RenRe forecasts operating loss on $325m net negative impact in Q3

Bermuda-based RenaissanceRe Holdings has reported that losses from third quarter 2020 catastrophe events will have an estimated net negative impact of approximately $325 million on its results.

For the third quarter of 2020, RenRe anticipates "modest net income", however, it expects to report an "operating loss" attributable to common shareholders.

The estimated losses in the quarter were primarily driven by Hurricanes Laura and Sally, as well as the wildfires in California, Oregon and Washington.

Additionally, losses from other catastrophe events including the August 2020 derecho which impacted the US Midwest, Hurricane Isaias and Typhoon Maysak, as well as aggregate losses associated with these and other events, contributed to the estimated net negative impact. These events caused widespread damage to both personal and commercial property in and around the impacted regions.

The company noted that it is in the preliminary stage of assessing the impact of Hurricane Delta and the continuing impact of the California wildfires beyond the third quarter of 2020. The estimated losses for these events will be reported in its fourth quarter financial results.

Kevin O’Donnell, chief executive officer of RenRe, said: “We extend our sympathies to all those affected by the quarter’s catastrophic events. This elevated wind and wildfire season reinforces the value of reinsurance in ameliorating the growing impact of climate change. Protecting communities from climate-related disaster is an important part of our purpose, which we fulfill through the rapid payment of claims to our customers.”