It’s the turn of Arch Capital Group to issue its catastrophe loss estimate for the fourth quarter of 2020.
In a release, the Bermuda-headquartered insurance group acknowledged that its financial results for the period will be “negatively impacted” by events in the fourth quarter, including Hurricanes Delta and Zeta. Updated loss estimates for Q3 catastrophes, meanwhile, have also been factored in.
Based on Arch’s approximation, the company will incur pre-tax catastrophe losses somewhere between US$155 million and US$165 million for the fourth quarter. Net of reinsurance recoveries and reinstatement premiums, the anticipated sum spans the group’s property casualty insurance and reinsurance segments.
Arch noted: “Included in this range of estimates is an update to the company’s ongoing exposure to COVID-19 global pandemic claims, which are essentially unchanged from the estimate previously disclosed by the company in its quarterly report on Form 10-Q for the nine months ended September 30, 2020.”
Meanwhile the group highlighted the uncertain nature of insurance losses.
“At this time, there are significant uncertainties surrounding the ultimate number of claims and scope of damage resulting from these events,” stated Arch.
“The company’s estimates across its insurance and reinsurance segments are based on currently available information derived from modelling techniques, including preliminary claims information obtained from the company’s clients and brokers, a review of relevant in-force contracts, and estimates of reinsurance recoverables.”
Actual losses, the firm conceded, may vary materially from the expected numbers due to several factors.
