Arch Capital has announced it has established a range of pre-tax catastrophe losses of $205m (£163m) to $225m (£179m) in the 2020 second quarter across its property casualty insurance and reinsurance segments, net of reinsurance recoveries and reinstatement premiums.
It said that Included in these estimates are a range of estimates for exposure to Covid-19 global pandemic claims of $170m (£135m) to $180m (£143m), and a range of estimates of $35m (£27m) to $45m (£35m) for losses related to civil unrest claims across the U.S. and other 2020 second quarter catastrophic events.
The group said the range of estimates above for exposure related to the global pandemic is in addition to the $87m (£69.4m) estimate previously disclosed by the company in its Quarterly Report on Form 10-Q for the 2020 first quarter.
The group said: “At this time, there are significant uncertainties surrounding the ultimate number of claims and scope of damage resulting from the pandemic. The company’s estimates across its insurance and reinsurance segments are based on currently available information derived from modeling techniques, including preliminary claims information obtained from the company’s clients and brokers, a review of relevant in-force contracts with potential exposure to the pandemic and estimates of reinsurance recoverables.
“These estimates include losses only related to claims incurred as of June 30, 2020. Actual losses from these events may vary materially from the estimates due to several factors, including the inherent uncertainties in making such determinations and the evolving nature of this pandemic.”
It added: “The loss estimates exclude the impact of the pandemic on the operating results of Watford Holdings Ltd. Pursuant to GAAP, the company consolidates the results of Watford in its financial statements, although it only owns approximately 13% of Watford’s outstanding common equity.”