AXIS CAPITAL

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AXIS CAPITAL

• Risk Management
• International 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

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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 (SP - positive), A2 (Moodys -
  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

Gross Premiums Written 2002 - 2006
GPW by Segment2006 GPW 3,609 M
( in millions)
3,609
3,394
02-06 GPWCAGR 34
3,012
2,274
AXIS Re 43
1,108
AXIS Insurance 57
AXIS Insurance
AXIS Re
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Success at AXIS
People
Diversified Revenue Earnings Stream
CORESTRENGTHS
Strong Risk Management Culture
Well-capitalized Operating Structure
High-Quality Balance Sheet
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Risk Management Structure
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The Pillars of AXIS Risk Management
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
Business units responsible for identifying,
assessing, taking and mitigating risk
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Underwriting Risk Management and Operating
Approach
Disciplined Risk Selection
Peer Review Process
Self Audit Process
Adjustment of Strategies
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Investment Risk Management and Operating Approach
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External Impact to Risk, Financial and Capital
Management
Financial Management
Capital Markets
Solvency/Economic Capital, RatingAgencies and
Regulators
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Risk-Based Capital vs. Solvency II
Note (1) Risk-based capital as developed by the
US National Association of Insurance Commsioners
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Capital Adequacy
Regulators
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Standard Poors Capital Model in Context
Industry Risk
Operating Performance
Management and Corporate Strategy
Liquidity
Capitalization
ERM
Competitive position
Capital model
Investments
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Summary

• Strong risk management program is an important
  ingredient to business success
• Risk management culture must be
  embedded throughout the Company
• Risk management is an iterative and
  evolutionary process