Bermuda-based reinsurer RenaissanceRe Holdings Ltd. (RenRe) has reported that losses from weather-related catastrophe events and the ongoing COVID-19 pandemic will push the firm to a fourth-quarter operating loss.
The reinsurer has announced that estimated losses from catastrophe events will have a net negative impact of roughly $170 million on its Q4 2020 results of operations.
RenRe explains that these weather-related cat events occurred in both the third and fourth quarter of the year, and includes Hurricanes Delta, Zeta, and Eta, alongside aggregate losses associated with these and other events, and also changes in estimated losses from Q3 2020 catastrophe events.
At the same time, RenRe has announced that estimated losses related to the COVID-19 pandemic will have a net negative impact of around $175 million on its Q4 2020 results of operations.
The firm explains that of this total, approximately $165 million of losses relate to the Property segment, largely representing the cost of claims incurred but not yet reported, with respect to exposures such as business interruption coverage, and with the balance pertaining to the Casualty and Specialty segment.
The company’s President and Chief Executive Officer (CEO), Kevin J. O’Donnell, said: “In the fourth quarter, people and communities around the world were negatively impacted by persistent weather-related catastrophe activity as well as the ongoing consequences of the COVID-19 pandemic.
“We extend our sympathies to all those affected by these tragedies. Consistent with our long-term track record, our strong capitalization enabled us to meet the quarter’s challenges while continuing to build trusted long-term partnerships.”
In Q3 2020, RenRe fell to an underwriting loss of $206.1 million as its combined ratio hit 120.6%, driven by large loss events which resulted in a net negative impact of $422.4 million.