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Will AXIS Capital's (AXS) Strategic Initiatives Pay Off?

On Jan 4, 2016 we issued an updated research report on AXIS Capital Holdings LimitedAXS .

AXIS Capital's primary focus remains on strengthening its three businesses, namely Specialty Insurance, Reinsurance, and Accident and Health. Also, it has augmented its portfolio mix, improved underwriting profitability apart from strengthening focus on casualty and professional lines in the insurance segment, and motor and reinsurance in particular. All initiatives set the company for long-term growth, which is currently expected at 8.5%.

Capitalizing on its growth opportunities through utilization of resources, with a purpose of enhancing efficiencies and better serving clients and brokers worldwide, the insurer envisions expediting its growth profile. AXIS Capital decided to shut down its Australian retail insurance operations that will result in cost savings.

A sustained solid operational performance has been allowing this Zacks Rank #2 (Buy) insurer to engage in shareholder-friendly moves. Last month, the board of directors approved a 21% dividend hike followed by a share repurchase authorization of $750 million that is due to expire at the end of 2016.

However, due to its exposure to catastrophic events, the property and casualty (P&C) insurer suffered losses in the last reported third quarter of 2015. Its underwriting results were affected too. Also, a competitive reinsurance industry can lead to slow growth and lower profitability. Additionally, escalating expenses are affecting margin expansion.

Other Stocks to Consider

Investors interested in P&C insurers can also take a look at Hallmark Financial HALL , Aspen Insurance Holdings Limited AHL and Infinity Property and Casualty Corporation IPCC . Each of these stocks sports a Zacks Rank #1 (Strong Buy).

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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

AXIS CAP HLDGS (AXS): Free Stock Analysis Report

HALLMARK FINL (HALL): Free Stock Analysis Report

ASPEN INS HLDGS (AHL): Free Stock Analysis Report

INFINITY PPTY (IPCC): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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