RenaissanceRe Bottom Line Hit By Disasters
Bermuda re/insurer RenaissanceRe Holdings Ltd. said yesterday [Apr. 26] the company’s bottom line had been rocked by $427.4 million of losses related to the Japanese earthquake and tsunami, Australian flooding and the quake in New Zealand.
The re/insurer said core earnings declined during the first-quarter. Catastrophe costs for Bermuda’s global re/insurance industry have been mounting in recent months, with major earthquakes in Chile and New Zealand, floods and cyclones in Australia and the twin Japanese natural disasters.
Earlier this month, RenaissanceRe estimated the March 11 earthquake and tsunami in Japanwould have a net impact of about $220 million on its first-quarter results.
RenaissanceRe reported a loss of $239.3 million, or $4.69 a share, from a year-earlier profit of $175.6 million, or $2.73 a share, in 2010r. The company’s bottom line on an operating basis, which excludes investment gains and losses, was a loss of $4.59 compared with a year-earlier profit of $1.91.
Total revenue rose 11 percent to $387.7 million.
RenaissanceRe CEO Neill A. Currie, CEO, commented: “This quarter’s catastrophic events have caused enormous human tragedy, and we extend our sympathies to all those affected. As we have throughout the history of our company, we are responding to the needs of our clients quickly, whether it is paying valid claims with industry leading speed, or providing additional coverage in the wake of these events.”
Mr. Currie added: “In the aftermath of the large catastrophes that have occurred over the last year, and as our clients’ view of risk evolves, we anticipate demand for our products will increase over time. Our experienced team has the tools and the capital necessary to respond to the needs of our clients.”
