Argo estimates $25m in catastrophe losses
Argo Group International Holdings expects pre-tax catastrophe losses of approximately $25 million for the third quarter of this year.
Hurricane Florence, Typhoon Jebi and other catastrophe and weather-related events during the three-month period are the sources of the losses for the Bermudian-based insurer and reinsurer.
The loss estimates include claims costs net of ceded reinsurance recoverables and reinstatement premiums, and include losses related to certain aggregate excess of loss contracts.
Mark Watson, the company’s chief executive officer, said: “As we indicated following the catastrophe loss events in 2017, we restructured our reinsurance programme for 2018 to incorporate a single retention that combined the reinsurance portfolios for Argo and the acquired Ariel Re, and we strategically increased our use of third-party capital. Our loss results for the third quarter of 2018 reflect these actions.”
Argo warned that the estimates were preliminary and the actual net impact may end up being materially different.