Bermuda’s RenaissanceRe Holdings reported that its net income available to common shareholders in the first quarter of 2009 fell to $97.3 Million, or $1.57 per common share, compared to net income available to common shareholders of $137.2 million or $2.05 per diluted common share for the same quarter of 2008.
RenRe reported $94.2 million in first quarter operating income [which excludes capital gains/losses] available to common shareholders compared to $147.8 million in the first quarter of 2008.
Operating income available to common shareholders per diluted common share was $1.52 in the first quarter of 2009, compared to $2.21 in the first quarter of 2008.
The Company reported an annualized operating return on average common equity of 15.5 percent and an annualized return on average common equity of 16.0 percent in the first quarter of 2009, compared to 21.3 percent and 19.7 percent, respectively, in the first quarter of 2008. Book value per common share increased to $39.65 at March 31, 2009, a 2.3 percent increase in the first quarter of 2009, compared to a 2.7 percent increase in the first quarter of 2008.
CEO Neill A. Currie commented: “We generated an annualized operating ROE of over 15 percent and 2.3 percent growth in book value per share in the quarter. Although below our expectations in a light catastrophe quarter, our results also reflect over 20 percent growth in our managed catastrophe premiums due to a successful January 1st renewal season, fueled by improving market conditions and increasing demand for property catastrophe reinsurance.
“We are seeing an increasing flow of new business opportunities, particularly within our specialty reinsurance unit and Individual Risk segment,” he added. “Our strong financial resources, excellent ratings, reputation for superior underwriting and client service along with our ongoing efforts to build out our business capabilities, position us well to capture these opportunities.”
Gross premiums written for the first quarter of 2009 increased 13.5 percent to $598.3 million, compared to $527.0 million for the first quarter of 2008. The increase in gross premiums written was primarily driven by an increase in gross premiums written in the Company’s catastrophe unit, and partially offset by decreases in both the Company’s specialty unit and Individual Risk segment as discussed in more detail below.
The Company generated $131.2 million of underwriting income and had a combined ratio of 56.5 percent in the first quarter of 2009, compared to $150.2 million of underwriting income and a 51.4 percent combined ratio in the first quarter of 2008, principally driven by an increase in net claims and claim expenses incurred during the quarter as a result of unfavorable development on prior years reserves within the Company’s Individual Risk segment.
The Company’s unfavorable development on prior years reserves totaled $7.3 million in the first quarter of 2009, compared to $45.1 million of favorable development in the first quarter of 2008, and was principally due to higher than expected claims emergence on the 2008 crop year for the Company’s multi-peril crop business in its Individual Risk segment and partially offset by favorable development in the Company’s Reinsurance segment.
The complete report and details on accessing the earnings conference call, held on April 30, may be obtained on the Group’s web site at: www.renre.com.
Source: RenaissanceRe
Topics Profit Loss
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