AXIS Capital Holdings Limited 8K Results of Operations and Financial Condition | AXS 7 Aug 07

Exhibit 99.2

AXIS Capital Holdings Limited

INVESTOR FINANCIAL SUPPLEMENT

SECOND QUARTER 2007

AXIS Capital Holdings Limited

92 Pitts Bay Road

Pembroke HM 08 Bermuda

Contact Information:

Linda Ventresca

Investor Relations

441 405 2727

investorrelations@axiscapital.com

Website Information:

www.axiscapital.com

This report is for informational purposes only. It should be read in conjunction with the documents that we file with the Securities and Exchange Commission pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934.

AXIS Capital Holdings Limited

FINANCIAL SUPPLEMENT TABLE OF CONTENTS

				Page(s)

i.	Basis of Presentation			i - iii

I.	Financial Highlights			1

II.		Income Statements
			a. Consolidated Statements of Income - Quarterly	2
			b. Consolidated Statements of Income - YTD	3
			c. Consolidated Segment Data	4-5
			d. Gross Premium Written by Segment by Line of Business	6
			e. Segment Consecutive Quarters	7

III.			Balance Sheets
			a. Consolidated Balance Sheets	8
			b. Summary of Investment Portfolio Information	9
			c. Investment Portfolio Composition	10
			d. Investment Portfolio: Investment Performance	11
			e. Reinsurance Recoverable Analysis	12-13

IV.			Loss Reserve Analysis
			a. Paid to Incurred Analysis	14
			b. Paid to Incurred Analysis by Segment	15
			c. Segment Consecutive Quarters	16-17

V.			Share Analysis
			a. Earnings Per Common Share Analysis - As Reported	18
			b. Diluted Book Value Per Common Share Analysis - As-If Converted Method	19
			c. Diluted Book Value Per Common Share Analysis - Treasury Method	20

AXIS Capital Holdings Limited

BASIS OF PRESENTATION

DEFINITIONS AND PRESENTATION

· In January 2007, the Company announced a strategic reorganization of the AXIS Insurance segment to further strengthen its global operations. As a result, the Company’s segment reporting has been modified effective January 1, 2007 to reflect the reorganization of AXIS Insurance. The data presented in this supplement reflects the AXIS Insurance reorganization. The Company will continue to report overall results based on its two operating segments: Insurance and Reinsurance.

· All financial information contained herein is unaudited, except for the consolidated balance sheets and statements of income relating to the year ended December 31, 2006.

· Unless otherwise noted, all data is in thousands, except for per share amounts and ratio information. Amounts may not reconcile due to small rounding differences

· Return on average common equity (“ROACE”) is calculated by dividing the net income available to common shareholders for the period by the average common shareholders’ equity determined using the shareholders’ equity balances at the beginning and the end of the period.

· The debt to capitalization ratio is calculated by dividing the company’s senior notes by the total capital. Total capital represents the sum of equity (common equity and preferred equity) plus debt.

· Annualized effective investment yield is calculated by dividing the investment income generated by the average balance of invested assets.

· NM - Not meaningful; NR - Not reported; NA - Not applicable

REGULATION G

This investor financial supplement includes the presentation of dilutive book value per common share calculated using the “if converted method”. This item is a non-GAAP financial measure as defined in Regulation G. The reconciliation of diluted book value per common share to basic book value per common share in accordance with Regulation G is included on page 18. Management has included this non-GAAP financial measure because it takes into account the effect of the full converstion of our outstanding stock options, warrants, restrcited stock and phantom stock units. As we have no present plans to reacquire such dilutive securities, the calculation assumes the retention of all proceeds upon exercise and the resulting issuance of common shares remain outstanding. Because we had dilutive common shares outstanding in each of the periods presented, we believe diluted book value per share provides useful information for investors to measure shareholder returns.

Cautionary Note Regarding Forward-Looking Statements:

This financial supplement may contain forward-looking statements which involve inherent risks and uncertainties. Statements that are not historical facts, including statements about our beliefs, plans or expectations, are forward-looking statements. These statements are based on current plans, estimates and expectations. Actual results may differ materially from those included in such forward-looking statements and therefore you should not place undue reliance on them. A non-exclusive list of other important factors that could cause actual results to differ materially from those in such forward-looking statements is set forth in our most recent annual report on Form 10-K, quarterly report on Form 10-Q and our other documents on file with the Securities and Exchange Commission. AXIS undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

BUSINESS DESCRIPTIONS

INSURANCE SEGMENT

Our insurance segment provides insurance coverage on a worldwide basis. The following are the lines of business in our insurance segment:

Property: provides physical damage and business interruption coverage for industrial and commercial properties and physical damage, business interruption and liability coverage for onshore energy properties and operations. The book consists of both primary and excess risks, some of which are catastrophe-exposed.

Marine: provides coverage for hull, liability, cargo and specie and recreational marine risks. These risks include property damage or physical loss to ships, pollution damage caused by vessels on a sudden and accidental basis, protection for general cargo and the contents of armored cars, vaults, exhibitions and museums, and specific war related risks. This line of business also provides physical damage, business interruption and liability coverage for offshore energy property and operations.

Terrorism: provides coverage for physical damage and associated business interruption of an insured following an act of terrorism.

Aviation: includes hull and liability and specific war coverage for passenger and cargo airlines and privately owned aircraft as well as select aviation product liability coverage.

Political risk: generally provides protection against sovereign default or sovereign actions resulting in impairment of cross-border investments for banks and major corporations. It also provides protection on structured credit based transactions where lenders seek to mitigate some of the non-payment risk of their borrowers.

Professional lines: primarily consists of coverage for directors’ and officers’ liability, errors and omissions liability and employment practices liability.

Liability: primarily targets casualty risks in the U.S. excess and surplus lines markets. Target classes include mercantile, manufacturing and building/premises, with particular emphasis on commercial and consumer products, commercial construction and miscellaneous general liability.

Accident & Health: primarily provides employee medical coverage for self-insured, small and medium sized employers for losses in excess of a retention.

REINSURANCE SEGMENT

Our reinsurance segment provides property and casualty reinsurance to insurance companies on a worldwide basis. The following are the lines of business we write on both a treaty and facultative basis:

Catastrophe: provides protection for most catastrophic losses that are covered in the underlying insurance policies written by our ceding company clients which is principally property exposure. This business also consists of contracts covering non-property exposures, including workers compensation, personal accident and life. The principal perils in this portfolio are hurricane and windstorm, earthquake, flood, tornado, hail and fire. In some instances, terrorism may be a covered peril or the only peril.

Property: includes reinsurance written on both a pro rata and a per risk basis and covers underlying personal lines and commercial property exposures. Property pro rata treaty reinsurance covers a cedent’s aggregate losses from all events in the covered period on a proportional basis. Property per risk treaty reinsurance reinsures a portfolio of particular property risks of ceding companies on an excess of loss basis.

Professional liability: covers directors’ and officers’ liability, employment practices liability, medical malpractice and miscellaneous errors and omissions insurance risks.

Credit and bond: consists principally of reinsurance of trade credit insurance products and includes both proportional and excess-of loss structures. The underlying insurance indemnifies sellers of goods and services against a payment default by the buyer of those goods and services. Also included in this book is coverage for ceding insurers against losses arising from a broad array of surety bonds issued by bond insurers principally to satisfy regulatory demands in a variety of jurisdictions around the world, but predominantly in Europe.

Motor liability: provides coverage to insurers for motor liability losses arising out of any one occurrence. The occurrence can involve one or many claimants where the ceding insurer aggregates the claims from the occurrence.

Liability: provides coverage to insurers of standard casualty lines, including auto liability, general liability, personal and commercial umbrella and workers’ compensation.

Other: covers claims arising from aviation, engineering, marine, personal accident and crop reinsurance.

iii

AXIS Capital Holdings Limited

FINANCIAL HIGHLIGHTS

		Three months ended June 30,								Six months ended June 30,
		2007			2006			Change		2007			2006			Change
HIGHLIGHTS	Gross premiums written	$	959,378		$	995,380		(3.6	)%	$	2,262,001		$	2,160,120		4.7	%
	Gross premiums written - Insurance	63.9		%	63.3		%	0.6	%	46.4		%	49.4		%	(3.0	)%
	Gross premiums written - Reinsurance	36.1		%	36.7		%	(0.6	)%	53.6		%	50.6		%	3.0	%
	Net premiums written	755,342			820,732			(8.0	)%	1,894,700			1,813,060			4.5	%

	Net premiums earned	$	693,941		$	679,099		2.2	%	$	1,379,245		$	1,312,693		5.1	%
	Net premiums earned - Insurance	43.0		%	47.6		%	(4.6	)%	44.5		%	49.2		%	(4.7	)%
	Net premiums earned - Reinsurance	57.0		%	52.4		%	4.6	%	55.5		%	50.8		%	4.7	%
	Net income available to common shareholders	$	251,590		$	223,400		12.6	%	$	479,168		$	418,585		14.5	%

	Reserve for losses and loss expenses	5,360,064			4,835,161			10.9	%	5,360,064			4,835,161			10.9	%
	Total shareholders’ equity	4,693,882			3,818,723			22.9	%	4,693,882			3,818,723			22.9	%

PER COMMON SHARE AND COMMON SHARE DATA	Basic earnings per common share	$	1.69		$	1.49		13.3	%	$	3.20		$	2.80		14.3	%
	Diluted earnings per common share	$	1.51		$	1.37		10.4	%	$	2.88		$	2.56		12.6	%
	Weighted average common shares outstanding	149,027			149,765			(0.5	)%	149,727			149,541			0.1	%
	Diluted weighted average common shares outstanding	166,320			163,325			1.8	%	166,175			163,442			1.7	%
	Book value per common share	$	28.35		$	22.15		28.0	%	$	28.35		$	22.15		28.0	%
	Diluted book value per common share (if converted method)	$	25.76		$	20.68		24.5	%	$	25.76		$	20.68		24.5	%

FINANCIAL RATIOS	ROACE, net income available to common shareholders [a]	24.1		%	27.6		%	(3.5	)%	23.6		%	26.4		%	(2.8	)%
	Net loss and loss expense ratio	51.7		%	54.8		%	(3.1	)%	54.5		%	55.7		%	(1.2	)%
	Acquisition cost ratio	13.8		%	15.0		%	(1.2	)%	14.1		%	14.6		%	(0.5	)%
	General and administrative expense ratio	9.9		%	8.5		%	1.4	%	9.5		%	8.6		%	0.9	%
	Combined ratio	75.4		%	78.3		%	(2.9	)%	78.1		%	78.9		%	(0.8	)%

INVESTMENT DATA	Total assets	$	14,928,974		$	12,799,050		16.6	%	$	14,928,974		$	12,799,050		16.6	%
	Total cash and investments [b]	$	10,125,566		$	8,277,969		22.3	%	$	10,125,566		$	8,277,969		22.3	%

	Net investment income	113,685			91,663			24.0	%	238,965			185,231			29.0	%
	Investment income from other investments	3,358			5,465			(38.6	)%	28,670			18,870			51.9	%
	Net realized investment losses	4,656			9,777			(52.4	)%	4,356			20,706			(79.0	)%
	Total return on invested assets [c]	0.0		%	0.4		%	(0.4	)%	1.5		%	0.4		%	1.1	%
	Annualized effective yield of invested assets	5.0		%	4.7		%	0.3	%	5.0		%	4.6		%	0.4	%

[a] Percentages presented are annualized for the period where applicable.

[b] Cash and investments represents the total cash, fixed maturity investments, other investments, accrued interest receivable and net payable for investments purchased.

[c] In calculating total return, we include net investment income, net realized investment gains and losses and the change in unrealized gains and losses generated by our average invested assets.

AXIS Capital Holdings Limited

CONSOLIDATED STATEMENTS OF INCOME - QUARTERLY

	Three months ended
	Q2 2007			Q1 2007			Q4 2006			Q3 2006			Q2 2006			Q2 2005
UNDERWRITING REVENUES
Gross premiums written	$	959,378		$	1,302,622		$	714,006		$	734,910		$	995,380		$	767,293
Premiums ceded	(204,036		)	(163,265		)	(143,800		)	(128,997		)	(174,648		)	(151,497		)
Net premiums written	755,342			1,139,357			570,206			605,913			820,732			615,796

Gross premiums earned	876,640			852,003			865,748			858,310			837,456			778,597
Ceded premiums amortized	(182,699		)	(166,699		)	(176,951		)	(165,530		)	(158,357		)	(154,184		)
Net premiums earned	693,941			685,304			688,797			692,780			679,099			624,413
Other insurance related income	693			1,940			1,027			804			438			(5,451		)
Total underwriting revenues	694,634			687,244			689,824			693,584			679,537			618,962

UNDERWRITING EXPENSES
Net losses and loss expenses	358,723			392,797			329,257			365,958			371,982			322,853
Acquisition costs	95,745			98,139			91,808			103,615			101,832			85,471
General and administrative expenses	54,390			50,266			71,128			48,303			46,374			42,739
Total underwriting expenses	508,858			541,202			492,193			517,876			520,188			451,063
UNDERWRITING INCOME	185,776			146,042			197,631			175,708			159,349			167,899

OTHER OPERATING REVENUE (EXPENSES)
Net investment income	113,685			125,280			123,082			98,787			91,663			58,001
Net realized (losses) gains on investments	(4,656		)	301			(3,274		)	(1,722		)	(9,777		)	1,831
Interest expense	(14,169		)	(15,144		)	(8,315		)	(8,239		)	(8,315		)	(7,818		)
Total other operating revenue	94,860			110,437			111,493			88,826			73,571			52,014

OTHER (EXPENSES) REVENUE
Net foreign exchange gains (losses)	6,883			2,391			7,078			(2,738		)	18,901			(27,226		)
Corporate expenses [a]	(14,184		)	(12,340		)	(15,730		)	(20,167		)	(11,283		)	(14,057		)
Total other (expenses) revenue	(7,301		)	(9,949		)	(8,652		)	(22,905		)	7,618			(41,283		)

INCOME BEFORE INCOME TAXES	273,335			246,530			300,472			241,629			240,538			178,630
Income tax expense	(12,519		)	(9,747		)	(10,302		)	(6,181		)	(7,912		)	(5,785		)
NET INCOME	$	260,816		$	236,783		$	290,170		$	235,448		$	232,626		$	172,845
Preferred share dividends	(9,226		)	(9,204		)	(9,212		)	(9,226		)	(9,226		)	—
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	251,590		$	227,579		$	280,958		$	226,222		$	223,400		$	172,845
COMPREHENSIVE INCOME	$	176,248		$	259,296		$	300,205		$	347,354		$	200,285		$	221,984

KEY RATIOS/PER COMMON SHARE DATA

Net loss and loss expense ratio	51.7		%	57.3		%	47.8		%	52.8		%	54.8		%	51.7		%
Acquisition cost ratio	13.8		%	14.3		%	13.3		%	15.0		%	15.0		%	13.7		%
General and administrative expense ratio [a]	9.9		%	9.1		%	12.6		%	9.9		%	8.5		%	9.1		%
Combined ratio	75.4		%	80.7		%	73.7		%	77.7		%	78.3		%	74.5		%
Weighted average basic shares outstanding	149,027			150,433			150,006			149,884			149,765			140,567
Weighted average diluted shares outstanding	166,320			166,035			165,986			164,701			163,325			153,638
Basic earnings per common share	$	1.69		$	1.51		$	1.87		$	1.51		$	1.49		$	1.23
Diluted earnings per common share	$	1.51		$	1.37		$	1.69		$	1.37		$	1.37		$	1.13

ROACE [b]	24.1		%	22.6		%	29.8		%	26.0		%	27.6		%	22.6		%

[a] Corporate expenses are included in the calculation of the general and administrative expense ratio.

[b] Percentages presented are annualized for the period.

AXIS Capital Holdings Limited

CONSOLIDATED STATEMENTS OF INCOME - YTD

	Six months ended									Year ended
	June 30, 2007			June 30, 2006			June 30, 2005			December 31, 2006			December 31, 2005
UNDERWRITING REVENUES
Gross premiums written	$	2,262,001		$	2,160,120		$	1,965,992		$	3,609,036		$	3,393,885
Premiums ceded	(367,301		)	(347,060		)	(288,125		)	(619,857		)	(734,896		)
Net premiums written	1,894,700			1,813,060			1,677,867			2,989,179			2,658,989

Gross premiums earned	1,728,644			1,629,826			1,539,690			3,353,884			3,278,266
Ceded premiums amortized	(349,399		)	(317,133		)	(289,687		)	(659,614		)	(724,583		)
Net premiums earned	1,379,245			1,312,693			1,250,003			2,694,270			2,553,683
Other insurance related income (loss)	2,633			1,062			(5,519		)	2,893			(5,085		)
Total underwriting revenues	1,381,878			1,313,755			1,244,484			2,697,163			2,548,598

UNDERWRITING EXPENSES
Net losses and loss expenses	751,521			730,640			667,143			1,425,855			2,051,129
Acquisition costs	193,884			191,536			176,772			386,959			337,383
General and administrative expenses	104,656			90,143			85,203			209,574			166,113
Total underwriting expenses	1,050,061			1,012,319			929,118			2,022,388			2,554,625
UNDERWRITING INCOME (LOSS)	331,817			301,436			315,366			674,775			(6,027		)

OTHER OPERATING REVENUE (EXPENSES)
Net investment income	238,965			185,231			110,759			407,100			256,712
Net realized (losses) gains on investments	(4,356		)	(20,706		)	438			(25,702		)	(16,912		)
Interest expense	(29,312		)	(16,400		)	(15,897		)	(32,954		)	(32,447		)
Total other operating revenue (expenses)	205,297			148,125			95,300			348,444			207,353

OTHER REVENUE (EXPENSES)
Net foreign exchange gains (losses)	9,274			28,165			(50,644		)	32,505			(54,090		)
Corporate expenses	(26,524		)	(22,925		)	(25,895		)	(58,822		)	(46,729		)
Total other revenue (expenses)	(17,250		)	5,240			(76,539		)	(26,317		)	(100,819		)

INCOME BEFORE INCOME TAXES	519,864			454,801			334,127			996,902			100,507
Income tax expense	(22,266		)	(17,359		)	(9,483		)	(33,842		)	(6,067		)
NET INCOME	$	497,598		$	437,442		$	324,644		$	963,060		$	94,440
Preferred share dividends	(18,430		)	(18,857		)	—			(37,925		)	(4,379		)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	479,168		$	418,585		$	324,644		$	925,765		$	90,061
COMPREHENSIVE INCOME	$	435,543		$	348,661		$	311,474		$	996,220		$	3,687

KEY RATIOS/PER SHARE DATA

Net loss and loss expense ratio	54.5		%	55.7		%	53.4		%	52.9		%	80.3		%
Acquisition cost ratio	14.1		%	14.6		%	14.1		%	14.4		%	13.2		%
General and administrative expense ratio [a]	9.5		%	8.6		%	8.9		%	10.0		%	8.3		%
Combined ratio	78.1		%	78.9		%	76.4		%	77.3		%	101.8		%
Weighted average basic shares outstanding	149,727			149,541			143,584			149,745			143,226
Weighted average diluted shares outstanding	166,175			163,442			157,014			164,394			157,524
Basic earnings per share	$	3.20		$	2.80		$	2.26		$	6.18		$	0.63
Diluted earnings per share	$	2.88		$	2.56		$	2.07		$	5.63		$	0.57
ROAE, net income [b]	23.6		%	26.4		%	20.3		%	26.7		%	2.9		%

[a] Corporate expenses are included in the calculation of the general and administrative expense ratio.

[b] Percentages presented are annualized for the period.

AXIS Capital Holdings Limited

CONSOLIDATED SEGMENT DATA

	Three months ended June 30, 2007									Six Months ended June 30, 2007
	Insurance			Reinsurance			Total			Insurance			Reinsurance			Total
UNDERWRITING REVENUES
Gross premiums written	$	612,671		$	346,707		$	959,378		$	1,049,159		$	1,212,842		$	2,262,001
Net premiums written	406,885			348,457			755,342			688,931			1,205,769			1,894,700

Gross premiums earned	479,874			396,766			876,640			958,716			769,928			1,728,644
Ceded premiums amortized	(181,629		)	(1,070		)	(182,699		)	(345,538		)	(3,861		)	(349,399		)
Net premiums earned	298,245			395,696			693,941			613,177			766,068			1,379,245
Other insurance related income	360			333			693			1,127			1,506			2,633
Total underwriting revenues	298,605			396,029			694,634			614,304			767,574			1,381,878

UNDERWRITING EXPENSES
Net losses and loss expenses	133,568			225,155			358,723			319,520			432,001			751,521
Acquisition costs	27,442			68,303			95,745			62,791			131,093			193,884
General and administrative expenses	39,167			15,223			54,390			74,690			29,966			104,656
Total underwriting expenses	200,177			308,681			508,858			457,001			593,060			1,050,061

UNDERWRITING INCOME	$	98,428		$	87,348		$	185,776		$	157,303		$	174,514		$	331,817

KEY RATIOS
Net loss and loss expense ratio	44.8		%	56.9		%	51.7		%	52.1		%	56.4		%	54.5		%
Acquisition cost ratio	9.2		%	17.3		%	13.8		%	10.2		%	17.1		%	14.1		%
General and administrative expense ratio	13.1		%	3.8		%	7.8		%	12.2		%	3.9		%	7.6		%
Corporate expense ratio							2.1		%							1.9		%
Combined ratio	67.1		%	78.0		%	75.4		%	74.5		%	77.4		%	78.1		%

AXIS Capital Holdings Limited

GROSS PREMIUM WRITTEN BY SEGMENT BY LINE OF BUSINESS

	Three months ended
	Q2 2007		Q1 2007		Q4 2006		Q3 2006		Q2 2006		Q1 2006		Q2 2005
INSURANCE SEGMENT

Property	$	223,884	$	138,396	$	166,109	$	145,334	$	201,330	$	128,471	$	163,256
Marine	70,183		77,892		32,790		54,904		81,326		73,739		44,298
Terrorism	17,082		12,787		19,751		18,454		27,214		16,420		23,165
Aviation & aerospace	10,940		16,140		33,639		15,384		25,175		39,194		34,911
Political risk	56,720		28,977		88,877		35,955		70,747		14,050		36,491
Professional lines	161,371		97,325		135,947		112,469		151,557		93,780		129,392
Liability	67,627		53,483		67,986		57,559		67,265		61,163		79,509
Accident & health	4,864		11,488		5,597		13,057		4,991		10,233		1,960

TOTAL INSURANCE SEGMENT	$	612,671	$	436,488	$	550,696	$	453,116	$	629,605	$	437,050	$	512,982

REINSURANCE SEGMENT
Catastrophe	$	142,602	$	244,125	$	17,404	$	100,759	$	118,432	$	227,501	$	94,277
Property	78,817		147,159		79,096		53,933		103,953		101,580		76,914
Professional lines	59,060		88,426		48,214		49,431		83,348		93,442		38,779
Credit and bond	8,789		104,119		3,284		1,889		3,008		89,483		7,420
Motor	9,080		81,131		2,961		5,896		7,985		67,329		1,576
Liability	30,973		145,929		6,996		48,640		35,863		113,120		24,691
Other	17,386		55,245		5,355		21,246		13,186		35,235		10,654

TOTAL REINSURANCE SEGMENT	$	346,707	$	866,134	$	163,310	$	281,794	$	365,775	$	727,690	$	254,311

TOTAL	$	959,378	$	1,302,622	$	714,006	$	734,910	$	995,380	$	1,164,740	$	767,293

AXIS Capital Holdings Limited

INSURANCE SEGMENT DATA

	Three months ended
	Q2 2007			Q1 2007			Q4 2006			Q3 2006			Q2 2006			Q2 2005
UNDERWRITING REVENUES
Gross premiums written	$	612,671		$	436,488		$	550,696		$	453,116		$	629,605		$	512,982
Net premiums written	406,885			282,046			406,605			323,618			455,026			365,103
Gross premiums earned	$	479,874		$	478,842		$	507,546		$	490,150		$	479,769		$	463,620
Ceded premiums amortized	(181,629		)	(163,910		)	(175,771		)	(162,449		)	(156,198		)	(150,582		)
Net premiums earned	298,245			314,932			331,775			327,701			323,571			313,038
Other insurance related income / (loss)	360			767			284			412			438			(5,301		)
Total underwriting revenues	298,605			315,699			332,059			328,113			324,009			307,737

UNDERWRITING EXPENSES
Net losses and loss expenses	133,568			185,952			150,449			182,280			147,785			148,697
Acquisition costs	27,442			35,348			34,996			40,796			38,754			30,150
General and administrative expenses	39,167			35,523			51,847			36,141			34,873			30,409
Total underwriting expenses	200,177			256,823			237,292			259,217			221,412			209,256

UNDERWRITING INCOME	$	98,428		$	58,876		$	94,767		$	68,896		$	102,597		$	98,481

KEY RATIOS
Net loss and loss expense ratio	44.8		%	59.0		%	45.3		%	55.6		%	45.7		%	47.5		%
Acquisition cost ratio	9.2		%	11.2		%	10.5		%	12.4		%	12.0		%	9.6		%
General and administrative expense ratio	13.1		%	11.3		%	15.6		%	11.0		%	10.8		%	9.7		%
Combined ratio	67.1		%	81.5		%	71.4		%	79.0		%	68.5		%	66.8		%

AXIS Capital Holdings Limited

REINSURANCE SEGMENT DATA

	Three months ended
	Q2 2007			Q1 2007			Q4 2006			Q3 2006			Q2 2006			Q2 2005
UNDERWRITING REVENUES
Gross premiums written	$	346,707		$	866,134		$	163,310		$	281,794		$	365,775		$	254,311
Net premiums written	348,457			857,311			163,601			282,295			365,706			250,693
Gross premiums earned	$	396,766		$	373,161		$	358,202		$	368,160		$	357,687		$	314,977
Ceded premiums amortized	(1,070		)	(2,789		)	(1,180		)	(3,081		)	(2,159		)	(3,602		)
Net premiums earned	395,696			370,372			357,022			365,079			355,528			311,375
Other insurance related income / (loss)	333			1,173			743			392			—			(150		)
Total underwriting revenues	396,029			371,545			357,765			365,471			355,528			311,225

UNDERWRITING EXPENSES
Net losses and loss expenses	225,155			206,845			178,808			183,678			224,197			174,156
Acquisition costs	68,303			62,791			56,812			62,819			63,078			55,321
General and administrative expenses	15,223			14,743			19,281			12,162			11,501			12,330
Total underwriting expenses	308,681			284,379			254,901			258,659			298,776			241,807

UNDERWRITING INCOME	$	87,348		$	87,166		$	102,864		$	106,812		$	56,752		$	69,418

KEY RATIOS
Net loss and loss expense ratio	56.9		%	55.8		%	50.1		%	50.3		%	63.1		%	55.9		%
Acquisition cost ratio	17.3		%	17.0		%	15.9		%	17.2		%	17.7		%	17.8		%
General and administrative expense ratio	3.8		%	4.0		%	5.4		%	3.3		%	3.2		%	4.0		%
Combined ratio	78.0		%	76.8		%	71.4		%	70.8		%	84.0		%	77.7		%

AXIS Capital Holdings Limited

CONSOLIDATED BALANCE SHEETS

	Q2 2007			Q1 2007			Q4 2006			Q3 2006			Q2 2006
ASSETS
Investments:
Fixed maturity investments, available for sale, at fair value	$	7,219,836		$	6,805,333		$	6,532,723		$	6,523,009		$	6,009,431
Other investments, at fair value	1,106,409			1,094,828			1,130,664			714,381			627,721
Total investments	8,326,245			7,900,161			7,663,387			7,237,390			6,637,152
Cash and cash equivalents	1,837,675			2,090,834			1,989,287			1,640,914			1,615,448
Accrued interest receivable	82,151			68,056			76,967			65,235			68,381
Insurance and reinsurance premium balances receivable	1,604,193			1,507,855			1,125,822			1,233,125			1,409,988
Reinsurance recoverable balances	1,217,807			1,307,609			1,293,660			1,315,395			1,271,452
Reinsurance recoverable balances on paid losses	119,904			94,284			65,494			49,287			121,091
Deferred acquisition costs	346,318			345,904			251,799			272,110			290,627
Prepaid reinsurance premiums	259,474			238,359			241,821			274,972			309,881
Securities lending collateral	916,388			895,832			794,149			1,010,846			909,807
Goodwill and intangible assets	62,511			28,786			29,041			34,543			35,500
Other assets	156,308			134,757			133,860			120,385			129,723
TOTAL ASSETS	$	14,928,974		$	14,612,437		$	13,665,287		$	13,254,202		$	12,799,050

LIABILITIES
Reserve for losses and loss expenses	$	5,360,064		$	5,186,191		$	5,015,113		$	4,995,074		$	4,835,161
Unearned premiums	2,548,743			2,466,213			2,015,556			2,167,364			2,289,140
Insurance and reinsurance balances payable	250,248			286,068			294,374			287,445			333,547
Securities lending payable	914,466			893,692			791,744			1,006,806			904,974
Senior notes	499,207			499,180			499,144			499,127			499,100
Liability under repurchase agreement	400,000			400,000			400,000			—			—
Net payable for investments purchased	120,505			92,608			62,185			47,781			43,012
Other liabilities	141,859			146,738			174,524			109,656			75,393
TOTAL LIABILITIES	10,235,092			9,970,690			9,252,640			9,113,253			8,980,327

SHAREHOLDERS’ EQUITY
Series A and B preferred shares	500,000			500,000			500,000			500,000			500,000
Common shares	1,849			1,880			1,875			1,875			1,873
Additional paid-in capital	1,850,047			1,936,518			1,929,406			1,923,169			1,913,566
Accumulated other comprehensive loss	(106,693		)	(22,125		)	(44,638		)	(54,673		)	(166,580		)
Retained earnings	2,448,711			2,225,474			2,026,004			1,770,578			1,569,864
Treasury shares, at cost	(32		)	—			—			—			—
TOTAL SHAREHOLDERS’ EQUITY	4,693,882			4,641,747			4,412,647			4,140,949			3,818,723
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	14,928,974		$	14,612,437		$	13,665,287		$	13,254,202		$	12,799,050

Book value per common share	$	28.35		$	27.54		$	26.09		$	24.27		$	22.15

Debt (Senior notes) to total capitalization	9.6		%	9.7		%	10.2		%	10.8		%	11.6		%

Debt plus preferred shares to total capitalization	19.2		%	19.4		%	20.3		%	21.5		%	23.1		%

AXIS Capital Holdings Limited

INVESTMENT PORTFOLIO

As of June 30, 2007

	Amortized		Unrealized		Unrealized
TYPE OF INVESTMENT	Cost		Gains		Losses		Fair Value		Percentage
U.S. government and agency securities	$	1,246,716	$	586	($22,402	)	$	1,224,900	12.1	%
Non U.S. government securities	160,309		10,592		(5,046	)	165,855		1.6	%
Corporate debt securities	1,582,198		11,085		(15,859	)	1,577,424		15.6	%
Mortgage-backed securities	3,179,775		1,835		(76,428	)	3,105,182		30.7	%
Asset-backed securities	573,431		121		(2,599	)	570,953		5.6	%
Municipals	507,648		97		(4,715	)	503,030		5.0	%
Mortgage derivatives [a]	72,582		152		(242	)	72,492		0.7	%
Total Fixed Maturities	$	7,322,659	$	24,468	($127,291	)	$	7,219,836	71.3	%
Cash, net of unsettled trades	727,067		—		—		727,067		7.2	%
Total Invested Assets	$	8,049,726	$	24,468	($127,291	)	$	7,946,903	78.5	%
Operating Cash Balances	990,103		—		—		990,103		9.8	%
Total Cash and Fixed Maturities	$	9,039,829	$	24,468	($127,291	)	$	8,937,006	88.3	%
Other Investments							1,106,409		10.9	%
Accrued interest receivable							82,151		0.8	%
Total Cash and Investments							$	10,125,566	100.0	%

CREDIT QUALITY OF FIXED MATURITIES	Fair Value		Percentage
AAA	$	5,439,652	75.3	%
AA	497,141		6.9	%
A	584,205		8.1	%
BBB	698,838		9.7	%
Total	$	7,219,836	100.0	%

MATURITY PROFILE OF FIXED MATURITIES	Fair Value		Percentage
Within one year	$	539,848	7.5	%
From one to five years	1,846,621		25.6	%
From five to ten years	770,709		10.7	%
Above ten years	314,031		4.3	%
Asset-backed and mortgage-backed securities	3,748,627		51.9	%
Total	$	7,219,836	100.0	%

OTHER INVESTMENTS	Cost		Fair Value		Percentage
Life settlement contracts	$	377,767	$	374,925	33.9	%
Hedge funds	210,000		250,290		22.6	%
Collateralized loan obligations	252,667		226,840		20.5	%
Credit funds	142,375		169,435		15.3	%
Short duration high yield fund	65,000		74,675		6.7	%
Other	10,850		10,244		1.0	%
Total	$	1,058,659	$	1,106,409	100.0	%

[a] Reflects securities classified as mortgage derivatives under FAS 149. Unrealized gains/losses on these securities are recorded as realized gains/losses on the statement of operations.

AXIS Capital Holdings Limited

INVESTMENT PORTFOLIO COMPOSITION

	Three months ended
	Q2 2007		Q1 2007		Q4 2006		Q3 2006		Q2 2006		Q1 2006
TYPE OF INVESTMENT	Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %
U.S. government and agency securities	12.1	%	12.0	%	12.2	%	14.6	%	16.7	%	18.5	%
Non U.S. government securities	1.6	%	1.7	%	1.6	%	1.7	%	1.7	%	1.2	%
Corporate debt securities	15.6	%	14.7	%	14.7	%	14.3	%	15.2	%	15.9	%
Mortgage-backed securities	30.7	%	30.0	%	29.7	%	31.0	%	29.5	%	28.8	%
Asset-backed securities	5.6	%	5.9	%	5.6	%	5.3	%	4.5	%	4.4	%
Municipals	5.0	%	3.5	%	3.9	%	6.0	%	4.4	%	4.8	%
Mortgage derivatives	0.7	%	0.5	%	—		0.3	%	0.5	%	2.2	%
Total Fixed Maturities	71.3	%	68.3	%	67.7	%	73.2	%	72.5	%	75.8	%
Cash, net of unsettled trades	7.2	%	9.4	%	8.4	%	3.7	%	2.0	%	1.7	%
Total Invested Assets	78.5	%	77.7	%	76.1	%	76.9	%	74.5	%	77.5	%
Operating Cash Balances	9.8	%	10.7	%	11.5	%	14.2	%	17.0	%	14.9	%
Total Cash and Fixed Maturities	88.3	%	88.4	%	87.6	%	91.1	%	91.5	%	92.4	%
Other Investments	10.9	%	11.0	%	11.7	%	8.0	%	7.6	%	6.8	%
Accrued interest receivable	0.8	%	0.6	%	0.7	%	0.9	%	0.9	%	0.8	%
Total Cash and Investments	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

CREDIT QUALITY OF FIXED MATURITIES	Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %
AAA	75.3	%	76.8	%	79.3	%	77.6	%	78.2	%	78.2	%
AA	6.9	%	5.5	%	4.8	%	4.6	%	4.5	%	3.3	%
A	8.1	%	6.9	%	7.3	%	9.7	%	8.8	%	9.8	%
BBB	9.7	%	10.8	%	8.6	%	8.1	%	8.5	%	8.7	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

MATURITY PROFILE OF FIXED MATURITIES	Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %
Within one year	7.5	%	7.3	%	8.0	%	5.7	%	5.6	%	6.5	%
From one to five years	25.6	%	25.6	%	24.6	%	26.8	%	30.7	%	31.3	%
From five to ten years	10.7	%	11.6	%	13.0	%	13.2	%	13.5	%	12.3	%
Above ten years	4.3	%	2.1	%	2.2	%	4.3	%	2.7	%	3.3	%
Asset-backed and mortgage-backed securities	51.9	%	53.4	%	52.2	%	50.0	%	47.5	%	46.6	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

PORTFOLIO CHARACTERISTICS OF INVESTED ASSETS	As of or for the three months ended
PORTFOLIO CHARACTERISTICS OF INVESTED ASSETS	Q2 2007		Q1 2007		Q4 2006		Q3 2006		Q2 2006		Q1 2006
Annualized effective yield of invested assets	5.0	%	4.9	%	4.8	%	4.8	%	4.7	%	5.1	%
Yield to maturity of invested assets	5.5	%	5.5	%	5.1	%	5.1	%	5.4	%	5.1	%
Average duration of invested assets	3.2 yrs		3.1 yrs		3.0 yrs		3.1 yrs		3.3 yrs		3.2 yrs
Average credit quality of invested assets	AA+		AA+		AA+		AA+		AA+		AAA

AXIS Capital Holdings Limited

INVESTMENT PERFORMANCE

	Three months ended
	Q2 2007		Q1 2007		Q4 2006		Q3 2006		Q2 2006		Q1 2006

Aggregate AXIS Capital Invested Assets	(0.03	)%	1.50	%	1.26	%	3.03	%	0.38	%	(0.01	)%
Composite Benchmark [a]	(0.18	)%	1.46	%	1.17	%	3.17	%	0.18	%	(0.20	)%
	0.15	%	0.04	%	0.09	%	(0.14	)%	0.20	%	0.19	%
Individual portfolios

Total return liquidity portfolio	0.84	%	1.32	%	1.18	%	1.95	%	0.88	%	0.64	%
Merrill Lynch 1-3 year Treasury Index	0.71	%	1.41	%	0.98	%	1.96	%	0.64	%	0.39	%
	0.13	%	(0.09	)%	0.20	%	(0.01	)%	0.24	%	0.25	%

Total return intermediate duration portfolios	(0.38	)%	1.57	%	1.31	%	3.33	%	0.28	%	(0.17	)%
Customized benchmark [b]	(0.35	)%	1.58	%	1.26	%	3.42	%	0.12	%	(0.26	)%
	(0.03	)%	(0.01	)%	0.05	%	(0.09	)%	0.16	%	0.09	%

Total return long duration portfolios [c]	n/a		n/a		1.49	%	3.88	%	(0.02	)%	(0.59	)%
Customized benchmark [b]	n/a		n/a		1.45	%	3.81	%	(0.08	)%	(0.64	)%
					0.04	%	0.07	%	0.06	%	0.05	%

Total return U.S. combined portfolios	(0.32	)%	1.51	%	1.07	%	3.22	%	0.08	%	(0.06	)%
Customized benchmark [b]	(0.33	)%	1.41	%	1.13	%	3.26	%	0.15	%	(0.18	)%
	0.01	%	0.10	%	(0.06	)%	(0.04	)%	(0.07	)%	0.12	%

Total return Euro portfolio	(0.44	)%	0.59	%	0.22	%	1.67	%	(0.04	)%	(0.59	)%
Merrill Lynch 1-7 year EMU Gov’t Index	(0.46	)%	0.71	%	0.01	%	1.43	%	0.10	%	(0.76	)%
	0.02	%	(0.12	)%	0.21	%	0.24	%	(0.14	)%	0.17	%

[a] The return for the composite benchmark is calculated using the market value weighted average of each individual portfolio’s benchmark.

[b] The benchmarks are customized to reflect the desired duration and composition of the portfolio. Benchmarks may be adjusted frequently.

[c] The assets in the long duration portfolio were transitioned to an intermediate portfolio and measured against the intermediate benchmark as of January 1st, 2007.

AXIS Capital Holdings Limited

Reinsurance Recoverable Analysis

	Three months ended
	Q2 2007			Q1 2007			Q4 2006			Q3 2006			Q2 2006			Q2 2005

Reinsurance recoverable on paid losses and loss expenses:
Insurance	104,913			75,233			46,442			27,065			85,473			10,233
Reinsurance	14,991			19,051			19,052			22,222			35,619			28,626
Total	$	119,904		$	94,284		$	65,494		$	49,287		$	121,092		$	38,859

Reinsurance recoverable on unpaid losses and loss expenses: OSLR
Insurance	409,259			586,485			661,211			677,279			703,357			221,045
Reinsurance	—			—			—			—			—			—
Total	$	409,259		$	586,485		$	661,211		$	677,279		$	703,357		$	221,045

Reinsurance recoverable on unpaid losses and loss expenses: IBNR
Insurance	819,925			734,041			647,022			635,202			565,697			390,305
Reinsurance	22,621			21,081			19,425			18,137			17,620			5,733
Total	$	842,546		$	755,122		$	666,447		$	653,339		$	583,317		$	396,038

Provision against reinsurance recoverables:
Insurance	(19,944		)	(19,944		)	(19,944		)	(794		)	(2,604		)	(7,917		)
Reinsurance	(14,054		)	(14,054		)	(14,054		)	(14,429		)	(12,619		)	—
Total	$	(33,998	)	$	(33,998	)	$	(33,998	)	$	(15,223	)	$	(15,223	)	$	(7,917	)

Net reinsurance recoverables:
Insurance	1,314,153			1,375,815			1,334,731			1,338,752			1,351,923			613,666
Reinsurance	23,558			26,078			24,423			25,930			40,620			34,359
Total	$	1,337,711		$	1,401,893		$	1,359,154		$	1,364,682		$	1,392,543		$	648,025

AXIS Capital Holdings Limited

Reinsurance Recoverable Analysis

Consolidated Reinsurance Recoverable	June 30, 2007
						Gross				Provision			Provision
						Recoverable				against			against Reinsurance
	Gross					Net of				Reinsurance			Recoverable as %		Net
Categories	Recoverable		Collateral			Collateral		% of Total		Recoverables			of Gross Recoverable		Recoverable
Top 10 reinsurers	$	828,574	$	(72,989	)	$	755,585	61.5	%	$	(22,796	)	2.8	%	$	805,778
Other reinsurers balances > $20 million	166,717		(4,637		)	$	162,080	13.2	%	(1,000		)	0.6	%	$	165,717
Other reinsurers balances < $20 million	376,418		(65,546		)	$	310,872	25.3	%	(10,202		)	2.7	%	$	366,216
Total	$	1,371,709	$	(143,173	)	$	1,228,536	100.0	%	$	(33,998	)	6.1	%	$	1,337,711

At June 30, 2007, 95.6% (December 31, 2006: 96.0%) of the reinsurers were rated the equivalent of A- or better by internationally recognised rating agencies.

Top 10 Reinsurers (net of collateral)	% of Total
Swiss Reinsurance America Corporation	15.9	%
Transatlantic Reinsurance Co.	8.7	%
Partner Reinsurance Co of US	8.0	%
XL Reinsurance America Inc	7.6	%
Hannover Rueckversicherung AG	4.3	%
Berkley Insurance Company	4.2	%
Lloyd’s of London	4.1	%
GE Frankona Rueckversicherungs Aktiengesellschaft	4.1	%
Endurance Reinsurance Corporation of America	2.4	%
General Reinsurance Corporation	2.2	%
	61.5	%

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

	Three months ended June 30, 2007									Six months ended June 30, 2007
	Gross			Recoveries			Net			Gross			Recoveries			Net

Reserve for losses and loss expenses
Beginning of period	$	5,186,191		$	(1,401,893	)	3,784,298			$	5,015,113		$	(1,359,154	)	3,655,959

Incurred	467,313			(108,590		)	358,723			947,578			(196,057		)	751,521

Paid	(301,817		)	172,772			(129,045		)	(614,161		)	217,500			(396,661		)

Foreign exchange loss	8,377			—			8,377			11,534			—			11,534

End of period [a]	$	5,360,064		$	(1,337,711	)	$	4,022,353		$	5,360,064		$	(1,337,711	)	$	4,022,353

Paid to incurred percentage	64.6		%	159.1		%	36.0		%	64.8		%	110.9		%	52.8		%

[a] As at June 30, 2007, the gross reserve for losses and loss expenses included IBNR of $3,721.5 million, or 69.4%, of total gross reserves for loss and loss expenses. As at December 31, 2006, the comparable amount was $3,183.3 million, or 63.5%.

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS BY SEGMENT TOTAL

	Three months ended June 30, 2007									Six months ended June 30, 2007
	Insurance			Reinsurance			Total			Insurance			Reinsurance			Total

Gross losses paid	$	184,760		$	117,057		$	301,817		$	366,615		$	247,546		$	614,161
Reinsurance recoveries received	(170,522		)	(2,250		)	(172,772		)	(215,250		)	(2,250		)	(217,500		)

Net losses paid	14,238			114,807			129,045			151,365			245,296			396,661

Change in:
Reported case reserves	(75,880		)	3,854			(72,026		)	(157,208		)	(47,116		)	(204,324		)
IBNR	133,548			103,974			237,522			304,785			232,956			537,741
Reinsurance recoveries on unpaid loss and loss expense reserves	61,662			2,520			64,182			20,578			865			21,443

TOTAL NET INCURRED LOSSES AND LOSS EXPENSES	$	133,568		$	225,155		$	358,723		$	319,520		$	432,001		$	751,521

Gross reserve for losses and loss expenses	$	3,319,952		$	2,040,112		$	5,360,064		$	3,319,952		$	2,040,112		$	5,360,064

Prior years favorable reserve development	$	55,814		$	41,006		$	96,820		$	84,541		$	78,243		$	162,784

Key Ratios

Net paid to net incurred percentage	10.7		%	51.0		%	36.0		%	47.4		%	56.8		%	52.8		%

Net paid losses / Net premiums earned	4.8		%	29.0		%	18.5		%	24.7		%	32.0		%	28.8		%
Change in net loss and loss expense reserves / Net premiums earned	40.0		%	27.9		%	33.1		%	27.4		%	24.4		%	25.7		%
Net loss and loss expense ratio	44.8		%	56.9		%	51.7		%	52.1		%	56.4		%	54.5		%

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS
INSURANCE

	Three months ended
	Q2 2007			Q1 2007			Q4 2006			Q3 2006			Q2 2006

Gross losses paid	$	184,760		$	181,854		$	210,172		$	163,642		$	263,846
Reinsurance recoveries received	(170,522		)	(44,729		)	(80,865		)	(117,506		)	(100,001		)

Net losses paid	14,238			137,125			129,307			46,136			163,845

Change in:
Reported case reserves	(75,880		)	(81,327		)	(14,096		)	(30,212		)	(84,982		)
IBNR	133,548			171,237			31,217			153,183			24,336
Reinsurance recoveries on unpaid loss and loss expense reserves	61,662			(41,084		)	4,021			13,173			44,586

TOTAL NET INCURRED LOSSES AND LOSS EXPENSES	$	133,568		$	185,951		$	150,449		$	182,280		$	147,785

Gross reserve for losses and loss expenses	$	3,319,952		$	3,260,711		$	3,171,746		$	3,152,082		$	3,028,932

Prior years favorable reserve development	$	55,814		$	28,727		$	15,459		$	27,940		$	58,186

Key Ratios

Net paid to net incurred percentage	10.7		%	73.7		%	85.9		%	25.3		%	110.9		%

Net paid losses / Net premiums earned	4.8		%	43.5		%	39.0		%	14.1		%	50.6		%
Change in Net loss and loss expense reserves / Net premiums earned	40.0		%	15.5		%	6.3		%	41.5		%	-4.9		%
Net loss and loss expense ratio	44.8		%	59.0		%	45.3		%	55.6		%	45.7		%

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS
REINSURANCE

	Three months ended
	Q2 2007			Q1 2007			Q4 2006			Q3 2006			Q2 2006

Gross losses paid	$	117,057		$	130,490		$	189,958		$	147,766		$	155,835
Reinsurance recoveries received	(2,250		)	—			(2,376		)	(15,000		)	(41,750		)

Net losses paid	114,807			$	130,490		187,582			132,766			114,085

Change in:
Reported case reserves	3,854			(50,972		)	(94,506		)	(23,293		)	(21,107		)
IBNR	103,974			128,983			84,225			59,517			92,842
Reinsurance recoveries on unpaid loss and loss expense reserves	2,520			(1,655		)	1,507			14,688			38,377

TOTAL NET INCURRED LOSSES AND LOSS EXPENSES	$	225,155		$	206,846		$	178,808		$	183,678		$	224,197

Reserve for losses and loss expenses	$	2,040,112		$	1,925,480		$	1,843,367		$	1,842,992		$	1,806,229

Prior years favorable reserve development	$	41,006		$	37,237		$	18,971		$	28,626		$	6,284

Key Ratios

Net paid to net incurred percentage	51.0		%	63.1		%	104.9		%	72.3		%	50.9		%

Net paid losses / Net premiums earned	29.0		%	35.2		%	52.5		%	36.4		%	32.1		%
Change in Net loss and loss expense reserves / Net premiums earned	27.9		%	20.6		%	(2.4		)%	13.9		%	31.0		%
Net loss and loss expense ratio	56.9		%	55.8		%	50.1		%	50.3		%	63.1		%

AXIS Capital Holdings Limited

EARNINGS PER COMMON SHARE INFORMATION - AS REPORTED, GAAP

	Three months ended June 30,				Six months ended June 30,
	2007		2006		2007		2006

Net income available to common shareholders	$	251,590	$	223,400	$	479,168	$	418,585

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic weighted average common shares outstanding	149,027		149,765		149,727		149,541

Dilutive share equivalents:
Warrants	13,304		11,006		12,844		11,320
Options	2,484		1,780		2,339		1,906
Restricted stock	1,505		774		1,265		675
Diluted weighted average common shares outstanding	166,320		163,325		166,175		163,442

EARNINGS PER COMMON SHARE
Basic	$	1.69	$	1.49	$	3.20	$	2.80
Diluted	$	1.51	$	1.37	$	2.88	$	2.56

AXIS Capital Holdings Limited

NON-GAAP FINANCIAL MEASURE RECONCILIATION
DILUTED BOOK VALUE PER COMMON SHARE - IF CONVERTED METHOD

	As at
	June 30, 2007			December 31, 2006

IF CONVERTED METHOD [a]

Shareholders’ equity	$	4,693,882		$	4,412,647
Less: preferred equity	(500,000		)	(500,000		)
Common shareholders’ equity	4,193,882			3,912,647

Basic common shares outstanding	147,924			149,982

Book value per common share	$	28.35		$	26.09

Diluted book value on an “if converted basis”:
Common shareholders’ equity	$	4,193,882		$	3,912,647
add in:
proceeds on exercise of options	90,012			96,485
proceeds on exercise of warrants	244,275			244,363
Adjusted shareholders’ equity	4,528,169			4,253,495

If converted diluted shares outstanding
Common shares outstanding	147,924			149,982
add in:
exercise of warrants [b]	19,651			19,644
exercise of options [c]	4,855			5,147
vesting of restricted stock	3,328			2,229
vested phantom stock units	53			46
Diluted common shares outstanding	175,811			177,048

Diluted book value per common share	$	25.76		$	24.02

Diluted book value, excluding accumulated other comprehensive loss

If converted common shareholders’ equity	$	4,528,169		$	4,251,821
Add: accumulated other comprehensive loss	106,693			44,638
If converted shareholders’ equity excluding accumulated other comprehensive loss	$	4,634,862		$	4,296,459

Diluted common shares outstanding	175,811			177,048
Diluted book value excluding accumulated other comprehensive loss - “if converted method”	$	26.36		$	24.27

[a] This method assumes that proceeds received upon exercise of options and warrants will be retained by the Company and the resulting common shares from exercise will remain outstanding.

[b] The weighted average exercise price per share at June 30, 2007 and December 31, 2006 was $12.43 and $12.44 respectively.

[c] The weighted average exercise price per share at June 30, 2007 and December 31, 2006 was $18.54 and $18.75, respectively..

AXIS Capital Holdings Limited

DILUTED BOOK VALUE PER COMMON SHARE - TREASURY STOCK METHOD

	As at
	June 30, 2007			December 31, 2006

TREASURY STOCK METHOD [a]
Closing price per share	$	40.65		$	33.37

Shareholders’ equity	$	4,693,882		$	4,412,647
Less: preferred equity	(500,000		)	(500,000		)
Common shareholders’ equity	$	4,193,882		$	3,912,647

Basic common shares outstanding	147,924			149,982

Book value per common share	$	28.35		$	26.09

Diluted book value on an “treasury stock method”
Common shareholders’ equity	$	4,193,882		$	3,912,647
Basic common shares outstanding	147,924			149,982
add in:
warrants outstanding [b]	19,651			19,644
options outstanding [c]	4,855			5,147
restricted stock outstanding	3,328			2,229
phantom stock units	53			46
less:
warrants bought back via treasury method	(6,009		)	(7,323		)
options bought back via treasury method	(2,214		)	(2,892		)
Diluted common shares outstanding	167,588			166,833

Diluted book value per common share	$	25.02		$	23.45

Diluted book value, excluding accumulated other comprehensive loss

Common shareholders’ equity	4,193,882			3,912,647
Add: accumulated other comprehensive loss	106,693			44,638
Shareholders’ equity excluding accumulated other comprehensive loss	4,300,575			3,957,285

Diluted shares outstanding - “treasury stock method”	167,588			166,833
Diluted book value excluding other accumulated comprehensive loss - “treasury stock method”	$	25.66		$	23.71

[a] This method assumes that proceeds received upon exercise of options and warrants will be used to repurchase the Company’s common shares at the closing market price. Unvested restricted stock is also added to determine the diluted common shares outstanding.

[b] The weighted average exercise price per share at June 30, 2007 and December 31, 2006 was $12.43 and $12.44 respectively.

[c] The weighted average exercise price per share at June 30, 2007 and December 31, 2006 was $18.54 and $18.75, respectively.

AXIS Capital Holdings Limited (AXS) 8-KResults of Operations and Financial Condition