AXIS Capital Holdings Limited ( AXS Quick Quote AXS - Free Report) estimates first-quarter 2021 catastrophe loss of $105-$115 million pre-tax or $95-$105 million post-tax. The pre-tax net loss estimate includes $80 million to $90 million stemming from Winter Storms Uri and Viola, principally in Texas. The company noted industry losses from the event in the range of $13 billion to $14 billion. Per reports in Reinsurance News, catastrophe risk modeller AIR Worldwide estimates industry loss of more than $10 billion from Winter Storms Uri and Viola. The Zacks Consensus Estimate for AXIS Capital’s first-quarter earnings is currently pegged at 81 cents, indicating an improvement of 141.8% from the year-ago reported figure. We expect estimates to move south once analysts start incorporating loss estimates into their numbers. Being a property and casualty insurer, this Zacks Rank #3 (Hold) insurer has substantial exposure to losses from natural disasters, man-made catastrophes and other catastrophic events, which have been inducing volatility in its underwriting results. In 2020, catastrophe and weather-related losses, net of reinstatement premiums, amounted to $774 million primarily due to the COVID-19 pandemic and Hurricanes Laura, Sally, Zeta and Delta, the Midwest derecho, wildfires across the West Coast of the United States, and other weather-related events. Underwriting loss was $325.5 million against the year-ago profit of $28.5 million resulting in 700 bps deterioration in combined ratio. Nonetheless, AXIS Capital noted sustained improvements in its current accident year loss ratios excluding catastrophe and weather-related losses in its Insurance and Reinsurance segments, in-line with the progress made last year. Shares of AXIS Capital have rallied 33.6% year-to-date, outperforming the industry’s increase of 32.2%. Last week, State Auto Financial Corporation ( STFC Quick Quote STFC - Free Report) estimated catastrophe losses in the range of $80 million to $82 million for the first quarter of 2021. Of this, $66 million is attributable to Winter Storms Uri and Viola. Stocks to Consider
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