13 October 2017News

AXIS faces $0.6bn nat cat hit in Q3, begins claims payment

AXIS Capital expects the total net financial impact of $578 million from third quarter 2017 catastrophe losses.

This is net of tax and estimated recoveries from reinsurance and retrocessional covers, and includes the impact of estimated reinstatement premiums.

“We have commenced paying claims for our insureds, and our team will continue to work tirelessly with our clients and partners so that we can assist in the rebuilding efforts,” AXIS Capital CEO Albert Benchimol.

“While we dedicate our energies and resources to support our clients and partners in managing through the challenges presented by these events, we stand ready to provide the protection and services our clients and partners in distribution need so they can deliver on their promises to their customers.”

AXIS also noted that it maintains comprehensive catastrophe reinsurance coverage for its insurance segment, including facultative reinsurance, property per risk treaty reinsurance and property catastrophe treaty reinsurance.

Under the terms of the property catastrophe reinsurance treaty which principally applies to these events, the insurance segment maintains cover in excess of $200 million per event, net of recoveries from applicable property per risk treaty and facultative reinsurance, according to the statement.

Both the insurance and reinsurance segments of the company contributed to the after-tax net losses. Retrocessional recoveries were estimated at $136 million.