Axis Capital Holdings Limited · NYSE:AXS
Axis Capital — Raymond James 35th Annual Institutional Investors Conference (March 2014)
19 slides from Axis Capital's conference presentation, Mar 4, 2014
Slide 1: AXIS Capital
Exhibit 99.1 AXIS Capital Raymond James 35th Annual Institutional Investors Conference Orlando, FL Albert Benchimol, President & CEO March 4, 2014
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements in this presentation that are not historical facts, including statements regarding our estimates, beliefs, expectations, intentions, strategies or projections, may be “forward-looking statements” within the meaning of the U.S. federal securities laws, including the P
Slide 3: AXIS Capital: Investment Highlights
AXIS Capital: Investment Highlights • AXIS provides a broad range of risk transfer products and services, meaningful capacity and unquestioned financial strength • Hybrid (Re)insurer with Strategic Flexibility o AXIS Re: Diversified global reinsurer with 2013 GWP of $2.1bn o AXIS Insurance: Global s
Slide 4: Hybrid (Re)insurer with Strategic Flexibility
Hybrid (Re)insurer with Strategic Flexibility ($ in Billions) 2002-2013 Aggregate Consolidated AXIS Gross Premiums Written ‘02-’13 GPW $40.6 ‘02-’13 Underwriting Income $4.1 (1) ‘02-’13 Aggregate Combined Ratio 89% (2) AXIS Insurance AXIS Re ‘02-’13 GPW $22.8 ‘02-’13 GPW $17.8 ‘02-’13 Underwriting I
Slide 5: Strategic Global Presence
Strategic Global Presence Regional Employees Service Hubs North America 787 Europe(1) 293 Bermuda 73 Far East 71 Total 1,224 • 29 offices on 5 continents • Risk-bearing platforms in the U.S., Bermuda and Europe, with international branches 5 (1) Includes employees in Sao Paulo branch of AXIS Re.
Slide 6: AXIS Insurance: Diversified Global Specialist Insurer
AXIS Insurance: Diversified Global Specialist Insurer 2002-2013 Financial Results ($ in Billions) 2013 Gross Premiums Written by Line $2.6 Billion, 54% of Consolidated GPW Total Gross Premiums Written $22.8 Total Underwriting Income $2.2 Aggregate Combined Ratio 84% Gross Premiums Written ($ in Mill
Slide 7: AXIS Insurance's Underwriting Has Outperformed Specialty Peers
AXIS Insurance’s Underwriting Has Outperformed Specialty Peers Underpinned by Peer Review Since Inception 2003 – 2013 Aggregate Underwriting Profitability (1) US Specialty Bermuda “Scale” Specialty Bermuda Specialty ex. “Scale” Source: Company documents. Note: US Specialty includes Alleghany, Americ
Slide 8: Momentum in Global AXIS A&H Initiative
Momentum in Global AXIS A&H Initiative Developing a global hybrid Accident & Health Insurer and Reinsurer New Reinsurance Wholesale Insurance New Reinsurance Products Distribution on the Continent Products HealthCare US UK/EUROPE ASIA Wholesale New Reinsurance MIDDLE EAST New Countries Distribution
Slide 9: AXIS Re: Diversified Global Reinsurer
AXIS Re: Diversified Global Reinsurer 2002-2013 Financial Results ($ in Billions) 2013 Gross Premiums Written by Line $2.1 Billion, 46% of Consolidated GPW Total Gross Premiums Written $17.8 Total Underwriting Income $1.9 Aggregate Combined Ratio 88% Gross Premiums Written ($ in Millions) 9
Slide 10: AXIS Re's Underwriting Outperformed Diversified Peers
AXIS Re’s Underwriting Outperformed Diversified Peers 2003 – 2013 Aggregate Underwriting Profitability (1) European Reinsurers in Top 10 Top 10 Reinsurers > $1.5Bn NPW (ex. European) Reinsurers < $1.5Bn NPW Property Catastrophe Source: Company documents. Note: “Top 10” Reinsurers have >$1.5 Bn NPW i
Slide 11: Delivered Excellent Shareholder Value Creation
Delivered Excellent Shareholder Value Creation $60.00 $53.68 $49.83 $50.00 2002 - 2013 CAGR = 13.1% $7.88 $44.33 $43.97 $6.86 $4.96 $40.00 $5.89 $37.75 $4.10 $31.33 $30.00 $2.535 $29.08 $25.31 $3.29 $1.855 $45.80 $19.93 $19.58 $42.97 $20.00 $39.37 $16.88 $38.08 $0.64 $1.24 $33.65 $13.90 $0.14 $28.79
Slide 12: Conservative Reserving
Conservative Reserving Net Unpaid Loss Reserves as of 12/31/2013 Net Reserves $2,507M $2,824M $2,351M 2002-2013 Aggregate Historical Reserve Development Reserve Development ($ in Millions) = $3,010M 12 Note: Short/Medium Tail Classes include Property and Other, Marine, Aviation, Credit & Political R
Slide 13: High-Quality, Liquid Investment Portfolio
High-Quality, Liquid Investment Portfolio Current investment portfolio is well-positioned to cope with today’s risks, maximizes flexibility and maintains high quality Cash and Investments(1) Fixed Maturity Credit Quality(1) $14.8 Bn $12.0 Bn Book Yield of Fixed Maturities 2.5% Yield to Maturity of F
Slide 14: Strong Capitalization with Prudent Leverage
Strong Capitalization with Prudent Leverage Senior Debt + Preferred / 20.1% 16.7% 22.6% 23.2% 22.1% 23.8% Total Capital (1) Capital Source Principal Amount Term To Maturity (2) Maturity or Call-Date Coupon Senior Notes $500 Million 0.8 Years December 1, 2014 5.750% Senior Notes $500 Million 6.3 Year
Slide 15: Significant Return of Capital to Shareholders
Significant Return of Capital to Shareholders • Stable capital levels • Increasing capital efficiency supporting business expansion ($ in Millions) $1,000 ‘08 – ’13 Dividends + Share Buybacks = 104% of ‘08 – ’13 $818 Aggregate Operating Income (1) $800 $108 $590 $600 $118 $438 $397 $400 $120 $106 $7
Slide 16: Strategic Initiatives to Achieve Goals
Strategic Initiatives to Achieve Goals Invest in our people and culture • Underwriting talent which delivered superior underwriting results since inception • Successfully attracting and adding new top-tier underwriting talent Deliver diversified growth • Bring specialist underwriting to new target m
Slide 17: 2013 Progress on Strategic Initiatives
2013 Progress on Strategic Initiatives • GPW growth of 13%, including significant contribution from new, diversifying initiatives o Accident and Health unit o Global agriculture reinsurance line • New, diversifying initiatives in early stages o Lloyd’s presence o Re-entry into U.S. primary casualty
Slide 18: Environment Continues to Support Good Margins
Environment Continues to Support Good Margins AXIS Insurance Current Business Mix Rate Change Index 150 Marine & Energy Lines, 143 140 130 Property Lines, 120 120 110 AXIS Insurance Total, 103 100 Casualty Lines, 97 90 80 Professional lines, 85 70 60 Aviation & Terrorism, 51 50 40 30 2004 2005 2006
Slide 19: Question & Answer Session
Question & Answer Session