RenaissanceRe Estimates Net Negative Impact of $325M from Q3 Natural Catastrophes

RenaissanceRe Holdings Ltd. announced it estimates that natural catastrophes during the third quarter of 2020 will have a net negative impact of approximately $325 million.

The estimated net negative impact is primarily driven by losses from Hurricanes Laura and Sally, as well as the wildfires in California, Oregon and Washington. Losses also include claims from other catastrophe events such as the August 2020 derecho that hit the U.S. Midwest, Hurricane Isaias and Typhoon Maysak, as well as aggregate losses associated with these and other events.

For the third quarter of 2020, the company expects to report modest net income available to common shareholders, although it will likely report an operating loss.

RenRe said it is in the preliminary stage of assessing the impact of Hurricane Delta and the continuing impact of the California wildfires beyond the third quarter of 2020. Hurricane Delta, a Category 2 hurricane, made landfall on the Yucatán Peninsula on Oct. 7, 2020, and subsequently in Louisiana on Oct. 9, 2020, causing widespread flooding and damage, including in the region affected by Hurricane Laura. Additionally, the wildfires in California are ongoing, said RenRe, noting that the estimated losses for these events will be reported in the fourth quarter financial results.

Source: RenaissanceRe

Photograph: Children walk through the mud in Holly Beach, La., amid devastation in the aftermath of Hurricane Laura, on Saturday, Aug. 29, 2020. Photo credit: AP Photo/Gerald Herbert.