,885		(9,182		)	1,083,298		7	%
Non-Agency RMBS	99,989		1,992		(973		)	101,008		1	%
ABS	1,387,919		952		(17,601		)	1,371,270		9	%
Municipals	160,041		2,319		(1,146		)	161,214		1	%
Total fixed maturities	11,897,639		52,518		(230,408		)	11,719,749		79	%

Equity securities, available for sale
Exchange traded funds	447,524		31,211		(4,762		)	473,973		3	%
Non-U.S. bond mutual funds	128,252		—		(4,227		)	124,025		1	%
Total equity securities	575,776		31,211		(8,989		)	597,998		4	%

Total available for sale investments	$	12,473,415	$	83,729	$	(239,397	)	12,317,747		83	%

Mortgage loans, held for investment								206,277		1	%

Other investments (see below)								816,756		6	%

Short-term investments								34,406		—	%

Total investments								13,375,186		90	%

Cash and cash equivalents [a]								1,174,751		9	%

Accrued interest receivable								73,729		1	%

Net receivable/(payable) for investments sold (purchased)								17,122		—	%

Total cash and invested assets								$	14,640,788	100	%

								Fair Value		Percentage
Other Investments:
Long/short equity funds								$	154,348	19	%
Multi-strategy funds								355,073		43	%
Event-driven funds								147,287		18	%
Leveraged bank loan funds								65		—	%
Direct lending funds								90,120		11	%
Real estate funds								4,929		1	%
Collateralized loan obligations - equity tranches								64,934		8	%
Total								$	816,756	100	%


[a]	Includes $187 million of restricted cash and cash equivalents.

AXIS Capital Holdings Limited

CASH AND INVESTED ASSETS COMPOSITION - QUARTERLY



	Q4 2015		Q3 2015		Q2 2015		Q1 2015		Q4 2014		Q4 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	11.3	%	12.7	%	11.5	%	10.1	%	10.9	%	9.4	%
Non-U.S. government	5.0	%	5.2	%	6.1	%	5.9	%	6.9	%	7.9	%
Corporate debt	29.8	%	30.5	%	30.0	%	30.7	%	29.3	%	24.3	%
MBS:
Agency RMBS	15.4	%	15.0	%	14.5	%	14.9	%	15.3	%	16.5	%
CMBS	7.4	%	7.3	%	7.5	%	7.7	%	7.4	%	5.4	%
Non-agency RMBS	0.7	%	0.7	%	0.7	%	0.5	%	0.5	%	0.5	%
ABS	9.4	%	9.8	%	9.7	%	10.1	%	9.8	%	6.4	%
Municipals	1.1	%	1.2	%	1.7	%	1.4	%	1.4	%	10.4	%

Total Fixed Maturities	80.1	%	82.4	%	81.7	%	81.3	%	81.5	%	80.8	%
Equity securities	4.1	%	4.7	%	4.5	%	4.1	%	4.0	%	4.8	%
Mortgage loans	1.4	%	0.9	%	0.5	%	0.1	%	—	%	—	%
Other investments	5.6	%	5.4	%	5.8	%	6.3	%	6.5	%	7.0	%
Short-term investments	0.2	%	0.1	%	0.4	%	0.3	%	0.6	%	0.1	%

Total investments	91.4	%	93.5	%	92.9	%	92.1	%	92.6	%	92.7	%
Cash and cash equivalents	8.0	%	8.0	%	8.0	%	8.6	%	8.1	%	6.7	%
Accrued interest receivable	0.5	%	0.5	%	0.5	%	0.5	%	0.6	%	0.7	%
Net receivable/(payable) for investments sold or purchased	0.1	%	(2.0	%)	(1.4	%)	(1.2	%)	(1.3	%)	(0.1	%)
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	14.1	%	15.4	%	14.0	%	12.4	%	13.4	%	11.6	%
AAA	36.4	%	35.0	%	35.8	%	36.9	%	38.9	%	34.7	%
AA	10.9	%	10.9	%	10.5	%	10.6	%	8.5	%	15.0	%
A	17.6	%	18.7	%	18.4	%	18.5	%	18.2	%	18.5	%
BBB	12.3	%	11.6	%	12.3	%	12.6	%	12.5	%	12.3	%
Below BBB	8.7	%	8.4	%	9.0	%	9.0	%	8.5	%	7.9	%
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	2.5	%	3.5	%	4.5	%	4.2	%	3.5	%	5.9	%
From one to five years	35.3	%	36.5	%	36.4	%	36.2	%	40.3	%	42.7	%
From five to ten years	18.6	%	17.7	%	16.7	%	16.8	%	14.0	%	14.9	%
Above ten years	2.6	%	2.5	%	2.7	%	2.0	%	1.7	%	0.8	%
Asset-backed and mortgage-backed securities	41.0	%	39.8	%	39.7	%	40.8	%	40.5	%	35.7	%
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	%	2.5	%
Yield to maturity of fixed maturities	2.9	%	2.5	%	2.5	%	2.2	%	2.4	%	2.3	%
Average duration of fixed maturities (inclusive of duration hedges)	3.3	yrs	3.1 yrs		3.2 yrs		3.0 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 December 31, 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	$	4,711		$	17,502	$	38,239	$	—	$	55,741	$	—	$	545	$	—	$	60,997	$	—		$	60,997
Germany	—			2,459		23,838		18,092		44,389		—		8,888		—		53,277		—			53,277
France	—			2,371		39,732		—		42,103		—		—		—		42,103		—			42,103
Luxembourg	—			—		28,730		—		28,730		—		—		—		28,730		—			28,730
Ireland	—			8,353		12,619		—		20,972		—		—		4,181		25,153		—			25,153
Supranational [a]	16,085			—		—		—		—		—		—		—		16,085		—			16,085
Italy	—			2,809		11,637		—		14,446		—		—		—		14,446		—			14,446
Belgium	—			—		11,543		—		11,543		—		—		—		11,543		—			11,543
Spain	—			—		3,072		—		3,072		—		—		—		3,072		—			3,072
Austria	—			—		1,663		—		1,663		—		—		—		1,663		—			1,663
Other [b]	—			—		—		—		—		—		—		—		—		21,242			21,242
Total eurozone	20,796			33,494		171,073		18,092		222,659		—		9,433		4,181		257,069		21,242			278,311
Other concentrations:
United Kingdom	211,020			37,390		155,186		553		193,129		—		17,878		—		422,027		6,360			428,387
Canada	93,501			103,638		68,429		55,607		227,674		—		—		—		321,175		—			321,175
Australia	186,293			65,463		20,590		—		86,053		—		—		737		273,083		—			273,083
Japan	—			52,724		8,399		—		61,123		—		—		—		61,123		8,048			69,171
Mexico	52,125			—		3,869		—		3,869		—		—		—		55,994		—			55,994
Other	175,270			5,827		66,718		—		72,545		—		—		—		247,815		26,174		[c]	273,989
Total other concentrations	718,209			265,042		323,191		56,160		644,393		—		17,878		737		1,381,217		40,582			1,421,799

Total Non-U.S. concentrations	739,005			298,536		494,264		74,252		867,052		—		27,311		4,918		1,638,286		61,824			1,700,110

United States	1,632,355		[d]	1,524,253		1,971,464		—		3,495,717		2,249,236		1,156,995		1,366,352		9,900,655		536,174		[e]	10,436,829
United States agencies	19,594			—		—		—		—		—		—		—		19,594		—			19,594
United States local governments	161,214			—		—		—		—		—		—		—		161,214		—			161,214
Total U.S. concentrations	1,813,163			1,524,253		1,971,464		—		3,495,717		2,249,236		1,156,995		1,366,352		10,081,463		536,174			10,617,637

Totals	$	2,552,168		$	1,822,789	$	2,465,728	$	74,252	$	4,362,769	$	2,249,236	$	1,184,306	$	1,371,270	$	11,719,749	$	597,998		$	12,317,747


[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 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 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 December 31, 2015



	Fair Value		% of Total Corporate Debt		% of Total Cash and Invested Assets
Composition by sector - Investment grade
Financial institutions:
U.S. banking	$	1,087,833	24.9	%	7.4	%
Foreign banking [a]	233,928		5.4	%	1.6	%
Corporate/commercial finance	215,697		4.9	%	1.5	%
Insurance	127,235		2.9	%	0.9	%
Investment brokerage	22,527		0.5	%	0.2	%
Total financial institutions	1,687,220		38.6	%	11.6	%
Consumer non-cyclicals	368,421		8.4	%	2.5	%
Consumer cyclicals	310,517		7.1	%	2.1	%
Communications	244,896		5.6	%	1.7	%
Industrials	181,239		4.2	%	1.2	%
Technology	165,747		3.8	%	1.1	%
Energy	161,317		3.7	%	1.1	%
Utilities	105,507		2.4	%	0.7	%
Transportation	77,771		1.8	%	0.5	%
Non-U.S. government guaranteed [b]	74,251		1.7	%	0.5	%
Total investment grade	3,376,886		77.3	%	23.0	%

Total non-investment grade	985,883		22.7	%	6.8	%

Total corporate debt	$	4,362,769	100.0	%	29.8	%


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


[b]	Includes $18 million from Germany. No other corporate debt guaranteed by a eurozone country.

AXIS Capital Holdings Limited

INVESTMENT PORTFOLIO

TEN LARGEST CORPORATE DEBT HOLDINGS

At December 31, 2015



	Amortized Cost		Net Unrealized Gain (Loss)			Fair Value		% of Total Fixed Maturities
ISSUER [a]
JP MORGAN CHASE & CO	$	133,588	$	636		$	134,224	1.1	%
GOLDMAN SACHS GROUP INC	133,692		(490		)	133,202		1.1	%
MORGAN STANLEY	104,147		604			104,751		0.9	%
AMERICAN EXPRESS COMPANY	93,067		(288		)	92,779		0.8	%
WELLS FARGO & COMPANY	93,141		(634		)	92,507		0.8	%
PNC FINANCIAL SERVICES GROUP INC	90,749		(346		)	90,403		0.8	%
BANK OF AMERICA CORP	80,886		(861		)	80,025		0.7	%
FORD MOTOR COMPANY	73,114		(2,026		)	71,088		0.6	%
BANK OF NEW YORK MELLON CORP	65,521		(107		)	65,414		0.6	%
VERIZON COMMUNICATIONS INC	60,111		(794		)	59,317		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.

AXIS Capital Holdings Limited

MORTGAGE-BACKED AND ASSET-BACKED SECURITIES COMPOSITION

At December 31, 2015



	Agencies			AAA			AA			A			BBB			Non-Investment Grade			Total

Residential MBS	$	2,249,236		$	17,925		$	4,596		$	34,218		$	19,099		$	25,170		$	2,350,244
Commercial MBS	—			682,456			203,790			161,536			35,242			274			1,083,298
ABS	—			942,105			338,554			69,843			18,143			2,625			1,371,270

Total mortgage-backed and asset-backed securities	$	2,249,236		$	1,642,486		$	546,940		$	265,597		$	72,484		$	28,069		$	4,804,812

Percentage of total	46.8		%	34.2		%	11.4		%	5.5		%	1.5		%	0.6		%	100.0		%

AXIS Capital Holdings Limited

REINSURANCE RECOVERABLE ANALYSIS



	Q4 2015			Q3 2015			Q2 2015			Q1 2015			Q4 2014			Q4 2013
Reinsurance recoverable on paid losses and loss expenses:
Insurance	$	40,633		$	28,812		$	38,639		$	23,788		$	29,280		$	29,897
Reinsurance	24,162			—			2,389			7,944			6,584			(21		)
Total	$	64,795		$	28,812		$	41,028		$	31,732		$	35,864		$	29,876

Reinsurance recoverable on unpaid losses and loss expenses: OSLR
Insurance	$	664,592		$	660,861		$	668,053		$	576,718		$	584,378		$	587,727
Reinsurance	11,654			8,039			9,143			936			985			—
Total	$	676,246		$	668,900		$	677,196		$	577,654		$	585,363		$	587,727

Reinsurance recoverable on unpaid losses and loss expenses: IBNR
Insurance	$	1,349,242		$	1,323,350		$	1,327,163		$	1,326,362		$	1,320,518		$	1,321,597
Reinsurance	24,063			32,457			34,889			33,509			2,023			9,280
Total	$	1,373,305		$	1,355,807		$	1,362,052		$	1,359,871		$	1,322,541		$	1,330,877

Provision against reinsurance recoverables:
Insurance	$	(18,242	)	$	(17,420	)	$	(17,189	)	$	(16,886	)	$	(17,623	)	$	(18,492	)
Reinsurance	—			—			—			—			—			—
Total	$	(18,242	)	$	(17,420	)	$	(17,189	)	$	(16,886	)	$	(17,623	)	$	(18,492	)

Net reinsurance recoverables:
Insurance	$	2,036,225		$	1,995,603		$	2,016,666		$	1,909,982		$	1,916,553		$	1,920,729
Reinsurance	59,879			40,496			46,421			42,389			9,592			9,259
Total	$	2,096,104		$	2,036,099		$	2,063,087		$	1,952,371		$	1,926,145		$	1,929,988

AXIS Capital Holdings Limited

REINSURANCE RECOVERABLE ANALYSIS

At December 31, 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	$	1,525,666	$	(18,610	)	$	1,507,056	77.0%	25.7%	$	(14,143	)	0.9%	$	1,511,523
Other reinsurers balances > $20 million	295,199		(63,041		)	232,158		11.9%	4.0%	(1,612		)	0.5%	293,587
Other reinsurers balances < $20 million	293,481		(75,333		)	218,148		11.1%	3.7%	(2,487		)	0.8%	290,994
Total	$	2,114,346	$	(156,984	)	$	1,957,362	100.0%	33.4%	$	(18,242	)	0.9%	$	2,096,104

At December 31, 2015, 96.2% (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
Lloyds of London	12.1%	4.0%
Transatlantic Reinsurance Company	12.0%	4.0%
Swiss Reinsurance America Corporation	11.8%	3.9%
Partner Reinsurance Company of the US	10.6%	3.5%
Berkley Insurance Company	7.5%	2.5%
Hannover Rueckversicherungs Aktiengesellscheft	5.3%	1.8%
Everest Reinsurance Company	5.1%	1.7%
Ace Property and Casualty Insurance	4.9%	1.6%
XL Reinsurance America	4.0%	1.4%
Liberty Mutual Insurance Company	3.7%	1.3%
	77.0%	25.7%

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS



	Quarter ended December 31, 2015									Year ended December 31, 2015
	Gross			Recoveries			Net			Gross			Recoveries			Net
Reserve for unpaid losses and loss expenses

Beginning of period	$	9,703,583		$	(2,007,287	)	$	7,696,296		$	9,596,797		$	(1,890,280	)	$	7,706,517
Incurred	676,516			(153,185		)	523,331			2,752,860			(576,661		)	2,176,199
Paid	(702,205		)	129,212			(572,993		)	(2,504,762		)	452,040			(2,052,722		)
Foreign exchange and other	(31,609		)	(49		)	(31,658		)	(198,610		)	(16,408		)	(215,018		)

End of period [a]	$	9,646,285		$	(2,031,309	)	$	7,614,976		$	9,646,285		$	(2,031,309	)	$	7,614,976


[a]	At December 31, 2015, the gross reserve for losses and loss expenses included IBNR of $6,393 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 December 31, 2015									Year ended December 31, 2015
	Insurance			Reinsurance			Total			Insurance			Reinsurance			Total

Gross losses paid	$	378,309		$	323,896		$	702,205		$	1,406,927		$	1,097,835		$	2,504,762
Reinsurance recoveries	(112,628		)	(16,584		)	(129,212		)	(415,332		)	(36,708		)	(452,040		)

Net losses paid	265,681			307,312			572,993			991,595			1,061,127			2,052,722

Change in:
Reported case reserves	(19,093		)	3,578			(15,515		)	87,114			(7,457		)	79,657
IBNR	70,623			(80,796		)	(10,173		)	203,379			(34,939		)	168,440
Reinsurance recoveries on unpaid loss and loss expense reserves	(28,863		)	4,889			(23,974		)	(127,160		)	2,540			(124,620		)

Total net incurred losses and loss expenses	$	288,348		$	234,983		$	523,331		$	1,154,928		$	1,021,271		$	2,176,199

Gross reserve for losses and loss expenses	$	5,291,218		$	4,355,067		$	9,646,285		$	5,291,218		$	4,355,067		$	9,646,285

Net favorable prior year reserve development	$	2,222		$	75,022		$	77,244		$	23,447		$	219,601		$	243,048

Key Ratios

Net paid to net incurred percentage	92.1		%	130.8		%	109.5		%	85.9		%	103.9		%	94.3		%

Net paid losses / Net premiums earned	58.5		%	65.7		%	62.2		%	55.1		%	56.2		%	55.7		%
Change in net loss and loss expense reserves / Net premiums earned	5.0		%	(15.5		%)	(5.4		%)	9.1		%	(2.1		%)	3.3		%
Net loss and loss expense ratio	63.5		%	50.2		%	56.8		%	64.2		%	54.1		%	59.0		%

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

INSURANCE - QUARTERLY



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

Gross losses paid	$	378,309		$	388,142		$	365,887		$	274,589		$	400,408		$	342,952
Reinsurance recoveries	(112,628		)	(121,560		)	(112,071		)	(69,075		)	(120,151		)	(98,263		)

Net losses paid	265,681			266,582			253,816			205,514			280,257			244,689

Change in:
Reported case reserves	(19,093		)	(29,415		)	110,735			24,888			(57,519		)	(30,643		)
IBNR	70,623			46,941			17,744			68,071			39,704			87,794
Reinsurance recoveries on unpaid loss and loss expense reserves	(28,863		)	(836		)	(84,761		)	(12,700		)	10,345			(16,206		)

Total net incurred losses and loss expenses	$	288,348		$	283,272		$	297,534		$	285,773		$	272,787		$	285,634

Gross reserve for losses and loss expenses	$	5,291,218		$	5,243,445		$	5,262,956		$	5,112,243		$	5,063,147		$	4,873,184

Net favorable prior year reserve development	$	2,222		$	2,444		$	15,421		$	3,361		$	9,676		$	4,000

Key Ratios

Net paid to net incurred percentage	92.1		%	94.1		%	85.3		%	71.9		%	102.7		%	85.7		%

Net paid losses/Net premiums earned	58.5		%	60.0		%	56.1		%	45.9		%	60.7		%	54.3		%
Change in net loss and loss expense reserves / Net premiums earned	5.0		%	3.7		%	9.7		%	18.0		%	(1.6		%)	9.1		%
Net loss and loss expense ratio	63.5		%	63.7		%	65.8		%	63.9		%	59.1		%	63.4		%

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

REINSURANCE - QUARTERLY



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

Gross losses paid	$	323,896		$	212,859		$	256,376		$	304,704		$	289,236		$	249,816
Reinsurance recoveries	(16,584		)	(1,664		)	(5,798		)	(12,661		)	(5,213		)	(6		)

Net losses paid	307,312			211,195			250,578			292,043			284,023			249,810

Change in:
Reported case reserves	3,578			22,545			(10,675		)	(22,906		)	566			64,636
IBNR	(80,796		)	40,444			52,179			(46,764		)	(35,469		)	(46,422		)
Reinsurance recoveries on unpaid loss and loss expense reserves	4,889			2,931			(9,463		)	4,182			2,718			(2,298		)

Total net incurred losses and loss expenses	$	234,983		$	277,115		$	282,619		$	226,555		$	251,838		$	265,726

Gross reserve for losses and loss expenses	$	4,355,067		$	4,460,138		$	4,430,484		$	4,330,979		$	4,533,650		$	4,708,956

Net prior year favorable reserve development	$	75,022		$	42,681		$	49,192		$	52,705		$	55,883		$	38,788

Key Ratios

Net paid to net incurred percentage	130.8		%	76.2		%	88.7		%	128.9		%	112.8		%	94.0		%

Net paid losses / Net premiums earned	65.7		%	44.5		%	51.3		%	64.0		%	57.2		%	50.8		%
Change in net loss and loss expense reserves / Net premiums earned	(15.5		%)	13.9		%	6.5		%	(14.3		%)	(6.5		%)	3.3		%
Net loss and loss expense ratio	50.2		%	58.4		%	57.8		%	50.8		%	50.7		%	54.1		%

AXIS Capital Holdings Limited

NET PROBABLE MAXIMUM LOSSES TO CERTAIN PEAK INDUSTRY CATASTROPHE EXPOSURES - AS OF JANUARY 1, 2016



		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	$	511	$	729	$	907
Northeast	U.S. Hurricane	40		137		299
Mid-Atlantic	U.S. Hurricane	104		305		668
Gulf of Mexico	U.S. Hurricane	308		442		614
California	Earthquake	342		532		698
Europe	Windstorm	153		210		284
Japan	Earthquake	123		228		308
Japan	Windstorm	42		71		102

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 January 1, 2016. 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 $0.7 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 $0.7 billion. Conversely, there is a 99% chance that on an annual basis, the loss from a Southeast hurricane will fall below $0.7 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 December 31,				Year ended December 31,
	2015		2014		2015		2014

Net income available to common shareholders	$	134,787	$	163,663	$	601,562	$	770,657

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Weighted average shares outstanding - basic	96,072		100,468		98,609		104,368
Dilutive share equivalents:
Stock compensation plans	1,076		1,570		1,020		1,345
Weighted average shares outstanding - diluted	97,148		102,038		99,629		105,713

EARNINGS PER COMMON SHARE
Basic		$1.40		$1.63		$6.10		$7.38
Diluted		$1.39		$1.60		$6.04		$7.29

AXIS Capital Holdings Limited

EARNINGS PER COMMON SHARE INFORMATION AND COMMON SHARE ROLLFOWARD - QUARTERLY



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

Net income available to common shareholders	$	134,787		$	247,620		$	63,349		$	155,803		$	163,663		$	171,524

COMMON SHARES OUTSTANDING
Common shares - at beginning of period	96,049			100,284			100,219			99,426			100,827			111,651
Shares issued, including those sourced from treasury	25			22			125			1,083			88			162
Shares repurchased for treasury	(8		)	(4,257		)	(60		)	(290		)	(1,489		)	(2,328		)
Common shares - at end of period	96,066			96,049			100,284			100,219			99,426			109,485

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Weighted average shares outstanding - basic	96,072			98,226			100,274			99,910			100,468			110,757
Dilutive share equivalents:
Stock compensation plans	1,076			898			886			1,229			1,570			1,945
Weighted average shares outstanding - diluted	97,148			99,124			101,160			101,139			102,038			112,702

EARNINGS PER SHARE
Basic		$1.40			$2.52			$0.63			$1.56			$1.63			$1.55
Diluted		$1.39			$2.50			$0.63			$1.54			$1.60			$1.52

AXIS Capital Holdings Limited

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



	At December 31, 2015

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

Closing stock price								$56.22

Book value per common share excluding the impact of additional shares settled under the accelerated share repurchase program ("ASR")			$	5,239,039	96,066			$54.54

Additional shares settled under the ASR program [b]					(1,358	)	0.78

Book value per common share					94,708			$55.32

Dilutive securities: [c]
Restricted stocks					307		(0.18		)
Restricted and phantom stock units					1,868		(1.06		)
Diluted book value per common share			$	5,239,039	96,883			$54.08

	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 ASR agreement was early terminated by Goldman Sachs on January 15, 2016 with 1,358,380 of additional common shares delivered to the Company.

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

AXIS Capital Holdings Limited

OPERATING INCOME [a]



OPERATING INCOME
	Quarter ended December 31,						Year ended December 31,
	2015			2014			2015			2014
Net income available to common shareholders	$	134,787		$	163,663		$	601,562		$	770,657
Adjustment for:
Net realized investment (gains) losses	14,872			(10,779		)	138,491			(132,108		)
Associated tax impact	1,005			11,959			(3,171		)	25,912
Foreign exchange gains	(33,112		)	(46,086		)	(102,312		)	(104,439		)
Associated tax impact	2,277			1,535			3,021			2,853
Termination fee received	—			—			(280,000		)	—
Associated tax impact	—			—			—			—
Reorganization and related expenses	—			—			45,867			—
Associated tax impact	—			—			(2,943		)	—
Operating income	$	119,829		$	120,292		$	400,515		$	562,875


Net earnings per share - diluted	$	1.39		$	1.60		$	6.04		$	7.29
Adjustment for:
Net realized investment (gains) losses	0.15			(0.11		)	1.39			(1.25		)
Associated tax impact	0.01			0.12			(0.03		)	0.25
Foreign exchange gains	(0.34		)	(0.45		)	(1.03		)	(1.00		)
Associated tax impact	0.02			0.02			0.03			0.03
Termination fee received	—			—			(2.81		)	—
Associated tax impact	—			—			—			—
Reorganization and related expenses	—			—			0.46			—
Associated tax impact	—			—			(0.03		)	—
Operating income per share - diluted	$	1.23		$	1.18		$	4.02		$	5.32

Weighted average common shares and common share equivalents - diluted	97,148			102,038			99,629			105,713

Average common shareholders' equity	5,218,781			5,191,962			5,216,159			5,191,699

Annualized return on average common equity	10.3		%	12.6		%	11.5		%	14.8		%

Annualized operating return on average common equity	9.2		%	9.3		%	7.7		%	10.8		%


[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]
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,
	2015			2015			2015			2015			2014			2013
Common shareholders' equity	$	5,239,039		$	5,198,523		$	5,320,715		$	5,349,320		$	5,193,278		$	5,190,119
Less: goodwill and intangible assets	(86,858		)	(87,329		)	(101,053		)	(88,508		)	(88,960		)	(89,528		)
Tangible common shareholders' equity	$	5,152,181		$	5,111,194		$	5,219,662		$	5,260,812		$	5,104,318		$	5,100,591

Outstanding diluted common shares net of treasury shares	98,241			98,213			102,690			102,924			102,577			113,325

Diluted book value per common share [c]	$	54.08		$	53.68		$	51.81		$	51.97		$	50.63		$	45.80

Diluted tangible book value per common share [c]	$	53.18		$	52.78		$	50.83		$	51.11		$	49.76		$	45.01


[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]

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 ' 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' 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.