AXIS pegs $250m cat hit in third quarter 2021

Re/insurer  AXIS Capital Holdings is estimating total net catastrophe losses of approximately $250 million for the third quarter 2021 mainly due to Hurricane Ida and the July European floods.

Its pre-tax net loss estimate includes $175 million for Hurricane Ida, consistent with industry insured losses of approximately $35 billion; and $55 million for July European floods, consistent with industry losses of $13 billion. Other catastrophes and weather-related events account for a further $20 million.

The company also noted improvements in its current accident year combined ratio, excluding catastrophe and weather-related losses, consistent with progress observed in the first half of 2021.

The net loss estimate is based on AXIS' ground-up assessment of losses from individual contracts and treaties exposed to the affected regions. Industry insured loss estimates, market share analyses and catastrophe modeling analyses were also taken into account where appropriate, said the specialty lines re/insurer, adding that the actual net loss for these events may ultimately differ materially from the current estimate.

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