Axis Capital Holdings Limited Earnings Cheat Sheet: Exceeds Expectations

Although Axis Capital Holdings Limited’s (NYSE:AXS) net income fell in the second quarter from a year earlier, profit exceeded analysts’ expectations. Axis Capital Holdings Ltd through its subsidiaries, provides a range of insurance and reinsurance products to insureds and reinsureds worldwide operations with main locations in Bermuda, the United States and Europe.

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock >>

Axis Capital Holdings Earnings Cheat Sheet for the Second Quarter

Results: Net income for the property and casualty insurance company fell to $110.3 million (79 cents per share) vs. $214.1 million ($1.51 per share) a year earlier. This is a decline of 48.5% from the year earlier quarter.

Revenue: Rose 16% to $977.6 million from the year earlier quarter.

Actual vs. Wall St. Expectations: AXS beat the mean analyst estimate of 52 cents per share. It beat the average revenue estimate of $799.8 million.

Quoting Management: Commenting on the second quarter 2011 financial results, John Charman, Chief Executive Officer and President of AXIS Capital, stated: “The year thus far, which we estimate has cost the industry over $70 billion in insured catastrophe losses, is breaking records in terms of global catastrophe activity. These losses, combined with recently introduced material changes to catastrophe models have propelled the industry into a transitional phase, forcing it to take a new view of every aspect of catastrophe risk. Since the first of January, AXIS has been repositioning its portfolio to benefit from these positive opportunities following this transition as we enter 2012.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 13.7% to $929.8 million in the first quarter. The figure rose 8.7% in the fourth quarter of the last fiscal year from the year earlier and climbed more than twofold in the third quarter of the last fiscal year from the year-ago quarter.

The company topped expectations last quarter after falling short of forecasts in the first quarter with a loss of $3.65 versus a mean estimate of a loss of $3.37 per share.

Competitors to Watch: Aspen Insurance Hldgs. Ltd. (NYSE:AHL), Validus Holdings, Ltd. (NYSE:VR), RenaissanceRe Hldgs. Ltd. (NYSE:RNR), PartnerRe Ltd. (NYSE:PRE), Flagstone Reinsurance Hldgs. SA (NYSE:FSR), Platinum Underwriters Hldgs., Ltd. (NYSE:PTP), Montpelier Re Hldgs. Ltd. (NYSE:MRH), Everest Re Group, Ltd. (NYSE:RE), and Maiden Holdings, Ltd. (NASDAQ:MHLD).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock >>

(Source: Xignite Financials)