Axis Capital Holdings Limited · NYSE:AXS
Axis Capital — Q1 2023 Earnings Presentation
25 slides from Axis Capital's earnings presentation, Apr 27, 2023
Slide 1: Investor Presentation 2023 First Quarter
Investor Presentation 2023 First Quarter AXIS Capital
Slide 2: Safe Harbor Statement
Safe Harbor Statement CAUTIONARY NOTE REGARDING 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 fac
Slide 3: AXIS Overview & Financial Highlights
AXIS Overview & Financial Highlights AXIS Capital
Slide 4: Advancing Global Leadership in Specialty Risk
Advancing Global Leadership in Specialty Risk AXIS is continuing to evolve our business to increase profitability, lower volatility, and strengthen the portfolio, establishing a strong position in the fastest growing specialty markets AXIS Strengths Diversified Risk Strong Reputation for Leveraging
Slide 5: Long-Term Financial Strategy
Long-Term Financial Strategy Invest in Sustained Momentum Continue to build on our momentum, invest in growth opportunities to drive further profitable growth and enhance the value we provide to our customers and shareholders Increase Efficiency & Expense Management Ongoing focus on expense control
Slide 6: AXIS at a Glance
AXIS at a Glance Annualized ROACE Market Gross Premiums Mix of Business by GPW(3) Capitalization(1) 16.2% Written(3) $4.8 Annualized Operating ROACE(2) $8.0 29% Billion 18.8% Billion $8.0b 2,000+ “AXS” Shares Listed Represented in 18 on the NYSE Stock 71% Exchange Since Employees 2003 Offices Worldw
Slide 7: The AXIS Journey
The AXIS Journey AXIS today is a high-performing global specialty underwriter and provider of insurance and reinsurance solutions, vastly different from the Company it was five years ago 2023 and Beyond Recognized specialty 2022 AXIS Re Transformation Exit from insurance leader with a resilient and
Slide 8: Our Business Today
Our Business Today Strong Market Consistent Margin Pricing Momentum Invested in Positioned for Position Improvement Growth Areas Profitable Growth • The AXIS portfolio is • Disciplined portfolio • Both underwriting • Further investment in • Reduced volatility to well-positioned in management has seg
Slide 9: Diversified Specialty Portfolio
Diversified Specialty Portfolio GPW by line of business ($ in billions, 12 months ended in 3/31/23) Credit and Total GPW by segment Accident Political Risk & Health Professional ($ in billions, 12 months ended in 3/31/23) Lines Marine & Reinsurance Aviation 5% 4% 22% 12% Insurance Cyber 12% $5.7 29%
Slide 10: Strengthening Underwriting Performance
Strengthening Underwriting Performance Margin improvements driven by disciplined underwriting and ongoing focus on improving G&A ratios Combined Ratio for: GPW vs Combined Ratio (1) ($’s in millions) Ex-Property Cat Re All Lines, as reported 125.0% $8,215 $7,686 $6,899 $6,827 109.6% 110.0% 102.6% 10
Slide 11: Disciplined Reduction of Catastrophe Exposure
Disciplined Reduction of Catastrophe Exposure Exit from Reinsurance Catastrophe and Property business in 2022 has continued to lower earnings volatility experienced in recent years as part of overall approach to reduce exposure to catastrophe risk Southeast Hurricane PML Reductions(1) ($ in millions
Slide 12: Balanced and Resilient Investment Portfolio
Balanced and Resilient Investment Portfolio Investment Portfolio by Asset Class(1) (% of total cash and investments) Well diversified portfolio invested primarily in highly rated bonds Fixed Maturities 77.3% • Total cash and invested assets:(1) $16.0 billion Cash and Cash Equivalents 7.4% • Average
Slide 13: Connecting Our Business Purpose to Corporate Citizenship
Connecting Our Business Purpose to Corporate Citizenship We help people and organizations around the world to manage risk, giving them the confidence to pursue their goals and ambitions. Our Corporate Citizenship program is Recent awards and recognitions one of many ways we advance this purpose Fost
Slide 14: Well Positioned for 2023 and Beyond
Well Positioned for 2023 and Beyond AXIS is executing a multi-year transformation positioning itself as a leading specialty underwriter in our chosen markets Market positioning, size Focused on specialty Underwriting margin and scale to compete insurance lines with driven by strong core effectively
Slide 15: Reportable Segments
Reportable Segments AXIS Capital
Slide 16: Insurance Overview
Insurance Overview We generated record premium production with $5.7 billion of gross premiums for the 12 months ended on March 31, 2023, making up 71% of our consolidated writings. Well-diversified, attractive portfolio of global specialty business with strong, profitable results • Meaningful improv
Slide 17: Insurance Financial Highlights
Insurance Financial Highlights Insurance First Quarter 2023 GPW for the 12 months ended 3/31/23 Credit and Operating highlights, and changes from the prior year Accident Political Risk quarter, for the quarter ended March 31, 2023, include the and Health following: Professional Lines • Gross premium
Slide 18: Accelerating Insurance Growth
Accelerating Insurance Growth Insurance Segment GPW vs Combined Ratio ($’s in millions) Segment Combined Ratio: 125.0% $5,586 $4,863 $4,018 110.0% $3,676 110.4% 95.0% $1,327 $1,416 98.1% 91.6% 89.6% 87.5% 87.3% 80.0% FY2019 FY2020 FY2021 FY2022 Q1 2022 Q1 2023 Growth Underpinned • Growing in lines o
Slide 19: Reinsurance Overview
Reinsurance Overview In 2022 AXIS Re completed a multi-year transformation to reposition itself as a resilient specialty reinsurance business Refocused as specialty reinsurer • Exited from Catastrophe and Property lines to further reduce volatility leading to a decrease in topline gross premiums wri
Slide 20: Reinsurance Financial Highlights
Reinsurance Financial Highlights Reinsurance First Quarter 2023 GPW for the 12 months ended 3/31/23 Operating highlights, and changes from the prior year Runoff quarter, for the quarter ended March 31, 2023, include the Marine and Lines following: Aviation • Gross premiums written: $967 million, dec
Slide 21: Complementing our Specialty Insurance Book
Complementing our Specialty Insurance Book Combined Ratio for: (1) Ex-Property Cat Re Reinsurance Segment GPW vs Combined Ratio ($’s in millions) All Lines, as reported 110.0% 104.8% 103.8% 100.5% 101.2% 99.0% 99.1% 95.0% 99.4% 100.2% 92.5% 91.4% 96.5% $3,224 $1,307 $2,809 $2,823 $2,630 $966 80.0% 6
Slide 22: Appendix
Appendix AXIS Capital AXIS?
Slide 23: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation Operating Income and Annualized Operating Return on Average Common Equity 23
Slide 24: Rationale for the use of Non-GAAP Financial Measures
Rationale for the use of Non-GAAP Financial 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
Slide 25: Investor Inquires
Investor Inquires Miranda Hunter Head of Investor Relations 441 405 2635 investorrelations@axiscapital.com 25
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