AXIS Specialty Limited yesterday announced that it has been assigned an `A' ("Strong") financial strength and counterparty credit rating from Standard & Poor's.

The `A' financial strength rating has also been assigned to its four wholly-owned operating subsidiaries: AXIS Re Limited, AXIS Specialty Europe Limited, AXIS Reinsurance Company and AXIS Specialty Insurance Company.

Subject to Standard & Poor's due diligence at the time, it is also anticipated that the rating will be extended to Sheffield Insurance Company upon the receipt of regulatory approval of the transaction.

John Charman, president and chief executive officer of AXIS Specialty, said, "We believe that our rating from S&P is a substantive confirmation of all our efforts in 2002. We now have global licensing capabilities and a fully developed infrastructure and management team to support them. From a standing start a year ago, we have the ability to deploy our capital in the most important insurance and reinsurance markets in the world."

Andrew Cook, chief financial officer at AXIS Specialty told The Royal Gazette: "We feel that this rating is another first for Axis.

"We were first out of the box with the announcement of raising capital, we got our capital first, had our A.M. Best rating first, and we were first to place risk in Bermuda.

"It is also a reflection of all the hard work the whole management team has put in in terms of building our infrastructure and updating our licences and spending the time necessary with S& P so that they understood the story of what we're trying to accomplish as a firm."

In addition, Standard & Poor's anticipates assigning its `A' financial strength rating to Sheffield Insurance Co., a writer of specialty excess and surplus lines.

AXIS is expected to acquire Sheffield's corporate shell, licenses, and business written under current management.

The assignment of Sheffield's rating will depend on levels of capitalization and reinsurance ceded to Axis deemed appropriate by Standard & Poor's, the continuation of Sheffield's current management, and Standard & Poor's review of Sheffield's overall business and financial profile at the time the acquisition is completed. Standard & Poor's issued a release yesterday saying: We expect that Axis will operate with excellent profitability and extremely strong capital in 2003.

New writings will increase aggregate exposure, but management will distribute risk appropriately. Capitalization will remain a decided strength for the rating."

AXIS Specialty Limited is a Bermuda based company, with shareholders' equity in excess of $1.8 billion, focusing on reinsurance and specialty lines of insurance. It is rated A- (Excellent) by A.M. Best Company, Inc.