RenRe expects $180m winter storm Uri loss, anticipates Q1 net loss

RenRe expects $180m winter storm Uri loss, anticipates Q1 net loss

RenaissanceRe, the Bermuda headquartered reinsurer and third-party reinsurance capital manager, has pre-announced an expectation that losses from winter storm Uri will have a net negative impact of around $180 million on its first-quarter 2021 results.Because of this, RenaissanceRe (RenRe) is forecasting that it will report a net loss for the first-quarter, however with small operating income likewise offered to its typical investors from the period.
The $180 million of winter season Storm Uri losses are net, so after RenRe has actually taken into consideration its retrocessional reinsurance plans and likewise any share of losses attributable to financiers in its third-party capital structures, joint-ventures and insurance-linked securities (ILS) funds.
Provided the size of the market loss from winter season storm Uri and the related freeze loss in Texas, it is natural to presume that RenRe will pass on a share of its losses from the weather occasion to third-party reinsurance capital providers it is partnered with.
RenRe kept in mind that winter season Storm Uri drove a major wind and ice storm across the U.S. in February 2021, causing prevalent damage in lots of locations, consisting of Texas.
Kevin J. ODonnell, President and Chief Executive Officer of RenaissanceRe, said, “We extend our sympathies to all those affected by Winter Storm Uri. Constant with our performance history, we will support our consumers in understanding and managing this U.S. winter storm while assisting neighborhoods recuperate through quick payment of claims. We remain in a strong capital position heading into the mid-year renewals and prepare for extra chances to compose appealing threat.”
RenRe had actually formerly said that it is optimistic on prospects for the Florida reinsurance renewals and the mid-year will be a key point for the company, as it looks to deploy capital.
The reinsurance business highlighted that its ultimate net loss from winter season storm Uri could differ from the quote, possibly materially, highlighting “meaningful uncertainty”, explaining that the nature of the occasion means there is uncertainty related to “the contingent nature of company disturbance and other exposures,” along with “potential uncertainties associating with reinsurance recoveries.”

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