RenRe braced for negative impact of nat cat and COVID on Q4 earnings
RenaissanceRe Holdings believes losses from weather-related catastrophe events and certain losses related to the COVID-19 pandemic will have a net negative impact on its Q4 2020 results.
RenRe expects to report net income available to common shareholders but anticipates an operating loss attributable to common shareholders.
It currently estimates that losses from weather-related catastrophe events which occurred in the third and fourth quarters of 2020 will have an estimated net negative impact of approximately $170 million on its Q4 results of operations. These expected losses relate to Hurricanes Delta, Zeta and Eta and other events, as well as changes in estimated losses from Q3 2020 weather-related catastrophe events.
Meanwhile, losses related to the COVID-19 pandemic will have an estimated net negative impact of approximately $175 million on Q4 results of operations, primarily driven by approximately $165 million of losses in the property segment. These principally relate to the cost of claims incurred but not yet reported, with respect to exposures such as business interruption coverage. The remaining exposure came via the casualty and specialty segments.
Kevin O’Donnell, president and chief executive officer of RenaissanceRe, said: “Consistent with our long-term track record, our strong capitalisation enabled us to meet the quarter’s challenges while continuing to build trusted long-term partnerships.”