Company: AXS-PE
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001214816-25-000056
Chunk: 323

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-02-26
Form: 10-K
Item: Item 7
Chunk 323
---
 extent declared, dividends accumulate, with respect to each dividend period, in an amount per share equal to 5.50% of the liquidation preference per annum (equivalent to $137.50 per Series E preferred share and $1.375 per depositary share). We could redeem these shares on or after November 7, 2021 at a redemption price of $2,500 per Series E preferred share (equivalent to $25 per depositary share) (refer to Item 8, Note 15 to the Consolidated Financial Statements 'Shareholders' Equity' for further details).

Secured Letter of Credit Facilities

We routinely enter into agreements with financial institutions to obtain secured letter of credit facilities. 

These facilities are primarily used for the issuance of letters of credit, in the normal course of operations, to certain insurance and reinsurance entities that purchase reinsurance protection from us. These letters of credit allow those operations to take credit, under local insurance regulations, for reinsurance obtained in jurisdictions where AXIS Capital’s subsidiaries are not licensed or otherwise admitted as an insurer. The value of our letters of credit outstanding is driven by, among other factors, the amount of unearned premiums, development of loss reserves, the payment patterns of loss reserves, the expansion of our business and the loss experience of that business. 

A portion of these facilities may also be used for liquidity purposes.

At December 31, 2024, certain of AXIS Capital’s operating subsidiaries (the "Participating Subsidiaries") had a $300 million letter of credit facility available from Citibank Europe plc ("Citibank") (the "$300 million Facility").

At December 31, 2024, letters of credit outstanding were $235 million (2023: $325 million) (refer to Item 8, Note 10 to the Consolidated Financial Statements 'Debt and Financing Arrangements' for further details). 

94

Common Equity

During the year ended December 31, 2024, common equity increased by $826 million. The following table reconciles opening and closing common equity positions:

Year ended December 31,20242023Common equity - opening$4,713,196 $4,089,910 Share-based compensation expense40,487 57,207 Change in unrealized gains (losses) on available for sale investments, net of tax122,042 396,036 Foreign currency translation adjustment(23,763)(1,572)Net income1,081,