AXIS Capital Holdings has revealed a $578 million preliminary impact from third quarter 2017 catastrophe losses, net of tax and estimated recoveries from reinsurance and retrocessional covers, and including reinstatement premiums.
Both the insurance and reinsurance segments of the company contributed to these after-tax net losses, which is apportioned between events as follows: Hurricane Harvey $220 million, Hurricane Irma $213 million, Hurricane Maria $113 million, Mexico earthquakes $32 million.
Albert Benchimol, Chief Executive Officer (CEO) and President of AXIS Capital, commented: “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.
“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 Capital will include Novae’s net financial impact from the recent catastrophes in AXIS’ capital results from the 2nd October, the date it acquired Novae Group shares.
Novae’s net financial impact from Hurricanes Harvey, Irma and Maria and the two earthquakes in Mexico is $60 million, net of estimated recoveries from reinsurance and including reinstatement premiums.
Based on current estimates of gross losses, AXIS Capital expects Novae to receive significant net reinsurance recoveries of $302 million, and retrocessional recoveries of $136 million.
The carrier maintains comprehensive catastrophe reinsurance coverage for its insurance segment, including facultative reinsurance, property per risk treaty reinsurance and property catastrophe treaty reinsurance from all events with significant aggregate reinsurance cover still remaining, however, the company will retain substantial insurance losses net of reinsurance of $315 million.
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.
