I am both pleased and proud to present the 2021 AXIS Annual Report. The progress that AXIS is achieving is the result of disciplined implementation of our strategy introduced several years ago to reposition the Company’s portfolio, lower expenses, and reduce net exposure to catastrophes. As a member of the Board of Directors since 2004, and more recently as Chair, I am gratified by the accelerating improvement that we’re seeing in the Company’s results.
Investments in Talent and Technology
In an increasingly competitive market for talent, made more difficult by the disruptive impact of the pandemic, we are fortunate to have attracted and retained a team of highly capable employees. That is especially relevant in a business that depends heavily on the quality and expertise of its people – and it is a direct result of the investments that the Company has made in its talent programs. We have also made forward-looking investments in the technology needed to use data more productively, enable our people to focus on higher-value processes and activities, support new lines of business, and operate more efficiently.
On behalf of the Board, I’d like to extend our deep appreciation to the AXIS team for their hard work during the year, especially in the face of extreme catastrophe events, and the economic and human impact of the pandemic. Even as we navigated together through a rapidly evolving environment and another year of hybrid working, they never lost their focus or commitment to our customers, our business, and to one another.
I would also like to extend our appreciation to Insurance CEO Peter Wilson for his years of valuable service to AXIS and the notable achievements that he has driven, while extending a warm welcome to our future Insurance CEO and current Senior Advisor – Insurance Market Strategy, Vince Tizzio.
Commitment to Culture and ESG
I am confident that I speak for the Board in saying that we are proud of the culture of our organization, which places a high value on service to our clients and communities. AXIS is deeply committed to “internal citizenship,” expressed through our communication and engagement with staff, as well as “external citizenship,” through our support for practices and policies that are responsive to society’s needs.
For AXIS, as for most enterprises around the world today, the path to creating long-term value – and to meeting the needs of all stakeholders – requires an increasing emphasis on ESG matters. I am proud of the 2021 activities detailed in the Corporate Citizenship section of our report, including advancements in our diversity and inclusion program, our commitment to phase out thermal coal business from our insurance, facultative reinsurance and investment portfolios, and our role as an engaged philanthropic partner in our communities.
Building a Strong Foundation for the Future
AXIS has achieved growth and enhanced profitability this year while maintaining positive differentiation in the marketplace. As a specialty (re)insurer, focused on covering highly complicated risks, we build deep relationships with our clients and distribution network. We partner with them in navigating a complex and uncertain world – which is a strong position upon which to build a successful and resilient enterprise.
Our continued progress will depend on consistent execution of our strategy: continuing to focus on attractive business lines, reducing volatility in the portfolio, managing catastrophe exposure in a world of evolving risks, and improving the efficiency and cost-effectiveness of our operations. At the same time, we must maintain the exceptional service that our clients and brokers expect of a leading specialty (re)insurer, while finding new ways to make a positive impact through our environmental, diversity and philanthropic initiatives.
The Board has utmost confidence in the organization’s intrinsic value, and has authorized the repurchase of up to $100 million of the Company’s common shares through the end of 2022. The Board has also increased the common stock dividend for the 18th consecutive year.
I personally am very proud to be a part of the AXIS organization. Our Board is highly engaged in the strategic direction of the Company and our leadership team is pursuing a determined path to progress. I remain continually impressed by our people throughout the Company who are not satisfied just to deliver a product, but rather are motivated to solve clients’ problems, support one another, and help their communities.
In this 20th year since our founding, AXIS has made significant strides in achieving its goals, and with your support, I believe we are well-positioned to build on that progress in the coming years.
Sincerely,
Henry B. Smith
Chair of the Board
