Specialty insurance and reinsurance underwriting firm Argo Group International Holdings, Ltd. has estimated its fourth-quarter 2016 pre-tax catastrophe losses at $20 million to $25 million.
The preliminary estimate, released before the fourth-quarter results season begins in the coming weeks, is pre-tax and net of reinsurance and reinstatement premiums.
Argo Group explained that the Q4 2016 catastrophe loss impact is predominantly due to to Hurricane Matthew and other events such as the New Zealand earthquake. The estimate also includes late reported losses from prior quarter catastrophes events, the re/insurer said.
The total is based on claims information received to date, policy reviews, data from partners and Argo’s internal catastrophe risk modelling resources, so subject to change.
Losses from the New Zealand earthquake are likely the longest tail event, where deterioration of estimates is likely. Hurricane Matthew meanwhile is probably a fairly static estimate at this stage and some other insurers and reinsurers are expected to reduce their initial loss estimates from the hurricane.
Being net of reinsurance suggests that Argo has been able to claim on certain reinsurance or retrocessional contracts, to lessen the fourth quarter catastrophe load.