Bermuda-based insurer and reinsurer, AXIS Capital Holdings Limited, has announced a preliminary Q4 2020 net claims estimate of between $195 million to $205 million, pre-tax, for catastrophes and weather-related events.
Of this range, AXIS states that a significant $125 million, pre-tax, relates to the COVID-19 pandemic, while an additional $70 million to $80 million, pre-tax, relates to other catastrophe and weather-related events.
Regarding the additional hit from the ongoing coronavirus pandemic, AXIS says that the $125 million figure was determined following an extensive review of potential exposures to the pandemic on all lines of business.
AXIS continues to note that this includes both short and long-tail lines of business, adding that it considered new information provided by clients, global shelter-in-place orders that came into effect in Q4, and outcomes of recent court judgments, including the UK Supreme Court ruling.
This amount is on top of the $235 million estimate AXIS recognised in the first-quarter of 2020, taking the firm’s total estimate of pandemic-related losses to $360 million.
Previously, the re/insurer explained that its claims reserves provide for ultimate COVID-19-related losses across all lines of business incurred at December 31st, 2020.
The $70 million to $80 million range provided by AXIS for other catastrophe and weather-related events, includes Hurricanes Delta and Zeta, and other regional weather events in the U.S.
At the same time, AXIS has reported ongoing improvements in its current accident year loss ratios, excluding catastrophe and weather-related losses, which is consistent with the company’s progress seen earlier in 2020.