Company: AXS-PE
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001214816-25-000115
Chunk: 64

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 1
Chunk 64
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4, the net investment losses were primarily due to net realized losses on the sale of corporate debt and U.S. government securities and net unrealized losses on equity securities, partially offset by net realized gains on the sale of equity securities.

(Increase) decrease in allowance for expected credit losses, fixed maturities, available for sale

For the three months ended March 31, 2025, the allowance for expected credit losses increased by $0.2 million, primarily related to corporate debt holdings. For the three months ended March 31, 2024, the allowance for expected credit losses decreased by $7 million, primarily related to the sale of securities. Refer to Note 3(i) to the Consolidated Financial Statements 'Investments'.

(Increase) decrease in allowance for expected credit losses, mortgage loans

For the three months ended March 31, 2025, the allowance for expected credit losses increased by $2 million, primarily related to commercial properties exposed to the office sector. For the three months ended March 31, 2024, the allowance for expected credit losses increased by $2 million, primarily related to one collateral dependent mortgage loan. Refer to Note 3(d) to the Consolidated Financial Statements 'Investments'.

63

Change in Fair Value of Investment Derivatives

We economically hedge foreign exchange exposure with derivative contracts. 

For the three months ended March 31, 2025, foreign exchange hedges resulted in $0.4 million of net losses, primarily attributable to securities denominated in euro and pound sterling. For the three months ended March 31, 2024, foreign exchange hedges resulted in net gains of $1 million, primarily attributable to securities denominated in euro and pound sterling.

Total Return

Total return on cash and investments was as follows:

  Three months ended March 31,  20252024Net investment income$207,713$167,383Net investment gains (losses)(30,005)(9,207)Change in net unrealized gains (losses) on fixed maturities (1) 135,560(51,963)Interest in income of equity method investments2,2911,169Total$315,559$107,382Average cash and investments(2) $18,019,104$16,822,621Pre-tax, total return on average cash and investments:Including investment related foreign exchange movements1.8 %0.6 %Excluding investment related foreign exchange movements(3)