Arch Capital Sees Wilma Losses in the Range of $40-$60 Million

Bermuda-based Arch Capital Group Ltd. announced that it expects after-tax earnings for the 2005 fourth quarter to be negatively impacted by the effects of Hurricane Wilma in the range of $40 million to $60 million based on industry insured losses of $8 to $12 billion.

These preliminary estimates are net of reinsurance and reinstatement premiums. The losses from the storm are currently expected to arise 56% in the company’s insurance operations and 44% in its reinsurance operations if the industry loss is at the lower end of the range and move to a 48/52 split, insurance and reinsurance, if the industry loss is at the upper end of the range.

Topics Profit Loss