Bermuda-based insurer and reinsurer, Arch Capital Group Ltd., has announced a pre-tax catastrophe loss range of between $180 million to $190 million for the first-quarter of 2021, of which roughly 80% falls to its reinsurance segment.
The up to $190 million loss range is almost entirely from natural catastrophe events that happened in Q1 2021, and primarily relates to the impacts of winter storms Uri and Viola in the U.S. in February, as well as other minor global events.
Additionally, Arch notes that these estimates also include an immaterial amount for ongoing exposure to COVID-19 pandemic claims in the current accident quarter.
Arch’s estimated cat loss range for Q1, which for Uri and Viola are based on a range of industry insured losses of between $14 billion to $16 billion, is net of reinsurance recoveries and reinstatement premiums, and falls within the company’s property / casualty (P/C) operations.
Furthermore, the large majority, or 80% of the losses impact the firm’s reinsurance operation, while the remaining 20% will impact the performance of its insurance business during the first-quarter of the year.
“At this time, there are significant uncertainties surrounding the ultimate number of claims and scope of damage resulting from these events,” notes Arch.
Adding: “These estimates include losses only related to claims incurred as of March 31, 2021. Actual losses from these events may vary materially from the estimates due to several factors, including the inherent uncertainties in making such determinations.”
This announcement from Arch follows The Hanover’s Q1 cat bill note earlier today, and comes after estimates from other global carriers such as Allstate, Fairfax, RenRe, and AXIS.
