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Section 1: 8-K (8-K)

axs-20201028
0001214816AXIS CAPITAL HOLDINGS LTDfalse00012148162020-10-282020-10-2800012148162020-04-292020-04-290001214816us-gaap:CommonStockMember2020-10-282020-10-280001214816us-gaap:SeriesEPreferredStockMember2020-10-282020-10-28

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): October 28, 2020
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))

Securities registered pursuant to Section 12(b) of the Exchange Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common shares, par value $0.0125 per shareAXSNew York Stock Exchange
Depositary Shares, each representing a 1/100th interest in a 5.50% Series E preferred shareAXS PRENew York Stock Exchange

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 2.02Results of Operations and Financial Condition.
On October 28, 2020, AXIS Capital Holdings Limited, a Bermuda company, issued a press release reporting its third quarter 2020 results and the availability of its third quarter 2020 investor financial supplement. The press release and the investor financial supplement are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively.
Item 9.01Financial Statements and Exhibits

(d) Exhibits
Press release dated October 28, 2020
Third quarter 2020 Investor Financial Supplement
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)





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: October 28, 2020
 
AXIS CAPITAL HOLDINGS LIMITED
By:/s/ Conrad D. Brooks
 Conrad D. Brooks
 General Counsel


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Section 2: EX-99.1 (PRESS RELEASE DATED OCTOBER 28, 2020)

Document


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Matt Rohrmann (Investor Contact):(212) 940-3339;investorrelations@axiscapital.com
Anna Kukowski (Media Contact):(212) 715-3574;anna.kukowski@axiscapital.com


AXIS CAPITAL REPORTS THIRD QUARTER 2020 RESULTS

For the third quarter of 2020, the Company reports:
•Improvement of 5.2 points in current accident year combined ratio, excluding catastrophe and weather-related losses, compared to the same period in the prior year
•Estimated pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, of $240 million, or 22.2 points
•No change to net loss estimate associated with first party coverages established for the COVID-19 pandemic in first quarter of 2020
•Book value per diluted common share of $54.75, a decrease of ($0.34), or (0.6%), compared to June 30, 2020
Pembroke, Bermuda, October 28, 2020 - AXIS Capital Holdings Limited ("AXIS Capital" or "the Company") (NYSE: AXS) today announced financial results for the third quarter ended September 30, 2020.
Commenting on the third quarter 2020 financial results, Albert Benchimol, President and CEO of AXIS Capital, said:
"This was a quarter in which the world and our industry were impacted by exceptional levels of cat loss activity. First and foremost, our thoughts are with the people and communities that were directly affected by these events, and we’re committed to providing our customers with top caliber claims service as we help to support their rebuilding efforts.

"The losses that we experienced during the quarter were consistent with our reduced catastrophe exposure, reflecting the changes that we’ve made in recent years to re-position our portfolio. We continue to see positive trends in our underlying performance, highlighted by a year-over-year improvement of 5.2 points to our current accident year combined ratio ex-cat and weather this quarter, bringing the year-to-date reduction to 4.5 points.

"This is encouraging progress and we look to the future with great optimism. AXIS is well positioned in its chosen markets, we have excellent relationships with our producers, and we’re seeing strong pricing momentum, highlighted by a 16% rate increase during the quarter in our Insurance segment. We’re confident that AXIS is on a strong path forward, as we continue to build a world class leader in specialty risks."
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 1 -

Consolidated Results*

•Net loss attributable to common shareholders for the third quarter of 2020 was $73 million, or ($0.87) per diluted common share, compared to net income available to common shareholders of $28 million, or $0.33 per diluted common share, for the third quarter of 2019.
•Net loss attributable to common shareholders for the nine months ended September 30, 2020 was $146 million, or ($1.73) per diluted common share, compared to net income available to common shareholders of $292 million, or $3.46 per diluted common share, for the same period in 2019.
•Operating loss1 for the third quarter of 2020 was $65 million, or ($0.77) per diluted common share1, compared to operating loss of $33 million, or ($0.39) per diluted common share, for the third quarter of 2019.
•Operating loss for the nine months ended September 30, 2020 was $158 million, or ($1.88) per diluted common share, compared to operating income of $209 million, or $2.48 per diluted common share, for the same period in 2019.
•Adjusted for dividends declared, the book value per diluted common share increased by $0.07, compared to June 30, 2020.
•Adjusted for dividends declared, the book value per diluted common share increased by $0.13, over the past twelve months.

























* Amounts may not reconcile due to rounding differences.
1Operating income (loss) and operating income (loss) per diluted common share are non-GAAP financial measures as defined in SEC Regulation G. The reconciliations to the most comparable GAAP financial measures, net income (loss) available (attributable) to common shareholders and earnings (loss) per diluted common share, respectively, and a discussion of the rationale for the presentation of these items are provided later in this press release. Loss per diluted common share and operating loss per diluted common share for the three and nine months ended September 30, 2020, were calculated using weighted average common shares outstanding due to the net loss attributable to common shareholders and operating loss recognized in these periods.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 2 -

Third Quarter Consolidated Underwriting Highlights2

•Gross premiums written decreased by $75 million, or 5%, ($78 million or 6% on a constant currency basis3), to $1.3 billion due to a decrease of $116 million, or 23% in the reinsurance segment, partially offset by an increase of $41 million, or 5% in the insurance segment.
•Net premiums written decreased by $40 million, or 5%, to $0.8 billion with a decrease of $68 million, or 20% in the reinsurance segment, partially offset by an increase of $28 million, or 5% in the insurance segment.
Three months ended September 30,
KEY RATIOS20202019Change
Current accident year loss ratio excluding catastrophe and weather-related losses4
58.5 %61.7 %(3.2 pts)
Catastrophe and weather-related losses ratio22.2 %14.1 %8.1 pts 
Current accident year loss ratio80.7 %75.8 %4.9 pts 
Prior year reserve development ratio(0.1 %)(2.3 %)2.2 pts 
Net losses and loss expenses ratio80.6 %73.5 %7.1 pts 
Acquisition cost ratio21.1 %22.5 %(1.4 pts)
General and administrative expense ratio12.8 %13.4 %(0.6 pts)
Combined ratio114.5 %109.4 %5.1 pts 
Current accident year combined ratio, excluding catastrophe and weather-related losses92.4 %97.6 %(5.2 pts)
•Estimated pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $240 million ($205 million, after-tax), (Insurance: $132 million; Reinsurance: $108 million) or 22.2 points, primarily attributable to Hurricanes Laura and Sally, the Midwest derecho, wildfires across the West Coast of the United States, the Beirut port explosion and other weather-related events this quarter, compared to $160 million (Insurance $41 million; Reinsurance $119 million), or 14.1 points in 2019.
•Net favorable prior year reserve development was $0.6 million (Insurance $0.3 million; Reinsurance $0.3 million), compared to $27 million (Insurance $15 million; Reinsurance $12 million) in 2019.








2 All comparisons are with the same period of the prior year, unless otherwise stated.
3 Amounts 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 and a discussion of the rationale for the presentation of these items are provided in this press release.
4 The current accident year loss ratio excluding catastrophe and weather-related losses was calculated by dividing the current accident year losses less estimated pre-tax catastrophe and weather-related losses, net of reinsurance by net premiums earned less reinstatement premiums.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 3 -

Nine Months Consolidated Underwriting Highlights

•Gross premiums written decreased by $159 million, or 3%, to $5.5 billion due to a decrease of $359 million, or 12% in the reinsurance segment, partially offset by an increase of $200 million, or 7% in the insurance segment.
•Net premiums written decreased by $153 million, or 4%, to $3.6 billion with a decrease of $244 million, or 12% in the reinsurance segment, partially offset by an increase of $91 million, or 6% in the insurance segment.
Nine months ended September 30,
KEY RATIOS20202019Change
Current accident year loss ratio excluding catastrophe and weather-related losses57.8 %60.1 %(2.3 pts)
Catastrophe and weather-related losses ratio17.5 %5.9 %11.6 pts 
Current accident year loss ratio75.3 %66.0 %9.3 pts 
Prior year reserve development ratio(0.3 %)(1.9 %)1.6 pts 
Net losses and loss expenses ratio75.0 %64.1 %10.9 pts 
Acquisition cost ratio21.2 %22.3 %(1.1 pts)
General and administrative expense ratio13.4 %14.5 %(1.1 pts)
Combined ratio109.6 %100.9 %8.7 pts 
Current accident year combined ratio, excluding catastrophe and weather-related losses92.4 %96.9 %(4.5 pts)
•Estimated pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $576 million (Insurance: $325 million; Reinsurance: $251 million), or 17.5 points primarily attributable to the COVID-19 pandemic, Hurricanes Laura and Sally, the Midwest derecho, wildfires across the West Coast of the United States, the Beirut port explosion and weather-related events, compared to $196 million (Insurance $64 million; Reinsurance $132 million), or 5.9 points in 2019.
•Estimated pre-tax losses, net of reinsurance and reinstatement premiums, associated with first party coverages attributable to the COVID-19 pandemic were $235 million, or 7.1 points. First party losses were primarily associated with property-related coverages, but also included event cancellation, and accident and health coverages.
•Net favorable prior year reserve development was $9 million (Insurance $5 million; Reinsurance $5 million), compared to $65 million (Insurance $43 million; Reinsurance $22 million) in 2019.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 4 -

Segment Highlights

Insurance Segment
Three months ended September 30,
($ in thousands)20202019Change
Gross premiums written$935,817 $894,902 4.6 %
Net premiums written544,857 517,050 5.4 %
Net premiums earned570,184 536,451 6.3 %
Underwriting loss(81,465)(17,892)nm
Underwriting ratios:
Current accident year loss ratio excluding catastrophe and weather-related losses54.7 %58.2 %(3.5 pts)
Catastrophe and weather-related losses ratio23.1 %7.7 %15.4 pts 
Current accident year loss ratio77.8 %65.9 %11.9 pts 
Prior year reserve development ratio— %(2.7 %)2.7 pts 
Net losses and loss expenses ratio77.8 %63.2 %14.6 pts 
Acquisition cost ratio20.1 %21.5 %(1.4 pts)
Underwriting-related general and administrative expense ratio16.5 %18.8 %(2.3 pts)
Combined ratio114.4 %103.5 %10.9 pts 
Current accident year combined ratio, excluding catastrophe and weather-related losses91.3 %98.5 %(7.2 pts)
nm - not meaningful
•Gross premiums written increased by $41 million, or 5%, ($31 million, or 3% on a constant currency basis), primarily attributable to increases in professional lines, accident and health, and aviation lines driven by new business and favorable rate changes, partially offset by decreases in liability, marine, credit and political risk lines due to a higher level of non-renewals and reduced business opportunities related to the current economic climate.
•Net premiums written increased by $28 million, or 5%, ($21 million, or 4% on a constant currency basis), reflecting the increase in gross premiums written in the quarter, partially offset by increases in premiums ceded in professional lines and property lines.
•Estimated pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $132 million, primarily attributable to Hurricanes Laura and Sally, the Beirut port explosion, wildfires across the West Coast of the United States and other weather-related events, compared to $41 million in 2019.
•The current accident year loss ratio excluding catastrophe and weather-related losses decreased by 3.5 points in the third quarter, compared to the same period in 2019, principally due to the impact of favorable pricing over loss trends, improved loss experience in property, marine, credit and political risk, and aviation lines largely associated with the repositioning of the portfolio.
•Net favorable prior year reserve development was $0.3 million this quarter, compared to $15 million in the third quarter of 2019.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 5 -

•The acquisition cost ratio decreased by 1.4 points in the third quarter compared to the same period in 2019 due to an increase in ceding commissions.
•The underwriting-related general and administrative expense ratio decreased by 2.3 points in the quarter, largely attributable to a decrease in personnel costs and travel and entertainment expenses, together with an increase in net premiums earned.
Nine months ended September 30,
($ in thousands)20202019Change
Gross premiums written$2,914,100 $2,714,322 7.4 %
Net premiums written1,729,268 1,638,197 5.6 %
Net premiums earned1,709,268 1,630,473 4.8 %
Underwriting income (loss)(169,698)14,336 nm
Underwriting ratios:
Current accident year loss ratio excluding catastrophe and weather-related losses54.8 %57.7 %(2.9 pts)
Catastrophe and weather-related losses ratio18.7 %3.9 %14.8 pts 
Current accident year loss ratio73.5 %61.6 %11.9 pts 
Prior year reserve development ratio(0.2 %)(2.6 %)2.4 pts 
Net losses and loss expenses ratio73.3 %59.0 %14.3 pts 
Acquisition cost ratio20.1 %21.2 %(1.1 pts)
Underwriting-related general and administrative expense ratio16.7 %19.0 %(2.3 pts)
Combined ratio110.1 %99.2 %10.9 pts 
Current accident year combined ratio, excluding catastrophe and weather-related losses91.6 %97.9 %(6.3 pts)
nm - not meaningful
•Gross premiums written increased by $200 million, or 7%, primarily attributable to increases in professional lines, property, liability and marine lines driven by new business and favorable rate changes, partially offset by decreases in credit and political risk lines due to reduced business opportunities related to the current economic climate.
•Net premiums written increased by $91 million, or 6%, reflecting the increase in gross premiums written, partially offset by increases in premiums ceded in professional lines and property lines.
•Estimated pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $325 million, primarily attributable to the COVID-19 pandemic, Hurricanes Laura and Sally, the Beirut port explosion, wildfires across the West Coast of the United States and other weather-related events, compared to $64 million in 2019.
•Estimated pre-tax losses, net of reinsurance and reinstatement premiums, associated with first party coverages attributable to the COVID-19 pandemic were $137 million, or 7.9 points. First party losses were primarily associated with property-related coverages, but also included event cancellation coverages.
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 (loss) for the nine months ended September 30, 2020 and 2019 included the recognition of premiums attributable to Novae's balance sheet at October 2, 2017, without the recognition of the associated acquisition costs, which were written off at the closing date. The absence of $1 million and $11 million of acquisition expenses related to premiums earned in the nine months ended September 30, 2020 and 2019, respectively, benefited the acquisition cost ratio by 0.1 points and 0.6 points, respectively. Adjusting the acquisition cost ratio for these amounts, the acquisition cost ratio decreased by 1.6 points for the nine months ended September 30, 2020, compared to the same period in 2019.

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

- 7 -

Reinsurance Segment
Three months ended September 30,
($ in thousands)20202019Change
Gross premiums written$395,361 $511,604 (22.7 %)
Net premiums written271,125 339,031 (20.0 %)
Net premiums earned521,128 620,856 (16.1 %)
Underwriting loss(53,859)(60,826)(11.5 %)
Underwriting ratios:
Current accident year loss ratio excluding catastrophe and weather-related losses62.7 %64.8 %(2.1 pts)
Catastrophe and weather-related losses ratio21.1 %19.6 %1.5 pts 
Current accident year loss ratio83.8 %84.4 %(0.6 pts)
Prior year reserve development ratio(0.1 %)(1.9 %)1.8 pts 
Net losses and loss expenses ratio83.7 %82.5 %1.2 pts 
Acquisition cost ratio22.3 %23.3 %(1.0 pts)
Underwriting-related general and administrative expense ratio4.5 %4.1 %0.4 pts 
Combined ratio110.5 %109.9 %0.6 pts 
Current accident year combined ratio, excluding catastrophe and weather-related losses89.5 %92.2 %(2.7 pts)

•Gross premiums written decreased by $116 million, or 23%, ($109 million, or 21% on a constant currency basis), primarily attributable to decreases in accident and health, motor, catastrophe, and credit and surety lines. The decrease in accident and health lines was driven by non-renewals following the decision to exit the Middle East business. The decrease in motor lines was due to premium adjustments. The decrease in catastrophe lines was largely driven by a timing difference associated with a significant contract. The decrease in credit and surety lines was attributable to the current economic climate.
•Net premiums written decreased by $68 million, or 20%, ($61 million, or 18% on a constant currency basis), reflecting the lower gross premiums written, partially offset by decreases in premiums ceded in catastrophe, accident and health, credit and surety, and liability lines.
•Estimated pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums were $108 million, primarily attributable to the Midwest derecho, wildfires across the West Coast of the United States, Hurricanes Laura and Sally, the Beirut port explosion, and other weather-related events, compared to $119 million in 2019.
•The current accident year loss ratio excluding catastrophe and weather-related losses decreased by 2.1 points in the third quarter, compared to the same period in 2019, principally due to changes in business mix, and improved performance in aviation, liability and professional lines.
•Net favorable prior year reserve development was $0.3 million this quarter, compared to $12 million in the same period in 2019.
•Acquisition cost ratio decreased by 1.0 point in the quarter 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

- 8 -

Nine months ended September 30,
($ in thousands)20202019Change
Gross premiums written$2,564,419 $2,923,169 (12.3 %)
Net premiums written1,821,692 2,065,263 (11.8 %)
Net premiums earned1,574,673 1,784,653 (11.8 %)
Underwriting income (loss)(74,982)63,425 nm
Underwriting ratios:
Current accident year loss ratio excluding catastrophe and weather-related losses61.1 %62.3 %(1.2 pts)
Catastrophe and weather-related losses ratio16.1 %7.6 %8.5 pts 
Current accident year loss ratio77.2 %69.9 %7.3 pts 
Prior year reserve development ratio(0.3 %)(1.2 %)0.9 pts 
Net losses and loss expenses ratio76.9 %68.7 %8.2 pts 
Acquisition cost ratio22.5 %23.4 %(0.9 pts)
Underwriting-related general and administrative expense ratio4.9 %4.9 %— pts 
Combined ratio104.3 %97.0 %7.3 pts 
Current accident year combined ratio, excluding catastrophe and weather-related losses88.5 %90.6 %(2.1 pts)
nm - not meaningful
•Gross premiums written decreased by $359 million, or 12%, primarily attributable to decreases in catastrophe, agriculture, credit and surety, accident and health, property, and engineering lines due to non-renewals and decreased line sizes. These decreases were partially offset by increases in liability and professional lines attributable to favorable rate changes.
•Net premiums written decreased by $244 million, or 12%, ($233 million, or 11% on a constant currency basis), reflecting the lower gross premiums written, together with increases in premiums ceded in professional lines, liability, motor, and property lines, partially offset by decreases in premiums ceded in catastrophe, credit and surety, accident and health, and agriculture lines.
•Estimated pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $251 million, primarily attributable to the COVID-19 pandemic, the Midwest derecho, wildfires across the West Coast of the United States, Hurricanes Laura and Sally, the Beirut port explosion, and other weather-related events, compared to $132 million in 2019.
•Estimated pre-tax losses, net of reinsurance and reinstatement premiums, associated with first party coverages attributable to the COVID-19 pandemic were $98 million, or 6.2 points. First party losses were primarily associated with property-related coverages, but also included accident and health coverages.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 9 -

Investments

Net investment income of $102 million decreased from net investment income of $116 million for the third quarter of 2019, primarily due to the decrease in yields. Net realized and unrealized gains recognized in net income for the quarter were $56 million, including net unrealized gains of $23 million ($15 million excluding foreign exchange movements), following an increase in the market value of our equity securities portfolio during the quarter, compared to net realized and unrealized gains of $15 million in the third quarter of 2019.

Markets continued to recover in the third quarter of 2020, leading to pre-tax total return on cash and investments5 of 1.5% including foreign exchange movements (1.2% excluding foreign exchange movements6). Net unrealized gains of $73 million ($43 million excluding foreign exchange movements) were recognized in the quarter following an increase in the market value of our fixed income portfolio, compared to net unrealized gains of $29 million ($48 million excluding foreign exchange movements) during the third quarter of 2019. The prior year pre-tax total return was 1.0% including foreign exchange movements (1.2% excluding foreign exchange movements).

For the nine months ended September 30, 2020, pre-tax total return on cash and investments was 3.1% including foreign exchange movements (3.1% excluding foreign exchange movements), compared to 5.3% including foreign exchange movements (5.5% excluding foreign exchange movements) for the same period in 2019. Net unrealized gains of $205 million ($213 million excluding foreign exchange movements) were recognized in the year, compared to net unrealized gains of $389 million ($400 million excluding foreign exchange movements) for the same period in 2019.

Our fixed income portfolio book yield was 2.3% at September 30, 2020, compared to 2.9% at September 30, 2019. The market yield was 1.4% at September 30, 2020.







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 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).
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 (losses) gains of $42m and $(31)m for the three months ended September 30, 2020 and 2019, respectively, and foreign exchange (losses) gains of $(6)m and $(28)m for the nine months ended September 30, 2020 and 2019, respectively.
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 10 -


Capitalization / Shareholders’ Equity

Total capital7 at September 30, 2020 was $6.6 billion, including $1.3 billion of debt and $550 million of preferred equity, compared to $7.4 billion at December 31, 2019. The decrease in total capital was attributable to the repayment of our 5.875% senior unsecured notes, the redemption of our 5.50% Series D Preferred Shares, the net loss generated for the nine months ended September 30, 2020, and common share dividends declared, partially offset by net unrealized gains reported in other comprehensive income following an increase in the market value of our fixed income portfolio.

On January 17, 2020, we redeemed all $225 million of our 5.50% Series D Preferred Shares. On June 1, 2020, we repaid $500 million aggregate principal amount of our 5.875% senior unsecured notes.

Book value per diluted common share, calculated on a treasury stock basis, decreased by $0.34 in the current quarter, and decreased by $1.51 over the past twelve months, to $54.75. The decrease in the quarter and over the past twelve months was driven by the net loss generated and common share dividends declared, partially offset by net unrealized gains reported in other comprehensive income.

During the third quarter of 2020, the Company declared dividends of $0.41 per common share, with total dividends declared of $1.64 per common share over the past twelve months. Adjusted for dividends declared, the book value per diluted common share increased by $0.07 for the quarter and increased by $0.13 over the past twelve months.





















7 Total capital represents the sum of total shareholders' equity and debt.
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 SEGMENTAL DATA (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019
20202019
InsuranceReinsuranceTotalInsuranceReinsuranceTotal
(in thousands)
Gross premiums written$2,914,100 $2,564,419 $5,478,519 $2,714,322 $2,923,169 $5,637,491 
Net premiums written1,729,268 1,821,692 3,550,960 1,638,197 2,065,263 3,703,460 
Net premiums earned1,709,268 1,574,673 3,283,941 1,630,473 1,784,653 3,415,126 
Other insurance related income (loss)2,091 (7,361)(5,270)1,779 9,606 11,385 
Net losses and loss expenses(1,252,569)(1,211,443)(2,464,012)(961,444)(1,225,959)(2,187,403)
Acquisition costs(343,579)(354,137)(697,716)(344,981)(417,826)(762,807)
Underwriting-related general and
administrative expenses(10)
(284,909)(76,714)(361,623)(311,491)(87,049)(398,540)
Underwriting income (loss)(11)
$(169,698)$(74,982)(244,680)$14,336 $63,425 77,761 
Net investment income240,098 361,014 
Net investment gains45,777 48,522 
Corporate expenses(10)
(74,915)(97,468)
Foreign exchange (losses) gains(8,760)64,868 
Interest expense and financing costs(59,641)(49,545)
Reorganization expenses(822)(29,310)
Amortization of value of business acquired(4,111)(24,666)
Amortization of intangible assets(8,564)(8,744)
Income (loss) before income taxes and interest in income (loss) of equity method investments$(115,618)$342,432 
Net losses and loss expenses ratio73.3 %76.9 %75.0 %59.0 %68.7 %64.1 %
Acquisition cost ratio20.1 %22.5 %21.2 %21.2 %23.4 %22.3 %
General and administrative
expense ratio
16.7 %4.9 %13.4 %19.0 %4.9 %14.5 %
Combined ratio
110.1 %104.3 %109.6 %99.2 %97.0 %100.9 %
10Underwriting-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 included corporate expenses of $75 million and $97 million for the nine months ended September 30, 2020 and 2019, 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 financial 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

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Conference Call

We will host a conference call on Thursday, October 29, 2020 at 9:30 a.m. (EDT) to discuss the third quarter financial results and related matters. The teleconference can be accessed by dialing 1-877-883-0383 (U.S. callers) or 1-412-902-6506 (international callers) approximately ten minutes in advance of the call and entering the passcode 4617261. 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 1-877-344-7529 (U.S. callers) or 1-412-317-0088 (international callers) and entering the passcode 10148478. The webcast will be archived in the Investor Information section of our website.

In addition, an investor financial supplement for the quarter ended September 30, 2020 is available in the Investor Information section of our website.

About AXIS Capital
AXIS Capital, through its operating subsidiaries, is a global provider of specialty lines insurance and treaty reinsurance with shareholders' equity at September 30, 2020 of $5.3 billion and locations in Bermuda, the United States, Europe, Singapore, Canada and the Middle East. Its operating subsidiaries have been assigned a rating of "A+" ("Strong") by Standard & Poor's and "A" ("Excellent") 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, e-mail alerts and other information about AXIS Capital may be received when enrolled in our "E-mail Alerts" program, which can be found in the Investor Information section of our website (www.axiscapital.com). The contents of our website and social media channels are not 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

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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2020 (UNAUDITED) AND DECEMBER 31, 2019
20202019
(in thousands)
Assets
Investments:
Fixed maturities, available for sale, at fair value
$12,609,241 $12,468,205 
Equity securities, at fair value
417,886 474,207 
Mortgage loans, held for investment, at fair value
544,095 432,748 
Other investments, at fair value
760,206 770,923 
Equity method investments
104,242 117,821 
Short-term investments, at fair value
69,996 38,471 
Total investments14,505,666 14,302,375 
Cash and cash equivalents1,000,781 1,241,109 
Restricted cash and cash equivalents440,035 335,348 
Accrued interest receivable70,013 78,085 
Insurance and reinsurance premium balances receivable3,131,791 3,071,390 
Reinsurance recoverable on unpaid losses and loss expenses4,337,683 3,877,756 
Reinsurance recoverable on paid losses and loss expenses373,431 327,795 
Deferred acquisition costs520,706 492,119 
Prepaid reinsurance premiums1,278,672 1,101,889 
Receivable for investments sold17,513 35,659 
Goodwill102,003 102,003 
Intangible assets222,362 230,550 
Value of business acquired4,881 8,992 
Operating lease right-of-use assets131,776 111,092 
Other assets315,683 287,892 
             Total assets$26,452,996 $25,604,054 
Liabilities
Reserve for losses and loss expenses$13,653,488 $12,752,081 
Unearned premiums4,070,649 3,626,246 
Insurance and reinsurance balances payable1,244,846 1,349,082 
Debt1,309,384 1,808,157 
Payable for investments purchased458,111 32,985 
Operating lease liabilities140,058 115,584 
Other liabilities310,565 375,911 
             Total liabilities21,187,101 20,060,046 
Shareholders' equity
Preferred shares550,000 775,000 
Common shares2,206 2,206 
Additional paid-in capital2,325,196 2,317,212 
Accumulated other comprehensive income350,111 171,710 
Retained earnings5,804,637 6,056,686 
Treasury shares, at cost(3,766,255)(3,778,806)
            Total shareholders' equity 5,265,895 5,544,008 
           Total liabilities and shareholders' equity$26,452,996 $25,604,054 

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
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019
Three months endedNine months ended
2020201920202019
(in thousands, except per share amounts)
Revenues
Net premiums earned$1,091,312 $1,157,307 $3,283,941 $3,415,126 
Net investment income101,956 115,763 240,098 361,014 
Net investment gains55,609 14,527 45,777 48,522 
Other insurance related income (loss)1,440 1,533 (5,270)11,385 
Total revenues1,250,317 1,289,130 3,564,546 3,836,047 
Expenses
Net losses and loss expenses879,677 850,913 2,464,012 2,187,403 
Acquisition costs230,564 260,026 697,716 762,807 
General and administrative expenses138,823 155,522 436,538 496,008 
Foreign exchange losses (gains)60,734 (59,543)8,760 (64,868)
Interest expense and financing costs15,574 18,042 59,641 49,545 
Reorganization expenses1,413 11,215 822 29,310 
Amortization of value of business acquired1,028 4,368 4,111 24,666 
Amortization of intangible assets2,838 2,831 8,564 8,744 
Total expenses1,330,651 1,243,374 3,680,164 3,493,615 
Income (loss) before income taxes and interest in income (loss) of equity method investments(80,334)45,756 (115,618)342,432 
Income tax (expense) benefit12,056 (8,147)6,030 (23,850)
Interest in income (loss) of equity method investments2,896 792 (13,579)5,645 
Net income (loss)(65,382)38,401 (123,167)324,227 
Preferred share dividends7,563 10,656 22,688 31,969 
Net income (loss) available (attributable) to common shareholders$(72,945)$27,745 $(145,855)$292,258 
Per share data
 Earnings (loss) per common share:
   Earnings (loss) per common share$(0.87)$0.33 $(1.73)$3.48 
   Earnings (loss) per diluted common share$(0.87)$0.33 $(1.73)$3.46 
 Weighted average common shares outstanding
84,308 83,947 84,235 83,872 
 Weighted average diluted common shares outstanding
84,308 84,582 84,235 84,420 
 Cash dividends declared per common share
$0.41 $0.40 $1.23 $1.20 




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

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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED SEGMENTAL DATA (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019
20202019
InsuranceReinsuranceTotalInsuranceReinsuranceTotal
(in thousands)
Gross premiums written$935,817 $395,361 $1,331,178 $894,902 $511,604 $1,406,506 
Net premiums written544,857 271,125 815,982 517,050 339,031 856,081 
Net premiums earned570,184 521,128 1,091,312 536,451 620,856 1,157,307 
Other insurance related income688 752 1,440 733 800 1,533 
Net losses and loss expenses(443,389)(436,288)(879,677)(338,966)(511,947)(850,913)
Acquisition costs(114,569)(115,995)(230,564)(115,551)(144,475)(260,026)
Underwriting-related general and
administrative expenses(8)
(94,379)(23,456)(117,835)(100,559)(26,060)(126,619)
Underwriting loss (9)
$(81,465)$(53,859)(135,324)$(17,892)$(60,826)(78,718)
Net investment income101,956 115,763 
Net investment gains55,609 14,527 
Corporate expenses(8)
(20,988)(28,903)
Foreign exchange (losses) gains(60,734)59,543 
Interest expense and financing costs(15,574)(18,042)
Reorganization expenses(1,413)(11,215)
Amortization of value of business acquired(1,028)(4,368)
Amortization of intangible assets(2,838)(2,831)
Income (loss) before income taxes and interest in income (loss) of equity method investments$(80,334)$45,756 
Net losses and loss expenses ratio77.8 %83.7 %80.6 %63.2 %82.5 %73.5 %
Acquisition cost ratio20.1 %22.3 %21.1 %21.5 %23.3 %22.5 %
General and administrative
expense ratio
16.5 %4.5 %12.8 %18.8 %4.1 %13.4 %
Combined ratio
114.4 %110.5 %114.5 %103.5 %109.9 %109.4 %
8Underwriting-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 included corporate expenses of $21 million and $29 million for the three months ended September 30, 2020 and 2019, respectively. Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.
9Consolidated 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.




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

- 16 -

AXIS CAPITAL HOLDINGS LIMITED
NON-GAAP FINANCIAL MEASURES RECONCILIATION (UNAUDITED)
OPERATING INCOME AND OPERATING RETURN ON AVERAGE COMMON EQUITY
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019
Three months endedNine months ended
2020201920202019
(in thousands, except per share amounts)
Net income (loss) available (attributable) to common shareholders$(72,945)$27,745$(145,855)$292,258
Net investment (gains) losses(12)
(55,609)(14,527)(45,777)(48,522)
Foreign exchange losses (gains)(13)
60,734(59,543)8,760(64,868)
Reorganization expenses(14)
1,41311,21582229,310
Interest in (income) loss of equity method investments(15)
(2,896)(792)13,579(5,645)
Income tax expense4,2353,36110,4946,524
Operating income (loss)$(65,068)$(32,541)$(157,977)$209,057
Earnings (loss) per diluted common share$(0.87)$0.33$(1.73)$3.46
Net investment (gains) losses(0.66)(0.17)(0.54)(0.57)
Foreign exchange losses (gains)0.72(0.71)0.10(0.77)
Reorganization expenses0.020.130.010.35
Interest in (income) loss of equity method investments(0.03)(0.01)0.16(0.07)
Income tax expense 0.050.040.120.08
Operating income (loss) per diluted common share$(0.77)$(0.39)$(1.88)$2.48
Weighted average diluted common shares outstanding84,30883,94784,23584,420
Average common shareholders' equity4,731,8584,801,1744,742,4524,532,971
Annualized return on average common equity(6.2 %)2.3 %(4.1 %)8.6 %
Annualized operating return on average common equity(16)
(5.5 %)(2.7 %)(4.4 %)6.1 %
12Tax cost (benefit) of $6,667 and $897 for the three months ended September 30, 2020 and 2019, respectively, and $9,104 and $6,667 for the nine months ended September 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.
13Tax cost (benefit) of ($2,245) and $4,784 for the three months ended September 30, 2020 and 2019, respectively, and $1,366 and $5,372 for the nine months ended September 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.
14Tax cost (benefit) of ($187) and ($2,320) for the three months ended September 30, 2020 and 2019, respectively, and $24 and ($5,515) for the nine months ended September 30, 2020 and 2019, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.
15Tax cost (benefit) of $nil for the three and nine months ended September 30, 2020 and 2019, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.
16Annualized operating return on average common equity ("operating ROACE") is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to annualized ROACE, the most comparable GAAP financial measure is presented in the table above, and a discussion of the rationale for its presentation is provided later in 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

- 17 -

Risk and Uncertainties related to COVID-19

The determination of the net loss estimate for the insurance segment is based on our ground-up assessment of coverage from individual contracts and treaties, including a review of contracts with potential exposure to the COVID-19 pandemic. The determination of the net loss estimate for the reinsurance segment is largely based on a range of industry insured loss estimates and market share analyses, supplemented by a review of in-force treaties that may provide coverage and catastrophe modeling analyses, where appropriate. In addition, we consider preliminary information received from clients, brokers and loss adjusters.

The net loss estimate related to the COVID-19 pandemic is subject to significant uncertainty. This uncertainty is driven by the inherent difficulty in making assumptions around the impact of the COVID-19 pandemic due to the lack of comparable events, the ongoing nature of the event, and its far-reaching impacts on world-wide economies and the health of the population. These assumptions include the following:

•the nature and the duration of the pandemic;
•the effects on human health, the economy and our customers;
•the response of government bodies including legislative, regulatory or judicial actions and social influences that could alter the interpretation of our contracts;
•the coverage provided under our contracts;
•the coverage provided by our ceded reinsurance; and
•the evaluation of the loss and impact of loss mitigation actions.

Actual net ultimate amount of the loss for this event may differ materially from the current net loss estimate.

Cautionary Note Regarding Forward-Looking Statements

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

- 18 -


Forward-looking statements contained in this press release may include, but are not limited to, information regarding our estimates of losses for 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, credit spreads, equity securities' prices 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;
AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08
Tel. 441.496.2600 Fax 441.405.2600
www.axiscapital.com

- 19 -

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

- 20 -

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 press release, 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"), 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 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 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

- 21 -

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.

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 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

- 22 -

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.

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

- 23 -

(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 press release.

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 press release.

Constant Currency Basis
We present gross premiums written and net premiums written on a constant currency basis in this press 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 and net premiums written on a constant basis. The reconciliation to gross premiums written and net premiums written on a GAAP basis is presented in the 'Insurance Segment' and 'Reinsurance Segment' sections of this press 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 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 of this press release. We believe this presentation enables investors and other users of our financial information to analyze the performance of our investment portfolio.

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

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Acquisition of Novae

On October 2, 2017, we acquired Novae. At the acquisition date, we identified value of business acquired ("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 acquisition price to the assets acquired and liabilities assumed based on estimated fair values at the acquisition date, resulted in the write-off of the deferred acquisition cost asset on Novae's balance sheet at the acquisition date as the value of policies in-force on that date are considered within VOBA. Consequently, underwriting income (loss) for the three and nine months ended September 30, 2019 included the recognition of premiums attributable to Novae's balance sheet at the acquisition 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

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Section 3: EX-99.2 (EX-99.2)

Document






 

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AXIS CAPITAL HOLDINGS LIMITED








INVESTOR FINANCIAL SUPPLEMENT

THIRD QUARTER 2020


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AXIS Capital Holdings Limited
92 Pitts Bay Road
Pembroke HM 08 Bermuda
Contact Information:
Matt 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.

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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  
  

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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 for 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, credit spreads, equity securities' prices 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;
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•inadvertent 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 foreign 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 September 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.
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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.


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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.



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AXIS CAPITAL HOLDINGS LIMITED
FINANCIAL HIGHLIGHTS
  Three months ended September 30,Nine months ended September 30,
  20202019Change20202019Change
HIGHLIGHTSGross premiums written$1,331,178 $1,406,506 (5.4 %)$5,478,519 $5,637,491 (2.8 %)
Gross premiums written - Insurance70.3 %63.6 %6.7 pts53.2 %48.1 %5.1 pts
Gross premiums written - Reinsurance29.7 %36.4 %(6.7)pts46.8 %51.9 %(5.1)pts
Net premiums written$815,982 $856,081 (4.7 %)$3,550,960 $3,703,460 (4.1 %)
Net premiums earned$1,091,312 $1,157,307 (5.7 %)$3,283,941 $3,415,126 (3.8 %)
Net premiums earned - Insurance52.2 %46.4 %5.8 pts52.0 %47.7 %4.3 pts
Net premiums earned - Reinsurance47.8 %53.6 %(5.8)pts48.0 %52.3 %(4.3)pts
Net income (loss) available (attributable) to common shareholders$(72,945)$27,745 nm$(145,855)$292,258 nm
Operating income (loss) [a]
(65,068)(32,541)nm(157,977)209,057 nm
Annualized return on average common equity [b]
(6.2 %)2.3 %(8.5)pts(4.1 %)8.6 %(12.7)pts
Annualized operating return on average common equity [c]
(5.5 %)(2.7 %)(2.8)pts(4.4 %)6.1 %(10.5)pts
Total shareholders’ equity$5,265,895 $5,585,870 (5.7 %)$5,265,895 $5,585,870 (5.7 %)
PER COMMON SHARE AND COMMON SHARE DATAEarnings (loss) per diluted common share($0.87)$0.33 nm($1.73)$3.46 nm
Operating income (loss) per diluted common share [d]
($0.77)($0.39)nm($1.88)$2.48 nm
Weighted average diluted common shares outstanding84,308 84,582 (0.3 %)84,235 84,420 (0.2 %)
Book value per common share$55.94 $57.31 (2.4 %)$55.94 $57.31 (2.4 %)
Book value per diluted common share (treasury stock method)$54.75 $56.26 (2.7 %)$54.75 $56.26 (2.7 %)
Tangible book value per diluted common share (treasury stock method) [a]
$51.52 $52.84 (2.5 %)$51.52 $52.84 (2.5 %)
FINANCIAL RATIOSCurrent accident year loss ratio excluding catastrophe and weather-related losses58.5 %61.7 %(3.2)pts57.8 %60.1 %(2.3)pts
Catastrophe and weather-related losses ratio22.2 %14.1 %8.1 pts17.5 %5.9 %11.6 pts
Current accident year loss ratio80.7 %75.8 %4.9 pts75.3 %66.0 %9.3 pts
Prior year reserve development ratio(0.1 %)(2.3 %)2.2 pts(0.3 %)(1.9 %)1.6 pts
Net losses and loss expenses ratio80.6 %73.5 %7.1 pts75.0 %64.1 %10.9 pts
Acquisition cost ratio21.1 %22.5 %(1.4)pts21.2 %22.3 %(1.1)pts
General and administrative expense ratio [e]
12.8 %13.4 %(0.6)pts13.4 %14.5 %(1.1)pts
Combined ratio114.5 %109.4 %5.1 pts109.6 %100.9 %8.7 pts
INVESTMENT DATATotal assets$26,452,996 $25,495,526 3.8 %$26,452,996 $25,495,526 3.8 %
Total cash and invested assets [f]
15,575,897 15,569,249 — %15,575,897 15,569,249 — %
Net investment income101,956 115,763 (11.9 %)240,098 361,014 (33.5 %)
Net investment gains55,609 14,527 nm$45,777 $48,522 (5.7 %)
Book yield of fixed maturities2.3 %2.9 %(0.6)pts2.3 %2.9 %(0.6)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 three and nine months ended September 30, 2020 were calculated using weighted average common shares outstanding due to the net loss attributable to common shareholders and operating loss recognized in these periods.
[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).
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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS - AS REPORTED, U.S. GAAP
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019
Three months ended September 30,Nine months ended September 30,
2020201920202019
Revenues
Net premiums earned$1,091,312 $1,157,307 $3,283,941 $3,415,126 
Net investment income101,956 115,763 240,098 361,014 
Net investment gains55,609 14,527 45,777 48,522 
Other insurance related income (loss)1,440 1,533 (5,270)11,385 
Total revenues1,250,317 1,289,130 3,564,546 3,836,047 
Expenses
Net losses and loss expenses879,677 850,913 2,464,012 2,187,403 
Acquisition costs230,564 260,026 697,716 762,807 
General and administrative expenses138,823 155,522 436,538 496,008 
Foreign exchange losses (gains)60,734 (59,543)8,760 (64,868)
Interest expense and financing costs15,574 18,042 59,641 49,545 
Reorganization expenses1,413 11,215 822 29,310 
Amortization of value of business acquired1,028 4,368 4,111 24,666 
Amortization of intangible assets2,838 2,831 8,564 8,744 
Total expenses1,330,651 1,243,374 3,680,164 3,493,615 
Income (loss) before income taxes and interest in income (loss) of equity method investments(80,334)45,756 (115,618)342,432 
Income tax (expense) benefit12,056 (8,147)6,030 (23,850)
Interest in income (loss) of equity method investments2,896 792 (13,579)5,645 
Net income (loss)(65,382)38,401 (123,167)324,227 
Preferred share dividends7,563 10,656 22,688 31,969 
Net income (loss) available (attributable) to common shareholders$(72,945)$27,745 $(145,855)$292,258 




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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS - QUARTER
Q3 2020Q2 2020Q1 2020Q4 2019Q3 2019Q3 2018
UNDERWRITING REVENUES
Gross premiums written$1,331,178 $1,716,183 $2,431,158 $1,261,366 $1,406,506 $1,423,707 
Ceded premiums written(515,196)(660,249)(752,114)(475,212)(550,425)(503,769)
Net premiums written815,982 1,055,934 1,679,044 786,154 856,081 919,938 
Gross premiums earned1,680,529 1,694,861 1,657,412 1,789,084 1,756,116 1,776,379 
Ceded premiums earned(589,217)(590,858)(568,787)(617,033)(598,809)(552,304)
Net premiums earned1,091,312 1,104,003 1,088,625 1,172,051 1,157,307 1,224,075 
Other insurance related income (loss)1,440 1,996 (8,707)5,059 1,533 8,475 
Total underwriting revenues1,092,752 1,105,999 1,079,918 1,177,110 1,158,840 1,232,550 
UNDERWRITING EXPENSES
Net losses and loss expenses879,677 676,261 908,073 857,394 850,913 794,959 
Acquisition costs230,564 228,502 238,650 261,775 260,026 248,314 
Underwriting-related general and administrative expenses [a]
117,835 113,824 129,962 107,195 126,619 130,251 
Total underwriting expenses1,228,076 1,018,587 1,276,685 1,226,364 1,237,558 1,173,524 
UNDERWRITING INCOME (LOSS) [b](135,324)87,412 (196,767)(49,254)(78,718)59,026 
OTHER (EXPENSES) REVENUES
Net investment income101,956 45,040 93,101 117,557 115,763 114,421 
Net investment gains (losses)55,609 53,043 (62,877)42,712 14,527 (17,628)
Corporate expenses [a]
(20,988)(26,828)(27,098)(31,628)(28,903)(24,643)
Foreign exchange (losses) gains(60,734)(9,709)61,683 (52,827)59,543 (8,305)
Interest expense and financing costs(15,574)(20,595)(23,472)(18,562)(18,042)(16,897)
Reorganization expenses(1,413)(392)982 (8,074)(11,215)(16,300)
Amortization of value of business acquired(1,028)(1,285)(1,799)(2,056)(4,368)(39,018)
Amortization of intangible assets(2,838)(2,855)(2,870)(2,853)(2,831)(1,753)
Total other (expenses) revenues54,990 36,419 37,650 44,269 124,474 (10,123)
INCOME (LOSS) BEFORE INCOME TAXES AND INTEREST IN INCOME (LOSS) OF EQUITY METHOD INVESTMENTS(80,334)123,831 (159,117)(4,985)45,756 48,903 
Income tax (expense) benefit12,056 (10,893)4,867 159 (8,147)3,525 
Interest in income (loss) of equity method investments2,896 7,102 (23,577)4,073 792 1,667 
NET INCOME (LOSS)(65,382)120,040 (177,827)(753)38,401 54,095 
Preferred share dividends(7,563)(7,563)(7,563)(9,144)(10,656)(10,656)
NET INCOME (LOSS) AVAILABLE (ATTRIBUTABLE) TO COMMON SHAREHOLDERS$(72,945)$112,477 $(185,390)$(9,897)$27,745 $43,439 
[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), the most comparable GAAP financial measure, is presented above and in the 'Consolidated Statements of Operations - Year' section of this document.
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AXIS CAPITAL HOLDINGS LIMITED
CONSOLIDATED KEY RATIOS - QUARTER
Q3 2020Q2 2020Q1 2020Q4 2019Q3 2019Q3 2018
KEY RATIOS/PER SHARE DATA
Current accident year loss ratio excluding catastrophe and weather-related losses58.5 %58.0 %57.1 %62.2 %61.7 %61.2 %
Catastrophe and weather-related losses ratio22.2 %3.5 %26.9 %12.1 %14.1 %7.5 %
Current accident year loss ratio80.7 %61.5 %84.0 %74.3 %75.8 %68.7 %
Prior year reserve development ratio(0.1 %)(0.2 %)(0.6 %)(1.1 %)(2.3 %)(3.8 %)
Net losses and loss expenses ratio80.6 %61.3 %83.4 %73.2 %73.5 %64.9 %
Acquisition cost ratio21.1 %20.7 %21.9 %22.3 %22.5 %20.3 %
General and administrative expense ratio [a]
12.8 %12.7 %14.5 %11.8 %13.4 %12.7 %
Combined ratio114.5 %94.7 %119.8 %107.3 %109.4 %97.9 %
Weighted average common shares outstanding84,308 84,303 84,094 83,957 83,947 83,558 
Weighted average diluted common shares outstanding84,308 84,600 84,094 83,957 84,582 84,107 
Earnings (loss) per common share($0.87)$1.33 ($2.20)($0.12)$0.33 $0.52 
Earnings (loss) per diluted common share($0.87)