AXIS CAPITAL

Risk ManagementInternational Insurance Society

July 10, 2007

David B. GreenfieldChief Financial Officer

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Introduction

AXIS Capital and Risk Management

Risk-Based Capital and Solvency II

External Influences on Capital Adequacy

3

AXIS at a Glance Approximately $6 billion market capitalization (June 1, 2007) $4.1 billion common equity and $5.1 billion total capital 690 employees in Bermuda, Europe, U.S. and Australasia Ratings of A (S&P - positive), A2 (Moody’s - stable) and A (AM Best - stable) $3.6 billion in gross premiums written (GWP) in 2006 6th largest by 2006 GPW and 5th by total capital in Bermuda

GPW by Segment2006 GPW = $3,609 M

AXIS Re43%

AXIS Insurance

57%$0

$1,000

$2,000

$3,000

$4,000

2002 2003 2004 2005 2006

AXIS InsuranceAXIS Re

$1,108

$2,274

$3,012

$3,394$3,609

($ in millions)

Gross Premiums Written 2002 - 2006

’02-‘06 GPWCAGR = 34%

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Success at AXIS

People

Well-capitalized Operating Structure

Strong Risk Management

Culture

CORESTRENGTHS

High-Quality Balance

Sheet

Diversified Revenue

& Earnings Stream

5

Risk Management Structure

Risk Committee of Board

Chief Risk Officer

Risk Management Committee

Business Unit Leaders and Line Personnel

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The Pillars of AXIS Risk Management

Business units responsible for

identifying, assessing, taking and

mitigating risk

Business leaders ensure appropriate limits, policies, procedures, and measures in place

(with input from Risk Management Committee)

Audit function independently

tests and verifies controls are in

place and functioning

properly

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Underwriting Risk Management and Operating Approach

Disciplined Risk

Selection Self Audit

Process

PeerReviewProcess

Adjustment of Strategies

8

Investment Risk Management and Operating Approach

Board Oversight

Benchmarks

Risk Budget

AssetAllocation

Investment Constraints

Manager Selection

Monitoring

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External Impact to Risk, Financial and Capital Management

Risk Management.

CapitalManagement

C a p i t a l A d e q u a c y

Shareholder Performance

Capi

tal M

arke

ts

Solvency/Economic Capital, RatingAgencies and Regulators

FinancialManagement

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Risk-Based Capital vs. Solvency II

RBC (1) SOLVENCY II

1. Quantitative

2. Qualitative

3. Standard Model

4. Company Specific RiskModel

5. Regulatory Review & Validation of Internal Model

6. Regulatory Action Based on Quantitative Results

7. Regulatory Action Based on Qualitative Results

8. Capital Disclosure Requirements

Note: (1) Risk-based capital as developed by the US National Association of Insurance Commsioners

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Capital Adequacy

Rating Agencies

Companies

Regulators

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Standard & Poor’s Capital Model in Context

Capital model

Industry Risk

Capitalization

Investments

Competitive position

Liquidity

Operating Performance Management and

Corporate Strategy

ERM

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Summary

Strong risk management program is an important ingredient to business success

Risk management culture must be embeddedthroughout the Company

Risk management is an iterative and evolutionary process