PEMBROKE, Bermuda--(BUSINESS WIRE)--Oct. 4, 2017--
RenaissanceRe Holdings Ltd. (NYSE:RNR) (“RenaissanceRe” or the
“Company”) today announced it anticipates an initial estimated net
negative impact of $625 million from Hurricanes Harvey, Irma and Maria
and the Mexico City Earthquake. These events caused widespread damage to
both personal and commercial property in and around the impacted regions.
The Company currently estimates that losses from Hurricanes Harvey and
Irma will have a net negative impact of approximately $225 million and
$175 million, respectively, on its third quarter 2017 results of
operations.
In addition, the Company currently estimates that the combined losses
from Hurricane Maria and the Mexico City Earthquake will have a net
negative impact of approximately $225 million on its third quarter 2017
results of operations.
Kevin J. O’Donnell, CEO of RenaissanceRe, commented: “We extend our
sympathies to all those affected by these recent catastrophic events,
and recognize their enormous human impact. As we have always done, we
stand ready to help rebuild the many affected communities by serving our
customers and paying claims."
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 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,
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. The Company believes these estimates may
be even more uncertain for the two more recent events, Hurricane Maria
and the Mexico City Earthquake because, among other things, recovery,
insurance loss adjusting and exposure estimates are at earlier stages.
Furthermore, seismic events such as the Mexico City Earthquake generally
have longer development periods than windstorm events, which may be
amplified in this instance by dynamics such as the risk of geological
liquefaction and the potential for uncertainty in claims adjudication.
In respect of Hurricane Maria, recovery efforts are ongoing and
expanding, with power outages, infrastructure damage, communications
disruptions and other issues complicating loss mitigation and
estimation. Accordingly, the Company’s actual net negative impact from
all four events noted above, both individually and in the aggregate,
will vary from these preliminary estimates, perhaps materially. Updated
loss estimates related to these events will be reflected in
RenaissanceRe’s third quarter 2017 results, when reported.
About RenaissanceRe
RenaissanceRe Holdings Ltd. is a global provider of reinsurance and
insurance that specializes in matching well-structured risks with
efficient sources of capital. The Company provides property, casualty
and specialty reinsurance and certain insurance solutions to customers,
principally through intermediaries. Established in 1993, the Company has
offices in Bermuda, Ireland, Singapore, the United Kingdom, and the
United States.
Cautionary Statement Regarding Forward-Looking Statements
Any forward-looking statements made in this Press Release reflect
RenaissanceRe’s current views with respect to future events and
financial performance and are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
These statements are subject to numerous factors that could cause actual
results to differ materially from those set forth in or implied by such
forward-looking statements, including the following: the frequency and
severity of catastrophic and other events that the Company covers; the
effectiveness of the Company’s claims and claim expense reserving
process; the Company’s ability to maintain its financial strength
ratings; the effect of climate change on the Company’s business; the
effect of U.S. business tax reform proposals; adverse tax developments,
including potential changes to the taxation of inter-company or related
party transactions, or changes to the tax treatment of shareholders or
investors in RenaissanceRe or joint ventures or other entities the
Company manages; the effect of emerging claims and coverage issues;
continued soft reinsurance underwriting market conditions; the Company’s
reliance on a small and decreasing number of reinsurance brokers and
other distribution services for the preponderance of its revenue; the
Company’s exposure to credit loss from counterparties in the normal
course of business; the effect of continued challenging economic
conditions throughout the world; a contention by the Internal Revenue
Service that Renaissance Reinsurance Ltd., or any of the Company’s other
Bermuda subsidiaries, is subject to taxation in the U.S.; the
performance of the Company’s investment portfolio; losses that the
Company could face from terrorism, political unrest or war; the effect
of cybersecurity risks, including technology breaches or failure on the
Company’s business; the Company’s ability to successfully implement its
business strategies and initiatives; the Company’s ability to retain key
senior officers and to attract or retain the executives and employees
necessary to manage its business; the Company’s ability to determine the
impairments taken on investments; the availability of retrocessional
reinsurance on acceptable terms; the effect of inflation; the ability of
the Company’s ceding companies and delegated authority counterparties to
accurately assess the risks they underwrite; the effect of operational
risks, including system or human failures; the Company’s ability to
effectively manage capital on behalf of investors in joint ventures or
other entities it manages; foreign currency exchange rate fluctuations;
the Company’s ability to raise capital if necessary; the Company’s
ability to comply with covenants in its debt agreements; changes to the
regulatory systems under which the Company operates, including as a
result of increased global regulation of the insurance and reinsurance
industry; changes in Bermuda laws and regulations and the political
environment in Bermuda; the Company’s dependence on the ability of its
operating subsidiaries to declare and pay dividends; the success of any
of the Company’s strategic investments or acquisitions, including the
Company’s ability to manage its operations as its product and
geographical diversity increases; aspects of the Company’s corporate
structure that may discourage third party takeovers or other
transactions; the cyclical nature of the reinsurance and insurance
industries; adverse legislative developments that reduce the size of the
private markets the Company serves or impede their future growth; other
political, regulatory or industry initiatives adversely impacting the
Company; risks related to Solvency II; the effect on the Company’s
business of the highly competitive nature of its industry, including the
effect of new entrants to, competing products for and consolidation in
the (re)insurance industry; consolidation of competitors, customers and
insurance and reinsurance brokers; increasing barriers to free trade and
the free flow of capital; international restrictions on the writing of
reinsurance by foreign companies and government intervention in the
natural catastrophe market; the effect of Organization for Economic
Co-operation and Development or European Union (“EU”) measures to
increase the Company’s taxes and reporting requirements; the effect of
the vote by the U.K. to leave the EU; changes in regulatory regimes and
accounting rules that may impact financial results irrespective of
business operations; the Company’s need to make many estimates and
judgments in the preparation of its financial statements; and other
factors affecting future results disclosed in RenaissanceRe’s filings
with the SEC, including its Annual Reports on Form 10-K and Quarterly
Reports on Form 10-Q.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171004006274/en/
Source: RenaissanceRe Holdings Ltd.
Investors:
RenaissanceRe Holdings Ltd.
Aditya Dutt,
441-239-4778
Senior Vice President and Treasurer
or
Media:
RenaissanceRe
Holdings Ltd.
Elizabeth Tillman, 212-238-9224
Director –
Communications
or
Kekst and Company
Peter Hill / Dawn
Dover, 212-521-4800
