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Axis Capital Holdings Ltd (NYSE:AXS) has amended its existing $300 million secured letter of credit facility with Citibank Europe plc, extending the tenor of issuable letters of credit until March 31, 2027. The amendment, effective as of Monday, was announced in a recent SEC filing. The company, currently valued at $8 billion, has demonstrated strong financial performance with a "GREAT" financial health score according to InvestingPro analysis.
The subsidiaries of Axis Capital involved in the amendment include AXIS Specialty Limited, AXIS Re SE, AXIS Specialty Europe SE, AXIS Insurance Company, AXIS Surplus Insurance Company, and AXIS Reinsurance Company. These entities remain participants in the uncommitted secured letter of credit facility that was originally established on March 26, 2024, with Citibank Europe plc. The terms of the original facility are unchanged by the amendment. The company’s financial stability is reflected in its conservative debt profile, with a debt-to-equity ratio of 0.27 and strong current ratio of 1.45.
This move ensures that Axis Capital’s subsidiaries have continued access to the credit facility for an additional two years beyond the original agreement, which is a strategic step in maintaining their financial flexibility.
The amendment agreement was attached as Exhibit 10.1 to the 8-K filing, which provides the full text for reference. The information contained in the 8-K filing regarding the creation of a direct financial obligation or an obligation under an off-balance sheet arrangement of a registrant is incorporated by reference under this announcement.
Axis Capital Holdings Limited is a Bermuda company that provides various insurance and reinsurance products and services. The company is listed on the New York Stock Exchange and is part of the fire, marine, and casualty insurance industry.
This financial development is based on the latest SEC filing by Axis Capital Holdings Ltd, providing investors and stakeholders with the latest information on the company’s financial arrangements.
In other recent news, AXIS Capital Holdings Ltd reported stronger-than-expected earnings for the fourth quarter of 2024, with earnings per share (EPS) reaching $2.97, exceeding analysts’ forecasts of $2.57. However, the company’s revenue fell short of expectations, coming in at $1.47 billion against a forecast of $1.52 billion. Keefe, Bruyette & Woods analyst Meyer Shields raised the price target for AXIS Capital to $118, maintaining an Outperform rating, following an analysis of the company’s year-end 2024 GAAP reserve triangles. Shields also increased the EPS estimates for 2025 and 2026 to $11.45 and $12.45, respectively.
Additionally, TD Cowen analyst Andrew Kligerman reiterated a Buy rating on AXIS Capital, seeing a 30% upside potential for the stock with a price target of $127. AXIS Capital announced a new $400 million share repurchase program, replacing a previous $300 million program, and declared a quarterly dividend of $0.44 per common share. The company also completed a $200 million stock repurchase from T-VIII PubOpps LP as part of its broader capital management strategy.
AXIS Capital’s management expressed confidence in their underwriting capabilities and reserve strength, which are seen as positive developments for the company’s future. The company’s recent initiatives, including the share repurchase program and dividend declaration, reflect its commitment to managing shareholder value and maintaining financial strength.
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