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AXIS Capital Holdings Limited (AXS - Free Report) reported adjusted fourth-quarter 2021 earnings of $2.13 per share, which beat the Zacks Consensus Estimate by 58%. The bottom line rebounded from the year-ago loss of 20 cents.
The company’s results reflected higher gross premiums written as well as an increase in net investment income and lower expenses.
Axis Capital Holdings Limited Price, Consensus and EPS Surprise
In 2021, AXIS Capital delivered an operating income of $5.12 per share, beating the Zacks Consensus Estimate of $4.34 per share. Moreover, the bottom line improved from the year-ago quarter’s operating loss of $2.08 per share.
Total operating revenues of $5.18 billion beat the consensus mark of 5.12 billion and also increased 10.1% year over year.
Quarterly Operational Update
Total operating revenues of $1.4 billion outpaced the Zacks Consensus Estimate by 11.2%. The top line also rose 15% year over year on higher net premiums earned and net investment income.
Gross premiums written increased 16% year over year to about $1.6 billion, largely driven by a 19% increase in the Insurance segment and a 1% increase in the Reinsurance segment.
Net investment income increased 17% year over year to nearly $128 million, primarily due to positive returns from other investments in 2021.
Total expenses in the quarter under review decreased 8.8% year over year to $1.2 billion, attributable to lower net losses and loss expenses, foreign exchange losses and amortization of value of business acquired.
AXIS Capital incurred an underwriting loss of $136 million compared with the prior-year quarter’s loss of $80.8 million. The combined ratio improved 1650 basis points (bps) to 93.1%.
Segment Results
Insurance: Gross premiums written improved 19.1% year over year to $1.3 billion, primarily attributable to increases in professional lines, liability, property, and marine lines driven by new business and favorable rate changes. Net premiums earned rose 22.5% year over year to $722.4 million.
Underwriting income totaled $81.6 million in contrast to the year-ago quarter’s loss of $66 million. The combined ratio improved 2260 bps to 88.7%.
Reinsurance: Gross premiums written in the fourth quarter increased 1.5% year over year to $247.8 million, primarily attributable to increases in motor and agriculture lines due to new business.
Net premiums earned increased 3.6% year over year to $515.4 million. Underwriting income was $54.3 million against the year-ago quarter’s loss of $14.8 million. The combined ratio improved 1150 bps year over year to 90.8%.
Financial Update
AXIS Capital exited 2021 with cash and cash equivalents of $844.6 million, down 6.4% over the level at 2020 end.
Debts were $1.3 billion at 2021 end, up 0.09% from 2020-end level.
Book value per share increased 1.2% year over year to $55.78 as of Dec 31, 2021. The increase was driven by net income generated. It was partially offset by a decrease in net unrealized gains reported in other comprehensive income and common share dividends declared.
Operating return on equity totaled 15.1% in the fourth quarter against (1.4%) in the year-ago period.
Dividend Update
The company announced a dividend of 43 cents per share in the reported quarter, which represents an increase of 2.4% and is the 18th consecutive year the insurer has increased dividends since its initial public offering in 2003. Over the past year, total dividends declared amounted to $1.69 per share.
The Travelers Companies’ (TRV - Free Report) bottom line beat the Zacks Consensus Estimate for the fourth quarter of 2021 and increased 6% year over year. Total revenues increased 7% from the year-ago quarter to about $9 billion and beat the Zacks Consensus Estimate of $8.7 billion.
Net written premiums increased 10% year over year. The combined ratio deteriorated 130 basis points (bps) year over year.
Brown & Brown’s (BRO - Free Report) bottom line beat the Zacks Consensus Estimate by 10.5% and rose 31.2% from the year-ago figure.
Adjusted revenues of $739 million beat the Zacks Consensus Estimate by 1.5% and rose 15.1% year over year on higher commissions and fees. Commissions and fees grew 15.3% year over year to $737.9 million. Investment income however plunged 80% year over year to $0.2 million.
The Progressive Corporation’s (PGR - Free Report) bottom line beat the Zacks Consensus Estimate of 99 cents. However, the bottom line declined 43.2% from the year-ago quarter. Net premiums written were $10.7 billion in the quarter, up 13% from $9.5 billion a year ago.
Net premiums earned grew 14% to nearly $11.6 billion. The combined ratio deteriorated 630 bps from the prior-year quarter to 94.7.
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AXIS Capital's (AXS) Q4 Earnings & Revenues Beat Estimates
AXIS Capital Holdings Limited (AXS - Free Report) reported adjusted fourth-quarter 2021 earnings of $2.13 per share, which beat the Zacks Consensus Estimate by 58%. The bottom line rebounded from the year-ago loss of 20 cents.
The company’s results reflected higher gross premiums written as well as an increase in net investment income and lower expenses.
Axis Capital Holdings Limited Price, Consensus and EPS Surprise
Axis Capital Holdings Limited price-consensus-eps-surprise-chart | Axis Capital Holdings Limited Quote
Full-Year Highlights
In 2021, AXIS Capital delivered an operating income of $5.12 per share, beating the Zacks Consensus Estimate of $4.34 per share. Moreover, the bottom line improved from the year-ago quarter’s operating loss of $2.08 per share.
Total operating revenues of $5.18 billion beat the consensus mark of 5.12 billion and also increased 10.1% year over year.
Quarterly Operational Update
Total operating revenues of $1.4 billion outpaced the Zacks Consensus Estimate by 11.2%. The top line also rose 15% year over year on higher net premiums earned and net investment income.
Gross premiums written increased 16% year over year to about $1.6 billion, largely driven by a 19% increase in the Insurance segment and a 1% increase in the Reinsurance segment.
Net investment income increased 17% year over year to nearly $128 million, primarily due to positive returns from other investments in 2021.
Total expenses in the quarter under review decreased 8.8% year over year to $1.2 billion, attributable to lower net losses and loss expenses, foreign exchange losses and amortization of value of business acquired.
AXIS Capital incurred an underwriting loss of $136 million compared with the prior-year quarter’s loss of $80.8 million. The combined ratio improved 1650 basis points (bps) to 93.1%.
Segment Results
Insurance: Gross premiums written improved 19.1% year over year to $1.3 billion, primarily attributable to increases in professional lines, liability, property, and marine lines driven by new business and favorable rate changes.
Net premiums earned rose 22.5% year over year to $722.4 million.
Underwriting income totaled $81.6 million in contrast to the year-ago quarter’s loss of $66 million. The combined ratio improved 2260 bps to 88.7%.
Reinsurance: Gross premiums written in the fourth quarter increased 1.5% year over year to $247.8 million, primarily attributable to increases in motor and agriculture lines due to new business.
Net premiums earned increased 3.6% year over year to $515.4 million.
Underwriting income was $54.3 million against the year-ago quarter’s loss of $14.8 million. The combined ratio improved 1150 bps year over year to 90.8%.
Financial Update
AXIS Capital exited 2021 with cash and cash equivalents of $844.6 million, down 6.4% over the level at 2020 end.
Debts were $1.3 billion at 2021 end, up 0.09% from 2020-end level.
Book value per share increased 1.2% year over year to $55.78 as of Dec 31, 2021. The increase was driven by net income generated. It was partially offset by a decrease in net unrealized gains reported in other comprehensive income and common share dividends declared.
Operating return on equity totaled 15.1% in the fourth quarter against (1.4%) in the year-ago period.
Dividend Update
The company announced a dividend of 43 cents per share in the reported quarter, which represents an increase of 2.4% and is the 18th consecutive year the insurer has increased dividends since its initial public offering in 2003. Over the past year, total dividends declared amounted to $1.69 per share.
Zacks Rank
AXIS Capital currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
The Travelers Companies’ (TRV - Free Report) bottom line beat the Zacks Consensus Estimate for the fourth quarter of 2021 and increased 6% year over year. Total revenues increased 7% from the year-ago quarter to about $9 billion and beat the Zacks Consensus Estimate of $8.7 billion.
Net written premiums increased 10% year over year. The combined ratio deteriorated 130 basis points (bps) year over year.
Brown & Brown’s (BRO - Free Report) bottom line beat the Zacks Consensus Estimate by 10.5% and rose 31.2% from the year-ago figure.
Adjusted revenues of $739 million beat the Zacks Consensus Estimate by 1.5% and rose 15.1% year over year on higher commissions and fees. Commissions and fees grew 15.3% year over year to $737.9 million. Investment income however plunged 80% year over year to $0.2 million.
The Progressive Corporation’s (PGR - Free Report) bottom line beat the Zacks Consensus Estimate of 99 cents. However, the bottom line declined 43.2% from the year-ago quarter. Net premiums written were $10.7 billion in the quarter, up 13% from $9.5 billion a year ago.
Net premiums earned grew 14% to nearly $11.6 billion. The combined ratio deteriorated 630 bps from the prior-year quarter to 94.7.