Bermuda domiciled insurer and reinsurer, Arch Capital Group Ltd., has announced estimated pre-tax catastrophe losses of between $155 million and $165 million for the fourth-quarter of 2020.
Arch explains that the losses are across its property / casualty insurance and reinsurance operations, net of reinsurance and reinstatement premiums.
The loss estimate range is for natural catastrophe events that occurred in the fourth-quarter of 2020, including Hurricanes Delta and Zeta and other minor global events, alongside some revisions to estimates for events that took place in the third-quarter.
Included within the up to $165 million loss estimate is an update on the re/insurer’s ongoing exposure to the COVID-19 pandemic, “which are essentially unchanged from the estimate previously disclosed by the Company in its Quarterly Report on Form 10-Q for the nine months ended Sept. 30, 2020,” explains Arch.
In Q3, Arch incurred catastrophe losses of $203.3 million across its insurance and reinsurance segments, which included $11.9 million of losses related to the COVID-19 pandemic.
“At this time, 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 modeling 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,” notes Arch.