AXIS Capital Redeems Preferreds - Analyst Blog


Recently, AXIS Capital Holdings Limited ( AXS ) 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 buybacks.

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 7.96%.

Among others in the industry, Homeowners Choice Inc. ( HCI ) 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. ( MRH ) and American Safety Insurance Holdings Ltd ( ASI ) share the same Zacks Rank and appear impressive.

AMER SAFETY INS (ASI): Free Stock Analysis Report

AXIS CAP HLDGS (AXS): Free Stock Analysis Report

HOMEOWNERS CHCE (HCI): Free Stock Analysis Report

MONTPELIER RE (MRH): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: ASI , AXS , HCI , MRH

More from

Related Videos

Top Home Financing Myths
Top Home Financing Myths            




Most Active by Volume

  • $17.88 ▼ 1.38%
  • $18.51 ▼ 6.98%
  • $94.01 ▼ 1.26%
  • $121.30 ▼ 0.87%
  • $23.28 ▼ 9.17%
  • $14.20 ▼ 0.77%
  • $14.83 ▼ 1.79%
  • $46.70 ▼ 0.38%
As of 7/31/2015, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by