AXIS Capital : Reports Fourth Quarter 2022 Results

Miranda Hunter (Investor Contact):	[phone];	[e-mail]
Nichola Liboro (Media Contact):	[phone];	[e-mail]

AXIS CAPITAL REPORTS FOURTH QUARTER NET INCOME AVAILABLE TO COMMON SHAREHOLDERS OF $41 MILLION, or $0.48 PER DILUTED COMMON SHARE AND OPERATING INCOME OF $167 MILLION, or $1.95 PER DILUTED COMMON SHARE

For the fourth quarter of 2022, the Company reports:

• Annualized return on average common equity ("ROACE") of 4.2% and annualized operating ROACE of 16.9%
• Book value per diluted common share of $46.95, an increase of $3.45, or 7.9%, compared to September 30, 2022

For the year ended 2022, the Company reports:

• Net income available to common shareholders of $193 million, or $2.25 per diluted common share, and operating income of $498 million, or $5.81 per diluted common share
• Improvement of 1.7 points in the combined ratio to 95.8%
• Pre-taxcatastrophe and weather-related losses, net of reinsurance and reinstatement premiums, of $403 million, or 7.8 points, compared to $443 million, or 9.5 points, in 2021
• Return on average common equity ("ROACE") of 4.3% and operating ROACE of 11.1%

Pembroke, Bermuda, January 25, 2023 - AXIS Capital Holdings Limited ("AXIS Capital" or "AXIS" or "the Company") (NYSE: AXS) today announced financial results for the fourth quarter ended December 31, 2022.

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

"This was a strong quarter to cap a milestone year for AXIS, one in which we emerged as a leading specialty underwriter that is well-positioned to drive consistent, profitable growth in our chosen markets. This was evidenced in our fourth quarter and full year results which speak to the work that we've done in prior years to transform our business, enabling us to grow in profitable specialty markets, reduce our exposure to catastrophes, and create a more agile and responsive operating infrastructure.

"During a year where the industry was again negatively impacted by heavy catastrophe activity, the Russia- Ukraine War, and financial and social inflation, we improved our combined ratio by 1.7 points to 95.8%, continuing a multi-year improvement in our core performance. Moreover, during the year, we continued to advance the positive momentum in our results, generating record premium production, a lower expense ratio, and increased underwriting income.

"Our specialty insurance business continued to deliver stellar performance, producing improvement across virtually all metrics in the quarter and the year, and we advanced our leadership position in specialty markets that are expected to remain attractive in 2023 and beyond. In addition, during the year and quarter, we took critical steps forward to focus AXIS Re as a specialist reinsurer and had a good 1.1 renewal period which speaks to the strength of our customer relationships and the value that we bring to the market. Stepping back, as we look to the future, we believe AXIS is exceedingly well-positioned to compete in a market where there is consistent and rising demand for specialty coverage.

"Finally, I would like to extend a heartfelt thank you to our colleagues, customers, shareholders, analysts, and our board of directors. In a few short months, after having served as President and CEO of AXIS for eleven years, I will transition the role to Vince Tizzio. I couldn't be more proud of what our team has accomplished nor more excited for the path that we're on. Moreover, in Vince, we have an excellent leader with a strong vision for the future and the dynamism and tenacity to make it happen. We look to the year ahead with confidence as we begin an exciting new chapter for AXIS."

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08

Tel. [phone] Fax [phone]

www.axiscapital.com

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Consolidated Results*

• Net income available to common shareholders for the fourth quarter of 2022 was $41 million, or $0.48 per diluted common share, compared to net income available to common shareholders of $197 million, or $2.31 per diluted common share, for the fourth quarter of 2021.
• Net income available to common shareholders for the year ended December 31, 2022 was $193 million, or $2.25 per diluted common share, compared to net income available to common shareholders of $588 million, or $6.90 per diluted common share, for the same period in 2021.
• Operating income1 for the fourth quarter of 2022 was $167 million, or $1.95 per diluted common share1, compared to operating income of $182 million, or $2.13 per diluted common share, for the fourth quarter of 2021.
• Operating income for the year ended December 31, 2022 was $498 million, or $5.81 per diluted common share, compared to operating income of $436 million, or $5.12 per diluted common share, for the same period in 2021.
• Corporate expenses attributable to executive-related compensation costs associated with the transition in our senior leadership were $15 million, for the fourth quarter of 2022.
• Net financial impact of $11 million related to loss portfolio transfer reinsurance agreements including adverse prior year reserve development of $5 million and acquisition costs of $6 million.
• Reorganization expenses mainly related to the exit from catastrophe and property reinsurance lines of business were $9 million, for the fourth quarter of 2022. Reorganization expenses are excluded from operating income.
• Our fixed income portfolio book yield was 3.5% at December 31, 2022. The market yield was 5.6% at December 31, 2022.
• Adjusted for net unrealized investment losses of $744 million, after-tax, reported in accumulated other comprehensive income (loss), book value per diluted common share of $55.49 at December 31, 2022.
• Adjusted for dividends declared, book value per diluted common share increased by $3.89, or 8.9%, compared to September 30, 2022.
• Adjusted for dividends declared, book value per diluted common share decreased by $7.10, or 12.7%, 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. [phone] Fax [phone]

www.axiscapital.com

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Fourth Quarter Consolidated Underwriting Highlights2

• Gross premiums written increased by $196 million, or 13% ($241 million, or 15%, on a constant currency basis3), to $1.8 billion with an increase of $156 million, or 12% in the insurance segment, and an increase of $40 million, or 16% in the reinsurance segment.
• Net premiums written increased by $149 million, or 16% ($187 million, or 20%, on a constant currency basis3), to $1.1 billion with an increase of $120 million, or 16% in the insurance segment, and an increase of $29 million, or 16% in the reinsurance segment.

	Quarters ended December 31,
KEY RATIOS	2022	2021		Change
Current accident year loss ratio, excluding catastrophe and weather-	55.5%	54.3%		1.2 pts
related losses4
Catastrophe and weather-related losses ratio	4.7%		4.3%		0.4 pts
Current accident year loss ratio	60.2%	58.6%		1.6 pts
Prior year reserve development ratio	(0.6%)		(0.7%)		0.1 pts
Net losses and loss expenses ratio	59.6%	57.9%		1.7 pts
Acquisition cost ratio	20.6%	20.4%		0.2 pts
General and administrative expense ratio	13.9%		14.8%		(0.9 pts)
Combined ratio	94.1%	93.1%		1.0 pts
Current accident year combined ratio, excluding catastrophe and
90.0%	89.5%		0.5 pts
weather-related losses

• Pre-taxcatastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $64 million ($54 million, after-tax), (Insurance: $33 million; Reinsurance: $30 million) or 4.7 points, including natural catastrophe and weather-related losses of $32 million, or 2.4 points, primarily attributable to Winter Storm Elliot, and other weather-related events. The remaining losses included $23 million, or 1.7 points attributable to the COVID-19 pandemic, and $9 million, or 0.6 points, attributable to the Russia-Ukraine war. Comparatively, pre-tax catastrophe and weather-related losses, net of reinsurance, were $54 million, (Insurance: $23 million; Reinsurance: $32 million) or 4.3 points in 2021.
• Net favorable prior year reserve development was $8 million (Insurance: $4 million; Reinsurance: $4 million),
  compared to $9 million (Insurance: $5 million; Reinsurance: $4 million) in 2021.

• All 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 is presented above and a discussion of the rationale for the presentation of these items is provided later in this press release.

4The current accident year loss ratio, excluding catastrophe and weather-related losses is 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. [phone] Fax [phone]

www.axiscapital.com

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Full Year Consolidated Underwriting Highlights

• Gross premiums written increased by $529 million, or 7% ($664 million or 9%, on a constant currency basis), to $8.2 billion with an increase of $722 million, or 15% in the insurance segment, partially offset by a decrease of $194 million, or 7% in the reinsurance segment.
• Net premiums written increased by $336 million, or 7% ($458 million or 9%, on a constant currency basis), to $5.3 billion with an increase of $483 million, or 17% in the insurance segment, partially offset by a decrease of $147 million, or 7% in the reinsurance segment.

	Years ended December 31,
KEY RATIOS	2022	2021			Change
Current accident year loss ratio, excluding catastrophe and weather-	55.5 %	55.1 %			0.4 pts
related losses
Catastrophe and weather-related losses ratio	7.8 %		9.5 %			(1.7 pts)
Current accident year loss ratio	63.3 %	64.6 %			(1.3 pts)
Prior year reserve development ratio	(0.5%)		(0.7%)			0.2 pts
Net losses and loss expenses ratio	62.8 %	63.9 %			(1.1 pts)
Acquisition cost ratio	19.8 %	19.6 %			0.2 pts
General and administrative expense ratio	13.2 %		14.0 %			(0.8 pts)
Combined ratio	95.8 %	97.5 %			(1.7 pts)
Current accident year combined ratio, excluding catastrophe and
88.5 %	88.7 %			(0.2 pts)
weather-related losses

• Pre-taxcatastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $403 million ($350 million, after-tax), (Insurance: $207 million; Reinsurance: $196 million) or 7.8 points, including natural catastrophe and weather-related losses of $338 million, or 6.5 points, primarily attributable to Hurricane Ian, Winter Storm Elliot, June European Convective Storms, and other weather-related events. The remaining losses included $23 million, or 0.4 points, attributable to the COVID-19 pandemic, and $43 million, or 0.8 points, attributable to the Russia-Ukraine war. Comparatively, pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $443 million, (Insurance: $175 million; Reinsurance: $268 million) or 9.5 points in 2021.
• Net favorable prior year reserve development was $26 million (Insurance: $16 million; Reinsurance: $9
  million), compared to $32 million (Insurance: $18 million; Reinsurance: $14 million) in 2021.

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08

Tel. [phone] Fax [phone]

www.axiscapital.com

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Segment Highlights

Insurance Segment

Quarters ended December 31,

($ in thousands)

2022

2021

Change

Gross premiums written

Net premiums written

Net premiums earned

Underwriting income

Underwriting ratios:

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

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

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

Underwriting-related general and administrative expense ratio Combined ratio

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

$ 1,470,805	$ 1,315,063	11.8%
886,786	766,694	15.7%
830,514	722,369	15.0%
123,370	81,673	51.1%
49.3%	50.8%		(1.5 pts)
4.1%		2.9%		1.2 pts
53.4%	53.7%		(0.3 pts)
(0.5%)		(0.6%)		0.1 pts
52.9%	53.1%		(0.2 pts)
18.6%	18.9%		(0.3 pts)
13.7%		16.7%		(3.0 pts)
85.2%		88.7%		(3.5 pts)
81.6%	86.4%		(4.8 pts)

• Gross premiums written increased by $156 million, or 12% ($194 million, or 15%, on a constant currency basis), primarily attributable to increases in property and liability lines due to new business and favorable rate changes, and marine and aviation, and accident and health lines due to new business.
• Net premiums written increased by $120 million, or 16% ($151 million, or 20%, on a constant currency basis), reflecting the increase in gross premiums written in the quarter and a decrease in premiums ceded in professional lines, partially offset by an increase in premiums ceded in property lines.
• Pre-taxcatastrophe and weather-related losses, net of reinsurance and reinstatement premiums, were $33 million, or 4.1 points, including natural catastrophe and weather-related losses of $24 million, or 3.1 points, primarily attributable to Winter Storm Elliot, and other weather-related events. The remaining losses of $9 million, or 1.0 point, were attributable to the Russia-Ukraine war. Comparatively, pre-tax catastrophe and weather-related losses, net of reinsurance, were $23 million in 2021.
• The current accident year loss ratio, excluding catastrophe and weather-related losses, decreased by 1.5 points in the fourth quarter, compared to the same period in 2021, principally due to improved loss experience in property, marine and aviation, and cyber lines.
• The acquisition cost ratio decreased by 0.3 points in the fourth quarter, compared to the same period in 2021. Excluding the impact of the loss portfolio transfer, the acquisition cost ratio decreased by 1.0 point, primarily related to a decrease in profit commission costs.

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08

Tel. [phone] Fax [phone]

www.axiscapital.com

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