AXIS Capital Provides Estimated Net Financial Impact of Third Quarter 2017 Catastrophe Losses

PEMBROKE, Bermuda--(BUSINESS WIRE)--$AXS #axiscapital--AXIS Capital Holdings Limited (“AXIS Capital” or the “Company”)
(NYSE:AXS) today announced that its preliminary estimate of the total
net financial impact from third quarter 2017 catastrophe losses is $578
million, net of tax and estimated recoveries from reinsurance and
retrocessional covers, and including the impact of estimated
reinstatement premiums.


Both the insurance and reinsurance segments of the Company contributed
to these after-tax net losses which is apportioned between events as
follows:

 
 

Three months ended September 30, 2017

(Amounts in millions of U.S. dollars)

Third quarter 2017 loss events

 

Hurricane
Harvey

 

Hurricane
Irma

 

Hurricane
Maria

 

Mexico
Earthquakes

   

Total

Insurance Segment

Losses and loss expenses - gross

$

148

 

$

137

 

$

26

 

$

10

   

$

 

321

Less: Reinsurance recoveries   4     1     1             6
Losses and loss expenses - net $ 144   $ 136   $ 25   $ 10     $   315
Reinsurance Segment

Losses and loss expenses - gross

$

139

$

158

$

126

$

35

$

458

Less: Retrocessional recoveries 40 54 30 12 136
Less: Reinstatement premiums   3     12     5             20
Losses and loss expenses - net $ 96   $ 92   $ 91   $ 23     $   302
 

AXIS Capital net loss (pre-tax)

$

240

$

228

$

116

$

33

$

617

Less: Tax Benefit   20     15     3     1         39
AXIS Capital net financial impact   $ 220   $ 213   $ 113   $ 32     $   578
 

AXIS Capital acquired the shares of Novae Group plc (“Novae”) on October
2, 2017. The results of Novae will be included in the AXIS Capital
results from that date. AXIS Capital estimates Novae’s net financial
impact from Hurricanes Harvey, Irma and Maria and the two earthquakes in
Mexico is $60 million, net of estimated recoveries from reinsurance and
including the impact of estimated reinstatement premiums. Based on
current estimates of gross losses, AXIS Capital expects Novae to receive
reinsurance recoveries from all events with significant aggregate
reinsurance cover still remaining.

AXIS Capital’s loss estimate is primarily 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 modeling analyses were also taken into
account where appropriate. Due to the nature of the catastrophe and
weather-related losses, including the complexity of loss assessment and
factors contributing to the losses, 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 for these events may be materially
different from this current estimate. The additional complexity caused
by the multiple events, together with the expectation of a relatively
high proportion of flood related losses attributable to Hurricane
Harvey, is also likely to lead to increased uncertainty surrounding the
total estimated ultimate losses for these events.

AXIS Capital expects to receive retrocessional recoveries in its
reinsurance segment as detailed in the table above. Based on current
estimates of losses from third quarter catastrophe events, the Company
expects to retain substantially all losses emanating from its insurance
segment. The Company maintains comprehensive catastrophe reinsurance
coverage for its insurance segment, including facultative reinsurance,
property per risk treaty reinsurance and property catastrophe treaty
reinsurance. Under the terms of the property catastrophe reinsurance
treaty which principally applies to these events, the insurance segment
maintains cover in excess of $200 million per event, net of recoveries
from applicable property per risk treaty and facultative reinsurance.

Albert Benchimol, CEO and President of AXIS Capital commented: “

Our
foremost thoughts are with the people whose lives have been impacted by
this unprecedented series of catastrophic events. Our mission is to help
people, businesses and communities recover from calamities such as
these, and we are fully committed to supporting and serving the
communities that have been affected by the devastation. We have
commenced paying claims for our insureds, and our team will continue to
work tirelessly with our clients and partners so that we can assist in
the rebuilding efforts. While we dedicate our energies and resources to
support our clients and partners in managing through the challenges
presented by these events, we stand ready to provide the protection and
services our clients and partners in distribution need so they can
deliver on their promises to their customers.”

About AXIS Capital

AXIS Capital is a Bermuda-based global provider of specialty lines
insurance and treaty reinsurance with shareholders’ equity at June 30,
2017 of $5.9 billion and locations in Bermuda, the United States,
Europe, Singapore, Middle East, Canada and Latin America. Its operating
subsidiaries have been assigned a rating of “A+” (“Strong”) by Standard
& Poor’s and “A+” (“Superior”) by A.M. Best. For more information about
AXIS Capital, visit our website at www.axiscapital.com.

Please be sure to follow AXIS Capital on LinkedIn
and Twitter.

Cautionary Note Regarding Forward-Looking Statements

This release contains forward-looking statements within the meaning of
the U.S. federal securities laws. Forward-looking statements contained
in this release include information regarding our estimates of losses
related to catastrophe and weather events. These statements involve
risks, uncertainties and assumptions. Actual events or results may
differ materially from our expectations. Important factors that could
cause actual events or results to be materially different from our
expectations include actual claims exceeding our loss reserves; the
failure of any of the loss limitation methods we employ; the effects of
emerging claims, coverage and regulatory issues, including uncertainty
related to coverage definitions, limits, terms and conditions; the
failure of our cedants to adequately evaluate risks; the use of industry
catastrophe models and changes to these models; general economic
conditions; and the other factors set forth in our most recent report on
Form 10-K, Form 10-Q and other documents on file with the Securities and
Exchange Commission. We undertake no obligation to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.


Contacts

Investors
AXIS Capital Holdings Limited
Linda
Ventresca, 441-405-2727
investorrelations@axiscapital.com
or
Media
AXIS
Capital Holdings Limited
Joe Cohen, 212-715-3524
joseph.cohen@axiscapital.com