Arch estimates Thai flood losses as high as $65MPosted On: Jan. 11, 2012 12:00 AM CST
HAMILTON, Bermuda—Arch Capital Group Ltd. said Wednesday that its fourth-quarter results will be negatively affected by the severe flooding in Thailand, resulting in losses of $35 million to $65 million, net of reinsurance and reinstatement premiums.
Arch said the preliminary estimate of its losses is based on industry insured losses ranging from $10 billion to $20 billion.
“The company's preliminary estimate is based on currently available information derived from modeling techniques, industry assessments of exposure, preliminary claims information obtained from the company's clients and brokers to date and a review of in-force contracts,” Arch said in a statement.
Arch noted that the Thai flooding lasted several months and had a significant impact on the Thai economy.
“Due to the size, duration and complexity of the event, substantial uncertainty remains regarding total covered losses for the insurance industry and the assumptions underlying the company’s estimates,” Arch said.
Earlier Wednesday, Validus Holdings Ltd. said its initial estimated Thai flood losses would amount to $55.5 million.