AXS Pre-Announcement "Worse Than Expected," Morgan Stanley Reports

AXS Pre-Announcement “Worse Than Expected,” Morgan Stanley Reports

Axis Capital Holdings (NYSE: AXS) has pre-announced worse than expected 1Q11 catastrophes, Morgan Stanley reports.

“Australian flood damages of $90-100m were higher than our $50m, New Zealand quake losses of $185-215m exceeded our $179m and initial Japan loss guidance moves our $200m estimate to $284m (~1.1% share of $12-35b industry loss estimate plus $25m insurance segment losses),” Morgan Stanley writes. “The net effect raises our cat budget from $429m to $580m which puts 1Q11 on track to be the 2nd worst result in AXS history (3Q05 Katrina loss was worse).”

Axis Capital closed Monday at $33.34.