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 and nine months ended September 30, 2022 and 2021 and our financial
condition at September 30, 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

Third Quarter 2022 Financial Highlights                      53
Overview                                                     54
Consolidated Results of Operations                           57
Results by Segment:
i) Insurance Segment                                         59
ii) Reinsurance Segment                                      63

Net Investment Income and Net Investment Gains (Losses) 68
Other Expenses (Revenues), Net

                               70
Financial Measures                                           72
Non-GAAP Financial Measures Reconciliation                   74
Cash and Investments                                         77
Liquidity and Capital Resources                              80
Critical Accounting Estimates                                81
Recent Accounting Pronouncements                             82




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THIRD QUARTER 2022 FINANCIAL HIGHLIGHTS

Third Quarter 2022 Consolidated Results of Operations

•Net loss attributable to common shareholders of $17 million, or $(0.20) per
common share and diluted common share

•Operating income(1) of $3 million, or $0.03 per diluted common share(1)

•Gross premiums written of $1.7 billion

•Net premiums written of $1.0 billion

•Net premiums earned of $1.3 billion

•Pre-tax catastrophe and weather-related losses, net of reinsurance and
reinstatement premiums, of $212 million (Insurance: $113 million and
Reinsurance: $99 million), or 16.6 points, primarily attributable to Hurricane
Ian.

•Net favorable prior year reserve development of $5 million

•Underwriting loss(2) of $29 million and combined ratio of 104.3%

•Net investment income of $88 million

•Net investment losses of $146 million

•Foreign exchange gains of $136 million

Third Quarter 2022 Consolidated Financial Condition

•Total cash and investments of $15.6 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 $27.1 billion

•Reserve for losses and loss expenses of $14.7 billion and reinsurance
recoverable on unpaid and paid losses and loss expenses of $5.7 billion

•Debt of $1.3 billion and debt to total capital ratio(3) of 23.2%

•Common shareholders' equity of $3.8 billion; book value per diluted common
share of $43.50

(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 specialty underwriter and provider of insurance and
reinsurance solutions 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 nine 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 reinsurance, where we
have a 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 of business driven by
our tactical response to market conditions.

Rates, terms and conditions across virtually all insurance lines continued to be
favorable as pricing generally continues to rise, albeit at moderated levels.
The industry has observed rising loss cost trends and we expect rate improvement
to continue as carriers assess the impact of heightened catastrophe loss
activity, financial and social inflation, and geopolitical uncertainty, among
other factors. 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 experiencing improvements in rates, and terms and
conditions. In light of 2022 marking the sixth consecutive year of challenging
market loss events, reinsurance carriers are aiming to reduce net volatility and
increase profitability, and we expect the hardest market opportunities to be
catastrophe and property lines, with improving conditions in specialty and
casualty reinsurance lines. While we anticipate pricing to be higher for our own
reinsurance purchases, we also expect to see opportunity to drive profitable
growth among the specialty and casualty reinsurance lines that we offer.

We are encouraged by the pricing improvements we are seeing across most markets,
which we expect will carry through 2023. Where prices deliver adequate
profitability, we will look to grow within our risk and volatility guidelines.
We believe AXIS is well positioned to drive profitable growth within the current
environment with a strengthened book of business, and growing footprint in
attractive specialty 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 nine
months ended September 30, 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 September 30, 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 September 30, 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 September 30, 2022, estimated pre-tax net losses attributable to the
Russia-Ukraine war were $33 million.

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 difficulty in performing on-site evaluations, and by the inherent
difficulty in making assumptions due to the lack of comparable events, the
ongoing nature of the event, and its far-reaching impacts.

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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 September 30, 2022, based on current facts and circumstances, we
will continue to monitor the appropriateness 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 September 30, 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.

Recent Developments

On June 7, 2022, we announced the decision to exit catastrophe and property
reinsurance lines of business. This strategic initiative is part of an overall
approach to reduce our exposure to volatile catastrophe risk. Reorganization
expenses, mainly related to this strategic initiative for the three months ended
September 30, 2022 of $6 million, were attributable to compensation-related
costs associated with the termination of certain employees and software asset
impairments.

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