RenaissanceRe Holdings Ltd. (RenRe), the Bermuda-based reinsurance company, expects to report a net loss for the first-quarter of 2021, with losses related to Winter storm Uri forecast to have a net negative impact of $180 million on its results of operation for the period.
The Uri losses are net, so after the reinsurer has taken into account its retrocessional reinsurance arrangements, and also any share of losses attributable to investors in its third-party capital ventures.
As a result of the impacts of the major wind and ice storm, RenRe has said that it expects to report a net loss attributable to common shareholders and nominal operating income available to common shareholders for Q1.
Kevin J. O’Donnell, President and Chief Executive Officer (CEO) of RenRe, commented: “We extend our sympathies to all those affected by Winter Storm Uri. Consistent with our track record, we will support our customers in understanding and managing this U.S. winter storm while helping communities recover through rapid payment of claims.
“We are in a strong capital position heading into the mid-year renewals and anticipate additional opportunities to write attractive risk.”
The reinsurer warns that meaningful uncertainty regarding the estimates and the nature and extent of the losses from catastrophe events remains.
RenRe explains that the net negative impact of $180 million is based on a review of its potential exposures, preliminary discussions with certain counterparties, and actuarial modeling techniques. However, its actual net negative impact may vary from these estimates, perhaps materially.