Company: AXS-PE
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001214816-25-000181
Chunk: 44

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 1
Chunk 44
---
,439 Derivative liabilities$4,118 $(2,573)$1,545 $13,728 $(10,628)$3,100 (1)Net asset and liability derivatives are classified within other assets and other liabilities in the consolidated balance sheets.Refer to Note 3 'Investments' for information on reverse repurchase agreements.a) Relating to Investment PortfolioForeign Currency RiskThe Company's investment portfolio is exposed to foreign currency risk. Therefore, the fair values of its investments are partially influenced by changes in foreign currency exchange rates. The Company may enter into foreign exchange forward contracts to manage the effect of this foreign currency risk. These foreign currency hedging activities are not designated as specific hedges for financial reporting purposes.

35

Table of  ContentsAXIS CAPITAL HOLDINGS LIMITEDNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)5.    DERIVATIVE INSTRUMENTS (CONTINUED)

b) Relating to Underwriting PortfolioForeign Currency RiskThe Company's insurance and reinsurance subsidiaries and branches operate in various countries. Some of its business is written in currencies other than the U.S. dollar, therefore the underwriting portfolio is exposed to significant foreign currency risk. The Company manages foreign currency risk by seeking to match its foreign-denominated net liabilities under insurance and reinsurance contracts with cash and investments that are denominated in the same currencies. The Company uses derivative instruments, specifically, forward contracts to economically hedge foreign currency exposures.The following table provides the total unrealized and realized gains (losses) recognized in net income (loss) for derivatives not designated as hedges:  Consolidated statement of operations line item that includes gain (loss) recognized in net income (loss)Three months ended September 30,Nine months ended September 30,  2025202420252024Relating to investment portfolio:Foreign exchange forward contractsNet investment gains (losses)$169 $(870)$(1,282)$153 Relating to underwriting portfolio:Foreign exchange forward contractsForeign exchange (losses) gains14,099 6,906 414 7,987 Total$14,268 $6,036 $(868)$8,140 

36

Table of  ContentsAXIS CAPITAL HOLDINGS LIMITEDNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)6.    RESERVE FOR LOSSES AND LOSS EXPENSES

Reserve Roll-ForwardThe following table presents a reconciliation of the Company