For the third quarter of 2021, the Company reports:

Improvement of 4.8 points in current accident year combined ratio, excluding catastrophe and weather-related losses to 87.6%, compared to the prior year
Operating income of $1 million, or $0.01 per diluted common share
Pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, of $250 million, or 20.7 points
Annualized return on average common equity ("ROACE") of 3.9%
Book value per diluted common share of $54.86, a decrease of $0.64, or 1.2%, compared to June 30, 2021

AXIS Capital Holdings Limited ("AXIS Capital" or "the Company") (NYSE:AXS) today announced financial results for the third quarter ended September 30, 2021.

Commenting on the third quarter 2021 financial results, Albert Benchimol, President and CEO of AXIS Capital, said:

"Once again our industry was challenged by severe weather events and our focus continues to be on supporting our clients and the communities that have been impacted.

"In the face of these challenges, we continued to deliver, accelerating momentum in our progress highlighted by eight consecutive quarters of year-over-year improvement in our combined ratio ex-cat and weather. Notably, AXIS generated net operating income for the quarter, and our lower market share of the events demonstrates the progress that we've made in reducing our net exposure to catastrophes. Our results were underscored by strong top line growth, disciplined underwriting, and solid investment income.

"AXIS is well positioned in key specialty markets and we're increasingly confident that favorable conditions will continue through 2022 and likely beyond, providing us with an attractive path to further profitable growth."

Third Quarter Consolidated Results*

Net income available to common shareholders for the third quarter of 2021 was $47 million, or $0.56 per diluted common share, compared to net loss attributable to common shareholders of $(73) million, or $(0.87) per diluted common share, for the third quarter of 2020.
Net income available to common shareholders for the nine months ended September 30, 2021 was $391 million, or $4.59 per diluted common share, compared to a net loss attributable to common shareholders of $(146) million, or $(1.73) per diluted common share, for the same period in 2020.
Operating income¹ for the third quarter of 2021 was $1 million, or $0.01 per diluted common share¹, compared to an operating loss of $(65) million, or $(0.77) per diluted common share, for the third quarter of 2020.
Operating income for the nine months ended September 30, 2021 was $254 million, or $2.98 per diluted common share¹, compared to an operating loss of $(158) million, or $(1.88) per diluted common share, for the same period in 2020.
Adjusted for dividends declared, the book value per diluted common share decreased by $0.22, or 0.4%, compared to June 30, 2021.
Adjusted for dividends declared, the book value per diluted common share increased by $1.79, or 3.3%, over the past twelve months.

* Amounts may not reconcile due to rounding differences.

¹ Operating 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. Loss per diluted common share and operating loss per diluted common share for the three and nine months ended September 30, 2020 were calculated using weighted average common shares outstanding due to the net loss attributable to common shareholders and operating loss recognized in these periods.

Third Quarter Consolidated Underwriting Highlights²

Gross premiums written increased by $315 million, or 24% ($299 million, or 22%, on a constant currency basis³), to $1.6 billion with an increase of $241 million, or 26%, in the insurance segment and an increase of $75 million, or 19%, in the reinsurance segment.
Net premiums written increased by $180 million, or 22% ($166 million, or 20%, on a constant currency basis), to $1.0 billion with an increase of $163 million, or 30%, in the insurance segment and an increase of $18 million, or 7%, in the reinsurance segment.

	Three months ended September 30,
KEY RATIOS	2021		2020		Change
Current accident year loss ratio excluding catastrophe and weather-related losses⁴	55.4	%	58.5	%	(3.1	pts)
Catastrophe and weather-related losses ratio	20.7	%	22.2	%	(1.5	pts)
Current accident year loss ratio	76.1	%	80.7	%	(4.6	pts)
Prior year reserve development ratio	(0.9	%)	(0.1	%)	(0.8	pts)
Net losses and loss expenses ratio	75.2	%	80.6	%	(5.4	pts)
Acquisition cost ratio	19.1	%	21.1	%	(2.0	pts)
General and administrative expense ratio	13.1	%	12.8	%	0.3	pts
Combined ratio	107.4	%	114.5	%	(7.1	pts)

Current accident year combined ratio excluding catastrophe and weather-related losses	87.6	%	92.4	%	(4.8	pts)

Pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $250 million (Insurance: $105 million; Reinsurance: $145 million), or 20.7 points, primarily attributable to Hurricane Ida, July European floods, and other weather-related events, compared to $240 million (Insurance: $132 million; Reinsurance: $108 million), or 22.2 points, in 2020.
No change to the net loss estimate of $360 million established for the COVID-19 pandemic in 2020.
Net favorable prior year reserve development was $11 million (Insurance: $5 million; Reinsurance: $6 million), compared to $0.6 million (Insurance: $0.3 million; Reinsurance: $0.3 million) in 2020.

² All comparisons are with the same period of the prior year, unless otherwise stated.

³ Amounts 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 in this press release.

⁴ The 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.

Nine Months Consolidated Underwriting Highlights

Gross premiums written increased by $645 million, or 12% ($575 million, or 10%, on a constant currency basis), to $6.1 billion with an increase of $634 million, or 22%, in the insurance segment and an increase of $11 million, in the reinsurance segment.
Net premiums written increased by $428 million, or 12% ($363 million, or 10%, on a constant currency basis), to $4.0 billion with an increase of $399 million, or 23%, in the insurance segment and an increase of $29 million, or 2%, in the reinsurance segment.

	Nine months ended September 30,
KEY RATIOS	2021		2020		Change
Current accident year loss ratio excluding catastrophe and weather-related losses	55.4	%	57.8	%	(2.4	pts)
Catastrophe and weather-related losses ratio	11.3	%	17.5	%	(6.2	pts)
Current accident year loss ratio	66.7	%	75.3	%	(8.6	pts)
Prior year reserve development ratio	(0.7	%)	(0.3	%)	(0.4	pts)
Net losses and loss expenses ratio	66.0	%	75.0	%	(9.0	pts)
Acquisition cost ratio	19.3	%	21.2	%	(1.9	pts)
General and administrative expense ratio	13.8	%	13.4	%	0.4	pts
Combined ratio	99.1	%	109.6	%	(10.5	pts)

Current accident year combined ratio excluding catastrophe and weather-related losses	88.5	%	92.4	%	(3.9	pts)

Pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $389 million (Insurance: $152 million; Reinsurance: $237 million), or 11.3 points, primarily attributable to Hurricane Ida, Winter Storms Uri and Viola principally related to the state of Texas, July European floods, and other weather-related events, compared to $576 million (Insurance: $325 million; Reinsurance: $251 million), or 17.5 points, in 2020.
No change to the net loss estimate of $360 million established for the COVID-19 pandemic in 2020.
Net favorable prior year reserve development was $23 million (Insurance: $13 million; Reinsurance: $10 million), compared to $9 million (Insurance: $5 million; Reinsurance: $5 million) in 2020.

Segment Highlights

Insurance Segment

	Three months ended September 30,
($ in thousands)	2021			2020			Change
Gross premiums written	$	1,176,500		$	935,817		25.7	%
Net premiums written	707,492			544,857			29.8	%
Net premiums earned	681,008			570,184			19.4	%
Underwriting income (loss)	10,361			(81,465		)	nm

Underwriting ratios:
Current accident year loss ratio excluding catastrophe and weather-related losses	50.8		%	54.7		%	(3.9	pts)
Catastrophe and weather-related losses ratio	15.0		%	23.1		%	(8.1	pts)
Current accident year loss ratio	65.8		%	77.8		%	(12.0	pts)
Prior year reserve development ratio	(0.8		%)	—		%	(0.8	pts)
Net losses and loss expenses ratio	65.0		%	77.8		%	(12.8	pts)
Acquisition cost ratio	18.1		%	20.1		%	(2.0	pts)
Underwriting-related general and administrative expense ratio	15.4		%	16.5		%	(1.1	pts)
Combined ratio	98.5		%	114.4		%	(15.9	pts)

Current accident year combined ratio excluding catastrophe and weather-related losses	84.3		%	91.3		%	(7.0	pts)
nm - not meaningful is defined as a variance greater than +/-100%

Gross premiums written increased by $241 million, or 26% ($228 million, or 24%, 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 $163 million, or 30% ($152 million, or 28%, on a constant currency basis), reflecting the increase in gross premiums written in the quarter.
Pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $105 million, primarily attributable to Hurricane Ida and other weather-related events, compared to $132 million in 2020.
The current accident year loss ratio excluding catastrophe and weather-related losses decreased by 3.9 points in the third quarter, compared to the same period in 2020, principally due to the impact of favorable pricing over loss trends, and underwriting actions most notably in liability, aviation, and property lines.
Net favorable prior year reserve development was $5 million this quarter, compared to $0.3 million in the third quarter of 2020.
The acquisition cost ratio decreased by 2.0 points in the third quarter, compared to the same period in 2020, primarily due to the decrease in program business in property lines written in recent periods and an increase in ceding commissions.
The underwriting-related general and administrative expense ratio decreased by 1.1 points in the third quarter, compared to the same period in 2020, mainly driven by an increase in net premiums earned, partially offset by an increase in personnel costs.

	Nine months ended September 30,
($ in thousands)	2021			2020			Change
Gross premiums written	$	3,548,169		$	2,914,100		21.8	%
Net premiums written	2,128,190			1,729,268			23.1	%
Net premiums earned	1,928,970			1,709,268			12.9	%
Underwriting income (loss)	142,703			(169,698		)	nm

Underwriting ratios:
Current accident year loss ratio excluding catastrophe and weather-related losses	51.6		%	54.8		%	(3.2	pts)
Catastrophe and weather-related losses ratio	7.8		%	18.7		%	(10.9	pts)
Current accident year loss ratio	59.4		%	73.5		%	(14.1	pts)
Prior year reserve development ratio	(0.7		%)	(0.2		%)	(0.5	pts)
Net losses and loss expenses ratio	58.7		%	73.3		%	(14.6	pts)
Acquisition cost ratio	18.0		%	20.1		%	(2.1	pts)
Underwriting-related general and administrative expense ratio	16.0		%	16.7		%	(0.7	pts)
Combined ratio	92.7		%	110.1		%	(17.4	pts)

Current accident year combined ratio excluding catastrophe and weather-related losses	85.6		%	91.6		%	(6.0	pts)
nm - not meaningful

Gross premiums written increased by $634 million, or 22% ($596 million, or 20%, on a constant currency basis), primarily attributable to increases in professional lines, liability, property, and marine lines driven by new business and favorable rate changes.
Net premiums written increased by $399 million, or 23% ($365 million, or 21%, on a constant currency basis), reflecting the increase in gross premiums written, partially offset by increases in premiums ceded in professional lines, liability, and property lines.
Pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $152 million, primarily attributable to Hurricane Ida, Winter Storms Uri and Viola, and other weather-related events, compared to $325 million in 2020.

Reinsurance Segment

	Three months ended September 30,
($ in thousands)	2021			2020			Change
Gross premiums written	$	469,989		$	395,361		18.9	%
Net premiums written	288,979			271,125			6.6	%
Net premiums earned	530,419			521,128			1.8	%
Underwriting income (loss)	(69,176		)	(53,859		)	28.4	%

Underwriting ratios:
Current accident year loss ratio excluding catastrophe and weather-related losses	61.4		%	62.7		%	(1.3	pts)
Catastrophe and weather-related losses ratio	28.0		%	21.1		%	6.9	pts
Current accident year loss ratio	89.4		%	83.8		%	5.6	pts
Prior year reserve development ratio	(1.0		%)	(0.1		%)	(0.9	pts)
Net losses and loss expenses ratio	88.4		%	83.7		%	4.7	pts
Acquisition cost ratio	20.4		%	22.3		%	(1.9	pts)
Underwriting-related general and administrative expense ratio	5.6		%	4.5		%	1.1	pts
Combined ratio	114.4		%	110.5		%	3.9	pts

Current accident year combined ratio excluding catastrophe and weather-related losses	87.4		%	89.5		%	(2.1	pts)

Gross premiums written increased by $75 million, or 19% ($71 million, or 18%, on a constant currency basis), primarily attributable to increases in liability, accident and health, and catastrophe lines, partially offset by a decrease in property lines. The increases in liability and accident and health lines were largely driven by favorable market conditions. The increase in catastrophe lines was attributable to reinstatement premiums. The decrease in property lines was driven by non-renewals and decreased line sizes associated with repositioning the portfolio.
Net premiums written increased by $18 million, or 7% ($14 million, or 5%, on a constant currency basis), reflecting the increase in gross premiums written in the quarter, partially offset by increases in premium ceded in catastrophe, credit and surety, and liability lines.
Pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $145 million, primarily attributable to Hurricane Ida, July European floods, and other weather-related events, compared to $108 million in 2020.
The current accident year loss ratio excluding catastrophe and weather-related losses decreased by 1.3 points in the third quarter, compared to the same period in 2020, principally due to improved loss experience in credit and surety, and accident and health lines, and the impact of favorable pricing over loss trends, partially offset by the impact of changes in retrocessional arrangements and changes in business mix.
Net favorable prior year reserve development was $6 million this quarter, compared to $0.3 million in the third quarter of 2020.
The acquisition cost ratio decreased by 1.9 points in the third quarter, compared to the same period in 2020, primarily due to the impact of retrocessional contracts.
The underwriting-related general and administrative expense ratio increased by 1.1 points in the third quarter, compared to the same period in 2020, mainly driven by an increase in personnel costs.

	Nine months ended September 30,
($ in thousands)	2021			2020			Change
Gross premiums written	$	2,574,987		$	2,564,419		0.4	%
Net premiums written	1,851,025			1,821,692			1.6	%
Net premiums earned	1,543,120			1,574,673			(2.0	%)
Underwriting income (loss)	(13,019		)	(74,982		)	(82.6	%)

Underwriting ratios:
Current accident year loss ratio excluding catastrophe and weather-related losses	60.2		%	61.1		%	(0.9	pts)
Catastrophe and weather-related losses ratio	15.7		%	16.1		%	(0.4	pts)
Current accident year loss ratio	75.9		%	77.2		%	(1.3	pts)
Prior year reserve development ratio	(0.7		%)	(0.3		%)	(0.4	pts)
Net losses and loss expenses ratio	75.2		%	76.9		%	(1.7	pts)
Acquisition cost ratio	20.8		%	22.5		%	(1.7	pts)
Underwriting-related general and administrative expense ratio	5.8		%	4.9		%	0.9	pts
Combined ratio	101.8		%	104.3		%	(2.5	pts)

Current accident year combined ratio excluding catastrophe and weather-related losses	86.8		%	88.5		%	(1.7	pts)

Gross premiums written increased by $11 million (decreased by $21 million, or 1%, on a constant currency basis), primarily attributable to increases in liability, professional lines, and accident and health lines, largely due to favorable rate changes. These increases were partially offset by decreases in catastrophe, motor, property, engineering, and credit and surety lines due to non-renewals and decreased line sizes.
Net premiums written increased by $29 million, or 2% (decreased by $2 million, on a constant currency basis), reflecting the increase in gross premiums written and decreases in premiums ceded in catastrophe and property lines, partially offset by an increase in premiums ceded in liability lines.
Pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $237 million, primarily attributable to Hurricane Ida, Winter Storms Uri and Viola, July European floods, and other weather-related events, compared to $251 million in 2020.

Investments

Net investment income of $107 million increased from net investment income of $102 million for the third quarter of 2020, primarily attributable to positive returns from other investments in 2021. Net realized and unrealized gains recognized in net income for the quarter were $11 million, including net unrealized losses of $8 million ($1 million excluding foreign exchange movements), following a decrease in the market value of our equity securities portfolio during the quarter, compared to net realized and unrealized gains of $56 million in the third quarter of 2020.

Pre-tax total return on cash and investments⁵ was 0.3% including foreign exchange movements (0.5% excluding foreign exchange movements⁶). Net unrealized losses of $81 million ($55 million excluding foreign exchange movements) were recognized in other comprehensive income in the quarter, compared to net unrealized gains of $73 million ($43 million excluding foreign exchange movements) recognized during the third quarter of 2020. The prior year pre-tax total return was 1.5% including foreign exchange movements (1.2% excluding foreign exchange movements).

For the nine months ended September 30, 2021, pre-tax total return on cash and investments was 1.1% including foreign exchange movements (1.3% excluding foreign exchange movements), compared to 3.1% including foreign exchange movements (3.1% excluding foreign exchange movements) for the same period in 2020. Net unrealized losses of $298 million ($257 million excluding foreign exchange movements) were recognized in other comprehensive income in the year, compared to net unrealized gains of $205 million ($213 million excluding foreign exchange movements) for the same period in 2020.

Our fixed income portfolio book yield was 1.9% at September 30, 2021, compared to 2.3% at September 30, 2020. The market yield was 1.4% at September 30, 2021.

⁵ Pre-tax total return on cash and investments includes net investment income (loss), net investment gains (losses), interest in income (loss) of equity method investments and change in unrealized investment gains (losses) generated by average cash and investment balances. Total cash and invested assets represents the total cash and cash equivalents, fixed maturities, equity securities, mortgage loans, other investments, equity method investments, short-term investments, accrued interest receivable and net receivable (payable) for investments sold (purchased).

⁶ Pre-tax total return on cash and investments excluding foreign exchange movements is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to pre-tax total return on cash and investments, the most comparable GAAP financial measure, also included foreign exchange (losses) gains of $(30) million and $42 million for the three months ended September 30, 2021 and 2020, respectively, and foreign exchange (losses) gains of $(35) million and $(6) million for the nine months ended September 30, 2021 and 2020, respectively.

Capitalization / Shareholders' Equity

Total capital⁷ at September 30, 2021 was $6.6 billion, including $1.3 billion of debt and $550 million of preferred equity, compared to $6.6 billion at December 31, 2020, with net income generated for the nine months ended September 30, 2021, largely offset by a decrease in net unrealized gains reported in other comprehensive income following a decrease in the market value of our fixed income portfolio and common share dividends declared.

Book value per diluted common share, calculated on a treasury stock basis, decreased by $0.64 in the current quarter, and increased by $0.11 over the past twelve months, to $54.86. The decrease in the quarter was driven by a decrease in the net unrealized gains reported in other comprehensive income and common share dividends declared, partially offset by the net income generated. The increase over the past twelve months was driven by the net income generated, partially offset by a decrease in the net unrealized gains reported in other comprehensive income, and common share dividends declared.

During the third quarter of 2021, the Company declared dividends of $0.42 per common share, with total dividends declared of $1.68 per common share over the past twelve months. Adjusted for dividends declared, the book value per diluted common share decreased by $0.22 for the quarter, and increased by $1.79 over the past twelve months.

⁷ Total capital represents the sum of total shareholders' equity and debt.

Conference Call

We will host a conference call on Thursday, October 28, 2021 at 9:30 a.m. (EDT) to discuss the third quarter financial results and related matters. The teleconference can be accessed by dialing 1-877-883-0383 (U.S. callers) or 1-412-902-6506 (international callers) approximately ten minutes in advance of the call and entering the passcode 9403469. A live, listen-only webcast of the call will also be available via the Investor Information section of our website at www.axiscapital.com. A replay of the teleconference will be available for two weeks by dialing 1-877-344-7529 (U.S. callers) or 1-412-317-0088 (international callers) and entering the passcode 10160458. The webcast will be archived in the Investor Information section of our website.

In addition, an investor financial supplement for the quarter ended September 30, 2021 is available in the Investor Information section of our website.

About AXIS Capital

AXIS Capital, through its operating subsidiaries, is a global provider of specialty lines insurance and treaty reinsurance with shareholders' equity of $5.3 billion at September 30, 2021, and locations in Bermuda, the United States, Europe, Singapore and Canada. Its operating subsidiaries have been assigned a rating of "A+" ("Strong") by Standard & Poor's and "A" ("Excellent") by A.M. Best. For more information about AXIS Capital, visit our website at www.axiscapital.com.

Website and Social Media Disclosure

We use our website (www.axiscapital.com) and our corporate LinkedIn (AXIS Capital) and Twitter (@AXIS_Capital) accounts as channels of distribution of Company information. The information we post through these channels may be deemed material. Accordingly, investors should monitor these channels, in addition to following our press releases, SEC filings and public conference calls and webcasts. In addition, e-mail alerts and other information about AXIS Capital may be received by those enrolled in our "E-mail Alerts" program, which can be found in the Investor Information section of our website. The contents of our website and social media channels are not part of this press release.

Follow AXIS Capital on LinkedIn and Twitter.

LinkedIn: http://bit.ly/2kRYbZ5

AXIS CAPITAL HOLDINGS LIMITED CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2021 (UNAUDITED) AND DECEMBER 31, 2020

	2021			2020
	(in thousands)
Assets
Investments:
Fixed maturities, available for sale, at fair value	$	12,380,959		$	12,041,799
Fixed maturities, held to maturity, at amortized cost	416,879			—
Equity securities, at fair value	618,822			518,445
Mortgage loans, held for investment, at fair value	623,487			593,290
Other investments, at fair value	892,664			829,156
Equity method investments	145,080			114,209
Short-term investments, at fair value	68,267			161,897
Total investments	15,146,158			14,258,796
Cash and cash equivalents	947,542			902,831
Restricted cash and cash equivalents	551,662			600,401
Accrued interest receivable	62,423			65,020
Insurance and reinsurance premium balances receivable	2,978,996			2,738,342
Reinsurance recoverable on unpaid losses and loss expenses	4,989,645			4,496,641
Reinsurance recoverable on paid losses and loss expenses	506,503			434,201
Deferred acquisition costs	544,384			431,439
Prepaid reinsurance premiums	1,460,723			1,194,455
Receivable for investments sold	2,028			2,150
Goodwill	100,801			100,801
Intangible assets	211,557			219,633
Value of business acquired	770			3,854
Operating lease right-of-use assets	107,791			123,579
Other assets	324,154			305,544
Total assets	$	27,935,137		$	25,877,687
Liabilities
Reserve for losses and loss expenses	$	14,658,996		$	13,926,766
Unearned premiums	4,464,282			3,685,886
Insurance and reinsurance balances payable	1,442,729			1,092,042
Debt	1,310,650			1,309,695
Payable for investments purchased	239,073			104,777
Operating lease liabilities	123,874			140,263
Other liabilities	360,478			322,564
Total liabilities	22,600,082			20,581,993
Shareholders' equity
Preferred shares	550,000			550,000
Common shares	2,206			2,206
Additional paid-in capital	2,336,895			2,330,054
Accumulated other comprehensive income	150,122			414,395
Retained earnings	6,044,843			5,763,607
Treasury shares, at cost	(3,749,011		)	(3,764,568		)
Total shareholders' equity	5,335,055			5,295,694
Total liabilities and shareholders' equity	$	27,935,137		$	25,877,687

AXIS CAPITAL HOLDINGS LIMITED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

	Three months ended						Nine months ended
	2021			2020			2021			2020

	(in thousands, except per share amounts)
Revenues
Net premiums earned	$	1,211,427		$	1,091,312		$	3,472,090		$	3,283,941
Net investment income	107,339			101,956			326,174			240,098
Net investment gains	10,932			55,609			113,868			45,777
Other insurance related income (loss)	7,665			1,440			16,262			(5,270		)
Total revenues	1,337,363			1,250,317			3,928,394			3,564,546

Expenses
Net losses and loss expenses	911,369			879,677			2,292,559			2,464,012
Acquisition costs	231,712			230,564			669,654			697,716
General and administrative expenses	157,960			138,823			478,820			436,538
Foreign exchange losses (gains)	(28,032		)	60,734			(4,316		)	8,760
Interest expense and financing costs	15,954			15,574			46,759			59,641
Reorganization expenses	—			1,413			—			822
Amortization of value of business acquired	1,028			1,028			3,083			4,111
Amortization of intangible assets	3,149			2,838			9,163			8,564
Total expenses	1,293,140			1,330,651			3,495,722			3,680,164

Income (loss) before income taxes and interest in income (loss) of equity method investments	44,223			(80,334		)	432,672			(115,618		)
Income tax (expense) benefit	(1,186		)	12,056			(49,827		)	6,030
Interest in income (loss) of equity method investments	11,911			2,896			30,871			(13,579		)
Net income (loss)	54,948			(65,382		)	413,716			(123,167		)
Preferred share dividends	7,563			7,563			22,688			22,688
Net income (loss) available (attributable) to common shareholders	$	47,385		$	(72,945	)	$	391,028		$	(145,855	)

Per share data
Earnings (loss) per common share:
Earnings (loss) per common share	$	0.56		$	(0.87	)	$	4.62		$	(1.73	)
Earnings (loss) per diluted common share	$	0.56		$	(0.87	)	$	4.59		$	(1.73	)
Weighted average common shares outstanding	84,771			84,308			84,684			84,235
Weighted average diluted common shares outstanding	85,336			84,308			85,191			84,235
Cash dividends declared per common share	$	0.42		$	0.41		$	1.26		$	1.23

AXIS CAPITAL HOLDINGS LIMITED CONSOLIDATED SEGMENTAL DATA (UNAUDITED) FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

	2021									2020
	Insurance			Reinsurance			Total			Insurance			Reinsurance			Total

	(in thousands)
Gross premiums written	$	1,176,500		$	469,989		$	1,646,489		$	935,817		$	395,361		$	1,331,178
Net premiums written	707,492			288,979			996,471			544,857			271,125			815,982
Net premiums earned	681,008			530,419			1,211,427			570,184			521,128			1,091,312
Other insurance related income	468			7,197			7,665			688			752			1,440
Net losses and loss expenses	(442,681		)	(468,688		)	(911,369		)	(443,389		)	(436,288		)	(879,677		)
Acquisition costs	(123,529		)	(108,183		)	(231,712		)	(114,569		)	(115,995		)	(230,564		)
Underwriting-related general and
administrative expenses⁽⁸⁾	(104,905		)	(29,921		)	(134,826		)	(94,379		)	(23,456		)	(117,835		)
Underwriting income (loss)⁽⁹⁾	$	10,361		$	(69,176	)	(58,815		)	$	(81,465	)	$	(53,859	)	(135,324		)

Net investment income							107,339									101,956
Net investment gains							10,932									55,609
Corporate expenses⁽⁸⁾							(23,134		)							(20,988		)
Foreign exchange (losses) gains							28,032									(60,734		)
Interest expense and financing costs							(15,954		)							(15,574		)
Reorganization expenses							—									(1,413		)
Amortization of value of business acquired							(1,028		)							(1,028		)
Amortization of intangible assets							(3,149		)							(2,838		)
Income (loss) before income taxes and interest in income of equity method investments							44,223									(80,334		)
Income tax (expense) benefit							(1,186		)							12,056
Interest in income of equity method investments							11,911									2,896
Net income (loss)							54,948									(65,382		)
Preferred share dividends							7,563									7,563
Net income (loss) available (attributable) to common shareholders							$	47,385								$	(72,945	)

Net losses and loss expenses ratio	65.0		%	88.4		%	75.2		%	77.8		%	83.7		%	80.6		%
Acquisition cost ratio	18.1		%	20.4		%	19.1		%	20.1		%	22.3		%	21.1		%
General and administrative
expense ratio	15.4		%	5.6		%	13.1		%	16.5		%	4.5		%	12.8		%
Combined ratio	98.5		%	114.4		%	107.4		%	114.4		%	110.5		%	114.5		%

⁸ Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, also included corporate expenses of $23 million and $21 million for the three months ended September 30, 2021 and 2020, respectively. Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.

⁹ Consolidated underwriting income (loss) is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to net income (loss), the most comparable GAAP financial measure, is presented in the table above.

AXIS CAPITAL HOLDINGS LIMITED CONSOLIDATED SEGMENTAL DATA (UNAUDITED) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

	2021									2020
	Insurance			Reinsurance			Total			Insurance			Reinsurance			Total

	(in thousands)
Gross premiums written	$	3,548,169		$	2,574,987		$	6,123,156		$	2,914,100		$	2,564,419		$	5,478,519
Net premiums written	2,128,190			1,851,025			3,979,215			1,729,268			1,821,692			3,550,960
Net premiums earned	1,928,970			1,543,120			3,472,090			1,709,268			1,574,673			3,283,941
Other insurance related income (loss)	1,435			14,827			16,262			2,091			(7,361		)	(5,270		)
Net losses and loss expenses	(1,131,753		)	(1,160,806		)	(2,292,559		)	(1,252,569		)	(1,211,443		)	(2,464,012		)
Acquisition costs	(348,172		)	(321,482		)	(669,654		)	(343,579		)	(354,137		)	(697,716		)
Underwriting-related general and
administrative expenses⁽¹⁰⁾	(307,777		)	(88,678		)	(396,455		)	(284,909		)	(76,714		)	(361,623		)
Underwriting income (loss)⁽¹¹⁾	$	142,703		$	(13,019	)	129,684			$	(169,698	)	$	(74,982	)	(244,680		)

Net investment income							326,174									240,098
Net investment gains							113,868									45,777
Corporate expenses⁽¹⁰⁾							(82,365		)							(74,915		)
Foreign exchange (losses) gains							4,316									(8,760		)
Interest expense and financing costs							(46,759		)							(59,641		)
Reorganization expenses							—									(822		)
Amortization of value of business acquired							(3,083		)							(4,111		)
Amortization of intangible assets							(9,163		)							(8,564		)
Income (loss) before income taxes and interest in income (loss) of equity method investments							432,672									(115,618		)
Income tax (expense) benefit							(49,827		)							6,030
Interest in income (loss) of equity method investments							30,871									(13,579		)
Net income (loss)							413,716									(123,167		)
Preferred share dividends							22,688									22,688
Net income (loss) available (attributable) to common shareholders							$	391,028								$	(145,855	)

Net losses and loss expenses ratio	58.7		%	75.2		%	66.0		%	73.3		%	76.9		%	75.0		%
Acquisition cost ratio	18.0		%	20.8		%	19.3		%	20.1		%	22.5		%	21.2		%
General and administrative
expense ratio	16.0		%	5.8		%	13.8		%	16.7		%	4.9		%	13.4		%
Combined ratio	92.7		%	101.8		%	99.1		%	110.1		%	104.3		%	109.6		%

¹⁰ Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, also included corporate expenses of $82 million and $75 million for the nine months ended September 30, 2021 and 2020, respectively. Underwriting-related general and administrative expenses and corporate expenses are included in the general and administrative expense ratio.

¹¹ Consolidated underwriting income (loss) is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to net income (loss), the most comparable GAAP financial measure, is presented in the table above.

AXIS CAPITAL HOLDINGS LIMITED NON-GAAP FINANCIAL MEASURES RECONCILIATION (UNAUDITED) OPERATING INCOME AND OPERATING RETURN ON AVERAGE COMMON EQUITY FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

	Three months ended						Nine months ended
	2021			2020			2021			2020
	(in thousands, except per share amounts)

Net income (loss) available (attributable) to common shareholders	$	47,385		$	(72,945	)	$	391,028		$	(145,855	)
Net investment gains⁽¹²⁾	(10,932		)	(55,609		)	(113,868		)	(45,777		)
Foreign exchange losses (gains)⁽¹³⁾	(28,032		)	60,734			(4,316		)	8,760
Reorganization expenses⁽¹⁴⁾	—			1,413			—			822
Interest in (income) loss of equity method investments⁽¹⁵⁾	(11,911		)	(2,896		)	(30,871		)	13,579
Income tax expense	4,534			4,235			12,316			10,494
Operating income (loss)	$	1,044		$	(65,068	)	$	254,289		$	(157,977	)

Earnings (loss) per diluted common share	$	0.56		$	(0.87	)	$	4.59		$	(1.73	)
Net investment gains	(0.13		)	(0.66		)	(1.34		)	(0.54		)
Foreign exchange losses (gains)	(0.33		)	0.72			(0.05		)	0.10
Reorganization expenses	—			0.02			—			0.01
Interest in (income) loss of equity method investments	(0.14		)	(0.03		)	(0.36		)	0.16
Income tax expense	0.05			0.05			0.14			0.12
Operating income (loss) per diluted common share	$	0.01		$	(0.77	)	$	2.98		$	(1.88	)

Weighted average diluted common shares outstanding	85,336			84,308			85,191			84,235

Average common shareholders' equity	4,812,408			4,731,858			4,765,375			4,742,452

Annualized return on average common equity	3.9		%	(6.2		%)	10.9		%	(4.1		%)

Annualized operating return on average common equity⁽¹⁶⁾	0.1		%	(5.5		%)	7.1		%	(4.4		%)

¹² Tax expense (benefit) of $606 and $6,667 for the three months ended September 30, 2021 and 2020, respectively, and $9,581 and $9,104 for the nine months ended September 30, 2021 and 2020, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors including the ability to utilize capital losses.

¹³ Tax expense (benefit) of $3,928 and $(2,245) for the three months ended September 30, 2021 and 2020, respectively, and $2,735 and $1,366 for the nine months ended September 30, 2021 and 2020, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors including the tax status of specific foreign exchange transactions.

¹⁴ Tax expense (benefit) of $(187) for the three months ended September 30, 2020, and $24 for the nine months ended September 30, 2020, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.

¹⁵ Tax expense (benefit) of $nil for the three and nine months ended September 30, 2021 and 2020, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.

¹⁶ Annualized operating return on average common equity ("operating ROACE") is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to annualized ROACE, the most comparable GAAP financial measure is presented in the table above, and a discussion of the rationale for its presentation is provided later in this press release.

Risk and Uncertainties Related to the COVID-19 pandemic

The determination of the net loss estimate for the COVID-19 pandemic was based on our ground-up assessment of coverage from individual contracts and treaties across all lines of business, and included a review of modeling analyses and market information, where appropriate. In addition, we considered preliminary information received from clients, brokers, and loss adjusters together with global shelter-in-place orders and the outcomes of recent court judgments, including the United Kingdom's Supreme Court ruling.

The net loss estimate related to the COVID-19 pandemic is subject to significant uncertainty. This uncertainty is driven by the inherent difficulty in making assumptions around the impact of the COVID-19 pandemic due to the lack of comparable events, the ongoing nature of the event, and its far-reaching impacts on world-wide economies and the health of the population. These assumptions include:

the nature and the duration of the pandemic;
the effects on health, the economy, and our customers;
the response of government bodies including legislative, regulatory or judicial actions, and social influences that could alter the interpretation of our contracts;
the coverage provided under our contracts;
the coverage provided by our ceded reinsurance; and
the evaluation of the net loss estimate and impact of claim mitigation actions.

The actual net loss for this event may ultimately differ materially from the current net loss estimate.

Cautionary Note Regarding Forward-Looking Statements

This press release 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 press release, 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 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 press release may include, but are not limited to, information regarding our estimates for catastrophes and other weather-related losses, including losses related to the COVID-19 pandemic, measurements of potential losses in the fair market 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 conditions, our growth prospects, and valuations of the potential impact of movements in interest rates, credit spreads, equity securities' prices, and foreign currency rates.

Forward-looking statements only reflect our expectations and are not guarantees of performance. These statements involve risks, uncertainties, and assumptions. Accordingly, there are or will be important factors that could cause actual events or results to differ materially from those indicated in such statements. We believe that these factors include, but are not limited to, the following:

the adverse impact of the ongoing COVID-19 pandemic on our business, results of operations, financial condition, and liquidity;
the cyclical nature of the insurance and reinsurance business leading to periods with excess underwriting capacity and unfavorable premium rates;
the occurrence and magnitude of natural and man-made disasters;
the impact of global climate change on our business, including the possibility that we do not adequately assess or reserve for the increased frequency and severity of natural catastrophes;
losses from war, terrorism and political unrest, or other unanticipated losses;
actual claims exceeding loss reserves;
general economic, capital and credit market conditions, including fluctuations in interest rates, credit spreads, equity securities' prices, and/or foreign currency rates;
the failure of any of the loss limitation methods we employ;
the effects of emerging claims, coverage and regulatory issues, including uncertainty related to coverage definitions, limits, terms and conditions;
the inability to purchase reinsurance or collect amounts due to us from reinsurance we have purchased;
the loss of business provided to us by major brokers;
breaches by third parties in our program business of their obligations to us;
difficulties with technology and/or data security;
the failure of our policyholders or intermediaries to pay premiums;
the failure of our cedants to adequately evaluate risks;
the inability to obtain additional capital on favorable terms, or at all;
the loss of one or more of our key executives;
a decline in our ratings with rating agencies;
changes in accounting policies or practices;
the use of industry models and changes to these models;
changes in governmental regulations and potential government intervention in our industry;
inadvertent failure to comply with certain laws and regulations relating to sanctions and foreign corrupt practices;
changes in the political environment of certain countries in which we operate or underwrite business, including the United Kingdom's withdrawal from the European Union;
changes in tax laws; and
other factors including but not limited to those described under Item 1A, ‘Risk Factors' in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC"), as those factors may be updated from time to time in our periodic and other filings with the SEC which are accessible on the SEC's website at www.sec.gov. Readers are urged to carefully consider all such factors as the COVID-19 pandemic may have the effect of heightening many of the other risks and uncertainties described.

We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

Rationale for the Use of Non-GAAP Financial Measures

We present our results of operations in a way we believe will be meaningful and useful to investors, analysts, rating agencies and others who use our financial information to evaluate our performance. Some of the measurements we use are considered non-GAAP financial measures under SEC rules and regulations. In this press release, we present underwriting-related general and administrative expenses, consolidated underwriting income (loss), operating income (loss) (in total and on a per share basis), annualized operating return on average common equity ("operating ROACE"), amounts presented on a constant currency basis and pre-tax total return on cash and investments excluding foreign exchange movements which are non-GAAP financial measures as defined in SEC Regulation G. We believe that these non-GAAP financial measures, which may be defined and calculated differently by other companies, help explain and enhance the understanding of our results of operations. However, these measures should not be viewed as a substitute for those determined in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").

Underwriting-Related General and Administrative Expenses

Underwriting-related general and administrative expenses include those general and administrative expenses that are incremental and/or directly attributable to our underwriting operations. While this measure is presented in the 'Segment Information' note to our Consolidated Financial Statements, it is considered a non-GAAP financial measure when presented elsewhere on a consolidated basis.

Corporate expenses include holding company costs necessary to support our worldwide insurance and reinsurance operations and costs associated with operating as a publicly-traded company. As these costs are not incremental and/or directly attributable to our underwriting operations, these costs are excluded from underwriting-related general and administrative expenses, and therefore, consolidated underwriting income (loss). General and administrative expenses, the most comparable GAAP financial measure to underwriting-related general and administrative expenses, also includes corporate expenses.

The reconciliation of underwriting-related general and administrative expenses to general and administrative expenses, the most comparable GAAP financial measure, is presented in the 'Consolidated Segmental Data' section of this press release.

Consolidated Underwriting Income (Loss)

Consolidated underwriting income (loss) is a pre-tax measure of underwriting profitability that takes into account net premiums earned and other insurance related income (loss) as revenues and net losses and loss expenses, acquisition costs and underwriting-related general and administrative expenses as expenses. While this measure is presented in the 'Segment Information' note to our Consolidated Financial Statements, it is considered a non-GAAP financial measure when presented elsewhere on a consolidated basis.

We evaluate our underwriting results separately from the performance of our investment portfolio. As a result, we believe it is appropriate to exclude net investment income and net investment gains (losses) from our underwriting profitability measure.

Foreign exchange losses (gains) in our consolidated statements of operations primarily relate to the impact of foreign exchange rate movements on our net insurance-related liabilities. However, we manage our investment portfolio in such a way that unrealized and realized foreign exchange losses (gains) on our investment portfolio generally offset a large portion of the foreign exchange losses (gains) arising from our underwriting portfolio. As a result, we believe that foreign exchange losses (gains) are not a meaningful contributor to our underwriting performance, therefore, foreign exchange losses (gains) are excluded from consolidated underwriting income (loss).

Interest expense and financing costs primarily relate to interest payable on our debt. As these expenses are not incremental and/or directly attributable to our underwriting operations, these expenses are excluded from underwriting-related general and administrative expenses, and therefore, consolidated underwriting income (loss).

Reorganization expenses are related to the transformation program which was launched in 2017. This program encompasses the integration of Novae Group plc ("Novae"), which commenced in the fourth quarter of 2017, the realignment of our accident and health business, together with other initiatives designed to increase efficiency and enhance profitability, while delivering a customer-centric operating model. Reorganization expenses are primarily driven by business decisions, the nature and timing of which are not related to the underwriting process, therefore, these expenses are excluded from consolidated underwriting income (loss).

Amortization of intangible assets including value of business acquired ("VOBA") arose from business decisions, the nature and timing of which are not related to the underwriting process, therefore, these expenses are excluded from consolidated underwriting income (loss).

We believe that the presentation of underwriting-related general and administrative expenses and consolidated underwriting income (loss) provides investors with an enhanced understanding of our results of operations by highlighting the underlying pre-tax profitability of our underwriting activities. The reconciliation of consolidated underwriting income (loss) to net income (loss), the most comparable GAAP financial measure, is presented in the 'Consolidated Segmental Data' section of this press release.

Operating Income (Loss)

Operating income (loss) represents after-tax operational results exclusive of net investment gains (losses), foreign exchange losses (gains), reorganization expenses, and interest in income (loss) of equity method investments.

Although the investment of premiums to generate income and investment gains (losses) is an integral part of our operations, the determination to realize investment gains (losses) is independent of the underwriting process and is heavily influenced by the availability of market opportunities. Furthermore, many users believe that the timing of the realization of investment gains (losses) is somewhat opportunistic for many companies.

Foreign exchange losses (gains) in our consolidated statements of operations primarily relate to the impact of foreign exchange rate movements on net insurance-related liabilities. In addition, we recognize unrealized foreign exchange losses (gains) on our equity securities and foreign exchange losses (gains) realized on the sale of our available for sale investments and equity securities in net investment gains (losses). We also recognize unrealized foreign exchange losses (gains) on our available for sale investments in other comprehensive income (loss). These unrealized foreign exchange losses (gains) generally offset a large portion of the foreign exchange losses (gains) reported in net income (loss), thereby minimizing the impact of foreign exchange rate movements on total shareholders' equity. As a result, foreign exchange losses (gains) in our consolidated statements of operations in isolation are not a meaningful contributor to the performance of our business

Reorganization expenses are related to the transformation program which was launched in 2017. This program encompasses the integration of Novae, which commenced in the fourth quarter of 2017, the realignment of our accident and health business, together with other initiatives designed to increase efficiency and enhance profitability, while delivering a customer-centric operating model. Reorganization expenses are primarily driven by business decisions, the nature and timing of which are not related to the underwriting process, therefore, these expenses are excluded from operating income (loss).

Interest in income (loss) of equity method investments is primarily driven by business decisions, the nature and timing of which are not related to the underwriting process, therefore, this income (loss) is excluded from operating income (loss).

Certain users of our financial statements evaluate performance exclusive of after-tax net investment gains (losses), foreign exchange losses (gains), reorganization expenses, and interest in income (loss) of equity method investments to understand the profitability of recurring sources of income.

We believe that showing net income (loss) available (attributable) to common shareholders exclusive of after-tax net investment gains (losses), foreign exchange losses (gains), reorganization expenses, and interest in income (loss) of equity method investments reflects the underlying fundamentals of our business. In addition, we believe that this presentation enables investors and other users of our financial information to analyze performance in a manner similar to how our management analyzes the underlying business performance. We also believe this measure follows industry practice and, therefore, facilitates comparison of our performance with our peer group. We believe that equity analysts and certain rating agencies that follow us, and the insurance industry as a whole, generally exclude these items from their analyses for the same reasons. The reconciliation of operating income (loss) to net income (loss) available (attributable) to common shareholders, the most comparable GAAP financial measure, is presented in the 'Non-GAAP Financial Measures Reconciliation' section of this press release.

We also present operating income (loss) per diluted common share and annualized operating ROACE, which are derived from the operating income (loss) measure and are reconciled to the most comparable GAAP financial measures, earnings (loss) per diluted common share and annualized return on average common equity ("ROACE"), respectively, in the 'Non-GAAP Financial Measures Reconciliation' section of this press release.

Constant Currency Basis

We present gross premiums written and net premiums written on a constant currency basis in this press release. The amounts presented on a constant currency basis are calculated by applying the average foreign exchange rate from the current year to the prior year amounts. We believe this presentation enables investors and other users of our financial information to analyze growth in gross premiums written and net premiums written on a constant basis. The reconciliation to gross premiums written and net premiums written on a GAAP basis is presented in the 'Insurance Segment' and 'Reinsurance Segment' sections of this press release.

Pre-Tax Total Return on Cash and Investments excluding Foreign Exchange Movement

Pre-tax total return on cash and investments excluding foreign exchange movements measures net investment income (loss), net investments gains (losses), interest in income (loss) of equity method investments, and change in unrealized gains (losses) generated by average cash and investment balances. We believe this presentation enables investors and other users of our financial information to analyze the performance of our investment portfolio. The reconciliation of pre-tax total return on cash and investments excluding foreign exchange movements to pre-tax total return on cash and investments, the most comparable GAAP financial measure, is presented in the 'Investments' section of this press release.

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AXIS Capital Reports Third Quarter Net Income Available to Common Shareholders of $47 Million, or $0.56 Per Diluted Common Share