RenaissanceRe Holdings estimates that losses from Q3 2020 catastrophe events will have an estimated net negative impact of approximately $325 million on its results for that quarter.
The impact is primarily driven by losses from Hurricanes Laura and Sally, RenRe said, as well as the wildfires in California, Oregon and Washington, as well as other catastrophes including the August 2020 derecho, Hurricane Isaias and Typhoon Maysak.
The calculation 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.
RenRe warned the actual final net negative impact, both individually and in the aggregate, may vary from its estimate. The re/insurer added that it expects to report modest net income available to common shareholders despite making an operating loss attributable to common shareholders.
RenRe said it is in the preliminary stage of assessing the impact of Hurricane Delta, a Category 2 hurricane, made landfall on the Yucatán Peninsula on October 7, 2020, and subsequently in Louisiana on October 9, 2020, and the California wildfires beyond Q3.
Kevin ’Donnell, chief executive officer of RenRe, said: “This elevated wind and wildfire season reinforces the value of reinsurance in ameliorating the growing impact of climate change. Protecting communities from climate-related disaster is an important part of our purpose, which we fulfill through the rapid payment of claims to our customers.”
RenaissanceRe Holdings, Kevin ’Donnell