AXIS Capital Holdings Limited 8K Cautionary Statement Regarding Forward-looking Statements | AXS 10 Sep 09

AXIS Capital

Keefe, Bruyette

and Woods

2009 Insurance Conference

New York, NY

David Greenfield, CFO

Exhibit 99.1

Safe Harbor Disclosure

Cautionary Statement Regarding Forward-looking Statements

Statements in this presentation that are not historical facts, including statements regarding our estimates, beliefs, expectations,

intentions, strategies or projections, may be “forward-looking statements” within the meaning of the U.S. federal securities laws,

including the Private Securities Litigation Reform Act of 1995. We intend these forward-looking statements to be covered by the safe

harbor provisions for forward-looking statements in the United States securities laws. In some cases, these statements can be

identified by the use of forward-looking words such as “may,” “should,” “could,” “anticipate,” “estimate,” “expect,” “plan,” “believe,”

“predict,” “potential,” “intend” or similar expressions. Our expectations are not guarantees and are based on currently available

competitive, financial and economic data along with our operating plans. Forward-looking statements contained in this presentation

may include, but are not limited to, information regarding our estimates of losses related to hurricanes and other catastrophes, our

expectations regarding pricing and other market conditions, our growth prospects, the amount of our acquisition costs, the amount of

our net losses and loss reserves, the projected amount of our capital expenditures, management of interest rate and foreign currency

risks, valuations of potential interest rate shifts and foreign currency rate changes and measurements of potential losses in fair market

values of our investment portfolio. Forward-looking statements only reflect our expectations and are not guarantees of performance.

These statements involve risks, uncertainties and assumptions. Actual events or results may differ materially from our expectations.

Important factors that could cause actual events or results to be materially different from our expectations include (1) the occurrence

of natural and man-made disasters, (2) general economic, capital and credit market conditions, (3) actual claims exceeding our loss

reserves, (4) the failure of any of the loss limitation methods we employ, (5) the effects of emerging claims and coverage issues,

(6) the failure of our cedants to adequately evaluate risks, (7) the loss of one or more key executives, (8) a decline in our ratings with

rating agencies, (9) loss of business provided to us by our major brokers, (10) changes in accounting policies or practices,

(11) changes in governmental regulations, (12) increased competition, (13) changes in the political environment of certain countries in

which we operate or underwrite business, (14) fluctuations in interest rates, credit spreads, equity prices and/or currency values,

(15) general economic conditions and (16) other matters that can be found in our filings with the Securities and Exchange

Commission. Forward-looking statements are only as of the date they are made, and we do not undertake any obligation to update or

revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

AXIS Capital –

Overview

Well-diversified leader in the global P&C markets

Established global insurance and reinsurance platforms

Well-diversified mix of specialty and niche businesses

Geographic diversification globally

Disciplined and proven underwriter

Proven steward of capital (generated profitability in every year since inception in 2001)

Conservative reserving practices

Well-managed exposure

Platform built to execute in all phases of (re)insurance cycle

Strong balance sheet with solid financial performance

Conservative balance sheet with total assets of $15.4 billion and total capitalization of

$5.4 billion

High-quality, conservative investment portfolio

Ratings of A+ (S&P - Stable), A2 (Moody’s - Stable) and A (A.M. Best - Stable)

S&P ERM evaluation: Strong

14% compound annual growth in diluted book value and accumulated dividends since

2002

Experienced management, underwriting and claims teams

Consistent and Strong Franchise

Since our inception, our return on equity has averaged 16.5%

Franchise performed strongly in 2008

Despite the third most costly catastrophe on record, an

unprecedented financial market meltdown and continued intense

market competition, we achieved a return on equity of over 8%

Gustav/Ike

–

Excellent risk management

–

Well-understood exposures

AXIS market share less than 1% of estimated $60Bn in 2008

worldwide cat and major property and energy risk losses

–

Particularly important given our franchise risk preference for short-tail

business

Strong start to 2009 despite challenges of the current economic

environment

AXIS Underwriting Has Outperformed

Average P&C Combined Ratio 2004-2008

(1)

Source: Company Reports

Note: Peer Universe includes Bermuda (re)insurers. For companies with less than 5 years of history, average combined ratio

is measured from 2006 through 2008.

(1) P&C Operations only. Includes corporate expenses.

Class of 2005

103.0%

99.3%

99.2%

98.2%

95.9%

95.2%

95.1%

93.8%

92.9%

92.8%

92.5%

92.4%

91.8%

91.6%

89.8%

85.7%

70.3%

69.9%

20%

40%

60%

80%

100%

Company O

Company N

Company M

Company L

Company K

Company J

Average of Peers Excluding Public Bermuda Class of 2005

Company I

Company H

Company G

Company F

Company E

Average of Peers

Company D

Company C

Company B

Company A

GPW by Segment

TTM GPW = $3,490 M

AXIS Re

50%

AXIS

Insurance

50%

AXIS Capital –

Global Specialty Insurer & Reinsurer

Well-positioned to navigate all phases of insurance/reinsurance

cycle with established, diversified presence in both insurance and

reinsurance markets globally

GPW by Source

2008 GPW = $3,390 million

U.S.

44.3%

Europe

30.3%

Bermuda

25.4%

Robust global platform built deliberately at the “right”

time allowed

access to wide array of business supporting execution of soft-

market strategy

Price adequacy varied by line and by geography

Critically, terms and conditions have not deteriorated significantly

We substantially reduced participation in price-inadequate lines

(e.g. aviation)

Price adequacy for natural perils exposure varied by region and we

reduced participation in price-inadequate regions

(e.g. non-U.S. for AXIS Insurance)

We continue to navigate amongst classes within the casualty space

Product structuring

and risk selection

continue to significantly influence

profitability outcome

Reinsurance purchasing key component of soft-market strategy

Soft Market Execution Successful

AXIS Insurance –

GPW and Combined Ratio Since Inception

300

600

900

1,200

1,500

1,800

2,100

2002

2003

2004

2005

2006

2007

2008

TTM

6/30/09

($ in millions)

$794

$1,607

$1,920

Property

Marine

Terrorism

Aviation & Aerospace

$1,875

$2,070

Credit & Political Risk

Professional

Lines

Casualty

Other

$2,039

$1,842

$1,743

Combined Ratio: 62% 68% 81% 93%

72% 69% 81% 84%

Combined Ratio

AXIS Re –

GPW and Combined Ratio Since Inception

300

600

900

1,200

1,500

1,800

2002

2003

2004

2005

2006

2007

2008

TTM

6/30/09

($ in millions)

$667

$1,093

$1,519

(1)

$1,539

Catastrophe

Property

Professional Lines

Credit & Bond

Motor

Liability

Engineering/Other

$314

(1)

Includes KRW reinstatement premiums of $88 million.

(2)

Includes Ike/Gustav reinstatement premiums of $28 million.

$1,551

$1,548

(2)

$1,748

Combined Ratio: 62% 66% 85% 106%

78% 76% 92% 91%

Combined Ratio

AXIS Insurance –

Highlights

TTM 6/30/09 GPW by Line of Business

Total GPW = $1,743 M

Property 30%

Marine 11%

Terrorism 2%

Aviation 4%

Credit & Political

Risk 4%

Professional

Lines 37%

Liability 13%

Other <1%

Net Premiums Earned

Underwriting Profit

Combined Ratio

$1,161 M

127 M

(1)

84.1%

(1)

TTM 6/30/09 Financial Highlights

(1) Includes $93 million in pre-tax net losses related to Hurricane Ike

Pricing is broadly firming with

loss-affected and capital-

consuming lines firming

significantly

Current margins within the

company’s target range

Franchise perception constantly

strengthening

Continue to avoid classes of

business lacking long-term

underwriting return potential

Continuing to build sustainable

competitive advantages

AXIS Insurance –

Strategic Global Presence

North America

•

Nationwide network of 11 offices in U.S.

•

Flexibility to write on admitted

and non-admitted basis in all 50

states

•

Top 15 E&S carrier in the U.S.

•

Canada Branch

Bermuda

•

Global capability with few exceptions

•

Ability to transact with both

Bermuda and London

wholesale markets

Europe

•

London and Dublin

•

Surplus-lines eligible in 48 U.S. states

•

Freedom of Services permissions in

many EU countries

•

Business written in 188 countries

since inception

Australia/Asia

•

Singapore Branch

•

Australia Branch

AXIS Re –

Highlights

TTM 6/30/09 GPW by Line of Business

Total GPW = $1,748 M

Catastrophe 28%

Property 17%

Professional Lines

17%

Credit and Bond

12%

Motor 6%

Liability 13%

Engineering / Other

Net Premiums Earned

Underwriting Profit

Combined Ratio

$1,560 M

140 M

(1)

91.1%

(1)

TTM 6/30/09 Financial Highlights

(1) Includes $261 million in pre-tax net losses related to Hurricane Ike

Focus on non-life treaty

reinsurance diversified across

products

Maintain balance between

proximity to client and long-term

returns (Strategically located

centers in NY, Bermuda and

Zurich)

Capital base of top 10 reinsurer,

but small enough to grow in

targeted areas

Strong relationships with cedants

supported by consistency of

approach

Operate in broadly syndicated

marketplace where we strive to be

in the upper quartile of the pricing

market

$1,148

$1,347

H1 2008

H1 2009

17.4%

AXIS Capital –

H1 2009 Results

$2,138

$2,238

H1 2008

H1 2009

Consolidated

Gross Premiums Written

4.7%

AXIS Re

Gross Premiums Written

$990

$891

H1 2008

H1 2009

AXIS Insurance

Gross Premiums Written

(10.0%)

81.2%

83.4%

H1 2008

H1 2009

Consolidated Combined Ratio

= 2.1%

$223

$212

H1 2008

H1 2009

(5.0%)

$469

$275

H1 2008

H1 2009

Consolidated Net Income to

Common Shareholders

Consolidated Net Investment Income

(41.4%)

($ in millions)

Significant reserve redundancies since inception

Nearly all from short-tail lines

Cautious approach to medium and long-tail lines reflected in limited

releases from these lines

Proactive reserving

Reserving for major cats

Professional lines

Credit-exposed lines

Strong cash flows and high-quality, short-duration, liquid

investment portfolio

Limited credit risk from reinsurance recoverables

Immaterial goodwill and other intangible assets

Strong enterprise risk management

Capital and liquidity levels in excess of requirements

Priority is reinvestment in business

Opportunistic capital is critical, particularly in uncertain times

Strong Balance Sheet and Liquidity

Net Reserve Position

$447

$66

$161

$366

$394

$151

$476

$281

$809

$491

$789

$687

$300

$600

$900

$1,200

$1,500

Property and

Other

Liability

Professional

Lines

Cat, Property &

other

Credit & Bond,

Motor & Liability

Professional

Lines

Net Case Reserves

Net IBNR Reserves

AXIS Insurance

Net IBNR Reserves = $1,566

Total Net Reserves = $2,240

AXIS Re

Net IBNR Reserves = $1,967

Total Net Reserves = $2,878

$923

$347

$970

$857

$1,183

$838

($ in millions)

IBNR represents 69% ($3.5 Bn) of net reserves at June 30, 2009

High Quality, Well-Diversified Investment Portfolio

Total Cash and Investments: $10.9 Billion

Total Portfolio Allocation

Total Portfolio Ratings Allocation

Note: Other investments include hedge funds, CLO equity tranches, credit funds and short duration high yield funds

(As of June 30, 2009)

Equities

Short Term

Investments

Other Investments

Municipals

Corporates

24%

Foreign Govt Agency

Cash & Cash

Equivalents

11%

US Govt/Agency

16%

Agency MBS

21%

ABS

Non Agency RMBS

Non Agency CMBS

Govt/Agency/Cash &

Cash Equivalents

51%

BBB and lower

Equities

Other Investments

(unrated)

AAA

19%

Portfolio Characteristics of

Fixed Maturity Investments

Average duration

Average credit quality

3.1 years

AA+

Strong Cash Flow and Investment Income

$8,346

$7,895

$6,369

$4,796

$3,183

$1,600

$2,000

$4,000

$6,000

$8,000

Cumulative Cash Flow from 1/1/04

($ in millions)

$197

$474

$461

$369

$246

$157

$100

$200

$300

$400

$500

Investment Income from

Cash/Fixed Income

(1)

$21

-$213

$34

$46

$17

-$250

-$150

-$50

$50

(1) Excludes Net Investment Expenses

Investment

Income

from

All

Other

(1)

Financial Flexibility

($ in millions)

$3,737

$4,011

$4,912

Common

Equity

Series A

Preferred Equity

Series B

Preferred Equity

Debt

$5,658

6/30/09 Capitalization Ratios

Debt / Total Capital

9.2%

Debt

Preferred

Total

Capital

18.5%

$4,960

$5,409

3,238

3,012

3,913

4,659

3,961

4,409

250

499

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

AXIS Risk Framework

Board

Review and approve recommendations of Board Risk Committee

Risk Committee of the Board

Assist Board in its oversight and review of risks to which AXIS is exposed

provide

reasonable

framework

under

which

AXIS’s

key

objectives

can

achieved

Review (and recommend for approval) Risk Standards (“RS”) to provide risk framework

RS provide principles, guidelines and risk tolerances under which business will operate

RS provide a guide to the risk appetite of the business

Risk Management Committee (“RMC”)

Draft, set, maintain and update RS (including risk tolerances)

Monitor aggregation, risk tolerances and emerging risks

Provides the interface between the RS and the AXIS business

Chief Risk Officer

Implements an ERM framework to monitor and measure the risk within our business

Implements Economic Capital Model to provide CEO and RMC with ability to measure the

business against the defined risk appetite

Actively monitors aggregation risks across our business

Business

Manage to the risk tolerances as defined by CEO and RMC.

Principles of our Risk Framework

Controlled

risk

taking:

our

financial

strength

and

sustainable

value creation are integral to our existence

operate

within

clearly

defined

risk

policy

and

risk

control

framework

Clear

accountability:

operate

the

principle

delegated

and clearly defined authority

Individuals are accountable for the risks they take on and incentives are

aligned to overall business objectives

Independent

risk

controlling:

avoid

conflicts

interests

Risk Management Committee and team monitor group risk-taking activities

Open

risk

culture:

risk

transparency

and

responsiveness

change are integral to our risk control process

We institutionalize knowledge-sharing processes at all levels

Earnings Quality through Organic Growth Initiatives

•

Enhancing operational fit

•

Acquisitions of underwriting teams / integration of

best-in-class MGAs

with strategic significance

•

Access to specialty small/middle market business

•

New branches in Australia and Canada

Distribution-oriented

Initiatives

New Products /

Markets

•

Global Accident & Health

We are prepared to execute hard market strategy in many P&C lines and

continue to improve overall earnings quality with ongoing strategic initiatives.

Leverage Current

Market Position

•

Continue to drive increased submissions

•

Focus on relationships with long-term reinsurance

dependent cedants

•

Broaden relationships with existing cedants

AXIS Has Delivered Excellent Returns…

12/31/03 –

12/31/08

Actual

Average Annual Growth in Diluted BVPS

10.1%

Dividends

(as % of beginning diluted BVPS)

2.9%

Average Annual Value Creation

(1)

13.0%

Average ROACE

15.7%

Average Operating ROACE

16.3%

(1) Value Creation = Diluted Book Value Growth + Dividend Return

AXIS has increased dividend every year since we began paying dividends

Bermuda Performance 2004 -

2008

Company

Cumulative Value

Creation (2004-2008)

Average Annual Value

Creation (2004-2008)

Company A

101.3%

15.8%

72.1%

13.0%

Company C

69.5%

12.8%

Company D

68.5%

12.1%

Company E

62.8%

11.1%

Company F

57.6%

11.4%

Company G

51.4%

9.4%

Company H

45.2%

13.5%

Company I

45.0%

10.1%

Company J

36.6%

7.1%

Company K

36.2%

6.9%

Company L

22.5%

6.6%

Company M

17.0%

6.9%

Company N

14.4%

5.6%

Company O

0.8%

4.9%

Company P

(49.5%)

(8.3%)

Note: Value Creation = Diluted Book Value Growth + Dividend Return

Source: Company Reports, SNL

Questions?

David

Greenfield,

CFO

AXIS Capital Holdings Limited (AXS) 8-KCautionary Statement Regarding Forward-looking Statements