Company: AXS-PE
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001214816-25-000056
Chunk: 69

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-02-26
Form: 10-K
Item: Item 8
Chunk 69
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 of master netting agreements:December 31, 2024December 31, 2023Gross amountsGross amounts offsetNetamounts(1)Gross amountsGross amounts offsetNetamounts(1)Derivative assets$20,067 $(10,628)$9,439 $8,708 $(4,284)$4,424 Derivative liabilities$13,728 $(10,628)$3,100 $14,449 $(4,284)$10,165 (1)Net asset and liability derivatives are classified within other assets and other liabilities in the consolidated balance sheets.Refer to Note 5 'Investments' for information on reverse repurchase agreements.a)     Relating to Investment PortfolioForeign Currency RiskThe Company's investment portfolio is exposed to foreign currency risk. Therefore, the fair values of its investments are partially influenced by changes in foreign currency exchange rates. The Company may enter into foreign exchange forward contracts to manage the effect of this foreign currency risk. These foreign currency hedging activities are not designated as specific hedges for financial reporting purposes.

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AXIS CAPITAL HOLDINGS LIMITEDNOTES TO CONSOLIDATED FINANCIAL STATEMENTSDECEMBER 31, 2024, 2023 AND 20227.    DERIVATIVE INSTRUMENTS (CONTINUED)

b)     Relating to Underwriting PortfolioForeign Currency RiskThe Company's insurance and reinsurance subsidiaries and branches operate in various countries. Some of its business is written in currencies other than the U.S. dollar, therefore the underwriting portfolio is exposed to significant foreign currency risk. The Company manages foreign currency risk by seeking to match its foreign-denominated net liabilities under insurance and reinsurance contracts with cash and investments that are denominated in the same currencies. The Company uses derivative instruments, specifically, forward contracts to economically hedge foreign currency exposures.Other Underwriting-related RisksThe Company enters into insurance and reinsurance contracts that are accounted for as derivatives. These insurance or reinsurance contracts provide indemnification to an insured or cedant as a result of a change in a variable as opposed to an identifiable insurable event. The Company considers these contracts to be part of its underwriting operations.The following table provides the total unrealized and realized gains (losses) recognized in net income (loss) for derivatives not designated as hedges:  Consolidated statement of operations line item that includes gain (loss) recognizedin net income (loss)Amount of