Axis Capital Holdings Limited · NYSE:AXS
Axis Capital — Bank of America Merrill Lynch 2010 Insurance Conference
13 slides from Axis Capital's conference presentation, Feb 23, 2010
Slide 1: AXIS Capital – Bank of America Merrill Lynch 2010 Insurance Conference
AXIS Capital Bank of America Merrill Lynch 2010 Insurance Conference New York, NY John Charman, CEO and President February 23, 2010 Exhibit 99.1
Slide 2: Safe Harbor Disclosure
Safe Harbor Disclosure 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
Slide 3: Our Mission
Our Mission To become the Leading Global Specialty Insurer and Reinsurer as defined by Quality, Sustainability and Profitability
Slide 4: Our Differentiating Characteristics
Our Differentiating Characteristics Global Identity Talent Culture of Risk Management Strategic Focus on Profitable Growth Disciplined Capital Allocator Strong Balance Sheet
Slide 5: Our Strategic Focus
Our Strategic Focus Constantly reposition portfolio Create strategic and financial flexibility New specialization in Accident & Health Pursue geographic and distribution expansion opportunities
Slide 6: AXIS Insurance 2003 GPW vs 2009 GPW
AXIS Insurance 2003 GPW = $1,607 M 2009 GPW = $1,776 M Property 28% Marine 13% Liability 10% Terrorism 7% Aviation 21% Credit & Political Risk 6% Professional Lines 15% Property 31% Marine 11%` Liability 13% Aviation 4% Terrorism 2% Credit & Political Risk 1% Professional Lines 38% Cycle Management
Slide 7: AXIS Re 2003 GPW vs 2009 GPW
AXIS Re 2003 GPW = $667 M 2009 GPW = $1,812 M Catastrophe 50% Property 20% Professional Lines 20% Motor 1% Liability 6% Other 3% Other 5% Catastrophe 26% Property 18% Professional Lines 18% Credit and Bond 12% Motor 6% Liability 15% Cycle Management Diversification Disciplined Growth
Slide 8: AXIS Underwriting Outperformance
AXIS Underwriting Outperformance Average P&C Combined Ratio 2002-2009 (1) Source: Company Reports Note: Peer Universe includes Bermuda (re)insurers. For companies with less than 8 years of history, average combined ratio is measured from 2006 through 2009. (1) P&C Operations only. Includes corporate
Slide 9: Conservative Reserving Philosophy
Conservative Reserving Philosophy $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 Short/Medium Medium/Long Long Total Group IBNR Case $1,867 $1,856 $1,460 $5,183 ($ in millions) Net Reserves by Tail as of December 31, 2009
Slide 10: High Quality Investment Portfolio
High Quality Investment Portfolio Fixed Maturity Portfolio Characteristics Total Cash and Investments: $11.6 Billion Note: Other investments include hedge funds, CLO equity tranches, credit funds and short duration high yield funds. (As of December 31, 2009) Equities 2% Short Term Investments 1% Oth
Slide 11: Financial Flexibility
Financial Flexibility 3,012 3,913 4,659 3,961 5,000 250 250 250 250 250 250 250 250 250 250 499 499 499 499 499 12/31/09 Capitalization Ratios $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 ($ in millions) $4,011 $4,912 Common Equity Series A Preferred Equity Series B Preferred Equity Debt $5,658 Debt
Slide 12: 2009 Financial Highlights
2009 Financial Highlights GPW Growth 5.8% Combined Ratio 79.3% Operating ROACE 17.1% Diluted Book Value per Share Growth 30.5% Significant progress in re-balancing underwriting portfolio Strong, diversified earnings stream weathered adverse impact of global financial crisis Executing effective capit
Slide 13: Track Record of Driving Shareholder Value
Track Record of Driving Shareholder Value $13.90 $16.74 $19.29 $18.34 $23.45 $28.79 $25.79 $33.65 Operating ROACE Diluted book value per share + Accumulated dividends $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 Diluted Book Value Per Share (1) (1) Calculated using the treasury stock
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