Toggle SGML Header (+)


Section 1: 8-K (FORM 8-K)

Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 25, 2018
 
AXIS CAPITAL HOLDINGS LIMITED
(Exact Name Of Registrant As Specified In Charter)
 
Bermuda
 
001-31721
 
98-0395986
(State of Incorporation)
 
(Commission File No.)
 
(I.R.S. Employer
Identification No.)
92 Pitts Bay Road
Pembroke, Bermuda HM 08
(Address of principal executive offices, including zip code)
(441) 496-2600
(Registrant’s telephone number, including area code)
Not applicable
(Former name or address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e(4)(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐





Item 2.02
Results of Operations and Financial Condition.
On July 25, 2018, AXIS Capital Holdings Limited, a Bermuda company, issued a press release reporting its second quarter 2018 results and the availability of its second quarter 2018 investor financial supplement. The press release and the investor financial supplement are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively.
Item 9.01
Financial Statements and Exhibits

(d) Exhibits
Press release dated July 25, 2018
Second quarter 2018 Investor Financial Supplement






EXHIBIT INDEX
 
 
 
 
 
 
Exhibit Number
  
Description of Document
 
 
  
Press release dated July 25, 2018
  
Second quarter 2018 Investor Financial Supplement


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: July 25, 2018
 
 
 
 
 
 
AXIS CAPITAL HOLDINGS LIMITED
 
 
 
 
 
 
 
 
 
By:
/s/ Conrad D. Brooks
 
 
 
Conrad D. Brooks
 
 
 
General Counsel
 









(Back To Top)

Section 2: EX-99.1 (PRESS RELEASE DATED JULY 25, 2018)

Exhibit

394355775_axislogoq12017a51.jpg


Matthew Rohrmann (Investor Contact):
(212) 940-3339;
investorrelations@axiscapital.com
Keith Trivitt (Media Contact):
(212) 715-3557;
keith.trivitt@axiscapital.com

AXIS CAPITAL REPORTS SECOND QUARTER NET INCOME OF $93 MILLION, OR $1.11 PER DILUTED COMMON SHARE; OPERATING INCOME OF $106 MILLION, or $1.27 PER DILUTED COMMON SHARE; EX-PGAAP OPERATING INCOME OF $120 MILLION, or $1.43 PER DILUTED COMMON SHARE

For the second quarter of 2018, the Company reports:
Combined ratio improved 4.5 points year over year
Return on average common equity of 8.3% and ex-PGAAP operating return on average common equity ("ex-PGAAP ROACE") of 10.7%
Transformation and integration initiatives on track to deliver $100 million of savings by year-end 2020
Pembroke, Bermuda, July 25, 2018 - AXIS Capital Holdings Limited ("AXIS Capital" or "the Company") (NYSE: AXS) today reported net income available to common shareholders for the second quarter of 2018 of $93 million, or $1.11 per diluted common share, compared to net income of $85 million, or $1.01 per diluted common share, for the second quarter of 2017. Net income available to common shareholders for the six months ended June 30, 2018 was $155 million, or $1.85 per diluted common share, compared to $90 million, or $1.05 per diluted common share, for the same period in 2017. Operating income1 for the second quarter of 2018 was $106 million, or $1.27 per diluted common share1, compared to operating income of $110 million, or $1.31 per diluted common share, for the second quarter of 2017. For the six months ended June 30, 2018, AXIS Capital reported operating income of $229 million, or $2.73 per diluted common share, compared to operating income of $161 million, or $1.89 per diluted common share for the same period in 2017.
Commenting on the second quarter 2018 financial results, Albert Benchimol, President /CEO of AXIS Capital, said:
"The momentum of our transformation and portfolio optimization is evidenced in our second consecutive quarter of double digit ex-PGAAP ROACE2, as we further integrate Novae into our business and enhance our operating platform to deliver superior and sustainable profitability. As a result of our strong market position, we continue to attract and retain high-quality business, allowing us to deliver better risk adjusted returns despite ongoing challenging market conditions.
In recent years, AXIS has taken a series of actions to improve efficiency and position the Company to be profitable under a wide range of market conditions. Our team’s efforts continue to gain real traction towards building a unique and differentiated hybrid underwriting platform that will drive long-term profitable growth. We still have plenty of work ahead of us, but we are showing encouraging results. We have a sound strategy focusing on attractive specialty lines, leadership and relevance in key markets, and a talented team focused on delivering outstanding expertise and service to our customers and partners in distribution, and superior results to our shareholders. As long as we remain focused on the steadfast execution of our strategy, the future for AXIS is very exciting."

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 1 -


Second Quarter Highlights3 

Gross premiums written increased by $288 million, or 21%, to $1.7 billion, with an increase of 34% in the insurance segment, primarily attributable to the acquisition of Novae Group plc ("Novae") on October 2, 2017 (the "purchase date"), and an increase of 4% in the reinsurance segment;
Adjusting for the impact of the Novae acquisition, gross premiums written decreased by $36 million, or 3%, with a decrease of $29 million, or 4% in the insurance segment and a decrease of $7 million, or 1% in the reinsurance segment;
Net premiums written increased by 5% to $1.0 billion;
KEY RATIOS
Q2 2018
 
Q2 2017
 
Change
Current accident year loss ratio excluding catastrophe and weather-related losses
61.5
%
 
63.8
%
 
(2.3
)
Catastrophe and weather-related losses ratio
3.2
%
 
5.1
%
 
(1.9
)
Current accident year loss ratio
64.7
%
 
68.9
%
 
(4.2
)
Prior year reserve development
(5.1
%)
 
(7.2
%)
 
2.1

Net loss and loss expense ratio
59.6
%
 
61.7
%
 
(2.1
)
Acquisition cost ratio
19.6
%
 
20.8
%
 
(1.2
)
General and administrative expense ratio
13.9
%
 
15.1
%
 
(1.2
)
Combined ratio
93.1
%
 
97.6
%
 
(4.5
)
Underwriting income included the recognition of premium attributable to Novae's balance sheet at October 2, 2017, without the recognition of the associated acquisition costs, which were written off at the purchase date. The absence of $40 million of acquisition expense related to premiums earned in the quarter benefited our acquisition cost ratio by 3.3 points.
Favorable prior year reserve development of $60 million (Insurance $24 million; Reinsurance $36 million, compared to $71 million;
Amortization of intangible assets recognized in the quarter of $57 million primarily related to value of business acquired ("VOBA"). This expense affected the Company’s operating income, but was not included in the results of the Company's insurance and reinsurance segments.
The Company continues to expect to deliver run-rate cost savings of $100 million related to its transformation initiative and the integration of Novae. To deliver $100 million of savings across the transformation initiative and the Novae integration by year-end 2020, the Company expects to incur cumulative pre-tax reorganization expenses of approximately $100 million, of which a total of $48 million has already been incurred since the third quarter 2017.
Adjusted for dividends, diluted book value per common share increased by $0.29, or 1%, for the quarter and decreased by $6.43 or 11%, over the past twelve months.


1Operating income (loss) and operating income (loss) per diluted common share are non-GAAP financial measures as defined in SEC Regulation G. The reconciliations of non-GAAP measures to the most comparable GAAP financial measures (net income (loss) available (attributable) to common shareholders and diluted earnings per common share, respectively) are provided in table above, and a discussion of the rationale for the presentation of these items is included later in this release.
2Ex-PGAAP operating income, Ex-PGAAP operating income per diluted common share and Ex-PGAAP return on average common equity are non-GAAP financial measures as defined in SEC Regulation G. The reconciliation to the most comparable GAAP financial measures, (net income (loss) available (attributable) to common shareholders, diluted earnings per common share, and annualized return on average common equity, respectively) are provided in the table above, and a discussion of the rationale for the presentation of these items is included later in this release.
3 All comparisons are with the same period of the prior year, unless otherwise stated.

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 2 -


Segment Highlights

Insurance Segment
 
Three Months Ended June 30,
($ in thousands)
2018
 
2017
 
Change
Gross premiums written
$
1,026,644

 
$
764,202

 
34.3
 %
Net premiums written
598,179

 
496,109

 
20.6
 %
Net premiums earned
577,271

 
417,541

 
38.3
 %
Underwriting income (loss)
56,479

 
(2,932
)
 
nm

 
 
 
 
 
 
Underwriting ratios:
 
 
 
 
 
Current accident year loss ratio excluding catastrophe and weather-related losses
57.2
%
 
60.8
%
 
(3.6
)
Catastrophe and weather-related losses ratio
4.0
%
 
9.9
%
 
(5.9
)
Current accident year loss ratio
61.2
%
 
70.7
%
 
(9.5
)
Prior period reserve development
(4.2
%)
 
(4.7
%)
 
0.5

Net loss and loss expense ratio
57.0
%
 
66.0
%
 
(9.0
)
Acquisition cost ratio
15.7
%
 
14.9
%
 
0.8

Underwriting-related general and administrative expense ratio
17.7
%
 
19.9
%
 
(2.2
)
Combined ratio
90.4
%
 
100.8
%
 
(10.4
)
nm - not meaningful
Gross premiums written increased by $262 million, or 34%, which included gross premiums written of $291 million attributable to property, professional lines, marine, and credit and political risk lines associated with the acquisition of Novae. Excluding the impact of the acquisition of Novae, gross premiums written decreased by $29 million, or 4% (6% on a constant currency basis4) largely attributable to property lines following our exit from onshore energy business last year, partially offset by an increase in premiums written in professional lines driven by new business.
Net premiums written increased by $102 million, or 21%. Excluding the impact of the acquisition of Novae, net premiums written decreased by 16% (19% on a constant currency basis) reflecting the decrease in gross premiums written, together with an increase in premiums ceded in property and professional lines.
The current accident year loss ratio excluding catastrophe and weather-related losses decreased in the second quarter compared to the same period in 2017, primarily due to favorable changes in business mix (predominantly related to the acquisition of Novae), together with favorable impact of rate and trend, partially offset by an increase in attritional loss experience in property lines.
Pre-tax catastrophe and weather-related losses were $23 million primarily attributable to weather events this quarter, compared to $41 million in the same period in 2017.
Net favorable prior year loss reserve development was $24 million this quarter, compared to $20 million in the same period in 2017.
The acquisition cost ratio increased in the quarter due to changes in business mix.
Underwriting income included the recognition of premium attributable to Novae's balance sheet at October 2, 2017, without the recognition of the associated acquisition costs, which were written off at the purchase date.

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 3 -


The absence of $38 million of acquisition expense related to premiums earned in the quarter benefited our acquisition cost ratio by 6.6 points.
The general and administrative expense ratio decreased in the quarter largely attributable to an increase in net premiums earned, partially offset by general and administrative expenses associated with the acquisition of Novae.
 
Six Months Ended June 30,
($ in thousands)
2018
 
2017
 
Change
Gross premiums written
$
1,907,492

 
$
1,309,464

 
45.7
 %
Net premiums written
1,146,071

 
852,945

 
34.4
 %
Net premiums earned
1,157,330

 
809,504

 
43.0
 %
Underwriting income (loss)
125,920

 
8,731

 
nm

 
 
 
 
 

Underwriting ratios:
 
 
 
 

Current accident year loss ratio excluding catastrophe and weather-related losses
55.8
%
 
59.6
%
 
(3.8
)
Catastrophe and weather-related losses ratio
4.5
%
 
7.6
%
 
(3.1
)
Current accident year loss ratio
60.3
%
 
67.2
%
 
(6.9
)
Prior period reserve development
(4.1
%)
 
(3.4
%)
 
(0.7
)
Net loss and loss expense ratio
56.2
%
 
63.8
%
 
(7.6
)
Acquisition cost ratio
15.4
%
 
14.4
%
 
1.0

Underwriting-related general and administrative expense ratio
17.7
%
 
20.8
%
 
(3.1
)
Combined ratio
89.3
%
 
99.0
%
 
(9.7
)

Gross premiums written increased by $598 million, or 46%, which included gross premiums written of $593 million attributable to property, marine, professional lines, and credit and political risk lines associated with the acquisition of Novae.
Net premiums written increased by $293 million or 34%. Excluding the impact of the acquisition of Novae, net premiums written decreased by 8% (11% on a constant currency basis) reflecting the increase in premiums ceded in property and professional lines.
Underwriting income increased in the six months ended June 30, 2018 principally associated with an increase in net premiums earned, a decrease in catastrophe and weather-related losses, an increase in net favorable prior year development, a decrease in the current accident year loss ratio excluding catastrophe and weather-related losses and a decrease in general and administrative expense ratio.
Underwriting income included the recognition of premium attributable to Novae's balance sheet at October 2, 2017, without the recognition of the associated acquisition costs, which were written off at the purchase date. The absence of $76 million of acquisition expense related to premiums earned in the quarter benefited our acquisition cost ratio by 6.6 points.


4Amounts presented on a constant currency basis are non-GAAP financial measures as defined in SEC Regulation G. The constant currency basis is calculated by applying the average foreign exchange rate from the current year to prior year amounts. The reconciliations to the most comparable GAAP financial measures are provided in this release, as is a discussion of the rationale for the presentation of these items.

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 4 -


Reinsurance Segment
 
Three Months Ended June 30,
($ in thousands)
2018
 
2017
 
Change
Gross premiums written
$
624,181

 
$
598,125

 
4.4
 %
Net premiums written
402,276

 
459,908

 
(12.5
)%
Net premiums earned
608,277

 
563,890

 
7.9
 %
Underwriting income (loss)
59,247

 
59,944

 
(1
)%
 
 
 
 
 
 
Underwriting ratios:
 
 
 
 
 
Current accident year loss ratio excluding catastrophe and weather-related losses
65.5
%
 
66.1
%
 
(0.6
)
Catastrophe and weather-related losses ratio
2.5
%
 
1.6
%
 
0.9

Current accident year loss ratio
68.0
%
 
67.7
%
 
0.3

Prior period reserve development
(5.9
%)
 
(9.1
%)
 
3.2

Net loss and loss expense ratio
62.1
%
 
58.5
%
 
3.6

Acquisition cost ratio
23.2
%
 
25.2
%
 
(2.0
)
Underwriting-related general and administrative expense ratio
5.4
%
 
6.1
%
 
(0.7
)
Combined ratio
90.7
%
 
89.7
%
 
1.0


Gross premiums written increased by $26 million, or 4%, which included gross premiums written of $33 million attributable to catastrophe, marine and aviation lines associated with the acquisition of Novae. Excluding the impact of the acquisition of Novae, gross premiums written decreased by $7 million, or 1% (2% on a constant currency basis) attributable to liability and catastrophe lines, partially offset by an increase in credit and surety lines. The decrease in liability was largely due to timing differences and a lower level of premiums written on a multi year basis. The decrease in catastrophe lines was primarily due to premium adjustments, together with a lower level of premiums written on a multi year basis and new business. The increase in credit and surety lines was largely due to favorable premiums adjustments and new business.
Net premiums written decreased by $58 million, or 13%, in the second quarter of 2018, compared to the same periods in 2017. Excluding the impact of the acquisition of Novae, net premiums written decreased by 21% (23% on a constant currency basis) reflecting the decrease in gross premiums written in the quarter, together with an increase in premiums ceded in accident and health, catastrophe, and agriculture lines.
The current accident year loss ratio excluding catastrophe and weather-related losses decreased in the second quarter primarily due favorable impact of rate and trend, partially offset by changes in business mix.
Pre-tax catastrophe and weather-related losses were $15 million primarily attributable to U.S. weather-related events this quarter, compared to $9 million reported during the same period in 2017.
Net favorable prior year reserve development was $36 million this quarter compared to $51 million in the second quarter of 2017.
The acquisition cost ratio decreased primarily due to changes in business mix.

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 5 -


Underwriting income included the recognition of premium attributable to Novae's balance sheet at October 2, 2017, without the recognition of the associated acquisition costs, which were written off at the purchase date. The absence of $2 million of acquisition expense related to premiums earned in the quarter benefited our acquisition cost ratio by 0.2 points.
The general and administrative expense ratio decreased in the quarter largely attributable to arrangements with strategic capital partners, partially offset by general and administrative expenses associated with the acquisition of Novae.
 
Six Months Ended June 30,
($ in thousands)
2018
 
2017
 
Change
Gross premiums written
$
2,406,128

 
$
1,964,735

 
22.5
 %
Net premiums written
1,840,255

 
1,612,031

 
14.2
 %
Net premiums earned
1,195,620

 
1,110,629

 
7.7
 %
Underwriting income (loss)
133,543

 
64,668

 
nm

 
 
 
 
 
 
Underwriting ratios:
 
 
 
 
 
Current accident year loss ratio excluding catastrophe and weather-related losses
63.8
%
 
66.7
%
 
(2.9
)
Catastrophe and weather-related losses ratio
1.9
%
 
2.1
%
 
(0.2
)
Current accident year loss ratio
65.7
%
 
68.8
%
 
(3.1
)
Prior period reserve development
(5.7
%)
 
(6.2
%)
 
0.5

Net loss and loss expense ratio
60.0
%
 
62.6
%
 
(2.6
)
Acquisition cost ratio
23.7
%
 
25.0
%
 
(1.3
)
Underwriting-related general and administrative expense ratio
5.8
%
 
6.4
%
 
(0.6
)
Combined ratio
89.5
%
 
94.0
%
 
(4.5
)
nm - not meaningful
Gross premiums written increased by $441 million, or 22%, which included gross premiums written of $83 million attributable to catastrophe, marine and aviation lines associated with the acquisition of Novae. In addition, gross premiums written increased by $358 million, or 18% (14% on a constant currency basis), attributable to motor, credit and surety, accident and health, and catastrophe lines, partially offset by a decrease in marine lines. The increase in motor was largely due to timing differences, rate increases particularly in U.K. motor business following the reduction in the Ogden Rate during the first quarter of 2017, together with new business. The increase in credit and surety lines was largely due to timing differences and favorable premiums adjustments. The increase in accident and health was largely due to new business. The increase in catastrophe lines was largely due to increased line sizes on a number of treaties, a lower level of premiums written on a multi year basis and new business. These increases were partially offset by a decrease in marine lines due to the non-renewal of a large treaty.
Net premiums written increased by $228 million, or 14%. Excluding the impact of the acquisition of Novae, net premiums written increased by 11% (5% on a constant currency basis) reflecting the increase in gross premiums written, partially offset by an increase in premiums ceded in accident and health, catastrophe, credit and surety lines.

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 6 -


Underwriting income increased in the six months ended June 30, 2018 principally associated with an increase in net premiums earned, a decrease in the current accident year loss ratio excluding catastrophe and weather-related losses and a decrease in general and administrative expense ratio.
Underwriting income included the recognition of premium attributable to Novae's balance sheet at October 2, 2017, without the recognition of the associated acquisition costs, which were written off at the purchase date. The absence of $4 million of acquisition expense related to premiums earned in the quarter benefited our acquisition cost ratio by 0.3 points.



AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 7 -


Investments

Net investment income of $110 million for the quarter was comparable to $106 million in second quarter of 2017, and $101 million in first quarter of 2018. Net realized and unrealized investment losses recognized in net income for the quarter were $45 million, compared to net realized investment losses of $4 million in the second quarter of 2017, and net realized and unrealized investment losses of $15 million in the first quarter of 2018.

Pre-tax total return on cash and investments5 was 0% including foreign exchange movements (0.3% excluding foreign exchange movements6), as net investment income generated in the quarter was offset by net realized and unrealized investment losses driven by an increase in U.S. Treasury rates together with the strengthening of the U.S. dollar against the euro and the pound sterling. The prior year period pre-tax total return was 1.2% including foreign exchange movements (1.0% excluding foreign exchange movements). Our fixed income portfolio book yield at June 30, 2018 was 2.8%, while the market yield was 3.4%.

5 Pre-tax total return on cash and investments includes net investment income (loss), net investment gains (losses), interest in income (loss) of equity method investments and change in unrealized investment gains (losses) generated by average cash and investment balances. Total cash and invested assets represents the total cash, fixed maturity securities, equity securities, mortgage loans, other investments, equity method investments, short-term investments, accrued interest receivable and net receivable (payable) for investments sold (purchased).
6 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 $(59)m and $28m for the three months ended June 30, 2018 and 2017, respectively, and foreign exchange gains (losses) of $(19)m and $40m for the six months ended June 30, 2018 and 2017, respectively.

Conference Call

We will host a conference call on Thursday, July 26, 2018 at 9:30 a.m. (Eastern) to discuss the second quarter financial results and related matters. The teleconference can be accessed by dialing (888) 317-6003 (U.S. callers) or (412) 317-6061 (international callers) approximately ten minutes in advance of the call and entering the passcode 7933287. A live, listen-only webcast of the call will also be available via the Investor Information section of our website at www.axiscapital.com. A replay of the teleconference will be available for two weeks by dialing (877) 344-7529 (U.S. callers) or (412) 317-0088 (international callers) and entering the passcode 10121836. The webcast will be archived in the Investor Information section of our website.

In addition, a financial supplement relating to our financial results for the quarter ended June 30, 2018 is available in the Investor Information section of the Company's website.

About AXIS Capital
AXIS Capital is a global provider of specialty lines insurance and treaty reinsurance with shareholders' equity at June 30, 2018 of $5.3 billion and locations in Bermuda, the United States, Europe, Singapore, Middle East, Canada, and

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 8 -


Latin America. Its operating subsidiaries have been assigned a rating of "A+" ("Strong") by Standard & Poor's and "A+" ("Superior") by A.M. Best. For more information about AXIS Capital, visit our website at www.axiscapital.com.

Website and Social Media Disclosure
We use our website (www.axiscapital.com) and our corporate Twitter (@AXIS_Capital) and LinkedIn (AXIS Capital) accounts as channels of distribution of Company information.  The information we post through these channels may be deemed material.  Accordingly, investors should monitor these channels, in addition to following our press releases, SEC filings and public conference calls and webcasts.  In addition, you may automatically receive e-mail alerts and other information about AXIS when you enroll your e-mail address by visiting the “E-mail Alerts” in the Investor Information section of our website (www.axiscapital.com). The contents of our website and social media channels are not, however, a part of this press release.

Please be sure to follow AXIS Capital on LinkedIn.

LinkedIn: http://bit.ly/2kRYbZ5

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 9 -


Capitalization / Shareholders’ Equity

Total capital7 at June 30, 2018 was $6.6 billion, including $1.4 billion of senior notes and notes payable and $775 million of preferred equity, compared to $6.7 billion at December 31, 2017. The decrease in total capital is attributable to an increase unrealized investment losses reported in other comprehensive income, following a decrease in the market value of our fixed income portfolio, and common share dividends declared. These decreases were partially offset by the net income generated in the six months ended June 30, 2018.

Diluted Book Value per Common Share, calculated on a treasury stock basis, decreased by $0.10 in the current quarter and by $7.98 over the past twelve months, to $52.47. The decrease in the quarter was primarily driven by unrealized investment losses reported in other comprehensive income and common share dividends declared, partially offset by the net income generated in the quarter. The decrease over the past twelve months was driven by the net loss generated during the period, unrealized investment losses reported in other comprehensive income, and common share dividends declared.

During the second quarter of 2018, the Company declared dividends of $0.39 per common share, with total dividends declared of $1.55 per common share over the past twelve months. Adjusted for dividends declared, the diluted book value per common share increased by $0.29, or 1%, for the quarter and decreased by $6.43 or 11%, over the past twelve months.
















7 Total capital represents the sum of total shareholders' equity and senior notes and notes payable.

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 10 -


AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2018 (UNAUDITED) AND DECEMBER 31, 2017
 
 
 
 
 
 
 
 
 
 
 
2018
 
2017
 
 
 
 
 
 
 
 
 
 
(in thousands)
Assets
 
 
 
Investments:
 
Fixed maturities, available for sale, at fair value
$
11,739,305

 
$
12,622,006

Equity securities, at fair value
417,212

 
635,511

Mortgage loans, held for investment, at amortized cost and fair value
344,721

 
325,062

Other investments, at fair value
916,191

 
1,009,373

Equity method investments
110,488

 
108,597

Short-term investments, at amortized cost and fair value
168,944

 
83,661

Total investments
13,696,861

 
14,784,210

Cash and cash equivalents
1,089,407

 
948,626

Restricted cash and cash equivalents
437,286

 
415,160

Accrued interest receivable
79,109

 
81,223

Insurance and reinsurance premium balances receivable
3,810,316

 
3,012,419

Reinsurance recoverable on unpaid and paid losses
3,289,236

 
3,338,840

Deferred acquisition costs
708,679

 
474,061

Prepaid reinsurance premiums
1,157,228

 
809,274

Receivable for investments sold
16,430

 
11,621

Goodwill
102,003

 
102,003

Intangible assets
250,541

 
257,987

Value of business acquired
97,529

 
206,838

Other assets
283,861

 
317,915

 
Total assets
 
 
$
25,018,486

 
$
24,760,177

 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
Reserve for losses and loss expenses
$
11,952,734

 
$
12,997,553

Unearned premiums
4,594,150

 
3,641,399

Insurance and reinsurance balances payable
1,282,585

 
899,064

Senior notes and notes payable
1,377,206

 
1,376,529

Payable for investments purchased
186,180

 
100,589

Other liabilities
372,626

 
403,779

 
Total liabilities
 
 
19,765,481

 
19,418,913

 
 
 
 
 
 
 
Shareholders' equity
 
 
 
 
Preferred shares
775,000

 
775,000

Common shares
2,206

 
2,206

Additional paid-in capital
2,295,633

 
2,299,166

Accumulated other comprehensive income (loss)
(163,168
)
 
92,382

Retained earnings
6,135,625

 
5,979,666

Treasury shares, at cost
(3,792,291
)
 
(3,807,156
)
 
Total shareholders' equity
5,253,005

 
5,341,264

 
 
 
 
 
 
Total liabilities and shareholders' equity
$
25,018,486

 
$
24,760,177


AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 11 -


AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2018 AND 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
Six months ended
 
 
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
 
 
 
 
(in thousands, except per share amounts)
Revenues
 
 
 
 
 
 
 
 
Net premiums earned
$
1,185,548

 
$
981,431

 
$
2,352,950

 
$
1,920,133

 
Net investment income
109,960

 
106,063

 
210,961

 
204,728

 
Net investment losses
(45,093
)
 
(4,392
)
 
(59,923
)
 
(29,443
)
 
Other insurance related income (losses)
3,730

 
2,560

 
10,335

 
(1,222
)
 
Bargain purchase gain

 
15,044

 

 
15,044

 
Total revenues
 
1,254,145

 
1,100,706

 
2,514,323

 
2,109,240

 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
Net losses and loss expenses
706,641

 
605,332

 
1,367,986

 
1,212,273

 
Acquisition costs
231,952

 
204,361

 
461,212

 
394,153

 
General and administrative expenses
165,213

 
147,816

 
335,049

 
309,075

 
Foreign exchange losses (gains)
(44,099
)
 
36,118

 
(6,239
)
 
57,583

 
Interest expense and financing costs
17,098

 
12,751

 
33,861

 
25,543

 
Reorganization expenses
18,772

 

 
31,825

 

 
Amortization of value of business acquired
53,407

 

 
110,517

 

 
Amortization of intangible assets
4,029

 

 
6,811

 

 
Total expenses
 
1,153,013

 
1,006,378

 
2,341,022

 
1,998,627

 
 
 
 
 
 
 
 
 
 
Income before income taxes and interest in income (loss) of equity method investments
101,132

 
94,328

 
173,301

 
110,613

 
Income tax (expense) benefit
(996
)
 
3,333

 
40

 
12,670


Interest in income (loss) of equity method investments
3,378

 
(1,975
)
 
3,378

 
(7,741
)
Net income
103,514

 
95,686

 
176,719

 
115,542

 
Preferred share dividends
10,656

 
10,656

 
21,313

 
25,497

Net income available to common shareholders
$
92,858

 
$
85,030

 
$
155,406

 
$
90,045

 
 
 
 
 
 
 
 
 
 
Per share data
 
 
 
 
 
 
 
Net income per common share:
 
 
 
 
 
 
 
Basic net income
$
1.11

 
$
1.01

 
$
1.86

 
$
1.06

Diluted net income
$
1.11

 
$
1.01

 
$
1.85

 
$
1.05

Weighted average number of common shares outstanding - basic
83,539

 
84,141

 
83,431

 
85,076

Weighted average number of common shares outstanding - diluted
83,984

 
84,511

 
83,853

 
85,647

Cash dividends declared per common share
$
0.39

 
$
0.38

 
$
0.78

 
$
0.76






AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 12 -


AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED SEGMENTAL DATA (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 2018 AND 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
2017
 
Insurance
 
Reinsurance
 
Total
 
Insurance
 
Reinsurance
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
(in thousands)
Gross premiums written
$
1,026,644

 
$
624,181

 
$
1,650,825

 
$
764,202

 
$
598,125

 
$
1,362,327

Net premiums written
598,179

 
402,276

 
1,000,455

 
496,109

 
459,908

 
956,017

Net premiums earned
577,271

 
608,277

 
1,185,548

 
417,541

 
563,890

 
981,431

Other insurance related income
1,214

 
2,516

 
3,730

 
508

 
2,052

 
2,560

Net losses and loss expenses
(328,773
)
 
(377,868
)
 
(706,641
)
 
(275,465
)
 
(329,867
)
 
(605,332
)
Acquisition costs
(90,864
)
 
(141,088
)
 
(231,952
)
 
(62,390
)
 
(141,971
)
 
(204,361
)
Underwriting-related general and
 
 
 
 
 
 
 
 
 
 
 
administrative expenses(8)
(102,369
)
 
(32,590
)
 
(134,959
)
 
(83,126
)
 
(34,160
)
 
(117,286
)
Underwriting income (9)
$
56,479

 
$
59,247

 
115,726

 
$
(2,932
)
 
$
59,944

 
57,012

 
 
 
 
 
 
 
 
 
 
 
 
Corporate expenses(8)
 
 
 
 
(30,254
)
 
 
 
 
 
(30,530
)
Net investment income
 
 
 
 
109,960

 
 
 
 
 
106,063

Net investment losses
 
 
 
 
(45,093
)
 
 
 
 
 
(4,392
)
Foreign exchange (losses) gains
 
 
 
 
44,099

 
 
 
 
 
(36,118
)
Interest expense and financing costs
 
 
 
 
(17,098
)
 
 
 
 
 
(12,751
)
Bargain purchase gain
 
 
 
 

 
 
 
 
 
15,044

Reorganization expenses
 
 
 
 
(18,772
)
 
 
 
 
 

Amortization of value of business acquired
 
 
 
 
(53,407
)
 
 
 
 
 

Amortization of intangible assets
 
 
 
 
(4,029
)
 
 
 
 
 

Income before income taxes and interest in income (loss) of equity method investments
 
 
 
 
$
101,132

 
 
 
 
 
$
94,328

 
 
 
 
 
 
 
 
 
 
 
 
Net loss and loss expense ratio
57.0
%
 
62.1
%
 
59.6
%
 
66.0
%
 
58.5
%
 
61.7
%
Acquisition cost ratio
15.7
%
 
23.2
%
 
19.6
%
 
14.9
%
 
25.2
%
 
20.8
%
General and administrative
 
 
 
 
 
 
 
 
 
 
 
expense ratio
17.7
%
 
5.4
%
 
13.9
%
 
19.9
%
 
6.1
%
 
15.1
%
Combined ratio
90.4
%
 
90.7
%
 
93.1
%
 
100.8
%
 
89.7
%
 
97.6
%
 
 
 
 
 
 
 
 
 
 
 
 
8Underwriting-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 included corporate expenses of $30 million and $31 million for the three months ended June 30, 2018 and 2017, respectively. Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.
9Consolidated underwriting income 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 measure, is presented above.

On January 23, 2018, AXIS Capital announced plans to realign its accident and health business by integrating this business and its operations into the Company's insurance and reinsurance operations. This realignment took place in the first quarter of 2018. Financial results relating to this business were previously included wholly in the results of the insurance segment. As a result of the realignment, effective January 1, 2018, accident and health results are included in the results of both the insurance and reinsurance segments. The results are inclusive of underwriting-related general and administrative expenses attributable to accident and health business. In addition, to facilitate comparison of information across periods, certain reclassifications have been made to prior year amounts to conform to the current year's presentation. These reclassifications did not impact results of operations, financial condition or liquidity.

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 13 -


AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED SEGMENTAL DATA (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2018 AND 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
2017
 
Insurance
 
Reinsurance
 
Total
 
Insurance
 
Reinsurance
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
(in thousands)
Gross premiums written
$
1,907,492

 
$
2,406,128

 
$
4,313,620

 
$
1,309,464

 
$
1,964,735

 
$
3,274,199

Net premiums written
1,146,071

 
1,840,255

 
2,986,326

 
852,945

 
1,612,031

 
2,464,976

Net premiums earned
1,157,330

 
1,195,620

 
2,352,950

 
809,504

 
1,110,629

 
1,920,133

Other insurance related income (losses)
1,833

 
8,502

 
10,335

 
551

 
(1,773
)
 
(1,222
)
Net losses and loss expenses
(650,312
)
 
(717,674
)
 
(1,367,986
)
 
(516,549
)
 
(695,724
)
 
(1,212,273
)
Acquisition costs
(178,193
)
 
(283,019
)
 
(461,212
)
 
(116,394
)
 
(277,759
)
 
(394,153
)
Underwriting-related general and
 
 
 
 
 
 
 
 
 
 
 
administrative expenses(10)
(204,738
)
 
(69,886
)
 
(274,624
)
 
(168,381
)
 
(70,705
)
 
(239,086
)
Underwriting income (loss)(11)
$
125,920

 
$
133,543

 
259,463

 
$
8,731

 
$
64,668

 
73,399

 
 
 
 
 
 
 
 
 
 
 
 
Corporate expenses(10)
 
 
 
 
(60,425
)
 
 
 
 
 
(69,989
)
Net investment income
 
 
 
 
210,961

 
 
 
 
 
204,728

Net investment losses
 
 
 
 
(59,923
)
 
 
 
 
 
(29,443
)
Foreign exchange (losses) gains
 
 
 
 
6,239

 
 
 
 
 
(57,583
)
Interest expense and financing costs
 
 
 
 
(33,861
)
 
 
 
 
 
(25,543
)
Bargain purchase gain
 
 
 
 

 
 
 
 
 
15,044

Reorganization expenses
 
 
 
 
(31,825
)
 
 
 
 
 

Amortization of value of business acquired
 
 
 
 
(110,517
)
 
 
 
 
 

Amortization of intangible assets
 
 
 
 
(6,811
)
 
 
 
 
 

Income before income taxes and interest in income (loss) of equity method investments
 
 
 
 
$
173,301

 
 
 
 
 
$
110,613

 
 
 
 
 
 
 
 
 
 
 
 
Net loss and loss expense ratio
56.2
%
 
60.0
%
 
58.1
%
 
63.8
%
 
62.6
%
 
63.1
%
Acquisition cost ratio
15.4
%
 
23.7
%
 
19.6
%
 
14.4
%
 
25.0
%
 
20.5
%
General and administrative
 
 
 
 
 
 
 
 
 
 
 
expense ratio
17.7
%
 
5.8
%
 
14.3
%
 
20.8
%
 
6.4
%
 
16.2
%
Combined ratio
89.3
%
 
89.5
%
 
92.0
%
 
99.0
%
 
94.0
%
 
99.8
%
10Underwriting-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 included corporate expenses of $60 million and $70 million for the six months ended June 30, 2018 and 2017, respectively. Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.
11Consolidated 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 measure, is presented above.




AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 14 -


AXIS CAPITAL HOLDINGS LIMITED
NON-GAAP FINANCIAL MEASURES RECONCILIATION (UNAUDITED)
OPERATING INCOME, OPERATING RETURN ON AVERAGE COMMON EQUITY
AND UNDERWRITING-RELATED GENERAL AND ADMINISTRATIVE EXPENSES
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2018 AND 2017
 
 
 
 
 
 
 
 
 
Three months ended
 
Six months ended
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
(in thousands, except per share amounts)
 
 
 
 
 
 
 
 
Net income available to common shareholders
$
92,858

 
$
85,030

 
$
155,406

 
$
90,045

Net investment losses, net of tax(12)
40,562

 
4,450

 
56,535

 
28,679

Foreign exchange losses (gains), net of tax(13)
(43,320
)
 
36,057

 
(9,794
)
 
57,780

Reorganization expenses, net of tax(14)
16,216

 

 
26,798

 

Bargain purchase gain(15)

 
(15,044
)
 

 
(15,044
)
Operating income
$
106,316

 
$
110,493

 
$
228,945

 
$
161,460


 
 
 
 
 
 
 
Earnings per common share - diluted
$
1.11

 
$
1.01

 
$
1.85

 
$
1.05

Net investment losses, net of tax
0.49

 
0.05

 
0.68

 
0.34

Foreign exchange losses (gains), net of tax
(0.52
)
 
0.43

 
(0.12
)
 
0.68

Reorganization expenses, net of tax
0.19

 

 
0.32

 

Bargain purchase gain

 
(0.18
)
 

 
(0.18
)
Operating income per common share - diluted
$
1.27

 
$
1.31

 
$
2.73

 
$
1.89

 
 
 
 
 
 
 
 
Weighted average common shares and common share equivalents - diluted
83,984

 
84,511

 
83,853

 
85,647

 
 
 
 
 
 
 
 
Average common shareholders' equity
4,483,700

 
5,110,993

 
4,522,135

 
5,131,996

 
 
 
 
 
 
 
 
Annualized return on average common equity
8.3
%
 
6.7
%
 
6.9
%
 
3.5
%
 
 
 
 
 
 
 
 
Operating return on average common equity(16)
9.5
%
 
8.6
%
 
10.1
%
 
6.3
%
 
 
 
 
 
 
 
 
12Tax cost (benefit) of ($4,531) and $58 for three months ended June 30, 2018 and 2017, respectively, and $(3,388) and $(764) for the six months ended June 30, 2018 and 2017, 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.
13Tax cost (benefit) of $779 and ($61) for the three months ended June 30, 2018 and 2017, respectively, and $(3,555) and $197 for the six months ended June 30, 2018 and 2017, 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.
14Tax cost (benefit) of $(2,556) and $(5,027) for the three and six months ended June 30, 2018, 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.
15Tax impact is nil.
16Operating return on average common equity is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to the most comparable GAAP financial measure annualized return on average common equity is provided in the table above, and a discussion of the rationale for the presentation of these items is included later in this release.



AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 15 -


AXIS CAPITAL HOLDINGS LIMITED
NON-GAAP FINANCIAL MEASURES RECONCILIATION (UNAUDITED)
EX-PGAAP OPERATING INCOME, EX-PGAAP OPERATING RETURN ON AVERAGE COMMON EQUITY
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2018 AND 2017
 
 
 
 
 
 
 
 
 
Three months ended
 
Six months ended
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
 
(in thousands, except per share amounts)
 
 
 
 
 
 
 
 
Net income available to common shareholders
$
92,858

 
$
85,030

 
$
155,406

 
$
90,045

Net investment losses, net of tax(12)
40,562

 
4,450

 
56,535

 
28,679

Foreign exchange losses (gains), net of tax(13)
(43,320
)
 
36,057

 
(9,794
)
 
57,780

Reorganization expenses, net of tax(14)
16,216

 

 
26,798

 

Bargain purchase gain(15)

 
(15,044
)
 

 
(15,044
)
Operating income
$
106,316

 
$
110,493

 
$
228,945

 
$
161,460

Amortization of VOBA and intangible assets, net of tax(17)
45,626

 

 
91,885

 

Amortization of acquisition costs, net of tax(18)
(32,109
)
 

 
(64,873
)
 

Ex-PGAAP operating income(2)
$
119,833

 
$
110,493

 
$
255,957

 
$
161,460

 
 
 
 
 
 
 
 
Earnings per common share - diluted
$
1.11

 
$
1.01

 
$
1.85

 
$
1.05

Net investment losses, net of tax
0.49

 
0.05

 
0.68

 
0.34

Foreign exchange losses (gains), net of tax
(0.52
)
 
0.43

 
(0.12
)
 
0.68

Reorganization expenses, net of tax
0.19

 

 
0.32

 

Bargain purchase gain

 
(0.18
)
 

 
(0.18
)
Operating income per common share - diluted
$
1.27

 
$
1.31

 
$
2.73

 
$
1.89

Amortization of VOBA and intangible assets, net of tax(17)
0.54

 

 
1.10

 

Amortization of acquisition cost, net of tax(18)
(0.38
)
 

 
(0.77
)
 

Ex-PGAAP operating income per common share - diluted(2)
$
1.43

 
$
1.31

 
$
3.05

 
$
1.89

 
 
 
 
 
 
 
 
Weighted average common shares and common share equivalents - diluted
83,984

 
84,511

 
83,853

 
85,647

 
 
 
 
 
 
 
 
Average common shareholders' equity
4,483,700

 
5,110,993

 
4,522,135

 
5,131,996

 
 
 
 
 
 
 
 
Annualized return on average common equity
8.3
%
 
6.7
%
 
6.9
%
 
3.5
%
 
 
 
 
 
 
 
 
Operating return on average common equity(16)
9.5
%
 
8.6
%
 
10.1
%
 
6.3
%
 
 
 
 
 
 
 
 
Ex-PGAAP operating return on average common equity(2)
10.7
%
 
nm

 
11.3
%
 
nm

 
 
 
 
 
 
 
 
nm - not meaningful
17Tax cost (benefit) of $(10,702) and $(21,553) for the three and six months ended June 30, 2018, 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.
18Tax cost (benefit) of $7,532 and $15,217 for the three and six months ended June 30, 2018, 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.


AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 16 -


Cautionary Note Regarding Forward-Looking Statements

This release contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements contained in this release include our expectations regarding market conditions and information regarding our estimates of losses related to natural disasters on our results of operations. These statements involve risks, uncertainties and assumptions. Actual events or results may differ materially from our expectations. Important factors that could cause actual events or results to be materially different from our expectations include (1) the cyclical nature of the re(insurance) business leading to periods with excess underwriting capacity and unfavorable premium rates, (2) the occurrence and magnitude of natural and man-made disasters, (3) losses from war, terrorism and political unrest or other unanticipated losses, (4) actual claims exceeding our loss reserves, (5) general economic, capital and credit market conditions, (6) the failure of any of the loss limitation methods we employ, (7) the effects of emerging claims, coverage and regulatory issues, including uncertainty related to coverage definitions, limits, terms and conditions, (8) our inability to purchase reinsurance or collect amounts due to us, (9) the breach by third parties in our program business of their obligations to us, (10) difficulties with technology and/or data security, (11) the failure of our policyholders and intermediaries to pay premiums, (12) the failure of our cedants to adequately evaluate risks, (13) inability to obtain additional capital on favorable terms, or at all, (14) the loss of one or more key executives, (15) a decline in our ratings with rating agencies, (16) the loss of business provided to us by our major brokers and credit risk due to our reliance on brokers, (17) changes in accounting policies or practices, (18) the use of industry catastrophe models and changes to these models, (19) changes in governmental regulations and potential government intervention in our industry, (20) failure to comply with certain laws and regulations relating to sanctions and foreign corrupt practices, (21) increased competition, (22) 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, (23) fluctuations in interest rates, credit spreads, equity prices and/or currency values, (24) the failure to successfully integrate acquired businesses or realize the expected synergies resulting from such acquisitions, (25) the failure to realize the expected benefits or synergies relating to the Company's transformation program (26) changes in tax laws, and (27) 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. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 17 -


Non-GAAP Financial Measures

We present our results of operations in a 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 release, we present underwriting-related general and administrative expenses, consolidated underwriting income (loss), operating income (loss) (in total and on a per share basis), amounts presented on a constant currency basis, 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 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 individual 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 expenses are not incremental and/or directly attributable to our individual underwriting operations, these expenses 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 measure, is presented in the Consolidated Segmental Data section of this press release.


AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 18 -


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 (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 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 such, we believe it is appropriate to exclude net investment income and net investment gains (losses) from our underwriting profitability measure.

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, therefore, this revenue is excluded from consolidated underwriting income (loss).

Foreign exchange losses (gains) in our Consolidated Statement of Operations primarily relate to our net insurance-related liabilities. However, we manage our investment portfolio in such a way that unrealized and realized foreign exchange 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 senior notes. As these expenses are not incremental and/or directly attributable to our individual underwriting operations, these expenses are excluded from underwriting-related general and administrative expenses, and consolidated underwriting income (loss).

Reorganization expenses are primarily driven by business decisions, the nature and timing of which are not related to the underwriting process and are not representative of underlying business performance, therefore, these expenses are excluded from consolidated underwriting income (loss).

Amortization of intangible assets including VOBA arose from 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 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

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 19 -


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 Segmental Data section of this press release.

Operating Income (Loss)
Operating income (loss) represents after-tax operational results without consideration of after-tax net investment gains (losses), foreign exchange losses (gains), and reorganization expenses and bargain purchase gain.

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 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 (loss) and foreign exchange losses (gains) realized upon the sale of these investments in net investment gains (losses). These unrealized and realized foreign exchange rate movements generally offset a large portion of the foreign exchange losses (gains) reported separately in net income (loss) available (attributable) to common shareholders, thereby minimizing the impact of foreign exchange rate movements on total shareholders’ equity. As such, the foreign exchange losses (gains) in our Consolidated Statement of Operations in isolation are not a fair representation of the performance of our business.

Reorganization expenses are primarily driven by business decisions, the nature and timing of which are not related to the underwriting process and are not representative of underlying business performance, therefore, these expenses are excluded from consolidated underwriting income (loss).

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, therefore, this revenue is excluded from consolidated underwriting income (loss).

Certain users of our financial statements evaluate performance excluding after-tax net investment gains (losses), foreign exchange losses (gains), reorganization expenses and bargain purchase gain to understand the profitability of recurring sources of income.

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 20 -



We believe that showing net income (loss) available (attributable) to common shareholders exclusive of net investment gains (losses), foreign exchange losses (gains), reorganization expenses and bargain purchase gain 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 measure, is presented in the Non-GAAP Financial Measures Reconciliation section in this release.

Constant Currency Basis
We present gross premiums written, net premiums written and net premiums earned on a constant currency basis in this release. The amounts presented on a constant currency basis are calculated by applying the average foreign exchange rate from the current year to the prior year amounts. We believe this presentation enables investors and other users of our financial information to analyze growth in gross premiums written, net premiums written and net premiums earned on a constant basis. The reconciliation to gross premiums written, net premiums written and net premiums earned on a GAAP basis is presented in Insurance Segment and Reinsurance Segment sections in this release.
 
Pre-Tax Total Return on Cash and Investments excluding Foreign Exchange Movement
Pre-tax total return on cash and investments excluding foreign exchange movements measures net investment income (loss), net investments gains (losses), interest in income (loss) of equity method investments, and change in unrealized gains (losses) generated by our average cash and investment balances. The reconciliation of pre-tax total return on cash and investments excluding foreign exchange movements to pre-tax total return on cash and investments, the most comparable GAAP financial measure is presented in the Investments section in this release.

We believe this presentation enables investors and other users of our financial information to analyze the performance of our investments.

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

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 21 -



Ex-PGAAP operating income (loss) and ex-PGAAP operating ROACE
Ex-PGAAP operating income (loss) represents operating income (loss) adjusted for amortization of VOBA and intangible assets, net of tax and amortization of acquisition costs, net of tax associated with Novae's balance sheet at October 2, 2017. We present annualized operating return on average common equity adjusted for these purchase accounting impacts ("ex- PGAAP operating ROACE") in this release, which is derived from the ex-PGAAP operating income (loss) measure. Ex-PGAAP operating ROACE is calculated by dividing ex-PGAAP operating income (loss) by weighted average common shares and common share equivalents - diluted. The reconciliation of ex-PGAAP operating income (loss) to net income (loss) available (attributable) to common shareholders, the most comparable GAAP financial measure is also provided in the Non-GAAP Financial Measures Reconciliation in this release. We believe the presentation of ex-PGAAP operating ROACE enables investors and other users of our financial information to better analyze the performance of our business.

On October 2, 2017, AXIS Capital acquired Novae. The Company identified VOBA which represents the present value of the expected underwriting profit within policies that were in-force at the closing date of the transaction. In addition, the allocation of the purchase price to the assets acquired and liabilities assumed of Novae based on estimated fair values at the purchase date, resulted in the write-off of the deferred acquisition cost asset on Novae's balance sheet at the purchase date as the value of policies in-force on that date are considered within VOBA. Consequently, underwriting income (loss) in the three and six months ended June 30, 2018 included the recognition of premium attributable to Novae's balance sheet at the purchase date without the recognition of the associated acquisition costs.













AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 22 -
(Back To Top)

Section 3: EX-99.2 (SECOND QUARTER 2018 INVESTOR FINANCIAL SUPPLEMENT)

Exhibit







394355775_axislogoq12017a51.jpg
 



AXIS Capital Holdings Limited








INVESTOR FINANCIAL SUPPLEMENT

SECOND QUARTER 2018




394355775_axislogoq12017a51.jpg






 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 we file with the Securities and Exchange Commission pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934.
 
 




394355775_axislogoq12017a51.jpg

AXIS Capital Holdings Limited
FINANCIAL SUPPLEMENT TABLE OF CONTENTS
 
  
Page(s)
  
i - iv
  
II. Income Statements
  
 
 
b. Consolidated Statements of Operations - Quarterly
  
 
  
  
  
 
  
III. Balance Sheets
  
 
  
b. Cash and Invested Assets:
  
 
  
  
  
  
  
  
  
IV. Losses Reserve Analysis
  
 
  
  
  
  
V. Share Analysis
  
 
  
  
  
VI. Non-GAAP Financial Measures
  
 
  
 
 
 
 


394355775_axislogoq12017a51.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.

On January 23, 2018, AXIS Capital announced plans to realign its accident and health business by integrating this business and its operations into the Company's insurance and reinsurance operations. Through this realignment, the Company's accident and health business is expected to benefit from the greater scale and market presence of the Company's property and casualty insurance and reinsurance businesses and operations.

The realignment of the Company's accident and health business into the Company's insurance and reinsurance segments took place in the first quarter of 2018. Financial results relating to this business were previously included wholly in the results of the insurance segment of the Company. As a result of the realignment, effective January 1, 2018, accident and health results are included in the results of both the insurance and reinsurance segments of the Company. The results are inclusive of underwriting-related general and administrative expenses attributable to the Company’s accident and health business. In addition, to facilitate comparison of information across periods, certain reclassifications have been made to prior year amounts to conform to the current year's presentation. These reclassifications did not impact results of operations, financial condition or liquidity.

DEFINITIONS AND PRESENTATION
All financial information contained herein is unaudited, except for the consolidated balance sheets at December 31, 2017 and December 31, 2016 and consolidated statements of operations for the years then ended.
Amounts may not reconcile exactly 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 presentation contains "forward-looking statements" within the meaning of the federal securities laws. All statements, other than statements of historical facts included in this presentation, including
statements regarding our estimates, beliefs, expectations, intentions, strategies or projections, are “forward-looking statements”. In some cases, these statements can be identified by the use of forward-looking words such as “may,” “should,” “could,” “anticipate,” “estimate,” “expect,” “plan,” “believe,” “predict,” “potential,” “intend” or similar expressions. Our expectations are not guarantees and are based on currently available competitive, financial and economic data along with our operating plans. Forward-looking statements contained in this presentation may include, but are not limited to, information regarding our estimates of losses related to catastrophes and other large losses, measurements of potential losses in the fair market value of our investment portfolio, our expectations regarding pricing and other market conditions, our growth prospects, and valuations of the potential impact of movements in interest rates, equity securities' prices, credit spreads and foreign currency rates.

Forward-looking statements only reflect our expectations and are not guarantees of performance. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements. We believe that these factors include, but are not limited to, the following:

the 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,

i

394355775_axislogoq12017a51.jpg

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 realize the expected benefits or synergies relating to the Company's transformation initiative,
changes in tax laws, and
the other factors including but not limited to those set forth under Item 1A, ‘Risk Factors’ and Item 7, ‘Management’s Discussion and Analysis of Financial Condition and Results of Operations’ included in our Annual Report on Form 10-K for the year ended December 31, 2017 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.

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

394355775_axislogoq12017a51.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 energy installations. This line of business includes both primary and excess risks, some of which are catastrophe-exposed.
Marine: provides cover 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 cover 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 as well as 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 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 in addition to primary and excess of loss employers, public and products liability predominately in the UK. 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 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 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. Discontinued insurance lines include Financial Institutions, Professional Indemnity, International Liability, and International Direct Property.



iii

394355775_axislogoq12017a51.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 exposure in the underlying policies is principally property-related but other exposures including workers compensation and personal accident are also covered. The principal perils 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 principally written on an excess of loss basis.
Property: provides protection for property damage and related losses resulting from natural and man-made perils that are covered in underlying personal and commercial policies lines insurance policies written by our cedants. The predominant exposure is to 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 in this portfolio include windstorm, tornado and earthquake, but other perils such as freezes, riots, floods, industrial explosions, fires, hail and a number of other loss events are also included. This business is assumed on both a proportional and excess of loss basis.
Professional Lines: provides cover for 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. This business is written on both a proportional and excess of loss basis.
Credit and Surety: provides 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. Credit insurance cover is provided to mortgage guaranty insurers and government sponsored entities. Cover 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 is also offered.
Motor: provides cover 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 cover 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 covers are also written.
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 provided on both 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, aviation and personal accident reinsurance.
Accident and Health: includes specialty health, accidental death, travel, life and disability reinsurance products which are offered on both a quota share 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 lines include Motor Reinsurance, General Liability Reinsurance, and International Facultative Property.




iv

394355775_axislogoq12017a51.jpg

AXIS Capital Holdings Limited
FINANCIAL HIGHLIGHTS
 
 
 
 
Quarter ended June 30,
 
Six months ended June 30,
 
 
 
 
 
2018
 
2017
 
Change
 
2018
 
2017
 
Change
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
HIGHLIGHTS
 
Gross premiums written
 
$
1,650,825

 
$
1,362,327

 
21.2
%
 
 
$
4,313,620

 
$
3,274,199

 
31.7
%
 
Gross premiums written - Insurance
 
62.2
%
 
56.1
%
 
6.1

pts
 
44.2
%
 
45.5
%
 
(1.3
)
pts
Gross premiums written - Reinsurance
 
37.8
%
 
43.9
%
 
(6.1
)
pts
 
55.8
%
 
54.5
%
 
1.3

pts
Net premiums written
 
$
1,000,455

 
$
956,017

 
4.6
%
 
 
$
2,986,326

 
$
2,464,976

 
21.2
%
 
Net premiums earned
 
$
1,185,548

 
$
981,431

 
20.8
%
 
 
$
2,352,950

 
$
1,920,133

 
22.5
%
 
Net premiums earned - Insurance
 
48.7
%