RenaissanceRe has stressed the critical role that the reinsurance industry plays in rebuilding communities in the wake of natural disasters as it revealed its loss estimates relating to the October 2017 California Wildfires.
The Bermuda reinsurer estimates that losses from wildfires will have a net negative impact of $90 million on its fourth quarter 2017 results.
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 non-controlling interest.
The company stressed that estimates are based on a review of its potential exposures, preliminary discussions with certain counterparties and catastrophe modeling techniques. It also noted that meaningful uncertainty regarding the estimates and the nature and extent of the losses from the October 2017 California Wildfires remains, driven by the magnitude and recent occurrence, 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.
Kevin O’Donnell, CEO of RenaissanceRe, said: "We extend our sympathies to all those affected by the October 2017 California Wildfires. This catastrophe once again highlights the critical role that the insurance and reinsurance industry plays in protecting people and rebuilding communities in the wake of natural disasters. As we have demonstrated consistently in the past, we stand ready to serve our customers in responding to the losses and promptly paying claims."
RenaissanceRe Holdings, California Wildfires, Cat losses, North America, Bermuda