Company: AXS-PE
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001214816-25-000115
Chunk: 66

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 1
Chunk 66
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 to interest due on senior unsecured notes, junior subordinated notes and the Federal Home Loan advances ("FHLB advances") received in 2024 and 2023.

Interest expense and financing costs were $17 million for the three months ended March 31, 2025 and 2024, respectively. 

Income Tax Expense (Benefit)

Income tax expense (benefit) primarily results from income (loss) in our foreign operations in the U.S. and Europe. Our effective tax rate which is calculated as income tax expense (benefit) divided by income (loss) before tax including interest in income (loss) of equity method investments was 18.6% for the three months ended March 31, 2025, and (46.0%) for the three months ended March 31, 2024. This effective rate can vary between periods depending on the distribution of net income (loss) among tax jurisdictions, as well as other factors. 

The income tax expense of $44 million for the three months ended March 31, 2025 was principally due to pre-tax income in our Bermuda, U.K., U.S., and European operations.

The income tax benefit of $125 million for the three months ended March 31, 2024 was principally due to the recognition of an income tax benefit of $163 million related to a future Bermuda corporate income tax rate of 15%, pursuant to the Corporate Income Tax Act 2023, partially offset by income tax expense associated with the generation of pre-tax income in our U.S. and U.K. operations.

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FINANCIAL MEASURES

We believe the following financial indicators are important in evaluating performance and measuring the overall growth in value generated for common shareholders:

  Three months ended March 31,  20252024Annualized return on average common equity(1)13.7 %32.1 %Annualized operating return on average common equity(2)19.2 %18.2 %Book value per diluted common share(3)$66.48$57.13Cash dividends declared per common share$0.44$0.44Increase (decrease) in book value per diluted common share adjusted for dividends$1.65$3.51

(1)Annualized return on average common equity ("ROACE") is calculated by dividing annualized net income (loss) available (attributable) to common shareholders for the period by the average common shareholders' equity determined using the