AXIS Capital Holdings Ltd. reported approximately $200 million in preliminary fourth quarter catastrophe losses, more than half of which stem from the COVID-19 pandemic.
The Bermuda-based specialty insurer and reinsurer stated a pre-tax net claims estimate between $195 million and $205 million, covering catastrophes and weather-related events.
Of that number, $125 million pre-tax involves the COVID-19 pandemic. AXIS said this estimate is based on a detailed review of potential exposures to the COVID-19 pandemic on all lines of business, both short and long-tail, informed by new information from clients. Other factors in the estimate: Q4 global shelter-in-place orders and outcomes of recent court judgments involving business interruption coverage lawsuits, including the recent UK Supreme Court ruling requiring insurance to cover business-related COVID claims.
AXIS noted that its claims reserves cover “ultimate COVID-19 related losses across all lines of business” incurred as of Dec. 31, 2020.
AXIS blames Hurricanes Zeta and Delta, and regional weather events in the United States for an estimated $70 million to $80 million in additional pre-tax catastrophe and weather-related losses.
AXIS plans to release its 2020 fourth-quarter losses on Jan. 27, 2021, after the close of the financial markets
Source: AXIS Capital Holdings