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Can AXS Sustain Its Growth on Premium Strength and Underwriting?
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Key Takeaways
AXIS Capital posted 10.2% revenue growth in 2025, driven by strong specialty insurance demand.
AXS underwriting income surged 255.5% in 2024 and rose 26.9% in 2025 on disciplined risk selection.
AXS is shifting to higher-margin lines like cyber and marine while maintaining pricing strength.
AXIS Capital Holdings Limited (AXS - Free Report) has delivered solid financial performance over the past year, supported by consistent revenue growth. In 2025, the company generated approximately $6.6 billion in revenues, reflecting a 10.2% year-over-year increase, following 5.6% growth in 2024. This consistency has been largely driven by solid premium growth in its insurance business, supported by strong demand for specialty coverage.
A major factor behind this performance is improved underwriting. The company has remained disciplined in risk selection and pricing, leading to a sharp 255.5% jump in underwriting income in 2024, followed by a further 26.9% increase in 2025. A favorable pricing environment has also enabled AXIS to charge higher premiums while maintaining profitability.
Investment income has further supported overall growth. Net investment income rose 46.1% in 2023 and 24.1% in 2024, before slowing to 1% growth in 2025. Higher income from fixed maturities due to increased yields on the portfolio, income from cash and cash equivalents, and increased returns on alternative investments should drive net investment income.
AXIS has shifted toward higher-margin specialty lines such as marine cargo, cyber, and renewable energy, while reducing exposure to weaker segments. Steps like lowering risk exposure and tightening limits have made its portfolio more stable and less volatile.
Looking ahead, AXS’ growth will depend on continued strong pricing and underwriting discipline. While a softer market could slow momentum, AXIS’ improved business mix and focus on quality should help it maintain stable performance.
What About AXS’ Competitors?
TRV closely competes with large firms like The Progressive Corporation (PGR - Free Report) and The Travelers Companies, Inc. (TRV - Free Report) .
Progressive continues to benefit from strong fundamentals, with net premiums earned up 15.3% in 2025 and net investment income increasing 26.5% over the same period. PGR's high policyholder retention, particularly in auto insurance, supports a stable and recurring revenue base without heavy reliance on new customer acquisition.
The Travelers Companies is also seeing steady growth, with revenues reaching about $48.8 billion in 2025, up 5.2% year over year. This was driven by consistent premium growth. TRV’s Investment income remains a key strength, up 22.9% in 2024 and 10.3% in 2025, providing further support to overall revenue stability and growth.
AXS’ Price Performance
Shares of AXIS Capital have gained 6.1% in the past 12 months, outperforming the industry’s 6.8% decline.
Image Source: Zacks Investment Research
Valuation of AXS
AXS trades at a price-to-book ratio of 1.3, below the industry average of 1.4. It carries a Value Score of B.
Image Source: Zacks Investment Research
Estimates for AXS
The consensus estimate for earnings indicates 3.33% year-over-year growth in 2026, followed by 8.15% growth in 2027. Over the past 30 days, estimates have seen two upward revisions against no movement in the opposite direction. The consensus estimate for revenues projects year-over-year growth of 7.5% in 2026 and 8.1% in 2027.
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Can AXS Sustain Its Growth on Premium Strength and Underwriting?
Key Takeaways
AXIS Capital Holdings Limited (AXS - Free Report) has delivered solid financial performance over the past year, supported by consistent revenue growth. In 2025, the company generated approximately $6.6 billion in revenues, reflecting a 10.2% year-over-year increase, following 5.6% growth in 2024. This consistency has been largely driven by solid premium growth in its insurance business, supported by strong demand for specialty coverage.
A major factor behind this performance is improved underwriting. The company has remained disciplined in risk selection and pricing, leading to a sharp 255.5% jump in underwriting income in 2024, followed by a further 26.9% increase in 2025. A favorable pricing environment has also enabled AXIS to charge higher premiums while maintaining profitability.
Investment income has further supported overall growth. Net investment income rose 46.1% in 2023 and 24.1% in 2024, before slowing to 1% growth in 2025. Higher income from fixed maturities due to increased yields on the portfolio, income from cash and cash equivalents, and increased returns on alternative investments should drive net investment income.
AXIS has shifted toward higher-margin specialty lines such as marine cargo, cyber, and renewable energy, while reducing exposure to weaker segments. Steps like lowering risk exposure and tightening limits have made its portfolio more stable and less volatile.
Looking ahead, AXS’ growth will depend on continued strong pricing and underwriting discipline. While a softer market could slow momentum, AXIS’ improved business mix and focus on quality should help it maintain stable performance.
What About AXS’ Competitors?
TRV closely competes with large firms like The Progressive Corporation (PGR - Free Report) and The Travelers Companies, Inc. (TRV - Free Report) .
Progressive continues to benefit from strong fundamentals, with net premiums earned up 15.3% in 2025 and net investment income increasing 26.5% over the same period. PGR's high policyholder retention, particularly in auto insurance, supports a stable and recurring revenue base without heavy reliance on new customer acquisition.
The Travelers Companies is also seeing steady growth, with revenues reaching about $48.8 billion in 2025, up 5.2% year over year. This was driven by consistent premium growth. TRV’s Investment income remains a key strength, up 22.9% in 2024 and 10.3% in 2025, providing further support to overall revenue stability and growth.
AXS’ Price Performance
Shares of AXIS Capital have gained 6.1% in the past 12 months, outperforming the industry’s 6.8% decline.
Image Source: Zacks Investment Research
Valuation of AXS
AXS trades at a price-to-book ratio of 1.3, below the industry average of 1.4. It carries a Value Score of B.
Image Source: Zacks Investment Research
Estimates for AXS
The consensus estimate for earnings indicates 3.33% year-over-year growth in 2026, followed by 8.15% growth in 2027. Over the past 30 days, estimates have seen two upward revisions against no movement in the opposite direction. The consensus estimate for revenues projects year-over-year growth of 7.5% in 2026 and 8.1% in 2027.
AXIS Capital currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.