AXIS expects up to $120m loss from hurricane Michael

Bermuda-based specialty lines insurance and treaty reinsurance provider AXIS Capital Holdings estimated its pre-tax loss from hurricane Michael in the range of $100 million to $120 million, net of estimated recoveries from reinsurance and retrocessional covers and including the impact of estimated reinstatement premiums.

Hurricane Michael made landfall near Mexico Beach, Florida, with strong category 4 wind speeds on October 10. Michael reached peak intensity of 155 mph just before landfall, making Michael the strongest hurricane to impact the Florida Panhandle in recorded history

Insured losses from Hurricane Michael will be close to $8 billion, according to catastrophe modelling agency Karen Clark & Company (KCC).

AXIS Capital’s loss estimate is consistent with industry insured losses of approximately $10 billion.

The company’s loss 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. Industry insured loss estimates, market share analyses and catastrophe modelling analyses were also taken into account where appropriate.

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