Argo braces for $71m hit from nat cats and COVID-19 in Q3 results

Bermuda-based Argo Group International Holdings has warned that its third quarter 2020 results will be adversely affected by approximately $71 million losses related to various natural catastrophe events and the continued impact of the COVID-19 pandemic.

The re/insurer expects to report natural catastrophe losses of approximately $54 million for Q3 2020.

The expected losses are primarily related to Hurricanes Hanna, Laura and Sally, and to US wildfires and Midwest derecho. The losses will be split roughly evenly between US and international operations, Argo said.

Argo also expects to report net losses of approximately $17 million due to the ongoing COVID-19 pandemic, primarily related to contingency exposures in Argo’s international operations.

The company’s loss estimates are pre-tax and net of reinsurance recoveries.