RenaissanceRe Holdings Ltd. estimated losses from certain catastrophe events will have a net negative impact of approximately $725 million on the company’s third quarter 2021 results.
This estimate is primarily composed of net negative impacts of approximately $440 million from Hurricane Ida in August 2021 and approximately $210 million from the severe flooding in northwestern Europe in July 2021. In addition, losses from other catastrophe events, as well as aggregate losses associated with these and other events, contributed to the estimated net negative impact.
In a separate announcement, Arch Capital Group Ltd. reported that its 2021 third quarter results will be negatively affected by Hurricane Ida and the July flooding events in central Europe, as well as from other minor global events.
As a result, the re/insurer has established a range of pre-tax catastrophe losses of $330 million to $345 million in the 2021 third quarter across its property/casualty business segments, net of reinsurance recoveries and reinstatement premiums.
Arch said its estimates are commensurate with estimated insured losses across the global property/casualty insurance industry in excess of $45 billion this quarter, comprised of industry estimates of approximately $30 billion for Hurricane Ida, $12 billion for the European floods and over $5 billion for other global events. Approximately two-thirds of Arch’s losses relate to its reinsurance segment.
Both Bermuda-based companies emphasize that there remain significant uncertainties around the ultimate number of claims and scope of damage resulting from these events.
Source: RenaissanceRe and Arch Capital
Photograph: Nathan Fabre checks on his home and boat destroyed by Hurricane Ida, on Sunday, Sept. 5, 2021, in Lafitte, La. “We lost everything,” said Fabre about the destruction of his home. Photo credit: AP Photo/John Locher.
*This story ran previously in our sister publication Insurance Journal.