Arch Capital Group Ltd. Announces Catastrophe Loss Estimates
13 Octobre 2020 - 10:20PM
Business Wire
- Estimated pretax net catastrophe losses of $190 million to $210
million across the property casualty insurance and reinsurance
segments in the 2020 third quarter.
- Range of estimates is mostly for natural catastrophe events
that occurred in the third quarter, but also includes a range of
estimates of $10 million to $15 million for exposure to COVID-19
global pandemic claims.
- The loss estimate does not include any potential losses from
the mortgage insurance segment. The Company will report on the
mortgage insurance segment results when it releases its 2020 third
quarter results.
Arch Capital Group Ltd. [NASDAQ: ACGL; “the Company”] reports
that its 2020 third quarter results will be negatively impacted by
a set of catastrophe events that occurred during the third quarter,
including Hurricanes Isaias, Laura, and Sally, the Derecho
Windstorm, California Wildfires and other minor global events. As a
result, the Company has established a range of pretax catastrophe
losses of $190 million to $210 million in the 2020 third quarter
across its property casualty insurance and reinsurance segments,
net of reinsurance recoveries and reinstatement premiums.
Included in these estimates is a range of estimates of $10
million to $15 million for ongoing exposure to COVID-19 global
pandemic claims. For clarity, the estimates specific to the global
pandemic are in addition to the $260 million estimate previously
disclosed by the Company in its Quarterly Report on Form 10-Q for
the six months ended June 30, 2020.
The ranges of estimates above are for the Company’s insurance
and reinsurance segments only. The Company will report on the
mortgage segment results when it releases 2020 third quarter
results, which is currently scheduled for Oct. 29 after markets
close.
At this time, there are significant uncertainties surrounding
the ultimate number of claims and scope of damage resulting from
these events. The Company’s estimates across its insurance and
reinsurance segments are based on currently available information
derived from modeling techniques, including preliminary claims
information obtained from the Company’s clients and brokers, a
review of relevant in-force contracts and estimates of reinsurance
recoverables. These estimates include losses only related to claims
incurred as of Sept. 30, 2020. Actual losses from these events may
vary materially from the estimates due to several factors,
including the inherent uncertainties in making such determinations.
The loss estimates exclude the operations of Watford Holdings Ltd.
(“Watford”). Pursuant to GAAP, the Company consolidates the results
of Watford in its financial statements, although it only owns
approximately 13% of Watford’s outstanding common equity.
About Arch Capital Group Ltd.
Arch Capital Group Ltd., a Bermuda-based company with
approximately $14.7 billion in capital at June 30, 2020, provides
insurance, reinsurance and mortgage insurance on a worldwide basis
through its wholly owned subsidiaries.
Cautionary Note Regarding Forward-looking Statements
The Private Securities Litigation Reform Act of 1995 provides a
"safe harbor" for forward−looking statements. This release or any
other written or oral statements made by or on behalf of Arch
Capital Group Ltd. and its subsidiaries may include forward−looking
statements, which reflect our current views with respect to future
events and financial performance. All statements other than
statements of historical fact included in or incorporated by
reference in this release are forward−looking statements.
Forward−looking statements can generally be identified by the
use of forward−looking terminology such as "may," "will," "expect,"
"intend," "estimate," "anticipate," "believe" or "continue" or
their negative or variations or similar terminology.
Forward−looking statements involve our current assessment of risks
and uncertainties. Actual events and results may differ materially
from those expressed or implied in these statements. A
non-exclusive list of the important factors that could cause actual
results to differ materially from those in such forward-looking
statements includes the following: adverse general economic and
market conditions; increased competition; pricing and policy term
trends; fluctuations in the actions of rating agencies and the
Company’s ability to maintain and improve its ratings; investment
performance; the loss of key personnel; the adequacy of the
Company’s loss reserves, severity and/or frequency of losses,
greater than expected loss ratios and adverse development on claim
and/or claim expense liabilities; greater frequency or severity of
unpredictable natural and man-made catastrophic events,
including pandemics such as COVID-19; the impact of acts of
terrorism and acts of war; changes in regulations and/or tax laws
in the United States or elsewhere; the Company’s ability to
successfully integrate, establish and maintain operating procedures
as well as consummate acquisitions and integrate the businesses the
Company has acquired or may acquire into the existing operations;
changes in accounting principles or policies; material differences
between actual and expected assessments for guaranty funds and
mandatory pooling arrangements; availability and cost to the
Company of reinsurance to manage the Company’s gross and net
exposures; the failure of others to meet their obligations to the
Company; changes in the method for determining the London
Inter-bank Offered Rate (“LIBOR”) and the potential replacement of
LIBOR and other factors identified in the Company’s filings with
the U.S. Securities and Exchange Commission (“SEC”).
The foregoing review of important factors should not be
construed as exhaustive and should be read in conjunction with
other cautionary statements that are included herein or elsewhere.
All subsequent written and oral forward−looking statements
attributable to us or persons acting on our behalf are expressly
qualified in their entirety by these cautionary statements. The
Company undertakes no obligation to publicly update or revise any
forward−looking statement, whether as a result of new information,
future events or otherwise.
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures as
defined by Regulation G of the rules of the SEC. These non-GAAP
financial measures are not in accordance with, nor are they a
substitute for, GAAP measures. The Company believes these non-GAAP
measures provide users of its financial information meaningful and
useful insight in evaluating the performance of the Company.
Investors should consider non-GAAP measures in addition to, and not
as a substitute for, or superior to, the comparable GAAP measures.
Please refer to the Company’s Form 10-K filed with the SEC for
further discussion of non-GAAP measures.
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Arch Capital Group Ltd. François Morin (441) 278-9250
Arch Capital (NASDAQ:ACGL)
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