- 93.8% Casualty and Specialty combined ratio, an improvement of
4 percentage points from Q2 2021.
- 32.5% growth in net investment income.
- 23.2% growth in net premiums written; 37.6% growth in Casualty
and Specialty and 10.5% in Property.
- Annualized return on average common equity of (25.1)% driven by
significant mark-to-market losses in the investment portfolio.
- 18.4% annualized operating return on average common equity
showing strong underwriting performance and increased net
investment income.
RenaissanceRe Holdings Ltd. (NYSE: RNR) (“RenaissanceRe” or the
“Company”) today announced its financial results for the second
quarter of 2022.
Net Loss Attributable to
Common Shareholders per Diluted Common Share: $(7.53)
Operating Income Available to
Common Shareholders per Diluted Common Share*: $5.51
Underwriting Income
$316.4M
Fee Income
$34.3M
Net Investment Income
$107.2M
Change in Book Value per
Common Share: (6.4)%
Change in Tangible Book Value
per Common Share Plus Change in Accum. Dividends*: (6.4)%
* 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 reported a strong quarter, with
continuing top line growth and solid operating profitability
demonstrating the power of our diversified platform. Our financial
results were driven by strong performance across both underwriting
segments, a significant increase in net investment income and an
expanding Capital Partners business. We are pleased with our 18.4%
annualized operating return on average common equity during the
quarter, and are confident that our consistent strategy, leadership
in a strengthening market and robust capital position will enable
us to continue maximizing shareholder value.”
Consolidated Financial
Results
Consolidated Highlights
Three months ended June
30
(in thousands, except per share amounts
and percentages)
2022
2021
Gross premiums written
$
2,464,639
$
2,094,158
Net premiums written
1,863,616
1,512,292
Underwriting income (loss)
316,386
328,976
Combined ratio
78.3 %
72.4 %
Net Income (Loss)
Available (Attributable) to common
shareholders
(324,913)
456,818
Available (Attributable) to common
shareholders per diluted common share
$
(7.53)
$
9.35
Operating Income (Loss) (1)
Available (Attributable) to common
shareholders
238,132
278,050
Available (Attributable) to common
shareholders per diluted common share
$
5.51
$
5.64
Book value per common share
$
113.69
$
139.35
Change in book value per share
(6.4) %
6.3 %
Tangible book value per common share plus
accumulated dividends (1)
$
132.05
$
156.55
Change in tangible book value per common
share plus change in accumulated dividends (1)
(6.4) %
6.7 %
Return on average common equity -
annualized
(25.1) %
27.6 %
Operating return on average common equity
- annualized (1)
18.4 %
16.8 %
- See “Comments on Regulation G” for a reconciliation of non-GAAP
financial measures.
Three Drivers of Profit:
Underwriting, Fee and Investment Income
Underwriting Results - Property Segment: Combined ratio of
57.6% and growth in net premiums written of 10.5%
Property Segment
Three months ended June
30
Q/Q Change
(in thousands, except percentages)
2022
2021
Gross premiums written
$
1,218,321
$
1,183,556
2.9 %
Net premiums written
887,975
803,335
10.5 %
Underwriting income (loss)
264,463
315,122
Underwriting Ratios
Net claims and claim expense ratio -
current accident year
33.2 %
26.4 %
6.8 pts
Net claims and claim expense ratio - prior
accident years
(5.6) %
(9.1) %
3.5 pts
Net claims and claim expense ratio -
calendar year
27.6 %
17.3 %
10.3 pts
Underwriting expense ratio
30.0 %
26.5 %
3.5 pts
Combined ratio
57.6 %
43.8 %
13.8 pts
Gross premiums written increased by $34.8 million, or
2.9%, driven by an improving rate environment, in addition to new
opportunities, notably within the property catastrophe class of
business.
- Net premiums written increased by $84.6 million, or
10.5%, driven by the increase in gross premiums written, as well as
a reduction in ceded premiums written of $49.9 million due to lower
levels of retrocessional purchases as a part of the Company’s
gross-to-net strategy.
- The net claims and claim expense ratio - current accident
year reflects the relatively low level of catastrophe activity
in the quarter. The increase from the second quarter of 2021 was
driven by: - the continued impact of the other property class of
business on the segment which has a relatively higher attritional
loss ratio than the property catastrophe class of business; and -
catastrophe activity, which was relatively low in both periods, but
slightly higher in the second quarter of 2022.
- The net claims and claim expense ratio - prior accident
years reflects net favorable development primarily from
weather-related large losses in the 2017 to 2021 accident
years.
- Underwriting expense ratio increased 3.5 percentage
points driven by: - continued impact of the other property class of
business on the segment, which has a relatively higher expense
ratio than the catastrophe class of business; and - a reduced
benefit to the ratio following a reduction in management fees
largely due to the reduced size of the Company’s structured
reinsurance products and lower capital managed at Upsilon.
Underwriting Results - Casualty and Specialty Segment:
Combined ratio of 93.8% and growth in net premiums written of
37.6%
Casualty and Specialty Segment
Three months ended June
30
Q/Q Change
(in thousands, except percentages)
2022
2021
Gross premiums written
$
1,246,318
$
910,602
36.9%
Net premiums written
975,641
708,957
37.6%
Underwriting income (loss)
51,923
13,854
Underwriting Ratios
Net claims and claim expense ratio -
current accident year
65.1 %
67.0 %
(1.9) pts
Net claims and claim expense ratio - prior
accident years
(0.9) %
(0.1) %
(0.8) pts
Net claims and claim expense ratio -
calendar year
64.2 %
66.9 %
(2.7) pts
Underwriting expense ratio
29.6 %
30.9 %
(1.3) pts
Combined ratio
93.8 %
97.8 %
(4.0) pts
- Gross premiums written increased 36.9%, principally in
the professional liability and financial lines classes of business.
This growth was primarily driven by increases in new and existing
business written in the current and prior periods, combined with
rate improvements.
- Net premiums written increased 37.6%, primarily driven
by growth in the professional liability and financial lines classes
of business, consistent with the changes in gross premiums
written.
- Net claims and claim expense ratio improved by
2.7 percentage points principally as a result of lower current
accident year losses. The net claims and claim expense ratio was
also positively impacted by higher favorable prior accident year
loss development as compared to the second quarter of 2021.
- Underwriting expense ratio decreased 1.3 percentage
points, principally due to a 1.0 percentage point decrease in the
net acquisition expense ratio due to changes in estimated profit
commissions.
Fee Income: $34.3 million of fee income primarily driven by
stable management fee income
Fee Income
Three months ended June
30
Q/Q Change
(in thousands, except percentages)
2022
2021
Total management fee income
$
30,707
$
31,970
$
(1,263)
Total performance fee income (loss)
(1)
3,548
14,187
(10,639)
Total fee income
$
34,255
$
46,157
$
(11,902)
- Performance fees are based on the performance of the individual
vehicles or products, and may be negative in a particular period
if, for example, large losses occur, which can potentially result
in no performance fees or the reversal of previously accrued
performance fees.
- Management fee income was relatively stable in
comparison to the second quarter of 2021, with reductions in the
Company’s structured reinsurance products and lower capital managed
at Upsilon, largely offset by increased capital managed at
DaVinciRe Holdings Ltd., Vermeer Reinsurance Ltd., Medici, and
Fontana Holdings L.P. and its subsidiaries (“Fontana”), which was
launched in the second quarter of 2022.
- Performance fee income was lower in the second quarter
of 2022 compared to the second quarter of 2021. Performance fee
income continued to be impacted by the underwriting deficit carried
forward from the weather-related losses in 2021 in the current
period, although to a lesser extent than in recent quarters.
Investment Results: Growth in net investment income; total
investment result driven by net realized and unrealized losses,
primarily in the fixed maturity investments portfolio
Investment Results
Three months ended June
30
Q/Q Change
(in thousands, except percentages)
2022
2021
Net investment income
$
107,211
$
80,925
$
26,286
Net realized and unrealized gains (losses)
on investments
(654,107)
191,018
(845,125)
Total investment result
$
(546,896)
$
271,943
$
(818,839)
Total investment return - annualized
(10.1) %
5.2 %
(15.3) pts
- Net investment income increased $26.3 million, primarily
driven by higher investment yields from: - increasing interest
rates in the Company’s fixed maturity trading and short term
investment portfolios, and - higher average invested assets and
yields in the catastrophe bond and equity trading investment
portfolios.
- Net realized and unrealized gains (losses) on
investments decreased $845.1 million principally driven by: -
net realized and unrealized losses on fixed maturity investments
trading of $437.0 million from the significant increase in interest
rates as compared to net realized and unrealized gains of $97.2
million in the second quarter of 2021, which was driven by
decreasing interest rates. - net realized and unrealized losses on
equity investments trading of $91.5 million principally driven by
broad equity market declines, as compared to gains of $65.6 million
in the second quarter of 2021 which was driven by gains in the
Company’s strategic investment portfolio.
- Total investments of $20.6 billion at June 30, 2022. Weighted
average yield to maturity and duration on investments, which
exclude investments that have no final maturity, anticipated yield
to maturity or duration, was 3.9% and 2.6 years.
Other Items of Note
- Net income attributable to redeemable noncontrolling
interests of $49.3 million was primarily driven by: - Strong
underwriting performance in DaVinci and Vermeer; and - Increase in
the capital managed at the Company’s joint ventures, including the
launch of Fontana during the quarter; partially offset by -
Realized and unrealized losses on investments in the Company’s
joint ventures driven by the significant increase in interest
rates; and - Foreign exchange losses on hedges related to foreign
currency share classes held by third-party investors in
RenaissanceRe Medici Fund Ltd. (“Medici”).
- Income tax benefit of $30.5 million was primarily driven
by unrealized investment losses in the Company’s U.S.-based
operations.
- Net foreign exchange losses of $50.8 million primarily
driven by losses attributable to third-party investors in Medici
which are allocated through noncontrolling interests, as discussed
above, and the impact of certain foreign exchange exposures related
to the Company’s underwriting activities, which the Company does
not anticipate will recur.
- Share repurchases of 298.2 thousand common shares at an
aggregate cost of $44.1 million and an average price of $147.85 per
common share in the second quarter of 2022. Repurchased an
additional 175.7 thousand of common shares at an aggregate cost of
$25.3 million from July 1, 2022 through July 22, 2022.
- Raised capital of $567.7 million in the second
quarter of 2022 through Medici and the previously announced launch
of Fontana, including $136.3 million from the Company.
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 Tuesday, July 26,
2022 at 10:00 a.m. ET to discuss this release. Live broadcast of
the conference call will be available through the “Investors -
Webcasts & Presentations” section of the Company’s website at
www.renre.com.
About RenaissanceRe
RenaissanceRe is a global provider of reinsurance and insurance
that specializes in matching well-structured risks with efficient
sources of capital. The Company provides property, casualty and
specialty reinsurance and certain insurance solutions to customers,
principally through intermediaries. Established in 1993,
RenaissanceRe has offices in Bermuda, Australia, Ireland,
Singapore, Switzerland, the United Kingdom and the United
States.
Cautionary Statement Regarding Forward-Looking
Statements
Any forward-looking statements made in this Press Release
reflect RenaissanceRe’s current views with respect to future events
and financial performance and are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
These statements are subject to numerous factors that could cause
actual results to differ materially from those set forth in or
implied by such forward-looking statements, including the
following: the Company’s exposure to natural and non-natural
catastrophic events and circumstances and the variance it may cause
in the Company’s financial results; the effect of climate change on
the Company’s business, including the trend towards increasingly
frequent and severe climate events; the effectiveness of the
Company’s claims and claim expense reserving process; the effect of
emerging claims and coverage issues; the historically cyclical
nature of the (re)insurance industries; collection on claimed
retrocessional coverage, and new retrocessional reinsurance being
available on acceptable terms; the ability of the Company’s ceding
companies and delegated authority counterparties to accurately
assess the risks they underwrite; the Company’s ability to maintain
its financial strength ratings; the performance of the Company’s
investment portfolio and financial market volatility; the effects
of inflation; the highly competitive nature of the Company’s
industry, resulting in consolidation of competitors, customers and
(re)insurance brokers, and the Company’s reliance on a small and
decreasing number of brokers; the impact of large non-recurring
contracts and reinstatement premiums on the Company’s financial
results; the Company’s ability to attract and retain key executives
and employees; the effect of cybersecurity risks, including
technology breaches or failure; the Company’s ability to
successfully implement its business strategies and initiatives, and
the success of any of the Company’s strategic investments or
acquisitions, including its ability to manage its operations as its
product and geographical diversity increases; the Company’s
exposure to credit loss from counterparties; the Company’s need to
make many estimates and judgments in the preparation of its
financial statements; the Company’s ability to effectively manage
capital on behalf of investors in joint ventures or other entities
it manages; changes to the accounting rules and regulatory systems
applicable to the Company’s business, including changes in Bermuda
laws or regulations or as a result of increased global regulation
of the insurance and reinsurance industries; other political,
regulatory or industry initiatives adversely impacting the Company;
the Company’s ability to comply with covenants in its debt
agreements; a contention by the U.S. Internal Revenue Service that
any of the Company’s Bermuda subsidiaries are subject to taxation
in the U.S.; the effects of possible future tax reform legislation
and regulations, including changes to the tax treatment of the
Company’s shareholders or investors in its joint ventures or other
entities it manages; the Company’s ability to determine any
impairments taken on its investments; the uncertainty of the
continuing and future impact of the COVID-19 pandemic, including
measures taken in response thereto and the effect of legislative,
regulatory and judicial influences on the Company’s potential
reinsurance, insurance and investment exposures, or other effects
that it may have; foreign currency exchange rate fluctuations; the
Company’s ability to raise capital if necessary; the Company’s
ability to comply with applicable sanctions and foreign corrupt
practices laws; the Company’s dependence on the ability of its
operating subsidiaries to declare and pay dividends; aspects of the
Company’s corporate structure that may discourage third-party
takeovers and other transactions; difficulties investors may have
in serving process or enforcing judgments against the Company in
the U.S.; and other factors affecting future results disclosed in
RenaissanceRe’s filings with the SEC, including its Annual Reports
on Form 10-K and Quarterly Reports on Form 10-Q.
RenaissanceRe Holdings
Ltd.
Summary Consolidated
Statements of Operations
(in thousands of United States
Dollars, except per share amounts and percentages)
(Unaudited)
Three months ended
Six months ended
June 30, 2022
June 30, 2021
June 30, 2022
June 30, 2021
Revenues
Gross premiums written
$
2,464,639
$
2,094,158
$
5,407,603
$
4,746,600
Net premiums written
$
1,863,616
$
1,512,292
$
4,028,833
$
3,336,375
Decrease (increase) in unearned
premiums
(407,233
)
(319,502
)
(1,086,025
)
(989,749
)
Net premiums earned
1,456,383
1,192,790
2,942,808
2,346,626
Net investment income
107,211
80,925
190,902
160,729
Net foreign exchange gains (losses)
(50,821
)
3,234
(66,307
)
(19,554
)
Equity in earnings (losses) of other
ventures
7,383
8,732
993
3,174
Other income (loss)
923
586
2,116
2,757
Net realized and unrealized gains (losses)
on investments
(654,107
)
191,018
(1,327,124
)
(154,545
)
Total revenues
866,972
1,477,285
1,743,388
2,339,187
Expenses
Net claims and claim expenses incurred
706,239
520,021
1,547,972
1,387,072
Acquisition expenses
361,238
285,590
737,745
552,824
Operational expenses
72,520
58,203
140,427
113,514
Corporate expenses
12,352
10,125
24,854
20,530
Interest expense
11,895
11,833
23,850
23,745
Total expenses
1,164,244
885,772
2,474,848
2,097,685
Income (loss) before taxes
(297,272
)
591,513
(731,460
)
241,502
Income tax benefit (expense)
30,534
(13,862
)
67,241
5,654
Net income (loss)
(266,738
)
577,651
(664,219
)
247,156
Net (income) loss attributable to
redeemable noncontrolling interests
(49,331
)
(113,544
)
(37,419
)
(66,694
)
Net income (loss) attributable to
RenaissanceRe
(316,069
)
464,107
(701,638
)
180,462
Dividends on preference shares
(8,844
)
(7,289
)
(17,688
)
(14,578
)
Net income (loss) available
(attributable) to RenaissanceRe common shareholders
$
(324,913
)
$
456,818
$
(719,326
)
$
165,884
Net income (loss) available (attributable)
to RenaissanceRe common shareholders per common share – basic
$
(7.53
)
$
9.36
$
(16.64
)
$
3.36
Net income (loss) available (attributable)
to RenaissanceRe common shareholders per common share – diluted
$
(7.53
)
$
9.35
$
(16.64
)
$
3.35
Operating (loss) income (attributable)
available to RenaissanceRe common shareholders per common share -
diluted (1)
$
5.51
$
5.64
$
8.99
$
5.73
Average shares outstanding - basic
43,170
48,163
43,264
48,871
Average shares outstanding - diluted
43,170
48,226
43,264
48,940
Net claims and claim expense ratio
48.5
%
43.6
%
52.6
%
59.1
%
Underwriting expense ratio
29.8
%
28.8
%
29.8
%
28.4
%
Combined ratio
78.3
%
72.4
%
82.4
%
87.5
%
Return on average common equity -
annualized
(25.1
) %
27.6
%
(26.6
) %
4.9
%
Operating return on average common equity
- annualized (1)
18.4
%
16.8
%
14.4
%
8.4
%
- 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)
June 30, 2022
December 31,
2021
Assets
(Unaudited)
(Audited)
Fixed maturity investments trading, at
fair value
$
13,085,367
$
13,507,131
Short term investments, at fair value
4,429,483
5,298,385
Equity investments trading, at fair
value
692,747
546,016
Other investments, at fair value
2,314,232
1,993,059
Investments in other ventures, under
equity method
75,979
98,068
Total investments
20,597,808
21,442,659
Cash and cash equivalents
1,398,095
1,859,019
Premiums receivable
5,408,217
3,781,542
Prepaid reinsurance premiums
1,354,565
854,722
Reinsurance recoverable
4,206,459
4,268,669
Accrued investment income
75,302
55,740
Deferred acquisition costs and value of
business acquired
1,089,426
849,160
Receivable for investments sold
279,442
380,442
Other assets
384,436
224,053
Goodwill and other intangible assets
240,647
243,496
Total assets
$
35,034,397
$
33,959,502
Liabilities, Noncontrolling Interests
and Shareholders’ Equity
Liabilities
Reserve for claims and claim expenses
$
13,442,806
$
13,294,630
Unearned premiums
5,117,217
3,531,213
Debt
1,169,393
1,168,353
Reinsurance balances payable
4,385,834
3,860,963
Payable for investments purchased
517,753
1,170,568
Other liabilities
309,938
755,441
Total liabilities
24,942,941
23,781,168
Redeemable noncontrolling interests
4,352,797
3,554,053
Shareholders’ Equity
Preference shares
750,000
750,000
Common shares
43,881
44,445
Additional paid-in capital
479,085
608,121
Accumulated other comprehensive income
(loss)
(15,168
)
(10,909
)
Retained earnings
4,480,861
5,232,624
Total shareholders’ equity attributable
to RenaissanceRe
5,738,659
6,624,281
Total liabilities, noncontrolling
interests and shareholders’ equity
$
35,034,397
$
33,959,502
Book value per common share
$
113.69
$
132.17
RenaissanceRe Holdings
Ltd.
Supplemental Financial Data -
Segment Information
(in thousands of United States
Dollars, except percentages)
(Unaudited)
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
%
Three months ended June 30,
2021
Property
Casualty and Specialty
Other
Total
Gross premiums written
$
1,183,556
$
910,602
$
—
$
2,094,158
Net premiums written
$
803,335
$
708,957
$
—
$
1,512,292
Net premiums earned
$
560,397
$
632,393
$
—
$
1,192,790
Net claims and claim expenses incurred
97,150
422,871
—
520,021
Acquisition expenses
109,238
176,352
—
285,590
Operational expenses
38,887
19,316
—
58,203
Underwriting income (loss)
$
315,122
$
13,854
$
—
328,976
Net investment income
80,925
80,925
Net foreign exchange gains (losses)
3,234
3,234
Equity in earnings of other ventures
8,732
8,732
Other income (loss)
586
586
Net realized and unrealized gains (losses)
on investments
191,018
191,018
Corporate expenses
(10,125
)
(10,125
)
Interest expense
(11,833
)
(11,833
)
Income (loss) before taxes and redeemable
noncontrolling interests
591,513
Income tax benefit (expense)
(13,862
)
(13,862
)
Net (income) loss attributable to
redeemable noncontrolling interests
(113,544
)
(113,544
)
Dividends on preference shares
(7,289
)
(7,289
)
Net income (loss) available (attributable)
to RenaissanceRe common shareholders
$
456,818
Net claims and claim expenses incurred –
current accident year
$
148,133
$
423,917
$
—
$
572,050
Net claims and claim expenses incurred –
prior accident years
(50,983
)
(1,046
)
—
(52,029
)
Net claims and claim expenses incurred –
total
$
97,150
$
422,871
$
—
$
520,021
Net claims and claim expense ratio –
current accident year
26.4
%
67.0
%
48.0
%
Net claims and claim expense ratio – prior
accident years
(9.1
) %
(0.1
) %
(4.4
) %
Net claims and claim expense ratio –
calendar year
17.3
%
66.9
%
43.6
%
Underwriting expense ratio
26.5
%
30.9
%
28.8
%
Combined ratio
43.8
%
97.8
%
72.4
%
RenaissanceRe Holdings
Ltd.
Supplemental Financial Data -
Segment Information
(in thousands of United States
Dollars, except percentages)
(Unaudited)
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 gain (loss)
(66,307
)
(66,307
)
Equity in earnings of other ventures
993
993
Other income (loss)
2,116
2,116
Net realized and unrealized gain (loss) 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
%
Six months ended June 30,
2021
Property
Casualty and Specialty
Other
Total
Gross premiums written
$
2,800,375
$
1,946,225
$
—
$
4,746,600
Net premiums written
$
1,811,795
$
1,524,580
$
—
$
3,336,375
Net premiums earned
$
1,165,563
$
1,181,063
$
—
$
2,346,626
Net claims and claim expenses incurred
595,982
791,090
—
1,387,072
Acquisition expenses
221,992
330,832
—
552,824
Operational expenses
74,262
39,252
—
113,514
Underwriting income (loss)
$
273,327
$
19,889
$
—
293,216
Net investment income
160,729
160,729
Net foreign exchange gain (loss)
(19,554
)
(19,554
)
Equity in earnings of other ventures
3,174
3,174
Other income (loss)
2,757
2,757
Net realized and unrealized gain (loss) on
investments
(154,545
)
(154,545
)
Corporate expenses
(20,530
)
(20,530
)
Interest expense
(23,745
)
(23,745
)
Income (loss) before taxes and redeemable
noncontrolling interests
241,502
Income tax benefit (expense)
5,654
5,654
Net (income) loss attributable to
redeemable noncontrolling interests
(66,694
)
(66,694
)
Dividends on preference shares
(14,578
)
(14,578
)
Net income (loss) available (attributable)
to RenaissanceRe common shareholders
$
165,884
Net claims and claim expenses incurred –
current accident year
$
652,127
$
796,006
$
—
$
1,448,133
Net claims and claim expenses incurred –
prior accident years
(56,145
)
(4,916
)
—
(61,061
)
Net claims and claim expenses incurred –
total
$
595,982
$
791,090
$
—
$
1,387,072
Net claims and claim expense ratio –
current accident year
55.9
%
67.4
%
61.7
%
Net claims and claim expense ratio – prior
accident years
(4.8
) %
(0.4
) %
(2.6
) %
Net claims and claim expense ratio –
calendar year
51.1
%
67.0
%
59.1
%
Underwriting expense ratio
25.4
%
31.3
%
28.4
%
Combined ratio
76.5
%
98.3
%
87.5
%
RenaissanceRe Holdings
Ltd.
Supplemental Financial Data -
Gross Premiums Written
(in thousands of United States
Dollars)
(Unaudited)
Three months ended
Six months ended
June 30, 2022
June 30, 2021
June 30, 2022
June 30, 2021
Property Segment
Catastrophe
$
803,333
$
761,323
$
1,689,424
$
1,892,448
Other property
414,988
422,232
872,405
907,927
Property segment gross premiums
written
$
1,218,321
$
1,183,555
$
2,561,829
$
2,800,375
Casualty and Specialty Segment
General casualty (1)
$
322,733
$
286,686
$
802,875
$
629,856
Professional liability (2)
448,801
306,387
998,520
620,759
Financial lines (3)
219,480
86,175
478,584
230,561
Other (4)
255,304
231,354
565,795
465,049
Casualty and Specialty segment gross
premiums written
$
1,246,318
$
910,602
$
2,845,774
$
1,946,225
(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, 2022
June 30, 2021
June 30, 2022
June 30, 2021
Fixed maturity investments trading
$
76,547
$
59,510
$
138,964
$
122,443
Short term investments
4,397
782
5,533
1,355
Equity investments trading
4,516
1,626
7,270
3,117
Other investments
Catastrophe bonds
20,235
16,681
37,595
31,149
Other
6,894
9,339
12,446
13,140
Cash and cash equivalents
(95
)
159
(136
)
261
112,494
88,097
201,672
171,465
Investment expenses
(5,283
)
(7,172
)
(10,770
)
(10,736
)
Net investment income
107,211
80,925
190,902
160,729
Net investment income return -
annualized
2.1
%
1.5
%
1.8
%
1.5
%
Net realized and unrealized gains
(losses) on:
Fixed maturity investments trading
(436,974
)
97,176
(1,022,303
)
(179,444
)
Investments-related derivatives
(66,078
)
(9,329
)
(106,366
)
5,532
Equity investments trading
(91,512
)
65,566
(140,201
)
(2,356
)
Other investments
Catastrophe bonds
(24,660
)
2
(32,921
)
(19,081
)
Other
(34,883
)
37,603
(25,333
)
40,804
Net realized and unrealized gains
(losses) on investments
(654,107
)
191,018
(1,327,124
)
(154,545
)
Total investment result
$
(546,896
)
$
271,943
$
(1,136,222
)
$
6,184
Total investment return -
annualized
(10.1
) %
5.2
%
(10.5
) %
0.1
%
Comments on Regulation
G
In addition to the GAAP financial measures set forth in this
Press Release, the Company has included certain non-GAAP financial
measures within the meaning of Regulation G. The Company has
provided these financial measures in previous investor
communications and the Company’s management believes that these
measures are important to investors and other interested persons,
and that investors and such other persons benefit from having a
consistent basis for comparison between quarters and for comparison
with other companies within or outside the industry. These measures
may not, however, be comparable to similarly titled measures used
by companies within or outside of the insurance industry. Investors
are cautioned not to place undue reliance on these non-GAAP
measures in assessing the Company’s overall financial
performance.
Operating Income (Loss) Available (Attributable) to
RenaissanceRe Common Shareholders and Operating Return on Average
Common Equity - Annualized
The Company uses “operating income (loss) available
(attributable) to RenaissanceRe common shareholders” as a measure
to evaluate the underlying fundamentals of its operations and
believes it to be a useful measure of its corporate performance.
“Operating income (loss) available (attributable) to RenaissanceRe
common shareholders” as used herein differs from “net income (loss)
attributable to RenaissanceRe common shareholders,” which the
Company believes is the most directly comparable GAAP measure, by
the exclusion of net realized and unrealized gains and losses on
investments, excluding other investments - catastrophe bonds, net
foreign exchange gains and losses, corporate expenses associated
with the acquisition of TMR and the subsequent sale of
RenaissanceRe (UK) Limited (“RenaissanceRe UK”), the income tax
expense or benefit associated with these adjustments and the
portion of these adjustments attributable to the Company’s
redeemable noncontrolling interests. The Company’s management
believes that “operating income (loss) available (attributable) to
RenaissanceRe common shareholders” is useful to investors because
it more accurately measures and predicts the Company’s results of
operations by removing the variability arising from: fluctuations
in the fair value of the Company’s fixed maturity investment
portfolio, equity investments trading, other investments (excluding
catastrophe bonds) and investments-related derivatives;
fluctuations in foreign exchange rates; corporate expenses
associated with the acquisition of TMR and the subsequent sale of
RenaissanceRe UK; the associated income tax expense or benefit of
these adjustments; and the portion of these adjustments
attributable to the Company’s redeemable noncontrolling interests.
The Company also uses “operating income (loss) available
(attributable) to RenaissanceRe common shareholders” to calculate
“operating income (loss) available (attributable) to RenaissanceRe
common shareholders per common share - diluted” and “operating
return on average common equity - annualized.” The following table
is a reconciliation of: (1) net income (loss) attributable to
RenaissanceRe common shareholders to “operating income (loss)
available (attributable) to RenaissanceRe common shareholders”; (2)
net income (loss) attributable to RenaissanceRe common shareholders
per common share - diluted to “operating income (loss) available
(attributable) to RenaissanceRe common shareholders per common
share - diluted”; and (3) return on average common equity -
annualized to “operating return on average common equity -
annualized.” Comparative information for all prior periods has been
updated to conform to the current methodology and presentation.
Three months ended
Six months ended
(in thousands of United States Dollars,
except per share amounts and percentages)
June 30, 2022
June 30, 2021
June 30, 2022
June 30, 2021
Net income (loss) available (attributable)
to RenaissanceRe common shareholders
$
(324,913
)
$
456,818
$
(719,326
)
$
165,884
Adjustment for net realized and unrealized
losses (gains) on investments, excluding other investments -
catastrophe bonds
629,447
(191,016
)
1,294,203
135,464
Adjustment for net foreign exchange losses
(gains)
50,821
(3,234
)
66,307
19,554
Adjustment for corporate expenses
associated with the acquisition of TMR and the subsequent sale of
RenaissanceRe UK
—
—
—
135
Adjustment for income tax expense
(benefit) (1)
(42,726
)
11,786
(84,600
)
(8,179
)
Adjustment for net income (loss)
attributable to redeemable noncontrolling interests (2)
(74,497
)
3,696
(166,507
)
(30,413
)
Operating income (loss) available
(attributable) to RenaissanceRe common shareholders
$
238,132
$
278,050
$
390,077
$
282,445
Net income (loss) available (attributable)
to RenaissanceRe common shareholders per common share - diluted
$
(7.53
)
$
9.35
$
(16.64
)
$
3.35
Adjustment for net realized and unrealized
losses (gains) on investments, excluding other investments -
catastrophe bonds
14.58
(3.96
)
29.91
2.77
Adjustment for net foreign exchange losses
(gains)
1.18
(0.07
)
1.53
0.40
Adjustment for corporate expenses
associated with the acquisition of TMR and the subsequent sale of
RenaissanceRe UK
—
—
—
—
Adjustment for income tax expense
(benefit) (1)
(0.99
)
0.24
(1.96
)
(0.17
)
Adjustment for net income (loss)
attributable to redeemable noncontrolling interests (2)
(1.73
)
0.08
(3.85
)
(0.62
)
Operating income (loss) available
(attributable) to RenaissanceRe common shareholders per common
share - diluted
$
5.51
$
5.64
$
8.99
$
5.73
Return on average common equity -
annualized
(25.1
) %
27.6
%
(26.6
) %
4.9
%
Adjustment for net realized and unrealized
losses (gains) on investments, excluding other investments -
catastrophe bonds
48.7
%
(11.5
) %
47.8
%
4.0
%
Adjustment for net foreign exchange losses
(gains)
3.9
%
(0.2
) %
2.5
%
0.6
%
Adjustment for corporate expenses
associated with the acquisition of TMR and the subsequent sale of
RenaissanceRe UK
—
%
—
%
—
%
—
%
Adjustment for income tax expense
(benefit) (1)
(3.3
) %
0.7
%
(3.1
) %
(0.2
) %
Adjustment for net income (loss)
attributable to redeemable noncontrolling interests (2)
(5.8
) %
0.2
%
(6.2
) %
(0.9
) %
Operating return on average common equity
- annualized
18.4
%
16.8
%
14.4
%
8.4
%
- Represents the income tax (expense) benefit associated with the
adjustments to net income (loss) available (attributable) to
RenaissanceRe common shareholders. The income tax impact is
estimated by applying the statutory rates of applicable
jurisdictions, after consideration of other relevant factors.
- 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, 2022
March 31, 2022
December 31,
2021
September 30,
2021
June 30, 2021
Book value per common share
$
113.69
$
121.44
$
132.17
$
128.91
$
139.35
Adjustment for goodwill and other
intangibles (1)
(5.90
)
(5.89
)
(5.90
)
(5.67
)
(5.60
)
Tangible book value per common share
107.79
115.55
126.27
123.24
133.75
Adjustment for accumulated dividends
24.26
23.89
23.52
23.16
22.80
Tangible book value per common share plus
accumulated dividends
$
132.05
$
139.44
$
149.79
$
146.40
$
156.55
Quarterly change in book value per common
share
(6.4
) %
(8.1
) %
2.5
%
(7.5
) %
6.3
%
Quarterly change in tangible book value
per common share plus change in accumulated dividends
(6.4
) %
(8.2
) %
2.8
%
(7.6
) %
6.7
%
Year to date change in book value per
common share
(14.0
) %
(8.1
) %
(4.5
) %
(6.9
) %
0.6
%
Year to date change in tangible book value
per common share plus change in accumulated dividends
(14.0
) %
(8.2
) %
(4.0
) %
(6.6
) %
1.0
%
- At June 30, 2022, March 31, 2022, December 31, 2021, September
30, 2021, and June 30, 2021, goodwill and other intangibles
included $18.3 million, $18.4 million, $18.6 million, $19.0
million, and $22.4 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/20220725005728/en/
INVESTORS: RenaissanceRe Holdings Ltd. Keith McCue Senior
Vice President, Finance & Investor Relations (441) 239-4830
MEDIA: RenaissanceRe Holdings Ltd. Hayden Kenny Vice
President, Investor Relations & Communications (441) 239-4946
or Kekst CNC Dawn Dover (212) 521-4800
RenaissanceRe (NYSE:RNR)
過去 株価チャート
から 2 2025 まで 3 2025
RenaissanceRe (NYSE:RNR)
過去 株価チャート
から 3 2024 まで 3 2025
