Axis Capital Holdings Limited · NYSE:AXS
Axis Capital — Investor Presentation (September 2022)
16 slides from Axis Capital's investor presentation, Sep 8, 2022
Slide 1: Investor Presentation Post 2Q22 Reported Results
Investor Presentation Post 2Q22 Reported Results
Slide 2: Safe Harbor Statement: Cautionary Note Regarding Forward-Looking Statements
SAFE HARBOR STATEMENT CAUTIONARY NOTE REGARDING FORWARD - LOOKING STATEMENTS This presentation contains forward - looking statements within the meaning of section 27 A of the Securities Act of 1933 and section 21 E of the Securities Exchange Act of 1934 . All statements, other than statements of his
Slide 3: Vision: Global Leadership in Specialty Risks
Vision: Global Leadership in Specialty Risks Targeting top - quintile profitability with industry average volatility Franchise anchored in leadership positions in key markets and distribution relationships Selective participation in attractive insurance and reinsurance markets Strong relationships w
Slide 4: A Leading Specialty Insurer with a Niche Specialty Reinsurer
A LEADING SPECIALTY INSURER WITH A NICHE SPECIALTY REINSURER We provide our clients and distribution partners with a broad range of risk transfer products and services, meaningful capacity and solid financial strength (1) Market data as of 8/30/22; GPW data as of YE 2021; $0.43 quarterly dividend an
Slide 5: Consistent Margin Improvement, Strong Market Position, Pricing Momentum
A LEADING SPECIALTY INSURER WITH A NICHE SPECIALTY REINSURER CONSISTENT MARGIN IMPROVEMENT Disciplined portfolio management has provided continued improvements in underlying results; Expect all - in Group combined ratio to continue to improve. Net investment income expected to grow from current leve
Slide 6: Strong Insurance rate increases continue and remain ahead of net loss trend
Strong Insurance rate increases continue and remain comfortably ahead of net loss trend • 19 th consecutive quarter of rate increases • Average rate increase of nearly 10% over and above exposure trend • Rate increases over 7% in Property, Liability and Aviation • Cyber 2 rate increases remain in th
Slide 7: Accelerating Profitable Insurance Growth
ACCELERATING PROFITABLE INSURANCE GROWTH Strong market positioning and underwriting talent have driven strong growth in an increasingly profitable market Millions $ 9 4 1 $ 1, 03 8 $936 $ 1, 10 4 $ 1, 10 3 $1,269 $ 1, 17 7 $ 1, 31 5 $ 1, 32 7 $ 9 0 0 $ 8 0 0 $ 7 0 0 $ 1 , 0 00 $ 1 , 1 00 $ 1 , 2 00
Slide 8: Group: Consistent Execution Delivers Results
98 . 3 % 97 .6 % 9 7 . 1 % 92.2% 88.7% 89 . 0 % 87 . 8 % 8 0 . 0 % 8 5 . 0 % 9 0 . 0 % 9 5 . 0 % 100 . 0 % FY 2017 FY 2018 FY 2019 FY 2020 6M 2022 FY 2021 6M 2021 Ex - Cat AY Combined Ratio GROUP: CONSISTENT EXECUTION DELIVERS RESULTS AXIS has positioned itself to excel in the current firming P&C ma
Slide 9: Group: Underwriting Actions Drive Improving Performance
GROUP: UNDERWRITING ACTIONS DRIVE IMPROVING PERFORMANCE Loss ratio improvement driven by: • One AXIS Portfolio Management: Enhanced portfolio construction coupled with improved mix of business • Improved underwriting and operating leverage • Enhanced pricing, improved terms/conditions and lower limi
Slide 10: Insurance Segment: Underlying Loss Ratio Improvement
INSURANCE SEGMENT: UNDERLYING LOSS RATIO IMPROVEMENT ( 1 ) Exited Lines includes those insurance lines of business that AXIS exited or placed into run - off in 2019 , as well as those insurance lines of business that Novae exited or placed into run - off in the fourth quarter of 2016 and in the firs
Slide 11: Reinsurance Segment: Portfolio Changes Driving Improving Loss Ratios
Portfolio Changes Driving Improving Loss Ratios: • 5.3 points of underlying loss ratio improvement since YE 2017 due to: • Disciplined underwriting and portfolio management driving improvements • Pricing momentum continued through 2Q22 in a number of lines • 6M 2022 YoY increase driven by mix shift
Slide 12: Disciplined Reduction of Cat Exposure Across Entire Curve
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 7/1 with the beginning of the run - off of all Property Cat RI • The quarte
Slide 13: Focus Areas for Progress
FOCUS AREAS FOR PROGRESS In the past five years, AXIS has implemented significant change to its platform and portfolios (1) Progress shown between FY2017 and FY2021 (2) Improvement targets do not take into account unusual or infrequently occurring events (3) Includes impact from pre - tax COVID - 19
Slide 14: Guided by external frameworks and committed to ESG reporting
Guided by external frameworks and committed to ESG reporting Focus areas: Environment and diversity & inclusion DIVERSITY EQUITY & INCLUSION Implementing 5 - point 2021 DE&I plan; key action areas - internal education, diverse recruitment, career development, goals/metrics and advocacy Key highlight
Slide 15: 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 Enhanced use of reinsurance, retro and third - party capital driving better risk ad
Slide 16: Appendix: Non-GAAP reconciliation and Novae acquisition note
( 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 within policies that were in - force at the closing date of the transaction . I
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