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RenRe CEO says 'idiosyncratic' losses led to adverse development in specialty segment

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RenRe CEO says 'idiosyncratic' losses led to adverse development in specialty segment

executivesdo not expect loss events that contributed to adverse development in the company'sspecialty reinsurance segment during the first quarter to recur.

The adversedevelopment on prior accident years net claims and claim expenses of $3.5 millionincluded a $20.8 million increase in reserves for claims and claim expenses associatedwith six event-driven claims, which included a bankruptcy surety claim, two trainderailments, a dam failure and an energy loss, CFO and COO Jeffrey Kelly said. Partiallyoffsetting this was favorable reserve development on attritional losses of $17 million.

Kellyand President and CEO Kevin O'Donnell stressed multiple times during the call thatthey do not take away any trends in these and thus do not think there is a needto change any process.

"Theselow-frequency, high-severity loss events were not a surprise but a characteristicof the portfolios from which they emanated," O'Donnell said. "The losseswe experienced over the quarter are idiosyncratic and not something I expect tocontinue."