JP Morgan Updates Its Estimates On Axis Capital Holdings After 1Q Catastrophes

On March 21, 2011, Axis Capital AXS provided its 1Q 2011 net loss estimate for the New Zealand earthquake and Australian floods/Yasi in the range of $185-$215 million and $90-$100 million, respectively. Additionally, the company estimated losses from the Japan earthquake in its reinsurance segment will be less than 1.3% of total industry losses and less than $25 million in its insurance segment. As a result, J.P Morgan is lowering its 2011-2013 operating EPS estimates by $3.89, $0.20, and $0.25 to a net loss of $0.29 and EPS of $3.30 and $2.90, respectively. J.P Morgan's reduced EPS estimates reflect New Zealand/Australia/Japan catastrophe losses in 1Q 2011, lower share repurchases in 2011, and assume no improvement in property reinsurance pricing. J.P Morgan has a $36 PT and Neutral rating on AXS AXS closed Monday at $33.56