Axis Capital Holdings Limited · NYSE:AXS
Axis Capital — Non-Deal Roadshow (February 2019)
19 slides from Axis Capital's roadshow presentation, Feb 14, 2019
Slide 1: Investor Meetings February/March 2019
Investor Meetings February/March 2019
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements in this presentation that are not historical facts, including statements regarding our estimates, beliefs, expecta tio ns, intentions, strategies or projections, may be “forward - looking statements” within the meaning of the U.S. federal securities laws, including t
Slide 3: Target Leadership in Global Specialty Risks
Target Leadership in Global Specialty Risks Targeting Top - quintile profitability with industry average volatility Hybrid model – Insurance & Reinsurance Franchise anchored in leadership positions in key markets and distribution relationships Strong relationships with distributors & clients based o
Slide 4: AXIS Capital at a Glance
AXIS Capital at a Glance Exchange / Ticker NYSE / “AXS” Market Capitalization $4.6 Billion Gross Premium Written $ 6.9 Billion Leading Global Underwriter - E&S P&C - Lloyd’s - U.S . Pro Lines - Global Reinsurance 2019 Quarterly Div. / Annual Yield 1 $ 0.40 / 2.9% AMB/S&P Financial Strength Ratings A
Slide 5: Investor Snapshot: 2018 Financial Highlights
Investor Snapshot: 2018 Financial Highlights 2018 Highlights • 2018 GWP grew 24% YoY with the addition of the Novae book • 2018 accident year loss ratio ex - cat improved 200 basis points to 61.7% YoY • Insurance segment accident year loss ratio ex - cat improved 280 basis points to 58.5% YoY • Rein
Slide 6: 2018: A Year of Operational Achievements
2018: A Year of Operational Achievements Focus on disciplined underwriting supported by investments in differentiated products, talent, technology and client service • Novae integration largely complete • Top 10 Lloyd’s insurer • ~75% of the way through executing our run - rate cost savings of $60 m
Slide 7: Pricing: Improving Market Conditions
Pricing: Improving Market Conditions • Average rate increases in the mid single - digits in FY2018 in Insurance lines • Achieving double digit rate increases in a number of property segments such as U.S. E&S Property • Achieving high single digit rate increases in a number of casualty classes outsid
Slide 8: AXIS: Ongoing Underwriting Actions
AXIS: Ongoing Underwriting Actions 1 8 Pro - Forma Ex - PGAAP/Cat/PYD Margin Improvement 2 40% 50% 60% 70% 80% 90% 100% 110% 120% 2016 2017 2018 2016 2017 2018 Loss ratio G&A expense ratio Acquisition ratio Reported Combined Ratio AY Ex - Cat Combined Ratio Reported Combined Ratio Improvement (1) Ch
Slide 9: Growth in Strategic Capital Partnerships
Growth in Strategic Capital Partnerships 9 Strategic Capital Partners Fee Income (1) Strategic Capital Partners AUM Growth Premium Ceded to Strategic Capital Partners ($ in millions) ($ in millions) $6.3 $8.5 $21.8 $36.0 $48.0 2014 2015 2016 2017 2018 $778 $489 $304 $105 $49 2018 2017 2016 2015 2014
Slide 10: Positive Trends in Investment Income
Positive Trends in Investment Income 10 2.0% 2.5% 3.0% 3.5% 4.0% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 YTM Book Yield • Duration of 2.8 years with an average credit rating of AA - at year - end 2018 • Investment income grew 9.4% in FY2018 to $438.5 million YoY ~50bps
Slide 11: Actively Reducing Cat Volatility
Actively Reducing Cat Volatility 11 • AXIS has reduced its 1 - in - 250 Global Aggregate PML 1 by ~47% since the beginning of 2011 • Actively lowering gross exposures through mix of business • Net exposure mitigated through greater use of reinsurance/strategic capital partnerships (1) Global Aggrega
Slide 12: Cat Covers: Improved Capital & Earnings Protection
Cat Covers: Improved Capital & Earnings Protection 12 Southeast Wind PMLs 1 2018 Catastrophe Tower Highlights ($ in millions) $531 $530 $430 $441 $680 $675 $848 $620 2Q17 3Q17 4Q17 4Q18 1 in 100 1 in 250 Novae Acquisition • The 1 in 250 year PML for Southeast Wind was reduced 27% since 4Q17 • XOL an
Slide 13: Conclusion
Conclusion Transformed AXIS into a relevant player in core specialty markets Superior attributes deliver more defensible market position Substantial progress in transitioning portfolio for greater balance and profitability, with lower volatility Actions already taken will lead to stronger performanc
Slide 14: Appendix – Non-GAAP Reconciliations
Appendix – Non - GAAP Reconciliations
Slide 15: Appendix – Non-GAAP Reconciliations
Appendix – Non - GAAP Reconciliations
Slide 16: Appendix – Non-GAAP Reconciliations
Appendix – Non - GAAP Reconciliations
Slide 17: Appendix – Non-GAAP Reconciliations
Appendix – Non - GAAP Reconciliations
Slide 18: Appendix – Non-GAAP Reconciliations
Appendix – Non - GAAP Reconciliations 1 (1) $ in 000s
Slide 19: Appendix – Non-GAAP Reconciliations
Appendix – Non - GAAP Reconciliations 1,2 (1) Combined Ratios Group include Corporate expenses of $108.2m and $129.4m in 2018 and 2017 respectively (all included within co nti nuing lines ) (2) *Pro - Forma Continuing Lines 2017 includes a full year of Novae FY2017 - Reconciliation Reported GAAP Com
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