Best Raises Rating On AXIS To A
NU Online News Service, March 11, 12:35 p.m. EST – Oldwick, N.J., based A.M. Best Co. said it has raised the financial strength rating of Bermuda-based AXIS Specialty Ltd. and its operating affiliates. to "A" (excellent) from "A-minus" (excellent) The rating outlook is stable, the rating service added.
Best said the action reflected "the company's superior operating results in its first year of operation."
Best credited AXIS with developing a strong broker distribution network and successfully implementing underwriting and risk management controls.
Best noted that AXIS is maintaining its capitalization with almost $2 billion of shareholders' equity at year-end 2002, and has a highly experienced management team.
AXIS has a combined ratio of 71 percent in 2002, Best said.
The carrier benefits from higher market rates, light catastrophes and an unencumbered balance sheet, noted Best.
For 2002, the company's cash and invested assets increased by almost $600 million, it added.
Formed in late 2001, the AXIS business plan, Best said, focuses on short-tail lines, principally specialty lines in property, marine, energy and aerospace along with property, catastrophe, aviation and marine reinsurance.
Best said that potential market pressure on pricing, which could dampen expected returns and exposure to low-frequency high-severity property catastrophe losses, could affect the company's performance in the future.
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