AXIS Capital Announces Marsh Risk Capital Has Agreed to Sell 1.85 Million Shares in a Block Trade

Business Wire, August 18, 2005

PEMBROKE, Bermuda -- AXIS Capital Holdings Limited ("AXIS Capital") (NYSE: AXS) today announced that Marsh & McLennan Risk Capital Holdings, Ltd. ("Marsh Risk Capital"), a subsidiary of Marsh & McLennan Companies, Inc., has agreed to sell 1.85 million of AXIS Capital's common shares in a block trade.

Merrill Lynch has agreed to purchase the common shares from Marsh Risk Capital and subsequently sell the shares to public investors. The common shares were offered under AXIS Capital's Form S-3 shelf registration statement and represent approximately 50% of Marsh Risk Capital's current ownership of AXIS Capital's common shares. Marsh Risk Capital, an initial investor in AXIS Capital, will receive all net proceeds from the sale. After the completion of the sale, Marsh Risk Capital will retain approximately 1.85 million common shares, representing an ownership of approximately 1% of AXIS Capital's outstanding shares.

A complete description of the terms of the sale of AXIS Capital's common shares can be found in the prospectus supplement relating to the sale, which will be filed with the U.S. Securities and Exchange Commission.

AXIS Capital is a Bermuda-based global provider of specialty lines insurance and treaty reinsurance with shareholders' equity at June 30, 2005 in excess of $3.1 billion and locations in Bermuda, the United States, Europe and Singapore. 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.