Document:

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                                                                 Exhibit 10.13

                              AXIS CAPITAL HOLDINGS LIMITED
                    2003 DIRECTORS LONG-TERM EQUITY COMPENSATION PLAN

                                                     Effective March 14, 2003

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                                TABLE OF CONTENTS
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                                                                                             PAGE
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ARTICLE 1 Establishment, Objectives, and Duration..............................................1

ARTICLE 2 Definitions..........................................................................1

ARTICLE 3 Administration.......................................................................4

ARTICLE 4 Shares Subject to the Plan and Maximum Awards........................................4

ARTICLE 5 Shares...............................................................................5

ARTICLE 6 Options..............................................................................5

ARTICLE 7 Restricted Stock.....................................................................7

ARTICLE 8 Restrictions on Shares; Puts, Calls and Rights of First Refusal......................8

ARTICLE 9 Beneficiary Designation..............................................................8

ARTICLE 10 Change in Control...................................................................8

ARTICLE 11 Amendment, Suspension, and Termination..............................................9

ARTICLE 12 Withholding.........................................................................9

ARTICLE 13 Indemnification....................................................................10

ARTICLE 14 Successors.........................................................................10

ARTICLE 15 Miscellaneous......................................................................11
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                          AXIS CAPITAL HOLDINGS LIMITED
                2003 DIRECTORS LONG-TERM EQUITY COMPENSATION PLAN

                                   ARTICLE 1

                     ESTABLISHMENT, OBJECTIVES, AND DURATION

         1.1 ESTABLISHMENT OF THE PLAN. AXIS Capital Holdings Limited, a company
organized and existing under Bermuda law (hereinafter referred to as the
"Company"), hereby establishes an incentive compensation plan for Directors to
be known as the "AXIS Capital Holdings Limited 2003 Directors Long-Term Equity
Compensation Plan" (hereinafter referred to as the "Plan"), as set forth in this
document and individual Award Agreements setting forth certain terms and
conditions applicable to awards granted under the Plan. The Plan permits the
grant of Shares, Options and Restricted Stock.

         The Plan shall become effective March 14, 2003 (the "Effective Date"),
subject to shareholder approval, and shall remain in effect as provided in
Section 1.3 herein.

         1.2 OBJECTIVES OF THE PLAN. The objectives of the Plan are to optimize
the profitability and growth of the Company through incentives which are
consistent with the Company's goals and which link the personal interests of
Directors to those of the Company's shareholders. The Plan is further intended
to provide flexibility to the Company in its ability to retain and attract
well-qualified persons for service as Directors.

         1.3 DURATION OF THE PLAN. The Plan shall commence on the Effective
Date, as described in Section 1.1 herein, and shall remain in effect, subject to
the right of the Board to amend or terminate the Plan at any time pursuant to
Article 11 herein, until all Shares subject to it shall have been purchased or
acquired according to the Plan's provisions.

                                   ARTICLE 2

                                  DEFINITIONS

         Whenever used in the Plan, the following terms shall have the meanings
set forth below, and, when the meaning is intended, the initial letter of the
word shall be capitalized:

         2.1 "AFFILIATE" means any person or entity which, at the time of
reference, directly, or indirectly through one or more intermediaries, controls
or is controlled by the Company.

         2.2 "AWARD" means, individually or collectively, a grant under the Plan
of Shares, Options or Restricted Stock.

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         2.3 "AWARD AGREEMENT" means an agreement entered into by the Company
and a Director setting forth the terms and provisions applicable to Awards
granted under the Plan.

         2.4 "BOARD" means the board of directors of the Company.

         2.5 "CHANGE IN CONTROL" will be deemed to have occurred as of the first
day any of the following events occurs:

             (a) Any Person is or becomes the "beneficial owner" (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the
Company representing 50% or more of the combined voting power of the Company's
then outstanding voting securities entitled to vote generally in the election of
directors (the "Outstanding Company Voting Securities"); provided however, that
for purposes of this subsection (a), the following acquisitions shall not
constitute a Change in Control: (i) any acquisition directly from the Company,
(ii) any acquisition by the Company, (iii) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any
Affiliate, or (iv) any acquisition by any entity pursuant to a transaction which
complies with clauses (i), (ii) and (iii) of paragraph (c) below;

             (b) Individuals who, as of January 1, 2003, constitute the Board
(hereinafter referred to as the "Incumbent Board") cease for any reason to
constitute at least a majority of the Board; provided however, that any
individual becoming a director subsequent to the date herein whose election, or
nomination for election by the Company's stockholders, was approved by a vote of
at least a majority of the directors then comprising the Incumbent Board shall
be considered a member of the Incumbent Board, excluding any individual whose
initial assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of directors or other
actual or threatened solicitation of proxies or consents by or on behalf of a
Person other than the Board;

             (c) Consummation of a reorganization, merger, share exchange,
amalgamation, recapitalization, consolidation or similar transaction by and
among the Company and another Person, including, for this purpose, a transaction
as a result of which another Person owns the Company or all or substantially all
of the Company's assets, either directly or through one or more subsidiaries (a
"Business Combination"), in each case, unless, following such Business
Combination, (i) all or substantially all of the individuals and entities who
were the beneficial owners, respectively, of the Outstanding Company Voting
Securities immediately prior to such Business Combination beneficially own,
directly or indirectly, more than 50% of the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of
directors (or equivalent management personnel) of the Person resulting from such
Business Combination or that, as a result of such Business Combination, owns the
Company or

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all or substantially all of the Company's assets, either directly or through one
or more subsidiaries, in substantially the same proportions as their ownership
of the Outstanding Company Voting Securities immediately prior to such Business
Combination; (ii) no Person (excluding any Person resulting from such Business
Combination, or that, as a result of such Business Combination, owns the Company
or all or substantially all of the Company's assets, either directly or through
one or more subsidiaries, or any employee benefit plan (or related trust) of the
foregoing) beneficially owns, directly or indirectly, 50% or more of the then
outstanding shares of common stock or the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of
directors (or equivalent management personnel) of the Person resulting from such
Business Combination or that, as a result of such Business Combination, owns the
Company or all or substantially all of the Company's assets, either directly or
through one or more subsidiaries, except to the extent that such ownership
existed with respect to the Company prior to the Business Combination; and (iii)
at least a majority of the members of the board of directors (or equivalent
management personnel) of the Person resulting from such Business Combination or
that, as a result of such Business Combination, owns the Company or all or
substantially all of the Company's assets, either directly or through one or
more subsidiaries, were members of the Incumbent Board at the time of the
execution of the initial agreement, or of the action of the board, pursuant to
which such Business Combination is effected or approved; or

             (d) Approval by the shareholders of the Company of a complete
liquidation or dissolution of the Company or the sale or other disposition of
all or substantially all of the Company's assets.

         2.6 "CODE" means the Internal Revenue Code of 1986, as amended from
time to time.

         2.7 "COMPANY" means AXIS Capital Holdings Limited, a company organized
and existing under the laws of the Islands of Bermuda, and any successor thereto
as provided in Article 14 herein.

         2.8 "DIRECTOR" means any director of the Company who is not an employee
of the Company or an Affiliate.

         2.9 "EFFECTIVE DATE" shall have the meaning ascribed to such term in
Section 1.1 herein.

         2.10 "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended from time to time.

         2.11 "EXERCISE PRICE" means the price at which a Share may be purchased
by a Director pursuant to an Option.

         2.12 "FAIR MARKET VALUE" means the closing sale price of a Share on the
principal securities exchange or market on which the Shares are traded or, if
there is no such sale on the relevant date, then on the last previous day on
which a sale was reported or, if the Shares are not publicly traded, the fair
market value of the Shares as determined in good faith by the Board.

         2.13 "FEES" means the compensation payable to a Director by reason of
service on the Board either (i) as a retainer (without regard to attendance at
meetings) or (ii) on a per meeting basis.

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         2.14 "OPTION" means an option to purchase Shares granted pursuant to
Article 6 herein.

         2.15 "PERSON" shall have the meaning ascribed to such term in Section
3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof,
including a "group" as defined in Section 13(d) thereof.

         2.16 "PERIOD OF RESTRICTION" means the period during which the transfer
of Shares of Restricted Stock is limited in some way and the Shares are subject
to a substantial risk of forfeiture, as provided in Section 7.4 herein.

         2.17 "RESTRICTED STOCK" means an Award granted pursuant to Article 7
herein.

         2.18 "SHARES" means shares of the Company's common stock, par value
U.S. $0.10 per share.

                                   ARTICLE 3

                                 ADMINISTRATION

         The Plan shall be administered by the Board. Except as limited by law
or by the Memorandum of Association or the Bye-laws of the Company, and subject
to the provisions herein, the Board shall have full power to determine the terms
and conditions of Awards in a manner consistent with the Plan; construe and
interpret the Plan and any agreement or instrument entered into under the Plan;
establish, amend, or waive rules and regulations for the Plan's administration;
and (subject to the provisions of Article 11 herein) amend the terms and
conditions of any outstanding Award to the extent such terms and conditions are
within the discretion of the Board. Further, the Board shall make all other
determinations which may be necessary or advisable for the administration of the
Plan. As permitted by law, the Board may delegate its authority as identified
herein.

          All determinations and decisions made by the Board pursuant to the
provisions of the Plan, and all related orders and resolutions of the Board,
shall be final, conclusive and binding on all persons, including the Company,
its Affiliates, its shareholders, Directors, and their estates and
beneficiaries.

                                   ARTICLE 4

                  SHARES SUBJECT TO THE PLAN AND MAXIMUM AWARDS

         4.1 NUMBER OF SHARES AVAILABLE FOR GRANTS. Subject to adjustment as
provided in Section 4.2 herein, the maximum number of Shares available for
Awards hereunder shall be 150,000. If any Award is forfeited or for any reason
expires, is terminated, or is cancelled without exercise, if an Option, or
without vesting, if Restricted Stock, the Shares subject to such Award shall
again be available for grant or issuance under the Plan.

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         4.2 ADJUSTMENTS IN AUTHORIZED SHARES. In the event of any change in
capitalization of the Company, including, but not limited to, a stock split,
stock dividend, merger, recapitalization, share exchange, amalgamation,
consolidation, reorganization (whether or not such reorganization comes within
the definition of such term in Code Section 368), separation, including a
spin-off or other distribution of stock or property of the Company, or any
partial or complete liquidation of the Company, an adjustment shall be made to
the (a) maximum number of Shares available for grants under the Plan, as
provided in Section 4.1, and/or kind of Shares that may be delivered under the
Plan, and (b) number, kind and/or price of Shares (I.E., Exercise Price for
Options) subject to outstanding Awards granted under the Plan, as may be
determined to be appropriate and equitable by the Board, in its sole discretion,
to prevent dilution or enlargement of rights; provided, however, that the number
of Shares subject to the Plan and/or any Award shall always be rounded to the
nearest whole number, with one-half (1/2) of a share rounded up to the next
higher number.

                                   ARTICLE 5

                                    SHARES

         Subject to the terms and provisions of the Plan, the Board shall grant
Shares to Directors who elect to receive Fees in common stock of the Company in
lieu of cash compensation. Each Share grant shall be evidenced by an Award
Agreement that shall specify the number of Shares granted and such other
provisions as the Board shall determine.

                                   ARTICLE 6

                                   OPTIONS

         6.1 GRANT OF OPTIONS. Subject to the terms and provisions of the Plan,
each Director may be granted Options in such number, and upon such terms, and at
any time and from time to time as shall be determined by the Board.

         6.2 AWARD AGREEMENT. Each Option grant shall be evidenced by an Award
Agreement that shall specify the Exercise Price, the duration of the Option, and
such other provisions as the Board shall determine.

         6.3 EXERCISE PRICE. The Exercise Price for each grant of an Option
under the Plan shall be no less than one hundred percent (100%) of the Fair
Market Value of a Share on the date the Option is granted.

         6.4 DURATION OF OPTIONS. Each Option granted to a Director shall expire
at such time as the Board shall determine at the time of grant; provided,
however, that no Option shall be exercisable later than the tenth (10th)
anniversary date of its grant.

         6.5 EXERCISE OF OPTIONS. Options shall be exercisable at such times and
subject to such restrictions and conditions as set forth in the Award Agreement
and as

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the Board shall in each instance approve, which need not be the same for each
grant or for each Director.

         6.6 PAYMENT. Options shall be exercised by the delivery of a written
notice of exercise to the Company, setting forth the full number of Shares with
respect to which the Option is to be exercised and by full payment for the
Shares.

         The Exercise Price of any Option shall be payable to the Company in
full either (a) in cash or its equivalent or (b) if permitted by the Board, by
tendering previously acquired Shares having an aggregate Fair Market Value at
the time of exercise equal to the total Exercise Price (provided that the
Shares, other than Shares purchased by the Director on the open market, which
are tendered must have been held by the Director for at least six (6) months
prior to their tender to satisfy the Exercise Price), or (c) by a combination of
(a) and (b).

         Additionally, if the Company's shares are publicly traded, Options may
be exercised by a cashless exercise, as permitted under Federal Reserve Board's
Regulation T, subject to applicable securities law restrictions, or by any other
means may be allowed on such terms and conditions as the Board, in its sole
discretion, shall determine to be consistent with the Plan's purpose and
applicable law, from time to time.

         Subject to any applicable laws and governing rules or regulations, as
soon as practicable after receipt of a written notification of exercise and full
payment, the Company shall issue to the Director and/or a transferee of all or a
portion of the Option (provided such transfer was permitted under law and the
terms of the Plan and Award Agreement) Shares in an appropriate amount based
upon the number of Shares purchased under the Option(s).

         6.7 TERMINATION OF SERVICE. Each Director's Option Award Agreement
shall set forth the extent to which the Director shall have the right to
exercise the Option following termination of service as a Director. Such
provisions shall be determined in the sole discretion of the Board, shall be
included in the Award Agreement entered into with each Director, need not be
uniform among all Options, and may reflect distinctions based on the reasons for
termination of service.

         6.8 NONTRANSFERABILITY OF OPTIONS. Except as otherwise provided in a
Director's Award Agreement, no Option may be sold, transferred, pledged,
assigned, or otherwise alienated or hypothecated, other than by will or by the
laws of descent and distribution. Further, except as otherwise provided in a
Director's Award Agreement, during the lifetime of a Director, all Options
granted to such Director shall be exercisable only by such Director.

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                                   ARTICLE 7

                                RESTRICTED STOCK

         7.1 GRANT OF RESTRICTED STOCK. Subject to the terms and provisions of
the Plan, each Director may be granted Shares of Restricted Stock in such
amount, and upon such terms, and at any time and from time to time as shall be
determined by the Board.

         7.2 RESTRICTED STOCK AGREEMENT. Each Restricted Stock grant shall be
evidenced by an Award Agreement that shall specify the Period(s) of Restriction,
the number of Shares of Restricted Stock granted, and such other provisions as
the Board shall determine.

         7.3 TRANSFERABILITY. Except as otherwise provided in a Director's Award
Agreement, the Shares of Restricted Stock may not be sold, transferred, pledged,
assigned or otherwise alienated or hypothecated until the end of the applicable
Period of Restriction. During the lifetime of a Director, all rights with
respect to the Restricted Stock granted to such Director under the Plan shall be
available only to such Director.

         7.4 RESTRICTIONS. Subject to the terms herein, the Board shall impose
such conditions and/or restrictions on any Shares of Restricted Stock granted
pursuant to the Plan as it may deem advisable and as are set forth in the Award
Agreement including, without limitation, a requirement that Directors pay a
stipulated purchase price for each Share of Restricted Stock, restrictions based
upon the achievement of specific performance goals (Company-wide, divisional,
and/or individual), time-based restrictions on vesting, and/or restrictions
under applicable federal or state securities laws.

         The Company shall retain the certificates representing Shares of
Restricted Stock in the Company's possession until such time as all conditions
and/or restrictions applicable to such Shares have been satisfied.

         Except as otherwise provided in the Plan, a Director's Award Agreement
or as otherwise provided by the Board, Shares of Restricted Stock shall become
freely transferable by the Director after the last day of the applicable Period
of Restriction.

         7.5 VOTING RIGHTS. During the Period of Restriction, subject to any
limitations imposed under the Bye-laws of the Company or in an Award Agreement,
Directors holding Shares of Restricted Stock granted hereunder may exercise full
voting rights with respect to those Shares.

         7.6 DIVIDENDS AND OTHER DISTRIBUTIONS. During the Period of
Restriction, Directors holding Shares of Restricted Stock granted hereunder may
be credited with regular dividends paid with respect to the underlying Shares
while they are so held. The Board may apply any restrictions to the dividends
that the Board deems appropriate and as are set forth in the Award Agreement.

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         7.7 TERMINATION OF SERVICE. Each Award Agreement shall set forth the
extent to which the Director shall have the right to receive unvested Restricted
Shares following termination of service as a Director. Such provisions shall be
determined in the sole discretion of the Board, shall be included in the Award
Agreement entered into with each Director, need not be uniform among all Shares
of Restricted Stock issued pursuant to the Plan, and may reflect distinctions
based on the reasons for termination of service.

                                   ARTICLE 8

         RESTRICTIONS ON SHARES; PUTS, CALLS AND RIGHTS OF FIRST REFUSAL

         8.1 RESTRICTIONS ON SHARES. All Shares acquired pursuant Awards granted
hereunder shall be subject to any applicable restrictions contained in the
Company's Bye-laws, Memorandum of Association, or Shareholders Agreement. In
addition, the Board may impose such restrictions on any Shares acquired pursuant
to Awards as it may deem advisable, including, without limitation, restrictions
under applicable securities laws, under the requirements of any stock exchange
or market upon which such Shares are then listed and/or traded, restrictions
under any blue sky or state securities laws applicable to such Shares.

         8.2 PUTS, CALLS AND RIGHTS OF FIRST REFUSAL. The Board may make Shares
acquired pursuant to Awards granted hereunder subject to call rights, put
rights, and/or rights of first refusal as it may deem advisable and as set forth
in the applicable Award Agreement. Any such rights shall terminate at the time
of an initial public offering of the Shares.

                                   ARTICLE 9

                             BENEFICIARY DESIGNATION

         Subject to the terms and conditions of the Plan and applicable Award
Agreement, each Director may, from time to time, name any beneficiary or
beneficiaries (who may be named contingently or successively) to whom any
benefit under the Plan is to be paid in case of his or her death before he or
she receives any or all of such benefit. Each such designation shall revoke all
prior designations by the same Director, shall be in a form prescribed by the
Company, and will be effective only when filed by the Director in writing during
the Director's lifetime with the party chosen by the Company, from time to time,
to administer the Plan. In the absence of any such designation, benefits
remaining unpaid at the Director's death shall be paid to the Director's estate.

                                   ARTICLE 10

                                CHANGE IN CONTROL

         10.1 TREATMENT OF OUTSTANDING OPTIONS AND RESTRICTED STOCK. Upon the
occurrence of a Change in Control, unless otherwise specifically prohibited
under

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applicable laws, or by the rules and regulations of any governing governmental
agencies or national securities exchanges:

             (a) any and all Options granted hereunder shall become immediately
exercisable, and shall remain exercisable throughout their entire term, unless
exercised, cashed out, or replaced; and

             (b) any Period of Restriction imposed on Restricted Shares shall
lapse.

         10.2 TERMINATION, AMENDMENT, AND MODIFICATIONS OF CHANGE-IN-CONTROL
PROVISIONS. Notwithstanding any other provision of the Plan or any Award
Agreement provision, the provisions of this Article 10 may not be terminated,
amended, or modified on or after the date of a Change in Control to affect
adversely any Award theretofore granted under the Plan without the prior written
consent of the Director with respect to such Director's outstanding Awards.

                                   ARTICLE 11

                     AMENDMENT, SUSPENSION, AND TERMINATION

         11.1 AMENDMENT, SUSPENSION, AND TERMINATION. The Board may at any time
and from time to time amend, suspend or terminate the Plan or any Award
hereunder in whole or in part; provided, however, that no amendment which
requires shareholder approval in order for the Plan to continue to comply with
any applicable tax or securities laws, or the rules of any securities exchange
on which the securities of the Company are listed, shall be effective unless
such amendment shall be approved by the requisite vote of shareholders of the
Company entitled to vote thereon; provided further that no amendment, suspension
or termination shall adversely affect any Award hereunder without the consent of
the Director to whom such Award has been made.

         11.2 ADJUSTMENT OF AWARDS UPON THE OCCURRENCE OF CERTAIN UNUSUAL OR
NONRECURRING EVENTS. The Board may make adjustments in the terms and conditions
of Awards in recognition of unusual or nonrecurring events (including, without
limitation, the events described in Section 4.2 herein) affecting the Company or
the financial statements of the Company or of changes in applicable laws,
regulations, or accounting principles, whenever the Board determines that such
adjustments are appropriate in order to prevent dilution or enlargement of the
benefits or potential benefits intended to be made available under the Plan.

                                   ARTICLE 12

                                   WITHHOLDING

         12.1 TAX WITHHOLDING. The Company shall have the power and the right to
deduct or withhold, or require a Director to remit to the Company, an amount
sufficient to satisfy any taxes, domestic or foreign, required by law or
regulation to be withheld with respect to any taxable event arising as a result
of the Plan.

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         12.2 SHARE WITHHOLDING. Directors may elect, subject to the approval of
the Board, to satisfy all or part of such withholding requirement by having the
Company withhold Shares having a Fair Market Value equal to the minimum
statutory total tax which could be imposed on the transaction. All such
elections shall be irrevocable, made in writing, signed by the Director, and
shall be subject to any restrictions or limitations that the Board, in its sole
discretion, deems appropriate.

                                   ARTICLE 13

                                 INDEMNIFICATION

         Each person who is or shall have been a member of the Board shall be
indemnified and held harmless by the Company to the fullest extent permitted by
applicable law against and from any loss, cost, liability, or expense that may
be imposed upon or reasonably incurred by him or her in connection with or
resulting from any claim, action, suit, or proceeding to which he or she may be
a party or in which he or she may be involved by reason of any action taken or
failure to act under the Plan and against and from any and all amounts paid by
him or her in settlement thereof, with the Company's approval, or paid by him or
her in satisfaction of any judgment in any such action, suit, or proceeding
against him or her, provided he or she shall give the Company an opportunity, at
its own expense, to handle and defend the same before he or she undertakes to
handle and defend it on his or her own behalf. The foregoing right of
indemnification is subject to the person having been successful in the legal
proceedings or having acted in good faith and what is reasonably believed to be
a lawful manner in the Company's best interests. The foregoing right of
indemnification shall not be exclusive of any other rights of indemnification to
which such persons may be entitled under the Memorandum of Association or the
Bye-laws of the Company, as a matter of law, or otherwise, or any power that the
Company may have to indemnify them or hold them harmless.

                                   ARTICLE 14

                                   SUCCESSORS

         The Company shall require any successor (whether direct or indirect, by
purchase, merger, share exchange, reorganization, recapitalization,
amalgamation, consolidation, or otherwise) to all or substantially all of its
business or assets to expressly assume and agree to perform under the Plan in
the same manner and to the same extent that it would be required to perform if
no such succession had taken place. As used in the Plan, the term "Company"
shall mean any successor that expressly assumes and agrees to perform the Plan,
which otherwise becomes bound by all the terms and provisions of the Plan by
operation of law, or any other entity which expressly assumes the obligations
under, and agrees to administer, the Plan, as determined by the Board in its
sole discretion.

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                                    ARTICLE 15

                                  MISCELLANEOUS

         15.1 LEGAL CONSTRUCTION. Except where otherwise indicated by the
context, any masculine term used herein also shall include the feminine, the
plural shall include the singular, and the singular shall include the plural.
References to sections, rules, or regulations shall be deemed to include
references to any successor sections, rules, or regulations.

         15.2 SEVERABILITY. In the event any provision of the Plan shall be held
illegal or invalid for any reason, the illegality or invalidity shall not affect
the remaining parts of the Plan, and the Plan shall be construed and enforced as
if the illegal or invalid provision had not been included.

         15.3 REQUIREMENTS OF LAW. The granting of Awards and the issuance of
Shares under the Plan shall be subject to, and may be made contingent upon
satisfaction of, all applicable laws, rules, and regulations, and to such
approvals by any governmental agencies or national securities exchanges as may
be required.

         15.4 GOVERNING LAW. To the extent not preempted by federal law, the
Plan, and all agreements hereunder, shall be construed in accordance with and
governed by the laws of the Islands of Bermuda, without reference to principles
of conflict of law.

                                       11<PAGE>

                                                                 EXHIBIT 10.14

                          AXIS CAPITAL HOLDINGS LIMITED

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                    2003 DIRECTORS DEFERRED COMPENSATION PLAN

                AS AMENDED AND RESTATED EFFECTIVE MARCH 14, 2003

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                                   ARTICLE I.
                           PURPOSE AND EFFECTIVE DATE

The purpose of the AXIS Capital Holdings Limited 2003 Directors Deferred
Compensation Plan ("Plan") is to aid AXIS Capital Holdings Limited, a company
organized and existing under Bermuda law (the "Company"), and its subsidiaries
in retaining and attracting well-qualified persons for service as Non-Employee
Directors by providing such persons with the opportunity to elect to defer
receipt of all or a portion of their compensation. The Plan first became
effective January 1, 2003.

Effective March 14, 2003, the AXIS Directors Deferred Compensation Plan, as
amended (the "Specialty Directors Plan"), was merged into the Plan, and the
Company agreed to assume all of the benefit obligations of AXIS Specialty
Limited with respect to the Specialty Directors Plan. Fees earned and deferred
under the Specialty Directors Plan shall be treated as having been deferred
pursuant to the terms of this Plan.

                                   ARTICLE II.
                                   DEFINITIONS

For the purposes of the Plan, when capitalized, the following terms shall have
the meanings set forth below:

"Beneficiary" means the person, persons or entity designated by the Participant
pursuant to Article VIII to receive any benefits payable under the Plan.

"Board" means the Board of Directors of the Company.

"Common Stock" means the common stock of the Company, par value U.S. $0.10 per
share, or if the Company is not the ultimate parent, the common stock of such
ultimate parent of the Company.

"Company" means AXIS Capital Holdings Limited and any successor thereto.

"Deferral Account" means the bookkeeping account maintained on the books of the
Board for each Participant pursuant to Article VI.

"Deferred Amount" means the amount of Fees the Participant elects to defer for
the applicable Plan Year.

"Determination Date" means the date described in Section 7.01(a) hereof.

"Fair Market Value" means, as of a particular date, if publicly traded the
closing price of the Common Stock on the last day traded on the principal
securities exchange or market on which the Common Stock is traded. Until the
Common Stock is publicly

<PAGE>

traded, fair market value shall be based on an appraisal by an independent
appraiser if the Valuation Date is within 90 days of the date as of which fair
market value is being determined hereunder. If not publicly traded and there is
no such appraisal within such 90 days, fair market value shall be book value as
determined for financial accounting purposes on the Company's financial
statements coincident with or first preceding such date.

"Fees" means the cash and/or stock compensation payable to a Participant by
reason of service as a Non-Employee Director either (i) as a retainer (without
regard to attendance at meetings) or (ii) on a per meeting basis.

"Non-Employee Director" means any director on the Board or the board of
directors of a subsidiary of the Company who is not an employee of the Company
or any of its subsidiaries.

"Participant" means any Non-Employee Director who elects to participate by
filing a Participation Agreement as provided in Article IV.

"Participation Agreement" means an agreement in such form as the Board may
prescribe filed by a Participant in accordance with Article IV.

"Phantom Share Unit" means a notional determinate quantity used as a standard
for measuring a Participant's potential benefit under the Plan pursuant to
Section 6.02.

"Plan Year" means a twelve-month period beginning January 1 and ending the
following December 31.

"Valuation Date" means, with respect to the form of payment described in Section
7.01(b)(ii), either (a) the Determination Date and the first and second
anniversaries of the Determination Date, or, in the sole discretion of the
Board, (b) the Determination Date and the first day of each of the next two
successive calendar years following the calendar year containing the
Determination Date.

                                  ARTICLE III.
                                 ADMINISTRATION

3.01.    AUTHORITY OF THE BOARD.
         -----------------------

(a)      The Plan shall be administered by the Board, which shall have the
         authority to adopt rules and regulations for carrying out the Plan and
         shall interpret and implement the Plan. The Board shall have discretion
         to delegate to an officer of the Company or other person approved by
         the Board such duties as it may determine. All rules, interpretations
         and decisions of the Board or its delegee respecting the Plan shall be
         conclusive and binding on the Company, Participants, and Beneficiaries.

                                       2
<PAGE>

(b)      No member of the Board shall be liable for any act or action hereunder,
         whether of omission or commission, by any other member or employee or
         by any agent to whom duties in connection with the administration of
         this Plan have been delegated or for anything done or omitted to be
         done in connection with this Plan.

(c)      The Company shall, to the fullest extent permitted by law, indemnify
         each officer or employee of the Company (including the heirs,
         executors, administrators and other personal representatives of such
         person) and each member of the Board against expenses (including
         attorneys' fees), judgments, fines, amounts paid in settlement,
         actually and reasonably incurred by such person in connection with any
         threatened, pending or actual suit, action or proceeding (whether
         civil, criminal, administrative or investigative in nature or
         otherwise) in which such person may be involved because he or she is or
         was serving the Plan in any capacity.

(d)      The Company shall pay any expense incurred by the Company or the Board
         related to the administration of the Plan.

3.02.    CLAIM PROCEDURE.
         ------------------

         If a Participant or Beneficiary makes a written request alleging a
         right to receive payments under the Plan or alleging a right to receive
         an adjustment in benefits being paid under the Plan, such actions shall
         be treated as a claim for benefits. All claims for benefits under the
         Plan shall be sent to the Board. If the Board determines that any
         claimant is not entitled to receive all or any part of the benefits
         claimed, the Board shall notify the claimant in writing of such
         determination and the reasons therefor. Such notice shall be sent
         within 90 days of the claim unless the Board determines that additional
         time, not exceeding 90 days, is needed and so notifies the Participant.
         The Board's determination regarding claims for benefits shall be final
         and binding on Participants and Beneficiaries.

                                   ARTICLE IV.
                                  PARTICIPATION

4.01.    PARTICIPATION.
         ----------------

         Participation in the Plan shall be limited to Non-Employee Directors
         who elect to participate in the Plan by filing a Participation
         Agreement with the Board. A Participation Agreement must be filed prior
         to the beginning of the Plan Year for which it is effective; provided,
         however that in the first year in which an individual becomes eligible
         to participate in the Plan, including the first Plan Year of the Plan,
         the newly eligible Participant may make an election to defer
         compensation for services to be performed subsequent to such election
         within 30 days after the date the individual becomes eligible to
         participate.

                                       3
<PAGE>

4.02.    CONTENTS OF PARTICIPATION AGREEMENT.
         --------------------------------------

         Subject to Article VII, each Participation Agreement shall set forth:

         (a)      whether the Participant receives Fees in

                  (i)      cash,

                  (ii)     Common Stock, or

                  (iii)    a combination of (i) and (ii);

         (b)      the Deferred Amount, expressed as

                  (i)      (A)  a dollar amount, and/or

                           (B)  a number of shares of Common Stock, or

                  (ii)     a percentage of Fees (if Fees are payable in both
                           cash and Common Stock, the Participant shall specify
                           a separate percentage of cash and Common Stock to be
                           deferred); and

         (c)      the form in which payments are to be made, which may be a lump
                  sum or in three (3) annual installments.

4.03.    MODIFICATION OR REVOCATION OF ELECTION BY PARTICIPANT.
         --------------------------------------------------------

         Elections made pursuant to a Participation Agreement shall remain in
         effect for the next Plan Year and for subsequent Plan Years unless and
         until revoked or amended. Any such revocation or amendment will apply
         only to Fees earned in the Plan Year beginning after the date of the
         revocation or amendment. Except as provided under Section 4.01, under
         no circumstances may a Participant's Participation Agreement be made,
         modified, or revoked retroactively.

                                   ARTICLE V.
                              DEFERRED COMPENSATION

5.01.    CREDITING OF DEFERRAL ACCOUNTS.
         ---------------------------------

         The Board shall credit the Deferred Amount of a Participant, with
         respect to each Plan Year of participation in the Plan, to the
         Participant's Deferral Account when such Deferred Amount would
         otherwise have been paid to the Participant. Fees deferred in lieu of
         cash compensation shall be credited to the Participant's Deferral
         Account in cash. Fees deferred in lieu of stock compensation shall be
         credited to the Participant's Deferral Account in Phantom Share Units
         pursuant to Section 6.02.

                                       4
<PAGE>

5.02.    VESTING OF DEFERRAL ACCOUNT.
         ------------------------------

         A Participant shall be 100% vested in his/her Deferral Account at all
         times.

                                  ARTICLE VI.
                     MAINTENANCE AND INVESTMENT OF ACCOUNTS

6.01.    MAINTENANCE OF ACCOUNTS.
         --------------------------

         A separate Deferral Account shall be maintained for each Participant.
         In addition, various subaccounts may be maintained for a Participant as
         necessary to reflect separate Participation Agreements, cash deferrals,
         and Phantom Share Units. A Participant's Deferral Account shall be
         utilized solely as a device for the measurement and determination of
         the amounts to be paid to the Participant pursuant to the Plan, and
         shall not constitute or be treated as a trust fund of any kind. The
         balance of a Participant's Deferral Account shall be adjusted to
         reflect changes in the value of the deemed investments thereof,
         adjustments, credits and debits pursuant to Section 6.02, and
         distributions pursuant to Article VII.

6.02.    DEFERRALS.
         ----------

(a)      STOCK DEFERRALS.
         ---------------

         (i)      Participants who defer Fees otherwise payable in shares of
                  Common Stock shall have credited to their Deferral Accounts a
                  number of Phantom Stock Units equal to the number of shares of
                  Common Stock deferred.

         (ii)     In the event a cash dividend is declared on the Common Stock,
                  the portion of the Participant's Deferral Account denominated
                  in Phantom Share Units shall be credited with additional
                  Phantom Share Units (or portions thereof) equal to the number
                  of Phantom Share Units in the Participant's Deferral Account
                  as of the dividend date multiplied by a fraction, the
                  numerator of which is the amount of the cash dividend per
                  share of Common Stock, and the denominator of which is the
                  Fair Market Value of one share of Common Stock on the dividend
                  declaration date.

         (iii)    In the event of any change in capitalization of the Company,
                  including, but not limited to, a stock split, stock dividend,
                  merger, recapitalization, share exchange, amalgamation,
                  consolidation, reorganization (whether or not such
                  reorganization comes within the definition of such term in
                  Section 368 of the Internal Revenue Code of 1986, as amended),
                  separation (including a spin-off or other distribution of
                  stock or property of the Company), any partial

                                       5
<PAGE>

                  or complete liquidation of the Company, or any other change in
                  the structure or capitalization of the Company affecting the
                  Common Stock, such that an adjustment is determined by the
                  Board to be appropriate in order to prevent dilution or
                  enlargement of the benefits or potential benefits intended to
                  be made available under the Plan, the Board may make
                  appropriate adjustments to the number of Phantom Share Units
                  in a Participant's Deferral Account and/or the kind or class
                  of shares deliverable under the Plan. The determination of the
                  Board as to such adjustments, if any, to be made shall be
                  conclusive and binding on all Participants and Beneficiaries.

(b)      CASH DEFERRALS.
         --------------

         Fees otherwise payable in cash that are deferred during a Plan Year and
         credited to a Participant's Deferral Account pursuant to Section 5.01
         shall begin accruing interest as of the date such amounts are credited.
         Interest shall be credited at the LIBOR rate for the Plan Year. The
         LIBOR rate in effect for a particular Plan Year shall be the rate of
         interest that is 1.00% (or 100 basis points) in excess of the 12-month
         London Interbank Offered Rate (LIBOR) for deposits of U.S. dollars, as
         quoted in The Wall Street Journal effective for the first business day
         of the calendar year (expressed as a decimal). Interest credited on
         such amounts shall be compounded on an annual basis.

6.03.    STATEMENT OF ACCOUNTS.
         ------------------------

         The Board shall submit to each Participant annual statements of his/her
         Deferral Account in such form as the Board prescribes, setting forth
         the Participant's Deferral Account balance as of the end of the most
         recent Plan Year.

                                  ARTICLE VII.
                                    BENEFITS

7.01.    TIME, FORM, AND MEDIUM OF PAYMENT.
         ------------------------------------

         (a)      Except as provided in Section 7.02, a Participant's benefits
                  under the Plan shall not be distributed prior to the date
                  he/she ceases service as a Non-Employee Director.

         (b)      FORM OF PAYMENT.
                  ---------------

                  (i)      If the Participant has elected pursuant to one or
                           more Participation Agreements to receive payment of
                           all or a portion of his/her Deferral Account in a
                           lump sum, the Participant's benefits shall be valued
                           as of the Determination Date and paid by the Company
                           to

                                       6
<PAGE>

                           him/her (or to his/her Beneficiary if the Participant
                           is deceased) as soon as practicable thereafter.

                  (ii)     If the Participant has elected pursuant to one or
                           more Participation Agreements to receive payment of
                           all or a portion of his/her Deferral Account in
                           installments, the Company shall make three (3) annual
                           payments from the portion of the Participant's
                           Deferral Account subject to the election. Each
                           installment shall commence as soon as practicable
                           following the applicable Valuation Date.

                           (A)      The first installment payment shall be equal
                                    to 1/3 of the value of the portion of the
                                    Participant's Deferral Account subject to
                                    the election, determined as of the first
                                    Valuation Date.

                           (B)      Subsequent installments shall be equal to
                                    the value of the portion of the
                                    Participant's Deferral Account subject to
                                    the election, determined as of the
                                    applicable Valuation Date and multiplied by
                                    a fraction, the numerator of which is one
                                    (1) and the denominator of which is the
                                    number of remaining installments (including
                                    the installment being paid). The portion of
                                    the Participant's Deferral Account not
                                    distributed shall be credited through the
                                    subsequent installment date for dividends
                                    for the Phantom Share Unit portion and
                                    interest for the cash portion pursuant to
                                    Section 6.02.

         (c)      MEDIUM OF PAYMENT.
                  -----------------

                  (i)      Except to the extent the Board determines otherwise,
                           the portion of the Participant's Deferral Account
                           denominated in Phantom Share Units shall be paid in
                           shares of Common Stock. One (1) share of Common Stock
                           shall be paid for each whole Phantom Share Unit
                           contained therein, and any fractional Phantom Share
                           Units shall be paid in cash. The portion of the
                           Participant's Deferral Account denominated in cash
                           shall be paid in cash.

                  (ii)     In the event the Board determines that Phantom Share
                           Units shall be paid in cash, the cash value of such
                           units shall be determined by multiplying the number
                           of Phantom Share Units in the Participant's Deferral
                           Account as of the Determination Date or applicable
                           Valuation Date, as the case may be, by the Fair
                           Market Value of one share of Common Stock on such
                           date.

7.02.    VOLUNTARY EARLY WITHDRAWAL.
         -----------------------------

         (a)      Notwithstanding the provisions of Section 7.01 and any
                  Participation Agreement, a Participant shall be entitled to
                  elect to withdraw all of the balance in his/her Deferral
                  Account in accordance with this section by filing with the
                  Board such form, in accordance with such procedures, as

                                       7
<PAGE>

                  the Board shall determine from time to time. As soon as
                  practicable after receipt of such form by the Board, the
                  Company shall pay an amount equal to ninety (90%) percent of
                  the balance in such Participant's Deferral Account as of the
                  date such election is filed to the Participant in a lump sum
                  in cash or shares of Common Stock, as determined by the Board
                  in its sole discretion, with respect to the portion of the
                  Participant's Deferral Account denominated in Phantom Share
                  Units, and in cash with respect to the portion of the
                  Participant's Deferral Account denominated in cash, and the
                  Participant shall forfeit the remainder of such Deferral
                  Account. In the event the Board determines that Phantom Share
                  Units shall be paid in cash, the cash value of such units
                  shall be determined in accordance with Section 7.01(b)(ii)
                  herein.

         (b)      All Participation Agreements previously filed by a Participant
                  who elects to make a withdrawal under this Section shall be
                  null and void after such election is filed (including without
                  limitation Participation Agreements with respect to Plan Years
                  that have not yet been completed), and such a Participant
                  shall not be eligible to participate in the Plan until at
                  least one (1) full Plan Year has expired since the election to
                  withdraw was filed.

7.03.    WITHHOLDING OF TAXES.
         -----------------------

         Notwithstanding any other provision of the Plan, the Company shall
         withhold from payments made hereunder any amounts required to be so
         withheld by any applicable law, regulation, or tax treaty.

                                 ARTICLE VIII.
                             BENEFICIARY DESIGNATION

8.01.    BENEFICIARY DESIGNATION.
         --------------------------

         Each Participant shall have the right, at any time, to designate any
         person, persons or entity as his Beneficiary or Beneficiaries. A
         Beneficiary designation shall be made, and may be amended, by the
         Participant by filing a written designation with the Board, on such
         form and in accordance with such procedures as the Board shall
         establish from time to time.

8.02.    NO BENEFICIARY DESIGNATION.
         -----------------------------

         If a Participant fails to designate a Beneficiary as provided above, or
         if all designated Beneficiaries predecease the Participant, then the
         Participant's Beneficiary shall be deemed to be the Participant's
         estate.

                                       8
<PAGE>

                                  ARTICLE IX.
                 AMENDMENT, SUSPENSION, AND TERMINATION OF PLAN

The Board may at any time amend, suspend, or terminate the Plan in whole or in
part, provided, however, that no such amendment, suspension, or termination
shall adversely affect the rights of any Participant or Beneficiary under the
Plan unless consented to in writing by such Participant or, in the event the
Participant is deceased, the Beneficiary.

                                   ARTICLE X.
                                  MISCELLANEOUS

10.01.   UNFUNDED PLAN.
         ----------------

         The Plan is intended to be an unfunded plan benefiting persons who are
         not employees of the Company or any of its subsidiaries. The Plan is
         not subject to the Employee Retirement Income Security Act of 1974, as
         amended. All payments pursuant to the Plan shall be made from the
         general funds of the Company and no special or separate fund shall be
         established or other segregation of assets made to assure payment. No
         Participant or other person shall have under any circumstances any
         interest in any particular property or assets of the Company as a
         result of participating in the Plan. Notwithstanding the foregoing, the
         Company may (but shall not be obligated to) create one or more grantor
         trusts, the assets of which are subject to the claims of the Company's
         creditors, to assist it in accumulating funds to pay its obligations
         under the Plan.

10.02.   NONASSIGNABILITY.
         -------------------

         Except as specifically set forth in the Plan with respect to the
         designation of Beneficiaries, neither a Participant nor any other
         person shall have any right to commute, sell, assign, transfer, pledge,
         anticipate, mortgage or otherwise encumber, transfer, hypothecate or
         convey in advance of actual receipt the amounts, if any, payable
         hereunder, or any part thereof, which are, and all rights to which are,
         expressly declared to be unassignable and non-transferable. No part of
         the amounts payable shall, prior to actual payment, be subject to
         seizure or sequestration for the payment of any debts, judgments,
         alimony or separate maintenance owed by a Participant or any other
         person, nor be transferable by operation of law in the event of a
         Participant's or any other person's bankruptcy or insolvency.

10.03.   VALIDITY AND SEVERABILITY.
         ----------------------------

         The invalidity or unenforceability of any provision of the Plan shall
         not affect the validity or enforceability of any other provision of the
         Plan, which shall remain in full force and effect, and any prohibition
         or unenforceability in any jurisdiction

                                       9
<PAGE>

         shall not invalidate or render unenforceable such provision in any
         other jurisdiction.

10.04.   GOVERNING LAW.
         ---------------

         The validity, interpretation, construction and performance of the Plan
         shall in all respects be governed by and construed under the laws of
         the Islands of Bermuda, without reference to principles of conflict of
         law.

10.05.   STATUS OF PARTICIPANTS.
         -------------------------

         The Plan does not constitute a contract of employment or impose on the
         Participant or the Company or any of its subsidiaries any obligation
         for the Participant to remain a Non-Employee Director.

10.06.   UNDERLYING INCENTIVE PLANS AND PROGRAMS.
         ------------------------------------------

         Nothing in the Plan shall prevent the Company or its subsidiaries from
         modifying, amending or terminating any plan, policy or program pursuant
         to which Fees are paid to Non-Employee Directors.

10.07.   SUCCESSORS.
         -------------

         The Company shall require any successor (whether direct or indirect, by
         purchase, merger, share exchange, reorganization, recapitalization,
         amalgamation, consolidation, or otherwise) to all or substantially all
         of its business or assets to expressly assume and agree to perform
         under the Plan in the same manner and to the same extent that it would
         be required to perform if no such succession had taken place. As used
         in the Plan, the term "Company" shall mean any successor that expressly
         assumes and agrees to perform the Plan, which otherwise becomes bound
         by all the terms and provisions of the Plan by operation of law, or any
         other entity which expressly assumes the obligations under, and agrees
         to administer, the Plan, as determined by the Committee in its sole
         discretion.

                                       10

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