Arch Capital Group Estimates Q3 Natural Catastrophe Losses of $190M-$210M

Arch Capital Group Ltd. estimates its pretax third quarter natural catastrophe losses could range from $190 million to $210 million.

These catastrophe events include Hurricanes Isaias, Laura, and Sally, as well as the derecho windstorm in the U.S. Midwest, California wildfires and other minor global events.

Included in these estimates is a range of estimates of $10 million to $15 million for ongoing exposure to COVID-19 global pandemic claims. The estimates specific to the global pandemic are in addition to the $260 million estimate previously disclosed by the company for the six months ended June 30, 2020.

The ranges of estimates above are for the company’s insurance and reinsurance segments and are net of reinsurance recoveries and reinstatement premiums.

The company will report on the mortgage segment results when it releases 2020 third quarter results, which is currently scheduled for Oct. 29 after markets close.

At this time, there are significant uncertainties surrounding the ultimate number of claims and scope of damage resulting from these events, said Arch. These estimates include losses only related to claims incurred as of Sept. 30, 2020.

Source: Arch Capital Group Ltd.

Photograph: In this Aug. 27, 2020 file photo, buildings and homes are flooded in the aftermath of Hurricane Laura near Lake Charles, La. Photo credit: AP Photo/David J. Phillip, File.