Company: AXS-PE
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001214816-25-000056
Chunk: 278

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-02-26
Form: 10-K
Item: Item 7
Chunk 278
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 approved a new share repurchase program for up to $400 million of the Company's common shares. The new share repurchase program is open-ended, allowing the Company to repurchase its shares from time to time in the open market or privately negotiated transactions, depending on market conditions. 

Loss Portfolio Transfer Reinsurance Agreement with Enstar

On December 13, 2024, we entered into a loss portfolio transfer reinsurance agreement with Cavello Bay Reinsurance Limited, a wholly-owned subsidiary of Enstar Group Limited ("Enstar") to retrocede a portfolio of reinsurance business predominantly related to 2021 and prior underwriting years (refer to Item 8, Note 18 to the Consolidated Financial Statements 'Related Party Transactions' for further details). The transaction is subject to regulatory approvals and other customary conditions and is expected to close during the first half of 2025. 

The transaction is structured as a 75% ground-up quota share retrocession of net reserves for losses and loss expenses of approximately $3.1 billion at September 30, 2024 and provides cover up to a policy limit of approximately $940 million. The transaction is deemed to have met the established criteria for retroactive reinsurance accounting (refer to Item 8, Note 9 to the Consolidated Financial Statements 'Reinsurance' for further details).

Under the terms of the loss portfolio transfer reinsurance agreement, we will retain responsibility for the management of claims. 

Although retroactive reinsurance accounting may result in volatility to our results in the short-term, the loss portfolio transfer reinsurance agreement will protect us from prior year reserve development on the subject business over the contract term, provided this remains within the limit of the agreements.

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AXIS Syndicate 2050

On April 1, 2024, AXIS Energy Transition Syndicate 2050 ("Syndicate 2050") which is dedicated to providing capacity for new energy projects with a critical role in supporting the transition to net zero, commenced underwriting. AXIS Corporate Capital UK II Limited is the sole corporate member of Syndicate 2050. AXIS Managing Agency operates as managing agent for Syndicate 2050.

How We Work Program

Reorganization expenses of $26 million incurred in 2024 primarily related to severance costs attributable to our "How We Work" program which is focused on simplifying our operating structure. 

Bermuda Corporate Income Tax Act of 2023

On December 27, 2023, the Bermuda government enacted the Corporate Income