Axis Capital Holdings Ltd. yesterday announced it expects to sell 21.5 million common shares in an initial public offering for $19.50 to $21.50 each.

The Bermuda-based insurer, which was formed in the wake of the September 11 terrorist attacks, said it expects to have a potential market value of about $3 billion based on that price range.

It filed its IPO prospectus with the Securities and Exchange Commission yesterday.

Axis, which wrote $608.6 million of gross premiums and posted $107.1 million in net income in the first quarter of 2003, originally announced it planned to go public in March.

In 2002, Axis wrote $1.1 billion of gross premiums and generated $265.1 million in net income, according to the filing. The company is selling 13.4 million shares while shareholders are offering an additional 8.1 million shares.

Axis predicted it will net about $256 million in proceeds, which it plans to use as additional capital for operations and general corporate purposes.

It will not get any of the proceeds from the stock sold by the shareholders, which include Marsh & McLennan Cos. Inc. and J.P. Morgan, according to the SEC filing.

AXIS will become the fourth post 9/11 Bermuda start-up to list on the New York Stock Exchange.

In the past 12 months, Montpelier Re, Platinum Underwriting and most recently Endurance Specialty, have also gone the IPO route.

Last year was an infrastructure building year for AXIS. With the opening of their Dublin office and expansion into the US market by acquiring three US companies and licences in Connecticut and New York they can now be described as a truly global player.

The high point to the year, however, was the receipt by the operating companies of a Standard & Poor's “A” rating.

The group covers two main sectors: specialty insurance and treaty reinsurance.

Their specialty insurance segment includes specialty risks (including terrorism, marine and aviation war risk and political risk); onshore and offshore energy; aviation and aerospace; commercial property; and marine.

The treaty reinsurance refers to reinsurance written in bulk rather than on a policy-by-policy basis.

The underlying policies include: property; workers' compensation, personal accident and life; professional liability; casualty clash; marine and aviation.

The stock sale will be managed by Morgan Stanley, Citigroup, Credit Suisse First Boston, J.P. Morgan and Merrill Lynch.

The underwriters have an option to buy an additional 3.2 million extra shares in case of heavy investor demand.

Axis, which has applied for a New York Stock Exchange listing under the symbol “AXS,” will have more than 151 million shares outstanding when the IPO is completed.