RenaissanceRe Holdings Ltd. announced it estimates losses from third quarter 2019 catastrophe events will have an estimated net negative impact of approximately $155 million on its third quarter 2019 results.
The estimated losses include Typhoon Faxai and Hurricane Dorian, which will have an estimated net negative impact of approximately $100 million and $55 million, respectively. The company said it expects to report modest net income and operating income available to common shareholders for the third quarter of 2019.
On Oct. 12, 2019, Typhoon Hagibis made landfall in Japan with sustained winds of 85 miles per hour and reported gusts over 100 miles per hour. Typhoon Hagibis affected an area of nearly 85,000 square miles, including the region impacted by Typhoon Faxai, causing widespread flooding and damage, said RenaissanceRe in a statement. The company said it is in the preliminary stage of assessing the impact of this typhoon, which will be reflected in its fourth quarter financial results.
“We extend our sympathies to all those affected by recent catastrophic events and recognize the significant human impact, particularly in the Bahamas and Japan,” said Kevin J. O’Donnell, CEO of RenaissanceRe. “As always, we hope to improve the resilience and sustainability of communities by supporting recovery and rebuilding efforts through rapid payment of claims and superior service to our customers.”
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 non-controlling interest. The company said its estimate of net negative impact are based on a review of its potential exposures, preliminary discussions with certain counterparties and catastrophe modeling techniques.
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