AXIS Capital Holdings Limited AXS reported first-quarter 2026 operating income of $3.42 per share, which outpaced the Zacks Consensus Estimate of $3.23 and rose 7.9% year over year.
The quarterly results benefited from higher net premiums earned and stronger underwriting income, partly offset by lower net investment income and higher expenses.
Axis Capital Holdings Limited Price, Consensus and EPS Surprise
Axis Capital Holdings Limited price-consensus-eps-surprise-chart | Axis Capital Holdings Limited Quote
AXS’s Quarterly Operational Update
Total operating revenues of $1.7 billion marginally beat the Zacks Consensus Estimate by 0.4%. The top line rose nearly 7.7% year over year on higher premiums earned.
Net premiums written increased 9% to $1.9 billion, driven by a 24% rise in the Insurance segment, partially offset by a 13% decline in the Reinsurance segment.
Net investment income decreased 11.1% year over year to $184.7 million, due to lower income from cash. The Zacks Consensus Estimate was pegged at $225.1 million.
Total expenses in the quarter increased 3.8% year over year to $1.3 billion due to higher net losses and loss expenses, acquisition costs and reorganization expenses. Our estimate was pegged at $1.4 billion.
Pre-tax catastrophe and weather-related losses, net of reinsurance, totaled $48 million, including $33 million from natural catastrophes. The remaining $15 million was attributable to the Middle East conflict.
AXIS Capital’s underwriting income of $187 million increased 15% year over year. The combined ratio improved to 89.8 in the quarter from 90.2 a year ago, reflecting stronger underwriting performance. The Zacks Consensus Estimate was pegged at 93.1. Our estimate was 92.6.
Segment Results
Insurance: Gross premiums written improved 19.8% year over year to $2 billion. Our estimate was $1.8 billion. Net premiums earned increased 23.8% year over year to $1.3 billion, driven by higher gross premiums written and a lower cession rate in liability lines, partly offset by a higher cession rate in property lines. Our estimate was $1.1 billion.
Underwriting income of $157.4 million increased 17% year over year. The combined ratio improved 40 basis points to 86.3. The Zacks Consensus Estimate for the combined ratio was pegged at 88.4.
Reinsurance: Gross premiums written decreased 2.2% year over year to $1.1 billion, mainly due to non-renewals and reduced line sizes in liability and motor lines, in line with our estimate of $1.1 billion. Net premiums earned increased 2.4% year over year to $338.7 million, exceeding our estimate of $315.3 million.
Underwriting income of $30 million increased 3.8% year over year. The combined ratio deteriorated 40 basis points, up 92.7%. The Zacks Consensus Estimate for the combined ratio was pegged at 101.
Financial Update
AXIS Capital exited the first quarter with cash and cash equivalents of $862.4 million, up 5.1% from the 2025-end level. Debt was $1.3 billion at quarter-end, unchanged from the 2025 year-end level.
Book value per diluted common share was $78.19, up 1.3% from the Dec. 31, 2025, level.
An annualized operating ROACE of 17.7% reflected strong capital efficiency despite easing from 19.2% a year ago.
Capital Deployment
AXIS Capital returned $93 million to common shareholders in the quarter, including $60 million in share repurchases and $33 million in dividends.
AXS’s Zacks Rank
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.
Performance of Other Insurers
American Financial Group, Inc. AFG reported first-quarter 2026 net operating earnings per share of $2.47, which missed the Zacks Consensus Estimate of $2.55. However, the bottom line increased 36.5% year over year, driven by underwriting income. American Financial‘s total revenues of $1.8 billion decreased 1.7% year over year. The top line also missed the Zacks Consensus Estimate by 8.3%.
AFG’s net earned premiums rose 1.8% year over year to $1.6 billion in the first quarter of 2026. Net investment income rose 8.1% year over year to $187 million in the quarter under review. The figure was lower than our estimate of $199.8 million and also missed the Zacks Consensus Estimate of $210.2 million.
W.R. Berkley Corporation WRB reported first-quarter 2026 operating income of $1.30 per share, which beat the Zacks Consensus Estimate by 15%. The bottom line increased 28.7% year over year.
WRB’s total revenues were $3.7 billion, up 5% year over year, driven by higher net premiums earned, improved net investment income, higher revenues from non-insurance businesses and increased other income. W.R. Berkley’s top line missed the consensus estimate by 0.28%. The company’s net premiums written were about $3.2 billion, up 1.3% year over year. The figure, however, beat our estimate as well as the Zacks Consensus Estimate of $3.18 billion.
Chubb Limited CB reported first-quarter 2026 core operating income of $6.82 per share, which outpaced the Zacks Consensus Estimate by 5.2%. The bottom line decreased 85.2% year over year. CB’s total operating revenues improved 11.8% year over year to $15.3 billion. The top line beat the Zacks Consensus Estimate by 3%.
Chubb’s net premiums written improved 10.7% year over year to $14 billion in the quarter. Our estimate was $13.6 billion, while the Zacks Consensus Estimate was pegged at $13.5 billion. Net investment income was $1.7 billion, up 9.5% year over year. The Zacks Consensus Estimate was pegged at $1.8 billion.
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Chubb Limited (CB): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).