AM Best Affirms Credit Ratings Of AXIS Capital
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.
The ratings agency said, “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] from the group’s risk profile.
“AXIS maintains levels of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio [BCAR], that place its balance sheet strength in the strongest category. The group’s balance sheet strength assessment is bolstered by a favorable amount of 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. Over the past 10-year period, reserves have consistently run off favorably.
“AXIS’ operating performance is assessed as adequate by AM Best, as the company’s underwriting results over the most recent five-year period have been volatile. However, corrective measures AXIS has implemented to address and reverse these trends were evident in the group’s most recent year-end results.
“AM Best categorizes AXIS’ business profile as favorable, as the group consistently ranks in AM Best’s Global Reinsurance 50 largest reinsurance enterprises. In 2022, AXIS announced it will no longer underwrite property-catastrophe reinsurance business; however, the group also maintains a well-regarded 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 given its complex risk profile.”
