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The “magnitude” of claims could ease in future quarters, Argo CEO Kevin Rehnberg said.
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Warren Buffett said the company faces a more limited impact from the virus than some other insurers.
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The policy would have likely paid out due to the coronavirus crisis.
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The Floridian has strengthened reserves for attritional homeowner losses amid continuing impacts from assignment of benefits issues.
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The carrier said the market was in the early stages of rate change and it was hard to know how long improvements would last.
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The government secured a slight expansion in the level of cover obtained across the middle layer of the programme.