AXIS Capital Holdings Limited (NYSE:AXS) Q3 2018 Earnings Conference Call Transcript
Oct 25, 2018 • 09:30 am ET
Good day, and welcome to the Third Quarter 2018 AXIS Capital Earnings Conference Call and Webcast. All participants today, will be in a listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note today's event is being recorded.
And with that, I'd like to turn the conference over to Mr. Matt Rohrmann, Head of IR. Please go ahead.
Thank you, Brian. Good morning, ladies and gentlemen. I'm happy to welcome you to our conference call to discuss the financial results for AXIS Capital for the third quarter and period ended at September 30, 2018. Our earnings press release and financial supplement were issued yesterday evening after the market closed. If you'd like copies, please visit the Investor Information section of our website at axiscapital.com. We set aside an hour for today's call, which is also available as an audio webcast through the investor information section of our website. A replay of the teleconference will be available by dialing (877) 344-7529 in the United States and the international number (412) 317-0088. The conference code for both replay dial-in numbers is 10125053.
With me on today's call are Albert Benchimol, our President and CEO; and Peter Vogt, our CFO.
(Forward-Looking Cautionary Statements)
In addition, this presentation may contain non-GAAP financial measures. Reconciliations are included in our earnings press release and financial supplement, which can be found in our Investor Information section of our website, which, again, is located at axiscapital.com.
With that, I'd like to turn the call over to Albert. Albert?
Thank you, Matt, and good morning, everyone. And thank you for joining us to review our third quarter results. For AXIS, the story of the third quarter is that we're continuing to see positive momentum in our business. And our efforts to grow our leadership in selected markets are generating real traction. It's been a very productive year for AXIS and one in which our improved results are beginning to demonstrate the potential of our business.
Like the rest of the industry, our third quarter was impacted by cat activity in the Southeastern United States and in Asia, as well as elevated attritional property losses. Within this context, the strength of our results speak to our team's work to build resilience within our portfolio.We reported operating ROE of 7.2% in the quarter. But as you know, we believe this to understate the true run rate profitability of our business due to PGAAP rules. Excluding PGAAP entries, our third quarter results would have been an operating ROE of 8%, and our year-to-date ex-PGAAP operating ROE was a solid 10.2%.
In recent years, we've worked hard to establish AXIS as a profitable, relevant player in specialty lines with a differentiated hybrid platform. Our underwriting expertise, outstanding service and industry-leading claims capabilities have helped us build deep and meaningful relationships with our clients and partners in distribution. With close to $7 billion in premium and top 10 positions in all of our key markets, we