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RenaissanceRe Reports $495.0 Million of Net Income Available to Common Shareholders and $650.8 Million of Operating Income Available to Common Shareholders in Q2 2024.

  • Annualized return on average common equity of 21.4% and annualized operating return on average common equity of 28.2%.
  • Gross premiums written grew by $773.9 million, or 29.2%, from Q2 2023. Property grew by $350.5 million, or 25.0%, and Casualty and Specialty grew by $423.4 million, or 33.9%.
  • Combined ratio of 81.1% and adjusted combined ratio of 78.6%.
  • Fee income of $84.1 million; up 48.3% from Q2 2023.
  • Net investment income of $410.8 million; up 40.4% from Q2 2023.
  • Repurchased $108.5 million of common shares in the second quarter and an additional $61.2 million of common shares from July 1, 2024 through July 22, 2024.

RenaissanceRe Holdings Ltd. (NYSE: RNR) (“RenaissanceRe” or the “Company”) today announced its financial results for the second quarter of 2024.

Net Income Available to Common Shareholders per Diluted Common Share: $9.41

Operating Income Available to Common Shareholders per Diluted Common Share: $12.41

Underwriting Income

$479.3M

Fee Income

$84.1M

Net Investment Income

$410.8M

Change in Book Value per Common Share: 5.2%

Change in Tangible Book Value per Common Share Plus Change in Accum. Dividends: 7.1%

Operating Return on Average Common Equity, Operating Income (Loss) Available (Attributable) to Common Shareholders, Operating Income (Loss) Available (Attributable) to Common Shareholders per Diluted Common Share, Change in Tangible Book Value per Common Share Plus Change in Accumulated Dividends, Adjusted Combined Ratio, Property Adjusted Combined Ratio and Casualty and Specialty Adjusted Combined Ratio are non-GAAP financial measures; see “Comments on Non-GAAP Financial Measures” for a reconciliation of non-GAAP financial measures.

Kevin J. O’Donnell, President and Chief Executive Officer, said, “We delivered another excellent quarter driven by strong underlying performance from each of our Three Drivers of Profit – underwriting, investment and fee income. The Validus transaction continues to accrete significant value to our shareholders by delivering substantial growth in both premium and invested assets in one of the most favorable business environments in our history. Going forward, our consistent strategy and strong execution will enable our excellent performance to persist and allow us to grow shareholder value at an industry-leading pace.”

Consolidated Financial Results

 

 

Consolidated Highlights

 

 

 

 

 

Three months ended

June 30,

 

(in thousands, except per share amounts and percentages)

2024

 

2023

 

Gross premiums written

$

3,425,495

 

 

$

2,651,621

 

 

Net premiums written

 

2,838,511

 

 

 

2,195,803

 

 

Net premiums earned

 

2,541,315

 

 

 

1,785,262

 

 

Underwriting income (loss)

 

479,336

 

 

 

351,015

 

 

Combined ratio

 

81.1

%

 

 

80.3

%

 

Adjusted combined ratio (1)

 

78.6

%

 

 

80.1

%

 

 

 

 

 

 

Net Income (Loss)

 

 

 

 

Available (attributable) to common shareholders

 

495,046

 

 

 

191,025

 

 

Available (attributable) to common shareholders per diluted common share

$

9.41

 

 

$

4.09

 

 

Return on average common equity - annualized

 

21.4

%

 

 

13.5

%

 

 

 

 

 

 

Operating Income (Loss) (1)

 

 

 

 

Available (attributable) to common shareholders

 

650,846

 

 

 

411,453

 

 

Available (attributable) to common shareholders per diluted common share

$

12.41

 

 

$

8.88

 

 

Operating return on average common equity - annualized (1)

 

28.2

%

 

 

29.1

%

 

 

 

 

 

 

Book Value per Share

 

 

 

 

Book value per common share

$

179.87

 

 

$

129.98

 

 

Quarterly change in book value per share (2)

 

5.2

%

 

 

11.6

%

 

Quarterly change in book value per common share plus change in accumulated dividends (2)

 

5.5

%

 

 

12.0

%

 

 

 

 

 

 

Tangible Book Value per Share (1)

 

 

 

 

Tangible book value per common share plus accumulated dividends (1)

$

186.52

 

 

$

149.48

 

 

Quarterly change in tangible book value per common share plus change in accumulated dividends (1) (2)

 

7.1

%

 

 

13.8

%

(1)

See “Comments on Non-GAAP Financial Measures” for a reconciliation of non-GAAP financial measures.

(2)

Represents the percentage change in value during the periods presented.

Acquisition of Validus

On November 1, 2023, the Company completed its acquisition (the “Validus Acquisition”) of Validus Holdings, Ltd. (“Validus Holdings”), Validus Specialty, LLC (“Validus Specialty”) and the renewal rights, records and customer relationships of the assumed treaty reinsurance business of Talbot Underwriting Limited from subsidiaries of American International Group, Inc. Validus Holdings, Validus Specialty, and their respective subsidiaries collectively are referred to herein as “Validus.”

The results of operations and financial condition include Validus since November 1, 2023. The results of operations for the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023, should be viewed in that context. In addition, the results of operations for three and six months ended June 30, 2024 may not be reflective of the ongoing business of the combined entities.

Three Drivers of Profit: Underwriting, Fee and Investment Income

Underwriting Results - Property Segment: Combined ratio of 53.9%; increase in gross premiums written of 25.0%

 

Property Segment

 

 

 

 

 

 

 

Three months ended

June 30,

 

Q/Q

Change

 

(in thousands, except percentages)

2024

 

2023

 

 

Gross premiums written

$

1,753,098

 

 

$

1,402,606

 

 

25.0

%

 

Net premiums written

 

1,358,660

 

 

 

1,144,655

 

 

18.7

%

 

Net premiums earned

 

980,834

 

 

 

758,686

 

 

29.3

%

 

Underwriting income (loss)

 

451,710

 

 

 

281,010

 

 

 

 

 

 

 

 

 

 

 

Underwriting Ratios

 

 

 

 

 

 

Net claims and claim expense ratio - current accident year

 

36.5

%

 

 

41.3

%

 

(4.8) pts

 

Net claims and claim expense ratio - prior accident years

 

(8.6

)%

 

 

(4.1

)%

 

(4.5) pts

 

Net claims and claim expense ratio - calendar year

 

27.9

%

 

 

37.2

%

 

(9.3) pts

 

Underwriting expense ratio

 

26.0

%

 

 

25.8

%

 

0.2 pts

 

Combined ratio

 

53.9

%

 

 

63.0

%

 

(9.1) pts

 

Adjusted combined ratio (1)

 

51.7

%

 

 

62.8

%

 

(11.1) pts

(1)

See “Comments on Non-GAAP Financial Measures” for a reconciliation of non-GAAP financial measures.

  • Gross premiums written increased by $350.5 million, or 25.0%, driven by:

– a $262.8 million increase in catastrophe, driven by the renewal of business acquired in the Validus Acquisition, in conjunction with the retention of legacy lines, primarily at the June 1, 2024 renewal.

– a $87.7 million increase in other property, reflecting the renewal of business acquired in the Validus Acquisition and organic growth, in both catastrophe and non-catastrophe exposed business.

  • Net premiums written increased by $214.0 million, or 18.7%, driven by the increase in gross premiums written discussed above, partially offset by an increase in ceded premiums written as part of the Company’s gross-to-net strategy.
  • Combined ratio improved by 9.1 percentage points, and adjusted combined ratio, which removes the impact of acquisition related purchase accounting adjustments, improved by 11.1 percentage points, each primarily due to growth in net premiums earned, a lower level of current accident year net losses, and higher prior year favorable development.
  • Net claims and claim expense ratio - current accident year improved by 4.8 percentage points, due to a lower impact from large loss events as compared to Q2 2023. The Q2 2024 Large Loss Events added 9.6 percentage points to the catastrophe class of business and 5.5 percentage points to the other property class of business.
  • Net claims and claim expense ratio - prior accident years reflects net favorable development in the second quarter of 2024, primarily driven by better than expected loss emergence from large catastrophe events across the 2017 to 2023 accident years.
  • Underwriting expense ratio increased 0.2 percentage points, primarily due to:

– a 0.6 percentage point increase in the acquisition expense ratio, driven by the increase in acquisition expenses from purchase accounting adjustments primarily related to the Validus Acquisition, which added 1.8 percentage points to the acquisition expense ratio in the second quarter of 2024, partially offset by changes in the mix of business as a result of the continued relative growth in catastrophe, which has a lower acquisition expense ratio than other property; partially offset by

– a 0.4 percentage point decrease in the operating expense ratio primarily due to higher net premiums earned.

Underwriting Results - Casualty and Specialty Segment: Combined ratio of 98.2% and adjusted combined ratio of 95.6%; increase in gross premiums written of 33.9%

 

Casualty and Specialty Segment

 

 

 

 

 

 

 

Three months ended

June 30,

 

Q/Q

Change

 

(in thousands, except percentages)

2024

 

2023

 

 

Gross premiums written

$

1,672,397

 

 

$

1,249,015

 

 

33.9

%

 

Net premiums written

 

1,479,851

 

 

 

1,051,148

 

 

40.8

%

 

Net premiums earned

 

1,560,481

 

 

 

1,026,576

 

 

52.0

%

 

Underwriting income (loss)

 

27,626

 

 

 

70,005

 

 

 

 

 

 

 

 

 

 

 

Underwriting Ratios

 

 

 

 

 

 

Net claims and claim expense ratio - current accident year

 

67.9

%

 

 

63.3

%

 

4.6 pts

 

Net claims and claim expense ratio - prior accident years

 

(1.5

)%

 

 

(0.1

)%

 

(1.4) pts

 

Net claims and claim expense ratio - calendar year

 

66.4

%

 

 

63.2

%

 

3.2 pts

 

Underwriting expense ratio

 

31.8

%

 

 

30.0

%

 

1.8 pts

 

Combined ratio

 

98.2

%

 

 

93.2

%

 

5.0 pts

 

Adjusted combined ratio (1)

 

95.6

%

 

 

92.9

%

 

2.7 pts

(1)

See “Comments on Non-GAAP Financial Measures” for a reconciliation of non-GAAP financial measures.

  • Gross premiums written increased by $423.4 million, or 33.9%, primarily driven by:

– the renewal of business acquired in the Validus Acquisition, principally in the general casualty and other specialty classes of business, which grew by $255.4 million and $247.8 million, respectively, compared to the second quarter of 2023; and

– organic growth of legacy lines, particularly within other specialty class of business; partially offset by

– a decrease in the professional liability class of business of $94.2 million, driven by changes in premium estimates in the second quarter of 2024 for business underwritten in prior years.

  • Net premiums written increased 40.8%, consistent with the drivers discussed for gross premiums written above, in addition to an overall reduction in our retrocessional purchases.
  • Combined ratio increased by 5.0 percentage points, and adjusted combined ratio, which removes the impact of acquisition related purchase accounting adjustments, increased by 2.7 percentage points, each primarily due to the increase in the net claims and claim expense ratio - current accident year.
  • Net claims and claim expense ratio - current accident year increased by 4.6 percentage points, driven by higher losses in the quarter.
  • Net claims and claim expense ratio - prior accident years reflects net favorable development driven by reported losses generally coming in lower than expected on attritional net claims and claim expenses from the other specialty and credit classes of business.
  • Underwriting expense ratio increased 1.8 percentage points, driven by a 1.7 percentage point increase in the acquisition expense ratio primarily due to the impact of the purchase accounting adjustments relating to the Validus Acquisition.

Fee Income: $84.1 million of fee income, up 48.3% from Q2 2023; increase in both management and performance fees

 

Fee Income

 

 

 

 

 

 

 

Three months ended

June 30,

 

Q/Q

Change

 

(in thousands)

2024

 

2023

 

 

Total management fee income

$

55,327

 

$

43,439

 

$

11,888

 

Total performance fee income (loss) (1)

 

28,750

 

 

13,242

 

 

15,508

 

Total fee income

$

84,077

 

$

56,681

 

$

27,396

(1)

Performance fees are based on the performance of the individual vehicles or products, and may be negative in a particular period if, for example, large losses occur, which can potentially result in no performance fees or the reversal of previously accrued performance fees.

  • Management fee income increased $11.9 million, reflecting growth in the Company’s joint ventures and managed funds, specifically DaVinciRe Holdings Ltd. (“DaVinci”), and Fontana Holdings L.P. (“Fontana”), as well as the addition of fees earned by AlphaCat Managers Ltd., which was acquired as part of the Validus Acquisition.
  • Performance fee income increased $15.5 million, driven by improved underwriting results and prior year favorable development, primarily in DaVinci and certain structured reinsurance products.

Investment Results: Total investment result of $283.3 million; net investment income growth of 40.4%

 

Investment Results

 

 

 

 

 

 

 

Three months ended

June 30,

 

Q/Q

Change

 

(in thousands, except percentages)

2024

 

2023

 

 

Net investment income

$

410,845

 

 

$

292,662

 

 

$

118,183

 

Net realized and unrealized gains (losses) on investments

 

(127,584

)

 

 

(222,781

)

 

 

95,197

 

Total investment result

$

283,261

 

 

$

69,881

 

 

$

213,380

 

Net investment income return - annualized

 

5.7

%

 

 

5.3

%

 

0.4 pts

 

Total investment return - annualized

 

4.1

%

 

 

1.6

%

 

2.5 pts

 

 

 

 

 

 

 

  • Net investment income increased $118.2 million, due to a combination of higher average invested assets, primarily resulting from the Validus Acquisition, and higher yielding assets in the fixed maturity and short term portfolios.
  • Net realized and unrealized losses on investments decreased by $95.2 million, principally driven by:

– lower net realized and unrealized losses on fixed maturity investments trading of $123.3 million, primarily due to generally lower increases in interest rates in the current period as compared to the prior period;

– an increase in net realized and unrealized gains on investment-related derivatives of $75.4 million, primarily as a result of a lower impact from the interest rate movements noted above on interest rate futures, and lower losses on credit default swaps; partially offset by

– an increase in net realized and unrealized losses on catastrophe bonds of $72.3 million, reflective of changes in risk spreads in the wider catastrophe bond market.

  • Total investments were $30.5 billion at June 30, 2024 (December 31, 2023 - $29.2 billion). The weighted average yield to maturity and duration on the Company’s investment portfolio (excluding investments that have no final maturity, yield to maturity or duration) was 6.0% and 2.8 years, respectively (December 31, 2023 - 5.8% and 2.6 years, respectively). 

Other Items of Note

  • Net income attributable to redeemable noncontrolling interests of $224.7 million was primarily driven by:

– strong underwriting results in DaVinci and Vermeer Reinsurance Ltd.; and

– strong net investment income driven by higher average invested assets and higher yielding assets within the investment portfolios of the Company’s joint ventures and managed funds.

  • Raised partner capital of $84.5 million in the second quarter of 2024, primarily in Upsilon RFO Ltd.
  • Returned partner capital of $340.8 million during the second quarter of 2024, including $182.0 million from Medici Funds Ltd. following strong earnings over the last few quarters, resulting in investors rebalancing their position, and $75.0 million from Upsilon Diversified Fund, as a result of the release of collateral associated with prior years’ contracts.
  • Share Repurchases of 485.1 thousand common shares at an aggregate cost of $108.5 million and an average price of $223.73 per common share in the second quarter of 2024. Repurchased an additional 278.6 thousand of common shares at an aggregate cost of $61.2 million from July 1, 2024 through July 22, 2024.



  • Income tax benefit of $20.8 million in the current quarter, primarily driven by a $33.7 million deferred tax benefit resulting from the merger of RenaissanceRe Europe AG and Validus Reinsurance (Switzerland) Ltd completed in the quarter.

Net Negative Impact

Net negative impact on underwriting result includes the sum of (1) net claims and claim expenses incurred, (2) assumed and ceded reinstatement premiums earned and (3) earned and lost profit commissions. Net negative impact on net income (loss) available (attributable) to RenaissanceRe common shareholders is the sum of (1) net negative impact on underwriting result and (2) redeemable noncontrolling interest, both before consideration of any related income tax benefit (expense).

The Company’s estimates of net negative impact are based on a review of the Company’s potential exposures, preliminary discussions with certain counterparties and actuarial modeling techniques. The Company’s actual net negative impact, both individually and in the aggregate, may vary from these estimates, perhaps materially. Changes in these estimates will be recorded in the period in which they occur.

Meaningful uncertainty remains regarding the estimates and the nature and extent of the losses from this catastrophe event, driven by the magnitude and recent nature of the event, the relatively limited claims data received to date, the contingent nature of business interruption and other exposures, potential uncertainties relating to reinsurance recoveries and other factors inherent in loss estimation, among other things.

Net negative impact on the segment underwriting results and consolidated combined ratio

 

 

 

 

 

Three months ended June 30, 2024

Q2 2024 Large

Loss Events (1)

 

 

(in thousands, except percentages)

 

 

 

Net negative impact on Property segment underwriting result

$

(63,049

)

 

 

Net negative impact on Casualty and Specialty segment underwriting result

 

 

 

 

Net negative impact on underwriting result

$

(63,049

)

 

 

Percentage point impact on consolidated combined ratio

 

2.5

 

 

 

 

 

 

Net negative impact on the consolidated financial statements

 

 

 

 

 

Three months ended June 30, 2024

Q2 2024 Large

Loss Events (1)

 

 

(in thousands)

 

 

 

Net claims and claims expenses incurred

$

(79,058

)

 

 

Assumed reinstatement premiums earned

 

12,393

 

 

 

Ceded reinstatement premiums earned

 

(155

)

 

 

Earned (lost) profit commissions

 

3,771

 

 

 

Net negative impact on underwriting result

 

(63,049

)

 

 

Redeemable noncontrolling interest

 

12,111

 

 

 

Net negative impact on net income (loss) available (attributable) to RenaissanceRe common shareholders

$

(50,938

)

 

 

 

 

 

(1)

“Q2 2024 Large Loss Events” includes: a series of severe convective storms that impacted the southern and Midwest United States; the Hualien earthquake which impacted Taiwan in April 2024; and certain aggregate loss contracts triggered during 2024.

Conference Call Details and Additional Information

Non-GAAP Financial Measures and Additional Financial Information

This Press Release includes certain financial measures that are not calculated in accordance with generally accepted accounting principles in the U.S. (“GAAP”) including “operating income (loss) available (attributable) to RenaissanceRe common shareholders,” “operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted,” “operating return on average common equity - annualized,” “tangible book value per common share,” “tangible book value per common share plus accumulated dividends,” “adjusted combined ratio,” “property adjusted combined ratio” and “casualty and specialty adjusted combined ratio.” A reconciliation of such measures to the most comparable GAAP figures in accordance with Regulation G is presented in the attached supplemental financial data.

Please refer to the “Investors - Financial Reports - Financial Supplements” section of the Company’s website at www.renre.com for a copy of the Financial Supplement which includes additional information on the Company’s financial performance.

Conference Call Information

RenaissanceRe will host a conference call on Thursday, July 25, 2024 at 10:00 a.m. ET to discuss this release. Live broadcast of the conference call will be available through the “Investors - Webcasts & Presentations” section of the Company’s website at www.renre.com.

About RenaissanceRe

RenaissanceRe is a global provider of reinsurance and insurance that specializes in matching desirable risk with efficient capital. The Company provides property, casualty and specialty reinsurance and certain insurance solutions to customers, principally through intermediaries. Established in 1993, RenaissanceRe has offices in Bermuda, Australia, Canada, Ireland, Singapore, Switzerland, the United Kingdom and the United States.

Cautionary Statement Regarding Forward-Looking Statements

Any forward-looking statements made in this Press Release reflect RenaissanceRe’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company may also make forward-looking statements with respect to its business and industry, such as those relating to its strategy and management objectives, plans and expectations regarding its response and ability to adapt to changing economic conditions, market standing and product volumes, estimates of net negative impact and insured losses from loss events, and the Validus Acquisition and its impact on the Company’s business, among other things. These statements are subject to numerous factors that could cause actual results to differ materially from those addressed by such forward-looking statements, including the following: the Company’s exposure to natural and non-natural catastrophic events and circumstances and the variance it may cause in the Company’s financial results; the effect of climate change on the Company’s business, including the trend towards increasingly frequent and severe climate events; the effectiveness of the Company’s claims and claim expense reserving process; the effect of emerging claims and coverage issues; the performance of the Company’s investment portfolio and financial market volatility; the effects of inflation; the ability of the Company’s ceding companies and delegated authority counterparties to accurately assess the risks they underwrite; the Company’s ability to maintain its financial strength ratings; the Company’s reliance on a small number of brokers; the highly competitive nature of the Company’s industry; the historically cyclical nature of the (re)insurance industries; collection on claimed retrocessional coverage, and new retrocessional reinsurance being available on acceptable terms or at all; the Company’s ability to attract and retain key executives and employees; the Company’s ability to successfully implement its business strategies and initiatives; difficulties in integrating Validus; the Company’s exposure to credit loss from counterparties; the Company’s need to make many estimates and judgments in the preparation of its financial statements; the Company’s exposure to risks associated with its management of capital on behalf of investors in joint ventures or other entities it manages; changes to the accounting rules and regulatory systems applicable to the Company’s business, including changes in Bermuda and U.S. laws and regulations; the effect of current or future macroeconomic or geopolitical events or trends, including the ongoing conflicts between Russia and Ukraine, and Israel and Hamas; other political, regulatory or industry initiatives adversely impacting the Company; the Company’s ability to comply with covenants in its debt agreements; the effect of adverse economic factors, including changes in prevailing interest rates; the impact of cybersecurity risks, including technology breaches or failure; a contention by the U.S. Internal Revenue Service that any of the Company’s Bermuda subsidiaries are subject to taxation in the U.S.; the effects of new or possible future tax reform legislation and regulations in the jurisdictions in which the Company operates, including recent changes in Bermuda tax law; the Company’s ability to determine any impairments taken on its investments; the Company’s ability to raise capital on acceptable terms, including through debt instruments, the capital markets, and third party investments in the Company’s joint ventures and managed fund partners; the Company’s ability to comply with applicable sanctions and foreign corrupt practices laws; the Company’s dependence on capital distributions from its subsidiaries; and other factors affecting future results disclosed in RenaissanceRe’s filings with the SEC, including its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.

RenaissanceRe Holdings Ltd.

Summary Consolidated Statements of Operations

(in thousands of United States Dollars, except per share amounts and percentages)

(Unaudited)

 

Three months ended

 

Six months ended

 

June 30,

2024

 

June 30,

2023

 

June 30,

2024

 

June 30,

2023

Revenues

 

 

 

 

 

 

 

Gross premiums written

$

3,425,495

 

 

$

2,651,621

 

 

$

7,416,179

 

 

$

5,441,882

 

Net premiums written

$

2,838,511

 

 

$

2,195,803

 

 

$

6,038,084

 

 

$

4,459,506

 

Decrease (increase) in unearned premiums

 

(297,196

)

 

 

(410,541

)

 

 

(1,052,859

)

 

 

(993,694

)

Net premiums earned

 

2,541,315

 

 

 

1,785,262

 

 

 

4,985,225

 

 

 

3,465,812

 

Net investment income

 

410,845

 

 

 

292,662

 

 

 

801,620

 

 

 

547,040

 

Net foreign exchange gains (losses)

 

(8,815

)

 

 

(13,488

)

 

 

(44,498

)

 

 

(27,991

)

Equity in earnings (losses) of other ventures

 

12,590

 

 

 

7,700

 

 

 

26,717

 

 

 

17,230

 

Other income (loss)

 

169

 

 

 

3,876

 

 

 

119

 

 

 

(430

)

Net realized and unrealized gains (losses) on investments

 

(127,584

)

 

 

(222,781

)

 

 

(341,238

)

 

 

56,670

 

Total revenues

 

2,828,520

 

 

 

1,853,231

 

 

 

5,427,945

 

 

 

4,058,331

 

Expenses

 

 

 

 

 

 

 

Net claims and claim expenses incurred

 

1,309,502

 

 

 

931,211

 

 

 

2,475,625

 

 

 

1,732,411

 

Acquisition expenses

 

644,438

 

 

 

422,545

 

 

 

1,275,359

 

 

 

854,802

 

Operational expenses

 

108,039

 

 

 

80,491

 

 

 

214,223

 

 

 

157,965

 

Corporate expenses

 

35,159

 

 

 

23,371

 

 

 

74,411

 

 

 

36,214

 

Interest expense

 

23,609

 

 

 

14,895

 

 

 

46,713

 

 

 

27,029

 

Total expenses

 

2,120,747

 

 

 

1,472,513

 

 

 

4,086,331

 

 

 

2,808,421

 

Income (loss) before taxes

 

707,773

 

 

 

380,718

 

 

 

1,341,614

 

 

 

1,249,910

 

Income tax benefit (expense)

 

20,848

 

 

 

(5,942

)

 

 

5,476

 

 

 

(34,844

)

Net income (loss)

 

728,621

 

 

 

374,776

 

 

 

1,347,090

 

 

 

1,215,066

 

Net (income) loss attributable to redeemable noncontrolling interests

 

(224,731

)

 

 

(174,907

)

 

 

(469,558

)

 

 

(442,291

)

Net income (loss) attributable to RenaissanceRe

 

503,890

 

 

 

199,869

 

 

 

877,532

 

 

 

772,775

 

Dividends on preference shares

 

(8,844

)

 

 

(8,844

)

 

 

(17,688

)

 

 

(17,688

)

Net income (loss) available (attributable) to RenaissanceRe common shareholders

$

495,046

 

 

$

191,025

 

 

$

859,844

 

 

$

755,087

 

 

 

 

 

 

 

 

 

Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – basic

$

9.44

 

 

$

4.10

 

 

$

16.39

 

 

$

16.75

 

Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – diluted

$

9.41

 

 

$

4.09

 

 

$

16.35

 

 

$

16.71

 

Operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted (1)

$

12.41

 

 

$

8.88

 

 

$

24.59

 

 

$

17.16

 

 

 

 

 

 

 

 

 

Average shares outstanding - basic

 

51,680

 

 

 

45,898

 

 

 

51,679

 

 

 

44,387

 

Average shares outstanding - diluted

 

51,814

 

 

 

45,990

 

 

 

51,821

 

 

 

44,498

 

 

 

 

 

 

 

 

 

Net claims and claim expense ratio

 

51.5

%

 

 

52.2

%

 

 

49.7

%

 

 

50.0

%

Underwriting expense ratio

 

29.6

%

 

 

28.1

%

 

 

29.8

%

 

 

29.2

%

Combined ratio

 

81.1

%

 

 

80.3

%

 

 

79.5

%

 

 

79.2

%

 

 

 

 

 

 

 

 

Return on average common equity - annualized

 

21.4

%

 

 

13.5

%

 

 

19.0

%

 

 

28.9

%

Operating return on average common equity - annualized (1)

 

28.2

%

 

 

29.1

%

 

 

28.4

%

 

 

29.7

%

(1)

See Comments on Non-GAAP Financial Measures for a reconciliation of non-GAAP financial measures.

RenaissanceRe Holdings Ltd.

Summary Consolidated Balance Sheets

(in thousands of United States Dollars, except per share amounts)

 

 

 

 

 

June 30,

2024

 

December 31,

2023

Assets

 

 

 

Fixed maturity investments trading, at fair value

$

22,092,071

 

 

$

20,877,108

 

Short term investments, at fair value

 

4,361,052

 

 

 

4,604,079

 

Equity investments, at fair value

 

114,405

 

 

 

106,766

 

Other investments, at fair value

 

3,809,421

 

 

 

3,515,566

 

Investments in other ventures, under equity method

 

151,608

 

 

 

112,624

 

Total investments

 

30,528,557

 

 

 

29,216,143

 

Cash and cash equivalents

 

1,627,147

 

 

 

1,877,518

 

Premiums receivable

 

8,792,401

 

 

 

7,280,682

 

Prepaid reinsurance premiums

 

1,433,967

 

 

 

924,777

 

Reinsurance recoverable

 

4,854,735

 

 

 

5,344,286

 

Accrued investment income

 

225,671

 

 

 

205,713

 

Deferred acquisition costs and value of business acquired

 

1,815,617

 

 

 

1,751,437

 

Deferred tax asset

 

703,097

 

 

 

685,040

 

Receivable for investments sold

 

558,917

 

 

 

622,197

 

Other assets

 

290,018

 

 

 

323,960

 

Goodwill and other intangible assets

 

737,462

 

 

 

775,352

 

Total assets

$

51,567,589

 

 

$

49,007,105

 

Liabilities, Noncontrolling Interests and Shareholders’ Equity

 

 

 

Liabilities

 

 

 

Reserve for claims and claim expenses

$

20,740,928

 

 

$

20,486,869

 

Unearned premiums

 

7,696,980

 

 

 

6,136,135

 

Debt

 

1,960,167

 

 

 

1,958,655

 

Reinsurance balances payable

 

3,387,484

 

 

 

3,186,174

 

Payable for investments purchased

 

778,369

 

 

 

661,611

 

Other liabilities

 

489,458

 

 

 

1,021,872

 

Total liabilities

 

35,053,386

 

 

 

33,451,316

 

Redeemable noncontrolling interests

 

6,335,308

 

 

 

6,100,831

 

Shareholders’ Equity

 

 

 

Preference shares

 

750,000

 

 

 

750,000

 

Common shares

 

52,421

 

 

 

52,694

 

Additional paid-in capital

 

2,048,921

 

 

 

2,144,459

 

Accumulated other comprehensive income (loss)

 

(13,409

)

 

 

(14,211

)

Retained earnings

 

7,340,962

 

 

 

6,522,016

 

Total shareholders’ equity attributable to RenaissanceRe

 

10,178,895

 

 

 

9,454,958

 

Total liabilities, noncontrolling interests and shareholders’ equity

$

51,567,589

 

 

$

49,007,105

 

 

 

 

 

Book value per common share

$

179.87

 

 

$

165.20

 

RenaissanceRe Holdings Ltd.

Supplemental Financial Data - Segment Information

(in thousands of United States Dollars, except percentages)

(Unaudited)

 

Three months ended June 30, 2024

 

Property

 

Casualty and

Specialty

 

Other

 

Total

Gross premiums written

$

1,753,098

 

 

$

1,672,397

 

 

$

 

 

$

3,425,495

 

Net premiums written

$

1,358,660

 

 

$

1,479,851

 

 

$

 

 

$

2,838,511

 

Net premiums earned

$

980,834

 

 

$

1,560,481

 

 

$

 

 

$

2,541,315

 

Net claims and claim expenses incurred

 

273,354

 

 

 

1,036,148

 

 

 

 

 

 

1,309,502

 

Acquisition expenses

 

188,345

 

 

 

456,093

 

 

 

 

 

 

644,438

 

Operational expenses

 

67,425

 

 

 

40,614

 

 

 

 

 

 

108,039

 

Underwriting income (loss)

$

451,710

 

 

$

27,626

 

 

$

 

 

 

479,336

 

Net investment income

 

 

 

 

 

410,845

 

 

 

410,845

 

Net foreign exchange gains (losses)

 

 

 

 

 

(8,815

)

 

 

(8,815

)

Equity in earnings of other ventures

 

 

 

 

 

12,590

 

 

 

12,590

 

Other income (loss)

 

 

 

 

 

169

 

 

 

169

 

Net realized and unrealized gains (losses) on investments

 

 

 

 

 

(127,584

)

 

 

(127,584

)

Corporate expenses

 

 

 

 

 

(35,159

)

 

 

(35,159

)

Interest expense

 

 

 

 

 

(23,609

)

 

 

(23,609

)

Income (loss) before taxes and redeemable noncontrolling interests

 

 

 

 

 

 

 

707,773

 

Income tax benefit (expense)

 

 

 

 

 

20,848

 

 

 

20,848

 

Net (income) loss attributable to redeemable noncontrolling interests

 

 

 

 

 

(224,731

)

 

 

(224,731

)

Dividends on preference shares

 

 

 

 

 

(8,844

)

 

 

(8,844

)

Net income (loss) available (attributable) to RenaissanceRe common shareholders

 

 

 

 

 

 

$

495,046

 

 

 

 

 

 

 

 

 

Net claims and claim expenses incurred – current accident year

$

357,745

 

 

$

1,060,028

 

 

$

 

 

$

1,417,773

 

Net claims and claim expenses incurred – prior accident years

 

(84,391

)

 

 

(23,880

)

 

 

 

 

 

(108,271

)

Net claims and claim expenses incurred – total

$

273,354

 

 

$

1,036,148

 

 

$

 

 

$

1,309,502

 

 

 

 

 

 

 

 

 

Net claims and claim expense ratio – current accident year

 

36.5

%

 

 

67.9

%

 

 

 

 

55.8

%

Net claims and claim expense ratio – prior accident years

 

(8.6

)%

 

 

(1.5

)%

 

 

 

 

(4.3

)%

Net claims and claim expense ratio – calendar year

 

27.9

%

 

 

66.4

%

 

 

 

 

51.5

%

Underwriting expense ratio

 

26.0

%

 

 

31.8

%

 

 

 

 

29.6

%

Combined ratio

 

53.9

%

 

 

98.2

%

 

 

 

 

81.1

%

 

 

 

 

 

 

 

 

 

Three months ended June 30, 2023

 

Property

 

Casualty and

Specialty

 

Other

 

Total

Gross premiums written

$

1,402,606

 

 

$

1,249,015

 

 

$

 

 

$

2,651,621

 

Net premiums written

$

1,144,655

 

 

$

1,051,148

 

 

$

 

 

$

2,195,803

 

Net premiums earned

$

758,686

 

 

$

1,026,576

 

 

$

 

 

$

1,785,262

 

Net claims and claim expenses incurred

 

281,993

 

 

 

649,218

 

 

 

 

 

 

931,211

 

Acquisition expenses

 

140,606

 

 

 

281,939

 

 

 

 

 

 

422,545

 

Operational expenses

 

55,077

 

 

 

25,414

 

 

 

 

 

 

80,491

 

Underwriting income (loss)

$

281,010

 

 

$

70,005

 

 

$

 

 

 

351,015

 

Net investment income

 

 

 

 

 

292,662

 

 

 

292,662

 

Net foreign exchange gains (losses)

 

 

 

 

 

(13,488

)

 

 

(13,488

)

Equity in earnings of other ventures

 

 

 

 

 

7,700

 

 

 

7,700

 

Other income (loss)

 

 

 

 

 

3,876

 

 

 

3,876

 

Net realized and unrealized gains (losses) on investments

 

 

 

 

 

(222,781

)

 

 

(222,781

)

Corporate expenses

 

 

 

 

 

(23,371

)

 

 

(23,371

)

Interest expense

 

 

 

 

 

(14,895

)

 

 

(14,895

)

Income (loss) before taxes and redeemable noncontrolling interests

 

 

 

 

 

 

 

380,718

 

Income tax benefit (expense)

 

 

 

 

 

(5,942

)

 

 

(5,942

)

Net (income) loss attributable to redeemable noncontrolling interests

 

 

 

 

 

(174,907

)

 

 

(174,907

)

Dividends on preference shares

 

 

 

 

 

(8,844

)

 

 

(8,844

)

Net income (loss) available (attributable) to RenaissanceRe common shareholders

 

 

 

 

 

 

$

191,025

 

 

 

 

 

 

 

 

 

Net claims and claim expenses incurred – current accident year

$

313,632

 

 

$

649,677

 

 

$

 

 

$

963,309

 

Net claims and claim expenses incurred – prior accident years

 

(31,639

)

 

 

(459

)

 

 

 

 

 

(32,098

)

Net claims and claim expenses incurred – total

$

281,993

 

 

$

649,218

 

 

$

 

 

$

931,211

 

 

 

 

 

 

 

 

 

Net claims and claim expense ratio – current accident year

 

41.3

%

 

 

63.3

%

 

 

 

 

54.0

%

Net claims and claim expense ratio – prior accident years

 

(4.1

)%

 

 

(0.1

)%

 

 

 

 

(1.8

)%

Net claims and claim expense ratio – calendar year

 

37.2

%

 

 

63.2

%

 

 

 

 

52.2

%

Underwriting expense ratio

 

25.8

%

 

 

30.0

%

 

 

 

 

28.1

%

Combined ratio

 

63.0

%

 

 

93.2

%

 

 

 

 

80.3

%

RenaissanceRe Holdings Ltd.

Supplemental Financial Data - Segment Information

(in thousands of United States Dollars, except percentages)

(Unaudited)

 

Six months ended June 30, 2024

 

Property

 

Casualty and

Specialty

 

Other

 

Total

Gross premiums written

$

3,642,979

 

 

$

3,773,200

 

 

$

 

 

$

7,416,179

 

Net premiums written

$

2,756,278

 

 

$

3,281,806

 

 

$

 

 

$

6,038,084

 

Net premiums earned

$

1,916,917

 

 

$

3,068,308

 

 

$

 

 

$

4,985,225

 

Net claims and claim expenses incurred

 

427,603

 

 

 

2,048,022

 

 

 

 

 

 

2,475,625

 

Acquisition expenses

 

374,127

 

 

 

901,232

 

 

 

 

 

 

1,275,359

 

Operational expenses

 

129,049

 

 

 

85,174

 

 

 

 

 

 

214,223

 

Underwriting income (loss)

$

986,138

 

 

$

33,880

 

 

$

 

 

 

1,020,018

 

Net investment income

 

 

 

 

 

801,620

 

 

 

801,620

 

Net foreign exchange gains (losses)

 

 

 

 

 

(44,498

)

 

 

(44,498

)

Equity in earnings of other ventures

 

 

 

 

 

26,717

 

 

 

26,717

 

Other income (loss)

 

 

 

 

 

119

 

 

 

119

 

Net realized and unrealized gains (losses) on investments

 

 

 

 

 

(341,238

)

 

 

(341,238

)

Corporate expenses

 

 

 

 

 

(74,411

)

 

 

(74,411

)

Interest expense

 

 

 

 

 

(46,713

)

 

 

(46,713

)

Income (loss) before taxes and redeemable noncontrolling interests

 

 

 

 

 

 

 

1,341,614

 

Income tax benefit (expense)

 

 

 

 

 

5,476

 

 

 

5,476

 

Net (income) loss attributable to redeemable noncontrolling interests

 

 

 

 

 

(469,558

)

 

 

(469,558

)

Dividends on preference shares

 

 

 

 

 

(17,688

)

 

 

(17,688

)

Net income (loss) available (attributable) to RenaissanceRe common shareholders

 

 

 

 

 

 

$

859,844

 

 

 

 

 

 

 

 

 

Net claims and claim expenses incurred – current accident year

$

606,661

 

 

$

2,074,316

 

 

$

 

 

$

2,680,977

 

Net claims and claim expenses incurred – prior accident years

 

(179,058

)

 

 

(26,294

)

 

 

 

 

 

(205,352

)

Net claims and claim expenses incurred – total

$

427,603

 

 

$

2,048,022

 

 

$

 

 

$

2,475,625

 

 

 

 

 

 

 

 

 

Net claims and claim expense ratio – current accident year

 

31.6

%

 

 

67.6

%

 

 

 

 

53.8

%

Net claims and claim expense ratio – prior accident years

 

(9.3

)%

 

 

(0.9

)%

 

 

 

 

(4.1

)%

Net claims and claim expense ratio – calendar year

 

22.3

%

 

 

66.7

%

 

 

 

 

49.7

%

Underwriting expense ratio

 

26.3

%

 

 

32.2

%

 

 

 

 

29.8

%

Combined ratio

 

48.6

%

 

 

98.9

%

 

 

 

 

79.5

%

 

 

 

 

 

 

 

 

 

Six months ended June 30, 2023

 

Property

 

Casualty and

Specialty

 

Other

 

Total

Gross premiums written

$

2,706,805

 

 

$

2,735,077

 

 

$

 

 

$

5,441,882

 

Net premiums written

$

2,164,484

 

 

$

2,295,022

 

 

$

 

 

$

4,459,506

 

Net premiums earned

$

1,446,106

 

 

$

2,019,706

 

 

$

 

 

$

3,465,812

 

Net claims and claim expenses incurred

 

469,602

 

 

 

1,262,809

 

 

 

 

 

 

1,732,411

 

Acquisition expenses

 

285,925

 

 

 

568,877

 

 

 

 

 

 

854,802

 

Operational expenses

 

110,890

 

 

 

47,075

 

 

 

 

 

 

157,965

 

Underwriting income (loss)

$

579,689

 

 

$

140,945

 

 

$

 

 

 

720,634

 

Net investment income

 

 

 

 

 

547,040

 

 

 

547,040

 

Net foreign exchange gains (losses)

 

 

 

 

 

(27,991

)

 

 

(27,991

)

Equity in earnings of other ventures

 

 

 

 

 

17,230

 

 

 

17,230

 

Other income (loss)

 

 

 

 

 

(430

)

 

 

(430

)

Net realized and unrealized gains (losses) on investments

 

 

 

 

 

56,670

 

 

 

56,670

 

Corporate expenses

 

 

 

 

 

(36,214

)

 

 

(36,214

)

Interest expense

 

 

 

 

 

(27,029

)

 

 

(27,029

)

Income (loss) before taxes and redeemable noncontrolling interests

 

 

 

 

 

 

 

1,249,910

 

Income tax benefit (expense)

 

 

 

 

 

(34,844

)

 

 

(34,844

)

Net (income) loss attributable to redeemable noncontrolling interests

 

 

 

 

 

(442,291

)

 

 

(442,291

)

Dividends on preference shares

 

 

 

 

 

(17,688

)

 

 

(17,688

)

Net income (loss) available (attributable) to RenaissanceRe common shareholders

 

 

 

 

 

 

$

755,087

 

 

 

 

 

 

 

 

 

Net claims and claim expenses incurred – current accident year

$

582,934

 

 

$

1,286,327

 

 

$

 

 

$

1,869,261

 

Net claims and claim expenses incurred – prior accident years

 

(113,332

)

 

 

(23,518

)

 

 

 

 

 

(136,850

)

Net claims and claim expenses incurred – total

$

469,602

 

 

$

1,262,809

 

 

$

 

 

$

1,732,411

 

 

 

 

 

 

 

 

 

Net claims and claim expense ratio – current accident year

 

40.3

%

 

 

63.7

%

 

 

 

 

53.9

%

Net claims and claim expense ratio – prior accident years

 

(7.8

)%

 

 

(1.2

)%

 

 

 

 

(3.9

)%

Net claims and claim expense ratio – calendar year

 

32.5

%

 

 

62.5

%

 

 

 

 

50.0

%

Underwriting expense ratio

 

27.4

%

 

 

30.5

%

 

 

 

 

29.2

%

Combined ratio

 

59.9

%

 

 

93.0

%

 

 

 

 

79.2

%

RenaissanceRe Holdings Ltd.

Supplemental Financial Data - Gross Premiums Written

(in thousands of United States Dollars)

(Unaudited)

 

 

 

 

 

Three months ended

 

Six months ended

 

June 30,

2024

 

June 30,

2023

 

June 30,

2024

 

June 30,

2023

Property Segment

 

 

 

 

 

 

 

Catastrophe

$

1,264,589

 

$

1,001,839

 

$

2,605,726

 

$

1,930,434

Other property

 

488,509

 

 

400,767

 

 

1,037,253

 

 

776,371

Property segment gross premiums written

$

1,753,098

 

$

1,402,606

 

$

3,642,979

 

$

2,706,805

 

 

 

 

 

 

 

 

Casualty and Specialty Segment

 

 

 

 

 

 

 

General casualty (1)

$

631,343

 

$

375,945

 

$

1,219,909

 

$

843,837

Professional liability (2)

 

214,105

 

 

308,284

 

 

584,586

 

 

690,537

Credit (3)

 

206,346

 

 

191,985

 

 

551,478

 

 

423,661

Other specialty (4)

 

620,603

 

 

372,801

 

 

1,417,227

 

 

777,042

Casualty and Specialty segment gross premiums written

$

1,672,397

 

$

1,249,015

 

$

3,773,200

 

$

2,735,077

(1)

Includes automobile liability, casualty clash, employer’s liability, umbrella or excess casualty, workers’ compensation and general liability.

(2)

Includes directors and officers, medical malpractice, professional indemnity and transactional liability.

(3)

Includes financial guaranty, mortgage guaranty, political risk, surety and trade credit.

(4)

Includes accident and health, agriculture, aviation, construction, cyber, energy, marine, satellite and terrorism. Lines of business such as regional multi-line and whole account may have characteristics of various other lines of business, and are allocated accordingly.

RenaissanceRe Holdings Ltd.

Supplemental Financial Data - Total Investment Result

(in thousands of United States Dollars, except percentages)

(Unaudited)

 

 

 

 

 

 

 

 

 

Three months ended

 

Six months ended

 

June 30,

2024

 

June 30,

2023

 

June 30,

2024

 

June 30,

2023

Fixed maturity investments trading

$

273,900

 

 

$

169,739

 

 

$

531,189

 

 

$

325,239

 

Short term investments

 

48,386

 

 

 

50,231

 

 

 

95,177

 

 

 

83,181

 

Equity investments

 

589

 

 

 

2,766

 

 

 

1,149

 

 

 

6,165

 

Other investments

 

 

 

 

 

 

 

Catastrophe bonds

 

58,436

 

 

 

49,522

 

 

 

116,685

 

 

 

88,353

 

Other

 

20,663

 

 

 

20,820

 

 

 

38,588

 

 

 

45,391

 

Cash and cash equivalents

 

15,399

 

 

 

4,585

 

 

 

30,121

 

 

 

8,849

 

 

 

417,373

 

 

 

297,663

 

 

 

812,909

 

 

 

557,178

 

Investment expenses

 

(6,528

)

 

 

(5,001

)

 

 

(11,289

)

 

 

(10,138

)

Net investment income

$

410,845

 

 

$

292,662

 

 

$

801,620

 

 

$

547,040

 

 

 

 

 

 

 

 

 

Net investment income return - annualized

 

5.7

%

 

 

5.3

%

 

 

5.7

%

 

 

5.1

%

 

 

 

 

 

 

 

 

Net realized gains (losses) on fixed maturity investments trading

$

(65,813

)

 

$

(74,212

)

 

$

(56,017

)

 

$

(178,977

)

Net unrealized gains (losses) on fixed maturity investments trading

 

(24,848

)

 

 

(139,793

)

 

 

(236,844

)

 

 

172,233

 

Net realized and unrealized gains (losses) on fixed maturity investments trading

 

(90,661

)

 

 

(214,005

)

 

 

(292,861

)

 

 

(6,744

)

Net realized and unrealized gains (losses) on investment-related derivatives

 

10,374

 

 

 

(65,051

)

 

 

(47,432

)

 

 

(52,889

)

Net realized gains (losses) on equity investments

 

15

 

 

 

(18,755

)

 

 

15

 

 

 

(27,493

)

Net unrealized gains (losses) on equity investments

 

(5,507

)

 

 

20,627

 

 

 

7,590

 

 

 

59,778

 

Net realized and unrealized gains (losses) on equity investments

 

(5,492

)

 

 

1,872

 

 

 

7,605

 

 

 

32,285

 

Net realized and unrealized gains (losses) on other investments - catastrophe bonds

 

(34,107

)

 

 

38,186

 

 

 

(15,200

)

 

 

62,312

 

Net realized and unrealized gains (losses) on other investments - other

 

(7,698

)

 

 

16,217

 

 

 

6,650

 

 

 

21,706

 

Net realized and unrealized gains (losses) on investments

 

(127,584

)

 

 

(222,781

)

 

 

(341,238

)

 

 

56,670

 

Total investment result

$

283,261

 

 

$

69,881

 

 

$

460,382

 

 

$

603,710

 

 

 

 

 

 

 

 

 

Total investment return - annualized

 

4.1

%

 

 

1.6

%

 

 

3.2

%

 

 

5.5

%

Comments on Non-GAAP Financial Measures

In addition to the GAAP financial measures set forth in this Press Release, the Company has included certain non-GAAP financial measures within the meaning of Regulation G. The Company has provided certain of these financial measures in previous investor communications and the Company’s management believes that such measures are important to investors and other interested persons, and that investors and such other persons benefit from having a consistent basis for comparison between quarters and for comparison with other companies within or outside the industry. These measures may not, however, be comparable to similarly titled measures used by companies within or outside of the insurance industry. Investors are cautioned not to place undue reliance on these non-GAAP measures in assessing the Company’s overall financial performance.

Operating Income (Loss) Available (Attributable) to RenaissanceRe Common Shareholders and Operating Return on Average Common Equity - Annualized

The Company uses “operating income (loss) available (attributable) to RenaissanceRe common shareholders” as a measure to evaluate the underlying fundamentals of its operations and believes it to be a useful measure of its corporate performance. “Operating income (loss) available (attributable) to RenaissanceRe common shareholders” as used herein differs from “net income (loss) available (attributable) to RenaissanceRe common shareholders,” which the Company believes is the most directly comparable GAAP measure, by the exclusion of (1) net realized and unrealized gains and losses on investments, excluding other investments - catastrophe bonds, (2) net foreign exchange gains and losses, (3) corporate expenses associated with acquisitions and dispositions, (4) acquisition related purchase accounting adjustments, (5) the Bermuda net deferred tax asset, (6) the income tax expense or benefit associated with these adjustments, and (7) the portion of these adjustments attributable to the Company’s redeemable noncontrolling interests. The Company also uses “operating income (loss) available (attributable) to RenaissanceRe common shareholders” to calculate “operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted” and “operating return on average common equity - annualized.”

The Company’s management believes that “operating income (loss) available (attributable) to RenaissanceRe common shareholders,” “operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted” and “operating return on average common equity - annualized” are useful to management and investors because they provide for better comparability and more accurately measure the Company’s results of operations and remove variability.

The following table is a reconciliation of: (1) net income (loss) available (attributable) to RenaissanceRe common shareholders to “operating income (loss) available (attributable) to RenaissanceRe common shareholders”; (2) net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted to “operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted”; and (3) return on average common equity - annualized to “operating return on average common equity - annualized.” Comparative information for the prior periods presented have been updated to conform to the current methodology and presentation.

 

Three months ended

 

Six months ended

(in thousands of United States Dollars, except per share amounts and percentages)

June 30,

2024

 

June 30,

2023

 

June 30,

2024

 

June 30,

2023

Net income (loss) available (attributable) to RenaissanceRe common shareholders

$

495,046

 

 

$

191,025

 

 

$

859,844

 

 

$

755,087

 

Adjustment for:

 

 

 

 

 

 

 

Net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds

 

93,477

 

 

 

260,967

 

 

 

326,038

 

 

 

5,642

 

Net foreign exchange losses (gains)

 

8,815

 

 

 

13,488

 

 

 

44,498

 

 

 

27,991

 

Corporate expenses associated with acquisitions and dispositions

 

17,300

 

 

 

11,341

 

 

 

37,566

 

 

 

11,341

 

Acquisition related purchase accounting adjustments (1)

 

62,803

 

 

 

4,018

 

 

 

123,363

 

 

 

8,038

 

Bermuda net deferred tax asset (2)

 

 

 

 

 

 

 

(7,890

)

 

 

 

Income tax expense (benefit) (3)

 

(6,188

)

 

 

(10,235

)

 

 

(18,960

)

 

 

1,087

 

Net income (loss) attributable to redeemable noncontrolling interests (4)

 

(20,407

)

 

 

(59,151

)

 

 

(77,234

)

 

 

(33,705

)

Operating income (loss) available (attributable) to RenaissanceRe common shareholders

$

650,846

 

 

$

411,453

 

 

$

1,287,225

 

 

$

775,481

 

 

 

 

 

 

 

 

 

Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted

$

9.41

 

 

$

4.09

 

 

$

16.35

 

 

$

16.71

 

Adjustment for:

 

 

 

 

 

 

 

Net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds

 

1.80

 

 

 

5.67

 

 

 

6.29

 

 

 

0.13

 

Net foreign exchange losses (gains)

 

0.17

 

 

 

0.29

 

 

 

0.86

 

 

 

0.63

 

Corporate expenses associated with acquisitions and dispositions

 

0.33

 

 

 

0.25

 

 

 

0.72

 

 

 

0.25

 

Acquisition related purchase accounting adjustments (1)

 

1.21

 

 

 

0.09

 

 

 

2.38

 

 

 

0.18

 

Bermuda net deferred tax asset (2)

 

 

 

 

 

 

 

(0.15

)

 

 

 

Income tax expense (benefit) (3)

 

(0.12

)

 

 

(0.22

)

 

 

(0.37

)

 

 

0.02

 

Net income (loss) attributable to redeemable noncontrolling interests (4)

 

(0.39

)

 

 

(1.29

)

 

 

(1.49

)

 

 

(0.76

)

Operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted

$

12.41

 

 

$

8.88

 

 

$

24.59

 

 

$

17.16

 

 

 

 

 

 

 

 

 

Return on average common equity - annualized

 

21.4

%

 

 

13.5

%

 

 

19.0

%

 

 

28.9

%

Adjustment for:

 

 

 

 

 

 

 

Net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds

 

4.1

%

 

 

18.4

%

 

 

7.2

%

 

 

0.3

%

Net foreign exchange losses (gains)

 

0.4

%

 

 

1.0

%

 

 

1.0

%

 

 

1.1

%

Corporate expenses associated with acquisitions and dispositions

 

0.8

%

 

 

0.8

%

 

 

0.8

%

 

 

0.4

%

Acquisition related purchase accounting adjustments (1)

 

2.7

%

 

 

0.3

%

 

 

2.7

%

 

 

0.3

%

Bermuda net deferred tax asset (2)

 

%

 

 

%

 

 

(0.2

)%

 

 

%

Income tax expense (benefit) (3)

 

(0.3

)%

 

 

(0.7

)%

 

 

(0.4

)%

 

 

%

Net income (loss) attributable to redeemable noncontrolling interests (4)

 

(0.9

)%

 

 

(4.2

)%

 

 

(1.7

)%

 

 

(1.3

)%

Operating return on average common equity - annualized

 

28.2

%

 

 

29.1

%

 

 

28.4

%

 

 

29.7

%

(1)

Represents the purchase accounting adjustments related to the amortization of acquisition related intangible assets, amortization (accretion) of VOBA and acquisition costs, and the fair value adjustments to the net reserves for claims and claim expenses for the three and six months ended June 30, 2024 for the acquisitions of Validus - $59.0 million and $115.9 million, respectively (2023 - $Nil and $Nil, respectively); and TMR and Platinum - $3.8 million and $7.5 million respectively (2023 - $4.0 million and $8.0 million respectively).

(2)

Represents a net deferred tax benefit recorded during the period in connection with the enactment of the 15% Bermuda corporate income tax on December 27, 2023.

(3)

Represents the income tax (expense) benefit associated with the adjustments to net income (loss) available (attributable) to RenaissanceRe common shareholders. The income tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors.

(4)

Represents the portion of the adjustments above that are attributable to the Company’s redeemable noncontrolling interests, including the income tax impact of those adjustments.

Tangible Book Value Per Common Share and Tangible Book Value Per Common Share Plus Accumulated Dividends

The Company has included in this Press Release “tangible book value per common share” and “tangible book value per common share plus accumulated dividends.” “Tangible book value per common share” is defined as book value per common share excluding per share amounts for (1) acquisition related goodwill and other intangible assets, (2) acquisition related purchase accounting adjustments, and (3) other goodwill and intangible assets. “Tangible book value per common share plus accumulated dividends” is defined as book value per common share excluding per share amounts for (1) acquisition related goodwill and other intangible assets, (2) acquisition related purchase accounting adjustments, and (3) other goodwill and intangible assets, plus accumulated dividends.

The Company’s management believes “tangible book value per common share” and “tangible book value per common share plus accumulated dividends” are useful to investors because they provide a more accurate measure of the realizable value of shareholder returns, excluding the impact of goodwill and intangible assets and acquisition related purchase accounting adjustments. The following table is a reconciliation of book value per common share to “tangible book value per common share” and “tangible book value per common share plus accumulated dividends.” Comparative information for the prior periods presented have been updated to conform to the current methodology and presentation.

 

June 30,

2024

 

June 30,

2023

Book value per common share

$

179.87

 

 

$

129.98

 

Adjustment for:

 

 

 

Acquisition related goodwill and other intangible assets (1)

 

(14.07

)

 

 

(4.60

)

Other goodwill and intangible assets (2)

 

(0.34

)

 

 

(0.35

)

Acquisition related purchase accounting adjustments (3)

 

(6.24

)

 

 

(1.31

)

Tangible book value per common share

 

159.22

 

 

 

123.72

 

Adjustment for accumulated dividends

 

27.30

 

 

 

25.76

 

Tangible book value per common share plus accumulated dividends

$

186.52

 

 

$

149.48

 

 

 

 

 

Quarterly change in book value per common share

 

5.2

%

 

 

11.6

%

Quarterly change in book value per common share plus change in accumulated dividends

 

5.5

%

 

 

12.0

%

Quarterly change in tangible book value per common share plus change in accumulated dividends

 

7.1

%

 

 

13.8

%

(1)

Represents the acquired goodwill and other intangible assets at June 30, 2024 for the acquisitions of Validus $507.2 million (June 30, 2023 - $Nil), TMR $26.6 million (June 30, 2023 - $27.7 million) and Platinum $203.6 million (June 30, 2023 - $207.5 million).

(2)

At June 30, 2024, the adjustment for other goodwill and intangible assets included $17.9 million (June 30, 2023 - $18.3 million) of goodwill and other intangibles included in investments in other ventures, under equity method. Previously reported “adjustment for goodwill and other intangibles” has been bifurcated into “acquisition related goodwill and other intangible assets” and “other goodwill and intangible assets.”

(3)

Represents the purchase accounting adjustments related to the unamortized VOBA and acquisition costs, and the fair value adjustments to reserves at June 30, 2024 for the acquisitions of Validus $270.7 million (June 30, 2023 - $Nil), TMR $57.0 million (June 30, 2023 - $67.8 million) and Platinum $(0.7) million (June 30, 2023 - $(0.9) million).

Adjusted Combined Ratio

The Company has included in this Press Release “adjusted combined ratio” for the company, its segments and certain classes of business. “Adjusted combined ratio” is defined as the combined ratio adjusted for the impact of acquisition related purchase accounting, which includes the amortization of acquisition related intangible assets, purchase accounting adjustments related to the amortization (accretion) of VOBA and acquisition costs, and the fair value adjustments to the net reserve for claims and claim expenses for the acquisitions of Validus, TMR and Platinum. The combined ratio is calculated as the sum of (1) net claims and claim expenses incurred, (2) acquisition expenses, and (3) operational expenses; divided by net premiums earned. The acquisition related purchase accounting adjustments impact net claims and claim expenses incurred and acquisition expenses. The Company’s management believes “adjusted combined ratio” is useful to management and investors because it provides for better comparability and more accurately measures the Company’s underlying underwriting performance. The following table is a reconciliation of combined ratio to “adjusted combined ratio.”

 

Three months ended June 30, 2024

 

Catastrophe

 

Other

Property

 

Property

 

Casualty

and

Specialty

 

Total

Combined ratio

28.1

%

 

91.2

%

 

53.9

%

 

98.2

%

 

81.1

%

Adjustment for acquisition related purchase accounting adjustments (1)

(3.2

)%

 

(0.9

)%

 

(2.2

)%

 

(2.6

)%

 

(2.5

)%

Adjusted combined ratio

24.9

%

 

90.3

%

 

51.7

%

 

95.6

%

 

78.6

%

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30, 2023

 

Catastrophe

 

Other

Property

 

Property

 

Casualty

and

Specialty

 

Total

Combined ratio

50.2

%

 

79.1

%

 

63.0

%

 

93.2

%

 

80.3

%

Adjustment for acquisition related purchase accounting adjustments (1)

(0.2

)%

 

(0.2

)%

 

(0.2

)%

 

(0.3

)%

 

(0.2

)%

Adjusted combined ratio

50.0

%

 

78.9

%

 

62.8

%

 

92.9

%

 

80.1

%

 

 

 

 

 

 

 

 

 

 

 

Six months ended June 30, 2024

 

Catastrophe

 

Other

Property

 

Property

 

Casualty

and

Specialty

 

Total

Combined ratio

24.1

%

 

83.4

%

 

48.6

%

 

98.9

%

 

79.5

%

Adjustment for acquisition related purchase accounting adjustments (1)

(3.4

)%

 

(0.9

)%

 

(2.4

)%

 

(2.6

)%

 

(2.4

)%

Adjusted combined ratio

20.7

%

 

82.5

%

 

46.2

%

 

96.3

%

 

77.1

%

 

 

 

 

 

 

 

 

 

 

 

Six months ended June 30, 2023

 

Catastrophe

 

Other

Property

 

Property

 

Casualty

and

Specialty

 

Total

Combined ratio

37.1

%

 

86.4

%

 

59.9

%

 

93.0

%

 

79.2

%

Adjustment for acquisition related purchase accounting adjustments (1)

(0.3

)%

 

(0.2

)%

 

(0.2

)%

 

(0.2

)%

 

(0.3

)%

Adjusted combined ratio

36.8

%

 

86.2

%

 

59.7

%

 

92.8

%

 

78.9

%

(1)

Adjustment for acquisition related purchase accounting includes the amortization of the acquisition related intangible assets and purchase accounting adjustments related to the net amortization (accretion) of VOBA and acquisition costs, and the fair value adjustments to the net reserve for claims and claim expenses for the acquisitions of Validus, TMR and Platinum.

 

Contacts

INVESTOR CONTACT:

RenaissanceRe Holdings Ltd.

Keith McCue

Senior Vice President, Finance & Investor Relations

(441) 239-4830

MEDIA CONTACT:

RenaissanceRe Holdings Ltd.

Hayden Kenny

Senior Vice President, Investor Relations & Communications

(441) 239-4946

or

Kekst CNC

Nicholas Capuano

(917) 842-7859

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