Axis estimates Q3 cat losses at about $250 million

Axis Capital Holdings Ltd. said Thursday after markets closed that it would post a third-quarter pre-tax net loss for catastrophes and other weather-related events of approximately $250 million.

Pembroke, Bermuda-based Axis said the pre-tax net loss estimate includes $175 million for Hurricane Ida, consistent with industry insured losses of approximately $35 billion, and $55 million for July European floods, consistent with industry insured losses of approximately $13 billion.

The pre-tax net loss estimate also includes $20 million for other catastrophe and weather-related events.

The insurer and reinsurer said it was seeing continuing improvements in its current accident year combined ratio excluding catastrophe and weather-related losses.

The net loss estimate is based on its 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.  

Axis said that due to the nature of the events and the complexity of loss assessment, “the actual net loss for these events may ultimately differ materially from this current estimate.”

Axis said in its third-quarter 2020 earnings statement that estimated pre-tax catastrophe and weather-related losses, net of reinsurance and reinstatement premiums, totaled $132 million, primarily attributable to Hurricanes Laura and Sally, the Beirut port explosion, wildfires in the western United States and other weather-related events, compared with $41 million in 2019.

Earlier Thursday, Everest Re Group Ltd. estimated that its pre-tax catastrophe net losses from Hurricane Ida and European floods will be $635 million.

On Monday, Arch Capital Group Ltd. said it estimated pre-tax catastrophe losses of $330 million to $345 million for the third quarter.