AXIS Capital Holdings Limited (AXS) 8-K Axis Capital Reports Second Quarter Operating Income of $180 Million

Exhibit 99.1

Investor Contacts	Media Contacts
Linda Ventresca	Michael Herley
AXIS Capital Holdings Limited	Kekst and Company
investorrelations@axiscapital.com	michael_herley@kekst.com
(441) 405-2727	(212) 521-4897

AXIS CAPITAL REPORTS SECOND QUARTER OPERATING INCOME OF $180 MILLION

QUARTERLY DILUTED OPERATING EARNINGS PER SHARE OF $1.33 AND

ANNUALIZED OPERATING RETURN ON AVERAGE COMMON EQUITY OF 14.6%

Pembroke, Bermuda, August 3, 2010 - AXIS Capital Holdings Limited (“AXIS Capital”) (NYSE: AXS) today reported net income available to common shareholders for the second quarter of 2010 of $205 million, or $1.51 per diluted common share, compared with $159 million, or $1.06 per diluted common share, for the second quarter of 2009. Net income for the six months ended June 30, 2010 was $317 million, or $2.28 per diluted common share, compared with $275 million, or $1.84 per diluted common share, for the corresponding period in 2009.

Operating income for the second quarter of 2010 was $180 million, or $1.33 per diluted common share, compared with $183 million, or $1.22 per diluted common share, for the second quarter of 2009. Operating income for the six months ended June 30, 2010 was $276 million, or $1.99 per diluted common share, compared with $338 million, or $2.26 per diluted common share, for the first six months of 2009.

AXIS Capital Holdings Limited, 92 Pitts Bay Road, Pembroke, Bermuda HM08

Tel. 441.496.2600 Fax 441.296.3140

www.axiscapital.com

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Second Quarter Highlights¹

• Gross premiums written of $940 million, an increase of 3%;

• Net premiums written of $789 million, an increase of 13%;

• Net premiums earned of $735 million, an increase of 4%;

• Total underwriting income of $121 million, a decrease of 14%;

• Combined ratio of 86.2% increased 5.8 percentage points;

• Net favorable prior year reserve development of $79 million, pre-tax, benefiting the combined ratio by 10.7 points, compared with $97 million, benefiting the combined ratio in the same period last year by 13.7 points;

• Net investment income of $83 million, a decrease of 26%;

• Total return on cash and investments was 1.3% (pre-tax);

• Net cash flows from operations of $203 million;

• Operating income of $180 million, representing an annualized operating return on average common equity² of 14.6%;

• Shareholders’ equity of $5.5 billion;

• Share repurchases in the open market of $121 million in the quarter; and

• Diluted book value per common share of $36.57, an increase of 6% in the quarter.

Commenting on the second quarter 2010 financial results, John Charman, Chief Executive Officer and President of AXIS Capital, stated: “Given the historically low investment yield environment coupled with challenging property and casualty market conditions, we are pleased with our performance during the second quarter. For the quarter, we reported annualized operating return on average common equity of 14.6%, an increase in diluted book value per share of 6% and a combined ratio of 86.2%. During the second quarter, we also took advantage of depressed valuations to buy back $121 million worth of common shares in the open market.”

¹ All comparisons are with the same period last year unless stated otherwise.

² Calculated using operating income divided by average common shareholders’ equity for the period. The presentation of operating income available to common shareholders is a “non-GAAP financial measure” as defined in Regulation G. The reconciliation of operating income to net income available to common shareholders (the most directly comparable GAAP financial measure) is provided on page 10 of this release. A discussion of the presentation of operating income begins on page 12 of this release.

AXIS Capital Holdings Limited, 92 Pitts Bay Road, Pembroke, Bermuda HM08

Tel. 441.496.2600 Fax 441.296.3140

www.axiscapital.com

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Segment Highlights

Insurance Segment

Our insurance segment reported underwriting income for the quarter of $42 million, up 168%, from the second quarter of 2009. Net premiums written increased in the second quarter of 2010, primarily due to changes in certain of our ceded reinsurance programs. The segment’s current accident year loss ratio improved from 78.3% in the second quarter of 2009 to 61.7% this quarter. The second quarter of 2010 benefited primarily from a lower level of claims activity in our credit and political risk and aviation lines of business. Partially offsetting this were increased acquisition costs reflecting changes in our ceded reinsurance purchasing, as well as prior year commission adjustments. General and administrative expenses were also higher than the prior year, reflecting additional costs associated with the build-out of the segment’s platform. The prior year quarter’s underwriting result included the recognition of a $15 million fair value charge related to an insurance derivative contract, which we settled in the fourth quarter of 2009. Therefore, there was no impact from this contract in 2010. Net favorable prior period reserve development was $31 million, or 10.1 points, this quarter compared with $47 million, or 15.7 points, in the second quarter of 2009.

Our insurance segment reported gross premiums written in the quarter of $613 million, an increase of 16% from the prior year quarter. The increase was primarily driven by our property and marine lines of business. Property premiums increased largely due to select new business opportunities in the onshore energy market, as well as in the U.S. property markets where we have written new, primarily non-catastrophe exposed, business. Rate increases on offshore energy business resulting from the Deepwater Horizon event, as well as increases in our share of certain policies and select new business opportunities, drove the increase in marine premiums.

AXIS Capital Holdings Limited, 92 Pitts Bay Road, Pembroke, Bermuda HM08

Tel. 441.496.2600 Fax 441.296.3140

www.axiscapital.com

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Reinsurance Segment

Our reinsurance segment reported underwriting income of $79 million for the quarter, a 37% decrease compared with the second quarter of 2009. The segment’s current accident year loss ratio increased from 59.0% in the second quarter of 2009 to 68.3% this quarter, largely due to a $26 million increase in our estimate of pre-tax net losses, net of related reinstatement premiums, for the Chilean earthquake. Net favorable prior period reserve development was $48 million, or 11.1 points, this quarter compared with $50 million, or 12.2 points, in the second quarter of 2009.

Our reinsurance segment reported gross premiums written in the quarter of $327 million, down 16% from the second quarter of 2009 largely due to shifting renewal dates on certain treaties in our property and motor lines.

Investments

Net investment income for the quarter of $83 million represented a decrease of $22 million, or 21%, relative to the first quarter of this year and a decrease of $30 million, or 26%, relative to the second quarter of 2009. Net investment income from fixed maturities and cash and cash equivalents was $88 million this quarter, compared with $93 million in the first quarter of this year and $103 million in the second quarter of 2009. The decline was primarily due to lower reinvestment yields and, to a lesser extent, negative foreign exchange movements. Our alternative investment portfolio (“other investments”) generated a $2 million loss this quarter, amidst broader market declines. This compared to income of $16 million and $12 million in the first quarter of this year and the second quarter of 2009, respectively.

Net realized investment gains were $25 million, compared to net realized investment losses of $24 million in the prior year quarter. The prior year quarter included other than temporary impairment charges of $21 million, compared to $7 million for the second quarter of 2010.

Supplementary information relating to our investment portfolio at June 30, 2010 is available in the Investor Information section of our website.

AXIS Capital Holdings Limited, 92 Pitts Bay Road, Pembroke, Bermuda HM08

Tel. 441.496.2600 Fax 441.296.3140

www.axiscapital.com

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Capitalization / Shareholders’ Equity

Total capitalization at June 30, 2010 was $6.5 billion, including $1.0 billion of long-term debt and $0.5 billion of preferred equity. At June 30, 2010, diluted book value per common share, on a treasury stock basis, was $36.57 and book value per common share was $41.54, compared to $33.65 and $37.84, respectively, as of December 31, 2009.

During the quarter, we repurchased 4.0 million common shares in the open market at an average price of $30.59 per share, for a total cost of $121 million. Subsequent to June 30, 2010 and through July 30, 2010, we repurchased a further 0.3 million common shares at an average price of $29.56 per share, for a total cost of $10 million. As of July 30, 2010, we have approximately $123 million of remaining authorization for common share repurchases through December 2011.

Conference Call

We will host a conference call on Wednesday August 4, 2010 at 8:00 AM (Eastern) to discuss the second quarter financial results and related matters. The teleconference can be accessed by dialing (866) 843-0890 (U.S. callers) or (412) 317-9250 (international callers) approximately ten minutes in advance of the call and entering the code 7-9-9-3-2-6-4. A live, listen-only webcast of the call will also be available via the Investor Information section of the Company’s website at www.axiscapital.com.

In addition, a financial supplement relating to our financial results for the quarter ended June 30, 2010 is available in the Investor Information section of our website.

AXIS Capital is a Bermuda-based global provider of specialty lines insurance and treaty reinsurance with shareholders’ equity at June 30, 2010 of $5.5 billion and locations in Bermuda, the United States, Europe, Singapore, Canada and Australia. Its operating subsidiaries have been assigned a rating of “A+” (“Strong”) by Standard & Poor’s and “A” (“Excellent”) by A.M. Best. AXIS Capital and AXIS Specialty Finance LLC have been assigned senior unsecured debt ratings of A- (stable) by Standard & Poor’s and Baa1 (stable) by Moody’s Investors Service. For more information about AXIS Capital, visit our website atwww.axiscapital.com.

AXIS Capital Holdings Limited, 92 Pitts Bay Road, Pembroke, Bermuda HM08

Tel. 441.496.2600 Fax 441.296.3140

www.axiscapital.com

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AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED BALANCE SHEETS

JUNE 30, 2010 (UNAUDITED) AND DECEMBER 31, 2009

	2010			2009
	(in thousands, except per share amounts)
Assets
Investments:
Fixed maturities, available for sale, at fair value	$	10,064,335		$	9,718,355
Equity securities, available for sale, at fair value		201,173			204,375
Other investments, at fair value		547,873			570,276
Short-term investments		131,104			129,098
Total investments		10,944,485			10,622,104
Cash and cash equivalents		1,197,543			864,054
Accrued interest receivable		94,686			89,559
Insurance and reinsurance premium balances receivable		1,722,586			1,292,877
Reinsurance recoverable on unpaid and paid losses		1,545,080			1,424,172
Deferred acquisition costs		419,191			302,320
Prepaid reinsurance premiums		271,700			301,885
Securities lending collateral		107,167			129,814
Net receivable for investments sold		—			12,740
Goodwill and intangible assets		90,473			91,505
Other assets		165,369			175,494
Total assets	$	16,558,280		$	15,306,524
Liabilities
Reserve for losses and loss expenses	$	6,718,776		$	6,564,133
Unearned premiums		2,781,101			2,209,397
Insurance and reinsurance balances payable		199,463			173,156
Securities lending payable		108,167			132,815
Senior notes		993,843			499,476
Other liabilities		181,959			227,303
Net payable for investments purchased		79,669			—
Total liabilities		11,062,978			9,806,280
Shareholders’ Equity
Preferred shares - Series A and B		500,000			500,000
Common shares		1,930			1,903
Additional paid-in capital		2,038,158			2,014,815
Accumulated other comprehensive income		221,856			85,633
Retained earnings		3,824,111			3,569,411
Treasury shares, at cost		(1,090,753	)		(671,518	)
Total shareholders’ equity		5,495,302			5,500,244
Total liabilities and shareholders’ equity	$	16,558,280		$	15,306,524

AXIS Capital Holdings Limited, 92 Pitts Bay Road, Pembroke, Bermuda HM08

Tel. 441.496.2600 Fax 441.296.3140

www.axiscapital.com

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AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2010 AND 2009

	Three months ended						Six months ended
	2010			2009			2010			2009
	(in thousands, except per share amounts)
Revenues
Net premiums earned	$	735,027		$	706,770		$	1,431,219		$	1,372,129
Net investment income		82,584			112,220			187,203			211,512
Other insurance related income (loss)		217			(14,261	)		843			(23,656	)
Net realized investment gains (losses):
Other-than-temporary impairment losses		(7,533	)		(22,896	)		(14,490	)		(52,796	)
Portion of impairment losses transferred to other comprehensive income		107			1,443			1,556			1,443
Other realized investment gains (losses)		32,045			(2,225	)		53,729			(12,922	)
Total net realized investment gains (losses)		24,619			(23,678	)		40,795			(64,275	)
Total revenues		842,447			781,051			1,660,060			1,495,710
Expenses
Net losses and loss expenses		403,370			378,252			871,632			766,251
Acquisition costs		124,176			103,309			240,825			205,285
General and administrative expenses		106,062			86,949			205,831			173,506
Foreign exchange losses (gains)		(27,229	)		24,184			(35,376	)		23,795
Interest expense and financing costs		15,697			7,971			24,385			15,892
Total expenses		622,076			600,665			1,307,297			1,184,729
Income before income taxes		220,371			180,386			352,763			310,981
Income tax expense		6,300			12,006			17,661			17,703
Net income		214,071			168,380			335,102			293,278
Preferred shares dividends		9,219			9,219			18,438			18,438
Net income available to common shareholders	$	204,852		$	159,161		$	316,664		$	274,840
Weighted average common shares and common share equivalents:
Basic		121,766			137,849			124,961			137,586
Diluted		135,665			149,861			138,899			149,448
Earnings per common share:
Basic	$	1.68		$	1.15		$	2.53		$	2.00
Diluted	$	1.51		$	1.06		$	2.28		$	1.84
Cash dividends declared per common share	$	0.21		$	0.20		$	0.42		$	0.40

AXIS Capital Holdings Limited, 92 Pitts Bay Road, Pembroke, Bermuda HM08

Tel. 441.496.2600 Fax 441.296.3140

www.axiscapital.com

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AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED SEGMENT DATA (UNAUDITED)

FOR THE THREE MONTHS ENDED JUNE 30, 2010 AND 2009

	2010									2009
	Insurance			Reinsurance			Total			Insurance			Reinsurance			Total
Gross premiums written	$	612,893		$	326,980		$	939,873		$	526,764		$	387,877		$	914,641
Net premiums written		466,880			322,058			788,938			313,136			387,877			701,013
Net premiums earned		301,652			433,375			735,027			298,975			407,795			706,770
Other insurance related income (loss)		217			—			217			(14,956	)		695			(14,261	)
Net losses and loss expenses		(155,494	)		(247,876	)		(403,370	)		(187,211	)		(191,041	)		(378,252	)
Acquisition costs		(40,567	)		(83,609	)		(124,176	)		(28,306	)		(75,003	)		(103,309	)
General and administrative expenses		(64,045	)		(22,817	)		(86,862	)		(52,893	)		(17,525	)		(70,418	)
Underwriting income	$	41,763		$	79,073			120,836		$	15,609		$	124,921			140,530
Corporate expenses								(19,200	)								(16,531	)
Net investment income								82,584									112,220
Net realized investment gains (losses)								24,619									(23,678	)
Foreign exchange (losses) gains								27,229									(24,184	)
Interest expense and financing costs								(15,697	)								(7,971	)
Income before income taxes							$	220,371								$	180,386
Net loss and loss expense ratio		51.6	%		57.2	%		54.9	%		62.6	%		46.8	%		53.5	%
Acquisition cost ratio		13.4	%		19.3	%		16.9	%		9.5	%		18.4	%		14.6	%
General and administrative expense ratio		21.2	%		5.3	%		14.4	%		17.7	%		4.3	%		12.3	%
Combined ratio		86.2	%		81.8	%		86.2	%		89.8	%		69.5	%		80.4	%

AXIS Capital Holdings Limited, 92 Pitts Bay Road, Pembroke, Bermuda HM08

Tel. 441.496.2600 Fax 441.296.3140

www.axiscapital.com

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AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED SEGMENT DATA (UNAUDITED)

FOR THE SIX MONTHS ENDED JUNE 30, 2010 AND 2009

	2010									2009
	Insurance			Reinsurance			Total			Insurance			Reinsurance			Total
Gross premiums written	$	985,822		$	1,379,252		$	2,365,074		$	890,922		$	1,347,214		$	2,238,136
Net premiums written		673,692			1,358,881			2,032,573			525,151			1,338,163			1,863,314
Net premiums earned		557,933			873,286			1,431,219			574,598			797,531			1,372,129
Other insurance related income (loss)		843			—			843			(24,761	)		1,105			(23,656	)
Net losses and loss expenses		(286,197	)		(585,435	)		(871,632	)		(339,915	)		(426,336	)		(766,251	)
Acquisition costs		(71,708	)		(169,117	)		(240,825	)		(54,509	)		(150,776	)		(205,285	)
General and administrative expenses		(125,655	)		(44,668	)		(170,323	)		(103,374	)		(35,796	)		(139,170	)
Underwriting income	$	75,216		$	74,066			149,282		$	52,039		$	185,728			237,767
Corporate expenses								(35,508	)								(34,336	)
Net investment income								187,203									211,512
Net realized investment gains (losses)								40,795									(64,275	)
Foreign exchange (losses) gains								35,376									(23,795	)
Interest expense and financing costs								(24,385	)								(15,892	)
Income before income taxes							$	352,763								$	310,981
Net loss and loss expense ratio		51.3	%		67.0	%		60.9	%		59.2	%		53.5	%		55.8	%
Acquisition cost ratio		12.9	%		19.4	%		16.8	%		9.4	%		18.9	%		15.0	%
General and administrative expense ratio		22.5	%		5.1	%		14.4	%		18.0	%		4.5	%		12.6	%
Combined ratio		86.7	%		91.5	%		92.1	%		86.6	%		76.9	%		83.4	%

AXIS Capital Holdings Limited, 92 Pitts Bay Road, Pembroke, Bermuda HM08

Tel. 441.496.2600 Fax 441.296.3140

www.axiscapital.com

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AXIS CAPITAL HOLDINGS LIMITED

NON-GAAP FINANCIAL MEASURE RECONCILIATION (UNAUDITED)

OPERATING INCOME AND OPERATING RETURN ON AVERAGE COMMON EQUITY

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2010 AND 2009

	Three months ended						Six months ended
	2010			2009			2010			2009
	(in thousands, except per share amounts)
Operating income	$	180,180		$	182,634		$	275,830		$	338,445
Net realized investment gains (losses), net of tax(1)		24,672			(23,473	)		40,834			(63,605	)
Net income		204,852			159,161			316,664			274,840
Operating income per share - diluted	$	1.33		$	1.22		$	1.99		$	2.26
Net realized investment gains (losses), net of tax		0.18			(0.16	)		0.29			(0.42	)
Net income per share - diluted	$	1.51		$	1.06		$	2.28		$	1.84
Weighted average common shares and common share equivalents - diluted		135,665			149,861			138,899			149,448
Average common shareholders’ equity		4,935,661			4,200,978			4,997,773			4,185,080
Annualized return on average common equity		16.6	%		15.2	%		12.7	%		13.1	%
Annualized operating return on average common equity		14.6	%		17.4	%		11.0	%		16.2	%

(1) Tax impact of ($53) and ($205) for the three months ended June 30, 2010 and 2009, respectively, and ($39) and ($670) for the six months ended June 30, 2010 and 2009, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors including the ability to utilize capital losses.

AXIS Capital Holdings Limited, 92 Pitts Bay Road, Pembroke, Bermuda HM08

Tel. 441.496.2600 Fax 441.296.3140

www.axiscapital.com

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Cautionary Note Regarding Forward-Looking Statements

This release contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements contained in this release include our expectations regarding market conditions and information regarding our estimates of losses related to natural disasters. 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) actual claims exceeding our loss reserves, (3) general economic, capital, and credit market conditions and the persistence of the recent financial crisis, (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) inability to obtain additional capital on favorable terms, or at all, (8) the loss of one or more key executives, (9) a decline in our ratings with rating agencies, (10) the loss of business provided to us by our major brokers, (11) changes in accounting policies or practices, (12) changes in governmental regulations, (13) increased competition, (14) changes in the political environment of certain countries in which we operate or underwrite business, (15) fluctuations in interest rates, credit spreads, equity prices and/or currency values, and (16) the other factors set forth in our most recent report on Form 10-K, Form 10-Q and other documents on file with the Securities and Exchange Commission. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

AXIS Capital Holdings Limited, 92 Pitts Bay Road, Pembroke, Bermuda HM08

Tel. 441.496.2600 Fax 441.296.3140

www.axiscapital.com

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Non-GAAP Financial Measures

In this release, we have presented operating income, which is a “non-GAAP financial measure” as defined in Regulation G. Operating income represents after-tax operational results without consideration of after-tax net realized investment gains (losses). A reconciliation of operating income to the most directly comparable GAAP financial measure, net income available to common shareholders, is included above.

In addition, this press release presents the following measures which are derived from the non-GAAP operating income measure:

1. Diluted operating earnings per share - represents operating income divided by diluted weighted average common shares and share equivalents; and

2. Annualized operating return on average common equity - represents operating income for the period, projected for a full year, as a percentage of average common equity for the period.

We present our results of operations in the way we believe will be most meaningful and useful to investors, analysts, rating agencies and others who use our financial information to evaluate our performance. This presentation includes the use of “operating income” and “annualized operating return on average common equity”, which is based on the “operating income” measure. Although the investment of premiums to generate income and realized investment gains (or losses) is an integral part of our operations, the determination to realize investment gains (or losses) is independent of the underwriting process and is heavily influenced by the availability of market opportunities. Furthermore, many users believe that the timing of the realization of investment gains (or losses) is somewhat opportunistic for many companies. In this regard, certain users of our financial statements evaluate earnings excluding after-tax net realized investment gains (losses) to understand the profitability of recurring sources of income.

We believe that showing net income available to common shareholders exclusive of net realized gains (losses) reflects the underlying fundamentals of our business.

AXIS Capital Holdings Limited, 92 Pitts Bay Road, Pembroke, Bermuda HM08

Tel. 441.496.2600 Fax 441.296.3140

www.axiscapital.com

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In addition, we believe that this presentation enables investors and other users of our financial information to analyze performance in a manner similar to how our management analyzes the underlying business performance. We also believe this measure follows industry practice and, therefore, facilitates comparison of our performance with our peer group. We believe that equity analysts and certain rating agencies that follow us, and the insurance industry as a whole, generally exclude realized gains (losses) from their analyses for the same reasons.

AXIS Capital Holdings Limited, 92 Pitts Bay Road, Pembroke, Bermuda HM08

Tel. 441.496.2600 Fax 441.296.3140

www.axiscapital.com

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