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Axis Capital Holdings (AXS)
NYSE:AXS
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Axis Capital (AXS) AI Stock Analysis

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AXS

Axis Capital

(NYSE:AXS)

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Outperform 71 (OpenAI - 4o)
Rating:71Outperform
Price Target:
$106.00
â–²(10.45% Upside)
Axis Capital's strong earnings performance and favorable valuation are the most significant factors driving the overall score. While technical indicators show mixed signals, the company's robust financial performance and positive earnings call sentiment contribute positively. However, recent cash flow challenges and operational efficiency issues present potential risks.
Positive Factors
Strong Insurance Segment Growth
The robust growth in the insurance segment underscores Axis Capital's ability to capture market share and expand its client base, indicating a strong competitive position and potential for sustained revenue growth.
Investment in Technology
Investments in AI and technology enhance operational efficiency and decision-making, positioning Axis Capital to improve underwriting accuracy and reduce costs, providing a durable competitive advantage.
Record Performance Metrics
Record financial metrics reflect strong operational execution and financial health, supporting Axis Capital's ability to reinvest in growth opportunities and withstand market fluctuations.
Negative Factors
Cash Flow Challenges
Significant cash flow challenges could impact Axis Capital's ability to fund operations and growth initiatives, potentially straining liquidity and financial flexibility over the medium term.
Challenges in Property Insurance
Stagnant growth in the property insurance segment indicates competitive pressures, which may limit Axis Capital's ability to expand market share and improve profitability in this area.
Cyber Portfolio Reshaping
Reshaping the cyber portfolio suggests challenges in adapting to evolving risks, potentially impacting Axis Capital's ability to capitalize on growth opportunities in the cyber insurance market.

Axis Capital (AXS) vs. SPDR S&P 500 ETF (SPY)

Axis Capital Business Overview & Revenue Model

Company DescriptionAXIS Capital Holdings Limited, through its subsidiaries, provides various specialty insurance and reinsurance products worldwide. It operates through two segments, Insurance and Reinsurance. The Insurance segment offers property insurance products for commercial buildings, residential premises, construction projects, and onshore energy installations; marine insurance products covering offshore energy, cargo, liability, recreational marine, fine art, specie, and hull war; and terrorism, aviation, credit and political risk, and liability insurance products. It also provides professional insurance products that cover directors' and officers' liability, errors and omissions liability, employment practices liability, fiduciary liability, crime, professional indemnity, cyber and privacy, medical malpractice, and other financial insurance related coverages for commercial enterprises, financial institutions, not-for-profit organizations, and other professional service providers. In addition, this segment offers accidental death, travel, and specialty health products for employer and affinity groups. The Reinsurance segment offers reinsurance products to insurance companies, including catastrophe reinsurance products; property reinsurance products covering property damage and related losses resulting from natural and man-made perils; professional lines; credit and surety; and motor liability products. This segment also provides agriculture reinsurance products; coverages for various types of construction risks and risks related to erection, testing, and commissioning of machinery and plants during the construction stage; marine and aviation reinsurance products; and personal accident, specialty health, accidental death, travel, life and disability reinsurance products. The company was founded in 2001 and is headquartered in Pembroke, Bermuda.
How the Company Makes MoneyAxis Capital generates revenue primarily through the underwriting of insurance and reinsurance policies. The company makes money by collecting premiums from policyholders, which are then invested to generate additional income. Its key revenue streams include direct insurance premiums, reinsurance premiums, and investment income. The company also benefits from a diversified portfolio, which allows it to manage risk effectively and optimize returns. Significant partnerships with brokers and agencies enhance its distribution capabilities, while its strong capital base enables it to underwrite large and complex risks, contributing to overall earnings.

Axis Capital Earnings Call Summary

Earnings Call Date:Jul 29, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call highlighted record performance metrics, strong growth in the insurance segment, and successful technology investments. However, challenges in property insurance, cyber portfolio reshaping, and a cautious stance in reinsurance were noted. The sentiment leans positive due to the outweighing highlights.
Q2-2025 Updates
Positive Updates
Record Performance Metrics
AXIS delivered an annualized operating return on equity of 19%, record diluted book value per common share of $70.34, up 18.6% year-over-year, and operating earnings per share was an all-time high of $3.29, a 12% increase over the prior year quarter.
Strong Insurance Segment Growth
The Insurance segment reported a record premium production of $1.9 billion, highlighted by 6.5% top-line growth and $641 million in new premiums written. Net written premium grew 8.1% in the quarter.
Positive Reinsurance Segment Results
Reinsurance produced a combined ratio of 92% with underwriting income of $38 million. Specialty short-tail lines contributed 37% of book premiums with attractive returns.
Investment Income Growth
The company reported a strong quarter for investment income at $187 million, benefiting from movements of approximately $2 billion out of cash.
AI and Technology Investments
AXIS advanced the modernization of its underwriting pipeline with AI-powered services, enhancing straight-through processing and underwriting decisioning through third-party data.
Negative Updates
Challenges in Property Insurance
Competitive market conditions in property insurance led to flat to low single-digit growth with an 11% rate reduction overall.
Cyber Portfolio Reshaping
AXIS continued to execute the reshaping of its cyber portfolio, reducing its delegated Cyber book by $35 million and facing challenges with AI-enabling more sophisticated attacks.
Cautious Reinsurance Stance
Despite positive rate momentum, ceding commissions in North America liability reinsurance are not commensurate with portfolio progress, leading to a cautious approach.
Company Guidance
During the AXIS Capital Second Quarter 2025 Earnings Conference Call, the company reported a strong quarter with several record-breaking metrics. The annualized operating return on equity was 19%, while the diluted book value per common share reached a record high of $70.34, representing an 18.6% increase year-over-year. Operating earnings per share also hit an all-time high at $3.29, a 12% increase from the previous year's quarter. AXIS achieved record second-quarter premiums of $2.5 billion, with $732 million in new business, and maintained a combined ratio of 88.9%. The Insurance segment alone delivered $1.9 billion in premium production, 6.5% top-line growth, and $641 million in new premiums, with an underwriting income of $152 million. In the Reinsurance segment, a combined ratio of 92% was reported, with $38 million in underwriting income. The company also noted a net income available to common shareholders of $216 million, translating to $2.72 per diluted common share. Overall, AXIS Capital highlighted its robust performance amidst ongoing market uncertainties, attributing success to disciplined underwriting and strategic investment in technology and analytics.

Axis Capital Financial Statement Overview

Summary
Axis Capital demonstrates strong profitability and a solid balance sheet with manageable debt levels. However, recent cash flow challenges could present risks if not addressed. The company's continued revenue growth and stable equity position suggest resilience, but operational efficiency improvements may be necessary to enhance cash flow performance.
Income Statement
75
Positive
Axis Capital's income statement reveals strong profitability with a Gross Profit Margin of 81.96% and a Net Profit Margin of 14.38% for TTM. There is a notable Revenue Growth Rate of 4.05% from 2024 to TTM, indicating steady growth. However, EBIT and EBITDA margins show some inconsistencies over the years, which could point to operational challenges or fluctuating costs.
Balance Sheet
70
Positive
The balance sheet reflects a stable financial position with a low Debt-to-Equity Ratio of 0.17 and a high Return on Equity of 14.44% for TTM. The Equity Ratio is 18.08%, which suggests a reasonable reliance on equity. Despite this, the changes in Total Debt and Stockholders' Equity over the years indicate some financial restructuring.
Cash Flow
65
Positive
The cash flow analysis shows a challenging scenario with negative Free Cash Flow growth of -136.88% from 2024 to TTM, as well as a negative Operating Cash Flow to Net Income Ratio. However, the company demonstrates a strong Free Cash Flow to Net Income Ratio in previous periods, indicating past strength in cash generation.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.15B5.96B5.62B5.26B5.32B4.88B
Gross Profit1.70B5.95B5.61B5.12B5.32B4.84B
EBITDA1.13B1.08B542.42M374.56M778.19M11.71M
Net Income891.79M1.08B376.29M223.08M618.61M-120.42M
Balance Sheet
Total Assets34.15B32.52B30.25B27.60B27.37B25.88B
Cash, Cash Equivalents and Short-Term Investments1.41B6.92B5.31B4.95B13.19B13.11B
Total Debt106.54M1.49B1.52B1.50B1.43B1.45B
Total Liabilities27.98B26.43B24.99B22.96B21.96B20.58B
Stockholders Equity6.17B6.09B5.26B4.64B5.41B5.30B
Cash Flow
Free Cash Flow-680.51M1.84B1.26B655.39M1.08B298.84M
Operating Cash Flow-680.51M1.84B1.26B692.22M1.11B343.50M
Investing Cash Flow968.42M280.45M-855.61M-655.80M-1.11B489.92M
Financing Cash Flow-815.22M-417.29M-202.37M-149.62M-186.09M-908.80M

Axis Capital Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price95.97
Price Trends
50DMA
96.62
Negative
100DMA
98.78
Negative
200DMA
95.32
Positive
Market Momentum
MACD
-0.55
Positive
RSI
47.86
Neutral
STOCH
36.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AXS, the sentiment is Neutral. The current price of 95.97 is below the 20-day moving average (MA) of 96.86, below the 50-day MA of 96.62, and above the 200-day MA of 95.32, indicating a neutral trend. The MACD of -0.55 indicates Positive momentum. The RSI at 47.86 is Neutral, neither overbought nor oversold. The STOCH value of 36.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AXS.

Axis Capital Risk Analysis

Axis Capital disclosed 54 risk factors in its most recent earnings report. Axis Capital reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Axis Capital Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$6.41B11.8017.27%2.01%4.47%102.98%
76
Outperform
$5.97B18.6122.72%4.02%10.29%-4.70%
74
Outperform
$4.86B13.0711.39%1.90%12.27%66.53%
74
Outperform
$9.77B21.8927.96%0.16%21.51%20.03%
71
Outperform
$7.50B9.1015.07%1.83%6.87%43.53%
69
Neutral
$4.42B21.324.33%0.06%8.08%-57.76%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AXS
Axis Capital
95.97
17.33
22.04%
RLI
RLI
64.41
-11.94
-15.64%
SIGI
Selective Insurance Group
79.84
-11.45
-12.54%
THG
Hanover Insurance
179.31
33.65
23.10%
WTM
White Mountains Insurance Group
1,715.94
-51.22
-2.90%
KNSL
Kinsale Capital Group
419.33
-56.23
-11.82%

Axis Capital Corporate Events

Business Operations and StrategyExecutive/Board Changes
Axis Capital Announces New CFO Appointment
Positive
Aug 14, 2025

On August 14, 2025, AXIS Capital Holdings Limited announced that Matthew Kirk will become the new Chief Financial Officer effective March 31, 2026, succeeding Peter Vogt. Kirk, who joins from Enstar Group Limited, will initially serve as a special advisor to the CEO before assuming the CFO role. This transition is part of AXIS’s ongoing transformation into a specialty underwriting leader, with Kirk expected to contribute to the company’s growth and strategic goals. Peter Vogt will remain as a strategic advisor until the end of 2026 to ensure a smooth transition.

The most recent analyst rating on (AXS) stock is a Buy with a $110.00 price target. To see the full list of analyst forecasts on Axis Capital stock, see the AXS Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 16, 2025