RenaissanceRe Holdings Ltd. has issued an initial assessment of the impact of Hurricane Katrina on its financial results. Bermuda’s premier property reinsurer gave no precise figures, indicating that “due to the extremely limited claims data, as well as potential legal and regulatory developments related to potential losses, the Company noted that it is difficult to provide an estimate of the financial impact of this event on the Company.”
It did say: “ln looking at a broad range of possible outcomes, the Company estimated that the net negative impact on its financial results from Hurricane Katrina will be approximately 1 percent of the aggregate insurance industry losses arising from the hurricane.” Using the latest median figure of around $40 billion, that would indicate losses in the $400 million range.
“The estimates for the Company and the industry include losses arising in all sectors of insurance and reinsurance, including residential property, commercial property, marine, energy and any other affected classes and coverages, including business interruption and privately insured flood, the announcement continued. RenRe noted that its “estimate is preliminary, and that an assessment of the storm’s impact on the industry, and on the Company, is subject to substantial uncertainty in light of the unique features of this event.”
It also said, “because of the storm, it does not expect to meet its previously announced earnings guidance for 2005. However, the Company noted that it expects to be profitable for the full year of 2005, assuming no significant catastrophe loss events for the balance of the year.”
Chairman and CEO James N. Stanard commented: “We extend our sympathies to the victims of this hurricane, and recognize its enormous human impact. As we have demonstrated in prior catastrophes, we stand ready to serve our customers in responding to the losses and promptly paying claims.”
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