Benzinga | Jan 13, 2021 04:19PM EST

RenaissanceRe Sees Negative $170M Impact To Q4 Results Of Operations From Weather-Related Catastrophe Events; Sees Net Negative $175M Impact Related To COVID-19 Pandemic

RenaissanceRe Holdings Ltd. (NYSE:RNR) (the "Company" or "RenaissanceRe") today announced it estimates that losses from weather-related catastrophe events and certain losses related to the COVID-19 pandemic will have a net negative impact on the Company's fourth quarter 2020 results of operations. For the fourth quarter of 2020, the Company expects to report net income available to common shareholders; however, it expects to report an operating loss attributable to common shareholders.

The Company currently estimates that losses from weather-related catastrophe events which occurred in both the third and fourth quarters of 2020 will have an estimated net negative impact of approximately $170 million on its fourth quarter 2020 results of operations. This net negative impact estimate includes Hurricanes Delta, Zeta and Eta, as well as aggregate losses associated with these and other events, and changes in estimated losses from third quarter 2020 weather-related catastrophe events.

In addition, the Company currently estimates that losses related to the COVID-19 pandemic will have an estimated net negative impact of approximately $175 million on its fourth quarter 2020 results of operations. This estimated net negative impact is primarily driven by approximately $165 million of losses in the Property segment, principally representing the cost of claims incurred but not yet reported, with respect to exposures such as business interruption coverage, and with the balance pertaining to the Casualty and Specialty segment.

Kevin J. O'Donnell, President and Chief Executive Officer of RenaissanceRe, commented: "In the fourth quarter, people and communities around the world were negatively impacted by persistent weather-related catastrophe activity as well as the ongoing consequences of the COVID-19 pandemic. We extend our sympathies to all those affected by these tragedies. Consistent with our long-term track record, our strong capitalization enabled us to meet the quarter's challenges while continuing to build trusted long-term partnerships."