Exhibit

EX-99.2 3 axsex99-2.htm FIRST QUARTER 2016 INVESTOR FINANCIAL SUPPLEMENT Exhibit

AXIS Capital Holdings Limited

INVESTOR FINANCIAL SUPPLEMENT

FIRST QUARTER 2016





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

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, 2015.


•	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. 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.

Marine and 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 March 31,
		2016			2015			Change

HIGHLIGHTS	Gross premiums written	$	1,959,161		$	1,678,932		16.7	%
	Gross premiums written - Insurance	33.3		%	35.9		%	(2.6	)	pts
	Gross premiums written - Reinsurance	66.7		%	64.1		%	2.6		pts
	Net premiums written	$	1,685,806		$	1,455,546		15.8	%
	Net premiums earned	$	902,340		$	904,053		(0.2	%)
	Net premiums earned - Insurance	48.6		%	49.4		%	(0.8	)	pts
	Net premiums earned - Reinsurance	51.4		%	50.6		%	0.8		pts
	Net income available to common shareholders	$	38,417		$	155,803		(75.3	%)
	Operating income [a]	101,274			136,071			(25.6	%)
	Reserve for losses and loss expenses	9,716,487			9,443,222			2.9	%
	Total shareholders’ equity	$	5,950,259		$	5,977,163		(0.5	%)


PER COMMON SHARE AND COMMON SHARE DATA	Basic earnings per common share		$0.41			$1.56		(73.7	%)
	Diluted earnings per common share	0.41			1.54			(73.4	%)
	Operating income per common share - diluted [b]		$1.07			$1.35		(20.7	%)
	Weighted average common shares outstanding	94,035			99,910			(5.9	%)
	Diluted weighted average common shares outstanding	94,853			101,139			(6.2	%)
	Book value per common share		$57.32			$53.38		7.4	%
	Diluted book value per common share (treasury stock method)	56.04			51.97			7.8	%
	Diluted tangible book value per common share (treasury stock method) [a]	55.13			51.11			7.9	%
	Accumulated dividends declared per common share		$10.55			$9.27		13.8	%


FINANCIAL RATIOS	ROACE [c]	2.9		%	11.8		%	(8.9	)	pts
	Operating ROACE [d]	7.7		%	10.3		%	(2.6	)	pts
	Net loss and loss expense ratio	55.3		%	56.7		%	(1.4	)	pts
	Acquisition cost ratio	20.0		%	19.0		%	1.0		pts
	General and administrative expense ratio	16.6		%	18.0		%	(1.4	)	pts
	Combined ratio	91.9		%	93.7		%	(1.8	)	pts


INVESTMENT DATA	Total assets	$	20,978,190		$	20,458,819		2.5	%
	Total cash and invested assets [e]	14,521,914			14,758,306			(1.6	%)
	Net investment income	49,164			92,110			(46.6	%)
	Net realized investment losses	$	(66,508	)	$	(42,553	)	nm
	Total return on cash and investments (inclusive of investment related foreign exchange movements) [f]	1.3		%	0.7		%	0.6		pts
	Total return on cash and investments (exclusive of investment related foreign exchange movements) [f]	1.3		%	1.2		%	0.1		pts
	Return on other investments [g]	(3.2		%)	3.3		%	(6.5	)	pts
	Book yield of fixed maturities	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 25 for reconciliation of operating income to net income available to common shareholders and page 26 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]	Return on average common equity (“ROACE”) is calculated by dividing net income available to common shareholders for the period by the average common shareholders’ equity determined by using the common shareholders’ equity balances at the beginning and end of the period. Net income for the quarter-periods is annualized.


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


[e]	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).


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


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

AXIS Capital Holdings Limited

CONSOLIDATED STATEMENTS OF INCOME - QUARTERLY



	Q1 2016			Q4 2015			Q3 2015			Q2 2015			Q1 2015			Q1 2014
UNDERWRITING REVENUES
Gross premiums written	$	1,959,161		$	799,802		$	936,583		$	1,188,413		$	1,678,932		$	1,821,399
Premiums ceded	(273,355		)	(204,444		)	(259,366		)	(241,869		)	(223,386		)	(156,815		)
Net premiums written	1,685,806			595,358			677,217			946,544			1,455,546			1,664,584

Gross premiums earned	1,136,222			1,146,532			1,148,356			1,158,755			1,114,311			1,133,052
Ceded premiums expensed	(233,882		)	(224,720		)	(229,015		)	(217,544		)	(210,258		)	(187,103		)
Net premiums earned	902,340			921,812			919,341			941,211			904,053			945,949
Other insurance related income (loss)	(203		)	(15,272		)	1,158			3,486			7,676			3,082
Total underwriting revenues	902,137			906,540			920,499			944,697			911,729			949,031

UNDERWRITING EXPENSES
Net losses and loss expenses	498,962			523,331			560,387			580,153			512,328			544,207
Acquisition costs	180,635			180,564			182,744			183,263			171,542			172,036
Underwriting-related general and administrative expenses [a]	123,589			114,287			121,123			124,433			127,069			124,022
Total underwriting expenses	803,186			818,182			864,254			887,849			810,939			840,265

UNDERWRITING INCOME [b]	98,951			88,358			56,245			56,848			100,790			108,766

OTHER OPERATING REVENUE (EXPENSES)
Net investment income	49,164			79,000			45,685			88,544			92,107			82,744
Net realized investment gains (losses)	(66,508		)	(14,872		)	(69,957		)	(11,110		)	(42,553		)	10,620
Interest expense and financing costs	(12,833		)	(12,851		)	(12,918		)	(12,939		)	(12,257		)	(16,594		)
Total other operating revenues (expenses)	(30,177		)	51,277			(37,190		)	64,495			37,297			76,770

OTHER (EXPENSES) REVENUE
Foreign exchange (losses) gains	(616		)	33,112			28,088			(22,108		)	63,220			(4,233		)
Termination fee received	—			—			280,000			—			—			—
Corporate expenses [a]	(26,312		)	(26,084		)	(23,604		)	(24,049		)	(36,172		)	(28,707		)
Reorganization and related expenses	—			—			(45,867		)	—			—			—
Total other (expenses) revenues	(26,928		)	7,028			238,617			(46,157		)	27,048			(32,940		)

INCOME BEFORE INCOME TAXES	41,846			146,663			257,672			75,186			165,135			152,596

Income tax (expense) benefit	6,540			(1,873		)	(30		)	(1,815		)	690			(4,125		)

NET INCOME	48,386			144,790			257,642			73,371			165,825			148,471

Amounts attributable to noncontrolling interests	—			—			—			—			—			(1,222		)

NET INCOME ATTRIBUTABLE TO AXIS CAPITAL	48,386			144,790			257,642			73,371			165,825			147,249

Preferred share dividends	(9,969		)	(10,003		)	(10,022		)	(10,022		)	(10,022		)	(10,022		)

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	38,417		$	134,787		$	247,620		$	63,349		$	155,803		$	137,227

KEY RATIOS/PER SHARE DATA
Net loss and loss expense ratio	55.3		%	56.8		%	61.0		%	61.6		%	56.7		%	57.5		%
Acquisition cost ratio	20.0		%	19.6		%	19.9		%	19.5		%	19.0		%	18.2		%
General and administrative expense ratio [a]	16.6		%	15.2		%	15.7		%	15.8		%	18.0		%	16.2		%
Combined ratio	91.9		%	91.6		%	96.6		%	96.9		%	93.7		%	91.9		%

Weighted average basic shares outstanding	94,035			96,072			98,226			100,274			99,910			109,053
Weighted average diluted shares outstanding	94,853			97,148			99,124			101,160			101,139			110,391
Basic earnings per common share		$0.41			$1.40			$2.52			$0.63			$1.56			$1.26
Diluted earnings per common share		$0.41			$1.39			$2.50			$0.63			$1.54			$1.24
ROACE (annualized)	2.9		%	10.3		%	18.8		%	4.7		%	11.8		%	10.6		%
Operating ROACE (annualized)	7.7		%	9.2		%	3.9		%	7.0		%	10.3		%	10.6		%


[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 SEGMENT DATA



	Quarter ended March 31, 2016									Quarter ended March 31, 2015
	Insurance			Reinsurance			Total			Insurance			Reinsurance			Total
UNDERWRITING REVENUES
Gross premiums written	$	653,349		$	1,305,812		$	1,959,161		$	602,724		$	1,076,208		$	1,678,932
Net premiums written	473,163			1,212,643			1,685,806			436,740			1,018,806			1,455,546

Gross premiums earned	635,665			500,557			1,136,222			638,348			475,963			1,114,311
Ceded premiums expensed	(196,987		)	(36,895		)	(233,882		)	(190,881		)	(19,377		)	(210,258		)
Net premiums earned	438,678			463,662			902,340			447,467			456,586			904,053
Other insurance related income	137			(340		)	(203		)	—			7,676			7,676
Total underwriting revenues	438,815			463,322			902,137			447,467			464,262			911,729

UNDERWRITING EXPENSES
Net losses and loss expenses	274,405			224,557			498,962			285,773			226,555			512,328
Acquisition costs	61,398			119,237			180,635			64,455			107,087			171,542
Underwriting-related general and administrative expenses	85,576			38,013			123,589			87,689			39,380			127,068
Total underwriting expenses	421,379			381,807			803,186			437,917			373,022			810,938

UNDERWRITING INCOME	$	17,436		$	81,515		$	98,951		$	9,550		$	91,240		$	100,790

KEY RATIOS
Current accident year loss ratio	63.1		%	63.1		%	63.1		%	64.6		%	61.2		%	62.9		%
Prior period reserve development	(0.5		%)	(14.7		%)	(7.8		%)	(0.7		%)	(11.6		%)	(6.2		%)
Net loss and loss expense ratio	62.6		%	48.4		%	55.3		%	63.9		%	49.6		%	56.7		%
Acquisition cost ratio	14.0		%	25.7		%	20.0		%	14.4		%	23.5		%	19.0		%
Underwriting-related general and administrative expense ratio	19.5		%	8.2		%	13.7		%	19.6		%	8.6		%	14.0		%
Corporate expense ratio							2.9		%							4.0		%
Combined ratio	96.1		%	82.3		%	91.9		%	97.9		%	81.7		%	93.7		%

AXIS Capital Holdings Limited

GROSS PREMIUMS WRITTEN BY SEGMENT BY LINE OF BUSINESS




	Q1 2016		Q4 2015			Q3 2015			Q2 2015		Q1 2015		Q1 2014

INSURANCE SEGMENT
Property	$	146,592	$	141,429		$	139,488		$	196,817	$	129,624	$	139,929
Marine	73,532		26,071			38,817			85,483		91,586		85,722
Terrorism	7,046		7,972			11,192			6,610		7,935		6,978
Aviation	19,101		24,887			10,222			9,519		10,014		2,717
Credit and Political Risk	8,917		30,327			8,542			12,981		8,117		18,307
Professional Lines	145,451		251,641			196,218			251,730		150,422		154,248
Liability	83,886		83,941			104,666			112,870		82,667		74,366
Accident and Health	168,824		46,259			97,559			85,116		122,359		119,454
TOTAL INSURANCE SEGMENT	653,349		612,527			606,704			761,126		602,724		601,721

REINSURANCE SEGMENT
Catastrophe	146,847		8,135			56,693			95,653		131,216		171,260
Property	176,174		(2,649		)	67,539			58,258		182,012		239,620
Professional Lines	88,774		71,794			45,509			94,152		65,024		68,219
Credit and Surety	258,111		11,662			23,390			16,210		191,357		208,468
Motor	321,422		1,839			21,359			14,196		297,690		274,019
Liability	149,990		86,457			111,361			57,730		89,772		102,644
Agriculture	62,657		(6,506		)	(3,303		)	72,709		69,729		103,165
Engineering	34,789		13,886			4,397			15,707		38,059		36,510
Marine and Other	67,048		2,657			2,934			2,672		11,349		15,773
TOTAL REINSURANCE SEGMENT	1,305,812		187,275			329,879			427,287		1,076,208		1,219,678

CONSOLIDATED TOTAL	$	1,959,161	$	799,802		$	936,583		$	1,188,413	$	1,678,932	$	1,821,399

AXIS Capital Holdings Limited

INSURANCE SEGMENT DATA - QUARTERLY



	Q1 2016			Q4 2015			Q3 2015			Q2 2015			Q1 2015			Q1 2014
UNDERWRITING REVENUES
Gross premiums written	$	653,349		$	612,527		$	606,704		$	761,126		$	602,724		$	601,721
Net premiums written	473,163			407,236			381,118			534,263			436,740			456,692

Gross premiums earned	635,665			652,349			647,024			649,053			638,348			629,425
Ceded premiums expensed	(196,987		)	(198,498		)	(202,474		)	(196,731		)	(190,881		)	(180,211		)
Net premiums earned	438,678			453,851			444,550			452,322			447,467			449,214
Other insurance related income (loss)	137			225			542			269			—			—
Total underwriting revenues	438,815			454,076			445,092			452,591			447,467			449,214

UNDERWRITING EXPENSES
Net losses and loss expenses	274,405			288,348			283,272			297,534			285,773			279,423
Acquisition costs	61,398			60,716			69,118			66,920			64,455			65,057
General and administrative expenses	85,576			79,734			85,814			88,420			87,689			87,946
Total underwriting expenses	421,379			428,798			438,204			452,874			437,917			432,426

UNDERWRITING INCOME (LOSS)	$	17,436		$	25,278		$	6,888		$	(283	)	$	9,550		$	16,788

KEY RATIOS
Current accident year loss ratio	63.1		%	64.0		%	64.3		%	69.2		%	64.6		%	64.8		%
Prior period reserve development	(0.5		%)	(0.5		%)	(0.6		%)	(3.4		%)	(0.7		%)	(2.6		%)
Net loss and loss expense ratio	62.6		%	63.5		%	63.7		%	65.8		%	63.9		%	62.2		%
Acquisition cost ratio	14.0		%	13.4		%	15.5		%	14.8		%	14.4		%	14.5		%
General and administrative expense ratio	19.5		%	17.6		%	19.4		%	19.5		%	19.6		%	19.6		%
Combined ratio	96.1		%	94.5		%	98.6		%	100.1		%	97.9		%	96.3		%

AXIS Capital Holdings Limited

REINSURANCE SEGMENT DATA - QUARTERLY



	Q1 2016			Q4 2015			Q3 2015			Q2 2015			Q1 2015			Q1 2014
UNDERWRITING REVENUES
Gross premiums written	$	1,305,812		$	187,275		$	329,879		$	427,287		$	1,076,208		$	1,219,678
Net premiums written	1,212,643			188,122			296,099			412,281			1,018,806			1,207,892

Gross premiums earned	500,557			494,183			501,332			509,702			475,963			503,627
Ceded premiums expensed	(36,895		)	(26,222		)	(26,541		)	(20,813		)	(19,377		)	(6,892		)
Net premiums earned	463,662			467,961			474,791			488,889			456,586			496,735
Other insurance related income (loss)	(340		)	(15,497		)	616			3,217			7,676			3,082
Total underwriting revenues	463,322			452,464			475,407			492,106			464,262			499,817

UNDERWRITING EXPENSES
Net losses and loss expenses	224,557			234,983			277,115			282,619			226,555			264,784
Acquisition costs	119,237			119,848			113,626			116,343			107,087			106,979
General and administrative expenses	38,013			34,553			35,309			36,013			39,380			36,076
Total underwriting expenses	381,807			389,384			426,050			434,975			373,022			407,839

UNDERWRITING INCOME	$	81,515		$	63,080		$	49,357		$	57,131		$	91,240		$	91,978

KEY RATIOS
Current accident year loss ratio	63.1		%	66.2		%	67.4		%	67.9		%	61.2		%	59.7		%
Prior period reserve development	(14.7		%)	(16.0		%)	(9.0		%)	(10.1		%)	(11.6		%)	(6.4		%)
Net loss and loss expense ratio	48.4		%	50.2		%	58.4		%	57.8		%	49.6		%	53.3		%
Acquisition cost ratio	25.7		%	25.6		%	23.9		%	23.8		%	23.5		%	21.5		%
General and administrative expense ratio	8.2		%	7.4		%	7.4		%	7.4		%	8.6		%	7.3		%
Combined ratio	82.3		%	83.2		%	89.7		%	89.0		%	81.7		%	82.1		%

AXIS Capital Holdings Limited

NET INVESTMENT INCOME - QUARTERLY




	Q1 2016			Q4 2015			Q3 2015			Q2 2015			Q1 2015			Q1 2014

Fixed maturities	$	75,975		$	74,659		$	75,980		$	77,998		$	66,088		$	72,957
Other investments	(26,878		)	2,531			(27,421		)	14,102			30,935			16,760
Equity securities	5,145			3,494			3,445			2,674			1,676			2,286
Mortgage loans	1,684			1,085			482			281			13			—
Cash and cash equivalents	1,434			4,802			993			1,678			1,099			863
Short-term investments	206			163			83			125			69			214

Gross investment income	57,566			86,734			53,562			96,858			99,880			93,080
Investment expenses	(8,402		)	(7,734		)	(7,877		)	(8,314		)	(7,773		)	(10,336		)

Net investment income	$	49,164		$	79,000		$	45,685		$	88,544		$	92,107		$	82,744

AXIS Capital Holdings Limited

CONSOLIDATED BALANCE SHEETS



	March 31,			December 31,			September 30,			June 30,			March 31,			March 31,
	2016			2015			2015			2015			2015			2014
ASSETS
Investments:
Fixed maturities, available for sale, at fair value	$	11,838,068		$	11,719,749		$	12,139,595		$	12,005,736		$	12,012,894		$	12,095,839
Equity securities, available for sale, at fair value	637,325			597,998			689,157			659,181			601,329			708,412
Mortgage loans, held for investment, at amortized cost	267,589			206,277			129,431			79,606			9,935			—
Other investments, at fair value	859,639			816,756			800,319			853,101			939,006			1,005,762
Short-term investments, at fair value and amortized cost	29,540			34,406			7,152			30,618			38,373			296,800
Total investments	13,632,161			13,375,186			13,765,654			13,628,242			13,601,537			14,106,813
Cash and cash equivalents	952,311			1,174,751			1,180,473			1,180,059			1,183,782			1,294,709
Accrued interest receivable	71,475			73,729			75,375			78,409			79,706			89,536
Insurance and reinsurance premium balances receivable	2,690,400			1,967,535			2,169,581			2,394,037			2,255,036			2,292,954
Reinsurance recoverable on paid and unpaid losses	2,116,090			2,096,104			2,036,099			2,063,087			1,952,371			1,912,840
Deferred acquisition costs	646,919			471,782			544,178			594,863			616,785			634,413
Prepaid reinsurance premiums	436,382			396,201			416,451			387,639			357,042			299,994
Receivable for investments sold	1,614			26,478			7,220			1,304			13,432			1,972
Goodwill and intangible assets	86,446			86,858			87,329			101,053			88,508			90,350
Other assets	344,392			313,267			274,981			276,182			268,350			274,053
TOTAL ASSETS	$	20,978,190		$	19,981,891		$	20,557,341		$	20,704,875		$	20,416,549		$	20,997,634

LIABILITIES
Reserve for losses and loss expenses	$	9,716,487		$	9,646,285		$	9,703,583		$	9,693,440		$	9,443,222		$	9,667,841
Unearned premiums	3,586,307			2,760,889			3,107,348			3,324,578			3,287,920			3,372,166
Insurance and reinsurance balances payable	344,181			356,417			301,830			296,794			300,029			207,909
Senior notes	992,091			991,825			991,562			991,302			991,045			1,490,198
Payable for investments purchased	135,647			9,356			303,916			213,142			196,526			162,747
Other liabilities	253,218			350,237			322,736			237,061			220,644			218,502
TOTAL LIABILITIES	15,027,931			14,115,009			14,730,975			14,756,317			14,439,386			15,119,363

SHAREHOLDERS’ EQUITY
Preferred shares	625,000			627,843			627,843			627,843			627,843			627,843
Common shares	2,206			2,202			2,202			2,201			2,200			2,188
Additional paid-in capital	2,296,533			2,241,388			2,230,278			2,285,772			2,287,065			2,247,102
Accumulated other comprehensive income (loss)	17,646			(188,465		)	(117,593		)	(78,067		)	(17,070		)	182,254
Retained earnings	6,198,932			6,194,353			6,093,897			5,875,147			5,842,239			5,170,948
Treasury shares, at cost	(3,190,058		)	(3,010,439		)	(3,010,261		)	(2,764,338		)	(2,765,114		)	(2,403,286		)
TOTAL SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO AXIS CAPITAL	5,950,259			5,866,882			5,826,366			5,948,558			5,977,163			5,827,049
Noncontrolling interests	—			—			—			—			—			51,222
TOTAL SHAREHOLDERS' EQUITY	5,950,259			5,866,882			5,826,366			5,948,558			5,977,163			5,878,271

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	20,978,190		$	19,981,891		$	20,557,341		$	20,704,875		$	20,416,549		$	20,997,634

Basic common shares outstanding	92,903			96,066			96,049			100,284			100,219			106,745
Diluted common shares outstanding	95,031			96,883			98,213			102,690			102,924			110,327
Book value per common share [a]		$57.32			$55.32			$54.91			$53.06			$53.38			$48.71
Diluted book value per common share [a]	56.04			54.08			53.68			51.81			51.97			47.13
Diluted tangible book value per common share [a]		$55.13			$53.18			$52.78			$50.83			$51.11			$46.31
Debt to total capital [b]	14.3		%	14.5		%	14.5		%	14.3		%	14.2		%	20.4		%
Debt and preferred equity to total capital	23.3		%	23.6		%	23.8		%	23.3		%	23.2		%	28.9		%

[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 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 24 '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 March 31, 2016



	Cost or Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value			Percentage
Fixed Maturities, available for sale
U.S. government and agency	$	1,552,689	$	20,614	$	(3,123	)	$	1,570,180		10.7	%
Non-U.S. government	753,923		6,718		(39,918		)	720,723			5.0	%
Corporate debt	4,423,369		55,031		(53,358		)	4,425,042			30.5	%
Agency RMBS	2,377,262		45,420		(1,381		)	2,421,301			16.7	%
CMBS	1,099,346		13,221		(5,883		)	1,106,684			7.6	%
Non-Agency RMBS	94,704		1,584		(1,266		)	95,022			0.7	%
ABS	1,359,752		1,199		(17,801		)	1,343,150			9.2	%
Municipals	151,737		4,758		(529		)	155,966			1.1	%
Total fixed maturities	11,812,782		148,545		(123,259		)	11,838,068			81.5	%

Equity securities, available for sale
Common stocks	292		96		(210		)	178			—	%
Exchange traded funds	471,879		32,339		(3,550		)	500,668			3.4	%
Bond mutual funds	133,120		3,359		—			136,479			1.0	%
Total equity securities	605,291		35,794		(3,760		)	637,325			4.4	%

Total available for sale investments	$	12,418,073	$	184,339	$	(127,019	)	12,475,393			85.9	%

Mortgage loans, held for investment								267,589			1.8	%

Other investments (see below)								859,639			5.9	%

Short-term investments								29,540			0.3	%

Total investments								13,632,161			93.9	%

Cash and cash equivalents [a]								952,311			6.6	%

Accrued interest receivable								71,475			0.5	%

Net receivable/(payable) for investments sold (purchased)								(134,033		)	(1.0	%)

Total cash and invested assets								$	14,521,914		100.0	%

								Fair Value			Percentage
Other Investments:
Long/short equity funds								$	128,502		14.9	%
Multi-strategy funds								312,211			36.3	%
Event-driven funds								146,428			17.0	%
Leveraged bank loan funds								65			—	%
Direct lending funds								112,889			13.1	%
Real estate funds								5,390			0.6	%
Private equity funds								93,783			10.9	%
Collateralized loan obligations - equity tranches								60,371			7.2	%
Total								$	859,639		100.0	%


[a]	Includes $175 million of restricted cash and cash equivalents.

AXIS Capital Holdings Limited

CASH AND INVESTED ASSETS COMPOSITION - QUARTERLY



	Q1 2016		Q4 2015		Q3 2015		Q2 2015		Q1 2015		Q1 2014
	Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %
CASH AND INVESTED ASSETS PORTFOLIO
Fixed Maturities:
U.S. government and agency	10.7	%	11.3	%	12.7	%	11.5	%	10.1	%	11.0	%
Non-U.S. government	5.0	%	5.0	%	5.2	%	6.1	%	5.9	%	8.0	%
Corporate debt	30.5	%	29.8	%	30.5	%	30.0	%	30.7	%	25.0	%
MBS:
Agency RMBS	16.7	%	15.4	%	15.0	%	14.5	%	14.9	%	15.4	%
CMBS	7.6	%	7.4	%	7.3	%	7.5	%	7.7	%	5.6	%
Non-agency RMBS	0.7	%	0.7	%	0.7	%	0.7	%	0.5	%	0.6	%
ABS	9.2	%	9.4	%	9.8	%	9.7	%	10.1	%	6.3	%
Municipals	1.1	%	1.1	%	1.2	%	1.7	%	1.4	%	6.9	%

Total Fixed Maturities	81.5	%	80.1	%	82.4	%	81.7	%	81.3	%	78.8	%
Equity securities	4.4	%	4.1	%	4.7	%	4.5	%	4.1	%	4.6	%
Mortgage loans	1.8	%	1.4	%	0.9	%	0.5	%	0.1	%	—	%
Other investments	5.9	%	5.6	%	5.4	%	5.8	%	6.3	%	6.6	%
Short-term investments	0.3	%	0.2	%	0.1	%	0.4	%	0.3	%	2.0	%

Total Investments	93.9	%	91.4	%	93.5	%	92.9	%	92.1	%	92.0	%
Cash and cash equivalents	6.6	%	8.0	%	8.0	%	8.0	%	8.6	%	8.4	%
Accrued interest receivable	0.5	%	0.5	%	0.5	%	0.5	%	0.5	%	0.6	%
Net receivable/(payable) for investments sold or purchased	(1.0	%)	0.1	%	(2.0	%)	(1.4	%)	(1.2	%)	(1.0	%)
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	13.3	%	14.1	%	15.4	%	14.0	%	12.4	%	13.9	%
AAA	37.9	%	36.4	%	35.0	%	35.8	%	36.9	%	34.7	%
AA	11.3	%	10.9	%	10.9	%	10.5	%	10.6	%	12.1	%
A	16.8	%	17.6	%	18.7	%	18.4	%	18.5	%	18.2	%
BBB	11.7	%	12.3	%	11.6	%	12.3	%	12.6	%	12.7	%
Below BBB	9.0	%	8.7	%	8.4	%	9.0	%	9.0	%	8.4	%
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	2.4	%	2.5	%	3.5	%	4.5	%	4.2	%	4.5	%
From one to five years	33.7	%	35.3	%	36.5	%	36.4	%	36.2	%	43.7	%
From five to ten years	19.1	%	18.6	%	17.7	%	16.7	%	16.8	%	14.4	%
Above ten years	2.8	%	2.6	%	2.5	%	2.7	%	2.0	%	1.9	%
Asset-backed and mortgage-backed securities	42.0	%	41.0	%	39.8	%	39.7	%	40.8	%	35.5	%
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	2.5	%	2.9	%	2.5	%	2.5	%	2.2	%	2.1	%
Average duration of fixed maturities (inclusive of duration hedges)	3.1 yrs		3.3 yrs		3.1 yrs		3.2 yrs		3.0 yrs		3.0 yrs
Average credit quality	AA-		AA-		AA-		AA-		AA-		AA-

AXIS Capital Holdings Limited

GEOGRAPHIC DISTRIBUTION OF FIXED MATURITIES AND EQUITIES

At March 31, 2016



				Corporate Debt
	Governments and Agencies			Financials		Non-Financials		Government Guaranteed		Total		Agency RMBS		Non-Agency RMBS/CMBS		ABS		Total Fixed Maturities		Equities			Total Fixed Maturities and Equities
Composition by country
Eurozone countries:
Germany	$	322		$	2,337	$	23,933	$	18,456	$	44,726	$	—	$	9,291	$	—	$	54,339	$	—		$	54,339
Netherlands	—			17,318		36,134		—		53,452		—		305		—		53,757		—			53,757
France	—			1,706		37,730		—		39,436		—		—		—		39,436		285			39,721
Luxembourg	—			—		29,468		—		29,468		—		—		—		29,468		—			29,468
Ireland	—			9,313		10,959		—		20,272		—		—		4,171		24,443		—			24,443
Supranational [a]	15,747			—		—		—		—		—		—		—		15,747		—			15,747
Belgium	—			—		11,635		—		11,635		—		—		—		11,635		—			11,635
Italy	—			—		4,243		—		4,243		—		—		—		4,243		—			4,243
Spain	—			—		3,871		—		3,871		—		—		—		3,871		—			3,871
Austria	—			—		1,709		—		1,709		—		—		—		1,709		—			1,709
Other [b]	—			—		—		—		—		—		—		—		—		20,733			20,733
Total eurozone	16,069			30,674		159,682		18,456		208,812		—		9,596		4,171		238,648		21,018			259,666
Other concentrations:
United Kingdom	272,812			23,006		146,056		541		169,603		—		11,838		—		454,253		10,123			464,376
Canada	90,931			160,001		75,186		59,064		294,251		—		—		—		385,182		—			385,182
Australia	177,613			54,146		13,682		—		67,828		—		—		567		246,008		—			246,008
Japan	—			47,974		7,961		—		55,935		—		—		—		55,935		7,713			63,648
Mexico	41,506			—		3,471		—		3,471		—		—		—		44,977		—			44,977
Other	121,792			5,410		75,500		—		80,910		—		—		—		202,702		27,616		[c]	230,318
Total other concentrations	704,654			290,537		321,856		59,605		671,998		—		11,838		567		1,389,057		45,452			1,434,509

Total Non-U.S. concentrations	720,723			321,211		481,538		78,061		880,810		—		21,434		4,738		1,627,705		66,470			1,694,175

United States	1,545,121		[d]	1,413,815		2,130,417		—		3,544,232		2,421,301		1,180,272		1,338,412		10,029,338		570,855		[e]	10,600,193
United States agencies	25,059			—		—		—		—		—		—		—		25,059		—			25,059
United States local governments	155,966			—		—		—		—		—		—		—		155,966		—			155,966
Total U.S. concentrations	1,726,146			1,413,815		2,130,417		—		3,544,232		2,421,301		1,180,272		1,338,412		10,210,363		570,855			10,781,218

Totals	$	2,446,869		$	1,735,026	$	2,611,955	$	78,061	$	4,425,042	$	2,421,301	$	1,201,706	$	1,343,150	$	11,838,068	$	637,325		$	12,475,393


[a]	Represents holdings of the European Investment Bank.


[b]	Represents holdings in 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 March 31, 2016



	Fair Value		% of Total Corporate Debt		% of Total Cash and Invested Assets
Composition by sector - Investment grade
Financial institutions:
U.S. banking	$	1,010,440	22.8	%	7.0	%
Foreign banking [a]	263,862		6.0	%	1.8	%
Corporate/commercial finance	213,001		4.8	%	1.5	%
Insurance	118,411		2.7	%	0.8	%
Investment brokerage	20,467		0.5	%	0.1	%
Total financial institutions	1,626,181		36.8	%	11.2	%
Consumer non-cyclicals	456,679		10.3	%	3.1	%
Consumer cyclical	295,342		6.7	%	2.0	%
Communications	269,931		6.1	%	1.9	%
Technology	188,812		4.3	%	1.3	%
Industrials	168,136		3.8	%	1.2	%
Energy	138,171		3.1	%	1.0	%
Utilities	125,004		2.8	%	0.9	%
Transportation	90,219		2.0	%	0.6	%
Non-U.S. government guaranteed [b]	78,061		1.8	%	0.5	%
Total investment grade	3,436,536		77.7	%	23.7	%

Total non-investment grade	988,506		22.3	%	6.8	%

Total corporate debt	$	4,425,042	100.0	%	30.5	%


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


[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 March 31, 2016



	Amortized Cost		Net Unrealized Gain (Loss)		Fair Value		% of Total Fixed Maturities
ISSUER [a]
JP MORGAN CHASE & CO	$	120,314	$	2,591	$	122,905	1.0	%
WELLS FARGO & COMPANY	109,085		1,300		110,385		0.9	%
MORGAN STANLEY	104,813		1,756		106,569		0.9	%
PNC FINANCIAL SERVICES GROUP INC	94,741		756		95,497		0.8	%
GOLDMAN SACHS GROUP	93,622		1,383		95,005		0.8	%
AMERICAN EXPRESS COMPANY	80,148		254		80,402		0.7	%
VERIZON COMMUNICATIONS INC	60,022		1,100		61,122		0.5	%
TORONTO-DOMINION BANK	59,385		226		59,611		0.5	%
BANK OF AMERICA CORP	57,495		655		58,150		0.5	%
ANHEUSER-BUSCH INBEV	57,018		781		57,799		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 March 31, 2016



	Agencies			AAA			AA			A			BBB			Non-Investment Grade			Total

Residential MBS	$	2,421,301		$	11,440		$	12,225		$	30,000		$	17,456		$	23,901		$	2,516,323
Commercial MBS	—			724,209			201,516			146,690			34,005			264			1,106,684
ABS	—			917,637			329,944			62,160			25,862			7,547			1,343,150

Total mortgage-backed and asset-backed securities	$	2,421,301		$	1,653,286		$	543,685		$	238,850		$	77,323		$	31,712		$	4,966,157

Percentage of total	48.8		%	33.3		%	10.9		%	4.8		%	1.6		%	0.6		%	100.0		%

AXIS Capital Holdings Limited

REINSURANCE RECOVERABLE ANALYSIS



	Q1 2016			Q4 2015			Q3 2015			Q2 2015			Q1 2015			Q1 2014
Reinsurance recoverable on paid losses and loss expenses:
Insurance	$	36,414		$	40,633		$	28,812		$	38,639		$	23,788		$	26,943
Reinsurance	8,275			24,162			—			2,389			7,944			1,077
Total	$	44,689		$	64,795		$	28,812		$	41,028		$	31,732		$	28,020

Reinsurance recoverable on unpaid losses and loss expenses: OSLR
Insurance	$	667,601		$	664,592		$	660,861		$	668,053		$	576,718		$	575,811
Reinsurance	27,939			11,654			8,039			9,143			936			36
Total	$	695,540		$	676,246		$	668,900		$	677,196		$	577,654		$	575,847

Reinsurance recoverable on unpaid losses and loss expenses: IBNR
Insurance	$	1,384,417		$	1,349,242		$	1,323,350		$	1,327,163		$	1,326,362		$	1,322,309
Reinsurance	12,002			24,063			32,457			34,889			33,509			5,289
Total	$	1,396,419		$	1,373,305		$	1,355,807		$	1,362,052		$	1,359,871		$	1,327,598

Provision against reinsurance recoverables:
Insurance	$	(20,558	)	$	(18,242	)	$	(17,420	)	$	(17,189	)	$	(16,886	)	$	(18,625	)
Reinsurance	—			—			—			—			—			—
Total	$	(20,558	)	$	(18,242	)	$	(17,420	)	$	(17,189	)	$	(16,886	)	$	(18,625	)

Net reinsurance recoverables:
Insurance	$	2,067,874		$	2,036,225		$	1,995,603		$	2,016,666		$	1,909,982		$	1,906,438
Reinsurance	48,216			59,879			40,496			46,421			42,389			6,402
Total	$	2,116,090		$	2,096,104		$	2,036,099		$	2,063,087		$	1,952,371		$	1,912,840

AXIS Capital Holdings Limited

REINSURANCE RECOVERABLE ANALYSIS

At March 31, 2016



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	$	1,531,838	$	(18,970	)	$	1,512,868	76.0%	25.4%	$	(15,923	)	1.0%	$	1,515,915
Other reinsurers balances > $20 million	335,450		(84,879		)	250,571		12.6%	4.2%	(1,864		)	0.6%	333,586
Other reinsurers balances < $20 million	269,360		(42,396		)	226,964		11.4%	3.9%	(2,771		)	1.0%	266,589
Total	$	2,136,648	$	(146,245	)	$	1,990,403	100.0%	33.5%	$	(20,558	)	1.0%	$	2,116,090

At March 31, 2016, 96.9% (December 31, 2015: 96.2%) 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
Swiss Reinsurance America Corporation	12.4%	4.1%
Transatlantic Reinsurance Company	11.8%	3.9%
Lloyd's of London	11.8%	3.9%
Partner Reinsurance Company of the US	10.5%	3.5%
Berkley Insurance Company	7.1%	2.4%
Hannover Ruckversicherungs Aktiengesellschaft	5.2%	1.7%
Everest Reinsurance Company	5.1%	1.7%
Ace Property & Casualty Insurance	4.7%	1.6%
XL Reinsurance America Inc	3.8%	1.3%
Liberty Mutual Insurance Company	3.6%	1.3%
	76.0%	25.4%

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS



	Quarter ended March 31, 2016									Quarter ended March 31, 2015
	Gross			Recoveries			Net			Gross			Recoveries			Net
Reserve for unpaid losses and loss expenses

Beginning of period	$	9,646,285		$	(2,031,309	)	$	7,614,976		$	9,596,797		$	(1,890,280	)	$	7,706,517
Incurred	627,694			(128,732		)	498,962			602,582			(90,254		)	512,328
Paid	(652,268		)	95,996			(556,272		)	(579,293		)	81,736			(497,557		)
Foreign exchange and other	94,776			(7,356		)	87,420			(176,864		)	(21,841		)	(198,705		)

End of period [a]	$	9,716,487		$	(2,071,401	)	$	7,645,086		$	9,443,222		$	(1,920,639	)	$	7,522,583


[a]	At March 31, 2016, the gross reserve for losses and loss expenses included IBNR of $6,473 million, or 67%, of total gross reserves for loss and loss expenses. At December 31, 2015, the comparable amount was $6,393 million, or 66%.

AXIS Capital Holdings Limited

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



	Quarter ended March 31, 2016									Quarter ended March 31, 2015
	Insurance			Reinsurance			Total			Insurance			Reinsurance			Total

Gross losses paid	$	339,388		$	312,880		$	652,268		$	274,589		$	304,704		$	579,293
Reinsurance recoveries	(87,190		)	(8,806		)	(95,996		)	(69,075		)	(12,661		)	(81,736		)

Net losses paid	252,198			304,074			556,272			205,514			292,043			497,557

Change in:
Reported case reserves	5,668			(76,050		)	(70,382		)	24,888			(22,906		)	1,982
IBNR	46,851			(1,043		)	45,808			68,071			(46,764		)	21,307
Reinsurance recoveries on unpaid loss and loss expense reserves	(30,312		)	(2,424		)	(32,736		)	(12,700		)	4,182			(8,518		)

Total net incurred losses and loss expenses	$	274,405		$	224,557		$	498,962		$	285,773		$	226,555		$	512,328

Gross reserve for losses and loss expenses	$	5,364,671		$	4,351,816		$	9,716,487		$	5,112,243		$	4,330,979		$	9,443,222

Net favorable prior year reserve development	$	2,427		$	67,967		$	70,394		$	3,361		$	52,705		$	56,066

Key Ratios

Net paid to net incurred percentage	91.9		%	135.4		%	111.5		%	71.9		%	128.9		%	97.1		%

Net paid losses / Net premiums earned	57.5		%	65.6		%	61.6		%	45.9		%	64.0		%	55.0		%
Change in net loss and loss expense reserves / Net premiums earned	5.1		%	(17.2		%)	(6.3		%)	18.0		%	(14.3		%)	1.7		%
Net loss and loss expense ratio	62.6		%	48.4		%	55.3		%	63.9		%	50.8		%	56.7		%

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

INSURANCE - QUARTERLY



	Q1 2016			Q4 2015			Q3 2015			Q2 2015			Q1 2015			Q1 2014

Gross losses paid	$	339,388		$	378,309		$	388,142		$	365,887		$	274,589		$	250,264
Reinsurance recoveries	(87,190		)	(112,628		)	(121,560		)	(112,071		)	(69,075		)	(67,679		)

Net losses paid	252,198			265,681			266,582			253,816			205,514			182,585

Change in:
Reported case reserves	5,668			(19,093		)	(29,415		)	110,735			24,888			10,632
IBNR	46,851			70,623			46,941			17,744			68,071			73,532
Reinsurance recoveries on unpaid loss and loss expense reserves	(30,312		)	(28,863		)	(836		)	(84,761		)	(12,700		)	12,674

Total net incurred losses and loss expenses	$	274,405		$	288,348		$	283,272		$	297,534		$	285,773		$	279,423

Gross reserve for losses and loss expenses	$	5,364,671		$	5,291,218		$	5,243,445		$	5,262,956		$	5,112,243		$	4,960,559

Net favorable prior year reserve development	$	2,427		$	2,222		$	2,444		$	15,421		$	3,361		$	11,608

Key Ratios

Net paid to net incurred percentage	91.9		%	92.1		%	94.1		%	85.3		%	71.9		%	65.3		%

Net paid losses/Net premiums earned	57.5		%	58.5		%	60.0		%	56.1		%	45.9		%	40.6		%
Change in net loss and loss expense reserves / Net premiums earned	5.1		%	5.0		%	3.7		%	9.7		%	18.0		%	21.6		%
Net loss and loss expense ratio	62.6		%	63.5		%	63.7		%	65.8		%	63.9		%	62.2		%

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

REINSURANCE - QUARTERLY



	Q1 2016			Q4 2015			Q3 2015			Q2 2015			Q1 2015			Q1 2014

Gross losses paid	$	312,880		$	323,896		$	212,859		$	256,376		$	304,704		$	279,163
Reinsurance recoveries	(8,806		)	(16,584		)	(1,664		)	(5,798		)	(12,661		)	(4,033		)

Net losses paid	304,074			307,312			211,195			250,578			292,043			275,130

Change in:
Reported case reserves	(76,050		)	3,578			22,545			(10,675		)	(22,906		)	(88,642		)
IBNR	(1,043		)	(80,796		)	40,444			52,179			(46,764		)	74,341
Reinsurance recoveries on unpaid loss and loss expense reserves	(2,424		)	4,889			2,931			(9,463		)	4,182			3,955

Total net incurred losses and loss expenses	$	224,557		$	234,983		$	277,115		$	282,619		$	226,555		$	264,784

Gross reserve for losses and loss expenses	$	4,351,816		$	4,355,067		$	4,460,138		$	4,430,484		$	4,330,979		$	4,707,282

Net favorable prior year reserve development	$	67,967		$	75,022		$	42,681		$	49,192		$	52,705		$	31,885

Key Ratios

Net paid to net incurred percentage	135.4		%	130.8		%	76.2		%	88.7		%	128.9		%	103.9		%

Net paid losses / Net premiums earned	65.6		%	65.7		%	44.5		%	51.3		%	64.0		%	55.4		%
Change in net loss and loss expense reserves / Net premiums earned	(17.2		%)	(15.5		%)	13.9		%	6.5		%	(14.3		%)	(2.1		%)
Net loss and loss expense ratio	48.4		%	50.2		%	58.4		%	57.8		%	50.8		%	53.3		%

AXIS Capital Holdings Limited

NET PROBABLE MAXIMUM LOSSES TO CERTAIN PEAK INDUSTRY CATASTROPHE EXPOSURES - AS OF APRIL 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	$	512	$	755	$	947
Northeast	U.S. Hurricane	38		123		274
Mid-Atlantic	U.S. Hurricane	94		281		677
Gulf of Mexico	U.S. Hurricane	303		441		615
California	Earthquake	345		574		772
Europe	Windstorm	158		222		305
Japan	Earthquake	113		196		333
Japan	Windstorm	43		73		122

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 April 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 $0.8 billion. According to our modeling, there is a one percent chance that on an annual basis, our losses incurred from a Southeast hurricane event could be in excess of $0.8 billion. Conversely, there is a 99% chance that on an annual basis, the loss from a Southeast hurricane will fall below $0.8 billion.

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

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

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

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

AXIS Capital Holdings Limited

EARNINGS PER COMMON SHARE INFORMATION - AS REPORTED, GAAP



	Quarter ended March 31,
	2016		2015

Net income available to common shareholders	$	38,417	$	155,803

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Weighted average shares outstanding - basic	94,035		99,910
Dilutive share equivalents:
Stock compensation plans	818		1,229
Weighted average shares outstanding - diluted	94,853		101,139

EARNINGS PER COMMON SHARE
Basic		$0.41		$1.56
Diluted		$0.41		$1.54

AXIS Capital Holdings Limited

EARNINGS PER COMMON SHARE INFORMATION AND COMMON SHARES ROLLFOWARD - QUARTERLY



	Q1 2016			Q4 2015			Q3 2015			Q2 2015			Q1 2015			Q1 2014

Net income available to common shareholders	$	38,417		$	134,787		$	247,620		$	63,349		$	155,803		$	137,227

COMMON SHARES OUTSTANDING
Common shares - at beginning of period	96,066			96,049			100,284			100,219			99,426			109,485
Shares issued, including those sourced from treasury	747			25			22			125			1,083			1,296
Shares repurchased for treasury	(3,910		)	(8		)	(4,257		)	(60		)	(290		)	(4,036		)
Common shares - at end of period	92,903			96,066			96,049			100,284			100,219			106,745

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Weighted average shares outstanding - basic	94,035			96,072			98,226			100,274			99,910			109,053
Dilutive share equivalents:
Stock compensation plans	818			1,076			898			886			1,229			1,338
Weighted average shares outstanding - diluted	94,853			97,148			99,124			101,160			101,139			110,391

EARNINGS PER COMMON SHARE
Basic		$0.41			$1.40			$2.52			$0.63			$1.56			$1.26
Diluted		$0.41			$1.39			$2.50			$0.63			$1.54			$1.24

AXIS Capital Holdings Limited

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



	At March 31, 2016

		Common Shareholders’ Equity		Outstanding Common Shares net of Treasury Shares		Per share

Closing stock price							$55.46

Book value per common share		$	5,325,259	92,903			$57.32

Dilutive securities: [b]
Restricted stocks				23		(0.01		)
Restricted and phantom stock units				2,105		(1.27		)
Diluted book value per common share		$	5,325,259	95,031			$56.04

	At December 31, 2015

		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 [c]				(1,358	)	0.78

Book value per common share				94,708			$55.32

Dilutive securities: [b]
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


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


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

[c]

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.

AXIS Capital Holdings Limited

OPERATING INCOME [a]




OPERATING INCOME	Quarter ended March 31,
	2016			2015
Net income available to common shareholders	$	38,417		$	155,803
Adjustment for:
Net realized investment losses	66,508			42,553
Associated tax impact	(4,698		)	(559		)
Foreign exchange losses (gains)	616			(63,220		)
Associated tax impact	431			1,494
Operating income	$	101,274		$	136,071

Net earnings per share - diluted	$	0.41		$	1.54
Adjustment for:
Net realized investment losses	0.70			0.42
Associated tax impact	(0.05		)	—
Foreign exchange losses (gains)	0.01			(0.62		)
Associated tax impact	—			0.01
Operating income per share - diluted	$	1.07		$	1.35

Weighted average common shares and common share equivalents - diluted	94,853			101,139

Average common shareholders' equity	$	5,282,149		$	5,271,299

Annualized return on average common equity	2.9		%	11.8		%

Annualized operating return on average common equity	7.7		%	10.3		%


[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]
	March 31,			December 31,			September 30,			June 30,			March 31,			March 31,
	2016			2015			2015			2015			2015			2014
Common shareholders' equity	$	5,325,259		$	5,239,039		$	5,198,523		$	5,320,715		$	5,349,320		$	5,199,206
Less: goodwill and intangible assets	(86,446		)	(86,858		)	(87,329		)	(101,053		)	(88,508		)	(90,350		)
Tangible common shareholders' equity	$	5,238,813		$	5,152,181		$	5,111,194		$	5,219,662		$	5,260,812		$	5,108,856

Outstanding diluted common shares, net of treasury shares	95,031			98,241			98,213			102,690			102,924			110,327

Diluted book value per common share [c]	$	56.04		$	54.08		$	53.68		$	51.81		$	51.97		$	47.13

Diluted tangible book value per common share [c]	$	55.13		$	53.18		$	52.78		$	50.83		$	51.11		$	46.31


[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]

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 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.

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' section 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' section 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.