AXIS Capital Announces JP Morgan Has Agreed to Sell Approximately 7.8 Million Shares in Block Trade

Business Wire, August 9, 2005

PEMBROKE, Bermuda -- AXIS Capital Holdings Limited ("AXIS Capital") (NYSE: AXS) today announced that JPMorgan Partners, a private equity affiliate of JPMorgan Chase & Co., and related entities ("JPMorgan") have agreed to sell approximately 7.8 million of AXIS Capital's common shares in a block trade. The shares to be sold do not include 3.8 million shares owned by J.P. Morgan Capital, L.P. and J.P. Morgan Corsair II Offshore Capital Partners, L.P.

Morgan Stanley & Co. Incorporated has agreed to purchase the common shares from JPMorgan and subsequently sell the shares to public investors. The common shares were offered under AXIS Capital's Form S-3 shelf registration statement. JPMorgan, an initial investor in AXIS Capital, will receive all net proceeds from the sale.

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.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the common shares in any state in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.

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.