Axis estimates losses from Superstorm Sandy at $300 million
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Insurer and reinsurer Axis Capital Holdings Ltd. said Monday it expected net losses from Superstorm Sandy to be about $300 million.
The Pembroke, Bermuda-based specialty lines insurer and treaty reinsurer said the net financial impact of the storm losses likely would be split evenly across its insurance and reinsurance segments.
Axis said in a statement that its reinsurance losses arose primarily from property catastrophe and property per-risk treaty reinsurance with commercial property exposure.
Axis said it expected to retain all the losses from its reinsurance segment.
Insurance losses largely are from commercial property exposures in the United States and marine lines of business including cargo, recreational marine, fine art and specie coverages, Axis said.
Axis said it expected to be able to make recoveries on losses from its insurance segment from property and marine per-risk treaty reinsurance coverages and property catastrophe treaty reinsurance. Under the terms of the catastrophe treaty reinsurance coverage that Axis has purchased to cover its insurance operations, the company retains 100% of the first $150 million of loss, net of recoveries from per risk treaty and facultative reinsurance, and 50% of the next $100 million layer, it said.
The company said that because of the complex nature of the expected losses arising from Superstorm Sandy, which wreaked havoc along the eastern seaboard of the United States as well as the Caribbean and Canada, its loss estimates may change.
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