RenaissanceRe reports cat losses of $725 million
RenaissanceRe Holdings Ltd has estimated that losses from certain catastrophe events earlier this year will have a net negative impact of approximately $725 million on the company’s third-quarter 2021 results of operations.
This estimate is primarily comprised of net negative impacts of approximately $440 million from Hurricane Ida in August and approximately $210 million from the severe flooding in Northwestern Europe in July, the Bermuda-based re/insurer said.
In addition, losses from other catastrophe events, as well as aggregate losses associated with these and other events, contributed to the estimated net negative impact.
Kevin O’Donnell, president and chief executive officer of RenaissanceRe, said: “We extend our sympathies to the many people around the world impacted by the quarter’s catastrophic events.
“In another active season for hurricanes, floods and other natural disasters, we are rapidly paying our customers’ claims, which helps communities recover and reinforces the value of the protection we provide.
“Looking ahead to 2022, our fortress balance sheet and superior customer relationships should allow us to extend our leadership in the global reinsurance market.”
RenaissanceRe said that net negative impact includes the sum of estimates of net claims and claim expenses incurred, earned reinstatement premiums assumed and ceded, earned and lost profit commissions and redeemable non-controlling interest.
The company said that its estimates of net negative impact are based on a review of its potential exposures, preliminary discussions with certain counterparties and actuarial modelling techniques.
RenaissanceRe said that the company’s actual net negative impact, both individually and in the aggregate, may vary from these estimates, perhaps materially.
It added that meaningful uncertainty regarding the estimates and the nature and extent of the losses from catastrophe events remains, driven by the magnitude and recent nature of each event, the geographic areas affected by the events, relatively limited claims data received to date, the contingent nature of business interruption and other exposures, potential uncertainties relating to reinsurance recoveries and other factors inherent in loss estimation, among other things.