Axis Capital Holdings Limited · NYSE:AXS
Axis Capital — Bank of America Merrill Lynch 2016 Insurance Conference
14 slides from Axis Capital's conference presentation, Feb 10, 2016
Slide 1: Bank of America Merrill Lynch 2016 Insurance Conference
AXIS Capital Bank of America Merrill Lynch 2016 Insurance Conference, New York, NY Albert Benchimol, President & CEO February 10, 2016
Slide 2: Safe Harbor Statement
AXIS Capital Safe Harbor Statement 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, in
Slide 3: Investment Highlights
AXIS Capital Investment Highlights • Global leader in specialty risks with both insurance and reinsurance platforms • Successful track record confirms strength of value proposition • Excellent financial strength • Executing on strategic initiatives designed to improve relative returns independent of
Slide 4: Hybrid (Re)insurer with Strategic Flexibility
AXIS Capital Hybrid (Re)insurer with Strategic Flexibility ($ in Billions) 2002-2015 Aggregate Consolidated AXIS Gross Premiums Written ’02-’15 GPW $50.0 ’02-’15 Underwriting Income $4.8 ’02-’15 Aggregate Combined Ratio 90%(1) AXIS Insurance (includes AXIS A&H) ’02-’15 GPW $27.9 44% ’02-’15 Underwri
Slide 5: Delivering Excellent Shareholder Value Creation
AXIS Capital Delivering Excellent Shareholder Value Creation $70.00 2002 – 2015 CAGR = 12.5% $64.28 $59.61 $60.00 $10.20 $53.68 $8.98 $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 $2.54 $25.31 $3.29 $54.08 $1.86 $50.63 $19.93 $19.58 $45.80 $42.97 $20.00
Slide 6: Financial Strength and Flexibility
AXIS Capital Financial Strength and Flexibility Competitive Capital Base • Total capital of $6.9 Billion Competitive Financial • Standard & Poor’s “A+” Stable Strength Ratings • Moody’s “A2” Stable • A.M. Best “A+” Stable • Fitch “A+” Stable Solid Reserve Position • IBNR of 66% of net loss reserves
Slide 7: Executing on Strategic Initiatives
AXIS Capital Executing on Strategic Initiatives Initiatives Designed to Deliver Improved Returns Independent of P&C Cycle Quality of Profitable Expense Ratio Optimal Capital Loss Ratio Growth Reduction Structure • Improvements in • Insurance initiatives • Elimination of $50 • Incremental use of unde
Slide 8: Reducing Volatility of Underwriting Results
AXIS Capital Reducing Volatility of Underwriting Results Insurance 8 1. Reported Loss Ratios exclude prior year reserve movements. 2. Volatility Index represents the standard deviation in the annual plan. Standard Deviation of 2010 set equal to 1
Slide 9: Proactively Changing Mix of Business
AXIS Capital Proactively Changing Mix of Business 9 1. Insurance: Specialty Short Tail includes Marine, Aviation, Credit and Political Risk and A&H. 2. Reinsurance: Specialty Short/Med Tail includes Agriculture, Engineering, Marine and Credit and Surety.
Slide 10: Business Mix Masking Improvement in Underwriting Results
AXIS Capital Business Mix Masking Improvement in Underwriting Results Insurance Net Ultimate Loss Ratios by Accident Year as of Q4 2015 Reinsurance Net Ultimate Loss Ratios by Accident Year as of Q4 2015 10 1. Insurance: Specialty Short Tail includes Marine, Aviation, Credit and Political Risk and A
Slide 11: Advancing Data & Analytics at AXIS
AXIS Capital Advancing Data & Analytics at AXIS 2017 2016 2015 2014 • Rolled out insurance portfolio • Nearly doubled insurance • Commencing use of predictive • Insurance price benchmarking analytics with first deep dives actuarial staff over 2 years analytics with D&O insurance complete across all
Slide 12: 21st Century (Re)insurer
AXIS Capital 21st Century (Re)insurer Formidable front end to Preferred access to identify and capitalize multiple sources of risk on opportunities Risk Sourcing funding options Risk Funding Customer centric Own Capital approach to Risk analytics & value creation Portfolio Creation Reinsurance Broad
Slide 13: Conclusion
AXIS Capital Conclusion • Increasing relevance of the AXIS franchise • Delivering targeted near and medium-term return enhancements • Investing in next-generation specialty (re)insurer model • Well positioned to seize opportunities in a transitioning market 13
Slide 14: Question & Answer Session
Question & Answer Session we AAA 52700 A
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