RenRe sees $650mn hit on Q3 results

RenaissanceRe (RenRe) estimates that losses from certain 2022 catastrophe events will have a net negative impact of approximately $650 million on its third quarter 2022 results of operations.

This estimate is primarily driven by the net negative impact of approximately $540 million from Hurricane Ian. In addition, losses from certain other catastrophe events, along with the aggregate losses associated with these and other events, contributed to the estimated net negative impact.

RenRe expects to report a net loss attributable to common shareholders for both the third quarter of 2022 and nine months ended September 30, 2022.

While it expects to report an operating loss attributable to common shareholders for the third quarter of 2022, the operating loss attributable to common shareholders for the nine months ended September 30, 2022 is expected to be “modest”.

Kevin J. O’Donnell, president and chief executive officer of RenRe, said: “We extend our sympathies to all those impacted by the quarter’s catastrophic events. Our purpose is to protect communities and enable prosperity, and we stand ready to pay our customers’ claims to help communities rebuild. Looking forward, we have the capital, scale, and flexibility to provide our customers with much needed reinsurance in 2023 while creating value for our shareholders.”

RenRe’s estimates of net negative impact are based on a review of its potential exposures, preliminary discussions with certain counterparties and actuarial modelling techniques. The actual net negative impact, both individually and in the aggregate, may vary from these estimates, perhaps materially. Changes in these estimates will be recorded in the period in which they occur.

Meaningful uncertainty remains regarding the estimates and the nature and extent of the losses from catastrophe events, driven by the magnitude and recent nature of each event, the geographic areas impacted by the events, 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.