Bermuda-based RenaissanceRe Holdings reported net income available to common shareholders of $165.0 million or $2.73 per diluted common share in the first quarter of 2010, compared to $97.3 million or $1.57 per diluted common share for the first quarter of 2009.
Operating income, which excludes capital gains/losses, available to common shareholders was $116.5 million or $1.91 per diluted common share in the first quarter of 2010, compared to $94.2 million or $1.52 per diluted common share in the first quarter of 2009.
The positive results for the first quarter are all the more remarkable, as RenRe posted net claims and related expenses from the Chilean earthquake of more that $159 million, and almost $24 million from European windstorm Xynthia. The “net negative impact” was $124.5 million.
RenRe also reported an “annualized return on average common equity of 20.9 percent and an annualized operating return on average common equity of 14.8 percent in the first quarter of 2010, compared to 16.0 percent and 15.5 percent, respectively, in the first quarter of 2009.
“Book value per common share increased to $53.86 at March 31, 2010, a 4.2 percent increase in the first quarter of 2010, compared to a 2.3 percent increase in the first quarter of 2009.”
Neill A. Currie, CEO, commented: “Industry insured catastrophe losses were among the highest recorded for a first quarter. We generated an annualized operating ROE of 14.8 percent and grew our book value per share by over 4 percent, including the $124.5 million of net negative impact from these catastrophes. Favorable reserve development and strong investment performance were key drivers for the quarter.”
He added that an “event like Xynthia is a relatively common occurrence, whereas the Chilean earthquake had a much lower probability of occurring. We are in the business of protecting our clients from such events and our estimated losses were well within our modeled expectations. ”
The full report and additional information, including a replay of the earnings conference call on Wednesday April 28, is available on the Company’s website at www.renre.com.
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