RenaissanceRe Announces Estimated Net Negative Impact from Third Quarter 2019 Catastrophe Events
RenaissanceRe Holdings Ltd. (NYSE: RNR) (the “Company” or “RenaissanceRe”) today announced it currently estimates that losses from third quarter 2019 catastrophe events will have an estimated net negative impact of approximately $155 million on its third quarter 2019 results of operations. The estimated losses include Typhoon Faxai and Hurricane Dorian, which will have an estimated net negative impact of approximately $100 million and $55 million, respectively. The Company expects to report modest net income and operating income available to common shareholders for the third quarter of 2019.
On October 12, 2019, Typhoon Hagibis made landfall in Japan with sustained winds of 85 miles per hour and reported gusts over 100 miles per hour. Typhoon Hagibis affected an area of nearly 85,000 square miles, including the region impacted by Typhoon Faxai, causing widespread flooding and damage. The Company is in the preliminary stage of assessing the impact of Typhoon Hagibis, which will be reflected in its fourth quarter financial results.
Kevin J. O’Donnell, CEO of RenaissanceRe, commented: “We extend our sympathies to all those affected by recent catastrophic events and recognize the significant human impact, particularly in the Bahamas and Japan. As always, we hope to improve the resilience and sustainability of communities by supporting recovery and rebuilding efforts through rapid payment of claims and superior service to our customers.”
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 modeling techniques.
Meaningful uncertainty regarding the estimates and the nature and extent of the losses from these events remains, driven by the magnitude and recent occurrence of each event, the geographic areas in which the events occurred, 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. Accordingly, the Company’s actual net negative impact from the catastrophe events in the third quarter of 2019 may vary from these preliminary estimates, perhaps materially. Updated estimates related to these events will be reflected in RenaissanceRe’s third quarter 2019 results, when reported, and changes in these estimates will be recorded in the period in which they occur.