Arch expects $165m cat hit across P&C reinsurance segments

Arch Capital Group has estimated pre-tax catastrophe losses of $155 million to $165 million across its property & casualty insurance and reinsurance segments in the fourth quarter of 2020, net of reinsurance recoveries and reinstatement premiums.

The re/insurer reported that its 2020 fourth quarter results were negatively impacted by a set of catastrophe events, including Hurricanes Delta and Zeta and other minor global events, as well as updated loss estimates for catastrophes that occurred during the third quarter.

The company's range of estimates for exposure to COVID-19 pandemic claims through Dec. 31, 2020 are essentially unchanged from the prior quarter estimates, it said.

Arch noted that there are significant uncertainties surrounding the ultimate number of claims and scope of damage resulting from these events. Hence, the actual losses may vary materially from the estimates due to several factors, including the inherent uncertainties in making such determinations.

The loss estimates exclude the operations of Watford Holdings.

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