PEMBROKE, Bermuda, March 26, 2026 (GLOBE NEWSWIRE) -- AXIS Capital Holdings Limited (“AXIS Capital” or “AXIS” or the “Company”) (NYSE: AXS) today announced that Matthew Kirk has assumed the role of Chief Financial Officer at AXIS, effective March 31, 2026, completing a planned leadership transition, which was first announced on August 14, 2025. Mr. Kirk reports directly to AXIS President and CEO Vince Tizzio, serves on the Company’s Executive Committee, and is based in New York. “We are proud and excited to ...

Core Viewpoint - The comparison between Axis Capital (AXS) and W.R. Berkley (WRB) indicates that AXS presents a better value opportunity for investors in the Property and Casualty insurance sector [1] Valuation Metrics - AXS has a forward P/E ratio of 7.66, significantly lower than WRB's forward P/E of 14.79, suggesting AXS is undervalued relative to WRB [5] - The PEG ratio for AXS is 2.01, while WRB's PEG ratio is higher at 2.65, indicating AXS may offer better growth potential relative to its price [5] - AXS's P/B ratio stands at 1.35, compared to WRB's P/B of 2.63, further supporting the notion that AXS is more attractively priced [6] Zacks Rank and Style Scores - AXS currently holds a Zacks Rank of 2 (Buy), while WRB has a Zacks Rank of 4 (Sell), indicating a stronger earnings outlook for AXS [3] - AXS has a Value grade of B, whereas WRB has a Value grade of C, reinforcing the preference for AXS among value investors [6]

Core Viewpoint - DUAL North America and AXIS Capital Holdings Limited have expanded their surety programme capacity after a successful first year, responding to increased client demand for larger bond limits Group 1: Programme Expansion - DUAL North America is increasing its surety programme capacity, with single-bond limits raised from $100 million to $150 million and aggregate per-principal limits increased from $200 million to $300 million [2][5] - The expansion is a direct response to the success experienced in the first year of operations in the surety segment [3] Group 2: Strategic Partnership - The surety programme is backed by AXIS Insurance Company, a subsidiary of AXIS Capital Holdings Limited, which is recognized as a global specialty insurer and reinsurer [3] - The partnership aims to build a world-class surety portfolio, leveraging increased resources and expertise to meet client needs [3][5] Group 3: Product Offering - The programme offers a variety of surety products, including commercial, contract, and international bonds, supported by DUAL's underwriting team [4] - The underwriting team collaborates with brokers and clients to create tailored solutions for projects requiring surety coverage [4]

Core Insights - The price-to-earnings (P/E) ratio is a popular metric among investors for identifying undervalued stocks, but it has limitations, particularly in valuing loss-making firms and being susceptible to accounting manipulation [1][6] - The EV-to-EBITDA ratio is considered a more comprehensive alternative, providing a clearer picture of a company's valuation and earnings potential by accounting for debt and excluding non-cash expenses [2][4][10] Valuation Metrics - EV-to-EBITDA is calculated by dividing a company's enterprise value (EV) by its earnings before interest, taxes, depreciation, and amortization (EBITDA), offering a better understanding of profitability [4] - A lower EV-to-EBITDA ratio indicates a potentially undervalued stock, making it attractive for acquisition targets as it reflects the debt burden an acquirer would assume [5][10] - P/E ratios cannot be used for loss-making firms, while EV-to-EBITDA can value EBITDA-positive companies, making it useful for comparing firms with varying debt levels [6] Industry Comparisons - The EV-to-EBITDA ratio varies across industries, making it less appropriate for comparing stocks in different sectors due to diverse capital requirements [7] - A strategy based solely on EV-to-EBITDA may not be effective; it is recommended to combine it with other ratios like P/B, P/E, and P/S for a more robust stock screening approach [8] Screening Criteria for Value Stocks - Parameters for screening value stocks include: - EV-to-EBITDA ratio lower than the industry median [9] - P/E ratio lower than the industry median [9] - P/B ratio lower than the industry median [11] - P/S ratio lower than the industry median [11] - Estimated one-year EPS growth greater than or equal to the industry median [11] - Average 20-day volume greater than or equal to 100,000 [12] - Current price greater than or equal to $5 [12] - Zacks Rank of 1 or 2 [12] - Value Score of A or B [13] Selected Stocks - Eni S.p.A. (E) has a Zacks Rank of 1 and a Value Score of A, with an expected earnings growth rate of 10.3% for 2026 [13][14] - Sanmina Corporation (SANM) has a Zacks Rank of 1 and a Value Score of B, with an expected earnings growth rate of 66.5% for fiscal 2026 [14][15] - FirstSun Capital Bancorp (FSUN) has a Zacks Rank of 2 and a Value Score of A, with an expected earnings growth rate of 13.8% for 2026 [15][16] - First American Financial Corporation (FAF) has a Zacks Rank of 2 and a Value Score of A, with an expected earnings growth rate of 5% for 2026 [17][18] - AXIS Capital Holdings Limited (AXS) has a Zacks Rank of 2 and a Value Score of B, with an expected earnings growth rate of 2.5% for 2026 [18][19]

Core Viewpoint - Axis Capital reported strong fourth-quarter earnings growth driven by higher net premiums and investment gains, despite increased expenses [2][4]. Financial Performance - The company achieved fourth-quarter operating income of $3.25 per share, exceeding the Zacks Consensus Estimate by 9.4% and reflecting a year-over-year increase of 9.4% [2]. - Total operating revenues reached $1.7 billion, surpassing the Zacks Consensus Estimate by 5.2% and increasing nearly 9% year over year [3]. - Net premiums written rose 13% to $1.4 billion, with a 14% increase in the Insurance segment and 5% growth in the Reinsurance segment [3]. Investment Income and Expenses - Net investment income decreased by 4.5% year over year to $187 million, falling short of the Zacks Consensus Estimate of $198 million [4]. - Total expenses increased by 16.6% year over year to $1.4 billion, driven by higher net losses, acquisition costs, and administrative expenses [4]. Underwriting Performance - Pre-tax catastrophe losses amounted to $30 million, including $17 million from Hurricane Melissa [5]. - Underwriting income increased by 42% year over year to $184 million, with the combined ratio improving to 90.4 from 94.2 a year ago [5]. Segment Results - In the Insurance segment, gross premiums written improved by 11.7% year over year to $1.9 billion, with underwriting income rising 74.2% to $157.6 million [6]. - In the Reinsurance segment, gross premiums written increased by 13% year over year to $310.7 million, while underwriting income decreased by 31.9% to $26.6 million [7]. Full-Year Highlights - For the full year 2025, operating income was reported at $12.92 per share, exceeding the Zacks Consensus Estimate by 1.9% and reflecting a 15.6% year-over-year increase [8]. - Total operating revenues for the year reached $6.5 billion, beating the Zacks Consensus Estimate by 1.2% and increasing by 6.7% year over year [8]. Financial Position - At the end of the fourth quarter, cash and cash equivalents stood at $820.3 million, down 61.7% from the previous year [10]. - Debt was reported at $1.3 billion, a slight increase of 0.1% from the previous year [10]. - Book value per diluted common share increased by 18.3% to $77.20 [10]. Capital Deployment - The company repurchased $888 million of common shares in 2025 and declared a quarterly cash dividend of 44 cents per share, totaling $139 million in annual dividends [11]. Market Outlook - Estimates for Axis Capital have been trending upward, with a consensus estimate shift of 7.92% [12]. - The company holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [14]. Industry Comparison - Axis Capital is part of the Zacks Insurance - Property and Casualty industry, with competitor W.R. Berkley reporting a revenue increase of 5.9% year over year [15].

Premiums and Revenue - Gross premiums written in the insurance segment for 2025 reached $7,179,206, an increase of 8.5% from $6,615,584 in 2024 and 17% from $6,140,764 in 2023[38] - Gross premiums written in the reinsurance segment for 2025 totaled $2,465,308, reflecting an increase of 3.1% from $2,390,304 in 2024 and 11.3% from $2,215,761 in 2023[48] - Total gross premiums written across both segments for 2025 amounted to $9,644,514, up 7.1% from $9,005,888 in 2024 and 15.4% from $8,356,525 in 2023[38] Business Segments - The insurance segment's primary lines of business include Professional Lines, Property, Liability, Cyber, Marine and Aviation, and Accident and Health, catering to various niche markets globally[39][40] - The reinsurance segment provides coverage primarily through liability, professional lines, motor, accident and health, credit and surety, agriculture, and marine and aviation, with a focus on excess of loss and proportional business[44][45] Strategic Goals and Differentiation - The company aims to achieve positive differentiation in the insurance segment through underwriting expertise and customized solutions, enhancing competitive positioning[43] Investment Strategy - The investment portfolio is structured to balance increasing book value with stable investment income, focusing on liquidity to meet claims obligations[50] - A significant portion of the investment portfolio is allocated to investment-grade fixed maturities, while also diversifying into equities and alternative investments for higher potential returns[51] - The company utilizes third-party investment managers for active portfolio management, ensuring adherence to guidelines and objectives for each asset class[52] - The Finance Committee of the Board of Directors oversees the overall asset allocation and investment policy to align with the company's strategic goals[52] Regulatory Compliance and Licensing - AXIS Specialty Bermuda is a Class 4 general business insurer licensed under the Insurance Act 1978 and has reinsurance permissions in China and the Netherlands[55] - AXIS Capital's U.S. Insurance Subsidiaries are required to file detailed quarterly statutory financial statements with state insurance regulators[67] - AXIS Specialty Europe is authorized to conduct business in 16 non-life insurance classes throughout the EU and EEA[76] - AXIS Re SE is authorized to transact reinsurance throughout the EU and EEA and is subject to Solvency II[81] - AXIS Specialty Bermuda obtained reciprocal jurisdiction reinsurer status with Missouri, allowing it to avoid posting reinsurance collateral in reciprocal jurisdictions[73] - The Bermuda Monetary Authority (BMA) has granted full "equivalence" under Solvency II for Bermuda's commercial insurance sector, including Class 4 insurers[58] - AXIS Group Benefits LLC is an authorized insurance producer in all U.S. states except Hawaii, providing affordable health plans for hourly and part-time workers[70] - AXIS Specialty Europe has local regulatory permission to carry on insurance business in Jersey and has permission to write surplus lines business in all 50 U.S. states[79] - The U.S. Insurance Subsidiaries are subject to various state statutory and regulatory restrictions that limit the amount of dividends that may be paid from earned surplus without prior approval[68] - AXIS Specialty Europe operates under Freedom of Establishment in Belgium through its branch established in this jurisdiction[78] - AXIS Managing Agency Ltd. is authorized to manage Syndicate 1686 and Syndicate 2050, which commenced underwriting on April 1, 2024[88] - AXIS Corporate Capital UK II Limited provides 100% capital support to Syndicate 1686 starting January 1, 2025, up from 30% previously[93] Workforce and Talent Management - The number of employees at AXIS increased by approximately 5% in 2025, totaling 1,966 employees, with a voluntary turnover rate of 9.6% compared to 11.9% in 2024[114] - The company has a robust talent and succession planning process, conducting annual talent reviews focusing on high-performing and diverse talent[113] - AXIS offers a total rewards program designed to attract and retain top talent, including market competitive salaries and long-term incentives such as equity grants[111] Risk Management - The estimated net probable maximum loss (PML) for a Southeast U.S. hurricane event, net of reinsurance, is approximately $225 million, indicating a 1% chance of exceeding this loss annually[162] - The company has established a risk limit framework to manage natural catastrophe risks, aiming to limit capital loss from single and multiple events within a year[159] - The company employs a peer review process for underwriting risk governance, ensuring alignment with established guidelines and risk appetite[148] - The company utilizes both proportional and non-proportional reinsurance to mitigate insurance risk, with a centralized Risk Funding team overseeing treaty placements[155] - The company has a comprehensive risk governance structure, including a Risk Committee that reviews and approves the annual Own Risk and Solvency Assessment (ORSA) report[132] - The company’s risk landscape includes insurance, strategic, market, liquidity, credit, and operational risks, with ongoing assessments captured in a Risk Register[144] - The company’s Investment & Finance Committee monitors market risks and oversees the Group's investment activities, including strategic asset allocation[139] - The company has established tiered appetites for underwriting capacity based on loss scenarios and subject exposure, ensuring effective risk management[148] - The company’s operational risk framework is overseen by the Operational Risk Committee, which facilitates effective risk management practices throughout the organization[157] - The company has developed its PML estimates by combining judgment and experience with outputs from a commercially available catastrophe model, covering major peril regions with potential exposure[164] - Estimated net losses from peak zone catastrophes may change due to updates to vendor catastrophe models, changes in internal risk views, and foreign currency exchange rates[166] - The company employs a mixture of qualitative and quantitative data to assess terrorism risk, using both commercially available and bespoke modeling tools[168] - The estimation of loss reserves is subject to uncertainty, and the company follows actuarial best practices to determine these reserves[170] - The company maintains a strong claims handling process, with claims teams dedicated to main lines of business and regular reporting to senior management[172] Market and Liquidity Risks - Market risk is influenced by fluctuations in financial market prices, affecting the investment portfolio, and the company employs asset-liability management to mitigate these risks[180] - The company stress tests its investment portfolios to analyze the impact of unusual market conditions, ensuring potential losses remain within risk appetite[183] - Liquidity risk is managed through a range of policies, with liquidity generated primarily from premiums and investment income[186] - The company provides credit insurance primarily for lenders and commodity traders, requiring an evaluation of creditworthiness as part of the underwriting process[190] - Operational risk is managed through a group-wide framework, with processes in place to identify and mitigate key operational risks[196] - The capital management strategy includes early warning indicators to raise capital or amend business plans before reaching minimum requirements[199] - The company targets to hold an adequate buffer above the minimum capital required to comply with local solvency requirements[201] - Fixed maturities represent 85% of total investments and 78% of total cash and investments as of December 31, 2025, which may be adversely impacted by interest rate changes[259] - The company maintains cash and cash equivalents and high-quality liquid securities to meet expected outflows from potential extreme loss events[263] - Liquidity risk arises from the need to pay claims on extreme loss events and regulatory constraints limiting fund flow within the Group[262] - The company has access to diverse funding sources, including asset sales and external debt issuances, to cover contingencies[264] - Credit risk is heightened due to potential insolvency of third-party counterparties, impacting financial loss[265] - The company faces operational risks from inadequate processes, system failures, and human error, which could lead to financial losses[270] Cybersecurity and Regulatory Risks - Cybersecurity threats are increasing in sophistication, potentially impacting operations and data security[276] - Non-compliance with strict data protection laws could result in monetary fines and penalties that may be material[279] - The company relies on third-party service providers for technology and business process functions, which may lead to operational difficulties and increased costs if not managed effectively[280] - Regulatory risk arises from the company's failure to comply with legal, statutory, or regulatory obligations, potentially resulting in fines and penalties[281] - Non-compliance with data protection and privacy laws could lead to significant costs and adverse effects on the company's reputation and financial condition[282] - The company must navigate varying data protection laws across jurisdictions, which are increasingly scrutinized and evolving, impacting operational practices[283] - In Europe, compliance with data protection laws requires adherence regardless of the company's location, imposing obligations on processing personal data[284] - The company faces an increasing compliance burden in the U.S. as states enhance data protection regulations[285] - Investment in technical and organizational measures for data protection may incur significant costs and necessitate modifications to business practices[287] - Regulatory changes in the insurance sector, particularly in the U.K. and Bermuda, could impose higher capital requirements and governance standards[289] - The Bermuda Monetary Authority plans to change its supervisory approach, potentially increasing governance requirements for the company[290] - Regulatory authorities have broad powers to impose fines and penalties for non-compliance, which could lead to reputational damage and operational restrictions[291]

Dividend Announcements - AXIS Capital has declared a quarterly dividend of $0.44 per common share, payable on April 15, 2026, to shareholders of record as of March 31, 2026 [1] - A dividend of $34.375 per Series E 5.50% preferred share (equivalent to $0.34375 per depositary share) has also been declared, payable on the same date to shareholders of record as of March 31, 2026 [2] Share Repurchase Program - The Board of Directors has approved a new share repurchase program, authorizing the purchase of up to $300 million of the Company's common shares [3] - This new program supplements an existing share repurchase program, which had $112 million remaining as of December 31, 2025 [3] - The new share repurchase program is open-ended, allowing for opportunistic repurchases based on various market and economic conditions [4] Company Overview - AXIS Capital is a global specialty underwriter and provider of insurance and reinsurance solutions, with shareholders' equity of $6.4 billion as of December 31, 2025 [5] - The Company operates in multiple locations, including Bermuda, the United States, Europe, Singapore, and Canada [5] - AXIS Capital's operating subsidiaries have received strong financial strength ratings of "A+" from Standard & Poor's and "A" from A.M. Best [5]

Core Insights - AXIS Capital Holdings Limited (AXS) reported a fourth-quarter 2025 operating income of $3.25 per share, exceeding the Zacks Consensus Estimate by 9.4% and reflecting a year-over-year increase of 9.4% [1][9] - The company's total operating revenues reached $1.7 billion, surpassing the Zacks Consensus Estimate by 5.2% and showing a nearly 9% year-over-year growth driven by higher premiums earned [2][10] Financial Performance - Net premiums written increased by 13% to $1.4 billion, with a 14% rise in the Insurance segment and a 5% growth in the Reinsurance segment [2] - Net investment income decreased by 4.5% year over year to $187 million, falling short of the Zacks Consensus Estimate of $198 million [3] - Total expenses rose by 16.6% year over year to $1.4 billion, attributed to higher net losses, acquisition costs, and general administrative expenses [3] Underwriting Results - Pre-tax catastrophe and weather-related losses net of reinsurance amounted to $30 million, including $17 million from Hurricane Melissa [4] - Underwriting income increased by 42% year over year to $184 million, with the combined ratio improving to 90.4 from 94.2 a year ago [4][9] Segment Analysis - In the Insurance segment, gross premiums written improved by 11.7% year over year to $1.9 billion, with net premiums earned rising by 13.3% to $1.2 billion [5] - The Reinsurance segment saw gross premiums written increase by 13% year over year to $310.7 million, while net premiums earned rose by 4.2% to $365.6 million [6] Full-Year Highlights - For the full year 2025, AXIS reported an operating income of $12.92 per share, exceeding the Zacks Consensus Estimate by 1.9% and reflecting a 15.6% year-over-year increase [8] Capital Management - AXIS repurchased $888 million of common shares in 2025 and declared a quarterly cash dividend of 44 cents per share, totaling $139 million in annual dividends [12] - The company ended the fourth quarter with cash and cash equivalents of $820.3 million, down 61.7% from the previous year [11]

Financial Data and Key Metrics Changes - The company reported a net income available to common shareholders of $282 million for Q4 2025, translating to $3.67 per diluted common share, and a full-year net income of $978 million, or $12.35 per diluted common share, resulting in a 17% return on common equity [19][20] - The diluted book value per common share increased by 18% year-over-year to $77.20, with an operating return on equity of 18% [7][19] - Gross written premiums reached a record $9.6 billion for the full year, up 7% from the previous year, with a combined ratio of 89.8, the lowest since 2010 [7][21] Business Line Data and Key Metrics Changes - The insurance segment achieved record gross written premiums of $7.2 billion, a 9% increase year-over-year, and record underwriting income of $597 million, a 40% increase [10][11] - The reinsurance segment generated $2.5 billion in gross written premiums, reflecting a low single-digit increase over the prior year, with a combined ratio of 92.6 [16][17] Market Data and Key Metrics Changes - In North America, gross written premiums increased by 10%, driven by strategic investments in product and channel expansion [11] - The liability market saw overall rates increase by 10% in the quarter, with a 13% rate increase in U.S. excess casualty [14] - The property book grew by 12% across eight underwriting units worldwide, with varying degrees of competitive pressure [15] Company Strategy and Development Direction - The company is focused on profitable growth through strategic initiatives, including new and expanded business classes and investments in technology and AI solutions [8][9] - AXIS aims to maintain a disciplined cycle management approach, prioritizing profits over premiums [8] - The company is committed to investing $100 million in its "How We Work" transformation program to enhance operations and market approach [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its strategy and advance momentum into 2026, despite a changing risk landscape influenced by geopolitical tensions and economic uncertainties [5][14] - The company anticipates continued growth in gross written premiums at a mid- to high single-digit rate while maintaining premium adequacy [24] Other Important Information - The company has returned substantial capital to shareholders through $139 million in dividends and $888 million in share repurchases [31] - The effective tax rate for the quarter was 14%, with expectations for an ongoing overall effective tax rate in the 19%-20% range [31] Q&A Session Summary Question: Expense Ratio and Future Targets - The underwriting-related G&A expense ratio for the year was 12.4%, with a goal of 11% for 2026, and the overall expense ratio was 34.2% [34] - Management indicated that variable compensation impacted the G&A ratio, but they remain committed to achieving the 11% target [35][36] Question: Sustainability of Margins - Management expressed confidence in maintaining a combined ratio around 90% as they navigate the market conditions [60] Question: Growth Drivers in Lower Middle Market - The lower middle market segment has shown sustained growth due to strategic investments and customized solutions, with a favorable competitive landscape [77][78] Question: Core Loss Ratio Trends - Management noted that while there is pressure on the core loss ratio due to rate and trend, they are confident in their reserve position and overall underwriting results [68][71] Question: Third-Party Underwriting Contribution - Delegated underwriting represents approximately 32% of the company's volume, with expectations for continued growth in this area [87][89]

Financial Data and Key Metrics Changes - The company reported an 18% year-over-year increase in diluted book value per common share, reaching $77.20, and an operating return on equity of 18% [5][16] - Gross written premiums reached a record $9.6 billion, up 7% from the previous year, with a combined ratio of 89.8, the lowest since 2010 [5][16] - Net income available to common shareholders for the quarter was $282 million, or $3.67 per diluted common share, and for the full year, it was $978 million, or $12.35 per diluted common share [16] Business Line Data and Key Metrics Changes - The insurance segment produced record gross written premiums of $7.2 billion, a 9% increase over the prior year, and record underwriting income of $597 million, a 40% increase [8][21] - The reinsurance segment generated $2.5 billion in gross written premiums, a low single-digit increase over the prior year, with a combined ratio of 92.6 [13][24] - The property book grew by 12% across eight underwriting units worldwide, with significant contributions from lower middle market units [12][21] Market Data and Key Metrics Changes - In North America, gross written premiums increased by 10%, driven by strategic investments in product and channel expansion [9] - The liability market saw overall rates increase by 10% in the quarter, with U.S. Excess Casualty generating a 13% rate increase [11] - The company noted varying market conditions across different lines of business, with a cautious approach to the cyber insurance market due to escalating risks [13][11] Company Strategy and Development Direction - The company aims for profitable growth driven by strategic initiatives, including new and expanded business classes and investments in technology and AI solutions [6][7] - AXIS Capital is focused on maintaining a disciplined cycle management approach, prioritizing profits over premiums [6] - The company continues to invest in its "How We Work" transformation program, committing $100 million to enhance operations and market strategies [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its strategy and advance momentum into 2026, despite a changing risk landscape influenced by geopolitical tensions and economic uncertainties [5][10] - The company anticipates mid- to high single-digit growth in gross written premiums while maintaining premium adequacy [22] - Management remains cautious about the cyber insurance market and does not foresee it as a growth area unless risk-reward dynamics improve [13] Other Important Information - The company returned substantial capital to shareholders through $139 million in dividends and $888 million in share repurchases [28] - The effective tax rate for the quarter was 14%, influenced by a non-operating income benefit related to changes in Bermuda's tax laws [28] Q&A Session Summary Question: Expense ratio targets for 2026 - The company aims for an underwriting-related G&A expense ratio of 11% for 2026, with current ratios impacted by variable compensation [31][32] Question: Sustainability of margins - Management feels comfortable with a combined ratio target around 90%, acknowledging potential pressures from rate and trend [35][36] Question: Reserve confidence - Management expressed strong confidence in the reserve position, with releases primarily from short-tail lines [42][45] Question: Growth in lower middle market - The company is seeing sustained momentum in the lower middle market, driven by customized solutions and strategic investments [74][75] Question: Third-party underwriting impact - Delegated underwriting represents approximately 32% of the company's volume, with expectations for continued growth in this area [84][86]