- 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.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241106219412/en/
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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