1. AXIS CAPITAL Risk Management International Insurance Society July 10, 2007 David B. Greenfield Chief Financial Officer

2. 2 Introduction AXIS Capital and Risk Management Risk-Based Capital and Solvency II External Influences on Capital Adequacy

3. 3 AXIS at a Glance Approximately $6 billion market capitalization (June 1, 2007) $4.1 billion common equity and $5.1 billion total capital 690 employees in Bermuda, Europe, U.S. and Australasia Ratings of A (S&P - positive), A2 (Moody’s - stable) and A (AM Best - stable) $3.6 billion in gross premiums written (GWP) in 2006 6 th largest by 2006 GPW and 5 th by total capital in Bermuda GPW by Segment 2006 GPW = $3,609 M AXIS Re 43% AXIS Insurance 57% AXIS Insurance AXIS Re $1,108 $2,274 $3,012 $3,394 $3,609 ($ in millions) Gross Premiums Written 2002 - 2006 ’02-‘06 GPW CAGR = 34%

4. 4 Success at AXIS People Well-capitalized Operating Structure Strong Risk Management Culture CORE STRENGTHS High-Quality Balance Sheet Diversified Revenue & Earnings Stream

5. 5 Risk Management Structure Risk Committee of Board Chief Risk Officer Risk Management Committee Business Unit Leaders and Line Personnel

6. 6 The Pillars of AXIS Risk Management Business units responsible for identifying, assessing, taking and mitigating risk Business leaders ensure appropriate limits, policies, procedures, and measures in place (with input from Risk Management Committee) Audit function independently tests and verifies controls are in place and functioning properly

7. 7 Underwriting Risk Management and Operating Approach Disciplined Risk Selection Self Audit Process Peer Review Process Adjustment of Strategies

8. 8 Investment Risk Management and Operating Approach Board Oversight Benchmarks Risk Budget Asset Allocation Investment Constraints Manager Selection Monitoring

9. 9 External Impact to Risk, Financial and Capital Management Risk Management. Capital Management C a p i t a l A d e q u a c y Shareholder Performance Capital Markets Solvency/Economic Capital, Rating Agencies and Regulators Financial Management

10. 10 Risk-Based Capital vs. Solvency II RBC (1) SOLVENCY II 1. Quantitative 2. Qualitative 3. Standard Model 4. Company Specific Risk Model 5. Regulatory Review & Validation of Internal Model 6. Regulatory Action Based on Quantitative Results 7. Regulatory Action Based on Qualitative Results 8.Capital Disclosure Requirements Note: (1) Risk-based capital as developed by the US National Association of Insurance Commsioners

11. 11 Capital Adequacy Rating Agencies Companies Regulators

12. 12 Standard & Poor’s Capital Model in Context Capital model Industry Risk Capitalization Investments Competitive position Liquidity Operating Performance Management and Corporate Strategy ERM

13. 13 Summary Strong risk management program is an important ingredient to business success Risk management culture must be embedded throughout the Company Risk management is an iterative and evolutionary process