Arch warns on $38m property fac reinsurance hit
Bermuda-based Arch Capital Group said June 6 that it expects its 2017 second quarter pre-tax underwriting income to be adversely impacted by approximately $38 million relative to the quarterly run rate level of profitability associated with its property facultative reinsurance operations.
Such activity related to losses incurred on a small number of contracts across multiple underwriting years and represents an unusually high level of activity for the property facultative reinsurance unit, the company said in an SEC filing.
Since its inception in 2007, the property facultative reinsurance unit has consistently produced significant underwriting profits for the company, according to the statement.
Arch Capital provides insurance, reinsurance and mortgage insurance on a worldwide basis through its wholly owned subsidiaries.
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