Company: AXS-PE
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001214816-25-000056
Chunk: 335

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-02-26
Form: 10-K
Item: Item 7
Chunk 335
---
 each of our operating subsidiaries and statutory reporting entities as these actuarial opinions are required to meet various insurance regulatory requirements. The actuarial firm also discusses its conclusions from the annual review with management and presents its findings to the Audit Committee of the Board of Directors.

Sensitivity Analysis

While we believe that loss reserves at December 31, 2024 are adequate, new information, events or circumstances may result in ultimate losses that are materially greater or less than provided for in our loss reserves. As previously noted, there are many factors that may cause reserves to increase or decrease, particularly those related to catastrophe losses and longer tail lines of business.

Expected loss ratios are a key assumption in estimates of ultimate losses for business at an early stage of development. A higher expected loss ratio results in a higher ultimate loss estimate, and vice versa. 

Assumed loss development patterns are another significant assumption in estimating loss reserves. Accelerating a loss reporting pattern (i.e., shortening the claim tail) results in lower ultimate losses, as the estimated proportion of losses already incurred would be higher. 

101

The effect on estimates of gross loss reserves of reasonably likely changes in the two key assumptions used to estimate gross loss reserves at December 31, 2024 was as follows:

INSURANCEDevelopment patternExpected loss ratioHigher Loss Reserves (Lower Loss Reserves)Property5% lowerUnchanged5% higher3 months shorter$(106,929)$(62,679)$(17,177)Unchanged(43,132)— 47,100 3 months longer42,413 87,203 136,746 Accident and health5% lowerUnchanged5% higher3 months shorter$(20,761)$(12,288)$(1,721)Unchanged(10,591)— 10,753 3 months longer35,025 49,774 63,040 Marine and aviation5% lowerUnchanged5% higher3 months shorter$(63,371)$(34,241)$(5,111)Unchanged(29,959)— 30,154 3 months longer11,686 43,400 75,239 Cyber10% lowerUnchanged10% higher6 months shorter$(98,088)$(18,487)$60,147 Unchanged(68,961)— 76,700 6 months longer(21,785)46,045 121,667 Professional lines10% lowerUnchanged10% higher6 months shorter$(311,