Arch discloses facultative reinsurance losses
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Arch Capital Group Ltd. announced Tuesday that it expects its second-quarter 2017 underwriting results will be reduced by approximately $38 million as a result of losses related to its property facultative reinsurance business.
In a regulatory filing late Tuesday with the U.S. Securities and Exchange Commission, the Bermuda-based insurer and reinsurer said the losses were “incurred on a small number of contracts across multiple underwriting years and represents an unusually high level of activity for the property facultative reinsurance unit.”
According to the filing, the facultative reinsurance unit was established in 2007 and “has consistently produced significant underwriting profits for the company.”
Facultative reinsurance agreements cover individual risks as opposed to books of business.
An Arch spokesman did not immediately return a call seeking comment.
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