Axis Capital Holdings Limited · NYSE:AXS
Axis Capital — Merrill Lynch Insurance Investor Conference 2008
12 slides from Axis Capital's conference presentation, Feb 12, 2008
Slide 1: AXIS Capital - Built for Challenging Markets
Exhibit 99.1 AXIS Capital- Built for Challenging Markets Merrill Lynch Insurance Investor Conference New York, NY John Charman, CEO and President, AXIS Capital February 12, 2008
Slide 2: Safe Harbor Disclosure
Safe Harbor Disclosure Cautionary Statement Regarding Forward-looking Statements 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 m
Slide 3: AXIS: Six Years of Outperformance
AXIS: Six Years of Outperformance Market capitalization of $6 Bn, common equity of $4.7 Bn and total capital of $5.7 Bn Over 725 employees in Bermuda, Europe, U.S. and Australasia Ratings of A (S&P - positive), A2 (Moody’s - stable) and A (AM Best - stable) $3.6 billion in gross premiums written (GP
Slide 4: AXIS: Six Years of Outperformance - Quality, Sustainability and Profitability
AXIS: Six Years of Outperformance Quality, Sustainability and Profitability Combined Ratio 101.8% 100% 84.4% 77.3% 75.3% AVERAGE= 75% 70.4% 73.6% 80.5% 80.3% 61.4% 52.9% 50% 42.7% 51.1% 50.1% 25% 27.7% 22.5% 23.0% 24.4% 25.2% 21.5% 0% 2002 2003 2004 2005 2006 2007 Total Expense Ratio Loss Ratio Net
Slide 5: Full Year 2007 Highlights
Full Year 2007 Highlights Net income was a record $1.1 billion, or $6.41 per diluted common share Gross premiums written were stable at $3.6 billion Combined ratio was 75.3% Return on average common equity was 24.6% Diluted book value per share increased 23% to $28.79 at December 31, 2007 Returned o
Slide 6: Key Drivers for Superior Profitability
Key Drivers for Superior Profitability Operating Efficiency – G&A and Acquisition Costs Portfolio Management and Risk Selection Specialist Focus – Insurance & Reinsurance Strong Board and Management coupled with Strong Underwriting embedded firm-wide Industry Profits 6
Slide 7: Risk Management Strategies
Risk Management Strategies Selective Diversification Defined Tolerance Levels • Properly considered and controlled medium • Maximum limits and risk tolerances for and long-term strategy potential shock losses • Minimizes reliance on external protection • Limit overall exposure to long-tail business
Slide 8: Diversified Strategic Footprint
Diversified Strategic Footprint Selective diversification by product and geography with well-timed entry 2002 2003 2004 2005 2006 2007 + $1.1Bn $2.3Bn $3.0Bn $3.4Bn $3.6Bn • Bermuda • U.S. excess & • European • Entry into London- surplus lines professional media liability market lines and SME • U.S.
Slide 9: AXIS Insurance – Diversity and Specialization
AXIS Insurance – Diversity and Specialization • Diverse and strong distribution driving increased submissions 2007 GPW by Line of Business Total GPW = $2,039 M • Global platform and strategic presence Other 1% • Cycle management Liability 12% Property 32% throughout specialty lines Professional Line
Slide 10: AXIS Re – Global Specialization
AXIS Re – Global Specialization • Broad portfolio on many dimensions 2007 GPW by Line of Business Total GPW = $1,551 M • Strong balance sheet featuring conservative reserving practices Other 7% • Primarily non-proportional Liability 16% Catastrophe 30% • Sought-after lead market (technical expertise
Slide 11: Shareholder Value Creation
Shareholder Value Creation 2002 – 2007 ROACE = 17.9% Diluted book value per share plus accumulated dividends have grown at an annualized rate of 17.5% from 2002 through 2007 Return on Average Common Equity Diluted book value per share + Accumulated dividends $31.14 $35.00 30% ’02-‘07 CAGR = $2.35 26
Slide 12: AXIS Capital: Built for Challenging Markets Questions?
AXIS Capital: Built for Challenging Markets Questions?
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