NDR Takeaways: Specialty Model Drives Durable Earnings Into a Changing Market

Research evidence excerpt

NDR Takeaways: Specialty Model Drives Durable Earnings Into a Changing Market

Axis Capital Holdings Limited (AXS)

Equity Research

June 22, 2026

Growth is coming from differentiated avenues. We believe the most differentiated part of the story

remains the combination of new teams, expanded classes, and AXIS Capacity Solutions. Management

had previously noted capability additions in North America environmental, U.S. construction, ocean

marine, life sciences, lower middle market, inland marine, allied health, surety, and pet. Management

also noted it has brought in eight teams that significantly contributed to growth, and while this

approach can take longer than M&A it gives the company more control over underwriting culture and

risk selection.

ACS is particularly important because it allows AXS to combine third-party capital with its insurance

business whereas it was previously done largely in reinsurance. Management described the structure

as both offensive and defensive. Offensive because AXS can originate premium adequate risks

and earn fees/commissions while sharing limit with partners, and defensive because it helps AXS

respond to the broader move toward program structures in London without simply ceding control of

the underwriting relationship. Alternatively, Reinsurance is being managed more selectively with the

company expecting the segment to settle around ~20% of top line over time, with continued growth

in specialty reinsurance but less traditional casualty.

Exhibit 2 - AXS Insurance: Underlying LR estimates have been reset and Exhibit 3 - We expect AXS to generate peer leading Op. ROE and above avg. NPW

conservatively reflect the business mix and rate over trend dynamic growth over the next several years supporting higher valuation