How are energy investors positioned?
Axis Capital Holdings Limited (NYSE:AXS), a Bermuda-based global provider of specialty lines insurance and treaty reinsurance with a market capitalization of $7.69 billion, has entered into a stock repurchase agreement, buying back shares worth approximately $200 million from T-VIII PubOpps LP, an investment entity managed by Stone Point Capital LLC. According to InvestingPro data, management has been consistently aggressive with share buybacks, demonstrating strong commitment to shareholder returns. The transaction, which occurred today, involves the repurchase of 2,139,037 Axis shares under the company’s existing $400 million share repurchase program.
This strategic move comes as part of Axis Capital’s broader capital management strategy, supported by the company’s robust financial health, which InvestingPro rates as "GREAT" with an overall score of 3.2 out of 5. The repurchase represents a significant return of capital to one of its substantial shareholders, as T-VIII PubOpps LP is associated with Stone Point Capital, which manages funds holding a considerable stake in Axis Capital. The company has maintained dividend payments for 23 consecutive years, highlighting its commitment to shareholder returns. Following the repurchase, the funds managed by Stone Point will hold around 3% of Axis Capital’s outstanding common shares, down from approximately 5.6%.
One of Axis Capital’s directors, Charles Davis, has a connection to the seller, as he is the CEO and a member of Stone Point, as well as the Chairman of the Investment Committees of the Trident (NSE:TRIE) Funds, which are managed by Stone Point and hold stakes in Axis Capital. Davis’s relationship with the selling party has been transparently disclosed in the company’s announcement.
The repurchase agreement details were disclosed in a Form 8-K filing with the Securities and Exchange Commission (SEC) and the transaction aligns with the company’s previously announced capital allocation plans. Axis Capital’s initiative to repurchase its shares reflects its commitment to effectively managing shareholder value and its confidence in the company’s financial strength. Trading at a P/E ratio of 7.69, the stock currently sits near its 52-week high of $98.11, with InvestingPro analysis suggesting the stock may be undervalued based on its Fair Value calculations. For investors seeking deeper insights, InvestingPro offers additional analysis through its comprehensive Pro Research Report, available among 1,400+ top US stocks.
Axis Capital’s stock is listed on the New York Stock Exchange and trades under the ticker symbol AXS. The company also has a series of preferred stocks listed as AXS PRE. The information reported is based on a press release statement and the recent 8-K filing with the SEC.
In other recent news, Axis Capital Holdings Ltd reported a robust performance for the fourth quarter of 2024, exceeding earnings per share (EPS) expectations with a reported EPS of $2.97 against the forecasted $2.57. However, the company’s revenue for the quarter was slightly below expectations, totaling $1.47 billion compared to the anticipated $1.52 billion. For the full year, Axis Capital achieved a record operating EPS of $11.18 and a significant return on equity of 18.6%. The company also announced a new $400 million share repurchase program, replacing the previous $300 million program, and declared a quarterly dividend of $0.44 per common share. Axis Capital’s gross premiums grew by 7.8% to $9 billion, while net investment income reached a record $759 million. The company’s combined ratio improved to 92.3%, indicating better underwriting results. Additionally, the firm maintains strong financial ratings, with an "A+" from Standard & Poor’s and an "A" from A.M. Best.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.