AXIS Capital Holdings Limited
) declared that it will redeem all of its outstanding preferred
shares which consist of 4 million of its 7.25% Series A Preferred
Shares, par value $0.0125 per share and liquidation preference
$25 per share. It represents $100 million in aggregate
liquidation preference as on Jun 19, 2013. The redemption price
is $25 per Preferred Share plus all declared and unpaid dividends
through the redemption date.
Last week, AXIS Capital priced an offering of 8 million shares of
5.50% Series D Preferred Shares, par value $0.0125 per share and
a liquidation preference at $200 million or $25 per share.
Furthermore, AXIS Capital granted a 30-day option to the
underwriters to buy up to 1.2 million additional Series D
Preferred Shares. The proceeds from this $200 million issuance
were deployed to redeem the outstanding Series A preferred
securities and for general corporate purposes, including share
Concurrent to the announcement, credit rating agency, A.M. Best
allotted a debt rating of "bbb-" to the Series D non-cumulative
redeemable preferred shares of AXIS Capital with a positive
outlook. Fitch Ratings allotted a 'BBB' rating to the issue.
AXIS Capital reported first quarter 2013 earnings of $1.92 per
share which breezed past the Zacks Consensus Estimate of $1.19
per share. Following the solid first quarter, most of the
estimates were revised upward. The Zacks Consensus Estimate for
2013 moved to $5.05, representing a year-over-year improvement of
59.3%. For 2014, the Zacks Consensus Estimate is currently pegged
at $4.65 per share, representing a year-over-year decline of
Among others in the industry,
Homeowners Choice Inc.
) declared cash dividends of 5.833 cents per share on its Series
A Cumulative redeemable preferred shares in Mar 2013, for the
months ending Mar 31, Apr 30 and May 31, 2013.
AXIS Capital currently carries a Zacks Rank #1 (Strong Buy).
Among other stocks,
Montpelier Re Holdings Ltd.
American Safety Insurance Holdings Ltd
) share the same Zacks Rank and appear impressive.
AMER SAFETY INS (ASI): Free Stock Analysis
AXIS CAP HLDGS (AXS): Free Stock Analysis
HOMEOWNERS CHCE (HCI): Free Stock Analysis
MONTPELIER RE (MRH): Free Stock Analysis
To read this article on Zacks.com click here.