Axis Capital Holdings Limited · NYSE:AXS
Axis Capital — Non-Deal Roadshow (February 2020)
20 slides from Axis Capital's roadshow presentation, Feb 12, 2020
Slide 1: Investor Meetings February/March 2020
Investor Meetings February/March 2020
Slide 2: Safe Harbor Statement
Safe Harbor Statement FORWARD - LOOKING STATEMENTS: This document 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 facts included in this
Slide 3: Vision: Global Leadership in Specialty Risks
Vision: Global Leadership in Specialty Risks Targeting 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
Slide 4: AXIS Capital at a Glance
Pro Lines Property Liability Marine A&H/Other Aviation Credit & Political Risk Terrorism AXIS Capital at a Glance 1 Exchange / Ticker NYSE / “AXS” Market Capitalization 1 $5.5 Billion Gross Premium Written $6.9 Billion Leading Global Underwriter - E&S P&C - Lloyd’s - U.S. Pro Lines - Global Reinsura
Slide 5: A Foundation for Profitable Growth
A Foundation for Profitable Growth Well - positioned in the markets exhibiting the strongest pricing and growth opportunities • Top 15 Reinsurer (#11), top 10 in E&S Property, E&S Casualty and Lloyd’s, Professional Lines • Focused approach with Top 10 or better leadership positions across many speci
Slide 6: Pricing momentum expected to continue
• Pricing momentum expected to continue through FY2020 and possibly further • A number of lines need additional rate to reach adequate levels • Industry issues such as lower levels of favorable development, low interest rates and social inflation should drive further pricing improvements throughout
Slide 7: Platform for Profitable Growth
• Profitable Growth • Grew core lines of business where AXIS has the underwriting expertise, market relevance and platform to drive sustainable profitable growth • Lines such as Cyber and Renewable Energy continue to provide opportunities for profitable growth among others • With broader pricing mom
Slide 8: Underwriting Actions Drive Underlying Performance
Underwriting Actions Drive Underlying Performance 7 Group Loss Ratio Improvement Loss ratio improvement driven by: • Enhanced pricing, improved terms/conditions and lower limits drive improved loss ratios coupled with greater stability • Portfolio construction coupled with improved mix of business 7
Slide 9: Insurance Segment: Underlying Loss Ratio Improvement
58.0% 56.0% 54.7% 3.3% 2.5% 2.3% 40% 44% 48% 52% 56% 60% 64% 2017 2018 2019 Continuing Lines Ex-cat AY Loss Ratio Exited Lines Impact 58.5% 57.0% Insurance Segment: Underlying Loss Ratio Improvement 8 Portfolio Changes Driving Improved Loss Ratios: • Property lines reduced while Liability lines grew
Slide 10: Reinsurance Segment: Underlying Loss Ratio Improvement
65.6% 64.8% 64.0% 62% 63% 64% 65% 66% 2017 2018 2019 Ex-cat AY Loss Ratio Reinsurance Segment: Underlying Loss Ratio Improvement 9 Portfolio Changes Starting to Produce: • Pricing momentum expected through the remainder of 2020 coupled with continued underwriting improvements • Disciplined underwrit
Slide 11: Focused Expense Management
Focused Expense Management 10 Focused Expense Management: • Enhanced broader operating model to achieve $100 million in net savings by end of 2020 • $70 million of $100 million cost savings target achieved • $30 million expected in 2020 • Systematically leveraging data and technology to deliver incr
Slide 12: Managing Cat Exposure to Reduce Volatility and Enhance Capital Efficiency
Managing Cat Exposure to Reduce Volatility and Enhance Capital Efficiency Southeast Wind Single Event PMLs 1 2019 Catastrophe Tower Highlights ($ in millions) $200 $300 $400 $500 $600 $700 $800 $900 $1,000 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1 in 50 1 in 100 1 in 250 • The 1 in 250 year PML for
Slide 13: PMLs Have Reduced Across the Curve
PMLs Have Reduced Across the Curve AXIS has reduced its catastrophe exposure across the distribution 12 $300M $500M $700M $900M $1,100M $1,300M $1,500M July 2017 July 2018 July 2019 January 2020 PML Reduction Across The Curve 1 1 in 5 1 in 10 1 in 20 1 in 50 1 in 100 1 in 250 15% Reduction at 1 in 5
Slide 14: AXIS is a Growing Manager of Third Party Capital
AXIS is a Growing Manager of Third Party Capital Strategic Capital Partners Fee Income 1 Strategic Capital Partners AUM Growth Premium Ceded to Strategic Capital Partners 2 ($ in millions) ($ in millions) $1,003 $778 $489 $304 $105 $49 2019 2018 2017 2016 2015 2014 (1) Additional disclosures regardi
Slide 15: More Efficient Capital Structure
14 More Efficient Capital Structure Current and Historical Capitalization ($ in millions) (1) Eliminated on an adjusted basis due to maturity in April 2019; pre - funded with November 2017 offering of 4.00% senior notes due 2027 (2) Shown pro - forma for amounts prefunded with new issuance • Lowered
Slide 16: Key Drivers of Recent Progress
Key Drivers of Recent Progress 1 Cat Loss Ratio: Improved 12.9 points Acquisition Ratio: 22.3% in FY2019 G&A Expense Ratio: Flat at 13.9% GPW Growth: ~10%, Ex - Novae Achieving Progress Across the Platform In the past five years, AXIS has implemented significant change to its platform and portfolios
Slide 17: Corporate Social Responsibility at AXIS
Corporate Social Responsibility at AXIS Philanthropy – supporting charitable causes that align with our values Diversity & Inclusion – implementing practices to enhance D&I within our Company as well as the larger profession Corporate Purpose: Living our values, giving back to our communities, and c
Slide 18: Our Purpose, Strategic Vision and Values
Our Purpose, Strategic Vision and Values 17 Our Purpose ( who we are ) Our Strategic Vision ( what we do ) Our Values ( how we do it ) We are One AXIS. We build positive energy and a collaborative environment where diversity of teams and perspectives is respected and valued. We insist on a culture o
Slide 19: Conclusion
Conclusion AXIS is a leading specialty insurer and global reinsurer Strong franchise with superior position in chosen specialty markets to maximize benefits of current pricing momentum Pace of underwriting margin improvement should accelerate given ongoing portfolio improvements and acceleration in
Slide 20: AXIS
AXIS
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