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8-K - FORM 8-K - AXIS CAPITAL HOLDINGS LTDd8k.htm
AXIS Capital
Bank of America Merrill Lynch
Insurance Conference 2011
New York, NY
John Charman, CEO and President
February 15, 2011
Exhibit 99.1


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Safe Harbor Disclosure
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:
The occurrence 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 and coverage issues,
The failure of our cedants
to adequately evaluate risks,
Inability
to
obtain
additional
capital
on
favorable
terms,
or
at
all,
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,
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.
This report is for informational purposes only. It should be read in conjunction with the documents that we file with the Securities
and Exchange Commission pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934.
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.


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AXIS –
Who we Are
Bermuda-domiciled Specialty Insurer and Reinsurer
Founded 2001; IPO –
2003; $4.2 Bn
market capitalization at 2/11/2011
$3.75 Bn
GWP in 2010
Underwriting-led, Diversified Specialty Insurer and Reinsurer with Strong Risk
Management Culture
Strong Balance Sheet
Multi-Platform Approach
Well Diversified
Portfolio
$5.6 Bn
of shareholders’
equity
as at December 31, 2010
Financial Strength Ratings of
A+ (S&P), A2 (Moody’s) and A
(AM Best)
Diluted BVPS 13.4% CAGR
since 6/30/2003 (IPO)
Locations in Bermuda, U.S.,
Europe, Singapore, Canada and
Australia
Approximately 1,000 employees
32 offices in 9 countries
Focus on Specialty Lines


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4
AXIS Insurance
Development of AXIS Insurance GPW
($ in millions)


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AXIS Reinsurance
Development of AXIS Reinsurance GPW
($ in millions)


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AXIS Performance –
Share Price to Fully Diluted Book Value
(1)  Diluted book value per share calculated using Treasury stock method.  Note 6/30/03 diluted book value per share is pro forma
for AXIS Capital IPO.
(2)  Total value creation calculated as diluted book value per share plus cumulative declared dividends.
Book value per share
(1)
CAGR since 6/30/03 (IPO)
13.4%
Total value creation per share
(2)
CAGR since 6/30/03 (IPO)
15.2%


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Key Highlights
2010 Financial Results
GPW Growth
4.6%
Combined Ratio
88.7%
Operating ROACE
12.4%
Diluted Book Value per Share Growth
17.0%
Total Value Creation
(1)
19.6%
Managing bottom of soft P&C cycle and expecting improvement in
P&C marketplace in 2012
Significant investments in Infrastructure, Geography and Product
to prepare for market turn
Returned $820 million to common shareholders through share
repurchases and dividends
(1)  2010 Total Value Creation = Growth in diluted book value per share + declared dividends                


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Accident and Health Strategic Initiative
Provide customized products and risk-taking solutions for
(re)insurance clients
Primary product focus = accident, health, travel, disability
and allied personal lines insurance and reinsurance
Global footprint
Growth in 2011 from accident, catastrophe and specialty health
reinsurance globally
Good progress in building insurance capabilities globally
Over 60 employees globally as of year-end 2010


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Strong Risk Management
Clearly articulated objectives and risk appetite at a group and
legal entity level
Controlled risk taking: our financial strength and sustainable
value creation are integral to our existence
Clear accountability: we operate on the principle of delegated
and clearly defined authority
Independent risk controlling: to avoid conflicts of interests
Open risk culture: risk transparency and responsiveness to
change are integral to our risk control process


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Underwriting Objectives -
2011
Manage risk
Maintain quality of our seasoned portfolio
Prepare to accelerate when the market turns
Transformation initiative to increase productivity of intellectual capital at AXIS
Continue to build global footprint
A&H strategic initiative


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Investment and Financial Objectives -
2011
Protect Book Value and Total Returns in Rising Rate Environment
Defend investment income in a low rate and spread environment
Maintain exposure to investment-grade spread assets
Take advantage of weakness in municipal markets
Maintain positions in short-duration high yield bonds
Optimize risk-adjusted returns
Diversify away from interest-rate sensitive assets
Increased exposure to equities and alternatives
Monitor implementation of a hedge on fixed income assets
Limiting significant further exposure to prepayment-sensitive MBS
Capital management
Maintain strength but “right size”
to opportunity
Share
repurchase
and
dividend
policy
characterized
by
consistent
increase and
attractive yield


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Efficient Capital Management
Total Equity Raised
$2.1
Dividends
$0.8
Share Repurchases
$1.8
Total Capital Returned
$2.6
AXIS Market Value
$5.0
IRR 2001-2010
18.2%
2001-2010 (Billions)