RenaissanceRe Reports Annual Net Loss Attributable to Common
Shareholders of $1.1 Billion; Operating Income Available to Common
Shareholders of $315.6 Million.
- 41.2% annualized return on average common equity and 29.6%
annualized operating return on average common equity in Q4
2022.
- Net investment income of $211.2 million in Q4 2022, 162.5%
growth compared to Q4 2021.
- 21.2% growth in net premiums written in 2022; driven by 41.6%
growth in Casualty and Specialty.
- Casualty and Specialty combined ratio of 93.7% in Q4 2022 and
95.3% in 2022.
- Raised $1.4 billion of third-party capital in the Capital
Partners business in 2022, with a further $402.9 million raised
from third-party investors effective January 1, 2023.
- 2022 Weather-Related Large Losses had an $807.6 million net
negative impact on net loss attributable to common shareholders in
2022, and added 20.0 percentage points to the consolidated combined
ratio.
RenaissanceRe Holdings Ltd. (NYSE: RNR) (“RenaissanceRe” or the
“Company”) today announced its financial results for the fourth
quarter and full year 2022.
Fourth Quarter 2022
Net Income Available to Common
Shareholders per Diluted Common Share: $10.27
Operating Income Available to
Common Shareholders per Diluted Common Share*: $7.33
Underwriting Income
$316.3M
Fee Income
$30.3M
Net Investment Income
$211.2M
Change in Book Value per
Common Share: 10.7%
Change in Tangible Book Value
per Common Share Plus Change in Accum. Dividends*: 11.9%
*
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, “We finished the year with an
excellent quarter, reporting an annualized operating return on
average common equity of 29.6% driven by strong underwriting
results, significantly increased net investment income and stable
management fees. For the full year, we delivered a 6.3% operating
return despite a net negative impact of $807.6 million from
catastrophe losses. At the January renewal we demonstrated
leadership and discipline, achieving the step change in rate and
terms investors required, while providing the reinsurance capacity
customers needed. We enter 2023 with expectations of continuing
strong demand for our products, ample capital to meet this demand,
and anticipation of one of the most successful years in our
history.”
Consolidated Financial Results
- Fourth Quarter
Consolidated Highlights
Three months ended December
31,
(in thousands, except per share amounts
and percentages)
2022
2021
Gross premiums written
$
1,585,276
$
1,313,018
Net premiums written
1,345,616
1,116,560
Underwriting income (loss)
316,302
276,661
Combined ratio
80.5
%
79.4
%
Net Income (Loss)
Available (attributable) to common
shareholders
448,092
210,917
Available (attributable) to common
shareholders per diluted common share
$
10.27
$
4.65
Operating Income (Loss) (1)
Available (attributable) to common
shareholders
322,153
213,692
Available (attributable) to common
shareholders per diluted common share
$
7.33
$
4.71
Book value per common share
$
104.65
$
132.17
Change in book value per share
10.7
%
2.5
%
Tangible book value per common share plus
accumulated dividends (1)
$
123.81
$
149.79
Change in tangible book value per common
share plus change in accumulated dividends (1)
11.9
%
2.8
%
Return on average common equity -
annualized
41.2
%
14.2
%
Operating return on average common equity
- annualized (1)
29.6
%
14.4
%
(1)
See “Comments on Regulation G” for a
reconciliation of non-GAAP financial measures.
Three Drivers of Profit:
Underwriting, Fee and Investment Income - Fourth Quarter
Underwriting Results - Property Segment: Combined ratio of
62.6%; 19.2 percentage points from weather-related large
losses.
Property Segment
Three months ended December
31,
Q/Q Change
(in thousands, except percentages)
2022
2021
Gross premiums written
$
372,082
$
384,657
(3.3
) %
Net premiums written
372,998
375,112
(0.6
) %
Underwriting income (loss)
257,225
223,098
Underwriting Ratios
Net claims and claim expense ratio -
current accident year
53.8
%
43.8
%
10.0 pts
Net claims and claim expense ratio - prior
accident years
(18.9
) %
(4.9
) %
(14.0) pts
Net claims and claim expense ratio -
calendar year
34.9
%
38.9
%
(4.0) pts
Underwriting expense ratio
27.7
%
25.5
%
2.2 pts
Combined ratio
62.6
%
64.4
%
(1.8) pts
- Gross premiums written decreased by $12.6 million, or
3.3%, driven by a reduction of $11.8 million within the catastrophe
class of business primarily due to lower reinstatement
premiums.
- Net premiums written decreased by $2.1 million, or 0.6%,
also reflecting lower reinstatement premiums.
- Net claims and claim expense ratio - current accident
year increased 10.0 percentage points, primarily due to the
impacts of Winter Storm Elliott and Hurricane Nicole, as well as
losses associated with aggregate loss contracts.
– Weather-related large losses contributed
19.2 percentage points to the current accident year net claims and
claim expense ratio in the fourth quarter of 2022, compared to a
contribution of 11.0 percentage points from weather-related large
losses in the fourth quarter of 2021.
- Net claims and claim expense ratio - prior accident
years reflects net favorable development, primarily from
weather-related large losses in the 2019 and 2021 accident years,
driven by better than expected loss emergence.
- Underwriting expense ratio increased 2.2 percentage
points, driven by a lower performance-based compensation expense in
the fourth quarter of 2021, in addition to lower management fees
due to reductions in Upsilon and the portfolio of structured
reinsurance products.
- Underwriting income of $257.2 million and a combined
ratio of 62.6%. Weather-related large losses had a $131.9 million
net negative impact on the Property segment underwriting result and
added 19.2 percentage points to the combined ratio in the fourth
quarter of 2022.
Underwriting Results - Casualty and Specialty Segment:
Combined ratio of 93.7% and growth in net premiums written of
31.2%.
Casualty and Specialty Segment
Three months ended December
31,
Q/Q Change
(in thousands, except percentages)
2022
2021
Gross premiums written
$
1,213,194
$
928,361
30.7
%
Net premiums written
972,618
741,448
31.2
%
Underwriting income (loss)
59,077
53,563
Underwriting Ratios
Net claims and claim expense ratio -
current accident year
64.9
%
63.9
%
1.0 pts
Net claims and claim expense ratio - prior
accident years
(2.7
)%
(1.3
)%
(1.4) pts
Net claims and claim expense ratio -
calendar year
62.2
%
62.6
%
(0.4) pts
Underwriting expense ratio
31.5
%
29.9
%
1.6 pts
Combined ratio
93.7
%
92.5
%
1.2 pts
- Gross premiums written increased 30.7% with growth
across all lines of business. The increase reflects growth in new
and existing business and rate improvement, mainly from business
written in prior periods.
- Net premiums written increased 31.2% consistent with the
increase in gross premiums written.
- Net claims and claim expense ratio - current accident
year increased by 1.0 percentage point principally as a result
of a large energy loss in the other specialty lines of
business.
- Net claims and claim expense ratio - prior accident
years reflects higher favorable prior accident year loss
development of 1.4 percentage points as compared to the fourth
quarter of 2021, driven by favorable experience in other specialty
and credit lines of business.
- Underwriting expense ratio increased 1.6 percentage
points, principally due to:
– Increase in the operating expense ratio of
0.9 percentage points mainly due to a lower performance-based
compensation expense in the fourth quarter of 2021; and
– Increase in the net acquisition expense
ratio of 0.7 percentage points due to changes in the mix of
business and estimated profit commission expense.
Fee Income: $30.3 million of fee income; management fees
stable while performance fees impacted by 2022 Weather-Related
Large Losses.
Fee Income
Three months ended December
31,
Q/Q Change
(in thousands, except percentages)
2022
2021
Total management fee income
$
25,984
$
24,723
$
1,261
Total performance fee income (loss)
(1)
4,363
5,299
(936
)
Total fee income
$
30,347
$
30,022
$
325
(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 was relatively stable as compared
to the fourth 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 (“Fontana”), largely offset by
reductions in the Company’s structured reinsurance products and
Upsilon, as well as a deferral of management fees in DaVinci as a
result of the weather-related large losses experienced in the
current and prior years.
- Performance fee income was lower in the fourth quarter
of 2022 compared to the fourth quarter of 2021, and was affected by
the cumulative impact of the catastrophe events in 2021 and
2022.
Investment Results: Total investment result improved $320.4
million; driven by 162.5% growth in net investment income and
$168.1 million of net realized and unrealized gains in the fixed
maturity investments portfolio.
Investment Results
Three months ended December
31,
Q/Q Change
(in thousands, except percentages)
2022
2021
Net investment income
$
211,237
$
80,483
$
130,754
Net realized and unrealized gains (losses)
on investments
168,139
(21,518
)
189,657
Total investment result
$
379,376
$
58,965
$
320,411
Total investment return - annualized
7.4
%
1.1
%
6.3 pts
- Net investment income increased $130.8 million,
primarily driven by:
– Rising interest rates and increased yields
in the fixed maturity trading and short term investment
portfolios;
– Higher yields on catastrophe bonds; and
– Higher average invested assets and yields
in private credit fund investments.
- Net realized and unrealized gains on investments
increased $189.7 million principally driven by:
– Net realized and unrealized gains on fixed
maturity investments trading of $77.1 million, which includes
unrealized gains of $187.9 million resulting from the modest
reduction in interest rates on medium-term U.S. treasuries, as well
as a narrowing of credit spreads on the corporate and high yield
fixed maturity portfolios, partially offset by realized losses of
$110.8 million. This compares to net realized and unrealized losses
of $101.0 million in the fourth quarter of 2021 resulting from
increases in interest rates.
- Total investments were $22.2 billion at December 31,
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 5.7% and 2.5 years (December 31, 2021 - 1.6% and
2.8 years, respectively).
Other Items of Note - Fourth
Quarter
- Net income attributable to redeemable noncontrolling
interests of $236.4 million was primarily driven by:
– Strong underwriting results for DaVinci and
Vermeer;
– Strong net investment income stemming from
higher interest rates and yields within the investment portfolios
of the Company’s joint ventures and managed funds; and
– Net realized and unrealized gains on
investments recorded during the quarter, as described above.
- Raised third-party capital of $123.0 million in the
fourth quarter of 2022, including $120.0 million in Vermeer.
- Redemptions of third-party capital of $224.6 million
from Upsilon during the fourth quarter of 2022, reducing the size
of Upsilon as a result of the release of collateral associated with
prior years’ contracts.
Consolidated Financial Results
- Full Year
Consolidated Highlights
Twelve months ended December
31,
(in thousands, except per share amounts
and percentages)
2022
2021
Gross premiums written
$
9,213,540
$
7,833,798
Net premiums written
7,196,160
5,939,375
Underwriting income (loss)
149,852
(108,948
)
Combined ratio
97.7
%
102.1
%
Net Income (Loss)
Available (attributable) to common
shareholders
$
(1,096,578
)
$
(73,421
)
Available (attributable) to common
shareholders per diluted common share
$
(25.50
)
$
(1.57
)
Operating Income (Loss) (1)
Available (attributable) to common
shareholders
$
315,556
$
81,599
Available (attributable) to common
shareholders per diluted common share
$
7.30
$
1.72
Book value per common share
$
104.65
$
132.17
Change in book value per share
(20.8
)%
(4.5
)%
Tangible book value per common share plus
accumulated dividends (1)
$
123.81
$
149.79
Change in tangible book value per common
share plus change in accumulated dividends (1)
(20.6
)%
(4.0
)%
Return on average common equity
(22.0
)%
(1.1
)%
Operating return on average common equity
(1)
6.3
%
1.3
%
(1)
See “Comments on Regulation G” for a
reconciliation of non-GAAP financial measures.
Net negative impact of the 2022 Weather-Related Large
Losses
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.
Net negative impact on the consolidated financial
statements
Year ended
December 31, 2022
Hurricane Ian
Other 2022 Catastrophe Events
(1)
Aggregate Losses
Total 2022 Weather- Related
Large Losses (2)
(in thousands)
Net claims and claims expenses
incurred
$
(982,189
)
$
(330,973
)
$
(93,810
)
$
(1,406,972
)
Assumed reinstatement premiums earned
221,801
27,138
52
248,991
Ceded reinstatement premiums earned
(57,913
)
(579
)
—
(58,492
)
Earned (lost) profit commissions
(1,487
)
(1,285
)
(49
)
(2,821
)
Net negative impact on underwriting
result
(819,788
)
(305,699
)
(93,807
)
(1,219,294
)
Redeemable noncontrolling interest
286,910
87,398
37,399
411,707
Net negative impact on net income (loss)
available (attributable) to RenaissanceRe common shareholders
$
(532,878
)
$
(218,301
)
$
(56,408
)
$
(807,587
)
Net negative impact on the segment underwriting results and
consolidated combined ratio
Year ended
December 31, 2022
Hurricane Ian
Other 2022 Catastrophe Events
(1)
Aggregate Losses
Total 2022 Weather- Related
Large Losses (2)
(in thousands, except percentages)
Net negative impact on Property segment
underwriting result
$
(811,828
)
$
(302,080
)
$
(93,807
)
$
(1,207,715
)
Net negative impact on Casualty and
Specialty segment underwriting result
(7,960
)
(3,619
)
—
(11,579
)
Net negative impact on underwriting
result
$
(819,788
)
$
(305,699
)
$
(93,807
)
$
(1,219,294
)
Percentage point impact on consolidated
combined ratio
13.4
4.9
1.5
20.0
(1)
“Other 2022 Catastrophe Events” includes
the floods in Eastern Australia in February and March of 2022,
Storm Eunice, the severe weather in France in May and June of 2022,
Hurricane Fiona and the typhoons in Asia during the third quarter
of 2022, and Hurricane Nicole and Winter Storm Elliott during the
fourth quarter of 2022.
(2)
“2022 Weather-Related Large Losses”
includes Hurricane Ian, Other 2022 Catastrophe Events and loss
estimates associated with certain aggregate loss contracts
triggered during 2022 as a result of weather-related catastrophe
events.
Three Drivers of Profit:
Underwriting, Fee, and Investment Income - Full Year
Underwriting Results - Property Segment: Combined ratio of
100.6%; 46.8 percentage points from the 2022 Weather-Related Large
Losses.
Property Segment
Twelve months ended December
31,
Y/Y Change
(in thousands, except percentages)
2022
2021
Gross premiums written
$
3,734,241
$
3,958,724
(5.7
) %
Net premiums written
2,847,659
2,868,002
(0.7
) %
Underwriting income (loss)
(16,109
)
(185,504
)
Underwriting Ratios
Net claims and claim expense ratio -
current accident year
81.2
%
91.9
%
(10.7) pts
Net claims and claim expense ratio - prior
accident years
(7.4
)%
(9.0
)%
1.6 pts
Net claims and claim expense ratio -
calendar year
73.8
%
82.9
%
(9.1) pts
Underwriting expense ratio
26.8
%
24.2
%
2.6 pts
Combined ratio
100.6
%
107.1
%
(6.5) pts
- Gross premiums written decreased 5.7%, driven by:
– Decrease in the catastrophe class of
business of $159.0 million, or 7.1%, principally driven by lower
reinstatement premiums in 2022 compared to 2021, as well as the
reduction in the size of Upsilon over the course of the year.
– Decrease in the other property class of
business of $65.5 million, or 3.8%, principally due to the
non-renewal of certain deals, partially offset by growth and rate
improvement across other areas within the other property class of
business.
- Ceded premiums written were $886.6 million, a decrease
of $204.1 million, or 18.7%. This decrease was primarily driven
by:
– The reduction in gross premiums written in
Upsilon, which are largely ceded to third party investors.
– A reduction in retrocessional purchases as
part of the Company’s gross-to-net strategy, in conjunction with
the growth in managed third-party capital vehicles.
- Net claims and claim expense ratio - current accident
year improved by 10.7 percentage points, primarily as a result
of a lower impact from the 2022 Weather-Related Large Losses as
compared to the impact of weather-related large losses in
2021.
- The net claims and claim expense ratio - prior accident
years reflected net favorable development of 7.4%, primarily
related to weather-related large losses in the 2017 to 2021
accident years.
- Underwriting expense ratio increased 2.6 percentage
points, driven by a lower performance based compensation expense in
2021, in addition to lower management fees due to reductions in
Upsilon and the portfolio of structured reinsurance products.
- Underwriting loss of $16.1 million and a combined ratio
of 100.6%, primarily driven by the 2022 Weather-Related Large
Losses, which had a $1.2 billion net negative impact on the
Property segment underwriting result and added 46.8 percentage
points to the combined ratio.
Casualty and Specialty Segment: Net premiums written
increased by 41.6%; Combined ratio of 95.3%
Casualty and Specialty Segment
Twelve months ended December
31,
Y/Y Change
(in thousands, except percentages)
2022
2021
Gross premiums written
$
5,479,299
$
3,875,074
41.4
%
Net premiums written
4,348,501
3,071,373
41.6
%
Underwriting income (loss)
165,961
76,556
Underwriting Ratios
Net claims and claim expense ratio -
current accident year
65.5
%
66.9
%
(1.4) pts
Net claims and claim expense ratio - prior
accident years
(1.1
)%
(0.7
)%
(0.4) pts
Net claims and claim expense ratio -
calendar year
64.4
%
66.2
%
(1.8) pts
Underwriting expense ratio
30.9
%
30.8
%
0.1 pts
Combined ratio
95.3
%
97.0
%
(1.7) pts
- Gross premiums written increased 41.4%, driven by:
– Growth in new and existing business, and
rate improvements, principally in the casualty and credit lines of
business.
– Gross premiums written in 2022 also
included approximately $450 million from positive premium
developments on business underwritten in 2021 and prior years, and
reflects rate improvements principally in casualty lines of
business.
- Net premiums written increased 41.6%, primarily driven
by growth in casualty and credit lines of business, consistent with
the changes in gross premiums written.
- Net claims and claim expense ratio - current accident
year improved by 1.4 percentage points, primarily as a result
of lower current accident year attritional losses compared to
2021.
- Net claims and claim expense ratio - prior accident
years improved by 0.4 percentage points, reflecting higher
favorable prior accident year loss development compared to
2021.
- The underwriting expense ratio increased 0.1 percentage
points driven by an increase of 0.5 percentage points in the net
acquisition expense ratio due to higher costs. This was largely
offset by a 0.4 percentage point decrease in the operating expense
ratio, driven by continued improvement in operating leverage.
Fee Income: $118.7 million of fee income; management fees
stable year over year
Fee Income
Twelve months ended December
31,
Y/Y Change
(in thousands, except percentages)
2022
2021
Total management fee income
$
108,902
$
109,071
$
(169
)
Total performance fee income (loss)
(1)
9,777
19,432
(9,655
)
Total fee income
$
118,679
$
128,503
$
(9,824
)
(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.
- Total fee income decreased $9.8 million primarily due to
lower performance fee income in 2022.
– Relatively stable management fee income in
2022. The management fees in both years were impacted by a deferral
of management fees in DaVinci as a result of the large losses
experienced in both years.
– Lower performance fee income in 2022 was
primarily due to the impact of the 2022 Weather-Related Large
Losses on the results of the Company’s joint ventures and managed
funds, partially offset by higher favorable development on prior
year losses in DaVinci.
Investment Results: Net investment income increased $240.5
million; total investment result primarily driven by net realized
and unrealized losses in the fixed maturity and equity investments
portfolio.
Investment Results
Twelve months ended December
31,
Y/Y Change
(in thousands, except percentages)
2022
2021
Net investment income
$
559,932
$
319,479
$
240,453
Net realized and unrealized gains (losses)
on investments
(1,800,485
)
(218,134
)
(1,582,351
)
Total investment result
$
(1,240,553
)
$
101,345
$
(1,341,898
)
Total investment return
(5.7
)%
0.5
%
(6.2) pts
- Total investment result decreased $1.3 billion primarily
due to:
– Net realized and unrealized losses in 2022
of $1.4 billion on fixed maturity investments, primarily due to the
increase in inflation in 2022, combined with increasing yields on
U.S. treasuries, as well as net realized and unrealized losses on
equity investments of $123.8 million, which was the result of a
generally lower equity market environment through the year, and
$130.3 million of net realized and unrealized losses on catastrophe
bonds, primarily due to Hurricane Ian;
– Net investment income increased as a result
of higher interest rates and increased yields within the Company’s
investment portfolio, primarily driven by an increase in yields on
U.S treasuries.
Other Items of Note - Full
Year and Subsequent Events
- Net loss attributable to redeemable noncontrolling
interests of $98.6 million was primarily driven by:
– Net realized and unrealized losses on
investments in DaVinci, Vermeer, Fontana and Medici, including
losses on its catastrophe bonds portfolio; and
– Impact of the 2022 Weather-Related Large
Losses on DaVinci, Vermeer and Medici; partially offset by
– Net investment income in Vermeer.
- Income tax benefit of $59.0 million, principally driven
by unrealized investment portfolio losses in the Company’s taxable
jurisdictions.
- Net foreign exchange losses of $56.9 million compared to
a $41.0 million net foreign exchange loss in 2021. The net foreign
exchange loss was primarily driven by losses attributable to third
party investors in Medici, which are allocated through
noncontrolling interest, and certain foreign exchange exposures
related to underwriting activities, which are not expected to
recur.
- Raised third party capital of $1.4 billion during 2022,
through DaVinci ($462.7 million), Medici ($350.1 million), Fontana
($273.7 million), Vermeer ($250.0 million) and Upsilon ($79.0
million).
- Redemptions of third-party capital of $687.6 million
during 2022, of which $425.8 million were from Upsilon, and the
remaining from DaVinci and Medici.
- Repurchased 1.1 million common shares at an aggregate
cost of $162.8 million and an average price of $155.00 per common
share.
- Raised third party capital of $402.9 million,
effective January 1, 2023, including $377.2 million in DaVinci and
the remaining in Medici. Following these transactions, the
Company’s ownership in DaVinci and Medici was 25.4% and 12.5%,
respectively.
- Mona Lisa Re issued $185 million of principal-at-risk
variable rate notes to investors, effective January 10, 2023.
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, February
1, 2023 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 performance of the
Company’s investment portfolio and financial market volatility; the
effects of inflation; the ability of the Company’s ceding companies
and delegated authority counterparties to accurately assess the
risks they underwrite; the Company’s ability to maintain its
financial strength ratings; the highly competitive nature of the
Company’s industry and its reliance on a small number of brokers;
collection on claimed retrocessional coverage, and new
retrocessional reinsurance being available on acceptable terms or
at all; the historically cyclical nature of the (re)insurance
industries; 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 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
and U.S. laws and regulations; other political, regulatory or
industry initiatives adversely impacting the Company; the Company’s
ability to comply with covenants in its debt agreements; the effect
of adverse economic factors, including changes in prevailing
interest rates and recession or the perception that recession may
occur; the effect of cybersecurity risks, including technology
breaches or failure; a contention by the U.S. Internal Revenue
Service that any of the Company’s Bermuda subsidiaries are subject
to taxation in the U.S.; the effects of possible future tax reform
legislation and regulations in the jurisdictions in which we
operate; the Company’s ability to determine any impairments taken
on its investments; the Company’s ability to raise capital on
acceptable terms, including through debt instruments, the capital
markets, and third party investments in our joint ventures and
managed funds; 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; 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
Twelve months ended
December 31,
2022
December 31,
2021
December 31,
2022
December 31,
2021
Revenues
Gross premiums written
$
1,585,276
$
1,313,018
$
9,213,540
$
7,833,798
Net premiums written
$
1,345,616
$
1,116,560
$
7,196,160
$
5,939,375
Decrease (increase) in unearned
premiums
278,544
224,730
(862,171
)
(745,194
)
Net premiums earned
1,624,160
1,341,290
6,333,989
5,194,181
Net investment income
211,237
80,483
559,932
319,479
Net foreign exchange gains (losses)
10,781
(16,697
)
(56,909
)
(41,006
)
Equity in earnings (losses) of other
ventures
8,517
3,830
11,249
12,309
Other income (loss)
7,686
6,431
12,636
10,880
Net realized and unrealized gains (losses)
on investments
168,139
(21,518
)
(1,800,485
)
(218,134
)
Total revenues
2,030,520
1,393,819
5,060,412
5,277,709
Expenses
Net claims and claim expenses incurred
822,937
690,970
4,338,840
3,876,087
Acquisition expenses
413,217
333,986
1,568,606
1,214,858
Operational expenses
71,704
39,673
276,691
212,184
Corporate expenses
11,537
10,426
46,775
41,152
Interest expense
12,384
11,872
48,335
47,536
Total expenses
1,331,779
1,086,927
6,279,247
5,391,817
Income (loss) before taxes
698,741
306,892
(1,218,835
)
(114,108
)
Income tax benefit (expense)
(5,408
)
(18,616
)
59,019
10,668
Net income (loss)
693,333
288,276
(1,159,816
)
(103,440
)
Net (income) loss attributable to
redeemable noncontrolling interests
(236,397
)
(68,516
)
98,613
63,285
Net income (loss) attributable to
RenaissanceRe
456,936
219,760
(1,061,203
)
(40,155
)
Dividends on preference shares
(8,844
)
(8,843
)
(35,375
)
(33,266
)
Net income (loss) available
(attributable) to RenaissanceRe common shareholders
$
448,092
$
210,917
$
(1,096,578
)
$
(73,421
)
Net income (loss) available (attributable)
to RenaissanceRe common shareholders per common share – basic
$
10.30
$
4.65
$
(25.50
)
$
(1.57
)
Net income (loss) available (attributable)
to RenaissanceRe common shareholders per common share – diluted
$
10.27
$
4.65
$
(25.50
)
$
(1.57
)
Operating (loss) income (attributable)
available to RenaissanceRe common shareholders per common share -
diluted (1)
$
7.33
$
4.71
$
7.30
$
1.72
Average shares outstanding - basic
42,795
44,722
43,040
47,171
Average shares outstanding - diluted
42,914
44,748
43,040
47,171
Net claims and claim expense ratio
50.7
%
51.5
%
68.5
%
74.6
%
Underwriting expense ratio
29.8
%
27.9
%
29.2
%
27.5
%
Combined ratio
80.5
%
79.4
%
97.7
%
102.1
%
Return on average common equity -
annualized
41.2
%
14.2
%
(22.0
)%
(1.1
)%
Operating return on average common equity
- annualized (1)
29.6
%
14.4
%
6.3
%
1.3
%
(1)
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)
December 31,
2022
December 31,
2021
Assets
(Unaudited)
(Audited)
Fixed maturity investments trading, at
fair value
$
14,351,402
$
13,507,131
Short term investments, at fair value
4,669,272
5,298,385
Equity investments, at fair value
625,058
546,016
Other investments, at fair value
2,494,954
1,993,059
Investments in other ventures, under
equity method
79,750
98,068
Total investments
22,220,436
21,442,659
Cash and cash equivalents
1,194,339
1,859,019
Premiums receivable
5,139,471
3,781,542
Prepaid reinsurance premiums
1,021,412
854,722
Reinsurance recoverable
4,710,925
4,268,669
Accrued investment income
121,501
55,740
Deferred acquisition costs
1,171,738
849,160
Receivable for investments sold
350,526
380,442
Other assets
384,702
224,053
Goodwill and other intangible assets
237,828
243,496
Total assets
$
36,552,878
$
33,959,502
Liabilities, Noncontrolling Interests
and Shareholders’ Equity
Liabilities
Reserve for claims and claim expenses
$
15,892,573
$
13,294,630
Unearned premiums
4,559,107
3,531,213
Debt
1,170,442
1,168,353
Reinsurance balances payable
3,928,281
3,860,963
Payable for investments purchased
493,776
1,170,568
Other liabilities
648,036
755,441
Total liabilities
26,692,215
23,781,168
Redeemable noncontrolling interests
4,535,389
3,554,053
Shareholders’ Equity
Preference shares
750,000
750,000
Common shares
43,718
44,445
Additional paid-in capital
475,647
608,121
Accumulated other comprehensive income
(loss)
(15,462
)
(10,909
)
Retained earnings
4,071,371
5,232,624
Total shareholders’ equity attributable
to RenaissanceRe
5,325,274
6,624,281
Total liabilities, noncontrolling
interests and shareholders’ equity
$
36,552,878
$
33,959,502
Book value per common share
$
104.65
$
132.17
RenaissanceRe Holdings
Ltd.
Supplemental Financial Data -
Segment Information
(in thousands of United States
Dollars, except percentages)
(Unaudited)
Three months ended December
31, 2022
Property
Casualty and Specialty
Other
Total
Gross premiums written
$
372,082
$
1,213,194
$
—
$
1,585,276
Net premiums written
$
372,998
$
972,618
$
—
$
1,345,616
Net premiums earned
$
688,238
$
935,922
$
—
$
1,624,160
Net claims and claim expenses incurred
240,503
582,434
—
822,937
Acquisition expenses
140,872
272,345
—
413,217
Operational expenses
49,638
22,066
—
71,704
Underwriting income (loss)
$
257,225
$
59,077
$
—
316,302
Net investment income
211,237
211,237
Net foreign exchange gains (losses)
10,781
10,781
Equity in earnings of other ventures
8,517
8,517
Other income (loss)
7,686
7,686
Net realized and unrealized gains (losses)
on investments
168,139
168,139
Corporate expenses
(11,537
)
(11,537
)
Interest expense
(12,384
)
(12,384
)
Income (loss) before taxes and redeemable
noncontrolling interests
698,741
Income tax benefit (expense)
(5,408
)
(5,408
)
Net (income) loss attributable to
redeemable noncontrolling interests
(236,397
)
(236,397
)
Dividends on preference shares
(8,844
)
(8,844
)
Net income (loss) available (attributable)
to RenaissanceRe common shareholders
$
448,092
Net claims and claim expenses incurred –
current accident year
$
370,175
$
607,648
$
—
$
977,823
Net claims and claim expenses incurred –
prior accident years
(129,672
)
(25,214
)
—
(154,886
)
Net claims and claim expenses incurred –
total
$
240,503
$
582,434
$
—
$
822,937
Net claims and claim expense ratio –
current accident year
53.8
%
64.9
%
60.2
%
Net claims and claim expense ratio – prior
accident years
(18.9
)%
(2.7
)%
(9.5
)%
Net claims and claim expense ratio –
calendar year
34.9
%
62.2
%
50.7
%
Underwriting expense ratio
27.7
%
31.5
%
29.8
%
Combined ratio
62.6
%
93.7
%
80.5
%
Three months ended December
31, 2021
Property
Casualty and Specialty
Other
Total
Gross premiums written
$
384,657
$
928,361
$
—
$
1,313,018
Net premiums written
$
375,112
$
741,448
$
—
$
1,116,560
Net premiums earned
$
626,359
$
714,931
$
—
$
1,341,290
Net claims and claim expenses incurred
243,356
447,614
—
690,970
Acquisition expenses
131,007
202,979
—
333,986
Operational expenses
28,898
10,775
—
39,673
Underwriting income (loss)
$
223,098
$
53,563
$
—
276,661
Net investment income
80,483
80,483
Net foreign exchange gains (losses)
(16,697
)
(16,697
)
Equity in earnings of other ventures
3,830
3,830
Other income (loss)
6,431
6,431
Net realized and unrealized gains (losses)
on investments
(21,518
)
(21,518
)
Corporate expenses
(10,426
)
(10,426
)
Interest expense
(11,872
)
(11,872
)
Income (loss) before taxes and redeemable
noncontrolling interests
306,892
Income tax benefit (expense)
(18,616
)
(18,616
)
Net (income) loss attributable to
redeemable noncontrolling interests
(68,516
)
(68,516
)
Dividends on preference shares
(8,843
)
(8,843
)
Net income (loss) available (attributable)
to RenaissanceRe common shareholders
$
210,917
Net claims and claim expenses incurred –
current accident year
$
274,649
$
457,080
$
—
$
731,729
Net claims and claim expenses incurred –
prior accident years
(31,293
)
(9,466
)
—
(40,759
)
Net claims and claim expenses incurred –
total
$
243,356
$
447,614
$
—
$
690,970
Net claims and claim expense ratio –
current accident year
43.8
%
63.9
%
54.6
%
Net claims and claim expense ratio – prior
accident years
(4.9
)%
(1.3
)%
(3.1
)%
Net claims and claim expense ratio –
calendar year
38.9
%
62.6
%
51.5
%
Underwriting expense ratio
25.5
%
29.9
%
27.9
%
Combined ratio
64.4
%
92.5
%
79.4
%
RenaissanceRe Holdings
Ltd.
Supplemental Financial Data -
Segment Information
(in thousands of United States
Dollars, except percentages)
(Unaudited)
Year ended December 31,
2022
Property
Casualty and Specialty
Other
Total
Gross premiums written
$
3,734,241
$
5,479,299
$
—
$
9,213,540
Net premiums written
$
2,847,659
$
4,348,501
$
—
$
7,196,160
Net premiums earned
$
2,770,227
$
3,563,762
$
—
$
6,333,989
Net claims and claim expenses incurred
2,044,771
2,294,069
—
4,338,840
Acquisition expenses
547,210
1,021,396
—
1,568,606
Operational expenses
194,355
82,336
—
276,691
Underwriting income (loss)
$
(16,109
)
$
165,961
$
—
149,852
Net investment income
559,932
559,932
Net foreign exchange gain (loss)
(56,909
)
(56,909
)
Equity in earnings of other ventures
11,249
11,249
Other income (loss)
12,636
12,636
Net realized and unrealized gain (loss) on
investments
(1,800,485
)
(1,800,485
)
Corporate expenses
(46,775
)
(46,775
)
Interest expense
(48,335
)
(48,335
)
Income (loss) before taxes and redeemable
noncontrolling interests
(1,218,835
)
Income tax benefit (expense)
59,019
59,019
Net (income) loss attributable to
redeemable noncontrolling interests
98,613
98,613
Dividends on preference shares
(35,375
)
(35,375
)
Net income (loss) available (attributable)
to RenaissanceRe common shareholders
$
(1,096,578
)
Net claims and claim expenses incurred –
current accident year
$
2,250,512
$
2,335,910
$
—
$
4,586,422
Net claims and claim expenses incurred –
prior accident years
(205,741
)
(41,841
)
—
(247,582
)
Net claims and claim expenses incurred –
total
$
2,044,771
$
2,294,069
$
—
$
4,338,840
Net claims and claim expense ratio –
current accident year
81.2
%
65.5
%
72.4
%
Net claims and claim expense ratio – prior
accident years
(7.4
)%
(1.1
)%
(3.9
)%
Net claims and claim expense ratio –
calendar year
73.8
%
64.4
%
68.5
%
Underwriting expense ratio
26.8
%
30.9
%
29.2
%
Combined ratio
100.6
%
95.3
%
97.7
%
Year ended December 31,
2021
Property
Casualty and Specialty
Other
Total
Gross premiums written
$
3,958,724
$
3,875,074
$
—
$
7,833,798
Net premiums written
$
2,868,002
$
3,071,373
$
—
$
5,939,375
Net premiums earned
$
2,608,298
$
2,585,883
$
—
$
5,194,181
Net claims and claim expenses incurred
2,163,016
1,713,071
—
3,876,087
Acquisition expenses
487,178
727,680
—
1,214,858
Operational expenses
143,608
68,576
—
212,184
Underwriting income (loss)
$
(185,504
)
$
76,556
$
—
(108,948
)
Net investment income
319,479
319,479
Net foreign exchange gain (loss)
(41,006
)
(41,006
)
Equity in earnings of other ventures
12,309
12,309
Other income (loss)
10,880
10,880
Net realized and unrealized gain (loss) on
investments
(218,134
)
(218,134
)
Corporate expenses
(41,152
)
(41,152
)
Interest expense
(47,536
)
(47,536
)
Income (loss) before taxes and redeemable
noncontrolling interests
(114,108
)
Income tax benefit (expense)
10,668
10,668
Net (income) loss attributable to
redeemable noncontrolling interests
63,285
63,285
Dividends on preference shares
(33,266
)
(33,266
)
Net income (loss) available (attributable)
to RenaissanceRe common shareholders
$
(73,421
)
Net claims and claim expenses incurred –
current accident year
$
2,396,389
$
1,729,168
$
—
$
4,125,557
Net claims and claim expenses incurred –
prior accident years
(233,373
)
(16,097
)
—
(249,470
)
Net claims and claim expenses incurred –
total
$
2,163,016
$
1,713,071
$
—
$
3,876,087
Net claims and claim expense ratio –
current accident year
91.9
%
66.9
%
79.4
%
Net claims and claim expense ratio – prior
accident years
(9.0
)%
(0.7
)%
(4.8
)%
Net claims and claim expense ratio –
calendar year
82.9
%
66.2
%
74.6
%
Underwriting expense ratio
24.2
%
30.8
%
27.5
%
Combined ratio
107.1
%
97.0
%
102.1
%
RenaissanceRe Holdings
Ltd.
Supplemental Financial Data -
Gross Premiums Written
(in thousands of United States
Dollars)
(Unaudited)
Three months ended
Twelve months ended
December 31,
2022
December 31,
2021
December 31,
2022
December 31,
2021
Property Segment
Catastrophe
$
(4,019
)
$
7,795
$
2,076,752
$
2,235,736
Other property
376,101
376,862
1,657,489
1,722,988
Property segment gross premiums
written
$
372,082
$
384,657
$
3,734,241
$
3,958,724
Casualty and Specialty Segment
General casualty (1)
$
359,901
$
281,926
$
1,560,594
$
1,258,536
Professional liability (2)
349,925
333,257
1,728,570
1,283,864
Credit (3)
217,736
139,799
1,062,183
498,946
Other specialty (4)
285,632
173,379
1,127,952
833,728
Casualty and Specialty segment gross
premiums written
$
1,213,194
$
928,361
$
5,479,299
$
3,875,074
(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
Twelve months ended
December 31,
2022
December 31,
2021
December 31,
2022
December 31,
2021
Fixed maturity investments trading
$
136,019
$
55,643
$
382,165
$
234,911
Short term investments
23,908
464
41,042
2,333
Equity investments
7,474
4,077
20,864
9,017
Other investments
Catastrophe bonds
31,441
16,527
94,784
64,860
Other
13,793
8,100
37,497
28,811
Cash and cash equivalents
3,947
74
5,197
297
216,582
84,885
581,549
340,229
Investment expenses
(5,345
)
(4,402
)
(21,617
)
(20,750
)
Net investment income
211,237
80,483
559,932
319,479
Net investment income return -
annualized
4.1
%
1.5
%
2.7
%
1.5
%
Net realized gains (losses) on fixed
maturity investments trading
(110,762
)
(1,472
)
(732,561
)
79,588
Net unrealized gains (losses) on fixed
maturity investments trading
187,900
(99,504
)
(636,762
)
(389,376
)
Net realized and unrealized gains (losses)
on investments-related derivatives
(3,347
)
(15,713
)
(165,293
)
(12,237
)
Net realized gains (losses) on equity
investments
4,397
79,589
43,035
335,491
Net unrealized gains (losses) on equity
investments
55,251
(5,944
)
(166,823
)
(285,882
)
Other investments
Net realized and unrealized gains (losses)
on other investments - catastrophe bonds
29,578
(9,958
)
(130,335
)
(35,033
)
Net realized and unrealized gains (losses)
on other investments - other
5,122
31,484
(11,746
)
89,315
Net realized and unrealized gains
(losses) on investments
168,139
(21,518
)
(1,800,485
)
(218,134
)
Total investment result
$
379,376
$
58,965
$
(1,240,553
)
$
101,345
Total investment return -
annualized
7.4
%
1.1
%
(5.7
)%
0.5
%
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
Twelve months ended
(in thousands of United States Dollars,
except per share amounts and percentages)
December 31,
2022
December 31,
2021
December 31,
2022
December 31,
2021
Net income (loss) available (attributable)
to RenaissanceRe common shareholders
$
448,092
$
210,917
$
(1,096,578
)
$
(73,421
)
Adjustment for net realized and unrealized
losses (gains) on investments, excluding other investments -
catastrophe bonds
(138,561
)
11,560
1,670,150
183,101
Adjustment for net foreign exchange losses
(gains)
(10,781
)
16,697
56,909
41,006
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)
(5,818
)
(3,628
)
(83,149
)
(11,521
)
Adjustment for net income (loss)
attributable to redeemable noncontrolling interests (2)
29,221
(21,854
)
(231,776
)
(57,701
)
Operating income (loss) available
(attributable) to RenaissanceRe common shareholders
$
322,153
$
213,692
$
315,556
$
81,599
Net income (loss) available (attributable)
to RenaissanceRe common shareholders per common share - diluted
$
10.27
$
4.65
$
(25.50
)
$
(1.57
)
Adjustment for net realized and unrealized
losses (gains) on investments, excluding other investments -
catastrophe bonds
(3.23
)
0.26
38.80
3.88
Adjustment for net foreign exchange losses
(gains)
(0.25
)
0.37
1.32
0.87
Adjustment for corporate expenses
associated with the acquisition of TMR and the subsequent sale of
RenaissanceRe UK
—
—
—
—
Adjustment for income tax expense
(benefit) (1)
(0.14
)
(0.08
)
(1.93
)
(0.24
)
Adjustment for net income (loss)
attributable to redeemable noncontrolling interests (2)
0.68
(0.49
)
(5.39
)
(1.22
)
Operating income (loss) available
(attributable) to RenaissanceRe common shareholders per common
share - diluted
$
7.33
$
4.71
$
7.30
$
1.72
Return on average common equity -
annualized
41.2
%
14.2
%
(22.0
)%
(1.1
)%
Adjustment for net realized and unrealized
losses (gains) on investments, excluding other investments -
catastrophe bonds
(12.8
)%
0.8
%
33.5
%
2.9
%
Adjustment for net foreign exchange losses
(gains)
(1.0
)%
1.1
%
1.1
%
0.6
%
Adjustment for corporate expenses
associated with the acquisition of TMR and the subsequent sale of
RenaissanceRe UK
—
%
—
%
—
%
—
%
Adjustment for income tax expense
(benefit) (1)
(0.5
)%
(0.2
)%
(1.7
)%
(0.2
)%
Adjustment for net income (loss)
attributable to redeemable noncontrolling interests (2)
2.7
%
(1.5
)%
(4.6
)%
(0.9
)%
Operating return on average common equity
- annualized
29.6
%
14.4
%
6.3
%
1.3
%
(1)
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.
(2)
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.”
December 31,
2022
September 30,
2022
June 30, 2022
March 31, 2022
December 31,
2021
Book value per common share
$
104.65
$
94.55
$
113.69
$
121.44
$
132.17
Adjustment for goodwill and other
intangibles (1)
(5.84
)
(5.89
)
(5.90
)
(5.89
)
(5.90
)
Tangible book value per common share
98.81
88.66
107.79
115.55
126.27
Adjustment for accumulated dividends
25.00
24.63
24.26
23.89
23.52
Tangible book value per common share plus
accumulated dividends
$
123.81
$
113.29
$
132.05
$
139.44
$
149.79
Quarterly change in book value per common
share
10.7
%
(16.8
)%
(6.4
)%
(8.1
)%
2.5
%
Quarterly change in tangible book value
per common share plus change in accumulated dividends
11.9
%
(17.4
)%
(6.4
)%
(8.2
)%
2.8
%
Year to date change in book value per
common share
(20.8
)%
(28.5
)%
(14.0
)%
(8.1
)%
(4.5
)%
Year to date change in tangible book value
per common share plus change in accumulated dividends
(20.6
)%
(28.9
)%
(14.0
)%
(8.2
)%
(4.0
)%
(1)
At December 31, 2022, September 30, 2022,
June 30, 2022, March 31, 2022, and December 31, 2021, the
adjustment for goodwill and other intangibles included $17.8
million, $18.0 million, $18.3 million, $18.4 million, and $18.6
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/20230131005931/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
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