AXIS Capital issues Michael loss estimate

AXIS Capital Holdings has announced a preliminary pre-tax loss estimate for Hurricane Michael in the range of $100 million to $120 million.

The company said that the figure is net of estimated recoveries from reinsurance and retrocessional covers and including the impact of estimated reinstatement premiums. AXIS Capital said that its loss estimate is consistent with industry insured losses of approximately $10 billion.

The company added that the loss estimate is based on its ground-up 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 modelling analyses were also taken into account where appropriate.

However, it added the caveat that due to the nature of this event, including the complexity of loss assessment, factors contributing to the losses and the preliminary nature of the information available to prepare this estimate, the actual net ultimate amount of losses for this event may be materially different from this current estimate.