Axis Capital Holdings Ltd has had its credit ratings affirmed by AM Best, with the outlooks kept at stable.

The rating agency confirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a+” (Excellent) for Axis’ main operating subsidiaries, including Axis Speciality Ltd in Bermuda. AM Best also reaffirmed the Long-Term ICR of “bbb+” (Good) for the holding company itself, along with indicative issue ratings on senior and subordinated debt and preferred stock.

AM Best cited Axis’ “strongest” balance sheet strength, supported by high levels of risk-adjusted capital, financial flexibility and capital management strategies such as dividends and share buybacks. The company recently completed a $2.3 billion loss portfolio transfer with Cavello Bay Reinsurance, a subsidiary of Bermudian-based Enstar Group, covering older casualty reinsurance business.

While Axis’ underwriting performance has shown volatility in recent years, the agency noted corrective measures, including exiting property-catastrophe reinsurance, have led to more stable earnings and stronger loss and combined ratios.

AM Best added that Axis maintains a favourable business profile, ranking consistently among the world’s largest reinsurers, with a diversified portfolio and major Lloyd’s market presence.

The subsidiaries covered by the affirmation include Axis Speciality Ltd, Axis Re SE, Axis Reinsurance Company, Axis Speciality Europe SE, Axis Surplus Insurance Co and Axis Insurance Co.