Bermudian reinsurance firm RenaissanceRe has pre-announced third-quarter 2018 catastrophe losses of $155 million net, largely driven by Typhoon Jebi and Hurricane Florence.
RenaissanceRe expects an estimated net negative impact to its Q3 results of roughly $155 million, with Typhoon Jebi set to drive around $70 million of the losses and hurricane Florence another $55 million.
Other third quarter 2018 catastrophe events, including Typhoons Mangkhut and Trami, and the California wildfires, are expected to result in losses driving a further net negative impact of roughly $30 million.
The $155 million of Q3 catastrophe losses have come in higher than most of the equity analyst firms expected.
As a result of the catastrophe losses, RenRe said that it only expects to report a modest net income available to its common shareholders for Q3 2018 when its results are revealed in the coming weeks.
Kevin J. O’Donnell, CEO of RenaissanceRe, commented on the announcement, “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. Consistent with our 25-year track record as a global reinsurer, we stand ready to support all of our cedents by rapidly paying their claims and continuing to deliver on our promise to provide superior customer relationships.”
With the impact RenRe has announced being net, it’s assumed that the losses are after collections from retrocession and also sharing the impacts with third-party investors in RenRe’s various managed catastrophe vehicles.
RenRe’s loss announcement follows one from Swiss Re, which revealed a $1.4 billion impact from catastrophes and man-made losses during the quarter this morning.
The announcements reflect the fact that despite there being no single major loss, the third-quarter of 2018 will have eroded a significant profit buffer for many of the reinsurers.
