Argo estimates up to $100 million in third-quarter catastrophe losses

Hurricane Maria

Hamilton, Bermuda-based Argo Group International Holdings Ltd. said Monday that preliminary pretax catastrophe loss estimates for the three-month period ended Sept. 30 would be $85 million to $100 million.

The results are net of ceded reinsurance recoverables, reinstatement premiums and expected profit commissions, Argo Group said in a statement.

Catastrophe losses in the third quarter are related primarily to hurricanes Harvey, Irma and Maria, as well as the earthquake in Mexico City. Argo said it expects to report other noncatastrophe losses of about $15 million, driven primarily by higher-than-expected attritional losses within the current accident year for property business underwritten by its Lloyd’s of London syndicate 1200.

“We are well positioned to meet the needs of our clients and provide coverage and security to help them rebuild following these tragic natural disasters,” CEO Mark E. Watson III said in the statement. 

Net losses include about $35 million to $45 million related to the acquisition of Ariel Re, an underwriter of global reinsurance and insurance business, which was not acquired until the end of the first quarter. Argo announced last November that it had agreed to acquire Ariel Re for about $235 million in cash.