Axis Capital (AXS) Stock Forecast & Price Target

Axis Capital Holdings experienced a significant year-over-year growth of 16% in liability reinsurance premiums, with approximately 60% of this growth attributed to pull-forwards from future quarters, indicating strong underlying demand. Adjusted for these pull-forwards, the insurance net written premiums (NWP) growth would remain robust at 9.8%, driven by a 21% increase in North American submission counts, signaling successful expansion in various lines of business. Moreover, the company reported strong investment income of $207.7 million in Q1 2025, supported by higher returns on alternative investments and increased yields on its fixed-income portfolio, which positions Axis Capital favorably for sustained income growth.

Axis Capital Holdings Ltd is facing a negative outlook as its Accident & Health (A&H) Gross Written Premiums (GWP) decelerated to 19.3% in the first quarter of 2025, a significant drop from 31.8% in the same period the previous year, indicating concerns about price inadequacy. Additionally, the overall property pricing decrease of 7.1% is primarily driven by substantial drops in the London market, surpassing the approximately 2% decline in the U.S. market, which may adversely affect the company's revenue generation and growth prospects. These factors combine to contribute to Axis Capital's valuation discount compared to its specialty-focused peers, despite expectations of stable underwriting results in the future.