Argo Q3 Losses: $35/40M
Argo Group International Holdings, Ltd. announced today [Oct.24] that it expects to report in the third quarter its estimate for catastrophe losses and other severe weather activity, net of reinsurance and reinstatement premiums, of approximately $35 million to $40 million.
This estimate includes approximately $20 million of losses related to Hurricane Irene and the Danish floods and approximately $10 million of loss from aggregate reinsurance covers relating to exposures in the Midwestern United States. The balance of the aforementioned estimate reflects an increase in loss estimates on other 2011 first half catastrophe events.
In reaching these estimates, the Company has relied on information currently available from portfolio modeling and assessments of the exposures insured under individual policies and industry loss estimates.
Due to the preliminary nature of the information used to determine these estimates, the ultimate cost to the Company from these events may differ materially from the foregoing estimates.
The Company also completed its annual asbestos and environmental reserve review in the third quarter and as a result expects to increase its asbestos and environmental reserves by approximately $10 million on a pre-tax basis.
The review entails a detailed analysis of our direct and assumed exposure and reflects management’s best estimate of the Company’s ultimate exposure.
