Company: AXS-PE
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001214816-25-000149
Chunk: 90

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 1
Chunk 90
---
 a profitability target in any specific period. 

ROACE reflects the impact of net income (loss) available (attributable) to common shareholders, including net investment gains (losses), foreign exchange losses (gains), reorganization expenses, interest in income (loss) of equity method investments and amortization of Bermuda net deferred tax asset in 2025 and Bermuda net deferred tax asset in 2024 ("Bermuda deferred tax").

The decrease in ROACE for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, was primarily driven by foreign exchange losses, increases in average common shareholders' equity and income tax expense, and interest in loss of equity method investments, partially offset by net investment gains, an increase in underwriting income, and a decrease in reorganization expenses.

The decrease in ROACE for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, was primarily driven by income tax expense, foreign exchange losses, an increase in average common shareholders' equity, and a decrease in interest in income of equity method investments partially offset by net investment gains, increases in underwriting income and net investment income, and a decrease in reorganization expenses.

Operating ROACE excludes the impact of net investment gains (losses), foreign exchange losses (gains), reorganization expenses, interest in income (loss) of equity method investments and Bermuda deferred tax.

The decrease in operating ROACE for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, was primarily driven by increases in average common shareholders' equity and income tax expense, partially offset by an increase in underwriting income.

The decrease in operating ROACE for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, was primarily driven by  income tax expense and an increase in average common shareholders' equity, partially offset by increases in underwriting income and net investment income.

77

Book Value per Diluted Common Share

We consider book value per diluted common share to be an appropriate measure of returns to common shareholders, as we believe growth in book value on a diluted basis will ultimately translate into appreciation of our stock price.

During the three months ended June 30, 2025, book value per diluted common share increased by 5.8% due to net income for the period, and net unrealized investment