- Hurricane Ian and certain other catastrophe events contributed
to a $648.4 million net negative impact on net loss attributable to
common shareholders, and added 57.2 percentage points to the
combined ratio.
- 101.6% growth in net investment income compared to Q3
2021.
- 95.7% Casualty and Specialty combined ratio, an improvement of
3.9 percentage points from Q3 2021.
- 22.6% growth in net premiums written; driven by 39.7% growth in
Casualty and Specialty.
- $641.5 million of net realized and unrealized losses on
investments, primarily driven by the impact of increasing interest
rates on the fixed maturity portfolio.
RenaissanceRe Holdings Ltd. (NYSE: RNR) (“RenaissanceRe” or the
“Company”) today announced its financial results for the third
quarter of 2022.
Net Loss Attributable to
Common Shareholders per Diluted Common Share: $(19.27)
Operating Loss Attributable to
Common Shareholders per Diluted Common Share*: $(9.27)
Underwriting Loss
$(683.1)M
Fee Income
$25.7M
Net Investment Income
$157.8M
Change in Book Value per
Common Share: (16.8)%
Change in Tangible Book Value
per Common Share Plus Change in Accum. Dividends*: (17.4)%
* 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 and Change in Tangible Book Value per Common
Share Plus Change in Accumulated Dividends are non-GAAP financial
measures; see “Comments on Regulation G” for a reconciliation of
non-GAAP financial measures.
Kevin J. O’Donnell, President and
Chief Executive Officer, said, “Hurricane Ian’s arrival in the
final days of the quarter was both a stark reminder of our value
proposition to our customers and a catalyst for change in the
reinsurance marketplace. RenaissanceRe’s strategic focus on
reinsurance, strong capital and industry leadership uniquely
situate us to drive transformative change during the upcoming
renewal period. As a result, we are positioned to deliver an
attractive return to our investors through materially increased
underwriting profit, robust fee income and significantly higher
investment income.”
Consolidated Financial
Results
Consolidated Highlights
Three months ended September
30,
(in thousands, except per share amounts
and percentages)
2022
2021
Gross premiums written
$
2,220,661
$
1,774,180
Net premiums written
1,821,711
1,486,440
Underwriting income (loss)
(683,114
)
(678,825
)
Combined ratio
138.7
%
145.1
%
Net Income (Loss)
Available (attributable) to common
shareholders
(825,344
)
(450,222
)
Available (attributable) to common
shareholders per diluted common share
$
(19.27
)
$
(9.75
)
Operating Income (Loss) (1)
Available (attributable) to common
shareholders
(396,674
)
(414,538
)
Available (attributable) to common
shareholders per diluted common share
$
(9.27
)
$
(8.98
)
Book value per common share
$
94.55
$
128.91
Change in book value per share
(16.8
)%
(7.5
)%
Tangible book value per common share plus
accumulated dividends (1)
$
113.29
$
146.40
Change in tangible book value per common
share plus change in accumulated dividends (1)
(17.4
)%
(7.6
)%
Return on average common equity -
annualized
(72.4
)%
(28.4
)%
Operating return on average common equity
- annualized (1)
(34.8
)%
(26.1
)%
- See “Comments on Regulation G” for a reconciliation of non-GAAP
financial measures.
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 our potential exposures, preliminary discussions with
certain counterparties and actuarial modeling techniques. Our
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 each event, 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.
Weather-Related Large Losses
Net negative impact on the consolidated financial
statements
Three months
ended September 30, 2022
Hurricane Ian
Other Q3 2022 Catastrophe
Events (1)
Aggregate Losses (2)
Total Q3 2022 Weather-Related
Large Losses (3)
(in thousands)
Net claims and claims expenses
incurred
$
(990,382
)
$
(152,418
)
$
(9,695
)
$
(1,152,495
)
Assumed reinstatement premiums earned
221,799
14,105
9
235,913
Ceded reinstatement premiums earned
(57,733
)
(283
)
—
(58,016
)
Earned (lost) profit commissions
(1,487
)
(1,285
)
(49
)
(2,821
)
Net negative impact on underwriting
result
(827,803
)
(139,881
)
(9,735
)
(977,419
)
Redeemable noncontrolling interest
288,383
40,621
—
329,004
Net negative impact on net income (loss)
available (attributable) to RenaissanceRe common shareholders
$
(539,420
)
$
(99,260
)
$
(9,735
)
$
(648,415
)
Net negative impact on the segment underwriting results and
consolidated combined ratio
Three months
ended September 30, 2022
Hurricane Ian
Other Q3 2022 Catastrophe
Events (1)
Aggregate Losses (2)
Total Q3 2022 Weather-Related
Large Losses (3)
(in thousands, except percentages)
Net negative impact on Property segment
underwriting result
$
(820,765
)
$
(137,881
)
$
(9,735
)
$
(968,381
)
Net negative impact on Casualty and
Specialty segment underwriting result
(7,038
)
(2,000
)
—
(9,038
)
Net negative impact on underwriting
result
$
(827,803
)
$
(139,881
)
$
(9,735
)
$
(977,419
)
Percentage point impact on consolidated
combined ratio
47.7
7.7
0.6
57.2
- “Other Q3 2022 Catastrophe Events” includes the severe weather
in France in May and June of 2022, and typhoons in Asia and
Hurricane Fiona during the third quarter of 2022.
- “Aggregate Losses” includes loss estimates associated with
certain aggregate loss contracts triggered during 2022 as a result
of weather-related catastrophe events.
- “Q3 2022 Weather-Related Large Losses” includes Hurricane Ian,
Other Q3 2022 Catastrophe Events and the Aggregate Losses described
above.
Three Drivers of Profit:
Underwriting, Fee and Investment Income
Underwriting Results - Property Segment: Q3 2022
Weather-Related Large Losses contributed 123.0 percentage points to
the combined ratio
Property Segment
Three months ended September
30,
Q/Q Change
(in thousands, except percentages)
2022
2021
Gross premiums written
$
800,330
$
773,692
3.4
%
Net premiums written
696,520
681,095
2.3
%
Underwriting income (loss)
(722,599
)
(681,929
)
Underwriting Ratios
Net claims and claim expense ratio -
current accident year
166.3
%
180.0
%
(13.7) pts
Net claims and claim expense ratio - prior
accident years
(2.9
)%
(17.9
)%
15.0 pts
Net claims and claim expense ratio -
calendar year
163.4
%
162.1
%
1.3 pts
Underwriting expense ratio
22.6
%
21.4
%
1.2 pts
Combined ratio
186.0
%
183.5
%
2.5 pts
- Gross premiums written increased by $26.6 million, or
3.4%, driven by growth of $55.9 million within the catastrophe
class of business, partially offset by a reduction of $29.2 million
within the other property class of business. – Reinstatement
premiums from the Q3 2022 Weather-Related Large Losses were $234.0
million compared to $254.9 million of reinstatement premiums from
the weather related large losses in the third quarter of 2021.
- Net premiums written increased by $15.4 million, or
2.3%, driven by the increase in gross premiums written, slightly
offset by an increase in ceded premiums written of $11.2
million.
- Net claims and claim expense ratio - current accident
year decreased 13.7 percentage points, primarily due to a lower
impact from weather-related large losses. – Q3 2022 Weather-Related
Large Losses contributed 127.9 percentage points to the current
accident year net claims and claim expense ratio, compared to the
weather-related large losses in the third quarter of 2021, which
contributed 143.1 percentage points to the current accident year
net claims and claim expense ratio.
- Net claims and claim expense ratio - prior accident
years reflects net favorable development primarily from
weather-related large losses in the 2017 to 2020 accident
years.
- Underwriting loss of $722.6 million in the Property
segment included a $968.4 million net negative impact from the Q3
2022 Weather-Related Large Losses with significant impacts in both
the catastrophe and other property classes of business. – Combined
ratio of 186.0% included 123.0 percentage points from the Q3 2022
Weather-Related Large Losses.
Underwriting Results - Casualty and Specialty Segment:
Combined ratio of 95.7% and growth in net premiums written of
39.7%
Casualty and Specialty Segment
Three months ended September
30,
Q/Q Change
(in thousands, except percentages)
2022
2021
Gross premiums written
$
1,420,331
$
1,000,488
42.0
%
Net premiums written
1,125,191
805,345
39.7
%
Underwriting income (loss)
39,485
3,104
Underwriting Ratios
Net claims and claim expense ratio -
current accident year
65.0
%
69.0
%
(4.0) pts
Net claims and claim expense ratio - prior
accident years
(0.8
)%
(0.2
)%
(0.6) pts
Net claims and claim expense ratio -
calendar year
64.2
%
68.8
%
(4.6) pts
Underwriting expense ratio
31.5
%
30.8
%
0.7 pts
Combined ratio
95.7
%
99.6
%
(3.9) pts
- Gross premiums written increased 42.0% across various
lines of business, principally in the financial lines classes of
business, which grew $237.0 million.
- Net premiums written increased 39.7%, primarily driven
by growth in the financial lines classes of business, consistent
with the changes in gross premiums written.
- Net claims and claim expense ratio - current accident
year improved by 4.0 percentage points, primarily due to a
lower impact from the Q3 2022 Weather-Related Large Losses compared
to the weather related large losses in the third quarter of
2021.
- Net claims and claim expense ratio - prior accident year
improved by 0.6 percentage points, reflecting higher favorable
prior accident year loss development compared to the third quarter
of 2021.
- Underwriting expense ratio increased 0.7 percentage
points, principally due to a 1.6 percentage point increase in the
net acquisition expense ratio due to higher costs and changes in
mix of business. This was largely offset by a 0.9 percentage point
improvement in the operating expense ratio, driven by improved
operating leverage.
Fee Income: $25.7 million of fee income; management fees
stable while performance fees impacted by Q3 2022 Weather-Related
Large Losses
Fee Income
Three months ended September
30,
Q/Q Change
(in thousands, except percentages)
2022
2021
Total management fee income
$
24,989
$
23,854
$
1,135
Total performance fee income (loss)
(1)
739
4,481
(3,742
)
Total fee income
$
25,728
$
28,335
$
(2,607
)
- 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 was relatively stable in
comparison to the third quarter of 2021, reflecting increased
capital managed at DaVinciRe Holdings Ltd. (“DaVinci”), Vermeer
Reinsurance Ltd. (“Vermeer”), RenaissanceRe Medici Fund Ltd.
(“Medici”), and Fontana Holdings L.P. and its subsidiaries, largely
offset by reductions in the Company’s structured reinsurance
products.
- Performance fee income was lower in the third quarter of
2022 compared to the third quarter of 2021, primarily due to the
impact of the Q3 2022 Weather-Related Large Losses.
Investment Results: Net investment income up $79.5 million;
total investment result driven by net realized and unrealized
losses, primarily in the fixed maturity investments
portfolio
Investment Results
Three months ended September
30,
Q/Q Change
(in thousands, except percentages)
2022
2021
Net investment income
$
157,793
$
78,267
$
79,526
Net realized and unrealized gains (losses)
on investments
(641,500
)
(42,071
)
(599,429
)
Total investment result
$
(483,707
)
$
36,196
$
(519,903
)
Total investment return - annualized
(8.9
)%
0.7
%
(9.6) pts
- Net investment income increased $79.5 million, primarily
driven by higher investment yields from:
– Portfolio management to take advantage of
rising interest rates and increase the book yield within the fixed
maturity trading and short term investment portfolios, and
– Higher average invested assets and yields
in private credit fund investments.
- Net realized and unrealized losses on investments
increased $599.4 million principally driven by:
– Net realized and unrealized losses on fixed
maturity investments trading of $424.2 million as a result of the
significant increase in interest rates on the fixed maturity
portfolio, compared to net realized and unrealized losses of $29.4
million in the third quarter of 2021 resulting from a smaller
increase in interest rates.
– Net realized and unrealized losses on
catastrophe bonds of $127.0 million (primarily held in the Medici
portfolio, the majority of which is owned by third party
investors), principally as a result of the impact of Hurricane Ian,
compared to net realized and unrealized losses of $6.0 million in
the third quarter of 2021.
- Total investments were $20.9 billion at September 30, 2022
(December 31, 2021 - $21.4 billion). Weighted average yield to
maturity and duration on the Company’s investment portfolio (which
excludes investments that have no final maturity, yield to maturity
or duration) was 5.1% and 2.5 years.
Other Items of Note
- Net loss attributable to redeemable noncontrolling
interests of $372.4 million was primarily driven by:
– Impact of the Q3 2022 Weather-Related Large
Losses on the performance of DaVinci, Medici and Vermeer; and
– Realized and unrealized losses on
investments in the Company’s joint ventures driven by the
significant increase in interest rates.
- Raised capital of $122.1 million in the third
quarter of 2022 through Vermeer and Medici.
- Share repurchases of 175.7 thousand common shares at an
aggregate cost of $25.3 million and an average price of $144.07 per
common share from July 1, 2022 through July 22, 2022.
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” and “tangible book value per common share plus
accumulated dividends.” 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 Wednesday, November
2, 2022 at 11:00 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 well-structured risks with efficient
sources of 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, 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.
These statements are subject to numerous factors that could cause
actual results to differ materially from those set forth in or
implied 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 historically cyclical
nature of the (re)insurance industries; collection on claimed
retrocessional coverage, and new retrocessional reinsurance being
available on acceptable terms; 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 performance of the Company’s
investment portfolio and financial market volatility; the effects
of inflation; the highly competitive nature of the Company’s
industry, resulting in consolidation of competitors, customers and
(re)insurance brokers, and the Company’s reliance on a small and
decreasing number of brokers; the impact of large non-recurring
contracts and reinstatement premiums on the Company’s financial
results; the Company’s ability to attract and retain key executives
and employees; the effect of cybersecurity risks, including
technology breaches or failure; the Company’s ability to
successfully implement its business strategies and initiatives, and
the success of any of the Company’s strategic investments or
acquisitions, including its ability to manage its operations as its
product and geographical diversity increases; 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 ability to effectively manage
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
laws or regulations or as a result of increased global regulation
of the insurance and reinsurance industries; other political,
regulatory or industry initiatives adversely impacting the Company;
the Company’s ability to comply with covenants in its debt
agreements; 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 possible future tax reform legislation
and regulations, including changes to the tax treatment of the
Company’s shareholders or investors in its joint ventures or other
entities it manages; the Company’s ability to determine any
impairments taken on its investments; the uncertainty of the
continuing and future impact of the COVID-19 pandemic, including
measures taken in response thereto and the effect of legislative,
regulatory and judicial influences on the Company’s potential
reinsurance, insurance and investment exposures, or other effects
that it may have; foreign currency exchange rate fluctuations; the
Company’s ability to raise capital if necessary; the Company’s
ability to comply with applicable sanctions and foreign corrupt
practices laws; the Company’s dependence on the ability of its
operating subsidiaries to declare and pay dividends; aspects of the
Company’s corporate structure that may discourage third-party
takeovers and other transactions; difficulties investors may have
in serving process or enforcing judgments against the Company in
the U.S.; 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,
2022
September 30,
2021
September 30,
2022
September 30,
2021
Revenues
Gross premiums written
$
2,220,661
$
1,774,180
$
7,628,264
$
6,520,780
Net premiums written
$
1,821,711
$
1,486,440
$
5,850,544
$
4,822,815
Decrease (increase) in unearned
premiums
(54,690
)
19,825
(1,140,715
)
(969,924
)
Net premiums earned
1,767,021
1,506,265
4,709,829
3,852,891
Net investment income
157,793
78,267
348,695
238,996
Net foreign exchange gains (losses)
(1,383
)
(4,755
)
(67,690
)
(24,309
)
Equity in earnings (losses) of other
ventures
1,739
5,305
2,732
8,479
Other income (loss)
2,834
1,692
4,950
4,449
Net realized and unrealized gains (losses)
on investments
(641,500
)
(42,071
)
(1,968,624
)
(196,616
)
Total revenues
1,286,504
1,544,703
3,029,892
3,883,890
Expenses
Net claims and claim expenses incurred
1,967,931
1,798,045
3,515,903
3,185,117
Acquisition expenses
417,644
328,048
1,155,389
880,872
Operational expenses
64,560
58,997
204,987
172,511
Corporate expenses
10,384
10,196
35,238
30,726
Interest expense
12,101
11,919
35,951
35,664
Total expenses
2,472,620
2,207,205
4,947,468
4,304,890
Income (loss) before taxes
(1,186,116
)
(662,502
)
(1,917,576
)
(421,000
)
Income tax benefit (expense)
(2,814
)
23,630
64,427
29,284
Net income (loss)
(1,188,930
)
(638,872
)
(1,853,149
)
(391,716
)
Net (income) loss attributable to
redeemable noncontrolling interests
372,429
198,495
335,010
131,801
Net income (loss) attributable to
RenaissanceRe
(816,501
)
(440,377
)
(1,518,139
)
(259,915
)
Dividends on preference shares
(8,843
)
(9,845
)
(26,531
)
(24,423
)
Net income (loss) available
(attributable) to RenaissanceRe common shareholders
$
(825,344
)
$
(450,222
)
$
(1,544,670
)
$
(284,338
)
Net income (loss) available (attributable)
to RenaissanceRe common shareholders per common share – basic
$
(19.27
)
$
(9.75
)
$
(35.84
)
$
(5.94
)
Net income (loss) available (attributable)
to RenaissanceRe common shareholders per common share – diluted
$
(19.27
)
$
(9.75
)
$
(35.84
)
$
(5.94
)
Operating (loss) income (attributable)
available to RenaissanceRe common shareholders per common share -
diluted (1)
$
(9.27
)
$
(8.98
)
$
(0.16
)
$
(2.77
)
Average shares outstanding - basic
42,837
46,223
43,121
47,988
Average shares outstanding - diluted
42,837
46,223
43,121
47,988
Net claims and claim expense ratio
111.4
%
119.4
%
74.7
%
82.7
%
Underwriting expense ratio
27.3
%
25.7
%
28.9
%
27.3
%
Combined ratio
138.7
%
145.1
%
103.6
%
110.0
%
Return on average common equity -
annualized
(72.4
)%
(28.4
)%
(40.5
)%
(5.8
)%
Operating return on average common equity
- annualized (1)
(34.8
)%
(26.1
)%
(0.2
)%
(2.7
)%
- See Comments on Regulation G 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,
2022
December 31,
2021
Assets
(Unaudited)
(Audited)
Fixed maturity investments trading, at
fair value
$
12,671,098
$
13,507,131
Short term investments, at fair value
4,935,960
5,298,385
Equity investments trading, at fair
value
950,393
546,016
Other investments, at fair value
2,263,164
1,993,059
Investments in other ventures, under
equity method
72,535
98,068
Total investments
20,893,150
21,442,659
Cash and cash equivalents
1,204,241
1,859,019
Premiums receivable
5,479,305
3,781,542
Prepaid reinsurance premiums
1,233,551
854,722
Reinsurance recoverable
4,969,244
4,268,669
Accrued investment income
84,508
55,740
Deferred acquisition costs and value of
business acquired
1,181,156
849,160
Receivable for investments sold
298,346
380,442
Other assets
353,147
224,053
Goodwill and other intangible assets
239,187
243,496
Total assets
$
35,935,835
$
33,959,502
Liabilities, Noncontrolling Interests
and Shareholders’ Equity
Liabilities
Reserve for claims and claim expenses
$
15,662,955
$
13,294,630
Unearned premiums
5,046,150
3,531,213
Debt
1,169,917
1,168,353
Reinsurance balances payable
4,158,610
3,860,963
Payable for investments purchased
589,886
1,170,568
Other liabilities
251,485
755,441
Total liabilities
26,879,003
23,781,168
Redeemable noncontrolling interests
4,174,960
3,554,053
Shareholders’ Equity
Preference shares
750,000
750,000
Common shares
43,702
44,445
Additional paid-in capital
465,565
608,121
Accumulated other comprehensive income
(loss)
(16,773
)
(10,909
)
Retained earnings
3,639,378
5,232,624
Total shareholders’ equity attributable
to RenaissanceRe
4,881,872
6,624,281
Total liabilities, noncontrolling
interests and shareholders’ equity
$
35,935,835
$
33,959,502
Book value per common share
$
94.55
$
132.17
RenaissanceRe Holdings
Ltd.
Supplemental Financial Data -
Segment Information
(in thousands of United States
Dollars, except percentages)
(Unaudited)
Three months ended September
30, 2022
Property
Casualty and Specialty
Other
Total
Gross premiums written
$
800,330
$
1,420,331
$
—
$
2,220,661
Net premiums written
$
696,520
$
1,125,191
$
—
$
1,821,711
Net premiums earned
$
839,817
$
927,204
$
—
$
1,767,021
Net claims and claim expenses incurred
1,372,583
595,348
—
1,967,931
Acquisition expenses
141,675
275,969
—
417,644
Operational expenses
48,158
16,402
—
64,560
Underwriting income (loss)
$
(722,599
)
$
39,485
$
—
(683,114
)
Net investment income
157,793
157,793
Net foreign exchange gains (losses)
(1,383
)
(1,383
)
Equity in earnings of other ventures
1,739
1,739
Other income (loss)
2,834
2,834
Net realized and unrealized gains (losses)
on investments
(641,500
)
(641,500
)
Corporate expenses
(10,384
)
(10,384
)
Interest expense
(12,101
)
(12,101
)
Income (loss) before taxes and redeemable
noncontrolling interests
(1,186,116
)
Income tax benefit (expense)
(2,814
)
(2,814
)
Net (income) loss attributable to
redeemable noncontrolling interests
372,429
372,429
Dividends on preference shares
(8,843
)
(8,843
)
Net income (loss) available (attributable)
to RenaissanceRe common shareholders
$
(825,344
)
Net claims and claim expenses incurred –
current accident year
$
1,396,842
$
602,995
$
—
$
1,999,837
Net claims and claim expenses incurred –
prior accident years
(24,259
)
(7,647
)
—
(31,906
)
Net claims and claim expenses incurred –
total
$
1,372,583
$
595,348
$
—
$
1,967,931
Net claims and claim expense ratio –
current accident year
166.3
%
65.0
%
113.2
%
Net claims and claim expense ratio – prior
accident years
(2.9
)%
(0.8
)%
(1.8
)%
Net claims and claim expense ratio –
calendar year
163.4
%
64.2
%
111.4
%
Underwriting expense ratio
22.6
%
31.5
%
27.3
%
Combined ratio
186.0
%
95.7
%
138.7
%
Three months ended September
30, 2021
Property
Casualty and Specialty
Other
Total
Gross premiums written
$
773,692
$
1,000,488
$
—
$
1,774,180
Net premiums written
$
681,095
$
805,345
$
—
$
1,486,440
Net premiums earned
$
816,376
$
689,889
$
—
$
1,506,265
Net claims and claim expenses incurred
1,323,678
474,367
—
1,798,045
Acquisition expenses
134,179
193,869
—
328,048
Operational expenses
40,448
18,549
—
58,997
Underwriting income (loss)
$
(681,929
)
$
3,104
$
—
(678,825
)
Net investment income
78,267
78,267
Net foreign exchange gains (losses)
(4,755
)
(4,755
)
Equity in earnings of other ventures
5,305
5,305
Other income (loss)
1,692
1,692
Net realized and unrealized gains (losses)
on investments
(42,071
)
(42,071
)
Corporate expenses
(10,196
)
(10,196
)
Interest expense
(11,919
)
(11,919
)
Income (loss) before taxes and redeemable
noncontrolling interests
(662,502
)
Income tax benefit (expense)
23,630
23,630
Net (income) loss attributable to
redeemable noncontrolling interests
198,495
198,495
Dividends on preference shares
(9,845
)
(9,845
)
Net income (loss) available (attributable)
to RenaissanceRe common shareholders
$
(450,222
)
Net claims and claim expenses incurred –
current accident year
$
1,469,613
$
476,082
$
—
$
1,945,695
Net claims and claim expenses incurred –
prior accident years
(145,935
)
(1,715
)
—
(147,650
)
Net claims and claim expenses incurred –
total
$
1,323,678
$
474,367
$
—
$
1,798,045
Net claims and claim expense ratio –
current accident year
180.0
%
69.0
%
129.2
%
Net claims and claim expense ratio – prior
accident years
(17.9
)%
(0.2
)%
(9.8
)%
Net claims and claim expense ratio –
calendar year
162.1
%
68.8
%
119.4
%
Underwriting expense ratio
21.4
%
30.8
%
25.7
%
Combined ratio
183.5
%
99.6
%
145.1
%
RenaissanceRe Holdings
Ltd.
Supplemental Financial Data -
Segment Information
(in thousands of United States
Dollars, except percentages)
(Unaudited)
Nine months ended September
30, 2022
Property
Casualty and Specialty
Other
Total
Gross premiums written
$
3,362,159
$
4,266,105
$
—
$
7,628,264
Net premiums written
$
2,474,661
$
3,375,883
$
—
$
5,850,544
Net premiums earned
$
2,081,989
$
2,627,840
$
—
$
4,709,829
Net claims and claim expenses incurred
1,804,268
1,711,635
—
3,515,903
Acquisition expenses
406,338
749,051
—
1,155,389
Operational expenses
144,717
60,270
—
204,987
Underwriting income (loss)
$
(273,334
)
$
106,884
$
—
(166,450
)
Net investment income
348,695
348,695
Net foreign exchange gain (loss)
(67,690
)
(67,690
)
Equity in earnings of other ventures
2,732
2,732
Other income (loss)
4,950
4,950
Net realized and unrealized gain (loss) on
investments
(1,968,624
)
(1,968,624
)
Corporate expenses
(35,238
)
(35,238
)
Interest expense
(35,951
)
(35,951
)
Income (loss) before taxes and redeemable
noncontrolling interests
(1,917,576
)
Income tax benefit (expense)
64,427
64,427
Net (income) loss attributable to
redeemable noncontrolling interests
335,010
335,010
Dividends on preference shares
(26,531
)
(26,531
)
Net income (loss) available (attributable)
to RenaissanceRe common shareholders
$
(1,544,670
)
Net claims and claim expenses incurred –
current accident year
$
1,880,337
$
1,728,262
$
—
$
3,608,599
Net claims and claim expenses incurred –
prior accident years
(76,069
)
(16,627
)
—
(92,696
)
Net claims and claim expenses incurred –
total
$
1,804,268
$
1,711,635
$
—
$
3,515,903
Net claims and claim expense ratio –
current accident year
90.3
%
65.8
%
76.6
%
Net claims and claim expense ratio – prior
accident years
(3.6
)%
(0.7
)%
(1.9
)%
Net claims and claim expense ratio –
calendar year
86.7
%
65.1
%
74.7
%
Underwriting expense ratio
26.4
%
30.8
%
28.9
%
Combined ratio
113.1
%
95.9
%
103.6
%
Nine months ended September
30, 2021
Property
Casualty and Specialty
Other
Total
Gross premiums written
$
3,574,067
$
2,946,713
$
—
$
6,520,780
Net premiums written
$
2,492,890
$
2,329,925
$
—
$
4,822,815
Net premiums earned
$
1,981,939
$
1,870,952
$
—
$
3,852,891
Net claims and claim expenses incurred
1,919,660
1,265,457
—
3,185,117
Acquisition expenses
356,171
524,701
—
880,872
Operational expenses
114,710
57,801
—
172,511
Underwriting income (loss)
$
(408,602
)
$
22,993
$
—
(385,609
)
Net investment income
238,996
238,996
Net foreign exchange gain (loss)
(24,309
)
(24,309
)
Equity in earnings of other ventures
8,479
8,479
Other income (loss)
4,449
4,449
Net realized and unrealized gain (loss) on
investments
(196,616
)
(196,616
)
Corporate expenses
(30,726
)
(30,726
)
Interest expense
(35,664
)
(35,664
)
Income (loss) before taxes and redeemable
noncontrolling interests
(421,000
)
Income tax benefit (expense)
29,284
29,284
Net (income) loss attributable to
redeemable noncontrolling interests
131,801
131,801
Dividends on preference shares
(24,423
)
(24,423
)
Net income (loss) available (attributable)
to RenaissanceRe common shareholders
$
(284,338
)
Net claims and claim expenses incurred –
current accident year
$
2,121,740
$
1,272,088
$
—
$
3,393,828
Net claims and claim expenses incurred –
prior accident years
(202,080
)
(6,631
)
—
(208,711
)
Net claims and claim expenses incurred –
total
$
1,919,660
$
1,265,457
$
—
$
3,185,117
Net claims and claim expense ratio –
current accident year
107.1
%
68.0
%
88.1
%
Net claims and claim expense ratio – prior
accident years
(10.2
)%
(0.4
)%
(5.4
)%
Net claims and claim expense ratio –
calendar year
96.9
%
67.6
%
82.7
%
Underwriting expense ratio
23.7
%
31.2
%
27.3
%
Combined ratio
120.6
%
98.8
%
110.0
%
RenaissanceRe Holdings
Ltd.
Supplemental Financial Data -
Gross Premiums Written
(in thousands of United States
Dollars)
(Unaudited)
Three months ended
Nine months ended
September 30,
2022
September 30,
2021
September 30,
2022
September 30,
2021
Property Segment
Catastrophe
$
391,347
$
335,493
$
2,080,771
$
2,227,941
Other property
408,983
438,199
1,281,388
1,346,126
Property segment gross premiums
written
$
800,330
$
773,692
$
3,362,159
$
3,574,067
Casualty and Specialty Segment
General casualty (1)
$
397,818
$
346,754
$
1,200,693
$
976,610
Professional liability (2)
380,125
329,848
1,378,645
950,607
Financial lines (3)
365,863
128,586
844,447
359,147
Other (4)
276,525
195,300
842,320
660,349
Casualty and Specialty segment gross
premiums written
$
1,420,331
$
1,000,488
$
4,266,105
$
2,946,713
(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, and professional indemnity.
(3)
Includes financial guaranty, mortgage
guaranty, political risk, surety and trade credit.
(4)
Includes accident and health, agriculture,
aviation, cyber, energy, marine, satellite and terrorism. Lines of
business such as regional multi-line and whole account may have
characteristics of various other classes 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,
2022
September 30,
2021
September 30,
2022
September 30,
2021
Fixed maturity investments trading
$
107,182
$
56,825
$
246,146
$
179,268
Short term investments
11,601
514
17,134
1,869
Equity investments trading
6,120
1,823
13,390
4,940
Other investments
Catastrophe bonds
25,748
17,184
63,343
48,333
Other
11,258
7,571
23,704
20,711
Cash and cash equivalents
1,386
(38
)
1,250
223
163,295
83,879
364,967
255,344
Investment expenses
(5,502
)
(5,612
)
(16,272
)
(16,348
)
Net investment income
157,793
78,267
348,695
238,996
Net investment income return -
annualized
3.2
%
1.4
%
2.3
%
1.5
%
Net realized gains (losses) on fixed
maturity investments trading
(213,493
)
27,501
(621,799
)
81,060
Net unrealized gains (losses) on fixed
maturity investments trading
(210,665
)
(56,869
)
(824,662
)
(289,872
)
Net realized and unrealized gains (losses)
on investments-related derivatives
(55,580
)
(2,056
)
(161,946
)
3,476
Net realized gains (losses) on equity
investments trading
3,066
52,604
38,638
255,902
Net unrealized gains (losses) on equity
investments trading
(46,301
)
(74,284
)
(222,074
)
(279,938
)
Other investments
Net realized and unrealized gains (losses)
on other investments - catastrophe bonds
(126,992
)
(5,994
)
(159,913
)
(25,075
)
Net realized and unrealized gains (losses)
on other investments - other
8,465
17,027
(16,868
)
57,831
Net realized and unrealized gains
(losses) on investments
(641,500
)
(42,071
)
(1,968,624
)
(196,616
)
Total investment result
$
(483,707
)
$
36,196
$
(1,619,929
)
$
42,380
Total investment return -
annualized
(8.9
)%
0.7
%
(10.1
)%
0.3
%
Comments on Regulation
G
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 these financial measures in previous investor
communications and the Company’s management believes that these
measures are important to investors and other interested persons,
and that investors and such other persons benefit from having a
consistent basis for comparison between quarters and for comparison
with other companies within or outside the industry. These measures
may not, however, be comparable to similarly titled measures used
by companies within or outside of the insurance industry. Investors
are cautioned not to place undue reliance on these non-GAAP
measures in assessing the Company’s overall financial
performance.
Operating Income (Loss) Available (Attributable) to
RenaissanceRe Common Shareholders and Operating Return on Average
Common Equity - Annualized
The Company uses “operating income (loss) available
(attributable) to RenaissanceRe common shareholders” as a measure
to evaluate the underlying fundamentals of its operations and
believes it to be a useful measure of its corporate performance.
“Operating income (loss) available (attributable) to RenaissanceRe
common shareholders” as used herein differs from “net income (loss)
attributable to RenaissanceRe common shareholders,” which the
Company believes is the most directly comparable GAAP measure, by
the exclusion of net realized and unrealized gains and losses on
investments, excluding other investments - catastrophe bonds, net
foreign exchange gains and losses, corporate expenses associated
with the acquisition of TMR and the subsequent sale of
RenaissanceRe (UK) Limited (“RenaissanceRe UK”), the income tax
expense or benefit associated with these adjustments and the
portion of these adjustments attributable to the Company’s
redeemable noncontrolling interests. The Company’s management
believes that “operating income (loss) available (attributable) to
RenaissanceRe common shareholders” is useful to investors because
it more accurately measures and predicts the Company’s results of
operations by removing the variability arising from: fluctuations
in the fair value of the Company’s fixed maturity investment
portfolio, equity investments trading, other investments (excluding
catastrophe bonds) and investments-related derivatives;
fluctuations in foreign exchange rates; corporate expenses
associated with the acquisition of TMR and the subsequent sale of
RenaissanceRe UK; the associated income tax expense or benefit of
these adjustments; and 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 following table
is a reconciliation of: (1) net income (loss) attributable to
RenaissanceRe common shareholders to “operating income (loss)
available (attributable) to RenaissanceRe common shareholders”; (2)
net income (loss) 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 all prior periods has 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,
2022
September 30,
2021
September 30,
2022
September 30,
2021
Net income (loss) available (attributable)
to RenaissanceRe common shareholders
$
(825,344
)
$
(450,222
)
$
(1,544,670
)
$
(284,338
)
Adjustment for net realized and unrealized
losses (gains) on investments, excluding other investments -
catastrophe bonds
514,508
36,077
1,808,711
171,541
Adjustment for net foreign exchange losses
(gains)
1,383
4,755
67,690
24,309
Adjustment for corporate expenses
associated with the acquisition of TMR and the subsequent sale of
RenaissanceRe UK
—
—
—
135
Adjustment for income tax expense
(benefit) (1)
7,269
286
(77,331
)
(7,893
)
Adjustment for net income (loss)
attributable to redeemable noncontrolling interests (2)
(94,490
)
(5,434
)
(260,997
)
(35,847
)
Operating income (loss) available
(attributable) to RenaissanceRe common shareholders
$
(396,674
)
$
(414,538
)
$
(6,597
)
$
(132,093
)
Net income (loss) available (attributable)
to RenaissanceRe common shareholders per common share - diluted
$
(19.27
)
$
(9.75
)
$
(35.84
)
$
(5.94
)
Adjustment for net realized and unrealized
losses (gains) on investments, excluding other investments -
catastrophe bonds
12.01
0.78
41.95
3.57
Adjustment for net foreign exchange losses
(gains)
0.03
0.10
1.57
0.51
Adjustment for corporate expenses
associated with the acquisition of TMR and the subsequent sale of
RenaissanceRe UK
—
—
—
—
Adjustment for income tax expense
(benefit) (1)
0.17
0.01
(1.79
)
(0.16
)
Adjustment for net income (loss)
attributable to redeemable noncontrolling interests (2)
(2.21
)
(0.12
)
(6.05
)
(0.75
)
Operating income (loss) available
(attributable) to RenaissanceRe common shareholders per common
share - diluted
$
(9.27
)
$
(8.98
)
$
(0.16
)
$
(2.77
)
Return on average common equity -
annualized
(72.4
)%
(28.4
)%
(40.5
)%
(5.8
)%
Adjustment for net realized and unrealized
losses (gains) on investments, excluding other investments -
catastrophe bonds
45.2
%
2.3
%
47.3
%
3.5
%
Adjustment for net foreign exchange losses
(gains)
0.1
%
0.3
%
1.8
%
0.5
%
Adjustment for corporate expenses
associated with the acquisition of TMR and the subsequent sale of
RenaissanceRe UK
—
%
—
%
—
%
—
%
Adjustment for income tax expense
(benefit) (1)
0.6
%
—
%
(2.0
)%
(0.2
)%
Adjustment for net income (loss)
attributable to redeemable noncontrolling interests (2)
(8.3
)%
(0.3
)%
(6.8
)%
(0.7
)%
Operating return on average common equity
- annualized
(34.8
)%
(26.1
)%
(0.2
)%
(2.7
)%
- 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.
- 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 goodwill and
intangible assets per share. “Tangible book value per common share
plus accumulated dividends” is defined as book value per common
share excluding goodwill and intangible assets per share, 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. 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.”
September 30,
2022
June 30, 2022
March 31, 2022
December 31,
2021
September 30,
2021
Book value per common share
$
94.55
$
113.69
$
121.44
$
132.17
$
128.91
Adjustment for goodwill and other
intangibles (1)
(5.89
)
(5.90
)
(5.89
)
(5.90
)
(5.67
)
Tangible book value per common share
88.66
107.79
115.55
126.27
123.24
Adjustment for accumulated dividends
24.63
24.26
23.89
23.52
23.16
Tangible book value per common share plus
accumulated dividends
$
113.29
$
132.05
$
139.44
$
149.79
$
146.40
Quarterly change in book value per common
share
(16.8
)%
(6.4
)%
(8.1
)%
2.5
%
(7.5
)%
Quarterly change in tangible book value
per common share plus change in accumulated dividends
(17.4
)%
(6.4
)%
(8.2
)%
2.8
%
(7.6
)%
Year to date change in book value per
common share
(28.5
)%
(14.0
)%
(8.1
)%
(4.5
)%
(6.9
)%
Year to date change in tangible book value
per common share plus change in accumulated dividends
(28.9
)%
(14.0
)%
(8.2
)%
(4.0
)%
(6.6
)%
- At September 30, 2022, June 30, 2022, March 31, 2022, December
31, 2021, and September 30, 2021, the adjustment for goodwill and
other intangibles included $18.0 million, $18.3 million, $18.4
million, $18.6 million, and $19.0 million, respectively, of
goodwill and other intangibles included in investments in other
ventures, under equity method.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221101006170/en/
INVESTOR CONTACT: RenaissanceRe Holdings Ltd. Keith McCue
Senior Vice President, Finance & Investor Relations (441)
239-4830 MEDIA CONTACT: RenaissanceRe Holdings Ltd. Hayden
Kenny Vice President, Investor Relations & Communications (441)
239-4946 or Kekst CNC Dawn Dover (212) 521-4800
RenaissanceRe (NYSE:RNR)
Graphique Historique de l'Action
De Jan 2025 à Fév 2025
RenaissanceRe (NYSE:RNR)
Graphique Historique de l'Action
De Fév 2024 à Fév 2025
