AXIS Global Accident & Health, a unit of AXIS Capital Holdings Limited (AXS) inked a deal with red24 to provide the latter's domestic and international emergency, kidnap consultancy and security services besides its accident and health insurance products, including business travel accident insurance.
red24 is a leading international risk management solutions provider.
The liaison with red24 will help AXIS Capital to promptly act and manage emergency situations. Also, red24’s product offering coupled with AXIS Capital’s offering will further strengthen the company’s portfolio.
The transaction will also help AXIS Capital to write more policies, resulting in higher premiums in the upcoming quarters. In the second quarter, AXIS Capital reported a 11% year-over-year growth in gross premiums written. The improvement came on the back of benefits from new accident and health initiative, performance strength of the renewable energy insurance team in London and P&C operations in Canada and Australia.
In the second quarter, though AXIS Capital comfortably surpassed the Zacks Consensus Estimate, results lagged year-ago earnings as higher premiums coupled with higher investment income were more than offset by elevated expenses. The company also suffered hugely due to catastrophe losses.
The Zacks Consensus Estimate for third-quarter 2011 is 80 cents per share. For full years 2011 and 2012, the Zacks Consensus Estimates are, respectively, loss of 59 cents and earnings of $4.01 per share.
We retain our Neutral recommendation on AXIS Capital. The quantitative Zacks #3 Rank (short-term Hold rating) for the company indicates no clear directional pressure on the shares over the near term.
Headquartered in Pembroke, Bermuda, AXIS Capital is a global provider of specialty lines of insurance and treaty reinsurance. It competes with ACE Limited (ACE).
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