Axis Specialty Ltd. and its affiliates have been affirmed the financial strength rating (FSR) of A (excellent) and the issuer credit ratings (ICR) of "a+" by AM Best Co.

Concurrently, Best has affirmed the ICR of "bbb+" and all existing debt ratings of Axis Capital Holdings Ltd. The outlook for all ratings is stable.

The ratings of Axis reflect its continued strong operating performance, excellent risk-based capitalisation, solid risk management controls and its highly experienced management team. Axis' operating strategy is to maintain a diversified book of business, both geographically and by line of business, according to the ratings agency.

The company, said Best, also has selectively expanded into professional lines and umbrella and excess liability coverages.

Axis' overall operating performance has been consistently strong with a six-year average combined ratio of 80.5 percent and a six-year average return on equity of 17.9 percent, both of which place the company among the leaders in its Bermuda peer group, Best added.

"AM Best expects Axis to continue managing its capital base in a very conservative manner within acceptable ranges to support its current ratings."