Company: AXS-PE
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001214816-25-000056
Chunk: 318

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-02-26
Form: 10-K
Item: Item 7
Chunk 318
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utory Financial Information' for further details), as well as the need to maintain capital levels to adequately support insurance and reinsurance operations, and to preserve financial strength ratings issued by independent rating agencies. 

During 2024, AXIS Capital received $459 million (2023: $375 million) of distributions from its subsidiaries. AXIS Capital’s primary uses of funds are dividend payments to common and preferred shareholders, interest and principal payments on debt, capital investments in subsidiaries, and payment of corporate operating expenses. We believe the dividend/distribution capacity of AXIS Capital’s subsidiaries, that was $1.4 billion at December 31, 2024 (2023: $0.9 billion) will provide AXIS Capital with sufficient liquidity for the foreseeable future. 

Operating Subsidiaries

AXIS Capital’s operating subsidiaries primarily derive cash from the net inflow of premiums less claim payments related to underwriting activities and from net investment income. Historically, these cash receipts have been sufficient to fund the operating expenses of these subsidiaries, as well as to fund dividend payments to AXIS Capital. The subsidiaries’ remaining cash flows are generally invested in our investment portfolio and have also been used to fund common share repurchases in recent years.

The insurance and reinsurance business of our operating subsidiaries inherently provide liquidity, as premiums are received in advance (sometimes substantially in advance) of the time losses are paid. However, the amount of cash required to fund loss payments can fluctuate significantly from period to period, due to the low frequency/high severity nature of certain types of business we write.

Consolidated cash flows from operating, investing and financing activities in the last three years were as follows:Total cash provided by (used in)(1)202420232022Operating activities$1,844,813 $1,255,559 $798,038 Investing activities280,452 (855,610)(761,620)Financing activities(417,294)(202,371)(149,622)Effect of exchange rate changes on cash(28,335)11,754 (29,833)Increase (decrease) in cash and cash equivalents$1,679,636 $209,332 $(143,037)

(1) Refer to Item 8, 'Consolidated Statements of Cash Flows' for further details.

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Operating activities

•Net cash provided by operating activities was $1,845 million in 2024 compared to $1,256 million in 2023. Cash inflows from insurance and re