Axis Capital Holdings Limited · NYSE:AXS
Axis Capital — Q4 2021 Earnings Presentation
17 slides from Axis Capital's earnings presentation, Jan 27, 2022
Slide 1: Investor Meetings Post 4Q21 Reported Results
Investor Meetings Post 4Q21 Reported Results
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 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 distributi
Slide 4: Leading Specialty Insurer and Global Reinsurer
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP CONCLUSION APPENDIX LEADING SPECIALTY INSURER AND GLOBAL REINSURER Total FY2021 GPW: $7.7 billion We provide our clients and distribution partners with Insurance 63% a broad range of risk transfer products and services, meaningful capacity and s
Slide 5: AXIS: A Profitable Growth Engine
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP CONCLUSION APPENDIX AXIS: A PROFITABLE GROWTH ENGINE CONSISTENT MARGIN IMPROVEMENT STRONG MARKET POSITION Disciplined portfolio management should continue to The AXIS insurance portfolio is in markets seeing strong rate drive improvements in und
Slide 6: Pricing Momentum Continues
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP CONCLUSION APPENDIX PRICING MOMENTUM CONTINUES Insurance: Cumulative Insurance Rate Improvements • Double digit rate increases continue • 17th consecutive quarter of rate increases 70% • Average rate increases of ~14%; 7th consecutive quarter of
Slide 7: Accelerating Profitable Insurance Growth
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP 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 $1,400 $1,315 Milli
Slide 8: Consistent Execution Delivers Results
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP 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 Combined Ra
Slide 9: Group: Underwriting Actions Drive Improving Performance
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP CONCLUSION APPENDIX GROUP: UNDERWRITING ACTIONS DRIVE IMPROVING PERFORMANCE Group Ex-Cat AY Loss Ratio 65% 60.6% 60% 57.7% 55.1% 55% 50% FY2019 FY2020 FY2021 Loss ratio im provem ent driven by: • One Axis Portfolio Management: Enhanced portfolio
Slide 10: Insurance Segment: Underlying Loss Ratio Improvement
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP CONCLUSION APPENDIX INSURANCE SEGMENT: UNDERLYING LOSS RATIO IMPROVEMENT Insurance Ex-Cat AY Loss Ratio 60% 57.0% 55.1% 2.3% 55% 0.7% 51.4% 50% 54.7% 54.4% 51.4% 45% 40% FY2019 FY2020 FY2021 1 Continuing Lines Ex-Cat AY Loss Ratio Exited Lines I
Slide 11: Reinsurance Segment: Underlying Loss Ratio Improvement
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP CONCLUSION APPENDIX REINSURANCE SEGMENT: UNDERLYING LOSS RATIO IMPROVEMENT Reinsurance Ex-Cat AY Loss Ratio 67% 64.0% 63% 60.6% 59.9% 59% 55% FY2019 FY2020 FY2021 Portfolio Changes Driving Im proving Loss Ratios: • 4.1 points of underlying m arg
Slide 12: Disciplined Reduction of Cat Exposure Across Entire Curve
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP CONCLUSION APPENDIX DISCIPLINED REDUCTION OF CAT EXPOSURE ACROSS ENTIRE CURVE Southeast Hurricane PML Reductions1 Earnings Protection Capital Protection 1 in 5 1 in 10 1 in 20 1 in 50 1 in 100 1 in 250 July 1 2019 July 1 2020 July 1 2021 Jan 1 2
Slide 13: ROE Accretive Capital Partnerships
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP CONCLUSION APPENDIX ROE ACCRETIVE CAPITAL PARTNERSHIPS Capital Partners Providing Risk Capacity3 Strategic Capital Partners Fee Income1 $2.5bn ($ in millions) $80.3 $2.0bn Risk Capacity ($bn) $73.2 $1.5bn $1.0bn $60.5 $0.5bn $48.0 $0.0bn 2015 20
Slide 14: Focus Areas for Progress
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP CONCLUSION APPENDIX FOCUS AREAS FOR PROGRESS In the past five years, AXIS has implemented significant change to its platform and portfolios IMPROVEMENT TARGETS2 DELIVERING RESULTS KEY DRIVERS OF RECENT PROGRESS VS. FY21 FY21 VS. FY20 • Sustained
Slide 15: Furthering Our Commitment to ESG
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP CONCLUSION APPENDIX FURTHERING OUR COMMITMENT TO ESG In 2018, AXIS launched a formalized program to address Environmental, Social and Governance (“ESG”) factors, w ith environment and diversity & inclusion as our core focus areas. Since then, th
Slide 16: Conclusion
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP CONCLUSION APPENDIX CONCLUSION Strong Finish to 2021 with more progress to come in 2022 Underwriting margin improvement should continue given ongoing portfolio improvements and firm pricing Enhanced use of reinsurance, retro and third-party capi
Slide 17: Appendix I
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP CONCLUSION APPENDIX APPENDIX I (1) Note: On October 2, 2017, w e acquired Novae Gr oup plc (“Nov ae”). At the ac quisiti on date, w e identifi ed val ue of busi nes s acquired (“VOBA”) whic h r epres ents the pres ent v alue of the expected unde
AXIS Capital Holdings — Q4 2021 Earnings Presentation on 6ix