Axis Capital Holdings Limited Earnings: Quarter Lacks Gusto

Axis Capital Holdings Limited (NASDAQ:AXS) reported its results for the fourth quarter. Axis Capital Holdings, 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.

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Axis Capital Holdings Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the property and casualty insurance company fell to $89.3 million (63 cents per share) vs. $273.6 million ($1.99 per share) a year earlier. This is a decline of 67.4% from the year earlier quarter.

Revenue: Rose 0.3% to $945.7 million from the year earlier quarter.

Actual vs. Wall St. Expectations: Axis Capital Holdings Limited beat the mean analyst estimate of 48 cents per share. It beat the average revenue estimate of $514.8 million.

Quoting Management: John Charman, Chief Executive Officer and President of AXIS Capital, stated: “An extraordinary series of costly natural disasters, which are estimated to have cost our industry over $100 billion, took center stage in 2011. These occurred against the backdrop of a prolonged soft market at perhaps the weakest phase in its business cycle, when adequate pricing remained extremely difficult to obtain. Further, on the asset side, we experienced the persistence of abnormally low interest rates, which made low-risk investment income difficult to achieve.”

Key Stats:

The company beat estimates last quarter after falling short in the previous two quarters. In the third quarter, it missed the mark by 2 cents, and in the second quarter, it fell short by one cent.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the first quarter of the next fiscal year is $1.02 per share, up from 96 cents ninety days ago. Down from a loss of 61 cents per share ninety days ago, the average estimate for the fiscal year is now a loss of $1.31.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at

To contact the editor responsible for this story: Damien Hoffman at