Arch Capital Group Ltd. estimated a range of pretax catastrophe losses of $180 million to $190 million for the first quarter across its property casualty insurance and reinsurance segments.
A major reason for the claims during Q1 will be January’s winter storms Uri and Viola in North America, as well as other minor global events, said Arch.
The losses are currently expected to be split approximately 80%/20% between the company’s reinsurance and insurance businesses, respectively.
Range of estimates is almost entirely for natural catastrophe events that occurred in the first quarter, said Bermuda-based Arch, noting these estimates include a de minimis amount for ongoing exposure to COVID-19 global pandemic claims in the current accident quarter.
The losses will be net of reinsurance recoveries and reinstatement premiums.
The initial estimates for winter storms Uri and Viola are based on a range of industry insured losses of $14 billion to $16 billion, the company said.
Source: Arch Capital Group Ltd.
Photograph: An Oncor Electric Delivery crew works on restoring power to a neighborhood following the winter storm that passed through Texas Thursday, Feb. 18, 2021, in Odessa, Texas. Source: Eli Hartman/Odessa American via AP.
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