EX-99.2 3 axsex99-2.htm FOURTH QUARTER 2017 INVESTOR FINANCIAL SUPPLEMENT

Exhibit

AXIS Capital Holdings Limited

INVESTOR FINANCIAL SUPPLEMENT

FOURTH QUARTER 2017

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 - iv
I. Financial Highlights		1
II. Income Statements
a. Consolidated Statements of Income - Quarterly		2
b. Consolidated Statements of Income - Year		3
c. Consolidated Segment Data		5
d. Gross Premiums Written by Segment by Line of Business		6
e. Segment Data - Quarterly		7-8
f. Strategic Capital Partners - Reinsurance Segment		9
g. Net Investment Income - Quarterly and Year		10
III. Balance Sheets
a. Consolidated Balance Sheets		11
b. Cash and Invested Assets:
•    Cash and Invested Assets Portfolio		12
•    Cash and Invested Assets Composition - Quarterly		13
•    Geographic Distribution of Fixed Maturities and Equities		14
•    Corporate Debt Composition		15
•    Ten Largest Corporate Debt Holdings		16
•    Mortgage-Backed and Asset-Backed Securities Composition		17
c. Reinsurance Recoverable Analysis		18-19
IV. Loss Reserve Analysis
a. Paid to Incurred Analysis		20
b. Paid to Incurred Analysis by Segment		21
c. Paid to Incurred Analysis by Segment - Quarterly		22-23
d. Net Probable Maximum Losses to Certain Peak Industry Catastrophe Exposures		24
V. Share Analysis
a. Earnings Per Common Share Information - As Reported, GAAP		25
b. Earnings Per Common Share Information and Common Share Rollforward		26
c. Diluted Book Value Per Common Share Analysis		27
VI. Non-GAAP Financial Measures
a. Non-GAAP Operating Income		28
b. Diluted Tangible Book Value Per Common Share		29
c. Use of Non-GAAP Financial Measures		30

AXIS Capital Holdings Limited

BASIS OF PRESENTATION

DEFINITIONS AND PRESENTATION

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

• All financial information contained herein is unaudited, except for the consolidated balance sheets at December 31, 2016 and December 31, 2015 and consolidated statements of income for the years then ended.

• Amounts may not reconcile exactly due to rounding differences.

• 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 estimates of the effects of the Tax Cuts and Jobs Act of 2017 ("U.S. Tax Reform"), 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 cyclical nature of the re(insurance) business leading to periods with excess underwriting capacity and unfavorable premium rates,

• the occurrence and magnitude of natural and man-made disasters,

• losses from war, terrorism and political unrest or other unanticipated losses,

• 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,

• our inability to purchase reinsurance or collect amounts due to us,

• the breach by third parties in our program business of their obligations to us,

• difficulties with technology and/or data security,

• the failure of our policyholders and intermediaries to pay premiums,

• 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 and credit risk due to our reliance on brokers,

• changes in accounting policies or practices,

• the use of industry catastrophe models and changes to these models,

• changes in governmental regulations and potential government intervention in our industry,

• failure to comply with certain laws and regulations relating to sanctions and foreign corrupt practices,

• 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,

• the failure to successfully integrate acquired businesses or realize the expected synergies resulting from such acquisitions,

• changes in tax laws, and

• the other factors set forth in our most recent Annual Report on Form 10-K, filed with the Securities and Exchange Commission ("SEC"), as such factors may be updated from time to time in our periodic and other filings with the SEC, which are accessible on the SEC's website at www.sec.gov.

i

We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

ii

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 and includes kidnap & ransom and crisis management insurance.

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, commodity traders, corporations and multilateral and export credit agencies. Coverage is provided for a range of risks including sovereign default, credit default, political violence, currency inconvertibility and non-transfer, expropriation, aircraft non-repossession and contract frustration due to political events. The credit insurance coverage is primarily for lenders seeking to mitigate the risk of non-payment from their borrowers. In order to claim compensation under a credit insurance contract, the insured (most often a bank) cannot assign, without our prior agreement, the insured contract (most often a loan) to any third party and is normally obliged to hold a material portion of insured asset on their own books, unhedged and uninsured.

Professional Lines: provides coverage for directors’ and officers’ liability, errors and omissions liability, employment practices liability, fiduciary liability, crime, professional indemnity, cyber and privacy insurance, 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 markets. Target industry sectors include construction, manufacturing, transportation and trucking and other services. Also includes primary and excess of loss employers, public and products liability predominately in the UK.

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.

Discontinued Insurance Lines: includes lines of business that Novae exited or placed into run-off in the fourth quarter of 2016 and in the first quarter of 2017. Discontinued insurance lines include Financial Institutions, Professional Indemnity, International Liability, International Direct property.

iii

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 mostly 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 are credit insurance coverage to mortgage guaranty insurers and government sponsored entities and 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 insurers for motor liability and property damage losses arising out of any one occurrence. A loss occurrence can involve one or many claimants where the ceding insurer aggregates the claims from the occurrence. We offer traditional proportional and non-proportional reinsurance as well as structured solutions.

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 marine, aviation and personal accident reinsurance.

Discontinued Reinsurance Lines: includes lines of business that Novae exited or placed into run-off in the fourth quarter of 2016 and in the first quarter of 2017. Discontinued reinsurance lines include Motor Reinsurance, General Liability Reinsurance, International Facultative property.

iv

AXIS Capital Holdings Limited

FINANCIAL HIGHLIGHTS

				Quarter ended December 31,												Year ended December 31,
				2017				2016				Change				2017				2016				Change
HIGHLIGHTS		Gross premiums written		$	1,096,501			$	730,650			50.1	%			$	5,556,273			$	4,970,208			11.8	%
		Gross premiums written - Insurance		81.5		%		83.1		%		(1.6	)	pts		56.3		%		54.7		%		1.6		pts
		Gross premiums written - Reinsurance		18.5		%		16.9		%		1.6		pts		43.7		%		45.3		%		(1.6	)	pts
		Net premiums written		$	729,424			$	464,387			57.1	%			$	4,027,143			$	3,752,974			7.3	%
		Net premiums earned		$	1,211,495			$	921,879			31.4	%			$	4,148,760			$	3,705,625			12.0	%
		Net premiums earned - Insurance		54.3		%		49.3		%		5.0		pts		50.8		%		48.0		%		2.8		pts
		Net premiums earned - Reinsurance		45.7		%		50.7		%		(5.0	)	pts		49.2		%		52.0		%		(2.8	)	pts
		Net income (loss) available to common shareholders		$	(38,081	)		$	130,912			nm				$	(415,779	)		$	465,462			nm
		Non-GAAP operating income (loss) [a]		19,879				100,500				(80.2%)				(264,559		)		409,945				nm
		Reserve for losses and loss expenses		12,997,552				9,697,827				34.0	%			12,997,552				9,697,827				34.0	%
		Total shareholders’ equity		5,341,264				6,272,370				(14.8	%)			5,341,264				6,272,370				(14.8	%)
PER COMMON SHARE AND COMMON SHARE DATA		Basic earnings (loss) per common share			($0.46	)			$1.50			nm					($4.94	)			$5.13			nm
		Diluted earnings (loss) per common share			($0.46	)			$1.48			nm					($4.94	)			$5.08			nm
		Non-GAAP operating income (loss) per common share - diluted [b]			$0.24				$1.14			(78.9%)					($3.15	)			$4.48			nm
		Weighted average common shares outstanding		83,160				87,552				(5.0	%)			84,108				90,772				(7.3	%)
		Diluted weighted average common shares outstanding		83,160				88,474				(6.0	%)			84,108				91,547				(8.1	%)
		Book value per common share			$54.91				$59.54			(7.8	%)				$54.91				$59.54			(7.8	%)
		Diluted book value per common share (treasury stock method)			$53.88				$58.27			(7.5	%)				$53.88				$58.27			(7.5	%)
		Non-GAAP diluted tangible book value per common share (treasury stock method) [a]			$50.18				$57.46			(12.4	%)				$50.18				$57.31			(12.4	%)
		Accumulated dividends declared per common share			$13.16				$11.63			13.2	%				$13.16				$11.63			13.2	%
FINANCIAL RATIOS		ROACE [c]		(3.3		%)		9.9		%		(13.2	)	pts		(8.6		%)		9.0		%		(17.6	)	pts
		Non-GAAP operating ROACE [d]		1.7		%		7.6		%		(5.9	)	pts		(5.4		%)		7.9		%		(13.3	)	pts
		Net loss and loss expense ratio		69.3		%		58.6		%		10.7		pts		79.2		%		59.5		%		19.7		pts
		Acquisition cost ratio		19.4		%		20.3		%		(0.9	)	pts		19.9		%		20.2		%		(0.3	)	pts
		General and administrative expense ratio		12.0		%		17.8		%		(5.8	)	pts		14.0		%		16.2		%		(2.2	)	pts
		Combined ratio		100.7		%		96.7		%		4.0		pts		113.1		%		95.9		%		17.2		pts
INVESTMENT DATA		Total assets		$	24,760,177			$	20,813,691			19.0	%			$	24,760,177			$	20,813,691			19.0	%
		Total cash and invested assets [e]		16,140,251				14,727,558				9.6	%			16,140,251				14,727,558				9.6	%
		Net investment income		100,908				95,517				5.6	%			400,805				353,335				13.4	%
		Net realized investment gains (losses)		43,038				(20,229		)		nm				28,226				(60,525		)		nm
		Total return on cash and investments (inclusive of investment related foreign exchange movements) [f]		0.6		%		(1.1		%)		1.7		pts		4.0		%		2.5		%		1.5		pts
		Non-GAAP total return on cash and investments (exclusive of investment related foreign exchange movements) [f] [h]		0.5		%		(0.8		%)		1.3		pts		3.5		%		3.0		%		0.5		pts
		Return on other investments [g]		2.1		%		2.0		%		0.1		pts		9.6		%		5.1		%		4.5		pts
		Book yield of fixed maturities		2.5		%		2.6		%		(0.1	)	pts		2.5		%		2.6		%		(0.1	)	pts

[a] Non-GAAP operating income (loss) and diluted tangible book value per common share are non-GAAP financial measures as defined by Regulation G. See page 27 for reconciliation of non-GAAP operating income (loss) to net income (loss) available to common shareholders and page 28 for diluted tangible book value per common share to diluted book value per common share.

[b] Non-GAAP operating income (loss) per common share - diluted, is calculated by dividing non-GAAP operating income (loss) for the period by weighted average common shares and share equivalents.

[c] Return on average common equity (“ROACE”) is calculated by dividing net income (loss) 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 (loss) for the quarter-periods is annualized.

[d] Non-GAAP Operating ROACE, also a non-GAAP financial measure, is calculated by dividing non-GAAP operating income (loss) 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. Non-GAAP operating income (loss) 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, excluding Overseas Deposits.

[h] Pre-tax total return on cash and investments excluding foreign exchange movements is a "non-GAAP financial measure" as defined in SEC Regulation G. The reconciliation to pre-tax total return on cash and investments, the most comparable GAAP financial measure, also included foreign exchange gains (losses) of $17m and $(39)m for the three months ended December 31, 2017 and 2016, respectively, and foreign exchange gains (losses) of $80m and $(79)m for the years ended December 31, 2017 and 2016, respectively.

1

AXIS Capital Holdings Limited

CONSOLIDATED STATEMENTS OF INCOME - QUARTERLY

	Q4 2017				Q3 2017				Q2 2017				Q1 2017				Q4 2016				Q4 2015
UNDERWRITING REVENUES
Gross premiums written	$	1,096,501			$	1,185,574			$	1,362,327			$	1,911,871			$	730,650			$	799,802
Premiums ceded	(367,077		)		(352,831		)		(406,310		)		(402,912		)		(266,263		)		(204,444		)
Net premiums written	729,424				832,743				956,017				1,508,959				464,387				595,358
Gross premiums earned	1,699,882				1,370,035				1,300,648				1,245,669				1,213,623				1,146,532
Ceded premiums expensed	(488,387		)		(352,904		)		(319,217		)		(306,966		)		(291,744		)		(224,720		)
Net premiums earned	1,211,495				1,017,131				981,431				938,703				921,879				921,812
Other insurance related income (losses)	3,180				(3,197		)		2,560				(3,783		)		2,372				(15,272		)
Total underwriting revenues	1,214,675				1,013,934				983,991				934,920				924,251				906,540
UNDERWRITING EXPENSES
Net losses and loss expenses	840,132				1,235,367				605,332				606,942				540,612				523,331
Acquisition costs	234,713				194,724				204,361				189,792				187,305				180,564
Underwriting-related general and administrative expenses [a]	113,700				96,696				117,286				121,801				130,069				114,287
Total underwriting expenses	1,188,545				1,526,787				926,979				918,535				857,986				818,182
UNDERWRITING INCOME (LOSS) [b]	26,130				(512,853		)		57,012				16,385				66,265				88,358
OTHER OPERATING REVENUE (EXPENSES)
Net investment income	100,908				95,169				106,063				98,664				95,517				79,000
Net realized investment gains (losses)	43,038				14,632				(4,392		)		(25,050		)		(20,229		)		(14,872		)
Interest expense and financing costs	(16,434		)		(12,835		)		(12,751		)		(12,791		)		(12,774		)		(12,851		)
Total other operating revenues	127,512				96,966				88,920				60,823				62,514				51,277
OTHER (EXPENSES) REVENUE
Foreign exchange (losses) gains	(44,644		)		(32,510		)		(36,118		)		(21,465		)		51,514				33,112
Corporate expenses [a]	(32,023		)		(27,933		)		(30,530		)		(39,459		)		(33,095		)		(26,084		)
Transaction and reorganization expenses	(20,748		)		(5,970		)		—				—				—				—
Amortization of value of business acquired	(50,104		)		—				—				—				—				—
Amortization of intangibles	(2,543		)		—				—				—				—				—
Bargain purchase gain	—				—				15,044				—				—				—
Total other (expenses) revenues	(150,062		)		(66,413		)		(51,604		)		(60,924		)		18,419				7,028
INCOME (LOSS) BEFORE INCOME TAXES AND INTEREST IN INCOME (LOSS) OF EQUITY METHOD INVESTMENTS	3,580				(482,300		)		94,328				16,284				147,198				146,663
Income tax (expense) benefit	(31,005		)		25,877				3,333				9,337				1,373				(1,873		)
Interest in income (loss) of equity method investments	—				(661		)		(1,975		)		(5,766		)		340				—
NET INCOME (LOSS)	(27,425		)		(457,084		)		95,686				19,855				148,911				144,790
Preferred share dividends	(10,656		)		(10,656		)		(10,656		)		(14,841		)		(16,690		)		(10,003		)
Loss on repurchase of preferred shares	—				—				—				—				(1,309		)		—
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	(38,081	)		$	(467,740	)		$	85,030			$	5,014			$	130,912			$	134,787
KEY RATIOS/PER SHARE DATA
Net loss and loss expense ratio	69.3		%		121.5		%		61.7		%		64.7		%		58.6		%		56.8		%
Acquisition cost ratio	19.4		%		19.1		%		20.8		%		20.2		%		20.3		%		19.6		%
General and administrative expense ratio [a]	12.0		%		12.3		%		15.1		%		17.2		%		17.8		%		15.2		%
Combined ratio	100.7		%		152.9		%		97.6		%		102.1		%		96.7		%		91.6		%
Weighted average basic shares outstanding	83,160				83,305				84,141				86,022				87,552				96,072
Weighted average diluted shares outstanding	83,160				83,305				84,511				86,793				88,474				97,148
Basic earnings (loss) per common share		($0.46	)			($5.61	)			$1.01				$0.06				$1.50				$1.40
Diluted earnings (loss) per common share		($0.46	)			($5.61	)			$1.01				$0.06				$1.48				$1.39
ROACE (annualized)	(3.3		%)		nm				6.7		%		0.4		%		9.9		%		10.3		%
Non-GAAP operating ROACE (annualized)	1.7		%		nm				8.6		%		4.0		%		7.6		%		9.2		%

[a] Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in SEC Regulation G. Our total general and administrative expenses also include corporate expenses. Both underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.

[b] Group (or consolidated) underwriting income (loss) is also a non-GAAP financial measure. Reconciliations of consolidated underwriting income to the nearest GAAP financial measure (income (loss) before income taxes and interest in income (loss) of equity method investment) are presented above and on the following page.

2

AXIS Capital Holdings Limited

3

CONSOLIDATED STATEMENTS OF INCOME - YEAR

		Year ended December 31,
		2017				2016				2015
	UNDERWRITING REVENUES
	Gross premiums written	$	5,556,273			$	4,970,208			$	4,603,730
	Premiums ceded	(1,529,130		)		(1,217,234		)		(929,064		)
	Net premiums written	4,027,143				3,752,974				3,674,666
	Gross premiums earned	5,616,234				4,762,394				4,567,953
	Ceded premiums expensed	(1,467,474		)		(1,056,769		)		(881,536		)
	Net premiums earned	4,148,760				3,705,625				3,686,417
	Other insurance related income (losses)	(1,240		)		7,222				(2,953		)
	Total underwriting revenues	4,147,520				3,712,847				3,683,464
	UNDERWRITING EXPENSES
	Net losses and loss expenses	3,287,772				2,204,197				2,176,199
	Acquisition costs	823,591				746,876				718,112
	Underwriting-related general and administrative expenses [a]	449,483				482,701				486,911
	Total underwriting expenses	4,560,846				3,433,774				3,381,222
	UNDERWRITING INCOME (LOSS)	(413,326		)		279,073				302,242
	OTHER OPERATING REVENUE (EXPENSES)
	Net investment income	400,805				353,335				305,336
	Net realized investment gains (losses)	28,226				(60,525		)		(138,491		)
	Interest expense and financing costs	(54,811		)		(51,360		)		(50,963		)
	Total other operating revenues	374,220				241,450				115,882
	OTHER (EXPENSES) REVENUE
	Foreign exchange (losses) gains	(134,737		)		121,295				102,312
	Termination fee received	—				—				280,000
	Corporate expenses [a]	(129,945		)		(120,016		)		(109,910		)
	Transaction and reorganization expenses	(26,718		)		—				(45,867		)
	Amortization of value of business acquired	(50,104		)		—				—
	Amortization of intangibles	(2,543		)		—				—
	Bargain purchase gain	15,044				—				—
	Total other (expenses) revenues	(329,003		)		1,279				226,535
	INCOME (LOSS) BEFORE INCOME TAXES AND INTEREST IN INCOME (LOSS) OF EQUITY METHOD INVESTMENTS	(368,109		)		521,802				644,659
	Income tax benefit (expense)	7,542				(6,340		)		(3,028		)
	Interest in income (loss) of equity method investments	(8,402		)		(2,094		)		—
	NET INCOME (LOSS)	(368,969		)		513,368				641,631
	Preferred share dividends	(46,810		)		(46,597		)		(40,069		)
	Loss on repurchase of preferred shares	—				(1,309		)		—
	NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	(415,779	)		$	465,462			$	601,562
	KEY RATIOS/PER SHARE DATA
	Net loss and loss expense ratio	79.2		%		59.5		%		59.0		%
	Acquisition cost ratio	19.9		%		20.2		%		19.5		%
	General and administrative expense ratio [a]	14.0		%		16.2		%		16.2		%
	Combined ratio	113.1		%		95.9		%		94.7		%
	Weighted average basic shares outstanding	84,108				90,772				98,609
	Weighted average diluted shares outstanding	84,108				91,547				99,629
	Basic earnings (loss) per common share		($4.94	)			$5.13				$6.10
	Diluted earnings (loss) per common share		($4.94	)			$5.08				$6.04
	ROACE	(8.6		%)		9.0		%		11.5		%
	Non-GAAP operating ROACE	(5.4		%)		7.9		%		7.7		%

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

4

AXIS Capital Holdings Limited

CONSOLIDATED SEGMENT DATA

		Quarter ended December 31, 2017												Year ended December 31, 2017
		Insurance				Reinsurance				Total				Insurance				Reinsurance				Total
UNDERWRITING REVENUES
Gross premiums written		$	893,442			$	203,059			$	1,096,501			$	3,127,837			$	2,428,436			$	5,556,273
Net premiums written		554,705				174,719				729,424				2,087,734				1,939,409				4,027,143
Gross premiums earned		1,001,548				698,334				1,699,882				3,120,477				2,495,757				5,616,234
Ceded premiums expensed		(343,455		)		(144,932		)		(488,387		)		(1,014,114		)		(453,360		)		(1,467,474		)
Net premiums earned		658,093				553,402				1,211,495				2,106,363				2,042,397				4,148,760
Other insurance related income (losses)		2,381				799				3,180				3,458				(4,698		)		(1,240		)
Total underwriting revenues		660,474				554,201				1,214,675				2,109,821				2,037,699				4,147,520
UNDERWRITING EXPENSES
Net losses and loss expenses		419,536				420,596				840,132				1,661,032				1,626,740				3,287,772
Acquisition costs		109,084				125,629				234,713				332,749				490,842				823,591
Underwriting-related general and administrative expenses		90,704				22,996				113,700				344,012				105,471				449,483
Total underwriting expenses		619,324				569,221				1,188,545				2,337,793				2,223,053				4,560,846
UNDERWRITING INCOME (LOSS)		$	41,150			$	(15,020	)		$	26,130			$	(227,972	)		$	(185,354	)		$	(413,326	)
KEY RATIOS
Current accident year loss ratio		66.5		%		82.9		%		74.0		%		81.2		%		87.0		%		84.1		%
Prior period reserve development		(2.7		%)		(6.9		%)		(4.7		%)		(2.3		%)		(7.4		%)		(4.9		%)
Net loss and loss expense ratio		63.8		%		76.0		%		69.3		%		78.9		%		79.6		%		79.2		%
Acquisition cost ratio		16.6		%		22.7		%		19.4		%		15.8		%		24.0		%		19.9		%
Underwriting-related general and administrative expense ratio		13.7		%		4.2		%		9.4		%		16.3		%		5.2		%		10.9		%
Corporate expense ratio										2.6		%										3.1		%
Combined ratio		94.1		%		102.9		%		100.7		%		111.0		%		108.8		%		113.1		%

5

AXIS Capital Holdings Limited

GROSS PREMIUMS WRITTEN BY SEGMENT BY LINE OF BUSINESS

																										Year ended December 31,
		Q4 2017				Q3 2017				Q2 2017				Q1 2017				Q4 2016				Q4 2015				2017				2016
INSURANCE SEGMENT
Property		$	240,246			$	154,882			$	198,681			$	144,564			$	150,511			$	141,429			$	738,373			$	672,891
Marine		59,387				42,483				73,921				65,601				34,311				26,071				241,393				225,609
Terrorism		13,044				12,147				10,509				11,814				10,056				7,972				47,514				38,146
Aviation		24,472				23,814				21,037				14,583				16,062				24,887				83,906				53,173
Credit and Political Risk		40,212				19,793				15,139				16,172				15,631				30,327				91,316				49,930
Professional Lines		309,905				213,009				244,119				155,469				254,942				251,641				922,502				845,358
Liability		114,631				131,975				136,725				90,603				94,233				83,941				473,935				405,030
Accident and Health		76,725				146,263				95,892				195,200				31,700				46,259				514,078				430,105
Discontinued Lines		14,820				—				—				—				—				—				14,820				—
TOTAL INSURANCE SEGMENT		893,442				744,366				796,023				694,006				607,446				612,527				3,127,837				2,720,242
REINSURANCE SEGMENT
Catastrophe		25,703				89,510				135,560				185,935				8,193				8,135				436,707				324,884
Property		11,344				90,001				56,723				194,541				(1,020		)		(2,649		)		352,609				282,535
Professional Lines		34,500				20,175				120,584				77,012				33,309				71,794				252,272				268,403
Credit and Surety		22,069				38,216				25,143				119,925				3,975				11,662				205,352				319,077
Motor		18,022				40,385				42,093				291,423				7,683				1,839				391,923				346,087
Liability		51,702				139,083				118,095				111,821				57,109				86,457				420,701				422,489
Agriculture		17,763				11,152				58,094				149,191				6,963				(6,506		)		236,200				158,278
Engineering		19,134				10,120				7,347				40,533				12,173				13,886				77,134				68,892
Marine and Other		3,209				2,566				2,665				47,484				(5,181		)		2,657				55,925				59,321
Discontinued Lines		(387		)		—				—				—				—				—				(387		)		—
TOTAL REINSURANCE SEGMENT		203,059				441,208				566,304				1,217,865				123,204				187,275				2,428,436				2,249,966
CONSOLIDATED TOTAL		$	1,096,501			$	1,185,574			$	1,362,327			$	1,911,871			$	730,650			$	799,802			$	5,556,273			$	4,970,208

6

AXIS Capital Holdings Limited

INSURANCE SEGMENT DATA - QUARTERLY

		Q4 2017				Q3 2017				Q2 2017				Q1 2017				Q4 2016				Q4 2015
UNDERWRITING REVENUES
Gross premiums written		$	893,442			$	744,366			$	796,023			$	694,006			$	607,446			$	612,527
Net premiums written		554,705				500,022				527,678				505,329				374,068				407,236
Gross premiums earned		1,001,548				723,648				716,176				679,105				680,000				652,349
Ceded premiums expensed		(343,455		)		(227,644		)		(222,340		)		(220,675		)		(225,328		)		(198,498		)
Net premiums earned		658,093				496,004				493,836				458,430				454,672				453,851
Other insurance related income		2,381				526				508				42				146				225
Total underwriting revenues		660,474				496,530				494,344				458,472				454,818				454,076
UNDERWRITING EXPENSES
Net losses and loss expenses		419,536				628,865				325,728				286,903				288,161				288,348
Acquisition costs		109,084				74,231				81,276				68,157				66,138				60,716
General and administrative expenses		90,704				75,038				87,822				90,448				94,205				79,734
Total underwriting expenses		619,324				778,134				494,826				445,508				448,504				428,798
UNDERWRITING INCOME (LOSS)		$	41,150			$	(281,604	)		$	(482	)		$	12,964			$	6,314			$	25,278
KEY RATIOS
Current accident year loss ratio		66.5		%		127.3		%		69.9		%		64.5		%		66.2		%		64.0		%
Prior period reserve development		(2.7		%)		(0.5		%)		(3.9		%)		(1.9		%)		(2.8		%)		(0.5		%)
Net loss and loss expense ratio		63.8		%		126.8		%		66.0		%		62.6		%		63.4		%		63.5		%
Acquisition cost ratio		16.6		%		15.0		%		16.5		%		14.9		%		14.5		%		13.4		%
General and administrative expense ratio		13.7		%		15.1		%		17.7		%		19.7		%		20.7		%		17.6		%
Combined ratio		94.1		%		156.9		%		100.2		%		97.2		%		98.6		%		94.5		%

7

AXIS Capital Holdings Limited

REINSURANCE SEGMENT DATA - QUARTERLY

		Q4 2017				Q3 2017				Q2 2017				Q1 2017				Q4 2016				Q4 2015
UNDERWRITING REVENUES
Gross premiums written		$	203,059			$	441,208			$	566,304			$	1,217,865			$	123,204			$	187,275
Net premiums written		174,719				332,721				428,339				1,003,630				90,319				188,122
Gross premiums earned		698,334				646,387				584,472				566,564				533,623				494,183
Ceded premiums expensed		(144,932		)		(125,260		)		(96,877		)		(86,291		)		(66,416		)		(26,222		)
Net premiums earned		553,402				521,127				487,595				480,273				467,207				467,961
Other insurance related income (losses)		799				(3,723		)		2,052				(3,825		)		2,226				(15,497		)
Total underwriting revenues		554,201				517,404				489,647				476,448				469,433				452,464
UNDERWRITING EXPENSES
Net losses and loss expenses		420,596				606,502				279,604				320,039				252,451				234,983
Acquisition costs		125,629				120,493				123,085				121,635				121,167				119,848
General and administrative expenses		22,996				21,658				29,464				31,353				35,864				34,553
Total underwriting expenses		569,221				748,653				432,153				473,027				409,482				389,384
UNDERWRITING INCOME (LOSS)		$	(15,020	)		$	(231,249	)		$	57,494			$	3,421			$	59,951			$	63,080
KEY RATIOS
Current accident year loss ratio		82.9		%		125.0		%		67.9		%		70.0		%		65.9		%		66.2		%
Prior period reserve development		(6.9		%)		(8.6		%)		(10.6		%)		(3.4		%)		(11.9		%)		(16.0		%)
Net loss and loss expense ratio		76.0		%		116.4		%		57.3		%		66.6		%		54.0		%		50.2		%
Acquisition cost ratio		22.7		%		23.1		%		25.2		%		25.3		%		25.9		%		25.6		%
General and administrative expense ratio		4.2		%		4.2		%		6.1		%		6.6		%		7.7		%		7.4		%
Combined ratio		102.9		%		143.7		%		88.6		%		98.5		%		87.6		%		83.2		%

8

AXIS Capital Holdings Limited

REINSURANCE SEGMENT - STRATEGIC CAPITAL PARTNERS

		Quarter ended December 31,								Year ended December 31,
TOTAL MANAGED PREMIUMS [a]		2017				2016				2017				2016
Total managed premiums		$	203,059			$	123,204			$	2,428,436			$	2,249,966
Premiums ceded to Harrington Re		16,156				17,403				194,730				119,092
Premiums ceded to Other Strategic Capital Partners		12,184				15,482				294,297				185,025
Net premiums written		$	174,719			$	90,319			$	1,939,409			$	1,945,849
FEE INCOME FROM STRATEGIC CAPITAL PARTNERS [b]
Fee income		$	7,743			$	6,769			$	36,004			$	21,776

[a] Total managed premiums represented gross premiums written by the AXIS Reinsurance segment of $203,059 and $123,204 for the three months ended December 31, 2017 and 2016, respectively, and $2,428,436 and $2,249,966 for the years ended December 31, 2017 and 2016, respectively, including premiums written on behalf of our strategic capital partners.

[b] Fee income from strategic capital partners represents service fees and reimbursement of expenses due to the AXIS Reinsurance segment from its strategic capital partners. Fee income from strategic capital partners included $88 and $5,013 included in other insurance related income (expense) for the three months and year ended December 31, 2017, respectively, and $2,395 and $7,931 for the three months and year ended December 31, 2016. It also included $7,655 and $30,991 as an offset to general and administrative expenses for the three months and year ended December 31, 2017, respectively, and $4,374 and $13,845 for the three months and year ended December 31, 2016 . Fee income from strategic capital partners for periods prior to June 30, 2016 were included in acquisition costs.

9

AXIS Capital Holdings Limited

NET INVESTMENT INCOME - QUARTERLY AND YEAR

																										Year ended December 31,
		Q4 2017				Q3 2017				Q2 2017				Q1 2017				Q4 2016				Q4 2015				2017				2016
Fixed maturities		$	82,060			$	74,978			$	78,218			$	77,407			$	76,036			$	74,659			$	312,662			$	305,459
Other investments		16,885				17,373				23,639				18,962				16,744				2,531				76,858				42,514
Equity securities		3,871				3,223				4,347				3,478				3,462				3,494				14,919				16,306
Mortgage loans		2,810				2,895				2,597				2,477				2,313				1,085				10,780				7,996
Cash and cash equivalents		417				3,111				3,433				3,095				2,138				4,802				10,057				9,209
Short-term investments		921				698				660				438				1,353				163				2,718				2,060
Gross investment income		106,964				102,278				112,894				105,857				102,046				86,734				427,994				383,544
Investment expense		(6,056		)		(7,109		)		(6,831		)		(7,193		)		(6,529		)		(7,734		)		(27,189		)		(30,209		)
Net investment income		$	100,908			$	95,169			$	106,063			$	98,664			$	95,517			$	79,000			$	400,805			$	353,335

10

AXIS Capital Holdings Limited

CONSOLIDATED BALANCE SHEETS

		December 31,				September 30,				June 30,				March 31,				December 31,				December 31,
		2017				2017				2017				2017				2016				2015
ASSETS
Investments:
Fixed maturities, available for sale, at fair value		$	12,622,006			$	11,086,386			$	11,424,295			$	11,191,529			$	11,397,114			$	11,719,749
Equity securities, available for sale, at fair value		635,511				659,751				738,489				653,419				638,744				597,998
Mortgage loans, held for investment, at amortized cost and fair value		325,062				360,381				349,916				339,855				349,969				206,277
Other investments, at fair value		1,009,373				830,253				813,617				780,395				830,219				816,756
Equity method investments		$	108,597			108,597				109,258				111,233				116,000				10,932
Short-term investments, at amortized cost and fair value		83,661				15,282				10,146				13,338				127,461				34,406
Total investments		14,784,210				13,060,650				13,445,721				13,089,769				13,459,507				13,386,118
Cash and cash equivalents		1,363,786				1,631,127				1,015,270				1,451,570				1,241,507				1,174,751
Accrued interest receivable		81,223				68,023				72,626				69,649				74,971				73,729
Insurance and reinsurance premium balances receivable		3,012,419				2,968,096				3,050,222				2,891,811				2,313,512				1,967,535
Reinsurance recoverable on paid and unpaid losses		3,338,840				2,360,821				2,184,934				2,070,341				2,334,922				2,096,104
Deferred acquisition costs		474,061				562,774				591,397				609,773				438,636				471,782
Prepaid reinsurance premiums		809,274				734,129				733,836				645,663				556,344				396,201
Receivable for investments sold		11,621				9,357				18,754				40,448				14,123				26,478
Goodwill		102,003				48,969				47,148				47,148				47,148				47,148
Intangible assets		257,987				38,237				39,072				37,465				37,901				39,710
Value of business acquired		206,838				—				—				—				—				—
Other assets		317,915				335,967				300,658				293,330				295,120				302,335
TOTAL ASSETS		$	24,760,177			$	21,818,150			$	21,499,638			$	21,246,967			$	20,813,691			$	19,981,891
LIABILITIES
Reserve for losses and loss expenses		$	12,997,552			$	10,787,575			$	9,878,662			$	9,541,963			$	9,697,827			$	9,646,285
Unearned premiums		3,641,399				3,521,063				3,704,003				3,629,354				2,969,498				2,760,889
Insurance and reinsurance balances payable		899,064				670,292				677,204				514,356				493,183				356,417
Notes payable and debt		1,376,529				993,797				993,511				993,229				992,950				991,825
Payable for investments purchased		100,589				122,065				95,865				83,783				62,550				9,356
Other liabilities		403,780				268,659				257,698				253,917				325,313				350,237
TOTAL LIABILITIES		19,418,913				16,363,451				15,606,943				15,016,602				14,541,321				14,115,009
SHAREHOLDERS’ EQUITY
Preferred shares		775,000				775,000				775,000				1,126,074				1,126,074				627,843
Common shares		2,206				2,206				2,206				2,206				2,206				2,202
Additional paid-in capital		2,299,166				2,291,516				2,283,523				2,276,671				2,299,857				2,241,388
Accumulated other comprehensive income (loss)		92,382				141,613				84,306				699				(121,841		)		(188,465		)
Retained earnings		5,979,666				6,051,659				6,551,801				6,499,262				6,527,627				6,194,353
Treasury shares, at cost		(3,807,156		)		(3,807,295		)		(3,804,141		)		(3,674,547		)		(3,561,553		)		(3,010,439		)
TOTAL SHAREHOLDERS' EQUITY		5,341,264				5,454,699				5,892,695				6,230,365				6,272,370				5,866,882
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	24,760,177			$	21,818,150			$	21,499,638			$	21,246,967			$	20,813,691			$	19,981,891
Basic common shares outstanding		83,161				83,157				83,203				85,170				86,441				96,066
Diluted common shares outstanding		84,745				84,575				84,655				86,670				88,317				96,883
Book value per common share			$54.91				$56.28				$61.51				$59.93				$59.54				$55.32
Diluted book value per common share		53.88				55.33				60.45				58.89				58.27				54.08
Diluted tangible book value per common share			$50.18				$54.30				$59.44				$57.92				$57.31				$53.18
Debt to total capital [a]		20.5		%		15.4		%		14.4		%		13.7		%		13.7		%		14.5		%
Debt and preferred equity to total capital		32.0		%		27.4		%		25.7		%		29.3		%		29.2		%		23.6		%

[a] The debt to total capital ratio is calculated by dividing our notes payable and debt by total capital. Total capital represents the sum of total shareholders’ equity and our notes payable and debt.

11

AXIS Capital Holdings Limited

CASH AND INVESTED ASSETS PORTFOLIO

At December 31, 2017

		Cost or Amortized Cost				Unrealized Gains				Unrealized Losses				Fair Value				Percentage
Fixed Maturities, available for sale
U.S. government and agency		$	1,727,643			$	1,735			$	(16,909	)		$	1,712,469			10.7	%
Non-U.S. government		798,582				17,240				(9,523		)		806,299				5.0	%
Corporate debt		5,265,795				61,922				(29,851		)		5,297,866				32.8	%
Agency RMBS		2,414,720				8,132				(27,700		)		2,395,152				14.8	%
CMBS		776,715				4,138				(3,125		)		777,728				4.8	%
Non-Agency RMBS		45,713				1,917				(799		)		46,831				0.3	%
ABS		1,432,884				5,391				(1,994		)		1,436,281				8.9	%
Municipals		149,167				1,185				(972		)		149,380				0.9	%
Total fixed maturities		12,611,219				101,660				(90,873		)		12,622,006				78.2	%
Equity securities, available for sale
Common stocks		22,836				3,412				(590		)		25,658				0.2	%
Exchange traded funds [b]		356,252				71,675				(294		)		427,633				2.6	%
Bond mutual funds		173,779				9,440				(999		)		182,220				1.1	%
Total equity securities		552,867				84,527				(1,883		)		635,511				3.9	%
Total available for sale investments		$	13,164,086			$	186,187			$	(92,756	)		13,257,517				82.1	%
Mortgage loans, held for investment														325,062				2.0	%
Other investments (see below)														1,009,373				6.3	%
Equity method investments														108,597				0.7	%
Short-term investments														83,661				0.5	%
Total investments														14,784,210				91.6	%
Cash and cash equivalents [a]														1,363,786				8.4	%
Accrued interest receivable														81,223				0.5	%
Net receivable/(payable) for investments sold (purchased)														(88,968		)		(0.5	%)
Total cash and invested assets														$	16,140,251			100.0	%
														Fair Value				Percentage
Other Investments:
Long/short equity funds														$	38,470			3.8	%
Multi-strategy funds														286,164				28.4	%
Event-driven funds														39,177				3.9	%
Direct lending funds														250,681				24.8	%
Real estate funds														50,009				5.0	%
Private equity funds														68,812				6.8	%
Other privately held investments														46,430				4.6	%
Collateralized loan obligations - equity tranches														31,413				3.1	%
Overseas deposits														198,217				19.6	%
Total														$	1,009,373			100.0	%

[a] Includes $415 million of restricted cash and cash equivalents.

[b] Includes $72 million of ETFs with underlying exposure to fixed income.

12

AXIS Capital Holdings Limited

CASH AND INVESTED ASSETS COMPOSITION - QUARTERLY

		Q4 2017			Q3 2017			Q2 2017			Q1 2017			Q4 2016			Q4 2015
		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	%		10.7	%		11.3	%		11.5	%		11.4	%		11.3	%
Non-U.S. government		5.0	%		3.9	%		3.7	%		3.8	%		3.8	%		5.0	%
Corporate debt		32.8	%		30.7	%		32.8	%		30.5	%		31.2	%		29.7	%
MBS:
Agency RMBS		14.8	%		15.7	%		15.9	%		15.6	%		16.7	%		15.4	%
CMBS		4.8	%		4.6	%		4.5	%		4.7	%		4.5	%		7.4	%
Non-agency RMBS		0.3	%		0.3	%		0.3	%		0.4	%		0.4	%		0.7	%
ABS		8.9	%		8.8	%		9.5	%		9.4	%		8.3	%		9.4	%
Municipals		0.9	%		1.0	%		1.0	%		0.9	%		1.1	%		1.1	%
Total Fixed Maturities		78.2	%		75.7	%		79.0	%		76.8	%		77.4	%		80.0	%
Equity securities		3.9	%		4.5	%		5.1	%		4.5	%		4.3	%		4.1	%
Mortgage loans		2.0	%		2.5	%		2.4	%		2.3	%		2.4	%		1.4	%
Other investments		6.3	%		5.7	%		5.6	%		5.4	%		5.6	%		5.6	%
Equity method investments		0.7	%		0.7	%		0.8	%		0.8	%		0.8	%		0.1	%
Short-term investments		0.5	%		0.1	%		0.1	%		0.1	%		0.9	%		0.2	%
Total investments		91.6	%		89.2	%		93.0	%		89.9	%		91.4	%		91.4	%
Cash and cash equivalents		8.4	%		11.1	%		7.0	%		10.0	%		8.4	%		8.0	%
Accrued interest receivable		0.5	%		0.5	%		0.5	%		0.5	%		0.5	%		0.5	%
Net receivable/(payable) for investments sold or purchased		(0.5	%)		(0.8	%)		(0.5	%)		(0.4	%)		(0.3	%)		0.1	%
Total Cash and Invested Assets		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
CREDIT QUALITY OF FIXED MATURITIES		Fair Value %			Fair Value %			Fair Value %			Fair Value %			Fair Value %			Fair Value %
U.S. government and agency		13.6	%		14.0	%		14.3	%		15.2	%		14.5	%		14.1	%
AAA		39.5	%		39.5	%		38.1	%		37.8	%		36.5	%		36.4	%
AA		8.3	%		7.9	%		8.1	%		8.7	%		9.9	%		10.9	%
A		16.6	%		15.0	%		15.8	%		14.7	%		15.3	%		17.6	%
BBB		13.9	%		14.5	%		14.7	%		14.1	%		13.7	%		12.3	%
Below BBB		8.1	%		9.1	%		9.0	%		9.5	%		10.1	%		8.7	%
Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
MATURITY PROFILE OF FIXED MATURITIES		Fair Value %			Fair Value %			Fair Value %			Fair Value %			Fair Value %			Fair Value %
Within one year		3.9	%		3.9	%		3.5	%		2.9	%		2.7	%		2.5	%
From one to five years		38.9	%		34.7	%		36.2	%		35.8	%		33.8	%		35.3	%
From five to ten years		18.6	%		20.5	%		20.0	%		19.7	%		22.0	%		18.6	%
Above ten years		1.7	%		2.0	%		2.0	%		2.6	%		2.8	%		2.6	%
Asset-backed and mortgage-backed securities		36.9	%		38.9	%		38.3	%		39.0	%		38.7	%		41.0	%
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	%		2.6	%		2.6	%		2.7	%		2.6	%		2.5	%
Yield to maturity of fixed maturities		2.7	%		2.6	%		2.6	%		2.7	%		2.8	%		2.9	%
Average duration of fixed maturities (inclusive of duration hedges)		3.2	yrs		3.2 yrs			3.1 yrs			3.3 yrs			3.5	yrs		3.3	yrs
Average credit quality		AA-			AA-			AA-			AA-			AA-			AA-

13

AXIS Capital Holdings Limited

GEOGRAPHIC DISTRIBUTION OF FIXED MATURITIES AND EQUITIES

At December 31, 2017

					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	$	42,739			$	36,077			$	82,180			$	—			$	118,257			$	—			$	—			$	2,513			$	163,509			$	1,362			$	164,871
Germany	35,332				7,996				37,593				50,312				95,901				—				—				—				131,233				1,486				132,719
France	34,386				41,450				45,540				5,027				92,017				—				—				—				126,403				4,354				130,757
Ireland	7,060				25,793				20,673				—				46,466				—				—				—				53,526				87				53,613
Belgium	36,095				1,777				23,057				—				24,834				—				—				—				60,929				533				61,462
Luxembourg	—				—				44,804				—				44,804				—				—				2,167				46,971				—				46,971
Supranational [a]	19,196				—				—				—				—				—				—				—				19,196				—				19,196
Spain	2,948				7,598				5,136				—				12,734				—				—				—				15,682				424				16,106
Italy	7,366				434				9,912				—				10,346				—				—				—				17,712				807				18,519
Austria	—				571				1,247				—				1,818				—				—				—				1,818				295				2,113
Portugal	—				—				974				—				974				—				—				—				974				—				974
Finland	—				—				695				—				695				—				—				—				695				191				886
Other [b]	—				—				—				—				—				—				—				—				—				63,237				63,237
Total eurozone	185,122				121,696				271,811				55,339				448,846				—				—				4,680				638,648				72,776				711,424
Other concentrations:
United Kingdom	275,656				120,112				185,589				12,447				318,148				—				14,841				11,863				620,508				87,627				708,135
Canada	151,027				183,614				119,285				98,718				401,617				—				—				9,981				562,625				—				562,625
Japan	—				107,016				3,884				5,873				116,773				—				—				6,006				122,779				13,987				136,766
Australia	—				64,845				19,746				—				84,591				—				—				—				84,591				—				84,591
Mexico	37,021				—				2,541				—				2,541				—				—				—				39,562				—				39,562
Other	157,473				68,264				87,602				14,368				170,234				—				—				—				327,707				76,394			[c]	404,101
Total other concentrations	621,177				543,851				418,647				131,406				1,093,904				—				14,841				27,850				1,757,772				178,008				1,935,780
Total Non-U.S. concentrations	806,299				665,547				690,458				186,745				1,542,750				—				14,841				32,530				2,396,420				250,784				2,647,204
United States	1,658,622			[d]	1,563,742				2,191,374				—				3,755,116				2,395,152				809,718				1,403,751				10,022,359				384,727			[e]	10,407,086
United States agencies	53,847				—				—				—				—				—				—				—				53,847				—				53,847
United States local governments	149,380				—				—				—				—				—				—				—				149,380				—				149,380
Total U.S. concentrations	1,861,849				1,563,742				2,191,374				—				3,755,116				2,395,152				809,718				1,403,751				10,225,586				384,727				10,610,313
Totals	$	2,668,148			$	2,229,289			$	2,881,832			$	186,745			$	5,297,866			$	2,395,152			$	824,559			$	1,436,281			$	12,622,006			$	635,511			$	13,257,517

[a] Represents holdings of the European Investment Bank.

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

[c] Represents exchange-traded funds (“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, and a U.S. bond mutual fund.

14

AXIS Capital Holdings Limited

CORPORATE DEBT COMPOSITION

At December 31, 2017

		Fair Value				% of Total Corporate Debt			% of Total Cash and Invested Assets
Composition by sector - Investment grade
Financial institutions:
U.S. banks		$	1,140,948			21.5	%		7.1	%
Non-U.S. banks		568,060				10.7	%		3.5	%
Corporate/commercial finance		225,589				4.3	%		1.4	%
Insurance		135,808				2.6	%		0.8	%
Investment brokerage		15,676				0.3	%		0.1	%
Total financial institutions		2,086,081				39.4	%		12.9	%
Consumer non-cyclicals		566,909				10.7	%		3.5	%
Consumer cyclicals		358,116				6.8	%		2.2	%
Communications		297,318				5.6	%		1.8	%
Technology		246,438				4.7	%		1.5	%
Energy		201,914				3.8	%		1.3	%
Non-U.S. government guaranteed		185,974				3.5	%		1.2	%
Utilities		139,695				2.6	%		0.9	%
Industrials		122,268				2.3	%		0.8	%
Transportation		114,907				2.2	%		0.7	%
Total investment grade		4,319,620				81.6	%		26.8	%
Total non-investment grade		978,246				18.4	%		6.0	%
Total corporate debt		$	5,297,866			100.0	%		32.8	%

15

AXIS Capital Holdings Limited

INVESTMENT PORTFOLIO

TEN LARGEST CORPORATE DEBT HOLDINGS

At December 31, 2017

		Amortized Cost				Net Unrealized Gain (Loss)				Fair Value				% of Total Fixed  Maturities
ISSUER [a]
GOLDMAN SACHS GROUP INC		$	156,304			$	717			$	157,021			1.2	%
MORGAN STANLEY		135,690				440				136,130				1.1	%
JP MORGAN CHASE & CO		131,945				328				132,273				1.0	%
WELLS FARGO & COMPANY		130,054				641				130,695				1.0	%
BANK OF AMERICA CORP		124,134				1,248				125,382				1.0	%
FORD MOTOR COMPANY		62,027				(425		)		61,602				0.5	%
ROYAL BANK OF CANADA		57,679				98				57,777				0.5	%
ANHEUSER-BUSCH INBEV		57,320				138				57,458				0.5	%
GENERAL MOTORS COMPANY		54,577				692				55,269				0.4	%
TORONTO-DOMINION BANK		54,846				(153		)		54,693				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.

16

AXIS Capital Holdings Limited

MORTGAGE-BACKED AND ASSET-BACKED SECURITIES COMPOSITION

At December 31, 2017

		Agencies				AAA				AA				A				BBB				Non-Investment Grade				Total
Residential MBS		$	2,395,152			$	23,113			$	109			$	1,913			$	6,896			$	14,800			$	2,441,983
Commercial MBS		192,034				509,112				63,217				12,608				757				—				777,728
ABS		—				1,295,016				85,366				35,447				13,973				6,479				1,436,281
Total mortgage-backed and asset-backed securities		$	2,587,186			$	1,827,241			$	148,692			$	49,968			$	21,626			$	21,279			$	4,655,992
Percentage of total		55.6		%		39.2		%		3.2		%		1.1		%		0.5		%		0.4		%		100.0		%

17

AXIS Capital Holdings Limited

REINSURANCE RECOVERABLE ANALYSIS

		Q4 2017				Q3 2017				Q2 2017				Q1 2017				Q4 2016				Q4 2015
Reinsurance recoverable on paid losses and loss expenses:
Insurance		$	86,271			$	38,654			$	59,391			$	26,009			$	40,413			$	40,633
Reinsurance		93,055				24,145				14,674				15,301				18,400				24,162
Total		$	179,326			$	62,799			$	74,065			$	41,310			$	58,813			$	64,795
Reinsurance recoverable on unpaid losses and loss expenses: OSLR
Insurance		$	932,209			$	587,061			$	563,510			$	576,914			$	723,265			$	664,592
Reinsurance		148,985				99,302				45,525				39,069				36,326				11,654
Total		$	1,081,194			$	686,363			$	609,035			$	615,983			$	759,591			$	676,246
Reinsurance recoverable on unpaid losses and loss expenses: IBNR
Insurance		$	1,811,843			$	1,406,026			$	1,406,141			$	1,366,078			$	1,489,953			$	1,349,242
Reinsurance		283,315				221,872				113,483				67,121				46,955				24,063
Total		$	2,095,158			$	1,627,898			$	1,519,624			$	1,433,199			$	1,536,908			$	1,373,305
Provision against reinsurance recoverable on unpaid losses and loss expenses:
Insurance		$	(16,421	)		$	(15,973	)		$	(17,629	)		$	(20,017	)		$	(19,889	)		$	(18,242	)
Reinsurance		(417		)		(266		)		(161		)		(134		)		(501		)		—
Total		$	(16,838	)		$	(16,239	)		$	(17,790	)		$	(20,151	)		$	(20,390	)		$	(18,242	)
Net reinsurance recoverables:
Insurance		$	2,813,902			$	2,015,768			$	2,011,413			$	1,948,984			$	2,233,742			$	2,036,225
Reinsurance		524,938				345,053				173,521				121,357				101,180				59,879
Total		$	3,338,840			$	2,360,821			$	2,184,934			$	2,070,341			$	2,334,922			$	2,096,104

18

AXIS Capital Holdings Limited

REINSURANCE RECOVERABLE ANALYSIS

At December 31, 2017

Categories		Gross Recoverable				Collateral				Gross Recoverable Net of Collateral				% of  Total Gross Recoverable Net  of Collateral		% of  Total Shareholders’ Equity		Provision Against Reinsurance Recoverable				Provision Against  Reinsurance Recoverable as % of Gross Recoverable		Net Recoverable
Top 10 reinsurers based on gross recoverables		$	1,893,567			$	(184,750	)		$	1,708,817			59.4%		32.0%		$	(9,102	)		0.5%		$	1,884,465
Other reinsurers balances > $20 million		1,020,139				(191,165		)		828,974				28.8%		15.5%		(5,197		)		0.5%		1,014,942
Other reinsurers balances < $20 million		442,119				(102,742		)		339,377				11.8%		6.4%		(2,686		)		0.6%		439,433
Total		$	3,355,825			$	(478,657	)		$	2,877,168			100.0%		53.9%		$	(16,985	)		0.5%		$	3,338,840

At December 31, 2017, 88.8% (December 31, 2016: 96.7%) 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
Lloyds of London		13.7%		7.4%
Swiss Reinsurance America Corporation		13.0%		7.0%
Transatlantic Reinsurance Company		8.0%		4.3%
Partner Reinsurance Co of US		6.3%		3.4%
Hannover Ruck SE		4.7%		2.5%
Everest Reinsurance Company		4.6%		2.5%
Harrington Re Ltd.		3.5%		1.9%
Munich Reinsurance America, Inc		2.8%		1.5%
Berkley Insurance Company		2.8%		1.5%
Liberty Mutual Insurance Company		2.5%		1.4%
		61.9%		33.4%

19

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

		Quarter ended December 31, 2017												Year ended December 31, 2017
		Gross				Recoveries				Net				Gross				Recoveries				Net
Reserve for unpaid losses and loss expenses
Beginning of period		$	10,787,575			$	(2,298,022	)		$	8,489,553			$	9,697,827			$	(2,276,109	)		$	7,421,718
Incurred		1,174,908				(334,776		)		840,132				4,297,652				(1,009,882		)		3,287,772
Paid		(1,121,282		)		249,865				(871,417		)		(3,303,068		)		718,390				(2,584,678		)
Foreign exchange and other		2,156,351				(776,581		)		1,379,770				2,305,141				(591,913		)		1,713,226
End of period [a]		$	12,997,552			$	(3,159,514	)		$	9,838,038			$	12,997,552			$	(3,159,514	)		$	9,838,038

[a] At December 31, 2017, the gross reserve for losses and loss expenses included IBNR of $7,860 million, or 60%, of total gross reserves for loss and loss expenses. At December 31, 2016, the comparable amount was $6,339 million, or 65%.

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AXIS Capital Holdings Limited

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

		Quarter ended December 31, 2017												Year ended December 31, 2017
		Insurance				Reinsurance				Total				Insurance				Reinsurance				Total
Gross losses paid		$	629,744			$	491,538			$	1,121,282			$	2,031,731			$	1,271,337			$	3,303,068
Reinsurance recoveries		(158,719		)		(91,146		)		(249,865		)		(594,064		)		(124,326		)		(718,390		)
Net losses paid		471,025				400,392				871,417				1,437,667				1,147,011				2,584,678
Change in:
Reported case reserves		208,939				105,958				314,897				113,136				353,427				466,563
IBNR		(162,496		)		(98,775		)		(261,271		)		180,703				347,320				528,023
Reinsurance recoveries on unpaid loss and loss expense reserves		(97,932		)		13,021				(84,911		)		(70,474		)		(221,018		)		(291,492		)
Total net incurred losses and loss expenses		$	419,536			$	420,596			$	840,132			$	1,661,032			$	1,626,740			$	3,287,772
Gross reserve for losses and loss expenses		$	7,157,544			$	5,840,008			$	12,997,552			$	7,157,544			$	5,840,008			$	12,997,552
Net favorable prior year reserve development		$	18,230			$	38,329			$	56,559			$	48,969			$	151,085			$	200,054
Key Ratios
Net paid to net incurred percentage		112.3		%		95.2		%		103.7		%		86.6		%		70.5		%		78.6		%
Net paid losses / Net premiums earned		71.6		%		72.4		%		71.9		%		68.3		%		56.2		%		62.3		%
Change in net loss and loss expense reserves / Net premiums earned		(7.8		%)		3.6		%		(2.6		%)		10.6		%		23.4		%		16.9		%
Net loss and loss expense ratio		63.8		%		76.0		%		69.3		%		78.9		%		79.6		%		79.2		%

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AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

INSURANCE - QUARTERLY

		Q4 2017				Q3 2017				Q2 2017				Q1 2017				Q4 2016				Q4 2015
Gross losses paid		$	629,744			$	459,648			$	424,631			$	517,708			$	456,485			$	378,309
Reinsurance recoveries		(158,719		)		(113,348		)		(118,232		)		(203,766		)		(121,990		)		(112,628		)
Net losses paid		471,025				346,300				306,399				313,942				334,495				265,681
Change in:
Reported case reserves		208,939				34,012				(57,989		)		(71,825		)		37,738				(19,093		)
IBNR		(162,496		)		266,928				95,220				(18,949		)		(88,366		)		70,623
Reinsurance recoveries on unpaid loss and loss expense reserves		(97,932		)		(18,375		)		(17,902		)		63,735				4,294				(28,863		)
Total net incurred losses and loss expenses		$	419,536			$	628,865			$	325,728			$	286,903			$	288,161			$	288,348
Gross reserve for losses and loss expenses		$	7,157,544			$	5,525,000			$	5,200,224			$	5,055,410			$	5,345,655			$	5,291,218
Net favorable prior year reserve development		$	18,230			$	2,603			$	19,517			$	8,619			$	12,725			$	2,222
Key Ratios
Net paid to net incurred percentage		112.3		%		55.1		%		94.1		%		109.4		%		116.1		%		92.1		%
Net paid losses / Net premiums earned		71.6		%		69.8		%		62.0		%		68.5		%		73.6		%		58.5		%
Change in net loss and loss expense reserves / Net premiums earned		(7.8		%)		57.0		%		4.0		%		(5.9		%)		(10.2		%)		5.0		%
Net loss and loss expense ratio		63.8		%		126.8		%		66.0		%		62.6		%		63.4		%		63.5		%

22

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

REINSURANCE - QUARTERLY

		Q4 2017				Q3 2017				Q2 2017				Q1 2017				Q4 2016				Q4 2015
Gross losses paid		$	491,538			$	281,676			$	254,182			$	243,941			$	297,741			$	323,896
Reinsurance recoveries		(91,146		)		(23,886		)		(3,936		)		(5,358		)		(8,284		)		(16,584		)
Net losses paid		400,392				257,790				250,246				238,583				289,457				307,312
Change in:
Reported case reserves		105,958				158,461				90,172				(1,164		)		37,735				3,578
IBNR		(98,775		)		349,496				(8,890		)		105,490				(50,686		)		(80,796		)
Reinsurance recoveries on unpaid loss and loss expense reserves		13,021				(159,245		)		(51,924		)		(22,870		)		(24,055		)		4,889
Total net incurred losses and loss expenses		$	420,596			$	606,502			$	279,604			$	320,039			$	252,451			$	234,983
Gross reserve for losses and loss expenses		$	5,840,008			$	5,262,575			$	4,678,438			$	4,486,553			$	4,352,172			$	4,355,067
Net favorable prior year reserve development		$	38,329			$	45,165			$	51,416			$	16,174			$	55,522			$	75,022
Key Ratios
Net paid to net incurred percentage		95.2		%		42.5		%		89.5		%		74.5		%		114.7		%		130.8		%
Net paid losses / Net premiums earned		72.4		%		49.5		%		51.3		%		49.7		%		62.0		%		65.7		%
Change in net loss and loss expense reserves / Net premiums earned		3.6		%		66.9		%		6.0		%		16.9		%		(8.0		%)		(15.5		%)
Net loss and loss expense ratio		76.0		%		116.4		%		57.3		%		66.6		%		54.0		%		50.2		%

23

AXIS Capital Holdings Limited

NET PROBABLE MAXIMUM LOSSES TO CERTAIN PEAK INDUSTRY CATASTROPHE EXPOSURES - AS OF JANUARY 1, 2018

				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		$	350			$	430			$	848
Northeast		U.S. Hurricane		58				164				297
Mid-Atlantic		U.S. Hurricane		121				273				401
Gulf of Mexico		U.S. Hurricane		237				302				400
California		Earthquake		241				328				527
Europe		Windstorm		232				327				467
Japan		Earthquake		168				232				336
Japan		Windstorm		60				99				140

The above table shows our Probable Maximum Loss (“PML”) to a single natural peril catastrophe event within certain defined single zones which correspond to peak industry catastrophe exposures at January 1, 2018. 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 $0.4 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 $0.4 billion. Conversely, there is a 99% chance that on an annual basis, the loss from a Southeast hurricane will fall below $0.4 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.

24

AXIS Capital Holdings Limited

EARNINGS PER COMMON SHARE INFORMATION - AS REPORTED, GAAP

		Quarter ended December 31,								Year ended December 31,
		2017				2016				2017				2016
Net income (loss) available to common shareholders		$	(38,081	)		$	130,912			$	(415,779	)		$	465,462
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Weighted average shares outstanding - basic		83,160				87,552				84,108				90,772
Dilutive share equivalents:
Stock compensation plans [a]		—				922				—				775
Weighted average shares outstanding - diluted		83,160				88,474				84,108				91,547
EARNINGS (LOSS) PER COMMON SHARE
Basic			($0.46	)			$1.50				($4.94	)			$5.13
Diluted			($0.46	)			$1.48				($4.94	)			$5.08

[a] Due to the net loss incurred in the quarter and year ended December 31, 2017, all the share equivalents were anti-dilutive.

25

AXIS Capital Holdings Limited

EARNINGS PER COMMON SHARE INFORMATION AND COMMON SHARE ROLLFOWARD - QUARTERLY

		Q4 2017				Q3 2017				Q2 2017				Q1 2017				Q4 2016				Q4 2015
Net income (loss) available to common shareholders		$	(38,081	)		$	(467,740	)		$	85,030			$	5,014			$	130,912			$	134,787
COMMON SHARES OUTSTANDING
Common shares - at beginning of period		83,157				83,203				85,170				86,441				88,439				96,049
Shares issued, including those sourced from treasury		8				5				37				958				11				25
Shares repurchased for treasury		(4		)		(51		)		(2,004		)		(2,229		)		(2,009		)		(8		)
Common shares - at end of period		83,161				83,157				83,203				85,170				86,441				96,066
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Weighted average shares outstanding - basic		83,160				83,305				84,141				86,022				87,552				96,072
Dilutive share equivalents:
Stock compensation plans [a]		—				—				370				771				922				1,076
Weighted average shares outstanding - diluted		83,160				83,305				84,511				86,793				88,474				97,148
EARNINGS (LOSS) PER COMMON SHARE
Basic			($0.46	)			($5.61	)			$1.01				$0.06				$1.50				$1.40
Diluted			($0.46	)			($5.61	)			$1.01				$0.06				$1.48				$1.39

[a] Due to the net loss incurred in the three months ended December 31, 2017 and September 30, 2017, all the share equivalents were anti-dilutive.

26

AXIS Capital Holdings Limited

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

		At December 31, 2017
		Common Shareholders’ Equity				Outstanding Common Shares net of Treasury Shares			Per share
Closing stock price										$50.26
Book value per common share		$	4,566,264			83,161				$54.91
Dilutive securities: [b]
Restricted units						1,584			(1.03		)
Diluted book value per common share		$	4,566,264			84,745				$53.88
		At December 31, 2016
		Common Shareholders’ Equity				Outstanding Common Shares net of Treasury Shares			Per share
Closing stock price										$65.27
Book value per common share		$	5,146,296			86,441				$59.54
Dilutive securities: [b]
Restricted units						1,876			(1.27		)
Diluted book value per common share		$	5,146,296			88,317				$58.27

[a] Under this method unvested restricted stock awards and units are added to determine the diluted common shares outstanding.

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

27

AXIS Capital Holdings Limited

NON-GAAP OPERATING INCOME [a]

NON-GAAP OPERATING INCOME
		Quarter ended December 31,								Year ended December 31,
		2017				2016				2017				2016
Net income (loss) available to common shareholders		$	(38,081	)		$	130,912			$	(415,779	)		$	465,462
Adjustment for:
Net realized investment (gains) losses		(43,038		)		20,229				(28,226		)		60,525
Associated tax impact		130				(541		)		2,022				1,830
Foreign exchange losses (gains)		44,644				(51,514		)		134,737				(121,295		)
Associated tax impact		(3,535		)		105				(7,777		)		2,114
Re-measurement of deferred tax asset		41,629				—				41,629				—
Associated tax impact		—				—				—				—
Bargain purchase gain		—				—				(15,044		)		—
Associated tax impact		—				—				—				—
Transaction and reorganization expenses		20,748				—				26,718				—
Associated tax impact		(2,618		)		—				(2,839		)		—
Loss on repurchase of preferred shares		—				1,309				—				1,309
Associated tax impact		—				—				—				—
Non-GAAP operating income (loss)		$	19,879			$	100,500			$	(264,559	)		$	409,945
Net earnings (loss) per common share - diluted		$	(0.46	)		$	1.48			$	(4.94	)		$	5.08
Adjustment for:
Net realized investment (gains) losses		(0.52		)		0.23				(0.34		)		0.66
Associated tax impact		—				(0.01		)		0.03				0.02
Foreign exchange losses (gains)		0.54				(0.57		)		1.60				(1.31		)
Associated tax impact		(0.04		)		—				(0.09		)		0.02
Re-measurement of deferred tax asset		0.50				—				0.49				—
Associated tax impact						—				—				—
Bargain purchase gain		—				—				(0.18		)		—
Associated tax impact		—				—				—				—
Transaction and reorganization expenses		0.25				—				0.32				—
Associated tax impact		(0.03		)		—				(0.04		)		—
Loss on repurchase of preferred shares		—				0.01				—				0.01
Associated tax impact		—				—				—				—
Non-GAAP operating income (loss) per share - diluted		$	0.24			$	1.14			$	(3.15	)		$	4.48
Weighted average common shares and common share equivalents - diluted		83,160				88,474				84,108				91,547
Average common shareholders' equity		4,622,982				5,273,477				4,856,280				5,192,668
Annualized return on average common equity		(3.3		)%		9.9		%		(8.6		)%		9.0		%
Annualized non-GAAP operating return on average common equity		1.7		%		7.6		%		(5.4		)%		7.9		%

a] Non-GAAP operating income is a non-GAAP financial measure as defined by Regulation G. A reconciliation of non-GAAP operating income to net income available to common shareholders is presented above.

28

AXIS Capital Holdings Limited

DILUTED TANGIBLE BOOK VALUE PER COMMON SHARE

DILUTED TANGIBLE BOOK VALUE PER COMMON SHARE - TREASURY STOCK METHOD [a]
	December 31,				September 30,				June 30,				March 31,				December 31,				December 31,
	2017				2017				2017				2017				2016				2015
Common shareholders' equity	$	4,566,264			$	4,679,699			$	5,117,695			$	5,104,291			$	5,146,296			$	5,239,039
Less: goodwill	(102,003		)		(48,969		)		(47,148		)		(47,148		)		(47,148		)		(47,148		)
Less: intangible assets	(257,987		)		(38,237		)		(39,072		)		(37,465		)		(37,901		)		(39,710		)
Associated tax impact	46,377				14,386				14,081				13,388				13,096				11,972
Tangible common shareholders' equity	$	4,252,651			$	4,606,879			$	5,045,556			$	5,033,066			$	5,074,343			$	5,164,153
Outstanding diluted common shares net of treasury shares	84,745				84,575				84,655				86,670				88,317				98,241
Diluted book value per common share [b]	$	53.88			$	55.33			$	60.45			$	58.89			$	58.27			$	54.08
Diluted tangible book value per common share [b]	$	50.18			$	54.47			$	59.60			$	58.07			$	57.46			$	53.30

[a] Under this method unvested restricted stock awards and units are added to determine the diluted common shares outstanding. Cash-settled restricted stock unit awards are excluded.

[b] Calculation at December 31, 2015 includes 1,358,380 of additional shares delivered to the Company under the Company's Accelerated Share Repurchase ("ASR") agreement. The shares were delivered to the Company following the early termination of the ASR agreement on January 15, 2016.

29

AXIS Capital Holdings Limited

USE OF NON-GAAP FINANCIAL MEASURES

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. Some of the measurements we use are non-GAAP financial measures under Securities and Exchange Commission ("SEC") rules and regulations. In this document, we present underwriting-related general and administrative expenses, consolidated underwriting income, non-GAAP operating income (in total and on a per share basis), diluted tangible book value per common share and pre-tax total return on cash and investments excluding foreign exchange movements, which are non-GAAP financial measures as defined in SEC Regulation G. We believe that these non-GAAP measures, which may be defined and calculated differently by other companies, better explain and enhance the understanding of our results of operations. However, these measures should not be viewed as a substitute for those determined in accordance with U.S. GAAP.

Underwriting-Related General and Administrative 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 this financial measure is presented in the Segment Information footnote to our Consolidated Financial Statements, this is considered a non-GAAP financial measure when presented elsewhere on a consolidated basis.

Corporate expenses include holding company costs necessary to support our worldwide insurance and reinsurance 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. General and administrative expenses (the most comparable GAAP financial measure to underwriting-related general and administrative expenses) also includes corporate expenses.

The reconciliation of underwriting-related general and administrative expenses to general and administrative expenses, the most comparable GAAP measure, is included in the ''Consolidated Statements of Income - Quarterly'' and ''Consolidated Statements of Income - Year'' sections of this document.

Consolidated Underwriting Income

Consolidated underwriting income is a pre-tax measure of underwriting profitability that takes into account net premiums earned and other insurance related income (losses) as revenues and net losses and loss expenses, acquisition costs and underwriting-related general and administrative costs as expenses. While this measure is presented in the Segment Information footnote to our Consolidated Financial Statements, it is considered a non-GAAP financial measure when presented elsewhere on a consolidated basis.

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.

30

Foreign exchange losses (gains) in our Consolidated Statement of Income 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 losses (gains) 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.

Interest expense and financing costs primarily relate to interest payable on our senior notes. 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.

The bargain purchase gain, recognized upon the acquisition of Aviabel, reflects the amount by which the fair value of the net identifiable assets acquired exceeded the fair value of consideration transferred and should be excluded from consolidated underwriting income since it is not related to the underwriting process.

Transaction and reorganization expenses associated with our acquisition of Novae 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.

Loss on repurchase of preferred shares arose from capital transactions that are not reflective of underlying business performance, and therefore, is excluded from consolidated underwriting income.

Amortization of purchased intangibles are driven by business decisions, the nature and timing of which are not related to the underwriting process and for this reason, these expenses are excluded from consolidated underwriting income.

The re-measurement of deferred tax asset expense recognized in the fourth quarter of 2017 related to the revaluation of our net Deferred Tax Asset ("DTA"), following the reduction in the U.S. corporate income tax rate from 35% to 21% enacted as part of the Tax Cuts and Jobs Act of 2017 ("U.S. Tax Reform"). The nature and timing of the tax expense associated with the U.S. Tax Reform is not related to the underwriting process, and for this reason, this expense is excluded it 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. The reconciliation of consolidated underwriting income to income before income taxes and interest in income (loss) of equity method investments (the most comparable GAAP financial measure) is included in the''Consolidated Statements of Income - Quarterly'' and ''Consolidated Statements of Income - Year'' sections of this document.

Non-GAAP Operating Income

Non-GAAP operating income represents after-tax operational results without consideration of after-tax net realized investment gains (losses), foreign exchange losses (gains), re-measurement of deferred tax asset, bargain purchase gain, transaction and reorganization expenses and loss on repurchase of preferred shares.

31

Although the investment of premiums to generate income and realize investment gains (losses) is an integral part of our operations, the determination to realize investment gains (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 (losses) is somewhat opportunistic for many companies.

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

The re-measurement of deferred tax asset expense recognized in the fourth quarter of 2017 related to the revaluation of our net Deferred Tax Asset ("DTA"), following the reduction in the U.S. corporate income tax rate from 35% to 21% enacted as part of the Tax Cuts and Jobs Act of 2017 ("U.S. Tax Reform"). The nature and timing of the tax expense associated with the U.S. Tax Reform is not related to the underwriting process, and for this reason, this expense is excluded it from consolidated underwriting income.

The bargain purchase gain, recognized upon the acquisition of Aviabel, reflects the amount by which the fair value of the net identifiable assets acquired exceeded the fair value of consideration transferred and is not indicative of future revenues of the company.

Transaction and reorganization expenses associated with our acquisition of Novae 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.

Losses on repurchase of preferred shares arose from capital transactions and, therefore, are not reflective 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), re-measurement of deferred tax asset, bargain purchase gain, transaction and reorganization expenses and loss on repurchase of preferred shares 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), re-measurement of deferred tax asset, bargain purchase gain, transaction and reorganization expenses and loss on repurchase of preferred shares 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 analyses for the same reasons. The reconciliation of non-GAAP operating income to net income available to common shareholders, the most comparable GAAP measure, is presented in the "Non-GAAP Operating Income" section in this document.

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Diluted Tangible Book Value per Common Share

Tangible book value is defined as common shareholders' equity excluding goodwill, intangible assets, and associated tax impact. 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.

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.

Non-GAAP Financial Measures

We present pre-tax total return on cash and investments excluding foreign exchange movements, which measures net investment income (loss), net realized investments gains (losses), interest in income (loss) of equity method investments, and pre-tax change in unrealized gains (losses) generated by our average cash and investment balances which is derived from pre-tax total return on cash and investments and reconciled to the most comparable GAAP financial measure in the "Financial Highlights" section of this document". We believe this presentation enables investors and other users of our financial information to analyze the performance of our investments.

We also present diluted non-GAAP operating income per share and annualized non-GAAP operating return on average common equity ("annualized non-GAAP operating ROACE"), which are derived from the non-GAAP operating income measure and are reconciled to the most comparable GAAP financial measure in the "Non-GAAP Operating Income" section of this document.

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