Arch fourth-quarter catastrophe losses may hit $130 million

REUTERS

Arch Capital Group Ltd. on Thursday said it expects that its fourth-quarter 2018 results will be hit by up to $130 million in catastrophe losses as Hurricane Michael and the California wildfires take their toll.

The Hamilton, Bermuda-based insurer and reinsurer reported that fourth quarter 2018 pre-tax catastrophe losses, arising mostly from its non-U.S. underwriting operations, would cost between $110 million and $130 million, net of reinsurance recoveries and reinstatement premiums. Previously, Arch said it expected Hurricane Michael losses of $40 million to $60 million.

Wildfires in California cost insurers $18 billion in 2018, and Hurricane Michael resulted in insured losses of $10 billion, according to a report by Munich Re earlier this week.