Arch Capital now expects to take pre-tax losses from fourth quarter 2018 cat events of $110mn to $130mn, primarily from Hurricane Michael and the devastating California wildfires.
The Bermudian (re)insurer said that the loss range included a series of other small events and was net of reinsurance recoveries and reinstatement premiums.
The company had previously estimated a range of just $40mn to $60mn when it filed its 10Q for the third quarter of 2018.
However, that loss range only included the impact of Hurricane Michael and didn’t factor in Arch Capital’s loss-picks for the wildfires and other Q4 cat events around the global.
The carrier didn’t disclose a breakdown of estimated losses for the different catastrophe events or how they were split between its primary insurance and reinsurance operations.
It added that it estimates the effective tax rate on pre-tax operating income for the fourth quarter of 2018 will be in a range of 12 to 15 percent, reflecting a higher proportion of US-based operating income.
Arch is due to report its fourth quarter results on 12 February.