RenRe Expect Q3 Catastrophe Loss Of $325M
RenaissanceRe Holdings Ltd. announced it currently estimates that losses from third quarter 2020 catastrophe events will have an estimated net negative impact of approximately $325 million on its third quarter 2020 results of operations.
A spokesperson said, “The estimated net negative impact is primarily driven by losses from Hurricanes Laura and Sally, as well as the wildfires in California, Oregon and Washington. In addition, losses from other catastrophe events including the August 2020 derecho which impacted the U.S. Midwest, Hurricane Isaias and Typhoon Maysak, as well as aggregate losses associated with these and other events, contributed to the estimated net negative impact.
“These events caused widespread damage to both personal and commercial property in and around the impacted regions. For the third quarter of 2020, the Company expects to report modest net income available to common shareholders; however, it expects to report an operating loss attributable to common shareholders.
“Hurricane Delta, a Category 2 hurricane, made landfall on the Yucatán Peninsula on October 7, 2020, and subsequently in Louisiana on October 9, 2020, causing widespread flooding and damage, including in the region impacted by Hurricane Laura.
“Additionally, the wildfires impacting California are ongoing. The Company is in the preliminary stage of assessing the impact of Hurricane Delta and the continuing impact of the California wildfires beyond the third quarter of 2020. The estimated losses for these events will be reported in the Company’s fourth quarter financial results.”
Kevin J. O’Donnell, Chief Executive Officer of RenaissanceRe, commented: “We extend our sympathies to all those affected by the quarter’s catastrophic events. This elevated wind and wildfire season reinforces the value of reinsurance in ameliorating the growing impact of climate change. Protecting communities from climate-related disaster is an important part of our purpose, which we fulfill through the rapid payment of claims to our customers.”
“The Company’s actual net negative impact, both individually and in the aggregate, may vary from these estimates, perhaps materially. Changes in these estimates will be recorded in the period in which they occur,” the company added.
“Meaningful uncertainty regarding the estimates and the nature and extent of the losses from these events remains, driven by the magnitude and recent occurrence of each event, the geographic areas in which the events occurred, 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.”
