Company: AXS-PE
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001214816-25-000181
Chunk: 43

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 1
Chunk 43
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 their fair values are classified as Level 2.

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

The following table provides the balance sheet classifications of derivatives recorded at fair value:  September 30, 2025December 31, 2024  DerivativenotionalamountDerivativeassetfairvalue(1)Derivativeliabilityfairvalue(1)DerivativenotionalamountDerivativeassetfairvalue(1)Derivativeliabilityfairvalue(1)Relating to investment portfolio:Foreign exchange forward contracts$33,293 $23 $47 $17,655 $323 $— Relating to underwriting portfolio:Foreign exchange forward contracts1,691,229 3,074 1,498 1,323,714 9,116 3,100 Total derivatives$3,097 $1,545 $9,439 $3,100 (1)Derivative assets and derivative liabilities are classified within other assets and other liabilities in the consolidated balance sheets.The notional amounts of derivative contracts represent the basis on which amounts paid or received are calculated and are presented in the above table to quantify the volume of the Company's derivative activities. Notional amounts are not reflective of credit risk. None of the Company's derivative instruments are designated as hedges.Offsetting Assets and LiabilitiesThe Company's derivative instruments are generally traded under International Swaps and Derivatives Association master netting agreements which establish terms that apply to all transactions. In the event of a bankruptcy or other stipulated event, master netting agreements provide that individual positions be replaced with a new amount, usually referred to as the termination amount, determined by taking into account market prices and converting into a single currency. Effectively, this contractual close-out netting reduces credit exposure from gross to net exposure. The following table provides a reconciliation of gross derivative assets and liabilities to the net amounts presented in the consolidated balance sheets, with the difference being attributable to the impact of master netting agreements:September 30, 2025December 31, 2024Gross amountsGross amounts offsetNetamounts(1)Gross amountsGross amounts offsetNetamounts(1)Derivative assets$5,670 $(2,573)$3,097 $20,067 $(10,628)$9