AXIS CAPITAL HOLDINGS LTD Files 10-Q for Q1 2024

TL;DR

<b>AXIS CAPITAL HOLDINGS LTD filed its Q1 2024 10-Q report on May 1, 2024.</b>

AI Summary

AXIS CAPITAL HOLDINGS LTD (AXS-PE) filed a Quarterly Report (10-Q) with the SEC on May 1, 2024. AXIS CAPITAL HOLDINGS LTD filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company's principal business address is 92 Pitts Bay Road, Pembroke, HM 08. The filing was made on May 1, 2024. The Standard Industrial Classification code is 6331 (Fire, Marine & Casualty Insurance).

Why It Matters

For investors and stakeholders tracking AXIS CAPITAL HOLDINGS LTD, this filing contains several important signals. This 10-Q filing provides the latest quarterly financial and operational update for AXIS CAPITAL HOLDINGS LTD, crucial for investors assessing performance and outlook. Understanding the details within this report is essential for stakeholders to evaluate the company's financial health, risk exposure, and strategic direction in the insurance sector.

Risk Assessment

Risk Level: medium — AXIS CAPITAL HOLDINGS LTD shows moderate risk based on this filing. The filing is a standard 10-Q, which provides a snapshot of financial health but lacks forward-looking guidance or specific performance metrics beyond what is typically disclosed in such reports.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-Q to understand AXIS CAPITAL HOLDINGS LTD's current financial position and potential challenges.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed Period of Report)
• 2024-05-01 — Filing Date (Filed As Of Date)
• 6331 — Standard Industrial Classification (SIC Code for Fire, Marine & Casualty Insurance)
• 001-31721 — SEC File Number (SEC Filing Identifier)

Key Players & Entities

• AXIS CAPITAL HOLDINGS LTD (company) — Filer
• 92 PITTS BAY ROAD (address) — Business Address
• PEMBROKE (location) — Business Address City
• HM 08 (zip_code) — Business Address Zip
• 2024-05-01 (date) — Filed As Of Date
• 2024-03-31 (date) — Conformed Period of Report
• 6331 (sic_code) — Standard Industrial Classification
• 001-31721 (filing_number) — SEC File Number

FAQ

Industry Context

AXIS CAPITAL HOLDINGS LTD operates within the Fire, Marine & Casualty Insurance industry, a sector characterized by complex risk assessment and regulatory oversight.

Regulatory Implications

As a publicly traded company in the insurance sector, AXIS CAPITAL HOLDINGS LTD is subject to regulations from the SEC and other financial authorities governing financial reporting and market conduct.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and other key performance indicators.
2. Review any disclosed risk factors and management's discussion and analysis for potential business challenges.
3. Compare current quarter results with historical data to identify trends and performance changes.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-01: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial 10-Q filing for the fiscal year 2024, providing the first quarterly update after the year-end report.

Key Financial Figures

• $0.0125 — ch registered Common shares, par value $0.0125 per share AXS New York Stock Exchange

Filing Documents

• axs-20240331.htm (10-Q) — 3179KB
• axs-2024331xexx311.htm (EX-31.1) — 11KB
• axs-2024331xexx312.htm (EX-31.2) — 11KB
• axs-2024331xexx321.htm (EX-32.1) — 6KB
• axs-2024331xexx322.htm (EX-32.2) — 6KB
• axs-2024331xexx108.htm (EX-10.8) — 33KB
• 0001214816-24-000056.txt (&nbsp;) — 15627KB
• axs-20240331.xsd (EX-101.SCH) — 63KB
• axs-20240331_cal.xml (EX-101.CAL) — 149KB
• axs-20240331_def.xml (EX-101.DEF) — 438KB
• axs-20240331_lab.xml (EX-101.LAB) — 932KB
• axs-20240331_pre.xml (EX-101.PRE) — 687KB
• axs-20240331_htm.xml (XML) — 3550KB

Consolidated Financial Statements

Item 1. Consolidated Financial Statements 5

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 48

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 78

Controls and Procedures

Item 4. Controls and Procedures 79 PART II Other Information 79

Legal Proceedings

Item 1. Legal Proceedings 79

Risk Factors

Item 1A. Risk Factors 79

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 80

Other Information

Item 5. Other Information 80

Exhibits

Item 6. Exhibits 81

Signatures

Signatures 82 2 Table of Contents

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION This Quarterly Report on Form 10-Q 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 report, 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 report may include, but are not limited to, information regarding our estimates for losses and loss expenses, measurements of potential losses in the fair 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 pricing, and other market and economic conditions including the liquidity of financial markets, developments in the commercial real estate market, inflation, our growth prospects, and valuations of the potential impact of movements in interest rates, credit spreads, equity securities' prices, and foreign currency exchange rates. Forward-looking statements only reflect our expectations and are not guarantees of performance. These statements involve risks, u

CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS Page Consolidated Balance Sheets at March 31, 2024 (Unaudited) and December 31, 2023 6 Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023 (Unaudited) 7 Consolidated Statements of Comprehensive Income for the three months ended March 31, 2024 and 2023 (Unaudited) 8 Consolidated Statements of Changes in Shareholders' Equity for the three months ended March 31, 2024 and 2023 (Unaudited) 9 Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 (Unaudited) 10

Notes to Consolidated Financial Statements (Unaudited) 12

Notes to Consolidated Financial Statements (Unaudited) 12 Note 1 - Basis of Presentation and Significant Accounting Policies 12 Note 2 - Segment Information 13 Note 3 - Investments 15 Note 4 - Fair Value Measurements 24 Note 5 - Derivative Instruments 34 Note 6 - Reserve for Losses and Loss Expenses 36 Note 7 - Earnings Per Common Share 40 Note 8 - Share-Based Compensation 40 Note 9 - Shareholders' Equity 43 Note 10 - Debt and Financing Arrangements 44 Note 11 - Federal Home Loan Bank Advances 44 Note 12 - Commitments and Contingencies 44 Note 13 - Other Comprehensive Income (Loss) 45 Note 14 - Related Party Transactions 46 Note 15 - Reorganization Expenses 46 Note 16 - Income Taxes 46 5 Table of Contents AXIS CAPITAL HOLDINGS LIMITED CONSOLIDATED BALANCE SHEETS MARCH 31, 2024 (UNAUDITED) AND DECEMBER 31, 2023 2024 2023 (in thousands) Assets Investments: Fixed maturities, available for sale, at fair value (Amortized cost 2024: $ 12,714,210 ; 2023: $ 12,634,254 Allowance for expected credit losses 2024: $ 4,237 ; 2023: $ 10,759 ) $ 12,269,310 $ 12,234,742 Fixed maturities, held to maturity, at amortized cost (Fair value 2024: $ 683,726 ; 2023: $ 675,851 Allowance for expected credit losses 2024: $ nil ; 2023: $ nil ) 693,042 686,296 Equity securities, at fair value (Cost 2024: $ 545,538 ; 2023: $ 543,833 ) 582,178 588,511 Mortgage loans, held for investment, at fair value (Allowance for expected credit losses 2024: $ 8,113 ; 2023: $ 6,220 ) 609,704 610,148 Other investments, at fair value 934,724 949,413 Equity method investments 182,594 174,634 Short-term investments, at fair value 75,879 17,216 Total investments 15,347,431 15,260,960 Cash and cash equivalents 1,143,951 953,476 Restricted cash and cash equivalents 697,623 430,509 Accrued interest receivable 107,131 106,055 Insurance and reinsurance premium balances receivable (Allowance for expected credit losses 2024: $ 13,103 ; 2023: $ 11,997 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation These unaudited consolidated financial statements (the "financial statements") have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the U.S. Securities and Exchange Commission's ("SEC") instructions to Form 10-Q and Article 10 of Regulation S-X and include AXIS Capital Holdings Limited ("AXIS Capital") and its subsidiaries (the "Company"). Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. This Quarterly Report on Form 10-Q should be read in conjunction with the financial statements and related notes included in AXIS Capital's Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC. In the opinion of management, these financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the Company's financial position and results of operations for the periods presented. The results of operations for any interim period are not necessarily indicative of the results for a full year. All inter-company accounts and transactions have been eliminated. To facilitate comparison of information across periods, certain reclassifications have been made to prior year amounts to conform to the current year's presentation. At March 31, 2024, the Company presented loan advances made in 2023 separately in the consolidated statements of cash flows. These loan advances made were previously included in insurance and reinsurance balances payable in the consolidated statements of cash flows. This presentation was adopted to facilitate comparison to loan advances made in 2024. This reclassification did not impact results of operations, financial condition or li

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 2. SEGMENT INFORMATION The Company's 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. The Company does not allocate its assets by segment, with the exception of goodwill and intangible assets. Insurance The Company's insurance segment offers specialty insurance products to a variety of niche markets on a worldwide basis. The product lines in this segment are professional lines, property, liability, cyber, marine and aviation, accident and health, and credit and political risk. Reinsurance The Company's reinsurance segment provides treaty reinsurance to insurance companies on a worldwide basis. The product lines in this segment are liability, accident and health, professional lines, credit and surety, motor, agriculture, marine and aviation, and run-off lines which include catastrophe and property lines of business that the Company placed into run-off in 2022 and engineering lines of business that the Company placed into run-off in 2020. The following tables present the underwriting results of the Company's reportable segments, as well as the carrying amounts of allocated goodwill and intangible assets: 13 Table of Contents AXIS CAPITAL HOLDINGS LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 2. SEGMENT INFORMATION (CONTINUED) 2024 2023 Three months ended and at March 31, Insurance Reinsurance Total Insurance Reinsurance Total Gross premiums written $ 1,574,505 $ 1,079,922 $ 2,654,427 $ 1,415,612 $ 966,364 $ 2,381,976 Net premiums written 1,022,354 699,719 1,722,073 882,576 725,780 1,608,356 Net premiums earned 917,946 340,095 1,258,041 816,456 413,743 1,230,199 Other insurance related income 21 8,319 8,340 54 523 577 Net losses and loss expenses ( 496,864 ) ( 231,807 ) ( 728,671 ) ( 449,467 ) ( 271,175 ) ( 720,642 ) Acquisition costs ( 176,029 ) ( 78,225 ) ( 254,254 ) ( 147,058 ) ( 83,315 ) ( 230,373 ) Underwriting-related general and administrative expenses ( 122,087 ) ( 15,706 ) ( 137,793 ) ( 116,630 ) ( 23,765 ) ( 140,395 ) Underwriting income $ 122,987 $ 22,676 145,663 $ 103,355 $ 36,011 139,366 Net investment income 167,383 133,771 Net investment gains (losses) ( 9,207 ) ( 20,190 ) Corporate expenses ( 25,580 ) ( 26,416 ) Foreign exchange (losses) gains 23,552 ( 8,710 ) Interest expense and financing costs ( 17,147 ) ( 16,894 ) Reorganization expenses ( 12,299 ) — Amortization of intangible assets ( 2,729 ) ( 2,729 ) Income before income taxes and interest in income (loss)

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