Axis Capital Holdings Limited · NYSE:AXS
Axis Capital — Non-Deal Roadshow (August 2019)
19 slides from Axis Capital's roadshow presentation, Aug 6, 2019
Slide 1: Investor Meetings August/September 2019
Investor Meetings August/September 2019
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: 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 $5.4 Billion Gross Premium Written $6.9 Billion Leading Global Underwriter - E&S P&C - Lloyd’s - U.S. Pro Lines - Global Reinsura
Slide 4: Target Leadership in Global Specialty Risks
Target Leadership in Global 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 o
Slide 5: AXIS Transformation
AXIS Transformation In the past five years, we’ve implemented significant change initiatives – and we accelerated those efforts in 2019 Transform our business to strengthen operations, deliver efficiencies and invest in critical strategic capabilities Focus on increasing relevance and achieving mark
Slide 6: A Defensible Franchise
A Defensible Franchise Successfully transformed AXIS into a leading specialty insurer and global reinsurer • Leading carrier in key markets exhibiting strongest pricing and growth opportunities • Top 15 Reinsurer (#11), top 10 in E&S Property, E&S Casualty and Lloyd’s • Top 10 in Professional Lines
Slide 7: Investor Snapshot: 2Q19 Financial Highlights
Investor Snapshot: 2Q19 Financial Highlights 1 2Q19 Highlights • 2Q19 GWP totaled ~$1.7 billion, ~flat YoY, driven by strategic growth underpinned by disciplined underwriting • 2Q19 accident year (AY) loss ratio ex - cats improved 180bps YoY to 59.7% • Insurance segment AY loss ratio ex - cats up 15
Slide 8: Pricing Improvements Accelerate in 2Q19
• Improvement in priced premium written in prior periods contributed to ~50 basis points of improvement in loss ratio for premiums earned in 1H19 • Insurance: • Average rate increases of >7% for 2Q19 • Achieving double digit rate increases in numerous Property and Marine lines • Achieving double dig
Slide 9: Underwriting Actions Drive Performance
79.2% 66.6% 59.2% 63.7% 61.7% 59.3% 50% 55% 60% 65% 70% 75% 80% FY2017 FY2018 1H19 FY2017 FY2018 1H19 Reported Loss Ratio AY Ex - Cat Loss Ratio Underwriting Actions Drive Performance 9 Loss Ratio Improvement • Loss ratio improvement driven by: • Improved mix of business as well as acceleration of i
Slide 10: Growth In Strategic Capital Partnerships Continues
Growth In Strategic Capital Partnerships Continues Strategic Capital Partners Fee Income (1) Strategic Capital Partners AUM Growth Premium Ceded to Strategic Capital Partners ($ in millions) $6.3 $8.5 $21.8 $36.0 $48.0 $24.4 $39.0 2014 2015 2016 2017 2018 1H18 1H19 $778 $489 $304 $105 $49 2018 2017
Slide 11: Actively Reducing Cat Volatility
2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 AXS 1 - in - 250 Global Aggr
Slide 12: Cat Covers: Improved Capital & Earnings Protection
Cat Covers: Improved Capital & Earnings Protection 12 Southeast Wind PMLs 1 2019 Catastrophe Tower Highlights ($ in millions) $300 $400 $500 $600 $700 $800 $900 $1,000 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 1 in 50 1 in 100 1 in 250 • The 1 in 250 year PML for Southeast Wind was reduced by 30%+ since 1Q18 wi
Slide 13: Enterprise PMLs Have Reduced Across the Curve
Enterprise PML’s Have Reduced Across the Curve July 2016 July 2017 July 2018 July 2019 AXIS' PMLs Have Reduced Across the Distribution 1 in 10 1 in 20 1 in 50 1 in 100 36% Reduction at 1 in 100 PML 31% Reduction at 1 in 50 PML 21% Reduction at 1 in 20 PML 11% Reduction at 1 in 10 PML AXIS has reduce
Slide 14: 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 15: Our Purpose, Strategic Vision and Values
Our Purpose, Strategic Vision and Values 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 of i
Slide 16: 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 17: Appendix I – Non-GAAP Financial Measures
Appendix I – Non - GAAP Financial Measures We present our results of operations in the way we believe will be most 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 n
Slide 18: Appendix I – Non-GAAP Financial Measures
Appendix I – Non - GAAP Financial Measures We believe that showing net income (loss) available (attributable) to common shareholders exclusive of after - tax net investment gains (losses), foreign exchange (losses) gains, transaction and reorganization expenses, and interest in income (loss) of equi
Slide 19: Appendix II – Non-GAAP Reconciliations
Appendix II – Non - GAAP Reconciliations
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