Arch reveals up to $165m of Q4 P&C re/insurance cat losses


Arch Capital, the Bermuda headquartered specialty insurance and reinsurance group, has pre-announced an expectation of reporting up to $165 million of catastrophe losses from the fourth-quarter of 2020.

arch-capital-logoThe company has estimated that on a pre-tax basis and net of any recoveries from its reinsurance or retrocession and reinstatement premiums, its severe weather and natural catastrophe losses from Q4 2020 will be between $155 million and $165 million.

Arch Capital said that the catastrophe losses come from across its property casualty insurance and reinsurance segments, while the figure also includes some revisions to estimates for natural catastrophe losses from the third quarter as well.

The main drivers of Q4’s catastrophe losses for Arch where Hurricanes Delta and Zeta, as well as other minor global cat events, the company said.

There is an update to COVID-19 pandemic losses included, Arch said, but the company explained that its global pandemic claims “are essentially unchanged”.

Loss estimates include any impacts to Arch’s third-party capitalised and total-return focused Watford Holdings, while there is also the potential for some losses to fall to any other third-party capital arrangements the company may have, we would imagine.

Arch Capital warned of “significant uncertainties surrounding the ultimate number of claims and scope of damage resulting from these events.”

Arch’s catastrophe loss estimate for Q4 is significantly higher than fellow Bermudian company AXIS Capital, which pre-announced up to $80 million of catastrophe losses from the period.

Print Friendly, PDF & Email
Source link