RenaissanceRe’s Q4 Operating Income Is $135M, Down from $140.3M in Q4 2014

February 4, 2016

Bermuda-based RenaissanceRe Holdings Ltd. reported fourth quarter 2015 operating income available to RenaissanceRe common shareholders of $135.0 million, or $3.07 per diluted common share, compared to $140.3 million, or $3.62 per diluted common share, in the fourth quarter of 2014.

Operating income for the full year was $477.7 million, or $10.86 per diluted common share in 2015, compared to $468.9 million, or $11.56 per diluted common share, during 2014.

During the quarter, net income was $92.2 million, or $2.09 per diluted common share, compared to $170.8 million, or $4.42 per diluted common share, in the fourth quarter of 2014. For full year, the company reported net income of $408.8 million, or $9.28 per diluted common share, compared to $510.3 million, or $12.60 per diluted common share, in 2014.

Other fourth quarter and full year highlights include:

  • Gross premiums written of $336.1 million increased $203.3 million, or 153.1 percent, in the fourth quarter of 2015, compared to $132.8 million reported during the fourth quarter of 2014. The company’s specialty reinsurance segment reported an increase of $195.5 million, or 271.8 percent, during the quarter, while its catastrophe reinsurance segment rose $2.4 million, or 24.2 percent. The company’s Lloyd’s business reported an increase of $5.8 million, or 11.4 percent, during the fourth quarter.
  • For the full year, gross premiums written were $2.0 billion, an increase of $460.7 million, or 29.7 percent, from the $1.6 billion reported during 2014.
  • A combined ratio of 61.3 percent in the fourth quarter of 2015, compared to 32.3 percent in the same quarter the previous year. During the full year, a combined ratio of 64.7 percent, compared to 50.2 percent in 2014.
  • An annualized return on average common equity of 8.5 percent and an annualized operating return on average common equity of 12.5 percent in the fourth quarter of 2015, compared to 20.1 percent and 16.5 percent, respectively, in the fourth quarter of 2014. For the full year, a return on average common equity of 9.8 percent and an operating return on average common equity of 11.4 percent, compared to 14.9 percent and 13.7 percent, respectively, in 2014.
  • A total investment result, which includes the sum of net investment income and net realized and unrealized (losses) gains on investments, of $2.8 million in the fourth quarter, compared to $56.1 million during the same period in 2014, or a decrease of $53.2 million. During the full year, the company reported $82.4 million for its total investment results, compared to $164.9 million in 2014, or a decrease of $82.5 million.

Kevin J. O’Donnell, CEO, commented: “I am pleased to report $135.0 million of operating income, an annualized operating ROE of 12.5 percent and 2.3 percent growth in tangible book value per share plus accumulated dividends for the quarter. In a year in which we acquired and fully integrated Platinum, we generated solid operating income of $477.7 million for the year and delivered an operating ROE of 11.4 percent.”

O’Donnell continued: “Our underwriting team executed well during the most recent renewal period, as pressure on pricing from abundant capacity persisted. We maintained discipline, coming off business that did not meet our return hurdles, buying more reinsurance protection, while also building an attractive portfolio of risks. We are a bigger, stronger company today, than a year ago, and have the management team, global operating platforms and risk management expertise to serve our clients, third party capital providers and shareholders well in the years ahead.”

Source: RenaissanceRe

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