RenaissanceRe (RNR) Sees $90M Net Negative Impact from October 2017 California Wildfires

RenaissanceRe Holdings Ltd. (NYSE: RNR) (“RenaissanceRe” or the “Company”) today announced it currently estimates that losses from the October 2017 California Wildfires will have a net negative impact of $90 million on its fourth quarter 2017 results of operations. The October 2017 California Wildfires caused widespread damage to both personal and commercial property in and around the impacted regions.

Kevin J. O’Donnell, CEO of RenaissanceRe, commented: "We extend our sympathies to all those affected by the October 2017 California Wildfires. This catastrophe once again highlights the critical role that the insurance and reinsurance industry plays in protecting people and rebuilding communities in the wake of natural disasters. As we have demonstrated consistently in the past, we stand ready to serve our customers in responding to the losses and promptly paying claims."

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 the October 2017 California Wildfires remains, driven by the magnitude and recent occurrence, 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. Accordingly, the Company’s actual net negative impact from the October 2017 California Wildfires will vary from this preliminary estimate, perhaps materially. Updated loss estimates related to the October 2017 California Wildfires will be reflected in RenaissanceRe’s fourth quarter 2017 results, when reported.

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