Company: AXS-PE
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001214816-25-000056
Chunk: 50

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-02-26
Form: 10-K
Item: Item 8
Chunk 50
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 The Company accounts for its ownership interest in Harrington under the equity method of accounting. The Company's proportionate share of the underlying equity in net assets resulted in a basis difference of $5 million which represents initial transactions costs.g)    Variable Interest EntitiesIn the normal course of investing activities, the Company actively manages allocations to non-controlling tranches of structured securities which are variable interests issued by VIEs. These structured securities include RMBS, CMBS and ABS. The Company also invests in limited partnerships which represent 74% of the Company's other investments. The investments in limited partnerships include multi-strategy funds, direct lending funds, private equity funds and real estate funds, that are variable interests issued by VIEs (refer to Note 5(e) 'Other Investments'). The Company does not have the power to direct the activities that are most significant to the economic performance of these VIEs. Therefore, the Company is not the primary beneficiary of these VIEs. The maximum exposure to loss on these interests is limited to the amount of commitment made by the Company. The Company has not provided financial or other support to these structured securities other than the original investment.h)    Net Investment IncomeNet investment income was derived from the following sources:Year ended December 31,202420232022Fixed maturities$620,704 $514,842 $329,858 Other investments48,666 20,411 57,043 Equity securities12,922 12,088 10,390 Mortgage loans34,028 35,312 23,407 Cash and cash equivalents59,600 50,261 20,273 Short-term investments12,569 8,924 3,535 Gross investment income788,489 641,838 444,506 Investment expenses(29,260)(30,096)(25,677)Net investment income$759,229 $611,742 $418,829  

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AXIS CAPITAL HOLDINGS LIMITEDNOTES TO CONSOLIDATED FINANCIAL STATEMENTSDECEMBER 31, 2024, 2023 AND 20225.    INVESTMENTS (CONTINUED)

i)    Net Investment Gains (Losses)The following table provides an analysis of net investment gains (losses):Year ended December 31,202420232022Gross realized investment gainsFixed maturities, short-term investments, and cash and cash equivalents