Business
Arch Capital Group Ltd. Announces Updated Catastrophe Loss Estimates
Estimated pre-tax net catastrophe losses of $205 million to $225 million across the property casualty insurance and reinsurance segments in the 2020 second
About this update from Arch Capital Group Ltd.
[{"type":"text","content":"\n\nEstimated pre-tax net catastrophe losses of $205 million to $225 million across the property casualty insurance and reinsurance segments in the 2020 second quarter, including $170 million to $180 million for exposure to COVID-19 global pandemic claims.\n\n\nThis loss estimate is in addition to the $87 million estimate disclosed in the Company’s Quarterly Report on Form 10-Q for the 2020 first quarter.\n\n\nThe loss estimate does not include any potential losses from the mortgage insurance segment. The Company will report on the mortgage segment results when it releases its 2020 second quarter results.\n\n\n PEMBROKE, Bermuda--(BUSINESS WIRE)--\nArch Capital Group Ltd. [NASDAQ: ACGL; “the Company”] has established a range of pre-tax catastrophe losses of $205 million to $225 million in the 2020 second quarter across its property casualty insurance and reinsurance segments, net of reinsurance recoveries and reinstatement premiums. Included in these estimates is a range of estimates for exposure to COVID-19 global pandemic claims of $170 million to $180 million, and a range of estimates of $35 million to $45 million for losses related to civil unrest claims across the U.S. and other 2020 second quarter catastrophic events.\n\n\nFor clarity, the range of estimates above for exposure related to the global pandemic is in addition to the $87 million estimate previously disclosed by the Company in its Quarterly Report on Form 10-Q for the 2020 first quarter.\n\n\nThe range of estimates above is for the Company’s insurance and reinsurance segments only. The COVID-19 pandemic leads to direct and indirect impacts on the Company’s businesses, most notably observed in the Company’s mortgage segment in the form of elevated delinquency rates and potentially higher loss experience. For U.S. primary mortgage insurance, loss reserving under GAAP is based on reported delinquency rates. Segregating estimated losses due to the pandemic from overall mortgage segment estimated losses would require knowledge of the number of delinquencies specifically attributable to COVID-19. As this exercise cannot be performed accurately, the Company will not report COVID-19 provisions separately from overall mortgage insurance loss provisions. The Company will report on the mortgage segment results when it releases 2020 second quarter results, which is currentl...