For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Axis Capital (AXS) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Finance sector should help us answer this question.Axis Capital is one of 871 companies in the Finance group. The Finance group c ...

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Investors with an interest in Insurance - Property and Casualty stocks have likely encountered both Axis Capital (AXS) and Cincinnati Financial (CINF) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate r ...

Financial Data and Key Metrics Changes - The company reported a net income available to common shareholders of $173 million or $2.04 per diluted common share, resulting in an annualized ROE of 13% [33] - Book value per diluted common share increased to $64.65 at quarter end, reflecting a nearly 20% year-to-date growth [33] - Operating income was $230 million or $2.71 per diluted common share, leading to an annualized operating ROE of 17.3% [33] - The combined ratio for the quarter was 93.1%, despite the impact of Hurricanes Helene and Beryl [34] - The current accident year loss ratio ex-CAT and weather was 55.7% [34] Business Line Data and Key Metrics Changes - The insurance segment achieved gross premiums written of $1.5 billion, a 4.7% increase compared to the prior year [42] - The combined ratio for the insurance segment was 90.4%, including 7% of CAT and weather-related losses, resulting in $99 million of underwriting income [46] - In the reinsurance segment, gross premiums decreased by 8.7% in the quarter, but year-to-date growth was up 5% [47][48] - The reinsurance combined ratio was 91.4%, with an ex-CAT and weather loss ratio of 66% [49] Market Data and Key Metrics Changes - The company reported a 5.8% group-level catastrophe ratio against an estimated $40 billion in industry losses [8] - The North American strategic initiatives are gaining traction, with the U.S. lower middle market units producing 17% growth over the prior year quarter [15] - The company noted increased competition in the marine, aviation, and property lines within global markets [16] Company Strategy and Development Direction - The company continues to focus on premium adequate short tail lines that align with underwriting capabilities and broker needs [11] - The strategic principles shared at the investor day are gaining traction, emphasizing profitable growth and expense management [7] - The company is investing in technology and talent, including partnerships with AI-driven platforms to enhance submission and underwriting processes [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to generate profitable growth despite a dynamic market environment [28] - The company is optimistic about leveraging its diverse product set and distribution channels [20] - Management highlighted the importance of maintaining a disciplined approach in competitive markets, particularly in property and casualty lines [22][23] Other Important Information - The company returned $77 million to shareholders through dividends and share repurchases [54] - The effective tax rate for the quarter was 21%, higher than the historical rate due to strong profitability in higher tax geographies [53] Q&A Session Summary Question: Concerns about reserving and long tail casualty lines - Management conveyed confidence based on the first nine months of reported results and actions taken in 2023 [56][57] - A full reserve review will be conducted at year-end 2024, with a focus on the underlying lines of business [58][60] Question: Confidence in property market growth - Management cited portfolio construction, geographic spread, and premium adequacy as factors supporting continued growth in the property business [62] Question: Core loss ratio in insurance - The increase in the core loss ratio was attributed to prudence rather than negative trends [66] Question: Cyber insurance growth outlook - Management acknowledged a short-term hit on written premiums but expressed confidence in long-term growth opportunities [70] Question: Expectations for premium growth in 2025 - Management emphasized a focus on profitability over premium growth, with confidence in the ability to grow the business in attractive markets [80]

AXIS Capital Holdings Limited (AXS) posted third-quarter 2024 operating income of $2.71 per share, beating the Zacks Consensus Estimate by 8.4%. The bottom line increased 16% year over year.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The insurer’s results reflected improved net investment income and higher premiums, offset by poor underwriting income and higher expenses.Quarterly Operational Update  Total operating revenues of $1.5 billion beat the Zacks Consensus Estimate by 0. ...

Axis Capital (AXS) reported $1.58 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 6.2%. EPS of $2.71 for the same period compares to $2.34 a year ago. The reported revenue represents a surprise of +0.40% over the Zacks Consensus Estimate of $1.57 billion. With the consensus EPS estimate being $2.50, the EPS surprise was +8.40%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall St ...

Axis Capital (AXS) came out with quarterly earnings of $2.71 per share, beating the Zacks Consensus Estimate of $2.50 per share. This compares to earnings of $2.34 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 8.40%. A quarter ago, it was expected that this insurance company would post earnings of $2.52 per share when it actually produced earnings of $2.93, delivering a surprise of 16.27%. Over the last four quarters, the co ...

AXIS CAPITAL HOLDINGS LIMITED INVESTOR FINANCIAL SUPPLEMENT THIRD QUARTER 2024 | --- | --- | |------------------------------------------------------|-------| | | | | | | | AXIS Capital Holdings Limited | | | 92 Pitts Bay Road Pembroke HM 08 Bermuda | | | | | | Contact Information: Cliff Gallant | | | Investor Contact (415) 262-6843 | | | investorrelations@axiscapital.com | | | Website Information: www.axiscapital.com | | This report is for informational purposes only. It should be read in conjunction with t ...

[PART I - Financial Information](index=3&type=section&id=PART%20I%20-%20Financial%20Information) [Item 1. Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) AXIS Capital Holdings Limited's unaudited consolidated financial statements and notes for the period ended September 30, 2024, are presented [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of September 30, 2024, total assets grew to $32.7 billion, liabilities to $26.6 billion, and shareholders' equity to $6.1 billion Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Total Investments** | $16,667,045 | $15,260,960 | | **Total Assets** | $32,722,648 | $30,250,672 | | **Reserve for losses and loss expenses** | $17,295,329 | $16,434,018 | | **Total Liabilities** | $26,639,421 | $24,987,476 | | **Total Shareholders' Equity** | $6,083,227 | $5,263,196 | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Net income available to common shareholders significantly increased to $765.5 million for the nine months ended September 30, 2024 Key Operating Results (in thousands, except per share data) | Metric | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | :--- | :--- | | **Net Premiums Earned** | $1,366,701 | $1,322,564 | $3,929,221 | $3,818,508 | | **Net Investment Income** | $205,100 | $154,201 | $563,458 | $424,802 | | **Total Revenues** | $1,610,821 | $1,433,995 | $4,485,880 | $4,162,083 | | **Net Income** | $180,728 | $188,098 | $788,153 | $518,870 | | **Net Income Available to Common Shareholders** | $173,165 | $180,535 | $765,465 | $496,182 | | **Earnings per Diluted Common Share** | $2.04 | $2.10 | $8.97 | $5.77 | [Note 3 - Segment Information](index=13&type=section&id=Note%203%20-%20Segment%20Information) The company's Insurance and Reinsurance segments reported underwriting income of $337.4 million and $104.6 million respectively for the nine months ended September 30, 2024 Underwriting Income by Segment - Nine Months Ended Sep 30 (in thousands) | Segment | 2024 | 2023 | | :--- | :--- | :--- | | **Insurance** | $337,414 | $322,617 | | **Reinsurance** | $104,556 | $112,217 | | **Total Underwriting Income** | $441,970 | $434,834 | Combined Ratio by Segment - Nine Months Ended Sep 30 | Segment | 2024 | 2023 | | :--- | :--- | :--- | | **Insurance** | 88.4% | 87.3% | | **Reinsurance** | 92.1% | 92.5% | | **Total** | 91.6% | 91.7% | - For the nine months ended Sep 30, 2024, the Insurance segment's gross premiums written increased by **8% to $4.9 billion**, while the Reinsurance segment's grew by **5% to $2.1 billion**[47](index=47&type=chunk) [Note 4 - Investments](index=16&type=section&id=Note%204%20-%20Investments) Total investments reached $16.7 billion by September 30, 2024, with net investment income increasing to $563.5 million for the nine-month period Investment Portfolio Composition (Fair Value, in thousands) | Asset Class | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Fixed maturities, available for sale | $13,768,193 | $12,234,742 | | Equity securities | $604,834 | $588,511 | | Mortgage loans, held for investment | $524,929 | $610,148 | | Other investments | $939,734 | $949,413 | | **Total Investments** | **$16,667,045** | **$15,260,960** | Net Investment Income (in thousands) | Period | 2024 | 2023 | | :--- | :--- | :--- | | **Three months ended Sep 30** | $205,100 | $154,201 | | **Nine months ended Sep 30** | $563,458 | $424,802 | - The company has unfunded commitments of **$259 million** to direct lending funds, **$117 million** to private equity funds, and **$95 million** to real estate funds as of September 30, 2024[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk) [Note 7 - Reserve for Losses and Loss Expenses](index=38&type=section&id=Note%207%20-%20Reserve%20for%20Losses%20and%20Loss%20Expenses) Gross reserves for losses and loss expenses increased to $17.3 billion by September 30, 2024, with $8.0 million in favorable prior year development Reserve Roll-Forward - Nine Months Ended Sep 30, 2024 (in thousands) | Description | Amount | | :--- | :--- | | **Gross reserve, beginning of period** | $16,434,018 | | **Net incurred losses and loss expenses** | $2,326,532 | | *Current year* | *$2,334,543* | | *Prior years (favorable)* | *($8,011)* | | **Net paid losses and loss expenses** | ($2,077,859) | | **Gross reserve, end of period** | $17,295,329 | - Catastrophe and weather-related losses for the nine months ended Sep 30, 2024, were **$145 million**, compared to **$112 million** for the same period in 2023. Key events included Hurricane Helene and Hurricane Beryl[147](index=147&type=chunk) Net Favorable Prior Year Reserve Development - Nine Months Ended Sep 30 (in thousands) | Segment | 2024 | 2023 | | :--- | :--- | :--- | | **Insurance** | $4,008 | $5,433 | | **Reinsurance** | $4,003 | $7,685 | | **Total** | $8,011 | $13,118 | [Note 10 - Shareholders' Equity](index=46&type=section&id=Note%2010%20-%20Shareholders%27%20Equity) The company repurchased 2.4 million common shares for $154.8 million and paid $1.32 per share in dividends during the nine months ended September 30, 2024 Common Share Repurchases - Nine Months Ended Sep 30, 2024 | Repurchase Type | Total Shares (thousands) | Total Cost (thousands) | Average Price per Share | | :--- | :--- | :--- | :--- | | **In the open market** | 2,125 | $139,886 | $65.82 | | **From employees (for tax)** | 243 | $14,943 | $61.49 | | **Total** | 2,368 | $154,829 | $65.38 | - The authorization under the December 2023 share repurchase program was **exhausted** as of June 30, 2024[196](index=196&type=chunk) [Note 17 - Income Taxes](index=51&type=section&id=Note%2017%20-%20Income%20Taxes) The company recorded a $163 million net deferred tax asset for the nine months ended September 30, 2024, due to Bermuda's new corporate income tax act - Bermuda enacted the Corporate Income Tax Act 2023, which will apply a **15% corporate income tax** for fiscal years beginning on or after January 1, 2025[218](index=218&type=chunk) - The company recorded a net deferred tax asset of **$163 million** for the nine months ended September 30, 2024, due to the economic transition adjustment provision in the new Bermuda tax law[218](index=218&type=chunk) Total Income Tax (Expense) Benefit (in thousands) | Period | 2024 | 2023 | | :--- | :--- | :--- | | **Three months ended Sep 30** | ($47,922) | ($24,624) | | **Nine months ended Sep 30** | $36,185 | ($68,078) | [Note 18 - Subsequent Events](index=53&type=section&id=Note%2018%20-%20Subsequent%20Events) The company issued a preliminary pre-tax net loss estimate of **$50 million to $100 million** for Hurricane Milton, which occurred in October 2024 - The company's preliminary pre-tax net loss estimate for Hurricane Milton, which occurred in October 2024, is between **$50 million and $100 million**[224](index=224&type=chunk) - The loss estimate is based on industry insured loss estimates, market share analyses, and catastrophe modeling, but the actual net loss may be **materially different**[225](index=225&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=54&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and operating results, including Q3 2024 performance, segment contributions, and strategic initiatives [Third Quarter 2024 Financial Highlights](index=55&type=section&id=Third%20Quarter%202024%20Financial%20Highlights) AXIS reported Q3 2024 net income of $173 million and operating income of $230 million, with gross premiums written of $1.9 billion Q3 2024 Key Metrics | Metric | Value | | :--- | :--- | | Net Income to Common Shareholders | $173 million | | Operating Income (Non-GAAP) | $230 million | | Diluted EPS | $2.04 | | Operating EPS (Non-GAAP) | $2.71 | | Gross Premiums Written | $1.9 billion | | Combined Ratio | 93.1% | | Pre-tax Catastrophe Losses | $78 million | [Overview](index=56&type=section&id=Overview) AXIS Capital, a global specialty underwriter, focuses on profitable growth through strategic market expansion, portfolio re-balancing, and technology investments - Strategic execution includes growing in U.S. excess and surplus lines, re-balancing the portfolio to less volatile business, and improving efficiency through the **"How We Work" program**[233](index=233&type=chunk) - The company anticipates market rates will continue to **exceed loss cost trends in casualty**, but expects moderate rate erosion in property and financial lines due to new capital and increased capacity[236](index=236&type=chunk) - AXIS Syndicate 2050, dedicated to new energy projects, commenced underwriting on **April 1, 2024**[240](index=240&type=chunk) [Consolidated Results of Operations](index=58&type=section&id=Consolidated%20Results%20of%20Operations) For the nine months ended September 30, 2024, gross premiums written increased 7% to $7.0 billion, boosting net income to $765 million Consolidated Performance - Nine Months Ended Sep 30 | Metric | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | **Gross Premiums Written** | $7,030,564 | $6,572,232 | 7% | | **Net Premiums Earned** | $3,929,221 | $3,818,508 | 3% | | **Underwriting Income** | $441,970 | $434,834 | 2% | | **Net Investment Income** | $563,458 | $424,802 | 33% | | **Net Income to Common Shareholders** | $765,465 | $496,182 | 54% | - The combined ratio for the nine months ended Sep 30, 2024 was **91.6%**, a slight improvement from **91.7%** in 2023. The current accident year loss ratio, excluding catastrophes, was **55.7%**, down from **56.1%**[244](index=244&type=chunk) [Results by Segment](index=60&type=section&id=Results%20by%20Segment) This section details the performance of the Insurance and Reinsurance segments, including premium growth and combined ratios [Insurance Segment](index=60&type=section&id=Insurance%20Segment) The Insurance segment's gross premiums written increased 8% to $4.9 billion for the nine months ended September 30, 2024, with an 88.4% combined ratio Insurance Segment Performance - Nine Months Ended Sep 30 | Metric | 2024 | 2023 | | :--- | :--- | :--- | | **Gross Premiums Written** | $4,915,247 | $4,557,386 | | **Net Premiums Earned** | $2,900,011 | $2,544,920 | | **Underwriting Income** | $337,414 | $322,617 | | **Combined Ratio** | 88.4% | 87.3% | - Growth in gross premiums written for the nine months was led by **property lines (+19%)**, **accident and health (+28%)**, and **credit and political risk (+29%)**[247](index=247&type=chunk)[250](index=250&type=chunk) - The nine-month combined ratio was impacted by a **1.6 point increase** in the net losses and loss expenses ratio, driven by higher catastrophe and weather-related losses (**$136 million** in 2024 vs. **$88 million** in 2023)[246](index=246&type=chunk)[268](index=268&type=chunk) [Reinsurance Segment](index=65&type=section&id=Reinsurance%20Segment) The Reinsurance segment's gross premiums written grew 5% to $2.1 billion for the nine months ended September 30, 2024, with an improved combined ratio of 92.1% Reinsurance Segment Performance - Nine Months Ended Sep 30 | Metric | 2024 | 2023 | | :--- | :--- | :--- | | **Gross Premiums Written** | $2,115,317 | $2,014,846 | | **Net Premiums Earned** | $1,029,210 | $1,273,588 | | **Underwriting Income** | $104,556 | $112,217 | | **Combined Ratio** | 92.1% | 92.5% | - Growth in gross premiums written for the nine months was led by **credit and surety (+22%)**, **agriculture (+16%)**, and **professional lines (+8%)**, partially offset by planned decreases in run-off catastrophe and property lines[284](index=284&type=chunk)[285](index=285&type=chunk) - Ceded premiums written in Q3 2024 were significantly lower (**$149 million** vs **$358 million** in Q3 2023) due to the accounting treatment of the Monarch Point Re retrocession agreement, recorded retroactively in 2023[291](index=291&type=chunk)[292](index=292&type=chunk) [Net Investment Income and Net Investment Gains (Losses)](index=71&type=section&id=Net%20Investment%20Income%20and%20Net%20Investment%20Gains%20%28Losses%29) Net investment income rose 33% to $563.5 million for the nine months ended September 30, 2024, primarily due to higher yields on fixed maturities Net Investment Income by Asset Class - Nine Months Ended Sep 30 (in thousands) | Asset Class | 2024 | 2023 | | :--- | :--- | :--- | | **Fixed maturities** | $456,421 | $375,659 | | **Other investments** | $39,569 | ($4,543) | | **Cash and cash equivalents** | $41,796 | $35,638 | | **Total Net Investment Income** | $563,458 | $424,802 | - The pre-tax yield on the fixed maturities portfolio increased to **4.5%** for the nine months of 2024, up from **3.8%** in 2023[318](index=318&type=chunk) - Net investment losses for the nine months of 2024 were primarily due to realized losses on the sale of fixed income securities, partially offset by unrealized gains on equity securities[326](index=326&type=chunk) [Liquidity and Capital Resources](index=85&type=section&id=Liquidity%20and%20Capital%20Resources) The company's total capital strengthened to $7.4 billion by September 30, 2024, improving the debt to total capital ratio to 17.8% Capital Structure (in thousands) | Component | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Debt** | $1,314,806 | $1,313,714 | | **Shareholders' equity** | $6,083,227 | $5,263,196 | | **Total capital** | $7,398,033 | $6,576,910 | | **Ratio of debt to total capital** | 17.8% | 20.0% | - During the nine months ended Sep 30, 2024, the company repurchased **2.4 million** common shares for **$155 million**[410](index=410&type=chunk) - A new **$300 million** share repurchase program was approved in May 2024, with **$260 million** remaining available as of September 30, 2024[412](index=412&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=88&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risk disclosures since year-end 2023, except for a $34 million net foreign currency asset exposure as of September 30, 2024 - There have been no material changes to market risk since December 31, 2023, except for foreign currency risk exposure[420](index=420&type=chunk) Total Net Foreign Currency Exposure (in thousands) | Currency | Exposure Amount | | :--- | :--- | | AUD | $27,144 | | CAD | ($5,735) | | EUR | $16,466 | | GBP | ($8,549) | | JPY | ($1,448) | | Other | $6,484 | | **Total** | **$34,362** | [Item 4. Controls and Procedures](index=89&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2024, with no material changes to internal control over financial reporting during Q3 2024 - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective** as of September 30, 2024[423](index=423&type=chunk) - No changes occurred during Q3 2024 that materially affected or are reasonably likely to materially affect the company's internal control over financial reporting[425](index=425&type=chunk) [PART II - Other Information](index=89&type=section&id=PART%20II%20-%20Other%20Information) [Item 1. Legal Proceedings](index=89&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to routine legal proceedings in its ordinary course of business and is not a party to any material non-routine legal actions - The company is not party to any material legal proceedings outside the ordinary course of business[426](index=426&type=chunk) [Item 1A. Risk Factors](index=89&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2023 - No material changes from the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023[427](index=427&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=90&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2024, the company repurchased 542,000 common shares, with $260 million remaining available under the May 2024 repurchase program Issuer Purchases of Equity Securities (Q3 2024) | Period | Total Shares Purchased (thousands) | Average Price Paid per Share | Shares Purchased Under Program (thousands) | | :--- | :--- | :--- | :--- | | July 1-31, 2024 | 1 | $70.00 | — | | August 1-31, 2024 | 399 | $73.54 | 399 | | September 1-30, 2024 | 142 | $76.42 | 138 | | **Total** | **542** | **N/A** | **537** | - A new share repurchase program for up to **$300 million** was approved on May 16, 2024, with **$260 million** remaining available at the end of Q3 2024[428](index=428&type=chunk) [Item 5. Other Information](index=90&type=section&id=Item%205.%20Other%20Information) The company discloses immaterial exposure to Iran through reinsurance treaties and no Rule 10b5-1 trading arrangement changes by directors or officers during Q3 2024 - Certain non-U.S. subsidiaries provide global reinsurance coverage that may have some exposure to Iran, but the premium allocated is **not material** and activities comply with applicable law[430](index=430&type=chunk) - During Q3 2024, no director or officer adopted or terminated a Rule 10b5-1 trading arrangement[431](index=431&type=chunk) [Item 6. Exhibits](index=91&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the CEO and CFO pursuant to the Sarbanes-Oxley Act of 2002 and the Inline XBRL financial data files

Axis Capital Holdings (AXS) is expected to witness an improvement in its top and bottom lines when it reports third-quarter 2024 results on Oct. 30, after the closing bell.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The Zacks Consensus Estimate for AXS’ third-quarter revenues is pegged at $1.6 billion, indicating 5.8% growth from the year-ago reported figure.The consensus estimate for earnings is pegged at $2.50 per share. The Zacks Consensus Estimate for AXS’ third-quarter earn ...