Axis Capital's Insurance Operations Power Diversified Growth

The insurance segment remains the main source of premium expansion as AXIS Capital broadens products, distribution and customer access. Gross premiums written increased 15% year over year to $2.2 billion in the second quarter of 2026, while net premiums written rose 6%. Core business contributed about 2% growth, expanded classes added about 5%, and AXIS Capacity Solutions contributed about 8%. Short-tail business represented 59% of Insurance premiums in the quarter, supporting a less volatile mix. This broader platform supports continued growth without relying solely on marketwide pricing. 

The segment benefits AXIS Capital by leveraging its specialized underwriting expertise and disciplined risk selection to generate attractive underwriting margins while maintaining pricing discipline. Its diversified product portfolio also reduces reliance on any single line of business and enables AXIS to capitalize on favorable market conditions across specialty insurance markets. 

In addition, strong underwriting performance generates capital that can be reinvested in the business, returned to shareholders through dividends and share repurchases, or deployed toward strategic growth opportunities. 

Overall, the Insurance segment supports AXIS Capital’s premium growth, underwriting profitability, earnings diversification and capital generation.

What About Its Peers?

Cincinnati Financial Corporation’s CINF Commercial Lines Insurance segment is the company's largest business and a primary driver of premium growth and profitability. The segment provides a broad range of coverages, including commercial property, casualty, business auto and workers' compensation insurance, serving small and mid-sized businesses through a network of independent agents.

W. R. Berkley Corporation's WRB insurance segment is its core earnings engine, generating the majority of its premiums and underwriting income. The segment continued to perform well in the first half of 2026, with net premiums written rising 3.4% year over year. This segment is the company’s primary revenue-generating business, as it provides a broad range of property and casualty insurance products to commercial customers. The segment earns revenues primarily by collecting premiums from policyholders in exchange for providing coverage against various risks.

AXS’s Price Performance

Shares of AXS have gained 3.2% in the past year, outperforming the industry’s growth of 2.1%.

Image Source: Zacks Investment Research

AXS’s Attractive Valuation

The stock is undervalued compared with its industry. It is currently trading at a price-to-book value multiple of 1.24, lower than the industry average of 1.41.

Image Source: Zacks Investment Research

Estimate Movement for AXS

The Zacks Consensus Estimate for AXS’ third-quarter and fourth-quarter 2026 EPS has moved down 11.8% and 4.4%, respectively, in the past 30 days. The same for full-year 2026 and 2027 EPS has moved down 6.3% each in the past 30 days.

The consensus estimate for AXS’ 2026 revenues indicates a year-over-year increase. The consensus estimate for CINF’s 2027 EPS and revenues indicates a year-over-year increase. 

Image Source: Zacks Investment Research

AXS stock currently carries a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research