Company: AXS-PE
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001214816-25-000149
Chunk: 43

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 1
Chunk 43
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323 $— Relating to underwriting portfolio:Foreign exchange forward contracts1,367,751 419 15,909 1,323,714 9,116 3,100 Total derivatives$419 $16,258 $9,439 $3,100 (1)Derivative assets and derivative liabilities are classified within other assets and other liabilities in the consolidated balance sheets.The notional amounts of derivative contracts represent the basis on which amounts paid or received are calculated and are presented in the above table to quantify the volume of the Company's derivative activities. Notional amounts are not reflective of credit risk. None of the Company's derivative instruments are designated as hedges.Offsetting Assets and LiabilitiesThe Company's derivative instruments are generally traded under International Swaps and Derivatives Association master netting agreements which establish terms that apply to all transactions. In the event of a bankruptcy or other stipulated event, master netting agreements provide that individual positions be replaced with a new amount, usually referred to as the termination amount, determined by taking into account market prices and converting into a single currency. Effectively, this contractual close-out netting reduces credit exposure from gross to net exposure. The following table provides a reconciliation of gross derivative assets and liabilities to the net amounts presented in the consolidated balance sheets, with the difference being attributable to the impact of master netting agreements:June 30, 2025December 31, 2024Gross amountsGross amounts offsetNetamounts(1)Gross amountsGross amounts offsetNetamounts(1)Derivative assets$2,081 $(1,662)$419 $20,067 $(10,628)$9,439 Derivative liabilities$17,920 $(1,662)$16,258 $13,728 $(10,628)$3,100 (1)Net asset and liability derivatives are classified within other assets and other liabilities in the consolidated balance sheets.Refer to Note 3 'Investments' for information on reverse repurchase agreements.a) Relating to Investment PortfolioForeign Currency RiskThe Company's investment portfolio is exposed to foreign currency risk. Therefore, the fair values of its investments are partially influenced by changes in foreign currency exchange rates. The Company may enter into foreign exchange forward contracts to manage the effect of this foreign currency risk. These foreign currency hedging activities are not designated as specific hedges for financial reporting purposes.

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Table of  ContentsAXIS CAPITAL HOLDINGS LIMITEDNOTES