Calif. wildfire pretax loss estimate up to $150M: Axis

Axis Capital Holdings Ltd. said Wednesday its preliminary pretax loss estimate for the California wildfires is $125 million to $150 million.

The Pembroke, Bermuda-based company said the estimate is net of estimated recoveries from reinsurance and retrocessional covers, and includes the impact of estimated reinstatement premiums. 

The estimate includes losses from aggregate excess of loss reinsurance treaties that were also affected by losses from other 2018 catastrophes and weather-related events, the company said. It said its loss estimate is consistent with industry insured losses of up to $20 billion.

Catastrophe loss modelers’ wildfire estimates have ranged from $9 billion to $19 billion.

Axis said also its preliminary pretax loss estimate for Hurricane Michael is now at the upper end of its previously disclosed range of $100 million to $120 million.