Axis Capital has announced an estimated net claims provision of $300m (£239m) for the first quarter of the year, in payouts related to “catastrophe and other weather-related events”.
This includes an estimated pre-tax net claims provision of $235m (£188m) for the coronavirus pandemic.
The group’s estimated net claims provision for the pandemic is “largely attributable” to property related coverages, but also includes event cancellation and accident and health coverages.
Other-weather related events of $65m (£52m) includes regional weather events in the United States, U.K. floods and Australia wildfires.
The group now expects to report a full limit loss of $10m (£8m) associated with the WHO pandemic swap.
The group also expects a net investment income of $93m (£74m) for the first quarter, down from $107m (£85.5m) the year prior. This is “primarily attributable” to lower hedge fund returns.
Albert Benchimol, president and CEO of Axis Capital, said: “Covid-19 has disrupted both society and the (re)insurance marketplace on a global scale. We have experienced its impact in our homes and in the communities where we live and work.
“While COVID-19 continues to create unprecedented challenges and uncertainty for all carriers, we believe Axis is well-positioned to manage through the pandemic. We entered 2020 with strong capital adequacy, a high-quality investment portfolio, and a well-balanced book of business. Our portfolio optimization actions are delivering tangible results.”
He added: “Our focus continues to be on providing our clients and partners in distribution with the same high level of service that they have come to expect from us.
“Axis transitioned seamlessly to a remote work model and we are deeply appreciative to our staff for their tremendous resilience and commitment to advancing our business, as we navigate a rapidly evolving environment.”