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Why You Should Stay Invested in Axis Capital (AXS) Stock
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AXIS Capital Holdings Limited’s (AXS - Free Report) new business growth, continued strong retentions, increased business lines and prudent capital deployment make it worth retaining in one’s portfolio.
Growth Projections
The Zacks Consensus Estimate for AXIS Capital’s 2023 earnings is pegged at $8.56 per share, indicating a 47.3% increase from the year-ago reported figure on 8.1% higher revenues of $5.73 billion. The consensus estimate for 2024 earnings is pegged at $9.53 per share, implying an 11.3% increase from the year-ago reported figure on 3.8% higher revenues of $5.96 billion. The expected long-term earnings growth rate is 5%.
Estimate Revision
The Zacks Consensus Estimate for 2024 has moved 0.3% north in the past 30 days. This should instill investors' confidence in the stock.
Earnings Surprise History
AXS has a solid 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 gained 1% over the past six months compared with the industry’s rise of 6.7%.
Image Source: Zacks Investment Research
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.
Return on Equity (ROE)
AXS’ ROE for the trailing 12 months is 18.1%, better than the industry average of 7.1%. This reflects its efficiency in utilizing shareholders’ funds.
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 and 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 insurance and reinsurance in 2023.
The Insurance segment should continue to gain from favorable market conditions, increased 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 due to premium adjustments, primarily related to favorable market conditions, 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, seeing 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.
RLI has a solid record of beating earnings estimates in three of the last four quarters and missing in one, the average being 145.76%. In the past year, RLI has lost 0.2%.
The Zacks Consensus Estimate for RLI’s 2023 and 2024 earnings per share is pegged at $4.80 and $5.56, indicating year-over-year increases of 2.3% and 15.8%, respectively.
Kinsale Capital has a solid record of beating earnings estimates in each of the last trailing four quarters, the average being 14.25%. In the past year, KNSL has gained 24.1%.
The Zacks Consensus Estimate for KNSL’s 2023 and 2024 earnings per share is pegged at $12.06 and $14.72, indicating year-over-year increases of 54.6% and 22%, respectively.
Cincinnati Financial has a solid record of beating earnings estimates in three of the last four quarters and missing in one, the average being 38.33%. In the past year, CINF has gained 0.1%.
The Zacks Consensus Estimate for CINF’s 2023 and 2024 earnings per share is pegged at $5.58 and $6.05, indicating year-over-year increases of 31.6% and 8.4%, respectively.
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Why You Should Stay Invested in Axis Capital (AXS) Stock
AXIS Capital Holdings Limited’s (AXS - Free Report) new business growth, continued strong retentions, increased business lines and prudent capital deployment make it worth retaining in one’s portfolio.
Growth Projections
The Zacks Consensus Estimate for AXIS Capital’s 2023 earnings is pegged at $8.56 per share, indicating a 47.3% increase from the year-ago reported figure on 8.1% higher revenues of $5.73 billion. The consensus estimate for 2024 earnings is pegged at $9.53 per share, implying an 11.3% increase from the year-ago reported figure on 3.8% higher revenues of $5.96 billion.
The expected long-term earnings growth rate is 5%.
Estimate Revision
The Zacks Consensus Estimate for 2024 has moved 0.3% north in the past 30 days. This should instill investors' confidence in the stock.
Earnings Surprise History
AXS has a solid 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 gained 1% over the past six months compared with the industry’s rise of 6.7%.
Image Source: Zacks Investment Research
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.
Return on Equity (ROE)
AXS’ ROE for the trailing 12 months is 18.1%, better than the industry average of 7.1%. This reflects its efficiency in utilizing shareholders’ funds.
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 and 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 insurance and reinsurance in 2023.
The Insurance segment should continue to gain from favorable market conditions, increased 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 due to premium adjustments, primarily related to favorable market conditions, 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, seeing 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 RLI Corp. (RLI - Free Report) , Kinsale Capital Group, Inc. (KNSL - Free Report) and Cincinnati Financial Corporation (CINF - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
RLI has a solid record of beating earnings estimates in three of the last four quarters and missing in one, the average being 145.76%. In the past year, RLI has lost 0.2%.
The Zacks Consensus Estimate for RLI’s 2023 and 2024 earnings per share is pegged at $4.80 and $5.56, indicating year-over-year increases of 2.3% and 15.8%, respectively.
Kinsale Capital has a solid record of beating earnings estimates in each of the last trailing four quarters, the average being 14.25%. In the past year, KNSL has gained 24.1%.
The Zacks Consensus Estimate for KNSL’s 2023 and 2024 earnings per share is pegged at $12.06 and $14.72, indicating year-over-year increases of 54.6% and 22%, respectively.
Cincinnati Financial has a solid record of beating earnings estimates in three of the last four quarters and missing in one, the average being 38.33%. In the past year, CINF has gained 0.1%.
The Zacks Consensus Estimate for CINF’s 2023 and 2024 earnings per share is pegged at $5.58 and $6.05, indicating year-over-year increases of 31.6% and 8.4%, respectively.