Argo Group International Holdings Ltd. and Aspen Insurance Holdings Ltd. have issued their third quarter catastrophe loss estimates, primarily related to Hurricanes Harvey, Irma and Maria as well as the earthquakes in Mexico City.
Argo, the Bermuda-based specialty insurance and reinsurance underwriter, said its preliminary pre-tax catastrophe loss estimate for the three-month period ended Sept. 30, 2017 was $85 million-$110 million, net of ceded reinsurance recoverables, reinstatement premiums and expected profit commissions.
“We are well positioned to meet the needs of our clients and provide coverage and security to help them rebuild following these tragic natural disasters,” said Chief Executive Officer Mark E. Watson III. “Our strong balance sheet, together with our underwriting expertise and global platforms give us the ability to react to the most attractive market opportunities as the price of insurance rises in reaction to these events.”
The net losses include approximately $35 million-$45 million related to Ariel Re, which was not acquired until the end of the first quarter, Argo said.
In addition to catastrophe losses related to Hurricanes Harvey, Irma and Maria as well as the earthquake in Mexico City, the company also expects to report other non-catastrophe losses of approximately $15 million, driven primarily by higher than anticipated attritional losses within the current accident year for property business underwritten by Syndicate 1200.
Aspen’s Q3 Loss Estimate
Bermuda-based insurer and reinsurer Aspen Insurance Holdings said its preliminary pre-tax catastrophe loss estimate for the third quarter was $360 million from Hurricanes Harvey, Irma and Maria and other catastrophe events, including the Mexican earthquakes. (The estimate was net of ceded reinsurance recoverables, reinstatement premiums and expected profit commissions.)
The company said approximately $310 million of the overall loss estimate was generated from Hurricanes Harvey ($110 million), Irma ($135 million) and Maria ($65 million).
Also included in the overall loss total for the quarter were losses of approximately $50 million from several other events, the largest of which relate to weather-related losses and the Mexican earthquakes, the company said. (This pre-tax loss is also net of reinsurance and reinstatement premiums.)
Approximately 75 percent of the total estimated losses are attributed to the company’s reinsurance segment and approximately 25 percent are attributed to its insurance segment.
Aspen expects to record an underwriting loss of approximately $340 million in the third quarter of 2017.
Results for the quarter reflect the catastrophe losses described above as well as increased losses in short-tail insurance lines, primarily property insurance, said the company.
Source: Argo Group International Holdings/Aspen Insurance Holdings
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