Arch Capital Group will report third quarter 2019 pre-tax catastrophe losses of approximately $65 million to $75 million, the re/insurer has predicted, net of reinsurance recoveries and reinstatement premiums.
The expected losses were driven primarily by Hurricane Dorian and Typhoon Faxai, Arch said.
It is still not possible to calculate the losses accurately due to significant uncertainties surrounding the scope of damage for these events, and other global events, the re/insurer said. Actual losses may therefore vary materially from the estimates due to the inherent uncertainties in making such determinations.
Arch’s calculations were based on the information that is currently available, including industry assessment of exposure, preliminary claims information obtained from clients and brokers, a review of in-force contracts, and models.
The loss estimates exclude the operations of Watford Holdings, the results of which are consolidated into its own financial statements, pursuant to GAAP, despite only owning approximately 11 percent of its outstanding common equity.
Arch Capital, Hurricane Dorian, Typhoon Faxai