Axis Capital Holdings Limited · NYSE:AXS
Axis Capital — Q4 2022 Earnings Presentation
25 slides from Axis Capital's earnings presentation, Jan 26, 2023
Slide 1: Investor Presentation 2022 Fourth Quarter
Investor Presentation 2022 Fourth Quarter AXIS Capital
Slide 2: Safe Harbor Statement
Safe Harbor Statement CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This document 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 fac
Slide 3: AXIS Overview & Financial Highlights
AXIS Overview & Financial Highlights AXIS Capital
Slide 4: Advancing Global Leadership in Specialty Risk
Advancing Global Leadership in Specialty Risk AXIS is continuing to evolve our business to increase profitability, lower volatility, and strengthen the portfolio, establishing a strong position in the fastest growing specialty markets AXIS Strengths Diversified Risk Strong Reputation for Leveraging
Slide 5: Long-Term Financial Strategy
Long-Term Financial Strategy Investing in Sustained Momentum Continue to build on our momentum, investing in growth opportunities to drive further profitable growth and enhance value we provide to our customers and shareholders Increase Efficiency & Expense Management Ongoing focus on expense contro
Slide 6: AXIS at a Glance
AXIS at a Glance Market ROACE Gross Premiums Mix of Business by GPW 4.3% Capitalization(1) Written(3) $5.3 Operating ROACE(2) $8.2 Billion 11.1% Billion “AXS” Shares Listed Represented in More Than 18 2,000+ on the NYSE Stock Exchange Since 2003 Offices Worldwide Employees Insurance 68.0% Reinsuranc
Slide 7: The AXIS Journey
The AXIS Journey AXIS today is a high-performing specialty insurance underwriter vastly different from the Company it was five years ago 2023 and Beyond Recognized specialty 2022 AXIS Re Transformation Exit from insurance leader with a resilient and 2023 Reinsurance Catastrophe and Property compleme
Slide 8: Our Business Today
Our Business Today Strong Market Consistent Margin Pricing Momentum Invested in Positioned for Position Improvement Growth Areas Profitable Growth • The AXIS portfolio is • Disciplined portfolio • Across our book, rate • Launched AXIS • Reduced volatility to well-positioned in management has increas
Slide 9: Diversified Specialty Portfolio
Diversified Specialty Portfolio Total Insurance 3.8% 4.6% Gross Premiums Written: $8.2 billion FY 2022 Gross Premiums Written: $5.6 billion FY 2022 23.7% 11.7% Professional Lines Property Liability 11.5% Cyber Marine and Aviation 24.3% Accident and Health 20.4% Credit and Political Risk 68.0% 32.0%
Slide 10: Strengthening Underwriting Performance
Strengthening Underwriting Performance Margin improvements driven by disciplined underwriting and ongoing focus on improving G&A ratios GPW vs Combined Ratio ($’s in millions) As reported GPW Continuing lines GPW As reported combined ratio Continuing lines combined ratio 109.6% 110% $9,000 $8,215 10
Slide 11: Disciplined Reduction of Catastrophe Exposure
Disciplined Reduction of Catastrophe Exposure Exit from Reinsurance Catastrophe and Property business in 2022 has continued to lower earnings volatility experienced in recent years as part of overall approach to reduce exposure to catastrophe risk Southeast Hurricane PML Reductions(1) ($’s in millio
Slide 12: Balanced and Resilient Investment Portfolio
Balanced and Resilient Investment Portfolio Well diversified portfolio invested primarily in Fixed Maturities 77.0% highly rated bonds Cash and Cash equivalents 7.5% • Total cash and invested assets(1): $15.6 billion • Average fixed maturities portfolio rating(1): AA- Other Investments 6.4% • Durati
Slide 13: Connecting Our Business Purpose to Corporate Citizenship
Connecting Our Business Purpose to Corporate Citizenship We help people and organizations around the world to manage risk, giving them the confidence to pursue their goals and ambitions. Our Corporate Citizenship program is one RECENT AWARDS AND of many ways we advance this purpose RECOGNITIONS Fost
Slide 14: Well Positioned for 2023 and Beyond
Well Positioned for 2023 and Beyond AXIS is executing a multi-year transformation positioning itself as a leading specialty underwriter in our chosen markets Market positioning, size Focused on specialty Underwriting margin and scale to compete insurance lines with driven by strong core effectively
Slide 15: Reportable Segments
Reportable Segments AXIS Capital
Slide 16: Insurance Overview
Insurance Overview By many measures, 2022 was among the strongest years in the history of our specialty insurance business We generated record premium production with $5.6 billion of gross premiums in 2022, making up 68.0% of our consolidated writings. Well-diversified, attractive portfolio of globa
Slide 17: Insurance Financial Highlights
Insurance Financial Highlights Insurance Fourth Quarter 2022 Gross Premiums Written: $5.6 billion FY 2022 Operating highlights, and changes from prior period, for the quarter ended December 31, 2022, include the following: Credit and Accident and Political Risk • Gross premiums written: $1,471 milli
Slide 18: Accelerating Insurance Growth
Accelerating Insurance Growth Insurance Segment GPW vs Combined Ratio ($’s in millions) GPW $6,000 Combined Ratio 115% $5,586 $5,500 110% 110.4% 105% $5,000 $4,863 100% $4,500 98.1% 95% $4,018 $4,000 $3,676 91.6% 90% $3,500 89.6% 85% $3,000 80% FY2019 FY2020 FY2021 FY2022 Growth Underpinned • Growin
Slide 19: Reinsurance Overview
Reinsurance Overview In 2022 AXIS Re completed a multi-year transformation to reposition itself as a resilient specialty reinsurance business Refocused as specialty reinsurer • Exited from Catastrophe and Property lines to further reduce volatility leading to a decrease in topline gross premiums wri
Slide 20: Reinsurance Financial Highlights
Reinsurance Financial Highlights Reinsurance Fourth Quarter 2022 Gross Premiums Written: $2.6 billion FY 2022(1) Operating highlights, and changes from prior period, for the Run-off quarter ended December 31, 2022, include the following: Lines • Gross premiums written: $288 million, increase of 16.2
Slide 21: Complementing our Specialty Insurance Book
Complementing our Specialty Insurance Book Reinsurance Segment GPW vs Combined Ratio ($’s in millions) As Reported GPW Continuing Lines GPW As Reported Combined Ratio Continuing Lines Combined Ratio 110% $4,000 $3,224 105% $2,809 $2,823 $3,000 $2,629 103.8% 100.2% 100% 101.2% $2,000 99.4% 99.0% 99.1
Slide 22: Appendix
Appendix AXIS Capital fal AXIS
Slide 23: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation Operating Income and Operating Return on Average Common Equity 23
Slide 24: Rationale for the use of Non-GAAP Financial Measures
Rationale for the use of Non-GAAP Financial 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
Slide 25: Investor Inquires
Investor Inquires Miranda Hunter Head of Investor Relations 441 405 2635 investorrelations@axiscapital.com 25
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