Bermudian reinsurer RenaissanceRe Holdings Ltd is to bolster its reserves by $30 million to take account of the discount rate used to calculate lump sum awards in UK bodily injury cases.

From March 20, the Ogden rate changed from plus 2.5 per cent to minus 0.75 per cent, a decrease of 325 basis points.

The company said it will recognise the impact on its reserves in its first-quarter results.

“The majority of the reserve increase relates to a limited number of UK medical malpractice contracts within the company’s casualty and specialty segment,” RenRe stated.