Arch Capital's Sandy Cat Loss Est. - Analyst Blog
21 Décembre 2012 - 11:10AM
Zacks
Arch Capital Group Limited (ACGL) expects to
incur pre tax loss in the range of $170–$240 million, net of
reinsurance and the effects of reinstatement premiums, due to
Superstorm Sandy. The estimate is based on the forecasted industry
insured losses of $20–$25 billion.
Reinsurance segment will bear 60% of the loss, while the remaining
40% will be borne by the Insurance segment.
Arch Capital Group posted better numbers in each of the first three
quarters of 2012 owing to lower catastrophe activities.
Underwriting results and combined ratio exhibited huge improvement.
The first two quarters reported underwriting profit, which
rebounded from the year-ago loss, while the third quarter exhibited
significant improvement. Conversely, the scenario in the fourth
quarter of 2012 is expected to be disrupted owing to the huge
losses from Superstorm Sandy.
The Zacks Consensus Estimate for the fourth quarter of 2012 is 7
cents representing a year-over-year decline of 92.5%. However, for
full year 2012, it is currently pegged at $2.82 reflecting
year-over-year growth of 27.8%. We expect the year-to-date
performance to dwarf the headwinds in the fourth quarter and aid
Arch Capital to come up with better numbers.
Among other insurers Axis Capital Holdings Limited
(AXS) and XL Group Plc (XL),
which closely compete with Arch Capital, have also provided their
loss estimates from Hurricane Sandy for the fourth quarter of 2012.
Axis Capital anticipates its pretax loss to be $300 million, net of
tax and estimated recoveries from reinsurance and including
estimated reinstatement premiums whereas XL Group expects pretax
loss of approximately $350 million, net of reinsurance and
reinstatement premiums.
Arch Capital currently holds a Zacks #3 Rank, which translates into
a short-term hold rating. Axis Capital and XL Group also share the
same Zacks Rank.
ARCH CAP GP LTD (ACGL): Free Stock Analysis Report
AXIS CAP HLDGS (AXS): Free Stock Analysis Report
XL GROUP PLC (XL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Arch Capital (NASDAQ:ACGL)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024
Arch Capital (NASDAQ:ACGL)
Graphique Historique de l'Action
De Juil 2023 à Juil 2024