Arch Announces Catastrophe Loss Estimates
Arch Capital Group Ltd. announced it expects to report third quarter 2019 pre-tax catastrophe losses of approximately $65 million to $75 million, net of reinsurance recoveries and reinstatement premiums.
“These losses are primarily from Hurricane Dorian and Typhoon Faxai. At this time, there are significant uncertainties surrounding the scope of damage for these events, as well as the other global events,” the company said.
“The Company’s estimate for these events is based on currently available information derived from modeling techniques, industry assessment of exposure, preliminary claims information obtained from the Company’s clients and brokers to date and a review of in-force contracts.
“Actual losses from these events may vary materially from the estimates due to the inherent uncertainties in making such determinations. The loss estimates exclude the operations of Watford Holdings Ltd. Pursuant to GAAP, the Company consolidates the results of Watford in its financial statements, although it only owns approximately 11% of Watford’s outstanding common equity.”
