Company: AXS-PE
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001214816-25-000149
Chunk: 88

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 1
Chunk 88
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 of net insurance-related liabilities denominated in pound sterling, euro and Canadian dollar.

Foreign exchange gains of $7 million for the three months ended June 30, 2024 reflected the impact of the strengthening of the U.S. dollar on the remeasurement of net insurance-related liabilities denominated in euro, Australian dollar, and Canadian dollar, partially offset by the weakening of the U.S. dollar on the remeasurement of net insurance-related liabilities denominated in pound sterling. 

Foreign exchange gains of $31 million for the six months ended June 30, 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 Australian dollar, partially offset by the weakening of the U.S. dollar on the remeasurement of net insurance-related liabilities denominated in Japanese yen.

Interest Expense and Financing Costs

Interest expense and financing costs are related to interest due on senior unsecured notes, junior subordinated notes and the Federal Home Loan advances ("FHLB advances") received in 2024 and 2023.

75

Income Tax Expense (Benefit)

Income tax expense (benefit) primarily results from income (loss) in our global operations. Our effective tax rate which is calculated as income tax expense (benefit) divided by income (loss) before tax including interest in income (loss) of equity method investments was 20.1% and 19.4%, for the three and six months ended June 30, 2025, and 16.1% and (16.1%) for the three and six months ended June 30, 2024, respectively. This effective rate can vary between periods depending on the distribution of net income (loss) among tax jurisdictions, as well as other factors. 

The income tax expense of $56 million for the three months ended June 30, 2025 was principally due to pre-tax income in our U.K., U.S., Bermuda, and European operations.

The income tax expense of $101 million for the six months ended June 30, 2025 was principally due to pre-tax income in our Bermuda, U.K., U.S., and European operations.

The income tax expense of $41 million for the three months ended June 30, 2024 was principally due to pre-tax income in our U.S., U.K, operations.

The income tax benefit of $84 million for the six months ended June 30, 202