AXIS: Up to $105M in Losses From 2Q Cats

NU Online News Service, July 15, 1:55 p.m. EDT

AXIS Capital Holdings Limited says it expects between $90 million and $105 million in second-quarter losses, net of reinsurance, tax and reinstatement premiums, from a June aftershock in Christchurch, New Zealand and from April and May U.S. storms.

The Pembroke, Bermuda-based specialty insurer and reinsurer says the New Zealand aftershock is expected to cause losses of between $30 million and $35 million, while the U.S. storms are expected to cause between $60 million and $70 million in losses.

The company adds that updated information from first-quarter catastrophes is expected to add another $20 million in losses. “Favorable developments related to the net loss estimates for the earthquake and tsunami in Japan and the loss events in Australia that occurred during the first quarter are expected to largely offset an increase in the net loss estimate for the New Zealand earthquake that occurred during the first quarter,” AXIS says.

For industry-wide losses, AXIS says it expects $3 billion for the second-quarter New Zealand aftershock and $16 billion from the U.S. storms.

Aon Benfield, the global reinsurance intermediary of Aon Corp., says the tornado-spawning thunderstorms in the U.S. during April and May are expected to cause losses of around $15 billion. Catastrophe-risk modelers estimate insured losses of between $2 billion and $6 billion for the late-April tornado outbreak. AIR Worldwide adds up to $7 billion in losses due to late-May storms.

For the New Zealand June aftershock, catastrophe-modeler EQECAT says it expects insured losses of between $3 billion and $5 billion.