Arch Capital Group Ltd. Announces Preliminary Catastrophe Loss Estimates
13 October 2017 - 7:01AM
Business Wire
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.
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 our
ability to maintain and improve our ratings; investment
performance; the loss of key personnel; the adequacy of our 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; the impact of acts
of terrorism and acts of war; changes in regulations and/or tax
laws in the United States or elsewhere; our ability to successfully
integrate, establish and maintain operating procedures as well as
integrate the businesses we have 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 us of reinsurance to manage our gross and net exposures;
the failure of others to meet their obligations to us; and other
factors identified in our filings with the U.S. Securities and
Exchange Commission.
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. We
undertake no obligation to publicly update or revise any
forward−looking statement, whether as a result of new information,
future events or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20171012006382/en/
Arch Capital Group Ltd.Mark D. Lyons, 441-278-9250
Arch Capital (NASDAQ:ACGL)
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