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Press Release

Axis Capital Announces Record Second Quarter Net Income of $252 Million

Earnings Per Share of $1.51 and Annualized Return on Average Common Equity of 24.1%

Company Release - 8/6/2007 5:09 PM ET

PEMBROKE, Bermuda--(BUSINESS WIRE)--

AXIS Capital Holdings Limited ("AXIS Capital") (NYSE: AXS) today reported net income available to common shareholders for the quarter ended June 30, 2007 of $252 million, or $1.51 per diluted common share, compared with $223 million, or $1.37 per diluted common share, for the quarter ended June 30, 2006. Net income for the six months ended June 30, 2007 was $479 million, or $2.88 per diluted share, compared with $419 million, or $2.56 per diluted share, for the corresponding period in 2006.

Operating income for the second quarter of 2007 was $256 million, or $1.54 per diluted share, compared with $232 million, or $1.42 per diluted common share, for the second quarter of 2006. This same item excluding foreign exchange gains, net of tax, for the second quarter of 2007 was $249 million, or $1.50 per diluted common share, compared with $214 million, or $1.31 per diluted common share, for the second quarter of 2006.

Operating income for the first six months of 2007 was $483 million, or $2.91 per diluted share, compared with $437 million, or $2.68 per diluted common share, for the six months of 2006. This same item excluding foreign exchange gains, net of tax, for the first six months of 2007 was $474 million, or $2.85 per diluted common share, compared with $410 million, or $2.52 per diluted common share, for the first six months of 2006.

Operating income and operating income excluding foreign exchange gains, 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 second quarter and first half of 2007 included the following:

    --  Gross premiums written in the quarter of $959 million were
        largely comparable with the second quarter of 2006 after
        considering the impact of upward premium adjustments last
        year. Year-to-date, gross premiums written increased 5% to
        $2,262 million, with increases in our reinsurance segment more
        than offsetting reductions in more competitive lines within
        our insurance segment.

    --  Net premiums earned increased 2% to $694 million for the
        quarter and 5% to $1,379 million for the year-to-date.

    --  Pre-tax net investment income increased 24% to $114 million
        for the quarter and 29% to $239 million for the year-to-date.

    --  The combined ratio for the quarter was 75.4% and compared
        favorably with 78.3% in the same period last year. We
        experienced net favorable prior period reserve development of
        14.0 percentage points in the quarter compared to 9.5
        percentage points in the second quarter of 2006. The combined
        ratio for the year-to-date was 78.1% and included net
        favorable prior period reserve development of 11.8 points.

    --  Annualized return on average common shareholders' equity was
        24.1% for the quarter and 23.6% for the year-to-date.

    --  Diluted book value per common share increased 25% from June
        30, 2006 to $25.76. Diluted book value per common share
        increased 7% from December 31, 2006, despite the negative
        mark-to-market impact of rising interest rates.

    --  Total shareholders' equity increased 6% from December 31, 2006
        to $4.7 billion. Capital management initiatives during the
        first half of 2007 included a $101 million share repurchase
        and increased dividends.

Commenting on the second quarter 2007 results, John Charman, Chief Executive Officer and President of AXIS Capital, stated: "We are pleased to report that we have delivered an annualized return on average common equity of 24% for the first half of this year against the backdrop of increased non-U.S. catastrophe activity. Our diluted book value per share has increased 25% over the last twelve months. Our franchise diversity and depth are strong, as evidenced by the overall stability and quality of our premium volume for the first half of this year. In the quarter, we closed the acquisition of Media Pro, which represents a significant milestone in continuing to strategically broaden our specialty franchise in the small and middle market."

Operating Results

Gross premiums written for the quarter were $959 million compared to $995 million for the second quarter of 2006, and were derived 64% from our insurance segment and 36% from our reinsurance segment compared to 63% and 37%, respectively, for the second quarter of 2006. The second quarter of 2006 included upward adjustments on our property pro rata reinsurance premium estimates from prior periods. Absent any such adjustments in either quarter, gross premiums written were little changed from last year. Our combined ratio decreased to 75.4% from 78.3% in the second quarter of 2006 primarily due to a higher level of favorable reserve development in our reinsurance segment.

Gross premiums written increased 5% to $2,262 million in the first six months of 2007 from the same period of 2006 and were derived 46% from our insurance segment and 54% from our reinsurance segment compared to 49% and 51%, respectively, for the same period of 2006. The increase was largely driven by additional property and liability business written in our reinsurance segment. Approximately 2% of the increase was due to the favorable impact of exchange rate movements. Our combined ratio of 78.1% was comparable with 78.9% for the first six months of 2006.

Insurance Segment

Our insurance segment reported gross premiums written in the quarter of $613 million, down 3% from the second quarter of 2006, and net premiums written of $407 million, down 11% from the second quarter of 2006. The decrease was partially due to a reduction in political risk premiums. Gross premiums written on this line can vary considerably between periods due to the unpredictable timing of large contracts. During the quarter, we continued to reduce our aviation and terrorism writings against a significantly competitive backdrop. These factors were partially offset by growth in our professional lines and U.S. catastrophe exposed property account. We ceded 34% of gross premiums written in the quarter compared to 28% in the second quarter of 2006 as we expanded reinsurance coverage at attractive costs. Our insurance segment reported a combined ratio of 67.1%, comparable with 68.5% for the second quarter of 2006.

Our insurance segment reported gross premiums written in the first six months of 2007 of $1,049 million, down 2% from the same period of 2006, and net premiums written of $689 million, down 6% from the same period of 2006. The reductions were driven by our continued reduction in aviation and terrorism writings. Our insurance segment reported a combined ratio of 74.5% compared to 69.3% for the first six months of 2006. The increase was primarily due to a lower level of favorable reserve development, which was 13.8 percentage points in the first six months of 2007 compared to 19.2 percentage points for the same period of 2006.

Reinsurance Segment

Our reinsurance segment reported gross premiums written in the quarter of $347 million, down 5% from the second quarter of 2006. The second quarter of 2006 included significant upward adjustments to our property pro rata reinsurance premium estimates from prior years. Absent any such adjustments from either quarter, gross premiums written were essentially flat for the quarter. New property catastrophe business with U.S exposure offset the negative impact of increased retention of business by our cedants. Our reinsurance segment reported a combined ratio of 78.0%, compared with 84.0% for the second quarter of 2006. This was primarily due to favorable prior period development of 10.4 percentage points compared to 1.8 percentage points in the second quarter of 2006. Our pre-tax net loss estimate from severe flooding in the U.K. in late June and from storms and flooding in New South Wales, Australia, in early June, is $47 million, and is included in our results for the quarter.

Our reinsurance segment reported gross premiums written in the first six months of 2007 of $1,213 million, up 11% from the same period of 2006, driven by penetration of targeted business in the U.S and European reinsurance markets in the first quarter. Approximately 4 percentage points of the increase was due to the favorable impact of exchange rate movements. Our reinsurance segment reported a combined ratio of 77.4% for the first six months of 2007 compared to 84.6% for the same period in 2006. The decrease was primarily due to favorable prior period development of 10.2 percentage points compared to 0.2 percentage points in the first six months of 2006.

Investments

Pre-tax net investment income increased 24% to $114 million for the quarter and 29% to $239 million year-to-date. These increases primarily reflect higher average investment balances and higher investment yields compared to the same periods in 2006. We experienced net realized losses of $5 million and $4 million in the three and six months ended June 30, 2007, respectively, compared to $10 million and $21 million in the corresponding periods of 2006. Our investment portfolio has $69 million in total exposure to subprime mortgages, representing less than 1% of our total cash and investments. All of these are AAA-rated by major rating agencies. To date, there has been no adverse impact on our investment portfolio as a result of this exposure.

Capitalization / Shareholders' Equity

Total capitalization at June 30, 2007 was $5.2 billion, including $0.5 billion of long-term debt and $0.5 billion of preferred equity, compared to $4.9 billion at December 31, 2006. In May 2007, we repurchased 2,700,000 shares of common stock a price of $37.25 per share for a total cost of $101 million. We have approximately $299 million remaining under our current repurchase authorization.

At June 30, 2007, diluted book value per common share was $25.76 and book value per common share was $28.35, compared to $24.02 and $26.09 respectively, from December 31, 2006. The diluted book value per common share was calculated using the "if-converted" method which is a non-GAAP financial measure. A reconciliation of this measure to book value per share is presented at the end of this release.

Conference Call

We will host a conference call on Tuesday August 7, 2007 at 8:00 AM (Eastern) to discuss the second quarter financial results and related matters. The teleconference can be accessed by dialing (866) 510-0676 (U.S. callers) or (617) 597-5361 (international callers) and entering the pass code 19326384 approximately ten minutes in advance of the call. A live, listen-only webcast of the call will be available via 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 June 30, 2007 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 June 30, 2007 of $4.7 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
                     CONSOLIDATED BALANCE SHEETS
           JUNE 30, 2007 (UNAUDITED) AND DECEMBER 31, 2006

                                                  2007        2006
                                               ----------- -----------
Assets                                              (in thousands)
Investments:
   Fixed maturity investments available for
    sale, at fair value                        $ 7,219,836 $ 6,532,723
   Other investments, at fair value              1,106,409   1,130,664
                                               ----------- -----------
         Total investments                       8,326,245   7,663,387
Cash and cash equivalents                        1,837,675   1,989,287
Accrued interest receivable                         82,151      76,967
Insurance and reinsurance premium balances
 receivable                                      1,604,193   1,125,822
Reinsurance recoverable balances                 1,217,807   1,293,660
Reinsurance recoverable balances on paid losses    119,904      65,494
Deferred acquisition costs                         346,318     251,799
Prepaid reinsurance premiums                       259,474     241,821
Securities lending collateral                      916,388     794,149
Goodwill and intangible assets                      62,511      29,041
Other assets                                       156,308     133,860
                                               ----------- -----------
 Total assets                                  $14,928,974 $13,665,287
                                               =========== ===========

Liabilities
Reserve for losses and loss expenses           $ 5,360,064 $ 5,015,113
Unearned premiums                                2,548,743   2,015,556
Insurance and reinsurance balances payable         250,248     294,374
Securities lending payable                         914,466     791,744
Senior notes                                       499,207     499,144
Liability under repurchase agreement               400,000     400,000
Net payable for investments purchased              120,505      62,185
Other liabilities                                  141,859     174,524
                                               ----------- -----------
 Total liabilities                              10,235,092 $ 9,252,640
                                               ----------- -----------

Shareholders' Equity
Preferred shares - Series A and B              $   500,000 $   500,000
Common shares                                        1,849       1,875
Additional paid-in capital                       1,850,047   1,929,406
Accumulated other comprehensive loss             (106,693)    (44,638)
Retained earnings                                2,448,711   2,026,004
Treasury shares, at cost                              (32)           -
                                               ----------- -----------
 Total shareholders' equity                      4,693,882   4,412,647
                                               ----------- -----------
 Total liabilities and shareholders' equity    $14,928,974 $13,665,287
                                               =========== ===========
                    AXIS CAPITAL HOLDINGS LIMITED
          CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
      For the three and six months ended June 30, 2007 and 2006

                              Three months ended Six months ended June
                                    June 30                30
                              ------------------ ---------------------
                                2007     2006       2007       2006
                              -------- --------- ---------- ----------
                              (in thousands, except per share amounts)
Revenues
  Net premiums earned         $693,941 $ 679,099 $1,379,245 $1,312,693
  Net investment income        113,685    91,663    238,965    185,231
  Net realized investment
   losses                      (4,656)   (9,777)    (4,356)   (20,706)
  Other insurance related
   income                          693       438      2,633      1,062
                              -------- --------- ---------- ----------
     Total revenues            803,663   761,423  1,616,487  1,478,280
                              -------- --------- ---------- ----------
Expenses
  Net losses and loss
   expenses                    358,723   371,982    751,521    730,640
  Acquisition costs             95,745   101,832    193,884    191,536
  General and administrative
   expenses                     68,574    57,657    131,180    113,068
  Foreign exchange gains       (6,883)  (18,901)    (9,274)   (28,165)
  Interest expense and
   financing costs              14,169     8,315     29,312     16,400
                              -------- --------- ---------- ----------
     Total expenses            530,328   520,885  1,096,623  1,023,479
                              -------- --------- ---------- ----------
Income before income taxes     273,335   240,538    519,864    454,801
  Income tax expense            12,519     7,912     22,266     17,359
                              -------- --------- ---------- ----------
Net income                     260,816   232,626    497,598    437,442
  Preferred shares dividends     9,226     9,226     18,430     18,857
                              -------- --------- ---------- ----------
Net income available to
 common shareholders          $251,590 $ 223,400 $  479,168 $  418,585
                              ======== ========= ========== ==========

Weighted average common
 shares and common
share equivalents:
  Basic                        149,027   149,765    149,727    149,541
                              ======== ========= ========== ==========
  Diluted                      166,320   163,325    166,175    163,442
                              ======== ========= ========== ==========

Earnings per common share:
  Basic                       $   1.69 $    1.49 $     3.20 $     2.80
                              ======== ========= ========== ==========
  Diluted                     $   1.51 $    1.37 $     2.88 $     2.56
                              ======== ========= ========== ==========

Cash dividends declared per
 common share                 $  0.165 $    0.15 $     0.33 $     0.30
                              ======== ========= ========== ==========
                    AXIS CAPITAL HOLDINGS LIMITED
          CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
          For the three months ended June 30, 2007 and 2006


                                                  2007
                                    ---------------------------------
                                    Insurance  Reinsurance   Total
                                    ---------- ----------- ----------
Gross premiums written              $  612,671  $  346,707 $  959,378
Net premiums written                   406,885     348,457    755,342
Net premiums earned                    298,245     395,696    693,941
Other insurance related income             360         333        693
Net losses and loss expenses         (133,568)   (225,155)  (358,723)
Acquisition costs                     (27,442)    (68,303)   (95,745)
General and administrative expenses   (39,167)    (15,223)   (54,390)
                                    ---------------------- ----------
   Underwriting income              $   98,428  $   87,348    185,776
                                    ======================

Corporate expenses                                           (14,184)
Net investment income                                         113,685
Net realized investment gains                                 (4,656)
Foreign exchange gains                                          6,883
Interest expense                                             (14,169)
                                                           ----------
  Income before income taxes                               $  273,335
                                                           ==========

Net loss and loss expense ratio          44.8%       56.9%      51.7%
Acquisition cost ratio                    9.2%       17.3%      13.8%
General and administrative expense
 ratio                                   13.1%        3.8%       9.9%
                                    ---------- ----------- ----------
   Combined ratio                        67.1%       78.0%      75.4%
                                    ========== =========== ==========


                                                   2006
                                     ---------------------------------
                                     Insurance  Reinsurance   Total
                                     ---------- ----------- ----------
Gross premiums written               $  629,605  $  365,775 $  995,380
Net premiums written                    455,026     365,706    820,732
Net premiums earned                     323,571     355,528    679,099
Other insurance related income              438           -        438
Net losses and loss expenses          (147,785)   (224,197)  (371,982)
Acquisition costs                      (38,754)    (63,078)  (101,832)
General and administrative expenses    (34,873)    (11,501)   (46,374)
                                     ---------- ----------- ----------
   Underwriting income               $  102,597  $   56,752    159,349
                                     ========== ===========

Corporate expenses                                            (11,283)
Net investment income                                           91,663
Net realized investment gains                                  (9,777)
Foreign exchange gains                                          18,901
Interest expense                                               (8,315)
                                                            ----------
  Income before income taxes                                $  240,538
                                                            ==========

Net loss and loss expense ratio           45.7%       63.1%      54.8%
Acquisition cost ratio                    12.0%       17.7%      15.0%
General and administrative expense
 ratio                                    10.8%        3.2%       8.5%
                                     ---------- ----------- ----------
   Combined ratio                         68.5%       84.0%      78.3%
                                     ========== =========== ==========
                    AXIS CAPITAL HOLDINGS LIMITED
          CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
           For the six months ended June 30, 2007 and 2006


                                                  2007
                                    ---------------------------------
                                    Insurance  Reinsurance   Total
                                    ---------- ----------- ----------
Gross premiums written              $1,049,159  $1,212,842 $2,262,001
Net premiums written                   688,931   1,205,769  1,894,700
Net premiums earned                    613,177     766,068  1,379,245
Other insurance related income           1,127       1,506      2,633
Net losses and loss expenses         (319,520)   (432,001)  (751,521)
Acquisition costs                     (62,791)   (131,093)  (193,884)
General and administrative expenses   (74,690)    (29,966)  (104,656)
                                    ---------------------- ----------
   Underwriting income              $  157,303  $  174,514    331,817
                                    ======================

Corporate expenses                                           (26,524)
Net investment income                                         238,965
Net realized investment gains                                 (4,356)
Foreign exchange gains                                          9,274
Interest expense                                             (29,312)
                                                           ----------
  Income before income taxes                               $  519,864
                                                           ==========

Net loss and loss expense ratio          52.1%       56.4%      54.5%
Acquisition cost ratio                   10.2%       17.1%      14.1%
General and administrative expense
 ratio                                   12.2%        3.9%       9.5%
                                    ---------- ----------- ----------
   Combined ratio                        74.5%       77.4%      78.1%
                                    ========== =========== ==========


                                                   2006
                                     ---------------------------------
                                     Insurance  Reinsurance   Total
                                     ---------- ----------- ----------
Gross premiums written               $1,066,655  $1,093,465 $2,160,120
Net premiums written                    730,176   1,082,884  1,813,060
Net premiums earned                     646,284     666,409  1,312,693
Other insurance related income            1,062           -      1,062
Net losses and loss expenses          (303,955)   (426,685)  (730,640)
Acquisition costs                      (76,210)   (115,326)  (191,536)
General and administrative expenses    (67,928)    (22,215)   (90,143)
                                     ---------- ----------- ----------
   Underwriting income               $  199,253  $  102,183    301,436
                                     ========== ===========

Corporate expenses                                            (22,925)
Net investment income                                          185,231
Net realized investment gains                                 (20,706)
Foreign exchange gains                                          28,165
Interest expense                                              (16,400)
                                                            ----------
  Income before income taxes                                $  454,801
                                                            ==========

Net loss and loss expense ratio           47.0%       64.0%      55.7%
Acquisition cost ratio                    11.8%       17.3%      14.6%
General and administrative expense
 ratio                                    10.5%        3.3%       8.6%
                                     ---------- ----------- ----------
   Combined ratio                         69.3%       84.6%      78.9%
                                     ========== =========== ==========

Cautionary Note Regarding Forward-Looking Statements

This release contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements contained in this release include our expectations regarding market conditions and information regarding our estimates of losses related to natural disasters. 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) the failure of any of the loss limitation methods we employ, (5) the 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) the loss of business provided to us by our major brokers, (10) changes in governmental regulations, (11) increased competition, (12) general economic conditions and (13) the other factors set forth in our most recent report on Form 10-K, Form 10-Q and other documents on file with the Securities and Exchange Commission. 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 the following non-GAAP financial measures:

1. Operating income. This represents net income available to common shareholders, before the after tax impact of net realized gains and losses on investments;

2. Operating income, excluding the after tax impact of foreign exchange gains/losses; and

3. Diluted book value per common share using the "if-converted" method.

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 the full conversion of our outstanding stock options, warrants, restricted stock and phantom stock units. As we have no present plans to reacquire such dilutive securities, the calculation assumes the retention of all proceeds upon exercise and the resulting issuance of common shares to remain outstanding. Because we had dilutive common shares outstanding in each of the periods presented, we believe diluted book value per share provides useful information for investors to measure shareholder returns.

                    AXIS CAPITAL HOLDINGS LIMITED
              NON-GAAP FINANCIAL MEASURE RECONCILIATION
           OPERATING INCOME AND OPERATING INCOME EXCLUDING
                  FOREIGN EXCHANGE GAINS, NET OF TAX
      FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2007 AND 2006


                                Three months ended  Six months ended
                                      June 30             June 30
                                ------------------  ------------------
                                  2007     2006       2007     2006
                                -------- ---------  -------- ---------

Net income available to common
 shareholders                   $251,590 $ 223,400  $479,168 $ 418,585

Adjustment for net realized
 investment losses                 4,656     9,777     4,356    20,706
Adjustment for associated tax
 impact                            (419)     (929)     (559)   (1,872)
                                -------- ---------  -------- ---------
Operating income                 255,827   232,248   482,965   437,419

Adjustment for foreign exchange
 gains                           (6,883)  (18,901)   (9,274)  (28,165)
Adjustment for associated tax
 impact                              511       890       677     1,183
Operating income excluding
 foreign exchange
                                -------- ---------  -------- ---------
gains, net of tax               $249,455 $ 214,237  $474,368 $ 410,437
                                ======== =========  ======== =========

Net income per share - diluted  $   1.51 $    1.37  $   2.88 $    2.56
Adjustment for net realized
 investment losses                  0.03      0.06      0.03      0.13
Adjustment for associated tax
 impact                                -    (0.01)         -    (0.01)
                                -------- ---------  -------- ---------
Operating income per share -
 diluted                        $   1.54 $    1.42  $   2.91 $    2.68

Adjustment for foreign exchange
 gains                            (0.04)    (0.12)    (0.06)    (0.17)
Adjustment for associated tax
 impact                                -      0.01         -      0.01
Operating income excluding
 foreign exchange
                                -------- ---------  -------- ---------
gains, net of tax               $   1.50 $    1.31  $   2.85 $    2.52
                                ======== =========  ======== =========

Weighted average common shares
 and
 common share equivalents -
  diluted                        166,320   163,325   166,175   163,442
                                ======== =========  ======== =========
                    AXIS CAPITAL HOLDINGS LIMITED
              NON-GAAP FINANCIAL MEASURE RECONCILIATION
                     DILUTED BOOK VALUE PER SHARE
                 JUNE 30, 2007 AND DECEMBER 31, 2006
          (in thousands, except share and per share amounts)

                                                    2007       2006
                                                 ---------- ----------

Common shareholders' equity                      $4,193,882 $3,912,647
                                                 ---------- ----------

Common shares outstanding                           147,924    149,982
                                                 ---------- ----------

Book value per common share                      $    28.35 $    26.09
                                                 ========== ==========

Diluted book value on an
"if converted basis":
Common shareholders' equity                      $4,193,882 $3,912,647
add in:
 proceeds on exercise of options                     90,012     96,485
 proceeds on exercise of warrants                   244,275    244,363

                                                 ---------- ----------
Adjusted shareholders' equity                    $4,528,169 $4,253,495
                                                 ========== ==========

Common shares outstanding                           147,924    149,982
add in:
 vested phantom stock units                              53         46
 vesting of restricted stock                          3,328      2,229
 exercise of options                                  4,855      5,147
 exercise of warrants                                19,651     19,644
                                                 ---------- ----------
Diluted common shares outstanding                   175,811    177,048
                                                 ---------- ----------

Diluted book value per common share              $    25.76 $    24.02
                                                 ========== ==========

Source: AXIS Capital Holdings Limited

Contact: Investors AXIS Capital Holdings Limited Linda Ventresca, 441-405-2727 info@axiscapital.com or Media Kekst and Company Joseph Kuo, 212-521-4800