RenaissanceRe Holdings has announced that losses from third quarter 2018 catastrophe events will have an estimated net negative impact of approximately $155 million on its third quarter 2018 results of operations.
The company said that these losses were primarily driven by Typhoon Jebi and Hurricane Florence, which will have an estimated net negative impact of approximately $70 million and $55 million, respectively. Losses from the other third quarter 2018 catastrophe events, including Typhoons Mangkhut and Trami, and the California wildfires, will have an estimated net negative impact of approximately $30 million.
The company expects to report modest net income available to common shareholders for the third quarter of 2018.
Net negative impact includes the sum of estimates of net claims and claim expenses incurred, earned reinstatement premiums assumed and ceded, lost profit commissions and redeemable noncontrolling interest. The Company’s estimates of net negative impact are based on a review of its potential exposures, preliminary discussions with certain counterparties and catastrophe modelling techniques.
The company said that there remains meaningful uncertainty regarding the estimates and the nature and extent of the losses from the catastrophe events in the third quarter of 2018, driven by the magnitude and recent occurrence of each event, 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.
As a result, the company’s actual net negative impact from the catastrophe events in the third quarter of 2018 may vary from these preliminary estimates, perhaps materially. Updated estimates related to these events will be reflected in RenaissanceRe’s third quarter 2018 results, when reported, and changes in these estimates will be recorded in the period in which they occur.
“It was an active quarter for catastrophic events around the world, most notably in Japan and the United States, and we extend our sympathies to all those affected,” said Kevin O’Donnell, chief executive officer of RenaissanceRe. “Consistent with our 25-year track record as a global reinsurer, we stand ready to support all of our cedents by rapidly paying their claims and continuing to deliver on our promise to provide superior customer relationships.”
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