AM Best has affirmed the credit ratings of Axis Capital Holdings and it subsidiaries.

The outlooks for all the ratings are stable.

AM Best, based in Oldwick, New Jersey, affirmed the Financial Strength Rating of A and the Long-Term Issuer Credit Ratings of a+ for the operating subsidiaries, and the Long-Term ICR of bbb+ for Axis Capital Holdings.

“The ratings reflect Axis’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, favourable business profile and appropriate enterprise risk management from the group’s risk profile,” the ratings agency said.

AM Best added that the company was well capitalised, the balance sheet was supported by financial flexibility and the company paid consistent common and preferred dividends and repurchases shares.

“Reserves have consistently run off favourably over the last ten-year period, reflecting the company’s reserving controls efficiency”, the ratings agency said.

It noted that Axis has implemented corrective measures to address and lower volatility by exiting the property catastrophe reinsurance business.

“AM Best categorises Axis’s business profile as favourable, as the group consistently ranks in AM Best’s Global Reinsurance 50 largest reinsurance enterprises.

“Despite some recent changes to its business mix, the group still retains a well-diversified profile as a specialty underwriter of complex risks with a significant presence in the Lloyd’s market”, the ratings agency said.

Axis Capital Holdings was founded in Bermuda in 2001. It has other offices globally, including New York, Singapore, London, Dublin and Paris.

The New York Stock Exchange-listed company reported a $193 million net income in 2022.

In the AM Best ranking of global reinsurers by premium writings in 2022, it was No 27 on the list.