AXIS Capital Provides Preliminary Estimate Of Net Financial Impact Of Storm Sandy
AXIS Capital Holdings Limited (“AXIS Capital” or the “Company”) (NYSE:
AXS) today announced that its preliminary estimate of the total net
financial impact of Storm Sandy is approximately $300 million,...
AXIS Capital Holdings Limited (“AXIS Capital” or the “Company”) (NYSE: AXS) today announced that its preliminary estimate of the total net financial impact of Storm Sandy is approximately $300 million, net of tax and estimated recoveries from reinsurance and including estimated reinstatement premiums. The net financial impact is expected to be split evenly between the insurance and reinsurance segments of the Company. Within the reinsurance segment, losses primarily arise from property catastrophe and property per risk treaty reinsurance with commercial property exposure. Within the insurance segment, losses primarily arise from our property line of business which is primarily comprised of commercial property exposures in North America, and also arise from our marine line of business, which includes cargo, recreational marine, fine art and specie coverages impacted by the event. The Company’s exposure to Storm Sandy is consistent with the Company’s current market position in the affected region, particularly with respect to commercial exposure in both segments. The Company expects to retain all losses emanating from its reinsurance segment. Based on the preliminary estimate of losses emanating from its insurance segment, the Company expects recoveries under applicable property and marine per risk treaty reinsurance and property catastrophe treaty reinsurance. Under the terms of catastrophe treaty reinsurance protecting our insurance operations, we retain 100% of the first $150 million in losses, net of recoveries from per risk treaty and facultative reinsurance, and 50% of the next $100 million layer. The Company’s loss estimate for Storm Sandy is primarily based on its ground-up assessment of losses from individual contracts and treaties exposed to the affected region, including preliminary information from clients, brokers and loss adjusters. We also considered industry insured loss estimates, market share analyses and catastrophe modeling analyses, where appropriate. Due to the nature of this event, including the scope of the storm and the complexity of loss assessment and factors contributing to the losses, especially business interruption, and the preliminary nature of the information available to prepare these estimates, future estimates of losses and reinsurance recoveries and the actual ultimate amount of losses and reinsurance recoveries associated with Storm Sandy may be materially different from this current estimate.