Highlights

  • AXIS shows 35.55% one-year basic EPS growth, a P/E of 7.28 and PEG of 0.39.
  • Second quarter net income to common shareholders was $251 million, or $3.38 per diluted share.
  • Second quarter combined ratio was 93.1%, against 88.9% a year earlier.
  • AXIS repurchased 978,000 shares for $97 million; $263 million remains under its February program.

An undervalued growth stock pairs earnings growth with its P/E and PEG ratios, and AXIS Capital (NYSE:AXS) shows all three: basic earnings per share grew 35.55% over one year, the trailing twelve-month P/E ratio is 7.28 and the PEG ratio, on an expected basis, is 0.39, with shares trading at USD 102.11 on October 28, 2026, down 0.13%. In its latest disclosures, the global specialty underwriter approved a $300 million share repurchase program on February 26, 2026, declared a $0.44 per share common dividend for the second quarter, and reported second quarter 2026 net income available to common shareholders of $251 million in late July.

AXIS Capital Holdings Limited is incorporated in Bermuda, with its principal executive offices in Pembroke, Bermuda. Through its operating subsidiaries, it describes itself as a global specialty underwriter and provider of insurance and reinsurance solutions, with locations in Bermuda, the United States, Europe, Singapore and Canada. Its underwriting operations are organized around two global platforms, AXIS Insurance and AXIS Re, and it also earns fees from arrangements with strategic capital partners.

Growth: Second Quarter Earnings, Premiums and Underwriting

Net income available to common shareholders was $250,532 thousand in the second quarter against $215,795 thousand a year earlier, and $497,734 thousand for the six months against $402,302 thousand. Basic earnings per share were $3.41 against $2.75, and diluted earnings per share were $3.38 against $2.72. For the six months, basic earnings per share were $6.74 against $5.04.

Gross premiums written were $2,667,631 thousand, up 6%, and net premiums earned were $1,518,984 thousand, up 9%. Insurance gross premiums written rose 15%, while Reinsurance gross premiums written fell 25%. Underwriting income, a non-GAAP measure, was $142,927 thousand against $189,201 thousand. Net investment income was $181,594 thousand against $187,297 thousand.

Valuation: P/E of 7.28, PEG of 0.39 and Book Value

The P/E ratio of 7.28 is measured on trailing twelve-month earnings, and the PEG ratio of 0.39 on expected growth. Book value per diluted common share was $80.67 at June 30, 2026, against $70.34 a year earlier. Annualized return on average common equity was 17.0% for the quarter against 15.7%, and annualized operating return on average common equity, a non-GAAP measure, was 14.3% against 19.0%.

The company said it is deploying capital where pricing supports its return thresholds and scaling back where it does not, and that growth is a consequence of disciplined underwriting rather than an objective in isolation.

Capital and Balance Sheet: Repurchases, Dividends and Debt

AXIS repurchased 978,000 common shares for $97 million in the second quarter, including $89 million under Board-authorized programs and $8 million from employees to satisfy withholding tax liabilities on vesting restricted stock units. For the six months, it repurchased 1.8 million shares for $180 million. The $400 million program approved September 17, 2025 was exhausted at June 30, 2026, and $263 million remained under the $300 million program approved February 26, 2026.

The Board declared common dividends of $0.44 per share for the quarter, matching the prior-year quarter, and has approved quarterly common share dividends for twenty-three consecutive years.

Debt was $1.3 billion, with a debt to total capital ratio of 16.8% against 17.2% at December 31, 2025. Total cash and invested assets were $17.8 billion, and fixed maturities, short-term investments and cash and cash equivalents made up 87% of the total with an average credit rating of AA-. The company stated that it expects cash flows from operations and investment portfolio liquidity to cover cash outflows and commitments for the foreseeable future.

Disclosed Risks and Outlook

The combined ratio was 93.1% against 88.9%, with the Insurance segment at 90.0% against 85.3% and Reinsurance at 94.5% against 92.0%. Catastrophe and weather-related losses, net of reinsurance, were $80 million, or 5.3 points, including natural catastrophe losses of $49 million; the remaining $31 million, or 2.1 points, was attributable to the Middle East conflict. In Insurance, the company attributed the higher adjusted current accident year loss ratio to an acceleration in property market softening and increasingly competitive conditions in casualty lines. Reorganization expenses were $6 million, and the effective tax rate was 19.2%.

The company stated that the global trade and geopolitical landscape remains fluid, introducing uncertainty across economic conditions, loss costs and capital deployment. It said market conditions are softening: casualty lines continue to show positive rate momentum, financial lines pricing remains stable and property markets face pressure from increased capital inflows. It expects reinsurance pricing to continue moderating. No numerical earnings guidance was given.