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

AXIS Capital Holdings Limited AXS 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.Axis Capital Holdings Limited Price, Consensus and EPS Surprise Axis Capital Holdings Limited price-consensus-eps-surprise-chart | Axis Capital Holdings Limited QuoteTotal 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 ResultsInsurance: 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 UpdateAXIS 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 DeploymentAs of June 30, 2025, AXIS Capital had $110 million remaining authorization under the board-authorized share repurchase program for common share repurchases.Zacks RankAXIS Capital currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other P&C InsurersCincinnati Financial Corporation CINF reported second-quarter 2025 operating income of $1.97 per share, which surpassed the Zacks Consensus Estimate by 41.7%. The bottom line increased 52.7% year over year. Total operating revenues in the quarter under review were $2.8 billion, which improved 15.3% year over year. However, the top line missed the consensus mark by 0.1%. Net written premiums climbed 11.1% year over year to $2.7 billion.Investment income, net of expenses, increased 17.8% year over year to $285 million and our estimate of $269.6 million. The Zacks Consensus Estimate was pegged at $279 million. In its P&C insurance business, CINF witnessed an underwriting income of $128 million, which increased 265.7% from the year-ago period. Our estimate was pegged at $69.4 million.Chubb Limited CB reported second-quarter 2025 core operating income of $6.14 per share, which outpaced the Zacks Consensus Estimate by 4.2%. The bottom line increased 14.1% year over year. Net premiums written improved 6.3% year over year to $14.2 billion in the quarter, which is in line with the Zacks Consensus Estimate. Our estimate was pegged at $14 billion. Net investment income was $1.5 billion, up 6.8 % year over year. The Zacks Consensus Estimate was pegged at $1.8 billion, while our estimate for the same was $1.9 billion. Revenues of $14.8 million missed the Zacks Consensus Estimate by a whisker but improved 6.9% year over year.Kinsale Capital Group KNSL delivered second-quarter 2025 net operating earnings of $4.78 per share, which outpaced the Zacks Consensus Estimate by 8.4%. The bottom line increased 27.5% year over year. Operating revenues increased 22.2% year over year to $470 million. Revenues beat the Zacks Consensus Estimate of $434 million. Net investment income increased 29.6% year over year to $46.5 million in the quarter. Our estimate was $46.8 million. Gross written premiums of $555.5 million rose 4.9% year over year. Our estimate was $623.1 million. Net written premiums climbed 6.6% year over year to $458.7 million in the quarter. Our estimate was pegged at $473.5 million.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chubb Limited (CB): Free Stock Analysis Report Cincinnati Financial Corporation (CINF): Free Stock Analysis Report Axis Capital Holdings Limited (AXS): Free Stock Analysis Report Kinsale Capital Group, Inc. (KNSL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks