Letter from the Chairman To Our Shareholders:

In 2019, AXIS avidly pursued actions to build a stronger, more profitable and more future-ready Company.

The Board and I are encouraged, despite the past year’s difficulties, by the Company’s meaningful progress, including realigning portfolios to exit less profitable lines and reduce volatility, growing more promising lines of business, applying technology to support growth and drive efficiency and cultivating exceptional talent. Moreover, I am proud that we have formalized our climate risk and corporate citizenship approaches overall, and taken steps to fulfill our obligations to employees, clients, shareholders and communities.

Managing New Risks

As we work to create a more resilient, valuable and profitable company, we are also positioning AXIS for the challenges and opportunities of a changing (re)insurance business. We are dedicated to helping organizations around the world manage risk. Thus, we must anticipate, analyze and plan for the impact of new risk factors on our clients and society at-large, our own business performance, and our ability to deliver appropriate returns and create value for our shareholders.

One such risk factor is the evolving structure of the global economy, as intangible assets become a greater proportion of enterprise value. Tangible assets now contribute less value to some companies than do intangible assets, such as intellectual property (IP), brand equity and reputation. As an industry, we must work with clients and partners to develop effective risk management and risk transfer tools that address the issues related to intangible assets.

AXIS is committed to playing a leadership role in understanding new risks and investing in solutions. We are one of the Top 5 providers of Cyber insurance and are continuing to develop solutions to mitigate cyber-related risks to IP, digital assets, business continuity and reputation.

Addressing Climate Change

Climate risk of one of the most significant challenges facing (re)insurers, our clients and society as a whole. Its financial and human cost—as well as the transition to alternative energy sources—will profoundly impact personal and organizational behavior, corporate strategies, public policy, global economies and financial markets.

The (re)insurance industry—and AXIS in particular—must play a vital role in responding to the climate crisis. Our responsibility to our clients, shareholders and employees is the same as it is to the broader community. We can only build and sustain our business long-term if we address climate issues on behalf of society. We are proud that AXIS is a Top 5 global insurer in the Renewable Energy space. Additionally, in 2019 we launched several Corporate Citizenship initiatives as detailed in that section of this report.

CEO’S Letter

Building a Foundation for the Future

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Diverse Leadership Perspectives

To ensure our leadership stays ahead of these and other issues, we have added members to our Board of Directors who bring diverse experience, skills and perspectives. Nearly one-third of AXIS’ Board members joined us since 2018, while we also benefit from the guidance of directors who have been with us for several years. The most recent additions were Anne Melissa Dowling (2020), who brings expertise in helping organizations navigate the intersection of insurance and technology, and Lizabeth Zlatkus (2019), with experience growing and managing world-class insurance operations.

We also wish to acknowledge Robert Friedman and Maurice Keane, who will retire from the Board in May 2020, after serving since 2001 and 2002, respectively. I would like to extend my deepest personal appreciation to Robert and Maurice, who have both served on many different committees and have given us the benefit of their invaluable wisdom and insight since AXIS’ early days.

This is a bittersweet moment for me, given my planned retirement from the Board in September 2020. The Company has grown from gross premiums written of $1.1 billion in 2002, to $6.9 billion in gross premiums written in 2019. Meanwhile, it has delivered a total return to shareholders over the period of 302% including dividends of over $1.9 billion, while also delivering a total return of capital to shareholders of $6.1 billion through share repurchases and dividends. Further, book value per share at the end of 2002 was $14.19 and book value per diluted common share at the end of 2019 was $55.79. As I reflect on AXIS’ trajectory, these figures are powerful.

I would like to thank my colleagues on the Board, with whom I have shared many interesting experiences over the last 19 years; I have very much enjoyed working with such a fine group. Thanks, too, to all the AXIS people who shared our vision of turning an “Idea” into such a great Company and to our clients and producers, who are essential to our business. And, to all our shareholders, thanks for your support and patience as we work toward what I believe to be a very exciting future for the AXIS Family.

The Company will be in good hands, with a leadership team that is motivated by a strong sense of purpose and responsibility to stakeholders. My successor as Chairman, Henry B. Smith, is a strong financial leader and 16-year veteran of the Board, who will provide continuity, insight and sound direction as we grow and prosper.

I know that our efforts to continually enhance our performance, and to respond to a changing industry, will reinforce AXIS’ position as a leader in specialty insurance and global reinsurance—a position that will be reflected in our client service, performance culture and in the value that we deliver to our shareholders.

Sincerely,