AXIS Capital Comments on Impact of Hurricane Katrina.PEMBROKE, Bermuda -- AXIS Capital Holdings Limited ("AXIS Capital") (NYSE NYSE See: New York Stock Exchange :AXS AXS Access AXS Anomalous X-Ray Scattering AXS Alpha Chi Sigma AXS Alpha X-Ray Spectrometer AXS Activex Script ) today announced that net losses related to Hurricane Katrina  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. are estimated to be within its current expectations of
consolidated operating income Operating IncomeThe profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the 2005 calendar year, assuming no other large loss events during the year. Katrina losses are expected to arise in both our insurance and reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. segments. Our net loss estimates are derived from a combination of the output of industry models, a review of in-force contracts and preliminary indications from clients. Our actual losses from Hurricane Katrina may ultimately differ materially from our estimated losses. John Charman, AXIS Capital's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and President commented, "Hurricane Katrina has resulted in a desperate human tragedy. We recognize the scale of the devastation to the community and businesses in the affected areas and are working diligently to provide consistency and good service to our clients." "We believe that Hurricane Katrina will present unprecedented losses to the insurance and reinsurance industry. By design, we have built a diverse portfolio of severity-exposed specialty business since our inception. Therefore, we would expect to have a material loss following an event of this magnitude. We have been prudent in managing our exposure relative to our total capital base and believe that our estimated earnings for 2005 will absorb our estimated net losses. We are well-positioned to participate actively in the market and to continue to provide consistency, service and security to our clients following this event." AXIS Capital is a Bermuda-based global provider of specialty lines insurance and treaty reinsurance with shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. at June 30, 2005 in excess of $3.1 billion and locations in Bermuda, the United States, Europe and Singapore. Its operating subsidiaries have been assigned a rating of "A" ("Excellent") by A.M. Best and a rating of "A" ("Strong") by Standard & Poor's. AXIS Capital has been assigned a senior unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. rating of Baa1 (stable) by Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. and BBB BBB A medium grade assigned to a debt obligation by a rating agency to indicate an adequate ability to pay interest and repay principal. However, adverse developments are more likely to impair this ability than would be the case for bonds rated A and above. + (stable) by Standard & Poor's. For more information about AXIS Capital, visit our website at www.axiscapital.com. Cautionary Note Regarding Forward-Looking Statements Statements regarding the impact of Hurricane Katrina contained in this release are forward-looking statements within the meaning of the U.S. federal securities laws. These statements involve risks, uncertainties and assumptions. Actual events or results may differ materially from our expectations. Important factors that could cause actual events or results to be materially different from our expectations include our losses relating to Hurricane Katrina exceeding current estimates, complex coverage and regulatory issues such as whether such losses result from storm surge or flood and the impact of such losses on our reinsurers. Additional factors that could cause actual events or results to be materially different from our expectations include (1) our limited operating history, (2) the occurrence of natural and man-made disasters, (3) actual claims exceeding our loss reserves, (4), failure of any of the loss limitation methods we employ, (5) effects of emerging claims and coverage issues, (6) the failure of our cedants to adequately evaluate risks, (7) the loss of one or more key executives, (8) a decline in our ratings with rating agencies, (9) loss of business provided to us by our major brokers, (10) changes in governmental regulations, (11) increased competition and (12) general economic conditions. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. |
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