PEMBROKE, Bermuda - AXIS Capital Holdings Limited (NYSE:AXS) has announced a new share repurchase program, with the Board of Directors authorizing up to $300 million in buybacks of the company's common shares. This new program is in addition to the existing $100 million share repurchase program, which still has $36 million available for repurchases, bringing the total potential future buybacks to $336 million.
The company also declared quarterly dividends for both its common and preferred shares. Common shareholders are set to receive $0.44 per share, and holders of Series E 5.50% preferred shares will receive dividends equivalent to $0.34375 per depositary share. Both dividends are payable on July 18, 2024, to shareholders of record as of the close of business on June 28, 2024.
The timing and volume of the share repurchases under the new program will be determined by a range of factors, including market conditions and corporate and regulatory considerations. The program does not have a fixed expiration date, allowing AXIS Capital flexibility in its repurchase strategy.
AXIS Capital is a global specialty underwriter, providing insurance and reinsurance solutions through its operating subsidiaries. As of March 31, 2024, the company reported shareholders' equity of $5.5 billion. With a strong presence in key markets, including Bermuda, the United States, Europe, Singapore, and Canada, AXIS Capital's operating subsidiaries have earned "A+" ("Strong") and "A" ("Excellent") financial strength ratings from Standard & Poor’s and A.M. Best, respectively.
InvestingPro Insights
AXIS Capital Holdings Limited's (NYSE:AXS) recent announcement of an expanded share repurchase program aligns with the company's proactive capital management strategy, as evidenced by an InvestingPro Tip highlighting management's aggressive share buybacks. The company's commitment to shareholder returns is further underscored by another InvestingPro Tip indicating that AXIS has raised its dividend for 21 consecutive years, a testament to its financial consistency and reliability.
InvestingPro Data reveals a robust financial picture for AXIS, with a market capitalization of $5.98 billion and a P/E ratio of 10.72, which adjusts to an even more attractive 9.95 when considering the last twelve months as of Q1 2024. This valuation metric suggests a potentially undervalued stock, especially when paired with a PEG ratio of just 0.07, indicating that the expected earnings growth rate is significantly higher than the P/E ratio. The company's revenue growth is also solid, with a 9.69% increase over the last twelve months as of Q1 2024, signaling continued business expansion.
For readers looking to delve deeper into AXIS Capital's financial health and potential investment value, InvestingPro offers additional insights, including a total of 12 InvestingPro Tips that provide a comprehensive analysis of the company's financial performance and market position. Interested investors can further explore these tips by visiting https://www.investing.com/pro/AXS and can take advantage of a special offer using coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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