RenaissanceRe Holdings Ltd. said Thursday's first-quarter results would hit $ 180 million from Winter Storm Uri, the major wind and ice storm that hit the United States in February 2021 and caused significant damage in Texas and elsewhere.
As a result, Pembroke, Bermuda-based RenaissanceRe expects to report a net loss for the first quarter of 2021.
RenaissanceRes estimates of net negative impact – the sum of estimates of net claims and claims expenses incurred, earned reinstatement and earned rewards premiums and lost profit commissions and redeemable non-controlling interest rates – based on an examination of its potential exposures, preliminary discussions with certain counterparties and actuarial modeling techniques.
The reinsurer emphasized the estimates include "Significant uncertainty."
US severe weather and winter losses have so far cost $ 1
Although the claims rate seems high, there seems to be anecdotal evidence that the severity may be relatively low, with policyholders retaining a larger share of claims, reducing costs for insurers, Jeffries said.