Axis Specialty Limited yesterday announced that its new reinsurance company, Axis Specialty Reinsurance Company, has received its New York regulatory approval and has been rated A- by A.M. Best Company, Inc.

Axis bought two “shell” companies in March this year from Connecticut Specialty Insurance Company and Royal & Sun Alliance Personal Insurance.

The two companies were renamed Axis Specialty Insurance Company (ASI) and Axis Specialty Reinsurance Company (ASR), respectively.

ASI received its Connecticut approvals in October.

Andrew Cook, the chief financial officer of parent company, AXIS Specialty Limited, said that this development had been in the works for several months: “It means that both companies are now fully licensed, fully capitalised and have got the A.M. Best rating.” He added 2002 was an infrastructure building year for AXIS. 2003 should be a year that sees more growth of the top line and expansion of our market presence.”

Mr. Cook said that ASR will have a stand alone reinsurance book in the US as opposed to doing retrocession business for the Bermuda parent: “Certain types of US business are not accessible from Bermuda and this gives us further opportunities to expand our top line,” he said.

Axis Reinsurance Company will have capital in excess of $375 million and will offer a full range of traditional and specialty property and liability reinsurance products, such as directors and officers, medical malpractice, umbrella, casualty clash, worker's compensation, marine, property pro rata, and property per risk.

Mike Morrill, president and Chief Executive Officer of Axis Re said: “We are very excited to be able to provide our US clients and intermediaries with solutions to their underwriting and capacity needs for these transformational times.”

The announcement comes one month after Axis announced that it had bought Sheffield Insurance Corporation and taken on 80 new staff from insurance broker Aon.

Although Sheffield was a “shell” company like the Connecticut firm, its purchase - for an undisclosed amount - gave Axis licences for writing insurance in a number of US states.

As a result of the purchases, Axis has a broad reach in the US market through ASI and ASR.