13 April 2017News

RenRe expects $30m hit from UK Ogden rate cut

Bermuda-based RenaissanceRe Holdings (RenRe) has estimated that the pre-tax impact of the Ogden rate change on its carried reserves is approximately $30 million, and will be recognised in the first quarter of 2017.

The company said that the majority of the reserve increase relates to a limited number of UK medical malpractice contracts within its casualty and specialty segment.

RenRe also pointed out that due to the complexity of factors contributing to the change in reserve estimates, the ultimate impact to the company's reserves as a result of the change in the Ogden rate may vary from these estimates.

At the end of February the UK Ministry of Justice announced that from mid-March it was reducing the Ogden rate, which is the discount rate used to calculate lump sum awards in UK bodily injury cases.

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More on this story

1 February 2017   RenaissanceRe Holdings (RenRe) has reported net income of $69.4 million in the fourth quarter of 2016, a fall from the $92.2 million it reported in the fourth quarter of 2015. However, the Q4 figures take RenRe’s total 2016 net income to $480.6 million, up on the $408.8 million it made in 2015.
14 December 2016   RenaissanceRe’s senior vice president, chief investment officer and treasurer, Todd Fonner is stepping down as of end of March 2017; the company is now assigning his responsibilities to two of its senior executives.
26 July 2017   Bermuda-based RenaissanceRe (RenRe) has reported that second quarter 2017 net income came to $171.1 million, an increase on the $136.3 million it made in the second quarter of 2016.