AXIS Capital's third-quarter earnings surpassed the Zacks Consensus
Estimate but slumped year over year. The company experienced soft
performance at the Insurance segment but a strong performing
Reinsurance came as a respite. Investment results were dampened by
a weak global equity market. Nonetheless, favorable reserve
development and diversification continued to drive results. A lower
share count due to continued share repurchases boosted the bottom
line. We expect new business and product generation, and platform
expansion to aid the company's performance going forward. While
Lloyds' franchise for the new AXIS syndicate 1686 marked another
milestone in the expansion of its global underwriting platform, it
is weighing opportunities for AXIS Ventures, the new third-party
capital initiative. A solid capital position continues to support
capital deployment. However, a high expense level remains a
Incorporated in Nov 2001, AXIS Capital was one of the several
insurance carriers formed to take advantage of the enhanced
insurance demand following the 9/11 terrorist attacks.
Bermuda-based AXIS Capital is a global provider of specialty lines
insurance and treaty reinsurance. The company operates in Bermuda,
the U.S., Singapore, and Europe. The company was listed on the NYSE
in Jul 2003.
AXIS Capital has two reportable segments:
The Insurance segment (47% of net premiums earned in 2013)
offers a diverse portfolio of primary and excess products, ranging
from property, marine, energy and casualty insurance to
professional lines, aviation, terrorism, credit and political risk,
customized insurance programs with managing general agency (MGA)
partners and other specialized coverage.
The Reinsurance segment (53%) provides property and casualty
treaty reinsurance to insurance companies predominantly on an
excess-of-loss basis. Since inception, this segment has been a
reinsurer of natural and man-made catastrophe exposures as well as
traditional property business, professional lines, liability,
motor, credit/bond and other specialty risks globally.
AXIS Capital Holdings Ltd. (AXS): Read the Full
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