HAMILTON, Bermuda--(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: adversegeneral
economic and market conditions;increased competition;pricing
and policy term trends;fluctuations in the actions of rating
agencies and ourability 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; andother
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171012006382/en/
Arch Capital Group Ltd.
Mark D. Lyons, 441-278-9250
Source: Arch Capital Group Ltd.