AXIS Capital estimates net claims provision of $235m for COVID-19

AXIS Capital Holdings has announced an estimated net claims provision of $300 million, pre-tax, for Q1, related to catastrophe and other weather-related events, of which $235 million relates to the COVID-19 pandemic.

AXIS Capital’s estimated net claims provision for COVID-19 is largely attributable to property related coverages but also includes event cancellation and accident and health coverages.

AXIS Capital said it had seen continuous improvement in its current accident year loss ratios excluding catastrophe and weather-related losses for its re/insurance businesses in Q1.

AXIS said it also expects to report a full limit loss of $10 million associated with the WHO pandemic swap.

Albert Benchimol, president and CEO of AXIS Capital, noted that COVID-19 has disrupted both society and the re/insurance market, globally.

"While COVID-19 continues to create unprecedented challenges and uncertainty for all carriers, we believe AXIS is well-positioned to manage through the pandemic,” he said. “We entered 2020 with strong capital adequacy, a high-quality investment portfolio, and a well-balanced book of business. Our portfolio optimisation actions are delivering tangible results.”

Benchimol confirmed that most AXIS contracts do not provide coverage for losses related to COVID-19, but said the re/insurer is processing claims and making payments in those instances where coverage exists. “We proudly stand by our promise to be there for our customers in their time of need,” he added.