AXIS provides estimate for Hagibis losses

AXIS Capital believes it lost between $90 million and $110 million through its exposure to Japanese Typhoon Hagibis.

The preliminary pre-tax loss estimate is net of estimated recoveries from reinsurance and retrocessional covers, and includes the impact of estimated reinstatement premiums.

This loss is consistent with industry insured losses of approximately $11 billion and its expected market share of less than 1 percent for this catastrophe event.

The 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. It also took into account industry insured loss estimates, market share analyses and catastrophe modeling analyses.

But AXIS warned the complexity of loss assessment and other factors make it very difficult to accurately estimate its exposure, meaning its eventual, calculated losses may be outside the estimated range.

“The additional complexity caused by the multiple catastrophic events that have occurred in Japan in recent months, together with the expectation of a relatively high proportion of flood related losses attributable to Typhoon Hagibis, are also likely to lead to increased uncertainty surrounding the estimated net ultimate loss for this event,” it added.