Axis Capital estimates Ian loss of $160m
Axis Capital Holdings Limited expects to report a small operating income for the third quarter of 2022.
The Bermudian-based global specialty re/insurer said its results are impacted by a pre-tax net loss estimate for catastrophes and other weather-related events of $212 million ($186 million, after-tax), including $160 million for Hurricane Ian.
Axis’ insurance segment's results include an amount of $100 million for Hurricane Ian and $13 million for other weather-related events.
The company's reinsurance segment's results include an amount of $60 million for Hurricane Ian, $23 million for June European convective storms, and $16 million for other weather-related events.
Axis’ net loss estimate for Hurricane Ian is consistent with industry insured losses of approximately $60 billion, excluding the National Flood Insurance Program, it said.
The company's net loss estimate for June European convective storms is consistent with industry insured losses of approximately $7 billion, an increase from approximately $3 billion at June 30.
Other weather-related events primarily relate to regional weather events in the United States, and typhoons in Asia.
The net loss estimate for Hurricane Ian for the company's insurance segment is based primarily on a ground-up assessment of losses from individual contracts exposed to the affected regions, including preliminary information received from clients, brokers and loss adjusters.
The net loss estimate for Hurricane Ian for the company's reinsurance segment is primarily based on catastrophe modelling analyses, industry insured loss estimates, market share analyses and limited information received from clients and brokers.
Due to the nature and timing of this event, including the complexity of loss assessment, factors contributing to the loss and the preliminary nature of the information available to prepare this estimate, the actual net loss for this event may ultimately differ materially from this current estimate, the company said.
Hurricane Ian made landfall on the west coast of Florida on September 28.
Axis is to release its third quarter financial results on October 26.
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