Axis Capital Holdings Limited · NYSE:AXS
Axis Capital — Q3 2021 Earnings Presentation
19 slides from Axis Capital's earnings presentation, Oct 28, 2021
Slide 1: Investor Meetings - 3Q21
Investor Meetings - 3Q21
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This presentation 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
Slide 3: Consistent Commitment to Our Strategy
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP PURPOSE CONCLUSION APPENDIX CONSISTENT COMMITMENT TO OUR STRATEGY Vision: Global Leadership in Specialty Risks Targeting top-quintile profitability with industry average volatility Franchise anchored in leadership positions in key markets and di
Slide 4: Leading Specialty Insurer and Global Reinsurer
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP PURPOSE CONCLUSION APPENDIX LEADING SPECIALTY INSURER AND GLOBAL REINSURER Total FY2020 GPW: $6.8 billion We provide our clients and distribution partners with a broad range of risk transfer products and services, Insurance 60% meaningful capaci
Slide 5: AXIS: A Profitable Growth Engine
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP PURPOSE CONCLUSION APPENDIX AXIS: A PROFITABLE GROWTH ENGINE CONSISTENT MARGIN IMPROVEMENT STRONG MARKET POSITION Repositioning of the portfolio over the past few years Virtually all of AXIS’ insurance portfolio is in the markets should continue
Slide 6: Pricing Momentum Continues in 2021
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP PURPOSE CONCLUSION APPENDIX PRICING MOMENTUM CONTINUES IN 2021 Insurance: Cumulative Insurance Rate Improvements • Rates continue to increase in the double digits • 16th consecutive quarter of rate increases 60% • Average rate increases of ~14%
Slide 7: Accelerating Profitable Insurance Growth
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP PURPOSE CONCLUSION APPENDIX ACCELERATING PROFITABLE INSURANCE GROWTH Price firming in the insurance market continues in many lines of business which should drive future growth Insurance Segment GPW Changes Targeting Profitable Growth $1,300 $1,2
Slide 8: Consistent Execution Delivers Results
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP PURPOSE CONCLUSION APPENDIX CONSISTENT EXECUTION DELIVERS RESULTS AXIS has positioned itself to excel in the current firming P&C market and the underwriting performance is producing more consistent and more profitable results Group Ex-Cat AY Com
Slide 9: Group: Underwriting Actions Drive Improving Performance
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP PURPOSE CONCLUSION APPENDIX GROUP: UNDERWRITING ACTIONS DRIVE IMPROVING PERFORMANCE Group Ex-Cat AY Loss Ratio 65% 61.7% 60.6% 60% 58.5% 57.7% 57.8% 55.4% 55.4% 55% 50% FY2018 FY2019 FY2020 3Q20 3Q21 9M20 9M21 Loss ratio improvement driven by: •
Slide 10: Insurance Segment: Underlying Loss Ratio Improvement
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP PURPOSE CONCLUSION APPENDIX INSURANCE SEGMENT: UNDERLYING LOSS RATIO IMPROVEMENT Insurance Ex-Cat AY Loss Ratio 60% 58.5% 2.7% 57.0% 2.3% 55.1% 55% 54.7% 54.8% 0.7% 0.4% 1.1% 51.6% 50.8% 0.0% 55.9% 50% 0.0% 54.7% 54.4% 54.3% 53.7% 45% 50.8% 51.6
Slide 11: Reinsurance Segment: Underlying Loss Ratio Improvement
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP PURPOSE CONCLUSION APPENDIX REINSURANCE SEGMENT: UNDERLYING LOSS RATIO IMPROVEMENT Reinsurance Ex-Cat AY Loss Ratio 67% 64.8% 64.0% 63% 62.7% 61.4% 61.1% 60.6% 60.2% 59% 55% FY2018 FY2019 FY2020 3Q20 3Q21 9M20 9M21 Portfolio Changes Driving Impr
Slide 12: Disciplined Reduction of Cat Exposure Across Entire Curve
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP PURPOSE CONCLUSION APPENDIX DISCIPLINED REDUCTION OF CAT EXPOSURE ACROSS ENTIRE CURVE Southeast Hurricane PML Reductions by Return Period Earnings Protection Capital Protection 50% 42% 47% 50% 52% 48% 1 in 5 1 in 10 1 in 20 1 in 50 1 in 100 1 in
Slide 13: Continuing Operational Improvements
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP PURPOSE CONCLUSION APPENDIX CONTINUING OPERATIONAL IMPROVEMENTS Underwriting-related G&A Expenses $550 $519.2 Millions $505.7 $478.0 $450 $396.4 $361.6 $350 $250 $150 $50 FY2018 FY2019 FY2020 9M20 9M21 Focused Expense Management: • Headcount and
Slide 14: ROE Accretive Capital Partnerships
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP PURPOSE CONCLUSION APPENDIX ROE ACCRETIVE CAPITAL PARTNERSHIPS Strategic Capital Partners AUM Growth Strategic Capital Partners Fee Income1 ($ in millions) $2.0bn $80.3 $1.5bn AUM Growth ($bn) $1.0bn $60.5 $0.5bn $48.0 $0.0bn 2015 2016 2017 2018
Slide 15: Achieving Significant Progress Across the Platform
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP PURPOSE CONCLUSION APPENDIX ACHIEVING SIGNIFICANT PROGRESS ACROSS THE PLATFORM In the past five years, AXIS has implemented significant change to its platform and portfolios IMPROVEMENT TARGETS3 DELIVERING RESULTS KEY DRIVERS OF RECENT PROGRESS
Slide 16: Furthering Our Commitment to ESG
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP PURPOSE CONCLUSION APPENDIX FURTHERING OUR COMMITMENT TO ESG In 2018, AXIS launched a formalized program to address Environmental, Social and Governance (“ESG”) factors, with environment and diversity & inclusion as our core focus areas. Since t
Slide 17: Purpose, Strategic Vision, and Values
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP PURPOSE CONCLUSION APPENDIX PURPOSE, STRATEGIC VISION, AND VALUES AXIS has long been a values-based organization and since 2018, we have been scaling our ESG and Corporate Citizenship program, overseen by the Corporate Governance and Nominating
Slide 18: Conclusion
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP PURPOSE CONCLUSION APPENDIX CONCLUSION Accelerating improvement Pace of underwriting margin improvement should continue given ongoing portfolio improvements and firmer pricing Enhanced use of reinsurance, retro and third-party capital driving be
Slide 19: Appendix I
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP PURPOSE CONCLUSION APPENDIX APPENDIX I (1) Note: On October 2, 2017, we acquired Novae Group plc (“Novae”). At the acquisition date, we identified value of business acquired (“VOBA”) which represents the present value of the expected underwritin
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