Axis Capital Holdings Limited · NYSE:AXS
Axis Capital — JP Morgan 2008 Insurance Conference
16 slides from Axis Capital's conference presentation, Mar 27, 2008
Slide 1: AXIS Capital - Built for Challenging Markets
Exhibit 99.1 AXIS Capital- Built for Challenging Markets JP Morgan 2008 Insurance Conference New York, NY David Greenfield, CFO, AXIS Capital March 27, 2008
Slide 2: Safe Harbor Disclosure
Safe Harbor Disclosure Cautionary Statement Regarding Forward-looking Statements 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 m
Slide 3: AXIS: Six Years of Outperformance
AXIS: Six Years of Outperformance Common equity of $4.7 Bn and total capital of $5.7 Bn Over 725 employees in Bermuda, Europe, U.S. and Australasia Ratings of A (S&P - positive), A2 (Moody’s - stable) and A (AM Best - stable) $3.6 billion in gross premiums written (GPW) in 2007 GPW by Segment Gross
Slide 4: AXIS: Six Years of Outperformance - Quality, Sustainability and Profitability
AXIS: Six Years of Outperformance Quality, Sustainability and Profitability Combined Ratio 101.8% 100% 84.4% 77.3% 75.3% AVERAGE = 75% 70.4% 73.6% 80.5% 80.3% 61.4% 52.9% 50% 42.7% 51.1% 50.1% 25% 27.7% 22.5% 23.0% 24.4% 25.2% 21.5% 0% 2002 2003 2004 2005 2006 2007 Total Expense Ratio Loss Ratio Net
Slide 5: Full Year 2007 Highlights
Full Year 2007 Highlights Net income was a record $1.1 billion, or $6.41 per diluted common share Gross premiums written were stable at $3.6 billion Combined ratio was 75.3% Return on average common equity was 24.6% Diluted book value per share increased 23% to $28.79 at December 31, 2007 Returned o
Slide 6: Diversified Strategic Footprint
Diversified Strategic Footprint Selective diversification by product and geography with well-timed entry 2002 2003 2004 2005 2006 2007 $1.1Bn $2.3Bn $3.0Bn $3.4Bn $3.6Bn $3.6Bn Bermuda U.S. excess & European Entry into London- surplus lines professional media liability market lines and U.S. small/mi
Slide 7: AXIS Insurance – Diversity and Specialization
AXIS Insurance – Diversity and Specialization • Diverse and strong distribution driving increased submissions 2007 GPW by Line of Business Total GPW = $2,039 M • Global platform and strategic presence Other 1% • Cycle management Liability 12% Property 32% throughout specialty lines Professional • In
Slide 8: AXIS Re – Global Specialization
AXIS Re – Global Specialization • Broad portfolio on many dimensions 2007 GPW by Line of Business • Strong balance sheet featuring Total GPW = $1,551 M conservative reserving practices Other 7% • Primarily non-proportional Liability 16% Catastrophe 30% • Sought-after lead market (technical expertise
Slide 9: Risk Management Strategies
Risk Management Strategies Selective Diversification Defined Tolerance Levels • Properly considered and controlled medium • Maximum limits and risk tolerances for and long-term strategy potential shock losses • Minimizes reliance on external protection • Limit overall exposure to long-tail business
Slide 10: Strong Balance Sheet
Strong Balance Sheet ($ millions) December 31, 2007 2006 2005 Total Cash and Invested Assets $10,311 $9,653 $7,703 Premiums Receivable 1,231 1,126 1,027 Reinsurance Recoverable 1,357 1,359 1,518 Other Assets 1,776 1,528 1,678 Total Assets $14,675 $13,665 $11,926 Loss & Loss Adjustment Expense Reserv
Slide 11: Favorable Reserve Development since Inception
Favorable Reserve Development since Inception ($ in millions) $322 excluding adverse KRW $400 $383.0 development of $105 $337.0 114.3 $300 123.0 $216.5 $200 $181.7 49.0 74.9 268.7 $100 214.0 $55.8 168.3 106.8 28.1 27.7 $0 2003 2004 2005 2006 2007 Insurance Reinsurance 11
Slide 12: Strong Net Reserve Position
Strong Net Reserve Position ($ in millions) Net Case Reserves Net IBNR Reserve $1,200 $1,028 $827 $804 $800 $574 $662 $611 $443 $556 $375 $400 $599 $538 $454 $316 $361 $271 $59 $63 $73 $0 Property and Liability Professional Cat, Property & Credit & Bond, Professional Other Lines other Motor & Liabil
Slide 13: Conservative Investment Portfolio
Conservative Investment Portfolio Other Investments As of December 31, 2007 U.S. 11% Treasury/Agency 12% Corporate Debt Emphasis on capital 15% preservation Cash & Equivalents 20% Managers have a constrained total return mandate Municipals/ Mortgage Non- U.S. Backed Government Securities 5% 31% “Ris
Slide 14: Modest Financial Leverage = Financial Flexibility
Modest Financial Leverage = Financial Flexibility ($ in millions) Capitalization Ratios Debt / Total Capital 8.8% Debt + Preferred / Total Capital 17.7% $6,000 $5,658 $4,912 499 $5,000 250 250 499 $4,011 250 $3,737 $4,000 250 499 499 250 $2,817 250 $3,000 $1,961 4,659 $2,000 3,913 3,238 3,012 2,817
Slide 15: Shareholder Value Creation
Shareholder Value Creation 2002 – 2007 ROACE = 17.9% Diluted book value per share plus accumulated dividends have grown at an annualized rate of 17.5% from 2002 through 2007 Return on Average Common Equity Diluted book value per share + Accumulated dividends $31.14 $35.00 30% ’02-‘07 CAGR = $2.35 26
Slide 16: AXIS Capital: Built for Challenging Markets Questions?
AXIS Capital: Built for Challenging Markets Questions?
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