Everest Re Group Ltd. and Argo Group International Holdings Ltd. announced their preliminary pre-tax catastrophe loss estimates for the third quarter, ended Sept. 30, 2018.
Bermuda-based Everest Re’s estimated catastrophe loss was $240 million, net of reinsurance. The estimate includes third quarter 2018 losses from Hurricane Florence, California wildfires, Typhoon Jebi, Typhoon Trami and Japan floods.
“Due to our diversified reinsurance and insurance portfolios, we expect to report a breakeven underwriting result and an operating profit for the third quarter,” commented Dom Addesso, Everest Re’s president and chief executive officer, in a statement.
In a separate announcement, Argo Group reported its preliminary Q3 estimate for natural catastrophe losses of $25 million, related primarily to Hurricane Florence, Typhoon Jebi and other catastrophe and weather-related events.
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, said the Bermuda-based company.
“As we indicated following the catastrophe loss events in 2017, we restructured our reinsurance program for 2018 to incorporate a single retention that combined the reinsurance portfolios for Argo and the acquired Ariel Re, and we strategically increased our use of third-party capital,” commented CEO Mark E. Watson III. “Our loss results for the third quarter of 2018 reflect these actions.”
Source: Argo Group International Holdings/Everest Re
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