Axis Capital Holdings Limited · NYSE:AXS
Axis Capital — Q2 2022 Earnings Presentation
16 slides from Axis Capital's earnings presentation, Jul 27, 2022
Slide 1: Investor Presentation: Post 2Q22 Reported Results
Investor Presentation Post 2Q22 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: A Leading Specialty Insurer with a Niche Specialty Reinsurer
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP CONCLUSION APPENDIX A LEADING SPECIALTY INSURER WITH A NICHE SPECIALTY 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
Slide 5: A Leading Specialty Insurer with a Niche Specialty Reinsurer
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP CONCLUSION APPENDIX A LEADING SPECIALTY INSURER WITH A NICHE SPECIALTY REINSURER STRONG MARKET POSITION CONSISTENT MARGIN IMPROVEMENT The AXIS insurance portfolio is in the most attractive growth Disciplined portfolio management has provided mar
Slide 6: Pricing Momentum Continues
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP CONCLUSION APPENDIX PRICING MOMENTUM CONTINUES Strong Insurance rate increases continue and remain comfortably ahead Cumulative Insurance Rate Improvements1 of net loss trend 80% • 19th consecutive quarter of rate increases • Average rate increa
Slide 7: Accelerating Profitable Insurance Growth
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP CONCLUSION APPENDIX ACCELERATING PROFITABLE INSURANCE GROWTH Strong market positioning and underwriting talent have driven strong growth in an increasingly profitable market Insurance Segment GPW Targeting Profitable Growth $1,500 $1,470 Million
Slide 8: Group: Consistent Execution Delivers Results
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP CONCLUSION APPENDIX GROUP: 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 Comb
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% 63.7% 61.7% 60.6% 60% 57.7% 55.1% 55.4% 55% 54.7% 50% FY2017 FY2018 FY2019 FY2020 FY2021 6M21 6MQ22 Loss ratio improvement driven by: • On
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 65% 61.3% 60% 58.5% 3.6% 57.0% 2.6% 2.3% 55.1% 55% 0.7% 52.1% 51.4% 51.0% 57.7% 50% 55.9% 54.7% 54.4% 51.4% 52.1% 51.0% 45% FY 2017 FY 2018 F
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% 65.6% 64.8% 64.0% 63% 60.6% 60.3% 59.9% 59.5% 59% 55% FY2017 FY2018 FY2019 FY2020 FY2021 6M21 6M22 Portfolio Changes Driving Improvin
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 Earnings Protection Capital Protection Portfolio changes driving PML reductions across the curve: • ~25% reductions in the property/cat book at 1/1/22 are followed at
Slide 13: 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 TARGETS 2 DELIVERING RESULTS KEY DRIVERS OF RECENT PROGRESS VS. FY21 FY21 VS. FY20 • Strong p
Slide 14: 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, with environment and diversity, equity & inclusion (DE&I) as our core focus areas.
Slide 15: Conclusion
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP CONCLUSION APPENDIX CONCLUSION Successfully executed a multi-year transformation positioning Axis as a profitable specialty underwriter Underwriting margin to continue driven by strong core performance and continued favorable pricing environment
Slide 16: Appendix I
STRATEGY FINANCIAL STRENGTH PROGRESS ESG & CITIZENSHIP CONCLUSION APPENDIX APPENDIX I (1) Note: On October 2, 2017, we acquired Novae Group plc (“Novae”). At the acquisition date, we identified value of business acquired (“VOBA”) which represents the present value of the expected underwriting profit
AXIS Capital Holdings — Q2 2022 Earnings Presentation on 6ix