AM Best Affirms Credit Ratings of AXIS Capital Holdings Limited and Its Operating Subsidiaries

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) of the operating subsidiaries of AXIS Capital Holdings Limited (Pembroke, Bermuda), collectively referred to as AXIS. Additionally, AM Best has affirmed the Long-Term ICR of “bbb+” (Good) and the indicative Long-Term Issue Credit Ratings (Long-Term IR) of AXIS Capital Holdings Limited. The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of subsidiaries and indicative Long-Term IRs.)

The ratings reflect AXIS’ balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM) for the group’s risk profile.

AXIS maintains the strongest levels of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), which places its balance sheet strength assessment in the strongest category. The group’s balance sheet strength assessment is supported by financial flexibility at the holding company level and within the operating subsidiaries, while also reflecting capital management strategies that have included consistent common and preferred dividends, as well as share repurchases. Reserves have run off favorably for the past few years with the exception of 2023, when AXIS strengthened reserves on its casualty book for years 2017 to 2023. This was the result of unanticipated higher social and economic inflation, impacting claims’ experience.

However, during 2024, the company reported favorable reserve development. In April 2025, AXIS completed a loss portfolio transfer with Cavello Bay Reinsurance Limited, which is a subsidiary of Enstar Group Limited. AXIS retroceded a portfolio of casualty reinsurance business mostly related to 2021 and prior underwriting years totaling approximately $2.3 billion in ceded reserves. The company’s financial leverage when compared with its peers remains largely in line with its expectations.

AXIS’ operating performance is assessed as adequate, given a certain level of volatility in its underwriting results over the recent five-year period. However, corrective measures have been implemented in recent years to mitigate volatility, such as exiting the property-catastrophe reinsurance business, and have resulted in more stable earnings. These changes have favorably impacted profitability measures with the group’s loss and combined ratios improving significantly.

AM Best assesses AXIS’ business profile as favorable, with the group consistently ranking each year among AM Best’s annual “World’s 50 Largest Reinsurers” list, and in AM Best’s excess and surplus ranking. Despite some recent changes to its business mix, the group still maintains a well-diversified profile as a specialty underwriter of complex risks with a significant presence in the Lloyd’s market. The group’s ERM is sophisticated and embedded throughout the organization. AM Best believes that AXIS’ risk management is appropriate for its complex risk profile.

The FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) have been affirmed with stable outlooks for the following subsidiaries of AXIS Capital Holdings Limited:

• AXIS Specialty Limited
• AXIS Re SE
• AXIS Reinsurance Company
• AXIS Specialty Europe SE
• AXIS Surplus Insurance Company
• AXIS Insurance Company

The following indicative Long-Term IRs under the current shelf registration have been affirmed with stable outlooks:

AXIS Capital Holdings Limited—
-- “bbb+” (Good) on senior unsecured debt
-- “bbb” (Good) on subordinated debt
-- “bbb-” (Good) on preferred stock

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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