Charge includes Deepwater and additional information on the Chilean earthquake
Specialty insurer and reinsurer Argo Group International Holdings expects to report pre-tax loss provisions of between $20m and $25m in its second quarter 2010 results, net of reinsurance and reinstatement premiums.
The charge relates to spring storms in the US, the Deepwater Horicon oil rig disaster on the Gulf of Mexico and additional information on the earthquake that hit Chile in February.
The company said that on reaching this estimate, it has relied on information currently available from portfolio modelling and assessments of the exposures insured under individual policies and industry loss estimates. It added that due to the preliminary nature of the information used to determine this estimate, the ultimate cost to the company from these events may differ materially from the indications given.