AXIS Provides Q2 Preliminary Loss Estimates
Bermuda-based AXIS Capital Holdings Limited announced that its preliminary estimate of second quarter 2016 catastrophe and weather-related pre-tax losses is $104 million, net of estimated recoveries from reinsurance and including the impact of estimated reinstatement premiums.
Of this amount, $71 million is from major natural catastrophes and $33 million is from weather events.
“The Company was impacted by 20 events globally with estimated industry insured losses in excess of $19 billion, including approximately $11 billion from major natural catastrophes and $8 billion from weather events. Major natural catastrophes include the Fort McMurray wildfires, the Japanese and Ecuadorian earthquakes and the European floods. Weather events include multiple U.S. events, including Texas hailstorms,” the company said.
“Both the insurance and reinsurance segments of the Company contributed to these pre-tax net losses. Within the insurance segment, pre-tax net losses of $41 million primarily arose from U.S. weather events. Within the reinsurance segment, pre-tax net losses of $63 million primarily arose from major natural catastrophes.
“The Company’s 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. Industry insured loss estimates, market share analyses and catastrophe modeling analyses were also taken into account where appropriate.
“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.”
