Axis Capital board oks $300M share buyback plan

Axis Capital board oks $300M share buyback plan

AXIS Capital Completes $291.5M Share Repurchase Amid Strong Underwriting Performance
AXIS Capital Holdings Limited (NYSE: AXS) announced the completion of a $291.53 million share repurchase program in the fourth quarter of 2025, buying back 3.8% of its outstanding shares under a buyback plan first disclosed in September 2025. The repurchase, which occurred between October 1 and December 31, 2025, reflects the insurer's confidence in its capital position and underwriting discipline, as highlighted in its full-year 2025 results.

The company reported record underwriting profitability for 2025, with a combined ratio of below 90%, a key metric indicating strong loss control and pricing discipline. Revenue for the year reached $6.56 billion, supported by its specialty insurance focus and operational efficiency gains. The share buyback aligns with AXIS's strategy to return surplus capital to shareholders while maintaining financial flexibility for growth initiatives.

Analysts have adjusted their valuation assumptions for AXIS, raising their future price-to-earnings (P/E) multiple from 7.99x to 8.40x, while maintaining a fair value estimate of $123.64 per share. The updated P/E assumption reflects improved capital management expectations, though revenue growth and profit margin forecasts remain stable at approximately 2.57% and 15.78%, respectively.

The buyback program has also coincided with a leadership transition at AXIS, prompting renewed scrutiny of its long-term strategic direction. While the company emphasizes underwriting excellence and risk management, analysts note that sustained profitability will depend on maintaining disciplined pricing in competitive markets and effectively managing cyber risk exposures.

AXIS's capital deployment strategy, including buybacks and potential dividends, remains a focal point for investors. The recent repurchase underscores management's commitment to optimizing shareholder value, though evolving market conditions and integration challenges from its pending merger with PartnerRe could influence future decisions.

As of February 2026, AXIS shares trade near analysts' fair value estimates, with market participants closely watching the insurer's ability to balance growth, profitability, and capital returns in a dynamic reinsurance landscape.