AXIS Capital Holdings Ltd. Files Q3 2024 10-Q Report

TL;DR

AXIS Capital Holdings Ltd. Q3 2024 10-Q filed. Financials out.

AI Summary

AXIS Capital Holdings Ltd. filed its 10-Q for the period ending September 30, 2024. The filing covers the third quarter and the first nine months of the year. Key financial data and operational details for this period are presented within the report.

Why It Matters

This 10-Q filing provides investors and analysts with crucial financial performance data for AXIS Capital Holdings Ltd. during the third quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing financial information, not indicating immediate or significant new risks.

Key Numbers

• 2024 Q3 — Reporting Period (Covers the third quarter of 2024)
• 2024-09-30 — Period End Date (End date for the reported financial period)

Key Players & Entities

• AXIS CAPITAL HOLDINGS LTD (company) — Filer of the 10-Q report
• 20240930 (date) — Conformed period of report
• 20241030 (date) — Filing date

FAQ

Key Financial Figures

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

Filing Documents

• axs-20240930.htm (10-Q) — 4093KB
• axs-2024930xexx311.htm (EX-31.1) — 11KB
• axs-2024930xexx312.htm (EX-31.2) — 11KB
• axs-2024930xexx321.htm (EX-32.1) — 6KB
• axs-2024930xexx322.htm (EX-32.2) — 6KB
• 0001214816-24-000106.txt ( ) — 18691KB
• axs-20240930.xsd (EX-101.SCH) — 66KB
• axs-20240930_cal.xml (EX-101.CAL) — 150KB
• axs-20240930_def.xml (EX-101.DEF) — 464KB
• axs-20240930_lab.xml (EX-101.LAB) — 967KB
• axs-20240930_pre.xml (EX-101.PRE) — 724KB
• axs-20240930_htm.xml (XML) — 4544KB

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 54

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 88

Controls and Procedures

Item 4. Controls and Procedures 89 PART II Other Information 89

Legal Proceedings

Item 1. Legal Proceedings 89

Risk Factors

Item 1A. Risk Factors 89

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 90

Other Information

Item 5. Other Information 90

Exhibits

Item 6. Exhibits 91

Signatures

Signatures 92 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 September 30, 2024 (Unaudited) and December 31, 2023 6 Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023 (Unaudited) 7 Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2024 and 2023 (Unaudited) 8 Consolidated Statements of Changes in Shareholders' Equity for the three and nine months ended September 30, 2024 and 2023 (Unaudited) 9 Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 (Unaudited) 10

Notes to Consolidated Financial Statements (Unaudited) 12

Notes to Consolidated Financial Statements (Unaudited) 12 Note 1 - Organization 12 Note 2 - Basis of Presentation and Significant Accounting Policies 12 Note 3 - Segment Information 13 Note 4 - Investments 16 Note 5 - Fair Value Measurements 25 Note 6 - Derivative Instruments 36 Note 7 - Reserve for Losses and Loss Expenses 38 Note 8 - Earnings Per Common Share 43 Note 9 - Share-Based Compensation 43 Note 10 - Shareholders' Equity 46 Note 11 - Debt and Financing Arrangements 47 Note 12 - Federal Home Loan Bank Advances 47 Note 13 - Commitments and Contingencies 48 Note 14 - Other Comprehensive Income (Loss) 49 Note 15 - Related Party Transactions 50 Note 16 - Reorganization Expenses 50 Note 17 - Income Taxes 51 Note 18 - Subsequent Events 53 5 Table of Contents AXIS CAPITAL HOLDINGS LIMITED CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2024 (UNAUDITED) AND DECEMBER 31, 2023 2024 2023 (in thousands) Assets Investments: Fixed maturities, available for sale, at fair value (Amortized cost 2024: $ 13,806,792 ; 2023: $ 12,634,254 Allowance for expected credit losses 2024: $ 4,422 ; 2023: $ 10,759 ) $ 13,768,193 $ 12,234,742 Fixed maturities, held to maturity, at amortized cost (Fair value 2024: $ 499,538 ; 2023: $ 675,851 Allowance for expected credit losses 2024: $ nil ; 2023: $ nil ) 503,776 686,296 Equity securities, at fair value (Cost 2024: $ 518,090 ; 2023: $ 543,833 ) 604,834 588,511 Mortgage loans, held for investment, at fair value (Allowance for expected credit losses 2024: $ 22,024 ; 2023: $ 6,220 ) 524,929 610,148 Other investments, at fair value 939,734 949,413 Equity method investments 197,712 174,634 Short-term investments, at fair value 127,867 17,216 Total investments 16,667,045 15,260,960 Cash and cash equivalents 981,003 953,476 Restricted cash and cash equivalents 490,323 430,509 Accrued interest receivable 125,770 106,055 Insurance and reinsurance premium balances rece

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. ORGANIZATION On April 1, 2024, AXIS Energy Transition Syndicate 2050 ("AXIS Syndicate 2050") commenced underwriting. AXIS Corporate Capital UK II Limited is the sole corporate member of AXIS Syndicate 2050. AXIS Managing Agency operates as managing agent for AXIS Syndicate 2050. 2. BASIS OF PRESENTATION AND 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 September 30, 2024, the Company presented loan advances made in 2023 separately in the consolidated statements of cash flows. These loan advances made were incl

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 3. SEGMENT INFORMATION The Company's underwriting operations are organized around its global underwriting platforms, AXIS Insurance and AXIS R

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