NYSE$AXS

AXIS Capital Holdings Limited · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported a net loss due to catastrophe losses, but benefited from strategic shift towards specialty insurance.

AXIS Capital reported a net loss attributable to common shareholders of $17 million for Q3 2022, driven by pre-tax catastrophe and weather-related losses of $212 million, primarily from Hurricane Ian. However, the company's strategic shift towards specialty insurance and reduced exposure to catastrophes has led to growth in underwriting income and operating income for the year to date.

  • Net loss attributable to common shareholders of $(17) million, or $(0.20) per diluted common share, and operating income of $3 million, or $0.03 per diluted common share.
  • Pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, of $212 million, or 16.6 points, primarily attributable to Hurricane Ian, and other weather-related events.
  • Annualized return on average common equity ("ROACE") of (1.7%) and annualized operating ROACE of 0.3%.
  • Grew underwriting income by 75% and operating income by 30% year to date.

Headline financials

Total Revenue

$1.23B

Previous: $1.34B-8.2%
EPS (adj)

$0.03

Previous: $0.01+200.0%
Combined Ratio

104.3%

Previous: 107.4%-2.9%
Free Cash Flow

-$9.38M

Previous: $54.9M-117.1%
Net Income

-$9.38M

Previous: $54.9M-117.1%
Operating Income

$769M

Previous: -$7.16M+10839.2%
Gross Profit

$987M

Previous: $193M+410.8%
Cash & Equivalents

$1.21B

Previous: $948M+27.7%
Total Assets

$27.1B

Previous: $27.9B-2.9%
Stock-Based Comp

$14.4M

Previous: $11.9M+20.8%

Revenue & EPS history

AXIS Capital · Revenue · Quarterly

$1.23B

Q3 2022-8.2%vs Q3 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

AXIS Capital · $1.28B total across 2 segments · Q3 2022

  • Insurance
    $782M+14.8%
  • Reinsurance
    $503M-5.2%

Forward guidance

Conditions and uncertainties in the market are likely to result in a favorable pricing environment into 2023 and beyond, as well as heightened demand for specialty coverages, where AXIS is well-positioned.

Tailwinds

  • Favorable pricing environment expected into 2023 and beyond.
  • Heightened demand for specialty coverages.
  • Business has great momentum.
  • Improving profitability.
  • Reducing volatility.

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 Q3 2022

Historical avgQ3 2022

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro