Arch Capital estimates catastrophes will cost around $160m in Q4 2020
Arch Capital Group has warned that catastrophe events like Hurricanes Delta and Zeta that occurred during Q4 2020 will have negatively impacted its results for that quarter.
The re/insurer estimated that pretax catastrophe losses would come in within a range of $155 million to $165 million for Q4 2020, across its property casualty insurance and reinsurance segments, net of reinsurance recoveries and reinstatement premiums.
This includes its updated estimate for exposure to COVID-19 global pandemic claims, which are essentially unchanged from earlier estimates. Arch admitted there are significant uncertainties surrounding the ultimate number of claims and scope of damage resulting from these events.
The figure also includes updated loss estimates for catastrophes that occurred during Q3 2020.
The estimate is based on currently available information derived from modeling techniques, including preliminary claims information obtained from Arch’s clients and brokers, a review of relevant in-force contracts, and estimates of reinsurance recoverables.