AXIS Capital Provides Initial Comments on Fourth Quarter Results

Rhea-AI Summary

AXIS Capital Holdings Limited (NYSE: AXS) has announced a preliminary fourth-quarter net claims estimate of $195 million to $205 million, pre-tax, primarily due to catastrophes and weather-related events. This includes a significant $125 million estimation for COVID-19 claims, in addition to $235 million recognized earlier this year. Other related losses amount to $70 million to $80 million from events like Hurricanes Zeta and Delta. Despite these challenges, AXIS noted improvements in current accident year loss ratios. The full results will be reviewed on January 28, 2021.

Positive

• Improvements in current accident year loss ratios.
• Strong financial backing with shareholders' equity at $5.3 billion.

Negative

• Preliminary claims estimate includes significant COVID-19 related losses of $125 million.
• Total catastrophe and weather-related losses projected between $195 million to $205 million.

AXIS Capital Holdings Limited ("AXIS Capital" or the "Company") (NYSE: AXS) today 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. 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 United States.

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.

As previously announced, the Company's results will be discussed during its conference call on Thursday, January 28, 2021 at 9:30 AM (EST).

About AXIS Capital
AXIS Capital, through its operating subsidiaries, is a global provider of specialty lines insurance and treaty reinsurance with shareholders' equity September 30, 2020 of $5.3 billion and locations in Bermuda, the United States, Europe, Singapore and Canada. Its operating subsidiaries have been assigned a rating of "A+" ("Strong") by Standard & Poor's and "A" ("Excellent") by A.M. Best. For more information about AXIS Capital, visit the Company's website at www.axiscapital.com.

Website and Social Media Disclosure
The Company uses its website (www.axiscapital.com) and its corporate Twitter (@AXIS_Capital) and LinkedIn (AXIS Capital) accounts as channels of distribution of Company information. The information posted through these channels may be deemed material. Accordingly, investors should monitor these channels, in addition to following the Company's press releases, SEC filings and public conference calls and webcasts. In addition, e-mail alerts and other information about AXIS Capital may be received when enrolled in the Company's "E-mail Alerts" program, which can be found in the Investor Information section of the Company's website (www.axiscapital.com). The contents of the Company's website and social media channels are not part of this press release.

Please be sure to follow AXIS Capital on LinkedIn.

LinkedIn: http://bit.ly/2kRYbZ5

Risk and Uncertainties
The determination of the net claims estimate for the COVID-19 pandemic is based on the Company's ground-up assessment of coverage from individual contracts and treaties across all lines of business, including a review of modeling analyses and market information, where appropriate. In addition, the Company considers information received from clients, brokers and loss adjusters.

The net claims estimate related to the COVID-19 pandemic is subject to significant uncertainty. This uncertainty is driven by the inherent difficulty in making assumptions around the impact of the COVID-19 pandemic due to the lack of comparable events, the ongoing nature of the event, and its far-reaching impacts on world-wide economies and the health of the population. These assumptions include:

• the nature and the duration of the pandemic;
• the effects on health, the economy and the Company's customers;
• the response of government bodies including legislative, regulatory or judicial actions and social influences that could alter the interpretation of the Company's contracts;
• the coverage provided under the Company's contracts;
• the coverage provided by the Company's ceded reinsurance; and
• the evaluation of the net claim estimate and impact of claim mitigation actions.

The actual net ultimate amount of losses for this event may differ materially from the current net claims estimate.

The Company’s net claim estimate for other catastrophe and weather-related events is based on its ground-up assessment of losses from indi

FAQ

What is AXIS Capital's Q4 net claims estimate?

AXIS Capital's preliminary Q4 net claims estimate is between $195 million to $205 million, pre-tax.

How much is AXIS Capital estimating for COVID-19 claims?

AXIS Capital estimates COVID-19 claims at $125 million, pre-tax, for the fourth quarter.

What are the other catastrophe losses reported by AXIS Capital?

Other reported catastrophe and weather-related losses range from $70 million to $80 million, pre-tax.

When will AXIS Capital discuss its Q4 results?

AXIS Capital will discuss its Q4 results in a conference call on January 28, 2021, at 9:30 AM (EST).

What is the impact of the COVID-19 pandemic on AXIS Capital's claims?

The COVID-19 pandemic significantly affects AXIS Capital's claims, creating uncertainty in loss estimates.