Argo Group Updates NZ Quake Loss Estimate to $12 Million

The Bermuda-based Argo Group International Holdings announced that it “expects to report in its 2010 fourth quarter financial results approximately $12 million of additional estimated pre-tax loss provisions, net of reinsurance and reinstatement premium, related to new and updated information reported from insureds and cedents on the earthquake that struck New Zealand in September 2010.”

The Company reported an initial loss estimate for the earthquake of $11.3 million in its 2010 third quarter earnings release.

Argo said that in “reaching this estimate, the Company has relied on information currently available from portfolio modeling and assessments of the exposures insured under individual policies and industry loss estimates. Due to the preliminary nature of the information used to determine this estimate, the ultimate cost to the Company from this event may differ materially from the foregoing estimates.

Source: Argo Group