RenaissanceRe Reports Q1 2023 Net Income Available to Common Shareholders of $564.1 Million; Operating Income Available to Common Shareholders of $360.0 Million.

46.6% annualized return on average common equity and 29.7% annualized operating return on average common equity.
Strong performance across both segments; Property combined ratio of 56.6% and Casualty and Specialty combined ratio of 92.9%.
Property catastrophe net premiums written grew by $214.7 million or 35.7%. Growth driven by significant rate increases, partially offset by a reduction in net reinstatement premiums of $44.8 million.
Fee income of $44.8 million; raised $621.2 million of third-party capital, primarily in DaVinci and Medici. Subsequent to March 31, 2023, Medici surpassed $1.5 billion in net assets.
Net investment income of $254.4 million in Q1 2023, 203.9% growth compared to Q1 2022.
Shareholders’ equity attributable to RenaissanceRe grew by $540.3 million since December 31, 2022.

RenaissanceRe Holdings Ltd. (NYSE: RNR) (“RenaissanceRe” or the “Company”) today announced its financial results for the first quarter of 2023.

Net Income Available to Common Shareholders per Diluted Common Share: $12.91 Operating Income Available to Common Shareholders per Diluted Common Share*: $8.16

Underwriting Income $369.6M

Fee Income $44.8M

Net Investment Income $254.4M

Change in Book Value per Common Share: 11.3% Change in Tangible Book Value per Common Share Plus Change in Accum. Dividends*: 12.4%

* 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, “We began the year with an excellent quarter, reporting an operating return on average common equity of 29.7% driven by strong underwriting results, growing Capital Partners fees, and increased net investment income.

Looking forward, we expect these Three Drivers of Profit to continue to improve, driven by ongoing strong demand for our products, increased fees from our Capital Partners business and a favorable investment environment. We are confident that the attractive reinsurance market will persist, providing us with many opportunities to deploy additional capital as the year progresses.”

Consolidated Financial Results

Consolidated Highlights

Three months ended March 31,

(in thousands, except per share amounts and percentages)

2023

2022

Gross premiums written

2,790,261

2,942,964

Net premiums written

2,263,703

2,165,217

Underwriting income (loss)

369,619

200,278

Combined ratio

78.0

86.5

Net Income (Loss)

Available (attributable) to common shareholders

564,062

(394,413

)

Available (attributable) to common shareholders per diluted common share

12.91

(9.10

)

Operating Income (Loss) (1)

Available (attributable) to common shareholders

360,008

151,945

Available (attributable) to common shareholders per diluted common share

8.16

3.50

Book value per common share

116.44

121.44

Change in book value per share

11.3

(8.1

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

136.04

139.44

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

12.4

(8.2

Return on average common equity - annualized

46.6

(28.1

Operating return on average common equity - annualized (1)

29.7

10.8

(1)

See “Comments on Regulation G” for a reconciliation of non-GAAP financial measures.

Net negative impact of the Q1 2023 Large Loss Events

Net negative impact on underwriting result includes the sum of (1) net claims and claim expenses incurred, (2) assumed and ceded reinstatement premiums earned and (3) earned and lost profit commissions. Net negative impact on net income (loss) available (attributable) to RenaissanceRe common shareholders is the sum of (1) net negative impact on underwriting result and (2) redeemable noncontrolling interest, both before consideration of any related income tax benefit (expense).

The Company’s estimates of net negative impact are based on a review of the Company’s potential exposures, preliminary discussions with certain counterparties and actuarial modeling techniques. The Company’s actual net negative impact, both individually and in the aggregate, may vary from these estimates, perhaps materially. Changes in these estimates will be recorded in the period in which they occur.

Meaningful uncertainty remains regarding the estimates and the nature and extent of the losses from these catastrophe events, driven by the magnitude and recent nature of 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

Three months ended March 31, 2023

Q1 2023 Large Loss Events (1)

(in thousands)

Net claims and claims expenses incurred

(81,478

)

Assumed reinstatement premiums earned

3,124

Ceded reinstatement premiums earned

—

Earned (lost) profit commissions

(701

)

Net negative impact on underwriting result

(79,055

)

Redeemable noncontrolling interest

25,517

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

(53,538

)

Net negative impact on the segment underwriting results and consolidated combined ratio

Three months ended March 31, 2023

Q1 2023 Large Loss Events (1)

(in thousands, except percentages)

Net negative impact on Property segment underwriting result

(79,055

)

Net negative impact on Casualty and Specialty segment underwriting result

—

Net negative impact on underwriting result

(79,055

)

Percentage point impact on consolidated combined ratio

4.7

(1)

“Q1 2023 Large Loss Events” includes the earthquakes which impacted southern and central Turkey in February 2023, Cyclone Gabrielle which impacted northern New Zealand, the flooding that impacted northern New Zealand in January and February 2023, and various wind and thunderstorm events which impacted states in both the Southern and Midwest U.S. during March 2023.

Three Drivers of Profit: Underwriting, Fee and Investment Income

Underwriting Results - Property Segment: Combined ratio of 56.6%; Increase in property catastrophe net premiums written of 35.7%

Property Segment

Three months ended March 31,

Q/Q Change

(in thousands, except percentages)

2023

2022

Gross premiums written

1,304,199

1,343,508

(2.9

Net premiums written

1,019,829

890,166

14.6

Underwriting income (loss)

298,679

184,802

Underwriting Ratios

Net claims and claim expense ratio - current accident year

39.2

44.7

(5.5) pts

Net claims and claim expense ratio - prior accident years

(11.9

(2.7

(9.2) pts

Net claims and claim expense ratio - calendar year

27.3

42.0

(14.7) pts

Underwriting expense ratio

29.3

28.1

1.2 pts

Combined ratio

56.6

70.1

(13.5) pts

Gross premiums written decreased by $39.3 million, or 2.9%, driven by:
- $81.8 million decrease in the other property class of business, primarily due to the non-renewal of certain catastrophe exposed quota share programs that did not meet the Company’s return hurdles, partially offset by;
- $42.5 million increase in the property catastrophe class of business, principally driven by rate improvements on deals written in the first quarter of 2023; which were partially offset by a reduction of $149.6 million of premiums written by Upsilon, as well as a reduction in gross reinstatement premiums of $49.5 million, compared to the first quarter of 2022.
Net premiums written increased by $129.7 million, or 14.6%, driven by:
- $214.7 million increase in the property catastrophe class of business, driven by rate improvements and lower ceded premiums written, partially offset by a reduction in net reinstatement premiums of $44.8 million compared to the first quarter of 2022. This was partially offset by;
- $85.0 million decrease in the other property class of business.
Net claims and claim expense ratio - current accident year decreased 5.5 percentage points, primarily as a result of a lower impact from large loss events in the current quarter, compared to the first quarter of 2022.
- Q1 2023 Large Loss Events contributed 11.7 percentage points to the current accident year net claims and claim expense ratio, compared to the weather-related large losses in the first quarter of 2022, which contributed 17.8 percentage points.
Net claims and claim expense ratio - prior accident years reflects net favorable development, primarily from weather-related large losses in the 2017 through 2021 accident years, driven by better than expected loss emergence.
Underwriting expense ratio increased 1.2 percentage points, largely driven by the reduction in reinstatement premiums discussed above.

Underwriting Results - Casualty and Specialty Segment: Combined ratio of 92.9% and underwriting income of $70.9 million

Casualty and Specialty Segment

Three months ended March 31,

Q/Q Change

(in thousands, except percentages)

2023

2022

Gross premiums written

1,486,062

1,599,456

(7.1

Net premiums written

1,243,874

1,275,051

(2.4

Underwriting income (loss)

70,940

15,476

Underwriting Ratios

Net claims and claim expense ratio - current accident year

64.1

67.2

(3.1) pts

Net claims and claim expense ratio - prior accident years

(2.3

(0.1

(2.2) pts

Net claims and claim expense ratio - calendar year

61.8

67.1

(5.3) pts

Underwriting expense ratio

31.1

— pts

Combined ratio

92.9

98.2

(5.3) pts

Gross premiums written decreased 7.1% reflecting decreases in casualty classes of business, principally in professional liability, and partially offset by growth in the other specialty class of business.
Net premiums written decreased 2.4% as the impact from decreases in gross premiums written was partially offset by a reduction in ceded premiums written.
Net claims and claim expense ratio - current accident year decreased by 3.1 percentage points as compared to the first quarter of 2022, due to the impact of the Russia-Ukraine War in 2022, which contributed 3.1 percentage points in the first quarter of 2022.
Net claims and claim expense ratio - prior accident years reflects higher favorable prior accident year loss development of 2.2 percentage points, driven by favorable experience in other specialty and credit classes of business.

Fee Income: $44.8 million of fee income, up 58% from Q1 2022; increase in both management and performance fees.

Fee Income

Three months ended March 31,

Q/Q Change

(in thousands, except percentages)

2023

2022

Total management fee income

40,905

27,222

13,683

Total performance fee income (loss) (1)

3,867

1,127

2,740

Total fee income

44,772

28,349

16,423

(1)

Performance fees are based on the performance of the individual vehicles or products, and may be negative in a particular period if, for example, large losses occur, which can potentially result in no performance fees or the reversal of previously accrued performance fees.

Management fee income increased $13.7 million, 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, as well as the recording of previously deferred management fees in DaVinci as a result of the weather-related large losses experienced in the prior years.
Performance fee income increased $2.7 million, driven by favorable development on prior years’ events primarily in DaVinci and certain of our structured reinsurance products.

Investment Results: Total investment result improved $1.1 billion; 203.9% growth in net investment income

Investment Results

Three months ended March 31,

Q/Q Change

(in thousands, except percentages)

2023

2022

Net investment income

254,378

83,691

170,687

Net realized and unrealized gains (losses) on investments

279,451

(673,017

)

952,468

Total investment result

533,829

(589,326

)

1,123,155

Total investment return - annualized

10.0

(10.2

20.2 pts

Net investment income increased $170.7 million, primarily driven by higher yielding assets in the fixed maturity and short term portfolios as a result of our reinvestment of the portfolio during the rising interest rate environment throughout 2022.
Net realized and unrealized gains on investments increased $952.5 million, principally driven by:
- Net realized and unrealized gains on fixed maturity investments trading of $207.3 million, which includes net unrealized gains of $312.0 million, reflecting the impact of decreasing interest rates on U.S. treasuries in the first quarter of 2023. This compares to net realized and unrealized losses of $585.3 million in the first quarter of 2022 resulting from increases in interest rates.
- Equity investments contributed net realized and unrealized gains of $30.4 million, compared to net realized and unrealized losses of $48.7 million in the first quarter of 2022. Both the current and comparative quarter equity investment results were in line with wider equity market movements.
Total investments were $23.2 billion at March 31, 2023 (December 31, 2022 - $22.2 billion). Weighted average yield to maturity and duration on the Company’s investment portfolio (excluding investments that have no final maturity, yield to maturity or duration) was 5.7% and 2.4 years (December 31, 2022 - 5.7% and 2.5 years, respectively).

Other Items of Note

Net income attributable to redeemable noncontrolling interests of $267.4 million was primarily driven by:
- Strong underwriting results for DaVinci and Vermeer;
- Strong net investment income driven by 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 in the Company’s joint ventures and managed funds.
Raised third-party capital of $621.2 million in the first quarter of 2023, comprised of $377.2 million in DaVinci and $244.0 million in Medici. Subsequent to March 31, 2023, raised an additional $145.9 million in Medici.
Redemptions of third-party capital of $207.3 million during the first quarter of 2023, of which $139.4 million was from Upsilon, reducing the size of Upsilon as a result of the release of collateral associated with prior years’ contracts.
Income tax expense of $28.9 million compared to a benefit of $36.7 million in the first quarter of 2022. The increase in income tax expense was primarily driven by investment gains and an increase in operating income in the Company’s U.S.-based operations compared to investment losses and lower operating income in the first quarter of 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, May 3, 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. We may also make forward-looking statements with respect to our business and industry, such as those relating to our strategy and management objectives, plans and expectations regarding our response and ability to adapt to changing economic conditions, market standing and product volumes, and insured losses from loss events, among other things. These statements are subject to numerous factors that could cause actual results to differ materially from those addressed by such forward-looking statements, including the following: the Company’s exposure to natural and non-natural catastrophic events and circumstances and the variance it may cause in the Company’s financial results; the effect of climate change on the Company’s business, including the trend towards increasingly frequent and severe climate events; the effectiveness of the Company’s claims and claim expense reserving process; the effect of emerging claims and coverage issues; the performance of the Company’s investment portfolio and financial market volatility; the effects of inflation; the ability of the Company’s ceding companies and delegated authority counterparties to accurately assess the risks they underwrite; the Company’s ability to maintain its financial strength ratings; the 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

March 31, 2023

March 31, 2022

Revenues

Gross premiums written

2,790,261

2,942,964

Net premiums written

2,263,703

2,165,217

Decrease (increase) in unearned premiums

(583,153

)

(678,792

)

Net premiums earned

1,680,550

1,486,425

Net investment income

254,378

83,691

Net foreign exchange gains (losses)

(14,503

)

(15,486

)

Equity in earnings (losses) of other ventures

9,530

(6,390

)

Other income (loss)

(4,306

)

1,193

Net realized and unrealized gains (losses) on investments

279,451

(673,017

)

Total revenues

2,205,100

876,416

Expenses

Net claims and claim expenses incurred

801,200

841,733

Acquisition expenses

432,257

376,507

Operational expenses

77,474

67,907

Corporate expenses

12,843

12,502

Interest expense

12,134

11,955

Total expenses

1,335,908

1,310,604

Income (loss) before taxes

869,192

(434,188

)

Income tax benefit (expense)

(28,902

)

36,707

Net income (loss)

840,290

(397,481

)

Net (income) loss attributable to redeemable noncontrolling interests

(267,384

)

11,912

Net income (loss) attributable to RenaissanceRe

572,906

(385,569

)

Dividends on preference shares

(8,844

)

(8,844

)

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

564,062

(394,413

)

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

12.95

(9.10

)

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

12.91

(9.10

)

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

8.16

3.50

Average shares outstanding - basic

42,876

43,357

Average shares outstanding - diluted

43,006

43,357

Net claims and claim expense ratio

47.7

56.6

Underwriting expense ratio

30.3

29.9

Combined ratio

78.0

86.5

Return on average common equity - annualized

46.6

(28.1

Operating return on average common equity - annualized (1)

29.7

10.8

(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)

March 31, 2023

December 31, 2022

Assets

(Unaudited)

(Audited)

Fixed maturity investments trading, at fair value

14,695,585

14,351,402

Short term investments, at fair value

5,177,095

4,669,272

Equity investments, at fair value

551,394

625,058

Other investments, at fair value

2,700,655

2,494,954

Investments in other ventures, under equity method

84,731

79,750

Total investments

23,209,460

22,220,436

Cash and cash equivalents

1,063,707

1,194,339

Premiums receivable

5,933,701

5,139,471

Prepaid reinsurance premiums

1,130,831

1,021,412

Reinsurance recoverable

4,706,671

4,710,925

Accrued investment income

121,681

121,501

Deferred acquisition costs

1,242,395

1,171,738

Receivable for investments sold

267,161

350,526

Other assets

358,203

384,702

Goodwill and other intangible assets

236,517

237,828

Total assets

38,270,327

36,552,878

Liabilities, Noncontrolling Interests and Shareholders’ Equity

Liabilities

Reserve for claims and claim expenses

15,996,826

15,892,573

Unearned premiums

5,250,642

4,559,107

Debt

1,140,960

1,170,442

Reinsurance balances payable

3,989,660

3,928,281

Payable for investments purchased

389,440

493,776

Other liabilities

279,878

648,036

Total liabilities

27,047,406

26,692,215

Redeemable noncontrolling interests

5,357,386

4,535,389

Shareholders’ Equity

Preference shares

750,000

Common shares

43,932

43,718

Additional paid-in capital

467,623

475,647

Accumulated other comprehensive income (loss)

(14,838

)

(15,462

)

Retained earnings

4,618,818

4,071,371

Total shareholders’ equity attributable to RenaissanceRe

5,865,535

5,325,274

Total liabilities, noncontrolling interests and shareholders’ equity

38,270,327

36,552,878

Book value per common share

116.44

104.65

RenaissanceRe Holdings Ltd.

Supplemental Financial Data - Segment Information

(in thousands of United States Dollars, except percentages)

(Unaudited)

Three months ended March 31, 2023

Property

Casualty and Specialty

Other

Total

Gross premiums written

1,304,199

1,486,062

—

2,790,261

Net premiums written

1,019,829

1,243,874

—

2,263,703

Net premiums earned

687,420

993,130

—

1,680,550

Net claims and claim expenses incurred

187,609

613,591

—

801,200

Acquisition expenses

145,319

286,938

—

432,257

Operational expenses

55,813

21,661

—

77,474

Underwriting income (loss)

298,679

70,940

—

369,619

Net investment income

254,378

Net foreign exchange gains (losses)

(14,503

)

(14,503

)

Equity in earnings of other ventures

9,530

Other income (loss)

(4,306

)

(4,306

)

Net realized and unrealized gains (losses) on investments

279,451

Corporate expenses

(12,843

)

(12,843

)

Interest expense

(12,134

)

(12,134

)

Income (loss) before taxes and redeemable noncontrolling interests

869,192

Income tax benefit (expense)

(28,902

)

(28,902

)

Net (income) loss attributable to redeemable noncontrolling interests

(267,384

)

(267,384

)

Dividends on preference shares

(8,844

)

(8,844

)

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

564,062

Net claims and claim expenses incurred – current accident year

269,302

636,650

—

905,952

Net claims and claim expenses incurred – prior accident years

(81,693

)

(23,059

)

—

(104,752

)

Net claims and claim expenses incurred – total

187,609

613,591

—

801,200

Net claims and claim expense ratio – current accident year

39.2

64.1

53.9

Net claims and claim expense ratio – prior accident years

(11.9

(2.3

(6.2

Net claims and claim expense ratio – calendar year

27.3

61.8

47.7

Underwriting expense ratio

29.3

31.1

30.3

Combined ratio

56.6

92.9

78.0

Three months ended March 31, 2022

Property

Casualty and Specialty

Other

Total

Gross premiums written

1,343,508

1,599,456

—

2,942,964

Net premiums written

890,166

1,275,051

—

2,165,217

Net premiums earned

618,591

867,834

—

1,486,425

Net claims and claim expenses incurred

259,761

581,972

—

841,733

Acquisition expenses

127,096

249,411

—

376,507

Operational expenses

46,932

20,975

—

67,907

Underwriting income (loss)

184,802

15,476

—

200,278

Net investment income

83,691

Net foreign exchange gains (losses)

(15,486

)

(15,486

)

Equity in earnings of other ventures

(6,390

)

(6,390

)

Other income (loss)

1,193

Net realized and unrealized gains (losses) on investments

(673,017

)

(673,017

)

Corporate expenses

(12,502

)

(12,502

)

Interest expense

(11,955

)

(11,955

)

Income (loss) before taxes and redeemable noncontrolling interests

(434,188

)

Income tax benefit (expense)

36,707

Net (income) loss attributable to redeemable noncontrolling interests

11,912

Dividends on preference shares

(8,844

)

(8,844

)

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

(394,413

)

Net claims and claim expenses incurred – current accident year

276,519

583,047

—

859,566

Net claims and claim expenses incurred – prior accident years

(16,758

)

(1,075

)

—

(17,833

)

Net claims and claim expenses incurred – total

259,761

581,972

—

841,733

Net claims and claim expense ratio – current accident year

44.7

67.2

57.8

Net claims and claim expense ratio – prior accident years

(2.7

(0.1

(1.2

Net claims and claim expense ratio – calendar year

42.0

67.1

56.6

Underwriting expense ratio

28.1

31.1

29.9

Combined ratio

70.1

98.2

86.5

RenaissanceRe Holdings Ltd.

Supplemental Financial Data - Gross Premiums Written

(in thousands of United States Dollars)

(Unaudited)

Three months ended

March 31, 2023

March 31, 2022

Property Segment

Catastrophe

928,595

886,091

Other property

375,604

457,417

Property segment gross premiums written

1,304,199

1,343,508

Casualty and Specialty Segment

General casualty (1)

467,892

480,142

Professional liability (2)

382,253

549,719

Credit (3)

231,676

259,104

Other specialty (4)

404,241

310,491

Casualty and Specialty segment gross premiums written

1,486,062

1,599,456

(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

March 31, 2023

March 31, 2022

Fixed maturity investments trading

155,500

62,417

Short term investments

32,950

1,136

Equity investments

3,399

2,754

Other investments

Catastrophe bonds

38,831

17,360

Other

24,571

5,552

Cash and cash equivalents

4,264

(41

)

259,515

89,178

Investment expenses

(5,137

)

(5,487

)

Net investment income

254,378

83,691

Net investment income return - annualized

4.9

1.5

Net realized gains (losses) on fixed maturity investments trading

(104,765

)

(121,152

)

Net unrealized gains (losses) on fixed maturity investments trading

312,026

(464,177

)

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

12,162

(40,288

)

Net realized gains (losses) on equity investments

(8,738

)

(20

)

Net unrealized gains (losses) on equity investments

39,151

(48,669

)

Other investments

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

24,126

(8,261

)

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

5,489

9,550

Net realized and unrealized gains (losses) on investments

279,451

(673,017

)

Total investment result

533,829

(589,326

)

Total investment return - annualized

10.0

(10.2

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 certain of these financial measures in previous investor communications and the Company’s management believes that such measures are important to investors and other interested persons, and that investors and such other persons benefit from having a consistent basis for comparison between quarters and for comparison with other companies within or outside the industry. These measures may not, however, be comparable to similarly titled measures used by companies within or outside of the insurance industry. Investors are cautioned not to place undue reliance on these non-GAAP measures in assessing the Company’s overall financial performance.

Operating Income (Loss) Available (Attributable) to RenaissanceRe Common Shareholders and Operating Return on Average Common Equity - Annualized

The Company uses “operating income (loss) available (attributable) to RenaissanceRe common shareholders” as a measure to evaluate the underlying fundamentals of its operations and believes it to be a useful measure of its corporate performance. “Operating income (loss) available (attributable) to RenaissanceRe common shareholders” as used herein differs from “net income (loss) available (attributable) to RenaissanceRe common shareholders,” which the Company believes is the most directly comparable GAAP measure, by the exclusion of (1) net realized and unrealized gains and losses on investments, excluding other investments - catastrophe bonds, (2) net foreign exchange gains and losses, (3) the income tax expense or benefit associated with these adjustments and (4) 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 these adjustments. 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) available (attributable) to RenaissanceRe common shareholders to “operating income (loss) available (attributable) to RenaissanceRe common shareholders”; (2) net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted to “operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted”; and (3) return on average common equity - annualized to “operating return on average common equity - annualized.”

Three months ended

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

March 31, 2023

March 31, 2022

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

564,062

(394,413

)

Adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds

(255,325

)

664,756

Adjustment for net foreign exchange losses (gains)

14,503

15,486

Adjustment for income tax expense (benefit) (1)

11,322

(41,874

)

Adjustment for net income (loss) attributable to redeemable noncontrolling interests (2)

25,446

(92,010

)

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

360,008

151,945

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

12.91

(9.10

)

Adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds

(5.94

)

15.33

Adjustment for net foreign exchange losses (gains)

0.34

0.36

Adjustment for income tax expense (benefit) (1)

0.26

(0.97

)

Adjustment for net income (loss) attributable to redeemable noncontrolling interests (2)

0.59

(2.12

)

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

8.16

3.50

Return on average common equity - annualized

46.6

(28.1

Adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds

(21.1

47.3

Adjustment for net foreign exchange losses (gains)

1.2

1.1

Adjustment for income tax expense (benefit) (1)

0.9

(3.0

Adjustment for net income (loss) attributable to redeemable noncontrolling interests (2)

2.1

(6.5

Operating return on average common equity - annualized

29.7

10.8

(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.”

March 31, 2023

December 31, 2022

September 30, 2022

June 30, 2022

March 31, 2022

Book value per common share

116.44

104.65

94.55

113.69

121.44

Adjustment for goodwill and other intangibles (1)

(5.78

)

(5.84

)

(5.89

)

(5.90

)

(5.89

)

Tangible book value per common share

110.66

98.81

88.66

107.79

115.55

Adjustment for accumulated dividends

25.38

25.00

24.63

24.26

23.89

Tangible book value per common share plus accumulated dividends

136.04

123.81

113.29

132.05

139.44

Quarterly change in book value per common share

11.3

10.7

(16.8

(6.4

(8.1

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

12.4

11.9

(17.4

(6.4

(8.2

Year to date change in book value per common share

11.3

(20.8

(28.5

(14.0

(8.1

Year to date change in tangible book value per common share plus change in accumulated dividends

12.4

(20.6

(28.9

(14.0

(8.2

(1)

At March 31, 2023, December 31, 2022, September 30, 2022, June 30, 2022, and March 31, 2022, the adjustment for goodwill and other intangibles included $17.5 million, $17.8 million, $18.0 million, $18.3 million, and $18.4 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/20230502006014/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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