Bermuda-based AXIS Capital Holdings Limited announced that the net financial impact of the severe flooding in Thailand on the Company’s fourth quarter results is expected to be $48 million – net of reinsurance, taxes and reinstatement premiums.
AXIS also updated its estimates of losses from catastrophic events that occurred in the first three quarters of 2011, which, it said are “expected to adversely impact fourth quarter results by an aggregate $75 million, net of reinsurance coverage, taxes and reinstatement premiums.” $31 million relates to the February earthquake in New Zealand. Another $32 million relates to the Japanese earthquake and tsunami.
The company said a significant portion of these amounts are due to its “decision to reserve the full limit of its exposure for a large mutual, after consideration of updated loss advices.”
The loss estimates are “primarily based on the Company’s ground-up assessment of individual contracts and treaties in the affected regions and are consistent with the Company’s market position in the respective regions impacted by these catastrophe events.
“Other information considered in developing net loss estimates includes current industry insured loss estimates, market share analysis, catastrophe modeling analysis and limited information from clients, brokers and loss adjusters.”
In addition AXIS noted that its “assessment of its exposure to these catastrophe events is ongoing. The actual net financial impact of these catastrophe events may differ materially from the Company’s estimates due to the inherent uncertainties of making such estimates, including, but not limited to, the preliminary nature of available information, regulatory requirements, complications associated with claims adjustment in affected regions, variability associated with coverage definition and potential inaccuracies and inadequacies in data provided by clients and brokers.”
Source: AXIS Capital
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