18 January 2019News

Argo estimates $44m loss impact in Q4

Bermuda-based specialty re/insurer Argo Group has made a  preliminary pre-tax catastrophe loss estimate for the three-month period ended December 31, 2018 of $32 million, primarily relating to Hurricane Michael and the California wildfires.

Furthermore, higher than expected current accident year losses of approximately $12 million as expected to impact the fourth quarter results, which includes a number of discrete marine and energy claims.

The cat loss estimates include claims costs net of ceded reinsurance recoverables and reinstatement premiums, and include losses related to certain aggregate excess of loss contracts.

“Our estimate for catastrophe losses in the fourth quarter of 2018 again reflects the restructuring of our reinsurance programme at the beginning of the year to reduce earnings volatility by incorporating a single retention for the combined reinsurance portfolios of Argo and the acquired Ariel Re, and also strategically increases our use of third-party capital," said Argo Group CEO Mark Watson III.