David Flandro, Senior Vice President
Another four companies increased their Hurricane Ike estimates this week: Arch Capital Group Ltd, Chaucer Holdings plc, Transatlantic Holdings Inc., and Argo Group International Holdings Ltd. This continues a trend that began two weeks ago.
Arch increased its net loss estimate for Hurricane Ike (after reinsurance recoveries and net of reinstatement premiums) from USD133million to USD293 million (120 percent). This was due to increased estimates of industry insured losses of USD18bn to USD21 billion and additional information from clients reflecting larger losses than initially estimated. Approximately two thirds of the increase came from Arch’s expected claims in the onshore and offshore energy lines of business.
Argo Group increased its pre-tax loss estimate for Hurricane Ike (including reinstatement premiums and estimated reinsurance recoveries) from USD60 million to USD75 million (25 percent). Argo Group’s International Specialty segment accounted for USD12.1 million of the increase with the remainder incurred in the reinsurance segment.
Chaucer increased its Syndicate 1084 loss from Hurricanes Gustav and Ike (net of reinsurance recoveries and reinstatement premiums) from USD55 million to USD65 million (18 percent), and Transatlantic Re increased its pre-tax net catastrophe costs from USD143.8 million to USD169.7 million (18 percent).