Companies continue to report the impact of second-quarter catastrophes, with Bermuda-based Arch Capital Group Ltd. saying it expects losses of between $90 million and $110 million, of which 15 percent is updated first-quarter loss estimates.
Arch says the second-quarter events include U.S. storms in April and May and the most recent earthquakes in Christchurch, New Zealand, which occurred in mid-June.
The April and May U.S. storms are expected to cost Validus Holdings Ltd. between $55 million and $75 million, net of reinstatement premiums and reinsurance, retrocessional and other recoveries. The losses are from flooding, hail, tornadoes and wind.
Aspen Insurance Holdings Ltd. expects approximately $60 million in losses, net of reinsurance, reinstatement premiums and tax, from the storms. The Hamilton, Bermuda-based company says the bulk of the net loss estimate is in its reinsurance segment.
Tower Group Inc. says it expects $8 million in pre-tax losses from U.S. storms in April, May and early June.
The New York-based property and casualty insurer says it expects the weather-related losses will reduce its second-quarter earnings by $0.13 per share and adds that it expects operating earnings per share to be at the lower end of its previously announced range of $2.70 to $2.90.
Overall, losses from the thunderstorms in the two-month span reached about $15 billion, says Aon Benfield, the global reinsurance intermediary of Aon Corp.
Catastrophe-risk modelers estimate insured losses of between $2 billion and $6 billion for the late April tornado outbreak. AIR Worldwide adds up to $7 billion in losses due to late May storms.
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