Company: AXS-PE
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001214816-25-000181
Chunk: 49

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 1
Chunk 49
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 a range of 0% to 200% of target. Performance Restricted Stock Units granted in 2025 with a performance conditionCertain share-settled performance restricted stock units granted in 2025 include a performance condition which is the Company’s average annual growth in book value per diluted common share, plus accumulated dividends over the performance period, adjusted to exclude unrealized investment gains (losses) recognized in accumulated other comprehensive income (loss), and share repurchases during the performance period ("Adjusted DBVPS"). Adjusted DBVPS is calculated in accordance with the terms of the applicable award agreement. If performance goals are achieved, these awards will cliff vest at the end of a three-year performance period within a range of 0% to 200% of target. Valuation assumptionsPerformance Restricted Stock Units granted in 2025 and 2024 with a market conditionThe fair value of these performance restricted stock units was measured on the grant date using a Monte Carlo simulation model.The following table provides details of the significant inputs used in the Monte Carlo simulation model:Nine months ended September 30,20252024Expected volatility 25.30%26.00%Expected term (in years)3.03.0Expected dividend yieldn/an/aRisk-free interest rate4.16%4.06%n/a - not applicable Beginning share price: The beginning share price for awards was based on the average closing share price over the 30 trading days preceding and including the start of the performance period. Ending share price: The ending share price was based on the average projected closing share price over the 30 trading days preceding and including the end of the performance period. Expected volatility: The expected volatility is estimated based on the Company's historical share price volatility.Expected term: Performance for awards granted in 2025 is measured from January 1, 2025 to December 31, 2027, and performance for awards granted in 2024 is measured from January 1, 2024 to December 31, 2026.Expected dividend yield: The expected dividend yield is not applicable to the performance restricted stock units as dividends are paid at the end of the vesting period and do not affect the value of the performance restricted stock units.Risk-free interest rate: The risk-free rate is estimated based on the yield on a U.S. treasury zero-coupon bond issued with a remaining term equal to the vesting period of the performance restricted stock units.

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Table of  ContentsAXIS CAPITAL HOLDINGS LIMITEDNOTES TO CONSOLIDATED