Speciality re/insurer Argo Group has warned that its third quarter results will be impacted by approximately $54 million of catastrophe losses, in addition to $17 million of losses due to COVID-19.
Catastrophe losses will be primarily related to Hurricanes Hanna, Laura and Sally, as well as the US wildfires and Midwest derecho.
The impact of these events is thought to be split roughly evenly between Argo’s US and International Operations.
The pandemic losses, meanwhile, are mostly related to contingency exposures in Argo’s International Operations.
Argo specified that its loss estimates are pre-tax and net of reinsurance recoveries.
Back in Q1, Argo reported a net loss of $18.8 million, having suffered $26.2 million of claims related to the effects of Covid-19.
This loss narrowed to $6.4 million in Q2 as underwriting improved but investment income remained under strain due to the pandemic.
Argo also had to contend with a $900,000 fine from Securities and Exchange Commission (SEC) in June for failing to disclose personal benefits paid to former CEO and President Mark E. Watson III.