We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Axis Capital (AXS) Down 1.7% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
A month has gone by since the last earnings report for Axis Capital (AXS - Free Report) . Shares have lost about 1.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Axis Capital due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
AXIS Capital Holdings Limited 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
The consensus estimate has shifted -6.04% due to these changes.
VGM Scores
At this time, Axis Capital has a strong Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Axis Capital has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Axis Capital (AXS) Down 1.7% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Axis Capital (AXS - Free Report) . Shares have lost about 1.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Axis Capital due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
AXIS Capital’s Q4 Earnings & Revenues Beat Estimates
AXIS Capital Holdings Limited 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
The consensus estimate has shifted -6.04% due to these changes.
VGM Scores
At this time, Axis Capital has a strong Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Axis Capital has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.