Company: AXS-PE
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001214816-25-000056
Chunk: 188

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-02-26
Form: 10-K
Item: Item 1
Chunk 188
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, Chief Financial Officer, Chief Risk Officer, Group Chief Underwriting Officer and representatives from the business leadership, approves each treaty placement and aims to ensure that appropriate diversification exists within our RSC approved counterparty panels.

Facultative reinsurance provides risk transfer on a case by case basis. In certain circumstances, we use facultative reinsurance to complement treaty reinsurance by covering additional risks over and above what is already covered by treaties. Facultative reinsurance is monitored by the Risk Funding team.

24

Natural Catastrophes

Natural catastrophes such as hurricanes, windstorms, earthquakes, floods, tornados, hail and fire represent a challenge for risk management due to their accumulation potential and occurrence volatility. In managing natural catastrophe risk, our internal risk limit framework aims to limit the loss of capital due to a single event and the loss of capital which would occur from multiple (but perhaps smaller) events in any year. Within this framework, we have an established risk limit for single event, single zone probable maximum loss ("PML") within defined zones. For example, at the 1-in-100-year return period, we are not willing to expose more than 10% of common equity to a single event within a single zone.

The table below shows our net PML to a single natural peril catastrophe event within certain defined single zones which correspond to peak industry catastrophe exposures at January 1, 2025 and 2024:

Estimated Net Exposures(millions of U.S. dollars)January 1, 2025January 1, 2024TerritoryPeril50 YearReturnPeriod100 YearReturnPeriod250 YearReturnPeriod50 YearReturnPeriod100 YearReturnPeriod250 YearReturnPeriodSingle zone, single eventSoutheastU.S. Hurricane$141 $160 $228 $114 $131 $149 NortheastU.S. Hurricane12 34 73 9 26 59 Mid-AtlanticU.S. Hurricane60 105 127 41 85 111 Gulf of MexicoU.S. Hurricane122 139 158 104 124 143 EuropeWindstorm62 89 111 59 87 107 JapanWindstorm5 6 13 10 12 21 JapanEarthquake30 49 87 41 67 114 CaliforniaEarthquake133 162 194 115 137 163 

The return period refers to