AXIS: $140m Q2 loss estimate from floods, US tornadoes
AXIS Capital Holdings has announced that its preliminary estimate of second quarter 2013 natural catastrophe and weather-related pre-tax losses is $140 million, net of estimated recoveries from reinsurance and including estimated reinstatement premiums.
Both the insurance and reinsurance segments of the Bermuda-based company contribute to these pre-tax net losses.
Within the insurance segment, Axis said pre-tax net losses of $90 million primarily arose from tornadoes and hailstorms in the US and flooding in Argentina and Canada. Within the reinsurance segment, pre-tax net losses of $50 million primarily arose from flooding in Europe and Canada.
The company said its loss estimate is primarily based on its ground-up assessment of losses from individual contracts and treaties exposed to the affected regions, including preliminary information from clients, brokers and loss adjusters.
“We also considered industry insured loss estimates, market share analyses and catastrophe modelling analyses, where appropriate,” Axis said. “Due to the nature of the catastrophe and weather-related losses, including the complexity of loss assessment and factors contributing to the losses, and the preliminary nature of the information available to prepare these estimates, future estimates of losses and reinsurance recoveries and the actual ultimate amount of losses and reinsurance recoveries for these events may be materially different from this current estimate.”