Arch Capital Group Ltd. Provides Preliminary Loss Estimate For Severe Flooding In Thailand
Arch Capital Group Ltd. (NASDAQ: ACGL) today announced that the
Company’s 2011 fourth quarter results will be negatively impacted by the
severe flooding in Thailand in the range of $35 million to $65 million,
Arch Capital Group Ltd. (NASDAQ: ACGL) today announced that the Company’s 2011 fourth quarter results will be negatively impacted by the severe flooding in Thailand in the range of $35 million to $65 million, net of reinsurance and reinstatement premiums. This preliminary loss estimate is based on industry insured losses ranging from $10 billion to $20 billion. The Company’s preliminary estimate is 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 severe flooding in Thailand spanned several months between July and December 2011 and has had a significant impact on the Thai economy. Due to the size, duration and complexity of the event, substantial uncertainty remains regarding total covered losses for the insurance industry and the assumptions underlying the Company’s estimates. Actual losses will depend to a great extent on claims from contingent business interruption coverage. The Company’s actual losses from catastrophic 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 $4.87 billion in capital at September 30, 2011, provides insurance and reinsurance 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.