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Should You Retain Axis Capital (AXS) Stock in Your Portfolio?
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AXIS Capital Holdings Limited (AXS - Free Report) is well poised to gain from an increase in lines of business, new business growth, continued strong retentions and prudent capital deployment.
Growth Projections
The Zacks Consensus Estimate for AXIS Capital’s 2023 earnings is pegged at $8.45 per share, indicating a 45.4% increase from the year-ago reported figure on 7.9% higher revenues of $5.72 billion. The consensus estimate for 2024 earnings is pegged at $9.45 per share, indicating an 11.7% increase from the year-ago reported figure on 4.5% higher revenues of $5.98 billion. The expected long-term earnings growth rate is 5%.
Estimate Revision
The Zacks Consensus Estimate for 2023 and 2024 has moved 0.1% and 0.9% north, respectively, in the past seven days. This should instill investors' confidence in the stock.
Earnings Surprise History
AXS has a solid track record of beating earnings estimates in each of the last four quarters, the average being 22.45%.
Zacks Rank & Price Performance
AXIS Capital currently carries a Zacks Rank #3 (Hold). The stock has lost 4.1% over the past year against the industry’s rise of 9.7%.
Image Source: Zacks Investment Research
Return on Equity (ROE)
AXIS Capital’s annualized operating return on average common equity was 18.4%, which expanded 820 basis points year over year. The increase was primarily driven by an improvement in underwriting income and net investment income and a decrease in average common shareholder's equity. ROE is a profitability measure that shows how efficiently the company is utilizing shareholders’ money.
Style Score
AXIS Capital has a VGM Score of A. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
Business Tailwinds
AXIS Capital remains poised to gain from the repositioning of the portfolio and markets, offering profitable growth, lower volatility, strong market presence, better pricing as well as margin expansion. Pricing improved in virtually every line of business, with many lines continuing to witness strong double-digit increases. AXIS Capital expects disciplined pricing to persist in both insurance and reinsurance in 2023.
The Insurance segment should continue to gain from favorable market conditions, increased new business opportunities, rate increases on renewal and continued strong retentions.
The Reinsurance segment is expected to benefit from an increase in accident and health, motor, catastrophe and credit and surety lines. It will also gain from increases in liability and professional lines owing to premium adjustments, primarily related to favorable market conditions, new business growth and increased rates on business in North America and Global Markets.
Given the duration of the portfolio and current market yields, AXIS Capital expects net investment income from fixed maturities to be more than $150 million in 2023. Riding on increasing yields, net investment income rose 56% year over year in the first nine months of 2023.
The property and casualty insurer has an impressive dividend history, boasting one of the highest dividend yields among its peers. It hiked dividends for the last 18 years at an eight-year (2025-2023) CAGR of 2.9%, driven by solid earnings. Its dividend yield is currently 3.2%, which is way above the industry average of 0.3%.
As of Sep 30, 2023, AXIS Capital had $100 million remaining authorization under the board-authorized share repurchase program for common share repurchases through Dec 31, 2023.
AXIS Capital has an impressive Growth Score of B. This style score helps analyze the growth prospects of a company.
Stocks to Consider
Some better-ranked stocks from the property and casualty insurance industry are Mercury General Corporation (MCY - Free Report) , Kinsale Capital Group, Inc. (KNSL - Free Report) and Cincinnati Financial Corporation (CINF - Free Report) . While Mercury General sports a Zacks Rank #1 (Strong Buy), Kinsale Capital and Cincinnati Financial carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Mercury General beat estimates in two of the last four quarters and missed in the other two, the average being 2,833.05%. In the past year, the insurer has lost 1.8%.
The Zacks Consensus Estimate for MCY’s 2023 and 2024 earnings per share indicates a year-over-year increase of 65.2% and 343.7%, respectively.
Kinsale Capital has a solid track record of beating earnings estimates in each of the last four quarters, the average being 14.25%.
The Zacks Consensus Estimate for KNSL’s 2023 and 2024 earnings has moved 2.7% and 1.7% north, respectively, in the past 30 days, reflecting analysts’ optimism.
Cincinnati Financial surpassed earnings in three of the last four quarters and missed in one, the average being 38.33%. In the past year, the insurer has lost 1.6%.
The Zacks Consensus Estimate for CINF’s 2023 and 2024 earnings per share indicates a year-over-year increase of 31.8% and 8.1%, respectively.
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Should You Retain Axis Capital (AXS) Stock in Your Portfolio?
AXIS Capital Holdings Limited (AXS - Free Report) is well poised to gain from an increase in lines of business, new business growth, continued strong retentions and prudent capital deployment.
Growth Projections
The Zacks Consensus Estimate for AXIS Capital’s 2023 earnings is pegged at $8.45 per share, indicating a 45.4% increase from the year-ago reported figure on 7.9% higher revenues of $5.72 billion. The consensus estimate for 2024 earnings is pegged at $9.45 per share, indicating an 11.7% increase from the year-ago reported figure on 4.5% higher revenues of $5.98 billion.
The expected long-term earnings growth rate is 5%.
Estimate Revision
The Zacks Consensus Estimate for 2023 and 2024 has moved 0.1% and 0.9% north, respectively, in the past seven days. This should instill investors' confidence in the stock.
Earnings Surprise History
AXS has a solid track record of beating earnings estimates in each of the last four quarters, the average being 22.45%.
Zacks Rank & Price Performance
AXIS Capital currently carries a Zacks Rank #3 (Hold). The stock has lost 4.1% over the past year against the industry’s rise of 9.7%.
Image Source: Zacks Investment Research
Return on Equity (ROE)
AXIS Capital’s annualized operating return on average common equity was 18.4%, which expanded 820 basis points year over year. The increase was primarily driven by an improvement in underwriting income and net investment income and a decrease in average common shareholder's equity. ROE is a profitability measure that shows how efficiently the company is utilizing shareholders’ money.
Style Score
AXIS Capital has a VGM Score of A. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
Business Tailwinds
AXIS Capital remains poised to gain from the repositioning of the portfolio and markets, offering profitable growth, lower volatility, strong market presence, better pricing as well as margin expansion. Pricing improved in virtually every line of business, with many lines continuing to witness strong double-digit increases. AXIS Capital expects disciplined pricing to persist in both insurance and reinsurance in 2023.
The Insurance segment should continue to gain from favorable market conditions, increased new business opportunities, rate increases on renewal and continued strong retentions.
The Reinsurance segment is expected to benefit from an increase in accident and health, motor, catastrophe and credit and surety lines. It will also gain from increases in liability and professional lines owing to premium adjustments, primarily related to favorable market conditions, new business growth and increased rates on business in North America and Global Markets.
Given the duration of the portfolio and current market yields, AXIS Capital expects net investment income from fixed maturities to be more than $150 million in 2023. Riding on increasing yields, net investment income rose 56% year over year in the first nine months of 2023.
The property and casualty insurer has an impressive dividend history, boasting one of the highest dividend yields among its peers. It hiked dividends for the last 18 years at an eight-year (2025-2023) CAGR of 2.9%, driven by solid earnings. Its dividend yield is currently 3.2%, which is way above the industry average of 0.3%.
As of Sep 30, 2023, AXIS Capital had $100 million remaining authorization under the board-authorized share repurchase program for common share repurchases through Dec 31, 2023.
AXIS Capital has an impressive Growth Score of B. This style score helps analyze the growth prospects of a company.
Stocks to Consider
Some better-ranked stocks from the property and casualty insurance industry are Mercury General Corporation (MCY - Free Report) , Kinsale Capital Group, Inc. (KNSL - Free Report) and Cincinnati Financial Corporation (CINF - Free Report) . While Mercury General sports a Zacks Rank #1 (Strong Buy), Kinsale Capital and Cincinnati Financial carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Mercury General beat estimates in two of the last four quarters and missed in the other two, the average being 2,833.05%. In the past year, the insurer has lost 1.8%.
The Zacks Consensus Estimate for MCY’s 2023 and 2024 earnings per share indicates a year-over-year increase of 65.2% and 343.7%, respectively.
Kinsale Capital has a solid track record of beating earnings estimates in each of the last four quarters, the average being 14.25%.
The Zacks Consensus Estimate for KNSL’s 2023 and 2024 earnings has moved 2.7% and 1.7% north, respectively, in the past 30 days, reflecting analysts’ optimism.
Cincinnati Financial surpassed earnings in three of the last four quarters and missed in one, the average being 38.33%. In the past year, the insurer has lost 1.6%.
The Zacks Consensus Estimate for CINF’s 2023 and 2024 earnings per share indicates a year-over-year increase of 31.8% and 8.1%, respectively.