RenaissanceRe Holdings Ltd. announced it currently estimates that the cost of claims from third quarter 2018 catastrophe events will have an estimated net negative impact of approximately $155 million on its third quarter 2018 results.
The estimated losses for these events are primarily driven by Typhoon Jebi and Hurricane Florence, which will have an estimated net negative impact of approximately $70 million and $55 million, respectively, said RenaissanceRe in a statement. Losses from the other third quarter 2018 catastrophe events, including Typhoons Mangkhut and Trami, and the California wildfires, will have an estimated net negative impact of approximately $30 million.
The company said it expects to report modest net income available to common shareholders for the third quarter of 2018.
“It was an active quarter for catastrophic events around the world, most notably in Japan and the United States, and we extend our sympathies to all those affected,” commented Kevin J. O’Donnell, CEO of RenaissanceRe.
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. RenaissanceRe said its estimates of net negative impact are based on a review of its potential exposures, preliminary discussions with certain counterparties and catastrophe modeling techniques. However, “meaningful uncertainty regarding the estimates” remains, said the company.
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