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News Details

RenaissanceRe Reports Operating Loss of $372 Million for 2004 Third Quarter as a Result of Hurricanes

October 27, 2004
Click here for a printable version of the release

PEMBROKE, Bermuda--(BUSINESS WIRE)--Oct. 27, 2004--RenaissanceRe Holdings Ltd. (NYSE: RNR)

  • Operating Loss of ($5.31) Per Common Share for the Third Quarter of 2004 vs. Operating Income per Common Share of $1.57 for the Third Quarter of 2003
  • $357 Million Net Loss for the Third Quarter of 2004; Net Loss of ($5.10) Per Common Share for the Third Quarter of 2004 vs. Net Income of $1.59 Per Common Share for the Third Quarter of 2003
  • Provides Earnings Guidance for 2005 of $6.30 to $6.70 Operating Income per Common Share

RenaissanceRe Holdings Ltd. (NYSE: RNR) today reported net operating loss attributable to common shareholders of $372 million for the third quarter of 2004, versus net operating income available to common shareholders of $112 million for the comparable period in 2003. Net operating income (loss) excludes net realized investment gains of $15 million and $1 million in the third quarters of 2004 and 2003, respectively. Net operating loss per common share was ($5.31) in the third quarter of 2004, compared to net operating income per common share of $1.57 per common share in the third quarter of 2003. Net loss attributable to common shareholders was $357 million or ($5.10) per common share in the quarter, compared to net income available to common shareholders of $113 million or $1.59 per common share for the same quarter of 2003. The net loss resulted primarily from the negative impact of $520 million sustained during the quarter from hurricanes Charley, Frances, Ivan and Jeanne.

James N. Stanard, Chairman and CEO, commented: "Our third quarter results were obviously dominated by the four large hurricanes. We have recorded a negative impact in the quarter from these events of $520 million, an increase from the $425 million that we had previously reported on a preliminary basis. We raised our estimates based on an increase in our assumption of total industry losses in the U.S. and Caribbean, to over $30 billion. Our results remain consistent with the assessment from our risk management system, and reflect our decision to have a relatively large share of the Florida market."

Mr. Stanard also stated: "For 2005, we are projecting operating EPS of $6.30 to $6.70, assuming normal loss activity. We project roughly flat premium in catastrophe and specialty reinsurance, excluding backup covers and reinstatements written in 2004. We continue to foresee strong growth in the Individual Risk unit of over 40% as we add additional program managers. Some of the growth that we had expected in Individual Risk in 2004 is now projected in 2005 due to later inceptions of two programs."

Mr. Stanard further stated, "In light of the catastrophe losses that we have sustained in this quarter, we have reduced our operating EPS guidance for 2004 to a range of $0.75 to $0.95 compared with our previous range of $6.95 to $7.25. These earnings estimates assume normal loss activity for the remainder of the year and include an expected benefit of $20 million as we begin to record the value of our Platinum warrant through our income statement in the fourth quarter, as required by generally accepted accounting principles."

THIRD QUARTER 2004 RESULTS:

Net Impact of Hurricanes

The Company has recorded a net negative impact of $520 million from hurricanes Charley, Frances, Ivan and Jeanne. This impact is reflected in the following items: net losses of $650 million, reinstatement premiums written of $20 million, minority interest offset of $123 million and profit commission impact of negative $13 million. These amounts are based on management's estimates following a review of our potential exposures and discussions with our counterparties. Given the magnitude of these loss events and due to delays in receiving claims data, these results are subject to change based on new or revised data received from our counterparties. In addition, the Company's 2005 earnings projection assumes no profit commission from DaVinci as a result of loss carryforwards resulting from the 2004 hurricane losses.

Premiums

Gross premiums written for the third quarter of 2004 were $273 million, compared to $313 million for the same quarter of 2003. Gross premiums written include $132 million attributable to the Company's Reinsurance segment in the third quarter of 2004, compared to $140 million in the comparable 2003 period; and $141 million attributable to the Company's Individual Risk segment in the third quarter of 2004, compared to $174 million for the same quarter of 2003. Gross premiums written include $20 million in reinstatement premiums and $27 million in premiums written for additional backup covers written in the Reinsurance segment as a result of the hurricanes occurring during the quarter. Net premiums written for the third quarter of 2004 were $219 million, compared to $237 million for the same quarter of 2003. Net premiums written include $113 million attributable to the Company's Reinsurance segment in the third quarter of 2004, compared to $113 million for the same quarter of 2003; and $106 million attributable to the Company's Individual Risk segment in the third quarter of 2004, compared to $124 million for the same quarter of 2003.

Net premiums earned for the third quarter of 2004 were $341 million, compared to $277 million for the same quarter of 2003. Net premiums earned include $257 million in net premiums earned for the Company's Reinsurance segment in the third quarter of 2004, compared to $196 million for the same quarter of 2003; and $84 million in net premiums earned for the Company's Individual Risk segment in the third quarter of 2004, compared to $82 million for the same quarter of 2003.

Premiums for the third quarter of 2004 include $10 million of gross premiums written, $25 million of net premiums written and $58 million of net premiums earned by the Company's consolidated joint venture, DaVinci during the third quarter of 2004, compared to $25 million of gross premiums written, $30 million of net premiums written and $50 million of net premiums earned by DaVinci during the third quarter of 2003. DaVinci gross premiums written included $3 million in reinstatement premiums and $3 million in premiums written for additional backup covers written as a result of the hurricanes occurring during the quarter.

Total managed cat premiums written, representing gross catastrophe premiums written by Renaissance Reinsurance and by related joint ventures, were $105 million for the third quarter of 2004, compared to $109 million for the same quarter of 2003. The decrease was primarily due to the previously disclosed timing differences which caused an increase in reinsurance premiums during the second quarter of 2004 and an offsetting decrease in premiums written during the current quarter. These decreases were partially offset by the reinstatement and other additional premiums arising as a result of the hurricane losses during the quarter. See the attached supplemental financial data for additional information regarding managed premiums.

Joint Venture Income (Loss)

During the quarter, we incurred a loss from the DaVinci joint venture and other activities of $44 million, compared to income of $33 million during the third quarter of 2003. Of this, $15 million reflects a loss from fees and profit commissions, compared to income from profit commissions of $19 million in the third quarter of 2003, and $23 million reflects equity in losses of unconsolidated ventures and DaVinci, versus $14 million of equity in earnings of unconsolidated ventures and DaVinci in the comparable quarter of 2003. The decrease in fees and profit commissions in the third quarter of 2004 is directly attributable to the hurricane losses recorded in the quarter. The reduction in equity in unconsolidated ventures reflects a loss on the DaVinci joint venture in the quarter which is also due to the hurricane losses, and which was partially offset by our first full quarter of recognition of income from Channel Re.

Underwriting Ratios, Reserve Development

For the third quarter of 2004, the Company generated a combined ratio of 240.9%, a loss ratio of 216.7% and an expense ratio of 24.2%, compared to a combined ratio, loss ratio and expense ratio of 61.7%, 34.9% and 26.8%, respectively, for the third quarter of 2003. For the quarter, the Company's Reinsurance segment generated a loss ratio of 222.2% and an expense ratio of 17.7%, compared to 28.9% and 20.2%, respectively, during the third quarter of 2003. For the quarter, the Company's Individual Risk segment generated a loss ratio of 199.8% and an expense ratio of 44.1%, compared to 49.3% and 42.3%, respectively, during the third quarter of 2003. The decrease in the third quarter 2004 expense ratio from the third quarter of 2003 was generated primarily by a reduction in compensation-related accruals.

Excluding a) the net claims associated with the four hurricanes, and b) premiums from related reinstatements, the combined ratio, loss ratio, and expense ratio would have been 49.4%, 27.6% and 21.8%, respectively, on a consolidated basis, comprised of a combined ratio of 31.9%, loss ratio of 17.2% and expense ratio of 14.7% for the Reinsurance segment and combined ratio of 88.6%, loss ratio of 51.0% and expense ratio of 37.6% for the Individual Risk segment.

During the quarter, the Company recorded favorable development on prior year reserves of $24 million or a benefit of 7.1 percentage points to the Company's quarterly loss ratio. The Company's Reinsurance segment contributed $16 million of favorable development, and the Company's Individual Risk segment contributed $8 million of favorable development. Net paid losses for the quarter were $173 million. See the attached supplemental financial data for additional information regarding claims and claim expenses incurred and loss ratios by segment.

Other Items

The increase in the loss on other items in the summary of income (loss) from joint venture relationships is primarily due to $6 million of losses from short positions in credit derivatives in the third quarter of 2004, compared to $1 million loss in the third quarter of 2003.

The Company's cash flows from operations were $230 million for the third quarter of 2004.

During the quarter, the Company increased the valuation allowance on its deferred tax asset to reflect a valuation allowance of 100% of the deferred tax asset, resulting in income tax expense of $4 million.

Shareholders' Equity

Shareholders' equity attributable to common shareholders was $2.0 billion at September 30, 2004, compared to $2.1 billion at December 31, 2003. Book value per common share at September 30, 2004 was $27.58 compared to $29.61 per common share at December 31, 2003.

This Press Release includes certain non-GAAP financial measures including "operating income," "operating EPS or operating income per common share," "annualized operating return on equity," "managed cat premium" and "summary of income from joint venture relationships." A reconciliation of such measures to the most comparable GAAP figures in accordance with Regulation G is presented in the attached supplemental financial data.

RenaissanceRe Holdings Ltd. will host a conference call on Thursday, October 28, 2004 at 8:00 a.m. (EST) to discuss this release. Live broadcast of the conference call will be available through the Investor Section of RenaissanceRe's website at www.renre.com.

RenaissanceRe Holdings Ltd. is a global provider of reinsurance and insurance. Our business consists of two segments: (1) Reinsurance, which includes catastrophe reinsurance, specialty reinsurance and certain joint ventures and other structured relationships managed by our subsidiary Renaissance Underwriting Managers, and (2) Individual Risk business, which includes primary insurance and quota share reinsurance.

Cautionary Statement under "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995: Statements made in this news release contain information about the Company's future business prospects. These statements may be considered "forward-looking." These statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements. For further information regarding cautionary statements and factors affecting future results, please refer to RenaissanceRe Holdings Ltd.'s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2003, and Forms 10-Q for the quarters ended March 31 and June 30, 2004.


             RenaissanceRe Holdings Ltd. and Subsidiaries
             Summary Consolidated Statements of Operations
              For the three and nine month periods ended
                      September 30, 2004 and 2003
   (in thousands of United States Dollars, except per share amounts)

                          Three months ended      Nine months ended
                         --------------------- -----------------------
                          September  September  September   September
                           30, 2004   30, 2003   30, 2004    30, 2003
                         ---------------------------------------------
                               (Unaudited)           (Unaudited)
Revenues
  Gross premiums written  $ 273,218  $313,317  $1,380,382  $1,211,044
                           =========  ========  ==========  ==========

  Net premiums written    $ 219,237  $236,570  $1,188,100  $  987,163
  Decrease (increase) in
   unearned premiums        121,610    40,794    (193,700)   (170,790)
                           ---------  --------  ----------  ----------
  Net premiums earned       340,847   277,364     994,400     816,373
  Net investment income      39,487    28,280     104,370      93,823
  Net foreign exchange
   gains (losses)            (1,839)      252       1,034      11,843
  Equity in earnings of
   unconsolidated
   ventures                   9,058     5,273      20,501      17,834
  Other income (loss)        (4,855)    2,706      (4,435)      2,888
  Net realized gains on
   investments               15,023     1,172      20,624      71,944
                           ---------  --------  ----------  ----------

  Total revenues            397,721   315,047   1,136,494   1,014,705
                           ---------  --------  ----------  ----------
Expenses
  Claims and claim
   expenses incurred        738,502    96,856     971,417     279,712
  Acquisition expenses       72,434    56,317     194,512     139,154
  Operational expenses       10,116    17,882      38,994      49,121
  Corporate expenses          4,520     4,456      14,058      12,601
  Interest expense            6,683     4,318      19,288      15,979
                           ---------  --------  ----------  ----------

  Total expenses            832,255   179,829   1,238,269     496,567
                           ---------  --------  ----------  ----------
Income (loss) before
 minority interests and
 taxes                     (434,534)  135,218    (101,775)    518,138
Minority interest -
 Capital Securities               -     1,827           -       3,282
Minority interest -
 DaVinciRe Holdings         (89,888)   15,211     (57,406)     56,246
                           ---------  --------  ----------  ----------
Income (loss) before
 taxes                     (344,646)  118,180     (44,369)    458,610
Income tax benefit
 (expense)                   (4,003)      (37)     (4,003)         18
                           ---------  --------  ----------  ----------

  Net income (loss)        (348,649)  118,143     (48,372)    458,628
Dividends on preference
 shares                       8,758     4,903      22,471      13,939
                           ---------  --------  ----------  ----------
  Net income (loss)
   available to common
   shareholders           $(357,407) $113,240  $  (70,843) $  444,689
                           =========  ========  ==========  ==========

Operating income (loss)
 per Common Share (1)(2)  $   (5.31) $   1.57  $    (1.31) $     5.25
Net income (loss) available
 to common shareholders
 per Common Share - basic $   (5.10) $   1.63  $    (1.02) $     6.45
Net income (loss) available
 to common shareholders
 per Common Share -
  diluted (2)             $   (5.10) $   1.59  $    (1.02) $     6.27

Average common shares
 outstanding - basic         70,098    69,307      69,735      68,938
Average common shares
 outstanding - diluted (2)   70,098    71,187      69,735      70,936

Claims and claim expense
 ratio                        216.7%     34.9%       97.7%       34.3%
Expense ratio                  24.2%     26.8%       23.5%       23.0%
                           ---------  --------  ----------  ----------
Combined ratio                240.9%     61.7%      121.2%       57.3%
                           =========  ========  ==========  ==========

Operating return on
 average common equity
 (annualized) (1)            (70.0%)     23.9%      (5.7%)       28.9%
                           =========  ========  ==========  ==========


(1) Excludes realized gains on investments (see comments on
Regulation G).

(2) In accordance with SFAS 128, EPS calculations utilize average
common shares outstanding - basic, when in a net loss position.



             RenaissanceRe Holdings Ltd. and Subsidiaries
                  Summary Consolidated Balance Sheets
   (in thousands of United States Dollars, except per share amounts)

                                                         At
                                               -----------------------
                                                September   December
                                                 30, 2004    31, 2003
                                               -----------------------
                                               (Unaudited)  (Audited)
Assets
Fixed maturity investments available for sale,
 at fair value                                 $3,389,065  $2,947,841
Short term investments                            697,380     660,564
Other investments                                 590,461     369,242
                                                ----------  ----------
       Total managed investment portfolio       4,676,906   3,977,647
Equity investments in reinsurance company,
 at fair value                                    139,712     145,535
Investments in other ventures, under equity
 method                                           150,551      41,130
                                                ----------  ----------
       Total investments                        4,967,169   4,164,312
Cash and cash equivalents                         139,337      63,397
Premiums receivable                               270,845     167,996
Ceded reinsurance balances                         95,798      56,852
Losses recoverable                                161,050     149,201
Accrued investment income                          26,252      22,793
Deferred acquisition costs                         97,756      75,261
Other assets                                       60,806      29,890
                                                ----------  ----------
     Total assets                              $5,819,013  $4,729,702
                                                ==========  ==========

Liabilities, Minority Interest and
 Shareholders' Equity
Liabilities
Reserve for claims and claim expenses          $1,736,058  $  977,892
Reserve for unearned premiums                     582,470     349,824
Debt                                              350,000     350,000
Subordinated obligation to capital trust          103,093     103,093
Reinsurance balances payable                      195,134     131,629
Other liabilities                                  84,269      52,123
                                                ----------  ----------
     Total liabilities                          3,051,024   1,964,561
                                                ----------  ----------

Minority interest - DaVinciRe Holdings            310,874     430,498
Shareholders' Equity
Preference shares                                 500,000     250,000
Common shares and additional paid-in capital      324,028     314,414
Accumulated other comprehensive income             87,357     113,382
Retained earnings                               1,545,730   1,656,847
                                                ----------  ----------

     Total shareholders' equity                 2,457,115   2,334,643
                                                ----------  ----------
     Total liabilities, minority interest,
      and shareholders' equity                 $5,819,013  $4,729,702
                                                ==========  ==========
Book value per common share                    $    27.58  $    29.61
                                                ==========  ==========
Common shares outstanding                          70,953      70,399
                                                ==========  ==========



             RenaissanceRe Holdings Ltd. and Subsidiaries
                      Supplemental Financial Data
                (in thousands of United States Dollars)

Segment Information
-------------------

----------------------------------------------------------------------

                             Three months ended September 30, 2004
                         ---------------------------------------------
                         Reinsurance  Individual   Other      Total
                                         Risk
                         ----------- ----------- --------- -----------

  Gross premiums written
   (1)                   $  132,191   $ 141,027  $      -  $  273,218
                          ==========   =========            ==========
  Net premiums written   $  113,244   $ 105,993         -  $  219,237
                          ==========   =========            ==========
  Net premiums earned    $  256,623   $  84,224         -  $  340,847
  Claims and claim
   expenses incurred        570,225     168,277         -     738,502
  Acquisition expenses       40,264      32,170         -      72,434
  Operational expenses        5,135       4,981         -      10,116
                          ----------   ---------  --------  ----------
  Underwriting loss      $ (359,001)  $(121,204)        -    (480,205)
                          ==========   =========
  Other items                                    $122,798     122,798
                                                  ========  ----------
  Net loss attributable to
   common shareholders                                     $ (357,407)
                                                            ==========


 Claims and claim
  expenses incurred -
  current accident year  $  586,436   $ 176,510            $  762,946
 Claims and claim
  expenses incurred -
  prior years               (16,211)     (8,233)              (24,444)
                          ----------   ---------            ----------
 Net claims and claim
  expenses incurred -
  total                  $  570,225   $ 168,277            $  738,502
                          ==========   =========            ==========

 Claims and claim expense
  ratio - accident year       228.5%      209.6%                223.8%
                          ==========   =========            ==========
 Claims and claim expense
  ratio - calendar year       222.2%      199.8%                216.7%
 Underwriting expense
  ratio                        17.7%       44.1%                 24.2%
                          ----------   ---------            ----------
 Combined ratio               239.9%      243.9%                240.9%
                          ==========   =========            ==========

(1) Reinsurance segment gross premiums written excludes $16.7 million
    of premiums ceded from the Individual Risk segment.

----------------------------------------------------------------------

----------------------------------------------------------------------

                             Three months ended September 30, 2003
                         ---------------------------------------------
                         Reinsurance  Individual   Other      Total
                                          Risk
                         ----------- ----------- --------- -----------

  Gross premiums written
   (1)                   $  139,645   $ 173,672  $      -  $  313,317
                          ==========   =========            ==========
  Net premiums written   $  113,032   $ 123,538         -  $  236,570
                          ==========   =========            ==========
  Net premiums earned    $  195,578   $  81,786         -  $  277,364
  Claims and claim
   expenses incurred         56,527      40,329         -      96,856
  Acquisition expenses       24,941      31,376         -      56,317
  Operational expenses       14,635       3,247         -      17,882
                          ----------   ---------  --------  ----------
  Underwriting income    $   99,475   $   6,834         -     106,309
                          ==========   =========
  Other items                                    $  6,931       6,931
                                                  ========  ----------
  Net income available to
   common shareholders                                     $  113,240
                                                            ==========


 Claims and claim
  expenses incurred -
  current accident year  $   69,229   $  53,165            $  122,394
 Claims and claim
  expenses incurred -
  prior years               (12,702)    (12,836)              (25,538)
                          ----------   ---------            ----------
 Net claims and claim
  expenses incurred -
  total                  $   56,527   $  40,329            $   96,856
                          ==========   =========            ==========

 Claims and claim expense
  ratio - accident year        35.4%       65.0%                 44.1%
                          ==========   =========            ==========
 Claims and claim expense
  ratio - calendar year        28.9%       49.3%                 34.9%
 Underwriting expense
  ratio                        20.2%       42.3%                 26.8%
                          ----------   ---------            ----------
 Combined ratio                49.1%       91.6%                 61.7%
                          ==========   =========            ==========

(1) Reinsurance segment gross premiums written excludes $18.5 million
of premiums ceded from the Individual Risk segment.

----------------------------------------------------------------------

----------------------------------------------------------------------

                             Nine months ended September 30, 2004
                         ---------------------------------------------
                         Reinsurance  Individual   Other      Total
                                         Risk
                         ----------- ----------- --------- -----------

  Gross premiums written
   (1)                   $1,007,825   $ 372,557  $      -  $1,380,382
                          ==========   =========            ==========
  Net premiums written   $  862,644   $ 325,456         -  $1,188,100
                          ==========   =========            ==========
  Net premiums earned    $  701,278   $ 293,122         -  $  994,400
  Claims and claim
   expenses incurred        693,780     277,637         -     971,417
  Acquisition expenses       92,011     102,501         -     194,512
  Operational expenses       21,885      17,109         -      38,994
                          ----------   ---------  --------  ----------
  Underwriting loss      $ (106,398)  $(104,125)        -    (210,523)
                          ==========   =========
  Other items                                    $139,680     139,680
                                                  ========  ----------
  Net loss attributable
   to common shareholders                                  $  (70,843)
                                                            ==========


 Claims and claim
  expenses incurred -
  current accident year  $  754,221   $ 293,027            $1,047,248
 Claims and claim
  expenses incurred -
  prior years               (60,441)    (15,390)              (75,831)
                          ----------   ---------            ----------
 Net claims and claim
  expenses incurred -
  total                  $  693,780   $ 277,637            $  971,417
                          ==========   =========            ==========

 Claims and claim expense
  ratio - accident year       107.5%      100.0%                105.3%
                          ==========   =========            ==========
 Claims and claim expense
  ratio - calendar year        98.9%       94.7%                 97.7%
 Underwriting expense
  ratio                        16.3%       40.8%                 23.5%
                          ----------   ---------            ----------
 Combined ratio               115.2%      135.5%                121.2%
                          ==========   =========            ==========

(1) Reinsurance segment gross premiums written excludes $17.4 million
of premiums ceded from the Individual Risk segment.

----------------------------------------------------------------------

----------------------------------------------------------------------

                             Nine months ended September 30, 2003
                         ---------------------------------------------
                         Reinsurance  Individual   Other      Total
                                          Risk
                         ----------- --------------------- -----------

  Gross premiums written
   (1)                   $  875,841   $ 335,203  $      -  $1,211,044
                          ==========   =========            ==========
  Net premiums written   $  736,309   $ 250,854         -  $  987,163
                          ==========   =========            ==========
  Net premiums earned    $  604,916   $ 211,457         -  $  816,373
  Claims and claim
   expenses incurred        174,523     105,189         -     279,712
  Acquisition expenses       70,018      69,136         -     139,154
  Operational expenses       39,826       9,295         -      49,121
                          ----------   ---------  --------  ----------
  Underwriting income    $  320,549   $  27,837         -     348,386
                          ==========   =========
  Other items                                    $ 96,303      96,303
                                                  ========  ----------
  Net income available to
   common shareholders                                     $  444,689
                                                            ==========


 Claims and claim
  expenses incurred -
  current accident year  $  205,013   $ 124,720            $  329,733
 Claims and claim
  expenses incurred -
  prior years               (30,490)    (19,531)              (50,021)
                          ----------   ---------            ----------
 Net claims and claim
  expenses incurred -
  total                  $  174,523   $ 105,189            $  279,712
                          ==========   =========            ==========

 Claims and claim expense
  ratio - accident year        33.9%       59.0%                 40.4%
                          ==========   =========            ==========
 Claims and claim expense
  ratio - calendar year        28.8%       49.7%                 34.3%
 Underwriting expense
  ratio                        18.2%       37.1%                 23.0%
                          ----------   ---------            ----------
 Combined ratio                47.0%       86.8%                 57.3%
                          ==========   =========            ==========

(1) Reinsurance segment gross premiums written excludes $24.2 million
of premiums ceded from the Individual Risk segment.



             RenaissanceRe Holdings Ltd. and Subsidiaries
                      Supplemental Financial Data
                (in thousands of United States Dollars)


 Gross Written Premiums     Three months ended     Nine months ended
 --------------------------------------------- -----------------------
                            September September  September  September
                            30, 2004  30, 2003   30, 2004    30, 2003
                           --------- --------- ----------- -----------

 Renaissance cat premium   $ 88,292  $ 84,780  $  507,833  $  457,710
 Renaissance specialty
  premium                    33,786    29,806     324,916     249,445
                            --------  --------  ----------  ----------
      Total Renaissance
       Reinsurance premium  122,078   114,586     832,749     707,155
                            --------  --------  ----------  ----------
 DaVinci cat premium (1)     10,548    22,735     143,629     145,953
 DaVinci specialty premium     (435)    2,324      31,447      22,733
                            --------  --------  ----------  ----------
      Total DaVinci
       Reinsurance premium   10,113    25,059     175,076     168,686
                            --------  --------  ----------  ----------
           Total
            Reinsurance
            premium         132,191   139,645   1,007,825     875,841
 Individual Risk premium
  (2)                       141,027   173,672     372,557     335,203
                            --------  --------  ----------  ----------
           Total premiums  $273,218  $313,317  $1,380,382  $1,211,044
                            ========  ========  ==========  ==========
 Total Managed Cat Premiums
  (3)                      $104,704  $109,285  $  721,597  $  677,794
                            ========  ========  ==========  ==========
 Total Managed Specialty
  Premiums                 $ 33,351  $ 32,130  $  356,363  $  272,178
                            ========  ========  ==========  ==========

(1) Excludes premium ceded to Renaissance of $nil for the three months
ended September 30, 2004 and $8.4 million for the nine months ended
September 30, 2004.

(2) Includes combined premium ceded to Renaissance and DaVinci of
$16.7 million and $18.5 million for the three months ended September
30, 2004 and 2003, respectively, and $17.4 million and $24.2 million
for the nine months ended September 30, 2003. Such amounts of premium
are excluded from the Renaissance and DaVinci premiums shown above.

(3) Total Managed Cat Premiums include Renaissance and DaVinci Cat
Premium, as above, and Cat Premium of $5.9 million and $1.8 million
for the three months ended September 30, 2004 and 2003, respectively,
and Cat premium of $70.1 million and $74.1 million for the nine months
ended September 30, 2004 and 2003, respectively, written on behalf of
our joint venture, Top Layer Re.

----------------------------------------------------------------------

----------------------------------------------------------------------

Other Income (Loss) and
Equity in Earnings (Losses)
of Unconsolidated Ventures  Three months ended     Nine months ended
--------------------------  ------------------    --------------------
                            September September  September  September
                            30, 2004  30, 2003   30, 2004    30, 2003
                           -------------------------------------------
 As Reported
 -----------
 Fee income                $  1,206  $  3,529  $    3,395  $    6,007
 Other items                 (6,061)     (823)     (7,830)     (3,119)
                            --------  --------  ----------  ----------
    Total other income
     (loss) - as reported    (4,855)    2,706      (4,435)      2,888
 Equity in earnings of
  unconsolidated ventures     9,058     5,273      20,501      17,834
                            --------  --------  ----------  ----------
    Total                  $  4,203  $  7,979  $   16,066  $   20,722
                            ========  ========  ==========  ==========

 Summary of other income and income
  (loss) from joint venture
  relationships (1)
 -----------------------------------
 Fee income (expense) (2)  $(14,628) $ 19,312  $   26,273  $   55,132
 Other items                 (6,061)     (823)     (7,830)     (3,119)
                            --------  --------  ----------  ----------
    Total other income
    (loss)                  (20,689)   18,489      18,443      52,013

 Equity in earnings
  (losses) of unconsolidated
  ventures and DaVinci      (23,150)   14,112       9,372      48,336
                            --------  --------  ----------  ----------
    Total                  $(43,839) $ 32,601  $   27,815  $  100,349
                            ========  ========  ==========  ==========

(1) Reported GAAP presentation adjusted to reflect:

    --  fee income and the Company's interest in DaVinci as if DaVinci
        were accounted for under the equity method.

    --  other fee income on managed cat business which is reflected on
        the income statement as a reduction of acquisition and
        operational expenses.

(2) Excludes fee income received on capital invested by RenaissanceRe
    Holdings.

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 in this Press Release within the meaning of Regulation G. The Company has consistently provided these financial measurements in previous investor communications and the Company's management believes that these measurements are important to investors and other interested persons, and that investors and such other persons benefit from having a consistent basis for comparison between quarters and for the comparison with other companies within the industry. These measures may not, however, be comparable to similarly titled measures used by companies outside of the insurance industry. Investors are cautioned not to place undue reliance on these non-GAAP measures in assessing the Company's overall financial performance.

The Company uses "operating income" as a measure to evaluate the underlying fundamentals of its operations and believes it to be a useful measure of its corporate performance. "Operating income" as used herein differs from "net income available to common shareholders", which the Company believes is the most directly comparable GAAP measure, by the exclusion of net realized gains and losses on investments. In addition, the Company's management believes that "operating income" is useful to investors because it more accurately measures and predicts the Company's results of operations by removing the variability arising from fluctuations in the Company's investment portfolio, which is not considered by management to be a relevant indicator of business operations. The Company also uses operating income to calculate operating income per common share and operating return on average common equity. The following is a reconciliation of 1) net income available to common shareholders to operating income; 2) net income available to common shareholders per common share to operating income per common share; and 3) return on average common equity to operating return on average common equity:

---------------------------------------------------------------------

                               Three months ended   Nine months ended
                              -------------------- -------------------
 (In thousands of U.S.        September  September September September
  dollars)                     30, 2004  30, 2003  30, 2004  30, 2003
                              --------- --------- ---------- ---------

 Net income (loss) available
  to common shareholders      $(357,407) $113,240  $(70,843) $444,689
   Adjustment for net realized
    gains on investments        (15,023)   (1,172)  (20,624)  (71,944)
                               ---------  --------  --------  --------
 Operating income (loss)      $(372,430) $112,068  $(91,467) $372,745
                               =========  ========  ========  ========


 Net income (loss) available
  to common shareholders per
  common share *              $   (5.10) $   1.59  $  (1.02) $   6.27
   Adjustment for net realized
    gains on investments *        (0.21)    (0.02)    (0.29)    (1.02)
                               ---------  --------  --------  --------
 Operating income (loss) per
  common share - diluted *    $   (5.31) $   1.57  $  (1.31) $   5.25
                               =========  ========  ========  ========


 Return on average common
  equity (annualized)            (67.2%)     24.1%    (4.4%)     34.5%
   Adjustment for net realized
    gains on investments          (2.8%)     (0.2%)   (1.3%)    (5.6%)
                               ---------  --------  --------  --------
 Operating return on average
  common equity (annualized)     (70.0%)     23.9%    (5.7%)     28.9%
                               =========  ========  ========  ========

* In accordance with SFAS 128, EPS calculations utilize average common
shares outstanding - basic, when in a net loss position.

While the Company provides herein estimates of operating income for 2005, the Company has not provided estimates of net income for such period as it believes it is unable to accurately predict future gains and losses on investments, which investment results could influence the Company's net income for this period.

The Company has also included in this Press Release "managed cat premium." "Managed cat premium" is defined as gross catastrophe premium written by Renaissance Reinsurance and its related joint ventures. "Managed cat premium" differs from total catastrophe premium, which the Company believes is the most directly comparable GAAP measure, due to the inclusion of catastrophe premium written on behalf of our joint venture Top Layer Re, which is accounted for under the equity method of accounting. Refer to supplemental financial data on gross written premiums.

The Company has also included in this Press Release "summary of income from joint venture relationships" which is a non-GAAP financial measure. The principal differences between "summary of income from joint venture relationships" and "other income and equity in earnings of unconsolidated ventures," which the Company believes is the most directly comparable GAAP measure, are that the results of DaVinci Reinsurance Ltd., a joint venture the financial results of which are consolidated in the Company's financial statements, are reflected in "summary of income from joint venture relationships" as if reported under the equity accounting method, and that this presentation also includes fees earned on certain quota share cessions of catastrophe business by the Company which are reflected on its income statement as a reduction of acquisition and operational expenses.

CONTACT: RenaissanceRe Holdings Ltd.
Investor Contact:
Martin J. Merritt, 441-299-7230
or
Kekst and Company
Media Contact:
David Lilly or Dawn Dover, 212-521-4800

SOURCE: RenaissanceRe Holdings Ltd.