RenaissanceRe Announces $625 Million Initial Estimated Net Negative Impact from Hurricanes Harvey, Irma and Maria and the Mexico City Earthquake
PEMBROKE,
The Company currently estimates that losses from Hurricanes Harvey and Irma will have a net negative impact of approximately
In addition, the Company currently estimates that the combined losses from Hurricane Maria and the Mexico City Earthquake will have a net negative impact of approximately
Net negative impact includes the sum of estimates of net claims and claim expenses incurred, earned reinstatement premiums assumed and ceded, lost profit commissions and redeemable noncontrolling interest. The Company’s estimates are based on a review of its potential exposures, preliminary discussions with certain counterparties and catastrophe modeling techniques. Meaningful uncertainty regarding the estimates and the nature and extent of the losses from these events remains, driven by the magnitude and recent occurrence of each event, relatively limited claims data received to date, the contingent nature of business interruption and other exposures, potential uncertainties relating to reinsurance recoveries and other factors inherent in loss estimation, among other things. The Company believes these estimates may be even more uncertain for the two more recent events, Hurricane Maria and the Mexico City Earthquake because, among other things, recovery, insurance loss adjusting and exposure estimates are at earlier stages. Furthermore, seismic events such as the Mexico City Earthquake generally have longer development periods than windstorm events, which may be amplified in this instance by dynamics such as the risk of geological liquefaction and the potential for uncertainty in claims adjudication. In respect of Hurricane Maria, recovery efforts are ongoing and expanding, with power outages, infrastructure damage, communications disruptions and other issues complicating loss mitigation and estimation. Accordingly, the Company’s actual net negative impact from all four events noted above, both individually and in the aggregate, will vary from these preliminary estimates, perhaps materially. Updated loss estimates related to these events will be reflected in RenaissanceRe’s third quarter 2017 results, when reported.
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Cautionary Statement Regarding Forward-Looking Statements
Any forward-looking statements made in this Press Release reflect RenaissanceRe’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are subject to numerous factors that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements, including the following: the frequency and severity of catastrophic and other events that the Company covers; the effectiveness of the Company’s claims and claim expense reserving process; the Company’s ability to maintain its financial strength ratings; the effect of climate change on the Company’s business; the effect of
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