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

Exhibit

AXIS Capital Holdings Limited

INVESTOR FINANCIAL SUPPLEMENT

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

AXIS Capital Holdings Limited

BASIS OF PRESENTATION

DEFINITIONS AND PRESENTATION

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

• All financial information contained herein is unaudited, except for the consolidated balance sheet at December 31, 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 including the United Kingdom’s expected withdrawal from the European Union,

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

• the other factors set forth in our most recent report on Form 10-K, Form 10-Q and other documents on file with the Securities and Exchange Commission. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

i

AXIS Capital Holdings Limited

BASIS OF PRESENTATION

BUSINESS DESCRIPTIONS

INSURANCE SEGMENT

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

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

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

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

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

Credit and Political Risk: provides credit and political risk insurance products for banks and corporations. Coverage is provided for a range of risks including sovereign default, credit default, political violence, currency inconvertibility and non-transfer, expropriation, aircraft non-repossession and contract frustration due to political events. The credit insurance coverage is primarily for lenders seeking to mitigate the risk of non-payment from their borrowers. 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.

ii

AXIS Capital Holdings Limited

BASIS OF PRESENTATION

BUSINESS DESCRIPTIONS (CONTINUED)

REINSURANCE SEGMENT

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

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

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

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

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

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

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

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

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

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 September 30,												Nine months ended September 30,
				2016				2015				Change				2016				2015				Change
HIGHLIGHTS		Gross premiums written		$	959,962			$	936,583			2.5	%			$	4,239,558			$	3,803,928			11.5	%
		Gross premiums written - Insurance		70.4		%		64.8		%		5.6		pts		49.8		%		51.8		%		(2.0	)	pts
		Gross premiums written - Reinsurance		29.6		%		35.2		%		(5.6	)	pts		50.2		%		48.2		%		2.0		pts
		Net premiums written		$	595,431			$	677,217			(12.1	%)			$	3,288,587			$	3,079,307			6.8	%
		Net premiums earned		$	934,415			$	919,341			1.6	%			$	2,783,746			$	2,764,605			0.7	%
		Net premiums earned - Insurance		47.6		%		48.4		%		(0.8	)	pts		47.5		%		48.6		%		(1.1	)	pts
		Net premiums earned - Reinsurance		52.4		%		51.6		%		0.8		pts		52.5		%		51.4		%		1.1		pts
		Net income available to common shareholders		$	176,644			$	247,620			(28.7	%)			$	334,554			$	466,772			(28.3	%)
		Operating income [a]		160,689				51,031				214.9	%			309,450				280,682				10.2	%
		Reserve for losses and loss expenses		9,874,807				9,703,583				1.8	%			9,874,807				9,703,583				1.8	%
		Total shareholders’ equity		$	6,025,658			$	5,826,366			3.4	%			$	6,025,658			$	5,826,366			3.4	%
PER COMMON SHARE AND COMMON SHARE DATA		Basic earnings per common share			$1.97				$2.52			(21.8	%)				$3.64				$4.69			(22.4	%)
		Diluted earnings per common share		1.96				2.50				(21.6	%)			3.61				4.65				(22.4	%)
		Operating income per common share - diluted [b]			$1.78				$0.51			249.0	%				$3.34				$2.79			19.7	%
		Weighted average common shares outstanding		89,621				98,226				(8.8	%)			91,852				99,464				(7.7	%)
		Diluted weighted average common shares outstanding		90,351				99,124				(8.9	%)			92,579				100,468				(7.9	%)
		Book value per common share			$61.07				$54.91			11.2	%				$61.07				$54.91			11.2	%
		Diluted book value per common share (treasury stock method)		59.77				53.68				11.3	%			59.77				53.68				11.3	%
		Diluted tangible book value per common share (treasury stock method) [a]		58.82				52.78				11.4	%			58.82				52.78				11.4	%
		Accumulated dividends declared per common share			$11.25				$9.85			14.2	%				$11.25				$9.85			14.2	%
FINANCIAL RATIOS		ROACE [c]		13.2		%		18.8		%		(5.6	)	pts		8.4		%		11.9		%		(3.5	)	pts
		Operating ROACE [d]		12.0		%		3.9		%		8.1		pts		7.8		%		7.2		%		0.6		pts
		Net loss and loss expense ratio		57.0		%		61.0		%		(4.0	)	pts		59.8		%		59.8		%		—		pts
		Acquisition cost ratio		20.3		%		19.9		%		0.4		pts		20.1		%		19.4		%		0.7		pts
		General and administrative expense ratio		15.3		%		15.7		%		(0.4	)	pts		15.8		%		16.5		%		(0.7	)	pts
		Combined ratio		92.6		%		96.6		%		(4.0	)	pts		95.7		%		95.7		%		—		pts
INVESTMENT DATA		Total assets		$	21,222,391			$	20,557,341			3.2	%			$	21,222,391			$	20,557,341			3.2	%
		Total cash and invested assets [e]		14,551,790				14,724,806				(1.2	%)			14,551,790				14,724,806				(1.2	%)
		Net investment income		116,923				45,685				155.9	%			257,818				226,336				13.9	%
		Net realized investment gains (losses)		$	5,205			$	(69,957	)		nm				$	(40,295	)		$	(123,618	)		(67.4	%)
		Total return on cash and investments (inclusive of investment related foreign exchange movements) [f]		1.1		%		(0.3		%)		1.4		pts		3.6		%		0.3		%		3.3		pts
		Total return on cash and investments (exclusive of investment related foreign exchange movements) [f]		1.1		%		(0.1		%)		1.2		pts		3.9		%		0.9		%		3.0		pts
		Return on other investments [g]		4.5		%		(3.3		%)		7.8		pts		3.1		%		2.0		%		1.1		pts
		Book yield of fixed maturities		2.6		%		2.5		%		0.1		pts		2.6		%		2.5		%		0.1		pts

[a] Operating income and diluted tangible book value per common share are “non-GAAP financial measures” as defined by Regulation G. See page 27 for reconciliation of operating income to net income available to common shareholders and page 28 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, equity method 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), interest in income (loss) of equity method investments and the change in unrealized gains (losses) generated by our average cash and investment balances.

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

1

AXIS Capital Holdings Limited

CONSOLIDATED STATEMENTS OF INCOME - QUARTERLY

	Q3 2016				Q2 2016				Q1 2016				Q4 2015				Q3 2015				Q3 2014
UNDERWRITING REVENUES
Gross premiums written	$	959,962			$	1,320,434			$	1,959,161			$	799,802			$	936,583			$	896,814
Premiums ceded	(364,531		)		(313,084		)		(273,355		)		(204,444		)		(259,366		)		(209,591		)
Net premiums written	595,431				1,007,350				1,685,806				595,358				677,217				687,223
Gross premiums earned	1,214,826				1,197,722				1,136,222				1,146,532				1,148,356				1,160,577
Ceded premiums expensed	(280,411		)		(250,732		)		(233,882		)		(224,720		)		(229,015		)		(194,439		)
Net premiums earned	934,415				946,990				902,340				921,812				919,341				966,138
Other insurance related income (loss)	5,944				(892		)		(203		)		(15,272		)		1,158				7,702
Total underwriting revenues	940,359				946,098				902,137				906,540				920,499				973,840
UNDERWRITING EXPENSES
Net losses and loss expenses	532,328				632,294				498,962				523,331				560,387				552,064
Acquisition costs	189,810				189,125				180,635				180,564				182,744				185,950
Underwriting-related general and administrative expenses [a]	114,223				114,819				123,589				114,287				121,123				122,362
Total underwriting expenses	836,361				936,238				803,186				818,182				864,254				860,376
UNDERWRITING INCOME [b]	103,998				9,860				98,951				88,358				56,245				113,464
OTHER OPERATING REVENUE (EXPENSES)
Net investment income	116,923				91,730				49,164				79,000				45,685				66,562
Net realized investment gains (losses)	5,205				21,010				(66,508		)		(14,872		)		(69,957		)		77,448
Interest expense and financing costs	(12,839		)		(12,914		)		(12,833		)		(12,851		)		(12,918		)		(20,344		)
Total other operating revenues (expenses)	109,289				99,826				(30,177		)		51,277				(37,190		)		123,666
OTHER (EXPENSES) REVENUE
Foreign exchange (losses) gains	13,795				56,602				(616		)		33,112				28,088				72,292
Termination fee received	—				—				—				—				280,000				—
Corporate expenses [a]	(28,683		)		(31,927		)		(26,312		)		(26,084		)		(23,604		)		(30,554		)
Reorganization and related expenses	—				—				—				—				(45,867		)		—
Total other (expenses) revenues	(14,888		)		24,675				(26,928		)		7,028				238,617				41,738
INCOME BEFORE INCOME TAXES AND INTEREST IN INCOME (LOSS) OF EQUITY METHOD INVESTMENTS	198,399				134,361				41,846				146,663				257,672				278,868
Income tax (expense) benefit	(9,352		)		(4,901		)		6,540				(1,873		)		(30		)		4,098
Interest in loss of equity method investments	(2,434		)		—				—				—				—				—
NET INCOME	186,613				129,460				48,386				144,790				257,642				282,966
Amounts attributable to noncontrolling interests	—				—				—				—				—				6,160
NET INCOME ATTRIBUTABLE TO AXIS CAPITAL	186,613				129,460				48,386				144,790				257,642				289,126
Preferred share dividends	(9,969		)		(9,969		)		(9,969		)		(10,003		)		(10,022		)		(10,022		)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	176,644			$	119,491			$	38,417			$	134,787			$	247,620			$	279,104
KEY RATIOS/PER SHARE DATA
Net loss and loss expense ratio	57.0		%		66.8		%		55.3		%		56.8		%		61.0		%		57.1		%
Acquisition cost ratio	20.3		%		20.0		%		20.0		%		19.6		%		19.9		%		19.2		%
General and administrative expense ratio [a]	15.3		%		15.4		%		16.6		%		15.2		%		15.7		%		15.9		%
Combined ratio	92.6		%		102.2		%		91.9		%		91.6		%		96.6		%		92.2		%
Weighted average basic shares outstanding	89,621				91,926				94,035				96,072				98,226				102,945
Weighted average diluted shares outstanding	90,351				92,558				94,853				97,148				99,124				104,247
Basic earnings per common share		$1.97				$1.30				$0.41				$1.40				$2.52				$2.71
Diluted earnings per common share		$1.96				$1.29				$0.41				$1.39				$2.50				$2.68
ROACE (annualized)	13.2		%		9.0		%		2.9		%		10.3		%		18.8		%		21.2		%
Operating ROACE (annualized)	12.0		%		3.6		%		7.7		%		9.2		%		3.9		%		10.1		%

[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.

2

AXIS Capital Holdings Limited

CONSOLIDATED STATEMENTS OF INCOME - YEAR TO DATE

	Nine months ended September 30,												Year ended December 31,
	2016				2015				2014				2015				2014
UNDERWRITING REVENUES
Gross premiums written	$	4,239,558			$	3,803,928			$	3,949,479			$	4,603,730			$	4,711,519
Premiums ceded	(950,971		)		(724,621		)		(597,521		)		(929,064		)		(804,544		)
Net premiums written	3,288,587				3,079,307				3,351,958				3,674,666				3,906,975
Gross premiums earned	3,548,771				3,421,422				3,487,990				4,567,953				4,652,345
Ceded premiums expensed	(765,025		)		(656,817		)		(575,508		)		(881,536		)		(781,346		)
Net premiums earned	2,783,746				2,764,605				2,912,482				3,686,417				3,870,999
Other insurance related income (loss)	4,850				12,319				12,468				(2,953		)		650
Total underwriting revenues	2,788,596				2,776,924				2,924,950				3,683,464				3,871,649
UNDERWRITING EXPENSES
Net losses and loss expenses	1,663,584				1,652,868				1,662,097				2,176,199				2,186,722
Acquisition costs	559,570				537,549				549,848				718,112				737,197
Underwriting-related general and administrative expenses [a]	352,632				372,625				364,195				486,911				486,201
Total underwriting expenses	2,575,786				2,563,042				2,576,140				3,381,222				3,410,120
UNDERWRITING INCOME	212,810				213,882				348,810				302,242				461,529
OTHER OPERATING REVENUE (EXPENSES)
Net investment income	257,818				226,336				264,171				305,336				342,766
Net realized investment gains (losses)	(40,295		)		(123,618		)		121,329				(138,491		)		132,108
Interest expense and financing costs	(38,586		)		(38,114		)		(56,913		)		(50,963		)		(74,695		)
Total other operating revenues	178,937				64,604				328,587				115,882				400,179
OTHER (EXPENSES) REVENUE
Foreign exchange gains	69,781				69,200				58,353				102,312				104,439
Termination fee received	—				280,000				—				280,000				—
Corporate expenses [a]	(86,922		)		(83,826		)		(92,530		)		(109,910		)		(135,675		)
Reorganization and related expenses	—				(45,867		)		—				(45,867		)		—
Total other expenses	(17,141		)		219,507				(34,177		)		226,535				(31,236		)
INCOME BEFORE INCOME TAXES AND INTEREST IN INCOME (LOSS) OF EQUITY METHOD INVESTMENTS	374,606				497,993				643,220				644,659				830,472
Income tax expense	(7,712		)		(1,155		)		(9,527		)		(3,028		)		(25,908		)
Interest in loss of equity method investments	(2,434		)		—				—				—				—
NET INCOME	364,460				496,838				633,693				641,631				804,564
Amounts attributable to noncontrolling interests	—				—				3,365				—				6,181
NET INCOME ATTRIBUTABLE TO AXIS CAPITAL	364,460				496,838				637,058				641,631				810,745
Preferred share dividends	(29,906		)		(30,066		)		(30,066		)		(40,069		)		(40,088		)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	334,554			$	466,772			$	606,992			$	601,562			$	770,657
KEY RATIOS/PER SHARE DATA
Net loss and loss expense ratio	59.8		%		59.8		%		57.1		%		59.0		%		56.5		%
Acquisition cost ratio	20.1		%		19.4		%		18.9		%		19.5		%		19.0		%
General and administrative expense ratio [a]	15.8		%		16.5		%		15.6		%		16.2		%		16.1		%
Combined ratio	95.7		%		95.7		%		91.6		%		94.7		%		91.6		%
Weighted average basic shares outstanding	91,852				99,464				105,683				98,609				104,368
Weighted average diluted shares outstanding	92,579				100,468				106,953				99,629				105,713
Basic earnings per common share		$3.64				$4.69				$5.74				$6.10				$7.38
Diluted earnings per common share		$3.61				$4.65				$5.68				$6.04				$7.29
ROACE [b]	8.4		%		12.0		%		15.6		%		11.5		%		14.8		%
Operating ROACE [b]	7.8		%		7.2		%		11.4		%		7.7		%		10.8		%

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

[b] Annualized for the nine-month periods.

3

AXIS Capital Holdings Limited

CONSOLIDATED SEGMENT DATA

		Quarter ended September 30, 2016												Nine months ended September 30, 2016
		Insurance				Reinsurance				Total				Insurance				Reinsurance				Total
UNDERWRITING REVENUES
Gross premiums written		$	675,430			$	284,532			$	959,962			$	2,112,796			$	2,126,762			$	4,239,558
Net premiums written		433,131				162,300				595,431				1,433,058				1,855,529				3,288,587
Gross premiums earned		668,820				546,006				1,214,826				1,960,592				1,588,179				3,548,771
Ceded premiums expensed		(224,129		)		(56,282		)		(280,411		)		(637,943		)		(127,082		)		(765,025		)
Net premiums earned		444,691				489,724				934,415				1,322,649				1,461,097				2,783,746
Other insurance related income (loss)		39				5,905				5,944				(57		)		4,907				4,850
Total underwriting revenues		444,730				495,629				940,359				1,322,592				1,466,004				2,788,596
UNDERWRITING EXPENSES
Net losses and loss expenses		273,226				259,102				532,328				853,771				809,813				1,663,584
Acquisition costs		61,755				128,055				189,810				184,982				374,588				559,570
Underwriting-related general and administrative expenses		84,588				29,635				114,223				252,652				99,980				352,632
Total underwriting expenses		419,569				416,792				836,361				1,291,405				1,284,381				2,575,786
UNDERWRITING INCOME		$	25,161			$	78,837			$	103,998			$	31,187			$	181,623			$	212,810
KEY RATIOS
Current accident year loss ratio		66.1		%		64.2		%		65.1		%		67.8		%		67.8		%		67.8		%
Prior period reserve development		(4.7		%)		(11.3		%)		(8.1		%)		(3.2		%)		(12.4		%)		(8.0		%)
Net loss and loss expense ratio		61.4		%		52.9		%		57.0		%		64.6		%		55.4		%		59.8		%
Acquisition cost ratio		13.9		%		26.1		%		20.3		%		14.0		%		25.6		%		20.1		%
Underwriting-related general and administrative expense ratio		19.1		%		6.1		%		12.2		%		19.0		%		6.9		%		12.7		%
Corporate expense ratio										3.1		%										3.1		%
Combined ratio		94.4		%		85.1		%		92.6		%		97.6		%		87.9		%		95.7		%

4

AXIS Capital Holdings Limited

GROSS PREMIUMS WRITTEN BY SEGMENT BY LINE OF BUSINESS

																										Nine months ended September 30,
		Q3 2016				Q2 2016				Q1 2016				Q4 2015				Q3 2015				Q3 2014				2016				2015
INSURANCE SEGMENT
Property		$	164,605			$	211,183			$	146,592			$	141,429			$	139,488			$	143,236			$	522,380			$	465,929
Marine		33,677				84,089				73,532				26,071				38,817				41,529				191,298				215,885
Terrorism		9,394				11,650				7,046				7,972				11,192				11,055				28,090				25,737
Aviation		9,684				8,326				19,101				24,887				10,222				17,735				37,111				29,755
Credit and Political Risk		5,423				19,960				8,917				30,327				8,542				3,782				34,299				29,640
Professional Lines		204,926				240,040				145,451				251,641				196,218				196,576				590,417				598,370
Liability		108,447				118,464				83,886				83,941				104,666				94,833				310,797				300,204
Accident and Health		139,274				90,305				168,824				46,259				97,559				46,537				398,404				305,034
TOTAL INSURANCE SEGMENT		675,430				784,017				653,349				612,527				606,704				555,283				2,112,796				1,970,554
REINSURANCE SEGMENT
Catastrophe		46,338				123,507				146,847				8,135				56,693				71,319				316,692				283,562
Property		61,957				45,424				176,174				(2,649		)		67,539				45,030				283,555				307,809
Professional Lines		19,479				126,840				88,774				71,794				45,509				51,007				235,094				204,685
Credit and Surety		36,174				20,816				258,111				11,662				23,390				23,933				315,102				230,958
Motor		13,344				3,638				321,422				1,839				21,359				9,445				338,403				333,245
Liability		91,387				124,003				149,990				86,457				111,361				145,488				365,380				258,862
Agriculture		1,286				87,372				62,657				(6,506		)		(3,303		)		(10,206		)		151,315				139,135
Engineering		13,588				8,342				34,789				13,886				4,397				2,579				56,719				58,163
Marine and Other		979				(3,525		)		67,048				2,657				2,934				2,936				64,502				16,955
TOTAL REINSURANCE SEGMENT		284,532				536,417				1,305,812				187,275				329,879				341,531				2,126,762				1,833,374
CONSOLIDATED TOTAL		$	959,962			$	1,320,434			$	1,959,161			$	799,802			$	936,583			$	896,814			$	4,239,558			$	3,803,928

5

AXIS Capital Holdings Limited

INSURANCE SEGMENT DATA - QUARTERLY

		Q3 2016				Q2 2016				Q1 2016				Q4 2015				Q3 2015				Q3 2014
UNDERWRITING REVENUES
Gross premiums written		$	675,430			$	784,017			$	653,349			$	612,527			$	606,704			$	555,283
Net premiums written		433,131				526,764				473,163				407,236				381,118				363,571
Gross premiums earned		668,820				656,107				635,665				652,349				647,024				643,864
Ceded premiums expensed		(224,129		)		(216,828		)		(196,987		)		(198,498		)		(202,474		)		(182,059		)
Net premiums earned		444,691				439,279				438,678				453,851				444,550				461,805
Other insurance related income (loss)		39				(234		)		137				225				542				—
Total underwriting revenues		444,730				439,045				438,815				454,076				445,092				461,805
UNDERWRITING EXPENSES
Net losses and loss expenses		273,226				306,141				274,405				288,348				283,272				289,207
Acquisition costs		61,755				61,829				61,398				60,716				69,118				71,264
General and administrative expenses		84,588				82,487				85,576				79,734				85,814				85,750
Total underwriting expenses		419,569				450,457				421,379				428,798				438,204				446,221
UNDERWRITING INCOME (LOSS)		$	25,161			$	(11,412	)		$	17,436			$	25,278			$	6,888			$	15,584
KEY RATIOS
Current accident year loss ratio		66.1		%		74.3		%		63.1		%		64.0		%		64.3		%		64.7		%
Prior period reserve development		(4.7		%)		(4.6		%)		(0.5		%)		(0.5		%)		(0.6		%)		(2.1		%)
Net loss and loss expense ratio		61.4		%		69.7		%		62.6		%		63.5		%		63.7		%		62.6		%
Acquisition cost ratio		13.9		%		14.1		%		14.0		%		13.4		%		15.5		%		15.4		%
General and administrative expense ratio		19.1		%		18.7		%		19.5		%		17.6		%		19.4		%		18.6		%
Combined ratio		94.4		%		102.5		%		96.1		%		94.5		%		98.6		%		96.6		%

6

AXIS Capital Holdings Limited

REINSURANCE SEGMENT DATA - QUARTERLY

		Q3 2016				Q2 2016				Q1 2016				Q4 2015				Q3 2015				Q3 2014
UNDERWRITING REVENUES
Gross premiums written		$	284,532			$	536,417			$	1,305,812			$	187,275			$	329,879			$	341,531
Net premiums written		162,300				480,586				1,212,643				188,122				296,099				323,652
Gross premiums earned		546,006				541,615				500,557				494,183				501,332				516,713
Ceded premiums expensed		(56,282		)		(33,904		)		(36,895		)		(26,222		)		(26,541		)		(12,380		)
Net premiums earned		489,724				507,711				463,662				467,961				474,791				504,333
Other insurance related income (loss)		5,905				(658		)		(340		)		(15,497		)		616				7,702
Total underwriting revenues		495,629				507,053				463,322				452,464				475,407				512,035
UNDERWRITING EXPENSES
Net losses and loss expenses		259,102				326,153				224,557				234,983				277,115				262,857
Acquisition costs		128,055				127,296				119,237				119,848				113,626				114,686
General and administrative expenses		29,635				32,332				38,013				34,553				35,309				36,612
Total underwriting expenses		416,792				485,781				381,807				389,384				426,050				414,155
UNDERWRITING INCOME		$	78,837			$	21,272			$	81,515			$	63,080			$	49,357			$	97,880
KEY RATIOS
Current accident year loss ratio		64.2		%		75.6		%		63.1		%		66.2		%		67.4		%		63.0		%
Prior period reserve development		(11.3		%)		(11.4		%)		(14.7		%)		(16.0		%)		(9.0		%)		(10.9		%)
Net loss and loss expense ratio		52.9		%		64.2		%		48.4		%		50.2		%		58.4		%		52.1		%
Acquisition cost ratio		26.1		%		25.1		%		25.7		%		25.6		%		23.9		%		22.7		%
General and administrative expense ratio		6.1		%		6.4		%		8.2		%		7.4		%		7.4		%		7.3		%
Combined ratio		85.1		%		95.7		%		82.3		%		83.2		%		89.7		%		82.1		%

7

AXIS Capital Holdings Limited

REINSURANCE SEGMENT - STRATEGIC CAPITAL PARTNERS

		Quarter ended September 30,								Nine months ended September 30,
TOTAL MANAGED PREMIUMS [a]		2016				2015				2016				2015
Total Managed Premiums		$	284,532			$	329,879			$	2,126,762			$	1,833,374
Premiums ceded to Harrington Re		101,689				—				101,689				—
Premiums ceded to Other Strategic Capital Partners		20,543				33,780				169,544				106,189
Net premiums written		$	162,300			$	296,099			$	1,855,529			$	1,727,185
FEE INCOME FROM STRATEGIC CAPITAL PARTNERS [b]
Fee income		$	8,072			$	2,074			$	15,007			$	6,097

[a] Total managed premiums represented gross premiums written by the AXIS Reinsurance segment of $284,532 and $329,879 for the three months ended September 30, 2016 and 2015, respectively, and $2,126,762 and $1,833,374 for the nine months ended September 30, 2016 and 2015, respectively, including premiums written on behalf of our strategic capital partners.

[b] Fee income from strategic capital partners represents services fees and reimbursement of expenses due to the AXIS Reinsurance segment from its strategic capital partners. Fee income from strategic capital partners is a "non-GAAP financial measure" as defined in SEC Regulation G. Fee income from strategic capital partners is included in other insurance related income and in general and administrative expenses for the three months ended September 30, 2016. For prior periods fee income from strategic capital partners is included in acquisition costs.

8

AXIS Capital Holdings Limited

NET INVESTMENT INCOME - QUARTERLY

																										Nine months ended September 30,
		Q3 2016				Q2 2016				Q1 2016				Q4 2015				Q3 2015				Q3 2014				2016				2015
Fixed maturities		$	75,827			$	77,621			$	75,975			$	74,659			$	75,980			$	74,996			$	229,423			$	220,066
Other investments		38,248				14,401				(26,878		)		2,531				(27,421		)		(3,384		)		25,770				17,616
Equity securities		4,633				3,065				5,145				3,494				3,445				2,022				12,843				7,795
Mortgage loans		2,191				1,807				1,684				1,085				482				—				5,683				776
Cash and cash equivalents		3,768				1,868				1,434				4,802				993				2,081				7,071				3,770
Short-term investments		337				165				206				163				83				141				708				277
Gross investment income		125,004				98,927				57,566				86,734				53,562				75,856				281,498				250,300
Investment expenses		(8,081		)		(7,197		)		(8,402		)		(7,734		)		(7,877		)		(9,294		)		(23,680		)		(23,964		)
Net investment income		$	116,923			$	91,730			$	49,164			$	79,000			$	45,685			$	66,562			$	257,818			$	226,336

9

AXIS Capital Holdings Limited

CONSOLIDATED BALANCE SHEETS

		September 30,				June 30,				March 31,				December 31,				September 30,				September 30,
		2016				2016				2016				2015				2015				2014
ASSETS
Investments:
Fixed maturities, available for sale, at fair value		$	11,566,860			$	11,563,216			$	11,838,068			$	11,719,749			$	12,139,595			$	12,444,684
Equity securities, available for sale, at fair value		644,344				626,371				637,325				597,998				689,157				629,502
Mortgage loans, held for investment, at amortized cost and fair value		332,753				327,315				267,589				206,277				129,431				—
Other investments, at fair value		847,262				865,406				859,639				816,756				800,319				946,836
Equity method investments		111,295				113,729				11,022				10,932				10,805				9,023
Short-term investments, at amortized cost and fair value		39,877				41,086				29,540				34,406				7,152				114,428
Total investments		13,542,391				13,537,123				13,643,183				13,386,118				13,776,459				14,144,473
Cash and cash equivalents		1,077,263				993,472				952,311				1,174,751				1,180,473				1,407,811
Accrued interest receivable		71,096				71,770				71,475				73,729				75,375				91,777
Insurance and reinsurance premium balances receivable		2,694,976				2,885,606				2,690,400				1,967,535				2,169,581				2,112,906
Reinsurance recoverable on paid and unpaid losses		2,336,741				2,270,776				2,116,090				2,096,104				2,036,099				1,947,529
Deferred acquisition costs		545,618				624,638				646,919				471,782				544,178				556,723
Prepaid reinsurance premiums		582,551				498,299				436,382				396,201				416,451				351,488
Receivable for investments sold		2,285				3,569				1,614				26,478				7,220				6,472
Goodwill and intangible assets		85,501				85,954				86,446				86,858				87,329				88,740
Other assets		283,969				278,233				333,370				302,335				264,176				257,128
TOTAL ASSETS		$	21,222,391			$	21,249,440			$	20,978,190			$	19,981,891			$	20,557,341			$	20,965,047
LIABILITIES
Reserve for losses and loss expenses		$	9,874,807			$	9,782,304			$	9,716,487			$	9,646,285			$	9,703,583			$	9,751,903
Unearned premiums		3,453,655				3,708,603				3,586,307				2,760,889				3,107,348				3,142,055
Insurance and reinsurance balances payable		461,519				416,017				344,181				356,417				301,830				244,815
Senior notes		992,633				992,361				992,091				991,825				991,562				1,490,498
Payable for investments purchased		141,245				144,040				135,647				9,356				303,916				189,684
Other liabilities		272,874				241,932				253,218				350,237				322,736				265,968
TOTAL LIABILITIES		15,196,733				15,285,257				15,027,931				14,115,009				14,730,975				15,084,923
SHAREHOLDERS’ EQUITY
Preferred shares		625,000				625,000				625,000				627,843				627,843				627,843
Common shares		2,206				2,206				2,206				2,202				2,202				2,190
Additional paid-in capital		2,307,866				2,302,557				2,296,533				2,241,388				2,230,278				2,273,110
Accumulated other comprehensive income (loss)		98,505				63,089				17,646				(188,465		)		(117,593		)		22,935
Retained earnings		6,430,573				6,285,803				6,198,932				6,194,353				6,093,897				5,581,942
Treasury shares, at cost		(3,438,492		)		(3,314,472		)		(3,190,058		)		(3,010,439		)		(3,010,261		)		(2,689,531		)
TOTAL SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO AXIS CAPITAL		6,025,658				5,964,183				5,950,259				5,866,882				5,826,366				5,818,489
Noncontrolling interests		—				—				—				—				—				61,635
TOTAL SHAREHOLDERS' EQUITY		6,025,658				5,964,183				5,950,259				5,866,882				5,826,366				5,880,124
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	21,222,391			$	21,249,440			$	20,978,190			$	19,981,891			$	20,557,341			$	20,965,047
Basic common shares outstanding		88,439				90,654				92,903				96,066				96,049				100,827
Diluted common shares outstanding		90,363				92,667				95,031				96,883				98,213				104,073
Book value per common share [a]			$61.07				$58.90				$57.32				$55.32				$54.91				$51.48
Diluted book value per common share [a]		59.77				57.62				56.04				54.08				53.68				49.88
Diluted tangible book value per common share [a]			$58.82				$56.69				$55.13				$53.18				$52.78				$49.02
Debt to total capital [b]		14.1		%		14.3		%		14.3		%		14.5		%		14.5		%		20.4		%
Debt and preferred equity to total capital		23.0		%		23.2		%		23.3		%		23.6		%		23.8		%		29.0		%

[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 26 '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.

10

AXIS Capital Holdings Limited

CASH AND INVESTED ASSETS PORTFOLIO

At September 30, 2016

		Cost or Amortized Cost				Unrealized Gains				Unrealized Losses				Fair Value				Percentage
Fixed Maturities, available for sale
U.S. government and agency		$	1,542,943			$	22,349			$	(2,415	)		$	1,562,877			10.8	%
Non-U.S. government		620,601				4,799				(43,344		)		582,056				4.0	%
Corporate debt		4,516,290				87,184				(34,974		)		4,568,500				31.4	%
Agency RMBS		2,473,832				49,661				(762		)		2,522,731				17.3	%
CMBS		877,732				18,546				(2,003		)		894,275				6.1	%
Non-Agency RMBS		71,842				1,636				(1,648		)		71,830				0.5	%
ABS		1,234,292				4,028				(2,724		)		1,235,596				8.5	%
Municipals		124,867				4,215				(87		)		128,995				0.9	%
Total fixed maturities		11,462,399				192,418				(87,957		)		11,566,860				79.5	%
Equity securities, available for sale
Common stocks		379				38				(348		)		69				—	%
Exchange traded funds		463,655				41,611				(1,060		)		504,206				3.5	%
Bond mutual funds		136,570				3,499				—				140,069				0.9	%
Total equity securities		600,604				45,148				(1,408		)		644,344				4.4	%
Total available for sale investments		$	12,063,003			$	237,566			$	(89,365	)		12,211,204				83.9	%
Mortgage loans, held for investment														332,753				2.3	%
Other investments (see below)														847,262				5.8	%
Equity method investments														111,295				0.8	%
Short-term investments														39,877				0.3	%
Total investments														13,542,391				93.1	%
Cash and cash equivalents [a]														1,077,263				7.4	%
Accrued interest receivable														71,096				0.5	%
Net receivable/(payable) for investments sold (purchased)														(138,960		)		(1.0	%)
Total cash and invested assets														$	14,551,790			100.0	%
														Fair Value				Percentage
Other Investments:
Long/short equity funds														$	139,460			16.5	%
Multi-strategy funds														281,153				33.2	%
Event-driven funds														94,012				11.1	%
Direct lending funds														125,002				14.8	%
Real estate funds														11,782				1.4	%
Private equity funds														89,170				10.5	%
Other privately held investments														42,900				5.1	%
Collateralized loan obligations - equity tranches														63,783				7.4	%
Total														$	847,262			100.0	%

[a] Includes $229 million of restricted cash and cash equivalents.

11

AXIS Capital Holdings Limited

CASH AND INVESTED ASSETS COMPOSITION - QUARTERLY

		Q3 2016			Q2 2016			Q1 2016			Q4 2015			Q3 2015			Q3 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		10.8	%		10.5	%		10.7	%		11.3	%		12.7	%		9.8	%
Non-U.S. government		4.0	%		4.4	%		5.0	%		5.0	%		5.2	%		7.4	%
Corporate debt		31.4	%		30.4	%		30.4	%		29.7	%		30.4	%		27.4	%
MBS:
Agency RMBS		17.3	%		16.5	%		16.7	%		15.4	%		15.0	%		13.7	%
CMBS		6.1	%		7.5	%		7.6	%		7.4	%		7.3	%		6.2	%
Non-agency RMBS		0.5	%		0.6	%		0.7	%		0.7	%		0.7	%		0.5	%
ABS		8.5	%		9.0	%		9.2	%		9.4	%		9.8	%		9.3	%
Municipals		0.9	%		1.1	%		1.1	%		1.1	%		1.2	%		6.1	%
Total Fixed Maturities		79.5	%		80.0	%		81.4	%		80.0	%		82.3	%		80.4	%
Equity securities		4.4	%		4.3	%		4.4	%		4.1	%		4.7	%		4.0	%
Mortgage loans		2.3	%		2.3	%		1.8	%		1.4	%		0.9	%		—	%
Other investments		5.8	%		6.0	%		5.9	%		5.6	%		5.4	%		6.1	%
Equity method investments		0.8	%		0.8	%		0.1	%		0.1	%		0.1	%		0.1	%
Short-term investments		0.3	%		0.2	%		0.3	%		0.2	%		0.1	%		0.9	%
Total Investments		93.1	%		93.6	%		93.9	%		91.4	%		93.5	%		91.5	%
Cash and cash equivalents		7.4	%		6.9	%		6.6	%		8.0	%		8.0	%		9.1	%
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	%)		(1.0	%)		(1.0	%)		0.1	%		(2.0	%)		(1.2	%)
Total Cash and Invested Assets		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
CREDIT QUALITY OF FIXED MATURITIES		Fair Value %			Fair Value %			Fair Value %			Fair Value %			Fair Value %			Fair Value %
U.S. government and agency		13.5	%		13.1	%		13.3	%		14.1	%		15.4	%		12.2	%
AAA		37.7	%		37.9	%		37.9	%		36.4	%		35.0	%		35.5	%
AA		10.1	%		10.5	%		11.3	%		10.9	%		10.9	%		12.3	%
A		15.3	%		16.0	%		16.8	%		17.6	%		18.7	%		19.1	%
BBB		13.9	%		13.2	%		11.7	%		12.3	%		11.6	%		12.8	%
Below BBB		9.5	%		9.3	%		9.0	%		8.7	%		8.4	%		8.1	%
Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
MATURITY PROFILE OF FIXED MATURITIES		Fair Value %			Fair Value %			Fair Value %			Fair Value %			Fair Value %			Fair Value %
Within one year		3.0	%		2.8	%		2.4	%		2.5	%		3.5	%		4.5	%
From one to five years		32.9	%		32.6	%		33.7	%		35.3	%		36.5	%		42.3	%
From five to ten years		20.2	%		19.8	%		19.1	%		18.6	%		17.7	%		14.4	%
Above ten years		3.1	%		2.9	%		2.8	%		2.6	%		2.5	%		2.0	%
Asset-backed and mortgage-backed securities		40.8	%		41.9	%		42.0	%		41.0	%		39.8	%		36.8	%
Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
CASH AND INVESTED ASSETS PORTFOLIO CHARACTERISTICS
Book yield of fixed maturities		2.6	%		2.6	%		2.5	%		2.5	%		2.5	%		2.5	%
Yield to maturity of fixed maturities		2.3	%		2.3	%		2.5	%		2.9	%		2.5	%		2.3	%
Average duration of fixed maturities (inclusive of duration hedges)		3.2 yrs			3.1 yrs			3.1 yrs			3.3 yrs			3.1 yrs			2.9 yrs
Average credit quality		AA-			AA-			AA-			AA-			AA-			AA-

12

AXIS Capital Holdings Limited

GEOGRAPHIC DISTRIBUTION OF FIXED MATURITIES AND EQUITIES

At September 30, 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:
Netherlands	$	—			$	22,483			$	74,955			$	—			$	97,438			$	—			$	—			$	—			$	97,438			$	—			$	97,438
Germany	1,500				2,260				25,559				17,449				45,268				—				—				—				46,768				—				46,768
France	—				586				33,198				—				33,784				—				—				—				33,784				898				34,682
Ireland	—				10,786				13,015				—				23,801				—				—				4,204				28,005				—				28,005
Luxembourg	—				148				27,238				—				27,386				—				—				—				27,386				—				27,386
Belgium	—				—				12,191				—				12,191				—				—				—				12,191				—				12,191
Supranational [a]	10,308				—				—				—				—				—				—				—				10,308				—				10,308
Italy	—				—				6,925				—				6,925				—				—				—				6,925				—				6,925
Spain	—				—				5,159				—				5,159				—				—				—				5,159				—				5,159
Austria	—				—				1,294				—				1,294				—				—				—				1,294				—				1,294
Other [b]	—				—				—				—				—				—				—				—				—				58,816				58,816
Total eurozone	11,808				36,263				199,534				17,449				253,246				—				—				4,204				269,258				59,714				328,972
Other concentrations:
United Kingdom	243,709				28,720				140,749				—				169,469				—				14,017				—				427,195				15,314				442,509
Canada	124,289				131,344				91,507				31,185				254,036				—				—				—				378,325				—				378,325
Australia	83,196				71,490				20,123				—				91,613				—				—				214				175,023				—				175,023
Japan	—				56,186				4,192				—				60,378				—				—				—				60,378				22,924				83,302
Mexico	20,300				—				3,029				1,377				4,406				—				—				—				24,706				—				24,706
Other	98,754				6,706				90,212				—				96,918				—				—				—				195,672				30,906			[c]	226,578
Total other concentrations	570,248				294,446				349,812				32,562				676,820				—				14,017				214				1,261,299				69,144				1,330,443
Total Non-U.S. concentrations	582,056				330,709				549,346				50,011				930,066				—				14,017				4,418				1,530,557				128,858				1,659,415
United States	1,522,245			[d]	1,327,696				2,310,738				—				3,638,434				2,522,731				952,088				1,231,178				9,866,676				515,486			[e]	10,382,162
United States agencies	40,632				—				—				—				—				—				—				—				40,632				—				40,632
United States local governments	128,995				—				—				—				—				—				—				—				128,995				—				128,995
Total U.S. concentrations	1,691,872				1,327,696				2,310,738				—				3,638,434				2,522,731				952,088				1,231,178				10,036,303				515,486				10,551,789
Totals	$	2,273,928			$	1,658,405			$	2,860,084			$	50,011			$	4,568,500			$	2,522,731			$	966,105			$	1,235,596			$	11,566,860			$	644,344			$	12,211,204

[a] Represents holdings of the European Investment Bank.

[b] Represents holdings in two exchange-traded funds ("ETFs"). The primary countries of risk for these underlying securities are countries within the eurozone.

[c] Represents ETFs 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 ETFs 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.

13

AXIS Capital Holdings Limited

CORPORATE DEBT COMPOSITION

At September 30, 2016

		Fair Value				% of Total Corporate Debt			% of Total Cash and Invested Assets
Composition by sector - Investment grade
Financial institutions:
U.S. banking		$	891,603			19.5	%		6.1	%
Foreign banking [a]		260,506				5.7	%		1.8	%
Corporate/commercial finance		252,083				5.5	%		1.7	%
Insurance		114,258				2.5	%		0.8	%
Investment brokerage		26,051				0.6	%		0.2	%
Total financial institutions		1,544,501				33.8	%		10.6	%
Consumer non-cyclicals		511,858				11.2	%		3.5	%
Consumer cyclical		342,040				7.5	%		2.4	%
Communications		263,303				5.8	%		1.8	%
Technology		215,390				4.7	%		1.5	%
Energy		193,926				4.2	%		1.3	%
Industrials		139,129				3.0	%		1.0	%
Utilities		130,709				2.9	%		0.9	%
Transportation		122,477				2.7	%		0.8	%
Non-U.S. government guaranteed [b]		50,011				1.1	%		0.3	%
Total investment grade		3,513,344				76.9	%		24.1	%
Total non-investment grade		1,055,156				23.1	%		7.3	%
Total corporate debt		$	4,568,500			100.0	%		31.4	%

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

[b] Includes $17 million from Germany. No other corporate debt guaranteed by a eurozone country.

14

AXIS Capital Holdings Limited

INVESTMENT PORTFOLIO

TEN LARGEST CORPORATE DEBT HOLDINGS

At September 30, 2016

		Amortized Cost				Net Unrealized Gain (Loss)				Fair Value				% of Total Fixed  Maturities
ISSUER [a]
WELLS FARGO & COMPANY		$	122,669			$	1,274			$	123,943			1.1	%
JP MORGAN CHASE & CO		108,879				2,407				111,286				1.0	%
MORGAN STANLEY		108,116				1,397				109,513				0.9	%
GOLDMAN SACHS GROUP		105,025				1,542				106,567				0.9	%
FORD MOTOR COMPANY		69,467				(197		)		69,270				0.6	%
BANK OF AMERICA CORP		67,413				1,521				68,934				0.6	%
AT&T INC		62,071				1,702				63,773				0.6	%
ANHEUSER-BUSCH INBEV		59,640				1,136				60,776				0.5	%
VERIZON COMMUNICATIONS INC		57,649				1,341				58,990				0.5	%
AMERICAN EXPRESS COMPANY		48,050				641				48,691				0.4	%

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

15

AXIS Capital Holdings Limited

MORTGAGE-BACKED AND ASSET-BACKED SECURITIES COMPOSITION

At September 30, 2016

		Agencies				AAA				AA				A				BBB				Non-Investment Grade				Total
Residential MBS		$	2,522,731			$	23,062			$	3,456			$	13,209			$	10,467			$	21,636			$	2,594,561
Commercial MBS		—				617,529				149,096				106,119				21,276				255				894,275
ABS		—				819,864				320,274				59,781				26,730				8,947				1,235,596
Total mortgage-backed and asset-backed securities		$	2,522,731			$	1,460,455			$	472,826			$	179,109			$	58,473			$	30,838			$	4,724,432
Percentage of total		53.4		%		30.9		%		10.0		%		3.8		%		1.2		%		0.7		%		100.0		%

16

AXIS Capital Holdings Limited

REINSURANCE RECOVERABLE ANALYSIS

		Q3 2016				Q2 2016				Q1 2016				Q4 2015				Q3 2015				Q3 2014
Reinsurance recoverable on paid losses and loss expenses:
Insurance		$	32,853			$	32,499			$	36,414			$	40,633			$	28,812			$	31,460
Reinsurance		27,096				16,257				8,275				24,162				—				1,399
Total		$	59,949			$	48,756			$	44,689			$	64,795			$	28,812			$	32,859
Reinsurance recoverable on unpaid losses and loss expenses: OSLR
Insurance		$	712,987			$	712,844			$	667,601			$	664,592			$	660,861			$	608,304
Reinsurance		31,789				31,324				27,939				11,654				8,039				514
Total		$	744,776			$	744,168			$	695,540			$	676,246			$	668,900			$	608,818
Reinsurance recoverable on unpaid losses and loss expenses: IBNR
Insurance		$	1,523,537			$	1,480,265			$	1,384,417			$	1,349,242			$	1,323,350			$	1,318,833
Reinsurance		28,700				17,880				12,002				24,063				32,457				5,244
Total		$	1,552,237			$	1,498,145			$	1,396,419			$	1,373,305			$	1,355,807			$	1,324,077
Provision against reinsurance recoverables:
Insurance		$	(20,087	)		$	(20,233	)		$	(20,558	)		$	(18,242	)		$	(17,420	)		$	(18,225	)
Reinsurance		(134		)		(60		)		—				—				—				—
Total		$	(20,221	)		$	(20,293	)		$	(20,558	)		$	(18,242	)		$	(17,420	)		$	(18,225	)
Net reinsurance recoverables:
Insurance		$	2,249,290			$	2,205,375			$	2,067,874			$	2,036,225			$	1,995,603			$	1,940,372
Reinsurance		87,451				65,401				48,216				59,879				40,496				7,157
Total		$	2,336,741			$	2,270,776			$	2,116,090			$	2,096,104			$	2,036,099			$	1,947,529

17

AXIS Capital Holdings Limited

REINSURANCE RECOVERABLE ANALYSIS

At September 30, 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		$	1,610,272			$	(35,695	)		$	1,574,577			71.5%		26.1%		$	(14,735	)		0.9%		$	1,595,537
Other reinsurers balances > $20 million		412,662				(49,343		)		363,319				16.5%		6.0%		(3,138		)		0.8%		409,524
Other reinsurers balances < $20 million		334,028				(70,936		)		263,092				12.0%		4.4%		(2,348		)		0.7%		331,680
Total		$	2,356,962			$	(155,974	)		$	2,200,988			100.0%		36.5%		$	(20,221	)		0.9%		$	2,336,741

At September 30, 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		13.3%		4.9%
Lloyd's of London		10.6%		3.9%
Transatlantic Reinsurance Company		9.7%		3.5%
Partner Reinsurance Company of the US		9.4%		3.4%
Swiss Reinsurance Company Ltd.		7.4%		2.7%
Berkley Insurance Company		5.5%		2.0%
Hannover Ruckversicherungs Aktiengesellschaft		4.7%		1.7%
Everest Reinsurance Company		4.5%		1.6%
Ace Property & Casualty Insurance		3.4%		1.2%
XL Reinsurance America Inc		3.0%		1.2%
		71.5%		26.1%

18

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

		Quarter ended September 30, 2016												Nine months ended September 30, 2016
		Gross				Recoveries				Net				Gross				Recoveries				Net
Reserve for unpaid losses and loss expenses
Beginning of period		$	9,782,304			$	(2,222,020	)		$	7,560,284			$	9,646,285			$	(2,031,309	)		$	7,614,976
Incurred		690,222				(157,894		)		532,328				2,069,540				(405,956		)		1,663,584
Paid		(596,666		)		108,088				(488,578		)		(1,883,353		)		315,457				(1,567,896		)
Foreign exchange and other		(1,053		)		(4,966		)		(6,019		)		42,335				(154,984		)		(112,649		)
End of period [a]		$	9,874,807			$	(2,276,792	)		$	7,598,015			$	9,874,807			$	(2,276,792	)		$	7,598,015

[a] At September 30, 2016, the gross reserve for losses and loss expenses included IBNR of $6,533 million, or 66%, of total gross reserves for loss and loss expenses. At December 31, 2015, the comparable amount was $6,393 million, or 66%.

19

AXIS Capital Holdings Limited

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

		Quarter ended September 30, 2016												Nine months ended September 30, 2016
		Insurance				Reinsurance				Total				Insurance				Reinsurance				Total
Gross losses paid		$	365,160			$	231,506			$	596,666			$	1,052,576			$	830,777			$	1,883,353
Reinsurance recoveries		(102,625		)		(5,463		)		(108,088		)		(292,609		)		(22,848		)		(315,457		)
Net losses paid		262,535				226,043				488,578				759,967				807,929				1,567,896
Change in:
Reported case reserves		(5,561		)		20,139				14,578				80,752				(43,944		)		36,808
IBNR		55,505				23,473				78,978				80,331				69,048				149,379
Reinsurance recoveries on unpaid loss and loss expense reserves		(39,253		)		(10,553		)		(49,806		)		(67,279		)		(23,220		)		(90,499		)
Total net incurred losses and loss expenses		$	273,226			$	259,102			$	532,328			$	853,771			$	809,813			$	1,663,584
Gross reserve for losses and loss expenses		$	5,430,238			$	4,444,569			$	9,874,807			$	5,430,238			$	4,444,569			$	9,874,807
Net favorable prior year reserve development		$	20,688			$	55,331			$	76,019			$	43,181			$	180,950			$	224,131
Key Ratios
Net paid to net incurred percentage		96.1		%		87.2		%		91.8		%		89.0		%		99.8		%		94.2		%
Net paid losses / Net premiums earned		59.0		%		46.2		%		52.3		%		57.5		%		55.3		%		56.3		%
Change in net loss and loss expense reserves / Net premiums earned		2.4		%		6.7		%		4.7		%		7.1		%		0.1		%		3.5		%
Net loss and loss expense ratio		61.4		%		52.9		%		57.0		%		64.6		%		55.4		%		59.8		%

20

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

INSURANCE - QUARTERLY

		Q3 2016				Q2 2016				Q1 2016				Q4 2015				Q3 2015				Q3 2014
Gross losses paid		$	365,160			$	348,028			$	339,388			$	378,309			$	388,142			$	299,526
Reinsurance recoveries		(102,625		)		(102,793		)		(87,190		)		(112,628		)		(121,560		)		(108,012		)
Net losses paid		262,535				245,235				252,198				265,681				266,582				191,514
Change in:
Reported case reserves		(5,561		)		80,645				5,668				(19,093		)		(29,415		)		(153		)
IBNR		55,505				(22,023		)		46,851				70,623				46,941				92,959
Reinsurance recoveries on unpaid loss and loss expense reserves		(39,253		)		2,284				(30,312		)		(28,863		)		(836		)		4,887
Total net incurred losses and loss expenses		$	273,226			$	306,141			$	274,405			$	288,348			$	283,272			$	289,207
Gross reserve for losses and loss expenses		$	5,430,238			$	5,384,944			$	5,364,671			$	5,291,218			$	5,243,445			$	5,117,053
Net favorable prior year reserve development		$	20,688			$	20,066			$	2,427			$	2,222			$	2,444			$	9,488
Key Ratios
Net paid to net incurred percentage		96.1		%		80.1		%		91.9		%		92.1		%		94.1		%		66.2		%
Net paid losses/Net premiums earned		59.0		%		55.8		%		57.5		%		58.5		%		60.0		%		41.5		%
Change in net loss and loss expense reserves / Net premiums earned		2.4		%		13.9		%		5.1		%		5.0		%		3.7		%		21.1		%
Net loss and loss expense ratio		61.4		%		69.7		%		62.6		%		63.5		%		63.7		%		62.6		%

21

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

REINSURANCE - QUARTERLY

		Q3 2016				Q2 2016				Q1 2016				Q4 2015				Q3 2015				Q3 2014
Gross losses paid		$	231,506			$	286,391			$	312,880			$	323,896			$	212,859			$	226,319
Reinsurance recoveries		(5,463		)		(8,579		)		(8,806		)		(16,584		)		(1,664		)		(475		)
Net losses paid		226,043				277,812				304,074				307,312				211,195				225,844
Change in:
Reported case reserves		20,139				11,968				(76,050		)		3,578				22,545				1,038
IBNR		23,473				46,615				(1,043		)		(80,796		)		40,444				39,008
Reinsurance recoveries on unpaid loss and loss expense reserves		(10,553		)		(10,242		)		(2,424		)		4,889				2,931				(3,033		)
Total net incurred losses and loss expenses		$	259,102			$	326,153			$	224,557			$	234,983			$	277,115			$	262,857
Gross reserve for losses and loss expenses		$	4,444,569			$	4,397,360			$	4,351,816			$	4,355,067			$	4,460,138			$	4,634,850
Net favorable prior year reserve development		$	55,331			$	57,653			$	67,967			$	75,022			$	42,681			$	55,050
Key Ratios
Net paid to net incurred percentage		87.2		%		85.2		%		135.4		%		130.8		%		76.2		%		85.9		%
Net paid losses / Net premiums earned		46.2		%		54.7		%		65.6		%		65.7		%		44.5		%		44.8		%
Change in net loss and loss expense reserves / Net premiums earned		6.7		%		9.5		%		(17.2		%)		(15.5		%)		13.9		%		7.3		%
Net loss and loss expense ratio		52.9		%		64.2		%		48.4		%		50.2		%		58.4		%		52.1		%

22

AXIS Capital Holdings Limited

NET PROBABLE MAXIMUM LOSSES TO CERTAIN PEAK INDUSTRY CATASTROPHE EXPOSURES - AS OF OCTOBER 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		$	529			$	607			$	879
Northeast		U.S. Hurricane		40				112				255
Mid-Atlantic		U.S. Hurricane		104				270				580
Gulf of Mexico		U.S. Hurricane		339				427				579
California		Earthquake		367				524				636
Europe		Windstorm		161				227				316
Japan		Earthquake		140				241				402
Japan		Windstorm		44				74				129

The above table shows our Probable Maximum Loss (“PML”) to a single natural peril catastrophe event within certain defined single zones which correspond to peak industry catastrophe exposures at October 1, 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 $0.6 billion. According to our modeling, there is a one percent chance that on an annual basis, our losses incurred from a Southeast hurricane event could be in excess of $0.6 billion. Conversely, there is a 99% chance that on an annual basis, the loss from a Southeast hurricane will fall below $0.6 billion.

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

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

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

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

23

AXIS Capital Holdings Limited

EARNINGS PER COMMON SHARE INFORMATION - AS REPORTED, GAAP

		Quarter ended September 30,								Nine months ended September 30,
		2016				2015				2016				2015
Net income available to common shareholders		$	176,644			$	247,620			$	334,554			$	466,772
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Weighted average shares outstanding - basic		89,621				98,226				91,852				99,464
Dilutive share equivalents:
Stock compensation plans		730				898				727				1,004
Weighted average shares outstanding - diluted		90,351				99,124				92,579				100,468
EARNINGS PER COMMON SHARE
Basic			$1.97				$2.52				$3.64				$4.69
Diluted			$1.96				$2.50				$3.61				$4.65

24

AXIS Capital Holdings Limited

EARNINGS PER COMMON SHARE INFORMATION AND COMMON SHARES ROLLFOWARD - QUARTERLY

		Q3 2016				Q2 2016				Q1 2016				Q4 2015				Q3 2015				Q3 2014
Net income available to common shareholders		$	176,644			$	119,491			$	38,417			$	134,787			$	247,620			$	279,104
COMMON SHARES OUTSTANDING
Common shares - at beginning of period		90,654				92,903				96,066				96,049				100,284				103,906
Shares issued, including those sourced from treasury		37				88				747				25				22				90
Shares repurchased for treasury		(2,252		)		(2,337		)		(3,910		)		(8		)		(4,257		)		(3,169		)
Common shares - at end of period		88,439				90,654				92,903				96,066				96,049				100,827
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Weighted average shares outstanding - basic		89,621				91,926				94,035				96,072				98,226				102,945
Dilutive share equivalents:
Stock compensation plans		730				632				818				1,076				898				1,302
Weighted average shares outstanding - diluted		90,351				92,558				94,853				97,148				99,124				104,247
EARNINGS PER COMMON SHARE
Basic			$1.97				$1.30				$0.41				$1.40				$2.52				$2.71
Diluted			$1.96				$1.29				$0.41				$1.39				$2.50				$2.68

25

AXIS Capital Holdings Limited

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

		At September 30, 2016
			Common Shareholders’ Equity				Outstanding Common Shares net of Treasury Shares			Per share
Closing stock price											$54.33
Book value per common share			$	5,400,658			88,439				$61.07
Dilutive securities: [b]
Restricted stocks							4			(0.01		)
Restricted units							1,920			(1.29		)
Diluted book value per common share			$	5,400,658			90,363				$59.77
		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 units							1,868			(1.06		)
Diluted book value per common share			$	5,239,039			96,883				$54.08

[a] Under this method unvested restricted stocks and units are 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.

26

AXIS Capital Holdings Limited

OPERATING INCOME [a]

OPERATING INCOME		Quarter ended September 30,								Nine months ended September 30,
		2016				2015				2016				2015
Net income available to common shareholders		$	176,644			$	247,620			$	334,554			$	466,772
Adjustment for:
Net realized investment (gains) losses		(5,205		)		69,957				40,295				123,618
Associated tax impact		2,479				(2,060		)		2,372				(4,176		)
Foreign exchange gains		(13,795		)		(28,088		)		(69,781		)		(69,200		)
Associated tax impact		566				678				2,010				744
Termination fee received		—				(280,000		)		—				(280,000		)
Associated tax impact		—				—				—				—
Reorganization and related expenses		—				45,867				—				45,867
Associated tax impact		—				(2,943		)		—				(2,943		)
Operating income		$	160,689			$	51,031			$	309,450			$	280,682
Net earnings per share - diluted		$	1.96			$	2.50			$	3.61			$	4.65
Adjustment for:
Net realized investment (gains) losses		(0.06		)		0.71				0.44				1.23
Associated tax impact		0.03				(0.03		)		0.02				(0.04		)
Foreign exchange gains		(0.15		)		(0.28		)		(0.75		)		(0.69		)
Associated tax impact		—				—				0.02				—
Termination fee received		—				(2.82		)		—				(2.79		)
Associated tax impact		—				—				—				—
Reorganization and related expenses		—				0.46				—				0.46
Associated tax impact		—				(0.03		)		—				(0.03		)
Operating income per share - diluted		$	1.78			$	0.51			$	3.34			$	2.79
Weighted average common shares and common share equivalents - diluted		90,351				99,124				92,579				100,468
Average common shareholders' equity		$	5,369,921			$	5,259,619			$	5,319,849			$	5,195,901
Annualized return on average common equity		13.2		%		18.8		%		8.4		%		12.0		%
Annualized operating return on average common equity		12.0		%		3.9		%		7.8		%		7.2		%

[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.

27

AXIS Capital Holdings Limited

DILUTED TANGIBLE BOOK VALUE PER COMMON SHARE [a]

DILUTED TANGIBLE BOOK VALUE PER COMMON SHARE - TREASURY STOCK METHOD [b]
	September 30,				June 30,				March 31,				December 31,				September 30,				September 30,
	2016				2016				2016				2015				2015				2014
Common shareholders' equity	$	5,400,658			$	5,339,183			$	5,325,259			$	5,239,039			$	5,198,523			$	5,190,646
Less: goodwill and intangible assets	(85,501		)		(85,954		)		(86,446		)		(86,858		)		(87,329		)		(88,740		)
Tangible common shareholders' equity	$	5,315,157			$	5,253,229			$	5,238,813			$	5,152,181			$	5,111,194			$	5,101,906
Outstanding diluted common shares, net of treasury shares	90,363				92,667				95,031				98,241				98,213				104,073
Diluted book value per common share [c]	$	59.77			$	57.62			$	56.04			$	54.08			$	53.68			$	49.88
Diluted tangible book value per common share [c]	$	58.82			$	56.69			$	55.13			$	53.18			$	52.78			$	49.02

[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] Under this method unvested restricted stocks and units are 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.

28

AXIS Capital Holdings Limited

USE OF NON-GAAP FINANCIAL MEASURES

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

Operating income represents after-tax operational results without consideration of after-tax net realized investment gains (losses), foreign exchange (losses) gains, termination fee received and reorganization and related expenses. We also present diluted operating earnings per share and operating return on average common equity ("operating ROACE"), which are derived from the non-GAAP operating income measure. Reconciliations of operating income, diluted operating earnings per share and operating ROACE to the nearest GAAP financial measures (based on net income available to common shareholders) are included on the 'Operating Income" section of this document.

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

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

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

Operating Income

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

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

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

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

29

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.

30