Company: AXS-PE
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001214816-25-000056
Chunk: 279

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-02-26
Form: 10-K
Item: Item 7
Chunk 279
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 Tax Act 2023 (the "Act") which will apply a corporate income tax of 15% for fiscal years beginning on or after January 1, 2025. The Act includes a provision referred to as the economic transition adjustment ("Bermuda ETA"), which is intended to provide a fair and equitable transition into the tax regime. Pursuant to the Act and subsequently issued guidance, we recorded a net deferred tax asset of $177 million during the year ended December 31, 2024. Initially, we expected to utilize mainly over a ten-year period. We expect to incur increased taxes in Bermuda beginning in 2025. The Bermuda net deferred tax benefit is excluded from operating income (loss).

Organization for Economic Cooperation and Development ("OECD") Update

On January 15, 2025, the OECD issued guidelines that limit the use of the Bermuda ETA and similar assets in other jurisdictions in which we operate under GLoBE rules. The guidelines clarify the use of deferred tax assets under transition rules and limits the benefit of deferred tax assets relating to transactions that occurred after November 30, 2021. The guidelines seek to restrict the benefit of the Bermuda ETA to 20% of the balance at January 1, 2025 to be utilized in 2025 and 2026, thereafter GLoBE rules will ensure the balance of the asset is subject to the global minimum tax of 15%.

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CONSOLIDATED RESULTS OF OPERATIONS

Year ended December 31,2024% Change2023% Change2022Underwriting revenues:Gross premiums written$9,005,888 8%$8,356,525 2%$8,214,595 Net premiums written5,757,351 13%5,102,325 (3%)5,263,056 Net premiums earned5,306,235 4%5,083,781 (1%)5,160,326 Other insurance related income30,721 37%22,495 72%13,073 Underwriting expenses:Net losses and loss expenses(3,158,487)(7%)(3,393,102)5%(3,242,410)Acquisition costs(1,070,551)7%(1,000,945)(2%)(1,022,017)Underwriting-related general and administrative expenses(1)(536,442)(3%)(551,467)—%(550,289)Underwriting income(2