Storm damage: Bermuda reinsurer Argo said damage from Hurricane Irene would contribute heavily to its catastrophe loss estimates from the third quarter. *AFP photo
Storm damage: Bermuda reinsurer Argo said damage from Hurricane Irene would contribute heavily to its catastrophe loss estimates from the third quarter. *AFP photo

WEDNESDAY, OCTOBER 26: Hurricane and flood damages were the biggest catastrophe losses for Argo Group International Holdings, Ltd. in the third quarter.

The company said it expects to report in the third quarter its estimate for catastrophe losses and other severe weather activity, net of reinsurance and reinstatement premiums, of approximately $35 million to $40 million.

This estimate includes approximately $20 million of losses related to Hurricane Irene and the Danish floods and approximately $10 million of loss from aggregate reinsurance covers relating to exposures in the Midwestern United States.

The balance of the aforementioned estimate reflects an increase in loss estimates on other 2011 first half catastrophe events.

Argo also completed its annual asbestos and environmental reserve review in the third quarter and as a result expects to increase its asbestos and environmental reserves by approximately $10 million on a pre-tax basis.

The review entails a detailed analysis of our direct and assumed exposure and reflects management’s best estimate of the Company’s ultimate exposure.