It has been about a month since the last earnings report for Axis Capital (AXS Quick QuoteAXS - Free Report) . Shares have added about 5% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Axis Capital due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

AXIS Capital Q2 Earnings Surpass Estimates, Premiums Increase Y/Y

AXIS Capital posted second-quarter 2025 operating income of $3.29 per share, which beat the Zacks Consensus Estimate by 14.2%. The bottom line increased 12.2% year over year.

The quarterly results of AXS reflected improved underwriting income across both segments, higher net premiums earned, offset by lower income from fixed maturities and higher expenses.

Quarterly Operational Update   

Total operating revenues of $1.6 billion missed the Zacks Consensus Estimate by 3.2%. The top line, however, rose 5.6% year over year on higher other insurance-related income and net premiums earned.

Net premiums written increased 4% to $1.6 billion, driven by a rise of 8.1% in the Insurance segment, partially offset by a 9.1% decline in the Reinsurance segment. 

Net investment income decreased 2% year over year to $187 million, primarily attributable to lower income from fixed maturities resulting from lower fixed maturity assets due to the LPT transaction. It was partially offset by higher returns on alternative investments. The Zacks Consensus Estimate for the metric was pegged at $194 million. Our estimate was $227.2 million.

Total expenses in the quarter under review increased 12.2% year over year to $1.3 billion due to higher net losses and loss expenses, acquisition costs and general and administrative expenses. The metric matched our estimate.
Pre-tax catastrophe and weather-related losses and net of reinsurance were $86 million, wider than the year-ago loss of $47 million, primarily attributable to California Wildfires. The remaining losses were primarily attributable to other weather-related events.

AXIS Capital’s underwriting income of $189.2 million increased 17.4% year over year. Our estimate was $184 million. The combined ratio improved 150 basis points (bps) to 88.9%. The Zacks Consensus Estimate was pegged at 92. Our estimate was 93.3.

Segment Results

Insurance: Gross premiums written improved 6.5% year over year to $1.9 billion, primarily attributable to all lines of business with the exception of cyber lines, which decreased in the quarter, principally due to a lower level of premiums associated with program business.
Net premiums written increased 8.1% year over year to $1.3 billion.  
Underwriting income of $151.6 million increased 31.1% year over year. 

The combined ratio improved 260 bps to 85.3. The Zacks Consensus Estimate for the combined ratio was pegged at 84.

Reinsurance: Gross premiums written decreased 6.8% year over year to $583.5 million. The increase was primarily attributable to the timing of renewals in multiple lines, together with a lower level of premiums associated with accident and health lines. It was partially offset by premium adjustments and new business in credit and surety lines.

Net premiums written decreased 9.1% year over year to $344.9 million.

Underwriting income of $37.5 million increased 17.5% year over year. The combined ratio deteriorated 270 bps year over year to 92. The Zacks Consensus Estimate for the combined ratio was pegged at 101.

Financial Update

AXIS Capital exited the second quarter with cash and cash equivalents of $852 million, which plunged 60% from the 2024-end level.
Debts were $1.3 billion at quarter-end, which inched up 0.05% from the 2024-end level.

Book value per share increased 18.6% year over year to $70.34 as of June 30, 2025.

Annualized operating return on average common equity was 19% in the second quarter, which contracted 90 bps year over year.

Capital Deployment

As of June 30, 2025, AXIS Capital had $110 million remaining authorization under the board-authorized share repurchase program for common share repurchases.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended downward during the past month.

VGM Scores

Currently, Axis Capital has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock was allocated a score of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Axis Capital has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Axis Capital is part of the Zacks Insurance - Property and Casualty industry. Over the past month, RLI Corp. (RLI Quick QuoteRLI - Free Report) , a stock from the same industry, has gained 3.6%. The company reported its results for the quarter ended June 2025 more than a month ago.

RLI Corp. reported revenues of $441.32 million in the last reported quarter, representing a year-over-year change of +6.8%. EPS of $0.84 for the same period compares with $0.86 a year ago.

RLI Corp. is expected to post earnings of $0.53 per share for the current quarter, representing a year-over-year change of -18.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.4%.

RLI Corp. has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.