AXIS Capital Holdings Ltd. has provided a preliminary estimate of the total net financial impact from third-quarter catastrophe losses of $578 million, net of tax and estimated recoveries from reinsurance and retrocessional covers and including the impact of estimated reinstatement premiums.
The insurance segment expects to see net losses and loss expenses of $144 million from Hurricane Harvey, $136 million from Hurricane Irma, $25 million from Hurricane Maria and $10 million from earthquakes in Mexico. For the reinsurance segment, net losses and loss expenses are expected to be $96 million from Hurricane Harvey, $92 million from Hurricane Irma, $91 million from Hurricane Maria and $23 million from earthquakes in Mexico.
The results of recently acquired Novae Group plc will be included in AXIS Capital's results as of Oct. 2, and the company estimates Novae's net financial impact from the hurricanes and earthquakes at $60 million, net of estimated recoveries from reinsurance and including the impact of estimated reinstatement premiums. Based on current gross loss estimates, AXIS Capital expects Novae to receive reinsurance recoveries from all events with "significant" aggregate reinsurance cover remaining.
AXIS Capital expects to retain substantially all losses from its insurance segment and expects to receive retrocessional recoveries in its reinsurance segment. Under the terms of the property catastrophe reinsurance treaty mainly applicable to these events, the insurance segment maintains cover in excess of $200 million per event, net of recoveries from applicable property per risk treaty and facultative reinsurance.