Argo estimates $32m of catastrophe losses
Argo Group has estimated preliminary pre-tax catastrophe losses of $32 million for the fourth quarter.
The losses are primarily related to Hurricane Michael and the California wildfires. Additionally, the Bermudian-based company’s fourth-quarter results will be impacted by higher than expected current accident year losses of approximately $12 million, including a number of discrete marine and energy claims.
Argo announced the estimates in a statement, and said the catastrophe losses include claims costs net of ceded reinsurance recoverables and reinstatement premiums, and include losses related to certain aggregate excess of loss contracts.
Mark Watson, chief executive officer, said: “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.”