RenaissanceRe Reports First Quarter 2020 Net Loss Attributable to Common Shareholders of $82.0 Million, or $1.89 Per Diluted Common Share; Operating Income Available to Common Shareholders of $33.4 Million, or $0.76 Per Diluted Common Share
PEMBROKE,
First Quarter of 2020 Summary
- Gross premiums written increased by
$461.4 million , or 29.5%, to$2.0 billion , in the first quarter of 2020 compared to the first quarter of 2019, driven by an increase of$273.3 million in the Casualty and Specialty segment and an increase of$188.1 million in the Property segment.
- Underwriting income of
$64.1 million and a combined ratio of 93.0% in the first quarter of 2020, compared to underwriting income of$154.1 million and a combined ratio of 72.0% in the first quarter of 2019. The Property segment generated underwriting income of$147.1 million and had a combined ratio of 65.1% in the first quarter of 2020. The Casualty and Specialty segment incurred an underwriting loss of$83.2 million and had a combined ratio of 116.9% in the first quarter of 2020, principally impacted by net claims and claim expenses associated with the COVID-19 pandemic of$103.8 million , which added 21.1 percentage points to the combined ratio. The losses primarily represent the cost of claims incurred but not yet reported, with respect to exposures such as event contingency and event-based casualty covers.
- Total investment result was a loss of
$11.2 million in the first quarter of 2020, generating an annualized total investment return of negative 0.1%, compared to a gain of$252.1 million and an annualized total investment return of 8.0% in the first quarter of 2019. The Company was favorably positioned during the recent disruption in global financial markets associated with the COVID-19 pandemic as a significant portion of the Company’s investment portfolio is weighted towards high-quality fixed maturity investments. The primary driver of the investment result was the Company’s net realized and unrealized losses on equity investments trading, which represents 2.0% of the Company’s total investment portfolio of$17.8 billion .
- Approximately
$600 million of net capital raised in the first quarter of 2020 through the Company’s managed joint ventures and third-party capital vehicles, includingUpsilon RFO Re Ltd. andRenaissanceRe Medici Fund Ltd.
Acquisition of Tokio Millennium Re
On
Underwriting Results by Segment
Property Segment
Gross premiums written in the Property segment were
Gross premiums written in the catastrophe class of business were
Gross premiums written in the other property class of business were
Ceded premiums written in the Property segment were
The Property segment generated underwriting income of
Casualty and Specialty Segment
Gross premiums written in the Casualty and Specialty segment were
The Casualty and Specialty segment incurred an underwriting loss of
In the three months ended
The increase in the Casualty and Specialty segment net current accident year claims and claim expense ratio of 18.4 percentage points in the three months ended
COVID-19
Due to the ongoing and rapidly evolving nature of the COVID-19 pandemic, the Company is continuing to evaluate the impact of COVID-19 on its business and to estimate all of the Company’s potential reinsurance, insurance or investment exposures, or any other effects that the COVID-19 pandemic may have on its results of operations or financial condition.
The Company expects losses to emerge over time as the full impact of the pandemic and its effects on the global economy are realized. A longer or more severe recession, or high unemployment levels will increase the probability of losses. Potential legislative, regulatory and judicial actions are also causing significant uncertainty with respect to policy coverage and other issues. Our loss estimate as of
In addition to coverage exposures, volatility in global financial markets and a continued slowdown in global economic conditions, have adversely affected, and may continue to adversely affect, the Company’s investment portfolio. These conditions may also negatively impact the Company’s ability to access liquidity and capital markets financing.
Please refer to the Company’s Quarterly Report on Form 10-Q for the quarter ended
Other Items
- The Company’s total investment result, which includes the sum of net investment income and net realized and unrealized (losses) gains on investments, was a loss of
$11.2 million in the first quarter of 2020, compared to a gain of$252.1 million in the first quarter of 2019, a decrease of$263.3 million . The primary driver of the decrease in the total investment result was net realized and unrealized losses on equity investments trading, combined with net realized and unrealized losses on other investments and lower net realized and unrealized gains on fixed maturity investments, due in part to the recent disruption in global financial markets associated with the COVID-19 pandemic, partially offset by higher returns on investments-related derivatives.
- Net income attributable to redeemable noncontrolling interests in the first quarter of 2020 was
$98.1 million , compared to$70.2 million in the first quarter of 2019. The result was primarily driven byDaVinciRe Holdings Ltd. andVermeer Reinsurance Ltd. generating net income of$108.0 million and$17.9 million , respectively, in the first quarter of 2020, compared to$80.3 million and$5.2 million , respectively, in the first quarter of 2019.
- In the first quarter of 2020, total fee income increased by
$16.6 million , to$45.4 million , compared to$28.8 million in the first quarter of 2019, primarily driven by an increase in the dollar value of capital being managed combined with improved underlying performance.
- During the first quarter of 2020, the Company repurchased 406 thousand common shares in open market transactions at an aggregate cost of
$62.6 million and an average price of$154.36 per common share.
- In
February 2020 , the Company announced the redemption of all 5 million of its outstanding Series C 6.08% Preference Shares. The Series C 6.08% Preference Shares were redeemed onMarch 26, 2020 for$125.0 million plus accrued and unpaid dividends thereon. Following the redemption, no Series C 6.08% Preference Shares remain outstanding.
- On
February 4, 2020 , the Company’s wholly-owned subsidiary,RenaissanceRe Specialty Holdings (UK) Limited , entered into an agreement to sell its wholly owned subsidiary,RenaissanceRe (UK) Limited , aUK run-off company acquired in connection with the acquisition of TMR, to an investment vehicle managed byAXA Liabilities Managers , an affiliate of AXA XL. The sale is subject to regulatory approval and is expected to close in 2020.
- On
March 15, 2020 , the Company repaid in full at maturity the aggregate principal amount of$250.0 million , plus applicable accrued interest, of its 5.75% Senior Notes due 2020 ofRenRe North America Holdings Inc. andRenaissanceRe Finance .
This Press Release includes certain financial measures that are not calculated in accordance with generally accepted accounting principles in the
Please refer to the “Investors - Financial Reports - Financial Supplements” section of the Company’s website at www.renre.com for a copy of the Financial Supplement which includes additional information on the Company’s financial performance.
About
Cautionary Statement Regarding Forward-Looking Statements
Any forward-looking statements made in this Press Release reflect RenaissanceRe’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are subject to numerous factors that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements, including the following: the uncertainty of the impact of the COVID-19 pandemic and measures taken in response thereto; the effect of legislative, regulatory, judicial or social influences related to the COVID-19 pandemic on the Company’s financial performance and the Company’s ability to conduct its business; the impact of the COVID-19 pandemic on the value of the Company’s investments and access to capital; the effect that measures taken to mitigate the COVID-19 pandemic have on the operations of the Company and its counterparties; the frequency and severity of catastrophic and other events that the Company covers; the effectiveness of the Company’s claims and claim expense reserving process; the effect of climate change on the Company’s business, including the trend towards increasingly frequent and severe climate events; the Company’s ability to maintain its financial strength ratings; the effect of emerging claims and coverage issues; collection on claimed retrocessional coverage, and new retrocessional reinsurance being available on acceptable terms and providing the coverage that we intended to obtain; the Company’s reliance on a small and decreasing number of reinsurance brokers and other distribution services for the preponderance of its revenue; the Company’s exposure to credit loss from counterparties in the normal course of business; the effect of continued challenging economic conditions throughout the world; soft reinsurance underwriting market conditions; the performance of the Company’s investment portfolio; a contention by the
|
|||||||||
Summary Consolidated Statements of Operations |
|||||||||
(in thousands of United States Dollars, except per share amounts and percentages) |
|||||||||
(Unaudited) |
|||||||||
|
Three months ended |
||||||||
|
|
|
|
||||||
Revenues |
|
|
|
||||||
Gross premiums written |
$ |
2,025,721 |
|
|
$ |
1,564,295 |
|
||
Net premiums written |
$ |
1,269,808 |
|
|
$ |
929,031 |
|
||
Increase in unearned premiums |
(356,710 |
) |
|
(379,003 |
) |
||||
Net premiums earned |
913,098 |
|
|
550,028 |
|
||||
Net investment income |
99,473 |
|
|
82,094 |
|
||||
Net foreign exchange losses |
(5,728 |
) |
|
(2,846 |
) |
||||
Equity in earnings of other ventures |
4,564 |
|
|
4,661 |
|
||||
Other (loss) income |
(4,436 |
) |
|
3,171 |
|
||||
Net realized and unrealized (losses) gains on investments |
(110,707 |
) |
|
170,013 |
|
||||
Total revenues |
896,264 |
|
|
807,121 |
|
||||
Expenses |
|
|
|
||||||
Net claims and claim expenses incurred |
570,954 |
|
|
227,035 |
|
||||
Acquisition expenses |
210,604 |
|
|
123,951 |
|
||||
Operational expenses |
67,461 |
|
|
44,933 |
|
||||
Corporate expenses |
15,991 |
|
|
38,789 |
|
||||
Interest expense |
14,927 |
|
|
11,754 |
|
||||
Total expenses |
879,937 |
|
|
446,462 |
|
||||
Income before taxes |
16,327 |
|
|
360,659 |
|
||||
Income tax benefit (expense) |
8,846 |
|
|
(7,531 |
) |
||||
Net income |
25,173 |
|
|
353,128 |
|
||||
Net income attributable to noncontrolling interests |
(98,091 |
) |
|
(70,222 |
) |
||||
Net (loss) income attributable to |
(72,918 |
) |
|
282,906 |
|
||||
Dividends on preference shares |
(9,056 |
) |
|
(9,189 |
) |
||||
Net (loss) income (attributable) available to |
$ |
(81,974 |
) |
|
$ |
273,717 |
|
||
|
|
|
|
||||||
Net (loss) income (attributable) available to |
$ |
(1.89 |
) |
|
$ |
6.43 |
|
||
Net (loss) income (attributable) available to |
$ |
(1.89 |
) |
|
$ |
6.43 |
|
||
Operating income available to |
$ |
0.76 |
|
|
$ |
3.59 |
|
||
|
|
|
|
||||||
Average shares outstanding - basic |
43,441 |
|
|
42,065 |
|
||||
Average shares outstanding - diluted |
43,441 |
|
|
42,091 |
|
||||
|
|
|
|
||||||
Net claims and claim expense ratio |
62.5 |
% |
|
41.3 |
% |
||||
Underwriting expense ratio |
30.5 |
% |
|
30.7 |
% |
||||
Combined ratio |
93.0 |
% |
|
72.0 |
% |
||||
|
|
|
|
||||||
Return on average common equity - annualized |
(6.3 |
)% |
|
23.5 |
% |
||||
Operating return on average common equity - annualized (1) |
2.6 |
% |
|
13.1 |
% |
(1) See Comments on Regulation G for a reconciliation of non-GAAP financial measures.
|
|||||||||
Summary Consolidated Balance Sheets |
|||||||||
(in thousands of United States Dollars, except per share amounts) |
|||||||||
|
|
|
|
||||||
|
|
|
|
||||||
Assets |
(Unaudited) |
|
(Audited) |
||||||
Fixed maturity investments trading, at fair value |
$ |
11,045,801 |
|
|
$ |
11,171,655 |
|
||
Short term investments, at fair value |
5,263,242 |
|
|
4,566,277 |
|
||||
Equity investments trading, at fair value |
360,444 |
|
|
436,931 |
|
||||
Other investments, at fair value |
1,058,714 |
|
|
1,087,377 |
|
||||
Investments in other ventures, under equity method |
90,396 |
|
|
106,549 |
|
||||
Total investments |
17,818,597 |
|
|
17,368,789 |
|
||||
Cash and cash equivalents |
896,216 |
|
|
1,379,068 |
|
||||
Premiums receivable |
3,105,441 |
|
|
2,599,896 |
|
||||
Prepaid reinsurance premiums |
1,151,926 |
|
|
767,781 |
|
||||
Reinsurance recoverable |
2,765,583 |
|
|
2,791,297 |
|
||||
Accrued investment income |
73,496 |
|
|
72,461 |
|
||||
Deferred acquisition costs and value of business acquired |
739,875 |
|
|
663,991 |
|
||||
Receivable for investments sold |
341,786 |
|
|
78,369 |
|
||||
Other assets |
312,523 |
|
|
346,216 |
|
||||
|
260,076 |
|
|
262,226 |
|
||||
Total assets |
$ |
27,465,519 |
|
|
$ |
26,330,094 |
|
||
Liabilities, Noncontrolling Interests and Shareholders’ Equity |
|
|
|
||||||
Liabilities |
|
|
|
||||||
Reserve for claims and claim expenses |
$ |
9,406,707 |
|
|
$ |
9,384,349 |
|
||
Unearned premiums |
3,245,914 |
|
|
2,530,975 |
|
||||
Debt |
1,134,695 |
|
|
1,384,105 |
|
||||
Reinsurance balances payable |
3,775,375 |
|
|
2,830,691 |
|
||||
Payable for investments purchased |
636,136 |
|
|
225,275 |
|
||||
Other liabilities |
351,320 |
|
|
932,024 |
|
||||
Total liabilities |
18,550,147 |
|
|
17,287,419 |
|
||||
Redeemable noncontrolling interest |
3,231,846 |
|
|
3,071,308 |
|
||||
Shareholders’ Equity |
|
|
|
||||||
Preference shares |
525,000 |
|
|
650,000 |
|
||||
Common shares |
44,034 |
|
|
44,148 |
|
||||
Additional paid-in capital |
502,608 |
|
|
568,277 |
|
||||
Accumulated other comprehensive loss |
(1,664 |
) |
|
(1,939 |
) |
||||
Retained earnings |
4,613,548 |
|
|
4,710,881 |
|
||||
Total shareholders’ equity attributable to |
5,683,526 |
|
|
5,971,367 |
|
||||
Total liabilities, noncontrolling interests and shareholders’ equity |
$ |
27,465,519 |
|
|
$ |
26,330,094 |
|
||
|
|
|
|
||||||
Book value per common share |
$ |
117.15 |
|
|
$ |
120.53 |
|
|
|||||||||||||||||
Supplemental Financial Data - Segment Information |
|||||||||||||||||
(in thousands of United States Dollars, except percentages) |
|||||||||||||||||
(Unaudited) |
|||||||||||||||||
|
Three months ended |
||||||||||||||||
|
Property |
|
Casualty and |
|
Other |
|
Total |
||||||||||
Gross premiums written |
$ |
1,220,526 |
|
|
$ |
805,195 |
|
|
$ |
— |
|
|
$ |
2,025,721 |
|
||
Net premiums written |
$ |
674,581 |
|
|
$ |
595,227 |
|
|
$ |
— |
|
|
$ |
1,269,808 |
|
||
Net premiums earned |
$ |
421,335 |
|
|
$ |
491,763 |
|
|
$ |
— |
|
|
$ |
913,098 |
|
||
Net claims and claim expenses incurred |
144,852 |
|
|
426,209 |
|
|
(107 |
) |
|
570,954 |
|
||||||
Acquisition expenses |
85,351 |
|
|
125,253 |
|
|
— |
|
|
210,604 |
|
||||||
Operational expenses |
44,007 |
|
|
23,454 |
|
|
— |
|
|
67,461 |
|
||||||
Underwriting income (loss) |
$ |
147,125 |
|
|
$ |
(83,153 |
) |
|
$ |
107 |
|
|
64,079 |
|
|||
Net investment income |
|
|
|
|
99,473 |
|
|
99,473 |
|
||||||||
Net foreign exchange losses |
|
|
|
|
(5,728 |
) |
|
(5,728 |
) |
||||||||
Equity in earnings of other ventures |
|
|
|
|
4,564 |
|
|
4,564 |
|
||||||||
Other loss |
|
|
|
|
(4,436 |
) |
|
(4,436 |
) |
||||||||
Net realized and unrealized losses on investments |
|
|
|
|
(110,707 |
) |
|
(110,707 |
) |
||||||||
Corporate expenses |
|
|
|
|
(15,991 |
) |
|
(15,991 |
) |
||||||||
Interest expense |
|
|
|
|
(14,927 |
) |
|
(14,927 |
) |
||||||||
Income before taxes and redeemable noncontrolling interests |
|
|
|
|
|
|
16,327 |
|
|||||||||
Income tax benefit |
|
|
|
|
8,846 |
|
|
8,846 |
|
||||||||
Net income attributable to redeemable noncontrolling interests |
|
|
|
|
(98,091 |
) |
|
(98,091 |
) |
||||||||
Dividends on preference shares |
|
|
|
|
(9,056 |
) |
|
(9,056 |
) |
||||||||
Net loss attributable to |
|
|
|
|
|
|
$ |
(81,974 |
) |
||||||||
|
|
|
|
|
|
|
|
||||||||||
Net claims and claim expenses incurred – current accident year |
$ |
130,844 |
|
|
$ |
426,210 |
|
|
$ |
— |
|
|
$ |
557,054 |
|
||
Net claims and claim expenses incurred – prior accident years |
14,008 |
|
|
(1 |
) |
|
(107 |
) |
|
13,900 |
|
||||||
Net claims and claim expenses incurred – total |
$ |
144,852 |
|
|
$ |
426,209 |
|
|
$ |
(107 |
) |
|
$ |
570,954 |
|
||
|
|
|
|
|
|
|
|
||||||||||
Net claims and claim expense ratio – current accident year |
31.1 |
% |
|
86.7 |
% |
|
|
|
61.0 |
% |
|||||||
Net claims and claim expense ratio – prior accident years |
3.3 |
% |
|
— |
% |
|
|
|
1.5 |
% |
|||||||
Net claims and claim expense ratio – calendar year |
34.4 |
% |
|
86.7 |
% |
|
|
|
62.5 |
% |
|||||||
Underwriting expense ratio |
30.7 |
% |
|
30.2 |
% |
|
|
|
30.5 |
% |
|||||||
Combined ratio |
65.1 |
% |
|
116.9 |
% |
|
|
|
93.0 |
% |
|||||||
|
|
|
|
|
|
|
|
||||||||||
|
Three months ended |
||||||||||||||||
|
Property |
|
Casualty and |
|
Other |
|
Total |
||||||||||
Gross premiums written |
$ |
1,032,384 |
|
|
$ |
531,911 |
|
|
$ |
— |
|
|
$ |
1,564,295 |
|
||
Net premiums written |
$ |
564,230 |
|
|
$ |
364,801 |
|
|
$ |
— |
|
|
$ |
929,031 |
|
||
Net premiums earned |
$ |
290,745 |
|
|
$ |
259,283 |
|
|
$ |
— |
|
|
$ |
550,028 |
|
||
Net claims and claim expenses incurred |
56,083 |
|
|
170,933 |
|
|
19 |
|
|
227,035 |
|
||||||
Acquisition expenses |
53,739 |
|
|
70,212 |
|
|
— |
|
|
123,951 |
|
||||||
Operational expenses |
28,544 |
|
|
16,389 |
|
|
— |
|
|
44,933 |
|
||||||
Underwriting income (loss) |
$ |
152,379 |
|
|
$ |
1,749 |
|
|
$ |
(19 |
) |
|
154,109 |
|
|||
Net investment income |
|
|
|
|
82,094 |
|
|
82,094 |
|
||||||||
Net foreign exchange losses |
|
|
|
|
(2,846 |
) |
|
(2,846 |
) |
||||||||
Equity in earnings of other ventures |
|
|
|
|
4,661 |
|
|
4,661 |
|
||||||||
Other income |
|
|
|
|
3,171 |
|
|
3,171 |
|
||||||||
Net realized and unrealized gains on investments |
|
|
|
|
170,013 |
|
|
170,013 |
|
||||||||
Corporate expenses |
|
|
|
|
(38,789 |
) |
|
(38,789 |
) |
||||||||
Interest expense |
|
|
|
|
(11,754 |
) |
|
(11,754 |
) |
||||||||
Income before taxes and redeemable noncontrolling interests |
|
|
|
|
|
|
360,659 |
|
|||||||||
Income tax expense |
|
|
|
|
(7,531 |
) |
|
(7,531 |
) |
||||||||
Net income attributable to redeemable noncontrolling interests |
|
|
|
|
(70,222 |
) |
|
(70,222 |
) |
||||||||
Dividends on preference shares |
|
|
|
|
(9,189 |
) |
|
(9,189 |
) |
||||||||
Net income available to |
|
|
|
|
|
|
$ |
273,717 |
|
||||||||
|
|
|
|
|
|
|
|
||||||||||
Net claims and claim expenses incurred – current accident year |
$ |
54,206 |
|
|
$ |
177,135 |
|
|
$ |
— |
|
|
$ |
231,341 |
|
||
Net claims and claim expenses incurred – prior accident years |
1,877 |
|
|
(6,202 |
) |
|
19 |
|
|
(4,306 |
) |
||||||
Net claims and claim expenses incurred – total |
$ |
56,083 |
|
|
$ |
170,933 |
|
|
$ |
19 |
|
|
$ |
227,035 |
|
||
|
|
|
|
|
|
|
|
||||||||||
Net claims and claim expense ratio – current accident year |
18.6 |
% |
|
68.3 |
% |
|
|
|
42.1 |
% |
|||||||
Net claims and claim expense ratio – prior accident years |
0.7 |
% |
|
(2.4 |
)% |
|
|
|
(0.8 |
)% |
|||||||
Net claims and claim expense ratio – calendar year |
19.3 |
% |
|
65.9 |
% |
|
|
|
41.3 |
% |
|||||||
Underwriting expense ratio |
28.3 |
% |
|
33.4 |
% |
|
|
|
30.7 |
% |
|||||||
Combined ratio |
47.6 |
% |
|
99.3 |
% |
|
|
|
72.0 |
% |
|
|||||||||
Supplemental Financial Data - Gross Premiums Written |
|||||||||
(in thousands of United States Dollars) |
|||||||||
(Unaudited) |
|||||||||
|
|
||||||||
|
Three months ended |
||||||||
|
|
|
|
||||||
Property Segment |
|
|
|
||||||
Catastrophe |
$ |
936,190 |
|
|
$ |
845,213 |
|
||
Other property |
284,336 |
|
|
187,171 |
|
||||
Property segment gross premiums written |
$ |
1,220,526 |
|
|
$ |
1,032,384 |
|
||
|
|
|
|
||||||
Casualty and Specialty Segment |
|
|
|
||||||
General casualty (1) |
$ |
246,667 |
|
|
$ |
153,334 |
|
||
Professional liability (2) |
230,487 |
|
|
149,377 |
|
||||
Financial lines (3) |
147,079 |
|
|
127,356 |
|
||||
Other (4) |
180,962 |
|
|
101,844 |
|
||||
Casualty and Specialty segment gross premiums written |
$ |
805,195 |
|
|
$ |
531,911 |
|
(1) |
Includes automobile liability, casualty clash, employer’s liability, umbrella or excess casualty, workers’ compensation and general liability. |
|
(2) |
Includes directors and officers, medical malpractice, and professional indemnity. |
|
(3) |
Includes financial guaranty, mortgage guaranty, political risk, surety and trade credit. |
|
(4) |
Includes accident and health, agriculture, aviation, cyber, energy, marine, satellite and terrorism. Lines of business such as regional multi-line and whole account may have characteristics of various other classes of business, and are allocated accordingly. |
|
|||||||||
Supplemental Financial Data - Total Investment Result |
|||||||||
(in thousands of United States Dollars, except percentages) |
|||||||||
(Unaudited) |
|||||||||
|
|
|
|
||||||
|
Three months ended |
||||||||
|
|
|
|
||||||
Fixed maturity investments |
$ |
73,338 |
|
|
$ |
61,483 |
|
||
Short term investments |
12,092 |
|
|
11,844 |
|
||||
Equity investments trading |
1,551 |
|
|
1,027 |
|
||||
Other investments |
|
|
|
||||||
Catastrophe bonds |
14,139 |
|
|
8,691 |
|
||||
Other |
1,629 |
|
|
1,640 |
|
||||
Cash and cash equivalents |
1,504 |
|
|
1,517 |
|
||||
|
104,253 |
|
|
86,202 |
|
||||
Investment expenses |
(4,780 |
) |
|
(4,108 |
) |
||||
Net investment income |
99,473 |
|
|
82,094 |
|
||||
|
|
|
|
||||||
Gross realized gains |
68,847 |
|
|
24,373 |
|
||||
Gross realized losses |
(11,360 |
) |
|
(22,943 |
) |
||||
Net realized gains on fixed maturity investments |
57,487 |
|
|
1,430 |
|
||||
Net unrealized (losses) gains on fixed maturity investments trading |
(20,345 |
) |
|
103,922 |
|
||||
Net realized and unrealized gains on investments-related derivatives |
33,181 |
|
|
13,796 |
|
||||
Net realized losses on equity investments trading |
(15,047 |
) |
|
(1,161 |
) |
||||
Net unrealized (losses) gains on equity investments trading |
(105,937 |
) |
|
52,658 |
|
||||
Net realized and unrealized losses on other investments - catastrophe bonds |
(14,352 |
) |
|
(2,210 |
) |
||||
Net realized and unrealized (losses) gains on other investments - other |
(45,694 |
) |
|
1,578 |
|
||||
Net realized and unrealized (losses) gains on investments |
(110,707 |
) |
|
170,013 |
|
||||
Total investment result |
$ |
(11,234 |
) |
|
$ |
252,107 |
|
||
|
|
|
|
||||||
Total investment return - annualized |
(0.1 |
)% |
|
8.0 |
% |
Comments on Regulation G
In addition to the GAAP financial measures set forth in this Press Release, the Company has included certain non-GAAP financial measures within the meaning of Regulation
Operating (Loss) Income (Attributable) Available to RenaissanceRe Common Shareholders and Operating Return on Average Common Equity - Annualized
The Company uses “operating income available to
|
Three months ended |
||||||||
(in thousands of United States Dollars, except per share amounts and percentages) |
|
|
|
||||||
Net (loss) income (attributable) available to |
$ |
(81,974 |
) |
|
$ |
273,717 |
|
||
Adjustment for net realized and unrealized losses (gains) on investments, excluding net realized and unrealized losses (gains) on other investments - catastrophe bonds |
96,355 |
|
|
(172,223 |
) |
||||
Adjustment for net foreign exchange losses |
5,728 |
|
|
2,846 |
|
||||
Adjustment for transaction and integration expenses associated with the acquisition of TMR |
4,423 |
|
|
25,520 |
|
||||
Adjustment for income tax (benefit) expense (1) |
(4,141 |
) |
|
8,334 |
|
||||
Adjustment for net income attributable to redeemable noncontrolling interests (2) |
13,019 |
|
|
15,414 |
|
||||
Operating income available to |
$ |
33,410 |
|
|
$ |
153,608 |
|
||
|
|
|
|
||||||
Net (loss) income (attributable) available to |
$ |
(1.89 |
) |
|
$ |
6.43 |
|
||
Adjustment for net realized and unrealized losses (gains) on investments, excluding net realized and unrealized losses (gains) on other investments - catastrophe bonds |
2.22 |
|
|
(4.09 |
) |
||||
Adjustment for net foreign exchange losses |
0.13 |
|
|
0.07 |
|
||||
Adjustment for transaction and integration expenses associated with the acquisition of TMR |
0.10 |
|
|
0.61 |
|
||||
Adjustment for income tax (benefit) expense (1) |
(0.10 |
) |
|
0.20 |
|
||||
Adjustment for net income attributable to redeemable noncontrolling interests (2) |
0.30 |
|
|
0.37 |
|
||||
Operating income available to |
$ |
0.76 |
|
|
$ |
3.59 |
|
||
|
|
|
|
||||||
Return on average common equity - annualized |
(6.3 |
)% |
|
23.5 |
% |
||||
Adjustment for net realized and unrealized losses (gains) on investments, excluding net realized and unrealized losses (gains) on other investments - catastrophe bonds |
7.5 |
% |
|
(14.8 |
)% |
||||
Adjustment for net foreign exchange losses |
0.4 |
% |
|
0.2 |
% |
||||
Adjustment for transaction and integration expenses associated with the acquisition of TMR |
0.3 |
% |
|
2.2 |
% |
||||
Adjustment for income tax (benefit) expense (1) |
(0.3 |
)% |
|
0.7 |
% |
||||
Adjustment for net income attributable to redeemable noncontrolling interests (2) |
1.0 |
% |
|
1.3 |
% |
||||
Operating return on average common equity - annualized |
2.6 |
% |
|
13.1 |
% |
(1) Adjustment for income tax (benefit) expense represents the income tax benefit (expense) associated with the adjustments to net (loss) income (attributable) available to
(2) Adjustment for net income attributable to redeemable noncontrolling interests represents the portion attributable to the Company's redeemable noncontrolling interests associated with the adjustments to net (loss) income (attributable) available to
Tangible Book Value Per Common Share and Tangible Book Value Per Common Share Plus Accumulated Dividends
The Company has included in this Press Release “tangible book value per common share” and “tangible book value per common share plus accumulated dividends.” “Tangible book value per common share” is defined as book value per common share excluding goodwill and intangible assets per share. “Tangible book value per common share plus accumulated dividends” is defined as book value per common share excluding goodwill and intangible assets per share, plus accumulated dividends. The Company’s management believes “tangible book value per common share” and “tangible book value per common share plus accumulated dividends” are useful to investors because they provide a more accurate measure of the realizable value of shareholder returns, excluding the impact of goodwill and intangible assets. The following table is a reconciliation of book value per common share to “tangible book value per common share” and “tangible book value per common share plus accumulated dividends”.
|
At |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
Book value per common share |
$ |
117.15 |
|
|
$ |
120.53 |
|
|
$ |
120.07 |
|
|
$ |
119.17 |
|
|
$ |
111.05 |
|
||
Adjustment for goodwill and other intangibles (1) |
(6.46 |
) |
|
(6.50 |
) |
|
(6.55 |
) |
|
(6.60 |
) |
|
(6.66 |
) |
|||||||
Tangible book value per common share |
110.69 |
|
|
114.03 |
|
|
113.52 |
|
|
112.57 |
|
|
104.39 |
|
|||||||
Adjustment for accumulated dividends |
21.03 |
|
|
20.68 |
|
|
20.34 |
|
|
20.00 |
|
|
19.66 |
|
|||||||
Tangible book value per common share plus accumulated dividends |
$ |
131.72 |
|
|
$ |
134.71 |
|
|
$ |
133.86 |
|
|
$ |
132.57 |
|
|
$ |
124.05 |
|
||
|
|
|
|
|
|
|
|
|
|
||||||||||||
Quarterly change in book value per common share |
(2.8 |
)% |
|
0.4 |
% |
|
0.8 |
% |
|
7.3 |
% |
|
6.6 |
% |
|||||||
Quarterly change in tangible book value per common share plus change in accumulated dividends |
(2.6 |
)% |
|
0.7 |
% |
|
1.1 |
% |
|
8.2 |
% |
|
7.0 |
% |
|||||||
Year to date change in book value per common share |
(2.8 |
)% |
|
15.7 |
% |
|
15.3 |
% |
|
14.4 |
% |
|
6.6 |
% |
|||||||
Year to date change in tangible book value per common share plus change in accumulated dividends |
(2.6 |
)% |
|
17.9 |
% |
|
17.1 |
% |
|
15.7 |
% |
|
7.0 |
% |
(1) At
View source version on businesswire.com: https://www.businesswire.com/news/home/20200506006030/en/
INVESTOR CONTACT:
Senior Vice President, Finance & Investor Relations
(441) 239-4830
MEDIA CONTACT:
Vice President, Head of Global Marketing & Client
Communication
(441) 239-4932
or
Kekst CNC
(212) 521-4800
Source: