Arch Capital Group Ltd (ACGL) Sees Q3 Catastrophe Loss of Range of $285M-$345M

Arch Capital Group Ltd. (NASDAQ: ACGL) today announced that the Company’s 2017 third quarter results will be negatively impacted by a set of catastrophic events that occurred during the third quarter, including Hurricanes Harvey, Irma and Maria, along with the Mexican earthquakes, and other more minor global events. We have established an after-tax preliminary range of $285 million to $345 million for the totality of these catastrophic events across our operating segments, net of reinsurance and reinstatement premiums. Due to the mix of estimated catastrophic losses by jurisdiction, we anticipate the tax rate applicable to these catastrophic losses to be lower than our effective annual tax rate on pre-tax operating income. The Company determined a range for total industry insured losses across all 2017 third quarter events of $80 billion to $100 billion.

The Company’s preliminary estimates for these events are 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. The Company’s actual losses from these events may vary materially from the estimates due to the inherent uncertainties in making such determinations resulting from several factors, including the preliminary nature of available information, the potential inaccuracies and inadequacies in the data provided by clients and brokers, the modeling techniques and the application of such techniques, the contingent nature of business interruption exposures, the effects of any resultant demand surge on claims activity and attendant coverage issues. In addition, actual losses may increase if the Company’s reinsurers fail to meet their obligations to the Company or the reinsurance protections purchased by the Company are exhausted or are otherwise unavailable.

Arch Capital Group Ltd., a Bermuda-based company with approximately $11.13 billion in capital at June 30, 2017, provides insurance, reinsurance and mortgage (re)insurance on a worldwide basis through its wholly owned subsidiaries.

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