Argo pegs Q4 2018 cat loss at $32m
Bermuda specialty re/insurer Argo Group International Holdings has estimated preliminary pre-tax losses of $32 million related to 2018 fourth quarter catastrophic events, primarily driven by hurricane Michael and the California wildfires.
The company's fourth quarter 2018 results will also be impacted by higher than expected current accident year losses of approximately $12 million, including a number of discrete marine and energy claims.
Catastrophe loss estimates include claims costs net of ceded reinsurance recoverables and reinstatement premiums, and include losses related to certain aggregate excess of loss contracts.
“Our estimate for catastrophe losses in the fourth quarter of 2018 again reflects the restructuring of our reinsurance programme at the beginning of the year to reduce earnings volatility by incorporating a single retention for the combined reinsurance portfolios of Argo and the acquired Ariel Re, and also strategically increases our use of third-party capital,” said CEO Mark Watson III.
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