Renaissance Re Posts 18% Increase in Net Income

January 30, 2001

Bermuda-based Renaissance Re continued to post good results with a 44 percent increase in 4th quarter earnings, which boosted its net operating income for the year to $134.4 million, an 18 percent increase over 1999. The company’s 21 percent return on equity is the highest in the reinsurance industry.

Catastrophe losses in 2000 were far less than 1999, the second worst loss year in history, and as rates continue to harden many reinsurers see further earnings growth.

“Significantly, the 40% growth achieved in Managed Cat Premium solidifies our position as one of the world’s largest underwriters of treaty cat excess business,” stated Renaissance Re CEO James N. Stanard. “A successful January renewal season provided us with a very attractive portfolio of catastrophe reinsurance in 2001, leading us to expect another year of excellent performance,” he continued.

Renaissance Re’s careful risk selection worked well, giving it a remarkable 69.3 percent combined ratio. Premium income from its principal activity, property catastrophe reinsurance rose from $284 million in 1999 to $397 million.

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