Axis Capital Holdings Limited · NYSE:AXS
Axis Capital — KBW Annual Insurance Conference 2014
18 slides from Axis Capital's conference presentation, Sep 3, 2014
Slide 1: AXIS Capital – KBW Annual Insurance Conference
Exhibit 99.1 AXIS Capital KBW Annual Insurance Conference New York, NY Albert Benchimol, President & CEO September 3, 2014
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 P
Slide 3: AXIS Capital: Investment Highlights
AXIS Capital: Investment Highlights AXIS delivers a broad range of risk transfer products and services, meaningful capacity and unquestioned financial strength Hybrid (Re)insurer with Strategic Flexibility o AXIS Re: Diversified global reinsurer with 2013 GWP of $2.1bn o AXIS Insurance: Global speci
Slide 4: Hybrid (Re)insurer with Strategic Flexibility
Hybrid (Re)insurer with Strategic Flexibility ($ in Billions) 2002-2013 Aggregate Consolidated AXIS Gross Premiums Written ‘02-’13 GPW $40.6 ‘02-’13 Underwriting Income $4.1 (1) 44% ‘02-’13 Aggregate Combined Ratio 89% (2) 56% AXIS Insurance AXIS Re ‘02-’13 GPW $22.8 ‘02-’13 GPW $17.8 ‘02-’13 Underw
Slide 5: Delivering Top-Quintile Average ROACE
Delivering Top-Quintile Average ROACE 2002-2013 Average ROACE vs. Volatility (Standard Deviation) Volatility by Quintile Lowest nd rd th Highest st 2 3 4 th 1 5 US US Bermuda Reinsurance Property Specialty Scale Hybrid Predominating Cat Sources: Company documents. Note: US Specialty group includes A
Slide 6: Delivering Excellent Shareholder Value Creation
Delivering Excellent Shareholder Value Creation 2002 – 2014Q2 CAGR = 13.2% Total Value Creation = Growth in Diluted Book Value per Share (1) + Accumulated Declared Dividends 6 (1) Diluted book value per share calculated using treasury stock method. 12/31/02 diluted BVPS is pro forma for AXIS Capital
Slide 7: Significant Return of Capital to Shareholders
Significant Return of Capital to Shareholders Stable capital levels Increasing capital efficiency supporting business expansion ($ in Millions) $1,000 ‘08 – ’14 H1 Dividends Paid + Share Buybacks = (1) 106% of ‘08 – ’14 H1 Aggregate Operating Income $818 $800 $108 $590 $600 $118 $438 $397 $400 $379
Slide 8: On Course to Deliver Consistently Superior Results
On Course to Deliver Consistently Superior Results Long-term track record of success Recent challenges driven by catastrophe exposure and frequency of severity in underwriting portfolios Initiatives in process to deliver strategic goals Realization of targeted benefits not dependent on pricing cycle
Slide 9: Continue with Strategy to Achieve Goals
Continue with Strategy to Achieve Goals Invest in our people and culture Underwriting talent which delivered top-tier underwriting results since inception Successfully attracting and adding new top-tier underwriting talent Deliver diversified growth Bring specialist underwriting to new target market
Slide 10: Delivering Diversified Growth
Delivering Diversified Growth Significant contributions from new, diversifying initiatives Accident and Health unit Global agriculture reinsurance line New, diversifying initiatives in early stages Lloyd’s presence Re-entry into U.S. primary casualty New distribution initiatives in U.S. excess casua
Slide 11: Targeting More Stable Returns with Changed Mix
Targeting More Stable Returns with Changed Mix Increased Capital Efficiency Offsets Higher Combined Ratios to Deliver High ROEs Current Year Underwriting Margin Characteristics Reinsurance Insurance High Volatility Requiring Higher UW Low Volatility Requiring Lower UW High Volatility Requiring Highe
Slide 12: Rebalanced Natural Catastrophe Exposure
Rebalanced Natural Catastrophe Exposure Largest Modeled 1 in 100 and 250 Year PML 1 in 250 All Perils Net Annual Aggregate Loss as a % of Common Equity as a % of Common Equity 12
Slide 13: Focus on Drivers of Shareholder Value
Focus on Drivers of Shareholder Value Initiatives in Process Designed to Deliver Improved Returns Independent of Cycle Quality of Loss Profitable Expense Ratio Optimal Capital Ratio Growth Reduction Structure • Continued • Significant, new • More scale from • Lower aggregate management of diversifyi
Slide 14: Environment Continues to Support Good Margins
Environment Continues to Support Good Margins AXIS Insurance Current Business Mix Rate Change Index 14
Slide 15: AXIS Re Well-Positioned
AXIS Re Well-Positioned Versus Large (Re)insurers Buyers are attempting to diversify away from Large Companies Broker-friendly alternative as Large Companies brokers actively target direct markets Versus Smaller (Re)insurers Broad product offering Capital Global presence Strong leaders of specialty
Slide 16: Well Positioned to Succeed in Current Environment
Well Positioned to Succeed in Current Environment Scale advantage with ~$7 billion in capital Established brand name and reputation with clients Whole account capabilities with expertise in multiple products and geographies Superior claims service Strong insurance platform Unquestioned financial str
Slide 17: Question & Answer Session
Question & Answer Session
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures In this presentation, we present consolidated underwriting income, which is a “non-GAAP financial measure” as defined in Regulation G. Consolidated underwriting income is a pre-tax measure of underwriting profitability that takes into account net premiums earned and other
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