AXIS unveils extra $125m in COVID losses for Q4

AXIS Capital Holdings has announced a preliminary fourth quarter net claims estimate in the range of $195 million to $205 million, pre-tax, for catastrophes and weather-related events.

The net claims estimate includes $125 million, pre-tax, for the COVID-19 pandemic.

The company said this amount was determined following an extensive review of potential exposures to the COVID-19 pandemic on all lines of business, both short and long-tail, which considered new information provided by clients, global shelter-in-place orders that came into effect in the fourth quarter and outcomes of recent court judgments, including the UK Supreme Court ruling.

This amount is in addition to the estimate of $235 million recognized in the first quarter. The company noted that its claims reserves provide for ultimate COVID-19 related losses across all lines of business incurred at December 31, 2020.

Separately, other catastrophe and weather-related losses in the range of $70 million to $80 million, pre-tax, include Hurricanes Zeta and Delta, and regional weather events in the US.

In addition, AXIS Capital noted ongoing improvements in its current accident year loss ratios excluding catastrophe and weather-related losses consistent with progress observed earlier in 2020.