EX-99.1 2 d770247dex991.htm EX-99.1 EX-99.1
AXIS Capital
Investor Presentation
Q2 2014 Update
Exhibit 99.1

AXIS Capital
Safe Harbor
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 Securities Litigation Reform Act of 1995. We intend these forward-looking
statements to be covered by the safe harbor provisions for forward-looking statements in the United States securities laws.
In
some
cases,
these
statements
can
be
identified
by
the
use
of
forward-looking
words
such
as
“may,”
“should,”
“could,”
“anticipate,”
“estimate,”
“expect,”
“plan,”
“believe,”
“predict,”
“potential,”
“intend”
or similar expressions. Our expectations
are not guarantees and are based on currently available competitive, financial and economic data along with our operating
plans. Forward-looking statements contained in this presentation may include, but are not limited to, information regarding
our
estimates
of
losses
related
to
catastrophes
and
other
large
losses,
measurements
of
potential
losses
in
the
fair
value
of
our
investment
portfolio,
our
expectations
regarding
pricing
and
other
market
conditions
and
valuations
of
the
potential
impact of movements in interest rates, equity prices, credit spreads and foreign currency rates.
Forward-looking statements only reflect our expectations and are not guarantees of performance. Accordingly, there are or
will be important factors that could cause actual results to differ materially from those indicated in such statements. We
believe that these factors include, but are not limited to, the following:
2
The loss of one or more key executives,
A decline in our ratings with rating agencies,
Loss of business provided to us by our major brokers,
Changes in accounting policies or practices,
The use of industry catastrophe models and changes to these
models,
Changes in governmental regulations,
Increased competition,
Changes in the political environment of certain countries in
which we operate or underwrite business, and
Fluctuations in interest rates, credit spreads, equity prices
and/or currency values.
The occurrence and magnitude of natural and  man-
made disasters,
Actual claims exceeding our loss reserves,
General economic, capital and credit market
conditions,
The failure of any of the loss limitation methods we
employ,
The effects of emerging claims, coverage
and regulatory issues, including uncertainty related to
coverage definitions,
The failure of our cedants to adequately evaluate risks,
Inability to obtain additional capital on favorable terms,
or at all,

AXIS Capital
3
Long-term track record of success
Recent underperformance driven by catastrophe exposure and
frequency of severity in underwriting portfolios
Initiatives in process to deliver strategic goals
Targeted benefits not dependent on pricing cycle
Well-positioned for current environment
Dual insurance/reinsurance platform is a strategic advantage
On Course to Consistently Superior Results

AXIS Capital
Delivering Top-Quintile Average ROACE
2002-2013 Average ROACE vs. Volatility (Standard Deviation)
Sources:
Company
documents.
Note:
US
Specialty
group
includes
American
Financial,
HCC,
Markel,
RLI,
W.R.
Berkley,
and
Alleghany.
US
Scale
group
includes
Chubb,
CNA,
Hartford,
and
Travelers.
Bermuda
Hybrid
group
includes
ACE,
Arch,
Argo,
Aspen,
Allied
World,
AXIS,
Endurance,
and
XL.
Reinsurance
Predominating
group
includes
Partner
Re,
Platinum,
and
Everest
Re.
Property
Catastrophe
Reinsurance
group
includes
Montpelier
and
RenRe. 
Aspen
and
Platinum
average
ROACE
calculated
from
2003-2013.
Volatility by Quintile
Lowest
1st
Highest
5th
2nd
3rd
4th
US
Specialty
US
Scale
Bermuda
Hybrid
Reinsurance
Predominating
Property
Cat
AXS
4

AXIS Capital
Delivering Excellent Shareholder Value Creation
(1)
Diluted
book
value
per
share
calculated
using
treasury
stock
method.
12/31/02
diluted
BVPS
is
pro
forma
for
AXIS
Capital
IPO.
Total
Value
Creation
=
Growth
in
Diluted
Book
Value
per
Share
(1)
+
Accumulated
Declared
Dividends     
$13.90
$16.74
$19.29
$18.34
$23.45
$28.79
$25.79
$33.65
$39.37
$38.08
$42.97
$45.80
$49.69
$0.14
$0.64
$1.24
$1.855
$2.535
$3.29
$4.10
$4.96
$5.89
$6.86
$7.88
$8.42
$13.90
$16.88
$19.93
$19.58
$25.31
$31.33
$29.08
$37.75
$44.33
$43.97
$49.83
$53.68
$58.11
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014Q2
Diluted BVPS
Accumulated Dividends Declared
2002 –
2014Q2  CAGR = 13.2%
5

AXIS Capital
Cat Rebalancing Important for AXIS Re
Source:
Company
documents.
Note:
“Top
10”
Reinsurers
have
>$1.5
Bn
NPW
in
2013
and
excludes
Berkshire
Hathaway.
European
Reinsurers
in
Top
10
include
Hannover
Re,
Munich
Re,
SCOR
Re
and
Swiss
Re.
Top
10
Reinsurers
>$1.5
Bn
NPW
(ex.
European)
include
Alleghany,
Everest
Re,
Partner
Re
and
XL.
Reinsurers
<$1.5
Bn
NPW
include
Allied
World,
Arch,
Aspen,
Endurance,
and
Platinum.
Property
Catastrophe
includes
Montpelier,
RenRe
(excludes
Lloyd’s
segment)
and
Validus. 
Aggregate
underwriting
profitability
calculated
as
1-
aggregate
combined
ratio
for
each
company’s
reinsurance
segment
only
and
excludes
corporate
expenses.
Property Catastrophe
6
Aggregate Underwriting
Profitability
2003
–
2013
European Reinsurers in Top 10
Top 10 Reinsurers > $1.5Bn NPW (ex. European)
Top 10 Reinsurers < $1.5Bn NPW
Aggregate Underwriting
Profitability
2011
–
2013
Aggregate Underwriting
Profitability
2011
–
2013
(ex.
2011)
2011 Cat Year was particularly challenging for AXIS Re

AXIS Capital
AXIS Insurance Poised for Outperformance
Aggregate Underwriting Profitability
2011 –
2013
7
Aggregate Underwriting Profitability
2003 –
2013
Source:
Company
documents.
Notes:
US
Specialty
includes
Alleghany,
American
Financial,
Houston
Casualty,
Markel,
RLI,
and
W.R.
Berkley.
Bermuda
“Scale”
Specialty
includes
ACE
and
XL.
Bermuda
Specialty
ex.
“Scale”
includes
Allied
World,
Arch,
Argo,
Aspen,
Endurance
and
Validus. 
Aggregate
underwriting
profitability
calculated
as
1-
aggregate
combined
ratio
for
each
company’s
insurance
segment
only
and
excludes
corporate
expenses.

AXIS Capital
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 markets
Develop new specialist franchises in AXIS model
More balance and lower volatility
Optimize enterprise-wide risk portfolio
Constantly improving data and analytics
Informed, not ruled, by models
Enhance operational excellence
Optimal organizational structure
Investments in IT
Competitive cost structure
Top-quintile
risk-adjusted
returns over
the cycle
8

AXIS Capital
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 casualty
Expanded professional liability, energy and marine specialties in Asia & Australia
Established Weather and Commodities Markets unit
Established third party capital management business
New healthcare liability insurance unit
Delivering
product
to
Canada,
Australia,
Asia,
South
America,
as
appropriate
Diversifying and strengthening distribution
Stronger relationships with major providers
Retail distribution
Adding resources to distribution management at both corporate and segment levels
9

AXIS Capital
Rebalanced Natural Catastrophe Exposure
Largest Modeled 1 in 100 and 250 Year PML
as a % of Common Equity
1 in 250 All Perils Net Annual Aggregate
Loss as a % of Common Equity
0%
5%
10%
15%
20%
25%
2008
2009
2010
2011
2012
2013
1-Apr-14
1-Jul-14
Largest 100 Yr PML
Largest 250 Yr PML
2008
2009
2010
2011
2012
2012
2013
2014
10

AXIS Capital
Focus on Drivers of Shareholder Value
11
Quality of Loss
Ratio
Profitable
Growth
Expense Ratio
Reduction
Optimal Capital
Structure
Initiatives in Process Designed to Deliver Improved Returns Independent of P&C Cycle
•
Continued
management of
catastrophe risk
•
More stable accident
year loss ratio ex-
cats
•
Enhanced data and
analytics supporting
optimization of
portfolios
•
Effective
reinsurance
purchasing
•
Prudent reserving
•
Lower aggregate
catastrophe
exposure and
reduced volatility
•
Effective
reinsurance
purchasing
•
Third party capital
•
Robust and
appropriate capital
return including
share repurchase
and dividend
payment
•
Appropriate financial
leverage
•
More scale from
newer initiatives
reducing expense
drag
•
Investments in
operational
effectiveness
expected to bear fruit
after 2015
•
Significant, new
diversifying
initiatives, including
A&H and Agriculture
•
Initiatives focused
on expanded
distribution, product
and geography
•
Lines with lower
volatility support net
investment income
growth
Targeting 4-5 CR points of incremental margin by 2017, leading to higher ROEs

AXIS Capital
Environment Supports Good Margins
AXIS Insurance Current Business Mix Rate Change Index
12

AXIS Capital
13
Versus Large (Re)insurers
Buyers are attempting to diversify
away from Large Companies
Broker-friendly alternative as brokers
actively target direct markets
Versus Smaller (Re)insurers
Broad product offering
Global presence
Strong leaders of specialty businesses
Usually in top 10 on panel for large
buyers
Versus Capital Markets
The capital markets product has
disadvantages, but plays a role
We offer stability and respect the
“implied put”
Capital markets are complex for
buyers and their staff
AXIS Re Well-Positioned

AXIS Capital
14
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 strength
Strategies to improve performance independent of P&C cycle
Well Positioned for Current Environment
AXIS possesses the necessary attributes to succeed in the
current environment