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AXIS Capital Holdings Limited AXS reported adjusted fourth-quarter 2021 earnings of $2.13 per share, which beat the Zacks Consensus Estimate by 58%. The bottom line rebounded from the year-ago loss of 20 cents.
The company’s results reflected higher gross premiums written as well as an increase in net investment income and lower expenses.
Axis Capital Holdings Limited Price, Consensus and EPS Surprise
Axis Capital Holdings Limited price-consensus-eps-surprise-chart | Axis Capital Holdings Limited Quote
Full-Year Highlights
In 2021, AXIS Capital delivered an operating income of $5.12 per share, beating the Zacks Consensus Estimate of $4.34 per share. Moreover, the bottom line improved from the year-ago quarter’s operating loss of $2.08 per share.
Total operating revenues of $5.18 billion beat the consensus mark of 5.12 billion and also increased 10.1% year over year.
Quarterly Operational Update
Total operating revenues of $1.4 billion outpaced the Zacks Consensus Estimate by 11.2%. The top line also rose 15% year over year on higher net premiums earned and net investment income.
Gross premiums written increased 16% year over year to about $1.6 billion, largely driven by a 19% increase in the Insurance segment and a 1% increase in the Reinsurance segment.
Net investment income increased 17% year over year to nearly $128 million, primarily due to positive returns from other investments in 2021.
Total expenses in the quarter under review decreased 8.8% year over year to $1.2 billion, attributable to lower net losses and loss expenses, foreign exchange losses and amortization of value of business acquired.
AXIS Capital incurred an underwriting loss of $136 million compared with the prior-year quarter’s loss of $80.8 million. The combined ratio improved 1650 basis points (bps) to 93.1%.
Segment Results
Insurance: Gross premiums written improved 19.1% year over year to $1.3 billion, primarily attributable to increases in professional lines, liability, property, and marine lines driven by new business and favorable rate changes.
Net premiums earned rose 22.5% year over year to $722.4 million.
Underwriting income totaled $81.6 million in contrast to the year-ago quarter’s loss of $66 million. The combined ratio improved 2260 bps to 88.7%.
Reinsurance: Gross premiums written in the fourth quarter increased 1.5% year over year to $247.8 million, primarily attributable to increases in motor and agriculture lines due to new business.
Net premiums earned increased 3.6% year over year to $515.4 million.
Underwriting income was $54.3 million against the year-ago quarter’s loss of $14.8 million. The combined ratio improved 1150 bps year over year to 90.8%.