Flooding and hurricane costs among cat losses for Arch
Arch Capital Group Ltd has estimated pre-tax net catastrophe losses of $330 million to $345 million across the company’s property casualty insurance and reinsurance segments in the third quarter of this year.
The Bermuda-based specialty re/insurer said that the range of estimates includes losses from Hurricane Ida, the July flooding events in Central Europe, as well as from other minor global events.
The loss estimates are net of reinsurance recoveries and reinstatement premiums.
Arch said that the company’s estimates are commensurate with estimated insured losses across the global property/casualty insurance industry in excess of $45 billion this quarter, comprised of industry estimates of approximately $30 billion for Hurricane Ida, $12 billion for the European floods and more than $5 billion for other global events.
Approximately two thirds of the company’s losses relate to its reinsurance segment.
Arch said that there are significant uncertainties surrounding the ultimate number of claims and scope of damage resulting from these events.
The company’s estimates across its insurance and reinsurance segments are based on currently available information derived from modelling techniques, including preliminary claims information obtained from the company’s clients and brokers, a review of relevant in-force contracts and estimates of reinsurance recoverables.
It added that these estimates include losses only related to claims incurred as of September 30. Actual losses from these events may vary materially from the estimates because of several factors, Arch said, including the inherent uncertainties in making such determinations.
Separately, the company announced that its board of directors has increased its share repurchase programme to an aggregate of up to $1.5 billion, which may be effected from time to time in open market or privately negotiated transactions through December 31, 2022.
Arch said that the timing and amount of the repurchase transactions under this programme will depend on a variety of factors, including market conditions and corporate and regulatory considerations.
This new programme will replace the company's existing share repurchase authorisation, which has been fully utilised, Arch said.