AXIS CAPITAL HOLDINGS LTD – 10-Q – MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following is a discussion and analysis of our results of operations for the
three months ended March 31, 2022 and 2021 and our financial condition at
March 31, 2022 and December 31, 2021. This should be read in conjunction with
Item 1 'Consolidated Financial Statements' of this report and our Management's
Discussion and Analysis of Financial Condition and Results of Operations
included in our Annual Report on Form 10-K for the year ended December 31, 2021.
Tabular dollars are in thousands, except per share amounts. Amounts in tables
may not reconcile due to rounding differences.

                                                           Page

First Quarter 2022 Financial Highlights                      49
Overview                                                     50
Consolidated Results of Operations                           53
Results by Segment:
i) Insurance Segment                                         55
ii) Reinsurance Segment                                      59

Net Investment Income and Net Investment Gains (Losses) 63
Other Expenses (Revenues), Net

                               65
Financial Measures                                           67
Non-GAAP Financial Measures Reconciliation                   69
Cash and Investments                                         72
Liquidity and Capital Resources                              75
Critical Accounting Estimates                                76
Recent Accounting Pronouncements                             76




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FIRST QUARTER 2022 FINANCIAL HIGHLIGHTS

First Quarter 2022 Consolidated Results of Operations

•Net income available to common shareholders of $142 million, or $1.67 per
common share, and $1.65 per diluted common share

•Operating income(1) of $180 million, or $2.09 per diluted common share(1)

•Gross premiums written of $2.6 billion

•Net premiums written of $1.8 billion

•Net premiums earned of $1.3 billion

•Pre-tax catastrophe and weather-related losses, net of reinsurance, of $60
million (Insurance: $33 million and Reinsurance: $27 million), or 4.7 points,
including $30 million attributable to the Russia-Ukraine war. The remaining
losses of $30 million were primarily attributable to Eastern Australia floods,
and other weather-related events.

•Net favorable prior year reserve development of $9 million

•Underwriting income(2) of $139 million and combined ratio of 91.4%

•Net investment income of $91 million

•Net investment losses of $95 million

•Foreign exchange gains of $44 million

First Quarter 2022 Consolidated Financial Condition

•Total cash and investments of $16.0 billion; fixed maturities, short-term
investments, and cash and cash equivalents comprise 86% of total cash and
investments and have an average credit rating of AA-

•Total assets of $27.8 billion

•Reserve for losses and loss expenses of $14.5 billion and reinsurance
recoverable on unpaid and paid losses and loss expenses of $5.6 billion

•Debt of $1.3 billion and debt to total capital ratio(3) of 20.4%

•Common shareholders' equity of $4.6 billion; book value per diluted common
share of $51.97

(1)Operating income (loss) and operating income (loss) per diluted common share
are non-GAAP financial measures as defined in Item 10(e) of SEC Regulation S-K.
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 in 'Management's Discussion and
Analysis of Financial Condition and Results of Operations - Non-GAAP Financial
Measures Reconciliation'.
(2)Consolidated underwriting income (loss) is a non-GAAP financial measure as
defined in Item 10(e) of SEC Regulation S-K. The reconciliation to, the most
comparable GAAP financial measure, net income (loss), is presented in
'Management's Discussion and Analysis of Financial Condition and Results of
Operations - Consolidated Results of Operations', and a discussion of the
rationale for its presentation is provided in 'Management's Discussion and
Analysis of Financial Condition and Results of Operations - Non-GAAP Financial
Measures Reconciliation'.
(3)The debt to total capital ratio is calculated by dividing debt by total
capital. Total capital represents the sum of total shareholders' equity and
debt.

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OVERVIEW



Business Overview

AXIS Capital Holdings Limited ("AXIS Capital"), through its operating
subsidiaries, is a global provider of specialty lines insurance and treaty
reinsurance with operations in Bermuda, the U.S., Europe, Singapore and Canada.
Our underwriting operations are organized around our global underwriting
platforms, AXIS Insurance and AXIS Re.

We provide our clients and distribution partners with a broad range of risk
transfer products and services, and meaningful capacity, backed by excellent
financial strength. We manage our portfolio holistically, aiming to construct
the optimum portfolio of risks, consistent with our risk appetite and the
development of our franchise. We nurture an ethical, entrepreneurial,
disciplined and diverse culture that promotes outstanding client service,
intelligent risk taking and the achievement of superior risk-adjusted returns
for our shareholders. We believe that the achievement of our objectives will
position us as a global leader in specialty risks. The execution of our business
strategy for the first three months of 2022 included the following:

•increasing our relevance in a select number of attractive specialty lines
insurance and treaty reinsurance markets including U.S. excess and surplus
lines, North America professional lines and Lloyd's specialty insurance
business;

•re-balancing our portfolio towards less volatile lines of business that carry
attractive returns while deploying capital with risk limits, diversification and
risk management;

•continuing the implementation of a focused distribution strategy while building
mutually beneficial relationships with clients and partners;

•improving the effectiveness and efficiency of our operating platforms and
processes;

•investing in data and technology capabilities, and tools to empower our
underwriters and enhance the service that we provide to our customers;

•utilizing reinsurance markets and third party capital relationships;

•fostering a positive workplace environment that enables us to attract, retain
and develop top talent; and

•growing our corporate citizenship program to give back to our communities and
help contribute to a more sustainable future.

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Outlook

We are committed to leadership in specialty insurance and global reinsurance
markets, where we have depth of talent and expertise. We believe our market
positioning, underwriting expertise, best-in-class claims management
capabilities and strong relationships with our distributors and clients will
provide opportunities for increased profitability, with differences among our
lines driven by our tactical response to market conditions.

Rates, and terms and conditions across virtually all insurance lines and
geographies continued to be favorable through the first quarter of 2022. We
expect many specialty segments will continue to experience further pricing
improvements, as carriers assess pricing adequacy, portfolio construction,
inflationary pressure and account preferences. In this market environment, we
continue to focus on growth in lines of business and market segments that are
adequately priced.

The reinsurance market is also experiencing an improvement in rates, and terms
and conditions. This is offset by market volatility and very strong industry
capitalization, and more improvement is needed to achieve price adequacy. In
light of 2021 marking the fifth consecutive year of challenging market loss
events, carriers are aiming to reduce net volatility and increase profitability.
Overall, we believe the reinsurance market will continue to gain momentum and
there are opportunities to achieve the required risk adjusted rate increases
while practicing disciplined underwriting and focused growth.

We are encouraged by the pricing improvements we are seeing across both the
insurance and reinsurance segments, that we expect will carry into 2023 and
beyond. Where prices deliver adequate profitability, we will look to grow within
our risk and volatility guidelines. With a strengthened book of business, and
growing footprint in attractive markets that are seeing the most favorable
conditions, we believe AXIS is well positioned to drive profitable growth within
the current environment.

Response to Russia-Ukraine War

Following the Russian invasion of Ukraine and the triggering of sanctions
against the countries involved, organizations and named individuals, we
established a task-force to coordinate our response to this situation.

The Russia-Ukraine war, and its related impacts, are an emerging and evolving
risk to which we are exposed from an underwriting and reserving perspective.

Our team is tracking the situation closely, including stress and scenario
testing on existing underwriting exposures. A range of economic impacts and
external pressures across individual product lines are being considered.

Underwriting

We are monitoring international sanctions which impact our global operations and
were effective March 27, 2022. The impact on gross premiums written for the
three months ended March 31, 2022 of the cancellation of policies with exposures
to the Russia-Ukraine war was immaterial. We continue to evaluate opportunities
to write business in the region, not including Russia or Ukraine risks, with
terms as short as seven days.

We are also closely monitoring cash due from our customers and reinsurers,
giving due consideration to the Russia-Ukraine war and associated international
sanctions. At March 31, 2022, we considered the potential financial impact of
Russia-Ukraine war when determining allowances for expected credit losses for
insurance and reinsurance premium balances receivable and reinsurance
recoverable balances on unpaid losses and loss expenses. Based on facts and
circumstances at that time, we did not adjust allowances for expected credit
losses at March 31, 2022. We will continue to monitor the appropriateness of
allowances for expected credit losses as new information comes to light.
Adjustments to allowances for expected credit losses in subsequent periods could
be material.

Reserving

At March 31, 2022, we incurred pre-tax catastrophe and weather-related losses of
$30 million attributable the Russia-Ukraine war.

The estimate of net reserves for losses and loss expenses related to the
Russia-Ukraine war is subject to significant uncertainty. This uncertainty is
driven by the inherent difficulty in making assumptions around the impact of the
Russia-Ukraine war due to the lack of comparable events, the ongoing nature of
the event, and its far-reaching impacts.

While we believe the overall estimate of net reserves for losses and loss
expenses is adequate for losses and loss adjustment expenses that have been
incurred at March 31, 2022, based on current facts and circumstances, we will
continue to monitor the appropriateness

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of our assumptions as new information comes to light and will adjust the
estimate of net reserves for losses and loss adjustment expenses, as
appropriate.

Actual losses for this event may ultimately differ materially from current
estimates.

Refer to 'Management's Discussion and Analysis of Financial Condition and
Results of Operations - Results by Segment' for further information

Investments

At March 31, 2022, we had no direct exposures to Russia or Ukraine within our
investments portfolio.

Refer to Item 1A, 'Risk Factors' in our most recent Annual Report on Form 10-K
for further information.

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