Business & Finance
Business and Finance
Business and Finance
Tue, April 19, 2011
Mon, April 18, 2011 RenaissanceRe Announces $220 Million Initial Estimated Net Negative Impact From the Tohoku Earthquake
PEMBROKE, Bermuda--([ BUSINESS WIRE ])--RenaissanceRe Holdings Ltd. (NYSE: RNR) (aRenaissanceRea or the aCompanya) today announced its initial loss estimate from the Tohoku earthquake and subsequent tsunami (collectively, the aTohoku earthquakea), which impacted the northeastern coast of Japan on March 11, 2011. The Company currently expects that losses from the Tohoku earthquake will have a net negative impact of approximately $220 million on its first quarter 2011 results.
Net negative impact includes the sum of estimates of net claims and claim expenses incurred, earned reinstatement premiums assumed and ceded, lost profit commissions, redeemable noncontrolling interest and other income in respect of ceded reinsurance contracts accounted for at fair value. The Companya™s estimates are based on a review of its potential exposures, preliminary discussions with certain counterparties and catastrophe modeling techniques. Given the magnitude and recent occurrence of this event, limited claims data received to date, the contingent nature of business interruption and other exposures, potential uncertainties relating to reinsurance recoveries and other uncertainties inherent in loss estimation, meaningful uncertainty remains regarding losses from this event. Accordingly, the Companya™s actual net negative impact from this event will likely vary from this preliminary estimate, perhaps materially so.
RenaissanceRe Holdings Ltd. is a global provider of reinsurance and insurance. The Companya™s business consists of three segments: (1) Reinsurance, which includes catastrophe reinsurance, specialty reinsurance and certain property catastrophe and specialty joint ventures, (2) Lloyda™s, which includes reinsurance and insurance business written through RenaissanceRe Syndicate 1458, and (3) Insurance, which principally includes the Companya™s Bermuda-based insurance operations.
Cautionary Statement under aSafe Harbora Provisions of the Private Securities Litigation Reform Act of 1995: Statements made in this release contain information about the Companya™s future business prospects. These statements may be considered aforward-looking.a These statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements. For further information regarding cautionary statements and factors affecting future results, please refer to RenaissanceRe Holdings Ltd.a™s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2010 and its quarterly reports on Form 10-Q.
