RenaissanceRe Holdings has said according to its estimates the recent natural disasters in Australia and New Zealand would have a net negative impact of around $220m in its first quarter results of 2011, which does'nt include recent earthquake in Japan.
RenaissanceRe estimated that the negative impact of the earthquake in Christchurch, New Zealand would be approximately $190m, while the Australian 2011 flooding would be around $30m, in its first quarter results of this year.
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 equity in the net claims and claim expenses of Top Layer Re.
RenaissanceRe said the estimates are based on a review of its potential exposures and discussions with certain counterparties.
The reinsurur also added that the Japanese earthquake that struck on 11 March 2011, will be significant and is likely to be material, in its first quarter results, based upon the current publicly available industry insured loss estimates, market share analysis, modeling techniques and a review of its in-force contracts.
RenaissanceRe CEO Neill Currie said that the strong financial position will enable the company to pay valid claims promptly and provide additional reinsurance capacity during this challenging time.