Axis Confirms Marsh to Sell 3.7 Million Shares

Bermuda-based AXIS Capital Holdings Limited announced that Marsh & McLennan Risk Capital Holdings, Ltd., a subsidiary of Marsh & McLennan Companies, Inc., has agreed to sell 3.7 million of AXIS Capital’s common shares in a block trade.

“Merrill Lynch has agreed to purchase the common shares from Marsh Risk Capital and subsequently sell the shares to public investors,” said the announcement. “The common shares were offered under AXIS Capital’s Form S-3 shelf registration statement and represent approximately 50 percent of Marsh Risk Capital’s current ownership of AXIS Capital’s common shares. Marsh Risk Capital will receive all net proceeds from the sale. After the completion of the sale, Marsh Risk Capital will retain approximately 3.7 million common shares.”

Axis was formed after Sept. 11 by a number of investors. The most prominent was Marsh’s Trident II investment fund, part of MMC Capital. Marsh is in the process of divesting its interest in the division as a result of the ongoing investigations of the company by New York Attorney General Eliot Spitzer and other government agencies (See related article in national section).