AXIS Capital Comments on First Quarter 2020 Financial Results

AXIS Capital Holdings Limited ("AXIS Capital" or the "Company") (NYSE: AXS) today announced an estimated net claims provision of $300 million, pre-tax, for the first quarter related to catastrophe and other weather-related events. This amount includes an estimated net claims provision of $235 million, pre-tax, for the COVID-19 pandemic.

The Company's estimated net claims provision for COVID-19 is largely attributable to property related coverages, but also includes event cancellation and accident & health coverages, and considers a global shelter in place order that remains in effect until July 31, 2020. Other-weather related events of $65 million, pre-tax, includes regional weather events in the United States, U.K. floods and Australia wildfires.

AXIS Capital notes continuous improvement in its current accident year loss ratios excluding catastrophe and weather-related losses for its insurance and reinsurance businesses for the quarter.

Separately, the Company expects to report a full limit loss of $10 million associated with the WHO pandemic swap. The loss is recorded in other insurance related income (loss).

In addition, the Company expects to report net investment income of $93 million for the quarter, reduced from $107 million in the first quarter of 2019, primarily attributable to lower hedge fund returns. The Company also expects to report net unrealized losses of $61 million ($55 million excluding foreign exchange movements) attributable to its equity securities portfolio and net unrealized losses of $275 million ($224 million excluding foreign exchange movements) attributable to its fixed maturities portfolio, due to the significant decline in equity and credit markets at March 31, 2020.

Albert Benchimol, President and CEO of AXIS Capital commented

"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. Our foremost concerns are with the health and safety of our staff, and the well-being of all those directly affected by the virus. We also extend our deepest gratitude to the heroes who are on the front lines fighting the pandemic, including our healthcare workers and first responders.