AXIS Capital's first-quarter earnings fell short of the Zacks
Consensus Estimate and deteriorated year over year. The reported
quarter suffered lower investment income due to alternative
investments and higher property losses in the insurance segment.
Top line improved on the back of higher premiums. Moreover, the
company is also engaged in enhancing its shareholders' value
through share repurchase and dividend payments. Both Insurance and
Reinsurance segments' premium continues increase. We expect new
business and product generation, and platform expansion to aid the
company's performance going forward. The commencement of Lloyds
franchise for the new AXIS syndicate 1686 marked another milestone
in the expansion of its global underwriting platform. A solid
capital position, strong scores with the credit rating agencies are
among other positives. However, expenses continue to escalate,
creating pressure on margins.
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.
As of March end 2014, AXIS Capital had shareholders' equity of
$5.83 billion, (down 1% year over year) and total assets of $21.0
billion (up nearly 6.6% year over year).
AXIS Capital Holdings Ltd. (AXS): Read the Full
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