AXIS Capital's second-quarter earnings surpassed the Zacks
Consensus Estimate and improved nearly fourfold year over year. The
outperformance came on the back of improved results in its two
segments. Expenses also decreased in the quarter aiding margin
expansion. A lower share count due to continued share repurchases
boosted the bottom line. Both Insurance and Reinsurance segments'
premium continues to increase. 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, strong scores with the credit rating agencies and lower
expenses are among the 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 Jun 30, 2014, AXIS Capital had shareholders' equity of
$5.96 billion, (up 7.2% year over year) and total assets of $21.4
billion (up 8.1% year over year).
AXIS Capital Holdings Ltd. (AXS): Read the Full
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