The impacts of Hurricane Dorian and Typhoon Faxai have driven down Bermudian reinsurer RenaissanceRe’s (RenRe) third quarter operating income by $4.8 million against the prior year quarter.
Catastrophe events for the quarter resulted in an underwriting loss of $181.9 million and added 20.6% to the combined ratio.
RenRe posted an overall underwriting loss of $3.4 million and a combined ratio (CR) of 100.4% for the quarter, against a $29 million loss and 105.5% CR reported in Q3 2018.
The property segment incurred an underwriting loss of $7.7 million and had a combined ratio of 101.7% in the current quarter.
Casualty and specialty generated an underwriting income of $4.5 million and had a combined ratio of 99.0%.
The firm reported an operating income of $13 million against $17.8 million in the prior year quarter.
The net negative impact on third quarter net income available to RenRe has been pegged at $154.9 million, as a result of Dorian and Faxai.
Net income of $36.7 million compares to $32.7 million for the third quarter period in 2018.
Meanwhile, gross premiums written increased by $235.4 million, or 37.6%, to $861.1 million, against the prior year quarter, driven by an increase of $222.4 million in the casualty and specialty segment and an increase of $13 million in the property segment.
“In an active period for the industry, we assisted our customers in managing the quarter’s catastrophic events while rapidly paying their claims,” commented Kevin J. O’Donnell, President and Chief Executive Officer of RenaissanceRe.
“I am proud of our team’s hard work during the quarter and pleased to report positive net and operating income and growth in tangible book value per share plus accumulated dividends,” he added
“Our value proposition lies in quantifying risk and absorbing large losses as they occur, contributing to the resilience of communities and building stronger relationships with our partners.
“As we look forward to 2020, these strong relationships combined with our differentiated strategy will provide us with many opportunities to continue delivering long-term value.”