Axis Capital Holdings Limited · NYSE:AXS
Axis Capital — Q3 2022 Earnings Presentation
21 slides from Axis Capital's earnings presentation, Oct 27, 2022
Slide 1: Investor Presentation: Post 3Q22 Reported Results
Investor Presentation Post 3Q22 Reported Results
Slide 2: Safe Harbor Statement
Safe Harbor Statement CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical
Slide 3: Consistent Advancement of Strategy
INTRODUCTION & STRATEGY INSURANCE REINSURANCE GROUP ESG & CITIZENSHIP CONCLUSION Consistent Advancement of Strategy VISION: Global Leadership in Specialty Risks Targeting top-quintile profitability Commitment to underwriting excellence, being a destination for top caliber talent Franchise anchored i
Slide 4: Advanced leadership position as a specialty underwriter
INTRODUCTION & STRATEGY INSURANCE REINSURANCE GROUP ESG & CITIZENSHIP CONCLUSION Advanced leadership position as a specialty underwriter Building on the progress of prior years, 2022 was a key milestone year for AXIS in furthering its transformation into a leading specialty underwriter through these
Slide 5: A leading specialty insurer with a niche specialist reinsurance operation
INTRODUCTION & STRATEGY INSURANCE REINSURANCE GROUP ESG & CITIZENSHIP CONCLUSION A leading specialty insurer with a niche specialist reinsurance operation We provide our clients and distribution partners with a broad Total FY2021 GPW: range of risk transfer products and services, meaningful capacity
Slide 6: Where we are on our journey
TOMORROW LEADING SPECIALTY INSURER • $10B GPW • Recognized leader in specialty risk INTRODUCTION & STRATEGY INSURANCE REINSURANCE GROUP ESG & CITIZENSHIP CONCLUSION • Top quintile profitability • Top destination for specialized expertise Where we are on our journey TODAY TRANSFORMED INTO A SPECIALTY
Slide 7: Attractive specialty underwriter
INTRODUCTION & STRATEGY INSURANCE REINSURANCE GROUP ESG & CITIZENSHIP CONCLUSION Attractive specialty underwriter Group GPW Growth vs. Combined Ratio: As-reported vs. Continuing Lines(1) • The key announcements made in 2022 to advance AXIS’ leadership in specialty risks follow a multi- year strategy
Slide 8: AXIS Today: A leading specialty insurer with a specialty reinsurance business
INTRODUCTION & STRATEGY INSURANCE REINSURANCE GROUP ESG & CITIZENSHIP CONCLUSION AXIS Today: A leading specialty insurer with a specialty reinsurance business Strong market position Consistent margin Pricing momentum Attractive improvement valuation Average rate increase in The AXIS insurance portfo
Slide 9: Leading specialty insurance franchise
INTRODUCTION & STRATEGY INSURANCE REINSURANCE GROUP ESG & CITIZENSHIP CONCLUSION Leading specialty insurance franchise • Insurance has a well-diversified, attractive portfolio of global specialty business with strong, profitable results o AXIS YTD Insurance combined ratio is 91.2%, a 1.5 point impro
Slide 10: Accelerating insurance growth
INTRODUCTION & STRATEGY INSURANCE REINSURANCE GROUP ESG & CITIZENSHIP CONCLUSION Accelerating insurance growth Strong market positioning and underwriting talent have driven growth Insurance GPW Growth vs. Combined Ratio Insurance Segment GPW 110.4% +21.0% $1,600 ($ i n Mi l l i ons) $1,400 +16.0% $1
Slide 11: Specialty reinsurance operation
INTRODUCTION & STRATEGY INSURANCE REINSURANCE GROUP ESG & CITIZENSHIP CONCLUSION Specialty reinsurance operation • AXIS Re completed a multi-year repositioning strategy to becoming a specialty reinsurer o In June, AXIS Re completed its refocusing of its business to align with the overarching enterpr
Slide 12: Deliver consistent reinsurance results across all market cycles
INTRODUCTION & STRATEGY INSURANCE REINSURANCE GROUP ESG & CITIZENSHIP CONCLUSION Deliver consistent reinsurance results across all market cycles Reinsurance GPW Growth vs. Combined Ratio: As-reported vs. Continuing Lines(1) 103.8% 101.8% 101.2% 99.4% 99.0% 99.1% 99.0% 98.2% 96.5% 95.7% +6.7% +5.2% +
Slide 13: Pricing momentum continues
INTRODUCTION & STRATEGY INSURANCE REINSURANCE GROUP ESG & CITIZENSHIP CONCLUSION Pricing momentum continues Strong Insurance rate increases continue and remain ahead of net loss trend Cumulative Insurance Rate Improvements1 • 20th consecutive quarter of rate increases 80% • Average rate increase of
Slide 14: Consistent execution delivers results
INTRODUCTION & STRATEGY INSURANCE REINSURANCE GROUP ESG & CITIZENSHIP CONCLUSION Consistent execution delivers results AXIS has positioned itself to excel in the current firming P&C market and the underwriting performance is producing more consistent and more profitable results • Attractive Margins
Slide 15: Balance sheet strength
INTRODUCTION & STRATEGY INSURANCE REINSURANCE GROUP ESG & CITIZENSHIP CONCLUSION Balance sheet strength Cash & Invested Assets Portfolio Mix as of September 30, 2022 Mortgage Loans 17.5 16.5 4.2% 16.1 16.0 15.7 15.6 $ Billions 15.0 15.0 Short-Term Investments Other 0.5% 12.5 Investments 6.2% Equitie
Slide 16: Focus areas to drive continued progress
INTRODUCTION & STRATEGY INSURANCE REINSURANCE GROUP ESG & CITIZENSHIP CONCLUSION Focus areas to drive continued progress IMPROVEMENT TARGETS2 VS. DELIVERING RESULTS FY21 KEY DRIVERS OF RECENT PROGRESS FY21 VS. FY20 • Strong positions in specialty, E&S, Lloyd’s markets Well positioned for profitable
Slide 17: Disciplined reduction of cat exposure across entire curve
INTRODUCTION & STRATEGY INSURANCE REINSURANCE GROUP ESG & CITIZENSHIP CONCLUSION Disciplined reduction of cat exposure across entire curve Portfolio changes driving PML reductions across the curve: • ~25% reductions in the property/cat book at 1/1/22 are followed at 7/1 with the beginning of the run
Slide 18: Attractive valuation
INTRODUCTION & STRATEGY INSURANCE REINSURANCE GROUP ESG & CITIZENSHIP CONCLUSION Attractive valuation 1) Select peer group includes ARGO, AIG, HIG, RE, CB, TRV, MKL and WRB 2) Price-to-Book Ratio is calculated using Company reported Sept 30th book values (using Q2 2022 for ARGO) and the stock price
Slide 19: Furthering our commitment to ESG
INTRODUCTION & STRATEGY INSURANCE REINSURANCE GROUP ESG & CITIZENSHIP CONCLUSION Furthering our commitment to ESG In 2018, AXIS launched a formal program to address Environmental, Social and Governance (“ESG”) factors, RECENT AWARDS AND with environment and diversity, equity & inclusion (DEI) as our
Slide 20: Conclusion
INTRODUCTION & STRATEGY INSURANCE REINSURANCE GROUP ESG & CITIZENSHIP CONCLUSION Conclusion • AXIS is successfully executing a multi-year transformation positioning itself to be a high-performing specialty underwriter with superior profitability and lower volatility • Underwriting margin continues t
Slide 21: Investor inquires
Investor inquires Miranda Hunter Head of Investor Relations 441 405 2635 miranda.hunter@axiscapital.com 21
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