Axis Capital Poised for Better-Than-Market Growth With Multiple Drivers, UBS Says

MT Newswires Live
Oct 02

Axis Capital (AXS) is set for better-than-market growth with multiple drivers supporting expansion in both premium and investment income, UBS said in a note emailed Friday covering an investor meeting with the company.

The company said it sees continuing strong core portfolio growth, underpinned by the ongoing unit expansion and new product development, as well as "enhanced capabilities that allow business to move between wholesale and retail distribution channels," according to the note.

Axis also sees opportunities related to the data-center buildout across its property, specialty, and London market franchises. The opportunities include potential partnerships, UBS analysts said. Investment income is still a "meaningful tailwind" as new money yields exceed the book yield, the analysts added.

Attractive underwriting margins and lower underwriting volatility is expected to drive the stock's multiple expansion compared with the broader property and casualty insurance group, the analysts said.

UBS maintained the company's stock rating at buy with a price target of $126.

Price: 94.90, Change: -0.62, Percent Change: -0.64

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