| For the year ended December 31, (in thousands, except per share amounts) | 2018 | 2017 | 2016 | 2015 | 2014 |
| Statement of Operations Data: | |||||
| Underwriting income (loss) (1) | $123,827 | $(413,326) | $279,073 | $302,242 | $461,529 |
| Corporate expenses | (108,221) | (129,945) | (120,016) | (109,910) | (135,675) |
| Net investment income | 438,507 | 400,805 | 353,335 | 305,336 | 342,766 |
| Net investment gains (losses) | (150,218) | 28,226 | (60,525) | (138,491) | 132,108 |
| Other (expenses) revenues, net | (38,267) | (189,548) | 69,935 | 51,349 | 29,744 |
| Termination fee received | - | - | - | 280,000 | - |
| Transaction and reorganization expenses | (66,940) | (26,718) | - | (45,867) | - |
| Amortization of value of business acquired | (172,332) | (50,104) | - | - | - |
| Amortization of intangible assets | (13,814) | (2,543) | - | - | - |
| Bargain purchase gain | - | 15,044 | - | - | - |
| Income (loss) before income taxes and interest in income (loss) of equity method investments | $12,542 | $(368,109) | $521,802 | $644,659 | $830,472 |
| Income tax (expense) benefit | 29,486 | 7,542 | (6,340) | (3,028) | (25,908) |
| Interest in income (loss) of equity method investments | 993 | (8,402) | (2,094) | - | - |
| Net income (loss) | $43,021 | $(368,969) | $513,368 | $641,631 | $804,564 |
| Amounts attributable from noncontrolling interests | - | - | - | - | (6,181) |
| Net income (loss) available (attributable) to AXIS Capital | $43,021 | $(368,969) | $513,368 | $641,631 | $810,745 |
| Preferred share dividends | (42,625) | (46,810) | (46,597) | (40,069) | (40,088) |
| Loss on repurchase of preferred shares | - | (1,309) | - | - | |
| Net income (loss) available (attributable) to common shareholders | $396 | $(415,779) | $465,462 | $601,562 | $770,657 |
| Net investment (gains) losses, net of tax (2) | 138,576 | (26,204) | 62,355 | 135,320 | (106,196) |
| Foreign exchange losses (gains), net of tax (3) | (33,496) | 126,960 | (119,181) | (99,291) | (101,586) |
| Termination fee received (4) | - | - | - | (280,000) | - |
| Transaction and reorganization expenses, net of tax (5) | 55,904 | 23,879 | - | 42,924 | - |
| Revaluation of net deferred tax asset (4) | - | 41,629 | - | - | - |
| Bargain purchase gain (4) | - | (15,044) | - | - | - |
| Loss on repurchase of preferred shares (4) | - | - | 1,309 | - | - |
| Operating income (loss) (6) | 161,380 | (264,559) | 409,945 | 400,515 | 562,875 |
| Amortization of VOBA and intangible assets, net of tax (7) | 149,470 | 42,644 | nm | nm | nm |
| Amortization of acquisition costs, net of tax (8) | (101,628) | (26,443) | nm | nm | nm |
| Ex-PGAAP operating income (loss) (9) | $209,222 | ($248,358) | nm | nm | nm |
| For the year ended December 31, | 2018 | 2017 | ||||
| Segmental Data: | Insurance | Reinsurance | Total | Insurance | Reinsurance | Total |
| Underwriting income (loss) (1) | $77,298 | $46,529 | $123,827 | $(241,642) | $(171,684) | $(413,326) |
| Amortization of acquisition costs, gross of tax | (121,014) | (4,452) | (125,467) | (25,571) | (7,075) | (32,646) |
| Ex-PGAAP underwriting income (1) | $(43,717) | $42,091 | $(1,626) | $(267,197) | $(178,759) | $(445,955) |
| At and for the year ended December 31, (in thousands, except per share amounts) | 2018 | 2017 | 2016 | 2015 | 2014 |
| Per Common Share Data: | |||||
| Earnings (loss) per diluted common share | $0.00 | $(4.94) | $5.08 | $6.04 | $7.29 |
| Net investment (gains) losses, net of tax | 1.65 | (0.31) | 0.68 | 1.36 | (1.00) |
| Foreign exchange losses (gains), net of tax | (0.40) | 1.51 | (1.29) | (1.00) | (0.97) |
| Termination fee received | - | - | - | (2.81) | - |
| Transaction and reorganization expenses, net of tax | 0.67 | 0.28 | - | 0.43 | - |
| Revaluation of net deferred tax asset | - | 0.49 | - | - | - |
| Bargain purchase gain | - | (0.18) | - | - | - |
| Loss on repurchase of preferred shares | - | - | 0.01 | - | - |
| Operating income (loss) per diluted common share (10) | $1.92 | $(3.15) | $4.48 | $4.02 | $5.32 |
| Amortization of VOBA and intangible assets, net of tax (7) | 1.78 | 0.51 | nm | nm | nm |
| Amortization of acquisition cost, net of tax (8) | (1.21) | ($0.31) | nm | nm | nm |
| Ex-PGAAP operating income (loss) per diluted common share (11) | $2.49 | (2.95) | nm | nm | nm |
| Weighted average diluted common shares outstanding | 84,007 | 84,108 | 91,547 | 99,629 | 105,713 |
| Return on Average Common Shareholders' Equity: | 2018 | 2017 | 2016 | 2015 | 2014 |
| Return on average common equity | 0.0% | (8.6%) | 9.0% | 11.5% | 14.8% |
| Operating return on average common equity(10) | 3.7% | (5.4%) | 7.9% | 7.7% | 10.8% |
| Ex-PGAAP operating return on average common equity(11) | 4.7% | (5.1%) | nm | nm | nm |
| Average common shareholders' equity | $4,410,668 | $4,856,280 | $5,192,668 | $5,216,159 | $5,191,699 |
| 2018 | ||||
| Annualized Return on Average Common Shareholders' Equity: | Year ended | Nine months ended | Six months ended | Three months ended |
| Annualized return on average common equity | —% | 5.9% | 6.9% | 5.5% |
| Annualized operating return on average common equity(10) | 3.7% | 9.1% | 10.1% | 10.8% |
| Annualized ex-PGAAP operating return on average common equity(11) | 4.7% | 10.2% | 11.3% | 12.2% |
| Operating Ratios: | 2018 | 2017 | Change |
| Combined ratio | 99.9% | 113.1% | (13.2%) |
| Excluding: | |||
| Catastrophe and weather-related loss ratio | (9.0%) | (20.4%) | 11.4% |
| Prior year reserve development | 4.1% | 4.9% | (0.8%) |
| PGAAP adjustment | 2.7% | 0.9% | 1.8% |
| Current accident year, ex-PGAAP, ex-cat combined ratio(12) | 97.7% | 98.5% | (0.8%) |
| Nine months pro-forma Novae adjustment(14) | n/a | 1.0% | (1.0%) |
| Pro-forma, current accident year, ex-PGAAP, ex-cat combined ratio(13) | 97.7% | 99.5% | (1.8%) |
| Pro-forma, current accident year, ex-PGAAP, ex-cat loss ratio | 61.7% | 63.1% | (1.4%) |
| Pro-forma, net acquisition ratio | 22.9% | 22.5% | 0.4% |
| Pro-forma, general and administrative expense ratio | 13.1% | 13.8% | (0.7%) |
| Pro-forma, current accident year, ex-PGAAP, ex-cat combined ratio(13) | 97.7% | 99.5% | (1.8%) |
nm = not meaningful
(1) Consolidated underwriting income (loss) and ex-PGAAP underwriting income (loss) are non-GAAP financial measures as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to income (loss) before income taxes and interest in income (loss) of equity method investments, the most comparable GAAP financial measure, is presented in the table above. A discussion of the rationale for the presentation of non-GAAP financial measures is included later in this report.
(2) Tax cost (benefit) of $(12) million, $2 million, $2 million, $(3) million, and $26 million for the years ended 2018, 2017, 2016, 2015, and 2014, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors including the ability to utilize capital losses.
(3) Tax cost (benefit) of $(4) million, $(8) million, $2 million, $3 million, and $3 million for the years ended 2018, 2017, 2016, 2015, and 2014, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors including the tax status of specific foreign exchange transactions.
(4) Tax impact is nil.
(5) Tax cost (benefit) of $(11) million, $(3) million, and $(3) million for the years ended 2018, 2017, and 2015, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.
(6) Operating income (loss) is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to net income (loss) available (attributable) to common shareholders, the most comparable GAAP financial measure, is presented in the table above. A discussion of the rationale for the presentation of non-GAAP financial measures is included later in this report.
(7) Tax cost (benefit) of $(35) million and $(10) million for the years ended December 31, 2018, and 2017, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.
(8) Tax cost (benefit) of $24 million and $6 million for the years ended December 31, 2018, and 2017, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.
(9) Ex-PGAAP operating income (loss) is a non-GAAP financial measures as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to net income (loss) available (attributable) to common shareholders, the most comparable GAAP financial measure is presented in the table above. A discussion of the rationale for the presentation of non-GAAP financial measures is included later in this report.
(10) Operating income (loss) per diluted common share and (annualized) operating return on average common equity are non-GAAP financial measures as defined in Item 10(e) of SEC Regulation S-K. The reconciliations to earnings (loss) per diluted common share and (annualized) operating on average common equity, the most comparable GAAP financial measures, are provided in the table above. A discussion of the rationale for the presentation of non-GAAP financial measures is included later in this report.
(11) Ex-PGAAP operating income (loss) per diluted common share and (annualized) ex-PGAAP operating return on average common equity are non-GAAP financial measures as defined in Item 10(e) of SEC Regulation S-K. The reconciliations to earnings (loss) per diluted common share and (annualized) return on average common equity, the most comparable GAAP financial measures, are provided in the table above. A discussion of the rationale for the presentation of non-GAAP financial measures is included later in this report.
(12) Current accident year, ex-PGAAP, ex-cat combined ratio is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to combined ratio, the most comparable GAAP financial measure, is presented in the table above. A discussion of the rationale for the presentation of non-GAAP financial measures is included later in this report.
(13) Pro-forma, current accident year, ex-PGAAP, ex-cat combined ratio is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to combined ratio, the most comparable GAAP financial measure is presented in the table above. A discussion of the rationale for the presentation of non-GAAP financial measures is included later in this report.
(14) On January 29, 2018, the Company furnished supplemental financial information presenting unaudited historical financial information for Novae for the nine months ended September 30, 2017, and the quarterly periods therein.