AXIS sees $212mn loss from weather events
AXIS Capital Holdings expects to report a small operating income for the third quarter of 2022. Its results are impacted 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.
The company's insurance segment's results include an amount of $100 million for Hurricane Ian and $13 million for other weather-related events. Its reinsurance segment's results include an amount of $60 million for Hurricane Ian, $23 million for June European convective storms, and $16 million for other weather-related events.
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. Its net loss estimate for June European convective storms is consistent with industry insured losses of approximately $7 billion, an increase from approximately $3 billion at June 30, 2022. Other weather-related events primarily relate to regional weather events in the United States, and typhoons in Asia.
The net loss estimate for Hurricane Ian for the company's insurance segment is based primarily on a ground-up assessment of losses from individual contracts exposed to the affected regions, including preliminary information received from clients, brokers and loss adjusters.
The net loss estimate for Hurricane Ian for the Company's reinsurance segment is primarily based on catastrophe modeling analyses, industry insured loss estimates, market share analyses and limited information received from clients and brokers.
“Due to the nature and timing of this event, including the complexity of loss assessment, factors contributing to the loss and the preliminary nature of the information available to prepare this estimate, the actual net loss for this event may ultimately differ materially from this current estimate,” AXIS added.
AXIS Capital has shareholders' equity of $4.7 billion at June 30, and locations in Bermuda, the US, Europe, Singapore and Canada.
