Company: AXS-PE
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001214816-25-000115
Chunk: 63

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 1
Chunk 63
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(1)Pre-tax return on other investments is calculated by dividing total net investment income from other investments by the average month-end fair value balances held for the periods indicated.

Net investment income attributable to other investments for the three months ended March 31, 2025 increased to $22 million, compared to net investment income attributable to other investments of $6 million for the three months ended March 31, 2024, primarily related to higher returns from real estate funds, other privately held investments and private equity funds.

62

Net Investment Gains (Losses)

Net investment gains (losses) were as follows:

  Three months ended March 31,  20252024On sale of investments:Fixed maturities, short-term investments, and cash and cash equivalents$(29,601)$(29,533)Equity securities27,197 22,914  (2,404)(6,619)(Increase) decrease in allowance for expected credit losses, fixed maturities, available for sale(245)6,522 (Increase) decrease in allowance for expected credit losses, mortgage loans(2,484)(1,858)Impairment losses (1)(1,926)(8)Change in fair value of investment derivatives(416)795 Net unrealized gains (losses) on equity securities(22,530)(8,039)Net investment gains (losses)$(30,005)$(9,207)

(1)Related to instances where we intend to sell securities, or it is more likely than not that we will be required to sell securities before their anticipated recovery.

On Sale of Investments and Net Unrealized Gains (Losses) on Equity Securities

Generally, sales of individual securities occur when there are changes in the relative value, credit quality, or duration of a particular issue. We may also sell securities to re-balance our investment portfolio in order to change exposure to particular asset classes or sectors. 

Net investment losses for the three months ended March 31, 2025 were $30 million, compared to net investment losses of $9 million for the three months ended March 31, 2024. 

For the three months ended March 31, 2025, the net investment losses were primarily due to net realized losses on the sale of corporate debt and U.S. government securities and net unrealized losses on equity securities, partially offset by net realized gains on the sale of equity securities. For the three months ended March 31, 202