Company: AXS-PE
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001214816-25-000056
Chunk: 253

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-02-26
Form: 10-K
Item: Item 1A
Chunk 253
---
 in Dodd-Frank or additional federal or state regulation that is adopted in the future could impose significant burdens on us, impact the ways in which we conduct our business and govern our subsidiaries, increase compliance costs, increase the levels of capital required to operate our subsidiaries, duplicate state regulation and/or result in a competitive disadvantage.

Our European insurance and reinsurance entities are subject to local laws that implement the Solvency II Directive. Solvency II covers three main areas: 

i.the valuation of assets and liabilities on a Solvency II economic basis and risk-based solvency and capital requirements;

ii.governance requirements including requirements relating to the key functions of compliance, internal audit, actuarial and risk management; and 

iii.new supervisory legal entity and group reporting and disclosure requirements including public disclosures. 

Since Brexit, the U.K. Government and Regulators have been reviewing the Solvency II regime, with a view to making it more bespoke to the U.K. market. The Solvency U.K. regime came into force on December 31, 2024, and marks a fundamental change to the previous regime. The European Commission has published its updates to the Solvency II regime, with Member States having 2 years to transpose this Directive.

While we cannot predict the exact nature, timing or scope of possible governmental initiatives, such proposals could materially adversely affect our business by, among other things: 

•Providing reinsurance capacity in markets and to consumers that we target;

•Requiring our further participation in industry pools and guaranty associations;

•Expanding the scope of coverage under existing policies; e.g., following large disasters;

•Further regulating the terms of insurance and reinsurance contracts; or

•Disproportionately benefiting the companies of one country over those of another.

Our business is subject to certain laws and regulations relating to sanctions and foreign corrupt practices, the violation of which could have a material adverse effect on our financial condition and operating results.

We must comply with all applicable economic and financial sanctions, other trade controls and anti-bribery laws and regulations of the U.S. and other foreign jurisdictions where we operate, including Bermuda, the U.K. and the European Union. U.S. laws and regulations applicable to us include the economic trade sanctions laws and regulations administered by the U.S. Department of Treasury’s Office of Foreign Assets Control as well as certain laws administered by the U.S. Department of State. These laws and regulations are complex, frequently changing, and increasing in number, and they may