Axis expects cat loss of $212M in Q3

Axis Capital Holdings Ltd. said late Thursday it expects its third-quarter earnings to be hurt by a pre-tax net loss estimate for catastrophes and other weather-related events of $212 million, $186 million after-tax, including $160 million for Hurricane Ian.

As a result, the company said it expects to report a small operating income for the third quarter of 2022.

Axis’ insurance segment’s results include $100 million for Hurricane Ian and $13 million for other weather-related events.

The reinsurance segment’s results include $60 million for Hurricane Ian, $23 million for June European Convective Storms and $16 million for other weather-related events, an Axis statement said.

Axis says its net loss estimate for Hurricane Ian is consistent with industry insured losses of approximately $60 billion, excluding the National Flood Insurance Program. Loss estimates thus far have reached as high as $74 billion.

Axis noted the actual net loss for this event may ultimately differ materially from current estimates.

Other insurers and reinsurers also have recently issued estimates related to Ian and third-quarter earnings, with Arch Capital Group Ltd. on Wednesday saying its 2022 third-quarter results see the impacts of $530 million to $560 million across its property/casualty insurance and reinsurance segments due to the effects of Hurricane Ian and other catastrophic events.