Argo Group International Holdings, Ltd. has announced a preliminary pre-tax catastrophe loss estimate of between $34 million and $38 million for the fourth-quarter of 2017, driven primarily by the California wildfires.
The $34 million to $38 million range is net of ceded reinsurance recoverables, reinstatement premiums and expected profit commissions, and is driven mainly by the California wildfires and other aggregate excess of loss contracts that were impacted by a number of 2017 weather-related and catastrophe events.
The California wildfires were the main, global catastrophe loss event of the fourth-quarter, with estimates suggesting a re/insurance industry loss of up to $12.5 billion, across the entire state and the most recent loss estimate from RMS being for up to $2.5 billion just from the Thomas wildfire.
Argo notes that its catastrophe loss estimates are based on claims received to date, available industry loss estimates and discussions with distribution partners.
