AXIS Capital Holdings Ltd. is expecting to post "modest" operating income for the fourth quarter of 2019.
The company said earnings were affected by a fourth-quarter loss for catastrophes and other weather-related events of $140 million pretax, net of estimated reinsurance recoveries and reinstatement premiums. The amount included a loss of $93 million pretax for Japanese Typhoon Hagibis, primarily attributable to the company's reinsurance segment and consistent with the previously disclosed range, as well as other weather-related events.
Axis Capital's results also include an underwriting loss for its reinsurance agriculture business of approximately $29 million pretax, primarily related to poor weather conditions that affected the U.S. and India books of business. In addition, the results include net favorable prior-year reserve development of $14 million, primarily attributable to motor, credit, surety and political risk, partially offset by loss development attributable to Hurricane Irma, consistent with industry trends.