July 18, 2016 by Canadian Underwriter
Estimated losses from the Fort McMurray wildfires have hit another two companies operating in the reinsurance industry, with Bermuda-based Argo Group International Holdings Ltd. and Blue Capital Reinsurance Holdings Ltd. reporting late last week the event will have an impact in 2016 Q2.
Argo Group International Holdings, an international underwriter of specialty insurance and reinsurance products, reports preliminary pre-tax loss estimates from catastrophes of US$23 million, net of reinsurance and reinstatement premiums, for the three months ending June 30.
“Catastrophe losses in the quarter are primarily related to the Canadian wildfires and weather-related events in the U.S.,” the company reports in a prepared statement.
Based on claims received to date, policy level reviews, data and discussions with distribution partners and Argo Group’s internal and external modelling resources, the estimates are preliminary and subject to change, the statement notes.
“Accordingly, the actual ultimate net losses attributable to catastrophes may differ materially from Argo Group’s preliminary estimates,” the company adds.
Blue Capital Reinsurance Holdings, for its part, is a subsidiary of Endurance Specialty Holdings Ltd. ENH that, through its operating subsidiaries, offers collateralized reinsurance in the property catastrophe market.
Blue Capital reports its initial estimate of the net negative financial impact in 2016 Q2 from the Fort McMurray wildfires in Canada, the convective storms in Texas and Europe and the Kumamoto earthquake in Japan to be US$5.1 million.
The initial estimated net negative financial impact includes the sum of net loss and loss adjustment expenses and reinstatement premiums, the company notes.
“Blue Capital’s estimate is largely derived from a combination of its proprietary catastrophe modelling, standard industry models, a review of in-force contracts and preliminary indications from clients and brokers,” the statement adds.
“To date, reported claims as a result of these events have been limited; accordingly, the actual impact may ultimately differ materially from initial estimates,” the company points out.