Core Viewpoint - Axis Capital (AXS) has shown strong stock performance, with a 9% increase over the past month and a 14.2% gain since the start of the year, outperforming both the Zacks Finance sector and the Zacks Insurance - Property and Casualty industry [1][2]. Financial Performance - Axis Capital reported an EPS of $3.17 in its last earnings report, exceeding the consensus estimate of $2.64, marking a consistent record of positive earnings surprises over the last four quarters [2]. - For the current fiscal year, Axis Capital is projected to achieve earnings of $11.53 per share on revenues of $6.66 billion, reflecting a 3.13% increase in EPS and a 9.21% increase in revenues. The next fiscal year forecasts earnings of $12.54 per share on $7.13 billion in revenues, indicating year-over-year changes of 8.8% and 7.09%, respectively [3]. Valuation Metrics - Axis Capital has a Value Score of A, with Growth and Momentum Scores of C, resulting in a combined VGM Score of A [6]. - The stock trades at 8.8X current fiscal year EPS estimates, below the peer industry average of 11.7X. On a trailing cash flow basis, it trades at 8.5X compared to the peer group's average of 12.2X. The PEG ratio stands at 1.34, suggesting it is not among the top value stocks [7]. Zacks Rank - Axis Capital holds a Zacks Rank of 2 (Buy), driven by rising earnings estimates. This aligns with the recommendation for investors to select stocks with Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, indicating potential for the stock in the near future [8].

Group 1 - The article discusses the analytical approach of Stephen, who combines clinical insight with valuation methods to analyze healthcare and tech stocks [1] - Stephen specializes in scenario-based DCF modeling, sensitivity analysis, and Monte Carlo simulations to identify asymmetric risk-reward opportunities [1] - The focus is on translating complex scientific and market dynamics into actionable investment theses [1] Group 2 - The article emphasizes the importance of independent verification of information and conducting thorough research before making investment decisions [3] - It highlights that past performance is not indicative of future results and that no specific investment recommendations are provided [4]

Investors interested in stocks from the Insurance - Property and Casualty sector have probably already heard of Axis Capital (AXS) and Chubb (CB) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy t ...

Core Viewpoint - AXIS Capital Holdings Limited reported strong first-quarter 2025 results with operating income of $3.17 per share, exceeding estimates by 20% and reflecting a year-over-year increase of 23.3% driven by solid underwriting income and improved investment income [1][2] Quarterly Operational Update - Total operating revenues reached $1.6 billion, missing estimates by 5.9% but showing an 8.2% year-over-year increase due to higher net premiums earned and net investment income [1] - Net investment income surged 24% year over year to $208 million, primarily from cash and cash equivalents, higher returns on alternative investments, and increased yields on fixed maturities [2] - Total expenses rose 11.3% year over year to $1.3 billion, driven by higher net losses and acquisition costs [2] Underwriting Performance - Pre-tax catastrophe and weather-related losses net of reinsurance amounted to $49 million, including $32 million from California Wildfires, compared to $20 million in the prior year [3] - Underwriting income increased 12.2% year over year to $163.4 million, although it fell short of estimates [3] - The combined ratio improved by 90 basis points to 90.2 [3] Segment Results - In the Insurance segment, gross premiums written improved 5.2% year over year to $1.6 billion, with net premiums earned increasing 10% to $1 billion [4] - Underwriting income in the Insurance segment climbed 9.4% year over year to $134.5 million, with a slight deterioration in the combined ratio [5] - In the Reinsurance segment, gross premiums written rose 5.4% year over year to $1.1 billion, while net premiums earned declined 2.8% to $330.7 million [6][7] Financial Update - AXIS Capital ended the quarter with cash and cash equivalents of $2.76 billion, a 28.6% increase from the end of 2024 [8] - Debts stood at $1.3 billion, reflecting a marginal increase of 0.02% from the previous year [8] - Book value per share grew 1.9% to $66.48, driven by net income and unrealized investment gains [8] Capital Deployment - The board approved a new share repurchase program for up to $400 million, with $160 million remaining under the previous authorization as of March 31, 2024 [10] Zacks Rank - AXIS Capital currently holds a Zacks Rank 2 (Buy), indicating a favorable outlook [11]

Financial Data and Key Metrics Changes - The company reported an annualized operating return on equity of 19.2% and a record diluted book value per common share of $66.48, representing a 16.4% increase over the past twelve months [6][20]. - Operating earnings per share reached $3.17, a 23% increase compared to the prior year quarter, marking the highest quarterly operating earnings per share ever [6][20]. - The combined ratio was 90.2%, despite significant natural catastrophe losses, with Axis' share of catastrophe losses being less than 10 basis points [7][21]. Business Line Data and Key Metrics Changes - The Insurance segment generated a combined ratio of 86.7% and $1.7 billion in premiums, up 5% year-over-year, with new premiums contributing $547 million [9][23]. - The Reinsurance segment reported a combined ratio of 92.3% and $1.1 billion in premiums, also reflecting a 5% increase [11][25]. - The company experienced a 24% increase in net investment income, totaling $208 million [8][28]. Market Data and Key Metrics Changes - In North America, the company achieved a 9% growth rate, with a 21% increase in submission flow, particularly in the E&S lines [10]. - The company noted a negative 7% rate change in property across its divisions, indicating a competitive market environment [14][36]. - The cyber portfolio grew by 29% in the quarter, reflecting strong demand and premium adequacy [16]. Company Strategy and Development Direction - The company aims to achieve a combined ratio target of 11% by 2026, focusing on profitable growth while navigating market volatility [8][22]. - The strategy emphasizes leveraging specialty underwriting capabilities to meet customer needs globally, particularly in a dynamic risk environment [5][13]. - The company is investing in technology and operational platforms to enhance underwriting and claims capabilities, aiming for sustainable growth [18][19]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in addressing uncertainties related to trade disruptions and geopolitical tensions, while maintaining a focus on premium adequacy [12][13]. - The company anticipates continued growth in net written premiums, projecting mid to high single-digit growth for the remainder of 2025 [39]. - Management highlighted the importance of maintaining underwriting discipline amidst increasing competition and changing market conditions [10][14]. Other Important Information - The company repurchased $440 million in shares during the quarter and declared $36 million in common dividends, with $160 million remaining on its repurchase authorization [8][30]. - The effective tax rate for the quarter was 18.6%, with expectations for the full year to be in the high teens [29]. Q&A Session Summary Question: Pricing trends in property lines - Management noted a negative 7% pricing change in property, attributing it to geographic performance and competitive pressures, particularly in the Global Markets business [34][35]. Question: Net written premium growth expectations - Management expressed confidence in achieving mid to high single-digit net written premium growth for the remainder of 2025, supported by robust submission growth [38][39]. Question: Expense ratio and its progression - The expense ratio was reported at 11.9%, considered normalized, with expectations for it to remain stable throughout the year [53][54]. Question: Impact of tariffs on specific lines - Management indicated that tariffs could impact property and cargo lines, but they are well-positioned to address potential needs arising from these changes [76][77]. Question: Dynamics of pet insurance impacting net to gross premium ratio - The impact of pet insurance dynamics is expected to be more pronounced in the first half of the year, with less effect anticipated in the latter half [78][79].

Financial Data and Key Metrics Changes - The company reported a net income available to common shareholders of $187 million, or $2.26 per diluted common share, with operating income at $261 million, or $3.17 per diluted common share, resulting in a 19.2% annualized operating return on common equity [20] - The diluted book value per common share increased to $66.48, reflecting a 16.4% rise over the past twelve months [20] - Gross premiums written reached $2.8 billion, up 5.3% year-over-year, with a combined ratio of 90.2% despite significant natural catastrophe losses [21][22] Business Line Data and Key Metrics Changes - The Insurance segment generated gross premiums written of $1.7 billion, a 5% increase compared to the prior year quarter, with an outstanding combined ratio of 86.7% [23][26] - The Reinsurance segment reported gross premiums of $1.1 billion, also up about 5%, with a combined ratio of 92.3% [10][26] - The company achieved a 24% increase in net investment income, totaling $208 million [7][29] Market Data and Key Metrics Changes - In North America, the company experienced high single-digit growth at 9%, with a 21% increase in submission flow [9] - The company noted a negative 7% rate change in property across its divisions, indicating a competitive market environment [13][36] - The company reported a 16% rate change in U.S. Excess casualty and a 21% increase in primary casualty rates [14] Company Strategy and Development Direction - The company aims to achieve a combined ratio target of better than 11% by 2026, focusing on profitable growth and maintaining underwriting discipline [7][22] - The strategy includes leveraging specialty underwriting capabilities to address customer needs globally, particularly in a dynamic risk environment [5][12] - The company is investing in technology and operational platforms to enhance underwriting and claims capabilities [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating uncertainties related to trade disruptions and geopolitical tensions, emphasizing the importance of maintaining a diversified portfolio [11][12] - The company anticipates that sustained tariff impacts could affect loss costs, particularly in property and cargo lines [11][78] - Management remains optimistic about achieving mid to high single-digit net written premium growth for the remainder of 2025 [39] Other Important Information - The company repurchased $440 million in shares during the quarter and declared $36 million in common dividends [31] - The effective tax rate for the quarter was 18.6%, with expectations for the full year to be in the high teens [30] Q&A Session Summary Question: Pricing trends in property lines - Management noted a negative 7% pricing change in property, attributing it to geographic performance and competitive market conditions [34][36] Question: Net written premium growth expectations - Management indicated that mid to high single-digit net written premium growth is reasonable to expect for the remainder of 2025, supported by robust submission growth [38][39] Question: Expense ratio and its progression - The expense ratio of 11.9% is considered normalized, with expectations for it to remain stable as the company continues to improve operational efficiency [52][53] Question: Underlying loss ratio in reinsurance - Management suggested that the underlying loss ratio of 68.4% is a good run rate for the year, with no significant aviation losses impacting the quarter [55] Question: Impact of tariffs on specific lines - Management highlighted that tariffs could impact property and cargo lines, while also presenting growth opportunities in marine and trade credit [78] Question: Dynamics of pet insurance impacting premium ratios - The impact of pet insurance on the net to gross premium ratio is expected to be more pronounced in the first half of the year [81]

Financial Data and Key Metrics Changes - The company reported an annualized operating return on equity of 19.2% and a record diluted book value per common share of $66.48, representing a 16.4% increase over the past twelve months [6][20]. - Operating earnings per share reached $3.17, a 23% increase compared to the prior year quarter, marking the highest quarterly operating earnings per share ever [6][20]. - Gross premiums written were $2.8 billion, reflecting a 5% growth year-over-year [21]. Business Line Data and Key Metrics Changes - The Insurance segment generated a combined ratio of 86.7% with premiums of $1.7 billion, up 5% year-over-year, including $547 million in new premiums [9][23]. - The Reinsurance segment achieved a combined ratio of 92.3% with premiums of $1.1 billion, also up about 5% [11][26]. - Cyber portfolio in Reinsurance grew by 29% in the quarter, indicating strong demand in that line [16]. Market Data and Key Metrics Changes - North America saw a 9% growth in premiums, with a 21% increase in submission flow, particularly in E and S lines [10]. - The company noted a negative 7% rate change in property across its divisions, indicating a competitive market environment [14]. - Liability pricing momentum remained strong, achieving a 13.5% rate increase in the quarter [14]. Company Strategy and Development Direction - The company aims to achieve a GA ratio target of 11% by 2026, focusing on profitable growth while managing volatility [8][19]. - AXIS is leveraging its specialty underwriting capabilities to address customer needs globally, particularly in a dynamic risk environment [5][13]. - The company is pursuing a selective growth strategy in property due to increased competition after years of rate hardening [14]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating uncertainties related to trade disruptions and geopolitical tensions, emphasizing the importance of maintaining underwriting discipline [12][13]. - The company anticipates that the current trade environment could impact loss costs, particularly in property and cargo lines [12][13]. - Management remains optimistic about achieving mid to high single-digit net written premium growth for the remainder of 2025 [40]. Other Important Information - The company repurchased $440 million in shares during the quarter and declared $36 million in common dividends, indicating a strong capital position [31]. - The effective tax rate for the quarter was 18.6%, with expectations for the full year to be in the high teens [30]. Q&A Session Summary Question: Pricing reductions in property lines - Management noted a negative 7.1% rate change in property, attributing it to geographic performance and competitive pressures in the market [35][36]. Question: Net written premium growth expectations - Management indicated that mid to high single-digit net written premium growth is reasonable to expect for the remainder of 2025, supported by robust submission growth [39][40]. Question: Expense ratio and its progression - The expense ratio of 11.9% is considered normalized, with expectations for it to remain in that range for the year [53][54]. Question: Impact of tariffs on specific lines - Management highlighted that tariffs could impact property and cargo lines, but they are well-positioned to address potential needs arising from these changes [77][78]. Question: Dynamics of pet insurance impacting net to gross premium ratio - The impact of pet insurance dynamics is expected to be more pronounced in the first half of the year, with less effect in the latter half [80]. Question: Buyback dynamics and future plans - The company executed a significant portion of its buyback through private transactions, with plans to continue opportunistic buybacks throughout the year [83][85].

Core Insights - Axis Capital reported revenue of $1.55 billion for the quarter ended March 2025, reflecting an 8.3% increase year-over-year, but fell short of the Zacks Consensus Estimate of $1.65 billion by -5.92% [1] - The company's EPS was $3.17, up from $2.57 in the same quarter last year, exceeding the consensus EPS estimate of $2.64 by +20.08% [1] Financial Performance Metrics - The combined ratio for insurance was 86.7%, slightly better than the estimated 86.9% [4] - The net loss and loss expense ratio totaled 58.6%, outperforming the estimated 61.1% [4] - The total combined ratio was 90.2%, compared to the average estimate of 93.5% [4] - The acquisition cost ratio for insurance was 19.2%, above the estimated 18.2% [4] - General and administrative expense ratio for total was 9.8%, significantly lower than the estimated 12.7% [4] - Net investment income reached $207.71 million, surpassing the average estimate of $188.03 million, marking a +24.1% year-over-year increase [4] - Net premiums earned were $1.34 billion, below the estimated $1.42 billion, but showed a +6.6% change year-over-year [4] - Other insurance-related income was $3.58 million, significantly lower than the estimated $7.17 million, representing a -57.1% year-over-year decline [4] - Net premiums earned in the insurance segment were $1.01 billion, slightly below the estimated $1.04 billion, with a +10% year-over-year change [4] - Net premiums earned in the reinsurance segment were $330.73 million, below the estimated $366.10 million, reflecting a -2.8% year-over-year change [4] Stock Performance - Axis Capital's shares have returned -3.7% over the past month, compared to a -0.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Axis Capital (AXS) came out with quarterly earnings of $3.17 per share, beating the Zacks Consensus Estimate of $2.64 per share. This compares to earnings of $2.57 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 20.08%. A quarter ago, it was expected that this insurance company would post earnings of $2.68 per share when it actually produced earnings of $2.97, delivering a surprise of 10.82%.Over the last four quarters, the co ...

Financial Performance - Net income available to common shareholders was $187 million, or $2.30 per common share, with operating income of $261 million, or $3.17 per diluted common share [222]. - Net income available to common shareholders decreased to $186,508 in Q1 2025 from $387,896 in Q1 2024, representing a decline of approximately 52% [319]. - Operating income increased to $261,469 in Q1 2025, up from $220,162 in Q1 2024, reflecting a growth of about 18.8% [319]. - Earnings per diluted common share fell to $2.26 in Q1 2025, down from $4.53 in Q1 2024, indicating a decrease of approximately 50% [319]. - The annualized return on average common equity (ROACE) decreased to 13.7% in Q1 2025 from 32.1% in Q1 2024 [304]. Premiums and Underwriting - Gross premiums written increased by 5% to $2.8 billion, while net premiums written rose by 2% to $1.8 billion, and net premiums earned grew by 7% to $1.3 billion [233]. - Underwriting income was reported at $163 million, with a combined ratio of 90.2% [222]. - The combined ratio improved slightly to 90.2% for the three months ended March 31, 2025, from 91.1% in 2024 [237]. - The current accident year loss ratio increased to 57.0% for the three months ended March 31, 2025, from 54.1% in 2024 [253]. - Catastrophe and weather-related losses for the three months ended March 31, 2025, were $47.5 million, or 4.7 points, compared to $19 million, or 2.1 points, in 2024 [254]. Investment Income - Net investment income increased by 24% to $208 million, while net investment losses were $30 million and foreign exchange losses totaled $57 million [233]. - Net investment income rose by $40 million, or 24%, to $207,713 million for the three months ended March 31, 2025, compared to $167,383 million in 2024 [281]. - Net investment losses for the three months ended March 31, 2025, were $30 million, compared to net investment losses of $9 million for the same period in 2024 [287]. - The net investment losses in Q1 2025 were primarily due to net realized losses on corporate debt and U.S. government securities, along with net unrealized losses on equity securities [288]. Shareholder Equity and Dividends - Book value per diluted common share increased to $66.48 in Q1 2025 from $57.13 in Q1 2024, reflecting a growth of 16.5% [304]. - Cash dividends declared per common share remained stable at $0.44 for both Q1 2025 and Q1 2024 [304]. - Common equity decreased by $187 million to $5.35 billion, with $465 million spent on repurchasing 5 million common shares during the quarter [366]. Cash and Investments - Total cash and investments amounted to $17.8 billion, with fixed maturities, short-term investments, and cash comprising 88% of this total [222]. - Total investments as of March 31, 2025, were valued at $14,525,725, down from $15,035,413 as of December 31, 2024, a decrease of about 3.4% [350]. - Cash and cash equivalents increased to $3,332,767 as of March 31, 2025, compared to $3,063,621 at December 31, 2024, reflecting an increase of approximately 8.8% [350]. - Fixed maturities, available for sale, decreased to $11,865,480 as of March 31, 2025, from $12,152,753 as of December 31, 2024, a decline of about 2.4% [350]. Foreign Currency Exposure - As of March 31, 2025, total net foreign currency exposure was $115 million, primarily influenced by euro, Australian dollar, Canadian dollar, and Japanese yen [376]. - The change in total net foreign currency exposure during the three months ended March 31, 2025, was mainly due to new business written in the period [376]. - The sensitivity analysis indicates significant exposure to fluctuations in foreign currencies, particularly in the euro and Australian dollar [375].