RenRe Posts Q3 Operating Income of $247 Million

November 1, 2006

Bermuda’s RenaissanceRe Holdings Ltd. reported $247 million in third quarter operating income – which excludes capital gains and losses – available to common shareholders compared to a $292.5 million operating loss in the third quarter of 2005. Operating income per common share was $3.42 in the third quarter of 2006, compared to an operating loss per common share of $4.14 in the third quarter of 2005.

Net income available to common shareholders was $251.1 million or $3.48 per common share in the quarter, compared to a net loss attributable to common shareholders of $287.3 million or $4.07 per common share for the same quarter of 2005. “The Company’s third quarter 2006 results benefited from light insured catastrophe loss activity compared to the third quarter of 2005 as well as a $31.4 million net positive impact resulting from the commutation of certain assumed and ceded reinsurance contracts in the quarter,” said the bulletin.

CEO Neill A. Currie commented: “We are very pleased to report another strong quarter with record results. Our core property cat business generated exceptional earnings, and our book value per share grew by over 12 percent this quarter. Our annualized compounded growth in book value per share plus accumulated dividends over the last ten years is 17 percent, reflecting our continued commitment to generate long-term growth in book value for our shareholders.”

“This year we met the demands of the market by providing capacity when it was most needed. We currently expect the demand for capacity to continue into 2007 and our priorities remain clear: maintaining a focused and disciplined approach to underwriting that enables us to achieve superior long-term results.”

Although RenRe’s gross premiums written during the third quarter fell to $257.752 million from $382.790 million in the same period of 2005, overall gpw for the first nine months of 2006 rose to nearly $1.749 billion, compared to $1.520 billion in 2005. Net premiums written for the 9-month period rose to 1.3727 billion, compared to $1.2938 billion in 2005.

RenRe also managed to put up some rather remarkable combined ratio numbers. In the 3rd quarter of 2005 – due to the severe hurricanes – it was 215.7 percent. In Q3 2006 it was 36.5 percent. For the first nine months of 2005 RenRe’s combined ratio was 121.5 percent, but this year it was a very low 55.2 percent.

The full report and a replay of the conference call, held Oct. 31, can be obtained on the Group’s Website I the “Investor” section, at: www.renre.com.

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