Arch Announces Catastrophe Loss Estimates
Bermuda-based Arch Capital Group Ltd. has established a range of pretax catastrophe losses of $155 million to $165 million in the 2020 fourth quarter.
The company said, “Arch Capital Group Ltd. reports that its 2020 fourth quarter results will be negatively impacted by a set of catastrophe events that occurred during the 2020 fourth quarter, including Hurricanes Delta and Zeta and other minor global events, as well as updated loss estimates for catastrophes that occurred during the 2020 third quarter.
“As a result, the Company has established a range of pretax catastrophe losses of $155 million to $165 million in the 2020 fourth quarter across its property casualty insurance and reinsurance segments, net of reinsurance recoveries and reinstatement premiums.
“Included in this range of estimates is an update to the Company’s ongoing exposure to COVID-19 global pandemic claims which are essentially unchanged from the estimate previously disclosed by the Company in its Quarterly Report on Form 10-Q for the nine months ended Sept. 30, 2020.
“At this time, there are significant uncertainties surrounding the ultimate number of claims and scope of damage resulting from these events. The Company’s estimates across its insurance and reinsurance segments are based on currently available information derived from modeling techniques, including preliminary claims information obtained from the Company’s clients and brokers, a review of relevant in-force contracts, and estimates of reinsurance recoverables.
“These estimates include losses only related to claims incurred as of Dec. 31, 2020. Actual losses from these events may vary materially from the estimates due to several factors, including the inherent uncertainties in making such determinations. The loss estimates exclude the operations of Watford Holdings Ltd. [Watford]. Pursuant to GAAP, the Company consolidates the results of Watford in its financial statements, although it only owns approximately 13% of Watford’s outstanding common equity.”
