Axis Capital Holdings Limited · NYSE:AXS
Axis Capital — Q3 2024 Earnings Presentation
28 slides from Axis Capital's earnings presentation, Oct 31, 2024
Slide 1: Investor Presentation 2024 Third Quarter
Investor Presentation 2024 Third Quarter
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 business • the inability to purchase reinsurance or collect amounts due to This document contains forward-looking statements within
Slide 3: AXIS aspiration
AXIS aspiration Be the leading Specialty underwriter, generating consistent top-quartile diluted book value per common share (“DBVPS”) growth for shareholders 3
Slide 4: We are a Specialty Underwriter
We are a Specialty Underwriter 4
Slide 5: At a Glance
At a Glance Our strategic focus is on Specialty products: Risk transfer that requires dedicated, tailored underwriting expertise delivered through differentiated distribution channels and customer profiles Gross premiums written ("GPW"), last 12 months1 Q3 2024 Represented in With One of Forbes’s "B
Slide 6: Broad, diverse Specialty portfolio
Broad, diverse Specialty portfolio Insurance Product mix, GPW, last 12 months1 Includes business written out of North America, primarily in Excess and Surplus, and Wholesale, Financial Lines, Programs, and Other3 multiline products for the Canadian markets Cyber2 Property Also includes Global Market
Slide 7: Insurance Overview
Segment Highlights Insurance Overview Product mix, GPW, last 12 months1 E&S Carrier of the Year 20232 Credit & Political Risk Top-10 carrier A&H with leading wholesale brokers 5% 6% Cyber Property Top-10 syndicate at Lloyd's, rated 9% 30% “Outperforming” Marine & Aviation 12% $6.5 Active player in
Slide 8: Reinsurance Overview
Segment Highlights Reinsurance Overview Product mix, GPW, last 12 months1 Growth in Specialty lines and markets where we have strong capabilities and Marine Run-off expertise & Aviation Lines Agriculture 4% 1% Bottom-line focus driving improved 6% underwriting quality through active Motor Liability
Slide 9: Executing on ROACE Drivers
Executing on ROACE Drivers 9
Slide 10: Growth in Specialty Insurance
Growth in Specialty Insurance Portfolio Reshaping Quarter-to-Date Growth Highlights Insurance Reinsurance GPW, last 12 months (“LTM”) $8.8B ▪ Gross premiums written of $1.9B for the quarter $8.0B $8.3B $7.5B 26% are up 2% year over year, an increase of 5% in $6.7B 28% 32% the insurance segment and p
Slide 11: Improved underwriting performance
Improved underwriting performance Consistently improving profitability Current Accident Year ("CAY") Combined ratio1 CAY loss ratio2 Expense ratio3 92.3% 90.1% 88.6% 87.4% 34.5% 32.6% 31.8% Resulting in expanding returns 32.4% Annualized operating ROACE Insurance 57.8% 57.5% 56.8% 18.2% 55.0% 11.1%
Slide 12: Reducing line sizes and ensuring steady CAY loss ratios
Reducing line sizes and ensuring steady CAY loss ratios Evolution of policy size limits 2018 Evolution of group CAY loss ratio CAT CAY loss ratio3 in key lines1 2023 Reported CAY loss ratios Ex-CAT CAY loss ratio3 -75% 75.4% 70.7% 68.1% 9.0% 64.6% 63.3% 58.6% 7.5% 17.7%4 59.4% 9.5% 7.8% 2.7% 3.7% -4
Slide 13: Well-positioned portfolio driving strong investment returns
Well-positioned portfolio driving strong investment returns Investment portfolio as of 9/30/2024 Growing Investment Income Other 3 Total cash and investments Net investment income, in millions Fixed Maturities Fixed maturities 9% 3% Cash and equivalents1 3% Mortgage loans 6% Equity securities $205 $
Slide 14: Capital management aligned with strategy execution
Capital management aligned with strategy execution Robust "toolbox" for Capital deployed to advance strategic priorities generating and managing Cycle management & profitable growth capital Capital allocated to businesses providing attractive long-term returns ▪ Underwriting portfolio, e.g., Capital
Slide 15: Delivering Value
Delivering Value 15
Slide 16: 3Q QTD Results Highlights
3Q QTD Results Highlights Growth ▪ Gross premiums written of $1.9B for the quarter represented the highest third quarter production in How We Work program launched in 2023 to enhance how we operate and how we go to market company history. Our insurance segment had its highest ever third quarter prod
Slide 17: Growth in Diluted Book Value per Common Share
Growth in Diluted Book Value per Common Share1 49% $64.65 $59.29 $57.13 $54.06 $50.31 $50.98 $51.17 $46.95 $43.50 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 1 Calculated using the treasury stock method 17
Slide 18: Emphasis on generating shareholder value
Emphasis on generating shareholder value Fully aligned incentives between management and shareholders Compensation clearly tied to value creation Performance-based equity program based on 15% annual adjusted DBVPS growth and relative total shareholder returns (“rTSR“) Consistent capital returns Ongo
Slide 19: ANI Specialty Solutions, Elevated
| ANI Specialty Solutions, Elevated
Slide 20: Appendix: Non-GAAP Financial Measures Reconciliations
Appendix: Non-GAAP Financial Measures Reconciliations 20
Slide 21: Non-GAAP Reconciliation: Operating Income and Operating ROACE
Non-GAAP Financial Measures Reconciliation (Unaudited) Operating Income and Operating Return on Average Common Equity For the nine months ended September 30, 2024 and years ended December 31, 2023, 2022, and 2021 1 Net deferred tax benefit due to the recognition of deferred tax assets net of deferre
Slide 22: Non-GAAP Reconciliation: Operating Income per Diluted Share
Non-GAAP Financial Measures Reconciliation (Unaudited) Operating Income and Operating Income per Diluted Common Share For the three months ended September 30, 2024 and 2023 22
Slide 23: Non-GAAP Reconciliation: CAY Combined Ratio, Insurance
Non-GAAP Financial Measures Reconciliation (Unaudited) Current Accident Year Combined Ratio – Insurance Segment For the nine months ended September 30, 2024 and years ended December 31, 2023, 2022, and 2021 23
Slide 24: Non-GAAP Reconciliation: CAY Combined Ratio, Reinsurance
Non-GAAP Financial Measures Reconciliation (Unaudited) Current Accident Year Combined Ratio – Reinsurance Segment For the nine months ended September 30, 2024 and years ended December 31, 2023, 2022, and 2021 24
Slide 25: Non-GAAP Reconciliation: CAY Combined Ratio, Consolidated
Non-GAAP Financial Measures Reconciliation (Unaudited) Current Accident Year Combined Ratio – Consolidated For the nine months ended September 30, 2024 and years ended December 31, 2023, 2022, and 2021 25
Slide 26: Non-GAAP Reconciliation: Current Accident Year Loss Ratio
Non-GAAP Financial Measures Reconciliation (Unaudited) Current Accident Year Loss Ratio For the years ended December 31, 2018 – 2023 and nine months ended September 30, 2024 26
Slide 27: 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 28: Rationale for use of Non-GAAP Measures
Rationale for use of Non-GAAP Measures We also present operating income (loss) per diluted common share and annualized operating ROACE, which are derived from the operating income (loss) measure and are reconciled to the most comparable GAAP financial measures, earnings (loss) per diluted common sha
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