Bermuda-based RenaissanceRe Holdings announced that based on its initial assessment, the “impact of the Chilean earthquake and windstorm Xynthia on its financial results (net of reinstatement premiums, retrocessional recoveries and non-controlling interest) will be significant and could be material.” The bulletin did not present monetary estimates, as RenRe indicated the amounts could not be determined with any accuracy as yet.
However, RenRe added that “based on a review of the information currently available to the company, and subject to a range of current estimates and assumptions, the company currently expects to report a profit for the first quarter of 2010 (assuming the non-occurrence of additional severe insured catastrophe events during the remainder of the quarter and subject to normal volatility affecting assumptions underlying the company’s financial performance).”
RenRe said its preliminary estimate of losses from the two events is “based on initial industry insured loss estimates, market share analysis, the application of its modeling techniques, and a review of its in-force contracts. It is difficult at this time to provide an accurate estimate of the financial impact of these events on the company, including as a result of the preliminary nature of the information available, inadequacies in the data provided thus far by industry participants, the magnitude and recent occurrence of the events, the expected lengthy claims development period, and other factors.”
The reinsurer’s bulletin cited the figures that have been advanced so far – between $2 and $10 billion for the Chilean earthquake, and between €1 and €3 billion ($1.37 and $4.1 billion) for windstorm Xynthia. RenRe added that due to the “various factors described above, meaningful uncertainty remains regarding these industry loss estimates.”
Source: RenaissanceRe Holdings – www.renre.com
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