14 January 2021Insurance

RenRe braces for $345m hit from cat and COVID-19 losses in Q4 2020

Bermuda-based RenaissanceRe Holdings has warned that losses from weather-related catastrophe events and the ongoing COVID-19 pandemic will have a net negative impact of around $345 million on its fourth quarter 2020 results.

The reinsurer reported that estimated losses from catastrophe events in the second half of the year will have a net negative impact of approximately $170 million on its Q4 results of operations.

These expected losses relate to Hurricanes Delta, Zeta and Eta and other events, as well as changes in estimated losses from Q3 2020 weather-related catastrophe events.

Meanwhile, losses related to the COVID-19 pandemic will have an estimated net negative impact of approximately $175 million on Q4 results of operations, primarily driven by approximately $165 million of losses in the property segment.

RenRe noted that these principally relate to the cost of claims incurred but not yet reported, with respect to exposures such as business interruption coverage. The remaining exposure came via the casualty and specialty segments.

“In the fourth quarter, people and communities around the world were negatively impacted by persistent weather-related catastrophe activity as well as the ongoing consequences of the COVID-19 pandemic," said Kevin O’Donnell, president and chief executive officer of RenaissanceRe.

“Consistent with our long-term track record, our strong capitalisation enabled us to meet the quarter’s challenges while continuing to build trusted long-term partnerships,” he added.

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