8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 4, 2008

AXIS CAPITAL HOLDINGS LIMITED

(Exact Name Of Registrant As Specified In Charter)

Bermuda	001-31721	98-0395986
(State of Incorporation)	(Commission File No.)	(I.R.S. Employer Identification No.)

92 Pitts Bay Road

Pembroke, Bermuda HM 08

(Address of principal executive offices, including zip code)

(441) 405-2600

(Registrant’s telephone number, including area code)

Not applicable

(Former name or address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e(4)(c))

Item 2.02 Results of Operations and Financial Condition.

On August 4, 2008, AXIS Capital Holdings Limited, a Bermuda company, issued a press release reporting its second quarter 2008 results and the availability of its second quarter 2008 financial supplement. The press release and the financial supplement are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

99.1	Press release dated August 4, 2008.
99.2	Second quarter 2008 Financial Supplement.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: August 4, 2008

AXIS CAPITAL HOLDINGS LIMITED
By:	/s/ Richard T. Gieryn, Jr.
	Richard T. Gieryn, Jr.
	General Counsel

EXHIBIT INDEX

Exhibit Number	Description of Document
99.1	Press release dated August 4, 2008.
99.2	Second quarter 2008 Financial Supplement.

EX-99.1

Exhibit 99.1

Investor Contacts	Media Contacts
Linda Ventresca	Joseph Kuo
AXIS Capital Holdings Limited	Kekst and Company
investorrelations@axiscapital.com	(212) 521-4800
(441) 405-2727

AXIS CAPITAL REPORTS SECOND QUARTER NET INCOME OF $231 MILLION

DILUTED EARNINGS PER SHARE OF $1.47 AND

ANNUALIZED RETURN ON AVERAGE COMMON EQUITY OF 19.2%

Pembroke, Bermuda, August 4, 2008 - AXIS Capital Holdings Limited (“AXIS Capital”) (NYSE: AXS) today reported net income available to common shareholders for the second quarter of 2008 of $231 million, or $1.47 per diluted common share, compared with $252 million, or $1.51 per diluted common share, for the second quarter of 2007. Net income for the six months ended June 30, 2008 was $469 million, or $2.95 per diluted share, compared with $479 million, or $2.88 per diluted share, for the corresponding period in 2007.

Operating income for the second quarter of 2008 was $229 million, or $1.45 per diluted share, compared with $256 million, or $1.54 per diluted common share, for the second quarter of 2007. This same item excluding foreign exchange gains, net of tax, for the second quarter of 2008 was $236 million, or $1.50 per diluted common share, compared with $249 million, or $1.50 per diluted common share, for the second quarter of 2007.

Operating income for the first six months of 2008 was $434 million, or $2.73 per diluted share, compared with $483 million, or $2.91 per diluted common share, for the first six months of 2007. This same item excluding foreign exchange gains, net of tax, for the first six months of 2008 was $421 million, or $2.65 per diluted common share, compared with $474 million, or $2.85 per diluted common share, for the first six months of 2007.

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08

Tel. 441.496.2600 Fax 441.296.3140

www.axiscapital.com

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Operating Highlights

AXIS Capital delivered another strong performance this quarter, which included the following highlights:

• Net income available to common shareholders of $231 million;

• A combined ratio of 81.2%, including net favorable reserve development of 12.8 percentage points;

• Record net investment income of $137 million, an increase of 21%;

• Annualized return on average common shareholders equity of 19.2%;

• Diluted book value per common share¹ of $30.30, an increase of 21% from June 30, 2007, and 5% from December 31, 2007;

• Shareholders’ equity of $5.3 billion, an increase of 12% from June 30, 2007 and 2% from December 31, 2007;

• Open market share repurchases during the quarter of $175 million.

Commenting on the second quarter 2008 financial results, John Charman, Chief Executive Officer and President of AXIS Capital, stated: “I am pleased that we have been able to deliver growth in diluted book value per share of an excellent 21% over the previous twelve months. Despite the extremely competitive market conditions, our underwriting results were good and our reserves from prior accident years continued to develop favorably. We also posted record quarterly net investment income. Our business is still generating very strong underwriting profitability even against the backdrop of increasing market loss activity during the first half of the year in the property lines.”

¹ To conform with our current period presentation, we have recalculated the diluted book value per common share for the comparative periods using the “treasury stock” method.

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08

Tel. 441.496.2600 Fax 441.296.3140

www.axiscapital.com

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Segment Highlights

Insurance Segment

Our insurance segment reported underwriting income for the quarter of $51 million, down $47 million, or 48%, from the second quarter of 2007. The segment’s combined ratio was 80.3% compared with 67.1% in the prior year quarter. The increase was driven by three factors: first, our current accident year loss ratio increased 5.7 ratio points, reflecting a higher frequency and severity of large property losses this quarter; second, net favorable development decreased from 18.7 ratio points in the second quarter of 2007 to 15.5 ratio points in the current quarter; and third, our general and administrative ratio increased 3.1 ratio points, primarily due to increased staffing costs this year.

Our insurance segment reported gross premiums written in the quarter of $555 million, down 9% from the second quarter of 2007, and net premiums written of $366 million, down 10% from the second quarter of 2007. We reduced our gross premiums written for many of our property and casualty lines of business this quarter as a result of competitive market conditions. Partially offsetting this, we wrote additional political risk business, and our professional lines book benefited from the renewal rights acquired in conjunction with our purchase of the assets and operations of Media Pro at the end of the second quarter of 2007.

Reinsurance Segment

Our reinsurance segment reported underwriting income for the quarter of $87 million, which was comparable with the second quarter of 2007. The segment’s combined ratio was 77.3% compared with 78.0% in the prior year quarter. There were several named U.S catastrophes this quarter, which are estimated by PCS to exceed $6 billion. Our estimated net losses from these events were $19 million and primarily emanate from our Midwest regional treaty reinsurance business. Reinsurance segment results for the quarter also included the impact of estimated losses from individual property risk losses and an earthquake in China. The second quarter of 2007 included estimated losses of $47 million from storms and flooding in the U.K. and Australia. Net favorable development in the quarter of 10.6 ratio points compared with 10.4 ratio points in the second quarter of 2007.

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08

Tel. 441.496.2600 Fax 441.296.3140

www.axiscapital.com

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Our reinsurance segment reported gross premiums written in the quarter of $319 million, down 8% from the second quarter of 2007. The reduction was mostly related to our catastrophe and professional lines business, driven by exposure reductions in the face of deteriorating market conditions.

Investments

Net investment income increased $23 million, or 21%, from the second quarter of 2007 to $137 million. Investment income from our alternative investment portfolio (“other investments”) increased by $17 million to $20 million for the quarter. Net investment income from cash and fixed maturity investments increased 3% to $117 million, primarily reflecting the impact of higher investment balances. As part of the ongoing strategic diversification of our investment portfolio, we began funding an allocation to global equities during the quarter. We experienced $2 million of net realized gains in the quarter, compared to net realized losses of $5 million in the second quarter of 2007.

Interest Expense

Interest expense for the three and six months ended June 30, 2008 was $8 million and $16 million, respectively, compared to $14 million and $29 million, respectively, in the comparative periods of 2007. The reduction in 2008 interest expense relates to the termination of our $400 million repurchase agreement in September 2007.

Capitalization / Shareholders’ Equity

Total capitalization at June 30, 2008 was $5.8 billion, including $0.5 billion of long-term debt and $0.5 billion of preferred equity, compared to $5.7 billion at December 31, 2007. At June 30, 2008, diluted book value per common share, on a treasury stock basis, was $30.30 and book value per common share was $34.11, compared to $28.79 and $32.69, respectively, as of December 31, 2007. During the quarter, we repurchased 5 million shares at an average price of $34.96 per share, for a total cost of $175 million. We have approximately $320 million remaining under our current repurchase authorization.

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08

Tel. 441.496.2600 Fax 441.296.3140

www.axiscapital.com

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Conference Call

We will host a conference call on Tuesday August 5, 2008 at 8:00 AM (Eastern) to discuss the second quarter financial results and related matters. The teleconference can be accessed by dialing (866) 510-0712 (U.S. callers) or (617) 597-5380 (international callers) and entering the pass code 41534364 approximately ten minutes in advance of the call. A live, listen-only webcast of the call will also be available via the Investor Information section of the Company’s website at www.axiscapital.com

In addition, a financial supplement relating to our financial results for the quarter ended June 30, 2008 is available in the Investor Information section of our website.

AXIS Capital is a Bermuda-based global provider of specialty lines insurance and treaty reinsurance with shareholders’ equity at June 30, 2008 of $5.3 billion and locations in Bermuda, the United States, Europe, Singapore, Canada and Australia. Its operating subsidiaries have been assigned a rating of “A” (“Excellent”) by A.M. Best and a rating of “A” (“Strong”) by Standard & Poor’s. AXIS Capital has been assigned a senior unsecured debt rating of Baa1 (stable) by Moody’s Investors Service and BBB+ (stable) by Standard & Poor’s. For more information about AXIS Capital, visit our website at www.axiscapital.com.

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08

Tel. 441.496.2600 Fax 441.296.3140

www.axiscapital.com

- 5 -

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED BALANCE SHEETS

JUNE 30, 2008 (UNAUDITED) AND DECEMBER 31, 2007

	2008			2007
	(in thousands, except per share amounts)
Assets
Investments:
Fixed maturities, available for sale, at fair value	$	8,703,346		$	8,331,666
Equity securities, available for sale, at fair value		247,845			7,746
Other investments, at fair value		724,239			638,241
Total investments		9,675,430			8,977,653
Cash and cash equivalents		1,094,429			1,332,921
Accrued interest receivable		89,261			87,338
Insurance and reinsurance premium balances receivable		1,652,295			1,231,494
Reinsurance recoverable balances		1,340,452			1,280,295
Reinsurance recoverable balances on paid losses		82,677			76,598
Deferred acquisition costs		355,587			276,801
Prepaid reinsurance premiums		263,461			242,940
Securities lending collateral		813,737			865,256
Net receivable for investments sold		—			86,356
Goodwill and intangible assets		61,035			61,653
Other assets		178,025			156,004
Total assets	$	15,606,389		$	14,675,309
Liabilities
Reserve for losses and loss expenses	$	5,995,731		$	5,587,311
Unearned premiums		2,603,676			2,146,087
Insurance and reinsurance balances payable		249,710			244,988
Securities lending payable		812,833			863,906
Senior notes		499,315			499,261
Other liabilities		144,689			175,134
Net payable for investments purchased		37,273			—
Total liabilities		10,343,227			9,516,687
Shareholders’ Equity
Preferred shares—Series A and B		500,000			500,000
Common shares		1,877			1,850
Additional paid-in capital		1,922,356			1,869,810
Accumulated other comprehensive (loss) income		(150,721	)		22,668
Retained earnings		3,377,051			2,968,900
Treasury shares, at cost		(387,401	)		(204,606	)
Total shareholders’ equity		5,263,162			5,158,622
Total liabilities and shareholders’ equity	$	15,606,389		$	14,675,309

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08

Tel. 441.496.2600 Fax 441.296.3140

www.axiscapital.com

- 6 -

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2008 AND 2007

	Three months ended						Six months ended
	2008			2007			2008			2007
	(in thousands, except per share amounts)
Revenues
Net premiums earned	$	680,291		$	693,941		$	1,338,925		$	1,379,245
Net investment income		137,015			113,685			222,666			238,965
Net realized investment gains (losses)		1,552			(4,656	)		37,237			(4,356	)
Other insurance related (loss) income		(7,269	)		693			(5,267	)		2,633
Total revenues		811,589			803,663			1,593,561			1,616,487
Expenses
Net losses and loss expenses		371,717			358,723			733,398			751,521
Acquisition costs		97,780			95,745			192,260			193,884
General and administrative expenses		82,953			68,574			161,703			131,180
Foreign exchange losses (gains)		6,564			(6,883	)		(13,733	)		(9,274	)
Interest expense and financing costs		7,890			14,169			15,848			29,312
Total expenses		566,904			530,328			1,089,476			1,096,623
Income before income taxes		244,685			273,335			504,085			519,864
Income tax expense		4,199			12,519			16,658			22,266
Net income		240,486			260,816			487,427			497,598
Preferred shares dividends		9,219			9,226			18,438			18,430
Net income available to common shareholders	$	231,267		$	251,590		$	468,989		$	479,168
Weighted average common shares and common share equivalents:
Basic		142,333			149,027			142,786			149,727
Diluted		157,602			166,320			158,893			166,175
Earnings per common share:
Basic	$	1.62		$	1.69		$	3.28		$	3.20
Diluted	$	1.47		$	1.51		$	2.95		$	2.88
Cash dividends declared per common share	$	0.185		$	0.165		$	0.37		$	0.33

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08

Tel. 441.496.2600 Fax 441.296.3140

www.axiscapital.com

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AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED SEGMENTAL DATA (UNAUDITED)

FOR THE THREE MONTHS ENDED JUNE 30, 2008 AND 2007

	2008									2007
	Insurance			Reinsurance			Total			Insurance			Reinsurance			Total
Gross premiums written	$	555,464		$	318,705		$	874,169		$	612,671		$	346,707		$	959,378
Net premiums written		365,511			318,705			684,216			406,885			348,457			755,342
Net premiums earned		297,429			382,862			680,291			298,245			395,696			693,941
Other insurance related (loss) income		(7,509	)		240			(7,269	)		360			333			693
Net losses and loss expenses		(159,696	)		(212,021	)		(371,717	)		(133,568	)		(225,155	)		(358,723	)
Acquisition costs		(31,120	)		(66,660	)		(97,780	)		(27,442	)		(68,303	)		(95,745	)
General and administrative expenses		(48,141	)		(17,077	)		(65,218	)		(39,167	)		(15,223	)		(54,390	)
Underwriting income	$	50,963		$	87,344			138,307		$	98,428		$	87,348			185,776
Corporate expenses								(17,735	)								(14,184	)
Net investment income								137,015									113,685
Net realized investment gains (losses)								1,552									(4,656	)
Foreign exchange (losses) gains								(6,564	)								6,883
Interest expense and financing costs								(7,890	)								(14,169	)
Income before income taxes							$	244,685								$	273,335
Net loss and loss expense ratio		53.7	%		55.4	%		54.6	%		44.8	%		56.9	%		51.7	%
Acquisition cost ratio		10.4	%		17.4	%		14.4	%		9.2	%		17.3	%		13.8	%
General and administrative expense ratio		16.2	%		4.5	%		12.2	%		13.1	%		3.8	%		9.9	%
Combined ratio		80.3	%		77.3	%		81.2	%		67.1	%		78.0	%		75.4	%

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08

Tel. 441.496.2600 Fax 441.296.3140

www.axiscapital.com

- 8 -

AXIS CAPITAL HOLDINGS LIMITED

CONSOLIDATED SEGMENTAL DATA (UNAUDITED)

FOR THE SIX MONTHS ENDED JUNE 30 2008 AND 2007

	2008									2007
	Insurance			Reinsurance			Total			Insurance			Reinsurance			Total
Gross premiums written	$	990,321		$	1,148,029		$	2,138,350		$	1,049,159		$	1,212,842		$	2,262,001
Net premiums written		637,243			1,138,748			1,775,991			688,931			1,205,769			1,894,700
Net premiums earned		596,986			741,939			1,338,925			613,177			766,068			1,379,245
Other insurance related (loss) income		(6,322	)		1,055			(5,267	)		1,127			1,506			2,633
Net losses and loss expenses		(319,146	)		(414,252	)		(733,398	)		(319,520	)		(432,001	)		(751,521	)
Acquisition costs		(62,834	)		(129,426	)		(192,260	)		(62,791	)		(131,093	)		(193,884	)
General and administrative expenses		(95,960	)		(34,447	)		(130,407	)		(74,690	)		(29,966	)		(104,656	)
Underwriting income	$	112,724		$	164,869			277,593		$	157,303		$	174,514			331,817
Corporate expenses								(31,296	)								(26,524	)
Net investment income								222,666									238,965
Net realized investment gains (losses)								37,237									(4,356	)
Foreign exchange gains								(15,848	)								9,274
Interest expense and financing costs								13,733									(29,312	)
Income before income taxes							$	504,085								$	519,864
Net loss and loss expense ratio		53.5	%		55.8	%		54.8	%		52.1	%		56.4	%		54.5	%
Acquisition cost ratio		10.5	%		17.5	%		14.3	%		10.2	%		17.1	%		14.1	%
General and administrative expense ratio		16.1	%		4.6	%		12.1	%		12.2	%		3.9	%		9.5	%
Combined ratio		80.1	%		77.9	%		81.2	%		74.5	%		77.4	%		78.1	%

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08

Tel. 441.496.2600 Fax 441.296.3140

www.axiscapital.com

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AXIS CAPITAL HOLDINGS LIMITED

NON-GAAP FINANCIAL MEASURE RECONCILIATION

OPERATING INCOME AND OPERATING INCOME EXCLUDING

FOREIGN EXCHANGE GAINS, NET OF TAX

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2008 AND 2007

	Three months ended						Six months ended
	2008			2007			2008			2007
Net income available to common shareholders	$	231,267		$	251,590		$	468,989		$	479,168
Adjustment for net realized investment (gains) losses		(1,552	)		4,656			(37,237	)		4,356
Adjustment for associated tax impact		(563	)		(419	)		2,179			(559	)
Operating income		229,152			255,827			433,931			482,965
Adjustment for foreign exchange losses (gains)		6,564			(6,883	)		(13,733	)		(9,274	)
Adjustment for associated tax impact		(53	)		511			1,155			677
Operating income excluding foreign exchange gains, net of tax	$	235,663		$	249,455		$	421,353		$	474,368
Net income per share—diluted	$	1.47		$	1.51		$	2.95		$	2.88
Adjustment for net realized investment (gains) losses		(0.01	)		0.03			(0.23	)		0.03
Adjustment for associated tax impact		(0.01	)		—			0.01			—
Operating income per share—diluted	$	1.45		$	1.54		$	2.73		$	2.91
Adjustment for foreign exchange losses (gains)		0.05			(0.04	)		(0.09	)		(0.06	)
Adjustment for associated tax impact		—			—			0.01			—
Operating income excluding foreign exchange gains, net of tax	$	1.50		$	1.50		$	2.65		$	2.85
Weighted average common shares and common share equivalents—diluted		157,602			166,320			158,893			166,175

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08

Tel. 441.496.2600 Fax 441.296.3140

www.axiscapital.com

- 10 -

Cautionary Note Regarding Forward-Looking Statements

This release contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements contained in this release include our expectations regarding market conditions and information regarding our estimates of losses related to natural disasters. These statements involve risks, uncertainties and assumptions. Actual events or results may differ materially from our expectations. Important factors that could cause actual events or results to be materially different from our expectations include (1) the occurrence of natural and man-made disasters, (2) actual claims exceeding our loss reserves, (3) the failure of any of the loss limitation methods we employ, (4) the effects of emerging claims and coverage issues, (5) the failure of our cedants to adequately evaluate risks, (6) the loss of one or more key executives, (7) a decline in our ratings with rating agencies, (8) the loss of business provided to us by our major brokers, (9) changes in governmental regulations, (10) increased competition, (11), interest rate and/or currency value fluctuations, (12) general economic conditions and (13) the other factors set forth in our most recent report on Form 10-K, Form 10-Q and other documents on file with the Securities and Exchange Commission. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

In this release, we have presented the following non-GAAP financial measures:

1. Operating income. This represents net income available to common shareholders, before the after tax impact of net realized gains and losses on investments;

2. Operating income, excluding the after tax impact of foreign exchange gains and losses.

We have included these measures as we believe that security analysts, rating agencies and investors believe that realized gains and losses and foreign exchange, where an actively managed foreign exchange program is not in place, are largely opportunistic and are a function of economic and interest rate conditions. As a result, we believe that they evaluate earnings before realized gains and losses and foreign exchange, adjusted for tax, to make performance comparisons with our industry peers.

AXIS Capital Holdings Limited 92 Pitts Bay Road Pembroke, Bermuda HM08

Tel. 441.496.2600 Fax 441.296.3140

www.axiscapital.com

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EX-99.2

Exhibit 99.2

AXIS Capital Holdings Limited

INVESTOR FINANCIAL SUPPLEMENT

SECOND QUARTER 2008

AXIS Capital Holdings Limited

92 Pitts Bay Road

Pembroke HM 08 Bermuda

Contact Information:

Linda Ventresca

Investor Relations

441 405 2727

investorrelations@axiscapital.com

Website Information:

www.axiscapital.com

This report is for informational purposes only. It should be read in conjunction with the documents that we file with the Securities and Exchange Commission pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934.

AXIS Capital Holdings Limited

FINANCIAL SUPPLEMENT TABLE OF CONTENTS

	Page(s)
i. Basis of Presentation	i - iii
I. Financial Highlights	1
II. Income Statements
a. Consolidated Statements of Income - Quarterly	2
b. Consolidated Statements of Income - YTD	3
c. Consolidated Segment Data	4
d. Gross Premium Written by Segment by Line of Business	5
e. Segment Consecutive Quarters	6-7
III. Balance Sheets
a. Consolidated Balance Sheets	8
b. Summary of Investment Portfolio Information	9
c. Investment Portfolio Composition	10
d. Investment Portfolio: Mortgage and Asset Backed Securities	11
e. Investment Portfolio: Subprime and Alternative-A Holdings	12
f. Reinsurance Recoverable Analysis	13-14
IV. Loss Reserve Analysis
a. Paid to Incurred Analysis	15
b. Paid to Incurred Analysis by Segment	16
c. Segment Consecutive Quarters	17-18
V. Share Analysis
a. Earnings Per Common Share Analysis - As Reported	19
b. Earnings Per Common Share Analysis and Common Share Rollforward- Quarterly	20
c. Diluted Book Value Per Common Share Analysis	21

AXIS Capital Holdings Limited

BASIS OF PRESENTATION

DEFINITIONS AND PRESENTATION

• All financial information contained herein is unaudited, except for the consolidated balance sheet and statement of income at and for the year ended December 31, 2007.

• Unless otherwise noted, all data is in thousands, except for per share amounts and ratio information. Amounts may not reconcile exactly due to small rounding differences.

• NM - Not meaningful; NR - Not Reported; NA - Not applicable

Cautionary Note Regarding Forward-Looking Statements:

This financial supplement may contain forward-looking statements which involve inherent risks and uncertainties. Statements that are not historical facts, including statements about our beliefs, plans or expectations, are forward-looking statements. These statements are based on current plans, estimates and expectations. Actual results may differ materially from those included in such forward-looking statements and therefore you should not place undue reliance on them. A non-exclusive list of other important factors that could cause actual results to differ materially from those in such forward-looking statements is set forth in our most recent annual report on Form 10-K, quarterly report on Form 10-Q and our other documents on file with the Securities and Exchange Commission. AXIS undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

i

AXIS Capital Holdings Limited

BASIS OF PRESENTATION

BUSINESS DESCRIPTIONS

INSURANCE SEGMENT

Our insurance segment provides insurance coverage on a worldwide basis. The following are the lines of business in our insurance segment:

Property: provides physical damage and business interruption coverage primarily for industrial and commercial properties and physical damage, business interruption and liability coverage for onshore energy properties and operations. The book consists of both primary and excess risks, some of which are catastrophe-exposed.

Marine: provides coverage for hull, liability, cargo and specie and recreational marine risks. These risks include property damage or physical loss to ships, pollution damage caused by vessels on a sudden and accidental basis, protection for general cargo and the contents of armored cars, vaults, exhibitions and museums, and specific war related risks. This line of business also provides physical damage, business interruption and liability coverage for offshore energy property and operations.

Terrorism: provides coverage for physical damage and business interruption of an insured following an act of terrorism.

Aviation: includes hull and liability and specific war coverage for passenger and cargo airlines and privately owned aircraft as well as select aviation product liability coverage.

Political risk: provides protection against sovereign default or sovereign actions that result in the impairment of cross-border investments for banks and major corporations. This book also provides sovereign and corporate credit insurance within emerging markets, where lenders seek to mitigate the risk of non-payment from their borrowers. This line of business covers a range of perils that can affect foreign direct investments and assets, project finance, export or import transactions or cross-border financings to private or sovereign borrowers for working capital, trade-related or capital market borrowings. Typical insured risks include confiscation, expropriation, nationalization; currency inconvertibility and non-transfer; terrorism, sabotage, war, insurrection, rebellion; government act, law order or decree; contract frustration, non-performance or payment default, and wrongful calling of contract guarantees and bonds. Coverages are tailored to the insured’s requirements for a broad range of overseas exposures, including equity investments, physical assets, cross-border loans or contracts for goods and services.

Professional lines: includes coverage for directors’ and officers’ liability, errors and omissions liability, employment practices liability, media, cyber, technology and miscellaneous professional liability coverage.

Liability: primarily targets general liability and umbrella and excess liability in the U.S. excess and surplus lines markets. Target classes include mercantile, manufacturing and building/premises, with particular emphasis on commercial and consumer products, commercial construction and miscellaneous general liability.

Other: primarily includes employee medical coverage for self-insured, small and medium sized employers for losses in excess of a retention.

ii

AXIS Capital Holdings Limited

BASIS OF PRESENTATION

BUSINESS DESCRIPTIONS (CONTINUED)

REINSURANCE SEGMENT

Our reinsurance segment provides property and casualty reinsurance to insurance companies on a worldwide basis. The following are the lines of business we write on both a treaty and facultative basis:

Catastrophe: provides protection for most catastrophic losses that are covered in the underlying insurance policies written by our ceding company clients. The exposure in the underlying policies is principally property exposure but also covers other exposures including workers compensation, personal accident and life. The principal perils in this portfolio are hurricane and windstorm, earthquake, flood, tornado, hail and fire. In some instances, terrorism may be a covered peril or the only peril. We underwrite catastrophe reinsurance principally on an excess of loss basis, meaning that our exposure only arises when our customers’ claims exceed a certain retained amount.

Property: includes reinsurance written on both a pro rata and a per risk basis and covers underlying personal lines and commercial property exposures. Property pro rata treaty reinsurance covers a cedent’s aggregate losses from all events in the covered period on a proportional basis. Property per risk treaty reinsurance reinsures a portfolio of particular property risks of ceding companies on an excess of loss basis.

Professional Liability: covers directors’ and officers’ liability, employment practices liability, medical malpractice and miscellaneous errors and omissions insurance risks.

Credit and Bond: consists principally of reinsurance of trade credit insurance products and includes both proportional and excess-of loss structures. The underlying insurance indemnifies sellers of goods and services against a payment default by the buyer of those goods and services. Also included in this book is coverage for ceding insurers against losses arising from a broad array of surety bonds issued by bond insurers principally to satisfy regulatory demands in a variety of jurisdictions around the world, but predominantly in Europe.

Motor: provides coverage to insurers for motor liability losses arising out of any one occurrence. The occurrence can involve one or many claimants where the ceding insurer aggregates the claims from the occurrence.

Liability: provides coverage to insurers of standard casualty lines, including auto liability, general liability, personal and commercial umbrella and workers’ compensation.

Engineering: provides coverage for all types of civil construction risks and risks associated with erection, testing and commissioning of machinery and plants during the construction stage. This line of business also includes operational risks for machinery, plant and equipment, electronic equipment and business interruption. We write engineering business on a proportional and non-proportional treaty basis as well as on a facultative basis.

Other: includes aviation, marine, personal accident and crop reinsurance.

iii

AXIS Capital Holdings Limited

FINANCIAL HIGHLIGHTS

		Quarter ended June 30,								Six months ended June 30,
		2008			2007			Change		2008			2007			Change
HIGHLIGHTS	Gross premiums written	$	874,169		$	959,378		(8.9	)%	$	2,138,350		$	2,262,001		(5.5	)%
	Gross premiums written - Insurance		63.5	%		63.9	%	(0.3	)%		46.3	%		46.4	%	(0.1	)%
	Gross premiums written - Reinsurance		36.5	%		36.1	%	0.3	%		53.7	%		53.6	%	0.1	%
	Net premiums written	$	684,216		$	755,342		(9.4	)%	$	1,775,991		$	1,894,700		(6.3	)%
	Net premiums earned	$	680,291		$	693,941		(2.0	)%	$	1,338,925		$	1,379,245		(2.9	)%
	Net premiums earned - Insurance		43.7	%		43.0	%	0.7	%		44.6	%		44.5	%	0.1	%
	Net premiums earned - Reinsurance		56.3	%		57.0	%	(0.7	)%		55.4	%		55.5	%	(0.1	)%
	Net income available to common shareholders	$	231,267		$	251,590		(8.1	)%	$	468,989		$	479,168		(2.1	)%
	Reserve for losses and loss expenses		5,995,731			5,360,064		11.9	%		5,995,731			5,360,064		11.9	%
	Total shareholders' equity		5,263,162			4,693,882		12.1	%		5,263,162			4,693,882		12.1	%
PER COMMON SHARE AND COMMON SHARE DATA	Basic earnings per common share	$	1.62		$	1.69		(3.8	)%	$	3.28		$	3.20		2.6	%
	Diluted earnings per common share	$	1.47		$	1.51		(3.0	)%	$	2.95		$	2.88		2.4	%
	Weighted average common shares outstanding		142,333			149,027		(4.5	)%		142,786			149,727		(4.6	)%
	Diluted weighted average common shares outstanding		157,602			166,320		(5.2	)%		158,893			166,175		(4.4	)%
	Book value per common share	$	34.11		$	28.35		20.3	%	$	34.11		$	28.35		20.3	%
	Accumulated dividends paid per common share	$	2.72		$	2.02		34.7	%	$	2.72		$	2.02		34.7	%
	Diluted book value per common share (treasury stock method) [a]	$	30.30		$	25.02		21.1	%	$	30.30		$	25.02		21.1	%
FINANCIAL RATIOS	ROACE, net income available to common shareholders [b]		19.2	%		24.1	%	(4.9	)%		19.9	%		23.6	%	(3.7	)%
	Net loss and loss expense ratio		54.6	%		51.7	%	2.9	%		54.8	%		54.5	%	0.3	%
	Acquisition cost ratio		14.4	%		13.8	%	0.6	%		14.3	%		14.1	%	0.2	%
	General and administrative expense ratio		12.2	%		9.9	%	2.3	%		12.1	%		9.5	%	2.6	%
	Combined ratio		81.2	%		75.4	%	5.8	%		81.2	%		78.1	%	3.2	%
INVESTMENT DATA	Total assets	$	15,606,389		$	14,928,974		4.5	%	$	15,606,389		$	14,928,974		4.5	%
	Total cash and investments [c]		10,821,847			10,125,566		6.9	%		10,821,847			10,125,566		6.9	%
	Net investment income		137,015			113,685		20.5	%		222,666			238,965		(6.8	)%
	Net realized investment gains (losses)		1,552			(4,656	)	(133.3	)%		37,237			(4,356	)	(954.8	)%
	Total return on cash and investments [d]		(0.1	)%		0.2	%	(0.4	)%		0.8	%		1.7	%	(1.0	)%
	Annualized effective yield of invested assets [e]		4.8	%		5.0	%	(0.2	)%		4.9	%		5.0	%	(0.1	)%

[a] To conform with our current period presentation, we have recalculated the diluted book value per common share for the second quarter of 2007 using the “treasury stock” method.

[b] Return on average common equity (“ROACE”) is calculated by dividing net income available to common shareholders for the period by the average common shareholders' equity determined by using the common shareholders' equity balances at the beginning and end of the period. Percentages presented are annualized for the respective quarters.

[c] Cash and investments represents the total cash, available for sale investments, other investments, accrued interest receivable and net receivable (payable) for investments sold (purchased).

[d] In calculating total return, we include net investment income, net realized investment gains (losses) and the change in unrealized gains (losses) generated by our average cash and investment balances.

[e] Annualized effective yield of invested assets is calculated by dividing the net income generated from invested assets by the average balance of the assets managed by our external investment managers.

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AXIS Capital Holdings Limited

CONSOLIDATED STATEMENTS OF INCOME - QUARTERLY

	Q2 2008			Q1 2008			Q4 2007			Q3 2007			Q2 2007			Q2 2006
UNDERWRITING REVENUES
Gross premiums written	$	874,169		$	1,264,181		$	572,865		$	755,224		$	959,378		$	995,380
Premiums ceded		(189,953	)		(172,406	)		(187,710	)		(171,322	)		(204,036	)		(174,648	)
Net premiums written		684,216			1,091,775			385,155			583,902			755,342			820,732
Gross premiums earned		845,249			835,514			860,421			870,752			876,640			837,456
Ceded premiums amortized		(164,958	)		(176,880	)		(191,101	)		(184,907	)		(182,699	)		(158,357	)
Net premiums earned		680,291			658,634			669,320			685,845			693,941			679,099
Other insurance related (loss) income		(7,269	)		2,002			273			1,005			693			438
Total underwriting revenues		673,022			660,636			669,593			686,850			694,634			679,537
UNDERWRITING EXPENSES
Net losses and loss expenses		371,717			361,681			290,546			328,193			358,723			371,982
Acquisition costs		97,780			94,480			90,574			100,039			95,745			101,832
General and administrative expenses		65,218			65,189			81,785			59,090			54,390			46,374
Total underwriting expenses		534,715			521,350			462,905			487,322			508,858			520,188
UNDERWRITING INCOME		138,307			139,286			206,688			199,528			185,776			159,349
OTHER OPERATING REVENUE (EXPENSES)
Net investment income		137,015			85,651			125,000			118,908			113,685			91,663
Net realized gains (losses) on investments		1,552			35,685			10,778			(1,192	)		(4,656	)		(9,777	)
Interest expense and financing costs		(7,890	)		(7,958	)		(7,912	)		(13,929	)		(14,169	)		(8,315	)
Total other operating revenue		130,677			113,378			127,866			103,787			94,860			73,571
OTHER (EXPENSES) REVENUE
Net foreign exchange (losses) gains		(6,564	)		20,297			349			7,202			6,883			18,901
Corporate expenses [a]		(17,735	)		(13,561	)		(11,053	)		(20,723	)		(14,184	)		(11,283	)
Total other (expenses) revenue		(24,299	)		6,736			(10,704	)		(13,521	)		(7,301	)		7,618
INCOME BEFORE INCOME TAXES		244,685			259,400			323,850			289,794			273,335			240,538
Income tax expense		(4,199	)		(12,459	)		(8,547	)		(10,677	)		(12,519	)		(7,912	)
NET INCOME		240,486			246,941			315,303			279,117			260,816			232,626
Preferred share dividends		(9,219	)		(9,219	)		(9,203	)		(9,142	)		(9,226	)		(9,226	)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	231,267		$	237,722		$	306,100		$	269,975		$	251,590		$	223,400
KEY RATIOS/PER COMMON SHARE DATA
Net loss and loss expense ratio		54.6	%		54.9	%		43.4	%		47.9	%		51.7	%		54.8	%
Acquisition cost ratio		14.4	%		14.3	%		13.5	%		14.6	%		13.8	%		15.0	%
General and administrative expense ratio [a]		12.2	%		12.0	%		13.9	%		11.6	%		9.9	%		8.5	%
Combined ratio		81.2	%		81.2	%		70.8	%		74.1	%		75.4	%		78.3	%
Weighted average basic shares outstanding		142,333			143,239			143,877			146,845			149,027			149,765
Weighted average diluted shares outstanding		157,602			160,184			161,732			164,064			166,320			163,325
Basic earnings per common share	$	1.62		$	1.66		$	2.13		$	1.84		$	1.69		$	1.49
Diluted earnings per common share	$	1.47		$	1.48		$	1.89		$	1.65		$	1.51		$	1.37
ROACE [b]		19.2	%		20.0	%		26.9	%		25.0	%		24.1	%		27.6	%

[a] Corporate expenses are included in the calculation of the general and administrative expense ratio.

[b] Percentages presented are annualized for each quarter.

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AXIS Capital Holdings Limited

CONSOLIDATED STATEMENTS OF INCOME - YTD

	Six months ended									Year ended
	June 30, 2008			June 30, 2007			June 30, 2006			December 31, 2007			December 31, 2006
UNDERWRITING REVENUES
Gross premiums written	$	2,138,350		$	2,262,001		$	2,160,120		$	3,590,090		$	3,609,036
Premiums ceded	$	(362,359	)		(367,301	)		(347,060	)		(726,333	)		(619,857	)
Net premiums written		1,775,991			1,894,700			1,813,060			2,863,757			2,989,179
Gross premiums earned		1,680,763			1,728,644			1,629,826			3,459,816			3,353,884
Ceded premiums amortized		(341,838	)		(349,399	)		(317,133	)		(725,406	)		(659,614	)
Net premiums earned		1,338,925			1,379,245			1,312,693			2,734,410			2,694,270
Other insurance related (loss) income		(5,267	)		2,633			1,062			3,911			2,893
Total underwriting revenues		1,333,658			1,381,878			1,313,755			2,738,321			2,697,163
UNDERWRITING EXPENSES
Net losses and loss expenses		733,398			751,521			730,640			1,370,260			1,425,855
Acquisition costs		192,260			193,884			191,536			384,497			386,959
General and administrative expenses		130,407			104,656			90,143			245,531			209,574
Total underwriting expenses		1,056,065			1,050,061			1,012,319			2,000,288			2,022,388
UNDERWRITING INCOME		277,593			331,817			301,436			738,033			674,775
OTHER OPERATING REVENUE (EXPENSES)
Net investment income		222,666			238,965			185,231			482,873			407,100
Net realized gains (losses) on investments		37,237			(4,356	)		(20,706	)		5,230			(25,702	)
Interest expense		(15,848	)		(29,312	)		(16,400	)		(51,153	)		(32,954	)
Total other operating revenue (expenses)		244,055			205,297			148,125			436,950			348,444
OTHER REVENUE (EXPENSES)
Net foreign exchange gains		13,733			9,274			28,165			16,826			32,505
Corporate expenses		(31,296	)		(26,524	)		(22,925	)		(58,300	)		(58,822	)
Total other (expenses) revenue		(17,563	)		(17,250	)		5,240			(41,474	)		(26,317	)
INCOME BEFORE INCOME TAXES		504,085			519,864			454,801			1,133,509			996,902
Income tax expense		(16,658	)		(22,266	)		(17,359	)		(41,491	)		(33,842	)
NET INCOME		487,427		$	497,598		$	437,442		$	1,092,018		$	963,060
Preferred share dividends		(18,438	)		(18,430	)		(18,857	)		(36,775	)		(37,925	)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	468,989		$	479,168		$	418,585		$	1,055,243		$	925,765
KEY RATIOS/PER SHARE DATA
Net loss and loss expense ratio		54.8	%		54.5	%		55.7	%		50.1	%		52.9	%
Acquisition cost ratio		14.3	%		14.1	%		14.6	%		14.1	%		14.4	%
General and administrative expense ratio [a]		12.1	%		9.5	%		8.6	%		11.1	%		10.0	%
Combined ratio		81.2	%		78.1	%		78.9	%		75.3	%		77.3	%
Weighted average basic shares outstanding		142,786			149,727			149,541			147,524			149,745
Weighted average diluted shares outstanding		158,893			166,175			163,442			164,515			164,394
Basic earnings per share	$	3.28		$	3.20		$	2.80		$	7.15		$	6.18
Diluted earnings per share	$	2.95		$	2.88		$	2.56		$	6.41		$	5.63
ROAE, net income [b]		19.9	%		23.6	%		26.4	%		24.6	%		26.7	%

[a] Corporate expenses are included in the calculation of the general and administrative expense ratio.

[b] Percentages presented are annualized for the six months period.

3

AXIS Capital Holdings Limited

CONSOLIDATED SEGMENT DATA

	Three months ended June 30, 2008									Six months ended June 30, 2008
	Insurance			Reinsurance			Total			Insurance			Reinsurance			Total
UNDERWRITING REVENUES
Gross premiums written	$	555,464		$	318,705		$	874,169		$	990,321		$	1,148,029		$	2,138,350
Net premiums written		365,511			318,705			684,216			637,243			1,138,748			1,775,991
Gross premiums earned		458,545			386,704			845,249			931,148			749,615			1,680,763
Ceded premiums amortized		(161,116	)		(3,842	)		(164,958	)		(334,162	)		(7,676	)		(341,838	)
Net premiums earned		297,429			382,862			680,291			596,986			741,939			1,338,925
Other insurance related (loss) income		(7,509	)		240			(7,269	)		(6,322	)		1,055			(5,267	)
Total underwriting revenues		289,920			383,102			673,022			590,664			742,994			1,333,658
UNDERWRITING EXPENSES
Net losses and loss expenses		159,696			212,021			371,717			319,146			414,252			733,398
Acquisition costs		31,120			66,660			97,780			62,834			129,426			192,260
General and administrative expenses		48,141			17,077			65,218			95,960			34,447			130,407
Total underwriting expenses		238,957			295,758			534,715			477,940			578,125			1,056,065
UNDERWRITING INCOME	$	50,963		$	87,344		$	138,307		$	112,724		$	164,869		$	277,593
KEY RATIOS
Net loss and loss expense ratio		53.7	%		55.4	%		54.6	%		53.5	%		55.8	%		54.8	%
Acquisition cost ratio		10.4	%		17.4	%		14.4	%		10.5	%		17.5	%		14.3	%
General and administrative expense ratio		16.2	%		4.5	%		9.6	%		16.1	%		4.6	%		9.8	%
Corporate expense ratio								2.6	%								2.3	%
Combined ratio		80.3	%		77.3	%		81.2	%		80.1	%		77.9	%		81.2	%

4

AXIS Capital Holdings Limited

GROSS PREMIUM WRITTEN BY SEGMENT BY LINE OF BUSINESS- QUARTERLY

	Quarter ended
	Q2 2008			Q1 2008		Q4 2007			Q3 2007		Q2 2007		Q2 2006
INSURANCE SEGMENT
Property	$	175,017		$	127,291	$	150,283		$	147,033	$	223,884	$	201,330
Marine		64,601			64,887		19,984			49,971		70,183		81,326
Terrorism		14,612			8,349		10,216			11,672		17,082		27,214
Aviation		8,715			17,486		28,788			14,518		10,940		25,175
Political risk		65,636			54,576		75,410			71,442		56,720		70,747
Professional lines		175,199			108,177		146,095			123,824		161,371		151,557
Liability		52,406			49,923		74,294			53,158		67,627		67,265
Other		(722	)		4,168		4,256			9,111		4,864		4,991
TOTAL INSURANCE SEGMENT		555,464			434,857		509,326			480,729		612,671		629,605
REINSURANCE SEGMENT
Catastrophe		117,306			212,948		8,743			76,044		142,602		118,432
Property		86,416			141,408		(578	)		55,965		78,817		103,953
Professional lines		31,806			87,376		27,909			54,645		59,060		83,348
Credit and bond		9,230			134,574		5,363			6,705		8,789		3,008
Motor		16,831			75,526		902			5,886		9,080		7,985
Liability		28,917			108,759		8,477			59,233		30,973		35,863
Engineering		7,895			53,224		10,428			13,577		9,611		5,497
Other		20,304			15,509		2,295			2,439		7,775		7,689
TOTAL REINSURANCE SEGMENT		318,705			829,324		63,539			274,495		346,707		365,775
CONSOLIDATED TOTAL	$	874,169		$	1,264,181	$	572,865		$	755,224	$	959,378	$	995,380

5

AXIS Capital Holdings Limited

INSURANCE SEGMENT DATA - QUARTERLY

	Q2 2008			Q1 2008			Q4 2007			Q3 2007			Q2 2007			Q2 2006
UNDERWRITING REVENUES
Gross premiums written	$	555,464		$	434,857		$	509,326		$	480,729		$	612,671		$	629,605
Net premiums written		365,511			271,732			322,111			315,605			406,885			455,026
Gross premiums earned		458,545			472,603			480,158			483,046			479,874			479,769
Ceded premiums amortized		(161,116	)		(173,046	)		(186,820	)		(181,121	)		(181,629	)		(156,198	)
Net premiums earned		297,429			299,557			293,338			301,925			298,245			323,571
Other insurance related (loss) income		(7,509	)		1,187			123			610			360			438
Total underwriting revenues		289,920			300,744			293,461			302,535			298,605			324,009
UNDERWRITING EXPENSES
Net losses and loss expenses		159,696			159,450			101,652			113,092			133,568			147,785
Acquisition costs		31,120			31,714			28,911			34,721			27,442			38,754
General and administrative expenses		48,141			47,819			57,858			43,262			39,167			34,873
Total underwriting expenses		238,957			238,983			188,421			191,075			200,177			221,412
UNDERWRITING INCOME	$	50,963		$	61,761		$	105,040		$	111,460		$	98,428		$	102,597
KEY RATIOS
Net loss and loss expense ratio		53.7	%		53.2	%		34.7	%		37.5	%		44.8	%		45.7	%
Acquisition cost ratio		10.4	%		10.6	%		9.9	%		11.5	%		9.2	%		12.0	%
General and administrative expense ratio		16.2	%		16.0	%		19.7	%		14.3	%		13.1	%		10.8	%
Combined ratio		80.3	%		79.8	%		64.3	%		63.3	%		67.1	%		68.5	%

6

AXIS Capital Holdings Limited

REINSURANCE SEGMENT DATA - QUARTERLY

	Q2 2008			Q1 2008			Q4 2007			Q3 2007			Q2 2007			Q2 2006
UNDERWRITING REVENUES
Gross premiums written	$	318,705		$	829,324		$	63,539		$	274,495		$	346,707		$	365,775
Net premiums written		318,705			820,043			63,044			268,297			348,457			365,706
Gross premiums earned		386,704			362,911			380,263			387,706			396,766			357,687
Ceded premiums amortized		(3,842	)		(3,834	)		(4,281	)		(3,786	)		(1,070	)		(2,159	)
Net premiums earned		382,862			359,077			375,982			383,920			395,696			355,528
Other insurance related income		240			815			150			395			333			—
Total underwriting revenues		383,102			359,892			376,132			384,315			396,029			355,528
UNDERWRITING EXPENSES
Net losses and loss expenses		212,021			202,231			188,894			215,101			225,155			224,197
Acquisition costs		66,660			62,766			61,663			65,318			68,303			63,078
General and administrative expenses		17,077			17,370			23,927			15,828			15,223			11,501
Total underwriting expenses		295,758			282,367			274,484			296,247			308,681			298,776
UNDERWRITING INCOME	$	87,344		$	77,525		$	101,648		$	88,068		$	87,348		$	56,752
KEY RATIOS
Net loss and loss expense ratio		55.4	%		56.3	%		50.2	%		56.0	%		56.9	%		63.1	%
Acquisition cost ratio		17.4	%		17.5	%		16.4	%		17.0	%		17.3	%		17.7	%
General and administrative expense ratio		4.5	%		4.8	%		6.4	%		4.1	%		3.8	%		3.2	%
Combined ratio		77.3	%		78.6	%		73.0	%		77.1	%		78.0	%		84.0	%

7

AXIS Capital Holdings Limited

CONSOLIDATED BALANCE SHEETS

	June 30, 2008			March 31, 2008			Dec. 31, 2007			Sep. 30, 2007			June 30, 2007			June 30, 2006
ASSETS
Investments:
Fixed maturities, available for sale, at fair value	$	8,703,346		$	8,423,794		$	8,331,666		$	7,814,855		$	7,219,836		$	6,009,431
Equity securities, available for sale, at fair value		247,845			—			—			—			—			—
Other investments, at fair value		724,239			652,111			645,987			612,429			1,106,409			627,721
Total investments		9,675,430			9,075,905			8,977,653			8,427,284			8,326,245			6,637,152
Cash and cash equivalents		1,094,429			1,578,801			1,332,921			1,830,852			1,837,675			1,615,448
Accrued interest receivable		89,261			80,990			87,338			76,257			82,151			68,381
Insurance and reinsurance premium balances receivable		1,652,295			1,607,609			1,231,494			1,385,486			1,604,193			1,409,988
Reinsurance recoverable balances		1,340,452			1,330,965			1,280,295			1,247,720			1,217,807			1,271,452
Reinsurance recoverable balances on paid losses		82,677			95,348			76,598			97,047			119,904			121,091
Deferred acquisition costs		355,587			369,000			276,801			331,290			346,318			290,627
Prepaid reinsurance premiums		263,461			238,466			242,940			246,027			259,474			309,881
Securities lending collateral		813,737			1,025,343			865,256			861,280			916,388			909,807
Net receivable for investments sold		—			18,086			86,356			—			—			—
Goodwill and intangible assets		61,035			61,344			61,653			61,967			62,511			35,500
Other assets		178,025			158,337			156,004			146,694			156,308			129,723
TOTAL ASSETS	$	15,606,389		$	15,640,194		$	14,675,309		$	14,711,904		$	14,928,974		$	12,799,050
LIABILITIES
Reserve for losses and loss expenses	$	5,995,731		$	5,814,208		$	5,587,311		$	5,531,379		$	5,360,064		$	4,835,161
Unearned premiums		2,603,676			2,574,755			2,146,087			2,433,339			2,548,743			2,289,140
Insurance and reinsurance balances payable		249,710			225,715			244,988			255,922			250,248			333,547
Securities lending payable		812,833			1,024,752			863,906			858,546			914,466			904,974
Senior notes		499,315			499,288			499,261			499,234			499,207			499,100
Other liabilities		144,689			130,054			175,134			140,869			141,859			—
Liability under repurchase agreement		—			—			—			—			400,000			43,012
Net payable for investments purchased		37,273			—			—			49,023			120,505			75,393
TOTAL LIABILITIES		10,343,227			10,268,772			9,516,687			9,768,312			10,235,092			8,980,327
SHAREHOLDERS’ EQUITY
Series A and B preferred shares		500,000			500,000			500,000			500,000			500,000			500,000
Common shares		1,877			1,875			1,850			1,849			1,849			1,873
Additional paid-in capital		1,922,356			1,902,336			1,869,810			1,859,067			1,850,047			1,913,566
Accumulated other comprehensive (loss) income		(150,721	)		(104	)		22,668			(28,444	)		(106,693	)		(166,580	)
Retained earnings		3,377,051			3,176,654			2,968,900			2,690,742			2,448,711			1,569,864
Treasury shares, at cost		(387,401	)		(209,339	)		(204,606	)		(79,622	)		(32	)		—
TOTAL SHAREHOLDERS’ EQUITY		5,263,162			5,371,422			5,158,622			4,943,592			4,693,882			3,818,723
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	15,606,389		$	15,640,194		$	14,675,309		$	14,711,904		$	14,928,974		$	12,799,050
Book value per common share	$	34.11		$	33.69		$	32.69		$	30.50		$	28.35		$	22.15
Debt (Senior notes) to total capitalization [a]		8.7	%		8.5	%		8.8	%		9.2	%		9.6	%		11.6	%
Debt plus preferred shares to total capitalization		17.3	%		17.7	%		18.4	%		19.2	%		19.4	%		23.1	%

[a] The debt to capitalization ratio is calculated by dividing our senior notes by the total capital. Total capital represents shareholders’ equity plus our senior notes.

8

AXIS Capital Holdings Limited

INVESTMENT PORTFOLIO

As of June 30, 2008

	Cost or Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value		Percentage
TYPE OF INVESTMENT
U.S. government and agency	$	1,217,753	$	10,779	$	(9,275	)	$	1,219,257	11	%
Non U.S. government		251,790		14,286		(3,468	)		262,608	2	%
Corporate debt		2,430,469		27,311		(111,997	)		2,345,783	22	%
Mortgage-backed [a]		3,750,263		14,925		(66,202	)		3,698,986	34	%
Asset-backed [a]		455,750		2,159		(10,275	)		447,634	4	%
Municipals		728,989		2,587		(2,498	)		729,078	7	%
Total Fixed Maturities		8,835,014		72,047		(203,715	)		8,703,346	80	%
Equities		268,492		3,299		(23,945	)		247,845	2	%
Cash, net of unsettled trades		—		—		—			322,643	3	%
Total Invested Assets		9,103,506		75,346		(227,660	)		9,273,834	85	%
Operating Cash Balances		—		—		—			734,513	7	%
Total Cash, Fixed Maturities and Equities	$	9,103,506	$	75,346	$	(227,660	)		10,008,347	92	%
Other Investments									724,239	7	%
Accrued interest receivable									89,261	1	%
Total Cash and Investments								$	10,821,847	100	%
								Fair Value		Percentage
OTHER INVESTMENTS
Hedge funds								$	338,675	47	%
Collateralized loan obligations									114,570	16	%
Credit funds									224,443	31	%
Short duration high yield fund									46,551	6	%
Total								$	724,239	100	%

[a] For a further breakdown of our mortgage-backed and asset-backed securities, refer to page 11.

9

AXIS Capital Holdings Limited

INVESTMENT PORTFOLIO COMPOSITION - QUARTERLY

	Q2 2008		Q1 2008		Q4 2007		Q3 2007		Q2 2007		Q2 2006
	Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %
TYPE OF INVESTMENT
U.S. government and agency	11.3	%	11.3	%	10.1	%	11.5	%	12.1	%	16.7	%
Non U.S. government	2.4	%	2.6	%	2.7	%	1.7	%	1.6	%	1.7	%
Corporate debt	21.7	%	21.2	%	20.5	%	17.7	%	15.6	%	15.2	%
Mortgage-backed	34.2	%	33.3	%	33.2	%	31.3	%	30.7	%	29.5	%
Asset-backed	4.1	%	4.2	%	5.1	%	5.5	%	5.6	%	4.5	%
Municipals	6.7	%	5.7	%	7.9	%	7.8	%	5.0	%	4.4	%
Mortgage derivatives	—		—		—		0.5	%	0.7	%	0.5	%
Total Fixed Maturities	80.4	%	78.3	%	79.5	%	76.0	%	71.3	%	72.5	%
Equities	2.3	%	—		—		—		—		—
Cash, net of unsettled trades	3.0	%	5.6	%	5.4	%	4.9	%	7.2	%	2.0	%
Total Invested Assets	85.7	%	83.9	%	84.9	%	80.9	%	78.5	%	74.5	%
Operating Cash Balances	6.8	%	9.3	%	8.1	%	12.4	%	9.8	%	17.0	%
Total Cash and Fixed Maturities	92.5	%	93.2	%	93.0	%	93.3	%	88.3	%	91.5	%
Other Investments	6.7	%	6.0	%	6.2	%	6.0	%	10.9	%	7.6	%
Accrued interest receivable	0.8	%	0.8	%	0.8	%	0.7	%	0.8	%	0.9	%
Total Cash and Investments	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
	Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %
CREDIT QUALITY OF FIXED MATURITIES
AAA	69.2	%	72.4	%	70.8	%	71.4	%	75.3	%	78.2	%
AA	10.0	%	9.1	%	7.8	%	7.7	%	6.9	%	4.5	%
A	12.2	%	9.7	%	12.5	%	11.3	%	8.1	%	8.8	%
BBB	8.2	%	8.8	%	8.9	%	9.6	%	9.7	%	8.5	%
BB	0.4	%	—		—		—		—		—
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
	Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %		Fair Value %
MATURITY PROFILE OF FIXED MATURITIES
Within one year	7.3	%	7.9	%	10.4	%	5.9	%	7.5	%	5.6	%
From one to five years	30.1	%	30.8	%	25.2	%	27.1	%	25.6	%	30.7	%
From five to ten years	9.5	%	8.5	%	10.6	%	10.0	%	10.7	%	13.5	%
Above ten years	5.6	%	5.0	%	5.6	%	7.9	%	4.3	%	2.7	%
Asset-backed and mortgage-backed securities	47.6	%	47.8	%	48.2	%	49.1	%	51.9	%	47.5	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
	As of or for the quarter ended
PORTFOLIO CHARACTERISTICS OF INVESTED ASSETS
	Q2 2008		Q1 2008		Q4 2007		Q3 2007		Q2 2007		Q2 2006
Annualized effective yield of invested assets	4.8	%	4.9	%	4.9	%	5.0	%	5.0	%	4.7	%
Yield to maturity of invested assets	5.1	%	5.1	%	5.1	%	5.6	%	5.5	%	5.4	%
Average duration of invested assets	2.9 yrs		2.9 yrs		2.7 yrs		3.2 yrs		3.2 yrs		3.3 yrs
Average credit quality of invested assets	AA+		AA+		AA+		AA+		AA+		AA+

10

AXIS Capital Holdings Limited

MORTGAGE AND ASSET BACKED SECURITIES

As of June 30, 2008

	Mortgage-Backed Securities By Rating and Class
	Agency [a]				AAA				AA				A				BBB
	Residential		Commercial		Residential		Commercial		Residential		Commercial		Residential		Commercial		Residential		Commercial		Total
Agency
Agency Pass-Throughs	$	2,004,663	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	2,004,663
Agency CMO’s		115,963		13,591		—		—		—		—		—		—		—		—		129,554
Agency Floating Rate MBS		118,950		—		18,118		—		—		—		—		—		—		—		137,068
Non-Agency
Non-Agency CMO’s		—		3,031		409,941		946,952		3,813		11,799		—		8,575		2,397		—		1,386,508
Non-Agency Floating Rate MBS		55		—		41,138		—		—		—		—		—		—		—		41,193
Total	$	2,239,631	$	16,622	$	469,197	$	946,952	$	3,813	$	11,799	$	—	$	8,575	$	2,397	$	—	$	3,698,986

	Asset-Backed Securities By Rating
Description	AAA		AA		A		BBB		BB		Total
Auto	$	174,184	$	13,234	$	—	$	612	$	—	$	188,030
CLO		—		—		36,784		18,348		—		55,132
CDO		8,565		411		459		186		—		9,621
Credit Card		92,442		—		—		—		—		92,442
Equipment		8,024		—		—		—		—		8,024
Home Equity		39,912		944		—		1,152		4,138		46,146
Other		48,239		—		—		—		—		48,239
Total	$	371,366	$	14,589	$	37,243	$	20,298	$	4,138	$	447,634

[a] These represent securities backed by U.S Government sponsored agencies.

11

AXIS Capital Holdings Limited

SUBPRIME AND ALTERNATIVE-A HOLDINGS

As of June 30, 2008

	SUBPRIME AND ALTERNATIVE-A HOLDINGS BY SECTOR
	Holdings at Fair Value		% of Total Shareholders’ Equity		Net Unrealized Gain / (Loss)			Realized losses and impairments in 2008
Subprime Agency MBS	$	5,581	0.10	%	$	(27	)	$	—
Subprime Non-Agency MBS		555	0.01	%	$	(11	)	$	—
Subprime ABS		39,344	0.75	%	$	(6,078	)	$	(2,836	)
Total Subprime	$	45,480	0.86	%	$	(6,116	)	$	(2,836	)
Alternative-A Agency MBS	$	504	0.01	%	$	(17	)	$	—
Alternative-A Non-Agency MBS		152,263	2.89	%	$	(8,363	)	$	—
Alternative-A ABS		7,933	0.15	%	$	(1,216	)	$	—
Total Alternative-A	$	160,700	3.05	%	$	(9,596	)	$	—
TOTAL Subprime and Alternative-A	$	206,180	3.91	%	$	(15,712	)	$	(2,836	)

	SUBPRIME AND ALTERNATIVE-A HOLDINGS AT FAIR VALUE BY RATING & VINTAGE
	Agency			AAA			AA or lower			Total			Percentage of total
Sub-prime 2003 and prior	$	1,388		$	2,484		$	191		$	4,063		8.9	%
Sub-prime 2004		—			6,031			—			6,031		13.3	%
Sub-prime 2005		—			6,584			533			7,117		15.6	%
Sub-prime 2006		—			16,218			5,304			21,522		47.3	%
Sub-prime 2007		4,193			2,554			—			6,747		14.8	%
Total Subprime	$	5,581		$	33,871		$	6,028		$	45,480		100.0	%
Rating as Percentage of Total		12.3	%		74.5	%		13.3	%		100.0	%
Alternative-A 2003 and prior	$	—		$	21,327		$	3,829		$	25,156		15.7	%
Alternative-A 2004		504			36,677			112			37,293		23.2	%
Alternative-A 2005		—			62,647			—			62,647		39.0	%
Alternative-A 2006		—			27,587			—			27,587		17.2	%
Alternative-A 2007		—			8,017			—			8,017		5.0	%
Total Alternative A	$	504		$	156,255		$	3,941		$	160,700		100.0	%
Rating as Percentage of Total		0.3	%		97.2	%		2.5	%		100.0	%
Subprime and Alternative-A 2003 and prior	$	1,388		$	23,811		$	4,020		$	29,219		14.2	%
Subprime and Alternative-A 2004		504			42,708			112			43,324		21.0	%
Subprime and Alternative-A 2005		—			69,231			533			69,764		33.8	%
Subprime and Alternative-A 2006		—			43,805			5,304			49,109		23.8	%
Subprime and Alternative-A 2007		4,193			10,571			—			14,764		7.2	%
TOTAL Subprime and Alternative-A	$	6,085		$	190,126		$	9,969		$	206,180		100.0	%
Rating as Percentage of Total		3.0	%		92.2	%		4.8	%		100.0	%

12

AXIS Capital Holdings Limited

Reinsurance Recoverable Analysis

	Q2 2008			Q1 2008			Q4 2007			Q3 2007			Q2 2007			Q2 2006
Reinsurance recoverable on paid losses and loss expenses:
Insurance	$	70,438		$	83,109		$	64,106		$	82,795		$	104,913		$	85,473
Reinsurance		12,239			12,239			12,492			14,252			14,991			35,619
Total	$	82,677		$	95,348		$	76,598		$	97,047		$	119,904		$	121,092
Reinsurance recoverable on unpaid losses and loss expenses: OSLR
Insurance	$	479,724		$	492,319		$	436,042		$	414,777		$	409,259		$	703,357
Reinsurance		—			—			—			—			—			—
Total	$	479,724		$	492,319		$	436,042		$	414,777		$	409,259		$	703,357
Reinsurance recoverable on unpaid losses and loss expenses: IBNR
Insurance	$	865,323		$	844,747		$	852,054		$	842,797		$	819,925		$	565,697
Reinsurance		29,609			27,747			26,047			24,144			22,621			17,620
Total	$	894,932		$	872,494		$	878,101		$	866,941		$	842,546		$	583,317
Provision against reinsurance recoverables:
Insurance	$	(27,394	)	$	(19,794	)	$	(19,794	)	$	(19,944	)	$	(19,944	)	$	(2,604	)
Reinsurance		(6,810	)		(14,054	)		(14,054	)		(14,054	)		(14,054	)		(12,619	)
Total	$	(34,204	)	$	(33,848	)	$	(33,848	)	$	(33,998	)	$	(33,998	)	$	(15,223	)
Net reinsurance recoverables:
Insurance	$	1,388,091		$	1,400,381		$	1,332,408		$	1,320,425		$	1,314,153		$	1,351,923
Reinsurance		35,038			25,932			24,485			24,342			23,558			40,620
Total	$	1,423,129		$	1,426,313		$	1,356,893		$	1,344,767		$	1,337,711		$	1,392,543

13

AXIS Capital Holdings Limited

Reinsurance Recoverable Analysis

	June 30, 2008
Categories	Gross Recoverable		Collateral			Gross Recoverable Net of Collateral		% of Total Gross Recoverable Net of Collateral		% of Total Shareholders’ Equity		Provision against Reinsurance Recoverables			Provision against Reinsurance Recoverable as % of Gross Recoverable		Net Recoverable
Top 10 gross reinsurers	$	944,058	$	(35,835	)	$	908,223	67.1	%	17.3	%	$	(14,504	)	1.5	%	$	929,554
Other reinsurers balances > $20 million		198,249		(17,342	)		180,907	13.4	%	3.4	%		(3,393	)	1.7	%	$	194,856
Other reinsurers balances < $20 million		315,026		(50,565	)		264,461	19.5	%	5.0	%		(16,307	)	5.2	%	$	298,719
Total	$	1,457,333	$	(103,742	)	$	1,353,591	100.0	%	25.7	%	$	(34,204	)	2.3	%	$	1,423,129

At June 30, 2008, 96.3% (December 31, 2007: 94.5%) of the reinsurers were rated the equivalent of A- or better by internationally recognised rating agencies.

Top 10 Reinsurers (net of collateral)	% of Total Gross Recoverable Net of Collateral		% of Total Shareholders’ Equity
Swiss Reinsurance America Corporation	16.5	%	4.3	%
Partner Reinsurance Company of the US	10.4	%	2.7	%
Transatlantic Reinsurance Company	10.3	%	2.7	%
Lloyd’s of London	9.3	%	2.4	%
XL Reinsurance America	7.9	%	2.0	%
Berkley Insurance Company	4.7	%	1.2	%
ACE Property & Casualty Insurance Co	2.7	%	0.7	%
Federal Insurance Company	2.7	%	0.7	%
General Reinsurance Corporation	2.6	%	0.7	%
Odyssey America Reinsurance Corporation	2.2	%	0.6	%
	69.3	%	17.8	%

14

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

	Three months ended June 30, 2008									Six months ended June 30, 2008
	Gross			Recoveries			Net			Gross			Recoveries			Net
Reserve for losses and loss expenses
Beginning of period	$	5,814,208		$	(1,426,313	)	$	4,387,895		$	5,587,311		$	(1,356,893	)	$	4,230,418
Incurred		447,703			(75,986	)		371,717			960,282			(226,884	)		733,398
Paid		(262,890	)		79,170			(183,720	)		(568,865	)		160,648			(408,217	)
Foreign exchange (gains) losses		(3,290	)		—			(3,290	)		17,003			—			17,003
End of period [a]	$	5,995,731		$	(1,423,129	)	$	4,572,602		$	5,995,731		$	(1,423,129	)	$	4,572,602

[a] As at June 30, 2008, the gross reserve for losses and loss expenses included IBNR of $4,117 million, or 69%, of total gross reserves for loss and loss expenses. As at December 31, 2007, the comparable amount was $3,890 million, or 70%.

15

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS BY SEGMENT

	Three months ended June 30, 2008									Six months ended June 30, 2008
	Insurance			Reinsurance			Total			Insurance			Reinsurance			Total
Gross losses paid	$	161,108		$	101,782		$	262,890		$	362,596		$	206,269		$	568,865
Reinsurance recoveries received		(79,170	)		—			(79,170	)		(160,648	)		—			(160,648	)
Net losses paid		81,938			101,782			183,720			201,948			206,269			408,217
Change in:
Reported case reserves		44,365			15,193			59,558			137,074			27,222			164,296
IBNR		21,103			104,152			125,255			35,806			191,315			227,121
Reinsurance recoveries on paid and unpaid loss and loss expense reserves		12,290			(9,106	)		3,184			(55,682	)		(10,554	)		(66,236	)
TOTAL NET INCURRED LOSSES AND LOSS EXPENSES	$	159,696		$	212,021		$	371,717		$	319,146		$	414,252		$	733,398
Gross reserve for losses and loss expenses	$	3,508,456		$	2,487,275		$	5,995,731		$	3,508,456		$	2,487,275		$	5,995,731
Prior years net favorable reserve development	$	46,106		$	40,638		$	86,744		$	100,686		$	74,169		$	174,855
Key Ratios
Net paid to net incurred percentage		51.3	%		48.0	%		49.4	%		63.3	%		49.8	%		55.7	%
Net paid losses / Net premiums earned		27.5	%		26.6	%		26.9	%		33.8	%		27.8	%		30.5	%
Change in net loss and loss expense reserves / Net premiums earned		26.1	%		28.8	%		27.6	%		19.6	%		28.0	%		24.3	%
Net loss and loss expense ratio		53.7	%		55.4	%		54.6	%		53.5	%		55.8	%		54.8	%

16

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

INSURANCE - QUARTERLY

	Quarter ended
	Q2 2008			Q1 2008			Q4 2007			Q3 2007			Q2 2007			Q2 2006
Gross losses paid	$	161,108		$	201,488		$	239,712		$	126,883		$	184,760		$	263,846
Reinsurance recoveries received		(79,170	)		(81,478	)		(98,388	)		(48,874	)		(170,522	)		(100,001	)
Net losses paid		81,938			120,010			141,324			78,009			14,238			163,845
Change in:
Reported case reserves		44,365			92,709			(9,888	)		1,976			(75,880	)		(84,982	)
IBNR		21,103			14,703			(17,802	)		39,379			133,548			24,336
Reinsurance recoveries on paid and unpaid loss and loss expense reserves		12,290			(67,972	)		(11,982	)		(6,272	)		61,662			44,586
TOTAL NET INCURRED LOSSES AND LOSS EXPENSES	$	159,696		$	159,450		$	101,652		$	113,092		$	133,568		$	147,785
Gross reserve for losses and loss expenses	$	3,508,456		$	3,442,804		$	3,333,743		$	3,363,368		$	3,319,952		$	3,028,932
Prior years net favorable reserve development	$	46,106		$	54,580		$	70,870		$	58,607		$	55,814		$	58,186
Key Ratios
Net paid to net incurred percentage		51.3	%		75.3	%		139.0	%		69.0	%		10.7	%		110.9	%
Net paid losses / Net premiums earned		27.5	%		40.0	%		47.2	%		25.8	%		4.8	%		50.6	%
Change in net loss and loss expense reserves / Net premiums earned		26.1	%		13.2	%		(13.2	)%		11.6	%		40.0	%		(4.9	)%
Net loss and loss expense ratio		53.7	%		53.2	%		33.9	%		37.5	%		44.8	%		45.7	%

17

AXIS Capital Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS

REINSURANCE—QUARTERLY

	Quarter ended
	Q2 2008			Q1 2008			Q4 2007			Q3 2007			Q2 2007			Q2 2006
Gross losses paid	$	101,782		$	104,487		$	103,817		$	105,316		$	117,057		$	155,835
Reinsurance recoveries received		—			—			—			(738	)		(2,250	)		(41,750	)
Net losses paid		101,782			104,487			103,817			104,578			114,807			114,085
Change in:
Reported case reserves		15,193			12,029			162			49,528			3,854			(21,107	)
IBNR		104,152			87,163			85,058			61,779			103,974			92,842
Reinsurance recoveries on paid and unpaid loss and loss expense reserves		(9,106	)		(1,448	)		(143	)		(784	)		2,520			38,377
TOTAL NET INCURRED LOSSES AND LOSS EXPENSES	$	212,021		$	202,231		$	188,894		$	215,101		$	225,155		$	224,197
Gross reserve for losses and loss expenses	$	2,487,275		$	2,371,404		$	2,253,568		$	2,168,011		$	2,040,112		$	1,806,229
Prior years net favorable reserve development	$	40,638		$	33,531		$	21,131		$	23,585		$	41,006		$	6,284
Key Ratios
Net paid to net incurred percentage		48.0	%		51.7	%		55.0	%		48.6	%		51.0	%		50.9	%
Net paid losses / Net premiums earned		26.6	%		29.1	%		27.6	%		27.2	%		29.0	%		32.1	%
Change in net loss and loss expense reserves / Net premiums earned		28.8	%		27.2	%		22.6	%		28.8	%		27.9	%		31.0	%
Net loss and loss expense ratio		55.4	%		56.3	%		50.2	%		56.0	%		56.9	%		63.1	%

18

AXIS Capital Holdings Limited

EARNINGS PER COMMON SHARE INFORMATION - AS REPORTED, GAAP

	Three months ended June 30,				Six months ended June 30,
	2008		2007		2008		2007
Net income available to common shareholders	$	231,267	$	251,590	$	468,989	$	479,168
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Weighted average basic shares outstanding		142,333		149,027		142,786		149,727
Dilutive share equivalents:
Warrants		12,579		13,304		12,870		12,844
Options		1,194		2,484		1,726		2,339
Restricted stock		1,496		1,505		1,511		1,265
Weighted average diluted shares outstanding		157,602		166,320		158,893		166,175
EARNINGS PER COMMON SHARE
Basic	$	1.62	$	1.69	$	3.28	$	3.20
Diluted	$	1.47	$	1.51	$	2.95	$	2.88

19

AXIS Capital Holdings Limited

EARNINGS PER COMMON SHARE INFORMATION - AS REPORTED, GAAP

	Quarter ended
	Q2 2008			Q1 2008			Q4 2007			Q3 2007			Q2 2007			Q2 2006
Net income available to common shareholders	$	231,267		$	237,722		$	306,100		$	269,975		$	251,590		$	223,400
COMMON SHARES OUTSTANDING
Common Shares -at beginning of period		144,590			142,520			145,710			147,924			150,417			149,753
Shares issued		154			2,189			62			86			121			63
Shares repurchased for treasury		(5,091	)		(119	)		(3,240	)		(2,225	)		(1	)		—
Shares repurchased and cancelled		—			—			(12	)		(75	)		(2,613	)		(5	)
Common Shares- at end of period		139,653			144,590			142,520			145,710			147,924			149,810
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Weighted average basic shares outstanding		142,333			143,239			143,877			146,845			149,027			149,765
Dilutive share equivalents:
Warrants		12,579			13,160			13,406			13,124			13,304			11,006
Options		1,194			2,258			2,479			2,385			2,484			1,780
Restricted stock		1,496			1,527			1,970			1,710			1,505			774
Weighted average diluted shares outstanding		157,602			160,184			161,732			164,064			166,320			163,325
EARNINGS PER COMMON SHARE
Basic	$	1.62		$	1.66		$	2.13		$	1.84		$	1.69		$	1.49
Diluted	$	1.47		$	1.48		$	1.89		$	1.65		$	1.51		$	1.37

20

AXIS Capital Holdings Limited

DILUTED BOOK VALUE PER COMMON SHARE - TREASURY STOCK METHOD ^[a]

	At June 30, 2008
	Weighted Average Strike Price		Common Shareholders’ Equity		Outstanding Common Shares net of Treasury Shares	Per share
Closing stock price						$	29.81
Book value per common share			$	4,763,162	139,653	$	34.11
Dilutive securities:
Warrants	$	12.41		—	11,493		(2.59	)
Restricted stocks				—	5,104		(1.02	)
Options	$	21.27		—	911		(0.19	)
Phantom stock units				—	64		(0.01	)
Diluted book value per common share			$	4,763,162	157,225	$	30.30
	At December 31, 2007
	Weighted Average Strike Price		Common Shareholders’ Equity		Outstanding Common Shares net of Treasury Shares	Per share
Closing stock price						$	38.97
Book value per common share			$	4,658,622	142,520	$	32.69
Dilutive securities:
Warrants	$	12.42		—	13,388		(2.81	)
Restricted stocks				—	3,312		(0.60	)
Options	$	18.46		—	2,531		(0.48	)
Phantom stock units				—	53		(0.01	)
Diluted book value per common share			$	4,658,622	161,804	$	28.79

[a] This method assumes that proceeds received upon exercise of options and warrants will be used to repurchase our common shares at the closing market price. Unvested restricted stock is also added to determine the diluted common shares outstanding.

21