AXIS Capital Unit Gets Nod to Underwrite from Lloyd's China
AXIS Syndicate 1686, AXIS Capital Holdings Limited’s AXS syndicate at Lloyds got the nod from Lloyd’s to establish an underwriting division at Lloyd’s Insurance Company (China) Limited (Lloyd’s China). This new underwriting division at Lloyd’s China will write treaty reinsurance business there, beginning next year.
AXIS Capital, through AXIS Re has been working effectively in the Chinese reinsurance market over the last several years. While having a unit there will help it to expedite its operations, this will at the same time diversify its product portfolio. This is because it is adding treaty reinsurance to the suite that the syndicate underwrites.
In its last reported quarter, AXIS Capital missed the Zacks Consensus Estimate and deteriorated year over year on higher expenses and cat losses. However, the company continues to expand its Specialty Insurance, Reinsurance, and Accident and Health — to pave way for long-term growth. AXIS Capital also remains focused on augmenting its portfolio mix, and improving underwriting profitability apart from strengthening focus on casualty and professional lines in the insurance segment, and motor and reinsurance in particular.
To expedite its growth profile and boost shareholder value, AXIS Capital has chalked out plans to capitalize on opportunities by utilizing its resources prudently to enhance efficiencies and better serve clients and brokers across the globe. The insurer is also making organizational changes to support profitable growth in a demanding global marketplace.
These initiatives position the company well for long-term growth. The expected long-term earnings growth rate for the stock is currently pegged at 8.5%.
AXIS Capital presently carries a Zacks Rank #3 (Hold). Some better-placed property and casualty insurers are The Chubb Corp. CB, Cincinnati Financial Corp. CINF and RLI Corp. RLI. Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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