AXIS Capital Holdings Limited, the Bermuda headquartered global specialty insurance and treaty reinsurance writer, has estimated that catastrophe losses from the third-quarter of 2021 will cost the company around $250 million, before tax ($219 million, after-tax).
The main contributor to AXIS Capital’s Q3 2021 catastrophe loss burden is, of course, hurricane Ida, which the company expects will cost it roughly $175 million pre-tax.
These estimates are net of reinsurance or retrocession recoveries, and based on a ground-up assessment of losses from individual exposed contracts and treaties covering the affected regions, and include preliminary information from clients, brokers and loss adjusters, the company said.
The $250 million Q3 catastrophe loss burden also includes $55 million of losses from the European flooding in July and another $20 million of losses from other catastrophes or weather-related events.
AXIS Capital’s estimates are based on an industry loss of $35 billion for hurricane Ida and $13 billion for the European flooding, which are higher than some other carriers loss picks.
Analysts said that AXIS’ $250 million of Q3 losses is a little lower than they had been expecting, so the firm’s shares may perform well afterwards.
AXIS also said that it is going to report continuing improvements to its current accident year combined ratio, with catastrophe and weather-related losses excluded, which it says is consistent with progress observed in the first half of 2021.
Other companies that have pre-announced their Q3 catastrophe losses so far include: