RenaissanceRe Reports $1.2 Billion of Net Income Available to Common Shareholders and $540.3 Million of Operating Income Available to Common Shareholders in Q3 2024.

  • Annualized return on average common equity of 47.1% and annualized operating return on average common equity of 21.7%.
  • Combined ratio of 84.8% and adjusted combined ratio of 82.4%.
  • Q3 2024 Large Loss Events had a net negative impact of $243.2 million on net income available to common shareholders, and added 12.7 percentage points to the combined ratio.
  • Fee income of $82.1 million; up 27.1% from Q3 2023.
  • Net investment income of $423.9 million; up 28.8% from Q3 2023.
  • Mark-to-market gains of $943.7 million, primarily driven by $612.4 million related to the fixed maturity portfolio and $134.2 million related to Company’s investment in TWFG.
  • Repurchased $106.8 million of common shares in the third quarter.
  • Hurricane Milton is estimated to have a net negative impact of $275.0 million on the Company’s fourth quarter 2024 results of operations.

PEMBROKE, Bermuda--()--RenaissanceRe Holdings Ltd. (NYSE: RNR) (“RenaissanceRe” or the “Company”) today announced its financial results for the third quarter of 2024.

Net Income Available to Common Shareholders per Diluted Common Share: $22.62

Operating Income Available to Common Shareholders per Diluted Common Share: $10.23

Underwriting Income

$393.8M

Fee Income

$82.1M

Net Investment Income

$423.9M

Change in Book Value per Common Share: 12.3%

Change in Tangible Book Value per Common Share Plus Change in Accum. Dividends: 15.0%

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 and 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 reported strong results this quarter. Our business continues to perform well, and we are in an excellent capital and liquidity position. We believe that these strong returns will persist, providing us with opportunities to grow while continuing to return capital to our shareholders through share repurchases. These actions position us to deliver consistent, superior returns for our shareholders through the course of 2025 and into the future.

 

RenaissanceRe’s purpose is to protect communities and enable prosperity. It is important to recognize that the catastrophes of the quarter caused significant human suffering, in addition to substantial property damage. We extend our sympathies to all those impacted and are proud of the role that we have in supporting communities as they recover and rebuild.”

Consolidated Financial Results

 

Consolidated Highlights

 

 

 

 

 

Three months ended September 30,

 

(in thousands, except per share amounts and percentages)

 

2024

 

 

 

2023

 

 

Gross premiums written

$

2,400,136

 

 

$

1,618,443

 

 

Net premiums written

 

2,162,504

 

 

 

1,421,260

 

 

Net premiums earned

 

2,582,969

 

 

 

1,755,876

 

 

Underwriting income (loss)

 

393,756

 

 

 

385,804

 

 

Combined ratio

 

84.8

%

 

 

78.0

%

 

Adjusted combined ratio (1)

 

82.4

%

 

 

77.8

%

 

 

 

 

 

 

Net Income (Loss)

 

 

 

 

Available (attributable) to common shareholders

 

1,173,644

 

 

 

193,988

 

 

Available (attributable) to common shareholders per diluted common share

$

22.62

 

 

$

3.80

 

 

Return on average common equity - annualized

 

47.1

%

 

 

11.5

%

 

 

 

 

 

 

Operating Income (Loss) (1)

 

 

 

 

Available (attributable) to common shareholders

 

540,322

 

 

 

426,320

 

 

Available (attributable) to common shareholders per diluted common share

$

10.23

 

 

$

8.41

 

 

Operating return on average common equity - annualized (1)

 

21.7

%

 

 

25.3

%

 

 

 

 

 

 

Book Value per Share

 

 

 

 

Book value per common share

$

202.01

 

 

$

133.63

 

 

Quarterly change in book value per share (2)

 

12.3

%

 

 

2.8

%

 

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

 

12.5

%

 

 

3.1

%

 

 

 

 

 

 

Tangible Book Value per Share (1)

 

 

 

 

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

$

210.45

 

 

$

153.60

 

 

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

 

15.0

%

 

 

3.3

%

(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 nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023, should be viewed in that context. In addition, the results of operations for the three and nine months ended September 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 60.3%, including a 35.4 percentage point impact from the Q3 2024 Large Loss Events

 

Property Segment

 

 

 

 

 

 

 

 

 

 

 

Three months ended September 30,

 

Q/Q Change

 

(in thousands, except percentages)

2024

 

2023

 

 

Gross premiums written

$

790,709

 

 

$

511,012

 

 

54.7%

 

Net premiums written

 

701,222

 

 

 

444,872

 

 

57.6%

 

Net premiums earned

 

994,777

 

 

 

760,365

 

 

30.8%

 

Underwriting income (loss)

 

394,683

 

 

 

356,032

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Underwriting Ratios

 

 

 

 

 

 

 

 

 

 

Net claims and claim expense ratio - current accident year

 

62.5

%

 

 

46.1

%

 

16.4 pts

 

Net claims and claim expense ratio - prior accident years

 

(29.3

)%

 

 

(19.0

)%

 

(10.3) pts

 

Net claims and claim expense ratio - calendar year

 

33.2

%

 

 

27.1

%

 

6.1 pts

 

Underwriting expense ratio

 

27.1

%

 

 

26.1

%

 

1.0 pts

 

Combined ratio

 

60.3

%

 

 

53.2

%

 

7.1 pts

 

Adjusted combined ratio (1)

 

58.1

%

 

 

53.0

%

 

5.1 pts

(1)

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

  • Gross premiums written increased by $279.7 million, or 54.7%, due to:

– a $183.2 million increase in the catastrophe class of business, driven by an increase of $74.3 million in reinstatement premiums as well as a combination of organic growth, new opportunities, and the renewal of business acquired in the Validus Acquisition, in conjunction with the retention of legacy lines, primarily at the July 1, 2024 renewal.

– a $96.5 million increase in the other property class of business, 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 $256.4 million, or 57.6%, driven by the increase in gross premiums written discussed above, partially offset by an increase in ceded premiums written.
  • Net claims and claim expense ratio - current accident year increased by 16.4 percentage points, due to a higher impact from large loss events compared to the third quarter of 2023. The Q3 2024 Large Loss Events added 43.5 percentage points to the catastrophe class of business and 24.8 percentage points to the other property class of business.
  • Net claims and claim expense ratio - prior accident years decreased 10.3 percentage points, reflecting net favorable development in the third quarter of 2024, primarily driven by:

– net favorable development of $184.4 million from large catastrophe events across the 2017 to 2022 accident years, including $108.1 million from the 2022 Weather-Related Large Losses; and

– net favorable development on attritional losses across the other property class of business.

  • Underwriting expense ratio increased 1.0 percentage point, primarily due to:

– a 0.4 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 third quarter of 2024. This was partially offset by changes in the mix of business as a result of the continued relative growth in the catastrophe class of business, which has a lower acquisition expense ratio than the other property class of business; and

– a 0.6 percentage point increase in the operating expense ratio primarily due to an increase in operating expenses following the Validus Acquisition.

  • Combined ratio increased by 7.1 percentage points, and adjusted combined ratio, which removes the impact of acquisition related purchase accounting adjustments, increased by 5.1 percentage points, each primarily due to a higher impact from the Q3 2024 Large Loss Events as compared to the 2023 Large Loss Events, partially offset by an increase in prior accident year net favorable development.

Underwriting Results - Casualty and Specialty Segment: Combined ratio of 100.1% and adjusted combined ratio of 97.7%, with current accident year loss ratio of 65.8%

 

Casualty and Specialty Segment

 

 

 

 

 

 

 

 

 

 

 

Three months ended September 30,

 

Q/Q Change

 

(in thousands, except percentages)

2024

 

2023

 

 

Gross premiums written

$

1,609,427

 

 

$

1,107,431

 

 

45.3%

 

Net premiums written

 

1,461,282

 

 

 

976,388

 

 

49.7%

 

Net premiums earned

 

1,588,192

 

 

 

995,511

 

 

59.5%

 

Underwriting income (loss)

 

(927

)

 

 

29,772

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Underwriting Ratios

 

 

 

 

 

 

 

 

 

 

Net claims and claim expense ratio - current accident year

 

65.8

%

 

 

67.2

%

 

(1.4) pts

 

Net claims and claim expense ratio - prior accident years

 

(0.1

)%

 

 

(1.4

)%

 

1.3 pts

 

Net claims and claim expense ratio - calendar year

 

65.7

%

 

 

65.8

%

 

(0.1) pts

 

Underwriting expense ratio

 

34.4

%

 

 

31.2

%

 

3.2 pts

 

Combined ratio

 

100.1

%

 

 

97.0

%

 

3.1 pts

 

Adjusted combined ratio (1)

 

97.7

%

 

 

96.7

%

 

1.0 pts

(1)

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

  • Gross premiums written increased by $502.0 million, or 45.3%, 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 $168.6 million and $208.4 million, respectively, compared to the third quarter of 2023; and

– organic growth of legacy lines, particularly within the other specialty class of business.

  • Net premiums written increased 49.7%, consistent with the drivers discussed for gross premiums written above, in addition to an overall reduction in our retrocessional purchases.
  • Combined ratio increased by 3.1 percentage points, and adjusted combined ratio, which removes the impact of acquisition related purchase accounting adjustments, increased by 1.0 percentage point, each primarily due to the increase in the underwriting expense ratio.
  • Net claims and claim expense ratio - current accident year decreased by 1.4 percentage points, as the comparable period was impacted by event losses on catastrophe exposed lines within the other specialty class of business.
  • 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 3.2 percentage points, driven by a 3.0 percentage point increase in the acquisition expense ratio primarily due to the impact of Validus integration related activities and purchase accounting adjustments, which collectively added 2.6 percentage points to the acquisition expense ratio in the third quarter of 2024.

Fee Income: $82.1 million of fee income, up 27.1% from Q3 2023; increase in both management and performance fees

 

Fee Income

 

 

 

 

 

 

 

Three months ended September 30,

 

Q/Q Change

 

(in thousands)

2024

 

2023

 

 

Total management fee income

$

54,945

 

$

44,486

 

$

10,459

 

Total performance fee income (loss) (1)

 

27,120

 

 

20,072

 

 

7,048

 

Total fee income

$

82,065

 

$

64,558

 

$

17,507

(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 $10.5 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 $7.0 million, driven by strong underwriting results and prior year favorable development, primarily in DaVinci and Upsilon RFO Re Ltd.

Investment Results: Total investment result of $1.4 billion; net investment income growth of 28.8%

 

Investment Results

 

 

 

 

 

 

 

Three months ended September 30,

 

Q/Q Change

 

(in thousands, except percentages)

2024

 

2023

 

 

Net investment income

$

423,859

 

 

$

329,108

 

 

$

94,751

 

Net realized and unrealized gains (losses) on investments

 

943,745

 

 

 

(228,087

)

 

 

1,171,832

 

Total investment result

$

1,367,604

 

 

$

101,021

 

 

$

1,266,583

 

Net investment income return - annualized

 

5.7

%

 

 

5.7

%

 

— pts

 

Total investment return - annualized

 

18.3

%

 

 

2.0

%

 

16.3 pts

 

 

 

 

 

 

 

  • Net investment income increased $94.8 million, due to a combination of higher average invested assets, primarily resulting from the Validus Acquisition, and higher yielding assets in the fixed maturity investments portfolio.
  • Net realized and unrealized gains on investments increased by $1.2 billion, principally driven by:

– higher net realized and unrealized gains on fixed maturity investments trading of $891.7 million, primarily due to decreases in interest rates in Q3 2024, as compared to interest rate increases in Q3 2023;

– an increase in net realized and unrealized gains on other investments of $162.5 million driven by an increase in the value of the Company’s investment in TWFG as a result of TWFG, Inc.’s initial public offering in the third quarter of 2024;

– an increase in net realized and unrealized gains on investment-related derivatives of $66.9 million, primarily as a result of the impact of the interest rate movements noted above on interest rate futures and commodity price movements favorably impacting commodity futures; and

– an increase in net realized and unrealized gains on catastrophe bonds of $33.8 million, reflective of changes in risk spreads in the wider catastrophe bond market.

  • Total investments were $33.0 billion at September 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 5.1% and 2.9 years, respectively (December 31, 2023 - 5.8% and 2.6 years, respectively).

Other Items of Note

  • Net income attributable to redeemable noncontrolling interests of $450.2 million was primarily driven by strong:

– underwriting results in DaVinci and Vermeer Reinsurance Ltd.;

– 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; and

– net realized and unrealized gains on investments of the Company’s joint ventures and managed funds.

  • Income tax expense of $102.0 million in the current quarter, primarily driven by income in the Company’s U.S. operations.
  • Share Repurchases of 477.8 thousand common shares at an aggregate cost of $106.8 million and an average price of $223.45 per common share in the third quarter of 2024.

– On November 6, 2024, the Board approved an increase in the Company’s authorized share repurchase program, bringing the total current authorization up to $750 million.

  • Hurricane Milton is estimated to have a $275.0 million net negative impact on net income (loss) available (attributable) to common shareholders in the fourth quarter of 2024.

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 these catastrophe events, driven by the magnitude and recent nature of the events, the geographic areas impacted by the events, 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 September 30, 2024

Hurricane Helene

 

Other Q3 2024 Large Loss Events (1)

 

Q3 2024 Large Loss Events (2)

 

 

(in thousands, except percentages)

 

 

 

 

 

 

 

Net negative impact on Property segment underwriting result

$

(147,847

)

 

$

(157,819

)

 

$

(305,666

)

 

 

Net negative impact on Casualty and Specialty segment underwriting result

 

 

 

 

(4,942

)

 

 

(4,942

)

 

 

Net negative impact on underwriting result

$

(147,847

)

 

$

(162,761

)

 

$

(310,608

)

 

 

Percentage point impact on consolidated combined ratio

 

6.1

 

 

 

6.6

 

 

 

12.7

 

 

 

 

 

 

 

 

 

 

Net negative impact on the consolidated financial statements

 

 

 

 

 

 

 

 

 

Three months ended September 30, 2024

Hurricane Helene

 

Other Q3 2024 Large Loss Events (1)

 

Q3 2024 Large Loss Events (2)

 

 

(in thousands)

 

 

 

 

 

 

 

Net claims and claims expenses incurred

$

(181,065

)

 

$

(188,941

)

 

$

(370,006

)

 

 

Assumed reinstatement premiums earned

 

39,027

 

 

 

24,453

 

 

 

63,480

 

 

 

Ceded reinstatement premiums earned

 

(1,009

)

 

 

(476

)

 

 

(1,485

)

 

 

Earned (lost) profit commissions

 

(4,800

)

 

 

2,203

 

 

 

(2,597

)

 

 

Net negative impact on underwriting result

 

(147,847

)

 

 

(162,761

)

 

 

(310,608

)

 

 

Redeemable noncontrolling interest

 

22,637

 

 

 

44,813

 

 

 

67,450

 

 

 

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

$

(125,210

)

 

$

(117,948

)

 

$

(243,158

)

 

 

 

 

 

 

 

 

 

(1)

“Other Q3 2024 Large Loss Events” includes: a severe hailstorm which impacted Calgary in August 2024, Hurricane Debby, and Hurricane Beryl.

(2)

“Q3 2024 Large Loss Events” includes: Hurricane Helene and the “Other Q3 2024 Large Loss Events.”

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,” and “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, November 7, 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; 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 or regulations; the effect of current or future macroeconomic or geopolitical events or trends, including the ongoing conflicts between Russia and Ukraine, and in the Middle East; 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 the 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

 

Nine months ended

 

September 30,
2024

 

September 30,
2023

 

September 30,
2024

 

September 30,
2023

Revenues

 

 

 

 

 

 

 

Gross premiums written

$

2,400,136

 

 

$

1,618,443

 

 

$

9,816,315

 

 

$

7,060,325

 

Net premiums written

$

2,162,504

 

 

$

1,421,260

 

 

$

8,200,588

 

 

$

5,880,766

 

Decrease (increase) in unearned premiums

 

420,465

 

 

 

334,616

 

 

 

(632,394

)

 

 

(659,078

)

Net premiums earned

 

2,582,969

 

 

 

1,755,876

 

 

 

7,568,194

 

 

 

5,221,688

 

Net investment income

 

423,859

 

 

 

329,108

 

 

 

1,225,479

 

 

 

876,148

 

Net foreign exchange gains (losses)

 

16,804

 

 

 

(25,886

)

 

 

(27,694

)

 

 

(53,877

)

Equity in earnings (losses) of other ventures

 

5,718

 

 

 

10,842

 

 

 

32,435

 

 

 

28,072

 

Other income (loss)

 

680

 

 

 

(5,866

)

 

 

799

 

 

 

(6,296

)

Net realized and unrealized gains (losses) on investments

 

943,745

 

 

 

(228,087

)

 

 

602,507

 

 

 

(171,417

)

Total revenues

 

3,973,775

 

 

 

1,835,987

 

 

 

9,401,720

 

 

 

5,894,318

 

Expenses

 

 

 

 

 

 

 

Net claims and claim expenses incurred

 

1,373,614

 

 

 

861,576

 

 

 

3,849,239

 

 

 

2,593,987

 

Acquisition expenses

 

690,338

 

 

 

425,745

 

 

 

1,965,697

 

 

 

1,280,547

 

Operational expenses

 

125,261

 

 

 

82,751

 

 

 

339,484

 

 

 

240,716

 

Corporate expenses

 

26,078

 

 

 

17,143

 

 

 

100,489

 

 

 

53,357

 

Interest expense

 

23,809

 

 

 

22,951

 

 

 

70,522

 

 

 

49,980

 

Total expenses

 

2,239,100

 

 

 

1,410,166

 

 

 

6,325,431

 

 

 

4,218,587

 

Income (loss) before taxes

 

1,734,675

 

 

 

425,821

 

 

 

3,076,289

 

 

 

1,675,731

 

Income tax benefit (expense)

 

(102,012

)

 

 

(9,295

)

 

 

(96,536

)

 

 

(44,139

)

Net income (loss)

 

1,632,663

 

 

 

416,526

 

 

 

2,979,753

 

 

 

1,631,592

 

Net (income) loss attributable to redeemable noncontrolling interests

 

(450,176

)

 

 

(213,695

)

 

 

(919,734

)

 

 

(655,986

)

Net income (loss) attributable to RenaissanceRe

 

1,182,487

 

 

 

202,831

 

 

 

2,060,019

 

 

 

975,606

 

Dividends on preference shares

 

(8,843

)

 

 

(8,843

)

 

 

(26,531

)

 

 

(26,531

)

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

$

1,173,644

 

 

$

193,988

 

 

$

2,033,488

 

 

$

949,075

 

 

 

 

 

 

 

 

 

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

$

22.68

 

 

$

3.81

 

 

$

38.95

 

 

$

20.17

 

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

$

22.62

 

 

$

3.80

 

 

$

38.84

 

 

$

20.13

 

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

$

10.23

 

 

$

8.41

 

 

$

34.86

 

 

$

25.58

 

 

 

 

 

 

 

 

 

Average shares outstanding - basic

 

50,959

 

 

 

50,261

 

 

 

51,439

 

 

 

46,345

 

Average shares outstanding - diluted

 

51,104

 

 

 

50,358

 

 

 

51,582

 

 

 

46,451

 

 

 

 

 

 

 

 

 

Net claims and claim expense ratio

 

53.2

%

 

 

49.1

%

 

 

50.9

%

 

 

49.7

%

Underwriting expense ratio

 

31.6

%

 

 

28.9

%

 

 

30.4

%

 

 

29.1

%

Combined ratio

 

84.8

%

 

 

78.0

%

 

 

81.3

%

 

 

78.8

%

 

 

 

 

 

 

 

 

Return on average common equity - annualized

 

47.1

%

 

 

11.5

%

 

 

28.8

%

 

 

22.1

%

Operating return on average common equity - annualized (1)

 

21.7

%

 

 

25.3

%

 

 

26.0

%

 

 

28.0

%

(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)

 

 

 

 

 

September 30,
2024

 

December 31,
2023

Assets

 

 

 

Fixed maturity investments trading, at fair value

$

24,287,185

 

 

$

20,877,108

 

Short term investments, at fair value

 

4,302,991

 

 

 

4,604,079

 

Equity investments, at fair value

 

133,091

 

 

 

106,766

 

Other investments, at fair value

 

4,172,451

 

 

 

3,515,566

 

Investments in other ventures, under equity method

 

137,959

 

 

 

112,624

 

Total investments

 

33,033,677

 

 

 

29,216,143

 

Cash and cash equivalents

 

1,572,911

 

 

 

1,877,518

 

Premiums receivable

 

8,226,928

 

 

 

7,280,682

 

Prepaid reinsurance premiums

 

1,197,533

 

 

 

924,777

 

Reinsurance recoverable

 

4,738,637

 

 

 

5,344,286

 

Accrued investment income

 

223,003

 

 

 

205,713

 

Deferred acquisition costs and value of business acquired

 

1,719,100

 

 

 

1,751,437

 

Deferred tax asset

 

650,712

 

 

 

685,040

 

Receivable for investments sold

 

332,048

 

 

 

622,197

 

Other assets

 

344,383

 

 

 

323,960

 

Goodwill and other intangible assets

 

717,478

 

 

 

775,352

 

Total assets

$

52,756,410

 

 

$

49,007,105

 

Liabilities, Noncontrolling Interests and Shareholders’ Equity

 

 

 

Liabilities

 

 

 

Reserve for claims and claim expenses

$

21,221,194

 

 

$

20,486,869

 

Unearned premiums

 

7,041,149

 

 

 

6,136,135

 

Debt

 

1,935,928

 

 

 

1,958,655

 

Reinsurance balances payable

 

3,179,282

 

 

 

3,186,174

 

Payable for investments purchased

 

606,601

 

 

 

661,611

 

Other liabilities

 

668,673

 

 

 

1,021,872

 

Total liabilities

 

34,652,827

 

 

 

33,451,316

 

Redeemable noncontrolling interests

 

6,860,999

 

 

 

6,100,831

 

Shareholders’ Equity

 

 

 

Preference shares

 

750,000

 

 

 

750,000

 

Common shares

 

51,940

 

 

 

52,694

 

Additional paid-in capital

 

1,959,061

 

 

 

2,144,459

 

Accumulated other comprehensive income (loss)

 

(13,027

)

 

 

(14,211

)

Retained earnings

 

8,494,610

 

 

 

6,522,016

 

Total shareholders’ equity attributable to RenaissanceRe

 

11,242,584

 

 

 

9,454,958

 

Total liabilities, noncontrolling interests and shareholders’ equity

$

52,756,410

 

 

$

49,007,105

 

 

 

 

 

Book value per common share

$

202.01

 

 

$

165.20

 

RenaissanceRe Holdings Ltd.

Supplemental Financial Data - Segment Information

(in thousands of United States Dollars, except percentages)

(Unaudited)

 

Three months ended September 30, 2024

 

Property

 

Casualty and Specialty

 

Other

 

Total

Gross premiums written

$

790,709

 

 

$

1,609,427

 

 

$

 

 

$

2,400,136

 

Net premiums written

$

701,222

 

 

$

1,461,282

 

 

$

 

 

$

2,162,504

 

Net premiums earned

$

994,777

 

 

$

1,588,192

 

 

$

 

 

$

2,582,969

 

Net claims and claim expenses incurred

 

329,967

 

 

 

1,043,647

 

 

 

 

 

 

1,373,614

 

Acquisition expenses

 

192,439

 

 

 

497,899

 

 

 

 

 

 

690,338

 

Operational expenses

 

77,688

 

 

 

47,573

 

 

 

 

 

 

125,261

 

Underwriting income (loss)

$

394,683

 

 

$

(927

)

 

$

 

 

 

393,756

 

Net investment income

 

 

 

 

 

423,859

 

 

 

423,859

 

Net foreign exchange gains (losses)

 

 

 

 

 

16,804

 

 

 

16,804

 

Equity in earnings of other ventures

 

 

 

 

 

5,718

 

 

 

5,718

 

Other income (loss)

 

 

 

 

 

680

 

 

 

680

 

Net realized and unrealized gains (losses) on investments

 

 

 

 

 

943,745

 

 

 

943,745

 

Corporate expenses

 

 

 

 

 

(26,078

)

 

 

(26,078

)

Interest expense

 

 

 

 

 

(23,809

)

 

 

(23,809

)

Income (loss) before taxes and redeemable noncontrolling interests

 

 

 

 

 

 

 

1,734,675

 

Income tax benefit (expense)

 

 

 

 

 

(102,012

)

 

 

(102,012

)

Net (income) loss attributable to redeemable noncontrolling interests

 

 

 

 

 

(450,176

)

 

 

(450,176

)

Dividends on preference shares

 

 

 

 

 

(8,843

)

 

 

(8,843

)

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

 

 

 

 

 

 

$

1,173,644

 

 

 

 

 

 

 

 

 

Net claims and claim expenses incurred – current accident year

$

621,710

 

 

$

1,044,410

 

 

$

 

 

$

1,666,120

 

Net claims and claim expenses incurred – prior accident years

 

(291,743

)

 

 

(763

)

 

 

 

 

 

(292,506

)

Net claims and claim expenses incurred – total

$

329,967

 

 

$

1,043,647

 

 

$

 

 

$

1,373,614

 

 

 

 

 

 

 

 

 

Net claims and claim expense ratio – current accident year

 

62.5

%

 

 

65.8

%

 

 

 

 

64.5

%

Net claims and claim expense ratio – prior accident years

 

(29.3

)%

 

 

(0.1

)%

 

 

 

 

(11.3

)%

Net claims and claim expense ratio – calendar year

 

33.2

%

 

 

65.7

%

 

 

 

 

53.2

%

Underwriting expense ratio

 

27.1

%

 

 

34.4

%

 

 

 

 

31.6

%

Combined ratio

 

60.3

%

 

 

100.1

%

 

 

 

 

84.8

%

 

 

 

 

 

 

 

 

 

Three months ended September 30, 2023

 

Property

 

Casualty and Specialty

 

Other

 

Total

Gross premiums written

$

511,012

 

 

$

1,107,431

 

 

$

 

 

$

1,618,443

 

Net premiums written

$

444,872

 

 

$

976,388

 

 

$

 

 

$

1,421,260

 

Net premiums earned

$

760,365

 

 

$

995,511

 

 

$

 

 

$

1,755,876

 

Net claims and claim expenses incurred

 

206,361

 

 

 

655,215

 

 

 

 

 

 

861,576

 

Acquisition expenses

 

143,348

 

 

 

282,397

 

 

 

 

 

 

425,745

 

Operational expenses

 

54,624

 

 

 

28,127

 

 

 

 

 

 

82,751

 

Underwriting income (loss)

$

356,032

 

 

$

29,772

 

 

$

 

 

 

385,804

 

Net investment income

 

 

 

 

 

329,108

 

 

 

329,108

 

Net foreign exchange gains (losses)

 

 

 

 

 

(25,886

)

 

 

(25,886

)

Equity in earnings of other ventures

 

 

 

 

 

10,842

 

 

 

10,842

 

Other income (loss)

 

 

 

 

 

(5,866

)

 

 

(5,866

)

Net realized and unrealized gains (losses) on investments

 

 

 

 

 

(228,087

)

 

 

(228,087

)

Corporate expenses

 

 

 

 

 

(17,143

)

 

 

(17,143

)

Interest expense

 

 

 

 

 

(22,951

)

 

 

(22,951

)

Income (loss) before taxes and redeemable noncontrolling interests

 

 

 

 

 

 

 

425,821

 

Income tax benefit (expense)

 

 

 

 

 

(9,295

)

 

 

(9,295

)

Net (income) loss attributable to redeemable noncontrolling interests

 

 

 

 

 

(213,695

)

 

 

(213,695

)

Dividends on preference shares

 

 

 

 

 

(8,843

)

 

 

(8,843

)

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

 

 

 

 

 

 

$

193,988

 

 

 

 

 

 

 

 

 

Net claims and claim expenses incurred – current accident year

$

350,238

 

 

$

669,285

 

 

$

 

 

$

1,019,523

 

Net claims and claim expenses incurred – prior accident years

 

(143,877

)

 

 

(14,070

)

 

 

 

 

 

(157,947

)

Net claims and claim expenses incurred – total

$

206,361

 

 

$

655,215

 

 

$

 

 

$

861,576

 

 

 

 

 

 

 

 

 

Net claims and claim expense ratio – current accident year

 

46.1

%

 

 

67.2

%

 

 

 

 

58.1

%

Net claims and claim expense ratio – prior accident years

 

(19.0

)%

 

 

(1.4

)%

 

 

 

 

(9.0

)%

Net claims and claim expense ratio – calendar year

 

27.1

%

 

 

65.8

%

 

 

 

 

49.1

%

Underwriting expense ratio

 

26.1

%

 

 

31.2

%

 

 

 

 

28.9

%

Combined ratio

 

53.2

%

 

 

97.0

%

 

 

 

 

78.0

%

RenaissanceRe Holdings Ltd.

Supplemental Financial Data - Segment Information

(in thousands of United States Dollars, except percentages)

(Unaudited)

 

Nine months ended September 30, 2024

 

Property

 

Casualty and Specialty

 

Other

 

Total

Gross premiums written

$

4,433,688

 

 

$

5,382,627

 

 

$

 

 

$

9,816,315

 

Net premiums written

$

3,457,500

 

 

$

4,743,088

 

 

$

 

 

$

8,200,588

 

Net premiums earned

$

2,911,694

 

 

$

4,656,500

 

 

$

 

 

$

7,568,194

 

Net claims and claim expenses incurred

 

757,570

 

 

 

3,091,669

 

 

 

 

 

 

3,849,239

 

Acquisition expenses

 

566,566

 

 

 

1,399,131

 

 

 

 

 

 

1,965,697

 

Operational expenses

 

206,737

 

 

 

132,747

 

 

 

 

 

 

339,484

 

Underwriting income (loss)

$

1,380,821

 

 

$

32,953

 

 

$

 

 

 

1,413,774

 

Net investment income

 

 

 

 

 

1,225,479

 

 

 

1,225,479

 

Net foreign exchange gains (losses)

 

 

 

 

 

(27,694

)

 

 

(27,694

)

Equity in earnings of other ventures

 

 

 

 

 

32,435

 

 

 

32,435

 

Other income (loss)

 

 

 

 

 

799

 

 

 

799

 

Net realized and unrealized gains (losses) on investments

 

 

 

 

 

602,507

 

 

 

602,507

 

Corporate expenses

 

 

 

 

 

(100,489

)

 

 

(100,489

)

Interest expense

 

 

 

 

 

(70,522

)

 

 

(70,522

)

Income (loss) before taxes and redeemable noncontrolling interests

 

 

 

 

 

 

 

3,076,289

 

Income tax benefit (expense)

 

 

 

 

 

(96,536

)

 

 

(96,536

)

Net (income) loss attributable to redeemable noncontrolling interests

 

 

 

 

 

(919,734

)

 

 

(919,734

)

Dividends on preference shares

 

 

 

 

 

(26,531

)

 

 

(26,531

)

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

 

 

 

 

 

 

$

2,033,488

 

 

 

 

 

 

 

 

 

Net claims and claim expenses incurred – current accident year

$

1,228,371

 

 

$

3,118,726

 

 

$

 

 

$

4,347,097

 

Net claims and claim expenses incurred – prior accident years

 

(470,801

)

 

 

(27,057

)

 

 

 

 

 

(497,858

)

Net claims and claim expenses incurred – total

$

757,570

 

 

$

3,091,669

 

 

$

 

 

$

3,849,239

 

 

 

 

 

 

 

 

 

Net claims and claim expense ratio – current accident year

 

42.2

%

 

 

67.0

%

 

 

 

 

57.4

%

Net claims and claim expense ratio – prior accident years

 

(16.2

)%

 

 

(0.6

)%

 

 

 

 

(6.5

)%

Net claims and claim expense ratio – calendar year

 

26.0

%

 

 

66.4

%

 

 

 

 

50.9

%

Underwriting expense ratio

 

26.6

%

 

 

32.9

%

 

 

 

 

30.4

%

Combined ratio

 

52.6

%

 

 

99.3

%

 

 

 

 

81.3

%

 

 

 

 

 

 

 

 

 

Nine months ended September 30, 2023

 

Property

 

Casualty and Specialty

 

Other

 

Total

Gross premiums written

$

3,217,817

 

 

$

3,842,508

 

 

$

 

 

$

7,060,325

 

Net premiums written

$

2,609,356

 

 

$

3,271,410

 

 

$

 

 

$

5,880,766

 

Net premiums earned

$

2,206,471

 

 

$

3,015,217

 

 

$

 

 

$

5,221,688

 

Net claims and claim expenses incurred

 

675,963

 

 

 

1,918,024

 

 

 

 

 

 

2,593,987

 

Acquisition expenses

 

429,273

 

 

 

851,274

 

 

 

 

 

 

1,280,547

 

Operational expenses

 

165,514

 

 

 

75,202

 

 

 

 

 

 

240,716

 

Underwriting income (loss)

$

935,721

 

 

$

170,717

 

 

$

 

 

 

1,106,438

 

Net investment income

 

 

 

 

 

876,148

 

 

 

876,148

 

Net foreign exchange gains (losses)

 

 

 

 

 

(53,877

)

 

 

(53,877

)

Equity in earnings of other ventures

 

 

 

 

 

28,072

 

 

 

28,072

 

Other income (loss)

 

 

 

 

 

(6,296

)

 

 

(6,296

)

Net realized and unrealized gains (losses) on investments

 

 

 

 

 

(171,417

)

 

 

(171,417

)

Corporate expenses

 

 

 

 

 

(53,357

)

 

 

(53,357

)

Interest expense

 

 

 

 

 

(49,980

)

 

 

(49,980

)

Income (loss) before taxes and redeemable noncontrolling interests

 

 

 

 

 

 

 

1,675,731

 

Income tax benefit (expense)

 

 

 

 

 

(44,139

)

 

 

(44,139

)

Net (income) loss attributable to redeemable noncontrolling interests

 

 

 

 

 

(655,986

)

 

 

(655,986

)

Dividends on preference shares

 

 

 

 

 

(26,531

)

 

 

(26,531

)

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

 

 

 

 

 

 

$

949,075

 

 

 

 

 

 

 

 

 

Net claims and claim expenses incurred – current accident year

$

933,172

 

 

$

1,955,612

 

 

$

 

 

$

2,888,784

 

Net claims and claim expenses incurred – prior accident years

 

(257,209

)

 

 

(37,588

)

 

 

 

 

 

(294,797

)

Net claims and claim expenses incurred – total

$

675,963

 

 

$

1,918,024

 

 

$

 

 

$

2,593,987

 

 

 

 

 

 

 

 

 

Net claims and claim expense ratio – current accident year

 

42.3

%

 

 

64.9

%

 

 

 

 

55.3

%

Net claims and claim expense ratio – prior accident years

 

(11.7

)%

 

 

(1.3

)%

 

 

 

 

(5.6

)%

Net claims and claim expense ratio – calendar year

 

30.6

%

 

 

63.6

%

 

 

 

 

49.7

%

Underwriting expense ratio

 

27.0

%

 

 

30.7

%

 

 

 

 

29.1

%

Combined ratio

 

57.6

%

 

 

94.3

%

 

 

 

 

78.8

%

RenaissanceRe Holdings Ltd.

Supplemental Financial Data - Gross Premiums Written

(in thousands of United States Dollars)

(Unaudited)

 

 

 

 

 

Three months ended

 

Nine months ended

 

September 30,
2024

 

September 30,
2023

 

September 30,
2024

 

September 30,
2023

Property Segment

 

 

 

 

 

 

 

Catastrophe

$

344,005

 

$

160,821

 

$

2,949,731

 

$

2,091,255

Other property

 

446,704

 

 

350,191

 

 

1,483,957

 

 

1,126,562

Property segment gross premiums written

$

790,709

 

$

511,012

 

$

4,433,688

 

$

3,217,817

 

 

 

 

 

 

 

 

Casualty and Specialty Segment

 

 

 

 

 

 

 

General casualty (1)

$

519,555

 

$

350,954

 

$

1,739,464

 

$

1,194,791

Professional liability (2)

 

331,610

 

 

281,259

 

 

916,196

 

 

971,796

Credit (3)

 

213,826

 

 

139,184

 

 

765,304

 

 

562,845

Other specialty (4)

 

544,436

 

 

336,034

 

 

1,961,663

 

 

1,113,076

Casualty and Specialty segment gross premiums written

$

1,609,427

 

$

1,107,431

 

$

5,382,627

 

$

3,842,508

(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

 

Nine months ended

 

September 30,
2024

 

September 30,
2023

 

September 30,
2024

 

September 30,
2023

Fixed maturity investments trading

$

289,687

 

 

$

188,781

 

 

$

820,876

 

 

$

514,020

 

Short term investments

 

46,746

 

 

 

66,722

 

 

 

141,923

 

 

 

149,903

 

Equity investments

 

670

 

 

 

510

 

 

 

1,819

 

 

 

6,675

 

Other investments

 

 

 

 

 

 

 

Catastrophe bonds

 

61,175

 

 

 

54,583

 

 

 

177,860

 

 

 

142,936

 

Other

 

20,937

 

 

 

20,031

 

 

 

59,525

 

 

 

65,422

 

Cash and cash equivalents

 

10,226

 

 

 

4,160

 

 

 

40,347

 

 

 

13,009

 

 

 

429,441

 

 

 

334,787

 

 

 

1,242,350

 

 

 

891,965

 

Investment expenses

 

(5,582

)

 

 

(5,679

)

 

 

(16,871

)

 

 

(15,817

)

Net investment income

$

423,859

 

 

$

329,108

 

 

$

1,225,479

 

 

$

876,148

 

 

 

 

 

 

 

 

 

Net investment income return - annualized

 

5.7

%

 

 

5.7

%

 

 

5.5

%

 

 

5.1

%

 

 

 

 

 

 

 

 

Net realized gains (losses) on fixed maturity investments trading

$

22,052

 

 

$

(121,112

)

 

$

(33,965

)

 

$

(300,089

)

Net unrealized gains (losses) on fixed maturity investments trading

 

590,309

 

 

 

(158,226

)

 

 

353,465

 

 

 

14,007

 

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

 

612,361

 

 

 

(279,338

)

 

 

319,500

 

 

 

(286,082

)

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

 

97,534

 

 

 

30,594

 

 

 

50,102

 

 

 

(22,295

)

Net realized gains (losses) on equity investments

 

340

 

 

 

(10

)

 

 

355

 

 

 

(27,503

)

Net unrealized gains (losses) on equity investments

 

18,778

 

 

 

2,261

 

 

 

26,368

 

 

 

62,039

 

Net realized and unrealized gains (losses) on equity investments

 

19,118

 

 

 

2,251

 

 

 

26,723

 

 

 

34,536

 

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

 

66,291

 

 

 

32,474

 

 

 

51,091

 

 

 

94,786

 

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

 

148,441

 

 

 

(14,068

)

 

 

155,091

 

 

 

7,638

 

Net realized and unrealized gains (losses) on investments

 

943,745

 

 

 

(228,087

)

 

 

602,507

 

 

 

(171,417

)

Total investment result

$

1,367,604

 

 

$

101,021

 

 

$

1,827,986

 

 

$

704,731

 

 

 

 

 

 

 

 

 

Total investment return - annualized

 

18.3

%

 

 

2.0

%

 

 

8.2

%

 

 

4.2

%

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, Operating Income (Loss) Available (Attributable) to RenaissanceRe Common Shareholders per Common Share – Diluted 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) expenses or revenues associated with acquisitions, dispositions and impairments, (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

 

Nine months ended

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

September 30,
2024

 

September 30,
2023

 

September 30,
2024

 

September 30,
2023

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

$

1,173,644

 

 

$

193,988

 

 

$

2,033,488

 

 

$

949,075

 

Adjustment for:

 

 

 

 

 

 

 

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

 

(877,454

)

 

 

260,561

 

 

 

(551,416

)

 

 

266,203

 

Net foreign exchange losses (gains)

 

(16,804

)

 

 

25,886

 

 

 

27,694

 

 

 

53,877

 

Expenses (revenues) associated with acquisitions, dispositions and impairments (1)

 

17,400

 

 

 

3,373

 

 

 

54,968

 

 

 

14,714

 

Acquisition related purchase accounting adjustments (2)

 

59,812

 

 

 

4,017

 

 

 

183,175

 

 

 

12,054

 

Bermuda net deferred tax asset (3)

 

 

 

 

 

 

 

(7,890

)

 

 

 

Income tax expense (benefit) (4)

 

65,285

 

 

 

(10,048

)

 

 

46,325

 

 

 

(8,961

)

Net income (loss) attributable to redeemable noncontrolling interests (5)

 

118,439

 

 

 

(51,457

)

 

 

41,205

 

 

 

(85,162

)

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

$

540,322

 

 

$

426,320

 

 

$

1,827,549

 

 

$

1,201,800

 

 

 

 

 

 

 

 

 

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

$

22.62

 

 

$

3.80

 

 

$

38.84

 

 

$

20.13

 

Adjustment for:

 

 

 

 

 

 

 

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

 

(17.17

)

 

 

5.17

 

 

 

(10.69

)

 

 

5.73

 

Net foreign exchange losses (gains)

 

(0.33

)

 

 

0.51

 

 

 

0.54

 

 

 

1.16

 

Expenses (revenues) associated with acquisitions, dispositions and impairments (1)

 

0.34

 

 

 

0.07

 

 

 

1.07

 

 

 

0.32

 

Acquisition related purchase accounting adjustments (2)

 

1.17

 

 

 

0.08

 

 

 

3.55

 

 

 

0.26

 

Bermuda net deferred tax asset (3)

 

 

 

 

 

 

 

(0.15

)

 

 

 

Income tax expense (benefit) (4)

 

1.28

 

 

 

(0.20

)

 

 

0.90

 

 

 

(0.19

)

Net income (loss) attributable to redeemable noncontrolling interests (5)

 

2.32

 

 

 

(1.02

)

 

 

0.80

 

 

 

(1.83

)

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

$

10.23

 

 

$

8.41

 

 

$

34.86

 

 

$

25.58

 

 

 

 

 

 

 

 

 

Return on average common equity - annualized

 

47.1

%

 

 

11.5

%

 

 

28.8

%

 

 

22.1

%

Adjustment for:

 

 

 

 

 

 

 

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

 

(35.2

)%

 

 

15.5

%

 

 

(7.8

)%

 

 

6.2

%

Net foreign exchange losses (gains)

 

(0.7

)%

 

 

1.5

%

 

 

0.4

%

 

 

1.3

%

Expenses (revenues) associated with acquisitions, dispositions and impairments (1)

 

0.7

%

 

 

0.2

%

 

 

0.8

%

 

 

0.3

%

Acquisition related purchase accounting adjustments (2)

 

2.4

%

 

 

0.3

%

 

 

2.6

%

 

 

0.3

%

Bermuda net deferred tax asset (3)

 

%

 

 

%

 

 

(0.1

)%

 

 

%

Income tax expense (benefit) (4)

 

2.6

%

 

 

(0.6

)%

 

 

0.7

%

 

 

(0.2

)%

Net income (loss) attributable to redeemable noncontrolling interests (5)

 

4.8

%

 

 

(3.1

)%

 

 

0.6

%

 

 

(2.0

)%

Operating return on average common equity - annualized

 

21.7

%

 

 

25.3

%

 

 

26.0

%

 

 

28.0

%

(1)

Previously reported "corporate expenses associated with acquisitions and dispositions" has been amended to "expenses (revenues) associated with acquisitions, dispositions and impairments" to now also include impairments on strategic investments related to acquisitions and dispositions.

(2)

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 nine months ended September 30, 2024 for the acquisitions of Validus - $56.0 million and $171.9 million, respectively (2023 - $Nil and $Nil, respectively); and TMR and Platinum - $3.8 million and $11.3 million respectively (2023 - $4.0 million and $12.1 million respectively).

(3)

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.

(4)

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.

(5)

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.

 

September 30,
2024

 

September 30,
2023

Book value per common share

$

202.01

 

 

$

133.63

 

Adjustment for:

 

 

 

Acquisition related goodwill and other intangible assets (1)

 

(13.81

)

 

 

(4.57

)

Other goodwill and intangible assets (2)

 

(0.17

)

 

 

(0.35

)

Acquisition related purchase accounting adjustments (3)

 

(5.27

)

 

 

(1.25

)

Tangible book value per common share

 

182.76

 

 

 

127.46

 

Adjustment for accumulated dividends

 

27.69

 

 

 

26.14

 

Tangible book value per common share plus accumulated dividends

$

210.45

 

 

$

153.60

 

 

 

 

 

Quarterly change in book value per common share

 

12.3

%

 

 

2.8

%

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

 

12.5

%

 

 

3.1

%

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

 

15.0

%

 

 

3.3

%

(1)

Represents the acquired goodwill and other intangible assets at September 30, 2024 for the acquisitions of Validus $488.4 million (September 30, 2023 - $Nil), TMR $26.4 million (September 30, 2023 - $27.4 million) and Platinum $202.7 million (September 30, 2023 - $206.5 million).

(2)

At September 30, 2024, the adjustment for other goodwill and intangible assets included $8.9 million (September 30, 2023 - $18.2 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 September 30, 2024 for the acquisitions of Validus $220.1 million (September 30, 2023 - $Nil), TMR $54.4 million (September 30, 2023 - $64.9 million) and Platinum $(0.7) million (September 30, 2023 - $(0.8) 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 September 30, 2024

 

Catastrophe

 

Other
Property

 

Property

 

Casualty and Specialty

 

Total

Combined ratio

43.2

%

 

85.6

%

 

60.3

%

 

100.1

%

 

84.8

%

Adjustment for acquisition related purchase accounting adjustments (1)

(2.9

)%

 

(1.3

)%

 

(2.2

)%

 

(2.4

)%

 

(2.4

)%

Adjusted combined ratio

40.3

%

 

84.3

%

 

58.1

%

 

97.7

%

 

82.4

%

 

 

 

 

 

 

 

 

 

 

 

Three months ended September 30, 2023

 

Catastrophe

 

Other
Property

 

Property

 

Casualty and Specialty

 

Total

Combined ratio

31.5

%

 

78.2

%

 

53.2

%

 

97.0

%

 

78.0

%

Adjustment for acquisition related purchase accounting adjustments (1)

(0.2

)%

 

(0.1

)%

 

(0.2

)%

 

(0.3

)%

 

(0.2

)%

Adjusted combined ratio

31.3

%

 

78.1

%

 

53.0

%

 

96.7

%

 

77.8

%

 

 

 

 

 

 

 

 

 

 

 

Nine months ended September 30, 2024

 

Catastrophe

 

Other
Property

 

Property

 

Casualty and Specialty

 

Total

Combined ratio

30.6

%

 

84.1

%

 

52.6

%

 

99.3

%

 

81.3

%

Adjustment for acquisition related purchase accounting adjustments (1)

(3.2

)%

 

(0.9

)%

 

(2.4

)%

 

(2.5

)%

 

(2.4

)%

Adjusted combined ratio

27.4

%

 

83.2

%

 

50.2

%

 

96.8

%

 

78.9

%

 

 

 

 

 

 

 

 

 

 

 

Nine months ended September 30, 2023

 

Catastrophe

 

Other
Property

 

Property

 

Casualty and Specialty

 

Total

Combined ratio

35.2

%

 

83.6

%

 

57.6

%

 

94.3

%

 

78.8

%

Adjustment for acquisition related purchase accounting adjustments (1)

(0.2

)%

 

(0.1

)%

 

(0.2

)%

 

(0.2

)%

 

(0.2

)%

Adjusted combined ratio

35.0

%

 

83.5

%

 

57.4

%

 

94.1

%

 

78.6

%

(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

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