AXIS Capital’s third quarter results were met with a notably positive market reaction, reflecting investor confidence in key business expansions and operational execution. Management attributed the outperformance to continued momentum in specialty insurance lines, expansion into new business segments, and investments in underwriting technology. CEO Vincent Tizzio cited “sustained profitable growth, underpinned by an enhanced operating platform with new capabilities, products and a highly focused team.” The quarter was further marked by robust premium growth in insurance, strong underwriting income, and margin improvements supported by disciplined risk selection and reduced catastrophe exposure.
Is now the time to buy AXS? Find out in our full research report (it’s free for active Edge members).
AXIS Capital (AXS) Q3 CY2025 Highlights:
- Revenue: $1.67 billion vs analyst estimates of $1.65 billion (3.9% year-on-year growth, 1.4% beat)
- Adjusted EPS: $3.25 vs analyst estimates of $2.92 (11.5% beat)
- Adjusted Operating Income: $370 million vs analyst estimates of $295.4 million (22.1% margin, 25.3% beat)
- Operating Margin: 22.1%, up from 14.1% in the same quarter last year
- Market Capitalization: $7.39 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From AXIS Capital’s Q3 Earnings Call
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Andrew Kligerman (TD Cowen) asked about the sustainability of property growth and its impact on loss ratios. CEO Vincent Tizzio emphasized strong premium adequacy and portfolio diversification, explaining that growth comes from solid starting points and careful risk mix.
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Elyse Greenspan (Wells Fargo) questioned the impact of the RAC Re partnership on growth and the expense ratio. CFO Pete Vogt clarified that while RAC Re could push growth into double digits, its fee benefits will accrue gradually over several years due to the nature of the agreement.
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Joshua Shanker (Bank of America) raised concerns about elevated paid-to-incurred loss ratios amid rapid growth. Tizzio and Vogt explained that changes in claims organization and business mix, especially an increase in short-tail lines, explain the trend, and they remain comfortable with reserve strength.
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Jing Li (KBW) inquired about the profitability of the Markel renewal rights acquisition in professional lines. Tizzio reported that the acquired book is meeting expectations in terms of underwriting quality, pricing, and retention.
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Brian Meredith (UBS) asked about the effect of Bermuda’s substance-based tax credits on expenses. Vogt responded that while some benefit is expected, the exact impact depends on final legislation and will flow through as a reduction in G&A expenses.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be watching (1) the pace of insurance premium growth, particularly in new and expanded product lines; (2) the operational impact and efficiency gains from further technology investments and underwriting platform rollouts; and (3) the contribution of third-party capital partnerships like RAC Re to both growth and profitability. Developments in regulatory policy and changes in competitive market conditions will also be important signposts for AXIS Capital’s ongoing performance.
AXIS Capital currently trades at $91.19, up from $88.18 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free for active Edge members).
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