Bermuda's AXIS Capital Q2 net income rises, operating profit drops

Overview

• Bermuda specialty insurer's Q2 net income rose 16% yr/yr; operating income fell 19%

• Gross premiums written grew 6%, led by insurance segment; underwriting income declined 24%

• Q2 combined ratio worsened to 93.1% from 88.9% due to higher catastrophe losses, acquisition costs

Outlook

• AXIS Capital did not provide specific financial guidance for the current or future periods

Result Drivers

• INSURANCE PREMIUM GROWTH - Insurance segment premiums rose 15% in Q2, driven by expanded classes and AXIS Capacity Solutions contributions

• HIGHER CATASTROPHE LOSSES - Catastrophe and weather-related losses, including $31 mln from Middle East conflict, weighed on underwriting results

• REINSURANCE PREMIUM DECLINE - Reinsurance segment premiums fell 25% in Q2, mainly due to non-renewals and reduced line sizes in casualty lines

Company press release: ID:nGNE3Vsx3L

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the multiline insurance brokers peer group is "hold."

• Wall Street's median 12-month price target for AXIS Capital Holdings Ltd is $130.00, about 11.1% above its July 27 closing price of $117.05

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads

• July 28 - Arch Capital Q2 net income falls as premiums decline

• July 27 - Cincinnati Financial Q2 adjusted EPS misses estimates on higher catastrophe losses

• July 27 - Brown Brown Q2 revenue, profit miss estimates; acquisition growth fails to impress investors

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)