NYSE$AXS

AXIS Capital Holdings Limited · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported a solid quarter with positive momentum in the underlying performance.

AXIS Capital reported a solid second quarter, with net income available to common shareholders of $112 million, or $1.33 per diluted common share, and operating income of $72 million, or $0.84 per diluted common share. The company saw improvements in its current accident year combined ratio and expense ratio, reflecting cost discipline and actions taken to strengthen the portfolio and operating efficiency.

  • Improved current accident year combined ratio by 4.6 points, excluding catastrophe and weather-related losses.
  • Net investment income was $45 million, reduced from $93 million in the first quarter of 2020.
  • Book value per diluted common share increased to $55.09, an 11% increase compared to March 31, 2020.
  • The company maintained its net claims provision for the COVID-19 pandemic established in the first quarter of 2020.

Headline financials

Total Revenue

$1.2B

Previous: $1.29B-6.3%
EPS (adj)

$0.84

Previous: $1.69-50.3%
Combined Ratio

94.7%

Previous: 96.1%-1.5%
Net Losses & Loss Expenses Ratio

61.3%

Previous: 59.8%+2.5%
Catastrophe & Weather Losses Ratio

3.5%

Previous: 2.3%+52.2%
Current AY Loss Ratio ex-Cat

58.0%

Previous: 59.7%-2.8%
Acquisition Cost Ratio

20.7%

Previous: 21.6%-4.2%
G&A Expense Ratio

12.7%

Previous: 14.7%-13.6%
Free Cash Flow

$120M

Previous: $177M-32.2%
Net Income

$120M

Previous: $177M-32.2%
Operating Income

$126M

Previous: $154M-18.2%
Gross Profit

$298M

Previous: $364M-18.1%
Cash & Equivalents

$1.09B

Previous: $712M+52.5%
Total Assets

$26.4B

Previous: $25.9B+1.9%
Stock-Based Comp

$11.8M

Previous: $12.8M-7.9%

Revenue & EPS history

AXIS Capital · Revenue · Quarterly

$1.2B

Q2 2020-6.3%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

AXIS Capital · $1.1B total across 2 segments · Q2 2020

  • Insurance
    $577M
  • Reinsurance
    $527M

Forward guidance

No forward guidance was provided in the text.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.0%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+3.9%

Avg return

30 days after

44%

30 / 68 earnings

Positive

+9.2%

Q4 2022

Best reaction

-6.0%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.5%+0.9%-3.2%
Q4 2025+0.2%+1.0%+1.9%
Q3 2025+5.9%+8.8%+15.9%
Q1 2025+2.3%+2.7%+6.5%
Q4 2024+2.6%-0.3%+7.1%
Q3 2024-2.4%-1.0%+16.0%
Q2 2024+2.7%-0.3%+8.0%
Q1 2024+6.3%+8.7%+20.5%
Q4 2023-4.6%+5.5%+10.1%
Q3 2023-5.4%-5.7%+0.3%
Q2 2023+2.2%+0.7%-0.5%
Q1 2023-1.1%+1.1%-6.6%
Q4 2022+9.2%+6.2%+4.4%
Q3 2022-3.3%+4.9%+9.3%
Q2 2022-3.8%-7.0%+0.0%
Q1 2022+7.0%+4.9%+8.3%
Q4 2021-2.9%+1.6%-0.5%
Q3 2021+2.2%+2.3%-2.9%
Q2 2021-2.0%+1.7%+3.1%
Q1 2021+2.0%+2.8%-1.9%
Q4 2020-5.8%-4.1%-1.8%
Q3 2020-2.0%-4.1%+14.1%
Q2 2020+2.2%-1.7%+16.1%
Q1 2020+2.6%+12.7%+11.8%
Q4 2019+5.6%+4.1%-9.9%
Q3 2019-3.9%-3.7%-3.6%
Q2 2019+3.7%+2.0%+1.8%
Q1 2019-0.9%-1.4%+4.6%
Q4 2018-2.1%+0.5%+4.6%
Q3 2018+5.4%+3.6%-0.2%
Q2 2018-0.7%-2.0%-0.4%
Q1 2018+5.4%+2.9%+0.8%
Q4 2017+2.3%-2.3%+9.5%
Q3 2017-3.1%-3.8%-8.7%
Q2 2017-3.1%-1.4%-4.2%
Q1 2017-0.2%-2.7%-4.0%
Q4 2016+4.2%+4.8%+8.9%
Q3 2016+1.8%+2.4%+10.6%
Q2 2016+3.2%+3.3%+4.5%
Q1 2016-3.0%
Q4 2015-2.3%
Q3 2015-0.3%
Q2 2015-0.8%
Q1 2015+0.3%
Q4 2014-0.1%
Q3 2014-1.2%
Q2 2014-1.4%
Q1 2014-1.8%
Q4 2013-4.7%
Q3 2013+0.4%
Q2 2013-4.3%
Q1 2013+1.3%
Q4 2012-0.7%
Q3 2012-2.1%
Q2 2012-2.6%
Q1 2012+0.5%
Q4 2011-2.1%
Q3 2011+1.2%
Q2 2011-6.0%
Q1 2010-3.2%
Q1 2011+3.0%
Q4 2010-2.5%
Q4 2008-2.5%
Q4 2009-2.5%
Q3 2009+1.6%
Q3 2010+1.6%
Q2 2009-0.2%
Q2 2010-0.2%

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