Arch Capital Group Ltd. said Wednesday that its third-quarter 2022 earnings will take a hit of $530 million to $560 million across its property/casualty insurance and reinsurance segments due to the impact of Hurricane Ian and other catastrophic events.
These include US convective storms, Typhoon Nanmadol and French hailstorms in June, Arch said in a statement on Wednesday.
The estimated range of pre-tax catastrophe losses between $530 million and $560 million in the third quarter of 2022 is net of reinsurance and reimbursement premiums, the statement said.
The losses are expected to be split approximately 70/30 between Arch’s reinsurance and insurance operations.
Arch said its estimate for Hurricane Ian is commensurate with a range of estimated insured losses in the global property/casualty insurance industry of $50 billion to $60 billion. Damage estimates for insured losses have continued to climb as recovery teams work further into the damage and have ranged up to $74 billion.
Arch added that the estimates include losses only related to claims incurred on September 30, 2022, and actual losses from these events may differ materially from the estimates.
Separately on Wednesday, Gallagher Re, the reinsurance unit of Arthur J. Gallagher & Co., issued a report on the impact of Hurricane Ian.
The Gallagher report said Ian was the fifth strongest U.S. mainland hurricane to make landfall on record with 150 mph winds.
Wind damage in Southwest Florida was extensive, although newer construction, including metal and brick roofs, despite a higher purchase cost than asphalt shingles, showed more limited effects.
Expansive storm surges in excess of 15 feet caused significant impacts on the coast and tracked 0.4 miles inland, leaving heavy losses to coastal commercial exposures, automobiles, boats, and other marine interests.
Inland flooding also left significant damage from DeSoto to Florida’s Lake Counties, Gallagher Re said.