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Press Release

AXIS Capital Announces 2005 First Quarter Net Income of $151.8 Million

Company Release - 5/2/2005 5:00 PM ET

PEMBROKE, Bermuda--(BUSINESS WIRE)--May 2, 2005--AXIS Capital Holdings Limited ("AXIS Capital") (NYSE:AXS) today reported net income for the quarter ended March 31, 2005 of $151.8 million, or $0.95 per diluted share, compared with $166.8 million, or $1.00 per diluted share, for the quarter ended March 31, 2004.

Net income excluding net realized gains and losses on investments, net of tax, for the first quarter of 2005 was $152.7 million, or $0.95 per diluted share, compared with $157.6 million, or $0.94 per diluted share, for the quarter ended March 31, 2004. This same item excluding foreign exchange losses, net of tax, for the first quarter of 2005 was $175.7 million, or $1.10 per diluted share, compared with $158.8 million, or $0.95 per diluted share, for the quarter ended March 31, 2004. Financial results for the first quarter benefited from increased underwriting profit and investment income.

Net income excluding net realized gains and losses on investments, net of tax, and net income excluding net realized gains and losses on investments and foreign exchange losses, net of tax, are non-GAAP financial measures. Reconciliations of these measures to net income are presented at the end of this release.

    Operating highlights for the first quarter of 2005 are as follows:

    --  Gross premiums written increased by 14.8% to $1.2 billion and
        net premiums written increased by 18.1% to $1.1 billion;

    --  Combined ratio of 78.3%, which includes good current accident
        year results, catastrophe losses from windstorm Erwin in
        Northern Europe, representing 4.9 percentage points, and
        favorable reserve development of 10.7 percentage points;

    --  Total pre-tax investment income, including net realized
        losses, increased by 24.2% to $51.4 million due to higher
        investment yields and strong cash flow from operations;

    --  Cash flows from operations were $445.3 million for the
        quarter, up 21.8% from the first quarter of 2004;

    --  Annualized return on average shareholders' equity of 19.6%
        achieved during the quarter;

    --  Significant capital management activity in the form of a $350
        million repurchase of common shares from certain initial
        investors, representing 9.4% of our year-end total capital;
        and

    --  Total shareholders' equity of $3.0 billion and total
        capitalization of $3.5 billion as of March 31, 2005.

Commenting on the first quarter 2005 results, John Charman, Chief Executive Officer and President of AXIS Capital, stated: "We continue to purposefully build a strong global specialty insurance and reinsurance business while at the same time creating healthy shareholder returns. We expect that the numerous fundamental issues facing the market will not deflect us from reaching that goal. Profitability, diversity of products and location, efficiency of operations, expertise -- these are the foundations of AXIS."

Operating Results

As of January 2005, we are reporting two underwriting segments, insurance and reinsurance, and a corporate segment following the previously announced strategic reorganization of our operations into AXIS Insurance and AXIS Re. The insurance segment is further divided into global insurance and U.S. insurance.

Our total gross premiums increased 14.8% from the first quarter of 2004 and were derived 35.8% from our insurance segment and 64.2% from our reinsurance segment compared to 43.0% and 57.0%, respectively, for the first quarter of 2004. This increase was largely attributable to growth in our reinsurance segment following greater market penetration in Continental Europe during the key first quarter renewal period. Our combined ratio increased to 78.3% in the quarter from 72.5% in the first quarter of 2004 primarily due to business mix and catastrophic activity in the quarter that was higher than in the first quarter of 2004.

Insurance Segment

Our insurance segment reported gross premiums in the quarter of $429.2 million, down 4.3% from the first quarter of 2004, and net premiums of $294.7 million, down 6.0% from the first quarter of 2004. This segment experienced a decline in gross premiums written in the face of an increasingly competitive marketplace in many lines, resulting in shifts amongst classes of business written within our worldwide insurance portfolio. Global insurance experienced a decline in gross premiums of 16.0%, primarily driven by our political risk and our terrorism and war risk lines of business where the business is characterized by unpredictable renewal patterns or coverage is provided for non-recurring events. U.S. insurance experienced moderate gross premium growth of 19.3% primarily due to the continuing build-out of our U.S. underwriting platform, greater market penetration in the liability line of business and growth in specialty areas within the property line of business, which is largely attributable to growth in the inland marine builders risk business.

Our insurance segment reported a combined ratio of 63.1% for the quarter compared to 72.4% in the first quarter of 2004. The insurance segment experienced favorable prior period reserve development from short-tail lines of $62.1 million in the first quarter compared to $33.8 million in the first quarter of 2004.

Reinsurance Segment

Our reinsurance segment reported gross premiums in the quarter of $769.5 million, up 29.2% from the first quarter of 2004, and net premiums of $767.4 million, up 31.0% from the first quarter of 2004. Growth in this segment was primarily driven by increased market penetration in Continental Europe, particularly in the property, motor and catastrophe lines of business.

Our reinsurance segment reported a combined ratio of 90.8% compared to 68.0% in the first quarter of 2004. Catastrophe losses from windstorm Erwin accounted for 10.1 percentage points of the combined ratio in 2005 and were meaningfully higher than catastrophe losses in the first quarter of 2004, which was characterized by minimal catastrophic activity. Our reinsurance segment experienced favorable prior period reserve development from short-tail lines of business of $4.6 million in the quarter compared to $14.7 million in the first quarter of 2004, which also related to short-tail lines.

Interest Expense

Interest expense for the quarter was $8.1 million compared to an immaterial amount for the first quarter of 2004. Interest expense consists of interest due on outstanding debt, the amortization of debt offering expenses and offering discounts and fees relating to our credit facility. Our outstanding debt relates to $500.0 million of senior unsecured debt issued on November 15, 2004.

Investments

Total pre-tax investment income, which included $52.8 million in net investment income and $1.4 million in realized losses, was up 24.2% to $51.4 million in the quarter from $41.4 million in the first quarter of 2004. The increase primarily reflected the positive impact of higher average yields on fixed income securities.

Capitalization / Shareholders' Equity

Total capitalization at March 31, 2005 was $3.5 billion, including $499.0 million of long-term debt, compared to $3.7 billion, including $499.0 million of long-term debt, at December 31, 2004. Shareholders' equity attributable to common shareholders was $3.0 billion compared to $3.2 billion at December 31, 2004. This decrease was primarily attributable to capital management initiatives undertaken during the quarter. In February 2005, we repurchased 12,783,094 shares of common stock from certain of our initial investors at an average price of $27.38 per share for a total of $350 million.

Book value per common share at March 31, 2005 was $21.14 compared to $21.20 per common share at December 31, 2004. Diluted book value per share at March 31, 2005 was $19.69 compared to $19.85 per share at December 31, 2004. The 0.8% decrease in diluted book value was primarily the result of the $350 million share repurchase during the quarter. Diluted book value per share is a non-GAAP financial measure. A reconciliation of this measure to shareholders' equity is presented at the end of this release.

Insurance Industry Investigation

As previously disclosed, our U.S. holding company has received subpoenas from the Office of the Attorney General of the State of New York seeking information regarding incentive commission agreements, fictitious and inflated quotes and related matters and conditioning direct insurance on the placement of reinsurance. In addition, our U.S. insurance companies have received subpoenas and requests for information from various state insurance regulators regarding these same matters. These inquiries are part of industry-wide investigations in these jurisdictions and we understand that officials from other jurisdictions in which we do business have also initiated investigations into similar matters. Accordingly, we may in the future receive additional subpoenas and requests for information. We are cooperating fully with the Attorney General of the State of New York and the other state regulators in their investigations and intend to cooperate fully with any future investigations.

In connection with these inquiries, we have conducted an internal investigation, led by outside counsel, to determine whether we have engaged in any of the improper business practices that are the focus of the inquiries. Our internal investigation is nearing completion and has uncovered no evidence indicating that we engaged in bid rigging, fictitious or inflated quotes or related matters or conditioning direct insurance on the placement of reinsurance. Consistent with long-standing and wide-spread industry practice, we have in the past entered into incentive commission arrangements with brokers; however, we have not entered into any of these arrangements with respect to 2005.

We are aware that two purported shareholders class action lawsuits have been filed against us and some of our executive officers relating to the practices being investigated by the Attorney General of the State of New York and other state regulators. On April 13, 2005, these lawsuits were consolidated into one lawsuit. As we have previously stated, we believe that the lawsuit is completely without merit and intend to vigorously defend against it.

We will host a conference call on Tuesday May 3, 2005 at 8:30 AM (Eastern) to discuss the first quarter financial results and related matters. This presentation will be available through an audio webcast accessible through the Investor Information section of our website at www.axiscapital.com.

In addition, a financial supplement relating to our financial results for the quarter ended March 31, 2005 is available in the Investor Information section of our website.

AXIS Capital is a Bermuda-based global provider of specialty lines insurance and treaty reinsurance with shareholders' equity at March 31, 2005 of $3.0 billion and locations in Bermuda, the United States, Europe and Singapore. Its operating subsidiaries have been assigned a rating of "A" ("Excellent") by A.M. Best and a rating of "A" ("Strong") by Standard & Poor's. AXIS Capital has been assigned a senior unsecured debt rating of Baa1 (stable) by Moody's Investors Service and BBB+ (stable) by Standard & Poor's. For more information about AXIS Capital, visit our website at www.axiscapital.com.

                     AXIS CAPITAL HOLDINGS LIMITED

                 UNAUDITED CONSOLIDATED BALANCE SHEETS
              As at March 31, 2005 and December 31, 2004
               (Expressed in thousands of U.S. dollars,
                  except share and per share amounts)

                                              March 31,   December 31,
                                                2005         2004
Assets
Cash and cash equivalents                    $   746,065  $   632,329
Investments at fair market value               5,088,487    5,128,345
   (Amortized cost 2005: $5,144,671;
    2004: $5,114,997)
Other investments                                329,514      271,344
Accrued interest receivable                       41,361       47,487
Securities lending collateral                    963,411      865,311
Insurance and reinsurance premium balances
 receivable                                    1,309,636      914,562
Deferred acquisition costs                       277,469      211,082
Prepaid reinsurance premiums                     272,313      271,187
Reinsurance recoverable                          641,103      596,299
Intangible assets                                 30,847       31,734
Other assets                                      90,294       68,605
                                             ------------ ------------
    Total Assets                             $ 9,790,500  $ 9,038,285
                                             ============ ============

Liabilities
Reserve for losses and loss expenses         $ 2,719,247  $ 2,404,560
Unearned premiums                              2,082,377    1,644,771
Insurance and reinsurance balances payable       287,094      247,940
Accounts payable and accrued expenses             94,859       89,804
Securities lending payable                       960,581      864,354
Net payable for investments purchased            185,355       49,854
Debt                                             498,965      498,938
                                             ------------ ------------
    Total Liabilities                          6,828,478    5,800,221
                                             ------------ ------------

Shareholders' Equity
Share capital
  (Authorized 800,000,000 common shares, par
   value $0.0125;
  issued and outstanding 2005: 140,139,501;
   2004: 152,764,917)                              1,752        1,910
Additional paid-in capital                     1,673,409    2,017,144
Accumulated other comprehensive (loss)
 income                                          (49,394)      12,915
Retained earnings                              1,336,255    1,206,095
                                             ------------ ------------
    Total Shareholders' Equity                 2,962,022    3,238,064
                                             ------------ ------------

                                             ------------ ------------
    Total Liabilities & Shareholders' Equity $ 9,790,500  $ 9,038,285
                                             ============ ============


                     AXIS CAPITAL HOLDINGS LIMITED

            UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
            For the quarters ended March 31, 2005 and 2004
               (Expressed in thousands of U.S. dollars,
                  except share and per share amounts)

                                             Quarters ended March 31,
                                                2005          2004
Revenues                                                  (see Note 1)
  Gross premiums written                   $  1,198,699  $  1,044,123
  Premiums ceded                               (136,628)     (144,933)
  Change in unearned premiums                  (436,481)     (427,942)
                                           ------------- -------------
  Net premiums earned                           625,590       471,248

  Net investment income                          52,758        31,259
  Net realized (losses) gains                    (1,393)       10,097
  Other insurance related (loss) income             (68)          288
                                           ------------- -------------
     Total revenues                             676,887       512,892
                                           ------------- -------------

Expenses
  Net losses and loss expenses                  344,290       242,600
  Acquisition costs                              91,301        56,963
  General and administrative expenses            54,302        41,850
  Foreign exchange                               23,418         1,145
  Interest expense                                8,078            38
                                           ------------- -------------
     Total expenses                             521,389       342,596
                                           ------------- -------------

Income before income taxes                      155,498       170,296
  Income tax expense                             (3,699)       (3,510)
                                           ------------- -------------
Net Income                                 $    151,799  $    166,786
                                           ============= =============

Weighted average common shares and
   common share equivalents - basic         146,635,717   152,480,904
                                           ============= =============

Weighted average common shares and
  common share equivalents - diluted        160,429,657   167,252,826
                                           ============= =============

Net income per share - basic               $       1.04  $       1.09
                                           ============= =============

Net income per share - diluted             $       0.95  $       1.00
                                           ============= =============

Insurance Ratios
Loss ratio                                         55.0%         51.5%
Expense ratio                                      23.3%         21.0%
                                           ------------- -------------
Combined ratio                                     78.3%         72.5%
                                           ============= =============


Note 1: Interest expense has been reclassifed from general
administrative expenses for 2004 to conform to current year
classifications. Interest expense consists of interest due on
outstanding debt, the amortization of debt offering expenses and
offering discounts and fees relating to our credit facility.


                     AXIS CAPITAL HOLDINGS LIMITED

                 UNAUDITED CONSOLIDATED SEGMENTAL DATA
                     Quarter ended March 31, 2005


                                    Global        U.S.        Total
                                  Insurance    Insurance    Insurance
                                ------------ ------------ ------------

Revenues:
Gross premiums written          $   252,323  $   176,926  $   429,249
Net premiums written                203,430       91,232      294,662
Net premiums earned                 216,858      106,501      323,359
Other insurance related (loss)
 income                                (238)          20         (218)
Expenses:
Net losses and loss expenses        (65,895)     (71,718)    (137,613)
Acquisition costs                   (33,082)      (3,044)     (36,126)
General and administrative
 expenses                            (9,852)     (20,311)     (30,163)
                                ------------ ------------ ------------
Underwriting income (a)             107,791       11,448      119,239

Corporate expenses
Net investment income
Realized losses on investments
Foreign exchange losses
Interest expense
Income before income taxes

Net loss and loss expense ratio        30.4%        67.3%        42.6%
Acquisition cost ratio                 15.3%         2.9%        11.2%
General and administrative
 expense ratio                          4.5%        19.1%         9.3%
                                ------------ ------------ ------------
Combined ratio                         50.2%        89.3%        63.1%
                                 ===========  ===========  ===========


                                Reinsurance   Corporate       Total
                                ------------ ------------ ------------

Revenues:
Gross premiums written          $   769,450  $         -  $ 1,198,699
Net premiums written                767,409            -    1,062,071
Net premiums earned                 302,231            -      625,590
Other insurance related (loss)
 income                                 150            -          (68)
Expenses:
Net losses and loss expenses       (206,677)           -     (344,290)
Acquisition costs                   (55,175)           -      (91,301)
General and administrative
 expenses                           (12,301)           -      (42,464)
                                ------------ ------------ ------------
Underwriting income (a)              28,228            -      147,467

Corporate expenses                              (11,838)     (11,838)
Net investment income                            52,758       52,758
Realized losses on investments                   (1,393)      (1,393)
Foreign exchange losses                         (23,418)     (23,418)
Interest expense                                 (8,078)      (8,078)
                                                          ------------
Income before income taxes                                $   155,498
                                                          ============

Net loss and loss expense ratio        68.4%                    55.0%
Acquisition cost ratio                 18.3%                    14.6%
General and administrative
 expense ratio                          4.1%         1.9%         8.7%
                                ------------ ------------ ------------
Combined ratio                         90.8%         1.9%        78.3%
                                ============ ============ ============

(a) The Company utilizes underwriting income as a measure of
underwriting profitability as it evaluates profitability solely on
underwriting related revenues and costs. Items not considered to be
part of underwriting include corporate expenses, investment income,
realized losses and gains on the sale of investments, foreign exchange
and interest expense. These items are evaluated separately from our
underwriting results. Underwriting income takes into account net
premiums earned and other insurance related income as revenue and net
losses and loss expenses, acquisition costs and underwriting related
general and administrative expenses as expenses. Underwriting income
is the difference between the revenue and expense items.


                     AXIS CAPITAL HOLDINGS LIMITED

                 UNAUDITED CONSOLIDATED SEGMENTAL DATA
                     Quarter ended March 31, 2004

                                  Global         U.S.         Total
                                 Insurance    Insurance     Insurance
                                ------------ ------------ ------------

Revenues:
Gross premiums written          $   300,408  $   148,343  $   448,751
Net premiums written                232,539       80,824      313,363
Net premiums earned                 199,716       73,904      273,620
Other insurance related income          179            -          179
Expenses:
Net losses and loss expenses        (98,527)     (49,617)    (148,144)
Acquisition costs                   (26,041)        (173)     (26,214)
General and administrative
 expenses                            (8,190)     (15,593)     (23,783)
                                ------------ ------------ ------------
Underwriting income                  67,137        8,521       75,658

Corporate expenses
Net investment income
Realized gains on investments
Foreign exchange losses
Interest expense
Income before income taxes

Net loss and loss expense ratio        49.3%        67.1%        54.1%
Acquisition cost ratio                 13.0%         0.2%         9.6%
General and administrative
 expense ratio                          4.1%        21.1%         8.7%
                                ------------ ------------ ------------
Combined ratio                         66.4%        88.4%        72.4%
                                ============ ============ ============


                                Reinsurance   Corporate       Total
                                ------------ ------------ ------------

Revenues:
Gross premiums written          $   595,372            -  $ 1,044,123
Net premiums written                585,827            -      899,190
Net premiums earned                 197,628            -      471,248
Other insurance related income          109            -          288
Expenses:
Net losses and loss expenses        (94,456)           -     (242,600)
Acquisition costs                   (30,749)           -      (56,963)
General and administrative
 expenses                            (9,102)           -      (32,885)
                                ------------ ------------ ------------
Underwriting income                  63,430            -      139,088

Corporate expenses                               (8,965)      (8,965)
Net investment income                            31,259       31,259
Realized gains on investments                    10,097       10,097
Foreign exchange losses                          (1,145)      (1,145)
Interest expense                                    (38)         (38)
                                                          ------------
Income before income taxes                                $  170,296
                                                          ============

Net loss and loss expense ratio        47.8%                     51.5%
Acquisition cost ratio                 15.6%                     12.1%
General and administrative
 expense ratio                          4.6%         1.9%         8.9%
                                ------------ ------------ ------------
Combined ratio                         68.0%         1.9%        72.5%
                                ============ ============ ============

(a) The Company utilizes underwriting income as a measure of
underwriting profitability as it evaluates profitability solely on
underwriting related revenues and costs. Items not considered to be
part of underwriting include corporate expenses, investment income,
realized losses and gains on the sale of investments, foreign exchange
and interest expense. These items are evaluated separately from our
underwriting results. Underwriting income takes into account net
premiums earned and other insurance related income as revenue and net
losses and loss expenses, acquisition costs and underwriting related
general and administrative expenses as expenses. Underwriting income
is the difference between the revenue and expense items.

Cautionary Note Regarding Forward-Looking Statements

This release may include forward-looking statements within the meaning of the U.S. federal securities laws. These statements involve risks, uncertainties and assumptions. Actual events or results may differ materially from our expectations. Important factors that could cause actual events or results to be materially different from our expectations include (1) our limited operating history, (2) the occurrence of natural and man-made disasters, (3) actual claims exceeding our loss reserves, (4), failure of any of the loss limitation methods we employ, (5) effects of emerging claims and coverage issues, (6) the failure of our cedants to adequately evaluate risks, (7) the loss of one or more key executives (8) a decline in our ratings with rating agencies, (9) loss of business provided to us by our major brokers, (10) changes in governmental regulations, (11) increased competition and (12) general economic conditions. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

In addition to the GAAP financial measures included within this release, we have presented "net income excluding net realized gains and losses on investments, net of tax", "net income excluding net realized gains and losses on investments and foreign exchange, net of tax" and "diluted book value per share," which are non-GAAP financial measures. We have included the first and second measures as we believe that security analysts, rating agencies and investors believe that realized gains and losses and foreign exchange, where an actively managed foreign exchange program is not in place, are largely opportunistic and are a function of economic and interest rate conditions. As a result, we believe that they evaluate earnings before realized gains and losses and foreign exchange, adjusted for tax, to make performance comparisons with our industry peers. We have included the third measure because it takes into account the effect of dilutive securities and, therefore, we believe that this is a better measure of calculating shareholder returns than book value per share.

                     AXIS CAPITAL HOLDINGS LIMITED

               NON-GAAP FINANCIAL MEASURE RECONCILIATION
    NET INCOME EXCLUDING REALIZED GAINS AND LOSSES ON INVESTMENTS,
                              NET OF TAX
            For the quarters ended March 31, 2005 and 2004
               (Expressed in thousands of U.S. dollars,
                       except per share amounts)


                                             Quarters Ended March 31,
                                                2005          2004

Net income                               $     151,799  $     166,786

Adjustment for net realized losses
 (gains) on investments                          1,393        (10,097)
Adjustment for associated tax impact
 of net realized (losses) gains on
  investments                                     (457)           953

Net income excluding realized (losses)   -------------- --------------
 gains on investments, net of tax        $     152,735  $     157,642
                                         ============== ==============

Net income per share - diluted           $        0.95  $        1.00
                                         ============== ==============

Adjustment for net realized (losses)
 gains on investments                             0.00          (0.06)
Adjustment for associated tax impact
 of net realized (losses) gains on
  investments                                     0.00           0.00

Net income excluding realized gains on
 investments, net of tax per diluted     -------------- --------------
 share                                   $        0.95  $        0.94
                                         ============== ==============


Weighted average common shares and
 common share equivalents - diluted        160,429,657    167,252,826
                                         ============== ==============


                     AXIS CAPITAL HOLDINGS LIMITED

               NON-GAAP FINANCIAL MEASURE RECONCILIATION
   NET INCOME EXCLUDING REALIZED GAINS AND LOSSES ON INVESTMENTS AND
             FOREIGN EXCHANGE GAINS AND LOSSES, NET OF TAX
            For the quarters ended March 31, 2005 and 2004
  (Expressed in thousands of U.S. dollars, except per share amounts)


                                             Quarters Ended March 31,
                                                2005          2004

Net income                               $     151,799  $     166,786

Adjustment for net realized losses
 (gains) on investments                          1,393        (10,097)
Adjustment for foreign exchange losses          23,418          1,145
Adjustment for associated tax impact              (913)           944

Net income excluding realized (losses)
 gains on investments and foreign        -------------- --------------
 exchange, net of tax                    $     175,697  $     158,778
                                         ============== ==============

Net income per share - diluted           $        0.95  $        1.00
                                         ============== ==============

Adjustment for net realized (losses)
 gains on investments                             0.01          (0.06)

Adjustment for foreign exchange losses            0.15           0.01
Adjustment for associated tax impact             (0.01)          0.00
Net income excluding realized gains on
 investments and foreign exchange,       -------------- --------------
 net of tax, per diluted share           $        1.10  $        0.95
                                         ============== ==============

Weighted average common shares and
 common share equivalents - diluted        160,429,657    167,252,826
                                         ============== ==============


                     AXIS CAPITAL HOLDINGS LIMITED

               NON-GAAP FINANCIAL MEASURE RECONCILIATION
                     DILUTED BOOK VALUE PER SHARE
              As at March 31, 2005 and December 31, 2004
               (Expressed in thousands of U.S. dollars,
                  except share and per share amounts)

                                            March 31,    December 31,
                                              2005           2004

Shareholders' equity                     $   2,962,022  $   3,238,064

Shares outstanding                         140,139,501    152,764,917

                                         -------------- --------------
Book value per share                     $       21.14  $       21.20
                                         ============== ==============

Diluted book value on an "as if
 converted basis"

Shareholders' equity                     $   2,962,022  $   3,238,064
add in:
  proceeds on exercise of options              127,326         94,724
  proceeds on exercise of warrants             244,812        244,812

                                         -------------- --------------
Adjusted shareholders' equity                3,334,160      3,577,600
                                         -------------- --------------

As if converted diluted shares
 outstanding
Shares outstanding                         140,139,501    152,764,917
add in:
  vesting of restricted stock                2,752,318      2,182,700
  exercise of options                        6,849,014      5,694,181
  exercise of warrants                      19,625,789     19,619,152

                                         -------------- --------------
Diluted shares outstanding                 169,366,622    180,260,950
                                         -------------- --------------

                                         -------------- --------------
Diluted book value per share             $       19.69  $       19.85
                                         ============== ==============

    CONTACT: AXIS Capital Holdings Limited

             Investors:
             Andrew Cook or Linda Ventresca, 441-297-9513
             info@axiscapital.com
              or
             Media:
             Kekst and Company
             Laura Accettella, 212-521-4859

    SOURCE: AXIS Capital Holdings Limited