Company: AXS-PE
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001214816-25-000149
Chunk: 22

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 1
Chunk 22
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477 (1,206)314,042 Bond mutual funds323,068 540 (66,881)256,727 Total equity securities$520,743 $127,218 $(68,687)$579,274  d)      Mortgage LoansThe following table provides details of the Company's mortgage loans, held for investment:  June 30, 2025December 31, 2024  Carrying value% of TotalCarrying value% of TotalMortgage loans, held for investment:Commercial$465,906 106 %$529,075 105 %Allowance for expected credit losses (27,335)(6 %)(23,378)(5 %)Total mortgage loans held for investment$438,571 100 %$505,697 100 %The primary credit quality indicators for commercial mortgage loans are the debt service coverage ratio which compares a property’s net operating income to amounts needed to service the principal and interest due under the loan, (generally, the lower the debt service coverage ratio, the higher the risk of experiencing a credit loss) and the loan-to-value ratio which compares the unpaid principal balance of the loan to the estimated fair value of the underlying collateral (generally, the higher the loan-to-value ratio, the higher the risk of experiencing a credit loss). The debt service coverage ratio and loan-to-value ratio, as well as the values utilized in calculating these ratios, are updated quarterly.The Company has a high quality commercial mortgage loan portfolio with a weighted average debt service coverage ratio of 1.7x (2024: 1.7x) and a weighted average loan-to-value ratio of 79% (2024: 78%). At June 30, 2025, there was one commercial mortgage loan with past due amounts where the Company is assessing exit strategies. At June 30, 2024, there were no past due amounts associated with the commercial mortgage loans held by the Company.

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Table of  ContentsAXIS CAPITAL HOLDINGS LIMITEDNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)3.    INVESTMENTS (CONTINUED)

On a quarterly basis, the Company's exposure to commercial mortgage loans in the office sector, that represents 49% (2024: 43%) of the total mortgage loan portfolio, is evaluated for credit losses based on inputs unique to this sector. This assessment utilizes historical credit loss experience adjusted to reflect