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AXIS Capital Holdings Ltd. (AXS): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

By: Zacks.com
Posted: 1/14/2014 7:00:00 AM
Referenced Stocks: AXS;MGA

Summary:
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 concern.

Overview:

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.

Source: Company


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