Axis Capital Holdings Limited · NYSE:AXS
Axis Capital — Q3 2023 Earnings Presentation
28 slides from Axis Capital's earnings presentation, Nov 2, 2023
Slide 1: Investor Presentation Third Quarter 2023
Investor Presentation 2023 Third Quarter AXIS Capital 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Insurance Risk Credit and Market Risk • the cyclical nature of the insurance and reinsurance • the inability to purchase reinsurance or collect This document contains forward-looking statements within the meaning business lea
Slide 3: Overview & Financial Highlights
Overview & Financial Highlights 3
Slide 4: AXIS at a Glance
AXIS at a Glance Delivering on our strategy Market Capitalization(1) Annualized YTD ROACE Mix of Business by GPW(3) to elevate AXIS as a 15.4% Specialty Underwriting $4.9 Billion Annualized YTD Operating ROACE(2) 28% Leader 18.4% $8.3 Billion 72% “AXS” Shares Listed on Represented in the New York St
Slide 5: Focused on Driving Consistent, Profitable Returns
Focused on Driving Consistent, Profitable Returns Leveraging our strengths to fully harness the potential of our platform Broad Underwriting Specialty Deep Customer Strong Global Excellence Products and Relationships Platform Services GROWTH IN PROFITABILITY AND BOOK VALUE PER SHARE 5
Slide 6: Strong Platforms Operating in the Largest Specialty Markets
Strong Platforms Operating in the Largest Specialty Markets Broadly diversified portfolio designed to deliver across market cycles GPW BY LINE OF BUSINESS(1) INSURANCE For the 12 months ended 09/30/2023 Our Insurance segment includes business Reinsurance Run-off Lines(2) Agriculture written out of N
Slide 7: Taking a Fresh Look
Taking a Fresh Look Actions underway to drive performance excellence and further enhance how we operate and go to market AREAS OF FOCUS SELECT INITIATIVES Agility and Speed to ✓ Simplifying the operating structure to take advantage of Market market dynamics allowing for quicker decision-making and i
Slide 8: Adding Talent to Propel Our Strategic Execution
Adding Talent to Propel Our Strategic Execution Seasoned leadership in specialty insurance and reinsurance organized to deliver value Vincent C. Tizzio President and CEO Joined January 2022; Appointed CEO May 2023 Pete Vogt Conrad Brooks Dan Draper Chief Financial Officer General Counsel Chief Under
Slide 9: Acting on Growth Opportunities
Acting on Growth Opportunities Achieving record growth by continuing to seize opportunities in attractive markets Q3’23 PRODUCTION ✓ Grew gross premiums written to $1.9 billion, reflecting an 11.6% improvement year-over-year HIGHLIGHTS ✓ New business of $467 million written in the Insurance segment,
Slide 10: Disciplined Reduction of Catastrophe Exposure
Disciplined Reduction of Catastrophe Exposure Exit from Reinsurance Catastrophe and Property business in 2022 has lowered earnings volatility experienced in recent years SOUTHEAST HURRICANE PML REDUCTIONS(1) 1-in-250 1-in-250 as % of total common shareholders’ equity 1-in-100 1-in-100 as % of total
Slide 11: Enhanced Underwriting Profitability
Enhanced Underwriting Profitability Over 10 consecutive quarters of underwriting profit for AXIS ex-Property Cat Re(1) and for our Insurance Segment All lines, as reported Ex-Property Cat Re(1) QUARTERLY UNDERWRITING PROFIT(2) ($ in millions) $148 $139 $139 $148 $139 $147 $139 $136 $132 $125 $117 $1
Slide 12: Positioned to Deliver Superior Value
Positioned to Deliver Superior Value AXIS has strong positive momentum to deliver sustained profitable growth and increased shareholder value ✓ Disciplined portfolio management designed to deliver underwriting profitability across market cycles Underwriting Excellence ✓ Leaning into favorable indust
Slide 13: Sound Financial Footing
Sound Financial Footing 13
Slide 14: Well Capitalized Balance Sheet
Well Capitalized Balance Sheet Main priority for the use of capital today is to support key growth initiatives Q3’23 BRIDGE TO TOTAL CAPITAL DISCIPLINED CAPITAL ALLOCATION ($ in millions) $6,347 • Our top priority is to allocate capital to $1,313 support profitable growth in our specialty businesses
Slide 15: Diversified Investment Portfolio
Diversified Investment Portfolio Conservative investment portfolio earning attractive market yields WELL DIVERSIFIED PORTFOLIO INVESTED INVESTMENT PORTFOLIO BY ASSET CLASS(2) PRIMARY IN HIGHLY RATED BONDS (% of total cash and investments) • $16.1 billion total cash and invested assets, of which 84.9
Slide 16: Reportable Segments
Reportable Segments 16
Slide 17: Insurance Overview
Insurance Overview INSURANCE GPW BY LINE OF BUSINESS SEGMENT HIGHLIGHTS For the 12 months ended 09/30/2023 • Diversified portfolio of global specialty business positioned to deliver consistent underwriting profit, minimizing Credit and volatility Accident and Political Risk Health • Strong leadershi
Slide 18: Accelerating Specialty Insurance Growth
Accelerating Specialty Insurance Growth INSURANCE GPW AND COMBINED RATIO Segment Combined Ratio ($ in millions) 125.0% $5,586 $4,863 $4,018 $4,557 110.0% $3,676 $4,115 110.4% 95.0% 91.6% 91.2% 98.1% 89.6% 87.3% 80.0% (1) FY2019 FY2020 FY2021 FY2022 YTD2022 YTD2023 GROWTH UNDERPINNED • Leaning into s
Slide 19: Reinsurance Overview
Reinsurance Overview REINSURANCE GPW BY LINE OF BUSINESS SEGMENT HIGHLIGHTS For the 12 months ended 09/30/2023 Marine and • AXIS Re is a specialty reinsurer focused on Aviation Runoff Lines profitability in our selected lines of business Agriculture 3% 3% Liability • Focused on selective growth lean
Slide 20: Complementing Our Specialty Insurance Book
Complementing Our Specialty Insurance Book (1) Ex-Property Cat Re Combined Ratio for: REINSURANCE GPW AND COMBINED RATIO All lines, as reported ($ in millions) 125.0% $3,224 $2,809 $2,823 $2,630 110.0% $2,341 103.8% 101.2% $2,015 99.0% 99.1% 99.1% 96.6% 95.0% 99.4% 100.2% 99.0% 96.5% 92.5% 80.0% (2)
Slide 21: Exemplary Culture & Corporate Citizenship
Exemplary Culture & Corporate Citizenship 21
Slide 22: Connecting Our Business Purpose to Corporate Citizenship
Connecting Our Business Purpose to Corporate Citizenship FOSTERING BELONGING PROTECTING THE PLANET RECENT AWARDS Diversity, Equity & Inclusion (DEI) Environment and Sustainability AND RECOGNITIONS Implementing DEI plan with five key Commitment to being a leading action areas: internal education, pro
Slide 23: Appendix
Appendix 23
Slide 24: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation Operating Income and Annualized Operating Return on Average Common Equity a. Tax expense (benefit) of ($4,318) and ($608) for the three months ended September 30, 2023 and 2022, respectively, and ($8,198) and ($33,519) for the nine months ended September 30
Slide 25: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation Consolidated Underwriting Income For the three months ended September 30, 2022 and 2023 [a] [b] a. Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in SEC Regulation G. The reconciliation to general and adm
Slide 26: 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 agencies and others who use our financial information to evaluate our performance. Some of the measurements we use are considered non-GAAP fina
Slide 27: Rationale for use of Non-GAAP Measures
Rationale for use of Non-GAAP Measures Underwriting-Related General and Administrative Expenses Underwriting-related general and administrative expenses include those general and administrative expenses that are incremental and/or directly attributable to our underwriting operations. While this meas
Slide 28: Investor Inquiries
Investor Inquiries investorrelations@axiscapital.com 2814
AXIS Capital Holdings — Q3 2023 Earnings Presentation on 6ix