UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event
reported): July 31, 2007
RenaissanceRe Holdings Ltd.
(Exact name of registrant as specified in its charter)
|
Bermuda |
34-0-26512 |
98-014-1974 |
|
(State or other jurisdiction |
(Commission File Number) |
(IRS Employer |
|
Renaissance House |
HM 19 |
|
(Address of principal executive offices) |
(Zip Code) |
Registrant's telephone number, including area code: (441) 295-4513
|
Not Applicable |
||
|
(Former name or former address, if changed since last report) |
||
|
|
|
|
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425
under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12
under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to
Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to
Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On July 31, 2007, RenaissanceRe Holdings Ltd. (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2007 and the availability of its corresponding financial supplement. Copies of the press release and the financial supplement are attached as Exhibit 99.1 and 99.2, respectively, to this Form 8-K. This Form 8-K and Exhibits 99.1 and 99.2 hereto are each being furnished to the Securities and Exchange Commission (the “SEC”) pursuant to Item 2.02 of Form 8-K and are therefore not to be considered “filed” with the SEC.
Item 9.01. Financial Statements and Exhibits.
(c)
Exhibits.
|
Exhibit # |
Description |
|
|
99.1* |
Copy of the Company’s press release, issued July 31, 2007 |
|
|
99.2* |
Copy of the Company’s Financial Supplement |
*
Exhibits 99.1 and 99.2 are being furnished to the SEC pursuant to Item 2.02 and are not being filed with the SEC. Therefore, these exhibits are not incorporated by reference in any of the registrant's other SEC filings.
- 2 -
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
RENAISSANCERE HOLDINGS LTD. |
||
|
Date: July 31, 2007 |
By: |
\s\ Fred R. Donner |
|
Name: Fred R. Donner Title: Executive Vice President and Chief Financial Officer |
||
INDEX TO EXHIBITS
|
Exhibit No. |
Description |
|
|
99.1* |
Copy of the Company’s press release, issued July 31, 2007 |
|
|
99.2* |
Copy of the Company’s Financial Supplement |
*
Exhibits 99.1 and 99.2 are being furnished to the SEC pursuant to Item 2.02 and are not being filed with the SEC. Therefore, these exhibits are not incorporated by reference in any of the registrant's other SEC filings.
RenaissanceRe Reports Operating Income of $194.7 Million for the Second Quarter of 2007 or $2.69 Per Common Share
Net Income of $183.2 Million for the Second Quarter of 2007 or $2.53 Per Common Share
Book Value Per Common Share Grows by 5.9% in the Second Quarter of 2007
Pembroke, Bermuda, July 31, 2007 — RenaissanceRe Holdings Ltd. (NYSE: RNR) today reported $194.7 million in second quarter operating income available to common shareholders compared to $154.8 million in the second quarter of 2006. Operating income excludes net realized investment losses of $11.6 million and $24.3 million in the second quarters of 2007 and 2006, respectively. Operating income per diluted common share was $2.69 in the second quarter of 2007, compared to $2.15 in the second quarter of 2006. Net income available to common shareholders was $183.2 million or $2.53 per diluted common share in the quarter, compared to net income available to common shareholders of $130.4 million or $1.81 per diluted common share for the same quarter of 2006.
Neill A. Currie, CEO, commented: “We are pleased to report another quarter of strong financial performance with an annualized operating ROE of over 28% and 5.9% growth in book value per share. We generated solid underwriting profits, despite the U.K. floods, achieved strong investment income and participated in the creation of another new fully-collateralized joint venture during the quarter, Starbound II, which helped bring additional capacity to our clients.”
Mr. Currie added: “Our focus is on underwriting as much attractive business as possible rather than trying to achieve premium volume targets. Through the first six months, we have written more property catastrophe reinsurance and less individual risk insurance than originally contemplated. I’m very pleased with the in-force portfolio of risks that our team has constructed.”
SECOND QUARTER 2007 RESULTS
Underwriting Results
Gross premiums written for the second quarter of 2007 were $845.9 million, a $103.3 million increase from the second quarter of 2006. As described in more detail below, the Company generated $133.6 million of underwriting income and had a combined ratio of 62.7% in the second quarter of 2007, compared to $120.0 million of underwriting income and a 72.2% combined ratio in the second quarter of 2006. The Company's underwriting results for the second quarter of 2007 were driven by an attractive market for the Company's core products and strong renewals and signings by the Company's reinsurance operating subsidiaries, including the inception of an assumed portfolio transfer of a personal lines property quota share reinsurance contract representing $75.4 million of gross premiums written within the Company's speciality unit. Offsetting the factors noted above were losses from flooding in the United Kingdom ("U.K.") and a softening market for other products offered by the Company, which resulted in the Company determining not to renew certain business. In addition, the Company experienced $59.1 million of favorable development on prior year reserves in the second quarter of 2007, compared to $11.3 million of favorable development in the second quarter of 2006.
Reinsurance Segment
Gross premiums written for the Company’s Reinsurance segment increased $43.9 million to $606.2 million in the second quarter of 2007, compared to $562.3 million in the second quarter of 2006. The increase in gross premiums written was primarily driven by the impact of an assumed portfolio transfer of a personal lines property quota share reinsurance contract which resulted in $75.4 million of gross premiums written in the quarter within the Company’s specialty unit. Also included in gross premiums written within the Reinsurance segment is $65.8 million of premium that was written on behalf of a new fully-collateralized joint venture, Starbound Reinsurance II Limited. (“Starbound
1
II”), in return for a profit commission and an expense override. The premium is ceded to this joint venture, and therefore, does not impact the Company’s net premiums written.
The Reinsurance segment generated $121.1 million of underwriting income and had a combined ratio of 46.5% in the second quarter of 2007, compared to $129.3 million of underwriting income and a combined ratio of 53.5% in the second quarter of 2006. Included in the Reinsurance segment underwriting results for the second quarter of 2007 are $53.0 million of net claims and claim expenses associated with the flooding that occurred in the U.K. in the second quarter of 2007. The Company currently estimates a net negative impact from this event of $41.4 million. Net negative impact includes the sum of net claims and claims expenses incurred and minority interest. The Reinsurance segment experienced $49.7 million of favorable development on prior year reserves or a decrease of 22.0 percentage points to the Company’s Reinsurance segment quarterly loss ratio in the second quarter of 2007, compared to $2.8 million of favorable development or a decrease of 1.0 percentage point to the Reinsurance segment quarterly loss ratio in the second quarter of 2006. The favorable development in the second quarter of 2007 was principally the result of lower than expected claims emergence.
Individual Risk
Gross premiums written for the Company’s Individual Risk segment increased $27.6 million to $238.4 million in the second quarter of 2007, compared to $210.8 million in the second quarter of 2006. The increase in gross premiums written was primarily due to an increase in the Company’s commercial multi-line premium.
The Individual Risk segment generated $12.5 million of underwriting income and had a combined ratio of 90.7% in the second quarter of 2007, compared to a $9.3 million underwriting loss and a 106.1% combined ratio in the second quarter of 2006. The increase in underwriting income in the second quarter of 2007 compared to the second quarter of 2006 was primarily due to a lower net claims and claim expense ratio and underwriting expense ratio. The Individual Risk segment experienced favorable development of $9.5 million and $8.5 million on prior year reserves in the second quarters of 2007 and 2006, respectively, principally attributable to lower than expected claims emergence.
Starbound II
During the second quarter of 2007, the Company participated in the establishment of a new fully-collateralized joint venture, Starbound II. Similar to Starbound Reinsurance Limited (“Starbound Re”) which was established in the second quarter of 2006, this joint venture enabled the Company to write additional property catastrophe excess of loss reinsurance business for the Company’s clients that it may not have otherwise written due to portfolio management or other considerations. The premium for this joint venture is reflected in gross and ceded premiums written, and therefore, has no impact on the Company’s net premiums written. The underwriting result on this business, net of a profit commission and expense override, accrues to the investors in the joint venture. The limit ceded to this joint venture, including any reinstatable limits, is fully-collateralized by highly-rated short term and fixed maturity investments as well as the premium receivable.
In conjunction with the Starbound II transaction, the Company made a $10.0 million equity investment in Starbound II, representing a 9.8% ownership interest. This equity investment is accounted for under the equity method of accounting.
Other Items
|
|
• |
Net investment income for the second quarter of 2007 was $118.1 million, compared to $74.0 million for the same quarter in 2006 as a result of strong returns from the Company's hedge fund and private equity investments and higher average invested assets in the Company’s portfolio of fixed maturity investments available for sale and short term investments. Other investments, which include the Company’s hedge fund and private equity investments, generated $41.6 million of net investment income in the second quarter of 2007 compared with $11.1 million in the second quarter of 2006. |
2
|
|
• |
During the second quarter of 2007, the Company incurred $12.1 million of other than temporary impairment charges on the Company’s fixed maturity investments available for sale, compared to $23.7 million in the second quarter of 2006. |
|
|
• |
The Company’s cash flows from operations were $190.7 million for the second quarter of 2007, compared to $237.4 million for the second quarter of 2006. |
PREMIUM FORECASTS
The Company is revising its annual premium forecasts. Previously, the Company was forecasting a 15% decline in its managed catastrophe premiums for the year. The Company now expects its managed catastrophe premiums for the year will decrease by approximately 5% from 2006. In addition, the Company now expects its specialty reinsurance premiums to grow by approximately 35% in 2007; the Company’s previous guidance was for its specialty reinsurance premiums to be essentially flat for the year. The Company now expects its Individual Risk premiums to be down by at least 10% in 2007; the Company’s previous guidance was for its Individual Risk premiums to be essentially flat for the year. The reduction in the Company’s expected decline in managed catastrophe premiums for 2007 is due to better than expected renewals during the second quarter of 2007. The increase in the Company’s specialty reinsurance premium forecast for 2007 is due principally to one large transaction that incepted in the second quarter of 2007. The decrease in the Company’s forecasted Individual Risk premium is due to softening market conditions.
3
This press release includes certain non-GAAP financial measures including “operating income”, “operating income per common share – diluted”, “operating return on average common equity - annualized” and “managed catastrophe premium”. A reconciliation of such measures to the most comparable GAAP figures in accordance with Regulation G is presented in the attached supplemental financial data.
Please refer to the Investors 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.
RenaissanceRe Holdings Ltd. will host a conference call on Wednesday, August 1, 2007 at 8:00 a.m. (ET) 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 investments managed by our subsidiary RenaissanceRe Ventures Ltd., and (2) Individual Risk, 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, 2006 and its quarterly report on Form 10-Q for the quarter ending March 31, 2007.
|
INVESTOR CONTACT: |
MEDIA CONTACT: |
4
RenaissanceRe Holdings Ltd. and Subsidiaries
Summary Consolidated Statements of Operations
For the three and six months ended June 30, 2007 and 2006
(in thousands of U.S. dollars, except per share amounts)
(Unaudited)
|
|
|
Three months ended |
|
Six months ended |
|
||||||||
|
|
|
June 30, 2007 |
|
June 30, 2006 |
|
June 30, 2007 |
|
June 30, 2006 |
|
||||
|
Revenues |
|
|
|
|
|
|
|
|
|
||||
|
Gross premiums written |
|
$ |
845,860 |
|
$ |
742,551 |
|
$ |
1,478,589 |
|
$ |
1,490,943 |
|
|
Net premiums written |
|
$ |
609,842 |
|
$ |
512,244 |
|
$ |
1,180,869 |
|
$ |
1,210,079 |
|
|
Increase in unearned premiums |
|
|
(251,388 |
) |
|
(81,303 |
) |
|
(459,797 |
) |
|
(427,466 |
) |
|
Net premiums earned |
|
|
358,454 |
|
|
430,941 |
|
|
721,072 |
|
|
782,613 |
|
|
Net investment income |
|
|
118,140 |
|
|
74,012 |
|
|
226,155 |
|
|
154,446 |
|
|
Net foreign exchange (losses) gains |
|
|
(373 |
) |
|
(2,441 |
) |
|
4,794 |
|
|
582 |
|
|
Equity in earnings of other ventures |
|
|
9,675 |
|
|
9,221 |
|
|
20,376 |
|
|
15,773 |
|
|
Other loss |
|
|
(5,498 |
) |
|
(84 |
) |
|
(7,701 |
) |
|
(1,763 |
) |
|
Net realized losses on investments |
|
|
(11,566 |
) |
|
(24,348 |
) |
|
(7,481 |
) |
|
(41,104 |
) |
|
Total revenues |
|
|
468,832 |
|
|
487,301 |
|
|
957,215 |
|
|
910,547 |
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expenses incurred |
|
|
138,854 |
|
|
207,336 |
|
|
284,846 |
|
|
306,514 |
|
|
Acquisition expenses |
|
|
59,509 |
|
|
74,597 |
|
|
123,238 |
|
|
143,411 |
|
|
Operational expenses |
|
|
26,527 |
|
|
29,056 |
|
|
55,051 |
|
|
49,987 |
|
|
Corporate expenses |
|
|
4,927 |
|
|
5,571 |
|
|
11,931 |
|
|
11,310 |
|
|
Interest expense |
|
|
7,195 |
|
|
10,370 |
|
|
19,174 |
|
|
19,671 |
|
|
Total expenses |
|
|
237,012 |
|
|
326,930 |
|
|
494,240 |
|
|
530,893 |
|
|
Income before minority interest and taxes |
|
|
231,820 |
|
|
160,371 |
|
|
462,975 |
|
|
379,654 |
|
|
Minority interest - DaVinciRe |
|
|
(37,399 |
) |
|
(21,207 |
) |
|
(66,506 |
) |
|
(52,664 |
) |
|
Income before taxes |
|
|
194,421 |
|
|
139,164 |
|
|
396,469 |
|
|
326,990 |
|
|
Income tax expense |
|
|
(680 |
) |
|
(94 |
) |
|
(787 |
) |
|
(277 |
) |
|
Net income |
|
|
193,741 |
|
|
139,070 |
|
|
395,682 |
|
|
326,713 |
|
|
Dividends on preference shares |
|
|
(10,575 |
) |
|
(8,662 |
) |
|
(21,711 |
) |
|
(17,325 |
) |
|
Net income available to common shareholders |
|
$ |
183,166 |
|
$ |
130,408 |
|
$ |
373,971 |
|
$ |
309,388 |
|
|
Operating income available to common shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
per Common Share - diluted (1) |
|
$ |
2.69 |
|
$ |
2.15 |
|
$ |
5.26 |
|
$ |
4.88 |
|
|
Net income available to common shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
per Common Share - basic |
|
$ |
2.57 |
|
$ |
1.84 |
|
$ |
5.25 |
|
$ |
4.36 |
|
|
Net income available to common shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
per Common Share - diluted |
|
$ |
2.53 |
|
$ |
1.81 |
|
$ |
5.16 |
|
$ |
4.31 |
|
|
Average shares outstanding - basic |
|
|
71,259 |
|
|
71,049 |
|
|
71,270 |
|
|
70,992 |
|
|
Average shares outstanding - diluted |
|
|
72,430 |
|
|
71,926 |
|
|
72,472 |
|
|
71,856 |
|
|
Net claims and claim expense ratio |
|
|
38.7 |
% |
|
48.1 |
% |
|
39.5 |
% |
|
39.2 |
% |
|
Underwriting expense ratio |
|
|
24.0 |
% |
|
24.1 |
% |
|
24.7 |
% |
|
24.7 |
% |
|
Combined ratio |
|
|
62.7 |
% |
|
72.2 |
% |
|
64.2 |
% |
|
63.9 |
% |
|
Operating return on average common equity - annualized (1) |
|
|
28.5 |
% |
|
31.3 |
% |
|
28.8 |
% |
|
36.8 |
% |
|
(1) Excludes net realized losses on investments (see - “Comments on Regulation G”) |
5
RenaissanceRe Holdings Ltd. and Subsidiaries
Summary Consolidated Balance Sheets
(in thousands of U.S. dollars, except per share amounts)
|
|
|
At |
|
||||
|
|
|
June 30, 2007 |
|
December 31, 2006 |
|
||
|
|
|
(Unaudited) |
|
(Audited) |
|
||
|
Assets |
|
|
|
|
|
|
|
|
Fixed maturity investments available for sale, at fair value |
|
$ |
3,179,189 |
|
$ |
3,111,930 |
|
|
Short term investments, at cost |
|
|
2,268,172 |
|
|
2,410,971 |
|
|
Other investments, at fair value |
|
|
661,709 |
|
|
592,829 |
|
|
Investments in other ventures, under equity method |
|
|
235,371 |
|
|
227,075 |
|
|
Total investments |
|
|
6,344,441 |
|
|
6,342,805 |
|
|
Cash and cash equivalents |
|
|
266,455 |
|
|
214,399 |
|
|
Premiums receivable |
|
|
927,657 |
|
|
419,150 |
|
|
Ceded reinsurance balances |
|
|
241,488 |
|
|
133,971 |
|
|
Losses recoverable |
|
|
236,990 |
|
|
301,854 |
|
|
Accrued investment income |
|
|
41,824 |
|
|
41,234 |
|
|
Deferred acquisition costs |
|
|
171,931 |
|
|
106,918 |
|
|
Receivable for investments sold |
|
|
248,406 |
|
|
61,061 |
|
|
Other assets |
|
|
134,190 |
|
|
147,634 |
|
|
Total assets |
|
$ |
8,613,382 |
|
$ |
7,769,026 |
|
|
Liabilities, Minority Interest and Shareholders’ Equity |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Reserve for claims and claim expenses |
|
$ |
2,128,216 |
|
$ |
2,098,155 |
|
|
Reserve for unearned premiums |
|
|
1,145,739 |
|
|
578,424 |
|
|
Debt |
|
|
450,000 |
|
|
450,000 |
|
|
Subordinated obligation to capital trust |
|
|
— |
|
|
103,093 |
|
|
Reinsurance balances payable |
|
|
344,945 |
|
|
395,083 |
|
|
Payable for investments purchased |
|
|
255,852 |
|
|
88,089 |
|
|
Other liabilities |
|
|
114,406 |
|
|
125,401 |
|
|
Total liabilities |
|
|
4,439,158 |
|
|
3,838,245 |
|
|
Minority interest - DaVinciRe |
|
|
714,186 |
|
|
650,284 |
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
|
Preference shares |
|
|
650,000 |
|
|
800,000 |
|
|
Common shares |
|
|
72,266 |
|
|
72,140 |
|
|
Additional paid-in capital |
|
|
283,693 |
|
|
284,123 |
|
|
Accumulated other comprehensive income |
|
|
12,939 |
|
|
25,217 |
|
|
Retained earnings |
|
|
2,441,140 |
|
|
2,099,017 |
|
|
Total shareholders’ equity |
|
|
3,460,038 |
|
|
3,280,497 |
|
|
Total liabilities, minority interest and shareholders’ equity |
|
$ |
8,613,382 |
|
$ |
7,769,026 |
|
|
Book value per common share |
|
$ |
38.88 |
|
$ |
34.38 |
|
|
Common shares outstanding |
|
|
72,266 |
|
|
72,140 |
|
6
RenaissanceRe Holdings Ltd. and Subsidiaries
Unaudited Supplemental Financial Data - Segment Information
(in thousands of U.S. dollars)
|
|
|
Three months ended June 30, 2007 |
|
||||||||||||||||||
|
|
|
Reinsurance |
|
|
Individual Risk |
|
|
Eliminations (1) |
|
|
Other |
|
|
Total |
|
|
|||||
|
Gross premiums written |
|
$ |
606,215 |
|
|
$ |
238,391 |
|
|
$ |
1,254 |
|
|
$ |
— |
|
|
$ |
845,860 |
|
|
|
Net premiums written |
|
$ |
428,355 |
|
|
$ |
181,487 |
|
|
|
|
|
|
|
— |
|
|
$ |
609,842 |
|
|
|
Net premiums earned |
|
$ |
225,987 |
|
|
$ |
132,467 |
|
|
|
|
|
|
|
— |
|
|
$ |
358,454 |
|
|
|
Net claims and claim expenses incurred |
|
|
62,528 |
|
|
|
76,326 |
|
|
|
|
|
|
|
— |
|
|
|
138,854 |
|
|
|
Acquisition expenses |
|
|
25,927 |
|
|
|
33,582 |
|
|
|
|
|
|
|
— |
|
|
|
59,509 |
|
|
|
Operational expenses |
|
|
16,451 |
|
|
|
10,076 |
|
|
|
|
|
|
|
— |
|
|
|
26,527 |
|
|
|
Underwriting income |
|
$ |
121,081 |
|
|
$ |
12,483 |
|
|
|
|
|
|
|
— |
|
|
|
133,564 |
|
|
|
Net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
118,140 |
|
|
|
118,140 |
|
|
|
Equity in earnings of other ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,675 |
|
|
|
9,675 |
|
|
|
Other loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,498 |
) |
|
|
(5,498 |
) |
|
|
Interest and preference share dividends |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(17,770 |
) |
|
|
(17,770 |
) |
|
|
Minority interest - DaVinciRe |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(37,399 |
) |
|
|
(37,399 |
) |
|
|
Other items, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,980 |
) |
|
|
(5,980 |
) |
|
|
Net realized losses on investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(11,566 |
) |
|
|
(11,566 |
) |
|
|
Net income available to common shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
49,602 |
|
|
$ |
183,166 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expenses incurred - current accident year |
|
$ |
112,208 |
|
|
$ |
85,793 |
|
|
|
|
|
|
|
|
|
|
$ |
198,001 |
|
|
|
Net claims and claim expenses incurred - prior accident years |
|
|
(49,680 |
) |
|
|
(9,467 |
) |
|
|
|
|
|
|
|
|
|
|
(59,147 |
) |
|
|
Net claims and claim expenses incurred - total |
|
$ |
62,528 |
|
|
$ |
76,326 |
|
|
|
|
|
|
|
|
|
|
$ |
138,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expense ratio - current accident year |
|
|
49.7 |
% |
|
|
64.8 |
% |
|
|
|
|
|
|
|
|
|
|
55.2 |
% |
|
|
Net claims and claim expense ratio - prior accident years |
|
|
(22.0 |
%) |
|
|
(7.1 |
%) |
|
|
|
|
|
|
|
|
|
|
(16.5 |
%) |
|
|
Net claims and claim expense ratio - calendar year |
|
|
27.7 |
% |
|
|
57.7 |
% |
|
|
|
|
|
|
|
|
|
|
38.7 |
% |
|
|
Underwriting expense ratio |
|
|
18.8 |
% |
|
|
33.0 |
% |
|
|
|
|
|
|
|
|
|
|
24.0 |
% |
|
|
Combined ratio |
|
|
46.5 |
% |
|
|
90.7 |
% |
|
|
|
|
|
|
|
|
|
|
62.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Represents gross premiums ceded from the Individual Risk segment to the Reinsurance segment. |
|
|
|
Three months ended June 30, 2006 |
|
||||||||||||||||||
|
|
|
Reinsurance |
|
Individual Risk |
|
Eliminations (1) |
|
Other |
|
Total |
|
||||||||||
|
Gross premiums written |
|
$ |
562,325 |
|
|
$ |
210,829 |
|
|
$ |
(30,603 |
) |
|
$ |
— |
|
|
$ |
742,551 |
|
|
|
Net premiums written |
|
$ |
361,558 |
|
|
$ |
150,686 |
|
|
|
|
|
|
|
— |
|
|
$ |
512,244 |
|
|
|
Net premiums earned |
|
$ |
278,061 |
|
|
$ |
152,880 |
|
|
|
|
|
|
|
— |
|
|
$ |
430,941 |
|
|
|
Net claims and claim expenses incurred |
|
|
97,945 |
|
|
|
109,391 |
|
|
|
|
|
|
|
— |
|
|
|
207,336 |
|
|
|
Acquisition expenses |
|
|
31,091 |
|
|
|
43,506 |
|
|
|
|
|
|
|
— |
|
|
|
74,597 |
|
|
|
Operational expenses |
|
|
19,763 |
|
|
|
9,293 |
|
|
|
|
|
|
|
— |
|
|
|
29,056 |
|
|
|
Underwriting income (loss) |
|
$ |
129,262 |
|
|
$ |
(9,310 |
) |
|
|
|
|
|
|
— |
|
|
|
119,952 |
|
|
|
Net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
74,012 |
|
|
|
74,012 |
|
|
|
Equity in earnings of other ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,221 |
|
|
|
9,221 |
|
|
|
Other loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(84 |
) |
|
|
(84 |
) |
|
|
Interest and preference share dividends |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(19,032 |
) |
|
|
(19,032 |
) |
|
|
Minority interest - DaVinciRe |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(21,207 |
) |
|
|
(21,207 |
) |
|
|
Other items, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8,106 |
) |
|
|
(8,106 |
) |
|
|
Net realized losses on investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(24,348 |
) |
|
|
(24,348 |
) |
|
|
Net income available to common shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
10,456 |
|
|
$ |
130,408 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expenses incurred - current accident year |
|
$ |
100,776 |
|
|
$ |
117,892 |
|
|
|
|
|
|
|
|
|
|
$ |
218,668 |
|
|
|
Net claims and claim expenses incurred - prior accident years |
|
|
(2,831 |
) |
|
|
(8,501 |
) |
|
|
|
|
|
|
|
|
|
|
(11,332 |
) |
|
|
Net claims and claim expenses incurred - total |
|
$ |
97,945 |
|
|
$ |
109,391 |
|
|
|
|
|
|
|
|
|
|
$ |
207,336 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expense ratio - current accident year |
|
|
36.2 |
% |
|
|
77.1 |
% |
|
|
|
|
|
|
|
|
|
|
50.7 |
% |
|
|
Net claims and claim expense ratio - prior accident years |
|
|
(1.0 |
%) |
|
|
(5.5 |
%) |
|
|
|
|
|
|
|
|
|
|
(2.6 |
%) |
|
|
Net claims and claim expense ratio - calendar year |
|
|
35.2 |
% |
|
|
71.6 |
% |
|
|
|
|
|
|
|
|
|
|
48.1 |
% |
|
|
Underwriting expense ratio |
|
|
18.3 |
% |
|
|
34.5 |
% |
|
|
|
|
|
|
|
|
|
|
24.1 |
% |
|
|
Combined ratio |
|
|
53.5 |
% |
|
|
106.1 |
% |
|
|
|
|
|
|
|
|
|
|
72.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Represents gross premiums ceded from the Individual Risk segment to the Reinsurance segment. |
7
RenaissanceRe Holdings Ltd. and Subsidiaries
Unaudited Supplemental Financial Data - Segment Information (cont’d.)
(in thousands of United States Dollars)
|
|
|
|
Six months ended June 30, 2007 |
|
||||||||||||
|
Reinsurance |
Individual Risk |
Eliminations (1) |
Other |
Total |
||||||||||||
|
Gross premiums written |
|
$ |
1,122,182 |
|
$ |
361,707 |
|
$ |
(5,300 |
) |
$ |
— |
|
$ |
1,478,589 |
|
|
Net premiums written |
|
$ |
904,574 |
|
$ |
276,295 |
|
|
|
|
|
— |
|
$ |
1,180,869 |
|
|
Net premiums earned |
|
$ |
480,766 |
|
$ |
240,306 |
|
|
|
|
|
— |
|
$ |
721,072 |
|
|
Net claims and claim expenses incurred |
|
|
154,655 |
|
|
130,191 |
|
|
|
|
|
— |
|
|
284,846 |
|
|
Acquisition expenses |
|
|
54,289 |
|
|
68,949 |
|
|
|
|
|
— |
|
|
123,238 |
|
|
Operational expenses |
|
|
34,642 |
|
|
20,409 |
|
|
|
|
|
— |
|
|
55,051 |
|
|
Underwriting income |
|
$ |
237,180 |
|
$ |
20,757 |
|
|
|
|
|
— |
|
|
257,937 |
|
|
Net investment income |
|
|
|
|
|
|
|
|
|
|
|
226,155 |
|
|
226,155 |
|
|
Equity in earnings of other ventures |
|
|
|
|
|
|
|
|
|
|
|
20,376 |
|
|
20,376 |
|
|
Other loss |
|
|
|
|
|
|
|
|
|
|
|
(7,701 |
) |
|
(7,701 |
) |
|
Interest and preference share dividends |
|
|
|
|
|
|
|
|
|
|
|
(40,885 |
) |
|
(40,885 |
) |
|
Minority interest - DaVinciRe |
|
|
|
|
|
|
|
|
|
|
|
(66,506 |
) |
|
(66,506 |
) |
|
Other items, net |
|
|
|
|
|
|
|
|
|
|
|
(7,924 |
) |
|
(7,924 |
) |
|
Net realized losses on investments |
|
|
|
|
|
|
|
|
|
|
|
(7,481 |
) |
|
(7,481 |
) |
|
Net income available to common shareholders |
|
|
|
|
|
|
|
|
|
|
$ |
116,034 |
|
$ |
373,971 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expenses incurred - current accident year |
|
$ |
234,614 |
|
$ |
156,452 |
|
|
|
|
|
|
|
$ |
391,066 |
|
|
Net claims and claim expenses incurred - prior accident years |
|
|
(79,959 |
) |
|
(26,261 |
) |
|
|
|
|
|
|
|
(106,220 |
) |
|
Net claims and claim expenses incurred - total |
|
$ |
154,655 |
|
$ |
130,191 |
|
|
|
|
|
|
|
$ |
284,846 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expense ratio - current accident year |
|
|
48.8 |
% |
|
65.1 |
% |
|
|
|
|
|
|
|
54.2 |
% |
|
Net claims and claim expense ratio - prior accident years |
|
|
(16.6 |
%) |
|
(10.9 |
%) |
|
|
|
|
|
|
|
(14.7 |
%) |
|
Net claims and claim expense ratio - calendar year |
|
|
32.2 |
% |
|
54.2 |
% |
|
|
|
|
|
|
|
39.5 |
% |
|
Underwriting expense ratio |
|
|
18.5 |
% |
|
37.2 |
% |
|
|
|
|
|
|
|
24.7 |
% |
|
Combined ratio |
|
|
50.7 |
% |
|
91.4 |
% |
|
|
|
|
|
|
|
64.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Represents gross premiums ceded from the Individual Risk segment to the Reinsurance segment.
|
|
|
|
Six months ended June 30, 2006 |
|
||||||||||||
|
Reinsurance |
Individual Risk |
Eliminations (1) |
Other |
Total |
||||||||||||
|
Gross premiums written |
|
$ |
1,146,099 |
|
$ |
381,553 |
|
$ |
(36,709 |
) |
$ |
— |
|
$ |
1,490,943 |
|
|
Net premiums written |
|
$ |
910,015 |
|
$ |
300,064 |
|
|
|
|
|
— |
|
$ |
1,210,079 |
|
|
Net premiums earned |
|
$ |
491,434 |
|
$ |
291,179 |
|
|
|
|
|
— |
|
$ |
782,613 |
|
|
Net claims and claim expenses incurred |
|
|
134,625 |
|
|
171,889 |
|
|
|
|
|
— |
|
|
306,514 |
|
|
Acquisition expenses |
|
|
59,597 |
|
|
83,814 |
|
|
|
|
|
— |
|
|
143,411 |
|
|
Operational expenses |
|
|
32,307 |
|
|
17,680 |
|
|
|
|
|
— |
|
|
49,987 |
|
|
Underwriting income |
|
$ |
264,905 |
|
$ |
17,796 |
|
|
|
|
|
— |
|
|
282,701 |
|
|
Net investment income |
|
|
|
|
|
|
|
|
|
|
|
154,446 |
|
|
154,446 |
|
|
Equity in earnings of other ventures |
|
|
|
|
|
|
|
|
|
|
|
15,773 |
|
|
15,773 |
|
|
Other loss |
|
|
|
|
|
|
|
|
|
|
|
(1,763 |
) |
|
(1,763 |
) |
|
Interest and preference share dividends |
|
|
|
|
|
|
|
|
|
|
|
(36,996 |
) |
|
(36,996 |
) |
|
Minority interest - DaVinciRe |
|
|
|
|
|
|
|
|
|
|
|
(52,664 |
) |
|
(52,664 |
) |
|
Other items, net |
|
|
|
|
|
|
|
|
|
|
|
(11,005 |
) |
|
(11,005 |
) |
|
Net realized losses on investments |
|
|
|
|
|
|
|
|
|
|
|
(41,104 |
) |
|
(41,104 |
) |
|
Net income available to common shareholders |
|
|
|
|
|
|
|
|
|
|
$ |
26,687 |
|
$ |
309,388 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expenses incurred - current accident year |
|
$ |
176,489 |
|
$ |
183,259 |
|
|
|
|
|
|
|
$ |
359,748 |
|
|
Net claims and claim expenses incurred - prior accident years |
|
|
(41,864 |
) |
|
(11,370 |
) |
|
|
|
|
|
|
|
(53,234 |
) |
|
Net claims and claim expenses incurred - total |
|
$ |
134,625 |
|
$ |
171,889 |
|
|
|
|
|
|
|
$ |
306,514 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expense ratio - current accident year |
|
|
35.9 |
% |
|
62.9 |
% |
|
|
|
|
|
|
|
46.0 |
% |
|
Net claims and claim expense ratio - prior accident years |
|
|
(8.5 |
%) |
|
(3.9 |
%) |
|
|
|
|
|
|
|
(6.8 |
%) |
|
Net claims and claim expense ratio - calendar year |
|
|
27.4 |
% |
|
59.0 |
% |
|
|
|
|
|
|
|
39.2 |
% |
|
Underwriting expense ratio |
|
|
18.7 |
% |
|
34.9 |
% |
|
|
|
|
|
|
|
24.7 |
% |
|
Combined ratio |
|
|
46.1 |
% |
|
93.9 |
% |
|
|
|
|
|
|
|
63.9 |
% |
|
(1) |
Represents gross premiums ceded from the Individual Risk segment to the Reinsurance segment. |
8
RenaissanceRe Holdings Ltd. and Subsidiaries
Unaudited Supplemental Financial Data
(in thousands of U.S. dollars)
|
|
|
Three months ended |
|
Six months ended |
|
|||||||||
|
Reinsurance Segment |
|
June 30, 2007 |
|
June 30, 2006 |
|
June 30, 2007 |
|
June 30, 2006 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Renaissance catastrophe premiums |
|
$ |
340,913 |
|
$ |
377,063 |
|
$ |
580,940 |
|
$ |
660,859 |
|
|
|
Renaissance specialty premiums |
|
|
93,258 |
|
|
27,736 |
|
|
200,848 |
|
|
149,580 |
|
|
|
Total Renaissance premiums |
|
|
434,171 |
|
|
404,799 |
|
|
781,788 |
|
|
810,439 |
|
|
|
DaVinci catastrophe premiums |
|
|
171,915 |
|
|
155,430 |
|
|
330,852 |
|
|
312,344 |
|
|
|
DaVinci specialty premiums |
|
|
129 |
|
|
2,096 |
|
|
9,542 |
|
|
23,316 |
|
|
|
Total DaVinci premiums |
|
|
172,044 |
|
|
157,526 |
|
|
340,394 |
|
|
335,660 |
|
|
|
Total Reinsurance premiums |
|
$ |
606,215 |
|
$ |
562,325 |
|
$ |
1,122,182 |
|
$ |
1,146,099 |
|
|
|
Total specialty premiums |
|
$ |
93,387 |
|
$ |
29,832 |
|
$ |
210,390 |
|
$ |
172,896 |
|
|
|
Total catastrophe premiums |
|
$ |
512,828 |
|
$ |
532,493 |
|
$ |
911,792 |
|
$ |
973,203 |
|
|
|
Catastrophe premiums written on behalf of our joint venture, Top Layer Re (1) |
|
|
26,822 |
|
|
24,270 |
|
|
63,725 |
|
|
50,055 |
|
|
|
Catastrophe premiums assumed from the Individual Risk segment |
|
|
1,254 |
|
|
(28,990 |
) |
|
(5,300 |
) |
|
(35,096 |
) |
|
|
Total managed catastrophe premiums (2) |
|
|
540,904 |
|
|
527,773 |
|
|
970,217 |
|
|
988,162 |
|
|
|
Managed premiums assumed for fully-collateralized joint ventures |
|
|
(65,798 |
) |
|
(111,253 |
) |
|
(59,363 |
) |
|
(111,253 |
) |
|
|
Total managed catastrophe premiums, net of fully-collateralized joint ventures (2) |
|
$ |
475,106 |
|
$ |
416,520 |
|
$ |
910,854 |
|
$ |
876,909 |
|
|
|
(1) Top Layer Re is accounted for under the equity method of accounting. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) See Comments on Regulation G. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|||||||||
|
Individual Risk Segment |
|
June 30, 2007 |
|
June 30, 2006 |
|
June 30, 2007 |
|
June 30, 2006 |
|
|||||
|
Commercial multi-line |
|
$ |
161,125 |
|
$ |
137,162 |
|
$ |
220,266 |
|
$ |
203,989 |
|
|
|
Commercial property |
|
|
75,013 |
|
|
78,407 |
|
|
117,518 |
|
|
132,409 |
|
|
|
Personal lines property |
|
|
2,253 |
|
|
(4,740 |
) |
|
23,923 |
|
|
45,155 |
|
|
|
Total Individual Risk premiums |
|
$ |
238,391 |
|
$ |
210,829 |
|
$ |
361,707 |
|
$ |
381,553 |
|
|
9
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 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 – diluted” and “operating return on average common equity – annualized.” The following is a reconciliation of: 1) net income available to common shareholders to operating income available to common shareholders; 2) net income available to common shareholders per common share – diluted to operating income available to common shareholders per common share – diluted; and 3) return on average common equity – annualized to operating return on average common equity – annualized:
|
|
|
Three months ended |
|
Six months ended |
|
||||||||||||
|
(In thousands of U.S. dollars, except for per share amounts) |
|
June 30, 2007 |
|
June 30, 2006 |
|
June 30, 2007 |
|
June 30, 2006 |
|
||||||||
|
Net income available to common shareholders |
|
$ |
183,166 |
|
|
$ |
130,408 |
|
|
$ |
373,971 |
|
|
$ |
309,388 |
|
|
|
Adjustment for net realized losses on investments |
|
|
11,566 |
|
|
|
24,348 |
|
|
|
7,481 |
|
|
|
41,104 |
|
|
|
Operating income available to common shareholders |
|
$ |
194,732 |
|
|
$ |
154,756 |
|
|
$ |
381,452 |
|
|
$ |
350,492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders per common share - diluted |
|
$ |
2.53 |
|
|
$ |
1.81 |
|
|
$ |
5.16 |
|
|
$ |
4.31 |
|
|
|
Adjustment for net realized losses on investments |
|
|
0.16 |
|
|
|
0.34 |
|
|
|
0.10 |
|
|
|
0.57 |
|
|
|
Operating income available to common shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
per common share - diluted |
|
$ |
2.69 |
|
|
$ |
2.15 |
|
|
$ |
5.26 |
|
|
$ |
4.88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average common equity - annualized |
|
|
26.8 |
% |
|
|
26.4 |
% |
|
|
28.2 |
% |
|
|
32.5 |
% |
|
|
Adjustment for net realized losses on investments |
|
|
1.7 |
% |
|
|
4.9 |
% |
|
|
0.6 |
% |
|
|
4.3 |
% |
|
|
Operating return on average common equity - annualized |
|
|
28.5 |
% |
|
|
31.3 |
% |
|
|
28.8 |
% |
|
|
36.8 |
% |
|
The Company has also included in this Press Release “managed catastrophe premiums” and “managed catastrophe premiums, net of fully-collateralized joint ventures.” “Managed catastrophe premiums” is defined as gross catastrophe premiums written by Renaissance Reinsurance and its related joint ventures. “Managed catastrophe premiums” differ from total catastrophe premiums, which the Company believes is the most directly comparable GAAP measure, due to the inclusion of catastrophe premiums written on behalf of the Company’s joint venture Top Layer Re, which is accounted for under the equity method of accounting. “Managed catastrophe premiums, net of fully-collateralized joint ventures” differ from total catastrophe premiums, which the Company believes is the most directly comparable GAAP measure, due to: 1) the inclusion of catastrophe premiums written on behalf of the Company’s joint venture Top Layer Re, which is accounted for under the equity method of accounting; and 2) the deduction of catastrophe premiums that are written by the Company and ceded directly to the Company’s fully-collateralized joint ventures which include Starbound Re, Starbound II and Timicuan Reinsurance Ltd. The Company’s management believes “managed catastrophe premiums” is useful to investors and other interested parties because it provides a measure of total catastrophe reinsurance premiums assumed by the Company through its consolidated subsidiaries and related joint ventures. The Company believes “managed catastrophe premiums, net of fully-collateralized joint ventures” is also a useful measure to investors and other interested parties because it provides a measure of total catastrophe reinsurance premiums assumed by the Company through its consolidated subsidiaries and related joint ventures, net of catastrophe premiums written directly on behalf of the Company’s fully-collateralized joint ventures.
10
RenaissanceRe Holdings Ltd.
Financial Supplement
June 30, 2007
Contact:
Investors:
RenaissanceRe
Holdings Ltd.
Fred R. Donner, Executive Vice President or
Todd R.
Fonner, Senior Vice President
441-295-4513
Media:
Kekst and Company
David Lilly or Dawn Dover
212-521-4800
RenaissanceRe Holdings Ltd.
Contents
|
|
Page(s) |
|
Basis of Presentation |
i |
|
|
|
|
Financial Highlights |
1 |
|
|
|
|
Income Statements |
|
|
a. Summary Consolidated Statements of Operations |
2-3 |
|
b. Consolidated Segment Underwriting Results |
4-5 |
|
c. Reinsurance Segment - Catastrophe and Specialty Underwriting Results |
6 |
|
d. Reinsurance Segment Gross Premiums Written |
7-8 |
|
e. Individual Risk Segement Gross Premiums Written |
9 |
|
f. DaViniciRe Holdings Ltd. and Subsidiary Consolidated Statements of Operations |
10 |
|
|
|
|
Balance Sheets |
|
|
a. Summary Consolidated Balance Sheets |
11 |
|
b. Composition of Investment Portfolio |
12 |
|
c. Summary of Other Investments |
13 |
|
|
|
|
Loss Reserve Analysis |
|
|
a. Reserve for Claims and Claim Expenses |
14 |
|
b. Paid to Incurred Analysis |
15 |
|
|
|
|
Other Items |
|
|
a. Equity in Earnings of Other Ventures |
16 |
|
b. Ratings |
17 |
|
|
|
|
Comments on Regulation G |
18 |
|
|
|
|
RenaissanceRe Holdings Ltd.
Basis of Presentation
This financial supplement includes certain non-GAAP financial measures including “operating income”, “operating income per common share - diluted”, “operating return on average common equity - annualized”, “managed catastrophe premium” and "managed catastrophe premium, net of fully-collateralized joint ventures". A reconciliation of such measures to the most comparable GAAP figures in accordance with Regulation G is presented in the attached supplemental financial data. See page 18 for Comments on Regulation G.
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 investments managed by our subsidiary RenaissanceRe Ventures Ltd., and (2) Individual Risk, 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, 2006 and its Quarterly Report on Form 10-Q for the quarter ending March 31, 2007.
All information contained herein is unaudited, except for the financial data relating to the balance sheet for the year ended December 31, 2006. Unless otherwise noted, dollar amounts are in thousands, except for share and per share amounts and ratio information. Certain prior period comparatives have been reclassified to conform to the current presentation. This supplement is being provided for informational purposes only. It should be read in conjunction with documents filed by RenaissanceRe Holdings Ltd. with the Securities and Exchange Commission, including the Annual Report on Form 10-K for 2006 and Quarterly Reports on Form 10-Q. Please refer to the Company's website at www.renre.com for further information about RenaissanceRe Holdings Ltd.
|
|
i |
|
RenaissanceRe Holdings Ltd.
Financial Highlights
|
|
|
Three months ended |
|
Six months ended |
||||||||||||
|
|
|
2007 |
|
2006 |
|
2007 |
|
2006 |
||||||||
|
Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written |
|
$ |
845,860 |
|
|
$ |
742,551 |
|
|
$ |
1,478,589 |
|
|
$ |
1,490,943 |
|
|
Net premiums written |
|
|
609,842 |
|
|
|
512,244 |
|
|
|
1,180,869 |
|
|
|
1,210,079 |
|
|
Net premiums earned |
|
|
358,454 |
|
|
|
430,941 |
|
|
|
721,072 |
|
|
|
782,613 |
|
|
Net claims and claim expenses incurred |
|
|
138,854 |
|
|
|
207,336 |
|
|
|
284,846 |
|
|
|
306,514 |
|
|
Underwriting income |
|
|
133,564 |
|
|
|
119,952 |
|
|
|
257,937 |
|
|
|
282,701 |
|
|
Net investment income |
|
|
118,140 |
|
|
|
74,012 |
|
|
|
226,155 |
|
|
|
154,446 |
|
|
Net income available to common shareholders |
|
|
183,166 |
|
|
|
130,408 |
|
|
|
373,971 |
|
|
|
309,388 |
|
|
Net realized losses on investments |
|
|
(11,566 |
) |
|
|
(24,348 |
) |
|
|
(7,481 |
) |
|
|
(41,104 |
) |
|
Operating income available to common shareholders (1) |
|
|
194,732 |
|
|
|
154,756 |
|
|
|
381,452 |
|
|
|
350,492 |
|
|
Total assets |
|
$ |
8,613,382 |
|
|
$ |
7,738,629 |
|
|
$ |
8,613,382 |
|
|
$ |
7,738,629 |
|
|
Total shareholders’ equity |
|
$ |
3,460,038 |
|
|
$ |
2,538,519 |
|
|
$ |
3,460,038 |
|
|
$ |
2,538,519 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders per common share - diluted |
|
$ |
2.53 |
|
|
$ |
1.81 |
|
|
$ |
5.16 |
|
|
$ |
4.31 |
|
|
Operating income available to common shareholders per common share - diluted (1) |
|
$ |
2.69 |
|
|
$ |
2.15 |
|
|
$ |
5.26 |
|
|
$ |
4.88 |
|
|
Dividends per common share |
|
$ |
0.22 |
|
|
$ |
0.21 |
|
|
$ |
0.44 |
|
|
$ |
0.42 |
|
|
Book value per common share |
|
$ |
38.88 |
|
|
$ |
28.37 |
|
|
$ |
38.88 |
|
|
$ |
28.37 |
|
|
Accumulated dividends per common share |
|
|
6.56 |
|
|
|
5.70 |
|
|
|
6.56 |
|
|
|
5.70 |
|
|
Book value per common share plus accumulated dividends |
|
$ |
45.44 |
|
|
$ |
34.07 |
|
|
$ |
45.44 |
|
|
$ |
34.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expense ratio - current accident year |
|
|
55.2% |
|
|
|
50.7% |
|
|
54.2% |
|
|
46.0% |
|||
|
Net claims and claim expense ratio - prior accident years |
|
|
(16.5%) |
|
|
|
(2.6%) |
|
|
(14.7%) |
|
|
(6.8%) |
|||
|
Net claims and claim expense ratio - calendar year |
|
|
38.7% |
|
|
|
48.1% |
|
|
39.5% |
|
|
39.2% |
|||
|
Underwriting expense ratio |
|
|
24.0% |
|
|
|
24.1% |
|
|
24.7% |
|
|
24.7% |
|||
|
Combined ratio |
|
|
62.7% |
|
|
72.2% |
|
|
64.2% |
|
|
63.9% |
||||
|
Operating return on average common equity - annualized (1) |
|
|
28.5% |
|
|
31.3% |
|
|
28.8% |
|
|
36.8% |
||||
|
(1) |
Operating income excludes net realized losses on investments. See Comments on Regulation G for a reconciliation to net income. |
|
|
1 |
|
RenaissanceRe Holdings Ltd.
Summary Consolidated Statements of Operations - Quarter to Date
|
|
|
Three months ended |
||||||||||||||||||
|
|
|
June 30, 2007 |
|
March 31, 2007 |
|
December 31, 2006 |
|
September 30, 2006 |
|
June 30, 2006 |
||||||||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written |
|
$ |
845,860 |
|
|
$ |
632,729 |
|
|
$ |
194,952 |
|
|
$ |
257,752 |
|
|
$ |
742,551 |
|
|
Net premiums written |
|
$ |
609,842 |
|
|
$ |
571,027 |
|
|
$ |
156,846 |
|
|
$ |
162,695 |
|
|
$ |
512,244 |
|
|
(Increase) decrease in unearned premiums |
|
|
(251,388 |
) |
|
|
(208,409 |
) |
|
|
223,242 |
|
|
|
204,381 |
|
|
|
(81,303 |
) |
|
Net premiums earned |
|
|
358,454 |
|
|
|
362,618 |
|
|
|
380,088 |
|
|
|
367,076 |
|
|
|
430,941 |
|
|
Net investment income |
|
|
118,140 |
|
|
|
108,015 |
|
|
|
83,233 |
|
|
|
80,427 |
|
|
|
74,012 |
|
|
Net foreign exchange (losses) gains |
|
|
(373 |
) |
|
|
5,167 |
|
|
|
(1,715 |
) |
|
|
(2,160 |
) |
|
|
(2,441 |
) |
|
Equity in earnings of other ventures |
|
|
9,675 |
|
|
|
10,701 |
|
|
|
8,624 |
|
|
|
10,131 |
|
|
|
9,221 |
|
|
Other (loss) income |
|
|
(5,498 |
) |
|
|
(2,203 |
) |
|
|
(4,160 |
) |
|
|
2,006 |
|
|
|
(84 |
) |
|
Net realized (losses) gains on investments |
|
|
(11,566 |
) |
|
|
4,085 |
|
|
|
2,489 |
|
|
|
4,151 |
|
|
|
(24,348 |
) |
|
Total revenues |
|
|
468,832 |
|
|
|
488,383 |
|
|
|
468,559 |
|
|
|
461,631 |
|
|
|
487,301 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expenses incurred |
|
|
138,854 |
|
|
|
145,992 |
|
|
|
97,280 |
|
|
|
42,436 |
|
|
|
207,336 |
|
|
Acquisition expenses |
|
|
59,509 |
|
|
|
63,729 |
|
|
|
73,288 |
|
|
|
63,998 |
|
|
|
74,597 |
|
|
Operational expenses |
|
|
26,527 |
|
|
|
28,524 |
|
|
|
32,235 |
|
|
|
27,364 |
|
|
|
29,056 |
|
|
Corporate expenses |
|
|
4,927 |
|
|
|
7,004 |
|
|
|
7,987 |
|
|
|
5,121 |
|
|
|
5,571 |
|
|
Interest expense |
|
|
7,195 |
|
|
|
11,979 |
|
|
|
8,439 |
|
|
|
9,492 |
|
|
|
10,370 |
|
|
Total expenses |
|
|
237,012 |
|
|
|
257,228 |
|
|
|
219,229 |
|
|
|
148,411 |
|
|
|
326,930 |
|
|
Income before minority interest and taxes |
|
|
231,820 |
|
|
|
231,155 |
|
|
|
249,330 |
|
|
|
313,220 |
|
|
|
160,371 |
|
|
Minority interest - DaVinciRe |
|
|
(37,399 |
) |
|
|
(29,107 |
) |
|
|
(38,665 |
) |
|
|
(52,830 |
) |
|
|
(21,207 |
) |
|
Income before taxes |
|
|
194,421 |
|
|
|
202,048 |
|
|
|
210,665 |
|
|
|
260,390 |
|
|
|
139,164 |
|
|
Income tax expense |
|
|
(680 |
) |
|
|
(107 |
) |
|
|
(42 |
) |
|
|
(616 |
) |
|
|
(94 |
) |
|
Net income |
|
|
193,741 |
|
|
|
201,941 |
|
|
|
210,623 |
|
|
|
259,774 |
|
|
|
139,070 |
|
|
Dividends on preference shares |
|
|
(10,575 |
) |
|
|
(11,136 |
) |
|
|
(9,488 |
) |
|
|
(8,662 |
) |
|
|
(8,662 |
) |
|
Net income available to common shareholders |
|
$ |
183,166 |
|
|
$ |
190,805 |
|
|
$ |
201,135 |
|
|
$ |
251,112 |
|
|
$ |
130,408 |
|
|
Operating income available to common shareholders per Common Share - diluted (1) |
|
$ |
2.69 |
|
|
$ |
2.57 |
|
|
$ |
2.74 |
|
|
$ |
3.42 |
|
|
$ |
2.15 |
|
|
Net income available to common shareholders per Common Share - basic |
|
$ |
2.57 |
|
|
$ |
2.68 |
|
|
$ |
2.83 |
|
|
$ |
3.53 |
|
|
$ |
1.84 |
|
|
Net income available to common shareholders per Common Share - diluted |
|
$ |
2.53 |
|
|
$ |
2.63 |
|
|
$ |
2.78 |
|
|
$ |
3.48 |
|
|
$ |
1.81 |
|
|
Average shares outstanding - basic |
|
|
71,259 |
|
|
|
71,281 |
|
|
|
71,178 |
|
|
|
71,093 |
|
|
|
71,049 |
|
|
Average shares outstanding - diluted |
|
|
72,430 |
|
|
|
72,514 |
|
|
|
72,467 |
|
|
|
72,115 |
|
|
|
71,926 |
|
|
Net claims and claim expense ratio |
|
|
38.7% |
|
|
|
40.2% |
|
|
25.6% |
|
|
11.6% |
|
|
|
48.1% |
|||
|
Underwriting expense ratio |
|
|
24.0% |
|
|
25.4% |
|
|
27.8% |
|
|
24.9% |
|
|
24.1% |
|||||
|
Combined ratio |
|
|
62.7% |
|
|
65.6% |
|
|
53.4% |
|
|
36.5% |
|
|
72.2% |
|||||
|
Operating return on average common equity - annualized (1) |
|
|
28.5% |
|
|
29.1% |
|
|
33.3% |
|
|
45.6% |
|
|
31.3% |
|||||
|
(1) |
Operating income excludes net realized gains and losses on investments. See Comments on Regulation G for a reconciliation to net income. |
|
|
2 |
|
RenaissanceRe Holdings Ltd.
Summary Consolidated Statements of Operations - Year to Date
|
|
|
Six months ended |
||||||
|
|
|
June 30, 2007 |
|
June 30, 2006 |
||||
|
Revenues |
|
|
|
|
|
|
|
|
|
Gross premiums written |
|
$ |
1,478,589 |
|
|
$ |
1,490,943 |
|
|
Net premiums written |
|
$ |
1,180,869 |
|
|
$ |
1,210,079 |
|
|
Increase in unearned premiums |
|
|
(459,797 |
) |
|
|
(427,466 |
) |
|
Net premiums earned |
|
|
721,072 |
|
|
|
782,613 |
|
|
Net investment income |
|
|
226,155 |
|
|
|
154,446 |
|
|
Net foreign exchange gains |
|
|
4,794 |
|
|
|
582 |
|
|
Equity in earnings of other ventures |
|
|
20,376 |
|
|
|
15,773 |
|
|
Other loss |
|
|
(7,701 |
) |
|
|
(1,763 |
) |
|
Net realized losses on investments |
|
|
(7,481 |
) |
|
|
(41,104 |
) |
|
Total revenues |
|
|
957,215 |
|
|
|
910,547 |
|
|
Expenses |
|
|
|
|
|
|
|
|
|
Net claims and claim expenses incurred |
|
|
284,846 |
|
|
|
306,514 |
|
|
Acquisition expenses |
|
|
123,238 |
|
|
|
143,411 |
|
|
Operational expenses |
|
|
55,051 |
|
|
|
49,987 |
|
|
Corporate expenses |
|
|
11,931 |
|
|
|
11,310 |
|
|
Interest expense |
|
|
19,174 |
|
|
|
19,671 |
|
|
Total expenses |
|
|
494,240 |
|
|
|
530,893 |
|
|
Income before minority interest and taxes |
|
|
462,975 |
|
|
|
379,654 |
|
|
Minority interest - DaVinciRe |
|
|
(66,506 |
) |
|
|
(52,664 |
) |
|
Income before taxes |
|
|
396,469 |
|
|
|
326,990 |
|
|
Income tax expense |
|
|
(787 |
) |
|
|
(277 |
) |
|
Net income |
|
|
395,682 |
|
|
|
326,713 |
|
|
Dividends on preference shares |
|
|
(21,711 |
) |
|
|
(17,325 |
) |
|
Net income available to common shareholders |
|
$ |
373,971 |
|
|
$ |
309,388 |
|
|
Operating income available to common shareholders per Common Share - diluted (1) |
|
$ |
5.26 |
|
|
$ |
4.88 |
|
|
Net income available to common shareholders per Common Share - basic |
|
$ |
5.25 |
|
|
$ |
4.36 |
|
|
Net income available to common shareholders per Common Share - diluted |
|
$ |
5.16 |
|
|
$ |
4.31 |
|
|
Average shares outstanding - basic |
|
|
71,270 |
|
|
|
70,992 |
|
|
Average shares outstanding - diluted |
|
|
72,472 |
|
|
|
71,856 |
|
|
Net claims and claim expense ratio |
|
|
39.5% |
|
|
|
39.2% |
|
|
Underwriting expense ratio |
|
|
24.7% |
|
|
24.7% |
||
|
Combined ratio |
|
|
64.2% |
|
|
63.9% |
||
|
Operating return on average common equity - annualized (1) |
|
|
28.8% |
|
|
36.8% |
||
|
(1) |
Operating income excludes net realized losses on investments. See Comments on Regulation G for a reconciliaton to net income. |
|
|
3 |
|
RenaissanceRe Holdings Ltd.
Consolidated Segment Underwriting Results - Quarter to Date
|
|
|
Three months ended June 30, 2007 |
|
||||||||||
|
|
|
Reinsurance |
|
Individual Risk |
|
Eliminations (1) |
|
Total |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written |
|
$ |
606,215 |
|
$ |
238,391 |
|
$ |
1,254 |
|
$ |
845,860 |
|
|
Net premiums written |
|
$ |
428,355 |
|
$ |
181,487 |
|
|
|
|
$ |
609,842 |
|
|
Net premiums earned |
|
$ |
225,987 |
|
$ |
132,467 |
|
|
|
|
$ |
358,454 |
|
|
Net claims and claim expenses incurred |
|
|
62,528 |
|
|
76,326 |
|
|
|
|
|
138,854 |
|
|
Acquisition expenses |
|
|
25,927 |
|
|
33,582 |
|
|
|
|
|
59,509 |
|
|
Operational expenses |
|
|
16,451 |
|
|
10,076 |
|
|
|
|
|
26,527 |
|
|
Underwriting income |
|
$ |
121,081 |
|
$ |
12,483 |
|
|
|
|
$ |
133,564 |
|
|
Net claims and claim expenses incurred - current accident year |
|
$ |
112,208 |
|
$ |
85,793 |
|
|
|
|
$ |
198,001 |
|
|
Net claims and claim expenses incurred - prior accident years |
|
|
(49,680) |
|
|
(9,467) |
|
|
|
|
|
(59,147) |
|
|
Net claims and claim expenses incurred - total |
|
$ |
62,528 |
|
$ |
76,326 |
|
|
|
|
$ |
138,854 |
|
|
Net claims and claim expense ratio - current accident year |
|
|
49.7% |
|
|
64.8% |
|
|
|
|
|
55.2% |
|
|
Net claims and claim expense ratio - prior accident years |
|
|
(22.0%) |
|
|
(7.1%) |
|
|
|
|
|
(16.5%) |
|
|
Net claims and claim expense ratio - calendar year |
|
|
27.7% |
|
|
57.7% |
|
|
|
|
|
38.7% |
|
|
Underwriting expense ratio |
|
|
18.8% |
|
|
33.0% |
|
|
|
|
|
24.0% |
|
|
Combined ratio |
|
|
46.5% |
|
|
90.7% |
|
|
|
|
|
62.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2006 |
|
||||||||||
|
|
|
Reinsurance |
|
Individual Risk |
|
Eliminations (1) |
|
Total |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written |
|
$ |
562,325 |
|
$ |
210,829 |
|
$ |
(30,603) |
|
$ |
742,551 |
|
|
Net premiums written |
|
$ |
361,558 |
|
$ |
150,686 |
|
|
|
|
$ |
512,244 |
|
|
Net premiums earned |
|
$ |
278,061 |
|
$ |
152,880 |
|
|
|
|
$ |
430,941 |
|
|
Net claims and claim expenses incurred |
|
|
97,945 |
|
|
109,391 |
|
|
|
|
|
207,336 |
|
|
Acquisition expenses |
|
|
31,091 |
|
|
43,506 |
|
|
|
|
|
74,597 |
|
|
Operational expenses |
|
|
19,763 |
|
|
9,293 |
|
|
|
|
|
29,056 |
|
|
Underwriting income (loss) |
|
$ |
129,262 |
|
$ |
(9,310) |
|
|
|
|
$ |
119,952 |
|
|
Net claims and claim expenses incurred - current accident year |
|
$ |
100,776 |
|
$ |
117,892 |
|
|
|
|
$ |
218,668 |
|
|
Net claims and claim expenses incurred - prior accident years |
|
|
(2,831) |
|
|
(8,501) |
|
|
|
|
|
(11,332) |
|
|
Net claims and claim expenses incurred - total |
|
$ |
97,945 |
|
$ |
109,391 |
|
|
|
|
$ |
207,336 |
|
|
Net claims and claim expense ratio - current accident year |
|
|
36.2% |
|
|
77.1% |
|
|
|
|
|
50.7% |
|
|
Net claims and claim expense ratio - prior accident years |
|
|
(1.0%) |
|
|
(5.5%) |
|
|
|
|
|
(2.6%) |
|
|
Net claims and claim expense ratio - calendar year |
|
|
35.2% |
|
|
71.6% |
|
|
|
|
|
48.1% |
|
|
Underwriting expense ratio |
|
|
18.3% |
|
|
34.5% |
|
|
|
|
|
24.1% |
|
|
Combined ratio |
|
|
53.5% |
|
|
106.1% |
|
|
|
|
|
72.2% |
|
|
(1) |
Represents gross premiums ceded from the Individual Risk segment to the Reinsurance segment. |
|
|
4 |
|
RenaissanceRe Holdings Ltd.
Consolidated Segment Underwriting Results - Year to Date
|
|
|
Six months ended June 30, 2007 |
|
||||||||||
|
|
|
Reinsurance |
|
Individual Risk |
|
Eliminations (1) |
|
Total |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written |
|
$ |
1,122,182 |
|
$ |
361,707 |
|
$ |
(5,300) |
|
$ |
1,478,589 |
|
|
Net premiums written |
|
$ |
904,574 |
|
$ |
276,295 |
|
|
|
|
$ |
1,180,869 |
|
|
Net premiums earned |
|
$ |
480,766 |
|
$ |
240,306 |
|
|
|
|
$ |
721,072 |
|
|
Net claims and claim expenses incurred |
|
|
154,655 |
|
|
130,191 |
|
|
|
|
|
284,846 |
|
|
Acquisition expenses |
|
|
54,289 |
|
|
68,949 |
|
|
|
|
|
123,238 |
|
|
Operational expenses |
|
|
34,642 |
|
|
20,409 |
|
|
|
|
|
55,051 |
|
|
Underwriting income |
|
$ |
237,180 |
|
$ |
20,757 |
|
|
|
|
$ |
257,937 |
|
|
Net claims and claim expenses incurred - current accident year |
|
$ |
234,614 |
|
$ |
156,452 |
|
|
|
|
$ |
391,066 |
|
|
Net claims and claim expenses incurred - prior accident years |
|
|
(79,959 |
) |
|
(26,261) |
|
|
|
|
|
(106,220 |
) |
|
Net claims and claim expenses incurred - total |
|
$ |
154,655 |
|
$ |
130,191 |
|
|
|
|
$ |
284,846 |
|
|
Net claims and claim expense ratio - current accident year |
|
|
48.8% |
|
|
65.1% |
|
|
|
|
|
54.2% |
|
|
Net claims and claim expense ratio - prior accident years |
|
|
(16.6%) |
|
|
(10.9%) |
|
|
|
|
|
(14.7%) |
|
|
Net claims and claim expense ratio - calendar year |
|
|
32.2% |
|
|
54.2% |
|
|
|
|
|
39.5% |
|
|
Underwriting expense ratio |
|
|
18.5% |
|
|
37.2% |
|
|
|
|
|
24.7% |
|
|
Combined ratio |
|
|
50.7% |
|
|
91.4% |
|
|
|
|
|
64.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2006 |
|
||||||||||
|
|
|
Reinsurance |
|
Individual Risk |
|
Eliminations (1) |
|
Total |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written |
|
$ |
1,146,099 |
|
$ |
381,553 |
|
$ |
(36,709) |
|
$ |
1,490,943 |
|
|
Net premiums written |
|
$ |
910,015 |
|
$ |
300,064 |
|
|
|
|
$ |
1,210,079 |
|
|
Net premiums earned |
|
$ |
491,434 |
|
$ |
291,179 |
|
|
|
|
$ |
782,613 |
|
|
Net claims and claim expenses incurred |
|
|
134,625 |
|
|
171,889 |
|
|
|
|
|
306,514 |
|
|
Acquisition expenses |
|
|
59,597 |
|
|
83,814 |
|
|
|
|
|
143,411 |
|
|
Operational expenses |
|
|
32,307 |
|
|
17,680 |
|
|
|
|
|
49,987 |
|
|
Underwriting income |
|
$ |
264,905 |
|
$ |
17,796 |
|
|
|
|
$ |
282,701 |
|
|
Net claims and claim expenses incurred - current accident year |
|
$ |
176,489 |
|
$ |
183,259 |
|
|
|
|
$ |
359,748 |
|
|
Net claims and claim expenses incurred - prior accident years |
|
|
(41,864) |
|
|
(11,370) |
|
|
|
|
|
(53,234) |
|
|
Net claims and claim expenses incurred - total |
|
$ |
134,625 |
|
$ |
171,889 |
|
|
|
|
$ |
306,514 |
|
|
Net claims and claim expense ratio - current accident year |
|
|
35.9% |
|
|
62.9% |
|
|
|
|
|
46.0% |
|
|
Net claims and claim expense ratio - prior accident years |
|
|
(8.5%) |
|
|
(3.9%) |
|
|
|
|
|
(6.8%) |
|
|
Net claims and claim expense ratio - calendar year |
|
|
27.4% |
|
|
59.0% |
|
|
|
|
|
39.2% |
|
|
Underwriting expense ratio |
|
|
18.7% |
|
|
34.9% |
|
|
|
|
|
24.7% |
|
|
Combined ratio |
|
|
46.1% |
|
|
93.9% |
|
|
|
|
|
63.9% |
|
|
(1) |
Represents gross premiums ceded from the Individual Risk segment to the Reinsurance segment. |
|
|
5 |
|
RenaissanceRe Holdings Ltd.
Reinsurance Segment - Catastrophe and Specialty Underwriting Results
|
|
|
Three months ended June 30, 2007 |
|
Three months ended June 30, 2006 |
|
||||||||||||||
|
|
|
Catastrophe |
|
Specialty |
|
Total |
|
Catastrophe |
|
Specialty |
|
Total |
|
||||||
|
Gross premiums written |
|
$ |
512,828 |
|
$ |
93,387 |
|
$ |
606,215 |
|
$ |
532,493 |
|
$ |
29,832 |
|
$ |
562,325 |
|
|
Net premiums written |
|
$ |
334,968 |
|
$ |
93,387 |
|
$ |
428,355 |
|
$ |
331,726 |
|
$ |
29,832 |
|
$ |
361,558 |
|
|
Net premiums earned |
|
$ |
170,337 |
|
$ |
55,650 |
|
$ |
225,987 |
|
$ |
205,289 |
|
$ |
72,772 |
|
$ |
278,061 |
|
|
Net claims and claim expenses incurred |
|
|
45,570 |
|
|
16,958 |
|
|
62,528 |
|
|
69,250 |
|
|
28,695 |
|
|
97,945 |
|
|
Acquisition expenses |
|
|
17,892 |
|
|
8,035 |
|
|
25,927 |
|
|
22,656 |
|
|
8,435 |
|
|
31,091 |
|
|
Operational expenses |
|
|
11,761 |
|
|
4,690 |
|
|
16,451 |
|
|
13,138 |
|
|
6,625 |
|
|
19,763 |
|
|
Underwriting income |
|
$ |
95,114 |
|
$ |
25,967 |
|
$ |
121,081 |
|
$ |
100,245 |
|
$ |
29,017 |
|
$ |
129,262 |
|
|
Net claims and claim expenses incurred - current accident year |
|
$ |
64,569 |
|
$ |
47,639 |
|
$ |
112,208 |
|
$ |
54,260 |
|
$ |
46,516 |
|
$ |
100,776 |
|
|
Net claims and claim expenses incurred - prior accident years |
|
|
(18,999) |
|
|
(30,681) |
|
|
(49,680) |
|
|
14,990 |
|
|
(17,821) |
|
|
(2,831) |
|
|
Net claims and claim expenses incurred - total |
|
$ |
45,570 |
|
$ |
16,958 |
|
$ |
62,528 |
|
$ |
69,250 |
|
$ |
28,695 |
|
$ |
97,945 |
|
|
Net claims and claim expense ratio - current accident year |
|
|
37.9% |
|
|
85.6% |
|
|
49.7% |
|
|
26.4% |
|
|
63.9% |
|
|
36.2% |
|
|
Net claims and claim expense ratio - prior accident years |
|
|
(11.2%) |
|
|
(55.1%) |
|
|
(22.0%) |
|
|
7.3% |
|
|
(24.5%) |
|
|
(1.0%) |
|
|
Net claims and claim expense ratio - calendar year |
|
|
26.7% |
|
|
30.5% |
|
|
27.7% |
|
|
33.7% |
|
|
39.4% |
|
|
35.2% |
|
|
Underwriting expense ratio |
|
|
17.4% |
|
|
22.9% |
|
|
18.8% |
|
|
17.4% |
|
|
20.7% |
|
|
18.3% |
|
|
Combined ratio |
|
|
44.1% |
|
|
53.4% |
|
|
46.5% |
|
|
51.1% |
|
|
60.1% |
|
|
53.5% |
|
|
|
|
Six months ended June 30, 2007 |
|
Six months ended June 30, 2006 |
|
||||||||||||||
|
|
|
Catastrophe |
|
Specialty |
|
Total |
|
Catastrophe |
|
Specialty |
|
Total |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written |
|
$ |
911,792 |
|
$ |
210,390 |
|
$ |
1,122,182 |
|
$ |
973,203 |
|
$ |
172,896 |
|
$ |
1,146,099 |
|
|
Net premiums written |
|
$ |
694,184 |
|
$ |
210,390 |
|
$ |
904,574 |
|
$ |
737,119 |
|
$ |
172,896 |
|
$ |
910,015 |
|
|
Net premiums earned |
|
$ |
370,730 |
|
$ |
110,036 |
|
$ |
480,766 |
|
$ |
361,095 |
|
$ |
130,339 |
|
$ |
491,434 |
|
|
Net claims and claim expenses incurred |
|
|
136,862 |
|
|
17,793 |
|
|
154,655 |
|
|
111,708 |
|
|
22,917 |
|
|
134,625 |
|
|
Acquisition expenses |
|
|
39,526 |
|
|
14,763 |
|
|
54,289 |
|
|
41,921 |
|
|
17,676 |
|
|
59,597 |
|
|
Operational expenses |
|
|
25,438 |
|
|
9,204 |
|
|
34,642 |
|
|
20,730 |
|
|
11,577 |
|
|
32,307 |
|
|
Underwriting income |
|
$ |
168,904 |
|
$ |
68,276 |
|
$ |
237,180 |
|
$ |
186,736 |
|
$ |
78,169 |
|
$ |
264,905 |
|
|
Net claims and claim expenses incurred - current accident year |
|
$ |
154,530 |
|
$ |
80,084 |
|
$ |
234,614 |
|
$ |
85,753 |
|
$ |
90,736 |
|
$ |
176,489 |
|
|
Net claims and claim expenses incurred - prior accident years |
|
|
(17,668) |
|
|
(62,291) |
|
|
(79,959) |
|
|
25,955 |
|
|
(67,819) |
|
|
(41,864) |
|
|
Net claims and claim expenses incurred - total |
|
$ |
136,862 |
|
$ |
17,793 |
|
$ |
154,655 |
|
$ |
111,708 |
|
$ |
22,917 |
|
$ |
134,625 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expense ratio - current accident year |
|
|
41.7% |
|
|
72.8% |
|
|
48.8% |
|
|
23.7% |
|
|
69.6% |
|
|
35.9% |
|
|
Net claims and claim expense ratio - prior accident years |
|
|
(4.8%) |
|
|
(56.6%) |
|
|
(16.6%) |
|
|
7.2% |
|
|
(52.0%) |
|
|
(8.5%) |
|
|
Net claims and claim expense ratio - calendar year |
|
|
36.9% |
|
|
16.2% |
|
|
32.2% |
|
|
30.9% |
|
|
17.6% |
|
|
27.4% |
|
|
Underwriting expense ratio |
|
|
17.5% |
|
|
21.8% |
|
|
18.5% |
|
|
17.4% |
|
|
22.4% |
|
|
18.7% |
|
|
Combined ratio |
|
|
54.4% |
|
|
38.0% |
|
|
50.7% |
|
|
48.3% |
|
|
40.0% |
|
|
46.1% |
|
|
|
6 |
|
RenaissanceRe Holdings Ltd.
Reinsurance Segment Gross Premiums Written
|
|
|
Three months ended |
||||||||||||||||||
|
|
|
June 30, 2007 |
|
March 31, 2007 |
|
Dec. 31, 2006 |
|
Sept. 30, 2006 |
|
June 30, 2006 |
||||||||||
|
Renaissance catastrophe premiums |
|
$ |
340,913 |
|
|
$ |
240,027 |
|
|
$ |
20,630 |
|
$ |
92,150 |
|
|
$ |
377,063 |
|
|
|
Renaissance specialty premiums |
|
|
93,258 |
|
|
|
107,590 |
|
|
|
28,164 |
|
|
20,367 |
|
|
|
27,736 |
|
|
|
Total Renaissance premiums |
|
|
434,171 |
|
|
|
347,617 |
|
|
|
48,794 |
|
|
112,517 |
|
|
|
404,799 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DaVinci catastrophe premiums |
|
|
171,915 |
|
|
|
158,937 |
|
|
|
2,554 |
|
|
10,578 |
|
|
|
155,430 |
|
|
|
DaVinci specialty premiums |
|
|
129 |
|
|
|
9,413 |
|
|
|
371 |
|
|
250 |
|
|
|
2,096 |
|
|
|
Total DaVinci premiums |
|
|
172,044 |
|
|
|
168,350 |
|
|
|
2,925 |
|
|
10,828 |
|
|
|
157,526 |
|
|
|
Total Reinsurance premiums |
|
$ |
606,215 |
|
|
$ |
515,967 |
|
|
$ |
51,719 |
|
$ |
123,345 |
|
|
$ |
562,325 |
|
|
|
Total specialty premiums (1) |
|
$ |
93,387 |
|
|
$ |
117,003 |
|
|
$ |
28,535 |
|
$ |
20,617 |
|
|
$ |
29,832 |
|
|
|
Total catastrophe premiums |
|
$ |
512,828 |
|
|
$ |
398,964 |
|
|
$ |
23,184 |
|
$ |
102,728 |
|
|
$ |
532,493 |
|
|
|
Catastrophe premiums written on behalf of our joint venture, Top Layer Re (2) |
|
|
26,822 |
|
|
|
36,903 |
|
|
|
— |
|
|
1,189 |
|
|
|
24,270 |
|
|
|
Catastrophe premiums assumed from the Individual Risk segment |
|
|
1,254 |
|
|
|
(6,554 |
) |
|
|
1,632 |
|
|
(31,109 |
) |
|
|
(28,990 |
) |
|
|
Total managed catastrophe premiums (3) |
|
|
540,904 |
|
|
|
429,313 |
|
|
|
24,816 |
|
|
72,808 |
|
|
|
527,773 |
|
|
|
Managed catastrophe premiums assumed on behalf of fully-collateralized joint ventures |
|
|
(65,798 |
) |
|
|
6,435 |
|
|
|
322 |
|
|
(3,046 |
) |
|
|
(111,253 |
) |
|
|
Total managed catastrophe premiums, net of fully-collateralized joint ventures (3) |
|
$ |
475,106 |
|
|
$ |
435,748 |
|
|
$ |
25,138 |
|
$ |
69,762 |
|
|
$ |
416,520 |
|
|
|
(1) |
Total specialty premiums written includes $nil, $nil, $nil, $0.7 million and $1.6 million of premiums assumed from the Individual Risk segment for the three months ended June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006 and June 30, 2006. |
|
(2) |
Top Layer Re is accounted for under the equity method of accounting. |
|
(3) |
See Comments on Regulation G. |
|
|
7 |
|
RenaissanceRe Holdings Ltd.
Reinsurance Segment Gross Premiums Written
|
|
|
Six months ended |
||||||
|
|
|
June 30, 2007 |
|
June 30, 2006 |
||||
|
Renaissance catastrophe premiums |
|
$ |
580,940 |
|
|
$ |
660,859 |
|
|
Renaissance specialty premiums |
|
|
200,848 |
|
|
|
149,580 |
|
|
Total Renaissance premiums |
|
|
781,788 |
|
|
|
810,439 |
|
|
DaVinci catastrophe premiums |
|
|
330,852 |
|
|
|
312,344 |
|
|
DaVinci specialty premiums |
|
|
9,542 |
|
|
|
23,316 |
|
|
Total DaVinci premiums |
|
|
340,394 |
|
|
|
335,660 |
|
|
Total Reinsurance premiums |
|
$ |
1,122,182 |
|
|
$ |
1,146,099 |
|
|
Total specialty premiums (1) |
|
$ |
210,390 |
|
|
$ |
172,896 |
|
|
Total catastrophe premiums |
|
$ |
911,792 |
|
|
$ |
973,203 |
|
|
Catastrophe premiums written on behalf of our joint venture, Top Layer Re (2) |
|
|
63,725 |
|
|
|
50,055 |
|
|
Catastrophe premiums assumed from the Individual Risk segment |
|
|
(5,300 |
) |
|
|
(35,096 |
) |
|
Total managed catastrophe premiums (3) |
|
|
970,217 |
|
|
|
988,162 |
|
|
Managed catastrophe premiums assumed on behalf of fully-collateralized joint ventures |
|
|
(59,363 |
) |
|
|
(111,253 |
) |
|
Total managed catastrophe premiums, net of fully-collateralized joint ventures (3) |
|
$ |
910,854 |
|
|
$ |
876,909 |
|
|
(1) |
Total specialty premiums written includes $nil and $1.6 million of premiums assumed from the Individual Risk segment for the six months ended June 30, 2007 and 2006, respectively. |
|
(2) |
Top Layer Re is accounted for under the equity method of accounting. |
|
(3) |
See comments on Regulation G. |
|
|
8 |
|
RenaissanceRe Holdings Ltd.
Individual Risk Segment Gross Premiums Written
|
|
|
Three months ended |
||||||||||||||
|
|
|
June 30, 2007 |
|
March 31, 2007 |
|
Dec. 31, 2006 |
|
Sept. 30, 2006 |
|
June 30, 2006 |
||||||
|
By Type of Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial multi-line |
|
$ |
161,125 |
|
$ |
59,141 |
|
$ |
62,942 |
|
$ |
92,056 |
|
$ |
137,162 |
|
|
Commercial property |
|
|
75,013 |
|
|
42,505 |
|
|
47,199 |
|
|
46,597 |
|
|
78,407 |
|
|
Personal lines property |
|
|
2,253 |
|
|
21,670 |
|
|
31,460 |
|
|
27,585 |
|
|
(4,740 |
) |
|
Total Individual Risk premiums |
|
$ |
238,391 |
|
$ |
123,316 |
|
$ |
141,601 |
|
$ |
166,238 |
|
$ |
210,829 |
|
|
|
|
Six months ended |
|
||||
|
|
|
June 30, 2007 |
|
June 30, 2006 |
|
||
|
By Type of Business |
|
|
|
|
|
|
|
|
Commercial multi-line |
|
$ |
220,266 |
|
$ |
203,989 |
|
|
Commercial property |
|
|
117,518 |
|
|
132,409 |
|
|
Personal lines property |
|
|
23,923 |
|
|
45,155 |
|
|
Total Individual Risk premiums |
|
$ |
361,707 |
|
$ |
381,553 |
|
|
|
9 |
|
DaVinciRe Holdings Ltd. and Subsidiary
Consolidated Statements of Operations
|
|
|
Three months ended |
||||||||||||||||||
|
|
|
June 30, |
|
|
March 31, |
|
|
Dec. 31, |
|
|
Sep. 30, |
|
|
June 30, |
|
|||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written |
|
$ |
172,044 |
|
|
$ |
168,350 |
|
|
$ |
2,925 |
|
|
$ |
10,828 |
|
|
$ |
157,526 |
|
|
Net premiums written |
|
$ |
159,155 |
|
|
$ |
166,251 |
|
|
$ |
3,117 |
|
|
$ |
1,211 |
|
|
$ |
129,493 |
|
|
(Increase) decrease in unearned premiums |
|
|
(83,855 |
) |
|
|
(87,786 |
) |
|
|
66,821 |
|
|
|
70,893 |
|
|
|
(52,822 |
) |
|
Net premiums earned |
|
|
75,300 |
|
|
|
78,465 |
|
|
|
69,938 |
|
|
|
72,104 |
|
|
|
76,671 |
|
|
Net investment income |
|
|
18,961 |
|
|
|
18,657 |
|
|
|
16,572 |
|
|
|
16,036 |
|
|
|
14,372 |
|
|
Net foreign exchange (losses) gains |
|
|
(170 |
) |
|
|
897 |
|
|
|
(1,428 |
) |
|
|
(59 |
) |
|
|
(2,905 |
) |
|
Other loss |
|
|
(3,422 |
) |
|
|
(3,448 |
) |
|
|
(1,045 |
) |
|
|
(952 |
) |
|
|
(136 |
) |
|
Net realized (losses) gains on investments |
|
|
(2,972 |
) |
|
|
763 |
|
|
|
646 |
|
|
|
1,178 |
|
|
|
(6,012 |
) |
|
Total revenues |
|
|
87,697 |
|
|
|
95,334 |
|
|
|
84,683 |
|
|
|
88,307 |
|
|
|
81,990 |
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expenses incurred |
|
|
12,587 |
|
|
|
35,118 |
|
|
|
9,251 |
|
|
|
(6,574 |
) |
|
|
32,001 |
|
|
Acquisition expenses |
|
|
17,233 |
|
|
|
12,771 |
|
|
|
16,567 |
|
|
|
18,341 |
|
|
|
13,334 |
|
|
Operational and corporate expenses |
|
|
7,795 |
|
|
|
7,827 |
|
|
|
8,154 |
|
|
|
7,688 |
|
|
|
7,721 |
|
|
Interest expense |
|
|
3,033 |
|
|
|
3,000 |
|
|
|
2,469 |
|
|
|
2,377 |
|
|
|
2,295 |
|
|
Total expenses |
|
|
40,648 |
|
|
|
58,716 |
|
|
|
36,441 |
|
|
|
21,832 |
|
|
|
55,351 |
|
|
Income before minority interest |
|
|
47,049 |
|
|
|
36,618 |
|
|
|
48,242 |
|
|
|
66,475 |
|
|
|
26,639 |
|
|
Minority interest |
|
|
(101 |
) |
|
|
(79 |
) |
|
|
(103 |
) |
|
|
(138 |
) |
|
|
(58 |
) |
|
Net income |
|
$ |
46,948 |
|
|
$ |
36,539 |
|
|
$ |
48,139 |
|
|
$ |
66,337 |
|
|
$ |
26,581 |
|
|
Net claims and claim expenses incurred - current accident year |
|
$ |
20,037 |
|
|
$ |
40,012 |
|
|
$ |
11,422 |
|
|
$ |
(2,032 |
) |
|
$ |
21,437 |
|
|
Net claims and claim expenses incurred - prior accident years |
|
|
(7,450 |
) |
|
|
(4,894 |
) |
|
|
(2,171 |
) |
|
|
(4,542 |
) |
|
|
10,564 |
|
|
Net claims and claim expenses incurred - total |
|
$ |
12,587 |
|
|
$ |
35,118 |
|
|
$ |
9,251 |
|
|
$ |
(6,574 |
) |
|
$ |
32,001 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expense ratio - current accident year |
|
|
26.6 |
% |
|
|
51.0 |
% |
|
|
16.3 |
% |
|
|
(2.8 |
%) |
|
|
27.9 |
% |
|
Net claims and claim expense ratio - prior accident years |
|
|
(9.9 |
%) |
|
|
(6.2 |
%) |
|
|
(3.1 |
%) |
|
|
(6.3 |
%) |
|
|
13.8 |
% |
|
Net claims and claim expense ratio - calendar year |
|
|
16.7 |
% |
|
|
44.8 |
% |
|
|
13.2 |
% |
|
|
(9.1 |
%) |
|
|
41.7 |
% |
|
Underwriting expense ratio |
|
|
33.2 |
% |
|
|
26.3 |
% |
|
|
35.3 |
% |
|
|
36.1 |
% |
|
|
27.5 |
% |
|
Combined ratio |
|
|
49.9 |
% |
|
|
71.1 |
% |
|
|
48.5 |
% |
|
|
27.0 |
% |
|
|
69.2 |
% |
|
|
10 |
|
RenaissanceRe Holdings Ltd.
Summary Consolidated Balance Sheets
|
|
|
June 30, 2007 |
|
|
March 31, 2007 |
|
|
Dec. 31, 2006 |
|
|
Sept. 30, 2006 |
|
|
June 30, 2006 |
|
|||||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturity investments available for sale, at fair value |
|
$ |
3,179,189 |
|
|
$ |
3,155,864 |
|
|
$ |
3,111,930 |
|
|
$ |
3,176,045 |
|
|
$ |
3,079,855 |
|
|
Short term investments, at cost |
|
|
2,268,172 |
|
|
|
2,183,564 |
|
|
|
2,410,971 |
|
|
|
1,841,330 |
|
|
|
1,911,693 |
|
|
Other investments, at fair value |
|
|
661,709 |
|
|
|
620,576 |
|
|
|
592,829 |
|
|
|
559,256 |
|
|
|
526,844 |
|
|
Investments in other ventures, under equity method |
|
|
235,371 |
|
|
|
239,021 |
|
|
|
227,075 |
|
|
|
195,787 |
|
|
|
186,979 |
|
|
Total investments |
|
|
6,344,441 |
|
|
|
6,199,025 |
|
|
|
6,342,805 |
|
|
|
5,772,418 |
|
|
|
5,705,371 |
|
|
Cash and cash equivalents |
|
|
266,455 |
|
|
|
270,608 |
|
|
|
214,399 |
|
|
|
245,817 |
|
|
|
187,340 |
|
|
Premiums receivable |
|
|
927,657 |
|
|
|
538,720 |
|
|
|
419,150 |
|
|
|
623,869 |
|
|
|
857,687 |
|
|
Ceded reinsurance balances |
|
|
241,488 |
|
|
|
116,020 |
|
|
|
133,971 |
|
|
|
232,439 |
|
|
|
241,315 |
|
|
Losses recoverable |
|
|
236,990 |
|
|
|
248,599 |
|
|
|
301,854 |
|
|
|
394,335 |
|
|
|
464,556 |
|
|
Accrued investment income |
|
|
41,824 |
|
|
|
41,881 |
|
|
|
41,234 |
|
|
|
38,437 |
|
|
|
37,639 |
|
|
Deferred acquisition costs |
|
|
171,931 |
|
|
|
124,282 |
|
|
|
106,918 |
|
|
|
138,922 |
|
|
|
158,600 |
|
|
Receivable for investments sold |
|
|
248,406 |
|
|
|
109,554 |
|
|
|
61,061 |
|
|
|
18 |
|
|
|
203 |
|
|
Other assets |
|
|
134,190 |
|
|
|
138,427 |
|
|
|
147,634 |
|
|
|
93,302 |
|
|
|
85,918 |
|
|
Total assets |
|
$ |
8,613,382 |
|
|
$ |
7,787,116 |
|
|
$ |
7,769,026 |
|
|
$ |
7,539,557 |
|
|
$ |
7,738,629 |
|
|
Liabilities, Minority Interest and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve for claims and claim expenses |
|
$ |
2,128,216 |
|
|
$ |
2,109,864 |
|
|
$ |
2,098,155 |
|
|
$ |
2,155,213 |
|
|
$ |
2,347,525 |
|
|
Reserve for unearned premiums |
|
|
1,145,739 |
|
|
|
768,882 |
|
|
|
578,424 |
|
|
|
900,133 |
|
|
|
1,113,391 |
|
|
Debt |
|
|
450,000 |
|
|
|
450,000 |
|
|
|
450,000 |
|
|
|
410,000 |
|
|
|
485,000 |
|
|
Subordinated obligation to capital trust |
|
|
— |
|
|
|
— |
|
|
|
103,093 |
|
|
|
103,093 |
|
|
|
103,093 |
|
|
Reinsurance balances payable |
|
|
344,945 |
|
|
|
232,832 |
|
|
|
395,083 |
|
|
|
437,653 |
|
|
|
477,477 |
|
|
Payable for investments purchased |
|
|
255,852 |
|
|
|
138,110 |
|
|
|
88,089 |
|
|
|
54,953 |
|
|
|
55,138 |
|
|
Other liabilities |
|
|
114,406 |
|
|
|
104,300 |
|
|
|
125,401 |
|
|
|
68,874 |
|
|
|
63,053 |
|
|
Total liabilities |
|
|
4,439,158 |
|
|
|
3,803,988 |
|
|
|
3,838,245 |
|
|
|
4,129,919 |
|
|
|
4,644,677 |
|
|
Minority interest - DaVinciRe |
|
|
714,186 |
|
|
|
679,568 |
|
|
|
650,284 |
|
|
|
612,431 |
|
|
|
555,433 |
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preference shares |
|
|
650,000 |
|
|
|
650,000 |
|
|
|
800,000 |
|
|
|
500,000 |
|
|
|
500,000 |
|
|
Common shares |
|
|
72,266 |
|
|
|
72,289 |
|
|
|
72,140 |
|
|
|
72,108 |
|
|
|
71,849 |
|
|
Additional paid-in capital |
|
|
283,693 |
|
|
|
279,979 |
|
|
|
284,123 |
|
|
|
286,592 |
|
|
|
284,613 |
|
|
Accumulated other comprehensive income |
|
|
12,939 |
|
|
|
27,420 |
|
|
|
25,217 |
|
|
|
25,472 |
|
|
|
4,993 |
|
|
Retained earnings |
|
|
2,441,140 |
|
|
|
2,273,872 |
|
|
|
2,099,017 |
|
|
|
1,913,035 |
|
|
|
1,677,064 |
|
|
Total shareholders’ equity |
|
|
3,460,038 |
|
|
|
3,303,560 |
|
|
|
3,280,497 |
|
|
|
2,797,207 |
|
|
|
2,538,519 |
|
|
Total liabilities, minority interest and shareholders’ equity |
|
$ |
8,613,382 |
|
|
$ |
7,787,116 |
|
|
$ |
7,769,026 |
|
|
$ |
7,539,557 |
|
|
$ |
7,738,629 |
|
|
Book value per common share |
|
$ |
38.88 |
|
|
$ |
36.71 |
|
|
$ |
34.38 |
|
|
$ |
31.86 |
|
|
$ |
28.37 |
|
|
Common shares outstanding |
|
|
72,266 |
|
|
|
72,289 |
|
|
|
72,140 |
|
|
|
72,108 |
|
|
|
71,849 |
|
|
|
11 |
|
RenaissanceRe Holdings Ltd.
Composition of Investment Portfolio
|
|
|
June 30, 2007 |
|
Mar. 31, 2007 |
|
Dec. 31, 2006 |
|
Sep. 30, 2006 |
|
June 30, 2006 |
|
||||||||||||||||||||||||
|
TYPE OF INVESTMENT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
U.S. treasuries and agencies |
|
$ |
1,006,808 |
|
|
15.9 |
% |
|
$ |
1,214,606 |
|
|
19.6 |
% |
|
$ |
1,180,064 |
|
|
18.6 |
% |
|
$ |
1,403,475 |
|
|
24.2 |
% |
|
$ |
1,388,386 |
|
|
24.3 |
% |
|
Non-U.S. government |
|
|
143,004 |
|
|
2.3 |
% |
|
|
146,774 |
|
|
2.4 |
% |
|
|
154,848 |
|
|
2.4 |
% |
|
|
153,396 |
|
|
2.7 |
% |
|
|
147,249 |
|
|
2.6 |
% |
|
Corporate |
|
|
967,070 |
|
|
15.2 |
% |
|
|
1,015,171 |
|
|
16.4 |
% |
|
|
995,410 |
|
|
15.7 |
% |
|
|
855,272 |
|
|
14.8 |
% |
|
|
817,097 |
|
|
14.3 |
% |
|
Mortgage-backed |
|
|
634,066 |
|
|
10.0 |
% |
|
|
405,205 |
|
|
6.5 |
% |
|
|
397,741 |
|
|
6.3 |
% |
|
|
389,868 |
|
|
6.8 |
% |
|
|
396,794 |
|
|
7.0 |
% |
|
Asset-backed |
|
|
428,241 |
|
|
6.7 |
% |
|
|
374,108 |
|
|
6.0 |
% |
|
|
383,867 |
|
|
6.1 |
% |
|
|
374,034 |
|
|
6.5 |
% |
|
|
330,329 |
|
|
5.8 |
% |
|
Total fixed maturities available for sale |
|
|
3,179,189 |
|
|
50.1 |
% |
|
|
3,155,864 |
|
|
50.9 |
% |
|
|
3,111,930 |
|
|
49.1 |
% |
|
|
3,176,045 |
|
|
55.0 |
% |
|
|
3,079,855 |
|
|
54.0 |
% |
|
Short term investments, at cost |
|
|
2,268,172 |
|
|
35.8 |
% |
|
|
2,183,564 |
|
|
35.2 |
% |
|
|
2,410,971 |
|
|
38.0 |
% |
|
|
1,841,330 |
|
|
31.9 |
% |
|
|
1,911,693 |
|
|
33.5 |
% |
|
Other investments, at fair value |
|
|
661,709 |
|
|
10.4 |
% |
|
|
620,576 |
|
|
10.0 |
% |
|
|
592,829 |
|
|
9.3 |
% |
|
|
559,256 |
|
|
9.7 |
% |
|
|
526,844 |
|
|
9.2 |
% |
|
Total managed investment portfolio |
|
|
6,109,070 |
|
|
96.3 |
% |
|
|
5,960,004 |
|
|
96.1 |
% |
|
|
6,115,730 |
|
|
96.4 |
% |
|
|
5,576,631 |
|
|
96.6 |
% |
|
|
5,518,392 |
|
|
96.7 |
% |
|
Investments in other ventures, under equity method |
|
|
235,371 |
|
|
3.7 |
% |
|
|
239,021 |
|
|
3.9 |
% |
|
|
227,075 |
|
|
3.6 |
% |
|
|
195,787 |
|
|
3.4 |
% |
|
|
186,979 |
|
|
3.3 |
% |
|
Total investments |
|
$ |
6,344,441 |
|
|
100.0 |
% |
|
$ |
6,199,025 |
|
|
100.0 |
% |
|
$ |
6,342,805 |
|
|
100.0 |
% |
|
$ |
5,772,418 |
|
|
100.0 |
% |
|
$ |
5,705,371 |
|
|
100.0 |
% |
|
CREDIT QUALITY OF FIXED MATURITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AAA |
|
$ |
2,339,451 |
|
|
73.6 |
% |
|
$ |
2,286,168 |
|
|
72.4 |
% |
|
$ |
2,248,182 |
|
|
72.2 |
% |
|
$ |
2,455,167 |
|
|
77.3 |
% |
|
$ |
2,392,763 |
|
|
77.7 |
% |
|
AA |
|
|
484,035 |
|
|
15.2 |
% |
|
|
514,643 |
|
|
16.3 |
% |
|
|
479,340 |
|
|
15.4 |
% |
|
|
339,209 |
|
|
10.7 |
% |
|
|
308,840 |
|
|
10.0 |
% |
|
A |
|
|
161,038 |
|
|
5.1 |
% |
|
|
157,437 |
|
|
5.0 |
% |
|
|
167,068 |
|
|
5.4 |
% |
|
|
172,119 |
|
|
5.4 |
% |
|
|
181,165 |
|
|
5.9 |
% |
|
BBB |
|
|
115,184 |
|
|
3.6 |
% |
|
|
122,030 |
|
|
3.9 |
% |
|
|
139,453 |
|
|
4.5 |
% |
|
|
138,423 |
|
|
4.4 |
% |
|
|
130,218 |
|
|
4.2 |
% |
|
Non-investment grade |
|
|
79,481 |
|
|
2.5 |
% |
|
|
75,586 |
|
|
2.4 |
% |
|
|
77,887 |
|
|
2.5 |
% |
|
|
71,127 |
|
|
2.2 |
% |
|
|
66,869 |
|
|
2.2 |
% |
|
Total fixed maturities available for sale |
|
$ |
3,179,189 |
|
|
100.0 |
% |
|
$ |
3,155,864 |
|
|
100.0 |
% |
|
$ |
3,111,930 |
|
|
100.0 |
% |
|
$ |
3,176,045 |
|
|
100.0 |
% |
|
$ |
3,079,855 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MATURITY PROFILE OF FIXED MATURITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due in less than one year |
|
$ |
471,367 |
|
|
14.8 |
% |
|
$ |
529,078 |
|
|
16.8 |
% |
|
$ |
508,982 |
|
|
16.4 |
% |
|
$ |
329,405 |
|
|
10.4 |
% |
|
$ |
299,264 |
|
|
9.7 |
% |
|
Due after one through five years |
|
|
1,324,211 |
|
|
41.6 |
% |
|
|
1,534,647 |
|
|
48.6 |
% |
|
|
1,539,509 |
|
|
49.5 |
% |
|
|
1,777,781 |
|
|
55.9 |
% |
|
|
1,769,729 |
|
|
57.4 |
% |
|
Due after five through ten years |
|
|
240,195 |
|
|
7.6 |
% |
|
|
221,741 |
|
|
7.0 |
% |
|
|
178,143 |
|
|
5.7 |
% |
|
|
215,586 |
|
|
6.8 |
% |
|
|
199,011 |
|
|
6.5 |
% |
|
Due after ten years |
|
|
81,109 |
|
|
2.6 |
% |
|
|
91,085 |
|
|
2.9 |
% |
|
|
103,688 |
|
|
3.3 |
% |
|
|
89,371 |
|
|
2.8 |
% |
|
|
84,728 |
|
|
2.8 |
% |
|
Mortgage-backed securities |
|
|
634,066 |
|
|
19.9 |
% |
|
|
405,205 |
|
|
12.8 |
% |
|
|
397,741 |
|
|
12.8 |
% |
|
|
389,868 |
|
|
12.3 |
% |
|
|
396,794 |
|
|
12.9 |
% |
|
Asset-backed securities |
|
|
428,241 |
|
|
13.5 |
% |
|
|
374,108 |
|
|
11.9 |
% |
|
|
383,867 |
|
|
12.3 |
% |
|
|
374,034 |
|
|
11.8 |
% |
|
|
330,329 |
|
|
10.7 |
% |
|
Total fixed maturities available for sale |
|
$ |
3,179,189 |
|
|
100.0 |
% |
|
$ |
3,155,864 |
|
|
100.0 |
% |
|
$ |
3,111,930 |
|
|
100.0 |
% |
|
$ |
3,176,045 |
|
|
100.0 |
% |
|
$ |
3,079,855 |
|
|
100.0 |
% |
|
|
|
As of or for the three months ended |
|
||||||||
|
|
|
June 30, 2007 |
|
Mar. 31, 2007 |
|
Dec. 31, 2006 |
|
Sep. 30, 2006 |
|
June 30, 2006 |
|
|
Average yield to maturity of fixed maturities and short term investments |
|
5.4% |
|
5.1% |
|
5.3% |
|
5.2% |
|
5.5% |
|
|
Average duration of fixed maturities and short term investments |
|
1.3 |
|
1.3 |
|
1.3 |
|
1.4 |
|
1.4 |
|
|
Average credit quality of fixed maturities and short term investments |
|
AA |
|
AA |
|
AA |
|
AA |
|
AA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12 |
|
RenaissanceRe Holdings Ltd.
Summary of Other Investments
|
|
|
June 30, 2007 |
|
Mar. 31, 2007 |
|
Dec. 31, 2006 |
|
Sept. 30, 2006 |
|
June 30, 2006 |
|
|||||
|
TYPE OF INVESTMENT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private equity partnerships |
|
$ |
278,312 |
|
$ |
247,809 |
|
$ |
223,245 |
|
$ |
208,583 |
|
$ |
194,280 |
|
|
Catastrophe bonds |
|
|
123,549 |
|
|
115,865 |
|
|
114,614 |
|
|
50,041 |
|
|
— |
|
|
Senior secured bank loan fund |
|
|
84,136 |
|
|
83,007 |
|
|
81,428 |
|
|
79,831 |
|
|
78,535 |
|
|
Hedge funds |
|
|
72,577 |
|
|
73,283 |
|
|
72,439 |
|
|
125,262 |
|
|
159,837 |
|
|
Non-U.S. convertible fund |
|
|
39,671 |
|
|
37,754 |
|
|
36,080 |
|
|
32,815 |
|
|
32,149 |
|
|
European high yield credit fund |
|
|
33,453 |
|
|
32,847 |
|
|
31,919 |
|
|
29,620 |
|
|
29,022 |
|
|
Medium term note representing an interest in a pool of European fixed income securities |
|
|
30,000 |
|
|
30,000 |
|
|
30,000 |
|
|
30,000 |
|
|
30,000 |
|
|
Miscellaneous other investments |
|
|
11 |
|
|
11 |
|
|
3,104 |
|
|
3,104 |
|
|
3,021 |
|
|
Total other investments |
|
$ |
661,709 |
|
$ |
620,576 |
|
$ |
592,829 |
|
$ |
559,256 |
|
$ |
526,844 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TYPE OF INVESTMENT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private equity partnerships |
|
|
42.0% |
|
|
39.9% |
|
|
37.7% |
|
|
37.2% |
|
|
36.9% |
|
|
Catastrophe bonds |
|
|
18.7% |
|
|
18.7% |
|
|
19.3% |
|
|
8.9% |
|
|
0.0% |
|
|
Senior secured bank loan fund |
|
|
12.7% |
|
|
13.4% |
|
|
13.7% |
|
|
14.3% |
|
|
14.9% |
|
|
Hedge funds |
|
|
11.0% |
|
|
11.8% |
|
|
12.2% |
|
|
22.4% |
|
|
30.3% |
|
|
Non-U.S. convertible fund |
|
|
6.0% |
|
|
6.1% |
|
|
6.1% |
|
|
5.9% |
|
|
6.1% |
|
|
European high yield credit fund |
|
|
5.1% |
|
|
5.3% |
|
|
5.4% |
|
|
5.3% |
|
|
5.5% |
|
|
Medium term note representing an interest in a pool of European fixed income securities |
|
|
4.5% |
|
|
4.8% |
|
|
5.1% |
|
|
5.4% |
|
|
5.7% |
|
|
Miscellaneous other investments |
|
|
0.0% |
|
|
0.0% |
|
|
0.5% |
|
|
0.6% |
|
|
0.6% |
|
|
Total other investments |
|
|
100.0% |
|
|
100.0% |
|
|
100.0% |
|
|
100.0% |
|
|
100.0% |
|
|
|
13 |
|
RenaissanceRe Holdings Ltd.
Reserve for Claims and Claim Expenses
|
June 30, 2007 |
|
|
Case Reserves |
|
|
|
Additional
Case |
|
|
|
IBNR |
|
|
|
Total |
|
|
||||
|
Property catastrophe reinsurance |
|
|
$ |
337,825 |
|
|
|
$ |
258,807 |
|
|
|
$ |
288,602 |
|
|
|
$ |
885,234 |
|
|
|
Specialty reinsurance |
|
|
|
101,025 |
|
|
|
|
75,551 |
|
|
|
|
408,954 |
|
|
|
|
585,530 |
|
|
|
Total Reinsurance |
|
|
|
438,850 |
|
|
|
|
334,358 |
|
|
|
|
697,556 |
|
|
|
|
1,470,764 |
|
|
|
Individual Risk |
|
|
|
261,637 |
|
|
|
|
19,263 |
|
|
|
|
376,552 |
|
|
|
|
657,452 |
|
|
|
Total |
|
|
$ |
700,487 |
|
|
|
$ |
353,621 |
|
|
|
$ |
1,074,108 |
|
|
|
$ |
2,128,216 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property catastrophe reinsurance |
|
|
$ |
380,995 |
|
|
|
$ |
282,113 |
|
|
|
$ |
247,714 |
|
|
|
$ |
910,822 |
|
|
|
Specialty reinsurance |
|
|
|
94,178 |
|
|
|
|
78,215 |
|
|
|
|
406,171 |
|
|
|
|
578,564 |
|
|
|
Total Reinsurance |
|
|
|
475,173 |
|
|
|
|
360,328 |
|
|
|
|
653,885 |
|
|
|
|
1,489,386 |
|
|
|
Individual Risk |
|
|
|
267,059 |
|
|
|
|
21,088 |
|
|
|
|
332,331 |
|
|
|
|
620,478 |
|
|
|
Total |
|
|
$ |
742,232 |
|
|
|
$ |
381,416 |
|
|
|
$ |
986,216 |
|
|
|
$ |
2,109,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property catastrophe reinsurance |
|
|
$ |
366,337 |
|
|
|
$ |
282,544 |
|
|
|
$ |
226,579 |
|
|
|
$ |
875,460 |
|
|
|
Specialty reinsurance |
|
|
|
104,010 |
|
|
|
|
77,315 |
|
|
|
|
412,466 |
|
|
|
|
593,791 |
|
|
|
Total Reinsurance |
|
|
|
470,347 |
|
|
|
|
359,859 |
|
|
|
|
639,045 |
|
|
|
|
1,469,251 |
|
|
|
Individual Risk |
|
|
|
272,119 |
|
|
|
|
15,611 |
|
|
|
|
341,174 |
|
|
|
|
628,904 |
|
|
|
Total |
|
|
$ |
742,466 |
|
|
|
$ |
375,470 |
|
|
|
$ |
980,219 |
|
|
|
$ |
2,098,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property catastrophe reinsurance |
|
|
$ |
432,924 |
|
|
|
$ |
265,016 |
|
|
|
$ |
221,404 |
|
|
|
$ |
919,344 |
|
|
|
Specialty reinsurance |
|
|
|
104,298 |
|
|
|
|
75,811 |
|
|
|
|
414,250 |
|
|
|
|
594,359 |
|
|
|
Total Reinsurance |
|
|
|
537,222 |
|
|
|
|
340,827 |
|
|
|
|
635,654 |
|
|
|
|
1,513,703 |
|
|
|
Individual Risk |
|
|
|
286,624 |
|
|
|
|
19,774 |
|
|
|
|
335,112 |
|
|
|
|
641,510 |
|
|
|
Total |
|
|
$ |
823,846 |
|
|
|
$ |
360,601 |
|
|
|
$ |
970,766 |
|
|
|
$ |
2,155,213 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property catastrophe reinsurance |
|
|
$ |
498,426 |
|
|
|
$ |
309,485 |
|
|
|
$ |
224,725 |
|
|
|
$ |
1,032,636 |
|
|
|
Specialty reinsurance |
|
|
|
175,937 |
|
|
|
|
88,563 |
|
|
|
|
414,323 |
|
|
|
|
678,823 |
|
|
|
Total Reinsurance |
|
|
|
674,363 |
|
|
|
|
398,048 |
|
|
|
|
639,048 |
|
|
|
|
1,711,459 |
|
|
|
Individual Risk |
|
|
|
284,780 |
|
|
|
|
15,566 |
|
|
|
|
335,720 |
|
|
|
|
636,066 |
|
|
|
Total |
|
|
$ |
959,143 |
|
|
|
$ |
413,614 |
|
|
|
$ |
974,768 |
|
|
|
$ |
2,347,525 |
|
|
|
|
14 |
|
RenaissanceRe Holdings Ltd.
Paid to Incurred Analysis
|
|
|
Three months ended June 30, 2007 |
|
|
Three months ended June 30, 2006 |
|
|
||||||||||||||||||
|
|
|
|
Gross |
|
|
|
Recoveries |
|
|
|
Net |
|
|
|
Gross |
|
|
|
Recoveries |
|
|
|
Net |
|
|
|
Reserve for losses and loss expenses, beginning of period |
|
$ |
2,109,864 |
|
|
$ |
248,599 |
|
|
$ |
1,861,265 |
|
|
$ |
2,419,252 |
|
|
$ |
625,697 |
|
|
$ |
1,793,555 |
|
|
|
Incurred losses and loss expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current year |
|
|
235,709 |
|
|
|
37,708 |
|
|
|
198,001 |
|
|
|
230,094 |
|
|
|
11,426 |
|
|
|
218,668 |
|
|
|
Prior years |
|
|
(63,890 |
) |
|
|
(4,743 |
) |
|
|
(59,147 |
) |
|
|
(24,300 |
) |
|
|
(12,968 |
) |
|
|
(11,332 |
) |
|
|
Total incurred losses and loss expenses |
|
|
171,819 |
|
|
|
32,965 |
|
|
|
138,854 |
|
|
|
205,794 |
|
|
|
(1,542 |
) |
|
|
207,336 |
|
|
|
Paid losses and loss expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current year |
|
|
7,797 |
|
|
|
2,220 |
|
|
|
5,577 |
|
|
|
32,979 |
|
|
|
41 |
|
|
|
32,938 |
|
|
|
Prior years |
|
|
145,670 |
|
|
|
42,354 |
|
|
|
103,316 |
|
|
|
244,542 |
|
|
|
159,558 |
|
|
|
84,984 |
|
|
|
Total paid losses and loss expenses |
|
|
153,467 |
|
|
|
44,574 |
|
|
|
108,893 |
|
|
|
277,521 |
|
|
|
159,599 |
|
|
|
117,922 |
|
|
|
Reserve for losses and loss expenses, end of period |
|
$ |
2,128,216 |
|
|
$ |
236,990 |
|
|
$ |
1,891,226 |
|
|
$ |
2,347,525 |
|
|
$ |
464,556 |
|
|
$ |
1,882,969 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2007 |
|
|
Six months ended June 30, 2006 |
|
|
||||||||||||||||||
|
|
|
|
Gross |
|
|
|
Recoveries |
|
|
|
Net |
|
|
|
Gross |
|
|
|
Recoveries |
|
|
|
Net |
|
|
|
Reserve for losses and loss expenses, beginning of period |
|
$ |
2,098,155 |
|
|
$ |
301,854 |
|
|
$ |
1,796,301 |
|
|
$ |
2,614,551 |
|
|
$ |
673,190 |
|
|
$ |
1,941,361 |
|
|
|
Incurred losses and loss expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current year |
|
|
449,747 |
|
|
|
58,681 |
|
|
|
391,066 |
|
|
|
389,845 |
|
|
|
30,097 |
|
|
|
359,748 |
|
|
|
Prior years |
|
|
(102,542 |
) |
|
|
3,678 |
|
|
|
(106,220 |
) |
|
|
(70,865 |
) |
|
|
(17,631 |
) |
|
|
(53,234 |
) |
|
|
Total incurred losses and loss expenses |
|
|
347,205 |
|
|
|
62,359 |
|
|
|
284,846 |
|
|
|
318,980 |
|
|
|
12,466 |
|
|
|
306,514 |
|
|
|
Paid losses and loss expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current year |
|
|
19,890 |
|
|
|
2,966 |
|
|
|
16,924 |
|
|
|
34,644 |
|
|
|
41 |
|
|
|
34,603 |
|
|
|
Prior years |
|
|
297,254 |
|
|
|
124,257 |
|
|
|
172,997 |
|
|
|
551,362 |
|
|
|
221,059 |
|
|
|
330,303 |
|
|
|
Total paid losses and loss expenses |
|
|
317,144 |
|
|
|
127,223 |
|
|
|
189,921 |
|
|
|
586,006 |
|
|
|
221,100 |
|
|
|
364,906 |
|
|
|
Reserve for losses and loss expenses, end of period |
|
$ |
2,128,216 |
|
|
$ |
236,990 |
|
|
$ |
1,891,226 |
|
|
$ |
2,347,525 |
|
|
$ |
464,556 |
|
|
$ |
1,882,969 |
|
|
|
|
15 |
|
RenaissanceRe Holdings Ltd.
Equity in Earnings of Other Ventures
|
|
|
Three months ended |
|
||||||||||||||
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
||||||
|
ChannelRe |
|
$ |
5,189 |
|
$ |
4,829 |
|
$ |
5,653 |
|
|
$ |
5,142 |
|
$ |
4,639 |
|
|
Top Layer Re |
|
|
3,761 |
|
|
3,933 |
|
|
3,232 |
|
|
|
3,176 |
|
|
3,506 |
|
|
Starbound |
|
|
302 |
|
|
1,686 |
|
|
880 |
|
|
|
941 |
|
|
305 |
|
|
Starbound II |
|
|
344 |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
Tower Hill |
|
|
79 |
|
|
253 |
|
|
(1,141 |
) |
|
|
872 |
|
|
771 |
|
|
Total equity in earnings of other ventures |
|
$ |
9,675 |
|
$ |
10,701 |
|
$ |
8,624 |
|
|
$ |
10,131 |
|
$ |
9,221 |
|
|
|
|
Six months ended |
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
June 30, 2007 |
|
June 30, 2006 |
|
|
|
|
|
|
|
|
|
|
|||
|
Channel Re |
|
$ |
10,018 |
|
$ |
8,302 |
|
|
|
|
|
|
|
|
|
|
|
|
Top Layer Re |
|
|
7,694 |
|
|
6,295 |
|
|
|
|
|
|
|
|
|
|
|
|
Starbound |
|
|
1,988 |
|
|
305 |
|
|
|
|
|
|
|
|
|
|
|
|
Starbound II |
|
|
344 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
Tower Hill |
|
|
332 |
|
|
871 |
|
|
|
|
|
|
|
|
|
|
|
|
Total equity in earnings of other ventures |
|
$ |
20,376 |
|
$ |
15,773 |
|
|
|
|
|
|
|
|
|
|
|
|
|
16 |
|
RenaissanceRe Holdings Ltd.
Ratings
|
At June 30, 2007 |
|
S&P |
|
A.M. Best |
|
Moody’s |
|
|
REINSURANCE SEGMENT1 |
|
|
|
|
|
|
|
|
Renaissance Reinsurance |
|
A+ |
|
A |
|
A2 |
|
|
DaVinci |
|
A |
|
A |
|
— |
|
|
Top Layer Re |
|
AA |
|
A+ |
|
— |
|
|
Renaissance Europe |
|
— |
|
A |
|
— |
|
|
INDIVIDUAL RISK SEGMENT1 |
|
|
|
|
|
|
|
|
Glencoe |
|
— |
|
A- |
|
— |
|
|
Stonington |
|
— |
|
A- |
|
— |
|
|
Stonington Lloyds |
|
— |
|
A- |
|
— |
|
|
Lantana |
|
— |
|
A- |
|
— |
|
|
RENAISSANCERE2 |
|
A- |
|
bbb+ |
|
Baa1 |
|
|
1 |
The S&P, A.M. Best and Moody’s ratings for the companies in the Reinsurance and Individual Risk segments reflect the insurer’s financial strength rating. |
|
2 |
The S&P, A.M. Best and Moody’s ratings for RenaissanceRe represent the credit ratings on its senior unsecured debt. |
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17 |
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RenaissanceRe Holdings Ltd.
Comments on Regulation G
In addition to the GAAP financial measures set forth in this Financial Supplement, the Company has included certain non-GAAP financial measures in this Financial Supplement 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 - diluted” and “operating return on average common equity - annualized”. The following is a reconciliation of 1) net income available to common shareholders to operating income available to common shareholders; 2) net income available to common shareholders per common share - diluted to operating income available to common shareholders per common share - diluted; and 3) return on average common equity - annualized to operating return on average common equity, annualized:
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Three months ended |
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Six months ended |
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June 30, 2007 |
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March 31, 2007 |
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Dec. 31, |
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Sept. 30, 2006 |
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June 30, 2006 |
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June 30, 2007 |
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June 30, 2006 |
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Net income available to common shareholders |
|
$ |
183,166 |
|
|
$ |
190,805 |
|
|
$ |
201,135 |
|
|
$ |
251,112 |
|
|
$ |
130,408 |
|
|
$ |
373,971 |
|
|
$ |
309,388 |
|
|
Adjustment for net realized losses (gains) on investments |
|
|
11,566 |
|
|
|
(4,085 |
) |
|
|
(2,489 |
) |
|
|
(4,151 |
) |
|
|
24,348 |
|
|
|
7,481 |
|
|
|
41,104 |
|
|
Operating income available to common shareholders |
|
$ |
194,732 |
|
|
$ |
186,720 |
|
|
$ |
198,646 |
|
|
$ |
246,961 |
|
|
$ |
154,756 |
|
|
$ |
381,452 |
|
|
$ |
350,492 |
|
|
Net income available to common shareholders per common share - diluted |
|
$ |
2.53 |
|
|
$ |
2.63 |
|
|
$ |
2.78 |
|
|
$ |
3.48 |
|
|
$ |
1.81 |
|
|
$ |
5.16 |
|
|
$ |
4.31 |
|
|
Adjustment for net realized losses (gains) on investments |
|
|
0.16 |
|
|
|
(0.06 |
) |
|
|
(0.04 |
) |
|
|
(0.06 |
) |
|
|
0.34 |
|
|
|
0.10 |
|
|
|
0.57 |
|
|
Operating income available to common shareholders per common share - diluted |
|
$ |
2.69 |
|
|
$ |
2.57 |
|
|
$ |
2.74 |
|
|
$ |
3.42 |
|
|
$ |
2.15 |
|
|
$ |
5.26 |
|
|
$ |
4.88 |
|
|
Return on average common equity - annualized |
|
|
26.8 |
% |
|
|
29.7 |
% |
|
|
33.7 |
% |
|
|
46.3 |
% |
|
|
26.4 |
% |
|
|
28.2 |
% |
|
|
32.5 |
% |
|
Adjustment for net realized losses (gains) on investments |
|
|
1.7 |
% |
|
|
(0.6 |
%) |
|
|
(0.4 |
%) |
|
|
(0.7 |
%) |
|
|
4.9 |
% |
|
|
0.6 |
% |
|
|
4.3 |
% |
|
Operating return on average common equity - annualized |
|
|
28.5 |
% |
|
|
29.1 |
% |
|
|
33.3 |
% |
|
|
45.6 |
% |
|
|
31.3 |
% |
|
|
28.8 |
% |
|
|
36.8 |
% |
The Company has also included in this Press Release “managed catastrophe premiums” and “managed catastrophe premiums, net of fully-collateralized joint ventures”. “Managed catastrophe premiums” is defined as gross catastrophe premiums written by Renaissance Reinsurance and its related joint ventures, excluding catastrophe premiums assumed from the Company’s Individual Risk segment. “Managed catastrophe premiums” differ from total catastrophe premiums, which the Company believes is the most directly comparable GAAP measure, due to the inclusion of catastrophe premiums written on behalf of the Company’s joint venture Top Layer Re, which is accounted for under the equity method of accounting and the exclusion of catastrophe premiums assumed from the Company’s Individual Risk segment. “Managed catastrophe premiums, net of fully-collateralized joint ventures” differ from total catastrophe premiums, which the Company believes is the most directly comparable GAAP measure, due to: 1) the inclusion of catastrophe premiums written on behalf of the Company’s joint venture Top Layer Re, which is accounted for under the equity method of accounting; 2) the exclusion of catastrophe premiums assumed from the Company’s Individual Risk segment; and 3) the deduction of catastrophe premiums that are written by the Company and ceded directly to the Company’s fully-collateralized joint ventures which include Starbound Reinsurance Ltd., Starbound Reinsurance II Ltd. and Timicuan Reinsurance Ltd. The Company’s management believes “managed catastrophe premiums” is useful to investors and other interested parties because it provides a measure of total catastrophe reinsurance premiums assumed by the Company through its consolidated subsidiaries and related joint ventures. The Company believes “managed catastrophe premiums, net of fully-collateralized joint ventures” is also a useful measure to investors and other interested parties because it provides a measure of total catastrophe reinsurance premiums assumed by the Company through its consolidated subsidiaries and related joint ventures, net of catastrophe premiums assumed from the Company’s Individual Risk segment and net of catastrophe premiums written directly on behalf of the Company’s fully-collateralized joint ventures.
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18 |
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