Nat cats cost RenaissanceRe $725m in third quarter

Cat events have cost RenaissanceRe $725 million in the third quarter, according to the company’s estimates of the impact on its results. Losses of about $440 million from Hurricane Ida in August and $210 million from the flooding in Northwestern Europe in July make up the bulk of the total.

The net negative impact includes its estimates of net claims and claim expenses, earned reinstatement premiums assumed and ceded, earned and lost profit commissions and redeemable noncontrolling interest. They may be subject to change.

“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 impacted 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,” the company said in a statement.

Kevin J. 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.”