AXIS Capital Reports First Quarter 2022 Results

Matt Rohrmann (Investor Contact):	(212) 940-3339;	[email protected]
Anna Kukowski (Media Contact):	(212) 715-3574;	[email protected]

AXIS CAPITAL REPORTS FIRST QUARTER NET INCOME AVAILABLE TO COMMON SHAREHOLDERS OF $142 MILLION, or $1.65 PER DILUTED COMMON SHARE AND

OPERATING INCOME $180 MILLION, or $2.09 PER DILUTED COMMON SHARE

For the first quarter of 2022, the Company reports:

• Improvement of 7.5 points in the combined ratio to 91.4%
• Annualized retuon average common equity ("ROACE") of 12.0%and annualized operating ROACE of15.3%
• Book value per diluted common share of $51.97

Pembroke, Bermuda, April 27,2022- AXIS Capital Holdings Limited ("AXIS Capital" or "the Company") (NYSE: AXS) today announced financial results for the first quarter ended March 31, 2022.

Commenting on the first quarter 2022 financial results, Albert Benchimol, President and CEO of AXIS Capital, said:

"This quarter we continued to deliver strong progress along virtually all key metrics to deliver a combined ratio of 91.4%. We continued to grow the most profitable areas of our business, improve the overall quality of our book, and lower our net cat exposure - all while providing great service to our customers.

"Our Insurance segment again recorded20%premium growth on the back of double-digit rate increases, and record first quarter new business as we continued to expand our presence in attractive markets, with a focus on delivering value to our partners in the E&S, Wholesale and Specialty channels. Within our Reinsurance segment, the team continued to make good progress in strengthening our portfolio while reducing our footprint in Catastrophe, highlighted by a 45% reduction in catastrophe lines premium.

"We're excited by the positive momentum that we continue to see throughout our business. Our focus is to build on it - and drive sustained profitable growth, further enhance our efficiency, and ultimately achieve our goal of becoming a top quintile performer."

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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FirstQuarter Consolidated Results*

• Net income available to common shareholders for the first quarter of 2022 was $142 million, or $1.65 per diluted common share, compared to net income available to common shareholders of $116 million, or $1.36 per diluted common share, for the first quarter of 2021.
• Operating income1for the first quarter of 2022 was $180 million, or $2.09 per diluted common share1, compared to operating income of $83 million, or $0.97 per diluted common share, for the first quarter of 2021.
• Book value per diluted common share of $51.97, a decrease of $3.81, or 6.8%, compared to December 31, 2021, driven by net unrealized losses reported in other comprehensive income (loss) and common share dividends declared, partially offset by net income generated.
• Adjusted for dividends declared, book value per diluted common share decreased by $3.38, or 6.1%, compared to December 31, 2021.
• Adjusted for dividends declared, book value per diluted common share increased by $0.64, or 1.2%, 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.

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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First Quarter Consolidated Underwriting Highlights2

• Gross premiums written increased by $99 million, or 4% ($133 million, or 5%, on a constant currency basis3), to $2.6 billion with an increase of $224 million, or 20%, in the insurance segment, partially offset by a decrease of $125 million, or 9%, in the reinsurance segment.
• Net premiums written increased by $34 million, or 2% ($68 million, or 4%, on a constant currency basis), to $1.8 billion with an increase of $136 million, or 19%, in the insurance segment, partially offset by a decrease of $102 million, or 10%, in the reinsurance segment.

Three months ended March 31,

KEY RATIOS

2022

2021

Change

Current accident year loss ratio, excluding catastrophe and weather-related losses4

54.2%

55.1%

(0.9 pts)

4.7%

10.1%

(5.4 pts)

Catastrophe and weather-related losses ratio Current accident year loss ratio

58.9%

65.2%

(6.3 pts)

(0.7%)

(0.4%)

(0.3 pts)

19.7%

19.8%

(0.1 pts)

Prior year reserve development ratio Net losses and loss expenses ratio Acquisition cost ratio

58.2%

64.8%

(6.6 pts)

91.4%

98.9%

(7.5 pts)

General and administrative expense ratio Combined ratio

13.5%

14.3%

(0.8 pts)

Current accident year combined ratio, excluding catastrophe and weather-related losses

87.4%

89.2%

(1.8 pts)
• Pre-tax catastrophe and weather-related losses, net of reinsurance, were $60 million ($50 million, after-tax),

(Insurance: $33 million; Reinsurance: $27 million), or 4.7 points, including $30 million, or 2.3 points attributable to the Russia-Ukraine war. The remaining losses of $30 million were primarily attributable to EasteAustralia floods, and other weather-related events. Comparatively, pre-tax catastrophe and weather-related losses were $110 million (Insurance: $36 million; Reinsurance: $74 million), or 10.1 points, in 2021.
• Net favorable prior year reserve development was $9 million (Insurance: $7 million; Reinsurance: $2 million), compared to $5 million (Insurance: $2 million; Reinsurance: $4 million) in 2021.

2All comparisons are with the same period of the prior year, unless otherwise stated.
3Amounts 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 later in this press release.
4The 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

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Segment Highlights

Insurance Segment

($ in thousands)

Three months ended March 31, 2022 2021Change

Gross premiums written Net premiums written Net premiums earned Underwriting income

1,327,264 843,912 752,816 94,391

1,103,198 20.3%

707,814 19.2%

616,286 22.2%

38,821

Underwriting ratios:

Current accident year loss ratio, excluding catastrophe and weather-related losses

50.5%

52.3%

(1.8 pts)

Catastrophe and weather-related losses ratio Current accident year loss ratio

4.3%

5.9%

(1.6 pts)

54.8%

58.2%

(3.4 pts)

Prior year reserve development ratio Net losses and loss expenses ratio Acquisition cost ratio

(0.9%)

(0.3%)

(0.6 pts)

53.9%

57.9%

(4.0 pts)

18.4%

19.1%

(0.7 pts)

Underwriting-related general and administrative expense ratio

15.2%

16.8%

(1.6 pts)

Combined ratio

87.5%

93.8%

(6.3 pts)

Current accident year combined ratio, excluding catastrophe and weather-related losses

84.1%

88.2%

(4.1 pts)

nm - not meaningful is defined as a variance greater than +/-100%

• Gross premiums written increased by $224 million, or 20% ($228 million, or 21%, on a constant currency basis), primarily attributable to increases in professional lines, liability, and property lines driven by new business and favorable rate changes.
• Net premiums written increased by $136 million, or 19% ($139 million, or 20%, on a constant currency basis), reflecting the increase in gross premiums written in the quarter, partially offset by an increase in premiums ceded in property lines.
•Pre-tax catastrophe and weather-related losses, net of reinsurance, were $33 million, including $16 million attributable to the Russia-Ukraine war. The remaining losses of $17 million were primarily attributable to EasteAustralia floods, and other weather-related events. Comparatively, pre-tax catastrophe and weather-related losses were $36 million in 2021.
• The current accident year loss ratio, excluding catastrophe and weather-related losses, decreased by 1.8 points in the first quarter, compared to the same period in 2021, principally due to the impact of favorable pricing over loss trends in most lines of business, partially offset by changes in business mix associated with the increase in professional lines and liability business written in recent periods.
•The acquisition cost ratio decreased by 0.7 points in the first quarter, compared to the same period in 2021, primarily relatedto property lines.
•The underwriting-related general and administrative expense ratio decreased by 1.6 points in the first quarter, compared to the same period in 2021, mainly driven byan increase in net premiums earned.

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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Reinsurance Segment

($ in thousands)

Three months ended March 31, 20222021Change

Gross premiums written Net premiums written Net premiums earned Underwriting income

1,307,344 968,960 505,430 44,401

1,432,283(8.7%)

1,071,072(9.5%)

487,4363.7%

1,425

Underwriting ratios:

Current accident year loss ratio, excluding catastrophe and weather-related losses

59.7%

58.6%

1.1 pts

Catastrophe and weather-related losses ratio Current accident year loss ratio

5.4%

15.6%

(10.2 pts)

65.1%

74.2 %

(9.1 pts)

Prior year reserve development ratio Net losses and loss expenses ratio Acquisition cost ratio

(0.4%)

(0.8%)

0.4 pts

64.7%

73.4%

(8.7 pts)

21.7%

20.8%

0.9 pts

Underwriting-related general and administrative expense ratio

6.1%

6.0%

0.1 pts

Combined ratio

92.5 %

100.2 %

(7.7 pts)

Current accident year combined ratio, excluding catastrophe and weather-related losses

87.5%

85.4%

2.1 pts

nm - not meaningful

• Gross premiums written decreased by $125 million, or 9% ($94 million, or 7%, on a constant currency basis), primarily attributable to decreasesin catastrophe, motor, and property lines due to non-renewals and decreased line sizes. These decreases were partially offset by increases in accident and health, and credit and surety lines driven by new business. In addition, the timing of renewals contributed to the increase in accident and health lines.
•Net premiums written decreased by $102 million, or 10% ($71 million, or 7%, on a constant currency basis), reflecting the decrease in gross premiums written in the quarter, together with increases in premiums ceded in motor and professional lines.
• Pre-tax catastrophe and weather-related losses, net of reinsurance, were $27 million, including $14 million attributable to the Russia-Ukraine war. The remaining losses of $13 million were primarily attributable to weather-related events. Comparatively, pre-tax catastrophe and weather-related losses were $74 million in 2021.
• The current accident year loss ratio, excluding catastrophe and weather-related losses, increased by 1.1 points in the first quarter, compared to the same period in 2021, principally due to changes in business mix driven by the decrease in catastrophe business written in recent periods, partially offset by the impact of favorable pricing over loss trends in most lines of business.
• The acquisition cost ratio increased by 0.9 points in the first quarter, compared to the same period in 2021, primarily related to changes in business mix driven by the decrease in catastrophe business written in recent periods.

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 published this content on 27 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 April 2022 20:34:33 UTC.