AXIS Bottom Line Hit By Disasters
Bermuda’s AXIS Capital Holdings Limited today [Jan. 18] announced that the net financial impact of the severe flooding in Thailand [pictured] on the company’s fourth quarter results is expected to be $48 million.
This amount is net of reinsurance, taxes and reinstatement premiums.
Further, updated information from the company’s clients and intermediaries with respect to catastrophe events that occurred in the first three quarters of 2011 is expected to adversely impact fourth quarter results by an aggregate $75 million, net of reinsurance coverage, taxes and reinstatement premiums.
Of this amount, $31 million relates to the February earthquake in New Zealand.
Another $32 million relates to the Japanese earthquake and tsunami; a significant portion of this amount relates to the company’s decision to reserve the full limit of its exposure for a large mutual, after consideration of updated loss advices.
AXIS said in a statement: “The company’s loss estimates for these events are primarily based on the company’s ground-up assessment of individual contracts and treaties in the affected regions and are consistent with the company’s market position in the respective regions impacted by these catastrophe events.
“Other information considered in developing net loss estimates includes current industry insured loss estimates, market share analysis, catastrophe modeling analysis and limited information from clients, brokers and loss adjusters.
“The company’s assessment of its exposure to these catastrophe events is ongoing. The actual net financial impact of these catastrophe events may differ materially from the company’s estimates due to the inherent uncertainties of making such estimates, including, but not limited to, the preliminary nature of available information, regulatory requirements, complications associated with claims adjustment in affected regions, variability associated with coverage definition and potential inaccuracies and inadequacies in data provided by clients and brokers.”
AXIS Capital is a Bermuda-based global provider of specialty lines insurance and treaty reinsurance with locations in Bermuda, the United States, Europe, Singapore, Canada and Australia.
Its operating subsidiaries have been assigned a rating of A+ [Strong] by Standard & Poor’s and A [Excellent] by A.M. Best.
