Press release from Business Wire
AXIS Capital Provides Preliminary Estimate of Natural Catastrophe and Weather-Related Net Losses Impacting Second Quarter 2013 Financial Results
Wednesday, July 17, 2013
AXIS Capital Provides Preliminary Estimate of Natural Catastrophe and Weather-Related Net Losses Impacting Second Quarter 2013 Financial Results16:05 EDT Wednesday, July 17, 2013
PEMBROKE, Bermuda (Business Wire) -- AXIS Capital Holdings Limited (“AXIS Capital” or the “Company”) (NYSE: AXS) today announced that its preliminary estimate of second quarter 2013 natural catastrophe and weather-related pre-tax losses is $140 million, net of estimated recoveries from reinsurance and including estimated reinstatement premiums. Both the insurance and reinsurance segments of the Company contribute to these pre-tax net losses.
Within the insurance segment, pre-tax net losses of $90 million primarily arose from tornadoes and hailstorms in the U.S. and flooding in Argentina and Canada. Within the reinsurance segment, pre-tax net losses of $50 million primarily arose from flooding in Europe and Canada.
The Company'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. We also considered industry insured loss estimates, market share analyses and catastrophe modeling analyses, 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.
AXIS Capital is a Bermuda-based global provider of specialty lines insurance and treaty reinsurance with shareholders' equity at March 31, 2013 of $5.9 billion and locations in Bermuda, the United States, Europe, Singapore, Canada, Australia and Latin America. Its operating subsidiaries have been assigned a rating of “A+” (“Strong”) by Standard & Poor's and “A” (“Excellent”) with a positive outlook by A.M. Best. AXIS Capital and AXIS Specialty Finance LLC have been assigned senior unsecured debt ratings of A- (stable) by Standard & Poor's and Baa1 (stable) by Moody's Investors Service. For more information about AXIS Capital, visit our website at www.axiscapital.com.
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 natural 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.
AXIS Capital Holdings Limited
Linda Ventresca, 441-405-2727
Kekst and Company
Michael Herley, 212-521-4897