Argo Estimates Losses from Q4 Natural Catastrophes, Other Claims to Hit $44M
Argo Group International Holdings, Ltd., the Bermuda-based re/insurer, announced a preliminary pre-tax catastrophe loss estimate of $32 million for the fourth quarter of 2018, primarily related to Hurricane Michael and the California wildfires.
Additionally, the company’s fourth quarter 2018 results will be affected by higher than expected current accident year losses of approximately $12 million, including a number of marine and energy claims.
Catastrophe loss estimates include claims costs net of ceded reinsurance recoverables and reinstatement premiums, and include losses related to certain aggregate excess of loss contracts.
“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 CEO Mark E. Watson III.
Argo Group’s preliminary estimates of catastrophe losses are based on claims received to date, policy-level reviews, discussions with distribution partners, the company’s internal and external modeling resources, and publicly available industry loss estimates.
Source: Argo Group