RenRe Reports Q2 Net Income of $73.2M, Operating Income of $99.9M

July 29, 2015

RenaissanceRe Holdings Ltd. reported net income available to common shareholders of $73.2 million, or $1.59 per diluted common share, in the second quarter of 2015, compared to $120.8 million, or $2.95, respectively, in the second quarter of 2014.

Operating income available to common shareholders was $99.9 million, or $2.18 per diluted common share, for the second quarter of 2015, compared to $93.6 million, or $2.28, respectively, in the second quarter of 2014.

The Bermuda-based company reported an annualized return on average common equity of 6.6 percent and an annualized operating return on average common equity of 9.1 percent in the second quarter of 2015, compared to 14.2 percent and 11.0 percent, respectively, in the second quarter of 2014.

“Each of our segments executed well during the quarter and we expanded our underwriting capabilities to support our clients, despite the competitive market conditions,” said Kevin J. O’Donnell, CEO.

“Our integration of Platinum has gone well. We are operating as one company with a consistent and united approach to the market,” O’Donnell continued. “We remain committed to our goal of generating superior returns for our shareholders and third party capital providers over the long term by continuing to be market leaders in matching desirable risk with efficient capital.”

RenRe’s second quarter highlights include:

  • Gross premiums written of $662.0 million increased $150.5 million, or 29.4 percent, in the second quarter of 2015, over the $ 511.5 million reported for the second quarter of 2014. The company’s specialty reinsurance and Lloyd’s segments experienced increases of $108.5 million, or 210.4 percent, and $44.7 million, or 62.2 percent, respectively. The catastrophe reinsurance segment gross premiums written decreased by $2.7 million, or 0.7 percent, in the second quarter of 2015.
  • The company generated underwriting income of $94.1 million and a combined ratio of 75.2 percent in the second quarter of 2015, compared to $99.7 million and 61.7 percent, respectively, in the second quarter of 2014. Underwriting income in the second quarter of 2015 was driven by an increase in net premiums earned, principally the result of increased gross premiums written in the specialty reinsurance segment, which was offset by higher current accident year net claims and claim expenses.
  • The company’s total investment result, which principally includes the sum of net investment income, net realized and unrealized (losses) gains on investments, was $11.3 million in the second quarter of 2015, compared to $61.6 million in the second quarter of 2014. The decrease in the total investment result during the second quarter of 2015 of $50.2 million, compared to the second quarter of 2014, was primarily driven by rising interest rates across the yield curve in the portfolio of fixed maturity investments which resulted in net realized and unrealized losses, as well as lower returns in the portfolio of private equity investments.
  • Gross premiums written in the catastrophe reinsurance segment were $385.4 million in the second quarter of 2015, a decrease of $2.7 million, or 0.7 percent, compared to the second quarter of 2014. For the first six months of 2015, managed catastrophe premiums decreased $71.5 million, or 7.7 percent, to $862.4 million, compared to $933.9 million in the first six months of 2014.
  • Gross premiums written in the specialty reinsurance segment were $160.0 million in the second quarter of 2015, an increase of $108.5 million, or 210.4 percent, compared to the second quarter of 2014. This was driven by increases across substantially all lines of business, most notably certain casualty and property other lines of business, principally due to the acquisition of Platinum Underwriters Holdings Ltd. on March 2, 2015. For the first six months of 2015, gross premiums written in the specialty reinsurance segment increased $78.5 million, or 38.1 percent, to $284.3 million, compared to $205.8 million in the first six months of 2014.

Source: RenaissanceRe

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