RenRe Estimates 3Q Earnings, Will Expense Stock Options

October 15, 2002

Bermuda’s RenaissanceRe Holdings Ltd. announced that it expects to report operating earnings for the three months ended September 30, 2002 of between $1.10 to $1.15 per share. It also announced that it will account for employee stock options as an expense, and adopt the “Statement of Financial Accounting Standard 123, Accounting for Stock-Based Compensation, effective January 1, 2003.”

The company released the figures in advance of its presentation at the 2002 Bermuda Angle Investment Conference, which is to take place today. It estimated that full year 2002 operating earnings would be in the range of $4.65 to $4.80 per share. The company noted that the figures are calculated under GAAP standards, and exclude realized gains and losses on investments

The Company also indicated that it is currently comfortable with projections of operating earnings of $4.85 to $5.15 per share for full year 2003, assuming normal loss activity. “RenaissanceRe estimates that full year normalized 2002 results would approximate $3.95 to $4.10 per share, assuming normal cat loss activity for the year, compared to the currently estimated actual results of $4.65 to $4.80 per share, reflecting unusually low cat-related losses for the year. Based upon the Company’s estimates of normal cat losses, approximately $.70 of the Company’s 2002 earnings per share represents the benefit of relatively low catastrophe loss activity for the year,” said the bulletin.

“We are very pleased with the performance of our business so far in 2002 and our prospects for 2003,” stated James N. Stanard, Chairman and Chief Executive Officer. “We anticipate continued growth in profitability on the strength of our ongoing leadership position in the property catastrophe reinsurance market, our related success in building our structured products capability, as well as our specialty reinsurance and individual risk businesses. Each of these business segments have become important sources of earnings for our Company. Our strong market position and reputation in each of our chosen markets should enable us to continue to realize our potential in the current environment.”

RenaissanceRe plans to report its full financial results for its third quarter ended September 30, 2002 after the market close on October 21.

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