The ratings reflect AXIS' balance sheet strength, which
The revised outlooks are based on unfavorable trends in the group's operating performance, particularly from AXIS' insurance segment. Historically, AXIS' operating performance ranks among the top of its peer group; however, in recent years these results have trended toward the middle of its cohort. The group's combined ratio run rate has trended higher, giving AXIS a smaller cushion to absorb shock-losses. Additionally, AXIS' Accident & Health segment's organic build-out has contributed to a higher expense ratio and the group is yet to fully realize the benefit. While AXIS has taken measures to address these trends, the current challenging market conditions could impede its effectiveness.
AXIS' levels of risk-adjusted capitalization remain in the strongest category, even under stress scenarios. The group's balance sheet assessment also benefits from a favorable amount of financial flexibility and fungibility of capital within operating subsidiaries, but also reflects capital management strategies that have involved consistent common and preferred dividends, as well as share repurchases. AXIS' financial leverage metrics are elevated when compared with prior years, but this is a largely temporary position due to the timing of refinancing maturing senior notes.
The FSR of A+ (Superior) and the Long-Term ICR of "aa-" have been affirmed with the outlooks revised to negative from stable for the following subsidiaries of
The following indicative Long-Term IRs under the current shelf registration have been affirmed with the outlooks revised to negative from stable:
"a-" on senior unsecured debt
"bbb+ on subordinated debt
"bbb" on preferred stock This press release relates to Credit Ratings that have been published on
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