Company: AXS-PE
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001214816-25-000115
Chunk: 111

Company: AXIS CAPITAL HOLDINGS LTD
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 2
Chunk 111
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Corporate Expenses

Corporate expenses include holding company costs necessary to support our worldwide insurance and reinsurance operations and costs associated with operating as a publicly-traded company. 

As a percentage of net premiums earned, corporate expenses increased to 2.1% for the three months ended March 31, 2025, from 2.0% for the three months ended March 31, 2024 mainly driven by an increase in information technology costs.

Foreign Exchange Losses (Gains)

Foreign exchange losses of $57 million for the three months ended March 31, 2025 reflected the impact of the weakening of the U.S. dollar on the remeasurement of net insurance-related liabilities denominated in pound sterling and euro. 

Foreign exchange gains of $24 million for the three months ended March 31, 2024 reflected the impact of the strengthening of the U.S. dollar on the remeasurement of net insurance-related liabilities denominated in euro, Canadian dollar and pound sterling.

Interest Expense and Financing Costs

Interest expense and financing costs are related to interest due on senior unsecured notes, junior subordinated notes and the Federal Home Loan advances ("FHLB advances") received in 2024 and 2023.

Interest expense and financing costs were $17 million for the three months ended March 31, 2025 and 2024, respectively. 

Income Tax Expense (Benefit)

Income tax expense (benefit) primarily results from income (loss) in our foreign operations in the U.S. and Europe. Our effective tax rate which is calculated as income tax expense (benefit) divided by income (loss) before tax including interest in income (loss) of equity method investments was 18.6% for the three months ended March 31, 2025, and (46.0%) for the three months ended March 31, 2024. This effective rate can vary between periods depending on the distribution of net income (loss) among tax jurisdictions, as well as other factors. 

The income tax expense of $44 million for the three months ended March 31, 2025 was principally due to pre-tax income in our Bermuda, U.K., U.S., and European operations.

The income tax benefit of $125 million for the three months ended March 31, 2024 was principally due to the recognition of an income tax benefit of $163 million related to a future Bermuda corporate income tax rate of 15%,