RenaissanceRe Reports Gains in 2ndQ Net Operating Income

Bermuda-based RenaissanceRe Holdings Ltd. reported $93.3 million in second quarter net operating income available to common shareholders (excluding realized investment gains and losses), compared to $37.5 million in the second quarter of 2001.

Operating earnings per common share grew to $1.33 in the second quarter, from $0.62 per common share in the second quarter of the previous year.

Net income available to common shareholders rose 138 percent to $96.2 million, or $1.37 per common share in the quarter, from $40.3 million or $0.67 per common share for the same quarter of 2001.

For the six months ended June 30, 2002, net operating income available to common shareholders (excluding realized gains and losses on investments and excluding the cumulative effect of a change in accounting principle) was $179.9 million or $2.57 per common share, compared to $74.7 million or $1.23 per common share for the same period in 2001. Net income available to common shareholders for the six months ended June 30, 2002 was $174.3 million or $2.49 per common share, compared to $85.2 million or $1.41 per common share for the same period in 2001.

In conjunction with the adoption of Statement of Financial Accounting Standard 142 (“SFAS 142”), Goodwill and Other Intangible Assets, the company wrote-off the entire balance of its goodwill, or $9.2 million; this charge has been reflected as a cumulative effect of a change in accounting principle, and is excluded from the net income for the current quarter, and included in the company’s net income for the six months ended June 30, 2002, as required by SFAS 142.

Gross premiums written for the second quarter of 2002 increased by 122 percent to $270.3 million, compared to $122.0 million for the same quarter of 2001. Net premiums written for the second quarter of 2002 were $198.5 million, versus $92.9 million for the same quarter of 2001. Net premiums earned for the second quarter of 2002 were $184.7 million, compared to $75.5 million for the same quarter of 2001. Those premiums include $34.8 million of gross written premiums, $34.8 million of net written premiums and $34.2 million of net premiums earned by the company’s consolidated joint venture, DaVinci Re during the second quarter of 2002.

Gross premiums written for the six months ended June 30, 2002 were $731.1 million, compared to $320.2 million for the same period of 2001. Net premiums written for the six months ended June 30 were $577.6 million, compared to $214.2 million for the same period of 2001. Net premiums earned for the first six months of 2002 were $335.1 million, compared to $159.4 million for the same period of 2001. Those premiums include $130.1 million of gross written premiums, $130.1 million of net written premiums and $57.8 million of net premiums earned by DaVinci Re during the first six months of 2002.

Total managed catastrophe premiums written, representing gross catastrophe premiums written by RenaissanceRe Holdings Ltd. and by related joint ventures, increased by 56 percent and were $144.8 million for the second quarter, compared to $92.6 million for the same quarter of 2001. Total managed cat premiums for the first six months increased by 68 percent to $515.2 million, from $307.2 million for the same period of 2001.

The low level of catastrophe losses in the quarter resulted in claims and claim expenses incurred for first quarter of 2002 of $73.1 million, or 39.6 percent of net premiums earned. In comparison, claims and claim expenses incurred for the quarter ended June 30, 2001 were $32.3 million, or 42.8 percent of net premiums earned. Claims and claim expenses incurred for the six months ended June 30 were also lower than the previous year.