Axis Capital Holdings Limited · NYSE:AXS
Axis Capital — Bank of America Merrill Lynch Insurance Conference 2013
21 slides from Axis Capital's conference presentation, Feb 14, 2013
Slide 1: Bank of America Merrill Lynch Insurance Conference 2013
AXIS Capital Bank of America Merrill Lynch Insurance Conference 2013 Albert Benchimol, President and CEO AXIS Capital February 14, 2013
Slide 2: Forward-looking statements
AXIS Capital 2 Statements in this presentation that are not historical facts, including statements regarding our estimates, beliefs, expectations, intentions, strategies or projections, may be “forward-looking statements” within the meaning of the U.S. federal securities laws, including the Private
Slide 3: Retrospective on 2012 – An Eventful Year
AXIS Capital 3 Retrospective on 2012 – An Eventful Year Management transitions completed Commitment on Mission, Goals and Strategy Responded to uneven improvements in our various markets • Generally not enough to offset lower interest rates Delivered satisfactory performance • Generally favorable lo
Slide 4: 2012 vs 2011 Results
AXIS Capital 4 2012 vs 2011 Results $ in millions $0 $1,500 $3,000 $4,500 2011 2012 Insurance Reinsurance Gross Written Premiums +1.1% $0 $250 $500 2011 2012 Net Investment Income +5.1% $4,096 $4,140 $0 $1,500 $3,000 $4,500 2011 2012 Insurance Reinsurance Net Written Premiums -2.4% $3,419 $3,337 $36
Slide 5: Diversified Global Insurer and Reinsurer: AXIS Insurance Overview
AXIS Capital Diversified Global Insurer and Reinsurer AXIS Insurance Overview 5 $0 $500 $1,000 $1,500 $2,000 $2,500 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 A&H/Other Liability Professional lines Credit and political risk Aviation Terrorism Marine Prope
Slide 6: Diversified Global Insurer and Reinsurer: AXIS Reinsurance Overview
AXIS Capital Diversified Global Insurer and Reinsurer AXIS Reinsurance Overview 6 AXIS Reinsurance Aggregate 2002-2012 2012 GPW $15.7 Bn $1.8 Bn NPW $15.5 Bn $1.8 Bn Combined Ratio 89% 89% Underwriting Profit(Loss) $1.6 Bn $198 M AXIS Reinsurance 2002-2012 GPW AXIS Reinsurance 2012 GPW by LOB = $1,8
Slide 7: Driving Shareholder Value Creation
AXIS Capital 7 Driving Shareholder Value Creation Total value creation per share calculated as diluted book value per share plus accumulated declared dividends has grown at an annualized rate of 13.6% since 2002 $13.90 $16.74 $19.29 $18.34 $23.45 $28.79 $25.79 $33.65 $39.37 $38.08 $42.97 $- $0.14 $0
Slide 8: Right Value Proposition and Mission for Evolving Environment
AXIS Capital AXIS is a global insurer and reinsurer, providing our clients and distribution partners a broad range of risk transfer products and services, meaningful capacity and unquestioned financial strength. We nurture an ethical, entrepreneurial and disciplined culture that promotes outstanding
Slide 9: AXIS Economic Goal
AXIS Capital To maximize Returns on Equity and Book Value per Share growth through superior Evaluation, Assumption and Management of Risk, within agreed risk appetite • Maintain over-the-cycle 15% ROE goal • Even if unlikely to be met in next 2-3 years • Average result over an extended period (7-10
Slide 10: Relative Performance: Superior Returns with Industry Average Volatility
AXIS Capital Relative Performance: Superior Returns with Industry Average Volatility 10 Volatility By Quintile P er form a n ce b y Q u in ti le Lowest Highest 1st 2nd 3rd 4th 5th Low e s t H ighe s t 5 th 4 th 3 rd 2 n 1 s t
Slide 11: AXIS Strategic Objectives
AXIS Capital Diversifying growth for better balance and lower volatility Higher risk-adjusted returns through improved data and analytics Enhanced operational effectiveness Development and empowerment of our staff and culture Deliver on our financial goals AXIS Strategic Objectives 11
Slide 12: To accomplish our Mission and Objectives, AXIS will
AXIS Capital To accomplish our Mission and Objectives, AXIS will: • Attract, develop, retain and motivate the best team in the industry by nurturing an ethical, risk-aware, achievement-oriented culture that promotes Professionalism, Responsibility, Integrity, Discipline and Entrepreneurialism • Offe
Slide 13: Significant Advantages
AXIS Capital Growing global insurance/reinsurance platform Increasingly diversified book of business by product and geography Deep relationships Excellent market reputation Ability to access and underwrite complex risks Strong underwriting culture Strong capital and ratings Successful track record S
Slide 14: AXIS Insurance: Improving Market Conditions
AXIS Capital 14 AXIS Insurance: Improving Market Conditions Rate Change by Quarter – Q1 2011 through Q4 2012
Slide 15: Profitable, Diversifying, Balanced Growth
AXIS Capital Enhanced producer relationship management Economic sectors and geographies likely to exhibit stronger growth Market share expansion in established markets New initiatives Opportunistic acquisitions Profitable, Diversifying, Balanced Growth 15 Focused on offering the best products • Cove
Slide 16: Promising New Initiatives
AXIS Capital Promising New Initiatives 16 AXIS Insurance AXIS Reinsurance Product • Accident and Health • Renewable Energy • International PL • Select Casualty Lines • Agriculture • Marine Geography • Canada • Asia • Australia • Canada • Asia • Latin America
Slide 17: Building the AXIS A&H Franchise
AXIS Capital AXIS Capital Attractive Opportunity for AXIS • Large global market with significant fragmentation • Profitable risks provide diversification and growth opportunities Highly Successful Start-up based on a Differentiated Platform • Highly qualified team with track record of success • Glob
Slide 18: Building the AXIS A&H Franchise: Product Innovation, Global Presence and Distribution
AXIS Capital • Supplemental health, critical illness, limited health benefits • Focus on underwriting- driven classes, not managed care Building the AXIS A&H Franchise Product Innovation, Global Presence and Distribution 18 • Broad portfolio of death, disability and medical • Cat exposure Accident 2
Slide 19: Optimizing Group Catastrophe Portfolio
AXIS Capital AXIS Capital Rebalancing in Insurance segment • Broadening commercial property portfolio away from peak U.S. zones, which historically dominated our portfolio • Reduced catastrophe exposure utilized through MGA distribution and re-allocating to opportunities in commercial property benef
Slide 20: People and Culture
AXIS Capital AXIS Capital • Invest in our intellectual capital • Strong new talent recruited • Development programs • Establish supportive organizational structure • Appropriate empowerment, delegation & controls • Core value, goals and brand attributes People and Culture 20
Slide 21: AXIS Brand Attributes
AXIS Capital Clear strategy and direction Growing global presence Expanding portfolio of attractive risks Expert, service-oriented team Superior results Attractive shareholder rewards AXIS Brand Attributes 21
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