axislogo1a0121.jpg




AXIS CAPITAL HOLDINGS LIMITED








INVESTOR FINANCIAL SUPPLEMENT

SECOND QUARTER 2020


1









AXIS Capital Holdings Limited
92 Pitts Bay Road
Pembroke HM 08 Bermuda
Contact Information:
Matthew Rohrmann
Investor Contact
(212) 940-3339
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 the Company files with the Securities and Exchange Commission pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934.

2
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
FINANCIAL SUPPLEMENT TABLE OF CONTENTS
   Page(s)
  
i - iv
  
II. Income Statements  
  
  
  
  
  
III. Balance Sheets  
  
b. Cash and Invested Assets:  
  
  
  
  
  
  
IV. Losses Reserve Analysis  
  
  
  
  
V. Share Analysis  
  
  
  
VI. Non-GAAP Financial Measures  
  

3
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
BASIS OF PRESENTATION

AXIS Capital Holdings Limited's ("AXIS Capital" or the "Company") underwriting operations are organized around its global underwriting platforms, AXIS Insurance and AXIS Re. The Company has determined that it has two reportable segments, insurance and reinsurance.

DEFINITIONS AND PRESENTATION
•All financial information contained herein is unaudited, except for the consolidated balance sheet at December 31, 2019 and consolidated statements of operations for the years ended December 31,
2019 and December 31, 2018.
•Amounts may not reconcile due to rounding differences.
•Unless otherwise noted, all data is in thousands, except for ratio information.
•NM - Not meaningful; NA - Not applicable

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts included in this document, including statements regarding our estimates, beliefs, expectations, intentions, strategies or projections are forward-looking statements. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the United States ("U.S.") federal 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. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond management's control.
Forward-looking statements contained in this document may include, but are not limited to, information regarding our estimates of losses related to catastrophes and other large losses including losses related to the COVID-19 pandemic, measurements of potential losses in the fair market value of our investment portfolio and derivative contracts, our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, the outcome of our strategic initiatives, our expectations regarding estimated synergies and the success of the integration of acquired entities, our expectations regarding the estimated benefits and synergies related to our transformation program, 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. These statements involve risks, uncertainties and assumptions. Accordingly, there are or will be important factors that could cause actual events or results to differ materially from those indicated in such statements. We believe that these factors include, but are not limited to, the following:

•the adverse impact of the ongoing COVID-19 pandemic on our business, results of operations, financial condition and liquidity;
•the cyclical nature of the insurance and reinsurance business leading to periods with excess underwriting capacity and unfavorable premium rates;
•the occurrence and magnitude of natural and man-made disasters;
•the impact of global climate change on our business, including the possibility that we do not adequately assess or reserve for the increased frequency and severity of natural catastrophes;
•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 of our key executives;
•a decline in our ratings with rating agencies;
•the 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;
i
axislogo1a0121.jpg
•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 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 to realize the expected synergies resulting from such acquisitions;
•the failure to realize the expected benefits or synergies relating to our transformation initiative;
•changes in tax laws; and
•other factors including but not limited to those described under Item 1A, 'Risk Factors' in our most recent Annual Report on Form 10-K and Part II, Item 1A 'Risk Factors' in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 filed with the Securities and Exchange Commission ("SEC"), as those 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. Readers are urged to carefully consider all such factors as the COVID-19 pandemic may have the effect of heightening many of the other risks and uncertainties described.


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
axislogo1a0121.jpg
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 cover for virtually all types of property, including commercial buildings, residential premises, construction projects and onshore renewable energy installations. This line of business includes primary and excess risks, some of which are catastrophe-exposed.
Marine: provides cover for traditional marine classes, including offshore energy, renewable offshore energy, cargo, liability, recreational marine, fine art, specie, and hull and war. Offshore energy coverage includes physical damage, business interruption, operator's extra expense and liability coverage for all aspects of offshore upstream energy, from exploration and construction through the operation and distribution phases.
Terrorism: provides cover for physical damage and business interruption of an insured following an act of terrorism and includes kidnap and ransom, and crisis management insurance.
Aviation: provides hull and liability, and specific war cover 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. Cover 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.
Professional Lines: provides 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 covers for commercial enterprises, financial institutions, not-for-profit organizations and other professional service providers. This business is predominantly written on a claims-made basis.
Liability: primarily targets primary and low to mid-level excess and umbrella commercial liability risks in the U.S. wholesale markets in addition to primary and excess of loss employers, public, and products liability predominately in the U.K. Target industry sectors include construction, manufacturing, transportation and trucking, and other services.
Accident and Health: includes accidental death, travel insurance and specialty health products for employer and affinity groups.
Discontinued Lines - Novae: includes those lines of business that Novae exited or placed into run-off in the fourth quarter of 2016 and in the first quarter of 2017. These discontinued insurance lines include financial institutions, professional indemnity, international liability, and international direct and facultative property.


iii
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
BASIS OF PRESENTATION
 
BUSINESS DESCRIPTIONS (CONTINUED)

REINSURANCE SEGMENT

Our reinsurance segment provides treaty 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 underlying policies principally cover property-related exposures but other exposures including workers compensation and personal accident are also covered. The principal perils covered by policies in this portfolio include hurricane and windstorm, earthquake, flood, tornado, hail and fire. In some instances, terrorism may be a covered peril or the only peril. This business is written on a proportional and excess of loss basis.
Property: provides protection for property damage and related losses resulting from natural and man-made perils that are covered in the underlying personal and commercial lines insurance policies written by our cedants. The predominant exposure is property damage but other risks, including business interruption and other non-property losses, may also be covered when arising from a covered peril. The most significant perils covered by policies in this portfolio include windstorm, tornado and earthquake, but other perils such as freezes, riots, flood, industrial explosions, fire, hail and a number of other loss events are also included. This business is written on a proportional and excess of loss basis.
Professional Lines: provides protection for directors’ and officers’ liability, employment practices liability, medical malpractice, professional indemnity, environmental liability, cyber and miscellaneous errors and omissions insurance risks. The underlying business is predominantly written on a claims-made basis. This business is written on a proportional and excess of loss basis.
Credit and Surety: provides reinsurance of trade credit insurance products and includes 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. Surety reinsurance provides protection 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. Mortgage reinsurance is also provided to mortgage guaranty insurers and U.S. government sponsored entities for losses related to credit risk transfer into the private sector.
Motor: provides protection 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. Traditional proportional and non-proportional reinsurance as well as structured solutions are offered.
Liability: provides protection to insurers of admitted casualty business, excess and surplus lines casualty business and specialty casualty programs. The primary focus of the underlying business is general liability, workers' compensation, auto liability, and excess casualty.
Agriculture: provides protection 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. This business is written on a proportional and aggregate stop loss reinsurance basis.
Engineering: provides protection 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 cover for losses arising from operational failures of machinery, plant and equipment, and electronic equipment as well as business interruption.
Marine and Other: includes marine and aviation reinsurance.
Accident and Health: includes personal accident, specialty health, accidental death, travel, life and disability reinsurance products which are offered on a proportional and catastrophic or per life excess of events loss basis.
Discontinued Lines - Novae: includes those lines of business that Novae exited or placed into run-off in the fourth quarter of 2016 and in the first quarter of 2017. These discontinued reinsurance lines include motor reinsurance, general liability reinsurance, and international facultative property.



iv
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
FINANCIAL HIGHLIGHTS
  Three months ended June 30,Six months ended June 30,
  20202019Change20202019Change
HIGHLIGHTSGross premiums written$1,716,183  $1,647,760  4.2 %$4,147,341  $4,230,986  (2.0 %)
Gross premiums written - Insurance60.5 %58.8 %1.7  pts47.7 %43.0 %4.7  pts
Gross premiums written - Reinsurance39.5 %41.2 %(1.7) pts52.3 %57.0 %(4.7) pts
Net premiums written$1,055,934  $1,070,321  (1.3 %)$2,734,978  $2,847,381  (3.9 %)
Net premiums earned$1,104,003  $1,123,607  (1.7 %)$2,192,628  $2,257,819  (2.9 %)
Net premiums earned - Insurance52.3 %47.8 %4.5  pts52.0 %48.5 %3.5  pts
Net premiums earned - Reinsurance47.7 %52.2 %(4.5) pts48.0 %51.5 %(3.5) pts
Net income (loss) available (attributable) to common shareholders$112,477  $166,387  (32.4 %)$(72,908) $264,515  nm
Operating income (loss) [a]
71,503  136,991  (47.8 %)(92,908) 241,601  nm
Annualized return on average common equity [b]
10.0 %14.3 %(4.3) pts(3.1 %)11.7 %(14.8) pts
Annualized operating return on average common equity [c]
6.3 %11.8 %(5.5) pts(3.9 %)10.7 %(14.6) pts
Total shareholders’ equity$5,297,820  $5,566,477  (4.8 %)$5,297,820  $5,566,477  (4.8 %)
PER COMMON SHARE AND COMMON SHARE DATAEarnings (loss) per diluted common share$1.33  $1.97  (32.5 %)($0.87) $3.14  nm
Operating income (loss) per diluted common share [d]
$0.84  $1.62  (48.1 %)($1.11) $2.86  nm
Weighted average diluted common shares outstanding84,600  84,401  0.2 %84,198  84,338  (0.2 %)
Book value per common share$56.32  $57.08  (1.3 %)$56.32  $57.08  (1.3 %)
Book value per diluted common share (treasury stock method)$55.09  $55.99  (1.6 %)$55.09  $55.99  (1.6 %)
Tangible book value per diluted common share (treasury stock method) [a]
$51.79  $52.54  (1.4 %)$51.79  $52.54  (1.4 %)
FINANCIAL RATIOSCurrent accident year loss ratio excluding catastrophe and weather-related losses58.0 %59.7 %(1.7) pts57.5 %59.3 %(1.8) pts
Catastrophe and weather-related losses ratio3.5 %2.3 %1.2  pts15.2 %1.6 %13.6  pts
Current accident year loss ratio61.5 %62.0 %(0.5) pts72.7 %60.9 %11.8  pts
Prior year reserve development ratio(0.2 %)(2.2 %)2.0  pts(0.4 %)(1.7 %)1.3  pts
Net losses and loss expenses ratio61.3 %59.8 %1.5  pts72.3 %59.2 %13.1  pts
Acquisition cost ratio20.7 %21.6 %(0.9) pts21.3 %22.3 %(1.0) pts
General and administrative expense ratio [e]
12.7 %14.7 %(2.0) pts13.5 %15.0 %(1.5) pts
Combined ratio94.7 %96.1 %(1.4) pts107.1 %96.5 %10.6  pts
INVESTMENT DATATotal assets$26,359,173  $25,870,174  1.9 %$26,359,173  $25,870,174  1.9 %
Total cash and invested assets [f]
15,224,701  15,319,839  (0.6 %)15,224,701  15,319,839  (0.6 %)
Net investment income45,040  137,949  (67.4 %)138,140  245,254  (43.7 %)
Net investment gains (losses)53,043  21,225  nm$(9,831) $33,996  nm
Book yield of fixed maturities2.5 %3.0 %(0.5) pts2.5 %3.0 %(0.5) pts
[a] Operating income (loss), operating income (loss) per diluted common share, annualized operating return on average common equity ("operating ROACE") and tangible book value per diluted common share are non-GAAP financial measures as defined by Regulation G. The reconciliations to the most comparable GAAP financial measures, net income (loss) available (attributable) to common shareholders, earnings (loss) per diluted common share, annualized return on average common equity ("ROACE") and book value per diluted common share, respectively, and a discussion of the rationale for the presentation of these items are provided later in this document. Loss per diluted common share and operating loss per diluted common share for the six months ended June 30, 2020 were calculated using weighted average common shares outstanding due to the net loss attributable to common shareholders and operating loss recognized in the period.
[b] Annualized ROACE is calculated by dividing annualized net income (loss) available (attributable) to common shareholders for the period by the average common shareholders’ equity determined using the
common shareholders’ equity balances at the beginning and end of the period.
[c] Annualized operating ROACE is calculated by dividing annualized operating income (loss) for the period by the average common shareholders’ equity determined using the common shareholders’ equity balances at the beginning and end of the period.
[d] Operating income (loss) per diluted common share is calculated by dividing operating income (loss) for the period by weighted average diluted common shares outstanding.
[e] Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.
[f] Total cash and invested assets represents the total cash and cash equivalents, fixed maturities, equity securities, mortgage loans, other investments, equity method investments, short-term investments, accrued interest receivable and net receivable (payable) for investments sold (purchased).
1
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS - AS REPORTED, U.S. GAAP
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2020 AND 2019
Three months ended June 30,Six months ended June 30,
2020201920202019
Revenues
Net premiums earned$1,104,003  $1,123,607  $2,192,628  $2,257,819  
Net investment income45,040  137,949  138,140  245,254  
Net investment gains (losses)53,043  21,225  (9,831) 33,996  
Other insurance related income (loss)1,996  2,925  (6,710) 9,852  
Total revenues1,204,082  1,285,706  2,314,227  2,546,921  
Expenses
Net losses and loss expenses676,261  672,463  1,584,335  1,336,491  
Acquisition costs228,502  242,363  467,152  502,781  
General and administrative expenses140,652  165,395  297,712  340,486  
Foreign exchange losses (gains)9,709  (12,381) (51,974) (5,325) 
Interest expense and financing costs20,595  15,607  44,067  31,502  
Reorganization expenses392  3,276  (591) 18,096  
Amortization of value of business acquired1,285  7,194  3,083  20,298  
Amortization of intangible assets2,855  2,912  5,725  5,914  
Total expenses1,080,251  1,096,829  2,349,509  2,250,243  
Income (loss) before income taxes and interest in income (loss) of equity method investments123,831  188,877  (35,282) 296,678  
Income tax expense(10,893) (14,469) (6,026) (15,703) 
Interest in income (loss) of equity method investments7,102  2,635  (16,475) 4,853  
Net income (loss)120,040  177,043  (57,783) 285,828  
Preferred share dividends7,563  10,656  15,125  21,313  
Net income (loss) available (attributable) to common shareholders$112,477  $166,387  $(72,908) $264,515  




2
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS - QUARTER
Q2 2020Q1 2020Q4 2019Q3 2019Q2 2019Q2 2018
UNDERWRITING REVENUES
Gross premiums written$1,716,183  $2,431,158  $1,261,366  $1,406,506  $1,647,760  $1,650,825  
Ceded premiums written(660,249) (752,114) (475,212) (550,425) (577,439) (650,370) 
Net premiums written1,055,934  1,679,044  786,154  856,081  1,070,321  1,000,455  
Gross premiums earned1,694,861  1,657,412  1,789,084  1,756,116  1,680,663  1,688,953  
Ceded premiums earned(590,858) (568,787) (617,033) (598,809) (557,056) (503,405) 
Net premiums earned1,104,003  1,088,625  1,172,051  1,157,307  1,123,607  1,185,548  
Other insurance related income (loss)1,996  (8,707) 5,059  1,533  2,925  3,730  
Total underwriting revenues1,105,999  1,079,918  1,177,110  1,158,840  1,126,532  1,189,278  
UNDERWRITING EXPENSES
Net losses and loss expenses676,261  908,073  857,394  850,913  672,463  706,641  
Acquisition costs228,502  238,650  261,775  260,026  242,363  231,952  
Underwriting-related general and administrative expenses [a]
113,824  129,962  107,195  126,619  133,047  134,959  
Total underwriting expenses1,018,587  1,276,685  1,226,364  1,237,558  1,047,873  1,073,552  
UNDERWRITING INCOME (LOSS) [b]87,412  (196,767) (49,254) (78,718) 78,659  115,726  
OTHER (EXPENSES) REVENUES
Net investment income45,040  93,101  117,557  115,763  137,949  109,960  
Net investment gains (losses)53,043  (62,877) 42,712  14,527  21,225  (45,093) 
Corporate expenses [a]
(26,828) (27,098) (31,628) (28,903) (32,348) (30,254) 
Foreign exchange (losses) gains(9,709) 61,683  (52,827) 59,543  12,381  44,099  
Interest expense and financing costs(20,595) (23,472) (18,562) (18,042) (15,607) (17,098) 
Reorganization expenses(392) 982  (8,074) (11,215) (3,276) (18,772) 
Amortization of value of business acquired(1,285) (1,799) (2,056) (4,368) (7,194) (53,407) 
Amortization of intangible assets(2,855) (2,870) (2,853) (2,831) (2,912) (4,029) 
Total other (expenses) revenues36,419  37,650  44,269  124,474  110,218  (14,594) 
INCOME (LOSS) BEFORE INCOME TAXES AND INTEREST IN INCOME (LOSS) OF EQUITY METHOD INVESTMENTS123,831  (159,117) (4,985) 45,756  188,877  101,132  
Income tax (expense) benefit(10,893) 4,867  159  (8,147) (14,469) (996) 
Interest in income (loss) of equity method investments7,102  (23,577) 4,073  792  2,635  3,378  
NET INCOME (LOSS)120,040  (177,827) (753) 38,401  177,043  103,514  
Preferred share dividends(7,563) (7,563) (9,144) (10,656) (10,656) (10,656) 
NET INCOME (LOSS) AVAILABLE (ATTRIBUTABLE) TO COMMON SHAREHOLDERS$112,477  $(185,390) $(9,897) $27,745  $166,387  $92,858  
[a] Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, also includes corporate expenses.
[b] Consolidated underwriting income (loss) is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to income (loss) before income taxes and interest in income (loss) of equity method investments, the most comparable GAAP financial measure, is presented above and in the 'Consolidated Statements of Operations - Year' section of this document.
3
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED KEY RATIOS - QUARTER
Q2 2020Q1 2020Q4 2019Q3 2019Q2 2019Q2 2018
KEY RATIOS/PER SHARE DATA
Current accident year loss ratio excluding catastrophe and weather-related losses58.0 %57.1 %62.2 %61.7 %59.7 %61.5 %
Catastrophe and weather-related losses ratio3.5 %26.9 %12.1 %14.1 %2.3 %3.2 %
Current accident year loss ratio61.5 %84.0 %74.3 %75.8 %62.0 %64.7 %
Prior year reserve development ratio(0.2 %)(0.6 %)(1.1 %)(2.3 %)(2.2 %)(5.1 %)
Net losses and loss expenses ratio61.3 %83.4 %73.2 %73.5 %59.8 %59.6 %
Acquisition cost ratio20.7 %21.9 %22.3 %22.5 %21.6 %19.6 %
General and administrative expense ratio [a]
12.7 %14.5 %11.8 %13.4 %14.7 %13.9 %
Combined ratio94.7 %119.8 %107.3 %109.4 %96.1 %93.1 %
Weighted average common shares outstanding84,303  84,094  83,957  83,947  83,941  83,539  
Weighted average diluted common shares outstanding84,600  84,094  83,957  84,582  84,401  83,984  
Earnings (loss) per common share$1.33  ($2.20) ($0.12) $0.33  $1.98  $1.11  
Earnings (loss) per diluted common share$1.33  ($2.20) ($0.12) $0.33  $1.97  $1.11  
Annualized ROACE10.0 %nm(0.8 %)2.3 %14.3 %8.3 %
Annualized operating ROACE6.3 %nm0.4 %(2.7 %)11.8 %9.2 %
[a] Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.
4
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS - YEAR
 Six months ended June 30,Year ended December 31,
 20202019201820192018
UNDERWRITING REVENUES
Gross premiums written$4,147,341  $4,230,986  $4,313,620  $6,898,858  $6,910,065  
Ceded premiums written(1,412,363) (1,383,605) (1,327,294) (2,409,243) (2,251,103) 
Net premiums written2,734,978  2,847,381  2,986,326  4,489,615  4,658,962  
Gross premiums earned3,352,273  3,365,477  3,328,786  6,910,677  6,882,217  
Ceded premiums earned(1,159,645) (1,107,658) (975,836) (2,323,499) (2,090,722) 
Net premiums earned2,192,628  2,257,819  2,352,950  4,587,178  4,791,495  
Other insurance related income (loss)(6,710) 9,852  10,335  16,444  10,622  
Total underwriting revenues2,185,918  2,267,671  2,363,285  4,603,622  4,802,117  
UNDERWRITING EXPENSES
Net losses and loss expenses1,584,335  1,336,491  1,367,986  3,044,798  3,190,287  
Acquisition costs467,152  502,781  461,212  1,024,582  968,835  
Underwriting-related general and administrative expenses [a]
243,786  271,920  274,624  505,735  519,168  
Total underwriting expenses2,295,273  2,111,192  2,103,822  4,575,115  4,678,290  
UNDERWRITING INCOME (LOSS)(109,355) 156,479  259,463  28,507  123,827  
OTHER (EXPENSES) REVENUES
Net investment income138,140  245,254  210,961  478,572  438,507  
Net investment gains (losses)(9,831) 33,996  (59,923) 91,233  (150,218) 
Corporate expenses [a]
(53,926) (68,566) (60,425) (129,096) (108,221) 
Foreign exchange gains51,974  5,325  6,239  12,041  29,165  
Interest expense and financing costs(44,067) (31,502) (33,861) (68,107) (67,432) 
Reorganization expenses591  (18,096) (31,825) (37,384) (66,940) 
Amortization of value of business acquired(3,083) (20,298) (110,517) (26,722) (172,332) 
Amortization of intangible assets(5,725) (5,914) (6,811) (11,597) (13,814) 
Total other (expenses) revenues74,073  140,199  (86,162) 308,940  (111,285) 
INCOME (LOSS) BEFORE INCOME TAXES AND INTEREST IN INCOME (LOSS) OF EQUITY METHOD INVESTMENTS(35,282) 296,678  173,301  337,447  12,542  
Income tax (expense) benefit(6,026) (15,703) 40  (23,692) 29,486  
Interest in income (loss) of equity method investments(16,475) 4,853  3,378  9,718  993  
NET INCOME (LOSS)(57,783) 285,828  176,719  323,473  43,021  
Preferred share dividends(15,125) (21,313) (21,313) (41,112) (42,625) 
NET INCOME (LOSS) AVAILABLE (ATTRIBUTABLE) TO COMMON SHAREHOLDERS$(72,908) $264,515  $155,406  $282,361  $396  
[a]   Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to total general and administrative expenses, the most comparable GAAP financial measure, also includes corporate expenses.

5
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED KEY RATIOS - YEAR
 Six months ended June 30,Year ended December 31,
 20202019201820192018
KEY RATIOS/PER SHARE DATA
Current accident year loss ratio excluding catastrophe and weather-related losses57.5 %59.3 %59.9 %60.6 %61.7 %
Catastrophe and weather-related losses ratio15.2 %1.6 %3.1 %7.5 %9.0 %
Current accident year loss ratio72.7 %60.9 %63.0 %68.1 %70.7 %
Prior year reserve development ratio(0.4 %)(1.7 %)(4.9 %)(1.7 %)(4.1 %)
Net losses and loss expenses ratio72.3 %59.2 %58.1 %66.4 %66.6 %
Acquisition cost ratio21.3 %22.3 %19.6 %22.3 %20.2 %
General and administrative expense ratio [a]
13.5 %15.0 %14.3 %13.9 %13.1 %
Combined ratio107.1 %96.5 %92.0 %102.6 %99.9 %
Weighted average common shares outstanding84,198  83,834  83,431  83,894  83,501  
Weighted average diluted common shares outstanding84,198  84,338  83,853  84,473  84,007  
Earnings (loss) per common share($0.87) $3.16  $1.86  $3.37  $—  
Earnings (loss) per diluted common share($0.87) $3.14  $1.85  $3.34  $—  
Annualized ROACE(3.1 %)11.7 %6.9 %6.3 %— %
Annualized operating ROACE(3.9 %)10.7 %10.0 %4.7 %3.6 %
[a]     Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.
6
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED SEGMENT DATA
 Three months ended June 30, 2020Six months ended June 30, 2020
 InsuranceReinsuranceTotalInsuranceReinsuranceTotal
UNDERWRITING REVENUES
Gross premiums written$1,037,568  $678,615  $1,716,183  $1,978,283  $2,169,058  $4,147,341  
Ceded premiums written(434,807) (225,442) (660,249) (793,872) (618,491) (1,412,363) 
Net premiums written602,761  453,173  1,055,934  1,184,411  1,550,567  2,734,978  
Gross premiums earned952,241  742,620  1,694,861  1,884,319  1,467,954  3,352,273  
Ceded premiums earned(375,222) (215,636) (590,858) (745,236) (414,409) (1,159,645) 
Net premiums earned577,019  526,984  1,104,003  1,139,083  1,053,545  2,192,628  
Other insurance related income (loss)755  1,241  1,996  1,403  (8,113) (6,710) 
Total underwriting revenues577,774  528,225  1,105,999  1,140,486  1,045,432  2,185,918  
UNDERWRITING EXPENSES
Net losses and loss expenses337,367  338,894  676,261  809,180  775,155  1,584,335  
Acquisition costs116,259  112,243  228,502  229,010  238,142  467,152  
Underwriting-related general and administrative expenses89,751  24,073  113,824  190,529  53,257  243,786  
Total underwriting expenses543,377  475,210  1,018,587  1,228,719  1,066,554  2,295,273  
UNDERWRITING INCOME (LOSS) $34,397  $53,015  $87,412  $(88,233) $(21,122) $(109,355) 
Catastrophe and weather-related losses, net of reinstatement premiums$15,786  $20,261  $36,047  $193,361  $142,561  $335,922  
Net favorable prior year reserve development$420  $2,235  $2,655  $4,251  $4,516  $8,767  
KEY RATIOS
Current accident year loss ratio excluding catastrophe and weather-related losses55.6 %60.6 %58.0 %54.9 %60.4 %57.5 %
Catastrophe and weather-related losses ratio2.9 %4.1 %3.5 %16.5 %13.6 %15.2 %
Current accident year loss ratio58.5 %64.7 %61.5 %71.4 %74.0 %72.7 %
Prior year reserve development ratio— %(0.4 %)(0.2 %)(0.4 %)(0.4 %)(0.4 %)
Net losses and loss expenses ratio58.5 %64.3 %61.3 %71.0 %73.6 %72.3 %
Acquisition cost ratio20.1 %21.3 %20.7 %20.1 %22.6 %21.3 %
Underwriting-related general and administrative expense ratio15.6 %4.6 %10.3 %16.8 %5.0 %11.0 %
Corporate expense ratio2.4 %2.5 %
Combined ratio94.2 %90.2 %94.7 %107.9 %101.2 %107.1 %


7
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
GROSS PREMIUMS WRITTEN BY SEGMENT BY LINE OF BUSINESS
       Six months ended June 30,Year ended December 31,
 Q2 2020Q1 2020Q4 2019Q3 2019Q2 2019Q2 2018202020192019
INSURANCE SEGMENT
Property$278,841  $223,603  $242,446  $241,517  $259,295  $344,737  $502,444  $459,797  $943,760  
Marine116,398  156,296  73,780  91,161  99,389  95,690  272,694  246,368  411,309  
Terrorism11,008  16,520  13,317  17,284  15,157  15,812  27,528  29,519  60,120  
Aviation23,794  17,230  20,838  17,623  18,539  21,048  41,024  36,209  74,670  
Credit and Political Risk28,002  47,675  40,487  32,528  36,076  30,736  75,677  81,983  154,999  
Professional Lines346,338  258,391  356,321  272,362  321,284  297,243  604,729  548,592  1,177,274  
Liability204,398  170,878  180,951  186,253  190,030  150,167  375,276  332,672  699,876  
Accident and Health27,419  51,062  30,876  34,054  28,126  69,860  78,480  79,174  144,103  
Discontinued Lines - Novae1,370  (940) 2,592  2,120  429  1,351  431  5,107  9,820  
TOTAL INSURANCE SEGMENT$1,037,568  $940,715  $961,608  $894,902  $968,325  $1,026,644  $1,978,283  $1,819,421  $3,675,931  
REINSURANCE SEGMENT
Catastrophe$189,706  $262,283  $20,346  $94,833  $245,203  $148,304  $451,990  $603,336  $718,514  
Property54,763  133,189  20,318  67,972  43,135  60,293  187,952  215,877  304,166  
Professional Lines111,725  123,570  34,789  23,540  92,915  116,273  235,295  202,743  261,072  
Credit and Surety50,332  100,739  28,375  50,989  38,465  52,685  151,070  190,369  269,733  
Motor42,970  279,132  21,273  25,367  6,846  43,279  322,102  288,248  334,887  
Liability149,635  218,896  88,479  146,690  125,990  91,343  368,531  311,310  546,479  
Agriculture43,896  18,248  23,369  5,074  70,077  53,953  62,144  196,517  224,961  
Engineering3,006  15,920  17,821  8,841  7,600  6,604  18,926  30,365  57,028  
Marine and Other25,867  29,993  6,675  9,727  22,042  13,631  55,861  58,379  74,781  
Accident and Health6,625  307,678  38,881  78,474  27,723  37,808  314,303  315,315  432,670  
Discontinued Lines - Novae90  795  (568) 97  (561) 8  884  (894) (1,364) 
TOTAL REINSURANCE SEGMENT$678,615  $1,490,443  $299,758  $511,604  $679,435  $624,181  $2,169,058  $2,411,565  $3,222,927  
CONSOLIDATED TOTAL$1,716,183  $2,431,158  $1,261,366  $1,406,506  $1,647,760  $1,650,825  $4,147,341  $4,230,986  $6,898,858  








8
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED SEGMENT DATA - QUARTER AND PRIOR YEAR
Year ended December 31,
Q2 2020Q1 2020Q4 2019Q3 2019Q2 2019Q2 20182019
UNDERWRITING REVENUES
Gross premiums written$1,716,183  $2,431,158  $1,261,366  $1,406,506  $1,647,760  $1,650,825  $6,898,858  
Ceded premiums written(660,249) (752,114) (475,212) (550,425) (577,439) (650,370) (2,409,243) 
Net premiums written1,055,934  1,679,044  786,154  856,081  1,070,321  1,000,455  4,489,615  
Gross premiums earned1,694,861  1,657,412  1,789,084  1,756,116  1,680,663  1,688,953  6,910,677  
Ceded premiums earned(590,858) (568,787) (617,033) (598,809) (557,056) (503,405) (2,323,499) 
Net premiums earned1,104,003  1,088,625  1,172,051  1,157,307  1,123,607  1,185,548  4,587,178  
Other insurance related income (loss)1,996  (8,707) 5,059  1,533  2,925  3,730  16,444  
  Total underwriting revenues1,105,999  1,079,918  1,177,110  1,158,840  1,126,532  1,189,278  4,603,622  
UNDERWRITING EXPENSES
Net losses and loss expenses676,261  908,073  857,394  850,913  672,463  706,641  3,044,798  
Acquisition costs228,502  238,650  261,775  260,026  242,363  231,952  1,024,582  
Underwriting-related general and administrative expenses113,824  129,962  107,195  126,619  133,047  134,959  505,735  
  Total underwriting expenses1,018,587  1,276,685  1,226,364  1,237,558  1,047,873  1,073,552  4,575,115  
UNDERWRITING INCOME (LOSS)$87,412  $(196,767) $(49,254) $(78,718) $78,659  $115,726  $28,507  
Catastrophe and weather-related losses, net of reinstatement premiums$36,047  $299,695  $140,000  $159,869  $25,564  $38,210  $336,117  
Net favorable prior year reserve development$2,655  $6,113  $13,881  $26,727  $23,621  $60,116  $78,900  
KEY RATIOS
Current accident year loss ratio excluding catastrophe and weather-related losses58.0 %57.1 %62.2 %61.7 %59.7 %61.5 %60.6 %
Catastrophe and weather-related losses ratio3.5 %26.9 %12.1 %14.1 %2.3 %3.2 %7.5 %
Current accident year loss ratio61.5 %84.0 %74.3 %75.8 %62.0 %64.7 %68.1 %
Prior year reserve development ratio(0.2 %)(0.6 %)(1.1 %)(2.3 %)(2.2 %)(5.1 %)(1.7 %)
Net losses and loss expenses ratio61.3 %83.4 %73.2 %73.5 %59.8 %59.6 %66.4 %
Acquisition cost ratio20.7 %21.9 %22.3 %22.5 %21.6 %19.6 %22.3 %
Underwriting-related general and administrative expenses ratio12.7 %14.5 %11.8 %13.4 %14.7 %13.9 %13.9 %
Combined ratio94.7 %119.8 %107.3 %109.4 %96.1 %93.1 %102.6 %

9
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
INSURANCE SEGMENT DATA - QUARTER AND PRIOR YEAR
Year ended December 31,
Q2 2020Q1 2020Q4 2019Q3 2019Q2 2019Q2 20182019
UNDERWRITING REVENUES
Gross premiums written$1,037,568  $940,715  $961,608  $894,902  $968,325  $1,026,644  $3,675,931  
Ceded premiums written(434,807) (359,065) (390,651) (377,852) (376,416) (428,465) (1,466,776) 
Net premiums written602,761  581,650  570,957  517,050  591,909  598,179  2,209,155  
Gross premiums earned952,241  932,078  927,599  901,150  884,480  924,704  3,623,180  
Ceded premiums earned(375,222) (370,014) (367,989) (364,699) (347,220) (347,433) (1,433,097) 
Net premiums earned577,019  562,064  559,610  536,451  537,260  577,271  2,190,083  
Other insurance related income (loss)755  647  1,079  733  (695) 1,214  2,858  
Total underwriting revenues577,774  562,711  560,689  537,184  536,565  578,485  2,192,942  
UNDERWRITING EXPENSES
Net losses and loss expenses337,367  471,812  317,234  338,966  308,703  328,773  1,278,679  
Acquisition costs116,259  112,751  123,300  115,551  111,655  90,864  468,281  
Underwriting-related general and administrative expenses89,751  100,778  90,472  100,559  104,898  102,369  401,963  
Total underwriting expenses543,377  685,341  531,006  555,076  525,256  522,006  2,148,923  
UNDERWRITING INCOME (LOSS)$34,397  $(122,630) $29,683  $(17,892) $11,309  $56,479  $44,019  
Catastrophe and weather-related losses, net of reinstatement premiums$15,786  $177,583  $19,900  $41,313  $14,483  $22,922  $83,700  
Net favorable prior year reserve development$420  $3,832  $10,455  $14,609  $21,326  $24,294  $53,302  
KEY RATIOS
Current accident year loss ratio excluding catastrophe and weather-related losses55.6 %54.2 %55.0 %58.2 %58.7 %57.2 %57.0 %
Catastrophe and weather-related losses ratio2.9 %30.4 %3.6 %7.7 %2.7 %4.0 %3.8 %
Current accident year loss ratio58.5 %84.6 %58.6 %65.9 %61.4 %61.2 %60.8 %
Prior year reserve development ratio— %(0.7 %)(1.9 %)(2.7 %)(3.9 %)(4.2 %)(2.4 %)
Net losses and loss expenses ratio58.5 %83.9 %56.7 %63.2 %57.5 %57.0 %58.4 %
Acquisition cost ratio20.1 %20.1 %22.0 %21.5 %20.8 %15.7 %21.4 %
Underwriting-related general and administrative expenses ratio15.6 %17.9 %16.2 %18.8 %19.5 %17.7 %18.3 %
Combined ratio94.2 %121.9 %94.9 %103.5 %97.8 %90.4 %98.1 %

10
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
REINSURANCE SEGMENT DATA - QUARTER AND PRIOR YEAR
Year ended December 31,
Q2 2020Q1 2020Q4 2019Q3 2019Q2 2019Q2 20182019
UNDERWRITING REVENUES
Gross premiums written$678,615  $1,490,443  $299,758  $511,604  $679,435  $624,181  $3,222,927  
Ceded premiums written(225,442) (393,049) (84,561) (172,573) (201,023) (221,905) (942,467) 
Net premiums written453,173  1,097,394  215,197  339,031  478,412  402,276  2,280,460  
Gross premiums earned742,620  725,334  861,485  854,966  796,183  764,249  3,287,497  
Ceded premiums earned(215,636) (198,773) (249,044) (234,110) (209,836) (155,972) (890,403) 
Net premiums earned526,984  526,561  612,441  620,856  586,347  608,277  2,397,094  
Other insurance related income (loss)1,241  (9,354) 3,980  800  3,620  2,516  13,586  
Total underwriting revenues528,225  517,207  616,421  621,656  589,967  610,793  2,410,680  
UNDERWRITING EXPENSES
Net losses and loss expenses338,894  436,261  540,160  511,947  363,760  377,868  1,766,119  
Acquisition costs112,243  125,899  138,475  144,475  130,708  141,088  556,301  
Underwriting-related general and administrative expenses24,073  29,184  16,723  26,060  28,149  32,590  103,772  
Total underwriting expenses475,210  591,344  695,358  682,482  522,617  551,546  2,426,192  
UNDERWRITING INCOME (LOSS)$53,015  $(74,137) $(78,937) $(60,826) $67,350  $59,247  $(15,512) 
Catastrophe and weather-related losses, net of reinstatement premiums$20,261  $122,112  $120,100  $118,556  $11,081  $15,288  $252,417  
Net favorable prior year reserve development$2,235  $2,281  $3,426  $12,118  $2,295  $35,822  $25,598  
KEY RATIOS
Current accident year loss ratio excluding catastrophe and weather-related losses60.6 %60.2 %68.9 %64.8 %60.5 %65.5 %64.0 %
Catastrophe and weather-related losses ratio4.1 %23.1 %19.9 %19.6 %1.9 %2.5 %10.7 %
Current accident year loss ratio64.7 %83.3 %88.8 %84.4 %62.4 %68.0 %74.7 %
Prior year reserve development ratio(0.4 %)(0.4 %)(0.6 %)(1.9 %)(0.4 %)(5.9 %)(1.0 %)
Net losses and loss expenses ratio64.3 %82.9 %88.2 %82.5 %62.0 %62.1 %73.7 %
Acquisition cost ratio21.3 %23.9 %22.6 %23.3 %22.3 %23.2 %23.2 %
Underwriting-related general and administrative expense ratio4.6 %5.5 %2.7 %4.1 %4.8 %5.4 %4.3 %
Combined ratio90.2 %112.3 %113.5 %109.9 %89.1 %90.7 %101.2 %




11
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
STRATEGIC CAPITAL PARTNERS
Three months ended June 30,Six months ended June 30,
2020201920202019
TOTAL MANAGED PREMIUMS [a]InsuranceReinsuranceTotalInsuranceReinsuranceTotalInsuranceReinsuranceTotalInsuranceReinsuranceTotal
Total Managed Premiums$1,037,568  $678,615  $1,716,183  $968,325  $679,435  $1,647,760  $1,978,283  $2,169,058  $4,147,341  $1,819,421  $2,411,565  $4,230,986  
Premiums ceded to Harrington Re
4,081  59,583  63,664  1,620  47,752  49,372  5,200  173,134  178,334  2,462  155,587  158,049  
Premiums ceded to Other Strategic Capital Partners
17,266  165,859  183,125  14,390  153,271  167,660  35,800  445,357  481,157  28,828  529,746  558,574  
Premiums ceded to Other Reinsurers
413,460  —  413,460  360,406  —  360,406  752,872  —  752,872  666,982  —  666,982  
Net premiums written$602,761  $453,173  $1,055,934  $591,909  $478,412  $1,070,321  $1,184,411  $1,550,567  $2,734,978  $1,121,149  $1,726,232  $2,847,381  
FEE INCOME FROM STRATEGIC CAPITAL PARTNERS [b]
Fee income$2,713  $13,600  $16,313  $1,638  $17,517  $19,155  $5,419  $26,569  $31,988  $3,840  $35,097  $38,937  
[a] Total managed premiums represents gross premiums written of $1.7 billion and $1.6 billion for the three months ended June 30, 2020 and 2019, respectively, and $4.1 billion and $4.2 billion for the six months ended June 30, 2020 and 2019, respectively and includes premiums written by the Insurance and Reinsurance segments on behalf of strategic capital partners and other reinsurers. Premiums ceded to strategic capital partners and other reinsurers by AXIS Insurance and AXIS Re are presented above.
[b] Fee income from strategic capital partners represents service fees and reimbursement of expenses from strategic capital partners. Fee income from strategic capital partners included $0.8 million and $3.3 million in other insurance related income (loss) for the three months ended June 30, 2020 and 2019, respectively and $1.6 million and $8.0 million for the six months ended June 30, 2020 and 2019, respectively. It also included $15.5 million and $15.8 million as an offset to general and administrative expenses for the three months ended June 30, 2020 and 2019, respectively and $30.4 million and $30.9 million for the six months ended June 30, 2020 and 2019, respectively.



12
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
NET INVESTMENT INCOME - QUARTER AND YEAR
       Six months ended June 30,
 Q2 2020Q1 2020Q4 2019Q3 2019Q2 2019Q2 201820202019
Fixed maturities$80,459  $89,943  $98,990  $96,311  $97,370  $88,320  $170,402  $188,752  
Other investments(37,580) (2,120) 10,767  11,143  31,232  14,541  (39,700) 38,128  
Equity securities2,263  2,125  2,678  2,232  3,197  3,158  4,387  5,525  
Mortgage loans3,660  4,053  3,977  3,984  3,689  3,357  7,713  6,752  
Cash and cash equivalents2,392  4,930  5,908  7,034  8,138  5,627  7,323  13,940  
Short-term investments366  1,498  1,077  973  1,108  1,645  1,863  5,002  
Gross investment income51,560  100,429  123,397  121,677  144,734  116,648  151,988  258,099  
Investment expenses(6,520) (7,328) (5,840) (5,914) (6,785) (6,688) (13,848) (12,845) 
Net investment income$45,040  $93,101  $117,557  $115,763  $137,949  $109,960  $138,140  $245,254  


13
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED BALANCE SHEETS
June 30,March 31,December 31,September 30,June 30,June 30,
202020202019201920192018
ASSETS
Investments:
Fixed maturities, available for sale, at fair value$12,046,415  $12,076,186  $12,468,205  $12,616,241  $12,522,955  $11,739,305  
Equity securities, at fair value378,860  404,945  474,207  429,903  433,407  417,212  
Mortgage loans, held for investment, at fair value524,757  517,181  432,748  407,790  394,179  344,721  
Other investments, at fair value768,635  797,808  770,923  779,200  802,064  916,191  
Equity method investments101,346  94,244  117,821  113,748  112,956  110,488  
Short-term investments, at fair value34,337  77,101  38,471  12,539  32,421  168,944  
Total investments13,854,350  13,967,465  14,302,375  14,359,421  14,297,982  13,696,861  
Cash and cash equivalents1,648,833  1,241,063  1,576,457  1,208,551  1,094,714  1,526,693  
Accrued interest receivable68,880  76,569  78,085  81,371  82,567  79,109  
Insurance and reinsurance premium balances receivable3,527,147  3,485,043  3,071,390  3,322,316  3,732,529  3,810,316  
Reinsurance recoverable on unpaid losses and loss expenses4,160,521  4,101,579  3,877,756  3,705,793  3,564,812  3,289,236  
Reinsurance recoverable on paid losses and loss expenses395,990  357,185  327,795  252,087  364,536  136,530  
Deferred acquisition costs583,484  611,229  492,119  586,440  657,275  708,679  
Prepaid reinsurance premiums1,352,090  1,281,808  1,101,889  1,243,040  1,291,979  1,157,228  
Receivable for investments sold2,985  34,137  35,659  9,711  25,850  16,430  
Goodwill102,003  102,003  102,003  102,003  102,003  102,003  
Intangible assets225,092  227,821  230,550  233,305  236,009  250,541  
Value of business acquired5,909  7,194  8,992  11,048  15,416  97,529  
Operating lease right-of-use assets136,815  140,149  111,092  116,560  132,940  —  
Other assets295,074  315,523  287,892  263,880  271,562  283,861  
TOTAL ASSETS$26,359,173  $25,948,768  $25,604,054  $25,495,526  $25,870,174  $25,018,486  
LIABILITIES
Reserve for losses and loss expenses$13,179,166  $13,082,273  $12,752,081  $12,498,507  $12,254,711  $11,952,734  
Unearned premiums4,418,728  4,395,240  3,626,246  4,153,003  4,503,132  4,594,150  
Insurance and reinsurance balances payable1,365,799  1,263,389  1,349,082  1,276,123  1,484,285  1,282,585  
Debt1,309,076  1,808,645  1,808,157  1,388,135  1,387,748  1,377,206  
Payable for investments purchased350,347  123,678  32,985  89,805  181,274  186,180  
Operating lease liabilities141,621  143,071  115,584  115,887  133,257  —  
Other liabilities296,616  292,894  375,911  388,196  359,290  372,626  
TOTAL LIABILITIES21,061,353  21,109,190  20,060,046  19,909,656  20,303,697  19,765,481  
SHAREHOLDERS’ EQUITY
Preferred shares550,000  550,000  775,000  775,000  775,000  775,000  
Common shares2,206  2,206  2,206  2,206  2,206  2,206  
Additional paid-in capital2,317,354  2,307,998  2,317,212  2,309,483  2,303,592  2,295,633  
Accumulated other comprehensive income (loss)281,599  (89,919) 171,710  176,296  156,145  (163,168) 
Retained earnings5,913,029  5,836,007  6,056,686  6,101,902  6,108,577  6,135,625  
Treasury shares, at cost(3,766,368) (3,766,714) (3,778,806) (3,779,017) (3,779,043) (3,792,291) 
TOTAL SHAREHOLDERS' EQUITY5,297,820  4,839,578  5,544,008  5,585,870  5,566,477  5,253,005  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$26,359,173  $25,948,768  $25,604,054  $25,495,526  $25,870,174  $25,018,486  
Common shares outstanding84,306  84,298  83,959  83,947  83,947  83,556  
Diluted common shares outstanding [a]
86,178  86,170  85,489  85,516  85,579  85,346  
Book value per common share
$56.32  $50.89  $56.80  $57.31  $57.08  $53.59  
Book value per diluted common share$55.09  $49.78  $55.79  $56.26  $55.99  $52.47  
Tangible book value per diluted common share$51.79  $46.45  $52.40  $52.84  $52.54  $48.87  
Debt to total capital [b]
19.8 %27.2 %24.6 %19.9 %20.0 %20.8 %
Debt and preferred equity to total capital28.1 %35.5 %35.1 %31.0 %31.1 %32.5 %
[a]      Treasury stock method was applied. Under this method, unvested restricted stock units are included in determining the diluted common shares outstanding.
[b]      The debt to total capital ratio is calculated by dividing debt by total capital. Total capital represents the sum of total shareholders’ equity and debt.
14
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
CASH AND INVESTED ASSETS PORTFOLIO
At June 30, 2020
Cost or
Amortized Cost
Allowance for Expected Credit Losses
Unrealized
Gains
Unrealized
Losses
Fair ValuePercentage
Fixed Maturities, available for sale
U.S. government and agency$1,942,952  $—  $70,341  $(26) $2,013,267  13.2 %
Non-U.S. government608,375  —  9,519  (9,797) 608,097  4.0 %
Corporate debt4,513,997  (4,643) 200,202  (47,145) 4,662,411  30.6 %
Agency RMBS1,483,883  —  51,466  (276) 1,535,073  10.1 %
CMBS1,302,049  —  79,241  (4,026) 1,377,264  9.0 %
Non-Agency RMBS118,085  (20) 2,396  (2,242) 118,219  0.8 %
ABS1,558,578  (1,594) 9,798  (32,218) 1,534,564  10.1 %
Municipals187,966  —  9,730  (176) 197,520  1.3 %
Total fixed maturities11,715,885  (6,257) 432,693  (95,906) 12,046,415  79.1 %
Equity securities
Common stocks422  —  13  (371) 64  — %
Exchange traded funds141,748  —  37,825  (2,152) 177,421  1.2 %
Bond mutual funds192,091  —  1,853  —  193,944  1.3 %
Preferred Stocks6,249  —  1,183  (1) 7,431  — %
Total equity securities340,510  —  40,874  (2,524) 378,860  2.5 %
Total fixed maturities and equity securities$12,056,395  $(6,257) $473,567  $(98,430) 12,425,275  81.6 %
Mortgage loans, held for investment524,757  3.4 %
Other investments (see below)768,635  5.0 %
Equity method investments101,346  0.7 %
Short-term investments34,337  0.3 %
Total investments13,854,350  91.0 %
Cash and cash equivalents [a]1,648,833  10.8 %
Accrued interest receivable68,880  0.5 %
Net receivable/(payable) for investments sold (purchased)(347,362) (2.3 %)
Total cash and invested assets$15,224,701  100.0 %
Fair ValuePercentage
Other Investments:
Long/short equity funds$23,299  3.0 %
Multi-strategy funds142,625  18.6 %
Direct lending funds262,802  34.2 %
Real estate funds144,003  18.7 %
Private equity funds101,485  13.2 %
Other privately held investments37,420  4.9 %
Collateralized loan obligations - equity tranches9,943  1.3 %
Overseas deposits$47,058  6.1 %
Total$768,635  100.0 %
[a]    Includes $562 million of restricted cash and cash equivalents.
15
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
CASH AND INVESTED ASSETS COMPOSITION - QUARTER
Q2 2020Q1 2020Q4 2019Q3 2019Q2 2019Q2 2018
 Fair Value %Fair Value %Fair Value %Fair Value %Fair Value %Fair Value %
CASH AND INVESTED ASSETS PORTFOLIO
Fixed Maturities:
U.S. government and agency13.2 %12.4 %13.2 %13.6 %15.1 %11.0 %
Non-U.S. government4.0 %3.9 %3.6 %3.5 %3.5 %3.9 %
Corporate debt30.6 %31.5 %30.9 %32.6 %32.3 %32.2 %
MBS:
Agency RMBS10.1 %10.6 %10.0 %10.5 %11.0 %11.2 %
CMBS9.0 %9.4 %8.6 %8.8 %7.7 %7.4 %
Non-agency RMBS0.8 %0.8 %0.5 %0.4 %0.4 %0.3 %
ABS10.1 %9.5 %10.0 %10.3 %10.4 %10.7 %
Municipals1.3 %1.4 %1.3 %1.3 %1.3 %0.9 %
Total Fixed Maturities79.1 %79.5 %78.1 %81.0 %81.7 %77.6 %
Equity securities2.5 %2.7 %3.0 %2.8 %2.8 %2.8 %
Mortgage loans3.4 %3.4 %2.7 %2.6 %2.6 %2.3 %
Other investments5.0 %5.3 %4.8 %5.0 %5.2 %6.1 %
Equity method investments0.7 %0.6 %0.7 %0.7 %0.7 %0.7 %
Short-term investments0.3 %0.4 %0.3 %0.1 %0.3 %1.0 %
Total Investments91.0 %91.9 %89.6 %92.2 %93.3 %90.5 %
Cash and cash equivalents10.8 %8.2 %9.9 %7.8 %7.1 %10.1 %
Accrued interest receivable0.5 %0.5 %0.5 %0.5 %0.5 %0.5 %
Net receivable/(payable) for investments sold or purchased(2.3 %)(0.6 %)— %(0.5 %)(0.9 %)(1.1 %)
Total Cash and Invested Assets100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
 
CREDIT QUALITY OF FIXED MATURITIES
U.S. government and agency16.7 %15.5 %16.9 %16.9 %18.5 %14.2 %
AAA38.9 %39.8 %39.3 %38.6 %35.8 %39.7 %
AA6.8 %7.0 %6.9 %7.1 %8.6 %7.2 %
A16.4 %15.9 %14.8 %14.8 %14.1 %16.4 %
BBB13.2 %13.0 %13.5 %13.8 %13.6 %13.9 %
Below BBB8.0 %8.8 %8.6 %8.8 %9.4 %8.6 %
Total100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
 
MATURITY PROFILE OF FIXED MATURITIES
Within one year3.3 %3.5 %3.6 %2.7 %3.1 %4.0 %
From one to five years36.3 %36.5 %39.2 %39.9 %41.8 %41.1 %
From five to ten years20.7 %19.1 %17.3 %17.2 %15.7 %15.1 %
Above ten years1.8 %2.7 %2.7 %3.3 %3.2 %1.7 %
Asset-backed and mortgage-backed securities37.9 %38.2 %37.2 %36.9 %36.2 %38.1 %
Total100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
CASH AND INVESTED ASSETS PORTFOLIO CHARACTERISTICS
Book yield of fixed maturities2.5 %2.7 %2.8 %2.9 %3.0 %2.8 %
Yield to maturity of fixed maturities1.6 %2.9 %2.4 %2.5 %2.7 %3.4 %
Average duration of fixed maturities (inclusive of duration hedges)3.4 yrs3.3 yrs3.2 yrs3.1 yrs3.0 yrs3.0 yrs
Average credit qualityAA-AA-AA-AA-AA-AA-

16
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
CORPORATE DEBT INVESTED ASSETS COMPOSITION
At June 30, 2020
Fair Value
% of Total
Corporate Debt
% of Total
Cash and
Invested Assets
Composition by sector - Investment grade
Financial institutions:
U.S. banks$946,312  20.3 %6.2 %
Non-U.S. banks282,946  6.1 %1.9 %
Corporate/commercial finance213,140  4.6 %1.4 %
Insurance126,571  2.7 %0.8 %
Investment brokerage54,163  1.2 %0.4 %
Total financial institutions1,623,132  34.9 %10.7 %
Consumer non-cyclicals524,797  11.3 %3.4 %
Communications306,893  6.6 %2.0 %
Technology270,149  5.8 %1.8 %
Consumer cyclical252,445  5.4 %1.7 %
Non-U.S. government guaranteed 197,962  4.2 %1.3 %
Industrials171,466  3.7 %1.1 %
Energy151,656  3.3 %1.0 %
Transportation151,424  3.2 %1.0 %
Utilities139,008  3.0 %0.9 %
Total investment grade3,788,932  81.4 %24.9 %
Total non-investment grade873,479  18.6 %5.7 %
Total corporate debt$4,662,411  100.0 %30.6 %

17
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
INVESTMENT PORTFOLIO
TEN LARGEST CORPORATE DEBT HOLDINGS
At June 30, 2020  
Amortized
Cost
Net Unrealized
Gain (Loss)
Fair Value
% of Total
Fixed  Maturities
ISSUER [a]
BANK OF AMERICA CORP$124,929  $8,731  $133,660  1.1 %
JP MORGAN CHASE & CO109,686  7,369  117,055  1.0 %
MORGAN STANLEY104,340  7,464  111,804  0.9 %
WELLS FARGO & COMPANY104,155  6,181  110,336  0.9 %
GOLDMAN SACHS GROUP90,051  5,196  95,247  0.8 %
CITIGROUP INC84,136  5,815  89,951  0.7 %
AT&T INC49,516  4,447  53,963  0.4 %
COMCAST CORPORATION49,647  4,048  53,695  0.4 %
CVS HEALTH CORP46,335  4,817  51,152  0.4 %
MITSUBISHI UFJ FINANCIAL GROUP INC41,116  1,725  42,841  0.4 %
[a]  These 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.
18
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
MORTGAGE-BACKED AND ASSET-BACKED SECURITIES COMPOSITION
At June 30, 2020
AgenciesAAAAAABBB
Non-Investment
Grade
Total
Residential MBS$1,535,073  $76,350  $33,123  $707  $1,637  $6,402  $1,653,292  
Commercial MBS373,816  961,072  39,716  2,660  —  —  1,377,264  
ABS—  1,305,646  57,656  66,051  50,260  54,951  1,534,564  
Total mortgage-backed and asset-backed securities$1,908,889  $2,343,068  $130,495  $69,418  $51,897  $61,353  $4,565,120  
Percentage of total41.8 %51.3 %2.9 %1.5 %1.1 %1.4 %100.0 %

19
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
REINSURANCE RECOVERABLE ANALYSIS
Q2 2020Q1 2020Q4 2019Q3 2019Q2 2019Q2 2018
Reinsurance recoverable on paid losses and loss expenses:
Insurance$205,112  $200,990  $196,334  $158,491  $159,259  $85,583  
Reinsurance190,878  156,195  131,461  93,596  205,558  51,108  
Total$395,990  $357,185  $327,795  $252,087  $364,817  $136,691  
Reinsurance recoverable on unpaid losses and loss expenses: Case reserves
Insurance$898,849  $892,354  $890,036  $869,575  $871,493  $772,718  
Reinsurance406,723  482,347  468,904  351,179  351,230  239,986  
Total$1,305,572  $1,374,701  $1,358,940  $1,220,754  $1,222,723  $1,012,704  
Reinsurance recoverable on unpaid losses and loss expenses: IBNR
Insurance$2,151,986  $2,127,989  $1,933,657  $1,932,766  $1,889,003  $1,787,763  
Reinsurance
723,950  617,843  603,116  570,738  470,322  370,161  
Total$2,875,936  $2,745,832  $2,536,773  $2,503,504  $2,359,325  $2,157,924  
Allowance for expected credit losses:
Insurance$(19,025) $(17,203) $(16,720) $(17,598) $(16,722) $(17,210) 
Reinsurance(1,962) (1,751) (1,237) (867) (795) (873) 
Total$(20,987) $(18,954) $(17,957) $(18,465) $(17,517) $(18,083) 
Reinsurance recoverables on unpaid and paid losses and loss expenses:
Insurance$3,236,922  $3,204,130  $3,003,307  $2,943,234  $2,903,033  $2,628,854  
Reinsurance1,319,589  1,254,634  1,202,244  1,014,646  1,026,315  660,382  
Total$4,556,511  $4,458,764  $4,205,551  $3,957,880  $3,929,348  $3,289,236  

20
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
REINSURANCE RECOVERABLE ANALYSIS
At June 30, 2020
CategoriesReinsurance Recoverable, Gross of CollateralCollateralReinsurance
Recoverable,
Net of
Collateral		% of Total
Reinsurance
Recoverable,
Net  of
Collateral
% of Total
Shareholders’
Equity
Allowance for expected credit lossesAllowance for expected credit loss as %
of Reinsurance 
Recoverable,
Gross of Collateral		Reinsurance recoverable on unpaid and paid losses and loss expenses
Top 10 reinsurers based on gross recoverable$2,595,619  $(531,218) $2,064,401  57.0%39.0%$(9,854) 0.4%$2,585,765  
Other reinsurers balances > $20 million1,516,987  (279,794) 1,237,193  34.2%23.4%(9,043) 0.6%1,507,944  
Other reinsurers balances < $20 million464,892  (148,452) 316,440  8.8%5.9%(2,090) 0.4%462,802  
Total$4,577,498  $(959,464) $3,618,034  100.0%68.3%$(20,987) 0.5%$4,556,511  
At June 30, 2020, 88.9% (December 31, 2019: 89.1%) of reinsurance recoverable balances, gross of collateral, were collectible from reinsurers rated the equivalent of A- or better by A.M. Best.

 
Top 10 Reinsurers, Net of Collateral
% of  Total
Reinsurance
Recoverable,
Net of Collateral
% of  Total
Shareholders’ Equity
1Swiss Reinsurance America Corporation13.0%8.9%
2Lloyds of London11.5%7.8%
3Harrington Re Ltd.8.9%6.1%
4Transatlantic Reinsurance Co5.7%3.9%
5Hannover Ruck SE4.7%3.2%
6Partner Reinsurance Co of the US4.5%3.1%
7Everest Reinsurance Company3.5%2.4%
8Munich Reinsurance America, Inc3.2%2.2%
9SCOR Reinsurance Company2.7%1.8%
10Munchener Ruckversicherungs-Gesellschaft2.1%1.4%
59.8%40.8%

21
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
RESERVE FOR LOSSES AND LOSS EXPENSES
 Three months ended June 30, 2020Six months ended June 30, 2020
 Reserve for losses and loss expensesReinsurance recoverable on unpaid losses and loss expensesNet reserve for losses and loss expensesReserve for losses and loss expensesReinsurance recoverable on unpaid losses and loss expensesNet reserve for losses and loss expenses
Reserve for losses and loss expenses
Beginning of period$13,082,273  $(4,101,579) $8,980,694  $12,752,081  $(3,877,756) $8,874,325  
Incurred losses and loss expenses1,052,826  (376,565) 676,261  2,548,301  (963,966) 1,584,335  
Paid losses and loss expenses(1,010,291) 319,676  (690,615) (1,987,685) 625,974  (1,361,711) 
Foreign exchange and other54,358  (2,053) 52,305  (133,531) 55,227  (78,304) 
End of period [a]$13,179,166  $(4,160,521) $9,018,645  $13,179,166  $(4,160,521) $9,018,645  
[a]   At June 30, 2020, reserve for losses and loss expenses included IBNR of $8,119 million, or 62% (December 31, 2019: $7,891 million, or 62%).
22
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS BY SEGMENT
 Three months ended June 30, 2020Six months ended June 30, 2020
 InsuranceReinsuranceTotalInsuranceReinsuranceTotal
Gross paid losses and loss expenses$543,599  $466,692  $1,010,291  $1,052,979  $934,706  $1,987,685  
Reinsurance recoverable on paid losses and loss expenses(218,928) (100,748) (319,676) (423,276) (202,698) (625,974) 
Net paid losses and loss expenses324,671  365,944  690,615  629,703  732,008  1,361,711  
Change in:
Gross case reserves72,563  97,573  170,136  90,849  177,597  268,446  
Gross IBNR(35,502) (92,099) (127,601) 344,775  (52,605) 292,170  
Reinsurance recoverable on unpaid losses and loss expenses(24,365) (32,524) (56,889) (256,147) (81,845) (337,992) 
Total net incurred losses and loss expenses$337,367  $338,894  $676,261  $809,180  $775,155  $1,584,335  
Gross reserve for losses and loss expenses$6,865,343  $6,313,823  $13,179,166  $6,865,343  $6,313,823  $13,179,166  
Net favorable prior year reserve development$420  $2,235  $2,655  $4,251  $4,516  $8,767  
Key Ratios
Net paid losses and loss expenses / Net incurred losses and loss expenses96.2 %108.0 %102.1 %77.8 %94.4 %85.9 %
Net paid losses and loss expenses / Net premiums earned56.3 %69.4 %62.6 %55.3 %69.5 %62.1 %
Change in net losses and loss expenses / Net premiums earned2.2 %(5.1 %)(1.3 %)15.7 %4.1 %10.2 %
Net losses and loss expenses ratio58.5 %64.3 %61.3 %71.0 %73.6 %72.3 %


23
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS
INSURANCE - QUARTER
Q2 2020Q1 2020Q4 2019Q3 2019Q2 2019Q2 2018
Gross paid losses and loss expenses$543,599  $509,378  $575,688  $546,316  $537,634  $478,912  
Reinsurance recoverable on paid losses and loss expenses(218,928) (204,348) (254,044) (232,791) (175,788) (162,291) 
Net paid losses and loss expenses324,671  305,030  321,644  313,525  361,846  316,621  
Change in:
Gross case reserves72,563  18,286  (31,996) 35,106  (8,250) 43,986  
Gross IBNR(35,502) 380,280  27,839  42,137  (57,015) 10,784  
Reinsurance recoverable on unpaid losses and loss expenses(24,365) (231,784) (253) (51,802) 12,122  (42,618) 
Total net incurred losses and loss expenses$337,367  $471,812  $317,234  $338,966  $308,703  $328,773  
Gross reserve for losses and loss expenses$6,865,343  $6,814,171  $6,496,568  $6,437,281  $6,395,448  $6,301,363  
Net favorable prior year reserve development$420  $3,832  $10,455  $14,609  $21,326  $24,294  
Key Ratios
Net paid losses and loss expenses / Net incurred losses and loss expenses96.2 %64.7 %101.4 %92.5 %117.2 %96.3 %
Net paid losses and loss expenses / Net premiums earned56.3 %54.3 %57.5 %58.4 %67.4 %54.8 %
Change in net losses and loss expenses / Net premiums earned2.2 %29.6 %(0.8 %)4.8 %(9.9 %)2.2 %
Net losses and loss expenses ratio58.5 %83.9 %56.7 %63.2 %57.5 %57.0 %

24
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS
REINSURANCE - QUARTER
Q2 2020Q1 2020Q4 2019Q3 2019Q2 2019Q2 2018
Gross paid losses and loss expenses$466,692  $468,015  $660,948  $442,924  $428,428  $426,314  
Reinsurance recoverable on paid losses and loss expenses(100,748) (101,950) (132,719) (72,222) (82,907) (46,772) 
Net paid losses and loss expenses365,944  366,065  528,229  370,702  345,521  379,542  
Change in:
Gross case reserves97,573  80,024  3,236  27,062  25,790  47,664  
Gross IBNR(92,099) 39,492  89,173  224,223  20,656  (5,905) 
Reinsurance recoverable on unpaid losses and loss expenses(32,524) (49,320) (80,478) (110,040) (28,207) (43,433) 
Total net incurred losses and loss expenses$338,894  $436,261  $540,160  $511,947  $363,760  $377,868  
Gross reserve for losses and loss expenses$6,313,823  $6,268,102  $6,255,513  $6,061,226  $5,859,263  $5,651,371  
Net favorable prior year reserve development$2,235  $2,281  $3,426  $12,118  $2,295  $35,822  
Key Ratios
Net paid losses and loss expenses / Net incurred losses and loss expenses108.0 %83.9 %97.8 %72.4 %95.0 %100.4 %
Net paid losses and loss expenses / Net premiums earned69.4 %69.5 %86.2 %59.7 %58.9 %62.4 %
Change in net losses and loss expenses / Net premiums earned(5.1 %)13.4 %2.0 %22.8 %3.1 %(0.3 %)
Net losses and loss expenses ratio64.3 %82.9 %88.2 %82.5 %62.0 %62.1 %

25
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
NET PROBABLE MAXIMUM LOSSES TO CERTAIN PEAK INDUSTRY CATASTROPHE EXPOSURES - AT JULY 1, 2020
  
Estimated Net Exposures
(millions of U.S. dollars)
TerritoryPeril
50 Year
Return
Period
% of Common Shareholders' Equity
100 Year
Return
Period
% of Common Shareholders' Equity
250 Year
Return
Period
% of Common Shareholders' Equity
Single zone, single event
SoutheastU.S. Hurricane$240  5.1 %$289  6.1 %$569  12.0 %
NortheastU.S. Hurricane49  1.0 %128  2.7 %206  4.3 %
Mid-AtlanticU.S. Hurricane107  2.3 %197  4.1 %398  8.4 %
Gulf of MexicoU.S. Hurricane218  4.6 %260  5.5 %376  7.9 %
CaliforniaEarthquake199  4.2 %272  5.7 %392  8.3 %
EuropeWindstorm186  3.9 %235  4.9 %288  6.1 %
JapanEarthquake132  2.8 %223  4.7 %351  7.4 %
JapanWindstorm109  2.3 %180  3.8 %230  4.8 %
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 July 1, 2020. 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 $0.3 billion. According to our modeling, there is a one percent chance that on an annual basis, losses incurred from a Southeast hurricane event could be in excess of $0.3 billion. Conversely, there is a 99% chance that on an annual basis, the loss from a Southeast hurricane will fall below $0.3 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.
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.
26
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
EARNINGS PER COMMON SHARE INFORMATION - AS REPORTED, U.S. GAAP
 Three months ended June 30,Six months ended June 30,
2020201920202019
Net income (loss) available (attributable) to common shareholders$112,477  $166,387  $(72,908) $264,515  
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Weighted average common shares outstanding84,303  83,941  84,198  83,834  
Dilutive share equivalents:
Share-based compensation plans [a]
297  460  —  504  
Weighted average diluted common shares outstanding84,600  84,401  84,198  84,338  
EARNINGS (LOSS) PER COMMON SHARE
Earnings (loss) per common share
$1.33  $1.98  ($0.87) $3.16  
Earnings (loss) per diluted common share
$1.33  $1.97  ($0.87) $3.14  
[a] Due to the net loss recognized for the six months ended June 30, 2020, the share equivalents were anti-dilutive.
27
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
EARNINGS PER COMMON SHARE INFORMATION AND COMMON SHARES ROLL FORWARD - QUARTER
Q2 2020Q1 2020Q4 2019Q3 2019Q2 2019Q2 2018
Net income (loss) available (attributable) to common shareholders$112,477  $(185,390) $(9,897) $27,745  $166,387  $92,858  
COMMON SHARES OUTSTANDING
Common shares - at beginning of period84,298  83,959  83,947  83,947  83,934  83,518  
Shares issued and treasury shares reissued11  489  23  1  20  64  
Shares repurchased for treasury(3) (150) (11) (1) (7) (26) 
Common shares - at end of period84,306  84,298  83,959  83,947  83,947  83,556  
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Weighted average common shares outstanding84,303  84,094  83,957  83,947  83,941  83,539  
Dilutive share equivalents:
Share-based compensation plans [a]
297  —  —  635  460  445  
Weighted average diluted common shares outstanding84,600  84,094  83,957  84,582  84,401  83,984  
EARNINGS (LOSS) PER COMMON SHARE
Earnings (loss) per common share$1.33  ($2.20) ($0.12) $0.33  $1.98  $1.11  
Earnings (loss) per diluted common share$1.33  ($2.20) ($0.12) $0.33  $1.97  $1.11  
[a] Due to the net losses recognized for the three months ended March 31, 2020 and December 31, 2019, the share equivalents were anti-dilutive.
28
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
BOOK VALUE PER DILUTED COMMON SHARE ANALYSIS - TREASURY STOCK METHOD [a]
 At June 30, 2020
 
Common
Shareholders’
Equity

Common Shares Outstanding
net of
Treasury Shares
Per share
Closing stock price$40.56  
Book value per common share $4,747,820  84,306  $56.32  
Dilutive securities: [b]
Restricted stock units1,872  (1.23) 
Book value per diluted common share$4,747,820  86,178  $55.09  
 At December 31, 2019
 
Common
Shareholders’
Equity

Common Shares Outstanding
net of
Treasury Shares		Per share
Closing stock price$59.44  
Book value per common share $4,769,008  83,959  $56.80  
Dilutive securities: [b]
Restricted stock units1,530  (1.01) 
Book value per diluted common share$4,769,008  85,489  $55.79  
[a]    Under this method, unvested restricted stock units are included in determining the diluted common shares outstanding.
[b]    Excludes cash-settled restricted stock units.


29
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
NON-GAAP FINANCIAL MEASURES RECONCILIATION (UNAUDITED)
OPERATING INCOME AND OPERATING RETURN ON AVERAGE COMMON EQUITY
Three months ended June 30,Six months ended June 30,
 2020201920202019
Net income (loss) available (attributable) to common shareholders$112,477  $166,387  $(72,908) $264,515  
Net investment (gains) losses [a]
(53,043) (21,225) 9,831  (33,996) 
Foreign exchange losses (gains) [b]
9,709  (12,381) (51,974) (5,325) 
Reorganization expenses [c]

392  3,276  (591) 18,096  
Interest in (income) loss of equity method investments [d]
(7,102) (2,635) 16,475  (4,853) 
Income tax expense
9,070  3,569  6,259  3,164  
Operating income (loss)$71,503  $136,991  $(92,908) $241,601  
Earnings (loss) per diluted common share$1.33  $1.97  $(0.87) $3.14  
Net investment (gains) losses
(0.63) (0.25) 0.12  (0.40) 
Foreign exchange losses (gains)0.11  (0.15) (0.62) (0.06) 
Reorganization expenses—  0.04  (0.01) 0.21  
Interest in (income) loss of equity method investments
(0.08) (0.03) 0.20  (0.06) 
Income tax expense
0.11  0.04  0.07  0.03  
Operating income (loss) per diluted common share$0.84  $1.62  $(1.11) $2.86  
Weighted average diluted common shares outstanding84,600  84,401  84,198  84,338  
Average common shareholders' equity$4,518,699  $4,658,317  $4,758,414  $4,523,274  
Annualized return on average common equity10.0 %14.3 %(3.1 %)11.7 %
Annualized operating return on average common equity6.3 %11.8 %(3.9 %)10.7 %
[a] Tax cost (benefit) of $8,114 and $2,936 for the three months ended June 30, 2020 and 2019, respectively, and $2,437 and $5,771 for the six months ended June 30, 2020 and 2019, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors including the ability to utilize capital losses.
[b]   Tax cost (benefit) of $1,084 and $1,170 for the three months ended June 30, 2020 and 2019, respectively, and $3,611 and $588 for the six months ended June 30, 2020 and 2019, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors including the tax status of specific foreign exchange transactions.
[c] Tax cost (benefit) of $(128) and $(537) for the three months ended June 30, 2020 and 2019, respectively, and $211 and $(3,195) for the six months ended June 30, 2020 and 2019, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.
[d]  Tax cost (benefit) of $nil for the three and six months ended June 30, 2020 and 2019 respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.

30
axislogo1a0121.jpg
AXIS CAPITAL HOLDINGS LIMITED
TANGIBLE BOOK VALUE PER DILUTED COMMON SHARE
TANGIBLE BOOK VALUE PER DILUTED COMMON SHARE - TREASURY STOCK METHOD [a]
June 30,March 31,December 31,September 30,June 30,June 30,
202020202019201920192018
Common shareholders' equity$4,747,820  $4,289,578  $4,769,008  $4,810,870  $4,791,477  $4,478,005  
Less: goodwill(102,003) (102,003) (102,003) (102,003) (102,003) (102,003) 
Less: intangible assets(225,092) (227,821) (230,550) (233,305) (236,009) (250,541) 
     Associated tax impact42,515  42,857  43,199  42,881  43,205  45,123  
Tangible common shareholders' equity$4,463,240  $4,002,611  $4,479,654  $4,518,443  $4,496,670  $4,170,584  
Diluted common shares outstanding, net of treasury shares86,178  86,170  85,489  85,516  85,579  85,346  
Book value per diluted common share $55.09  $49.78  $55.79  $56.26  $55.99  $52.47  
Tangible book value per diluted common share$51.79  $46.45  $52.40  $52.84  $52.54  $48.87  
[a]     Under this method, unvested restricted stock units are included in determining the diluted common shares outstanding. Cash-settled restricted stock units are excluded.



31
axislogo1a0121.jpg
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 considered non-GAAP financial measures under SEC rules and regulations. In this document, we present underwriting-related general and administrative expenses, consolidated underwriting income (loss), operating income (loss) (in total and on a per share basis), annualized operating return on average common equity ("operating ROACE"), tangible book value per diluted common share which are non-GAAP financial measures as defined in SEC Regulation G. We believe that these non-GAAP financial 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 accounting principles generally accepted in the United States of America ("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 underwriting operations. While this measure is presented in the 'Segment Information' note to our Consolidated Financial Statements, it 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 underwriting operations, these costs are excluded from underwriting-related general and administrative expenses, and therefore, consolidated underwriting income (loss). 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 financial measure, is presented in the 'Consolidated Statements of Operations - Quarter' and Consolidated Statements of Operations - Year' sections of this document.

Consolidated Underwriting Income (Loss)
Consolidated underwriting income (loss) is a pre-tax measure of underwriting profitability that takes into account net premiums earned and other insurance related income (loss) as revenues and net losses and loss expenses, acquisition costs and underwriting-related general and administrative expenses as expenses. While this measure is presented in the 'Segment Information' note 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 a result, we believe it is appropriate to exclude net investment income and net investment gains (losses) from our underwriting profitability measure.

32
axislogo1a0121.jpg
Foreign exchange losses (gains) in our consolidated statements of operations primarily relate to the impact of foreign exchange rate movements on our net insurance-related liabilities. However, we manage our investment portfolio in such a way that unrealized and realized foreign exchange 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, therefore, foreign exchange losses (gains) are excluded from consolidated underwriting income (loss).

Interest expense and financing costs primarily relate to interest payable on our debt. As these expenses are not incremental and/or directly attributable to our underwriting operations, these expenses are excluded from underwriting-related general and administrative expenses, and therefore, consolidated underwriting income (loss).

Reorganization expenses are related to the transformation program which was launched in 2017. This program encompasses the integration of Novae, which commenced in the fourth quarter of 2017, the realignment of our accident and health business, together with other initiatives designed to increase efficiency and enhance profitability, while delivering a customer-centric operating model. Reorganization expenses are primarily driven by business decisions, the nature and timing of which are not related to the underwriting process, therefore, these expenses are excluded from consolidated underwriting income (loss).

We believe that the presentation of underwriting-related general and administrative expenses and consolidated underwriting income (loss) 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 (loss) to income (loss) before income taxes and interest in income (loss) of equity method investments, the most comparable GAAP financial measure, is presented in the 'Consolidated Statements of Operations - Quarter' and Consolidated Statements of Operations - Year'' sections of this document.

Operating Income (Loss)
Operating income (loss) represents after-tax operational results exclusive of net investment gains (losses), foreign exchange losses (gains), reorganization expenses, and interest in income (loss) of equity method investments.

Although the investment of premiums to generate income and 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 operations primarily relate to the impact of foreign exchange rate movements on net insurance-related liabilities. In addition, we recognize unrealized foreign exchange losses (gains) on our equity securities and foreign exchange losses (gains) realized on the sale of our available for sale investments and equity securities in net investment gains (losses). We also recognize unrealized foreign exchange losses (gains) on our available for sale investments in other comprehensive income (loss). These unrealized foreign exchange losses (gains) generally offset a large portion of the foreign exchange losses (gains) reported in net income (loss), thereby minimizing the impact of foreign exchange rate movements on total shareholders’ equity. As a result, foreign exchange losses (gains) in our consolidated statements of operations in isolation are not a fair representation of the performance of our business.

33
axislogo1a0121.jpg
Reorganization expenses are related to the transformation program which was launched in 2017. This program encompasses the integration of Novae, which commenced in the fourth quarter of 2017, the realignment of our accident and health business, together with other initiatives designed to increase efficiency and enhance profitability, while delivering a customer-centric operating model.Reorganization expenses are primarily driven by business decisions, the nature and timing of which are not related to the underwriting process, therefore, these expenses are excluded from operating income (loss).

Interest in income (loss) of equity method investments is primarily driven by business decisions, the nature and timing of which are not related to the underwriting process, therefore, this income (loss) is excluded from operating income (loss).

Certain users of our financial statements evaluate performance exclusive of after-tax net investment gains (losses), foreign exchange losses (gains), reorganization expenses, and interest in income (loss) of equity method investments to understand the profitability of recurring sources of income.

We believe that showing net income (loss) available (attributable) to common shareholders exclusive of after-tax net investment gains (losses), foreign exchange losses (gains), reorganization expenses, and interest in income (loss) of equity method investments 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 operating income (loss) to net income (loss) available (attributable) to common shareholders, the most comparable GAAP financial measure, is presented in the 'Non-GAAP Financial Measures Reconciliation' section of this document.

We also present operating income (loss) per diluted common share and annualized operating ROACE, which are derived from the operating income (loss) measure and are reconciled to the most comparable GAAP financial measures, earnings (loss) per diluted common share and annualized return on average common equity ("ROACE"), respectively, in the 'Non-GAAP Financial Measures Reconciliation' section of this document.

Tangible Book Value per Diluted Common Share
Tangible book value represents common shareholders' equity exclusive of goodwill and intangible assets, net of tax. We also present tangible book value per diluted common share calculated under the treasury stock method. A reconciliation of tangible book value per diluted common share to book value per diluted common share, the most comparable GAAP financial measure, is included in the 'Tangible Book Value per Diluted Common Share' section of this document.

Tangible book value per diluted common share excludes the impacts of certain purchase accounting adjustments. We believe that this measure, in combination with book value per diluted common share, is useful in assessing value generated for our common shareholders.



34

AXIS CAPITAL HOLDINGS LIMITED
EX-PGAAP DATA - QUARTER AND YEAR
Year ended
December 31,
Q2 2020Q1 2020Q4 2019Q3 2019Q2 2019Q1 2019Q4 2018Q3 2018Q2 2018Q1 2018Q4 201720192018
Insurance
Underwriting income (loss)$34,397  $(122,630) $29,683  $(17,892) $11,309  $20,919  $(36,914) $(11,711) $56,479  $69,442  $37,788  $44,019  $77,298  
Acquisition costs adjustment636  478  1,518  1,563  2,856  6,202  15,775  28,801  38,125  38,313  25,571  12,139  121,014  
Ex-PGAAP underwriting income (loss)$33,761  $(123,108) $28,165  $(19,455) $8,453  $14,717  $(52,689) $(40,512) $18,354  $31,129  $12,217  $31,880  $(43,716) 
Combined ratio94.2 %121.9 %94.9 %103.5 %97.8 %96.6 %106.3 %102.2 %90.4 %88.1 %93.9 %98.1 %96.9 %
Acquisition cost ratio adjustment0.1 %0.1 %0.3 %0.3 %0.5 %1.1 %2.7 %4.7 %6.6 %6.6 %4.4 %0.6 %5.1 %
Ex-PGAAP combined ratio94.3 %122.0 %95.2 %103.8 %98.3 %97.7 %109.0 %106.9 %97.0 %94.7 %98.3 %98.7 %102.0 %
Ex-PGAAP current accident year combined ratio excluding catastrophe and weather-related losses
91.4 %92.3 %93.5 %98.8 %99.5 %97.5 %98.8 %99.0 %97.2 %93.8 %96.8 %97.3 %97.3 %
Reinsurance
Underwriting income (loss)$53,015  $(74,137) $(78,937) $(60,826) $67,350  $56,903  $(157,750) $70,737  $59,247  $74,295  $(11,658) $(15,512) $46,529  
Acquisition costs adjustment—  —  —  5  (2) 65  257  543  1,516  2,137  7,075  67  4,453  
Ex-PGAAP underwriting income (loss)$53,015  $(74,137) $(78,937) $(60,831) $67,352  $56,838  $(158,007) $70,194  $57,731  $72,158  $(18,733) $(15,579) $42,076  
Combined ratio90.2 %112.3 %113.5 %109.9 %89.1 %91.0 %124.0 %89.5 %90.7 %88.4 %102.0 %101.2 %98.4 %
Acquisition cost ratio adjustment— %— %— %— %— %— %— %0.1 %0.2 %0.4 %1.1 %— %0.2 %
Ex-PGAAP combined ratio90.2 %112.3 %113.5 %109.9 %89.1 %91.0 %124.0 %89.6 %90.9 %88.8 %103.1 %101.2 %98.6 %
Ex-PGAAP current accident year combined ratio excluding catastrophe and weather-related losses
86.5 %89.6 %94.2 %92.2 %87.6 %91.8 %96.3 %89.9 %94.3 %93.0 %91.9 %91.5 %93.6 %
Total
Underwriting income (loss)$87,412  $(196,767) $(49,254) $(78,718) $78,659  $77,822  $(194,664) $59,026  $115,726  $143,737  $26,130  $28,507  $123,827  
Acquisition costs adjustment636  478  1,518  1,568  2,854  6,267  16,032  29,344  39,641  40,450  32,646  12,206  125,467  
Ex-PGAAP underwriting income (loss)$86,776  $(197,245) $(50,772) $(80,286) $75,805  $71,555  $(210,696) $29,682  $76,085  $103,287  $(6,516) $16,301  $(1,640) 
Combined ratio94.7 %119.8 %107.3 %109.4 %96.1 %96.9 %117.3 %97.9 %93.1 %90.8 %100.7 %102.6 %99.9 %
Acquisition cost ratio adjustment 0.1 %0.1 %0.1 %0.1 %0.3 %0.5 %1.3 %2.4 %3.3 %3.5 %2.7 %0.3 %2.6 %
Ex-PGAAP combined ratio94.8 %119.9 %107.4 %109.5 %96.4 %97.4 %118.6 %100.3 %96.4 %94.3 %103.4 %102.9 %102.5 %
Ex-PGAAP current accident year combined ratio excluding catastrophe and weather-related losses
91.5 %93.6 %96.4 %97.7 %96.3 %97.8 %99.4 %96.6 %98.3 %95.9 %96.9 %97.1 %97.6 %
Amortization of VOBA and intangible assets$4,183  $4,697  $4,954  $6,891  $10,093  $16,002  $27,648  $40,664  $56,328  $59,892  $52,647  $37,939  $184,531  
Further information regarding ex-PGAAP historical data is available in the Company's Investor Financial Supplements for the fourth quarter 2017 through the first quarter 2020.
35