RenaissanceRe Holdings Ltd. proved once again that it can make money better than anyone else. The Bermuda-based company announced that its first quarter net operating income available to common shareholders (excluding realized investment gains and losses) rose to $86.6 million, compared to $37.3 million in the first quarter of 2001, while operating earnings per common share more than doubled to $3.72 in the first quarter from $1.84 last year.
A huge increase in both gross and net premium income during the period generated a lot of profit. RenRe announced that “Gross premiums written for the first quarter of 2002 increased by over 100% to $460.8 million, compared to $198.2 million for the same quarter of 2001. Net premiums written for the first quarter of 2002 were $379.1 million, versus $121.2 million for the same quarter of 2001. Net premiums earned for the first quarter of 2002 were $150.3 million, compared to $83.9 million for the same quarter of 2001.”
It indicated that “Those premiums include $95.3 million of gross written premiums, $95.3 million of net written premiums and $23.6 million of net premiums earned by the Company’s joint venture, DaVinci Re. Premiums also include $34.9 million assumed from the OPCat Ltd. joint venture in connection with the previously announced decision of Overseas Partners Ltd. to exit the reinsurance business.”
Commenting on the results, James N. Stanard, Chairman and CEO, stated that “Our record first quarter demonstrates the earnings power of our business in a period with low catastrophe losses. In addition, we achieved outstanding success, reflected by substantial revenue growth, across all our key business activities–catastrophe reinsurance, specialty reinsurance and catastrophe exposed commercial insurance. Lower than usual first quarter loss activity, together with projected increases in 2002 premiums, lead us to be comfortable with estimates of $12.00 to $12.50 for 2002 operating EPS.”
Even on an off day on Wall Street, RenRe’s shares rose $3.04 to close at $115.06.
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