Company: AXS-PE
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001214816-25-000149
Chunk: 45

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 1
Chunk 45
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 losses and loss expenses related to:Current year(166,553)(159,455)Prior years(1,395,871)(1,251,637) (1,562,424)(1,411,092)Foreign exchange and other(1,611,164)(47,452)Net reserve for unpaid losses and loss expenses, end of period8,792,123 10,147,050 Reinsurance recoverable on unpaid losses and loss expenses, end of period9,086,900 6,591,821 Gross reserve for losses and loss expenses, end of period$17,879,023 $16,738,871 On April 24, 2025, the Company completed a loss portfolio transfer reinsurance agreement with Cavello Bay Reinsurance Limited, a wholly-owned subsidiary of Enstar Group Limited ("Enstar") which was deemed to have met the established criteria for retroactive reinsurance accounting (refer to Note 14 'Related Party Transactions'). At June 30, 2025, foreign exchange and other included an increase in reinsurance recoverable on unpaid losses of $2 billion related to this transaction.At June 30, 2025, net reserves for losses and loss expenses included estimated amounts for numerous catastrophe events. The magnitude and complexity of losses arising from certain of these events inherently increase the level of uncertainty and, therefore, the level of management judgment involved in arriving at estimated net reserves for losses and loss expenses. These events include California Wildfires in 2025, Hurricane Milton and Hurricane Helene in 2024. As a result, actual losses for these events may ultimately differ materially from current estimates. During the six months ended June 30, 2025, the Company recognized catastrophe and weather-related losses, net of reinsurance, of $86 million (2024: $67 million).

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Table of  ContentsAXIS CAPITAL HOLDINGS LIMITEDNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)6.    RESERVE FOR LOSSES AND LOSS EXPENSES (CONTINUED)

Prior Year Reserve DevelopmentThe Company's net favorable (adverse) prior year reserve development arises from changes to estimates of losses and loss expenses related to loss events that occurred in previous calendar years. The following table presents net favorable (adverse) prior year reserve development by segment:  Three months ended June 30,Six months ended June 30,2025202420252024Favorable (Ad