Axis Capital Holdings Limited · NYSE:AXS
Axis Capital — Non-Deal Roadshow (August 2018)
20 slides from Axis Capital's roadshow presentation, Aug 9, 2018
Slide 1: Investor Meetings August 2018
Investor Meetings August 2018
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements in this presentation that are not historical facts, including statements regarding our estimates, beliefs, expecta tio ns, intentions, strategies or projections, may be “forward - looking statements” within the meaning of the U.S. federal securities laws, including t
Slide 3: Consistent Commitment to Our Strategy
Target leadership in global Specialty Risks Top - quintile profitability with industry average volatility Hybrid model – Insurance & Reinsurance Franchise anchored in leadership positions in key markets and distribution relationships Strong relationships with distributors & clients based on expertis
Slide 4: A Leading Global Underwriter
Pro Lines Property Liability Marine A&H/Other Aviation Credit & Political Risk Terrorism A Leading Global Underwriter Market data as of 8/7/18. (1) 2017 GPW pro forma for recent acquisition of Novae as if acquisition closed 12/31/16. Novae GPW for first 9 months of 2017 co nve rted at 1.28x GBP:USD.
Slide 5: Investor Snapshot: AXIS' Profitable Growth Story
Investor Snapshot: AXIS’ Profitable Growth Story 2Q18 Operating Highlights • Insurance pricing up ~4.5% YTD across all lines; Pricing up double digits in E&S Property & Excess Casualty • 2Q18 GWP grew 21% YoY with the addition of the Novae book and focus on lines of business that are core franchises
Slide 6: Attractive Valuation Relative to Peers
Attractive Valuation Relative to Peers 6 Price to Book vs 2Q18 Annualized ROE 1 AXS 0.5x 1.0x 1.5x 2.0x 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 2Q18 Price - to - Book 2Q18 Annualized Operating ROE 2 (1) Select peer group includes AHL, ACGL, RE, AFG, AIG, CB, TRV, MKL and WRB (2)
Slide 7: Active Portfolio Management
Active Portfolio Management 7 $2,559 $2,535 $2,368 $2,432 $2,815 $2,138 $2,176 $2,236 $2,538 $2,741 $4,697 $4,712 $4,604 $4,970 $5,556 $0 $750 $1,500 $2,250 $3,000 $3,750 $4,500 $5,250 $6,000 2013 2014 2015 2016 2017 Insurance Reinsurance Legacy AXS GWP Mix 1 Proactive Approach to Disciplined Underw
Slide 8: Pursuing Growth in Specialty Lines
$732 $558 $652 $876 $761 $982 $2,145 $2,417 2013 1Q'18 (LTM) Specialty Short/Med Tail Motor, Professional and General Liability 8 $462 $775 $403 $804 $697 $760 $1,562 $2,340 2013 1Q'18 (LTM) Property Specialty Short Tail Professional and General Liability Major initiatives Major initiatives CAGR: 2.
Slide 9: Recent Actions Driving Margin Improvement
Recent Actions Driving Margin Improvement FY 2017 “As if” (1) Less: Discontinued Lines (2) Pro Forma 2017 Continuing Lines GPW $6,567 $192 $6,376 NPE $4,751 $195 $4,556 Combined Ratio 111.7% 158.2% 109.8% AY Ex. Cat Combined Ratio 96.8% 120.7% 95.7% ($ in millions) (1) Figures are pro forma for rece
Slide 10: Operating Results Excluding PGAAP Show True Earnings Power of AXIS
Operating Results Excluding PGAAP Show True Earnings Power of AXIS 10 Operating EPS, Excluding PGAAP Walk • 2Q18 Operating EPS Ex - PGAAP of $1.43 grew 9.2% as compared $1.31 per share in the prior year quarter • 2Q18 Earnings excluding PGAAP adjustments equates to a 10.7% ROE; YTD Ex - PGAAP ROE of
Slide 11: Novae Acquisition: VOBA & DAC Amortization
$50.1 $171.1 $26.7 $5.1 $3.9 – – $256.9 4Q17 2018 2019 2020 2021 2022 2023+ Total Novae Acquisition: VOBA & DAC Amortization 11 VOBA Amortization Schedule ($ in millions) • In accordance with Purchase Accounting rules AXIS reports amortization of VOBA at the group level • One - time write - off of D
Slide 12: Growing Strategic Capital Partnerships
Growing Strategic Capital Partnerships 12 Common Equity $4.5 Preferred Equity $0.8 Debt $1.4 Third Party Capital $1.9 Total Managed Capital: $8.6bn Strategic Capital Partners Fee Income (1) Total Managed Capital Premium Ceded to Strategic Capital Partners ($ in billions) ($ in millions) ($ in millio
Slide 13: Improved Capital & Earnings Protection
Improved Capital & Earnings Protection 13 Southeast Wind PMLs 2018 Catastrophe Tower Highlights ($ in millions) $531 $530 $430 $485 $495 $680 $675 $848 $919 $671 2Q17 3Q17 4Q17 1Q18 2Q18 1 in 100 1 in 250 Novae Acquisition • The 1 in 250 year PML for Southeast Wind was reduced 27% sequentially and 2
Slide 14: Delivering Excellent Shareholder Value Creation
$13.90 $16.88 $19.93 $19.58 $25.31 $31.33 $29.08 $37.75 $44.33 $43.97 $49.83 $53.68 $59.61 $64.28 $69.90 $67.04 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Diluted BVPS Accumulated Dividends Declared Since 2002 Delivering Excellent Shareholder Value Creation (1) D
Slide 15: Conclusion
Conclusion Transformed AXIS into a relevant player in core specialty markets Superior attributes deliver more defensible market position Substantial progress in transitioning portfolio for greater balance and profitability, with lower volatility Actions already taken will lead to stronger performanc
Slide 16: Appendix – Reconciliations
Appendix – Non - GAAP Reconciliations
Slide 17: Appendix – Reconciliations
Appendix – Non - GAAP Reconciliations
Slide 18: Appendix – Reconciliations
Appendix – Non - GAAP Reconciliations
Slide 19: Appendix – Reconciliations
Appendix – Non - GAAP Reconciliations
Slide 20: Appendix – Reconciliations
Appendix – Non - GAAP Reconciliations
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