Axis Capital Holdings’ results reflect a stable and resilient specialty-focused business, rating agency AM Best has observed, noting that underwriting performance and profitability metrics have improved in recent years.

The agency reflected on the difficulties faced by Axis at the start of the decade.

The comments came as Best affirmed the financial strength rating of A (excellent) and the long-term issuer credit ratings of “a+” (excellent) of the operating subsidiaries of the Bermudian-based company.

Best also has affirmed the long-term ICR of “bbb+” (good) and the indicative long-term issuer credit ratings of Axis Capital Holdings.

The outlook of these ratings is stable.

The ratings reflect a company balance sheet strength assessed as strongest, an adequate operating performance and a favourable business profile and appropriate enterprise risk management.

AM Best said: “Axis maintains the strongest level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, which places its balance sheet strength in the strongest assessment.

“The balance sheet strength assessment is supported by financial flexibility at the holding company level and within the operating subsidiaries, while also reflecting capital management strategies that have included consistent common and preferred dividends, as well as share repurchases.

“Reserves have developed favourably in recent years, except in 2023, when Axis strengthened casualty reserves for accident years 2017 to 2022 due to higher-than-expected social and economic inflation affecting claims experience.

“In 2025, Axis completed a loss portfolio transfer with Cavello Bay Reinsurance, retro-ceding approximately $2.3 billion in ceded reserves, related to casualty reinsurance business from 2021 and prior underwriting years. Financial leverage remains broadly in line with AM Best’s expectations.

“Axis’s operating performance is assessed as adequate. While Axis experienced earnings and underwriting volatility during the 2020-2022 period, the actions taken by management, including portfolio repositioning, casualty reserve strengthening, and the loss portfolio transfer transaction, have reduced volatility.

“As a result, underwriting performance and profitability metrics have improved in recent years, with results reflecting a stable and resilient specialty-focused business.”