AXIS Capital Holdings Limited (AXS) 8-K Axis Capital Reports Operating Income of $276 Million for the Fourth

EXHIBIT 99.2

AXIS Capital Holdings Limited

INVESTOR FINANCIAL SUPPLEMENT

FOURTH QUARTER 2009

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)
	Basis of Presentation	i - iii
I.	Financial Highlights	1
II.	Income Statements
	a. Consolidated Statements of Income - Quarterly	2
	b. Consolidated Statements of Income - Year	3
	c. Consolidated Segment Data	4
	d. Gross Premium Written by Segment by Line of Business	5
	e. Segment Consecutive Quarters	6-7
III.	Balance Sheets
	a. Consolidated Balance Sheets	8
	b. Summary Investment Portfolio Information	9
	c. Investment Portfolio Composition - Quarterly	10
	d. Investment Portfolio: Mortgage and Asset Backed Securities	11
	e. Investment Portfolio: Subprime and Alternative-A Holdings in Direct Investment Portfolio	12
	f. Investment Portfolio: Ten Largest Corporate Holdings	13
	g. Investment Portfolio: Financial Issuer Exposure in Fixed Maturity Portfolio	14-15
	i. Reinsurance Recoverable Analysis	16-17
IV.	Loss Reserve Analysis
	a. Paid to Incurred Analysis	18
	b. Paid to Incurred Analysis by Segment	19
	c. Segment Consecutive Quarters	20-21
	d. Estimated Exposures to Peak Zone Property Catastrophe Losses	22
V.	Share Analysis
	a. Earnings Per Common Share Analysis - As Reported, GAAP	23
	b. Earnings Per Common Share Analysis and Common Share Rollforward - Quarterly	24
	c. Diluted Book Value Per Common Share Analysis	25
VI.	Non-GAAP Financial Measures
	a. Non-GAAP Financial Measure Reconciliation	26

AXIS Capital Holdings Limited

BASIS OF PRESENTATION

DEFINITIONS AND PRESENTATION

• Unless otherwise noted, all data is in thousands, except for per share amounts and ratio information.

• All financial information contained herein is unaudited, except for the consolidated balance sheets and statements of income at and for the years ended December 31, 2008 and December 31, 2007.

• Amounts may not reconcile exactly due to rounding differences.

• NM - Not meaningful; NR - Not Reported; NA - Not applicable

CAUTIONARY NOTE 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, measurements of potential losses in the fair market value of our investment portfolio, our expectations regarding pricing and other market conditions, our growth prospects, and valuations of the potential impact of movements in interest rates, equity prices, credit spread and foreign currency rates.

Forward-looking statements only reflect our expectations and are not guarantees of performance. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements. We believe that these factors include, but are not limited to, the following:

• the occurrence of natural and man-made disasters,

• actual claims exceeding our loss reserves,

• general economic, capital and credit market conditions,

• the failure of any of the loss limitation methods we employ,

• the effects of emerging claims and coverage issues,

• the failure of our cedants to adequately evaluate risks,

• the loss of one or more key executives,

• a decline in our ratings with rating agencies,

• loss of business provided to us by our major brokers,

• changes in accounting policies or practices,

• changes in governmental regulations,

• increased competition,

• changes in the political environment of certain countries in which we operate or underwrite business, and

• fluctuations in interest rates, credit spreads, equity prices and/or currency values.

We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

i

AXIS Capital Holdings Limited

BASIS OF PRESENTATION

BUSINESS DESCRIPTIONS

INSURANCE SEGMENT

Our insurance segment offers specialty insurance products to a variety of niche markets on a worldwide basis. The following are the lines of business in our insurance segment:

Property:provides physical loss or damage, business interruption and machinery breakdown coverage for virtually all types of property, including commercial buildings, residential premises, construction projects and onshore energy installations. This line of business consists of both primary and excess risks, some of which are catastrophe-exposed.

Marine:provides coverage for traditional marine classes, including offshore energy, cargo, liability, recreational marine, fine art, specie, hull and war. Offshore energy coverages include physical damage, business interruption, operators extra expense and liability coverage for all aspects of offshore upstream energy, from exploration and construction through to the operation and distribution phases.

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

Aviation: provides hull and liability and specific war coverage primarily for passenger airlines but also for cargo operations, general aviation operations, airports, aviation authorities, security firms and product manufacturers.

Credit and political risk: provides credit and political risk insurance products for banks and corporations. Coverage is provided for a range of risks including sovereign default, credit default, political violence, currency inconvertibility and non-transfer, expropriation, aircraft non-repossession and contract frustration due to political events. The credit insurance coverage is primarily for lenders seeking to mitigate the risk of non-payment from their borrowers in emerging markets. For the credit insurance contracts, it is necessary for the buyer of the insurance (most often a bank) to hold an insured asset (most often an underlying loan) in order to claim compensation under the insurance contract. The traditional political risk coverage provides protection against sovereign actions that result in the impairment of cross-border investments for banks and major corporations (known as “CEND” coverages).

Professional lines:provides coverage for directors’ and officers’ liability, errors and omissions liability, employment practices liability, fiduciary liability, crime, professional indemnity and other financial insurance related coverages for commercial enterprises, financial institutions and not-for-profit organizations. This business is predominantly written on a claims-made basis.

Liability: primarily targets primary and low/mid-level excess and umbrella commercial liability risks in the U.S. excess and surplus lines markets. Target industry sectors include construction, manufacturing, transportation and trucking, and other services.

Other:primarily consists of employee medical coverage for self-insured, small and medium sized employers, for losses in excess of a given retention.

ii

AXIS Capital Holdings Limited

BASIS OF PRESENTATION

BUSINESS DESCRIPTIONS (CONTINUED)

REINSURANCE SEGMENT

Our reinsurance segment provides non-life reinsurance to insurance companies on a worldwide basis. The following are the lines of business in our reinsurance segment:

Catastrophe:provides protection for most catastrophic losses that are covered in the underlying insurance policies written by our cedants. The exposure in the underlying policies is principally property exposure but also covers other 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. We underwrite catastrophe reinsurance principally on an excess of loss basis.

Property: includes reinsurance written on both a proportional and a per risk excess of loss basis and covers underlying personal lines and commercial property exposures. Here the primary reason for the product is not simply to protect against catastrophic perils, however they are normally included with limitations.

Professional Liability: covers directors’ and officers’ liability, employment practices liability, medical malpractice, lawyers’ and accountants’ liability, environmental liability and miscellaneous errors and omissions insurance risks. The underlying business is predominantly written on a claims-made basis. Business is written on both a proportional and excess of loss basis.

Credit and Bond:consists 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 in the event of a payment default by the buyer of those goods and services. Also included in this line of business is coverage for 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.

Motor:provides coverage to cedants for motor liability and, to a lesser degree, property damage 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 business, excess and surplus casualty business and specialty casualty programs. The primary focus of the underlying business is general liability, although workers compensation and auto liability are also written.

Engineering:provides coverage for all types of construction risks and risks associated with erection, testing and commissioning of machinery and plants during the construction stage. This line of business also includes coverage for losses arising from operational failures of machinery, plant and equipment and electronic equipment as well as business interruption.

Other:includes aviation, marine, personal accident and crop reinsurance.

iii

AXIS Capital Holdings Limited

FINANCIAL HIGHLIGHTS

		Quarter ended December 31,								Year ended December 31,
		2009			2008			Change		2009			2008			Change
HIGHLIGHTS	Gross premiums written	$	573,845		$	526,755		8.9	%	$	3,587,295		$	3,390,388		5.8	%
	Gross premiums written - Insurance		82.0	%		85.2	%	(3.7	)%		49.5	%		54.3	%	(8.9	)%
	Gross premiums written - Reinsurance		18.0	%		14.8	%	21.6	%		50.5	%		45.7	%	10.6	%
	Net premiums written	$	357,971		$	339,473		5.4	%	$	2,816,429		$	2,666,880		5.6	%
	Net premiums earned	$	713,610		$	658,286		8.4	%	$	2,791,764		$	2,687,181		3.9	%
	Net premiums earned - Insurance		42.7	%		44.4	%	(3.9	)%		41.5	%		44.0	%	(5.8	)%
	Net premiums earned - Reinsurance		57.3	%		55.6	%	3.1	%		58.5	%		56.0	%	4.6	%
	Net income available to common shareholders	$	282,063		$	130,858		115.5	%	$	461,011		$	350,501		31.5	%
	Operating income[a]		276,238			162,854		69.6	%		766,241			435,962		75.8	%
	Reserve for losses and loss expenses		6,564,133			6,244,783		5.1	%		6,564,133			6,244,783		5.1	%
	Total shareholders’ equity		5,500,244			4,461,041		23.3	%		5,500,244			4,461,041		23.3	%
PER COMMON SHARE AND COMMON SHARE DATA	Basic earnings per common share	$	2.07		$	0.96		116.2	%	$	3.36		$	2.50		34.4	%
	Diluted earnings per common share	$	1.87		$	0.88		113.6	%	$	3.07		$	2.26		35.9	%
	Operating diluted earnings per common share[b]	$	1.83		$	1.09		67.9	%	$	5.10		$	2.81		81.5	%
	Weighted average common shares outstanding		136,049			136,433		(0.3	)%		137,279			140,322		(2.2	)%
	Diluted weighted average common shares outstanding		150,718			149,363		0.9	%		150,371			155,320		(3.2	)%
	Book value per common share	$	37.84		$	29.08		30.1	%	$	37.84		$	29.08		30.1	%
	Diluted book value per common share (treasury stock method)	$	33.65		$	25.79		30.5	%	$	33.65		$	25.79		30.5	%
	Accumulated dividends paid per common share	$	3.89		$	3.09		25.9	%	$	3.89		$	3.09		25.9	%
FINANCIAL RATIOS	ROACE[c]		22.8	%		13.0	%	9.8	%		10.3	%		8.1	%	2.2	%
	Operating ROACE[b]		22.3	%		16.2	%	6.2	%		17.1	%		10.1	%	7.0	%
	Net loss and loss expense ratio		48.6	%		41.6	%	7.0	%		51.0	%		63.7	%	(12.7	)%
	Acquisition cost ratio		14.3	%		12.7	%	1.5	%		15.1	%		13.6	%	1.4	%
	General and administrative expense ratio		14.6	%		13.3	%	1.3	%		13.2	%		12.5	%	0.7	%
	Combined ratio		77.5	%		67.6	%	9.9	%		79.3	%		89.8	%	(10.4	)%
INVESTMENT DATA	Total assets	$	15,306,524		$	14,282,834		7.2	%	$	15,306,524		$	14,282,834		7.2	%
	Total cash and investments[d]		11,588,457			10,446,986		10.9	%		11,588,457			10,446,986		10.9	%
	Net investment income		118,178			(26,012	)	(554.3	)%		464,478			247,237		87.9	%
	Net realized investment gains (losses)		6,056			(33,425	)	(118.1	)%		(311,584	)		(85,267	)	265.4	%
	Total return on cash and investments[e]		1.1	%		(2.6	)%	3.7	%		8.5	%		(5.4	)%	13.9	%
	Return on other investments[f]		4.5	%		(25.0	)%	29.5	%		15.8	%		(35.1	)%	50.9	%
	Annualized pre-tax yield of fixed maturities[g]		3.9	%		5.0	%	(1.1	)%		4.2	%		5.2	%	(1.0	)%

[a] Operating income is a “Non-GAAP financial measure” as defined by Regulation G. See page 26 for reconciliation of operating income to net income available to common shareholders.

[b] Operating return on average common equity (“ROACE”), also a “Non-GAAP financial measure”, is calculated by dividing operating income for the period by the average common shareholders’ equity determined by using the common shareholders’ equity balances at the beginning and end of the period. Operating diluted earning per share is calculated by dividing operating income for the period by weighted average common shares and share equivalents. Operating income for the quarter-periods is annualized.

[c] ROACE is calculated by dividing net income available to common shareholders for the period by the average common shareholders’ equity determined by using the common shareholders’ equity balances at the beginning and end of the period. Percentages for the quarter-periods are annualized.

[d] Cash and investments represents the total cash, available for sale investments, other investments, accrued interest receivable and net receivable (payable) for investments sold (purchased).

[e] In calculating total return, we include net investment income, net realized investment gains (losses) and the change in unrealized gains (losses) generated by our average month-end cash and investment balances.

[f] Return on other investments is calculated by dividing other investment income (loss) by the average month-end other investment balances for the period.

[g] Annualized pre-tax yield of fixed maturities is calculated by dividing the pre-tax net investment income generated from fixed maturities by the average month-end amortized cost balance of the fixed maturities.

1

AXIS Capital Holdings Limited

CONSOLIDATED STATEMENTS OF INCOME - QUARTERLY

	Q4 2009			Q3 2009			Q2 2009			Q1 2009			Q4 2008			Q4 2007
UNDERWRITING REVENUES
Gross premiums written	$	573,845		$	775,314		$	914,641		$	1,323,495		$	526,755		$	572,865
Premiums ceded		(215,874	)		(180,170	)		(213,628	)		(161,194	)		(187,282	)		(187,710	)
Net premiums written		357,971			595,144			701,013			1,162,301			339,473			385,155
Gross premiums earned		912,520			898,268			890,194			839,316			830,975			860,421
Ceded premiums amortized		(198,910	)		(192,243	)		(183,424	)		(173,957	)		(172,689	)		(191,101	)
Net premiums earned		713,610			706,025			706,770			665,359			658,286			669,320
Other insurance related income (loss)		29,713			(135,738	)		(14,261	)		(9,395	)		(19,594	)		273
Total underwriting revenues		743,323			570,287			692,509			655,964			638,692			669,593
UNDERWRITING EXPENSES
Net losses and loss expenses		346,512			311,109			378,252			387,999			273,837			290,546
Acquisition costs		101,787			113,423			103,309			101,976			83,916			90,574
General and administrative expenses		79,507			74,404			70,418			68,752			65,437			81,785
Total underwriting expenses		527,806			498,936			551,979			558,727			423,190			462,905
UNDERWRITING INCOME		215,517			71,351			140,530			97,237			215,502			206,688
OTHER OPERATING REVENUE (EXPENSES)
Net investment income (loss)		118,178			134,788			112,220			99,292			(26,012	)		125,000
Net realized investment gains (losses)		6,056			(253,365	)		(23,678	)		(40,597	)		(33,425	)		10,778
Interest expense and financing costs		(8,162	)		(7,977	)		(7,971	)		(7,921	)		(7,884	)		(7,912	)
Total other operating revenue (expenses)		116,072			(126,554	)		80,571			50,774			(67,321	)		127,866
OTHER (EXPENSES) REVENUE
Net foreign exchange gains (losses)		2,018			(6,784	)		(24,184	)		389			22,347			349
Corporate expenses[a]		(25,135	)		(17,605	)		(16,531	)		(17,805	)		(21,896	)		(11,053	)
Total other (expenses) revenue		(23,117	)		(24,389	)		(40,715	)		(17,416	)		451			(10,704	)
INCOME (LOSS) BEFORE INCOME TAXES		308,472			(79,592	)		180,386			130,595			148,632			323,850
Income tax expense		(17,190	)		(7,082	)		(12,006	)		(5,697	)		(8,555	)		(8,547	)
NET INCOME (LOSS)		291,282			(86,674	)		168,380			124,898			140,077			315,303
Preferred share dividends		(9,219	)		(9,218	)		(9,219	)		(9,219	)		(9,219	)		(9,203	)
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS	$	282,063		$	(95,892	)	$	159,161		$	115,679		$	130,858		$	306,100
KEY RATIOS/PER COMMON SHARE DATA
Net loss and loss expense ratio		48.6	%		44.1	%		53.5	%		58.3	%		41.6	%		43.4	%
Acquisition cost ratio		14.3	%		16.1	%		14.6	%		15.3	%		12.7	%		13.5	%
General and administrative expense ratio[a]		14.6	%		13.0	%		12.3	%		13.0	%		13.3	%		13.9	%
Combined ratio		77.5	%		73.2	%		80.4	%		86.6	%		67.6	%		70.8	%
Weighted average basic shares outstanding		136,049			137,904			137,849			137,316			136,433			143,877
Weighted average diluted shares outstanding		150,718			137,904			149,861			149,023			149,363			161,732
Basic earnings per common share	$	2.07		($	0.70	)	$	1.15		$	0.84		$	0.96		$	2.13
Diluted earnings per common share	$	1.87		($	0.70	)	$	1.06		$	0.78		$	0.88		$	1.89
ROACE (annualized)		22.8	%		(8.2	)%		15.2	%		11.6	%		13.0	%		26.9	%
Operating ROACE (annualized)		22.3	%		13.0	%		17.4	%		15.7	%		16.2	%		26.0	%

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

2

AXIS Capital Holdings Limited

CONSOLIDATED STATEMENTS OF INCOME - YTD

	Year ended December 31,
	2009			2008			2007
UNDERWRITING REVENUES
Gross premiums written	$	3,587,295		$	3,390,388		$	3,590,090
Premiums ceded		(770,866	)		(723,508	)		(726,333	)
Net premiums written		2,816,429			2,666,880			2,863,757
Gross premiums earned		3,540,298			3,374,076			3,459,816
Ceded premiums amortized		(748,534	)		(686,895	)		(725,406	)
Net premiums earned		2,791,764			2,687,181			2,734,410
Other insurance related (loss) income		(129,681	)		(38,667	)		3,911
Total underwriting revenues		2,662,083			2,648,514			2,738,321
UNDERWRITING EXPENSES
Net losses and loss expenses		1,423,872			1,712,766			1,370,260
Acquisition costs		420,495			366,509			384,497
General and administrative expenses		293,081			262,571			245,531
Total underwriting expenses		2,137,448			2,341,846			2,000,288
UNDERWRITING INCOME		524,635			306,668			738,033
OTHER OPERATING REVENUE (EXPENSES)
Net investment income		464,478			247,237			482,873
Net realized investment gains (losses)		(311,584	)		(85,267	)		5,230
Interest expense and financing costs		(32,031	)		(31,673	)		(51,153	)
Total other operating revenue		120,863			130,297			436,950
OTHER REVENUE (EXPENSES)
Net foreign exchange (losses) gains		(28,561	)		43,707			16,826
Corporate expenses[a]		(77,076	)		(73,187	)		(58,300	)
Total other expenses		(105,637	)		(29,480	)		(41,474	)
INCOME BEFORE INCOME TAXES		539,861			407,485			1,133,509
Income tax expense		(41,975	)		(20,109	)		(41,491	)
NET INCOME		497,886			387,376			1,092,018
Preferred share dividends		(36,875	)		(36,875	)		(36,775	)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	461,011		$	350,501		$	1,055,243
KEY RATIOS/PER SHARE DATA
Net loss and loss expense ratio		51.0	%		63.7	%		50.1	%
Acquisition cost ratio		15.1	%		13.6	%		14.1	%
General and administrative expense ratio[a]		13.2	%		12.5	%		11.1	%
Combined ratio		79.3	%		89.8	%		75.3	%
Weighted average basic shares outstanding		137,279			140,322			147,524
Weighted average diluted shares outstanding		150,371			155,320			164,515
Basic earnings per common share	$	3.36		$	2.50		$	7.15
Diluted earnings per common share	$	3.07		$	2.26		$	6.41
ROACE		10.3	%		8.1	%		24.6	%
Operating ROACE		17.1	%		10.1	%		24.5	%

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

3

AXIS Capital Holdings Limited

CONSOLIDATED SEGMENT DATA

	Three months ended December 31, 2009									Year ended December 31, 2009
	Insurance			Reinsurance			Total			Insurance			Reinsurance			Total
UNDERWRITING REVENUES
Gross premiums written	$	470,746		$	103,099		$	573,845		$	1,775,590		$	1,811,705		$	3,587,295
Net premiums written		260,129			97,842			357,971			1,025,061			1,791,368			2,816,429
Gross premiums earned		494,580			417,940			912,520			1,884,121			1,656,177			3,540,298
Ceded premiums amortized		(189,849	)		(9,061	)		(198,910	)		(726,155	)		(22,379	)		(748,534	)
Net premiums earned		304,731			408,879			713,610			1,157,966			1,633,798			2,791,764
Other insurance related income (loss)		29,713			—			29,713			(130,946	)		1,265			(129,681	)
Total underwriting revenues		334,444			408,879			743,323			1,027,020			1,635,063			2,662,083
UNDERWRITING EXPENSES
Net losses and loss expenses		161,551			184,961			346,512			612,694			811,178			1,423,872
Acquisition costs		29,065			72,722			101,787			113,187			307,308			420,495
General and administrative expenses		57,895			21,612			79,507			216,954			76,127			293,081
Total underwriting expenses		248,511			279,295			527,806			942,835			1,194,613			2,137,448
UNDERWRITING INCOME	$	85,933		$	129,584		$	215,517		$	84,185		$	440,450		$	524,635
KEY RATIOS
Net loss and loss expense ratio		53.0	%		45.2	%		48.6	%		52.9	%		49.6	%		51.0	%
Acquisition cost ratio		9.6	%		17.8	%		14.3	%		9.8	%		18.8	%		15.1	%
General and administrative expense ratio		19.0	%		5.3	%		11.1	%		18.7	%		4.7	%		10.5	%
Corporate expense ratio								3.5	%								2.7	%
Combined ratio		81.6	%		68.3	%		77.5	%		81.4	%		73.1	%		79.3	%

4

AXIS Capital Holdings Limited

GROSS PREMIUM WRITTEN BY SEGMENT BY LINE OF BUSINESS

																		Year ended December 31,
	Q4 2009			Q3 2009			Q2 2009			Q1 2009		Q4 2008			Q4 2007			2009		2008
INSURANCE SEGMENT
Property	$	121,860		$	147,117		$	176,421		$	106,138	$	99,413		$	150,283		$	551,536	$	539,138
Marine		32,618			45,765			61,858			60,626		22,625			19,984			200,867		193,234
Terrorism		12,330			7,861			10,165			5,667		6,215			10,216			36,023		36,288
Aviation		40,857			11,098			7,176			17,067		29,825			28,788			76,198		67,761
Credit and political risk		16,639			(3,902	)		4,222			2,491		38,012			75,410			19,450		183,041
Professional lines		184,491			155,382			211,417			120,328		180,945			146,095			671,618		601,874
Liability		61,951			50,601			55,505			51,812		71,467			74,294			219,869		216,629
Other		—			—			—			29		439			4,256			29		3,969
TOTAL INSURANCE SEGMENT		470,746			413,922			526,764			364,158		448,941			509,326			1,775,590		1,841,934
REINSURANCE SEGMENT
Catastrophe		9,448			87,700			132,071			237,347		9,298			8,743			466,566		454,768
Property		11,993			78,222			110,083			126,430		3,609			(489	)		326,728		296,109
Professional lines		59,546			84,903			70,420			113,640		52,208			27,909			328,509		226,768
Credit and bond		9,556			18,369			(1,632	)		197,271		5,610			5,363			223,564		154,497
Motor		(2,168	)		5,675			23,771			77,572		1,033			1,038			104,850		100,225
Liability		7,979			80,876			29,991			153,856		(2,212	)		8,341			272,702		183,488
Engineering		5,434			5,979			8,839			41,266		4,856			10,428			61,518		83,356
Other		1,311			(332	)		14,334			11,955		3,412			2,206			27,268		49,243
TOTAL REINSURANCE SEGMENT		103,099			361,392			387,877			959,337		77,814			63,539			1,811,705		1,548,454
CONSOLIDATED TOTAL	$	573,845		$	775,314		$	914,641		$	1,323,495	$	526,755		$	572,865		$	3,587,295	$	3,390,388

5

AXIS Capital Holdings Limited

INSURANCE SEGMENT DATA - QUARTERLY

	Q4 2009			Q3 2009			Q2 2009			Q1 2009			Q4 2008			Q4 2007
UNDERWRITING REVENUES
Gross premiums written	$	470,746		$	413,922		$	526,764		$	364,158		$	448,941		$	509,326
Net premiums written		260,129			239,781			313,136			212,015			260,934			322,111
Gross premiums earned		494,580			465,701			478,299			445,541			461,931			480,158
Ceded premiums amortized		(189,849	)		(187,064	)		(179,324	)		(169,918	)		(169,346	)		(186,820	)
Net premiums earned		304,731			278,637			298,975			275,623			292,585			293,338
Other insurance related income (loss)		29,713			(135,898	)		(14,956	)		(9,805	)		(19,789	)		123
Total underwriting revenues		334,444			142,739			284,019			265,818			272,796			293,461
UNDERWRITING EXPENSES
Net losses and loss expenses		161,551			111,228			187,211			152,704			109,945			101,652
Acquisition costs		29,065			29,613			28,306			26,203			17,677			28,911
General and administrative expenses		57,895			55,685			52,893			50,481			48,560			57,858
Total underwriting expenses		248,511			196,526			268,410			229,388			176,182			188,421
UNDERWRITING INCOME (LOSS)	$	85,933		$	(53,787	)	$	15,609		$	36,430		$	96,614		$	105,040
KEY RATIOS
Net loss and loss expense ratio		53.0	%		39.9	%		62.6	%		55.4	%		37.6	%		34.7	%
Acquisition cost ratio		9.6	%		10.6	%		9.5	%		9.5	%		6.0	%		9.9	%
General and administrative expense ratio		19.0	%		20.0	%		17.7	%		18.3	%		16.6	%		19.7	%
Combined ratio		81.6	%		70.5	%		89.8	%		83.2	%		60.2	%		64.3	%

6

AXIS Capital Holdings Limited

REINSURANCE SEGMENT DATA - QUARTERLY

	Q4 2009			Q3 2009			Q2 2009			Q1 2009			Q4 2008			Q4 2007
UNDERWRITING REVENUES
Gross premiums written	$	103,099		$	361,392		$	387,877		$	959,337		$	77,814		$	63,539
Net premiums written		97,842			355,363			387,877			950,286			78,539			63,044
Gross premiums earned		417,940			432,567			411,895			393,775			369,044			380,263
Ceded premiums amortized		(9,061	)		(5,179	)		(4,100	)		(4,039	)		(3,343	)		(4,281	)
Net premiums earned		408,879			427,388			407,795			389,736			365,701			375,982
Other insurance related income		—			160			695			410			195			150
Total underwriting revenues		408,879			427,548			408,490			390,146			365,896			376,132
UNDERWRITING EXPENSES
Net losses and loss expenses		184,961			199,881			191,041			235,295			163,892			188,894
Acquisition costs		72,722			83,810			75,003			75,773			66,239			61,663
General and administrative expenses		21,612			18,719			17,525			18,271			16,877			23,927
Total underwriting expenses		279,295			302,410			283,569			329,339			247,008			274,484
UNDERWRITING INCOME	$	129,584		$	125,138		$	124,921		$	60,807		$	118,888		$	101,648
KEY RATIOS
Net loss and loss expense ratio		45.2	%		46.8	%		46.8	%		60.4	%		44.8	%		50.2	%
Acquisition cost ratio		17.8	%		19.6	%		18.4	%		19.4	%		18.1	%		16.4	%
General and administrative expense ratio		5.3	%		4.4	%		4.3	%		4.7	%		4.6	%		6.4	%
Combined ratio		68.3	%		70.8	%		69.5	%		84.5	%		67.5	%		73.0	%

7

AXIS Capital Holdings Limited

CONSOLIDATED BALANCE SHEETS

	Dec 31, 2009			Sep 30, 2009			Jun 30, 2009			Mar 31, 2009			Dec 31, 2008			Dec 30, 2007
ASSETS
Investments:
Fixed maturities, available for sale, at fair value	$	9,718,355		$	9,682,932		$	8,872,839		$	8,238,175		$	7,750,654			8,193,736
Equities, available for sale, at fair value		204,375			137,544			96,875			78,527			107,283			7,746
Other investments, at fair value		570,276			541,447			539,545			494,405			492,082			638,241
Short-term investments		129,098			282,737			165,197			225,583			261,879			137,930
Total investments		10,622,104			10,644,660			9,674,456			9,036,690			8,611,898			8,977,653
Cash and cash equivalents		864,054			1,239,471			1,380,863			1,411,551			1,820,673			1,332,921
Accrued interest receivable		89,559			82,169			87,361			80,746			79,232			87,338
Insurance and reinsurance premium balances receivable		1,292,877			1,497,639			1,707,677			1,581,743			1,185,785			1,231,494
Reinsurance recoverable balances		1,424,172			1,406,449			1,443,840			1,432,650			1,378,630			1,356,893
Deferred acquisition costs		302,320			363,739			374,849			375,774			273,096			276,801
Prepaid reinsurance premiums		301,885			284,922			296,994			266,789			279,553			242,940
Securities lending collateral		129,814			135,122			146,350			312,364			412,823			865,256
Net receivable for investments sold		12,740			—			—			—			—			86,356
Goodwill and intangible assets		91,505			93,049			95,058			95,380			60,417			61,653
Other assets		175,494			172,248			171,437			183,679			180,727			156,004
TOTAL ASSETS	$	15,306,524		$	15,919,468		$	15,378,885		$	14,777,366		$	14,282,834		$	14,675,309
LIABILITIES
Reserve for losses and loss expenses	$	6,564,133		$	6,579,914		$	6,561,894		$	6,392,278		$	6,244,783		$	5,587,311
Unearned premiums		2,209,397			2,548,072			2,671,025			2,646,578			2,162,401			2,146,087
Insurance and reinsurance balances payable		173,156			170,664			178,372			154,763			202,145			244,988
Securities lending payable		132,815			138,092			149,288			317,310			415,197			863,906
Senior notes		499,476			499,449			499,422			499,395			499,368			499,261
Other liabilities		227,303			426,068			253,198			222,832			233,082			175,134
Net payable for investments purchased		—			159,102			156,567			51,373			64,817			—
TOTAL LIABILITIES		9,806,280			10,521,361			10,469,766			10,284,529			9,821,793			9,516,687
SHAREHOLDERS’ EQUITY
Series A and B preferred shares		500,000			500,000			500,000			500,000			500,000			500,000
Common shares		1,903			1,901			1,900			1,899			1,878			1,850
Additional paid-in capital		2,014,815			2,003,417			1,989,503			1,977,144			1,962,779			1,869,810
Accumulated other comprehensive income (loss)		85,633			74,974			(528,261	)		(767,182	)		(706,499	)		22,668
Retained earnings		3,569,411			3,319,467			3,447,511			3,282,392			3,198,492			2,968,900
Treasury shares, at cost		(671,518	)		(501,652	)		(501,534	)		(501,416	)		(495,609	)		(204,606	)
TOTAL SHAREHOLDERS’ EQUITY		5,500,244			5,398,107			4,909,119			4,492,837			4,461,041			5,158,622
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	15,306,524		$	15,919,468		$	15,378,885		$	14,777,366		$	14,282,834		$	14,675,309
Book value per common share	$	37.84		$	35.54		$	32.02		$	29.01		$	29.08		$	32.69
Diluted book value per common share	$	33.65		$	31.58		$	28.72		$	26.35		$	25.79		$	28.79
Debt (Senior notes) to total capitalization[a]		8.3	%		8.5	%		9.2	%		10.0	%		10.1	%		8.8	%
Debt plus preferred shares to total capitalization		16.7	%		16.9	%		18.5	%		20.0	%		20.1	%		17.7	%

[a] The debt to capitalization ratio is calculated by dividing our senior notes by the total capital. Total capital represents the sum of total shareholders’ equity and our senior notes.

8

AXIS Capital Holdings Limited

INVESTMENT PORTFOLIO

At December 31, 2009

TYPE OF INVESTMENT	Cost or Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value		Percentage
U.S. government and agency	$	1,859,874	$	8,511	$	(11,726	)	$	1,856,659	16	%
Non-U.S. government		687,843		11,937		(2,966	)		696,814	6	%
Corporate debt		3,482,450		126,093		(27,777	)		3,580,766	31	%
Agency MBS[a], [b]		1,529,208		41,425		(4,374	)		1,566,259	13	%
Non-Agency CMBS[a]		670,949		10,545		(28,283	)		653,211	6	%
Non-Agency RMBS[a]		257,865		324		(35,207	)		222,982	2	%
ABS[a]		455,831		6,926		(19,618	)		443,139	4	%
Municipals		684,267		18,495		(4,237	)		698,525	6	%
Total Fixed Maturities		9,628,287		224,256		(134,188	)		9,718,355	84	%
Total Equities		195,011		17,834		(8,470	)		204,375	2	%
Total Short-term investments		129,098		—		—			129,098	1	%
Cash, net of unsettled trades		139,534		—		—			139,534	1	%
Total Invested Assets		10,091,930		242,090		(142,658	)		10,191,362	88	%
Operating Cash Balances		737,260		—		—			737,260	6	%
	$	10,829,190	$	242,090	$	(142,658	)		10,928,622	94	%
Other Investments									570,276	5	%
Accrued interest receivable									89,559	1	%
Total Cash and Investments								$	11,588,457	100	%
OTHER INVESTMENTS								Fair Value		Percentage
Hedge funds								$	351,507	61	%
Credit funds									107,349	19	%
Collateralized loan obligations - equity tranches									61,332	11	%
Short duration high yield fund									50,088	9	%
Total								$	570,276	100	%

[a] For a further breakdown of our mortgage-backed (“MBS”) and asset-backed securities (“ABS”), refer to page 11.

[b] Agency mortgage-backed securities include both agency RMBS and agency CMBS.

9

AXIS Capital Holdings Limited

INVESTMENT PORTFOLIO COMPOSITION - QUARTERLY

	Q4 2009		Q3 2009		Q2 2009		Q1 2009		Q4 2008		Q4 2007
TYPE OF INVESTMENT	Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %
U.S. government and agency	16.0	%	16.4	%	16.2	%	13.6	%	11.5	%	10.1	%
Non-U.S. government	6.0	%	4.5	%	2.8	%	2.4	%	2.5	%	2.7	%
Corporate debt	30.9	%	29.2	%	24.4	%	21.7	%	19.7	%	19.1	%
MBS	21.0	%	23.1	%	29.4	%	33.5	%	33.3	%	33.2	%
ABS	3.8	%	3.3	%	2.8	%	3.4	%	3.6	%	5.0	%
Municipals	6.0	%	5.6	%	5.2	%	3.9	%	3.5	%	7.9	%
Total Fixed Maturities	83.7	%	82.1	%	80.8	%	78.5	%	74.1	%	78.0	%
Equities	1.8	%	1.2	%	0.9	%	0.7	%	1.1	%	0.3	%
Short-term investments	1.0	%	2.0	%	1.5	%	2.3	%	2.6	%	1.3	%
Cash, net of unsettled trades	1.2	%	1.9	%	2.9	%	3.0	%	6.3	%	5.4	%
Total Invested Assets	87.7	%	87.2	%	86.1	%	84.5	%	84.1	%	85.0	%
Operating Cash Balances	6.4	%	7.3	%	8.2	%	10.0	%	10.3	%	8.1	%
	94.1	%	94.5	%	94.3	%	94.5	%	94.4	%	93.1	%
Other Investments	4.9	%	4.6	%	4.9	%	4.7	%	4.7	%	6.1	%
Accrued interest receivable	1.0	%	0.9	%	0.8	%	0.8	%	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 %
U.S. government and agency	19.1	%	20.0	%	20.1	%	17.4	%	15.3	%	13.0	%
AAA	41.2	%	41.9	%	48.2	%	54.9	%	58.1	%	58.6	%
AA	9.4	%	9.0	%	8.0	%	7.6	%	6.3	%	7.8	%
A	18.1	%	17.3	%	14.2	%	11.8	%	12.2	%	10.1	%
BBB	10.7	%	10.5	%	8.5	%	6.7	%	7.8	%	10.5	%
Below BBB	1.5	%	1.3	%	1.0	%	1.6	%	0.3	%	—
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	7.3	%	5.8	%	4.8	%	4.9	%	7.6	%	9.1	%
From one to five years	43.0	%	41.9	%	34.9	%	32.8	%	31.4	%	25.7	%
From five to ten years	16.3	%	16.9	%	17.5	%	12.5	%	10.0	%	9.9	%
Above ten years	3.7	%	3.3	%	2.9	%	2.9	%	2.9	%	6.3	%
Asset-backed and mortgage-backed securities	29.7	%	32.1	%	39.9	%	46.9	%	48.1	%	49.0	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
PORTFOLIO CHARACTERISTICS OF FIXED MATURITIES	As of or for the quarter ended
	Q4 2009		Q3 2009		Q2 2009		Q1 2009		Q4 2008		Q4 2007
Annualized pre-tax yield	3.9	%	4.1	%	4.4	%	4.2	%	5.0	%	5.0	%
Yield to maturity	3.6	%	3.4	%	4.2	%	4.6	%	5.0	%	5.1	%
Average duration	3.1 yrs		2.8 yrs		3.1 yrs		2.4 yrs		2.5 yrs		2.7 yrs
Average credit quality	AA		AA		AA+		AA+		AA+		AA+

10

AXIS Capital Holdings Limited

MORTGAGE AND ASSET BACKED SECURITIES

At December 31, 2009

	Mortgage-Backed Securities By Rating and Class
	Agency [a]				AAA				AA or lower				Total				Total
	Residential		Commercial		Residential		Commercial		Residential		Commercial		Residential		Commercial
Agency
Agency Pass-Throughs	$	1,394,406	$	—	$	—	$	—	$	—	$	—	$	1,394,406	$	—	$	1,394,406
Agency CMO’s		108,916		8,656		—		—		—		—		108,916		8,656		117,572
Agency Floating Rate MBS		53,337		944		—		—		—		—		53,337		944		54,281
Total Agency		1,556,659		9,600		—		—		—		—		1,556,659		9,600		1,566,259
Non-Agency
Non-Agency CMO’s		—		—		101,729		513,791		74,767		139,420		176,496		653,211		829,707
Non-Agency Floating Rate MBS		—		—		23,248		—		23,238		—		46,486		—		46,486
Total Non Agency		—		—		124,977		513,791		98,005		139,420		222,982		653,211		876,193
Total	$	1,556,659	$	9,600	$	124,977	$	513,791	$	98,005	$	139,420	$	1,779,641	$	662,811	$	2,442,452

	Asset-Backed Securities By Rating
Description	AAA		AA or lower		Total
Auto	$	203,522	$	2,721	$	206,243
CLO[b]		—		42,222		42,222
CDO		2,045		2,126		4,171
Credit Card		73,172		—		73,172
Home Equity		65		—		65
Equipment		26,684		157		26,841
Other		89,554		871		90,425
Total	$	395,042	$	48,097	$	443,139

^[a] These represent securities backed by U.S. Government sponsored agencies.

^[b] Collateralized loan obligation - debt tranched securities.

11

AXIS Capital Holdings Limited

SUBPRIME AND ALTERNATIVE-A HOLDINGS IN DIRECT INVESTMENT PORTFOLIO

At December 31, 2009

	SUBPRIME AND ALTERNATIVE-A HOLDINGS BY SECTOR
	Holdings at Fair Value		% of Total Shareholders’ Equity		Net Unrealized Gain / (Loss)			Realized losses and impairments in 2009
Subprime Agency MBS	$	—	0.00	%	$	—		$	—
Subprime Non-Agency MBS		16,836	0.31	%		(6,072	)		—
Subprime ABS		65	0.00	%		(4	)		(9,361	)
Total Subprime	$	16,901	0.31	%	$	(6,076	)	$	(9,361	)
Alternative-A Agency MBS	$	434	0.01	%	$	(1	)	$	—
Alternative-A Non-Agency MBS		70,177	1.27	%		(15,501	)		(5,318	)
Alternative-A ABS		—	0.00	%		—			(924	)
Total Alternative-A	$	70,611	1.28	%	$	(15,502	)	$	(6,242	)
TOTAL Subprime and Alternative-A	$	87,512	1.59	%	$	(21,578	)	$	(15,603	)

	SUBPRIME AND ALTERNATIVE-A HOLDINGS AT FAIR VALUE BY RATING & VINTAGE
	Agency and AAA			Other Investment Grade			Non-Investment Grade			Total			Percentage of total
Sub-prime 2003 and prior	$	1,410		$	129		$	56		$	1,595		9.4	%
Sub-prime 2004		3,883			—			469			4,352		25.7	%
Sub-prime 2005		5,824			470			276			6,570		38.9	%
Sub-prime 2006		92			—			3,864			3,956		23.4	%
Sub-prime 2007		74			—			354			428		2.6	%
Total Subprime	$	11,283		$	599		$	5,019		$	16,901		100.0	%
Rating as Percentage of Total		66.8	%		3.5	%		29.7	%		100.0	%
Alternative-A 2003 and prior	$	4,474		$	2,713		$	—		$	7,187		10.2	%
Alternative-A 2004		19,566			811			559			20,936		29.6	%
Alternative-A 2005		8,422			14,219			14,314			36,955		52.3	%
Alternative-A 2006		—			1,030			1,045			2,075		2.9	%
Alternative-A 2007		—			1,335			2,123			3,458		5.0	%
Total Alternative A	$	32,462		$	20,108		$	18,041		$	70,611		100.0	%
Rating as Percentage of Total		46.0	%		28.5	%		25.5	%		100.0	%
Subprime and Alternative-A 2003 and prior	$	5,884		$	2,842		$	56		$	8,782		10.0	%
Subprime and Alternative-A 2004		23,449			811			1,028			25,288		28.9	%
Subprime and Alternative-A 2005		14,246			14,689			14,590			43,525		49.7	%
Subprime and Alternative-A 2006		92			1,030			4,909			6,031		6.9	%
Subprime and Alternative-A 2007		74			1,335			2,477			3,886		4.5	%
TOTAL Subprime and Alternative-A	$	43,745		$	20,707		$	23,060		$	87,512		100.0	%
Rating as Percentage of Total		50.0	%		23.7	%		26.3	%		100.0	%

12

AXIS Capital Holdings Limited

INVESTMENT PORTFOLIO

TEN LARGEST CORPORATE HOLDINGS IN FIXED MATURITY PORTFOLIO

At December 31, 2009

ISSUER(1)	Amortized Cost(2)		Unrealized Gain/(Loss)		Fair Value		% of Total Fixed Maturities
BANK OF AMERICA CORP	$	183,500	$	4,437	$	187,937	1.9	%
JP MORGAN CHASE CO		138,562		8,846		147,408	1.5	%
CITIGROUP INC		130,674		2,174		132,848	1.4	%
GENERAL ELECTRIC CO(3)		125,022		1,519		126,541	1.3	%
VERIZON COMMUNICATIONS INC		116,296		7,241		123,537	1.3	%
MORGAN STANLEY		111,459		3,798		115,257	1.2	%
GOLDMAN SACHS		95,596		4,051		99,647	1.0	%
WELLS FARGO & COMPANY		78,646		1,829		80,475	0.8	%
HSBC HOLDINGS PLC		68,635		1,136		69,771	0.7	%
AT&T INC		48,402		2,003		50,405	0.5	%

Notes:

1. The holdings represent direct investments in fixed maturities of the parent issuer and its major subsidiaries. These investments exclude asset and mortgage backed securities that were issued, sponsored or serviced by the parent.

2. Includes issuances guaranteed by the Federal Deposit Insurance Corporation (“FDIC”).

3. Our investment in General Electric Co. is primarily related to issuances from its finance subsidiaries.

13

AXIS Capital Holdings Limited

INVESTMENT PORTFOLIO

TEN LARGEST FINANCIAL ISSUER HOLDINGS IN FIXED MATURITY PORTFOLIO

At December 31, 2009

ISSUER(1)	Amortized Cost(2)		Unrealized Gain/(Loss)		Fair Value		% of Total Fixed Maturities
BANK OF AMERICA CORP	$	183,500	$	4,437	$	187,937	1.9	%
JP MORGAN CHASE CO		138,562		8,846		147,408	1.5	%
CITIGROUP INC		130,674		2,174		132,848	1.4	%
GENERAL ELECTRIC CO(3)		125,022		1,519		126,541	1.3	%
MORGAN STANLEY		111,459		3,798		115,257	1.2	%
GOLDMAN SACHS		95,596		4,051		99,647	1.0	%
WELLS FARGO & COMPANY		78,646		1,829		80,475	0.8	%
HSBC HOLDINGS PLC		68,635		1,136		69,771	0.7	%
CREDIT SUISSE GROUP		41,263		1,572		42,835	0.4	%
AUSTRALIA & NEW ZEALAND BANKING GROUP		26,982		997		27,979	0.3	%

Notes:

1. The holdings represent direct investments in fixed maturities of the parent issuer and its major subsidiaries. These investments exclude asset and mortgage backed securities that were issued, sponsored or serviced by the parent.

2. Includes issuances guaranteed by the Federal Deposit Insurance Corporation (“FDIC”).

3. Our investment in General Electric Co. is primarily related to issuances from its finance subsidiaries.

14

AXIS Capital Holdings Limited

INVESTMENT PORTFOLIO

TEN LARGEST FINANCIAL ISSUER HOLDINGS IN FIXED MATURITY PORTFOLIO

At December 31, 2009

	Estimated Fair Value						% of Total Fixed Maturities
ISSUER(1)	Government Guaranteed (2)		Not Government Guaranteed		Total
BANK OF AMERICA CORP	$	15,684	$	172,253	$	187,937	1.9	%
JP MORGAN CHASE CO		7,130		140,278		147,408	1.5	%
CITIGROUP INC		49,125		83,723		132,848	1.4	%
GENERAL ELECTRIC CO(3)		65,600		60,941		126,541	1.3	%
MORGAN STANLEY		15,093		100,164		115,257	1.2	%
GOLDMAN SACHS		26,088		73,559		99,647	1.0	%
WELLS FARGO & COMPANY		5,365		75,110		80,475	0.8	%
HSBC HOLDINGS PLC		4,757		65,014		69,771	0.7	%
CREDIT SUISSE GROUP		—		42,835		42,835	0.4	%
AUSTRALIA & NEW ZEALAND BANKING GROUP		—		27,979		27,979	0.3	%

Notes:

1. The holdings represent direct investments in fixed maturities of the parent issuer and its major subsidiaries. These investments exclude asset and mortgage backed securities that were issued, sponsored or serviced by the parent.

2. Corporate issuances guaranteed by the Federal Deposit Insurance Corporation (“FDIC”).

3. Our investment in General Electric Co. is primarily related to issuances from its finance subsidiaries.

15

AXIS Capital Holdings Limited

REINSURANCE RECOVERABLE ANALYSIS

	Q4 2009			Q3 2009			Q2 2009			Q1 2009			Q4 2008			Q4 2007
Reinsurance recoverable on paid losses and loss expenses:
Insurance	$	43,119		$	31,630		$	57,769		$	52,512		$	64,084		$	59,106
Reinsurance		4,995			4,995			4,995			4,995			4,995			12,492
Total	$	48,114		$	36,625		$	62,764		$	57,507		$	69,079		$	71,598
Reinsurance recoverable on unpaid losses and loss expenses: OSLR
Insurance	$	376,403		$	388,803		$	397,627		$	425,115		$	422,370		$	441,042
Reinsurance		—			—			—			—			—			—
Total	$	376,403		$	388,803		$	397,627		$	425,115		$	422,370		$	441,042
Reinsurance recoverable on unpaid losses and loss expenses: IBNR
Insurance	$	984,426		$	970,655		$	974,138		$	939,382		$	877,588		$	852,054
Reinsurance		38,186			32,799			31,745			31,079			30,026			26,047
Total	$	1,022,612		$	1,003,454		$	1,005,883		$	970,461		$	907,614		$	878,101
Provision against reinsurance recoverables:
Insurance	$	(17,691	)	$	(15,623	)	$	(15,624	)	$	(13,623	)	$	(13,623	)	$	(19,794	)
Reinsurance		(5,266	)		(6,810	)		(6,810	)		(6,810	)		(6,810	)		(14,054	)
Total	$	(22,957	)	$	(22,433	)	$	(22,434	)	$	(20,433	)	$	(20,433	)	$	(33,848	)
Net reinsurance recoverables:
Insurance	$	1,386,257		$	1,375,465		$	1,413,910		$	1,403,386		$	1,350,419		$	1,332,408
Reinsurance		37,915			30,984			29,930			29,264			28,211			24,485
Total	$	1,424,172		$	1,406,449		$	1,443,840		$	1,432,650		$	1,378,630		$	1,356,893

16

AXIS Capital Holdings Limited

REINSURANCE RECOVERABLE ANALYSIS

Consolidated Reinsurance Recoverable			December 31, 2009
Categories	Gross Recoverable		Collateral			Gross Recoverable Net of Collateral		% of Total Gross Recoverable Net of Collateral		% of Total Shareholders’ Equity		Provision against Reinsurance Recoverables			Provision against Reinsurance Recoverable as % of Gross Recoverable		Net Recoverable
Top 10 reinsurers based on gross recoverables	$	1,007,964	$	(29,660	)	$	978,304	72.2	%	17.8	%	$	(8,632	)	0.9	%	$	999,332
Other reinsurers balances > $20 million		155,446		(4,309	)		151,137	11.2	%	2.7	%		(4,841	)	3.1	%		150,605
Other reinsurers balances < $20 million		283,720		(57,826	)		225,894	16.6	%	4.1	%		(9,485	)	3.3	%		274,235
Total	$	1,447,130	$	(91,795	)	$	1,355,335	100.0	%	24.6	%	$	(22,958	)	1.6	%	$	1,424,172

At December 31, 2009, 97.8% (December 31, 2008: 97.1%) of our gross recoverables were collectible from reinsurers rated the equivalent of A- or better by internationally recognised rating agencies.

Top 10 Reinsurers (net of collateral)	% of Total Gross Recoverable Net of Collateral		% of Total Shareholders’ Equity
Transatlantic Reinsurance Co.	13.7	%	3.4	%
Partner Reinsurance Co of US	13.6	%	3.4	%
Swiss Reinsurance America Corporation	12.9	%	3.2	%
XL Reinsurance America Inc	7.8	%	1.9	%
Berkley Insurance Company	6.7	%	1.7	%
Ace Property & Casualty Ins	5.6	%	1.4	%
Lloyds of London	5.0	%	1.2	%
Federal Insurance Company	2.6	%	0.7	%
Munich Re America, Inc	2.5	%	0.6	%
Liberty Mutual Insurance Co.	2.4	%	0.6	%
	72.8	%	18.1	%

17

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

	Quarter ended December 31, 2009									Year ended December 31, 2009
Reserve for unpaid losses and loss expenses	Gross			Recoveries			Net			Gross			Recoveries			Net
Beginning of period		6,579,914			(1,374,824	)	$	5,205,090			6,244,783			(1,314,551	)	$	4,930,232
Incurred		442,057			(95,545	)		346,512			1,742,655			(318,783	)		1,423,872
Paid		(450,658	)		89,772			(360,886	)		(1,509,399	)		256,352			(1,253,047	)
Foreign exchange (gains) losses		(7,180	)		(461	)		(7,641	)		86,094			(4,076	)		82,018
End of period[a]	$	6,564,133		$	(1,381,058	)	$	5,183,075		$	6,564,133		$	(1,381,058	)	$	5,183,075

[a] As at December 31, 2009, the gross reserve for losses and loss expenses included IBNR of $4,669 million, or 71%, of total gross reserves for loss and loss expenses. As at December 31, 2008, the comparable amount was $4,190 million, or 67%.

18

AXIS Capital Holdings Limited

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

	Quarter ended December 31, 2009									Year ended December 31, 2009
	Insurance			Reinsurance			Total			Insurance			Reinsurance				Total
Gross losses paid	$	324,989		$	125,676		$	450,665		$	994,723		$	514,676			$	1,509,399
Reinsurance recoveries		(89,773	)		—			(89,773	)		(256,352	)		—				(256,352	)
Net losses paid		235,216			125,676			360,892			738,371			514,676				1,253,047
Change in:
Reported case reserves		(122,563	)		20,902			(101,661	)		(289,511	)		96,391				(193,120	)
IBNR		47,741			45,313			93,054			216,562			209,814				426,376
Reinsurance recoveries on unpaid loss and loss expense reserves		1,157			(6,930	)		(5,773	)		(52,728	)		(9,703	)			(62,431	)
TOTAL NET INCURRED LOSSES AND LOSS EXPENSES	$	161,551		$	184,961		$	346,512		$	612,694		$	811,178			$	1,423,872
Gross reserve for losses and loss expenses	$	3,502,680		$	3,061,453		$	6,564,133		$	3,502,680		$	3,061,453			$	6,564,133
Prior years net favorable reserve development	$	72,694		$	47,303		$	119,997		$	210,861		$	212,311			$	423,172
Key Ratios
Net paid to net incurred percentage		145.6	%		67.9	%		104.1	%		120.5	%		63.4	%			88.0	%
Net paid losses / Net premiums earned		77.2	%		30.7	%		50.6	%		63.8	%		31.5	%			44.9	%
Change in net loss and loss expense reserves / Net premiums earned		(24.2	%)		14.5	%		(2.0	%)		(10.9	%)		18.1	%			6.1	%
Net loss and loss expense ratio		53.0	%		45.2	%		48.6	%		52.9	%		49.6	%	��		51.0	%

19

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

INSURANCE - QUARTERLY

	Quarter ended																		Year ended December 31,
	Q4 2009			Q3 2009			Q2 2009			Q1 2009			Q4 2008			Q4 2007			2009			2008
Gross losses paid	$	324,989		$	244,472		$	226,204		$	199,058		$	270,708		$	239,712		$	994,723		$	781,547
Reinsurance recoveries		(89,773	)		(64,649	)		(65,170	)		(36,760	)		(137,255	)		(79,699	)		(256,352	)		(345,496	)
Net losses paid		235,216			179,823			161,034			162,298			133,453			160,013			738,371			436,051
Change in:
Reported case reserves		(122,563	)		(97,814	)		(38,506	)		(30,628	)		32,149			(9,888	)		(289,511	)		203,732
IBNR		47,741			11,911			65,060			91,850			(159,195	)		(17,802	)		216,562			35,217
Reinsurance recoveries on unpaid loss and loss expense reserves		1,157			17,308			(377	)		(70,816	)		103,538			(30,671	)		(52,728	)		(15,332	)
TOTAL NET INCURRED LOSSES AND LOSS EXPENSES	$	161,551		$	111,228		$	187,211		$	152,704		$	109,945		$	101,652		$	612,694		$	659,668
Gross reserve for losses and loss expenses	$	3,502,680		$	3,572,266		$	3,654,192		$	3,603,197		$	3,547,071		$	3,333,743		$	3,502,680		$	3,547,071
Prior years net favorable reserve development	$	72,694		$	55,401		$	46,860		$	35,906		$	60,045		$	70,870		$	210,861		$	202,339
Key Ratios
Net paid to net incurred percentage		145.6	%		161.7	%		86.0	%		106.3	%		121.4	%		157.4	%		120.5	%		66.1	%
Net paid losses / Net premiums earned		77.2	%		64.5	%		53.9	%		58.9	%		45.6	%		54.5	%		63.8	%		36.9	%
Change in net loss and loss expense reserves / Net premiums earned		(24.2	%)		(24.6	%)		8.8	%		(3.5	%)		(8.0	%)		(19.9	%)		(10.9	%)		18.9	%
Net loss and loss expense ratio		53.0	%		39.9	%		62.6	%		55.4	%		37.6	%		34.7	%		52.9	%		55.8	%

20

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

REINSURANCE - QUARTERLY

	Quarter ended																		Year ended December 31,
	Q4 2009			Q3 2009			Q2 2009			Q1 2009			Q4 2008			Q4 2007			2009			2008
Gross losses paid	$	125,676		$	132,292		$	144,913		$	111,795		$	139,509		$	103,817		$	514,676		$	510,154
Reinsurance recoveries		—			—			—			—			—			—			—			(7,244	)
Net losses paid		125,676			132,292			144,913			111,795			139,509			103,817			514,676			502,910
Change in:
Reported case reserves		20,902			56,294			(19,222	)		38,417			41,589			162			96,391			230,114
IBNR		45,313			12,349			66,016			86,136			(17,585	)		85,058			209,814			324,054
Reinsurance recoveries on unpaid loss and loss expense reserves		(6,930	)		(1,054	)		(666	)		(1,053	)		379			(143	)		(9,703	)		(3,980	)
TOTAL NET INCURRED LOSSES AND LOSS EXPENSES	$	184,961		$	199,881		$	191,041		$	235,295		$	163,892		$	188,894		$	811,178		$	1,053,098
Gross reserve for losses and loss expenses	$	3,061,453		$	3,007,648		$	2,907,702		$	2,789,081		$	2,697,712		$	2,253,568		$	3,061,453		$	2,697,712
Prior years net favorable reserve development	$	47,303		$	66,698		$	49,882		$	48,428		$	65,116		$	21,131		$	212,311		$	173,948
Key Ratios
Net paid to net incurred percentage		67.9	%		66.2	%		75.9	%		47.5	%		85.1	%		55.0	%		63.4	%		47.8	%
Net paid losses / Net premiums earned		30.7	%		31.0	%		35.5	%		28.7	%		38.1	%		27.6	%		31.5	%		33.4	%
Change in net loss and loss expense reserves / Net premiums earned		14.5	%		15.8	%		11.3	%		31.7	%		6.7	%		22.6	%		18.1	%		36.6	%
Net loss and loss expense ratio		45.2	%		46.8	%		46.8	%		60.4	%		44.8	%		50.2	%		49.6	%		70.0	%

21

AXIS Capital Holdings Limited

ESTIMATED NET LOSSES TO PEAK ZONE PROPERTY CATASTROPHE LOSSES - AS OF JANUARY 1, 2010

		Group Estimated Net Losses (in millions of U.S. dollars)						Estimated Industry Losses (in billions of U.S. dollars)
Zones	Perils	50 Year Return Period		100 Year Return Period		250 Year Return Period		50 Year Return Period		100 Year Return Period		250 Year Return Period
United States	Hurricane	$	692.9	$	958.5	$	1,292.3	$	78.1	$	121.1	$	194.6
California	Earthquake		391.4		671.7		968.0		16.3		27.9		50.0
Europe	Windstorm		432.9		679.4		945.5		21.2		30.3		44.0
Japan	Earthquake		234.5		325.6		595.9		14.7		20.8		37.8
Japan	Windstorm		91.1		137.0		150.8		15.3		20.8		33.8

For natural peril catastrophes, based on our current tolerances, we are not willing to lose more than 25% of our prior year-end capital for a modeled single occurrence 1-in-250 year return period probable maximum net loss. We reserve the right to change these thresholds at any time.

The above table shows our net loss estimates to the peak natural catastrophe territories at January 1, 2010. We have developed these loss estimates using multiple commercially available catastrophe models and our own assessments for non-modeled exposures. These models allow us to simulate many hypothetical loss scenarios to supplement our underwriting judgment. These estimates include assumptions regarding the location, size and magnitude of an event, the frequency of events, the construction type and damageability of property in a zone, and the cost of rebuilding property in a zone. Loss estimates for non-U.S. territories will be subject to fluctuations in currency rates, although from a financial statement point of view, we may mitigate this currency variability. Return period refers to the frequency with which losses of a given amount or greater are expected to occur.

The figures take into account the fact that an event may trigger claims in a number of lines of business. For instance, our U.S hurricane modeling includes, among other things, the estimated pre-tax impact to our financial results arising from our catastrophe, property, engineering, energy, marine and aviation lines of business. As indicated in the table above, our modeled single occurrence 1-in-100 year return period U.S. hurricane probable maximum loss, net of reinsurance, is approximately $958 million (or 17% of shareholders’ equity at December 31, 2009). According to our modeling, there is a one percent chance that our losses incurred in any single U.S. hurricane event could be in excess of $958 million. Conversely, there is a 99% chance that the loss from a U.S. hurricane will fall below $958 million. We estimate that, at such hypothetical loss levels, aggregate industry losses would be approximately $121 billion, resulting in an estimated market share of insured losses for the Company of 0.8%.

Net loss estimates are before income tax, net of reinstatement premiums, and net of reinsurance recoveries. The estimates set forth above are based on assumptions (see above) that are inherently subject to significant uncertainties and contingencies. These uncertainties and contingencies can affect actual losses and could cause actual losses to differ materially from those expressed above. In particular, modeled loss estimates do not necessarily accurately predict actual losses, and may significantly misstate actual losses. Such estimates, therefore, should not be considered as a representation of actual losses. Our estimated net losses from peak zone catastrophes may change from period to period as a result of several factors, which include but are not limited to, updates to vendor catastrophe models, changes in our own modeling, changes in our underwriting portfolios and changes in foreign exchange rates.

22

AXIS Capital Holdings Limited

EARNINGS PER COMMON SHARE INFORMATION - AS REPORTED, GAAP

	Three months ended December 31,					Year ended December 31,
	2009			2008		2009		2008
Net income available to common shareholders	$	282,063		$	130,858	$	461,011	$	350,501
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Weighted average basic shares outstanding		136,049			136,433		137,279		140,322
Dilutive share equivalents:
Warrants		11,480	��		10,293		10,616		12,023
Restricted stock		2,387			1,921		1,744		1,674
Options		757			716		711		1,301
Restricted stock units		45			—		21		—
Weighted average diluted shares outstanding		150,718			149,363		150,371		155,320
EARNINGS PER COMMON SHARE
Basic	$	2.07		$	0.96	$	3.36	$	2.50
Diluted	$	1.87		$	0.88	$	3.07	$	2.26

23

AXIS Capital Holdings Limited

EARNINGS PER COMMON SHARE INFORMATION AND COMMON SHARE ROLLFOWARD - QUARTERLY

	Quarter ended
	Q4 2009			Q3 2009			Q2 2009			Q1 2009			Q4 2008			Q4 2007
Net income (loss) available to common shareholders	$	282,063		$	(95,892	)	$	159,161		$	115,677		$	130,858		$	306,100
COMMON SHARES OUTSTANDING
Common Shares - at beginning of period		137,835			137,710			137,622			136,212			137,991			145,710
Shares issued		158			129			93			1,630			13			62
Shares repurchased for treasury		(5,853	)		(4	)		(5	)		(220	)		(1,792	)		(3,240	)
Shares repurchased and cancelled		—			—			—			—			—			(12	)
Common Shares - at end of period		132,140			137,835			137,710			137,622			136,212			142,520
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Weighted average basic shares outstanding		136,049			137,904			137,849			137,316			136,433			143,877
Dilutive share equivalents:
Warrants[a]		11,480			—			10,018			9,729			10,293			13,406
Restricted stock[a]		2,387			—			1,332			1,308			1,921			2,479
Options[a]		757			—			656			668			716			1,970
Restricted stock units		45			—			6			2			—			—
Weighted average diluted shares outstanding		150,718			137,904			149,861			149,023			149,363			161,732
EARNINGS PER COMMON SHARE
Basic	$	2.07		($	0.70	)	$	1.15		$	0.84		$	0.96		$	2.13
Diluted	$	1.87		($	0.70	)	$	1.06		$	0.78		$	0.88		$	1.89

^[a] Due to the net loss incurred in the three months ended September 30, 2009, these securities were not included in the computation of diluted earnings per share, because of their anti-dilutive effect.

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AXIS Capital Holdings Limited

DILUTED BOOK VALUE PER COMMON SHARE ANALYSIS- TREASURY STOCK METHOD^[a]

	At December 31, 2009
	Weighted Average Strike Price		Common Shareholders’ Equity		Outstanding Common Shares net of Treasury Shares	Per share
Closing stock price						$	28.41
Book value per common share			$	5,000,244	132,140	$	37.84
Dilutive securities:
Warrants	$	12.36		—	11,165		(2.95	)
Restricted stocks				—	4,388		(1.03	)
Options	$	21.56		—	669		(0.16	)
Restricted stock units				—	167		(0.03	)
Phantom stock units				—	67		(0.02	)
Diluted book value per common share			$	5,000,244	148,596	$	33.65

	At December 31, 2008
	Weighted Average Strike Price		Common Shareholders’ Equity		Outstanding Common Shares net of Treasury Shares	Per share
Closing stock price						$	29.12
Book value per common share			$	3,961,041	136,211	$	29.08
Dilutive securities:
Warrants	$	12.40		—	11,317		(2.23	)
Restricted stocks				—	5,163		(0.90	)
Options	$	21.20		—	834		(0.15	)
Phantom stock units				—	62		(0.01	)
Diluted book value per common share			$	3,961,041	153,588	$	25.79

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

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AXIS Capital Holdings Limited

NON-GAAP FINANCIAL MEASURE RECONCILIATION

	Quarter ended December 31,						Year ended December 31,
	2009			2008			2009			2008
	(in thousands)
Net income available to common shareholders	$	282,063		$	130,858		$	461,011		$	350,501
Adjustment for net realized investment (gains) losses		(6,056	)		33,425			311,584			85,267
Adjustment for associated tax impact		231			(1,429	)		(6,354	)		194
Operating income		276,238			162,854			766,241			435,962
Adjustment for foreign exchange (gains) losses		(2,018	)		(22,347	)		28,561			(43,707	)
Adjustment for associated tax impact		278			55			1,993			(934	)
Operating income excluding foreign exchange gains/losses, net of tax	$	274,498		$	140,562		$	796,795		$	391,321
Net income per share - diluted	$	1.87		$	0.88		$	3.07		$	2.26
Adjustment for net realized investment (gains) losses		(0.04	)		0.22			2.07			0.55
Adjustment for associated tax impact		—			(0.01	)		(0.04	)		—
Operating income per share - diluted	$	1.83		$	1.09		$	5.10		$	2.81
Adjustment for foreign exchange (gains) losses		(0.01	)		(0.15	)		0.19			(0.28	)
Adjustment for associated tax impact		—			—			0.01			(0.01	)
Operating income excluding foreign exchange gains/losses, net of tax	$	1.82		$	0.94		$	5.30		$	2.52
Weighted average common shares and common share equivalents - diluted		150,718			149,363			150,371			155,320

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