AXIS Capital Holdings Limited has reported a preliminary catastrophe loss estimate of $130 million as a result of fourth-quarter 2017 catastrophe and weather-related events.
The total is net of tax and estimated recoveries from both reinsurance and retrocessional covers, and is also inclusive of reinstatement premiums.
The estimate includes a change in the expected financial impact from the initial range of $35 million to $45 million, to $54 million, related to the Northern California wildfires.
A further $38 million of the estimate is related to the Southern California wildfires, with the remaining $38 million being related to other catastrophe, or weather-related events.
“Other event losses are primarily attributable to an aggregate excess of loss reinsurance cover which was impacted by various 2017 catastrophe and weather-related events,” explains AXIS Capital.
The firm states that both its insurance and reinsurance segments contributed to these losses, which are after-tax net losses.
As well as announcing its preliminary Q4 2017 catastrophe loss impact, the re/insurer has discussed the impact of the reduction in the U.S. corporate income tax rate to 21%, stating that it expects to recognize a tax charge in the final quarter of last year related to the revaluation of its net Deferred Tax Asset.
“This charge is estimated to be approximately $42 million and will not affect the Company’s non-GAAP operating net income, a non-GAAP financial measure. Based on its preliminary assessment, the Company does not currently expect U.S. Tax Reform to have a material impact going forward on its net income,” said AXIS Capital.
