Arch Capital takes big hit from catastrophes as it reveals loss estimate

Arch Capital takes big hit from catastrophes as it reveals loss estimate | Insurance Business

Arch Capital takes big hit from catastrophes as it reveals loss estimate

For the third quarter of 2019, Arch Capital Group has estimated that it will see pre-tax catastrophe losses between US$65 million and US$75 million, net of reinsurance recoveries and reinstatement premiums.

The Bermuda-based company said in its latest release that the catastrophe losses were primarily from Hurricane Dorian and Typhoon Faxai. Arch also mentioned that, currently, there are “significant uncertainties” surrounding the extent of the damage of both disaster events, as well as other global incidents that occurred during the third quarter.

Arch offered a reminder in its release that its estimates are based on currently available information, which is derived from risk modeling, industry exposure assessments, preliminary claims information, and a review of the company’s in-force contracts.

The insurer also noted that the loss estimates exclude the operation of Watford Holdings, for which Arch only owns 11% of the outstanding common equity.