Investors interested in Insurance - Property and Casualty stocks are likely familiar with Axis Capital (AXS) and Berkshire Hathaway B (BRK.B) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earni ...

Axis Capital (AXS) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.Analysts' growing optimism on the earnings prospects of this insurance company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estim ...

Financial Data and Key Metrics Changes - In 2023, AXIS Capital generated operating income of $486 million, with a return on average common equity of 7.9% and an operating return on equity of 11%. Excluding reserve strengthening, these figures were 15.4% and 18.5% respectively [6][14] - The company achieved record premium production of $8.4 billion and net investment income of $612 million, with a 15% year-over-year growth in diluted book value per share [6][14] - The current accident year combined ratio improved to 91.8%, a more than four-point year-over-year improvement [6] Business Line Data and Key Metrics Changes - The insurance business generated gross premiums written of $6.1 billion for the year, a 10% increase compared to the prior year, with a combined ratio of 92.5% [16][18] - The reinsurance segment saw a combined ratio of 107.6% for the year, which includes 14.6 points of net reserves strengthening [21] - The insurance accident year loss ratio was 52% for the quarter, consistent with previous quarters, while the reinsurance current accident year loss ratio ex-cat weather was 64.5% [19][21] Market Data and Key Metrics Changes - AXIS is a leading player in the US wholesale marketplace, achieving five consecutive years of double-digit growth, with a 76 accident year combined ratio in 2023 [8] - The company is recognized as a global leader in renewable energy, with a focus on profitable growth in this sector [8] - The reinsurance portfolio has transitioned to a more consistent and profitable book value, with favorable pricing above trend in most lines of business [20][21] Company Strategy and Development Direction - AXIS aims to elevate itself as a specialty underwriting leader, focusing on targeted underwriting strategies and a diversified portfolio [5][6] - The company is investing in best-in-class capabilities in underwriting, claims, and operations, with a focus on digital and automation improvements [10][11] - AXIS expects to deliver a consistent low 90s combined ratio and expense ratio in the low 30s, with double-digit ROE and book value per share growth [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence entering 2024, citing favorable market conditions and ongoing investments in people and operating capabilities [12][24] - The company anticipates continued growth in insurance and a strong capital position to support both growth and share repurchases [42][43] - Management highlighted the importance of maintaining a disciplined approach to underwriting and capital allocation in a competitive environment [7][12] Other Important Information - AXIS returned $38 million to shareholders through common dividends in 2023, with a total year-to-date capital return of approximately $153 million [24] - The company is evaluating the implications of Bermuda's Income Tax Act and expects to provide updates in the coming months [25] Q&A Session Summary Question: What kind of inflation assumptions were changed regarding reserve charges? - Management adjusted all inflation assumptions, moving trends to high single digits, encompassing social inflation and severity trends [28] Question: Where do you stand in terms of COVID-related reserves? - Some reserves remain for COVID claims, particularly in the reinsurance segment, while insurance reserves are mostly paid out [32] Question: Can you clarify the insurance loss ratio and any one-off items? - The underlying loss ratio was consistent, with no significant one-off items affecting the quarter [36] Question: What is the prioritization of capital towards buybacks versus organic growth? - The primary focus is on profitable growth, but the company also sees value in repurchasing shares at current prices [42][43] Question: Will the reserve charge impact the ceded reinsurance program in 2024? - While modest changes are expected, the reshaped portfolio should not lead to material impacts [45] Question: What is the outlook for total G&A expenses in 2024? - G&A expenses are expected to decrease as the company continues to improve efficiency [46] Question: How did timing affect reinsurance premiums? - Adjustments and renewals that moved out of the quarter contributed to lower premiums, with a normalized growth rate of just over 5% [49][50]

AXIS Capital Holdings Limited (AXS) posted fourth-quarter 2023 operating income of $2.94 per share, in contrast to the Zacks Consensus Estimate of a loss of $1.25. The bottom line increased 50.8% year over year.The insurer’s results reflected higher premiums written, net investment income and increased underwriting income.Quarterly Operational Update Total operating revenues of $1.5 billion beat the Zacks Consensus Estimate by 2.7%. The top line however declined 2.1% year over year on lower premiums earned. ...

Axis Capital (AXS) reported $1.46 billion in revenue for the quarter ended December 2023, representing a year-over-year decline of 2.2%. EPS of $2.94 for the same period compares to $1.95 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.42 billion, representing a surprise of +2.67%. The company delivered an EPS surprise of +335.20%, with the consensus EPS estimate being -$1.25.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall ...

PEMBROKE, Bermuda--(BUSINESS WIRE)--AXIS Capital Holdings Limited ("AXIS Capital" or "AXIS" or "the Company") (NYSE: AXS) today announced financial results for the fourth quarter ended December 31, 2023. Commenting on the fourth quarter 2023 financial results, Vince Tizzio, President and CEO of AXIS Capital, said: "This was a transformative year for AXIS, one where we further elevated all aspects of how we operate and go to market, and we believe the Company is on a clear path to becoming a specialty unde ...

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth S ...

Axis Capital (AXS) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Since a changing ea ...

Investors interested in Insurance - Property and Casualty stocks are likely familiar with Axis Capital (AXS) and Berkshire Hathaway B (BRK.B) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings est ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they ...