Axis Capital to repurchase $200M in shares from T-VIII PubOpps

In a strategic move, AXIS Capital Holdings Limited (NYSE:AXS) announced today that it has entered into a definitive agreement to repurchase approximately $200 million worth of its common shares. The transaction is set to take place with T-VIII PubOpps LP, an investment vehicle managed by Stone Point Capital LLC.

The move comes as AXIS Capital demonstrates strong market performance, with the stock trading near its 52-week high of $94.89 and delivering an impressive 63% return over the past year. According to InvestingPro analysis, the company has been consistently returning value to shareholders, maintaining dividend payments for 22 consecutive years.

The repurchase agreement, dated Monday, involves the acquisition of 2,234,636 AXIS shares from T-VIII PubOpps LP. This share buyback is part of AXIS Capital’s ongoing stock repurchase program authorized by the company’s board.

Significantly, the shares being repurchased constitute a portion of the holdings of the Trident (NSE:TRIE) Funds, managed by Stone Point, which currently own approximately 8% of AXIS’s outstanding common shares. Following the completion of this transaction, the Trident Funds’ ownership is expected to decrease to around 5%.

Charles Davis, a director of AXIS Capital and the Chairman, Co-Chief Executive Officer, and a member of Stone Point, is indirectly associated with the selling party. Davis’s role includes serving as the Chairman of the Investment Committees of the Trident Funds.

This financial maneuver is expected to be executed under the terms outlined in the stock repurchase agreement, which has been filed with the SEC and is incorporated by reference into this report. InvestingPro data reveals that AXIS Capital maintains a strong financial position with a "GREAT" overall health score of 3.08 out of 4, suggesting robust operational efficiency.

The company’s attractive P/E ratio of 7.37 and current Fair Value assessment indicate potential undervaluation, making it an interesting case study among the 1,400+ companies covered in InvestingPro’s comprehensive research reports.

The repurchase underscores AXIS Capital’s commitment to managing its capital efficiently and is in line with its strategy to enhance shareholder value. The company’s decision to buy back shares reflects a confidence in its financial strength and future prospects, supported by strong fundamentals including a healthy return on equity of 21% and a solid dividend yield of 1.93%.

For deeper insights into AXIS Capital’s valuation and growth prospects, investors can access detailed analysis and additional ProTips through InvestingPro’s comprehensive research platform.

Investors and stakeholders can refer to the full details of the repurchase agreement in the Exhibit 10.1 of the Form 8-K filed with the Securities and Exchange Commission. The information in this article is based on a press release statement and the aforementioned SEC filing.

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