Earnings

The Chicago carrier remains in the black at underwriting level, with a combined ratio of 96%.

The company warns of growing net investment income pressures.

Yesterday RLI reported Q2 earnings, putting up operating EPS of $0.77.

Covid-19 has led to a drop in loss frequency, helping WRB report an underwriting profit in Q2.

The company pointed to low interest rates and social inflation as driving rate, not Covid.

The carrier sees no material coronavirus claims in the second quarter, though a near doubling of its natural catastrophe bill to about $90mn.

Last week featured the first new data points on Q2 earnings with Progressive and Truist reporting. But P&C earnings season really kicks off this week with the traditional frontrunners set to report.

This week the team looks at the serial underperformance of Bermudian syndicates at Lloyd’s and dissects the Q2 pre-announcements of Covid-19 losses from US insurers.

The carrier says the claims stem largely from hailstorm and flooding events in Canada.

The estimate is in line with Argo's earlier projection and will likely precede additional announcements from the sector in the coming weeks.

Four severe weather events in Texas and the Midwest generate about 80 percent of the claims.

Its shares were up 11% after the news, implying markets had feared worse.