RenaissanceRe Reports $198.5 million of Quarterly Net Loss
Attributable to Common Shareholders and $406.9 million of Operating
Income Available to Common Shareholders in Q4 2024.
Full Year 2024
Highlights
- Return on average common equity of 19.3% and operating return
on average common equity of 23.5%.
- 18.5% growth in book value per share and 26.0% growth in
tangible book value per share plus change in accumulated
dividends.
- Strong performance across Three Drivers of Profit: underwriting
income of $1.6 billion, net investment income of $1.7 billion, and
fee income of $326.8 million.
- Combined ratio of 83.9% and adjusted combined ratio of
81.5%.
- Repurchased $677.6 million of common shares in 2024, including
$462.3 million in the fourth quarter.
- Raised $857.4 million of third-party capital in the Capital
Partners unit, with a further $237.8 million raised from
third-party investors effective January 1, 2025.
Fourth Quarter 2024
Highlights
- Annualized return on average common equity of (7.8)% and
annualized operating return on average common equity of 16.0%.
- Combined ratio of 91.7% and adjusted combined ratio of
89.4%.
- Fee income of $77.1 million; up 8.9% from Q4 2023.
- Net investment income of $428.8 million; up 13.8% from Q4
2023.
- Mark-to-market losses of $630.3 million, primarily driven by
$565.9 million of losses related to the fixed maturity
portfolio.
- Hurricane Milton had a net negative impact of $270.5 million on
net income (loss) available (attributable) to common shareholders
and added 13.9 percentage points to the combined ratio.
RenaissanceRe Holdings Ltd. (NYSE: RNR) (“RenaissanceRe” or the
“Company”) today announced its financial results for the fourth
quarter and full year 2024.
Fourth Quarter 2024
Net Income Available to Common
Shareholders per Diluted Common Share: $(3.95)
Operating Income Available to
Common Shareholders per Diluted Common Share: $8.06
Underwriting Income
$208.6M
Fee Income
$77.1M
Net Investment Income
$428.8M
Change in Book Value per
Common Share: (3.1)%
Change in Tangible Book Value
per Common Share Plus Change in Accum. Dividends: (2.8)%
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 delivered another strong year.
Our primary metric -- growth in tangible book value per share plus
change in accumulated dividends – was 26%. At the same time, we
fulfilled our purpose while demonstrating our relevance to our
customers, rapidly paying claims against a backdrop of elevated
catastrophic events punctuated by two large hurricanes. At the
January 1 renewal, our long-term partnership approach was rewarded
with preferential signings across our business, and we retained our
attractive underwriting book. Looking forward, we believe our
strong capital and liquidity positions will allow us to capture
additional opportunities, bolstering our leadership position and
generating superior shareholder value.”
Consolidated Financial Results
- Fourth Quarter
Consolidated Highlights
Three months ended December
31,
(in thousands, except per share amounts
and percentages)
2024
2023
Gross premiums written
$
1,916,751
$
1,802,041
Net premiums written
1,751,628
1,587,047
Net premiums earned
2,527,566
2,249,445
Underwriting income (loss)
208,550
540,970
Combined ratio
91.7
%
76.0
%
Adjusted combined ratio (1)
89.4
%
73.6
%
Net Income (Loss)
Available (attributable) to common
shareholders
(198,503
)
1,576,682
Available (attributable) to common
shareholders per diluted common share
$
(3.95
)
$
30.43
Return on average common equity -
annualized
(7.8
)%
83.5
%
Operating Income (Loss) (1)
Available (attributable) to common
shareholders (1)
406,877
623,110
Available (attributable) to common
shareholders per diluted common share (1)
$
8.06
$
11.77
Operating return on average common equity
- annualized (1)
16.0
%
33.0
%
Book Value per Share
Book value per common share
$
195.77
$
165.20
Quarterly change in book value per share
(2)
(3.1
)%
23.6
%
Quarterly change in book value per common
share plus change in accumulated dividends (2)
(2.9
)%
23.9
%
Tangible Book Value per Share
(1)
Tangible book value per common share plus
accumulated dividends (1)
$
205.26
$
168.39
Quarterly change in tangible book value
per common share plus change in accumulated dividends (1) (2)
(2.8
)%
11.6
%
(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 months and year ended December 31, 2024, compared to the
three months and year ended December 31, 2023, should be viewed in
that context.
Three Drivers of Profit:
Underwriting, Fee and Investment Income - Fourth Quarter
Underwriting Results - Property
Segment: Combined ratio of 71.6%, including a 41.8 percentage point
impact from Hurricane Milton
Property Segment
Three months ended December
31,
Q/Q Change
(in thousands, except percentages)
2024
2023
Gross premiums written
$
390,043
$
344,597
13.2
%
Net premiums written
376,136
357,953
5.1
%
Net premiums earned
938,658
884,321
6.1
%
Underwriting income (loss)
266,891
503,606
Underwriting Ratios
Net claims and claim expense ratio -
current accident year
78.0
%
31.2
%
46.8 pts
Net claims and claim expense ratio - prior
accident years
(37.1
)%
(17.2
)%
(19.9) pts
Net claims and claim expense ratio -
calendar year
40.9
%
14.0
%
26.9 pts
Underwriting expense ratio
30.7
%
29.1
%
1.6 pts
Combined ratio
71.6
%
43.1
%
28.5 pts
Adjusted combined ratio (1)
69.2
%
41.7
%
27.5 pts
(1)
See “Comments on Non-GAAP Financial
Measures” for a reconciliation of non-GAAP financial measures.
- Gross premiums written increased by $45.4 million, or
13.2%, primarily due to a $53.4 million increase in the other
property class of business, in both catastrophe and non-catastrophe
exposed business, reflecting the renewal of business acquired in
the Validus Acquisition and organic growth.
- Net premiums written increased by $18.2 million, or
5.1%, 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 46.8 percentage points, due to a higher
impact from large loss events compared to the fourth quarter of
2023. Hurricane Milton added 45.9 percentage points to the
catastrophe class of business and 32.7 percentage points to the
other property class of business.
- Net claims and claim expense ratio - prior accident
years reflected net favorable development of 37.1%, primarily
driven by:
– net favorable development of $321.4 million
from large catastrophe events across the 2017 to 2023 accident
years, including $256.2 million from the weather-related large
losses in 2021 and 2022; and
– net favorable development on attritional
losses across the other property class of business.
- Underwriting expense ratio increased 1.6 percentage
points, primarily due to:
– a 1.1 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 2.0 percentage points to the
acquisition expense ratio in the fourth 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 0.5 percentage point increase in the
operating expense ratio primarily due to an increase in operating
expenses following the Validus Acquisition.
- Combined ratio increased by 28.5 percentage points, and
adjusted combined ratio, which removes the impact of
acquisition related purchase accounting adjustments, increased by
27.5 percentage points, each primarily due to the impact of
Hurricane Milton, partially offset by higher favorable development
of prior accident years net claims and claim expenses.
Underwriting Results - Casualty and Specialty Segment:
Combined ratio of 103.7% and adjusted combined ratio of 101.3%,
with current accident year loss ratio of 69.5%
Casualty and Specialty Segment
Three months ended December
31,
Q/Q Change
(in thousands, except percentages)
2024
2023
Gross premiums written
$
1,526,708
$
1,457,444
4.8
%
Net premiums written
1,375,492
1,229,094
11.9
%
Net premiums earned
1,588,908
1,365,124
16.4
%
Underwriting income (loss)
(58,341
)
37,364
Underwriting Ratios
Net claims and claim expense ratio -
current accident year
69.5
%
63.0
%
6.5 pts
Net claims and claim expense ratio - prior
accident years
(0.3
)%
(0.3
)%
— pts
Net claims and claim expense ratio -
calendar year
69.2
%
62.7
%
6.5 pts
Underwriting expense ratio
34.5
%
34.6
%
(0.1) pts
Combined ratio
103.7
%
97.3
%
6.4 pts
Adjusted combined ratio (1)
101.3
%
94.3
%
7.0 pts
(1)
See “Comments on Non-GAAP Financial
Measures” for a reconciliation of non-GAAP financial measures.
- Gross premiums written increased by $69.3 million, or
4.8%, primarily driven by increases in the other specialty and
professional liability classes of business and partially offset by
a decrease in the credit class of business.
- Net premiums written increased 11.9%, consistent with
the drivers for gross premiums written discussed above, in addition
to an overall reduction in retrocessional purchases.
- Combined ratio increased by 6.4 percentage points, and
adjusted combined ratio, which removes the impact of
acquisition related purchase accounting adjustments, increased by
7.0 percentage points, each primarily due to the increase in the
net claims and claim expense ratio.
- Net claims and claim expense ratio - current accident
year increased by 6.5 percentage points compared to the fourth
quarter of 2023, driven by higher losses principally within the
general casualty 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.
Fee Income: $77.1 million of fee income, up 8.9% from Q4
2023
Fee Income
Three months ended December
31,
Q/Q Change
(in thousands)
2024
2023
Total management fee income
$
53,536
$
47,769
$
5,767
Total performance fee income (loss)
(1)
23,568
23,014
554
Total fee income
$
77,104
$
70,783
$
6,321
(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 $5.8 million, reflecting
growth in the Company’s joint ventures and managed funds,
specifically DaVinci and Fontana.
- Performance fee income remained strong, driven by
positive underwriting results and prior year favorable
development.
Investment Results: Net investment income up $51.8 million
from Q4 2023; total investment result driven by net realized and
unrealized losses, primarily in the fixed maturity investments
portfolio
Investment Results
Three months ended December
31,
Q/Q Change
(in thousands, except percentages)
2024
2023
Net investment income
$
428,810
$
376,962
$
51,848
Net realized and unrealized gains (losses)
on investments
(630,347
)
585,939
(1,216,286
)
Total investment result
$
(201,537
)
$
962,901
$
(1,164,438
)
Net investment income return -
annualized
5.3
%
5.7
%
(0.4) pts
Total investment return - annualized
(2.4
)%
15.2
%
(17.6) pts
- Net investment income increased $51.8 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 losses on investments
increased by $1.2 billion, principally driven by:
– higher net realized and unrealized losses
on fixed maturity investments trading of $1.1 billion, primarily
due to increases in market yields in Q4 2024, as compared to
decreases in Q4 2023; and
– an increase in net realized and unrealized
losses on investment-related derivatives of $61.4 million,
primarily as a result of increased losses on long interest rate
futures from the market yield movements noted above, offset by
lower losses on credit default swaps.
- Total investments were $32.6 billion at December 31,
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 5.4% and 2.9 years, respectively
(December 31, 2023 - 5.8% and 2.6 years, respectively).
Other Items of Note - Fourth
Quarter
- Net income attributable to redeemable noncontrolling
interests of $170.4 million was primarily driven by:
– strong underwriting results in DaVinci and
Vermeer;
– 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; partially offset by
– net realized and unrealized losses in the
investment portfolios of the Company’s joint ventures and managed
funds.
- Income tax benefit of $63.9 million in Q4 2024, compared
to $554.2 million in Q4 2023. The income tax benefit in Q4 2024 was
primarily driven by losses in the Company’s U.S. operations, as
compared to Q4 2023, which was primarily driven by a net deferred
tax benefit of $593.8 million recorded in connection with the
enactment of the 15% Bermuda corporate income tax act on December
27, 2023.
- Net foreign exchange losses of $48.4 million in Q4 2024,
an increase of $60.8 million from Q4 2023. The net foreign exchange
losses were driven by losses attributable to third-party investors
in Medici which are allocated through net income (loss)
attributable to redeemable noncontrolling interest, and the impact
of certain foreign exchange exposures related to underwriting
activities.
- Share Repurchases of 1.7 million common shares at an
aggregate cost of $462.3 million and an average price of $264.43
per common share.
Consolidated Financial Results
- Full Year
Consolidated Highlights
Year ended December
31,
(in thousands, except per share amounts
and percentages)
2024
2023
Gross premiums written
$
11,733,066
$
8,862,366
Net premiums written
9,952,216
7,467,813
Net premiums earned
10,095,760
7,471,133
Underwriting income (loss)
1,622,324
1,647,408
Combined ratio
83.9
%
77.9
%
Adjusted combined ratio (1)
81.5
%
77.1
%
Net Income (Loss)
Available (attributable) to common
shareholders
$
1,834,985
$
2,525,757
Available (attributable) to common
shareholders per diluted common share
$
35.21
$
52.27
Return on average common equity -
annualized
19.3
%
40.5
%
Operating Income (Loss) (1)
Available (attributable) to common
shareholders (1)
$
2,234,426
$
1,824,910
Available (attributable) to common
shareholders per diluted common share (1)
$
42.99
$
37.54
Operating return on average common equity
(1)
23.5
%
29.3
%
Book Value per Share
Book value per common share
$
195.77
$
165.20
Year to date change in book value per
share (2)
18.5
%
57.9
%
Year to date change in book value per
common share plus change in accumulated dividends (2)
19.4
%
59.3
%
Tangible Book Value per Share
(1)
Tangible book value per common share plus
accumulated dividends (1)
$
205.26
$
168.39
Year to date change in tangible book value
per common share plus change in accumulated dividends (1) (2)
26.0
%
47.6
%
(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.
Three Drivers of Profit: Underwriting, Fee, and Investment
Income - Full Year
Underwriting Results - Property
Segment: Net premiums written increased 29.2%; Combined ratio of
57.2%; 23.0 percentage points from the 2024 Large Loss
Events.
Property Segment
Year ended December
31,
Y/Y Change
(in thousands, except percentages)
2024
2023
Gross premiums written
$
4,823,731
$
3,562,414
35.4
%
Net premiums written
3,833,636
2,967,309
29.2
%
Net premiums earned
3,850,352
3,090,792
24.6
%
Underwriting income (loss)
1,647,712
1,439,327
Underwriting Ratios
Net claims and claim expense ratio -
current accident year
50.9
%
39.1
%
11.8 pts
Net claims and claim expense ratio - prior
accident years
(21.2
)%
(13.2
)%
(8.0) pts
Net claims and claim expense ratio -
calendar year
29.7
%
25.9
%
3.8 pts
Underwriting expense ratio
27.5
%
27.5
%
— pts
Combined ratio
57.2
%
53.4
%
3.8 pts
Adjusted combined ratio (1)
54.9
%
52.9
%
2.0 pts
(1)
See “Comments on Non-GAAP Financial
Measures” for a reconciliation of non-GAAP financial measures.
- Gross premiums written increased $1.3 billion, or 35.4%,
driven by:
– an increase in catastrophe of $850.6
million, or 39.6%, driven by the renewal of business acquired in
the Validus Acquisition, in conjunction with the retention of
legacy lines.
– an increase in other property of $410.8
million, or 29.0%, in both catastrophe and non-catastrophe exposed
business, reflecting the renewal of business acquired in the
Validus Acquisition and organic growth.
- Net premiums written increased $866.3 million, or 29.2%,
consistent with the changes in gross premiums written, partially
offset by an increase in ceded premiums written as part of the
Company’s gross-to-net strategy.
- Net claims and claim expense ratio - current accident
year increased by 11.8 percentage points, primarily as a result
of a higher impact from the 2024 Large Loss Events in 2024 compared
to the impact from the 2023 Large Loss Events in 2023.
– 2024 Large Loss Events contributed 23.1
percentage points to the current accident year net claims and claim
expense ratio in 2024, while the 2023 Large Loss Events contributed
11.0 percentage points in 2023.
- Net claims and claim expense ratio - prior accident
years reflected net favorable development in 2024 of 21.2%,
primarily driven by:
– net favorable development of $622.2 million
from the large loss events across the 2017 to 2023 accident years,
including $464.4 million from the weather-related large losses in
2021 and 2022, driven by better than expected loss emergence;
and
– net favorable development on net
attritional losses within the other property class of business.
- Combined Ratio increased by 3.8 percentage points, and
adjusted combined ratio, which removes the impact of
acquisition related purchase accounting adjustments, increased by
2.0 percentage points, driven by higher current accident year
losses and partially offset by higher prior year favorable
development.
Underwriting Results - Casualty and Specialty Segment: Net
premiums written increased by 36.0%; Combined ratio of 100.4% and
Adjusted combined ratio of 98.0%
Casualty and Specialty Segment
Year ended December
31,
Y/Y Change
(in thousands, except percentages)
2024
2023
Gross premiums written
$
6,909,335
$
5,299,952
30.4
%
Net premiums written
6,118,580
4,500,504
36.0
%
Net premiums earned
6,245,408
4,380,341
42.6
%
Underwriting income (loss)
(25,388
)
208,081
Underwriting Ratios
Net claims and claim expense ratio -
current accident year
67.6
%
64.3
%
3.3 pts
Net claims and claim expense ratio - prior
accident years
(0.5
)%
(1.0
)%
0.5 pts
Net claims and claim expense ratio -
calendar year
67.1
%
63.3
%
3.8 pts
Underwriting expense ratio
33.3
%
31.9
%
1.4 pts
Combined ratio
100.4
%
95.2
%
5.2 pts
Adjusted combined ratio (1)
98.0
%
94.2
%
3.8 pts
(1)
See “Comments on Non-GAAP Financial
Measures” for a reconciliation of non-GAAP financial measures.
- Gross premiums written increased $1.6 billion, or 30.4%,
driven by:
– the renewal of business acquired in the
Validus Acquisition, principally in the other specialty and general
casualty classes of business, which grew by $926.5 million and
$550.7 million, respectively, compared to 2023; and
– organic growth of legacy lines,
particularly within the other specialty class of business.
- Net premiums written increased 36.0%, consistent with
the drivers discussed for gross premiums written above, in addition
to an overall reduction in retrocessional purchases.
- Net claims and claim expense ratio - current accident
year increased by 3.3 percentage points, primarily driven by
higher attritional losses within certain casualty lines of
business, and the impact of 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 1.4 percentage
points due to the impact of purchase accounting adjustments related
to the Validus Acquisition.
- Combined ratio increased by 5.2 percentage points, and
adjusted combined ratio, which removes the impact of
acquisition related purchase accounting adjustments, increased by
3.8 percentage points, each primarily due to the increase in net
claims and claim expense ratio.
Fee Income: $326.8 million of fee income; up 38.0% from 2023;
increase in both management and performance fees
Fee Income
Year ended December
31,
Y/Y Change
(in thousands, except percentages)
2024
2023
Total management fee income
$
219,860
$
176,599
$
43,261
Total performance fee income (loss)
(1)
106,936
60,195
46,741
Total fee income
$
326,796
$
236,794
$
90,002
(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 by $43.3 million,
reflecting growth in the Company’s joint ventures and managed
funds, specifically DaVinci and Fontana, as well as the recording
of management fees in DaVinci in 2024 that were deferred in 2022
and 2021 as a result of the weather-related large losses
experienced in prior years. The increase was partially offset by a
decrease in fees associated with the reduction in capital managed
at Upsilon.
- Performance fee income increased $46.7 million, driven
by improved current year underwriting results, primarily in
DaVinci, Upsilon and the Company’s structured reinsurance
products.
Investment Results: Total investment result of $1.6
billion, driven by net investment income of $1.7 billion and
partially offset by net realized and unrealized losses on
investments of $27.8 million
Investment Results
Year ended December
31,
Y/Y Change
(in thousands, except percentages)
2024
2023
Net investment income
$
1,654,289
$
1,253,110
$
401,179
Net realized and unrealized gains (losses)
on investments
(27,840
)
414,522
(442,362
)
Total investment result
$
1,626,449
$
1,667,632
$
(41,183
)
Net investment income return
5.5
%
5.3
%
0.2 pts
Total investment return
5.4
%
6.9
%
(1.5) pts
- Net investment income increased $401.2 million, due to a
combination of higher average invested assets, primarily resulting
from the Validus Acquisition, and higher yielding assets in the
fixed maturity investments portfolio.
- Net realized and unrealized losses on investments
increased $442.4 million, principally driven by:
– net realized and unrealized losses on fixed
maturity investments trading of $246.4 million in 2024, compared to
net realized and unrealized gains of $292.1 million in 2023,
primarily due to increases in yields on longer duration assets
during 2024, compared to decreases in 2023; and
– an increase in net realized and unrealized
gains on other investments of $159.4 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.
Other Items of Note - Full
Year and Subsequent Events
- Net income attributable to redeemable noncontrolling
interests of $1.1 billion was primarily driven by:
– strong underwriting results in DaVinci and
Vermeer;
– net investment income driven by higher
interest rates and higher yielding assets within the investment
portfolios of the Company’s joint ventures and managed funds;
– net realized and unrealized gains on
catastrophe bonds recorded during the year in Medici; partially
offset by
– net realized and unrealized losses in the
investment portfolios of the Company’s joint ventures and managed
funds.
- Income tax expense of $32.6 million in 2024 compared to
an income tax benefit of $510.1 million in 2023. The income tax
expense in 2024 was primarily driven by operating income in the
Company’s taxable jurisdictions; partially offset by a $33.7
million deferred tax benefit resulting from the merger of
RenaissanceRe Europe AG and Validus Switzerland completed in the
second quarter. The income tax benefit in 2023 was primarily driven
by a net deferred tax benefit of $593.8 million recorded in
connection with the enactment of the 15% Bermuda corporate income
tax on December 27, 2023.
- Net foreign exchange losses of $76.1 million in 2024
compared to a loss of $41.5 million in 2023. The net foreign
exchange losses for 2024 and 2023 were driven by losses
attributable to third-party investors in Medici which are allocated
through net income (loss) attributable to redeemable noncontrolling
interest, and the impact of certain foreign exchange exposures
related to underwriting activities.
- Raised third party capital in 2024 of $857.4 million,
primarily through DaVinci ($300.0 million), Medici ($199.6
million), Fontana ($100.0 million) and Vermeer ($175.0
million).
- Return of third-party capital in 2024 of $1.4 billion,
including:
– $396.9 million of distributions from
DaVinci, Vermeer, Medici and Top Layer, following strong earnings
across these vehicles;
– $332.9 million from Upsilon Diversified as
a result of the release of collateral associated with prior years’
contracts; and
– the remainder from redemptions from
third-party investors rebalancing their portfolios, primarily
because of the strong results noted above.
- Effective January 1, 2025, raised third party capital of
$237.8 million in DaVinci, Medici and Fontana and returned third
party capital of $99.0 million in DaVinci and Fontana. Following
these transactions, the Company’s ownership in DaVinci, Medici and
Fontana was 24.3%, 16.5% and 28.7%, respectively.
- Share repurchases of 2.7 million common shares at an
aggregate cost of $677.6 million and an average price of $249.93
per common share in 2024. Repurchased an additional 546.9 thousand
common shares at an aggregate cost of $137.7 million from January
1, 2025 through January 24, 2025.
- The California wildfires, commencing in January 2025,
have led to a range of publicly available industry insured loss
estimates. The Company expects its pre-tax net negative impact to
be approximately 1.5% of the California wildfires’ aggregate
industry insured loss. Based on a $50 billion aggregate industry
insured loss, the Company estimates a pre-tax net negative impact
on net income (loss) available (attributable) to common
shareholders of approximately $750 million in the first quarter of
2025. The Company’s assessment of the impact from the California
wildfires is preliminary, and is based on, among other things,
initial industry insured loss estimates, market share analysis, the
application of modeling techniques, a review of in-force contracts
and potential uncertainties relating to reinsurance recoveries. It
is difficult at this time to provide an accurate estimate of the
financial impact of the California wildfires, including as a result
of the preliminary nature of the information provided thus far by
industry participants, the magnitude and recency of the California
wildfires, and other factors.
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
Year ended
December 31, 2024
Hurricane Milton
Hurricane Helene
Other 2024 Large Loss Events
(1)
2024 Large Loss Events
(2)
(in thousands, except percentages)
Net negative impact on Property segment
underwriting result
$
(332,710
)
$
(179,618
)
$
(267,513
)
$
(779,841
)
Net negative impact on Casualty and
Specialty segment underwriting result
—
(605
)
(66,907
)
(67,512
)
Net negative impact on underwriting
result
$
(332,710
)
$
(180,223
)
$
(334,420
)
$
(847,353
)
Percentage point impact on consolidated
combined ratio
3.4
1.8
3.6
8.8
Net negative impact on the consolidated financial
statements
Year ended December 31, 2024
Hurricane Milton
Hurricane Helene
Other 2024 Large Loss Events
(1)
2024 Large Loss Events
(2)
(in thousands)
Net claims and claims expenses
incurred
$
(406,878
)
$
(217,767
)
$
(381,330
)
$
(1,005,975
)
Assumed reinstatement premiums earned
86,128
40,655
53,159
179,942
Ceded reinstatement premiums earned
(2,158
)
(931
)
(9,971
)
(13,060
)
Earned (lost) profit commissions
(9,802
)
(2,180
)
3,722
(8,260
)
Net negative impact on underwriting
result
(332,710
)
(180,223
)
(334,420
)
(847,353
)
Redeemable noncontrolling interest
62,229
36,969
87,625
186,823
Net negative impact on net income (loss)
available (attributable) to RenaissanceRe common shareholders
$
(270,481
)
$
(143,254
)
$
(246,795
)
$
(660,530
)
(1)
“Other 2024 Large Loss Events” includes:
the Baltimore Bridge Collapse, a series of severe convective storms
impacting the Southern and Midwest United States, the Hualien
earthquake which impacted Taiwan in April 2024, a severe hailstorm
which impacted Calgary in August 2024, Hurricane Debby, Hurricane
Beryl, and certain aggregate loss contracts triggered during
2024.
(2)
“2024 Large Loss Events” includes:
Hurricane Milton, Hurricane Helene and the “Other 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 - Reports & Filings”
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 Wednesday, January
29, 2025 at 10:00 a.m. ET to discuss this release. Live broadcast
of the conference call will be available through the “Investors -
News & Events - Investor Calendar” section of the Company’s
website at www.renre.com. An archive of the call will be available
from approximately 1:00 p.m. ET on January 29, 2025, through
midnight ET on February 5, 2025.
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, competition in the
industry, estimates of net negative impact and insured losses from
loss events, and government initiatives and regulatory matters
affecting the (re)insurance industries, 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 they 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 Company’s exposure to ceding companies and delegated
authority counterparties and 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; 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; 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 impact of cybersecurity risks, including
technology breaches or failure; 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 effects of new or possible future tax actions or reform
legislation and regulations in the jurisdictions in which the
Company operates; the Company’s ability to determine any
impairments taken on its investments; the Company’s ability to
raise capital on acceptable terms; 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
Year ended
December 31,
2024
December 31,
2023
December 31,
2024
December 31,
2023
Revenues
Gross premiums written
$
1,916,751
$
1,802,041
$
11,733,066
$
8,862,366
Net premiums written
$
1,751,628
$
1,587,047
$
9,952,216
$
7,467,813
Decrease (increase) in unearned
premiums
775,938
662,398
143,544
3,320
Net premiums earned
2,527,566
2,249,445
10,095,760
7,471,133
Net investment income
428,810
376,962
1,654,289
1,253,110
Net foreign exchange gains (losses)
(48,382
)
12,398
(76,076
)
(41,479
)
Equity in earnings (losses) of other
ventures
14,652
15,402
47,087
43,474
Other income (loss)
1,129
144
1,928
(6,152
)
Net realized and unrealized gains (losses)
on investments
(630,347
)
585,939
(27,840
)
414,522
Total revenues
2,293,428
3,240,290
11,695,148
9,134,608
Expenses
Net claims and claim expenses incurred
1,483,742
979,522
5,332,981
3,573,509
Acquisition expenses
678,170
594,487
2,643,867
1,875,034
Operational expenses
157,104
134,466
496,588
375,182
Corporate expenses
34,295
74,285
134,784
127,642
Interest expense
23,246
23,201
93,768
73,181
Total expenses
2,376,557
1,805,961
8,701,988
6,024,548
Income (loss) before taxes
(83,129
)
1,434,329
2,993,160
3,110,060
Income tax benefit (expense)
63,908
554,206
(32,628
)
510,067
Net income (loss)
(19,221
)
1,988,535
2,960,532
3,620,127
Net (income) loss attributable to
redeemable noncontrolling interests
(170,438
)
(403,009
)
(1,090,172
)
(1,058,995
)
Net income (loss) attributable to
RenaissanceRe
(189,659
)
1,585,526
1,870,360
2,561,132
Dividends on preference shares
(8,844
)
(8,844
)
(35,375
)
(35,375
)
Net income (loss) available
(attributable) to RenaissanceRe common shareholders
$
(198,503
)
$
1,576,682
$
1,834,985
$
2,525,757
Net income (loss) available (attributable)
to RenaissanceRe common shareholders per common share – basic
$
(3.95
)
$
30.51
$
35.31
$
52.40
Net income (loss) available (attributable)
to RenaissanceRe common shareholders per common share – diluted
$
(3.95
)
$
30.43
$
35.21
$
52.27
Operating income (loss) available
(attributable) to RenaissanceRe common shareholders per common
share - diluted (1)
$
8.06
$
11.77
$
42.99
$
37.54
Average shares outstanding - basic
50,429
50,937
51,186
47,493
Average shares outstanding - diluted
50,429
51,072
51,339
47,607
Net claims and claim expense ratio
58.7
%
43.5
%
52.8
%
47.8
%
Underwriting expense ratio
33.0
%
32.5
%
31.1
%
30.1
%
Combined ratio
91.7
%
76.0
%
83.9
%
77.9
%
Return on average common equity -
annualized
(7.8
)%
83.5
%
19.3
%
40.5
%
Operating return on average common equity
- annualized (1)
16.0
%
33.0
%
23.5
%
29.3
%
(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)
December 31,
2024
December 31,
2023
Assets
Fixed maturity investments trading, at
fair value
$
23,562,514
$
20,877,108
Short term investments, at fair value
4,531,655
4,604,079
Equity investments, at fair value
117,756
106,766
Other investments, at fair value
4,324,761
3,515,566
Investments in other ventures, under
equity method
102,770
112,624
Total investments
32,639,456
29,216,143
Cash and cash equivalents
1,676,604
1,877,518
Premiums receivable
7,290,228
7,280,682
Prepaid reinsurance premiums
888,332
924,777
Reinsurance recoverable
4,481,390
5,344,286
Accrued investment income
238,290
205,713
Deferred acquisition costs and value of
business acquired
1,552,359
1,751,437
Deferred tax asset
701,053
685,040
Receivable for investments sold
91,669
622,197
Other assets
444,037
323,960
Goodwill and other intangible assets
704,132
775,352
Total assets
$
50,707,550
$
49,007,105
Liabilities, Noncontrolling Interests
and Shareholders’ Equity
Liabilities
Reserve for claims and claim expenses
$
21,303,491
$
20,486,869
Unearned premiums
5,950,415
6,136,135
Debt
1,886,689
1,958,655
Reinsurance balances payable
2,804,344
3,186,174
Payable for investments purchased
150,721
661,611
Other liabilities
1,060,129
1,021,872
Total liabilities
33,155,789
33,451,316
Redeemable noncontrolling interests
6,977,749
6,100,831
Shareholders’ Equity
Preference shares
750,000
750,000
Common shares
50,181
52,694
Additional paid-in capital
1,512,435
2,144,459
Accumulated other comprehensive income
(loss)
(14,756
)
(14,211
)
Retained earnings
8,276,152
6,522,016
Total shareholders’ equity attributable
to RenaissanceRe
10,574,012
9,454,958
Total liabilities, noncontrolling
interests and shareholders’ equity
$
50,707,550
$
49,007,105
Book value per common share
$
195.77
$
165.20
RenaissanceRe Holdings
Ltd.
Supplemental Financial Data -
Segment Information
(in thousands of United States
Dollars, except percentages)
(Unaudited)
Three months ended December
31, 2024
Property
Casualty and Specialty
Other
Total
Gross premiums written
$
390,043
$
1,526,708
$
—
$
1,916,751
Net premiums written
$
376,136
$
1,375,492
$
—
$
1,751,628
Net premiums earned
$
938,658
$
1,588,908
$
—
$
2,527,566
Net claims and claim expenses incurred
384,156
1,099,586
—
1,483,742
Acquisition expenses
191,988
486,182
—
678,170
Operational expenses
95,623
61,481
—
157,104
Underwriting income (loss)
$
266,891
$
(58,341
)
$
—
208,550
Net investment income
428,810
428,810
Net foreign exchange gains (losses)
(48,382
)
(48,382
)
Equity in earnings of other ventures
14,652
14,652
Other income (loss)
1,129
1,129
Net realized and unrealized gains (losses)
on investments
(630,347
)
(630,347
)
Corporate expenses
(34,295
)
(34,295
)
Interest expense
(23,246
)
(23,246
)
Income (loss) before taxes and redeemable
noncontrolling interests
(83,129
)
Income tax benefit (expense)
63,908
63,908
Net (income) loss attributable to
redeemable noncontrolling interests
(170,438
)
(170,438
)
Dividends on preference shares
(8,844
)
(8,844
)
Net income (loss) available (attributable)
to RenaissanceRe common shareholders
$
(198,503
)
Net claims and claim expenses incurred –
current accident year
$
732,207
$
1,105,011
$
—
$
1,837,218
Net claims and claim expenses incurred –
prior accident years
(348,051
)
(5,425
)
—
(353,476
)
Net claims and claim expenses incurred –
total
$
384,156
$
1,099,586
$
—
$
1,483,742
Net claims and claim expense ratio –
current accident year
78.0
%
69.5
%
72.7
%
Net claims and claim expense ratio – prior
accident years
(37.1
)%
(0.3
)%
(14.0
)%
Net claims and claim expense ratio –
calendar year
40.9
%
69.2
%
58.7
%
Underwriting expense ratio
30.7
%
34.5
%
33.0
%
Combined ratio
71.6
%
103.7
%
91.7
%
Three months ended December
31, 2023
Property
Casualty and Specialty
Other
Total
Gross premiums written
$
344,597
$
1,457,444
$
—
$
1,802,041
Net premiums written
$
357,953
$
1,229,094
$
—
$
1,587,047
Net premiums earned
$
884,321
$
1,365,124
$
—
$
2,249,445
Net claims and claim expenses incurred
123,942
855,580
—
979,522
Acquisition expenses
170,854
423,633
—
594,487
Operational expenses
85,919
48,547
—
134,466
Underwriting income (loss)
$
503,606
$
37,364
$
—
540,970
Net investment income
376,962
376,962
Net foreign exchange gains (losses)
12,398
12,398
Equity in earnings of other ventures
15,402
15,402
Other income (loss)
144
144
Net realized and unrealized gains (losses)
on investments
585,939
585,939
Corporate expenses
(74,285
)
(74,285
)
Interest expense
(23,201
)
(23,201
)
Income (loss) before taxes and redeemable
noncontrolling interests
1,434,329
Income tax benefit (expense)
554,206
554,206
Net (income) loss attributable to
redeemable noncontrolling interests
(403,009
)
(403,009
)
Dividends on preference shares
(8,844
)
(8,844
)
Net income (loss) available (attributable)
to RenaissanceRe common shareholders
$
1,576,682
Net claims and claim expenses incurred –
current accident year
$
275,638
$
859,694
$
—
$
1,135,332
Net claims and claim expenses incurred –
prior accident years
(151,696
)
(4,114
)
—
(155,810
)
Net claims and claim expenses incurred –
total
$
123,942
$
855,580
$
—
$
979,522
Net claims and claim expense ratio –
current accident year
31.2
%
63.0
%
50.5
%
Net claims and claim expense ratio – prior
accident years
(17.2
)%
(0.3
)%
(7.0
)%
Net claims and claim expense ratio –
calendar year
14.0
%
62.7
%
43.5
%
Underwriting expense ratio
29.1
%
34.6
%
32.5
%
Combined ratio
43.1
%
97.3
%
76.0
%
RenaissanceRe Holdings
Ltd.
Supplemental Financial Data -
Segment Information
(in thousands of United States
Dollars, except percentages)
(Unaudited)
Year ended December 31,
2024
Property
Casualty and Specialty
Other
Total
Gross premiums written
$
4,823,731
$
6,909,335
$
—
$
11,733,066
Net premiums written
$
3,833,636
$
6,118,580
$
—
$
9,952,216
Net premiums earned
$
3,850,352
$
6,245,408
$
—
$
10,095,760
Net claims and claim expenses incurred
1,141,726
4,191,255
—
5,332,981
Acquisition expenses
758,554
1,885,313
—
2,643,867
Operational expenses
302,360
194,228
—
496,588
Underwriting income (loss)
$
1,647,712
$
(25,388
)
$
—
1,622,324
Net investment income
1,654,289
1,654,289
Net foreign exchange gains (losses)
(76,076
)
(76,076
)
Equity in earnings of other ventures
47,087
47,087
Other income (loss)
1,928
1,928
Net realized and unrealized gains (losses)
on investments
(27,840
)
(27,840
)
Corporate expenses
(134,784
)
(134,784
)
Interest expense
(93,768
)
(93,768
)
Income (loss) before taxes and redeemable
noncontrolling interests
2,993,160
Income tax benefit (expense)
(32,628
)
(32,628
)
Net (income) loss attributable to
redeemable noncontrolling interests
(1,090,172
)
(1,090,172
)
Dividends on preference shares
(35,375
)
(35,375
)
Net income (loss) available (attributable)
to RenaissanceRe common shareholders
$
1,834,985
Net claims and claim expenses incurred –
current accident year
$
1,960,578
$
4,223,737
$
—
$
6,184,315
Net claims and claim expenses incurred –
prior accident years
(818,852
)
(32,482
)
—
(851,334
)
Net claims and claim expenses incurred –
total
$
1,141,726
$
4,191,255
$
—
$
5,332,981
Net claims and claim expense ratio –
current accident year
50.9
%
67.6
%
61.3
%
Net claims and claim expense ratio – prior
accident years
(21.2
)%
(0.5
)%
(8.5
)%
Net claims and claim expense ratio –
calendar year
29.7
%
67.1
%
52.8
%
Underwriting expense ratio
27.5
%
33.3
%
31.1
%
Combined ratio
57.2
%
100.4
%
83.9
%
Year ended December 31,
2023
Property
Casualty and Specialty
Other
Total
Gross premiums written
$
3,562,414
$
5,299,952
$
—
$
8,862,366
Net premiums written
$
2,967,309
$
4,500,504
$
—
$
7,467,813
Net premiums earned
$
3,090,792
$
4,380,341
$
—
$
7,471,133
Net claims and claim expenses incurred
799,905
2,773,604
—
3,573,509
Acquisition expenses
600,127
1,274,907
—
1,875,034
Operational expenses
251,433
123,749
—
375,182
Underwriting income (loss)
$
1,439,327
$
208,081
$
—
1,647,408
Net investment income
1,253,110
1,253,110
Net foreign exchange gains (losses)
(41,479
)
(41,479
)
Equity in earnings of other ventures
43,474
43,474
Other income (loss)
(6,152
)
(6,152
)
Net realized and unrealized gains (losses)
on investments
414,522
414,522
Corporate expenses
(127,642
)
(127,642
)
Interest expense
(73,181
)
(73,181
)
Income (loss) before taxes and redeemable
noncontrolling interests
3,110,060
Income tax benefit (expense)
510,067
510,067
Net (income) loss attributable to
redeemable noncontrolling interests
(1,058,995
)
(1,058,995
)
Dividends on preference shares
(35,375
)
(35,375
)
Net income (loss) available (attributable)
to RenaissanceRe common shareholders
$
2,525,757
Net claims and claim expenses incurred –
current accident year
$
1,208,810
$
2,815,306
$
—
$
4,024,116
Net claims and claim expenses incurred –
prior accident years
(408,905
)
(41,702
)
—
(450,607
)
Net claims and claim expenses incurred –
total
$
799,905
$
2,773,604
$
—
$
3,573,509
Net claims and claim expense ratio –
current accident year
39.1
%
64.3
%
53.9
%
Net claims and claim expense ratio – prior
accident years
(13.2
)%
(1.0
)%
(6.1
)%
Net claims and claim expense ratio –
calendar year
25.9
%
63.3
%
47.8
%
Underwriting expense ratio
27.5
%
31.9
%
30.1
%
Combined ratio
53.4
%
95.2
%
77.9
%
RenaissanceRe Holdings
Ltd.
Supplemental Financial Data -
Gross Premiums Written
(in thousands of United States
Dollars)
(Unaudited)
Three months ended
Year ended
December 31,
2024
December 31,
2023
December 31,
2024
December 31,
2023
Property Segment
Catastrophe
$
47,159
$
55,068
$
2,996,890
$
2,146,323
Other property
342,884
289,529
1,826,841
1,416,091
Property segment gross premiums
written
$
390,043
$
344,597
$
4,823,731
$
3,562,414
Casualty and Specialty Segment
General casualty (1)
$
541,354
$
535,311
$
2,280,818
$
1,730,102
Professional liability (2)
295,938
240,597
1,212,134
1,212,393
Credit (3)
136,412
206,476
901,716
769,321
Other specialty (4)
553,004
475,060
2,514,667
1,588,136
Casualty and Specialty segment gross
premiums written
$
1,526,708
$
1,457,444
$
6,909,335
$
5,299,952
(1)
Includes automobile liability, casualty
clash, employers’ 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
Year ended
December 31,
2024
December 31,
2023
December 31,
2024
December 31,
2023
Fixed maturity investments trading
$
295,773
$
230,437
$
1,116,649
$
744,457
Short term investments
41,230
63,400
183,153
213,303
Equity investments
641
586
2,460
7,261
Other investments
Catastrophe bonds
60,984
57,636
238,844
200,572
Other
22,932
21,874
82,457
87,296
Cash and cash equivalents
13,894
10,114
54,241
23,123
435,454
384,047
1,677,804
1,276,012
Investment expenses
(6,644
)
(7,085
)
(23,515
)
(22,902
)
Net investment income
$
428,810
$
376,962
$
1,654,289
$
1,253,110
Net investment income return -
annualized
5.3
%
5.7
%
5.5
%
5.3
%
Net realized gains (losses) on fixed
maturity investments trading
$
(29,964
)
$
(92,952
)
$
(63,929
)
$
(393,041
)
Net unrealized gains (losses) on fixed
maturity investments trading
(535,959
)
671,088
(182,494
)
685,095
Net realized and unrealized gains (losses)
on fixed maturity investments trading
(565,923
)
578,136
(246,423
)
292,054
Net realized and unrealized gains (losses)
on investment-related derivatives
(107,381
)
(45,977
)
(57,279
)
(68,272
)
Net realized gains (losses) on equity
investments
—
11
355
(27,492
)
Net unrealized gains (losses) on equity
investments
(15,747
)
11,204
10,621
73,243
Net realized and unrealized gains (losses)
on equity investments
(15,747
)
11,215
10,976
45,751
Net realized and unrealized gains (losses)
on other investments - catastrophe bonds
11,262
7,111
62,353
101,897
Net realized and unrealized gains (losses)
on other investments - other
47,442
35,454
202,533
43,092
Net realized and unrealized gains
(losses) on investments
(630,347
)
585,939
(27,840
)
414,522
Total investment result
$
(201,537
)
$
962,901
$
1,626,449
$
1,667,632
Total investment return -
annualized
(2.4
)%
15.2
%
5.4
%
6.9
%
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
Year ended
(in thousands of United States Dollars,
except per share amounts and percentages)
December 31,
2024
December 31,
2023
December 31,
2024
December 31,
2023
Net income (loss) available (attributable)
to RenaissanceRe common shareholders
$
(198,503
)
$
1,576,682
$
1,834,985
$
2,525,757
Adjustment for:
Net realized and unrealized losses (gains)
on investments, excluding other investments - catastrophe bonds
641,609
(578,828
)
90,193
(312,625
)
Net foreign exchange losses (gains)
48,382
(12,398
)
76,076
41,479
Expenses (revenues) associated with
acquisitions, dispositions and impairments (1)
15,975
61,666
70,943
76,380
Acquisition related purchase accounting
adjustments (2)
59,763
52,812
242,938
64,866
Bermuda net deferred tax asset (3)
(449
)
(593,765
)
(8,339
)
(593,765
)
Income tax expense (benefit) (4)
(33,035
)
12,250
13,290
3,289
Net income (loss) attributable to
redeemable noncontrolling interests (5)
(126,865
)
104,691
(85,660
)
19,529
Operating income (loss) available
(attributable) to RenaissanceRe common shareholders
$
406,877
$
623,110
$
2,234,426
$
1,824,910
Net income (loss) available (attributable)
to RenaissanceRe common shareholders per common share - diluted
$
(3.95
)
$
30.43
$
35.21
$
52.27
Adjustment for:
Net realized and unrealized losses (gains)
on investments, excluding other investments - catastrophe bonds
12.72
(11.33
)
1.76
(6.57
)
Net foreign exchange losses (gains)
0.96
(0.24
)
1.48
0.87
Expenses (revenues) associated with
acquisitions, dispositions and impairments (1)
0.33
1.21
1.38
1.60
Acquisition related purchase accounting
adjustments (2)
1.19
1.04
4.73
1.36
Bermuda net deferred tax asset (3)
(0.01
)
(11.63
)
(0.16
)
(12.47
)
Income tax expense (benefit) (4)
(0.66
)
0.24
0.26
0.07
Net income (loss) attributable to
redeemable noncontrolling interests (5)
(2.52
)
2.05
(1.67
)
0.41
Operating income (loss) available
(attributable) to RenaissanceRe common shareholders per common
share - diluted
$
8.06
$
11.77
$
42.99
$
37.54
Return on average common equity -
annualized
(7.8
)%
83.5
%
19.3
%
40.5
%
Adjustment for:
Net realized and unrealized losses (gains)
on investments, excluding other investments - catastrophe bonds
25.3
%
(30.6
)%
0.9
%
(5.0
)%
Net foreign exchange losses (gains)
1.9
%
(0.7
)%
0.8
%
0.7
%
Expenses (revenues) associated with
acquisitions, dispositions and impairments (1)
0.5
%
3.3
%
0.8
%
1.2
%
Acquisition related purchase accounting
adjustments (2)
2.4
%
2.8
%
2.6
%
1.0
%
Bermuda net deferred tax asset (3)
—
%
(31.4
)%
(0.1
)%
(9.5
)%
Income tax expense (benefit) (4)
(1.3
)%
0.6
%
0.1
%
0.1
%
Net income (loss) attributable to
redeemable noncontrolling interests (5)
(5.0
)%
5.5
%
(0.9
)%
0.3
%
Operating return on average common equity
- annualized
16.0
%
33.0
%
23.5
%
29.3
%
(1)
Revised from previously reported
“corporate expenses associated with acquisitions and dispositions”
to “expenses (revenues) associated with acquisitions, dispositions
and impairments” to clarify inclusion of 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 value of business
acquired (“VOBA”) and acquisition costs, and the fair value
adjustments to the net reserves for claims and claim expenses for
the three months and year ended December 31, 2024 for the
acquisitions of Validus of $56.0 million and $227.9 million,
respectively (2023 - $48.8 million and $48.8 million,
respectively); and TMR and Platinum of $3.8 million and $15.0
million respectively (2023 - $4.0 million and $16.1 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.
December 31,
2024
December 31,
2023
Book value per common share
$
195.77
$
165.20
Adjustment for:
Acquisition related goodwill and other
intangible assets (1)
(14.03
)
(14.71
)
Other goodwill and intangible assets
(2)
(0.18
)
(0.35
)
Acquisition related purchase accounting
adjustments (3)
(4.38
)
(8.27
)
Tangible book value per common share
177.18
141.87
Adjustment for accumulated dividends
28.08
26.52
Tangible book value per common share plus
accumulated dividends
$
205.26
$
168.39
Quarterly change in book value per common
share
(3.1
)%
23.6
%
Quarterly change in book value per common
share plus change in accumulated dividends
(2.9
)%
23.9
%
Quarterly change in tangible book value
per common share plus change in accumulated dividends
(2.8
)%
11.6
%
Year to date change in book value per
common share
18.5
%
57.9
%
Year to date change in book value per
common share plus change in accumulated dividends
19.4
%
59.3
%
Year to date change in tangible book value
per common share plus change in accumulated dividends
26.0
%
47.6
%
(1)
Represents the acquired goodwill and other
intangible assets at December 31, 2024 for the acquisitions of
Validus $476.3 million (2023 - $542.7 million), TMR $26.0 million
(2023 - $27.2 million) and Platinum $201.8 million (2023 - $205.5
million).
(2)
At December 31, 2024, the adjustment
for other goodwill and intangible assets included $8.9 million
(December 31, 2023 - $18.1 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 December 31,
2024 for the acquisitions of Validus $168.6 million (2023 - $374.4
million), TMR $51.6 million (2023 - $62.2 million) and Platinum
$(0.6) million (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 December
31, 2024
Catastrophe
Other Property
Property
Casualty and Specialty
Total
Combined ratio
50.2
%
106.3
%
71.6
%
103.7
%
91.7
%
Adjustment for acquisition related
purchase accounting adjustments (1)
(2.8
)%
(1.8
)%
(2.4
)%
(2.4
)%
(2.3
)%
Adjusted combined ratio
47.4
%
104.5
%
69.2
%
101.3
%
89.4
%
Three months ended December
31, 2023
Catastrophe
Other Property
Property
Casualty and Specialty
Total
Combined ratio
17.8
%
79.9
%
43.1
%
97.3
%
76.0
%
Adjustment for acquisition related
purchase accounting adjustments (1)
(2.0
)%
(0.5
)%
(1.4
)%
(3.0
)%
(2.4
)%
Adjusted combined ratio
15.8
%
79.4
%
41.7
%
94.3
%
73.6
%
Year ended December 31,
2024
Catastrophe
Other Property
Property
Casualty and Specialty
Total
Combined ratio
35.6
%
89.2
%
57.2
%
100.4
%
83.9
%
Adjustment for acquisition related
purchase accounting adjustments (1)
(3.1
)%
(1.1
)%
(2.3
)%
(2.4
)%
(2.4
)%
Adjusted combined ratio
32.5
%
88.1
%
54.9
%
98.0
%
81.5
%
Year ended December 31,
2023
Catastrophe
Other Property
Property
Casualty and Specialty
Total
Combined ratio
29.8
%
82.6
%
53.4
%
95.2
%
77.9
%
Adjustment for acquisition related
purchase accounting adjustments (1)
(0.7
)%
(0.2
)%
(0.5
)%
(1.0
)%
(0.8
)%
Adjusted combined ratio
29.1
%
82.4
%
52.9
%
94.2
%
77.1
%
(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/20250127543494/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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