RenRe Japan Quake Estimate: $220 Million
RenaissanceRe Holdings Ltd. today [Apr.18] announced its initial loss estimate from the Tohoku earthquake and subsequent tsunami on March 11, 2011, saying they expects that losses will have a net negative impact of approximately $220 million on its first quarter 2011 results.
Net negative impact includes the sum of estimates of net claims and claim expenses incurred, earned reinstatement premiums assumed and ceded, lost profit commissions, redeemable noncontrolling interest and other income in respect of ceded reinsurance contracts accounted for at fair value. The Company’s estimates are based on a review of its potential exposures, preliminary discussions with certain counterparties and catastrophe modeling techniques.
Given the magnitude and recent occurrence of this event, and potential uncertainties relating to reinsurance recoveries and other uncertainties inherent in loss estimation, the Company’s actual net negative impact from this event will likely vary from this preliminary estimate, perhaps materially so.
