RenaissanceRe continued its run of outstanding earnings with the announcement that net operating profits for the third quarter were $25 million, despite losses from the events of September 11, which it estimates will eventually total at least $50 million.
While the figure is some $9.2 million less than for the same period last year, RenRe is still set to increase overall operating earnings for the year. It posted gross premiums written for the first nine months of $443.8 million, compared with $380.6 million last year.
Commenting on the results in a written statement Chairman, President and CEO James N Stanard said, “During the quarter, our portfolio was able to absorb the losses from the tragic events on September 11th, allowing us to maintain our strong capital base. These events have cause a further tightening in the market, both from a contraction of capacity from competitors and a heightened emphasis on security from clients. He detailed several initiatives RenRe has made, including strengthening the capital base of its Glencoe commercial property subsidiary by $100 million, and the formation of Da Vinci Re with State Farm, capitalized initially at $500 million.(See IJ Website Oct. 10)
RenRe’s combined ratio for the quarter was 84.9 ( 76.7 for the first nine months); however its remarkable 20 percent return on equity fell to 12.5 percent for the period (17.5 percent for the first nine months); still a strong performance in adverse circumstances.