Company: AXS-PE
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001214816-25-000149
Chunk: 44

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 1
Chunk 44
---
 TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)5.    DERIVATIVE INSTRUMENTS (CONTINUED)

b) Relating to Underwriting PortfolioForeign Currency RiskThe Company's insurance and reinsurance subsidiaries and branches operate in various countries. Some of its business is written in currencies other than the U.S. dollar, therefore the underwriting portfolio is exposed to significant foreign currency risk. The Company manages foreign currency risk by seeking to match its foreign-denominated net liabilities under insurance and reinsurance contracts with cash and investments that are denominated in the same currencies. The Company uses derivative instruments, specifically, forward contracts to economically hedge foreign currency exposures.The following table provides the total unrealized and realized gains (losses) recognized in net income (loss) for derivatives not designated as hedges:  Consolidated statement of operations line item that includes gain (loss) recognized in net income (loss)Three months ended June 30,Six months ended June 30,  2025202420252024Relating to investment portfolio:Foreign exchange forward contractsNet investment gains (losses)$(1,035)$228 $(1,451)$1,023 Relating to underwriting portfolio:Foreign exchange forward contractsForeign exchange (losses) gains(22,015)3,097 (13,686)1,081 Total$(23,050)$3,325 $(15,137)$2,104 

38

Table of  ContentsAXIS CAPITAL HOLDINGS LIMITEDNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)6.    RESERVE FOR LOSSES AND LOSS EXPENSES

Reserve Roll-ForwardThe following table presents a reconciliation of the Company's beginning and ending gross reserve for losses and loss expenses and net reserve for unpaid losses and loss expenses:Six months ended June 30,20252024Gross reserve for losses and loss expenses, beginning of period$17,218,929 $16,434,018 Less reinsurance recoverable on unpaid losses and loss expenses, beginning of period(6,840,897)(6,323,083)Net reserve for unpaid losses and loss expenses, beginning of period10,378,032 10,110,935 Net incurred losses and loss expenses related to:Current year1,625,845 1,494,659 Prior years(38,166)—  1,587,679 1,494,659 Net paid