Company: AXS-PE
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001214816-25-000056
Chunk: 345

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-02-26
Form: 10-K
Item: Item 7
Chunk 345
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8, Note 6 to the Consolidated Financial Statements 'Fair Value Measurements' for further details.

CLO-Equities

The fair values of CLO-Equities are estimated using a discounted cash flow model prepared by an external investment manager. At December 31, 2024, the estimated fair value of our indirect investment in CLO-Equities was $nil (2023: $5 million). Refer to Item 8, Note 6 to the Consolidated Financial Statements 'Fair Value Measurements' for further details.

108

Other Privately Held Investments

Other privately held investments include common shares, preferred shares, convertible notes, convertible preferred shares, investments in limited partnerships (refer to "private company investment funds" below), and a variable yield security. 

These investments are initially valued at cost, which approximates fair value. In subsequent measurement periods, the fair values of these investments are derived from one or a combination of valuation methodologies which consider factors including recent capital raises by the investee companies, comparable precedent transaction multiples, comparable publicly traded multiples, third-party valuations, discounted cash-flow models, and other techniques that consider the industry and development stage of each investee company. The fair value of the variable yield security was determined using an externally developed discounted cash flow model. 

At December 31, 2024, the estimated fair value of these investments was $92 million (2023: $87 million). Refer to Item 8, Note 6 to the Consolidated Financial Statements 'Fair Value Measurements' for further details.

Other privately held investments includes investments in private company investment funds focusing on financial services technology companies with an emphasis on insurance technology companies ("private company investment funds"). 

The fair values of private company investment funds are estimated using NAVs as advised by external fund managers or third-party administrators. At December 31, 2024, the estimated fair value of our investments in these funds was $30 million (2023: $21 million). Refer to Item 8, Note 6 to the Consolidated Financial Statements 'Fair Value Measurements' for further details.

Impairment Losses and the Allowance for Expected Credit Losses - Fixed Maturities, Available for Sale

Fixed maturities classified as available for sale are reported at fair value at the balance sheet date and are presented net of an allowance for expected credit losses. Our available for sale ("AFS") investment portfolio is the largest component of total assets, and it is a multiple of shareholders’ equity. As a result, impairment losses could