Bermuda’s RenaissanceRe continued its steady earnings growth, despite the Sept. 11 attacks, as it posted “a 29% increase in net operating income available to common shareholders for the fourth quarter of 2001, excluding realized investment gains and losses, to $46.6 million, from $36.0 million in the fourth quarter of 2000.”
Chairman, President and CEO James James N. Stanard, was justifiably proud of RenRe’s results, commenting, “We turned in record earnings per share in fiscal 2001 and achieved an 18% return on equity, despite severe market challenges. In addition, we are off to a great start in 2002 with an extremely successful January 1 renewal season.”
“For 2002 we again anticipate superior results, with an expected return on equity greater than 20% and projected Managed Cat Premium growth of over 50%,” Stanard continued. He added that, “We expect our Cat Exposed Commercial Insurance and Specialty Reinsurance businesses to contribute in excess of $200 million in net written premium, for a growth rate of well over 100%. For these reasons, we are comfortable with increases of Street estimates to $10.50 to $11.00 for 2002 operating earnings per share.”
“Gross premiums written for the twelve months ended December 31, 2001 were $501.3 million, compared to $433.0 million for the same period of 2000. Net premiums written for the twelve months ended December 31, 2001 were $339.5 million, compared to $293.3 million for the same period of 2000,” said the company’s announcement.
Referring to its new joint venture, DaVinci Re with State Farm, RenRe noted that the Company’s cash and investments had increased “from $1.4 billion as of September 30, 2001 to $2.2 billion as of December 31, 2001 is a result of $232 million raised from the issuance of 2.5 million common shares, $145 million received from the issuance of 6 million Series A Preference Shares, and $275 million of third party investment in the Company’s most recent joint venture, DaVinci Reinsurance.” The investment is reflected as a “minority interest” on the company’s balance sheet.
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