Axis Capital Holdings Limited · NYSE:AXS
Axis Capital — Q4 2023 Earnings Presentation
27 slides from Axis Capital's earnings presentation, Feb 1, 2024
Slide 1: Investor Presentation Fourth Quarter 2023
Investor Presentation 2023 Fourth Quarter AXIS Capital 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Insurance Risk Credit and Market Risk • the cyclical nature of the insurance and reinsurance • the inability to purchase reinsurance or collect This document contains forward-looking statements within the meaning business lea
Slide 3: Overview & Financial Highlights
Overview & Financial Highlights 3
Slide 4: AXIS at a Glance
AXIS at a Glance Delivering on our strategy Market Capitalization(1) FY 2023 ROACE Mix of Business by GPW(3) to elevate AXIS as a 7.9% Specialty Underwriting $5.4 Billion FY 2023 Operating ROACE(2) 27% Leader 11.0% $8.4 Billion 73% “AXS” Shares Listed on Represented in the New York Stock Exchange Si
Slide 5: Focused on Driving Consistent, Profitable Returns
Focused on Driving Consistent, Profitable Returns Leveraging our strengths to fully harness the potential of our platform Broad Underwriting Specialty Deep Customer Strong Global Excellence Products and Relationships Platform Services GROWTH IN PROFITABILITY AND BOOK VALUE PER SHARE 5
Slide 6: Strong Platforms Operating in the Largest Specialty Markets
Strong Platforms Operating in the Largest Specialty Markets Broadly diversified portfolio designed to deliver across market cycles GPW BY LINE OF BUSINESS(1) INSURANCE For the 12 months ended 12/31/2023 Our Insurance segment includes business Agriculture Reinsurance written out of North America with
Slide 7: Taking a Fresh Look
Taking a Fresh Look Actions underway to drive performance excellence and further enhance how we operate and go to market AREAS OF FOCUS SELECT INITIATIVES Agility and Speed to ✓ Simplifying the operating structure to take advantage of Market market dynamics allowing for quicker decision-making and i
Slide 8: Adding Talent to Propel Our Strategic Execution
Adding Talent to Propel Our Strategic Execution Seasoned leadership in specialty insurance and reinsurance organized to deliver value Vincent C. Tizzio President and CEO Joined January 2022; Appointed CEO May 2023 Pete Vogt Conrad Brooks Dan Draper Chief Financial Officer Chief Legal and Chief Under
Slide 9: Acting on Growth Opportunities
Acting on Growth Opportunities Achieving record growth by continuing to seize opportunities in attractive markets 2023 PRODUCTION ✓ Gross Premiums Written grew to $8.4 billion, representing the highest annual production in company history HIGHLIGHTS ✓ Insurance segment generated record quarterly pro
Slide 10: Disciplined Reduction of Catastrophe Exposure
Disciplined Reduction of Catastrophe Exposure Exit from Reinsurance Catastrophe and Property business in 2022 has lowered earnings volatility experienced in recent years SOUTHEAST HURRICANE PML REDUCTIONS(1) 1-in-250 1-in-250 as % of total common shareholders’ equity 1-in-100 1-in-100 as % of total
Slide 11: Positioned to Deliver Superior Value
Positioned to Deliver Superior Value AXIS has strong positive momentum to deliver sustained profitable growth and increased shareholder value ✓ Disciplined portfolio management designed to deliver underwriting profitability across market cycles Underwriting Excellence ✓ Leaning into favorable indust
Slide 12: Sound Financial Footing
Sound Financial Footing 12
Slide 13: Well Capitalized Balance Sheet
Well Capitalized Balance Sheet Main priority for the use of capital today is to support key growth initiatives Q4’23 BRIDGE TO TOTAL CAPITAL DISCIPLINED CAPITAL ALLOCATION ($ in millions) $1,313.7 $6,576.9 • Our top priority is to allocate capital to support profitable growth in our specialty $550.0
Slide 14: Diversified Investment Portfolio
Diversified Investment Portfolio Conservative investment portfolio earning attractive market yields WELL DIVERSIFIED PORTFOLIO INVESTED INVESTMENT PORTFOLIO BY ASSET CLASS(2) PRIMARY IN HIGHLY RATED BONDS (% of total cash and investments) • $16.7 billion total cash and invested assets, of which 85.5
Slide 15: Reportable Segments
Reportable Segments 15
Slide 16: Insurance Overview
Insurance Overview INSURANCE GPW BY LINE OF BUSINESS SEGMENT HIGHLIGHTS For the 12 months ended 12/31/2023 • Diversified portfolio of global specialty business positioned to deliver consistent underwriting profit, minimizing volatility Accident and Credit Health • Strong leadership positions in our
Slide 17: Accelerating Specialty Insurance Growth
Accelerating Specialty Insurance Growth INSURANCE GPW AND COMBINED RATIO ($ in millions) $6,141 125.0% $5,586 Segment Combined Ratio $4,863 $4,018 110.0% 110.4% Includes 5.1% 92.5% of prior year 95.0% 89.6% development 91.6% 80.0% (1) FY2020 FY2021 FY2022 FY2023 GROWTH UNDERPINNED • Leaning into spe
Slide 18: Reinsurance Overview
Reinsurance Overview REINSURANCE GPW BY LINE OF BUSINESS SEGMENT HIGHLIGHTS For the 12 months ended 12/31/2023 Marine and • AXIS Re is a specialty reinsurer focused on Aviation Runoff Lines profitability in our selected lines of business Agriculture 3% 2% • Focused on selective growth leaning into L
Slide 19: Complementing Our Specialty Insurance Book
Complementing Our Specialty Insurance Book REINSURANCE GPW AND COMBINED RATIO ($ in millions) 125.0% Includes 14.6% of prior year development $2,809 $2,823 112.2% (19.2% ex-Property Cat Re) (1) $2,630 110.0% 103.8% $2,216 99.0% 100.2% 107.6% Property-Cat Re(1) All other lines 95.0% 99.4% 99.1% Ex-Pr
Slide 20: Exemplary Culture & Corporate Citizenship
Exemplary Culture & Corporate Citizenship 20
Slide 21: Connecting Our Business Purpose to Corporate Citizenship
Connecting Our Business Purpose to Corporate Citizenship FOSTERING BELONGING PROTECTING THE PLANET RECENT AWARDS Diversity, Equity & Inclusion (DEI) Environment and Sustainability AND RECOGNITIONS Implementing DEI plan with five key Commitment to being a leading action areas: internal education, pro
Slide 22: Appendix
Appendix 22
Slide 23: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation Operating Income and Annualized Operating Return on Average Common Equity a. Tax expense (benefit) of ($10) million and ($36) million for the years ended December 31, 2023 and 2022, respectively. Tax impact is estimated by applying the statutory rates of ap
Slide 24: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation Consolidated Underwriting Income For the 12 months ended December 31, 2022 and 2023 [a] [b] a. Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to general and adminis
Slide 25: Rationale for use of Non-GAAP Measures
Rationale for use of Non-GAAP Measures We present our results of operations in a way we believe will be meaningful and useful to investors, analysts, rating agencies and others who use our financial information to evaluate our performance. Some of the measurements we use are considered non-GAAP fina
Slide 26: Rationale for use of Non-GAAP Measures
Rationale for use of Non-GAAP Measures Underwriting-Related General and Administrative Expenses Underwriting-related general and administrative expenses include those general and administrative expenses that are incremental and/or directly attributable to our underwriting operations. While this meas
Slide 27: Investor Inquiries
Investor Inquiries investorrelations@axiscapital.com 27 14
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