RenRe Expect $180M Loss From Winter Storm
RenaissanceRe announced it estimates that “losses from Winter Storm Uri will have a net negative impact of approximately $180 million on the Company’s first quarter 2021 results of operations.”
A spokesperson said, “Winter Storm Uri was a major wind and ice storm that impacted the U.S. in February 2021, causing widespread damage in many areas, including Texas. For the first quarter of 2021, the Company expects to report a net loss attributable to common shareholders and nominal operating income available to common shareholders.”
Kevin J. O’Donnell, President and Chief Executive Officer of RenaissanceRe, commented: “We extend our sympathies to all those affected by Winter Storm Uri. Consistent with our track record, we will support our customers in understanding and managing this U.S. winter storm while helping communities recover through rapid payment of claims. We are in a strong capital position heading into the mid-year renewals and anticipate additional opportunities to write attractive risk.”
The company added, “estimates of net negative impact are based on a review of its potential exposures, preliminary discussions with certain counterparties and actuarial modeling techniques. 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.”
