Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at AXIS Capital (NYSE: AXS) and the best and worst performers in the reinsurance industry.

This is a cyclical industry, and the sector benefits when there is 'hard market', characterized by strong premium rate increases that outpace loss and cost inflation, resulting in robust underwriting margins. The opposite is true in a 'soft market'. Interest rates also matter, as they determine the yields earned on fixed-income portfolios. The primary headwind remains the immense and concentrated exposure to large-scale catastrophe losses, as the growing impact of climate change challenges traditional risk models and creates significant earnings volatility. Additionally, they face the risk of adverse prior-year reserve development, where claims prove more costly than anticipated, while the eventual influx of new capital from alternative sources threatens to soften the market and compress future returns.

The 6 reinsurance stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.5%.

Thankfully, share prices of the companies have been resilient as they are up 5.7% on average since the latest earnings results.

AXIS Capital (NYSE: AXS)

Founded in the aftermath of the 9/11 attacks when insurance capacity was scarce, AXIS Capital Holdings Limited (NYSE: AXS) is a global specialty insurer and reinsurer that provides coverage for complex risks across property, liability, professional lines, cyber, and other specialty markets.

AXIS Capital reported revenues of $1.64 billion, up 4.1% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with a beat of analysts’ EPS estimates and a solid beat of analysts’ book value per share estimates.

Interestingly, the stock is up 12% since reporting and currently trades at $98.80.

Is now the time to buy AXIS Capital? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Hamilton Insurance Group (NYSE: HG)

Founded in 2013 and operating through three distinct underwriting platforms across four countries, Hamilton Insurance Group (NYSE: HG) operates global specialty insurance and reinsurance platforms across Lloyd's, Ireland, Bermuda, and the United States.

Hamilton Insurance Group reported revenues of $667.7 million, up 30.2% year on year, outperforming analysts’ expectations by 10.3%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

Hamilton Insurance Group scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 14.6% since reporting. It currently trades at $27.04.

Is now the time to buy Hamilton Insurance Group? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Everest Group (NYSE: EG)

Rebranded from Everest Re in 2023 to reflect its evolution beyond just reinsurance, Everest Group (NYSE: EG) underwrites property and casualty reinsurance and insurance worldwide, serving insurance companies, corporations, and other clients across six continents.

Everest Group reported revenues of $4.32 billion, flat year on year, falling short of analysts’ expectations by 2.5%. It was a disappointing quarter as it posted a significant miss of analysts’ net premiums earned estimates and a significant miss of analysts’ EPS estimates.

As expected, the stock is down 8.3% since the results and currently trades at $315.54.

Read our full analysis of Everest Group’s results here.

Fidelis Insurance (NYSE: FIHL)

Founded in Bermuda in 2014 and designed to adapt nimbly to evolving market conditions, Fidelis Insurance (NYSE: FIHL) is a global specialty insurer and reinsurer that provides customized coverage across property, specialty, and bespoke risk solutions.

Fidelis Insurance reported revenues of $651.9 million, down 5% year on year. This number lagged analysts' expectations by 11.1%. Overall, it was a softer quarter as it also logged a significant miss of analysts’ revenue estimates and a significant miss of analysts’ net premiums earned estimates.

Fidelis Insurance had the weakest performance against analyst estimates among its peers. The stock is down 3% since reporting and currently trades at $18.57.

Read our full, actionable report on Fidelis Insurance here, it’s free for active Edge members.

RenaissanceRe (NYSE: RNR)

Born in Bermuda after the devastating Hurricane Andrew created a crisis in the catastrophe insurance market, RenaissanceRe (NYSE: RNR) provides property, casualty, and specialty reinsurance and insurance solutions to customers worldwide, primarily through intermediaries.

RenaissanceRe reported revenues of $3.20 billion, down 19.5% year on year. This result beat analysts’ expectations by 9.7%. It was a stunning quarter as it also produced a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

RenaissanceRe had the slowest revenue growth among its peers. The stock is up 14.4% since reporting and currently trades at $264.84.

Read our full, actionable report on RenaissanceRe here, it’s free for active Edge members.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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