Axis Capital Holdings Limited · NYSE:AXS
Axis Capital — Bank of America Merrill Lynch Insurance Conference 2018
23 slides from Axis Capital's conference presentation, Feb 15, 2018
Slide 1: Bank of America Merrill Lynch Insurance Conference 2018
Bank of America Merrill Lynch Insurance Conference 2018 Albert Benchimol, President & CEO AXIS Capital February 15, 2018 Exhibit 99.1
Slide 2: Safe Harbor Statement
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, including the P
Slide 3: A Leading Hybrid Global (Re)insurer
A Leading Hybrid Global (Re)insurer Market data as of 2/14/17. 2017 GPW pro forma for recent acquisition of Novae as if acquisition closed 12/31/16. Novae GPW for first 9 months of 2017 converted at rate of 1.28x GBP:USD. S&P / A.M. Best AXIS is a global insurer and reinsurer, providing our clients
Slide 4: Consistent Commitment to Our Strategy
Target leadership in global Specialty Risks 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 on expertise,
Slide 5: Where We Are On Our Journey
Where We Are On Our Journey 2001 START-UP Provider of large capacity for volatile lines in a “hard” market TODAY RELEVANT PLAYER Relevant player in core markets with a more diversified portfolio Top 10 U.S. Excess and Surplus Lines (P&C) London Market / Lloyds Insurer of North American Professional
Slide 6: Delivering Excellent Shareholder Value Creation
Delivering Excellent Shareholder Value Creation (1) Diluted book value per share calculated using treasury stock method. 12/31/02 diluted BVPS is pro forma for AXIS Capital IPO. 2002 – 2017 CAGR = 11.1% Total Shareholder Value Creation = Growth in Diluted Book Value per Share(1) + Accumulated Declar
Slide 7: Deliberate Reduction of Volatility
Deliberate Reduction of Volatility Note: Excludes Syndicate 2007 Reported Loss Ratios exclude prior year reserve movements. Volatility Index represents the standard deviation in the annual plan. Standard Deviation of 2010 set equal to 1. Business mix shift to write proportionally less volatile lines
Slide 8: Reduced Exposure to Catastrophes
Reduced Exposure to Catastrophes AXIS vs. Peers – 2017 Cat Losses as % of Common Equity(2) Source: Swiss Re, company reports. Industry losses exclude NFIP losses. AXIS cat losses are pre-tax, net ultimate losses. Cat losses are announced pre-tax net losses. Common equity as of 12/31/16. AXIS Catastr
Slide 9: A Diversified Global Specialist Insurer
A Diversified Global Specialist Insurer AXIS Insurance vs. Peers Accident Year Combined Ratio (ex. Cats) (2013-2017 Avg.) AXIS Insurance 2017 GPW(1): $4.0 Billion Peer Mean 97.1% 2017 GPW pro forma for recent acquisition of Novae as if acquisition closed 12/31/16. Novae GPW for first 9 months of 201
Slide 10: Diversified Distribution with Greater Access to Smaller Accounts
Diversified Distribution with Greater Access to Smaller Accounts AXIS Insurance Sourcing of GPW Less dependence on “Big 3” retail brokers More diversified sourcing of revenues Larger proportion of smaller accounts Less volatile portfolio Big 3 Retail includes Marsh, AON and Willis. Big 3 US Wholesal
Slide 11: Significant Progress on Novae Integration
AXIS Insurance International Division 2017 Business Mix by GPW(1) Significant Progress on Novae Integration Diversified distribution and strengthened strategic broker relationships Greater proportion of smaller risks “Best of both” underwriting teams in place Moved to single managing agency; syndica
Slide 12: AXIS Insurance: Focusing on Profitability and Relevance
AXIS Insurance: Focusing on Profitability and Relevance Portfolio Mix Change Investments in New Lines 2013 2017 GWP share 18% 3% 2013 2017 GWP share 54% 72% 2013 2017 GWP share 10% 11% 2013 2017 GWP share 18% 13% Low Relevance Low Profitability High Relevance High Profitability 2017 Avg. CR (ex. Cat
Slide 13: AXIS Insurance: Disciplined Underwriting and Improving Market Dynamics
Maintaining margin through disciplined underwriting AXIS Insurance: Disciplined Underwriting and Improving Market Dynamics Market rate trend improving going into 2018 Note: Excludes A&H
Slide 14: AXIS Re: Strong Midsize Global Reinsurer
Exposures in 77 Countries 4,700+ Contracts 2,100+ Programs 600+ Client Relationships 5 Day Average Payment of Valid Claims From Receipt Product Mix (Premium) Regional Mix (Premium) Structural Mix (Premium) Casualty Specialty Property Pro-Rata Excess of Loss US & Canada Europe Rest 52% 36% 12% 58% 42
Slide 15: AXIS Re Overview
AXIS Re Overview AXIS Re 2017 GPW by Line(1): $2.6 Billion Data is pro forma for recent acquisition of Novae as if acquisition closed 12/31/16. Novae data for first 9 months of 2017 converted at rate of 1.28x GBP:USD. 2002-2017 Financial Results(1) ($ in Billions) Total Gross Premiums Written $26.9
Slide 16: AXIS Re: Successful January Renewals
AXIS Re: Successful January Renewals Expiring Premium 1/1 2018 Renewals(1) Premium $1.46Bn $1.48Bn Number of Contracts 2,459 2,570 Number of Client Relationships 361 383 Uptick on all metrics at 1/1 Improved priced technical results and ROE for all lines of business Excludes Novae.
Slide 17: Growing Strategic Capital Partnerships
Growing Strategic Capital Partnerships Total Managed Capital: $8.2bn Strategic Capital Partners Fee Income(1) Total Managed Capital Premium Ceded to Strategic Capital Partners ($ in billions) ($ in millions) ($ in millions) Fee income from strategic capital partners represents service fees and reimb
Slide 18: Strengthening our Operating Model
Strengthening our Operating Model LAUNCH Global Underwriting and Analytics Office REALIGN Accident & Health Business & Build on its Growth REINVEST in Customer Centricity INTEGRATE Functional Models for IT, Finance
Slide 19: Confidence in Margin Improvement
Confidence in Margin Improvement FY 2017 “As if”(1) Less: Discontinued Lines(2) Pro Forma 2017 Continuing Lines GPW $6,567 $192 $6,376 NPE $4,751 $195 $4,556 Combined Ratio 111.7% 158.2% 109.8% AY Ex. Cat Combined Ratio 96.8% 120.7% 95.7% ($ in millions) Figures are pro forma for recent acquisition
Slide 20: Where We Are Going
Top 3 go-to player for specialty risks Top 10 (re)insurer in our chosen markets Top quintile profitability Company that attracts the best talent Where We Are Going 2001 START-UP Provider of risk capital in firm/hard market. TOMORROW LEADERSHIP TODAY RELEVANT PLAYER “Relevant player in core markets.”
Slide 21: Conclusion
Conclusion Transformed AXIS into a relevant leader 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 22: Questions?
Questions?
Slide 23: Simm es
Simm es ITT
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