AXIS Capital Announces Initial Investor Has Agreed to Sell Approximate

    Business Editors

    PEMBROKE, Bermuda--(BUSINESS WIRE)--May 11, 2005--AXIS Capital Holdings Limited ("AXIS Capital") (NYSE: AXS) today announced that Thomas H. Lee Partners and related entities ("T.H. Lee") have agreed to sell approximately 11.6 million of AXIS Capital's common shares in a block trade.
    Morgan Stanley has agreed to purchase the common shares from T.H. Lee 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 the entirety of T.H. Lee's current ownership of AXIS Capital's common shares. T.H. Lee 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 has been 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 March 31, 2005 of $3.0 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.

--30--MW/ny*

CONTACT: Investor Contacts AXIS Capital Holdings Limited Andrew Cook/Linda Ventresca 441/297-9513 info@axiscapital.com or Media Contacts Kekst and Company Laura Accettella, 212/521-4859

KEYWORD: INTERNATIONAL LATIN AMERICA INDUSTRY KEYWORD: INSURANCE SOURCE: AXIS Capital Holdings Limited

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