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Axis expects to report $250mn in Q3 cat losses, including $175mn from Ida

Axis logo storm damage.jpg

Axis Capital projects that it will record $250mn in third-quarter catastrophe losses when it reports its full set of results later this month.

On Thursday evening, the company disclosed that it anticipates claims from Hurricane Ida will total $175mn, which is based on $35bn in estimated industry losses from Ida.

Losses from the flooding in northwestern Europe in July are expected to cost Axis $55mn, a number that is based on a $13bn industry loss for that event.

The overall quarterly catastrophe figure is slightly above the $240mn in catastrophes Axis recorded a year ago, but appreciably lower than the level of losses peers have reported in recent days, reflecting Axis’s pullback from property cat underwriting in recent years.

Earlier on Thursday, Everest estimated third-quarter catastrophe losses at $635mn, below the $725mn figure RenRe disclosed on Tuesday.

On Monday, rival Bermudian (re)insurer Arch Capital said it expected between $330mn and $345mn in cat claims.

On Thursday, Axis also signaled that it expects to record continued core underwriting margin improvement, in line with the margin expansion generated in the first half of the year.

Underwriting profits at the (re)insurer have surged in recent quarters, led by strong underwriting gains within its insurance business. Income from underwriting jumped 70% in the second quarter to $148mn.

Axis will report its full set of third-quarter results after markets close on Wednesday, October 27.

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