13 April 2017News

RenaissanceRe reveals impact of Ogden rate decrease

RenaissanceRe Holdings has announced the estimated impact of the UK Ministry of Justice's recent announcement of a decrease in the Ogden rate.

The Ogden Rate is the discount rate used to calculate lump sum awards in UK bodily injury cases. At the end of February the UK Ministry of Justice announced that from mid-March it was reducing the rate.

Although this had been expected, the decrease was sharper than had been predicted by the insurance market.

RenaissanceRe said that based upon information currently available, it estimates that the pre-tax impact of the rate change on its carried reserves is approximately $30 million, to be recognised in the first quarter of 2017. The majority of the reserve increase relates to a limited number of UK medical malpractice contracts within the company's casualty and specialty segment.

However, the company also pointed out that due to the complexity of factors contributing to the change in reserve estimates, the ultimate impact to the Company's reserves as a result of the change in the Ogden rate may vary from these estimates.




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15 February 2017   Stephen Weinstein has been appointed as the new chair of the policy committee of the Association of Bermuda Insurers and Reinsurers (ABIR).
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26 April 2017   Re/insurers on Bermuda and the US that cover bodily injury claims in the UK will adapt quickly to the higher costs stemming from a change in how settlements are calculated, with just a short-term knock to their earnings, according to Fitch Ratings.
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3 May 2017   RenaissanceRe has reported that it made a profit of $92.4 million for the first three months of 2017, a fall of 28 percent on the $128.4 million it made for the same period of 2016.

More on this story

News
15 February 2017   Stephen Weinstein has been appointed as the new chair of the policy committee of the Association of Bermuda Insurers and Reinsurers (ABIR).
News
26 April 2017   Re/insurers on Bermuda and the US that cover bodily injury claims in the UK will adapt quickly to the higher costs stemming from a change in how settlements are calculated, with just a short-term knock to their earnings, according to Fitch Ratings.
News
3 May 2017   RenaissanceRe has reported that it made a profit of $92.4 million for the first three months of 2017, a fall of 28 percent on the $128.4 million it made for the same period of 2016.