AM Best Affirms Ratings Of AXIS Capital
AM Best affirmed the A [Excellent] Financial Strength Rating and “a+” Long-Term ICR for AXIS Capital Holdings’ subsidiaries, with stable outlooks.
A statement from the ratings agency said, “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.
“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.”
