Business

Axis expects Q4 claims to hit up to £149m

The group net claims estimate includes $125m (£91m) for the Covid-19 pandemic, which was determined following an extensive review of potential exposures to the pandemic on all lines of business

Axis has announced that it expects its preliminary fourth quarter pre-tax net claims to range between $195m (£142m) and $205m (£149m) for both catastrophes and weather-related events.

Ahead of the company’s official trading update, which will be discussed on 28 January 2021, the group estimate includes $125m (£91m) in net claims for the Covid-19 pandemic, which was determined following an extensive review of potential exposures to the pandemic on all lines of business.

In line with the latest net claims estimate, the company also considered new information provided by clients, global shelter-in-place orders that came into effect in the fourth quarter and the outcome of recent court judgments, including the UK Supreme Court ruling.

This amount estimated is in addition to the estimate of $235m (£171m) recognised in the first quarter.

The group also noted its claims reserves provide for ultimate Covid-19 related losses across all lines of business incurred at December 31, 2020.

In addition, Axis noted ongoing improvements in its current accident year loss ratios excluding catastrophe and weather-related losses consistent with progress observed earlier in 2020.

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