The Bermuda-based Arch Capital Group Ltd. announced that, based upon current estimates, it expects net losses, on an after-tax basis, resulting from Hurricanes Charley, Frances, Ivan and Jeanne and Typhoon Songda to impact 2004 third quarter net income by approximately $140 million, or $1.90 per diluted share.
Arch noted, however, that it still “expects to report positive operating income for the 2004 third quarter.”
The company also cautioned that the “estimate relating to these events is based on currently available information derived from modeling techniques, industry assessments of exposure and claims information obtained from the Company’s clients and brokers.”
Arch added that its “actual losses from these events may vary materially from the estimate due to the inherent uncertainties in making such determinations resulting from several factors, including the potential inaccuracies and inadequacies in the data provided by clients and brokers, the modeling techniques and the application of such techniques, as well as the high frequency of recent catastrophic events and the effects of any resultant demand surge on claims activity.”
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