Argo Group: Loss Estimate $25 to $35 million

Bermuda based Argo Group International Holdings Ltd announced today [Mar 22] it expects its initial loss estimate from first quarter 2010 catastrophe events that have occurred to date will be $25 million to $35 million, net of reinstatement premium and tax benefits.

Like most the other Bermuda based reinsurers, Argo’s initial loss estimate includes losses from the earthquakes in Chile and Haiti, Windstorm Xynthia in Europe and winter storms in the United States, with the majority of the Company’s losses from the earthquake in Chile.

The losses are attributed primarily to the Company’s International Specialty and Reinsurance segments. Due to the preliminary nature of the information used to determine this estimate, the ultimate cost that the Company will incur may differ.

2010 Earthquake/Storm Estimates Given by Bermuda Based Reinsurers to date exceed a billion:

• Everest Re Group Ltd said it expects losses of approximately $225 million related to the Chilean earthquake.
• PartnerRe expect to receive claims of $220-$320 million after the severe damage caused by earthquake in Chile
• Platinum announced an initial loss estimate of $85 million from first quarter 2010 catastrophe events.
• Validus provided an initial estimate of losses from the earthquake and windstorm of $170 to $270 million.
• Flagstone said its estimated losses from claims related to the recent earthquake in Chile will be $50 million
• Max Capital projects claims of $10 – $20 million
• Axis expects claims of $60 – $120 million from the quake, and $10 – $20 million from storm
• Montpelier Re expects losses of $75 – $100 million from the earthquake
• Hiscox Ltd estimate a combined net loss of approximately $151 million
• XL Capital said estimated first quarter claims could top $200 million
• Ace Limited expect a loss of $125 million, $75 million from Chile alone
• Allied World expect a loss of $55 to $75 million dollars
• RenaissanceRe said the impact on its financial results “will be significant and could be material”.

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