Axis Capital Holdings Limited · NYSE:AXS
Axis Capital — Investor Presentation (August 2014)
14 slides from Axis Capital's investor presentation, Aug 8, 2014
Slide 1: Investor Presentation Q2 2014 Update
Exhibit 99.1 AXIS Capital Investor Presentation Q2 2014 Update
Slide 2: Safe Harbor
AXIS Capital Safe Harbor 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 meaning of the U.S. federal securities laws, including th
Slide 3: On Course to Consistently Superior Results
AXIS Capital On Course to Consistently Superior Results Long-term track record of success Recent underperformance driven by catastrophe exposure and frequency of severity in underwriting portfolios Initiatives in process to deliver strategic goals Targeted benefits not dependent on pricing cycle Wel
Slide 4: Delivering Top-Quintile Average ROACE
AXIS Capital Delivering Top-Quintile Average ROACE 2002-2013 Average ROACE vs. Volatility (Standard Deviation) Volatility by Quintile Lowest Highest 2nd 3rd 4th 1st 5th AXS US US Bermuda Reinsurance Property Specialty Scale Hybrid Predominating Cat Sources: Companydocuments. Note: US Specialty group
Slide 5: Delivering Excellent Shareholder Value Creation
AXIS Capital Delivering Excellent Shareholder Value Creation $60.00 $58.11 2002 – 2014Q2 CAGR = 13.2% $53.68 $8.42 $49.83 $50.00 $7.88 $44.33 $43.97 $6.86 $4.96 $5.89 $40.00 $37.75 $4.10 $31.33 $29.08 $30.00 $2.535 $25.31 $3.29 $1.855 $49.69 $45.80 $19.93 $19.58 $42.97 $20.00 $39.37 $16.88 $38.08 $0
Slide 6: Cat Rebalancing Important for AXIS Re
AXIS Capital Cat Rebalancing Important for AXIS Re 2011 Cat Year was particularly challenging for AXIS Re Aggregate Underwriting Aggregate Underwriting Aggregate Underwriting Profitability 2003 – 2013 Profitability 2011 – 2013 Profitability 2011 – 2013 (ex. 2011) European Reinsurers in Top 10 Top 10
Slide 7: AXIS Insurance Poised for Outperformance
AXIS Capital AXIS Insurance Poised for Outperformance Aggregate Underwriting Profitability Aggregate Underwriting Profitability 2003 – 2013 2011 – 2013 Source: Company documents. 7 Notes: US Specialty includes Alleghany, American Financial, Houston Casualty, Markel, RLI, and W.R. Berkley. Bermuda “S
Slide 8: Continue with Strategy to Achieve Goals
AXIS Capital Continue with Strategy to Achieve Goals Invest in our people and culture Underwriting talent which delivered top-tier underwriting results since inception Successfully attracting and adding new top-tier underwriting talent Deliver diversified growth Bring specialist underwriting to new
Slide 9: Delivering Diversified Growth
AXIS Capital Delivering Diversified Growth Significant contributions from new, diversifying initiatives Accident and Health unit Global agriculture reinsurance line New, diversifying initiatives in early stages Lloyd’s presence Re-entry into U.S. primary casualty New distribution initiatives in U.S.
Slide 10: Rebalanced Natural Catastrophe Exposure
AXIS Capital Rebalanced Natural Catastrophe Exposure Largest Modeled 1 in 100 and 250 Year PML 1 in 250 All Perils Net Annual Aggregate as a % of Common Equity Loss as a % of Common Equity 25% 20% 15% 10% 5% 0% 2008 2009 2010 2011 2012 2013 1-Apr-14 1-Jul-14 2008 2009 2010 2011 2012 2012 2013 2014 L
Slide 11: Focus on Drivers of Shareholder Value
AXIS Capital Focus on Drivers of Shareholder Value Initiatives in Process Designed to Deliver Improved Returns Independent of P&C Cycle Quality of Loss Profitable Expense Ratio Optimal Capital Ratio Growth Reduction Structure • Continued • Significant, new • More scale from • Lower aggregate managem
Slide 12: Environment Supports Good Margins
AXIS Capital Environment Supports Good Margins AXIS Insurance Current Business Mix Rate Change Index 12
Slide 13: AXIS Re Well-Positioned
AXIS Capital AXIS Re Well-Positioned Versus Large (Re)insurers Buyers are attempting to diversify away from Large Companies Broker-friendly alternative as brokers actively target direct markets Versus Smaller (Re)insurers Broad product offering Global presence Strong leaders of specialty businesses
Slide 14: Well Positioned for Current Environment
AXIS Capital Well Positioned for Current Environment AXIS possesses the necessary attributes to succeed in the current environment Scale advantage with ~$7 billion in capital Established brand name and reputation with clients Whole account capabilities with expertise in multiple products and geograp
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