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RenRe takes $345mn in Q4 weather-related catastrophe, pandemic losses

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RenaissanceRe expects pandemic and weather-related losses to cost the company $345mn in net operating earnings for the last three months of the year, the reinsurer announced on Wednesday.

According to the company, claims tied to the Covid-19 pandemic are expected to total $175mn, of which about $165mn come from its property unit, predominantly from BI losses, and mostly in the form of incurred but not reported claims reserves.

The remaining losses from the pandemic are expected to fall in the casualty and specialty segment.

Catastrophe losses incurred in both the third and fourth quarters are expected to contribute to a $170mn net loss to operating earnings, with the amount mostly driven by hurricanes Delta, Zeta and Eta, in addition to aggregated losses from other events.

Commenting on the fourth quarter loss figures, RenRe chief executive Kevin O’Donnell said: “In the fourth quarter, people and communities around the world were negatively impacted by persistent weather-related catastrophe activity as well as the ongoing consequences of the Covid-19 pandemic."

He continued: “We extend our sympathies to all those affected by these tragedies. Consistent with our long-term track record, our strong capitalization enabled us to meet the quarter’s challenges while continuing to build trusted long-term partnerships.”

The reinsurer reported a $325mn catastrophe bill in the third quarter from losses connected to hurricanes Sally and Laura, and had only previously reported a $104mn Covid-19 loss figure after last year’s first quarter.

Last year, fourth quarter catastrophe losses came in at $237mn, when the company was impacted by Typhoon Hagibis.

The company raised over $900mn in equity in June, to go along with more than $1bn of third-party capital raised in the last year to capitalize on firming market conditions.

RenRe in is scheduled to report its full fourth quarter results on Tuesday, January 26 after markets close.

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