Company: AXS-PE
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001214816-25-000149
Chunk: 155

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 2
Chunk 155
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 17 %BBB1,231,058 10 %1,190,381 9 %Below BBB(3)1,329,552 11 %1,485,915 12 %Total$12,538,265 100 %$12,589,504 100 %

(1)Includes bonds issued by states, municipalities, and political subdivisions.

(2)Includes U.S. government-sponsored agencies, residential mortgage-backed securities ("RMBS") and commercial mortgage-backed securities ("CMBS").

(3)Non-investment grade and non-rated securities.

At June 30, 2025, fixed maturities had a weighted average credit rating of A+ (2024: A+), a book yield of 4.6% (2024: 4.5%), and an average duration of 3.1 years (2024: 2.8 years). At June 30, 2025, fixed maturities together with short-term investments, cash and cash equivalents (i.e. total investments of $14.0 billion) had a weighted average credit rating of AA- (2024: AA-) and an average duration of 2.8 years (2024: 2.5 years).

At June 30, 2025, net unrealized gains on fixed maturities, available for sale were $10 million, compared to net unrealized losses of $267 million at December 31, 2024, an improvement of $277 million due to the improvement in market values.

Equity Securities

At June 30, 2025, net unrealized gains on equity securities were $90 million, compared to $59 million at December 31, 2024. The increase of $31 million was driven by the improvement in market values, partially offset by realized gains associated with sales in the period.

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Mortgage Loans

At June 30, 2025, investment in commercial mortgage loans was $439 million, compared to $506 million at December 31, 2024. The decrease was driven by loan repayments during the six months ended June 30, 2025. The commercial mortgage loans are high quality, and collateralized by a variety of commercial properties and diversified geographically throughout the U.S. and by property type to reduce the risk of concentration. At June 30, 2025, the allowance for credit losses of $27 million, was primarily related to commercial properties exposed to