Axis Capital Holdings Limited · NYSE:AXS
Axis Capital — Investor Presentation (May 2019)
18 slides from Axis Capital's investor presentation, May 16, 2019
Slide 1: Investor Meetings May 2019
Investor Meetings May 2019
Slide 2: Safe Harbor Statement
Safe Harbor Statement FORWARD - LOOKING STATEMENTS: This document contains “forward - looking statements” within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts included in this
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 1 Exchange / Ticker NYSE / “AXS” Market Capitalization 1 $ 4.8 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 / 2.8% AMB/S&P Financial Strength Rati
Slide 5: 2018 Set the Stage to Drive Performance in 2019 & Beyond
2018 S et the Stage to Drive Performance in 2019 & Beyond Focus on disciplined underwriting supported by investments in differentiated products, talent, technology and client service • Novae integration largely complete • Leading Lloyd’s insurer • ~80% of the way through executing our run - rate cos
Slide 6: Investor Snapshot: 1Q19 Financial Highlights
Investor Snapshot: 1Q19 Financial Highlights 1 1Q19 Highlights • 1Q19 GWP totaled $2.6 billion, ~flat YoY, driven by disciplined underwriting underpinned by strategic growth • 1Q19 accident year loss ratio improved 150bps YoY to 59.8% • Insurance segment accident year loss ratio improved 180 basis p
Slide 7: Pricing Continues to Improve in 1Q19
0% 2% 4% 6% 8% 10% 12% 1Q18 2Q18 3Q18 4Q18 1Q19 Insurance - Total International United States Pro Lines Pricing Continues to Improve in 1Q19 • Rate over trend of > 50 basis points in 1Q19 • Insurance: • Average rate increases of >4% for 1Q19 • Achieving double digit rate increases in certain Marine
Slide 8: Strategic Growth: Growing Where it Matters
Strategic Growth: Growing Where it Matters (1) Dollars in millions $USD AXIS has been focused on profitable growth where the company has a relevant market position with the ability to drive improved pricing as well as terms & conditions 8 -$150 -$100 -$50 $0 $50 $100 Property Credit & Political Risk
Slide 9: AXIS: Ongoing Underwriting Actions
AXIS: Ongoing Underwriting Actions 9 Loss Ratio Improvement 79.2% 66.6% 58.5% 63.7% 61.7% 58.9% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% FY2017 FY2018 1Q19 FY2017 FY2018 1Q19 Reported Loss Ratio AY Ex - Cat Loss Ratio • Loss ratio improvement driven by: • Improved mix of business, pricing and terms/c
Slide 10: Growth in Strategic Capital Partnerships Continues
Growth in Strategic Capital Partnerships Continues 10 Strategic Capital Partners Fee Income (1) Strategic Capital Partners AUM Growth Premium Ceded to Strategic Capital Partners ($ in millions) ($ in millions) $6.3 $8.5 $21.8 $36.0 $48.0 $19.8 2014 2015 2016 2017 2018 1Q19 $778 $489 $304 $105 $49 20
Slide 11: Actively Reducing Cat Volatility
Actively Reducing Cat Volatility 11 • AXIS has reduced its 1 - in - 250 Global Aggregate PML 1 by ~49% since the beginning of 2011 • Actively lowering gross exposures through mix of business • Net exposure mitigated through greater use of reinsurance/strategic capital partnerships (1) Global Aggrega
Slide 12: Cat Covers: Improved Capital & Earnings Protection
Cat Covers: Improved Capital & Earnings Protection 12 Southeast Wind PMLs 1 2018 Catastrophe Tower Highlights ($ in millions) $430 $485 $441 $432 $848 $919 $620 $572 4Q17 1Q18 4Q18 1Q19 1 in 100 1 in 250 • The 1 in 250 year PML for Southeast Wind was reduced by 38% since 1Q18 • XOL and aggregate com
Slide 13: Corporate Social Responsibility at AXIS
Corporate Social Responsibility at AXIS Philanthropy – supporting charitable causes that align with our values Diversity & Inclusion – implementing practices to enhance D&I within our Company as well as the larger profession Environmental – enhancing our corporate and business practices to help ensu
Slide 14: Conclusion
Conclusion AXIS is a relevant player in its chosen 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 performance i
Slide 15: Appendix I – Non-GAAP Financial Measures
Appendix I – Non - GAAP Financial Measures We present our results of operations in the way we believe will be most meaningful and useful to investors, analysts, rating age ncies and others who use our financial information to evaluate our performance. Some of the measurements we use are considered n
Slide 16: Appendix I – Non-GAAP Financial Measures
Appendix I – Non - GAAP Financial Measures Certain users of our financial statements evaluate performance exclusive of after - tax net investment gains (losses), foreign exc hange losses (gains), transaction and reorganization expenses, and interest in income (loss) of equity method investments to u
Slide 17: Appendix I – Non-GAAP Financial Measures: Acquisition of Novae
Appendix I – Non - GAAP Financial Measures Acquisition of Novae On October 2, 2017, we acquired Novae. We identified VOBA which represents the present value of the expected underwriting pro fit within policies that were in - force at the closing date of the transaction. In addition, the allocation o
Slide 18: Appendix II – Non-GAAP Reconciliations
Appendix II – Non - GAAP Reconciliations
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