Company: AXS-PE
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001214816-25-000115
Chunk: 65

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 1
Chunk 65
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1.5 %0.8 %

(1)Change in net unrealized gains (losses) on fixed maturities is calculated by taking net unrealized gains (losses) at period end less net unrealized gains (losses) at the prior period end.

(2)The average cash and investments balance is the average of the monthly fair value balances.

(3)Pre-tax, total return on average cash and investments excluding foreign exchange movements is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to pre-tax, total return on average cash and investments, the most comparable GAAP financial measure, included foreign exchange (losses) gains of $47 million and $(25) million for the three months ended March 31, 2025 and 2024, respectively.

64

OTHER EXPENSES (REVENUES), NET

The following table provides a summary of other expenses (revenues), net:

  Three months ended March 31,  2025% Change2024Corporate expenses$28,725 12%$25,580 Foreign exchange losses (gains)57,034 nm(23,552)Interest expense and financing costs16,572 (3%)17,147 Income tax expense (benefit)44,322 nm(124,654)Total$146,653 $(105,479)

nm – not meaningful

Corporate Expenses

Corporate expenses include holding company costs necessary to support our worldwide insurance and reinsurance operations and costs associated with operating as a publicly-traded company. 

As a percentage of net premiums earned, corporate expenses increased to 2.1% for the three months ended March 31, 2025, from 2.0% for the three months ended March 31, 2024 mainly driven by an increase in information technology costs.

Foreign Exchange Losses (Gains)

Foreign exchange losses of $57 million for the three months ended March 31, 2025 reflected the impact of the weakening of the U.S. dollar on the remeasurement of net insurance-related liabilities denominated in pound sterling and euro. 

Foreign exchange gains of $24 million for the three months ended March 31, 2024 reflected the impact of the strengthening of the U.S. dollar on the remeasurement of net insurance-related liabilities denominated in euro, Canadian dollar and pound sterling.

Interest Expense and Financing Costs

Interest expense and financing costs are related