AXIS Capital Declares Quarterly Dividends and Announces New Share Repurchase Authorization

Rhea-AI Summary

AXIS Capital Holdings announced a quarterly dividend of $0.44 per common share and $34.375 per Series E 5.50% preferred share, both payable on July 18, 2024, to shareholders of record on June 28, 2024. The company also introduced a new share repurchase program authorizing up to $300 million in buybacks, adding to the existing $100 million repurchase program, with $36 million still available. This brings the total amount available for repurchases to $336 million. The repurchase timing and amount will depend on various market and economic factors.

Positive

• Quarterly dividend of $0.44 per common share declared.
• Dividend of $34.375 per Series E 5.50% preferred share declared.
• New share repurchase authorization of $300 million.
• Total share repurchase availability increased to $336 million.

Negative

• No specific timeline for share repurchases, leading to potential investor uncertainty.
• Dependence on market and economic conditions for share repurchases might delay actions.

Insights

Financial Analyst

AXIS Capital's declaration of a $0.44 quarterly dividend per common share and the new share repurchase authorization reflect a robust capital return strategy aimed at enhancing shareholder value. The repurchase of up to $300 million of common shares, in addition to the remaining $36 million from the prior program, brings the total repurchase capacity to $336 million. Share repurchases often signal to the market that the company considers its shares undervalued, suggesting management's confidence in their business prospects. This move can also increase earnings per share (EPS) by reducing the number of shares outstanding.

For retail investors, these announcements can be interpreted as positive indicators. The steady dividend payout provides income stability, while the share buyback program can potentially lead to capital appreciation. However, investors should also be aware that the effectiveness of these strategies depends significantly on the company's ability to sustain its financial health and operational performance over the long term. Market conditions and regulatory changes could impact the timing and execution of the repurchase program.

Market Research Analyst

The new share repurchase program aligns with industry trends where companies use repurchases to manage capital and return value to shareholders. From a market perspective, a large-scale buyback can create upward pressure on the stock price by reducing supply. Additionally, the open-ended nature of the repurchase program gives AXIS Capital flexibility to adapt to market conditions, potentially allowing them to take advantage of market dips to buy back shares at lower prices, maximizing shareholder value.

Nevertheless, retail investors should keep in mind that while share buybacks can be a positive sign, they are not a guaranteed method to enhance value. The actual impact on the stock price can vary based on overall market sentiment, investor perceptions and the company's financial performance. It’s essential to consider the broader market conditions and how well AXIS Capital can navigate potential economic uncertainties and regulatory changes.

PEMBROKE, Bermuda--(BUSINESS WIRE)-- AXIS Capital Holdings Limited ("AXIS Capital" or the “Company”) (NYSE: AXS) today announced that its Board of Directors has declared a quarterly dividend of $0.44 per common share payable on July 18, 2024 to shareholders of record at the close of business on June 28, 2024.

In addition, the Board declared a dividend of $34.375 per Series E 5.50% preferred share (equivalent to $0.34375 per depositary share) payable on July 18, 2024 to shareholders of record at the close of business on June 28, 2024.

AXIS Capital also announced that its Board of Directors approved a new share repurchase program, authorizing the Company to purchase up to an aggregate $300 million of the Company’s common shares. This new repurchase authorization is incremental to the Company’s previously announced $100 million share repurchase program, which has $36 million available for repurchases. The new share repurchase program will bring the total amount for future repurchases available to $336 million.

The new share repurchase program is open-ended, allowing the Company to repurchase its shares from time to time in the open market or in privately negotiated transactions. The Company will consider share repurchases on an opportunistic basis. The timing and amount of the repurchases will depend on a variety of factors, including market, economic, corporate and regulatory conditions.

About AXIS Capital

AXIS Capital, through its operating subsidiaries, is a global specialty underwriter and provider of insurance and reinsurance solutions. The Company has shareholders’ equity of $5.5 billion at March 31, 2024, and locations in Bermuda, the United States, Europe, Singapore and Canada. Its operating subsidiaries have been assigned a financial strength rating of "A+" ("Strong") by Standard & Poor’s and "A" ("Excellent") by A.M. Best. For more information about AXIS Capital, visit our website at www.axiscapital.com.

Follow AXIS Capital on LinkedIn and X Corp.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240516435841/en/

Investor Contact

Cliff Gallant

+1 (415) 262-6843

investorrelations@axiscapital.com

Media Contact

Anna Kukowski

+1 (212) 715 3574

anna.kukowski@axiscapital.com

Source: AXIS Capital Holdings Limited

FAQ

What is the dividend declared by AXIS Capital for common shares?

AXIS Capital declared a quarterly dividend of $0.44 per common share, payable on July 18, 2024.

When are the dividends payable by AXIS Capital?

The dividends are payable on July 18, 2024, to shareholders of record at the close of business on June 28, 2024.

What is the Series E 5.50% preferred share dividend announced by AXIS Capital?

AXIS Capital announced a dividend of $34.375 per Series E 5.50% preferred share, equivalent to $0.34375 per depositary share.

How much has AXIS Capital authorized for its new share repurchase program?

AXIS Capital has authorized up to $300 million for its new share repurchase program.

What is the total amount available for share repurchases by AXIS Capital?

The total amount available for share repurchases by AXIS Capital is $336 million.

Under what conditions will AXIS Capital repurchase shares?

AXIS Capital will consider share repurchases based on market, economic, corporate, and regulatory conditions.