Why Is Axis Capital (AXS) Up 9.2% Since Last Earnings Report?

Core Insights - Axis Capital's shares have increased by approximately 9.2% since the last earnings report, outperforming the S&P 500 [1][2] Financial Performance - For Q3 2025, Axis Capital reported an operating income of $3.25 per share, exceeding the Zacks Consensus Estimate by 19.4%, and reflecting a 20% year-over-year increase [3] - Total operating revenues reached $1.6 billion, surpassing the Zacks Consensus Estimate by 0.6%, and showing a 4% year-over-year growth due to higher premiums [4] - Net premiums written rose by 9% to $1.4 billion, driven by an 11% increase in the insurance segment and a 3% increase in the reinsurance segment [5] - Net investment income decreased by 9.7% year-over-year to $185 million, falling short of estimates [5] - Total expenses decreased by 5.7% year-over-year to $1.3 billion, attributed to lower interest expenses and financing costs [6] Underwriting and Losses - Pre-tax catastrophe and weather-related losses were $44 million, including $20 million related to the Middle East Conflict, which is an improvement from the previous year's loss of $78 million [7] - Underwriting income increased by 39% year-over-year to $188 million, with the combined ratio improving by 370 basis points to 89.4 [7] Segment Results - In the insurance segment, gross premiums written improved by 10.8% year-over-year to $1.7 billion, with underwriting income increasing by 55.2% [8] - In the reinsurance segment, gross premiums written increased by 5.6% year-over-year to $432.3 million, although underwriting income decreased by 3.7% [9] Financial Position - As of September 30, 2025, Axis Capital had cash and cash equivalents of $825.9 million, a decrease of 61% from the end of 2024, while debt increased slightly to $1.3 billion [10] - Book value per share increased by 13% from the end of 2024 to $73.82 [10] Capital Deployment - Axis Capital has $400 million remaining under its share repurchase program as of September 30, 2025 [12] Market Outlook - Axis Capital holds a Zacks Rank 2 (Buy), indicating expectations for above-average returns in the coming months [15] - The company has a subpar Growth Score of D but a better Momentum Score of B, with an aggregate VGM Score of C [14]