RenaissanceRe: $90M Estimated Net Negative Impact from California Wildfires

RenaissanceRe Holdings Ltd. said it 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.

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. 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, according to RenaissanceRe.

Updated loss estimates related to the October 2017 California Wildfires will be reflected in RenaissanceRe’s fourth quarter 2017 results when reported.

RenaissanceRe is a global provider of reinsurance and insurance. The company provides property/casualty and specialty reinsurance and certain insurance solutions to customers principally through intermediaries.