Arch Capital Group could make pre-tax losses across its property casualty insurance and reinsurance segments of $85 million to $95 million, due to claims incurred related to the COVID-19 pandemic, as of March 31, 2020.
The prediction is net of reinsurance recoveries and reinstatement premiums and excludes the impact of the pandemic on the operating results of Watford Holdings.
Arch has also established a range of pre-tax net losses from $40 million to $50 million for its entire mortgage segment, largely resulting from loss reserve selections being set at the higher end of its range of indications.
Arch said: “There are significant uncertainties surrounding the ultimate number of claims and scope of damage resulting from this pandemic.” The current estimate is based on the information currently available, it said, and is based on proprietary modeling.
Arch Capital, COVID-19