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RenaissanceRe Reports Q2 2023 Net Income Available to Common Shareholders of $191.0 Million; Operating Income Available to Common Shareholders of $407.4 Million

  • 13.5% annualized return on average common equity and 28.8% annualized operating return on average common equity.
  • Third consecutive quarter with annualized operating return on average common equity exceeding 28%, driven by continued positive momentum across the three drivers of profit.
  • Strong performance across both segments; Property combined ratio of 63.0% and Casualty and Specialty combined ratio of 93.2%; overall combined ratio of 80.3%.
  • Property catastrophe net premiums written grew by $273.4 million or 54.9%, driven by significant rate increases.
  • Fee income of $56.7 million; 65.5% growth compared to Q2 2022.
  • Net investment income of $292.7 million; 173.0% growth compared to Q2 2022.
  • Announced agreement to acquire Validus Re from American International Group, Inc. in $2.985 billion transaction.
  • Raised approximately $2.09 billion in net proceeds through the issuance of 7.245 million common shares at $192.00 per share and $750.0 million principal amount of 5.750% Senior Notes due 2033, in accordance with our financing plan for the Validus Acquisition.

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

Net Income Available to Common Shareholders per Diluted Common Share: $4.09

Operating Income Available to Common Shareholders per Diluted Common Share*: $8.79

Underwriting Income

$351.0M

Fee Income

$56.7M

Net Investment Income

$292.7M

Change in Book Value per Common Share: 11.6%

Change in Tangible Book Value per Common Share Plus Change in Accum. Dividends*: 13.3%

*

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 Non-GAAP Financial Measures” for a reconciliation of non-GAAP financial measures.

Kevin J. O’Donnell, President and Chief Executive Officer, said, “RenaissanceRe delivered a strong quarter, distinguished by a 28.8% operating return on average common equity with robust underwriting income and record fee and net investment income. In addition, we accelerated our strategy by agreeing to purchase Validus Re, which brings us a large, diversified business in a favorable reinsurance market. In aggregate, our accomplishments this quarter demonstrate the effectiveness of our strategy and strengthen our foundation for delivery of shareholder value.”

Consolidated Financial Results

 

 

Consolidated Highlights

 

 

 

 

 

Three months ended

June 30,

 

(in thousands, except per share amounts and percentages)

2023

 

2022

 

Gross premiums written

$

2,651,621

 

 

$

2,464,639

 

 

Net premiums written

 

2,195,803

 

 

 

1,863,616

 

 

Underwriting income (loss)

 

351,015

 

 

 

316,386

 

 

Combined ratio

 

80.3

%

 

 

78.3

%

 

 

 

 

 

 

Net Income (Loss)

 

 

 

 

Available (attributable) to common shareholders

 

191,025

 

 

 

(324,913

)

 

Available (attributable) to common shareholders per diluted common share

$

4.09

 

 

$

(7.53

)

 

Operating Income (Loss) (1)

 

 

 

 

Available (attributable) to common shareholders

 

407,435

 

 

 

238,132

 

 

Available (attributable) to common shareholders per diluted common share

$

8.79

 

 

$

5.51

 

 

Book value per common share

$

129.98

 

 

$

113.69

 

 

Change in book value per share

 

11.6

%

 

 

(6.4

)%

 

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

$

150.79

 

 

$

132.05

 

 

 

 

 

 

 

Change in book value per common share plus change in accumulated dividends

 

12.0

%

 

 

(6.1

)%

 

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

 

13.3

%

 

 

(6.4

)%

 

Return on average common equity - annualized

 

13.5

%

 

 

(25.1

)%

 

Operating return on average common equity - annualized (1)

 

28.8

%

 

 

18.4

%

(1)

See “Comments on Non-GAAP Financial Measures” for a reconciliation of non-GAAP financial measures.

Net negative impact of the 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 June 30, 2023

 

2023 Large

Loss Events (1)

 

 

(in thousands)

 

 

 

 

Net claims and claims expenses incurred

 

$

(95,278

)

 

 

Assumed reinstatement premiums earned

 

 

26,752

 

 

 

Ceded reinstatement premiums earned

 

 

 

 

 

Earned (lost) profit commissions

 

 

 

 

 

Net negative impact on underwriting result

 

 

(68,526

)

 

 

Redeemable noncontrolling interest

 

 

23,949

 

 

 

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

 

$

(44,577

)

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Three months ended June 30, 2023

 

2023 Large

Loss Events (1)

 

 

(in thousands, except percentages)

 

 

 

 

Net negative impact on Property segment underwriting result

 

$

(68,526

)

 

 

Net negative impact on Casualty and Specialty segment underwriting result

 

 

 

 

 

Net negative impact on underwriting result

 

$

(68,526

)

 

 

Percentage point impact on consolidated combined ratio

 

 

4.2

 

 

 

 

 

 

 

(1)

“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 (“Q1 2023 Large Loss Events”), and a series of large, severe weather events that impacted Texas and other southern and central U.S. states in June 2023. Net negative impact for the three months ended June 30, 2023 includes an increase of approximately $20.0 million in the net negative impact of the Q1 2023 Large Loss Events during the second quarter.

Three Drivers of Profit: Underwriting, Fee and Investment Income
 

Underwriting Results - Property Segment: Combined ratio of 63.0%; Increase in property catastrophe net premiums written of 54.9%

 

 

Property Segment

 

 

 

 

 

 

 

Three months ended

June 30,

 

Q/Q

Change

 

(in thousands, except percentages)

2023

 

2022

 

 

Gross premiums written

$

1,402,606

 

 

$

1,218,321

 

 

15.1

%

 

Net premiums written

 

1,144,655

 

 

 

887,975

 

 

28.9

%

 

Underwriting income (loss)

 

281,010

 

 

 

264,463

 

 

 

 

 

 

 

 

 

 

 

Underwriting Ratios

 

 

 

 

 

 

Net claims and claim expense ratio - current accident year

 

41.3

%

 

 

33.2

%

 

8.1

pts

 

Net claims and claim expense ratio - prior accident years

 

(4.1

)%

 

 

(5.6

)%

 

1.5

pts

 

Net claims and claim expense ratio - calendar year

 

37.2

%

 

 

27.6

%

 

9.6

pts

 

Underwriting expense ratio

 

25.8

%

 

 

30.0

%

 

(4.2

)pts

 

Combined ratio

 

63.0

%

 

 

57.6

%

 

5.4

pts

  • Gross premiums written increased by $184.3 million, or 15.1%, driven by:
    • $198.5 million increase in the catastrophe class of business, primarily due to rate improvements on deals written in the second quarter of 2023 which were partially offset by a reduction of premiums written in Upsilon of $110.0 million. In addition, the growth in the catastrophe class of business included an increase in gross reinstatement premiums written of $29.4 million.
    • $14.2 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.
  • Net premiums written increased by $256.7 million, or 28.9%, with an increase of $273.4 million, or 54.9% in the catastrophe class of business, driven by rate improvements and lower ceded premiums written.
  • Net claims and claim expense ratio - current accident year increased 8.1 percentage points, primarily as a result of the impact from the 2023 Large Loss Events, which contributed 11.5 percentage points to the current accident year net claims and claim expense ratio.
  • Net claims and claim expense ratio - prior accident years reflects net favorable development, primarily from weather-related large losses in the 2017 through 2020 accident years, driven by better than expected loss emergence.
  • Underwriting expense ratio decreased 4.2 percentage points, largely driven by improved operating leverage from the increase in net premiums earned from the catastrophe class of business.

Underwriting Results - Casualty and Specialty Segment: Combined ratio of 93.2% and underwriting income of $70.0 million

 

 

Casualty and Specialty Segment

 

 

 

 

 

 

 

Three months ended

June 30,

 

Q/Q

Change

 

(in thousands, except percentages)

2023

 

2022

 

 

Gross premiums written

$

1,249,015

 

 

$

1,246,318

 

 

0.2

%

 

Net premiums written

 

1,051,148

 

 

 

975,641

 

 

7.7

%

 

Underwriting income (loss)

 

70,005

 

 

 

51,923

 

 

 

 

 

 

 

 

 

 

 

Underwriting Ratios

 

 

 

 

 

 

Net claims and claim expense ratio - current accident year

 

63.3

%

 

 

65.1

%

 

(1.8

)pts

 

Net claims and claim expense ratio - prior accident years

 

(0.1

)%

 

 

(0.9

)%

 

0.8

pts

 

Net claims and claim expense ratio - calendar year

 

63.2

%

 

 

64.2

%

 

(1.0

)pts

 

Underwriting expense ratio

 

30.0

%

 

 

29.6

%

 

0.4

pts

 

Combined ratio

 

93.2

%

 

 

93.8

%

 

(0.6

)pts

  • Gross premiums written were relatively flat, reflecting proactive cycle management, as growth in the other specialty class of business was largely offset by a decrease in the professional liability class of business.
  • Net premiums written increased 7.7% as a result of decreases in ceded premiums written.
  • Net claims and claim expense ratio - current accident year decreased by 1.8 percentage points compared to the second quarter of 2022 due to lower current accident year attritional losses.

Fee Income: $56.7 million of fee income, up 65.5% from Q2 2022; increase in both management and performance fees

 

 

Fee Income

 

 

 

 

 

 

 

Three months ended

June 30,

 

Q/Q

Change

 

(in thousands, except percentages)

2023

 

2022

 

 

Total management fee income

$

43,439

 

$

30,707

 

$

12,732

 

Total performance fee income (loss) (1)

 

13,242

 

 

3,548

 

 

9,694

 

Total fee income

$

56,681

 

$

34,255

 

$

22,426

(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 $12.7 million, reflecting increased capital managed at DaVinciRe Holdings Ltd. (“DaVinci”), Vermeer Reinsurance Ltd. (“Vermeer”) and RenaissanceRe Medici Fund Ltd. (“Medici”), as well as the recording of previously deferred management fees in DaVinci related to the weather-related large losses experienced in the prior years.
  • Performance fee income increased $9.7 million, driven by current year underwriting results.

Investment Results: Total investment result improved $616.8 million; net investment income growth of 173.0%

 

 

Investment Results

 

 

 

 

 

 

 

Three months ended

June 30,

 

Q/Q

Change

 

(in thousands, except percentages)

2023

 

2022

 

 

Net investment income

$

292,662

 

 

$

107,211

 

 

$

185,451

 

Net realized and unrealized gains (losses) on investments

 

(222,781

)

 

 

(654,107

)

 

 

431,326

 

Total investment result

$

69,881

 

 

$

(546,896

)

 

$

616,777

 

Net investment income return - annualized

 

5.3

%

 

 

2.1

%

 

3.2 pts

 

Total investment return - annualized

 

1.6

%

 

 

(10.1

)%

 

11.7 pts

 

 

 

 

 

 

 

  • Net investment income increased $185.5 million, primarily driven by higher interest rates, 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 and 2023, as well as increased catastrophe bond yields.
  • Net realized and unrealized gains on investments increased $431.3 million, principally driven by:
    • Net realized and unrealized losses on fixed maturity investments trading of $214.0 million, compared to net realized and unrealized losses of $437.0 million in the second quarter of 2022, driven by interest rate increases, which were generally lower in the second quarter of 2023 compared to the interest rate increases in the second quarter of 2022.
    • Equity investments contributed net realized and unrealized gains of $1.9 million, compared to net realized and unrealized losses of $91.5 million in the second quarter of 2022. Both the current and comparative quarter equity investment results were in line with wider equity market movements; and
    • Catastrophe bonds contributed net realized and unrealized gains of $38.2 million compared to net realized and unrealized losses of $24.7 million in the second quarter of 2022. Both the current and comparative quarter reflected changes in risk spreads in the wider catastrophe bond market.
  • Total investments were $25.5 billion at June 30, 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 6.1% 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 $174.9 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 catastrophe bonds recorded during the quarter in Medici.
  • Raised third-party capital of $350.5 million in the second quarter of 2023, including $170.5 million in Medici and $150.0 million in a newly formed segregated account focused on investing in insurance-linked securities (ILS), primarily catastrophe bonds.
  • Redemptions of third-party capital of $313.0 million during the second quarter of 2023, of which $285.6 million was from Upsilon Diversified Fund, as a result of the release of collateral associated with prior years’ contracts.
  • Corporate expenses increased by $11.0 million, primarily driven by expenses associated with the Validus Acquisition.
  • Income tax expense of $5.9 million compared to a benefit of $30.5 million in the second quarter of 2022. The increase in income tax expense was driven by lower investment losses and increased operating income in the Company’s taxable jurisdictions, primarily from the Company’s U.S. operations compared to the second quarter of 2022.
  • On May 22, 2023, the Company entered into a Stock Purchase Agreement (the “Stock Purchase Agreement”) with American International Group, Inc. (together with its affiliates and subsidiaries, “AIG”) pursuant to which, upon the terms and subject to the conditions thereof, the Company agreed to purchase certain direct and indirect subsidiaries of AIG, including Validus Holdings, Ltd., Validus Specialty, LLC, and Validus Reinsurance, Ltd. (the acquisitions under the Stock Purchase Agreement, together with the other transactions contemplated thereby, the “Validus Acquisition”). The Validus Acquisition, which is currently expected to close during the fourth quarter of 2023, is subject to customary closing conditions, including, among others, receipt of required regulatory approvals.
  • On May 26, 2023, the Company completed an offering of 7,245,000 of our common shares at the public offering price of $192.00 per share. The Company received net proceeds of approximately $1,352.0 million from the offering of common shares after deducting the underwriting discounts and estimated offering expenses payable.
  • On June 5, 2023, the Company completed an offering of $750.0 million aggregate principal amount of the Company’s 5.750% Senior Notes due 2033. The Company received net proceeds of approximately $741.0 million from the offering of senior notes after deducting the underwriting discounts and estimated offering expenses payable.

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, July 26, 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. The Company may also make forward-looking statements with respect to its business and industry, such as those relating to its strategy and management objectives, plans and expectations regarding its response and ability to adapt to changing economic conditions, market standing and product volumes, estimates of net negative impact and insured losses from loss events, and the Validus Acquisition and its impact on the Company’s business, among other things. These statements are subject to numerous factors that could cause actual results to differ materially from those addressed by such forward-looking statements, including the following: the risk that the Validus Acquisition may not be completed within the expected timeframe or at all; the risk that regulatory agencies in certain jurisdictions may impose onerous conditions following the Validus Acquisition; difficulties in integrating the acquired business; risk that the due diligence process that the Company undertook in connection with the Validus Acquisition may not have revealed all facts that may be relevant in connection with the Validus Acquisition; the Company’s ability to manage the growth of the acquired business’ operations successfully following the Validus Acquisition; that historical financial statements of Validus Reinsurance Ltd. are not representative of the future financial position, future results of operations or future cash flows of Validus Reinsurance Ltd. following the Validus Acquisition; risks from The Company’s increased debt obligations as a result of the Validus Acquisition; the Company’s dilutive impact on the Company’s shareholders from the issuance of common shares to AIG in connection with the Validus Acquisition; 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 the Company operates; the Company’s ability to determine any impairments taken on its investments; the Company’s ability to raise capital on acceptable terms, 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

 

Six months ended

 

June 30,

2023

 

June 30,

2022

 

June 30,

2023

 

June 30,

2022

Revenues

 

 

 

 

 

 

 

Gross premiums written

$

2,651,621

 

 

$

2,464,639

 

 

$

5,441,882

 

 

$

5,407,603

 

Net premiums written

$

2,195,803

 

 

$

1,863,616

 

 

$

4,459,506

 

 

$

4,028,833

 

Decrease (increase) in unearned premiums

 

(410,541

)

 

 

(407,233

)

 

 

(993,694

)

 

 

(1,086,025

)

Net premiums earned

 

1,785,262

 

 

 

1,456,383

 

 

 

3,465,812

 

 

 

2,942,808

 

Net investment income

 

292,662

 

 

 

107,211

 

 

 

547,040

 

 

 

190,902

 

Net foreign exchange gains (losses)

 

(13,488

)

 

 

(50,821

)

 

 

(27,991

)

 

 

(66,307

)

Equity in earnings (losses) of other ventures

 

7,700

 

 

 

7,383

 

 

 

17,230

 

 

 

993

 

Other income (loss)

 

3,876

 

 

 

923

 

 

 

(430

)

 

 

2,116

 

Net realized and unrealized gains (losses) on investments

 

(222,781

)

 

 

(654,107

)

 

 

56,670

 

 

 

(1,327,124

)

Total revenues

 

1,853,231

 

 

 

866,972

 

 

 

4,058,331

 

 

 

1,743,388

 

Expenses

 

 

 

 

 

 

 

Net claims and claim expenses incurred

 

931,211

 

 

 

706,239

 

 

 

1,732,411

 

 

 

1,547,972

 

Acquisition expenses

 

422,545

 

 

 

361,238

 

 

 

854,802

 

 

 

737,745

 

Operational expenses

 

80,491

 

 

 

72,520

 

 

 

157,965

 

 

 

140,427

 

Corporate expenses

 

23,371

 

 

 

12,352

 

 

 

36,214

 

 

 

24,854

 

Interest expense

 

14,895

 

 

 

11,895

 

 

 

27,029

 

 

 

23,850

 

Total expenses

 

1,472,513

 

 

 

1,164,244

 

 

 

2,808,421

 

 

 

2,474,848

 

Income (loss) before taxes

 

380,718

 

 

 

(297,272

)

 

 

1,249,910

 

 

 

(731,460

)

Income tax benefit (expense)

 

(5,942

)

 

 

30,534

 

 

 

(34,844

)

 

 

67,241

 

Net income (loss)

 

374,776

 

 

 

(266,738

)

 

 

1,215,066

 

 

 

(664,219

)

Net (income) loss attributable to redeemable noncontrolling interests

 

(174,907

)

 

 

(49,331

)

 

 

(442,291

)

 

 

(37,419

)

Net income (loss) attributable to RenaissanceRe

 

199,869

 

 

 

(316,069

)

 

 

772,775

 

 

 

(701,638

)

Dividends on preference shares

 

(8,844

)

 

 

(8,844

)

 

 

(17,688

)

 

 

(17,688

)

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

$

191,025

 

 

$

(324,913

)

 

$

755,087

 

 

$

(719,326

)

 

 

 

 

 

 

 

 

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

$

4.10

 

 

$

(7.53

)

 

$

16.75

 

 

$

(16.64

)

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

$

4.09

 

 

$

(7.53

)

 

$

16.71

 

 

$

(16.64

)

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

$

8.79

 

 

$

5.51

 

 

$

16.98

 

 

$

8.99

 

 

 

 

 

 

 

 

 

Average shares outstanding - basic

 

45,898

 

 

 

43,170

 

 

 

44,387

 

 

 

43,264

 

Average shares outstanding - diluted

 

45,990

 

 

 

43,170

 

 

 

44,498

 

 

 

43,264

 

 

 

 

 

 

 

 

 

Net claims and claim expense ratio

 

52.2

%

 

 

48.5

%

 

 

50.0

%

 

 

52.6

%

Underwriting expense ratio

 

28.1

%

 

 

29.8

%

 

 

29.2

%

 

 

29.8

%

Combined ratio

 

80.3

%

 

 

78.3

%

 

 

79.2

%

 

 

82.4

%

 

 

 

 

 

 

 

 

Return on average common equity - annualized

 

13.5

%

 

 

(25.1

)%

 

 

28.9

%

 

 

(26.6

)%

Operating return on average common equity - annualized (1)

 

28.8

%

 

 

18.4

%

 

 

29.4

%

 

 

14.4

%

(1)

See Comments on Non-GAAP Financial Measures for a reconciliation of non-GAAP financial measures.

RenaissanceRe Holdings Ltd.

Summary Consolidated Balance Sheets

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

 

 

 

 

 

June 30,

2023

 

December 31,

2022

Assets

(Unaudited)

 

(Audited)

Fixed maturity investments trading, at fair value

$

15,888,564

 

 

$

14,351,402

 

Short term investments, at fair value

 

6,373,969

 

 

 

4,669,272

 

Equity investments, at fair value

 

93,058

 

 

 

625,058

 

Other investments, at fair value

 

3,091,686

 

 

 

2,494,954

 

Investments in other ventures, under equity method

 

89,505

 

 

 

79,750

 

Total investments

 

25,536,782

 

 

 

22,220,436

 

Cash and cash equivalents

 

943,935

 

 

 

1,194,339

 

Premiums receivable

 

6,490,886

 

 

 

5,139,471

 

Prepaid reinsurance premiums

 

1,187,177

 

 

 

1,021,412

 

Reinsurance recoverable

 

4,689,351

 

 

 

4,710,925

 

Accrued investment income

 

147,824

 

 

 

121,501

 

Deferred acquisition costs

 

1,300,992

 

 

 

1,171,738

 

Receivable for investments sold

 

508,887

 

 

 

350,526

 

Other assets

 

358,863

 

 

 

384,702

 

Goodwill and other intangible assets

 

235,218

 

 

 

237,828

 

Total assets

$

41,399,915

 

 

$

36,552,878

 

Liabilities, Noncontrolling Interests and Shareholders’ Equity

 

 

 

Liabilities

 

 

 

Reserve for claims and claim expenses

$

16,138,128

 

 

$

15,892,573

 

Unearned premiums

 

5,717,302

 

 

 

4,559,107

 

Debt

 

1,882,101

 

 

 

1,170,442

 

Reinsurance balances payable

 

3,780,410

 

 

 

3,928,281

 

Payable for investments purchased

 

547,974

 

 

 

493,776

 

Other liabilities

 

254,925

 

 

 

648,036

 

Total liabilities

 

28,320,840

 

 

 

26,692,215

 

Redeemable noncontrolling interests

 

5,676,262

 

 

 

4,535,389

 

Shareholders’ Equity

 

 

 

Preference shares

 

750,000

 

 

 

750,000

 

Common shares

 

51,182

 

 

 

43,718

 

Additional paid-in capital

 

1,825,215

 

 

 

475,647

 

Accumulated other comprehensive income (loss)

 

(14,050

)

 

 

(15,462

)

Retained earnings

 

4,790,466

 

 

 

4,071,371

 

Total shareholders’ equity attributable to RenaissanceRe

 

7,402,813

 

 

 

5,325,274

 

Total liabilities, noncontrolling interests and shareholders’ equity

$

41,399,915

 

 

$

36,552,878

 

 

 

 

 

Book value per common share

$

129.98

 

 

$

104.65

 

RenaissanceRe Holdings Ltd.

Supplemental Financial Data - Segment Information

(in thousands of United States Dollars, except percentages)

(Unaudited)

 

Three months ended June 30, 2023

 

Property

 

Casualty and

Specialty

 

Other

 

Total

Gross premiums written

$

1,402,606

 

 

$

1,249,015

 

 

$

 

 

$

2,651,621

 

Net premiums written

$

1,144,655

 

 

$

1,051,148

 

 

$

 

 

$

2,195,803

 

Net premiums earned

$

758,686

 

 

$

1,026,576

 

 

$

 

 

$

1,785,262

 

Net claims and claim expenses incurred

 

281,993

 

 

 

649,218

 

 

 

 

 

 

931,211

 

Acquisition expenses

 

140,606

 

 

 

281,939

 

 

 

 

 

 

422,545

 

Operational expenses

 

55,077

 

 

 

25,414

 

 

 

 

 

 

80,491

 

Underwriting income (loss)

$

281,010

 

 

$

70,005

 

 

$

 

 

 

351,015

 

Net investment income

 

 

 

 

 

292,662

 

 

 

292,662

 

Net foreign exchange gains (losses)

 

 

 

 

 

(13,488

)

 

 

(13,488

)

Equity in earnings of other ventures

 

 

 

 

 

7,700

 

 

 

7,700

 

Other income (loss)

 

 

 

 

 

3,876

 

 

 

3,876

 

Net realized and unrealized gains (losses) on investments

 

 

 

 

 

(222,781

)

 

 

(222,781

)

Corporate expenses

 

 

 

 

 

(23,371

)

 

 

(23,371

)

Interest expense

 

 

 

 

 

(14,895

)

 

 

(14,895

)

Income (loss) before taxes and redeemable noncontrolling interests

 

 

 

 

 

 

 

380,718

 

Income tax benefit (expense)

 

 

 

 

 

(5,942

)

 

 

(5,942

)

Net (income) loss attributable to redeemable noncontrolling interests

 

 

 

 

 

(174,907

)

 

 

(174,907

)

Dividends on preference shares

 

 

 

 

 

(8,844

)

 

 

(8,844

)

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

 

 

 

 

 

 

$

191,025

 

 

 

 

 

 

 

 

 

Net claims and claim expenses incurred – current accident year

$

313,632

 

 

$

649,677

 

 

$

 

 

$

963,309

 

Net claims and claim expenses incurred – prior accident years

 

(31,639

)

 

 

(459

)

 

 

 

 

 

(32,098

)

Net claims and claim expenses incurred – total

$

281,993

 

 

$

649,218

 

 

$

 

 

$

931,211

 

 

 

 

 

 

 

 

 

Net claims and claim expense ratio – current accident year

 

41.3

%

 

 

63.3

%

 

 

 

 

54.0

%

Net claims and claim expense ratio – prior accident years

 

(4.1

)%

 

 

(0.1

)%

 

 

 

 

(1.8

)%

Net claims and claim expense ratio – calendar year

 

37.2

%

 

 

63.2

%

 

 

 

 

52.2

%

Underwriting expense ratio

 

25.8

%

 

 

30.0

%

 

 

 

 

28.1

%

Combined ratio

 

63.0

%

 

 

93.2

%

 

 

 

 

80.3

%

 

 

 

 

 

 

 

 

 

Three months ended June 30, 2022

 

Property

 

Casualty and

Specialty

 

Other

 

Total

Gross premiums written

$

1,218,321

 

 

$

1,246,318

 

 

$

 

 

$

2,464,639

 

Net premiums written

$

887,975

 

 

$

975,641

 

 

$

 

 

$

1,863,616

 

Net premiums earned

$

623,581

 

 

$

832,802

 

 

$

 

 

$

1,456,383

 

Net claims and claim expenses incurred

 

171,924

 

 

 

534,315

 

 

 

 

 

 

706,239

 

Acquisition expenses

 

137,567

 

 

 

223,671

 

 

 

 

 

 

361,238

 

Operational expenses

 

49,627

 

 

 

22,893

 

 

 

 

 

 

72,520

 

Underwriting income (loss)

$

264,463

 

 

$

51,923

 

 

$

 

 

 

316,386

 

Net investment income

 

 

 

 

 

107,211

 

 

 

107,211

 

Net foreign exchange gains (losses)

 

 

 

 

 

(50,821

)

 

 

(50,821

)

Equity in earnings of other ventures

 

 

 

 

 

7,383

 

 

 

7,383

 

Other income (loss)

 

 

 

 

 

923

 

 

 

923

 

Net realized and unrealized gains (losses) on investments

 

 

 

 

 

(654,107

)

 

 

(654,107

)

Corporate expenses

 

 

 

 

 

(12,352

)

 

 

(12,352

)

Interest expense

 

 

 

 

 

(11,895

)

 

 

(11,895

)

Income (loss) before taxes and redeemable noncontrolling interests

 

 

 

 

 

 

 

(297,272

)

Income tax benefit (expense)

 

 

 

 

 

30,534

 

 

 

30,534

 

Net (income) loss attributable to redeemable noncontrolling interests

 

 

 

 

 

(49,331

)

 

 

(49,331

)

Dividends on preference shares

 

 

 

 

 

(8,844

)

 

 

(8,844

)

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

 

 

 

 

 

 

$

(324,913

)

 

 

 

 

 

 

 

 

Net claims and claim expenses incurred – current accident year

$

206,976

 

 

$

542,220

 

 

$

 

 

$

749,196

 

Net claims and claim expenses incurred – prior accident years

 

(35,052

)

 

 

(7,905

)

 

 

 

 

 

(42,957

)

Net claims and claim expenses incurred – total

$

171,924

 

 

$

534,315

 

 

$

 

 

$

706,239

 

 

 

 

 

 

 

 

 

Net claims and claim expense ratio – current accident year

 

33.2

%

 

 

65.1

%

 

 

 

 

51.4

%

Net claims and claim expense ratio – prior accident years

 

(5.6

)%

 

 

(0.9

)%

 

 

 

 

(2.9

)%

Net claims and claim expense ratio – calendar year

 

27.6

%

 

 

64.2

%

 

 

 

 

48.5

%

Underwriting expense ratio

 

30.0

%

 

 

29.6

%

 

 

 

 

29.8

%

Combined ratio

 

57.6

%

 

 

93.8

%

 

 

 

 

78.3

%

RenaissanceRe Holdings Ltd.

Supplemental Financial Data - Segment Information

(in thousands of United States Dollars, except percentages)

(Unaudited)

 

Six months ended June 30, 2023

 

Property

 

Casualty and

Specialty

 

Other

 

Total

Gross premiums written

$

2,706,805

 

 

$

2,735,077

 

 

$

 

 

$

5,441,882

 

Net premiums written

$

2,164,484

 

 

$

2,295,022

 

 

$

 

 

$

4,459,506

 

Net premiums earned

$

1,446,106

 

 

$

2,019,706

 

 

$

 

 

$

3,465,812

 

Net claims and claim expenses incurred

 

469,602

 

 

 

1,262,809

 

 

 

 

 

 

1,732,411

 

Acquisition expenses

 

285,925

 

 

 

568,877

 

 

 

 

 

 

854,802

 

Operational expenses

 

110,890

 

 

 

47,075

 

 

 

 

 

 

157,965

 

Underwriting income (loss)

$

579,689

 

 

$

140,945

 

 

$

 

 

 

720,634

 

Net investment income

 

 

 

 

 

547,040

 

 

 

547,040

 

Net foreign exchange gains (losses)

 

 

 

 

 

(27,991

)

 

 

(27,991

)

Equity in earnings of other ventures

 

 

 

 

 

17,230

 

 

 

17,230

 

Other income (loss)

 

 

 

 

 

(430

)

 

 

(430

)

Net realized and unrealized gains (losses) on investments

 

 

 

 

 

56,670

 

 

 

56,670

 

Corporate expenses

 

 

 

 

 

(36,214

)

 

 

(36,214

)

Interest expense

 

 

 

 

 

(27,029

)

 

 

(27,029

)

Income (loss) before taxes and redeemable noncontrolling interests

 

 

 

 

 

 

 

1,249,910

 

Income tax benefit (expense)

 

 

 

 

 

(34,844

)

 

 

(34,844

)

Net (income) loss attributable to redeemable noncontrolling interests

 

 

 

 

 

(442,291

)

 

 

(442,291

)

Dividends on preference shares

 

 

 

 

 

(17,688

)

 

 

(17,688

)

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

 

 

 

 

 

 

$

755,087

 

 

 

 

 

 

 

 

 

Net claims and claim expenses incurred – current accident year

$

582,934

 

 

$

1,286,327

 

 

$

 

 

$

1,869,261

 

Net claims and claim expenses incurred – prior accident years

 

(113,332

)

 

 

(23,518

)

 

 

 

 

 

(136,850

)

Net claims and claim expenses incurred – total

$

469,602

 

 

$

1,262,809

 

 

$

 

 

$

1,732,411

 

 

 

 

 

 

 

 

 

Net claims and claim expense ratio – current accident year

 

40.3

%

 

 

63.7

%

 

 

 

 

53.9

%

Net claims and claim expense ratio – prior accident years

 

(7.8

)%

 

 

(1.2

)%

 

 

 

 

(3.9

)%

Net claims and claim expense ratio – calendar year

 

32.5

%

 

 

62.5

%

 

 

 

 

50.0

%

Underwriting expense ratio

 

27.4

%

 

 

30.5

%

 

 

 

 

29.2

%

Combined ratio

 

59.9

%

 

 

93.0

%

 

 

 

 

79.2

%

 

 

 

 

 

 

 

 

 

Six months ended June 30, 2022

 

Property

 

Casualty and

Specialty

 

Other

 

Total

Gross premiums written

$

2,561,829

 

 

$

2,845,774

 

 

$

 

 

$

5,407,603

 

Net premiums written

$

1,778,141

 

 

$

2,250,692

 

 

$

 

 

$

4,028,833

 

Net premiums earned

$

1,242,172

 

 

$

1,700,636

 

 

$

 

 

$

2,942,808

 

Net claims and claim expenses incurred

 

431,685

 

 

 

1,116,287

 

 

 

 

 

 

1,547,972

 

Acquisition expenses

 

264,663

 

 

 

473,082

 

 

 

 

 

 

737,745

 

Operational expenses

 

96,559

 

 

 

43,868

 

 

 

 

 

 

140,427

 

Underwriting income (loss)

$

449,265

 

 

$

67,399

 

 

$

 

 

 

516,664

 

Net investment income

 

 

 

 

 

190,902

 

 

 

190,902

 

Net foreign exchange gains (losses)

 

 

 

 

 

(66,307

)

 

 

(66,307

)

Equity in earnings of other ventures

 

 

 

 

 

993

 

 

 

993

 

Other income (loss)

 

 

 

 

 

2,116

 

 

 

2,116

 

Net realized and unrealized gains (losses) on investments

 

 

 

 

 

(1,327,124

)

 

 

(1,327,124

)

Corporate expenses

 

 

 

 

 

(24,854

)

 

 

(24,854

)

Interest expense

 

 

 

 

 

(23,850

)

 

 

(23,850

)

Income (loss) before taxes and redeemable noncontrolling interests

 

 

 

 

 

 

 

(731,460

)

Income tax benefit (expense)

 

 

 

 

 

67,241

 

 

 

67,241

 

Net (income) loss attributable to redeemable noncontrolling interests

 

 

 

 

 

(37,419

)

 

 

(37,419

)

Dividends on preference shares

 

 

 

 

 

(17,688

)

 

 

(17,688

)

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

 

 

 

 

 

 

$

(719,326

)

 

 

 

 

 

 

 

 

Net claims and claim expenses incurred – current accident year

$

483,495

 

 

$

1,125,267

 

 

$

 

 

$

1,608,762

 

Net claims and claim expenses incurred – prior accident years

 

(51,810

)

 

 

(8,980

)

 

 

 

 

 

(60,790

)

Net claims and claim expenses incurred – total

$

431,685

 

 

$

1,116,287

 

 

$

 

 

$

1,547,972

 

 

 

 

 

 

 

 

 

Net claims and claim expense ratio – current accident year

 

38.9

%

 

 

66.2

%

 

 

 

 

54.7

%

Net claims and claim expense ratio – prior accident years

 

(4.1

)%

 

 

(0.6

)%

 

 

 

 

(2.1

)%

Net claims and claim expense ratio – calendar year

 

34.8

%

 

 

65.6

%

 

 

 

 

52.6

%

Underwriting expense ratio

 

29.0

%

 

 

30.4

%

 

 

 

 

29.8

%

Combined ratio

 

63.8

%

 

 

96.0

%

 

 

 

 

82.4

%

RenaissanceRe Holdings Ltd.

Supplemental Financial Data - Gross Premiums Written

(in thousands of United States Dollars)

(Unaudited)

 

 

 

 

 

Three months ended

 

Six months ended

 

June 30,

2023

 

June 30,

2022

 

June 30,

2023

 

June 30,

2022

Property Segment

 

 

 

 

 

 

 

Catastrophe

$

1,001,839

 

$

803,333

 

$

1,930,434

 

$

1,689,424

Other property

 

400,767

 

 

414,988

 

 

776,371

 

 

872,405

Property segment gross premiums written

$

1,402,606

 

$

1,218,321

 

$

2,706,805

 

$

2,561,829

 

 

 

 

 

 

 

 

Casualty and Specialty Segment

 

 

 

 

 

 

 

General casualty (1)

$

375,945

 

$

322,733

 

$

843,837

 

$

802,875

Professional liability (2)

 

308,284

 

 

448,801

 

 

690,537

 

 

998,520

Credit (3)

 

191,985

 

 

219,480

 

 

423,661

 

 

478,584

Other specialty (4)

 

372,801

 

 

255,304

 

 

777,042

 

 

565,795

Casualty and Specialty segment gross premiums written

$

1,249,015

 

$

1,246,318

 

$

2,735,077

 

$

2,845,774

(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

 

Six months ended

 

June 30,

2023

 

June 30,

2022

 

June 30,

2023

 

June 30,

2022

Fixed maturity investments trading

$

169,739

 

 

$

76,547

 

 

$

325,239

 

 

$

138,964

 

Short term investments

 

50,231

 

 

 

4,397

 

 

 

83,181

 

 

 

5,533

 

Equity investments

 

2,766

 

 

 

4,516

 

 

 

6,165

 

 

 

7,270

 

Other investments

 

 

 

 

 

 

 

Catastrophe bonds

 

49,522

 

 

 

20,235

 

 

 

88,353

 

 

 

37,595

 

Other

 

20,820

 

 

 

6,894

 

 

 

45,391

 

 

 

12,446

 

Cash and cash equivalents

 

4,585

 

 

 

(95

)

 

 

8,849

 

 

 

(136

)

 

 

297,663

 

 

 

112,494

 

 

 

557,178

 

 

 

201,672

 

Investment expenses

 

(5,001

)

 

 

(5,283

)

 

 

(10,138

)

 

 

(10,770

)

Net investment income

$

292,662

 

 

$

107,211

 

 

 

547,040

 

 

 

190,902

 

 

 

 

 

 

 

 

 

Net investment income return - annualized

 

5.3

%

 

 

2.1

%

 

 

5.1

%

 

 

1.8

%

 

 

 

 

 

 

 

 

Net realized gains (losses) on fixed maturity investments trading

$

(74,212

)

 

$

(287,154

)

 

$

(178,977

)

 

$

(408,306

)

Net unrealized gains (losses) on fixed maturity investments trading

 

(139,793

)

 

 

(149,820

)

 

 

172,233

 

 

 

(613,997

)

Net realized and unrealized gains (losses) on fixed maturity investments trading

 

(214,005

)

 

 

(436,974

)

 

 

(6,744

)

 

 

(1,022,303

)

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

 

(65,051

)

 

 

(66,078

)

 

 

(52,889

)

 

 

(106,366

)

Net realized gains (losses) on equity investments

 

(18,755

)

 

 

35,592

 

 

 

(27,493

)

 

 

35,572

 

Net unrealized gains (losses) on equity investments

 

20,627

 

 

 

(127,104

)

 

 

59,778

 

 

 

(175,773

)

Net realized and unrealized gains (losses) on equity investments

 

1,872

 

 

 

(91,512

)

 

 

32,285

 

 

 

(140,201

)

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

 

38,186

 

 

 

(24,660

)

 

 

62,312

 

 

 

(32,921

)

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

 

16,217

 

 

 

(34,883

)

 

 

21,706

 

 

 

(25,333

)

Net realized and unrealized gains (losses) on investments

 

(222,781

)

 

 

(654,107

)

 

 

56,670

 

 

 

(1,327,124

)

Total investment result

$

69,881

 

 

$

(546,896

)

 

$

603,710

 

 

$

(1,136,222

)

 

 

 

 

 

 

 

 

Total investment return - annualized

 

1.6

%

 

 

(10.1

)%

 

 

5.5

%

 

 

(10.5

)%

Comments on Non-GAAP Financial Measures

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

Operating Income (Loss) Available (Attributable) to RenaissanceRe Common Shareholders 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) corporate expenses associated with the pending acquisition of Validus, (4) the income tax expense or benefit associated with these adjustments and (5) the portion of these adjustments attributable to the Company’s redeemable noncontrolling interests. The Company also uses “operating income (loss) available (attributable) to RenaissanceRe common shareholders” to calculate “operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted” and “operating return on average common equity - annualized.” The Company’s management believes that “operating income (loss) available (attributable) to RenaissanceRe common shareholders,” “operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted” and “operating return on average common equity - annualized” are useful to investors because they more accurately measure and predict the Company’s results of operations by removing the variability arising from the listed adjustments. 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

 

Six months ended

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

June 30,

2023

 

June 30,

2022

 

June 30,

2023

 

June 30,

2022

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

$

191,025

 

 

$

(324,913

)

 

$

755,087

 

 

$

(719,326

)

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

 

260,967

 

 

 

629,447

 

 

 

5,642

 

 

 

1,294,203

 

Adjustment for net foreign exchange losses (gains)

 

13,488

 

 

 

50,821

 

 

 

27,991

 

 

 

66,307

 

Adjustment for corporate expenses associated with the pending acquisition of Validus

 

11,341

 

 

 

 

 

 

11,341

 

 

 

 

Adjustment for income tax expense (benefit) (1)

 

(10,235

)

 

 

(42,726

)

 

 

1,087

 

 

 

(84,600

)

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

 

(59,151

)

 

 

(74,497

)

 

 

(33,705

)

 

 

(166,507

)

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

$

407,435

 

 

$

238,132

 

 

$

767,443

 

 

$

390,077

 

 

 

 

 

 

 

 

 

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

$

4.09

 

 

$

(7.53

)

 

$

16.71

 

 

$

(16.64

)

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

 

5.67

 

 

 

14.58

 

 

 

0.13

 

 

 

29.91

 

Adjustment for net foreign exchange losses (gains)

 

0.29

 

 

 

1.18

 

 

 

0.63

 

 

 

1.53

 

Adjustment for corporate expenses associated with the pending acquisition of Validus

 

0.25

 

 

 

 

 

 

0.25

 

 

 

 

Adjustment for income tax expense (benefit) (1)

 

(0.22

)

 

 

(0.99

)

 

 

0.02

 

 

 

(1.96

)

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

 

(1.29

)

 

 

(1.73

)

 

 

(0.76

)

 

 

(3.85

)

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

$

8.79

 

 

$

5.51

 

 

$

16.98

 

 

$

8.99

 

 

 

 

 

 

 

 

 

Return on average common equity - annualized

 

13.5

%

 

 

(25.1

)%

 

 

28.9

%

 

 

(26.6

)%

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

 

18.4

%

 

 

48.7

%

 

 

0.3

%

 

 

47.8

%

Adjustment for net foreign exchange losses (gains)

 

1.0

%

 

 

3.9

%

 

 

1.1

%

 

 

2.5

%

Adjustment for corporate expenses associated with the pending acquisition of Validus

 

0.8

%

 

 

%

 

 

0.4

%

 

 

%

Adjustment for income tax expense (benefit) (1)

 

(0.7

)%

 

 

(3.3

)%

 

 

%

 

 

(3.1

)%

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

 

(4.2

)%

 

 

(5.8

)%

 

 

(1.3

)%

 

 

(6.2

)%

Operating return on average common equity - annualized

 

28.8

%

 

 

18.4

%

 

 

29.4

%

 

 

14.4

%

(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.”

 

June 30,

2023

 

March 31,

2023

 

December 31,

2022

 

September 30,

2022

 

June 30,

2022

Book value per common share

$

129.98

 

 

$

116.44

 

 

$

104.65

 

 

$

94.55

 

 

$

113.69

 

Adjustment for goodwill and other intangibles (1)

 

(4.95

)

 

 

(5.78

)

 

 

(5.84

)

 

 

(5.89

)

 

 

(5.90

)

Tangible book value per common share

 

125.03

 

 

 

110.66

 

 

 

98.81

 

 

 

88.66

 

 

 

107.79

 

Adjustment for accumulated dividends

 

25.76

 

 

 

25.38

 

 

 

25.00

 

 

 

24.63

 

 

 

24.26

 

Tangible book value per common share plus accumulated dividends

$

150.79

 

 

$

136.04

 

 

$

123.81

 

 

$

113.29

 

 

$

132.05

 

 

 

 

 

 

 

 

 

 

 

Quarterly change in book value per common share

 

11.6

%

 

 

11.3

%

 

 

10.7

%

 

 

(16.8

)%

 

 

(6.4

)%

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

 

12.0

%

 

 

11.6

%

 

 

11.1

%

 

 

(16.5

)%

 

 

(6.1

)%

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

 

13.3

%

 

 

12.4

%

 

 

11.9

%

 

 

(17.4

)%

 

 

(6.4

)%

Year to date change in book value per common share

 

24.2

%

 

 

11.3

%

 

 

(20.8

)%

 

 

(28.5

)%

 

 

(14.0

)%

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

 

24.9

%

 

 

11.6

%

 

 

(19.7

)%

 

 

(27.6

)%

 

 

(13.4

)%

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

 

27.3

%

 

 

12.4

%

 

 

(20.6

)%

 

 

(28.9

)%

 

 

(14.0

)%

(1)

At June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022, the adjustment for goodwill and other intangibles included $18.3 million, $17.5 million, $17.8 million, $18.0 million and $18.3 million, respectively, of goodwill and other intangibles included in investments in other ventures, under equity method.

 

Contacts

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

Nicholas Capuano

917-842-7859

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