Company: AXS-PE
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001214816-25-000115
Chunk: 109

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 2
Chunk 109
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30,005)$(9,207)

(1)Related to instances where we intend to sell securities, or it is more likely than not that we will be required to sell securities before their anticipated recovery.

On Sale of Investments and Net Unrealized Gains (Losses) on Equity Securities

Generally, sales of individual securities occur when there are changes in the relative value, credit quality, or duration of a particular issue. We may also sell securities to re-balance our investment portfolio in order to change exposure to particular asset classes or sectors. 

Net investment losses for the three months ended March 31, 2025 were $30 million, compared to net investment losses of $9 million for the three months ended March 31, 2024. 

For the three months ended March 31, 2025, the net investment losses were primarily due to net realized losses on the sale of corporate debt and U.S. government securities and net unrealized losses on equity securities, partially offset by net realized gains on the sale of equity securities. For the three months ended March 31, 2024, the net investment losses were primarily due to net realized losses on the sale of corporate debt and U.S. government securities and net unrealized losses on equity securities, partially offset by net realized gains on the sale of equity securities.

(Increase) decrease in allowance for expected credit losses, fixed maturities, available for sale

For the three months ended March 31, 2025, the allowance for expected credit losses increased by $0.2 million, primarily related to corporate debt holdings. For the three months ended March 31, 2024, the allowance for expected credit losses decreased by $7 million, primarily related to the sale of securities. Refer to Note 3(i) to the Consolidated Financial Statements 'Investments'.

(Increase) decrease in allowance for expected credit losses, mortgage loans

For the three months ended March 31, 2025, the allowance for expected credit losses increased by $2 million, primarily related to commercial properties exposed to the office sector. For the three months ended March 31, 2024, the allowance for expected credit losses increased by $2 million, primarily related to one collateral dependent mortgage loan. Refer to Note 3(d) to the Consolidated Financial Statements 'Investments'.

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Change in Fair Value of Investment Derivatives

We economically hedge foreign exchange exposure with derivative contracts. 

For the three months ended March 31, 2025, foreign