AM Best has affirmed the Financial Strength Rating of A (Excellent) for AXIS Capital Holdings Limited and its operating subsidiaries. The agency maintained a stable outlook on all ratings, citing the company’s strongest balance sheet assessment and adequate operating performance.

The affirmation reflects AXIS’ robust capital position, measured by its Best’s Capital Adequacy Ratio (BCAR). The insurer maintains the strongest level of risk-adjusted capitalization, supported by financial flexibility at both the holding company and subsidiary levels.

Balance Sheet and Capital Management

AXIS’ balance sheet strength is underpinned by consistent capital management strategies, including common and preferred dividends and share repurchases. Financial leverage remains broadly in line with AM Best’s expectations.

Reserves have developed favorably in recent years, with a notable exception in 2023 when AXIS strengthened casualty reserves for accident years 2017 to 2022 due to higher-than-expected social and economic inflation. In 2025, the company completed a loss portfolio transfer with Cavello Bay Reinsurance Limited, retroceding approximately $2.3 billion in ceded reserves related to casualty reinsurance business from 2021 and prior underwriting years.

Operating Performance and Business Profile

Operating performance is assessed as adequate. While AXIS experienced earnings and underwriting volatility during the 2020-2022 period, management actions including portfolio repositioning and reserve strengthening have reduced this volatility. Recent results reflect a stable and resilient specialty-focused business.

AXIS consistently ranks among AM Best’s annual "World’s 50 Largest Reinsurers" list. The group maintains a well-diversified profile as a specialty underwriter of complex risks, with a significant presence in the Lloyd’s market. Its enterprise risk management framework is described as sophisticated and appropriate for its complex risk profile.

Affirmed Subsidiaries and Debt Ratings

The following subsidiaries received affirmed Financial Strength Ratings of A (Excellent) and Long-Term Issuer Credit Ratings of "a+" (Excellent):

• AXIS Specialty Limited
• AXIS Re SE
• AXIS Reinsurance Company
• AXIS Specialty Europe SE
• AXIS Surplus Insurance Company
• AXIS Insurance Company
• AXIS Specialty Insurance Limited

For AXIS Capital Holdings Limited, the indicative Long-Term Issue Credit Ratings under the current shelf registration are:

What the Numbers Show

The $2.3 billion loss portfolio transfer executed in 2025 represents a significant de-risking move, removing legacy casualty reserves from 2021 and earlier years. This transaction, combined with the 2023 reserve strengthening for inflation impacts, underscores a strategic shift toward stabilizing underwriting volatility and improving the predictability of future earnings metrics.

AXIS Capital (NYSE: AXS) has agreed to acquire the renewal rights to the Excess Liability business of DUAL North America, a leading specialty program administrator and part of DUAL Group, the specialist underwriting arm of Howden Group. Announced on Aug. 05, 2026, from Pembroke, Bermuda, the deal expands AXIS’s Casualty platform by adding a high-quality Excess Liability book. As part of the transaction, John Kopach, Executive Vice President of DUAL Excess Liability, will join AXIS. This acquisition strengthens AXIS’s position in the wholesale lower middle market while ensuring continuity for brokers and policyholders through a seamless transition plan.

Leadership Transition

John Kopach will assume the role of Head of Wholesale Lower Middle Market at AXIS, succeeding Britt Smith, who retired from the company in August. Based in AXIS’s Atlanta office, Kopach will report to Mike McKenna, Head of North America. McKenna highlighted the strategic value of the partnership, stating, "This transaction reflects the strong partnership and strategic relationship that AXIS shares with DUAL, and we are enthused to add this high-quality Excess Liability book to our Casualty platform." He added that the organization is excited to welcome Kopach into the leadership team.

Strategic Rationale

Ed Ashby, Chief Executive Officer of DUAL North America, emphasized the long-standing relationship between the two entities. "Our relationship with AXIS goes back many years, and this transaction is a reflection of how much that partnership continues to grow and evolve," Ashby said. He noted that the deal allows DUAL to focus on areas where it sees the clearest path to lead in its Casualty business, while providing a strong home for the Excess Liability book. Ashby praised Kopach’s contributions to growing the business at DUAL and wished him continued success at AXIS.

Operational Continuity

AXIS and DUAL have committed to working closely in the weeks ahead to ensure a seamless transition for brokers and policyholders. The companies aim to limit service interruption throughout the process. DUAL North America, which underwrites more than 20 programs across five divisions — Casualty, Commercial Property, Financial Lines, Personal Lines, and Surety — transacted more than $1.2bn in gross written premium in 2025. The company operates through a network of 7,000+ brokers and agents nationwide, backed by 30+ carrier partners.

What the Numbers Show

The acquisition underscores AXIS’s strategy to grow its Casualty line through targeted additions rather than broad diversification. By securing renewal rights rather than assuming existing policies immediately, AXIS mitigates transition risk while locking in future premium flow. The inclusion of key personnel like Kopach suggests that relationship capital and underwriting expertise are central to the value proposition of this deal. For investors, this move signals confidence in the resilience and growth potential of the lower middle market segment within AXIS’s broader portfolio.

AXIS Capital reported shareholders’ equity of $6.5 billion as of June 30, 2026. Its operating subsidiaries hold an "A+" ("Strong") financial strength rating from Standard & Poor’s and an "A" ("Excellent") rating from A.M. Best. The company operates across Bermuda, the United States, Europe, Singapore, and Canada.