Axis Capital Holdings Limited · NYSE:AXS
Axis Capital — Q4 2024 Earnings Presentation
25 slides from Axis Capital's earnings presentation, Jan 30, 2025
Slide 1: Investor Presentation 2024 Fourth Quarter
Investor Presentation 2024 Fourth Quarter Note that slides 14 and 16 were amended in a Form 8-K/A filed on February 11, 2025 to correct administrative errors on slides 14 and 16 in Exhibit 99.1 of the Original Form 8-K filed on February 10, 2025 (i) where it was clarified that $200 million shares we
Slide 2: Safe Harbor Statement
Safe Harbor Statement CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Insurance Risk Credit and Market Risk • the cyclical nature of insurance and reinsurance business leading • the inability to purchase reinsurance or collect amounts due to This document contains forward-looking statements wit
Slide 3: AXIS At a Glance
AXIS At a Glance Our strategic focus is on Specialty products: Risk transfer that requires dedicated, tailored underwriting expertise delivered through differentiated distribution channels and customer profiles Gross premiums written ("GPW"), last 12 months 1 As of 12/31/2024 U.S. News 2025 US Best
Slide 4: Emphasis on generating shareholder value
Emphasis on generating shareholder value Fully aligned incentives between management and shareholders Compensation clearly tied to value creation Performance-based equity program based annual adjusted DBVPS growth and relative total shareholder returns (“rTSR“) Consistent capital returns Share repur
Slide 5: AXIS Aspiration
AXIS Aspiration Be the leading Specialty underwriter, generating consistent top-quartile diluted book value per common share (“DBVPS”) growth for shareholders 5
Slide 6: Strategic Pillars
Strategic Pillars We operate in attractive markets, We are rigorously improving make decisive choices on where and how we operate to become a how to compete, and nimbly allocate more integrated, efficient resources company We invest in building strong We manage our capital capabilities in underwriti
Slide 7: Broad, diverse Specialty portfolio
Broad, diverse Specialty portfolio Insurance Product mix, GPW, last 12 months1 Includes business written out of North America, primarily in Excess and Surplus, and Wholesale, Financial Lines, Programs, and Other3 multiline products for the Canadian markets Cyber2 Property Also includes Global Market
Slide 8: Insurance Overview
Segment Highlights Insurance Overview Product mix, GPW, last 12 months1 E&S Carrier of the Year 20232 Credit & Political Risk Top carrier A&H with leading wholesale brokers 5% 7% Cyber Property Top syndicate at Lloyd's, rated 8% 31% “Outperforming” Marine & Aviation 12% $6.6 Active player in attra
Slide 9: Reinsurance Overview
Segment Highlights Reinsurance Overview Product mix, GPW, last 12 months1 Growth in Specialty lines and markets where we have strong capabilities and Marine Run-off expertise & Aviation Lines Agriculture 1% 3% Bottom-line focus driving improved 6% Liability underwriting quality through active Motor
Slide 10: Growth in Specialty Insurance
Growth in Specialty Insurance Portfolio Reshaping Fourth Quarter Growth Highlights Insurance Reinsurance GPW, Full Year 2019-2024 $9.0B ▪ Gross premiums written for the group was up $7.7B $8.2B $8.4B 11% year over year to $2.0B for the quarter, the $6.9B $6.8B 27% 27% 37% 32% highest production four
Slide 11: Improved underwriting performance
Improved underwriting performance Consistently improving profitability Current Accident Year ("CAY") Combined ratio 1 CAY loss ratio2 Expense ratio3 98.9% 87.4% 89.5% Resulting in expanding returns 35.4% 32.4% 31.9% Operating ROACE Insurance 63.5% 55.0% 57.6% 18.6% 11.0% 101.7% 93.0% 92.3% 5.0% 27.5
Slide 12: "How We Work" leverages our competitive platform
"How We Work" leverages our competitive platform How We Work program launched in 2023 to enhance how we operate and how we go to market Deliver efficiencies Simplify operating and capitalize on structures and productivity gains processes <11% Enhance ability to Increase agility Target G&A ratio by 2
Slide 13: Well-positioned portfolio driving strong investment returns
Well-positioned portfolio driving strong investment returns Investment portfolio as of 12/31/2024 Growing Investment Income Other 3 Total cash and investments Net investment income, in millions Fixed Maturities Fixed maturities $759 18% 3% Cash and equivalents1 3% Mortgage loans Equity securities 6%
Slide 14: Capital management aligned with strategy execution
Capital management aligned with strategy execution Robust "toolbox" for Capital deployed to advance strategic priorities generating and managing Cycle management & profitable growth capital Capital allocated to businesses providing attractive long-term returns ▪ Underwriting portfolio, including Cap
Slide 15: Growth in Diluted Book Value per Common Share Excluding AOCI and Dividends
Growth in Diluted Book Value per Common Share Excluding AOCI and Dividends1 2022-2024 CAGR: 11% 2015-2022 CAGR: 2% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1 Calculated usin g the t reasu ry stock method 15
Slide 16: 2024 Highlights
2024 Highlights A record year: $2,621 million booked in new business Syndicate 2050, launched in 2024, has booked over $30 premiums million in business for the year Announced a loss portfolio transfer with Enstar in 2024 Current Accident Year Loss Ratio, excluding December 2024 Catastrophes and Weat
Slide 17: AXIS Specialty Solutions, Elevated
| ANI Specialty Solutions, Elevated
Slide 18: Appendix: Non-GAAP Financial Measures Reconciliations
Appendix: Non-GAAP Financial Measures Reconciliations 18
Slide 19: Non-GAAP Financial Measures Reconciliation (Unaudited)
Non-GAAP Financial Measures Reconciliation (Unaudited) Operating Income and Operating Return on Average Common Equity For the years ended December 31, 2024-2018 1 Net deferred tax benefit due to the recognition of deferred tax assets net of deferred tax liabilities related to a fut ure Bermuda corpo
Slide 20: Non-GAAP Financial Measures Reconciliation (Unaudited)
Non-GAAP Financial Measures Reconciliation (Unaudited) Operating Income For the quarters and years ended December 31, 2024 and 2023 1 Operating in come (loss) and operating income (loss) per diluted common share are non-GAAP financial measures as defined in SEC Regulation G. The reconciliation to ne
Slide 21: Non-GAAP Financial Measures Reconciliation (Unaudited)
Non-GAAP Financial Measures Reconciliation (Unaudited) Current Accident Year Combined Ratio – Insurance Segment For the years ended December 31, 2024-2018 21
Slide 22: Non-GAAP Financial Measures Reconciliation (Unaudited)
Non-GAAP Financial Measures Reconciliation (Unaudited) Current Accident Year Combined Ratio – Reinsurance Segment For the years ended December 31, 2024-2018 22
Slide 23: Non-GAAP Financial Measures Reconciliation (Unaudited)
Non-GAAP Financial Measures Reconciliation (Unaudited) Current Accident Year Loss Ratio For the years ended December 31, 2024 and 2023 23
Slide 24: Rationale for use of Non-GAAP Measures
Rationale for use of Non-GAAP Measures We present our results of operations in a way we believe will be meaningful and useful to investors, analysts, rating agencie s and others who use our financial information to evaluate our performance. Some of the measurements we use are considered non-GAAP fin
Slide 25: Rationale for use of Non-GAAP Measures
Rationale for use of Non-GAAP Measures We also present operating income (loss) per diluted common share and operating ROACE, which are derived from the operating income (loss) measure and are reconciled to the most comparable GAAP financial measures, earnings (loss) per diluted common share and retu
Axis Capital Holdings — Q4 2024 Earnings Presentation on 6ix