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RenaissanceRe: Flooding in Thailand to impact Q4 results

Bermuda-based RenaissanceRe announced yesterday that it expects its Thai flooding exposure to impact their fourth quarter results by $45 million.According to a company statement released yesterday, RenaissanceRe’s initial estimated net negative impact of the flooding, which occurred over four months starting in July 2011, is preliminary.“Given the magnitude and recent occurrence of the floods in Thailand, limited claims data received to date, the contingent nature of business interruption and other exposures, the potential lengthy claims development period, potential uncertainties relating to reinsurance recoveries and other uncertainties inherent in loss estimation, meaningful uncertainty remains regarding these losses,” the statement said. “Accordingly, the Company's actual net impact from these events will vary from these preliminary estimates, perhaps materially so. Changes in these estimates will be recorded in the period in which they occur.”Net revisions to prior period large catastrophe loss estimates including the February 2011 New Zealand earthquake and the Tohoku earthquake are not expected to have a significant net impact on the company’s financial results for the fourth quarter of 2011.The statement also said that the company’s fourth quarter 2011 results will also include approximately $31 million in after-tax losses related to RenRe Energy Advisors Ltd, the Company’s weather and energy risk management operations, due primarily to unusually warm weather in the UK and certain parts of the US during the fourth quarter of 2011.The company will report their Q4 earnings on February 8.