RenaissanceRe Announces $220 Million Initial Estimated Net Effect From Japan Quake (RNR)
RenaissanceRe Holdings (NYSE: RNR) today announced its initial loss estimate from the Tohoku earthquake and subsequent tsunami, 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 Company'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 Company's actual net negative impact from this event will likely vary from this preliminary estimate, perhaps materially so.
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