Argo Group International Holdings has announced its preliminary pre-tax catastrophe loss estimate for the fourth quarter of 2018.
The underwriter has estimated a pre-tax catastrophe loss of $32 million for the three-month period ended December 31, 2018. In a release, Argo Group said that Hurricane Michael and the series of wildfires that occurred in California during that period were largely responsible for driving the losses.
In addition to the catastrophe losses, Argo Group is projecting its fourth quarter results to be impacted by higher than expected current accident year losses of about $12 million. This includes a number of discrete marine and energy claims, the company added.
The group believes the reorganisation of its reinsurance program in early 2018 has helped it project a more stable image to investors, despite the losses.
“Our estimate for catastrophe losses in the fourth quarter of 2018 again reflects the restructuring of our reinsurance program 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,” commented Argo Group CEO Mark E. Watson.