Company: AXS-PE
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001214816-25-000056
Chunk: 294

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-02-26
Form: 10-K
Item: Item 7
Chunk 294
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ment expense(29,260)(3%)(30,096)17%(25,677)Net investment income$759,229 24%$611,742 46%$418,829 Pre-tax yield:(1)Fixed maturities4.5 %3.9 %2.6 %

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(1)Pre-tax yield is calculated by dividing net investment income by the average month-end amortized cost balances for the periods indicated.

Fixed Maturities

2024 versus 2023: Net investment income in 2024 increased by $106 million or 21%, compared to 2023 due to increases in yields.

Other Investments

Other investments include multi-strategy funds, direct lending funds, private equity funds, real estate funds, other privately held investments and an indirect investment in CLO-Equities. These investments are recorded at fair value, with changes in fair value and income distributions reported in net investment income. Consequently, the pre-tax return on other investments may vary materially year over year, particularly during volatile equity and credit markets.

Net investment income from other investments was as follows:

Year ended December 31,202420232022Multi-strategy, direct lending, private equity and real estate funds$41,277 $20,867 $39,151 Other privately held investments6,502 (2,875)14,931 CLO-Equities887 2,419 2,961 Total net investment income from other investments$48,666 $20,411 $57,043 Pre-tax return on other investments(1)5.2 %2.1 %5.9 %

(1)Pre-tax return on other investments is calculated by dividing total net investment income from other investments by the average month-end fair value balances held for the periods indicated.

2024 versus 2023: Pre-tax return on other investments in 2024 increased to 5.2%, compared to 2.1% in 2023. The increase was primarily attributable to higher returns from private equity funds and other privately held investments.

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Net Investment Gains (Losses)

Fixed maturities classified as available for sale are reported at fair value. Realized gains (losses) on fixed maturities are reported in net investment gains (losses) when these securities are sold or impaired. 

Equity securities are reported at fair value. Realized gains (losses) on equity securities are