RenaissanceRe To Adjust 2001-2004 Financial Results
NU Online News Service, Feb. 22, 3:58 p.m. EST?The Pembroke, Bermuda-based reinsurance and insurance company RenaissanceRe Holdings Ltd. said today it is reinstating financial results from the 2001-to-2004 periods because of newly discovered accounting errors from ceded reinsurance, resulting in minor changes to net incomes from those periods.[@@]
The net impact of these corrections is to raise 2001 income by $20.6 million, lower 2002 income by $21.9 million, and increase 2003 income by $1.3 million. The newly adjusted incomes for those periods would now be: $606.3 million for 2003, $342.9 million for 2002, and $184.6 million for 2001.
RenaissanceRe explained that these adjusted amounts reflect the timing of the recognition of reinsurance recoverables as well as the timing of premium ceded on multiyear contracts.
The company also said it has found an error in the timing of the recognition of premium on multiyear ceded reinsurance contracts for the first three quarters of last year.
RenaissanceRe, in its year-end 2004 financial results presentation, scheduled for late afternoon on Feb. 23, is expected to restate this premium.
The premium restatement would result in a $1.5 million fall in 2004 first-quarter income, a $5 million increase in second-quarter income, and a $9 million increase in third-quarter income, as compared with previously released results. Adding up these 2004 changes, the company's shareholders' equity will see a $12.5 million boost.
RenaissanceRe indemnifies insurers against excess losses on natural catastrophes, paying insurance claims that exceed a certain retained amount. The company also offers primary property insurance in the United States and Europe through its subsidiaries.
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