Axis Capital Holdings Limited · NYSE:AXS
Axis Capital — Investor Presentation (February 2021)
23 slides from Axis Capital's investor presentation, Feb 10, 2021
Slide 1: Investor Meetings Post - 4Q20
Investor Meetings Post - 4Q20
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 27 A of the Securities Act of 1933 and section 21 E of the Securities Exchange Act of 1934 . All statements, other than statements of his
Slide 3: Vision: Global Leadership in Specialty Risks
Vision: Global Leadership in Specialty Risks Targeting top - quintile profitability with industry average volatility Hybrid model – Insurance & Reinsurance Franchise anchored in leadership positions in key markets and distribution relationships Strong relationships with distributors & clients based
Slide 4: AXIS at a Glance
Professional Lines Property Liability Marine A&H/Other Aviation Credit & Political Risk Terrorism AXIS at a Glance 1 Exchange / Ticker NYSE / “AXS” Market Capitalization 1 $4.2 Billion Gross Premium Written $6.8 Billion Leading Global Underwriter - E&S P&C - Lloyd’s - U.S. Professional Lines - Globa
Slide 5: AXIS Responds to the Pandemic
• 100% of staff has the ability to work remotely with no loss in production or capabilities; Engagement scores have improved • Utilizing remote collaboration and meeting technology to keep teams connected, informed and safe; provided a stipend for office and technology equipment. • Allowing for flex
Slide 6: AXIS: A Profitable Growth Engine
AXIS : A Profitable Growth Engine • Margin Improvement: Major repositioning of the portfolio over the past 3 years should continue to drive improving results • Attractive Market Position: Over 85% of AXIS’ insurance portfolio is in the markets seeing strong rate improvements including E&S Property,
Slide 7: Pricing momentum expected to continue into 2021
Insurance: • Rates were up 18% in 4Q20 overall vs. 16% in 3Q20 vs. 15% in 2Q20 and 10% in 1Q20 • Average rate increases of ~15% for full - year 2020 • Rate increases seen in almost every line of business and achieving double - digit rate increases in numerous classes of business. AXIS plans to grow
Slide 8: On the Front Foot for Profitable Insurance Growth
Profitable Growth Accelerating • Growing core lines of business where rates are adequate, and AXIS has the underwriting expertise, market relevance, and platf orm to drive sustainable profitable growth • Growth in lines such as Excess Casualty, Renewable Energy, A&H and Marine continue to provide st
Slide 9: Insurance Growth: Distribution Benefiting Results
SPECIALTY/WHOLESALE BIG 3 OTHER GWP Growth Rate Change Acquisition Cost Accelerating Profitable Growth • The specialty/wholesale channel is where AXIS has been accelerating growth the most and makes up ~40% of total premium volume year - to - date. This channel has been providing the strongest rate
Slide 10: Strategic Reinsurance Growth: Where it Matters
-80% -70% -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% Agriculture Engineering Catastrophe Property Credit & Surety A&H Motor Marine & Aviation Liability Professional Lines Reinsurance GPW Growth FY2020 vs FY2019 Strategic Reinsurance Growth: Where it Matters AXIS has been focused on profitable grow
Slide 11: Executing the Strategy
Executing the Strategy 10 Group Ex - PGAAP Ex - Cat AY Combined Ratio 1 (1) Group Ex - PGAAP Ex - Cat AY Combined Ratio is a non - GAAP financial measure as defined in Regulation G. Further information regardi ng ex - PGAAP data (including a reconciliation to the most comparable GAAP financial measu
Slide 12: Group: Underwriting Actions Drive Improving Performance
Group: Underwriting Actions Drive Improving Performance 11 Loss ratio improvement driven by: • Enhanced pricing, improved terms/conditions and lower limits drive improved loss ratios coupled with greater stability • Portfolio construction coupled with improved mix of business 61.7% 60.6% 57.7% 55% 5
Slide 13: Insurance Segment: Underlying Loss Ratio Improvement
57.7% 55.9% 54.7% 54.4% 3.6% 2.7% 2.3% 0.7% 44% 48% 52% 56% 60% 64% FY2017 FY2018 FY2019 FY2020 Continuing Lines Ex-Cat AY Loss Ratio Exited Lines Impact 58.5% 57.0% 55.1% Insurance Segment: Underlying Loss Ratio Improvement 12 Portfolio Changes Driving Improving Loss Ratios: • 6.2 points of underly
Slide 14: Reinsurance Segment: Underlying Loss Ratio Improvement
65.6% 64.8% 64.0% 60.6% 58% 60% 62% 64% 66% 68% FY2017 FY2018 FY2019 FY2020 Ex-cat AY Loss Ratio Reinsurance Segment: Underlying Loss Ratio Improvement 13 Portfolio Changes Driving Improving Loss Ratios: • 5.0 points of underlying margin improvement since YE2017 • Pricing momentum continued into 1/1
Slide 15: Executing Expense Management Initiatives
Executing Expense Management Initiatives 14 Focused Expense Management: • Achieved our operational and integration savings initiative ahead of targeted timeframe • Tactically managing 2020 expenses lower due to the economic uncertainties presented by the pandemic • Systematically leveraging data and
Slide 16: Strategic Capital Partners Drive Fee Income
$912 $1,003 $778 $489 $304 $105 $49 2020 2019 2018 2017 2016 2015 2014 Strategic Capital Partners Drive Fee Income Strategic Capital Partners Fee Income (1) Strategic Capital Partners AUM Growth Premium Ceded to Strategic Capital Partners 2 ($ in millions) ($ in millions) 15 $6.3 $8.5 $21.8 $36.0 $4
Slide 17: Interest Rates Remain a Headwind to Investment Income
$438.5 $478.6 $349.6 $0 $200 $400 $600 FY2018 FY2019 FY2020 Net Investment Income Interest Rates Remain a Headwind to Investment Income 16 • With the 10 - Year US Treasury Note yield down ~35% 1 since the beginning of 2020 due to the COVID - 19 pandemic investment income faces a headwind • The curre
Slide 18: Key Drivers of Recent Progress
Key Drivers of Recent Progress 1 Cat Loss Ratio: Improved 2.7 points Acquisition Ratio: 21.3% in FY2020 G&A Expense Ratio: 13.2% in FY2020 GPW Growth Achieving Significant Progress Across the Platform In the past five years, AXIS has implemented significant change to its platform and portfolios 17 I
Slide 19: Corporate Social Responsibility at AXIS
Corporate Social Responsibility at AXIS Philanthropy – supporting charitable causes that align with our values; Donated $1 million to COVID - 19 relief effort Diversity & Inclusion – implementing practices to enhance D&I within our Company as well as the larger profession Corporate Purpose: Living o
Slide 20: Our Purpose, Strategic Vision and Values
Our Purpose, Strategic Vision and Values 19 Our Purpose ( who we are ) Our Strategic Vision ( what we do ) Our Values ( how we do it ) We are One AXIS. We build positive energy and a collaborative environment where diversity of teams and perspectives is respected and valued. We insist on a culture o
Slide 21: Conclusion
Conclusion AXIS is a leading specialty insurer and global reinsurer Strong franchise with superior position in chosen specialty markets that are exhibiting the most attractive opportunities Completed repositioning of the portfolio. Pace of underwriting margin improvement should continue given ongoin
Slide 22: Appendix I
21 Appendix I Note : On October 2 , 2017 , we acquired Novae . At the acquisition date, we identified VOBA which represents the present value of the expected underwriting profit within policies that were in - force at the closing date of the transaction . In addition, the allocation of the acquisiti
Slide 23: AXIS
AXIS
AXIS Capital Holdings — Investor Presentation (February 2021) on 6ix