Axis estimates $125m of pandemic net claims for quarter
The Covid-19 pandemic is estimated to account for $125 million of net claims, pre-tax, in the final three months of last year for Axis Capital Holdings Limited.
The Bermudian-based re/insurer has announced a preliminary fourth quarter net claims estimate in the range of $195 million to $205 million, pre-tax, for catastrophes and weather-related events, which includes the Covid-19 impact.
Axis said the Covid-19 estimate was determined following an extensive review of potential exposures to the pandemic on all lines of business, both short and longtail, which considered new information provided by clients, global shelter-in-place orders that came into effect in the fourth quarter and outcomes of recent court judgments, including the UK Supreme Court ruling. It said this amount is in addition to the estimate of $235 million recognised in the first quarter. The company noted that its claims reserves provide for ultimate Covid-19 related losses across all lines of business incurred at December 31, 2020.
Separately, other catastrophe and weather-related losses in the range of $70 million to $80 million, pre-tax, include Hurricanes Zeta and Delta, and regional weather events in the United States.
In addition, Axis Capital noted ongoing improvements in its current accident year loss ratios excluding catastrophe and weather-related losses consistent with progress observed earlier in 2020.
The company expects to release its fourth quarter financial results on January 27.