Company: AXS-PE
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001214816-25-000056
Chunk: 339

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-02-26
Form: 10-K
Item: Item 7
Chunk 339
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 (31)12,757 Engineering95 73 167 111 71 181 Total run-off lines112,289 94,260 206,548 185,602 90,597 276,198 Total Reinsurance671,991 1,372,752 2,044,742 679,859 1,166,185 1,846,044 Total$1,864,549 $4,976,348 $6,840,897 $1,831,234 $4,491,849 $6,323,083 

(1)    Significant gross claims associated with certain credit and political risk contracts were paid in advance of recoveries being received from the corresponding security that resulted in negative gross case reserves of $(54) million at December 31, 2024 (2023: $(60) million) and related negative reinsurance recoverables related to case reserves of $(27) million at December 31, 2024 (2023: $(29) million). Refer to 'Critical Accounting Estimates – Reserve for Losses and Loss Expenses – Reserving for Credit and Political Risk Business' for further details. 

At December 31, 2024, reinsurance recoverables as a percentage of loss reserves was 40% (2023: 38%).

The recognition of reinsurance recoverables requires two key estimates as follows:

•The first estimate is the amount of loss reserves to be ceded to our reinsurers. This amount consists of amounts related to case reserves and amounts related to IBNR. Refer to Item 8, Note 2 to the Consolidated Financial Statements 'Basis of Presentation and Significant Accounting Policies' for further details.

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•The second estimate is the amount of the reinsurance recoverable balance that we believe ultimately will not be collected from reinsurers. We are selective in choosing reinsurers, buying reinsurance principally from reinsurers with a strong financial condition and industry ratings. The amount we ultimately collect may differ from our estimate due to the ability and willingness of reinsurers to pay claims, which may be negatively impacted by factors such as insolvency, contractual disputes over contract language or coverage and/or other reasons. In addition, economic conditions and/or operational performance of a particular reinsurer may deteriorate, and this could also affect the ability and willingness of a reinsurer to meet their contractual obligations. 

Consequently, we review reinsurance recoverables at least quarterly to estimate an allowance for expected