Severe convective storm losses could approach $30bn for Q2: RenRe

Severe convective storm industry losses for the second-quarter of 2023 could approach the $30 billion mark, and RenaissanceRe believes three events have the potential to hit $4 billion each, its CEO said yesterday.

Pointing out on yesterday’s earnings call that public reports on the Q2 2023 US severe convective storms already suggest over $20 billion of insured losses, O’Donnell said that RenaissanceRe expects the figure could “approach $30 billion” once all losses are tallied.

“Due to the prevalence of severe convective storms, the US experienced it’s most active second-quarter of catastrophe losses since 2011,” O’Donnell said

Going on to say that, “Public reports of these losses are already exceeding $20 billion and we expect once the quarter is fully developed this number could approach $30 billion.”

“These events were localised and at least three are likely to exceed $4 billion of industry loss,” he continued.

Adding that, “Taken together, it’s not surprising that at least some of this loss would impact reinsurance.”

We’ve already seen relatively large catastrophe loss disclosures related to this convective storm activity, such as from re/insurer QBE, that raised its catastrophe budget, insurer Travelers whose Q2 cat losses weighed on its results, insurer Allstate which revealed a heavy Q2 cat loss burden as well, and The Hanover whose catastrophe losses pressured its results, plus Selective that said it did not activate its reinsurance program.

Broker reports on the matter conclude that the severe convective storm peril dominated insurance industry catastrophe losses in the first-half of 2023.