Morgan Stanley Sees Axis Capital Holdings Limited Going Down Bumpy Road to Lower Volatility

In a report published Thursday, Morgan Stanley analyst Kai Pan reiterated an Equal-Weight rating on

. In the report, Morgan Stanley noted, “Axis is a global specialty underwriter with a management who is diversifying business mix towards lower volatility and potentially higher ROEs. Its balance sheet is buttressed by one of the strongest reserve positions in our coverage universe ($1b+ of excess) fueling ~10% annual capital returns via ~7‐9% buybacks and a 2‐3% dividend yield. Valuation is attractive below 1x Book value, but the uneven performance in recent periods keeps us Equal‐weight on the stock.” Axis Capital Holdings Limited closed on Wednesday at $45.75.