Hurricanes Harvey, Irma and Maria – along with Mexican earthquakes and other more minor cat events globally – are expected to incur after-tax costs of $285 million to $345 million for Bermuda-based re/insurance provider Arch Capital Group in the third quarter of 2017.
Furthermore, due to the mix of estimated cat losses by jurisdiction, Arch anticipates the tax rate applicable to these catastrophic losses to be lower than its effective annual tax rate on pre-tax operating income.
The company determined a range for total industry insured losses across all 2017 third quarter events of $80 billion to $100 billion.
Arch has warned that actual losses may increase if the company’s reinsurers fail to meet their obligations to the company or the reinsurance protections purchased by the company are exhausted or are otherwise unavailable.
Arch Capital, Catastrophe losses, Hurricane, North America, Bermuda