Arch Capital Group reports that its 2021 first quarter results will be negatively impacted by the effects of North American winter storms Uri and Viola that occurred in February, as well as from other minor global events. As a result, the Company has established a range of pretax catastrophe losses of $180 million to $190 million in the 2021 first quarter across its property casualty insurance and reinsurance segments, net of reinsurance recoveries and reinstatement premiums. Included in these estimates is a de minimis amount for ongoing exposure to COVID-19 global pandemic claims in the current accident quarter.

The initial estimates for winter storms Uri and Viola are based on a range of industry insured losses of $14 billion to $16 billion. The losses are currently expected to be split approximately 80%/20% between the Company’s reinsurance and insurance businesses, respectively.

At this time, there are significant uncertainties surrounding the ultimate number of claims and scope of damage resulting from these events. The Company’s estimates across its insurance and reinsurance segments are based on currently available information derived from modeling techniques, including preliminary claims information obtained from the Company’s clients and brokers, a review of relevant in-force contracts and estimates of reinsurance recoverables. These estimates include losses only related to claims incurred as of March 31, 2021. Actual losses from these events may vary materially from the estimates due to several factors, including the inherent uncertainties in making such determinations. The loss estimates exclude the operations of Watford Holdings Ltd. (“Watford”). Pursuant to GAAP, the Company consolidates the results of Watford in its financial statements, although it only owns approximately 10% of Watford’s outstanding common equity.