AXIS Specialty Europe Approved to Open Australian Branch

Business Wire, May 21, 2008

PEMBROKE, Bermuda -- AXIS Capital Holdings Limited ("AXIS Capital") (NYSE: AXS) today announced that AXIS Specialty Europe Limited (AXIS Specialty Europe), one of its European operating subsidiaries, has been authorized by the Australian Prudential Regulation Authority (APRA) to operate as a branch insurer to underwrite general insurance business in Australia.

AXIS Specialty Europe's Australian branch will be headquartered in Sydney and will conduct business under the name AXIS Specialty Australia. AXIS Specialty Europe has been providing professional indemnity, directors and officers liability and information technology liability insurance coverages as a direct offshore foreign insurer in Australia since 2005 through the specialist underwriting agencies Dexta Corporation Pty Ltd and Macquarie Underwriting Pty Ltd, both members of the Stardex Insurance Group.

John Charman, CEO and President of AXIS Capital, commented, "We appreciate the strong support we have received from APRA and the insurance market in Australia for our plans to open a branch office. Our establishment of a branch in Australia reaffirms our long-term commitment to the Australian marketplace and to continued enhancements of our global platform to better serve both local and multinational clients."

AXIS Specialty Australia coverages are underwritten by AXIS Specialty Europe. As an indirect wholly owned subsidiary of AXIS Capital, AXIS Specialty Europe carries the AXIS Capital group rating of "A" ("Excellent") XV by A.M. Best and "A" ("Strong") with a positive outlook by Standard & Poor's.

For more information, insurance agents and brokers should contact:

Dax Gulmohamed
AXIS Specialty Australia
c/o Dexta Corporation Pty Ltd
Level 23, Darling Park Tower 2
201 Sussex Street
Sydney NSW 2000 Australia
Tel.  61 (0)2 8235 1037
Fax  61 (0)2 8235 1095
dax.gulmohamed@axiscapital.com or dax.gulmohamed@dexta.com.au

AXIS Specialty Europe is a non-life insurance company authorized and supervised by the Irish Financial Services Regulatory Authority, and its branch in Australia is authorized and supervised by APRA.

AXIS Capital is a Bermuda-based global provider of specialty lines insurance and treaty reinsurance with shareholders' equity at March 31, 2008 of $5.4 billion and locations in Bermuda, the United States, Europe, Australia and Singapore. Its operating subsidiaries have been assigned a rating of "A" ("Excellent") by A.M. Best and a rating of "A" ("Strong") with a positive outlook 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.