Bermuda | 001-14428 | 98-014-1974 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Renaissance House 12 Crow Lane, Pembroke Bermuda | HM 19 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | 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. |
Item 9.01. | Financial Statements and Exhibits. |
* | 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 HOLDINGS LTD. | ||||
Date: | By: | /s/ Robert Qutub | ||
January 31, 2018 | Robert Qutub | |||
Executive Vice President and Chief Financial Officer |
* | 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. |
• | Growth in gross premiums written of $84.7 million, or 26.2%, to $407.8 million, in the fourth quarter of 2017, compared to the fourth quarter of 2016, driven by increases of $42.7 million and $42.0 million, in the Company’s Property segment and Casualty and Specialty segment, respectively. |
• | Total investment result was a gain of $65.7 million in the fourth quarter of 2017, generating a solid annualized total investment return of 2.6%. The Company’s portfolio of fixed maturity and short term investments had a yield to maturity of 2.5% at December 31, 2017, contributing $50.2 million of net investment income to the total investment result in the fourth quarter of 2017. |
• | Underwriting loss of $10.4 million and a combined ratio of 102.5% in the fourth quarter of 2017. The Property segment incurred an underwriting loss of $22.7 million and a combined ratio of 110.6%. The Casualty and Specialty segment generated underwriting income of $11.5 million and a combined ratio of 94.5%. |
• | During the fourth quarter of 2017, the wildfires in California (the “Q4 2017 California Wildfires”) resulted in an underwriting loss of $154.4 million and added 37.6 percentage points to the Company’s combined ratio. Also impacting the underwriting result in the fourth quarter of 2017 was a $53.5 million net positive impact reflecting changes to the initial estimate of underwriting losses associated with Hurricanes Harvey, Irma and Maria and the Mexico City Earthquake (collectively, the “Q3 2017 Catastrophe Events”) which occurred in the third quarter of 2017, partially offset by $49.6 million of underwriting losses associated with aggregate loss contracts (the “Q4 2017 Aggregate Losses”). |
• | As a result of the reduction in the U.S. corporate tax rate from 35% to 21% effective January 1, 2018 pursuant to the Tax Cuts and Jobs Act of 2017 (the “Tax Bill”), which was enacted on December 22, 2017, the Company wrote-down a portion of its U.S. deferred tax asset during the fourth quarter of 2017, increasing its net loss attributable to RenaissanceRe common shareholders by $36.7 million. |
Three months ended December 31, 2017 | Change in Q3 2017 Catastrophe Events (1) | Q4 2017 California Wildfires | Q4 2017 Aggregate Losses (2) | Total | |||||||||||||
(in thousands, except percentages) | |||||||||||||||||
Decrease (increase) in net claims and claims expenses incurred | $ | 59,883 | $ | (167,749 | ) | $ | (49,159 | ) | $ | (157,025 | ) | ||||||
Assumed reinstatement premiums earned | (1,664 | ) | 12,065 | — | 10,401 | ||||||||||||
Ceded reinstatement premiums earned | (5,650 | ) | (565 | ) | — | (6,215 | ) | ||||||||||
Earned (lost) profit commissions | 886 | 1,865 | (445 | ) | 2,306 | ||||||||||||
Net positive (negative) impact on underwriting result | 53,455 | (154,384 | ) | (49,604 | ) | (150,533 | ) | ||||||||||
Redeemable noncontrolling interest - DaVinciRe | (23,824 | ) | 50,367 | 18,850 | 45,393 | ||||||||||||
Net positive (negative) impact | $ | 29,631 | $ | (104,017 | ) | $ | (30,754 | ) | $ | (105,140 | ) | ||||||
Percentage point impact on consolidated combined ratio | (12.4 | ) | 37.6 | 11.8 | 36.1 | ||||||||||||
Net positive (negative) impact on Property segment underwriting result | $ | 52,874 | $ | (154,384 | ) | $ | (49,604 | ) | $ | (151,114 | ) | ||||||
Net positive (negative) impact on Casualty and Specialty segment underwriting result | 581 | — | — | 581 | |||||||||||||
Net positive (negative) impact on underwriting result | $ | 53,455 | $ | (154,384 | ) | $ | (49,604 | ) | $ | (150,533 | ) | ||||||
(1) | An initial estimate of the net negative impact from the Q3 2017 Catastrophe Events was recorded in the Company's consolidated financial statements during the third quarter of 2017. The amounts noted in the table above reflect changes in the initial estimates of the Q3 2017 Catastrophe Events recorded in the fourth quarter of 2017. |
(2) | Certain of the Company's aggregate loss reinsurance contracts were triggered during the third quarter of 2017 primarily as a result of losses associated with the Q3 2017 Catastrophe Events, and accordingly, the Company incurred losses under certain of its aggregate loss reinsurance contracts during the third quarter of 2017. As a result of additional catastrophe activity in the fourth quarter of 2017, the Company recorded additional aggregate losses under certain of its aggregate loss reinsurance contracts. |
• | The Company’s total investment result, which includes the sum of net investment income and net realized and unrealized gains and losses on investments, was a gain of $65.7 million in the fourth quarter of 2017, compared to a loss of $4.0 million in the fourth quarter of 2016, an increase of $69.8 million. The Company’s fixed maturity investment portfolio generated higher net investment income during the fourth quarter of 2017, compared to the fourth quarter of 2016, principally driven by higher average invested assets and the impact of interest rate increases during the current year. In addition, the Company’s other investments portfolio experienced higher returns during the fourth quarter of 2017, compared to the fourth quarter of 2016, principally driven by its private equity investments and catastrophe bond portfolio. |
• | Effective October 1, 2017, DaVinciRe completed an equity raise of $248.6 million from third-party investors and RenaissanceRe. In addition, RenaissanceRe sold an aggregate of $49.7 million of its shares in DaVinciRe to third-party investors. The Company’s noncontrolling economic ownership in DaVinciRe subsequent to these transactions was 22.1%, effective October 1, 2017. |
• | Effective October 1, 2017, Upsilon RFO issued $46.5 million of non-voting preference shares to investors, including $17.7 million to the Company. Effective October 1, 2017, the Company’s participation in the risks assumed by Upsilon RFO was 16.0%. |
• | Effective January 1, 2018, Upsilon RFO issued $600.5 million of non-voting preference shares to investors, including $75.0 million to the Company. Effective January 1, 2018, the Company’s participation in the risks assumed by Upsilon RFO was 14.1%. |
• | Effective January 1, 2018, third-party investors subscribed for an aggregate of $41.5 million of the participating, non-voting common shares of Medici and the Company redeemed an aggregate of $25.0 million of the participating, non-voting common shares of Medici. As a result of these transactions, the Company’s noncontrolling economic ownership in Medici was 19.7%, effective January 1, 2018. |
• | During the first quarter of 2018, the Company announced a commitment to make a minority investment in Langhorne Holdings LLC, a global reinsurer formed to target large in-force life and annuity blocks, and executed a definitive agreement to acquire a minority shareholding in Catalina Holdings (Bermuda) Ltd, a long-term consolidator in the non-life insurance/reinsurance run-off sector, subject to regulatory approval. The Company believes these investments are attractive because of their expected returns, and because they provide diversification benefits, information and exposure to other aspects of the market. |
• | Growth in gross premiums written of $423.0 million, or 17.8%, to $2.8 billion, in 2017, compared to 2016. Included in gross premiums written in 2017 was $180.2 million of reinstatement premiums written primarily related to the Q3 2017 Catastrophe Events and Q4 2017 California Wildfires, compared to $22.0 million of reinstatement premiums written in 2016 related to the Fort McMurray Wildfire, 2016 Texas Events and Hurricane Matthew. |
• | Total investment result was a gain of $358.0 million in 2017, generating a solid annualized total investment return of 3.6%. The Company’s portfolio of fixed maturity and short term investments had a yield to maturity of 2.5% at December 31, 2017, contributing $190.7 million of net investment income to the total investment result in 2017. |
• | Underwriting loss of $651.5 million and a combined ratio of 137.9% in 2017, driven by total underwriting losses of $989.2 million related to the Q3 2017 Catastrophe Events, Q4 2017 California Wildfires and certain losses associated with aggregate loss contracts (the “2017 Aggregate Losses”), which were primarily triggered by losses associated with these events, adding a total of 59.4 percentage points to the Company’s combined ratio in 2017. |
• | Net loss attributable to RenaissanceRe common shareholders of $244.8 million in 2017 included total net negative impact of $720.2 million related to the Q3 2017 Catastrophe Events, Q4 2017 California Wildfires and 2017 Aggregate Losses. |
Year ended December 31, 2017 | Q3 2017 Catastrophe Events | Q4 2017 California Wildfires | 2017 Aggregate Losses | Total | |||||||||||||
(in thousands, except percentages) | |||||||||||||||||
Net claims and claim expenses incurred | $ | (820,608 | ) | $ | (167,749 | ) | $ | (177,938 | ) | $ | (1,166,295 | ) | |||||
Reinstatement premiums earned | 166,609 | 12,065 | 1,500 | 180,174 | |||||||||||||
Ceded reinstatement premiums earned | (34,455 | ) | (565 | ) | — | (35,020 | ) | ||||||||||
Earned profit commissions | 22,378 | 1,865 | 7,701 | 31,944 | |||||||||||||
Net negative impact on underwriting result | (666,076 | ) | (154,384 | ) | (168,737 | ) | (989,197 | ) | |||||||||
Redeemable noncontrolling interest - DaVinciRe | 161,735 | 50,367 | 56,850 | 268,952 | |||||||||||||
Net negative impact on net loss attributable to RenaissanceRe common shareholders | $ | (504,341 | ) | $ | (104,017 | ) | $ | (111,887 | ) | $ | (720,245 | ) | |||||
Percentage point impact on consolidated combined ratio | 38.8 | 8.8 | 9.8 | 59.4 | |||||||||||||
Net negative impact on Property segment underwriting result | $ | (636,641 | ) | $ | (154,384 | ) | $ | (168,737 | ) | $ | (959,762 | ) | |||||
Net negative impact on Casualty and Specialty segment underwriting result | (29,435 | ) | — | — | (29,435 | ) | |||||||||||
Net negative impact on underwriting result | $ | (666,076 | ) | $ | (154,384 | ) | $ | (168,737 | ) | $ | (989,197 | ) | |||||
• | During 2017, the Company repurchased an aggregate of 1.3 million common shares in open market transactions at an aggregate cost of $188.6 million and an average price of $142.67 per common share. |
• | Net loss attributable to noncontrolling interests in 2017 was $132.3 million, compared to net income attributable to noncontrolling interests of $127.1 million in 2016, with the deterioration principally due to a decrease in the profitability of DaVinciRe primarily as a result of underwriting losses associated with Q3 2017 Catastrophe Events, Q4 2017 California Wildfires and 2017 Aggregate Losses. |
• | The Company’s total investment result, which includes the sum of net investment income, net realized and unrealized gains on investments, and the change in net unrealized gains on fixed maturity investments available for sale, was $358.0 million in 2017, compared to $321.2 million in 2016, an increase of $36.8 million. The Company’s fixed maturity investment portfolio generated higher net investment income during 2017, compared to 2016, principally driven by higher average invested assets and the impact of interest rate increases during the current year. In addition, the Company’s portfolio of other investments experienced higher returns during 2017, compared to 2016, principally driven by its private equity investments. The Company also experienced a $24.2 million increase in net realized and unrealized gains on equity investments trading driven by positive returns in the global equity markets, combined with the strong performance of a number of our equity positions. |
• | Corporate expenses decreased $18.8 million to $18.6 million in 2017, compared to $37.4 million in 2016, primarily reflecting $15.4 million of expenses related to executive departures recorded in 2016 that did not reoccur in 2017. |
INVESTOR CONTACT: | MEDIA CONTACT: |
Keith McCue | Elizabeth Tillman |
Senior Vice President, Finance and Investor Relations | Director - Communications |
RenaissanceRe Holdings Ltd. | RenaissanceRe Holdings Ltd. |
(441) 239-4830 | (212) 238-9224 |
or | |
Kekst and Company | |
Peter Hill or Dawn Dover | |
(212) 521-4800 |
RenaissanceRe Holdings Ltd. | |||||||||||||||
Summary Consolidated Statements of Operations | |||||||||||||||
(in thousands of United States Dollars, except per share amounts and percentages) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended | Year ended | ||||||||||||||
December 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | ||||||||||||
Revenues | |||||||||||||||
Gross premiums written | $ | 407,766 | $ | 323,091 | $ | 2,797,540 | $ | 2,374,576 | |||||||
Net premiums written | $ | 288,223 | $ | 219,499 | $ | 1,871,325 | $ | 1,535,312 | |||||||
Decrease (increase) in unearned premiums | 133,250 | 132,402 | (153,750 | ) | (131,882 | ) | |||||||||
Net premiums earned | 421,473 | 351,901 | 1,717,575 | 1,403,430 | |||||||||||
Net investment income | 73,464 | 47,316 | 222,209 | 181,726 | |||||||||||
Net foreign exchange (losses) gains | (490 | ) | (5,420 | ) | 10,628 | (13,788 | ) | ||||||||
Equity in earnings of other ventures | 2,200 | 4,960 | 8,030 | 963 | |||||||||||
Other income | 2,362 | 5,177 | 9,415 | 14,178 | |||||||||||
Net realized and unrealized (losses) gains on investments | (7,716 | ) | (49,967 | ) | 135,822 | 141,328 | |||||||||
Total revenues | 491,293 | 353,967 | 2,103,679 | 1,727,837 | |||||||||||
Expenses | |||||||||||||||
Net claims and claim expenses incurred | 304,064 | 123,901 | 1,861,428 | 530,831 | |||||||||||
Acquisition expenses | 98,598 | 74,146 | 346,892 | 289,323 | |||||||||||
Operational expenses | 29,192 | 49,948 | 160,778 | 197,749 | |||||||||||
Corporate expenses | 4,237 | 11,888 | 18,572 | 37,402 | |||||||||||
Interest expense | 11,777 | 10,534 | 44,193 | 42,144 | |||||||||||
Total expenses | 447,868 | 270,417 | 2,431,863 | 1,097,449 | |||||||||||
Income (loss) before taxes | 43,425 | 83,550 | (328,184 | ) | 630,388 | ||||||||||
Income tax (expense) benefit | (41,226 | ) | 7,700 | (26,487 | ) | (340 | ) | ||||||||
Net income (loss) | 2,199 | 91,250 | (354,671 | ) | 630,048 | ||||||||||
Net (income) loss attributable to noncontrolling interests | (56 | ) | (16,219 | ) | 132,282 | (127,086 | ) | ||||||||
Net income (loss) attributable to RenaissanceRe | 2,143 | 75,031 | (222,389 | ) | 502,962 | ||||||||||
Dividends on preference shares | (5,595 | ) | (5,595 | ) | (22,381 | ) | (22,381 | ) | |||||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders | $ | (3,452 | ) | $ | 69,436 | $ | (244,770 | ) | $ | 480,581 | |||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share - basic | $ | (0.09 | ) | $ | 1.70 | $ | (6.15 | ) | $ | 11.50 | |||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share - diluted | $ | (0.09 | ) | $ | 1.69 | $ | (6.15 | ) | $ | 11.43 | |||||
Operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted (1) | $ | 1.05 | $ | 2.66 | $ | (8.35 | ) | $ | 8.10 | ||||||
Average shares outstanding - basic | 39,478 | 40,474 | 39,854 | 41,314 | |||||||||||
Average shares outstanding - diluted | 39,478 | 40,707 | 39,854 | 41,559 | |||||||||||
Net claims and claim expense ratio | 72.1 | % | 35.2 | % | 108.4 | % | 37.8 | % | |||||||
Underwriting expense ratio | 30.4 | % | 35.3 | % | 29.5 | % | 34.7 | % | |||||||
Combined ratio | 102.5 | % | 70.5 | % | 137.9 | % | 72.5 | % | |||||||
Return on average common equity - annualized | (0.3 | )% | 6.3 | % | (5.7 | )% | 11.0 | % | |||||||
Operating return on average common equity - annualized (1) | 4.2 | % | 9.9 | % | (7.7 | )% | 7.9 | % |
(1) | See Comments on Regulation G for a reconciliation of non-GAAP financial measures. |
RenaissanceRe Holdings Ltd. | |||||||
Summary Consolidated Balance Sheets | |||||||
(in thousands of United States Dollars, except per share amounts) | |||||||
December 31, 2017 | December 31, 2016 | ||||||
Assets | (Unaudited) | (Audited) | |||||
Fixed maturity investments trading, at fair value | $ | 7,426,555 | $ | 6,891,244 | |||
Short term investments, at fair value | 991,863 | 1,368,379 | |||||
Equity investments trading, at fair value | 388,254 | 383,313 | |||||
Other investments, at fair value | 594,793 | 549,805 | |||||
Investments in other ventures, under equity method | 101,974 | 124,227 | |||||
Total investments | 9,503,439 | 9,316,968 | |||||
Cash and cash equivalents | 1,361,592 | 421,157 | |||||
Premiums receivable | 1,304,622 | 987,323 | |||||
Prepaid reinsurance premiums | 533,546 | 441,260 | |||||
Reinsurance recoverable | 1,586,630 | 279,564 | |||||
Accrued investment income | 42,235 | 38,076 | |||||
Deferred acquisition costs | 426,551 | 335,325 | |||||
Receivable for investments sold | 103,145 | 105,841 | |||||
Other assets | 121,226 | 175,382 | |||||
Goodwill and other intangibles | 243,145 | 251,186 | |||||
Total assets | $ | 15,226,131 | $ | 12,352,082 | |||
Liabilities, Noncontrolling Interests and Shareholders’ Equity | |||||||
Liabilities | |||||||
Reserve for claims and claim expenses | $ | 5,080,408 | $ | 2,848,294 | |||
Unearned premiums | 1,477,609 | 1,231,573 | |||||
Debt | 989,623 | 948,663 | |||||
Reinsurance balances payable | 989,090 | 673,983 | |||||
Payable for investments purchased | 208,749 | 305,714 | |||||
Other liabilities | 792,771 | 301,684 | |||||
Total liabilities | 9,538,250 | 6,309,911 | |||||
Redeemable noncontrolling interest | 1,296,506 | 1,175,594 | |||||
Shareholders’ Equity | |||||||
Preference shares | 400,000 | 400,000 | |||||
Common shares | 40,024 | 41,187 | |||||
Additional paid-in capital | 37,355 | 216,558 | |||||
Accumulated other comprehensive income | 224 | 1,133 | |||||
Retained earnings | 3,913,772 | 4,207,699 | |||||
Total shareholders’ equity attributable to RenaissanceRe | 4,391,375 | 4,866,577 | |||||
Total liabilities, noncontrolling interests and shareholders’ equity | $ | 15,226,131 | $ | 12,352,082 | |||
Book value per common share | $ | 99.72 | $ | 108.45 |
RenaissanceRe Holdings Ltd. | |||||||||||||||
Supplemental Financial Data - Segment Information | |||||||||||||||
(in thousands of United States Dollars, except percentages) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended December 31, 2017 | |||||||||||||||
Property | Casualty and Specialty | Other | Total | ||||||||||||
Gross premiums written | $ | 95,166 | $ | 312,600 | $ | — | $ | 407,766 | |||||||
Net premiums written | $ | 82,286 | $ | 205,926 | $ | 11 | $ | 288,223 | |||||||
Net premiums earned | $ | 215,046 | $ | 206,416 | $ | 11 | $ | 421,473 | |||||||
Net claims and claim expenses incurred | 181,712 | 123,225 | (873 | ) | 304,064 | ||||||||||
Acquisition expenses | 38,699 | 59,898 | 1 | 98,598 | |||||||||||
Operational expenses | 17,353 | 11,840 | (1 | ) | 29,192 | ||||||||||
Underwriting (loss) income | $ | (22,718 | ) | $ | 11,453 | $ | 884 | (10,381 | ) | ||||||
Net investment income | 73,464 | 73,464 | |||||||||||||
Net foreign exchange losses | (490 | ) | (490 | ) | |||||||||||
Equity in earnings of other ventures | 2,200 | 2,200 | |||||||||||||
Other income | 2,362 | 2,362 | |||||||||||||
Net realized and unrealized losses on investments | (7,716 | ) | (7,716 | ) | |||||||||||
Corporate expenses | (4,237 | ) | (4,237 | ) | |||||||||||
Interest expense | (11,777 | ) | (11,777 | ) | |||||||||||
Income before taxes and redeemable noncontrolling interests | 43,425 | ||||||||||||||
Income tax expense | (41,226 | ) | (41,226 | ) | |||||||||||
Net income attributable to redeemable noncontrolling interests | (56 | ) | (56 | ) | |||||||||||
Dividends on preference shares | (5,595 | ) | (5,595 | ) | |||||||||||
Net income attributable to RenaissanceRe common shareholders | $ | (3,452 | ) | ||||||||||||
Net claims and claim expenses incurred – current accident year | $ | 210,340 | $ | 131,057 | $ | — | $ | 341,397 | |||||||
Net claims and claim expenses incurred – prior accident years | (28,628 | ) | (7,832 | ) | (873 | ) | (37,333 | ) | |||||||
Net claims and claim expenses incurred – total | $ | 181,712 | $ | 123,225 | $ | (873 | ) | $ | 304,064 | ||||||
Net claims and claim expense ratio – current accident year | 97.8 | % | 63.5 | % | 81.0 | % | |||||||||
Net claims and claim expense ratio – prior accident years | (13.3 | )% | (3.8 | )% | (8.9 | )% | |||||||||
Net claims and claim expense ratio – calendar year | 84.5 | % | 59.7 | % | 72.1 | % | |||||||||
Underwriting expense ratio | 26.1 | % | 34.8 | % | 30.4 | % | |||||||||
Combined ratio | 110.6 | % | 94.5 | % | 102.5 | % | |||||||||
Three months ended December 31, 2016 | |||||||||||||||
Property | Casualty and Specialty | Other | Total | ||||||||||||
Gross premiums written | $ | 52,447 | $ | 270,644 | $ | — | $ | 323,091 | |||||||
Net premiums written | $ | 50,960 | $ | 168,396 | $ | 143 | $ | 219,499 | |||||||
Net premiums earned | $ | 181,998 | $ | 169,761 | $ | 142 | $ | 351,901 | |||||||
Net claims and claim expenses incurred | 25,927 | 98,279 | (305 | ) | 123,901 | ||||||||||
Acquisition expenses | 26,418 | 47,728 | — | 74,146 | |||||||||||
Operational expenses | 29,201 | 20,723 | 24 | 49,948 | |||||||||||
Underwriting income | $ | 100,452 | $ | 3,031 | $ | 423 | 103,906 | ||||||||
Net investment income | 47,316 | 47,316 | |||||||||||||
Net foreign exchange losses | (5,420 | ) | (5,420 | ) | |||||||||||
Equity in earnings of other ventures | 4,960 | 4,960 | |||||||||||||
Other income | 5,177 | 5,177 | |||||||||||||
Net realized and unrealized losses on investments | (49,967 | ) | (49,967 | ) | |||||||||||
Corporate expenses | (11,888 | ) | (11,888 | ) | |||||||||||
Interest expense | (10,534 | ) | (10,534 | ) | |||||||||||
Income before taxes and noncontrolling interests | 83,550 | ||||||||||||||
Income tax benefit | 7,700 | 7,700 | |||||||||||||
Net income attributable to noncontrolling interests | (16,219 | ) | (16,219 | ) | |||||||||||
Dividends on preference shares | (5,595 | ) | (5,595 | ) | |||||||||||
Net income available to RenaissanceRe common shareholders | $ | 69,436 | |||||||||||||
Net claims and claim expenses incurred – current accident year | $ | 93,291 | $ | 118,092 | $ | — | $ | 211,383 | |||||||
Net claims and claim expenses incurred – prior accident years | (67,364 | ) | (19,813 | ) | (305 | ) | (87,482 | ) | |||||||
Net claims and claim expenses incurred – total | $ | 25,927 | $ | 98,279 | $ | (305 | ) | $ | 123,901 | ||||||
Net claims and claim expense ratio – current accident year | 51.3 | % | 69.6 | % | 60.1 | % | |||||||||
Net claims and claim expense ratio – prior accident years | (37.1 | )% | (11.7 | )% | (24.9 | )% | |||||||||
Net claims and claim expense ratio – calendar year | 14.2 | % | 57.9 | % | 35.2 | % | |||||||||
Underwriting expense ratio | 30.6 | % | 40.3 | % | 35.3 | % | |||||||||
Combined ratio | 44.8 | % | 98.2 | % | 70.5 | % |
RenaissanceRe Holdings Ltd. | |||||||||||||||
Supplemental Financial Data - Segment Information | |||||||||||||||
(in thousands of United States Dollars, except percentages) | |||||||||||||||
(Unaudited) | |||||||||||||||
Year ended December 31, 2017 | |||||||||||||||
Property | Casualty and Specialty | Other | Total | ||||||||||||
Gross premiums written | $ | 1,440,437 | $ | 1,357,110 | $ | (7 | ) | $ | 2,797,540 | ||||||
Net premiums written | $ | 978,014 | $ | 893,307 | $ | 4 | $ | 1,871,325 | |||||||
Net premiums earned | $ | 931,070 | $ | 786,501 | $ | 4 | $ | 1,717,575 | |||||||
Net claims and claim expenses incurred | 1,297,985 | 565,026 | (1,583 | ) | 1,861,428 | ||||||||||
Acquisition expenses | 113,816 | 233,077 | (1 | ) | 346,892 | ||||||||||
Operational expenses | 94,194 | 66,548 | 36 | 160,778 | |||||||||||
Underwriting (loss) income | $ | (574,925 | ) | $ | (78,150 | ) | $ | 1,552 | (651,523 | ) | |||||
Net investment income | 222,209 | 222,209 | |||||||||||||
Net foreign exchange gains | 10,628 | 10,628 | |||||||||||||
Equity in earnings of other ventures | 8,030 | 8,030 | |||||||||||||
Other income | 9,415 | 9,415 | |||||||||||||
Net realized and unrealized gains on investments | 135,822 | 135,822 | |||||||||||||
Corporate expenses | (18,572 | ) | (18,572 | ) | |||||||||||
Interest expense | (44,193 | ) | (44,193 | ) | |||||||||||
Loss before taxes and redeemable noncontrolling interests | (328,184 | ) | |||||||||||||
Income tax expense | (26,487 | ) | (26,487 | ) | |||||||||||
Net loss attributable to redeemable noncontrolling interests | 132,282 | 132,282 | |||||||||||||
Dividends on preference shares | (22,381 | ) | (22,381 | ) | |||||||||||
Net loss attributable to RenaissanceRe common shareholders | $ | (244,770 | ) | ||||||||||||
Net claims and claim expenses incurred – current accident year | $ | 1,343,581 | $ | 558,843 | $ | — | $ | 1,902,424 | |||||||
Net claims and claim expenses incurred – prior accident years | (45,596 | ) | 6,183 | (1,583 | ) | (40,996 | ) | ||||||||
Net claims and claim expenses incurred – total | $ | 1,297,985 | $ | 565,026 | $ | (1,583 | ) | $ | 1,861,428 | ||||||
Net claims and claim expense ratio – current accident year | 144.3 | % | 71.1 | % | 110.8 | % | |||||||||
Net claims and claim expense ratio – prior accident years | (4.9 | )% | 0.7 | % | (2.4 | )% | |||||||||
Net claims and claim expense ratio – calendar year | 139.4 | % | 71.8 | % | 108.4 | % | |||||||||
Underwriting expense ratio | 22.3 | % | 38.1 | % | 29.5 | % | |||||||||
Combined ratio | 161.7 | % | 109.9 | % | 137.9 | % | |||||||||
Year ended December 31, 2016 | |||||||||||||||
Property | Casualty and Specialty | Other | Total | ||||||||||||
Gross premiums written | $ | 1,111,263 | $ | 1,263,313 | $ | — | $ | 2,374,576 | |||||||
Net premiums written | $ | 725,321 | $ | 809,848 | $ | 143 | $ | 1,535,312 | |||||||
Net premiums earned | $ | 720,951 | $ | 682,337 | $ | 142 | $ | 1,403,430 | |||||||
Net claims and claim expenses incurred | 151,545 | 380,396 | (1,110 | ) | 530,831 | ||||||||||
Acquisition expenses | 97,594 | 191,729 | — | 289,323 | |||||||||||
Operational expenses | 108,642 | 88,984 | 123 | 197,749 | |||||||||||
Underwriting income | $ | 363,170 | $ | 21,228 | $ | 1,129 | 385,527 | ||||||||
Net investment income | 181,726 | 181,726 | |||||||||||||
Net foreign exchange losses | (13,788 | ) | (13,788 | ) | |||||||||||
Equity in losses of other ventures | 963 | 963 | |||||||||||||
Other income | 14,178 | 14,178 | |||||||||||||
Net realized and unrealized gains on investments | 141,328 | 141,328 | |||||||||||||
Corporate expenses | (37,402 | ) | (37,402 | ) | |||||||||||
Interest expense | (42,144 | ) | (42,144 | ) | |||||||||||
Income before taxes and noncontrolling interests | 630,388 | ||||||||||||||
Income tax expense | (340 | ) | (340 | ) | |||||||||||
Net income attributable to noncontrolling interests | (127,086 | ) | (127,086 | ) | |||||||||||
Dividends on preference shares | (22,381 | ) | (22,381 | ) | |||||||||||
Net income available to RenaissanceRe common shareholders | $ | 480,581 | |||||||||||||
Net claims and claim expenses incurred – current accident year | $ | 256,421 | $ | 438,536 | $ | — | $ | 694,957 | |||||||
Net claims and claim expenses incurred – prior accident years | (104,876 | ) | (58,140 | ) | (1,110 | ) | (164,126 | ) | |||||||
Net claims and claim expenses incurred – total | $ | 151,545 | $ | 380,396 | $ | (1,110 | ) | $ | 530,831 | ||||||
Net claims and claim expense ratio – current accident year | 35.6 | % | 64.3 | % | 49.5 | % | |||||||||
Net claims and claim expense ratio – prior accident years | (14.6 | )% | (8.6 | )% | (11.7 | )% | |||||||||
Net claims and claim expense ratio – calendar year | 21.0 | % | 55.7 | % | 37.8 | % | |||||||||
Underwriting expense ratio | 28.6 | % | 41.2 | % | 34.7 | % | |||||||||
Combined ratio | 49.6 | % | 96.9 | % | 72.5 | % |
RenaissanceRe Holdings Ltd. | |||||||||||||||
Supplemental Financial Data - Gross Premiums Written | |||||||||||||||
(in thousands of United States Dollars) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended | Year ended | ||||||||||||||
December 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | ||||||||||||
Property Segment | |||||||||||||||
Catastrophe | $ | 35,012 | $ | 7,705 | $ | 1,104,450 | $ | 884,361 | |||||||
Other property | 60,154 | 44,742 | 335,987 | 226,902 | |||||||||||
Property segment gross premiums written | $ | 95,166 | $ | 52,447 | $ | 1,440,437 | $ | 1,111,263 | |||||||
Casualty and Specialty Segment | |||||||||||||||
Professional liability (1) | $ | 117,075 | $ | 83,804 | $ | 452,310 | $ | 377,580 | |||||||
Financial lines (2) | 83,157 | 85,208 | 303,800 | 413,068 | |||||||||||
General casualty (3) | 80,538 | 79,669 | 417,880 | 327,939 | |||||||||||
Other (4) | 31,830 | 21,963 | 183,120 | 144,726 | |||||||||||
Casualty and Specialty segment gross premiums written | $ | 312,600 | $ | 270,644 | $ | 1,357,110 | $ | 1,263,313 |
(1) | Includes directors and officers, medical malpractice, and professional indemnity. |
(2) | Includes financial guaranty, mortgage guaranty, political risk, surety and trade credit. |
(3) | Includes automobile liability, casualty clash, employer’s liability, umbrella or excess casualty, workers’ compensation and general liability. |
(4) | Includes accident and health, agriculture, aviation, cyber, energy, marine, satellite and terrorism. Lines of business such as regional multi-line and whole account may have characteristics of various other classes of business, and are allocated accordingly. |
RenaissanceRe Holdings Ltd. | |||||||||||||||
Supplemental Financial Data - Total Investment Result | |||||||||||||||
(in thousands of United States Dollars) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended | Year ended | ||||||||||||||
December 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | ||||||||||||
Fixed maturity investments | $ | 46,544 | $ | 38,605 | $ | 179,624 | $ | 160,661 | |||||||
Short term investments | 3,606 | 1,726 | 11,082 | 5,127 | |||||||||||
Equity investments trading | 998 | 910 | 3,628 | 4,235 | |||||||||||
Other investments | |||||||||||||||
Private equity investments | 13,215 | 6,585 | 33,999 | 6,155 | |||||||||||
Other | 12,587 | 3,072 | 8,067 | 20,181 | |||||||||||
Cash and cash equivalents | 360 | 204 | 1,196 | 788 | |||||||||||
77,310 | 51,102 | 237,596 | 197,147 | ||||||||||||
Investment expenses | (3,846 | ) | (3,786 | ) | (15,387 | ) | (15,421 | ) | |||||||
Net investment income | 73,464 | 47,316 | 222,209 | 181,726 | |||||||||||
Gross realized gains | 6,068 | 11,945 | 49,121 | 72,739 | |||||||||||
Gross realized losses | (8,930 | ) | (12,483 | ) | (38,832 | ) | (38,315 | ) | |||||||
Net realized (losses) gains on fixed maturity investments | (2,862 | ) | (538 | ) | 10,289 | 34,424 | |||||||||
Net unrealized (losses) gains on fixed maturity investments trading | (40,461 | ) | (98,547 | ) | 8,479 | 26,954 | |||||||||
Net realized and unrealized gains (losses) on investments-related derivatives | 1,854 | 11,459 | (2,490 | ) | (15,414 | ) | |||||||||
Net realized gains on equity investments trading | 30,291 | 152 | 80,027 | 14,190 | |||||||||||
Net unrealized gains on equity investments trading | 3,462 | 37,507 | 39,517 | 81,174 | |||||||||||
Net realized and unrealized (losses) gains on investments | (7,716 | ) | (49,967 | ) | 135,822 | 141,328 | |||||||||
Change in net unrealized gains on fixed maturity investments available for sale | — | (1,398 | ) | — | (1,870 | ) | |||||||||
Total investment result | $ | 65,748 | $ | (4,049 | ) | $ | 358,031 | $ | 321,184 | ||||||
Total investment return - annualized | 2.6 | % | (0.2 | )% | 3.6 | % | 3.5 | % |
Three months ended | Year ended | ||||||||||||||
(in thousands of United States Dollars, except percentages) | December 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | |||||||||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders | $ | (3,452 | ) | $ | 69,436 | $ | (244,770 | ) | $ | 480,581 | |||||
Adjustment for net realized and unrealized losses (gains) on investments | 7,716 | 49,967 | (135,822 | ) | (141,328 | ) | |||||||||
Adjustment for deferred tax asset write-down (1) | 36,705 | — | 36,705 | — | |||||||||||
Adjustment for income tax expense (benefit) (2) | 384 | (10,533 | ) | 11,587 | 3,000 | ||||||||||
Operating income (loss) available (attributable) to RenaissanceRe common shareholders | $ | 41,353 | $ | 108,870 | $ | (332,300 | ) | $ | 342,253 | ||||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share - diluted | $ | (0.09 | ) | $ | 1.69 | $ | (6.15 | ) | $ | 11.43 | |||||
Adjustment for net realized and unrealized losses (gains) on investments | 0.20 | 1.23 | (3.41 | ) | (3.40 | ) | |||||||||
Adjustment for deferred tax asset write-down (1) | 0.93 | — | 0.92 | — | |||||||||||
Adjustment for income tax expense (benefit) (2) | 0.01 | (0.26 | ) | 0.29 | 0.07 | ||||||||||
Operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted | $ | 1.05 | $ | 2.66 | $ | (8.35 | ) | $ | 8.10 | ||||||
Return on average common equity - annualized | (0.3 | )% | 6.3 | % | (5.7 | )% | 11.0 | % | |||||||
Adjustment for net realized and unrealized losses (gains) on investments | 0.8 | % | 4.5 | % | (3.2 | )% | (3.2 | )% | |||||||
Adjustment for deferred tax asset write-down (1) | 3.7 | % | — | % | 0.9 | % | — | % | |||||||
Adjustment for income tax expense (benefit) (2) | — | % | (0.9 | )% | 0.3 | % | 0.1 | % | |||||||
Operating return on average common equity - annualized | 4.2 | % | 9.9 | % | (7.7 | )% | 7.9 | % |
(1) | Adjustment for deferred tax asset write-down represents the write-down of a portion of the Company's deferred tax asset as a result of the reduction in the U.S. corporate tax rate from 35% to 21% effective January 1, 2018 pursuant to the Tax Bill, which was enacted on December 22, 2017. |
(2) | Adjustment for income tax expense (benefit) represents the income tax expense (benefit) associated with the adjustment for net realized and unrealized gains (losses) on investments. The income tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors. |
At | |||||||||||||||||||
December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | |||||||||||||||
Book value per common share | $ | 99.72 | $ | 100.00 | $ | 113.08 | $ | 109.37 | $ | 108.45 | |||||||||
Adjustment for goodwill and other intangibles (1) | (6.49 | ) | (6.55 | ) | (6.56 | ) | (6.55 | ) | (6.58 | ) | |||||||||
Tangible book value per common share | 93.23 | 93.45 | 106.52 | 102.82 | 101.87 | ||||||||||||||
Adjustment for accumulated dividends | 18.00 | 17.68 | 17.36 | 17.04 | 16.72 | ||||||||||||||
Tangible book value per common share plus accumulated dividends | $ | 111.23 | $ | 111.13 | $ | 123.88 | $ | 119.86 | $ | 118.59 | |||||||||
Quarterly change in book value per common share | (0.3 | )% | (11.6 | )% | 3.4 | % | 0.8 | % | 1.3 | % | |||||||||
Quarterly change in tangible book value per common share plus change in accumulated dividends | 0.1 | % | (12.0 | )% | 3.9 | % | 1.2 | % | 1.8 | % | |||||||||
Year to date change in book value per common share | (8.0 | )% | 9.4 | % | |||||||||||||||
Year to date change in tangible book value per common share plus change in accumulated dividends | (7.2 | )% | 11.4 | % |
(1) | At December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017 and December 31, 2016, goodwill and other intangibles included $16.7 million, $17.4 million, $18.1 million, $18.9 million and $19.7 million, respectively, of goodwill and other intangibles included in investments in other ventures, under equity method. |
Page | ||||
Basis of Presentation | ||||
Financial Highlights | ||||
Statements of Operations | ||||
a. | Summary Consolidated Statements of Operations | |||
b. | Consolidated Segment Underwriting Results | |||
c. | Segment Underwriting Results | |||
d. | DaVinciRe Holdings Ltd. and Subsidiary Consolidated Statements of Operations | |||
Balance Sheets | ||||
a. | Summary Consolidated Balance Sheets | |||
Investments | ||||
a. | Investment Portfolio - Composition | |||
b. | Summary of Other Investments | |||
c. | Total Investment Result | |||
d. | Investment Portfolio - Effective Yield and Credit Rating | |||
e. | Fixed Maturity and Short Term Investments - Corporate Top 10 Issuers by Fair Value | |||
Loss Reserve Analysis | ||||
a. | Reserves for Claims and Claim Expenses | |||
b. | Paid to Incurred Analysis | |||
Other Items | ||||
a. | Earnings per Share | |||
b. | Equity in Earnings (Losses) of Other Ventures | |||
c. | Other Income | |||
d. | Ratings | |||
Supplemental Information | ||||
a. | Gross Premiums Written | |||
b. | Property Segment Supplemental Underwriting Results | |||
c. | Lloyd's Platform Supplemental Underwriting Results | |||
Comments on Regulation G |
i |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||||||
Financial Highlights | |||||||||||||||||||||||||||
Three months ended | Year ended | ||||||||||||||||||||||||||
December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | |||||||||||||||||||||
Highlights | |||||||||||||||||||||||||||
Gross premiums written | $ | 407,766 | $ | 640,269 | $ | 827,415 | $ | 922,090 | $ | 323,091 | $ | 2,797,540 | $ | 2,374,576 | |||||||||||||
Net premiums written | $ | 288,223 | $ | 483,221 | $ | 555,745 | $ | 544,136 | $ | 219,499 | $ | 1,871,325 | $ | 1,535,312 | |||||||||||||
Net premiums earned | $ | 421,473 | $ | 547,792 | $ | 382,265 | $ | 366,045 | $ | 351,901 | $ | 1,717,575 | $ | 1,403,430 | |||||||||||||
Net claims and claim expenses incurred | 304,064 | 1,221,696 | 142,587 | 193,081 | 123,901 | 1,861,428 | 530,831 | ||||||||||||||||||||
Acquisition expenses | 98,598 | 76,761 | 88,251 | 83,282 | 74,146 | 346,892 | 289,323 | ||||||||||||||||||||
Operating expenses | 29,192 | 42,537 | 41,766 | 47,283 | 49,948 | 160,778 | 197,749 | ||||||||||||||||||||
Underwriting (loss) income | $ | (10,381 | ) | $ | (793,202 | ) | $ | 109,661 | $ | 42,399 | $ | 103,906 | $ | (651,523 | ) | $ | 385,527 | ||||||||||
Net investment income | $ | 73,464 | $ | 40,257 | $ | 54,163 | $ | 54,325 | $ | 47,316 | $ | 222,209 | $ | 181,726 | |||||||||||||
Net realized and unrealized (losses) gains on investments | (7,716 | ) | 42,052 | 58,113 | 43,373 | (49,967 | ) | 135,822 | 141,328 | ||||||||||||||||||
Change in net unrealized gains on fixed maturity investments available for sale | — | — | — | — | (1,398 | ) | — | (1,870 | ) | ||||||||||||||||||
Total investment result | $ | 65,748 | $ | 82,309 | $ | 112,276 | $ | 97,698 | $ | (4,049 | ) | $ | 358,031 | $ | 321,184 | ||||||||||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders | $ | (3,452 | ) | $ | (504,812 | ) | $ | 171,142 | $ | 92,352 | $ | 69,436 | $ | (244,770 | ) | $ | 480,581 | ||||||||||
Operating income (loss) available (attributable) to RenaissanceRe common shareholders (1) | $ | 41,353 | $ | (546,864 | ) | $ | 113,029 | $ | 48,979 | $ | 108,870 | $ | (332,300 | ) | $ | 342,253 | |||||||||||
Total assets | $ | 15,226,131 | $ | 15,044,924 | $ | 13,705,680 | $ | 13,319,627 | $ | 12,352,082 | $ | 15,226,131 | $ | 12,352,082 | |||||||||||||
Total shareholders' equity attributable to RenaissanceRe | $ | 4,391,375 | $ | 4,403,012 | $ | 4,955,255 | $ | 4,860,837 | $ | 4,866,577 | $ | 4,391,375 | $ | 4,866,577 | |||||||||||||
Per share data | |||||||||||||||||||||||||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share - diluted | $ | (0.09 | ) | $ | (12.75 | ) | $ | 4.24 | $ | 2.25 | $ | 1.69 | $ | (6.15 | ) | $ | 11.43 | ||||||||||
Operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted (1) | $ | 1.05 | $ | (13.81 | ) | $ | 2.79 | $ | 1.18 | $ | 2.66 | $ | (8.35 | ) | $ | 8.10 | |||||||||||
Dividends per common share | $ | 0.32 | $ | 0.32 | $ | 0.32 | $ | 0.32 | $ | 0.31 | $ | 1.28 | $ | 1.24 | |||||||||||||
Book value per common share | $ | 99.72 | $ | 100.00 | $ | 113.08 | $ | 109.37 | $ | 108.45 | $ | 99.72 | $ | 108.45 | |||||||||||||
Tangible book value per common share (1) | $ | 93.23 | $ | 93.45 | $ | 106.52 | $ | 102.82 | $ | 101.87 | $ | 93.23 | $ | 101.87 | |||||||||||||
Tangible book value per common share plus accumulated dividends (1) | $ | 111.23 | $ | 111.13 | $ | 123.88 | $ | 119.86 | $ | 118.59 | $ | 111.23 | $ | 118.59 | |||||||||||||
Change in tangible book value per common share plus change in accumulated dividends (1) | 0.1 | % | (12.0 | )% | 3.9 | % | 1.2 | % | 1.8 | % | (7.2 | )% | 11.4 | % | |||||||||||||
Financial ratios | |||||||||||||||||||||||||||
Net claims and claim expense ratio - current accident year | 81.0 | % | 220.8 | % | 49.1 | % | 44.8 | % | 60.1 | % | 110.8 | % | 49.5 | % | |||||||||||||
Net claims and claim expense ratio - prior accident years | (8.9 | )% | 2.2 | % | (11.8 | )% | 7.9 | % | (24.9 | )% | (2.4 | )% | (11.7 | )% | |||||||||||||
Net claims and claim expense ratio - calendar year | 72.1 | % | 223.0 | % | 37.3 | % | 52.7 | % | 35.2 | % | 108.4 | % | 37.8 | % | |||||||||||||
Underwriting expense ratio | 30.4 | % | 21.8 | % | 34.0 | % | 35.7 | % | 35.3 | % | 29.5 | % | 34.7 | % | |||||||||||||
Combined ratio | 102.5 | % | 244.8 | % | 71.3 | % | 88.4 | % | 70.5 | % | 137.9 | % | 72.5 | % | |||||||||||||
Return on average common equity - annualized | (0.3 | )% | (47.2 | )% | 15.2 | % | 8.3 | % | 6.3 | % | (5.7 | )% | 11.0 | % | |||||||||||||
Operating return on average common equity - annualized (1) | 4.2 | % | (51.1 | )% | 10.0 | % | 4.4 | % | 9.9 | % | (7.7 | )% | 7.9 | % | |||||||||||||
Total investment return - annualized | 2.6 | % | 3.4 | % | 4.8 | % | 4.1 | % | (0.2 | )% | 3.6 | % | 3.5 | % |
(1) | See Comments on Regulation G for a reconciliation of non-GAAP financial measures. |
1 |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Summary Consolidated Statements of Operations | |||||||||||||||||||
Three months ended | |||||||||||||||||||
December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | |||||||||||||||
Revenues | |||||||||||||||||||
Gross premiums written | $ | 407,766 | $ | 640,269 | $ | 827,415 | $ | 922,090 | $ | 323,091 | |||||||||
Net premiums written | $ | 288,223 | $ | 483,221 | $ | 555,745 | $ | 544,136 | $ | 219,499 | |||||||||
Decrease (increase) in unearned premiums | 133,250 | 64,571 | (173,480 | ) | (178,091 | ) | 132,402 | ||||||||||||
Net premiums earned | 421,473 | 547,792 | 382,265 | 366,045 | 351,901 | ||||||||||||||
Net investment income | 73,464 | 40,257 | 54,163 | 54,325 | 47,316 | ||||||||||||||
Net foreign exchange (losses) gains | (490 | ) | (156 | ) | 3,109 | 8,165 | (5,420 | ) | |||||||||||
Equity in earnings (losses) of other ventures | 2,200 | 1,794 | 5,543 | (1,507 | ) | 4,960 | |||||||||||||
Other income | 2,362 | 2,996 | 2,392 | 1,665 | 5,177 | ||||||||||||||
Net realized and unrealized (losses) gains on investments | (7,716 | ) | 42,052 | 58,113 | 43,373 | (49,967 | ) | ||||||||||||
Total revenues | 491,293 | 634,735 | 505,585 | 472,066 | 353,967 | ||||||||||||||
Expenses | |||||||||||||||||||
Net claims and claim expenses incurred | 304,064 | 1,221,696 | 142,587 | 193,081 | 123,901 | ||||||||||||||
Acquisition expenses | 98,598 | 76,761 | 88,251 | 83,282 | 74,146 | ||||||||||||||
Operational expenses | 29,192 | 42,537 | 41,766 | 47,283 | 49,948 | ||||||||||||||
Corporate expenses | 4,237 | 4,413 | 4,636 | 5,286 | 11,888 | ||||||||||||||
Interest expense | 11,777 | 11,799 | 10,091 | 10,526 | 10,534 | ||||||||||||||
Total expenses | 447,868 | 1,357,206 | 287,331 | 339,458 | 270,417 | ||||||||||||||
Income (loss) before taxes | 43,425 | (722,471 | ) | 218,254 | 132,608 | 83,550 | |||||||||||||
Income tax (expense) benefit | (41,226 | ) | 18,977 | (3,904 | ) | (334 | ) | 7,700 | |||||||||||
Net income (loss) | 2,199 | (703,494 | ) | 214,350 | 132,274 | 91,250 | |||||||||||||
Net (income) loss attributable to noncontrolling interests | (56 | ) | 204,277 | (37,612 | ) | (34,327 | ) | (16,219 | ) | ||||||||||
Net income (loss) attributable to RenaissanceRe | 2,143 | (499,217 | ) | 176,738 | 97,947 | 75,031 | |||||||||||||
Dividends on preference shares | (5,595 | ) | (5,595 | ) | (5,596 | ) | (5,595 | ) | (5,595 | ) | |||||||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders | $ | (3,452 | ) | $ | (504,812 | ) | $ | 171,142 | $ | 92,352 | $ | 69,436 | |||||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share - basic | $ | (0.09 | ) | $ | (12.75 | ) | $ | 4.25 | $ | 2.26 | $ | 1.70 | |||||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share - diluted | $ | (0.09 | ) | $ | (12.75 | ) | $ | 4.24 | $ | 2.25 | $ | 1.69 | |||||||
Operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted (1) | $ | 1.05 | $ | (13.74 | ) | $ | 2.88 | $ | 1.30 | $ | 2.66 | ||||||||
Return on average common equity - annualized | (0.3 | )% | (47.2 | )% | 15.2 | % | 8.3 | % | 6.3 | % | |||||||||
Operating return on average common equity - annualized (1) | 4.2 | % | (50.8 | )% | 10.3 | % | 4.8 | % | 9.9 | % |
(1) | See Comments on Regulation G for a reconciliation of non-GAAP financial measures. |
2 |
RenaissanceRe Holdings Ltd. | |||||||
Summary Consolidated Statements of Operations | |||||||
Year ended | |||||||
December 31, 2017 | December 31, 2016 | ||||||
Revenues | |||||||
Gross premiums written | $ | 2,797,540 | $ | 2,374,576 | |||
Net premiums written | $ | 1,871,325 | $ | 1,535,312 | |||
Increase in unearned premiums | (153,750 | ) | (131,882 | ) | |||
Net premiums earned | 1,717,575 | 1,403,430 | |||||
Net investment income | 222,209 | 181,726 | |||||
Net foreign exchange gains (losses) | 10,628 | (13,788 | ) | ||||
Equity in earnings of other ventures | 8,030 | 963 | |||||
Other income | 9,415 | 14,178 | |||||
Net realized and unrealized gains on investments | 135,822 | 141,328 | |||||
Total revenues | 2,103,679 | 1,727,837 | |||||
Expenses | |||||||
Net claims and claim expenses incurred | 1,861,428 | 530,831 | |||||
Acquisition expenses | 346,892 | 289,323 | |||||
Operational expenses | 160,778 | 197,749 | |||||
Corporate expenses | 18,572 | 37,402 | |||||
Interest expense | 44,193 | 42,144 | |||||
Total expenses | 2,431,863 | 1,097,449 | |||||
(Loss) income before taxes | (328,184 | ) | 630,388 | ||||
Income tax expense | (26,487 | ) | (340 | ) | |||
Net (loss) income | (354,671 | ) | 630,048 | ||||
Net loss (income) attributable to noncontrolling interests | 132,282 | (127,086 | ) | ||||
Net (loss) income attributable to RenaissanceRe | (222,389 | ) | 502,962 | ||||
Dividends on preference shares | (22,381 | ) | (22,381 | ) | |||
Net (loss) income (attributable) available to RenaissanceRe common shareholders | $ | (244,770 | ) | $ | 480,581 | ||
Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share - basic | $ | (6.15 | ) | $ | 11.50 | ||
Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share - diluted | $ | (6.15 | ) | $ | 11.43 | ||
Operating (loss) income (attributable) available to RenaissanceRe common shareholders per common share - diluted (1) | $ | (8.35 | ) | $ | 8.10 | ||
Return on average common equity - annualized | (5.7 | )% | 11.0 | % | |||
Operating return on average common equity - annualized (1) | (7.7 | )% | 7.9 | % |
(1) | See Comments on Regulation G for a reconciliation of non-GAAP financial measures. |
3 |
RenaissanceRe Holdings Ltd. | |||||||||||||||
Consolidated Segment Underwriting Results | |||||||||||||||
Three months ended December 31, 2017 | |||||||||||||||
Property | Casualty and Specialty | Other | Total | ||||||||||||
Gross premiums written | $ | 95,166 | $ | 312,600 | $ | — | $ | 407,766 | |||||||
Net premiums written | $ | 82,286 | $ | 205,926 | $ | 11 | $ | 288,223 | |||||||
Net premiums earned | $ | 215,046 | $ | 206,416 | $ | 11 | $ | 421,473 | |||||||
Net claims and claim expenses incurred | 181,712 | 123,225 | (873 | ) | 304,064 | ||||||||||
Acquisition expenses | 38,699 | 59,898 | 1 | 98,598 | |||||||||||
Operational expenses | 17,353 | 11,840 | (1 | ) | 29,192 | ||||||||||
Underwriting (loss) income | $ | (22,718 | ) | $ | 11,453 | $ | 884 | $ | (10,381 | ) | |||||
Net claims and claim expenses incurred - current accident year | $ | 210,340 | $ | 131,057 | $ | — | $ | 341,397 | |||||||
Net claims and claim expenses incurred - prior accident years | (28,628 | ) | (7,832 | ) | (873 | ) | (37,333 | ) | |||||||
Net claims and claim expenses incurred - total | $ | 181,712 | $ | 123,225 | $ | (873 | ) | $ | 304,064 | ||||||
Net claims and claim expense ratio - current accident year | 97.8 | % | 63.5 | % | 81.0 | % | |||||||||
Net claims and claim expense ratio - prior accident years | (13.3 | )% | (3.8 | )% | (8.9 | )% | |||||||||
Net claims and claim expense ratio - calendar year | 84.5 | % | 59.7 | % | 72.1 | % | |||||||||
Underwriting expense ratio | 26.1 | % | 34.8 | % | 30.4 | % | |||||||||
Combined ratio | 110.6 | % | 94.5 | % | 102.5 | % | |||||||||
Three months ended December 31, 2016 | |||||||||||||||
Property | Casualty and Specialty | Other | Total | ||||||||||||
Gross premiums written | $ | 52,447 | $ | 270,644 | $ | — | $ | 323,091 | |||||||
Net premiums written | $ | 50,960 | $ | 168,396 | $ | 143 | $ | 219,499 | |||||||
Net premiums earned | $ | 181,998 | $ | 169,761 | $ | 142 | $ | 351,901 | |||||||
Net claims and claim expenses incurred | 25,927 | 98,279 | (305 | ) | 123,901 | ||||||||||
Acquisition expenses | 26,418 | 47,728 | — | 74,146 | |||||||||||
Operational expenses | 29,201 | 20,723 | 24 | 49,948 | |||||||||||
Underwriting income | $ | 100,452 | $ | 3,031 | $ | 423 | $ | 103,906 | |||||||
Net claims and claim expenses incurred - current accident year | $ | 93,291 | $ | 118,092 | $ | — | $ | 211,383 | |||||||
Net claims and claim expenses incurred - prior accident years | (67,364 | ) | (19,813 | ) | (305 | ) | (87,482 | ) | |||||||
Net claims and claim expenses incurred - total | $ | 25,927 | $ | 98,279 | $ | (305 | ) | $ | 123,901 | ||||||
Net claims and claim expense ratio - current accident year | 51.3 | % | 69.6 | % | 60.1 | % | |||||||||
Net claims and claim expense ratio - prior accident years | (37.1 | )% | (11.7 | )% | (24.9 | )% | |||||||||
Net claims and claim expense ratio - calendar year | 14.2 | % | 57.9 | % | 35.2 | % | |||||||||
Underwriting expense ratio | 30.6 | % | 40.3 | % | 35.3 | % | |||||||||
Combined ratio | 44.8 | % | 98.2 | % | 70.5 | % |
4 |
RenaissanceRe Holdings Ltd. | |||||||||||||||
Consolidated Segment Underwriting Results | |||||||||||||||
Year ended December 31, 2017 | |||||||||||||||
Property | Casualty and Specialty | Other | Total | ||||||||||||
Gross premiums written | $ | 1,440,437 | $ | 1,357,110 | $ | (7 | ) | $ | 2,797,540 | ||||||
Net premiums written | $ | 978,014 | $ | 893,307 | $ | 4 | $ | 1,871,325 | |||||||
Net premiums earned | $ | 931,070 | $ | 786,501 | $ | 4 | $ | 1,717,575 | |||||||
Net claims and claim expenses incurred | 1,297,985 | 565,026 | (1,583 | ) | 1,861,428 | ||||||||||
Acquisition expenses | 113,816 | 233,077 | (1 | ) | 346,892 | ||||||||||
Operational expenses | 94,194 | 66,548 | 36 | 160,778 | |||||||||||
Underwriting (loss) income | $ | (574,925 | ) | $ | (78,150 | ) | $ | 1,552 | $ | (651,523 | ) | ||||
Net claims and claim expenses incurred - current accident year | $ | 1,343,581 | $ | 558,843 | $ | — | $ | 1,902,424 | |||||||
Net claims and claim expenses incurred - prior accident years | (45,596 | ) | 6,183 | (1,583 | ) | (40,996 | ) | ||||||||
Net claims and claim expenses incurred - total | $ | 1,297,985 | $ | 565,026 | $ | (1,583 | ) | $ | 1,861,428 | ||||||
Net claims and claim expense ratio - current accident year | 144.3 | % | 71.1 | % | 110.8 | % | |||||||||
Net claims and claim expense ratio - prior accident years | (4.9 | )% | 0.7 | % | (2.4 | )% | |||||||||
Net claims and claim expense ratio - calendar year | 139.4 | % | 71.8 | % | 108.4 | % | |||||||||
Underwriting expense ratio | 22.3 | % | 38.1 | % | 29.5 | % | |||||||||
Combined ratio | 161.7 | % | 109.9 | % | 137.9 | % | |||||||||
Year ended December 31, 2016 | |||||||||||||||
Property | Casualty and Specialty | Other | Total | ||||||||||||
Gross premiums written | $ | 1,111,263 | $ | 1,263,313 | $ | — | $ | 2,374,576 | |||||||
Net premiums written | $ | 725,321 | $ | 809,848 | $ | 143 | $ | 1,535,312 | |||||||
Net premiums earned | $ | 720,951 | $ | 682,337 | $ | 142 | $ | 1,403,430 | |||||||
Net claims and claim expenses incurred | 151,545 | 380,396 | (1,110 | ) | 530,831 | ||||||||||
Acquisition expenses | 97,594 | 191,729 | — | 289,323 | |||||||||||
Operational expenses | 108,642 | 88,984 | 123 | 197,749 | |||||||||||
Underwriting income | $ | 363,170 | $ | 21,228 | $ | 1,129 | $ | 385,527 | |||||||
Net claims and claim expenses incurred - current accident year | $ | 256,421 | $ | 438,536 | $ | — | $ | 694,957 | |||||||
Net claims and claim expenses incurred - prior accident years | (104,876 | ) | (58,140 | ) | (1,110 | ) | (164,126 | ) | |||||||
Net claims and claim expenses incurred - total | $ | 151,545 | $ | 380,396 | $ | (1,110 | ) | $ | 530,831 | ||||||
Net claims and claim expense ratio - current accident year | 35.6 | % | 64.3 | % | 49.5 | % | |||||||||
Net claims and claim expense ratio - prior accident years | (14.6 | )% | (8.6 | )% | (11.7 | )% | |||||||||
Net claims and claim expense ratio - calendar year | 21.0 | % | 55.7 | % | 37.8 | % | |||||||||
Underwriting expense ratio | 28.6 | % | 41.2 | % | 34.7 | % | |||||||||
Combined ratio | 49.6 | % | 96.9 | % | 72.5 | % |
5 |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Segment Underwriting Results | |||||||||||||||||||
Three months ended | |||||||||||||||||||
Property Segment | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | ||||||||||||||
Gross premiums written | $ | 95,166 | $ | 325,395 | $ | 499,347 | $ | 520,529 | $ | 52,447 | |||||||||
Net premiums written | $ | 82,286 | $ | 269,393 | $ | 336,464 | $ | 289,871 | $ | 50,960 | |||||||||
Net premiums earned | $ | 215,046 | $ | 336,838 | $ | 192,198 | $ | 186,988 | $ | 181,998 | |||||||||
Net claims and claim expenses incurred | 181,712 | 1,044,418 | 33,017 | 38,838 | 25,927 | ||||||||||||||
Acquisition expenses | 38,699 | 17,514 | 28,500 | 29,103 | 26,418 | ||||||||||||||
Operational expenses | 17,353 | 25,123 | 24,053 | 27,665 | 29,201 | ||||||||||||||
Underwriting (loss) income | $ | (22,718 | ) | $ | (750,217 | ) | $ | 106,628 | $ | 91,382 | $ | 100,452 | |||||||
Net claims and claim expenses incurred - current accident year | $ | 210,340 | $ | 1,036,586 | $ | 56,889 | $ | 39,766 | $ | 93,291 | |||||||||
Net claims and claim expenses incurred - prior accident years | (28,628 | ) | 7,832 | (23,872 | ) | (928 | ) | (67,364 | ) | ||||||||||
Net claims and claim expenses incurred - total | $ | 181,712 | $ | 1,044,418 | $ | 33,017 | $ | 38,838 | $ | 25,927 | |||||||||
Net claims and claim expense ratio - current accident year | 97.8 | % | 307.7 | % | 29.6 | % | 21.3 | % | 51.3 | % | |||||||||
Net claims and claim expense ratio - prior accident years | (13.3 | )% | 2.4 | % | (12.4 | )% | (0.5 | )% | (37.1 | )% | |||||||||
Net claims and claim expense ratio - calendar year | 84.5 | % | 310.1 | % | 17.2 | % | 20.8 | % | 14.2 | % | |||||||||
Underwriting expense ratio | 26.1 | % | 12.6 | % | 27.3 | % | 30.3 | % | 30.6 | % | |||||||||
Combined ratio | 110.6 | % | 322.7 | % | 44.5 | % | 51.1 | % | 44.8 | % | |||||||||
Three months ended | |||||||||||||||||||
Casualty and Specialty Segment | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | ||||||||||||||
Gross premiums written | $ | 312,600 | $ | 314,881 | $ | 328,068 | $ | 401,561 | $ | 270,644 | |||||||||
Net premiums written | $ | 205,926 | $ | 213,835 | $ | 219,281 | $ | 254,265 | $ | 168,396 | |||||||||
Net premiums earned | $ | 206,416 | $ | 210,961 | $ | 190,065 | $ | 179,059 | $ | 169,761 | |||||||||
Net claims and claim expenses incurred | 123,225 | 177,433 | 109,797 | 154,571 | 98,279 | ||||||||||||||
Acquisition expenses | 59,898 | 59,248 | 59,752 | 54,179 | 47,728 | ||||||||||||||
Operational expenses | 11,840 | 17,389 | 17,712 | 19,607 | 20,723 | ||||||||||||||
Underwriting income (loss) | $ | 11,453 | $ | (43,109 | ) | $ | 2,804 | $ | (49,298 | ) | $ | 3,031 | |||||||
Net claims and claim expenses incurred - current accident year | $ | 131,057 | $ | 172,675 | $ | 130,802 | $ | 124,309 | $ | 118,092 | |||||||||
Net claims and claim expenses incurred - prior accident years | (7,832 | ) | 4,758 | (21,005 | ) | 30,262 | (19,813 | ) | |||||||||||
Net claims and claim expenses incurred - total | $ | 123,225 | $ | 177,433 | $ | 109,797 | $ | 154,571 | $ | 98,279 | |||||||||
Net claims and claim expense ratio - current accident year | 63.5 | % | 81.9 | % | 68.8 | % | 69.4 | % | 69.6 | % | |||||||||
Net claims and claim expense ratio - prior accident years | (3.8 | )% | 2.2 | % | (11.0 | )% | 16.9 | % | (11.7 | )% | |||||||||
Net claims and claim expense ratio - calendar year | 59.7 | % | 84.1 | % | 57.8 | % | 86.3 | % | 57.9 | % | |||||||||
Underwriting expense ratio | 34.8 | % | 36.3 | % | 40.7 | % | 41.2 | % | 40.3 | % | |||||||||
Combined ratio | 94.5 | % | 120.4 | % | 98.5 | % | 127.5 | % | 98.2 | % |
6 |
DaVinciRe Holdings Ltd. and Subsidiary | |||||||||||||||||||||||||||
Consolidated Statements of Operations | |||||||||||||||||||||||||||
Three months ended | Year ended | ||||||||||||||||||||||||||
December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | |||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Gross premiums written | $ | 5,145 | $ | 68,352 | $ | 132,009 | $ | 116,680 | $ | (731 | ) | $ | 322,186 | $ | 274,828 | ||||||||||||
Net premiums written | $ | 2,832 | $ | 63,442 | $ | 116,523 | $ | 98,695 | $ | (580 | ) | $ | 281,492 | $ | 230,371 | ||||||||||||
Decrease (increase) in unearned premiums | 60,210 | 41,278 | (56,246 | ) | (42,492 | ) | 59,119 | 2,750 | 7,408 | ||||||||||||||||||
Net premiums earned | 63,042 | 104,720 | 60,277 | 56,203 | 58,539 | 284,242 | 237,779 | ||||||||||||||||||||
Net investment income | 9,488 | 8,334 | 8,065 | 7,756 | 7,597 | 33,643 | 28,841 | ||||||||||||||||||||
Net foreign exchange (losses) gains | (70 | ) | (66 | ) | 224 | 348 | (197 | ) | 436 | 330 | |||||||||||||||||
Other income (loss) | — | — | 679 | 1 | — | 680 | (86 | ) | |||||||||||||||||||
Net realized and unrealized (losses) gains on investments | (10,641 | ) | 528 | 2,207 | 2,061 | (17,510 | ) | (5,845 | ) | 10,071 | |||||||||||||||||
Total revenues | 61,819 | 113,516 | 71,452 | 66,369 | 48,429 | 313,156 | 276,935 | ||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||
Net claims and claim expenses incurred | 61,444 | 415,669 | (2,233 | ) | 807 | 650 | 475,687 | 23,199 | |||||||||||||||||||
Acquisition expenses | 7,518 | (53,773 | ) | 17,525 | 15,892 | 16,967 | (12,838 | ) | 62,202 | ||||||||||||||||||
Operational and corporate expenses | 719 | 6,441 | 6,976 | 6,579 | 6,804 | 20,715 | 27,138 | ||||||||||||||||||||
Interest expense | 1,859 | 1,859 | 1,858 | 1,858 | 1,859 | 7,434 | 7,435 | ||||||||||||||||||||
Total expenses | 71,540 | 370,196 | 24,126 | 25,136 | 26,280 | 490,998 | 119,974 | ||||||||||||||||||||
(Loss) income before taxes | (9,721 | ) | (256,680 | ) | 47,326 | 41,233 | 22,149 | (177,842 | ) | 156,961 | |||||||||||||||||
Income tax (expense) benefit | (157 | ) | 1,164 | (273 | ) | (23 | ) | (111 | ) | 711 | (730 | ) | |||||||||||||||
Net (loss) income (attributable) available to DaVinciRe common shareholders | $ | (9,878 | ) | $ | (255,516 | ) | $ | 47,053 | $ | 41,210 | $ | 22,038 | $ | (177,131 | ) | $ | 156,231 | ||||||||||
Net claims and claim expenses incurred - current accident year | $ | 68,096 | $ | 413,466 | $ | 10,500 | $ | 5,899 | $ | 24,310 | $ | 497,961 | $ | 62,386 | |||||||||||||
Net claims and claim expenses incurred - prior accident years | (6,652 | ) | 2,203 | (12,733 | ) | (5,092 | ) | (23,660 | ) | (22,274 | ) | (39,187 | ) | ||||||||||||||
Net claims and claim expenses incurred - total | $ | 61,444 | $ | 415,669 | $ | (2,233 | ) | $ | 807 | $ | 650 | $ | 475,687 | $ | 23,199 | ||||||||||||
Net claims and claim expense ratio - current accident year | 108.0 | % | 394.8 | % | 17.4 | % | 10.5 | % | 41.5 | % | 175.2 | % | 26.2 | % | |||||||||||||
Net claims and claim expense ratio - prior accident years | (10.5 | )% | 2.1 | % | (21.1 | )% | (9.1 | )% | (40.4 | )% | (7.8 | )% | (16.4 | )% | |||||||||||||
Net claims and claim expense ratio - calendar year | 97.5 | % | 396.9 | % | (3.7 | )% | 1.4 | % | 1.1 | % | 167.4 | % | 9.8 | % | |||||||||||||
Underwriting expense ratio | 13.0 | % | (45.2 | )% | 40.6 | % | 40.0 | % | 40.6 | % | 2.7 | % | 37.5 | % | |||||||||||||
Combined ratio | 110.5 | % | 351.7 | % | 36.9 | % | 41.4 | % | 41.7 | % | 170.1 | % | 47.3 | % |
7 |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Summary Consolidated Balance Sheets | |||||||||||||||||||
December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | |||||||||||||||
Assets | |||||||||||||||||||
Fixed maturity investments trading, at fair value | $ | 7,426,555 | $ | 7,092,969 | $ | 7,282,264 | $ | 7,259,851 | $ | 6,891,244 | |||||||||
Short term investments, at fair value | 991,863 | 1,497,262 | 1,070,950 | 1,199,797 | 1,368,379 | ||||||||||||||
Equity investments trading, at fair value | 388,254 | 402,035 | 393,405 | 388,424 | 383,313 | ||||||||||||||
Other investments, at fair value | 594,793 | 548,492 | 561,212 | 514,667 | 549,805 | ||||||||||||||
Investments in other ventures, under equity method | 101,974 | 101,420 | 101,077 | 97,131 | 124,227 | ||||||||||||||
Total investments | 9,503,439 | 9,642,178 | 9,408,908 | 9,459,870 | 9,316,968 | ||||||||||||||
Cash and cash equivalents | 1,361,592 | 581,576 | 623,150 | 454,087 | 421,157 | ||||||||||||||
Premiums receivable | 1,304,622 | 1,521,266 | 1,533,833 | 1,283,275 | 987,323 | ||||||||||||||
Prepaid reinsurance premiums | 533,546 | 635,756 | 705,322 | 628,091 | 441,260 | ||||||||||||||
Reinsurance recoverable | 1,586,630 | 1,588,304 | 370,586 | 325,819 | 279,564 | ||||||||||||||
Accrued investment income | 42,235 | 38,366 | 40,118 | 40,547 | 38,076 | ||||||||||||||
Deferred acquisition costs | 426,551 | 434,914 | 430,106 | 388,681 | 335,325 | ||||||||||||||
Receivable for investments sold | 103,145 | 193,758 | 170,411 | 316,948 | 105,841 | ||||||||||||||
Other assets | 121,226 | 164,019 | 176,816 | 173,984 | 175,382 | ||||||||||||||
Goodwill and other intangibles | 243,145 | 244,787 | 246,430 | 248,325 | 251,186 | ||||||||||||||
Total assets | $ | 15,226,131 | $ | 15,044,924 | $ | 13,705,680 | $ | 13,319,627 | $ | 12,352,082 | |||||||||
Liabilities, Noncontrolling Interests and Shareholders' Equity | |||||||||||||||||||
Liabilities | |||||||||||||||||||
Reserve for claims and claim expenses | $ | 5,080,408 | $ | 5,192,313 | $ | 2,989,806 | $ | 2,934,688 | $ | 2,848,294 | |||||||||
Unearned premiums | 1,477,609 | 1,713,069 | 1,847,206 | 1,596,495 | 1,231,573 | ||||||||||||||
Debt | 989,623 | 989,245 | 988,866 | 945,701 | 948,663 | ||||||||||||||
Reinsurance balances payable | 989,090 | 1,034,454 | 1,052,494 | 972,266 | 673,983 | ||||||||||||||
Payable for investments purchased | 208,749 | 377,543 | 407,312 | 604,613 | 305,714 | ||||||||||||||
Other liabilities | 792,771 | 301,559 | 222,658 | 217,036 | 301,684 | ||||||||||||||
Total liabilities | 9,538,250 | 9,608,183 | 7,508,342 | 7,270,799 | 6,309,911 | ||||||||||||||
Redeemable noncontrolling interest | 1,296,506 | 1,033,729 | 1,242,083 | 1,187,991 | 1,175,594 | ||||||||||||||
Shareholders' Equity | |||||||||||||||||||
Preference shares | 400,000 | 400,000 | 400,000 | 400,000 | 400,000 | ||||||||||||||
Common shares | 40,024 | 40,029 | 40,282 | 40,785 | 41,187 | ||||||||||||||
Additional paid-in capital | 37,355 | 32,852 | 67,583 | 131,173 | 216,558 | ||||||||||||||
Accumulated other comprehensive income (loss) | 224 | 161 | (139 | ) | (358 | ) | 1,133 | ||||||||||||
Retained earnings | 3,913,772 | 3,929,970 | 4,447,529 | 4,289,237 | 4,207,699 | ||||||||||||||
Total shareholders' equity attributable to RenaissanceRe | 4,391,375 | 4,403,012 | 4,955,255 | 4,860,837 | 4,866,577 | ||||||||||||||
Total liabilities, noncontrolling interests and shareholders' equity | $ | 15,226,131 | $ | 15,044,924 | $ | 13,705,680 | $ | 13,319,627 | $ | 12,352,082 | |||||||||
Book value per common share | $ | 99.72 | $ | 100.00 | $ | 113.08 | $ | 109.37 | $ | 108.45 |
8 |
RenaissanceRe Holdings Ltd. | ||||||||||||||||||||||||||||||||||
Investment Portfolio - Composition | ||||||||||||||||||||||||||||||||||
Type of Investment | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | |||||||||||||||||||||||||||||
U.S. treasuries | $ | 3,168,763 | 33.3 | % | $ | 2,956,952 | 30.7 | % | $ | 2,826,681 | 30.0 | % | $ | 2,635,800 | 27.9 | % | $ | 2,617,894 | 28.1 | % | ||||||||||||||
Agencies | 47,646 | 0.5 | % | 41,109 | 0.5 | % | 83,343 | 0.9 | % | 86,373 | 0.9 | % | 90,972 | 1.0 | % | |||||||||||||||||||
Municipal | 509,802 | 5.4 | % | 521,220 | 5.4 | % | 518,912 | 5.5 | % | 506,109 | 5.4 | % | 519,069 | 5.6 | % | |||||||||||||||||||
Non-U.S. government (Sovereign debt) | 287,660 | 3.0 | % | 177,855 | 1.8 | % | 173,667 | 1.8 | % | 341,725 | 3.6 | % | 333,224 | 3.6 | % | |||||||||||||||||||
Non-U.S. government-backed corporate | 163,651 | 1.7 | % | 121,892 | 1.3 | % | 74,620 | 0.8 | % | 118,092 | 1.2 | % | 133,300 | 1.4 | % | |||||||||||||||||||
Corporate | 2,063,459 | 21.7 | % | 2,028,750 | 21.0 | % | 2,186,040 | 23.2 | % | 2,205,442 | 23.4 | % | 1,877,243 | 20.2 | % | |||||||||||||||||||
Agency mortgage-backed | 500,456 | 5.3 | % | 499,310 | 5.2 | % | 567,560 | 6.0 | % | 505,829 | 5.3 | % | 462,493 | 5.0 | % | |||||||||||||||||||
Non-agency mortgage-backed | 300,331 | 3.1 | % | 299,530 | 3.1 | % | 275,268 | 3.0 | % | 270,983 | 2.9 | % | 258,944 | 2.7 | % | |||||||||||||||||||
Commercial mortgage-backed | 202,062 | 2.1 | % | 263,029 | 2.7 | % | 384,610 | 4.1 | % | 382,874 | 4.0 | % | 409,747 | 4.4 | % | |||||||||||||||||||
Asset-backed | 182,725 | 2.0 | % | 183,322 | 1.9 | % | 191,563 | 2.0 | % | 206,624 | 2.1 | % | 188,358 | 2.0 | % | |||||||||||||||||||
Total fixed maturity investments, at fair value | 7,426,555 | 78.1 | % | 7,092,969 | 73.6 | % | 7,282,264 | 77.3 | % | 7,259,851 | 76.7 | % | 6,891,244 | 74.0 | % | |||||||||||||||||||
Short term investments, at fair value | 991,863 | 10.4 | % | 1,497,262 | 15.5 | % | 1,070,950 | 11.4 | % | 1,199,797 | 12.7 | % | 1,368,379 | 14.7 | % | |||||||||||||||||||
Equity investments trading, at fair value | 388,254 | 4.1 | % | 402,035 | 4.2 | % | 393,405 | 4.2 | % | 388,424 | 4.1 | % | 383,313 | 4.1 | % | |||||||||||||||||||
Other investments, at fair value | 594,793 | 6.3 | % | 548,492 | 5.6 | % | 561,212 | 6.0 | % | 514,667 | 5.4 | % | 549,805 | 5.9 | % | |||||||||||||||||||
Total managed investment portfolio | 9,401,465 | 98.9 | % | 9,540,758 | 98.9 | % | 9,307,831 | 98.9 | % | 9,362,739 | 98.9 | % | 9,192,741 | 98.7 | % | |||||||||||||||||||
Investments in other ventures, under equity method | 101,974 | 1.1 | % | 101,420 | 1.1 | % | 101,077 | 1.1 | % | 97,131 | 1.1 | % | 124,227 | 1.3 | % | |||||||||||||||||||
Total investments | $ | 9,503,439 | 100.0 | % | $ | 9,642,178 | 100.0 | % | $ | 9,408,908 | 100.0 | % | $ | 9,459,870 | 100.0 | % | $ | 9,316,968 | 100.0 | % | ||||||||||||||
Credit Quality of Fixed Maturity Investments | ||||||||||||||||||||||||||||||||||
AAA | $ | 739,822 | 10.0 | % | $ | 731,560 | 10.3 | % | $ | 849,306 | 11.7 | % | $ | 1,043,008 | 14.4 | % | $ | 1,043,738 | 15.2 | % | ||||||||||||||
AA | 4,341,541 | 58.5 | % | 4,073,325 | 57.4 | % | 4,056,958 | 55.7 | % | 3,832,632 | 52.8 | % | 3,768,485 | 54.7 | % | |||||||||||||||||||
A | 813,953 | 11.0 | % | 755,457 | 10.7 | % | 743,633 | 10.2 | % | 727,568 | 10.0 | % | 644,150 | 9.3 | % | |||||||||||||||||||
BBB | 522,601 | 7.0 | % | 546,821 | 7.7 | % | 578,823 | 7.9 | % | 598,997 | 8.3 | % | 567,672 | 8.2 | % | |||||||||||||||||||
Non-investment grade and not rated | 1,008,638 | 13.5 | % | 985,806 | 13.9 | % | 1,053,544 | 14.5 | % | 1,057,646 | 14.5 | % | 867,199 | 12.6 | % | |||||||||||||||||||
Total fixed maturity investments, at fair value | $ | 7,426,555 | 100.0 | % | $ | 7,092,969 | 100.0 | % | $ | 7,282,264 | 100.0 | % | $ | 7,259,851 | 100.0 | % | $ | 6,891,244 | 100.0 | % | ||||||||||||||
Maturity Profile of Fixed Maturity Investments | ||||||||||||||||||||||||||||||||||
Due in less than one year | $ | 546,255 | 7.3 | % | $ | 367,091 | 5.2 | % | $ | 427,683 | 5.9 | % | $ | 514,037 | 7.1 | % | $ | 483,642 | 7.0 | % | ||||||||||||||
Due after one through five years | 4,521,930 | 60.9 | % | 4,324,948 | 61.0 | % | 4,111,191 | 56.5 | % | 4,004,237 | 55.2 | % | 3,900,915 | 56.6 | % | |||||||||||||||||||
Due after five through ten years | 1,007,656 | 13.6 | % | 1,001,975 | 14.1 | % | 1,153,811 | 15.8 | % | 1,182,697 | 16.3 | % | 1,028,249 | 14.9 | % | |||||||||||||||||||
Due after ten years | 165,140 | 2.2 | % | 153,764 | 2.1 | % | 170,578 | 2.3 | % | 192,570 | 2.6 | % | 158,896 | 2.3 | % | |||||||||||||||||||
Mortgage-backed securities | 1,002,849 | 13.5 | % | 1,061,869 | 15.0 | % | 1,227,438 | 16.9 | % | 1,159,686 | 16.0 | % | 1,131,184 | 16.4 | % | |||||||||||||||||||
Asset-backed securities | 182,725 | 2.5 | % | 183,322 | 2.6 | % | 191,563 | 2.6 | % | 206,624 | 2.8 | % | 188,358 | 2.8 | % | |||||||||||||||||||
Total fixed maturity investments, at fair value | $ | 7,426,555 | 100.0 | % | $ | 7,092,969 | 100.0 | % | $ | 7,282,264 | 100.0 | % | $ | 7,259,851 | 100.0 | % | $ | 6,891,244 | 100.0 | % | ||||||||||||||
Weighted average effective yield of fixed maturity and short term investments | 2.5 | % | 2.2 | % | 2.3 | % | 2.3 | % | 2.1 | % | ||||||||||||||||||||||||
Average duration of fixed maturities and short term investments | 2.5 | 2.6 | 2.6 | 2.6 | 2.4 |
9 |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Summary of Other Investments | |||||||||||||||||||
December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | |||||||||||||||
Type of Investment | |||||||||||||||||||
Catastrophe bonds | $ | 380,475 | $ | 332,044 | $ | 348,353 | $ | 298,564 | $ | 335,209 | |||||||||
Private equity partnerships | 196,220 | 196,280 | 194,331 | 192,975 | 191,061 | ||||||||||||||
Senior secured bank loan fund | 17,574 | 19,572 | 17,321 | 21,748 | 22,040 | ||||||||||||||
Hedge funds | 524 | 596 | 1,207 | 1,380 | 1,495 | ||||||||||||||
Total other investments, at fair value | $ | 594,793 | $ | 548,492 | $ | 561,212 | $ | 514,667 | $ | 549,805 | |||||||||
Type of Investment | |||||||||||||||||||
Catastrophe bonds | 64.0 | % | 60.5 | % | 62.1 | % | 58.0 | % | 61.0 | % | |||||||||
Private equity partnerships | 32.9 | % | 35.8 | % | 34.6 | % | 37.5 | % | 34.7 | % | |||||||||
Senior secured bank loan fund | 3.0 | % | 3.6 | % | 3.1 | % | 4.2 | % | 4.0 | % | |||||||||
Hedge funds | 0.1 | % | 0.1 | % | 0.2 | % | 0.3 | % | 0.3 | % | |||||||||
Total other investments, at fair value | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
10 |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||||||
Total Investment Result | |||||||||||||||||||||||||||
Three months ended | Year ended | ||||||||||||||||||||||||||
December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | |||||||||||||||||||||
Fixed maturity investments | $ | 46,544 | $ | 45,305 | $ | 44,356 | $ | 43,419 | $ | 38,605 | $ | 179,624 | $ | 160,661 | |||||||||||||
Short term investments | 3,606 | 2,771 | 2,981 | 1,724 | 1,726 | 11,082 | 5,127 | ||||||||||||||||||||
Equity investments trading | 998 | 930 | 889 | 811 | 910 | 3,628 | 4,235 | ||||||||||||||||||||
Other investments | |||||||||||||||||||||||||||
Private equity investments | 13,215 | 6,371 | 6,611 | 7,802 | 6,585 | 33,999 | 6,155 | ||||||||||||||||||||
Other | 12,587 | (11,491 | ) | 2,899 | 4,072 | 3,072 | 8,067 | 20,181 | |||||||||||||||||||
Cash and cash equivalents | 360 | 352 | 295 | 189 | 204 | 1,196 | 788 | ||||||||||||||||||||
77,310 | 44,238 | 58,031 | 58,017 | 51,102 | 237,596 | 197,147 | |||||||||||||||||||||
Investment expenses | (3,846 | ) | (3,981 | ) | (3,868 | ) | (3,692 | ) | (3,786 | ) | (15,387 | ) | (15,421 | ) | |||||||||||||
Net investment income | 73,464 | 40,257 | 54,163 | 54,325 | 47,316 | 222,209 | 181,726 | ||||||||||||||||||||
Gross realized gains | 6,068 | 16,343 | 15,249 | 11,461 | 11,945 | 49,121 | 72,739 | ||||||||||||||||||||
Gross realized losses | (8,930 | ) | (6,126 | ) | (7,243 | ) | (16,533 | ) | (12,483 | ) | (38,832 | ) | (38,315 | ) | |||||||||||||
Net realized (losses) gains on fixed maturity investments | (2,862 | ) | 10,217 | 8,006 | (5,072 | ) | (538 | ) | 10,289 | 34,424 | |||||||||||||||||
Net unrealized (losses) gains on fixed maturity investments trading | (40,461 | ) | 5,545 | 18,760 | 24,635 | (98,547 | ) | 8,479 | 26,954 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments-related derivatives | 1,854 | (4,020 | ) | (268 | ) | (56 | ) | 11,459 | (2,490 | ) | (15,414 | ) | |||||||||||||||
Net realized gains on equity investments trading | 30,291 | 13,675 | 15,146 | 20,915 | 152 | 80,027 | 14,190 | ||||||||||||||||||||
Net unrealized gains on equity investments trading | 3,462 | 16,635 | 16,469 | 2,951 | 37,507 | 39,517 | 81,174 | ||||||||||||||||||||
Net realized and unrealized (losses) gains on investments | (7,716 | ) | 42,052 | 58,113 | 43,373 | (49,967 | ) | 135,822 | 141,328 | ||||||||||||||||||
Change in net unrealized gains on fixed maturity investments available for sale | — | — | — | — | (1,398 | ) | — | (1,870 | ) | ||||||||||||||||||
Total investment result | $ | 65,748 | $ | 82,309 | $ | 112,276 | $ | 97,698 | $ | (4,049 | ) | $ | 358,031 | $ | 321,184 | ||||||||||||
Total investment return - annualized | 2.6 | % | 3.4 | % | 4.8 | % | 4.1 | % | (0.2 | )% | 3.6 | % | 3.5 | % |
11 |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||||||||||||||||
Investment Portfolio - Effective Yield and Credit Rating | |||||||||||||||||||||||||||||||||||||
Credit Rating (1) | |||||||||||||||||||||||||||||||||||||
December 31, 2017 | Amortized Cost | Fair Value | % of Total Investment Portfolio | Weighted Average Effective Yield | AAA | AA | A | BBB | Non- Investment Grade | Not Rated | |||||||||||||||||||||||||||
Short term investments | $ | 991,863 | $ | 991,863 | 10.4 | % | 1.4 | % | $ | 959,836 | $ | 28,927 | $ | 1,397 | $ | 506 | $ | — | $ | 1,197 | |||||||||||||||||
100.0 | % | 96.8 | % | 2.9 | % | 0.1 | % | 0.1 | % | — | % | 0.1 | % | ||||||||||||||||||||||||
Fixed maturity investments | |||||||||||||||||||||||||||||||||||||
U.S. treasuries | 3,195,767 | 3,168,763 | 33.3 | % | 1.9 | % | — | 3,168,763 | — | — | — | — | |||||||||||||||||||||||||
Agencies | |||||||||||||||||||||||||||||||||||||
Fannie Mae and Freddie Mac | 22,439 | 22,164 | 0.2 | % | 2.1 | % | — | 22,164 | — | — | — | — | |||||||||||||||||||||||||
Other agencies | 25,712 | 25,482 | 0.3 | % | 2.0 | % | — | 25,482 | — | — | — | — | |||||||||||||||||||||||||
Total agencies | 48,151 | 47,646 | 0.5 | % | 2.1 | % | — | 47,646 | — | — | — | — | |||||||||||||||||||||||||
Municipal | 506,486 | 509,802 | 5.4 | % | 2.2 | % | 99,978 | 245,250 | 125,630 | 38,944 | — | — | |||||||||||||||||||||||||
Non-U.S. government (Sovereign debt) | 287,641 | 287,660 | 3.0 | % | 2.0 | % | 208,289 | 52,316 | 26,348 | 707 | — | — | |||||||||||||||||||||||||
Non-U.S. government-backed corporate | 164,312 | 163,651 | 1.7 | % | 2.3 | % | 41,346 | 89,901 | 28,940 | 1,484 | 1,980 | — | |||||||||||||||||||||||||
Corporate | 2,057,219 | 2,063,459 | 21.7 | % | 3.8 | % | 59,272 | 163,006 | 624,074 | 464,626 | 723,167 | 29,314 | |||||||||||||||||||||||||
Mortgage-backed | |||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | |||||||||||||||||||||||||||||||||||||
Agency securities | 507,250 | 500,456 | 5.3 | % | 3.0 | % | — | 500,456 | — | — | — | — | |||||||||||||||||||||||||
Non-agency securities - Alt A | 228,184 | 241,915 | 2.5 | % | 3.7 | % | 8,333 | 8,334 | 3,787 | 11,628 | 192,481 | 17,352 | |||||||||||||||||||||||||
Non-agency securities - Prime | 55,119 | 58,416 | 0.6 | % | 3.7 | % | 4,712 | 3,961 | 2,499 | 2,900 | 43,251 | 1,093 | |||||||||||||||||||||||||
Total residential mortgage-backed | 790,553 | 800,787 | 8.4 | % | 3.2 | % | 13,045 | 512,751 | 6,286 | 14,528 | 235,732 | 18,445 | |||||||||||||||||||||||||
Commercial mortgage-backed | 202,452 | 202,062 | 2.1 | % | 2.9 | % | 163,687 | 37,812 | 231 | 332 | — | — | |||||||||||||||||||||||||
Total mortgage-backed | 993,005 | 1,002,849 | 10.5 | % | 3.2 | % | 176,732 | 550,563 | 6,517 | 14,860 | 235,732 | 18,445 | |||||||||||||||||||||||||
Asset-backed | |||||||||||||||||||||||||||||||||||||
Collateralized loan obligations | 145,125 | 145,673 | 1.5 | % | 2.9 | % | 120,820 | 24,096 | 757 | — | — | — | |||||||||||||||||||||||||
Credit cards | 15,095 | 15,059 | 0.2 | % | 2.1 | % | 15,059 | — | — | — | — | — | |||||||||||||||||||||||||
Auto loans | 14,773 | 14,696 | 0.2 | % | 2.2 | % | 14,696 | — | — | — | — | — | |||||||||||||||||||||||||
Student loans | 926 | 926 | — | % | 2.6 | % | 926 | — | — | — | — | — | |||||||||||||||||||||||||
Other | 6,370 | 6,371 | 0.1 | % | 3.7 | % | 2,704 | — | 1,687 | 1,980 | — | — | |||||||||||||||||||||||||
Total asset-backed | 182,289 | 182,725 | 2.0 | % | 2.8 | % | 154,205 | 24,096 | 2,444 | 1,980 | — | — | |||||||||||||||||||||||||
Total securitized assets | 1,175,294 | 1,185,574 | 12.5 | % | 3.1 | % | 330,937 | 574,659 | 8,961 | 16,840 | 235,732 | 18,445 | |||||||||||||||||||||||||
Total fixed maturity investments | 7,434,870 | 7,426,555 | 78.1 | % | 2.7 | % | 739,822 | 4,341,541 | 813,953 | 522,601 | 960,879 | 47,759 | |||||||||||||||||||||||||
100.0 | % | 10.0 | % | 58.5 | % | 11.0 | % | 7.0 | % | 12.9 | % | 0.6 | % | ||||||||||||||||||||||||
Equity investments trading | 388,254 | 4.1 | % | — | — | — | — | — | 388,254 | ||||||||||||||||||||||||||||
100.0 | % | — | % | — | % | — | % | — | % | — | % | 100.0 | % | ||||||||||||||||||||||||
Other investments | |||||||||||||||||||||||||||||||||||||
Catastrophe bonds | 380,475 | 4.0 | % | — | — | — | — | 380,475 | — | ||||||||||||||||||||||||||||
Private equity partnerships | 196,220 | 2.1 | % | — | — | — | — | — | 196,220 | ||||||||||||||||||||||||||||
Senior secured bank loan fund | 17,574 | 0.2 | % | — | — | — | — | — | 17,574 | ||||||||||||||||||||||||||||
Hedge funds | 524 | — | % | — | — | — | — | — | 524 | ||||||||||||||||||||||||||||
Total other investments | 594,793 | 6.3 | % | — | — | — | — | 380,475 | 214,318 | ||||||||||||||||||||||||||||
100.0 | % | — | % | — | % | — | % | — | % | 64.0 | % | 36.0 | % | ||||||||||||||||||||||||
Investments in other ventures | 101,974 | 1.1 | % | — | — | — | — | — | 101,974 | ||||||||||||||||||||||||||||
100.0 | % | — | % | — | % | — | % | — | % | — | % | 100.0 | % | ||||||||||||||||||||||||
Total investment portfolio | $ | 9,503,439 | 100.0 | % | $ | 1,699,658 | $ | 4,370,468 | $ | 815,350 | $ | 523,107 | $ | 1,341,354 | $ | 753,502 | |||||||||||||||||||||
100.0 | % | 17.9 | % | 46.0 | % | 8.6 | % | 5.5 | % | 14.1 | % | 7.9 | % |
(1) | The credit ratings included in this table are those assigned by Standard & Poor’s Corporation ("S&P"). When ratings provided by S&P were not available, ratings from other nationally recognized rating agencies were used. The Company has grouped short term investments with an A-1+ and A-1 short term issue credit rating as AAA, short term investments with an A-2 short term issue credit rating as AA and short term investments with an A-3 short term issue credit rating as A. |
12 |
RenaissanceRe Holdings Ltd. | ||||||||||||||||||||
Fixed Maturity and Short Term Investments - Corporate Top 10 Issuers by Fair Value | ||||||||||||||||||||
December 31, 2017 | ||||||||||||||||||||
Issuer | Total | Short term investments | Fixed maturity investments | |||||||||||||||||
Goldman Sachs Group Inc. | $ | 43,870 | $ | — | $ | 43,870 | ||||||||||||||
JP Morgan Chase & Co. | 35,359 | — | 35,359 | |||||||||||||||||
Morgan Stanley | 34,820 | — | 34,820 | |||||||||||||||||
Bank of America Corp. | 31,445 | — | 31,445 | |||||||||||||||||
Wells Fargo & Co. | 27,715 | — | 27,715 | |||||||||||||||||
HSBC Holdings PLC | 24,312 | — | 24,312 | |||||||||||||||||
Citigroup Inc. | 22,070 | — | 22,070 | |||||||||||||||||
UBS Group AG | 21,529 | — | 21,529 | |||||||||||||||||
The Bank of Nova Scotia | 18,281 | — | 18,281 | |||||||||||||||||
Fifth Third Bancorp | 17,709 | — | 17,709 | |||||||||||||||||
Total (1) | $ | 277,110 | $ | — | $ | 277,110 |
(1) | Excludes non-U.S. government-backed corporate fixed maturity investments, reverse repurchase agreements and commercial paper, at fair value. |
13 |
RenaissanceRe Holdings Ltd. | |||||||||||||||
Reserves for Claims and Claim Expenses | |||||||||||||||
Case Reserves | Additional Case Reserves | IBNR | Total | ||||||||||||
December 31, 2017 | |||||||||||||||
Property | $ | 696,285 | $ | 896,522 | $ | 893,583 | $ | 2,486,390 | |||||||
Casualty and Specialty | 689,962 | 124,923 | 1,760,607 | 2,575,492 | |||||||||||
Other | 6,605 | — | 11,921 | 18,526 | |||||||||||
Total | $ | 1,392,852 | $ | 1,021,445 | $ | 2,666,111 | $ | 5,080,408 | |||||||
September 30, 2017 | |||||||||||||||
Property | $ | 310,871 | $ | 416,758 | $ | 1,917,573 | $ | 2,645,202 | |||||||
Casualty and Specialty | 655,328 | 132,755 | 1,734,475 | 2,522,558 | |||||||||||
Other | 9,904 | — | 14,649 | 24,553 | |||||||||||
Total | $ | 976,103 | $ | 549,513 | $ | 3,666,697 | $ | 5,192,313 | |||||||
June 30, 2017 | |||||||||||||||
Property | $ | 221,898 | $ | 167,510 | $ | 216,163 | $ | 605,571 | |||||||
Casualty and Specialty | 635,834 | 111,021 | 1,619,915 | 2,366,770 | |||||||||||
Other | 2,532 | — | 14,933 | 17,465 | |||||||||||
Total | $ | 860,264 | $ | 278,531 | $ | 1,851,011 | $ | 2,989,806 | |||||||
March 31, 2017 | |||||||||||||||
Property | $ | 212,770 | $ | 171,257 | $ | 231,586 | $ | 615,613 | |||||||
Casualty and Specialty | 587,083 | 139,183 | 1,574,435 | 2,300,701 | |||||||||||
Other | 2,255 | — | 16,119 | 18,374 | |||||||||||
Total | $ | 802,108 | $ | 310,440 | $ | 1,822,140 | $ | 2,934,688 | |||||||
December 31, 2016 | |||||||||||||||
Property | $ | 214,954 | $ | 186,308 | $ | 226,512 | $ | 627,774 | |||||||
Casualty and Specialty | 591,705 | 105,419 | 1,498,002 | 2,195,126 | |||||||||||
Other | 6,935 | — | 18,459 | 25,394 | |||||||||||
Total | $ | 813,594 | $ | 291,727 | $ | 1,742,973 | $ | 2,848,294 |
14 |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||
Paid to Incurred Analysis | |||||||||||||||||||||||
Three months ended December 31, 2017 | Three months ended December 31, 2016 | ||||||||||||||||||||||
Gross | Recoveries | Net | Gross | Recoveries | Net | ||||||||||||||||||
Reserve for claims and claim expenses, beginning of period | $ | 5,192,313 | $ | 1,588,304 | $ | 3,604,009 | $ | 2,861,099 | $ | 240,769 | $ | 2,620,330 | |||||||||||
Incurred claims and claim expenses | |||||||||||||||||||||||
Current year | 538,023 | 196,626 | 341,397 | 277,281 | 65,898 | 211,383 | |||||||||||||||||
Prior years | (41,852 | ) | (4,519 | ) | (37,333 | ) | (107,326 | ) | (19,844 | ) | (87,482 | ) | |||||||||||
Total incurred claims and claim expenses | 496,171 | 192,107 | 304,064 | 169,955 | 46,054 | 123,901 | |||||||||||||||||
Paid claims and claim expenses | |||||||||||||||||||||||
Current year | 472,687 | 180,845 | 291,842 | 59,482 | 16,438 | 43,044 | |||||||||||||||||
Prior years | 140,827 | 12,940 | 127,887 | 105,899 | (9,333 | ) | 115,232 | ||||||||||||||||
Total paid claims and claim expenses | 613,514 | 193,785 | 419,729 | 165,381 | 7,105 | 158,276 | |||||||||||||||||
Foreign exchange | 5,438 | 4 | 5,434 | (17,379 | ) | (154 | ) | (17,225 | ) | ||||||||||||||
Reserve for claims and claim expenses, end of period | $ | 5,080,408 | $ | 1,586,630 | $ | 3,493,778 | $ | 2,848,294 | $ | 279,564 | $ | 2,568,730 | |||||||||||
Year ended December 31, 2017 | Year ended December 31, 2016 | ||||||||||||||||||||||
Gross | Recoveries | Net | Gross | Recoveries | Net | ||||||||||||||||||
Reserve for claims and claim expenses, beginning of period | $ | 2,848,294 | $ | 279,564 | $ | 2,568,730 | $ | 2,767,045 | $ | 134,526 | $ | 2,632,519 | |||||||||||
Incurred claims and claim expenses | |||||||||||||||||||||||
Current year | 3,464,548 | 1,562,124 | 1,902,424 | 888,381 | 193,424 | 694,957 | |||||||||||||||||
Prior years | (44,160 | ) | (3,164 | ) | (40,996 | ) | (177,730 | ) | (13,604 | ) | (164,126 | ) | |||||||||||
Total incurred claims and claim expenses | 3,420,388 | 1,558,960 | 1,861,428 | 710,651 | 179,820 | 530,831 | |||||||||||||||||
Paid claims and claim expenses | |||||||||||||||||||||||
Current year | 642,344 | 191,817 | 450,527 | 101,661 | 18,646 | 83,015 | |||||||||||||||||
Prior years | 584,484 | 60,186 | 524,298 | 522,175 | 15,896 | 506,279 | |||||||||||||||||
Total paid claims and claim expenses | 1,226,828 | 252,003 | 974,825 | 623,836 | 34,542 | 589,294 | |||||||||||||||||
Foreign exchange | 38,554 | 109 | 38,445 | (5,566 | ) | (240 | ) | (5,326 | ) | ||||||||||||||
Reserve for claims and claim expenses, end of period | $ | 5,080,408 | $ | 1,586,630 | $ | 3,493,778 | $ | 2,848,294 | $ | 279,564 | $ | 2,568,730 |
15 |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Earnings per Share | |||||||||||||||||||
Three months ended | |||||||||||||||||||
(common shares in thousands) | December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | ||||||||||||||
Numerator: | |||||||||||||||||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders | $ | (3,452 | ) | $ | (504,812 | ) | $ | 171,142 | $ | 92,352 | $ | 69,436 | |||||||
Amount allocated to participating common shareholders (1) | (113 | ) | (116 | ) | (1,585 | ) | (907 | ) | (789 | ) | |||||||||
$ | (3,565 | ) | $ | (504,928 | ) | $ | 169,557 | $ | 91,445 | $ | 68,647 | ||||||||
Denominator: | |||||||||||||||||||
Denominator for basic (loss) income per RenaissanceRe common share - | |||||||||||||||||||
Weighted average common shares | 39,478 | 39,591 | 39,937 | 40,408 | 40,474 | ||||||||||||||
Per common share equivalents of employee stock options and restricted shares | — | — | 87 | 215 | 233 | ||||||||||||||
Denominator for diluted (loss) income per RenaissanceRe common share - | |||||||||||||||||||
Adjusted weighted average common shares and assumed conversions | 39,478 | 39,591 | 40,024 | 40,623 | 40,707 | ||||||||||||||
Basic (loss) income per RenaissanceRe common share | $ | (0.09 | ) | $ | (12.75 | ) | $ | 4.25 | $ | 2.26 | $ | 1.70 | |||||||
Diluted (loss) income per RenaissanceRe common share | $ | (0.09 | ) | $ | (12.75 | ) | $ | 4.24 | $ | 2.25 | $ | 1.69 | |||||||
Year ended | |||||||||||||||||||
(common shares in thousands) | December 31, 2017 | December 31, 2016 | |||||||||||||||||
Numerator: | |||||||||||||||||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders | $ | (244,770 | ) | $ | 480,581 | ||||||||||||||
Amount allocated to participating common shareholders (1) | (457 | ) | (5,666 | ) | |||||||||||||||
$ | (245,227 | ) | $ | 474,915 | |||||||||||||||
Denominator: | |||||||||||||||||||
Denominator for basic (loss) income per RenaissanceRe common share - | |||||||||||||||||||
Weighted average common shares | 39,854 | 41,314 | |||||||||||||||||
Per common share equivalents of employee stock options and restricted shares | — | 245 | |||||||||||||||||
Denominator for diluted (loss) income per RenaissanceRe common share - | |||||||||||||||||||
Adjusted weighted average common shares and assumed conversions | 39,854 | 41,559 | |||||||||||||||||
Basic (loss) income per RenaissanceRe common share | $ | (6.15 | ) | $ | 11.50 | ||||||||||||||
Diluted (loss) income per RenaissanceRe common share | $ | (6.15 | ) | $ | 11.43 |
(1) | Represents earnings attributable to holders of unvested restricted shares issued pursuant to the Company's 2001 Stock Incentive Plan, 2010 Performance-Based Equity Incentive Plan, 2016 Long-Term Incentive Plan and to the Company's non-employee directors. |
16 |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Equity in Earnings (Losses) of Other Ventures | |||||||||||||||||||
Three months ended | |||||||||||||||||||
December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | |||||||||||||||
Top Layer Re | $ | 1,987 | $ | 2,722 | $ | 2,658 | $ | 2,484 | $ | 1,707 | |||||||||
Tower Hill Companies | (412 | ) | (383 | ) | 3,206 | (4,058 | ) | 2,860 | |||||||||||
Other | 625 | (545 | ) | (321 | ) | 67 | 393 | ||||||||||||
Total equity in earnings (losses) of other ventures | $ | 2,200 | $ | 1,794 | $ | 5,543 | $ | (1,507 | ) | $ | 4,960 | ||||||||
Year ended | |||||||||||||||||||
December 31, 2017 | December 31, 2016 | ||||||||||||||||||
Top Layer Re | $ | 9,851 | $ | (8,576 | ) | ||||||||||||||
Tower Hill Companies | (1,647 | ) | 10,379 | ||||||||||||||||
Other | (174 | ) | (840 | ) | |||||||||||||||
Total equity in earnings of other ventures | $ | 8,030 | $ | 963 | |||||||||||||||
Other Income | |||||||||||||||||||
Three months ended | |||||||||||||||||||
December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | |||||||||||||||
Assumed and ceded reinsurance contracts accounted for at fair value or as deposits | $ | 1,230 | $ | 2,793 | $ | 3,134 | $ | 1,498 | $ | 4,720 | |||||||||
Other items | 1,132 | 203 | (742 | ) | 167 | 457 | |||||||||||||
Total other income | $ | 2,362 | $ | 2,996 | $ | 2,392 | $ | 1,665 | $ | 5,177 | |||||||||
Year ended | |||||||||||||||||||
December 31, 2017 | December 31, 2016 | ||||||||||||||||||
Assumed and ceded reinsurance contracts accounted for at fair value or as deposits | $ | 8,655 | $ | 14,246 | |||||||||||||||
Other items | 760 | (68 | ) | ||||||||||||||||
Total other income | $ | 9,415 | $ | 14,178 |
17 |
RenaissanceRe Holdings Ltd. | |||||||
Ratings | |||||||
A.M. Best | S&P | Moody's | Fitch | ||||
Renaissance Reinsurance (1) | A+ | AA- | A1 | A+ | |||
DaVinci (1) | A | AA- | A3 | — | |||
Renaissance Reinsurance U.S. (1) | A | AA- | — | — | |||
RenaissanceRe Specialty U.S. (1) | A | AA- | — | — | |||
Renaissance Reinsurance of Europe (1) | A+ | AA- | — | — | |||
Top Layer Re (1) | A+ | AA | — | — | |||
Syndicate 1458 | — | — | — | — | |||
Lloyd's Overall Market Rating (2) | A | A+ | — | AA- | |||
RenaissanceRe (3) | — | Very Strong | — | — |
18 |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||||||
Gross Premiums Written | |||||||||||||||||||||||||||
Three months ended | Year ended | ||||||||||||||||||||||||||
December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | |||||||||||||||||||||
Property Segment | |||||||||||||||||||||||||||
Catastrophe | $ | 35,012 | $ | 243,514 | $ | 411,500 | $ | 414,424 | $ | 7,705 | $ | 1,104,450 | $ | 884,361 | |||||||||||||
Other property | 60,154 | 81,881 | 87,847 | 106,105 | 44,742 | 335,987 | 226,902 | ||||||||||||||||||||
Property segment gross premiums written | $ | 95,166 | $ | 325,395 | $ | 499,347 | $ | 520,529 | $ | 52,447 | $ | 1,440,437 | $ | 1,111,263 | |||||||||||||
Casualty and Specialty Segment | |||||||||||||||||||||||||||
Professional liability (1) | $ | 117,075 | $ | 101,482 | $ | 101,447 | $ | 132,306 | $ | 83,804 | $ | 452,310 | $ | 377,580 | |||||||||||||
Financial lines (2) | 83,157 | 66,186 | 69,314 | 85,143 | 85,208 | 303,800 | 413,068 | ||||||||||||||||||||
General casualty (3) | 80,538 | $ | 107,055 | $ | 107,994 | $ | 122,293 | $ | 79,669 | 417,880 | 327,939 | ||||||||||||||||
Other (4) | 31,830 | 40,158 | 49,313 | 61,819 | 21,963 | 183,120 | 144,726 | ||||||||||||||||||||
Casualty and Specialty segment gross premiums written | $ | 312,600 | $ | 314,881 | $ | 328,068 | $ | 401,561 | $ | 270,644 | $ | 1,357,110 | $ | 1,263,313 |
(1) | Includes directors and officers, medical malpractice, and professional indemnity. |
(2) | Includes financial guaranty, mortgage guaranty, political risk, surety and trade credit. |
(3) | Includes automobile liability, casualty clash, employer’s liability, umbrella or excess casualty, workers’ compensation and general liability. |
(4) | Includes accident and health, agriculture, aviation, cyber, energy, marine, satellite and terrorism. Lines of business such as regional multi-line and whole account may have characteristics of various other classes of business, and are allocated accordingly. |
19 |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||
Property Segment Supplemental Underwriting Results | |||||||||||||||||||||||
Three months ended December 31, 2017 | Three months ended December 31, 2016 | ||||||||||||||||||||||
Catastrophe | Other Property | Total | Catastrophe | Other Property | Total | ||||||||||||||||||
Gross premiums written | $ | 35,012 | $ | 60,154 | $ | 95,166 | $ | 7,705 | $ | 44,742 | $ | 52,447 | |||||||||||
Net premiums written | $ | 22,564 | $ | 59,722 | $ | 82,286 | $ | 6,974 | $ | 43,986 | $ | 50,960 | |||||||||||
Net premiums earned | $ | 150,688 | $ | 64,358 | $ | 215,046 | $ | 134,301 | $ | 47,697 | $ | 181,998 | |||||||||||
Net claims and claim expenses incurred | 145,237 | 36,475 | 181,712 | 3,461 | 22,466 | 25,927 | |||||||||||||||||
Acquisition expenses | 18,787 | 19,912 | 38,699 | 13,094 | 13,324 | 26,418 | |||||||||||||||||
Operational expenses | 13,930 | 3,423 | 17,353 | 23,437 | 5,764 | 29,201 | |||||||||||||||||
Underwriting (loss) income | $ | (27,266 | ) | $ | 4,548 | $ | (22,718 | ) | $ | 94,309 | $ | 6,143 | $ | 100,452 | |||||||||
Net claims and claim expenses incurred - current accident year | $ | 165,171 | $ | 45,169 | $ | 210,340 | $ | 56,815 | $ | 36,475 | $ | 93,291 | |||||||||||
Net claims and claim expenses incurred - prior accident years | (19,934 | ) | (8,694 | ) | (28,628 | ) | (53,354 | ) | (14,009 | ) | (67,364 | ) | |||||||||||
Net claims and claim expenses incurred - total | $ | 145,237 | $ | 36,475 | $ | 181,712 | $ | 3,461 | $ | 22,466 | $ | 25,927 | |||||||||||
Net claims and claim expense ratio - current accident year | 109.6 | % | 70.2 | % | 97.8 | % | 42.3 | % | 76.5 | % | 51.3 | % | |||||||||||
Net claims and claim expense ratio - prior accident years | (13.2 | )% | (13.5 | )% | (13.3 | )% | (39.7 | )% | (29.4 | )% | (37.1 | )% | |||||||||||
Net claims and claim expense ratio - calendar year | 96.4 | % | 56.7 | % | 84.5 | % | 2.6 | % | 47.1 | % | 14.2 | % | |||||||||||
Underwriting expense ratio | 21.7 | % | 36.2 | % | 26.1 | % | 27.2 | % | 40.0 | % | 30.6 | % | |||||||||||
Combined ratio | 118.1 | % | 92.9 | % | 110.6 | % | 29.8 | % | 87.1 | % | 44.8 | % | |||||||||||
Year ended December 31, 2017 | Year ended December 31, 2016 | ||||||||||||||||||||||
Catastrophe | Other Property | Total | Catastrophe | Other Property | Total | ||||||||||||||||||
Gross premiums written | $ | 1,104,450 | $ | 335,987 | $ | 1,440,437 | $ | 884,361 | $ | 226,902 | $ | 1,111,263 | |||||||||||
Net premiums written | $ | 694,607 | $ | 283,407 | $ | 978,014 | $ | 523,469 | $ | 201,852 | $ | 725,321 | |||||||||||
Net premiums earned | $ | 700,990 | $ | 230,080 | $ | 931,070 | $ | 558,627 | $ | 162,324 | $ | 720,951 | |||||||||||
Net claims and claim expenses incurred | 1,083,376 | 214,609 | 1,297,985 | 69,594 | 81,951 | 151,545 | |||||||||||||||||
Acquisition expenses | 36,928 | 76,888 | 113,816 | 51,935 | 45,659 | 97,594 | |||||||||||||||||
Operational expenses | 77,052 | 17,142 | 94,194 | 86,775 | 21,867 | 108,642 | |||||||||||||||||
Underwriting (loss) income | $ | (496,366 | ) | $ | (78,559 | ) | $ | (574,925 | ) | $ | 350,323 | $ | 12,847 | $ | 363,170 | ||||||||
Net claims and claim expenses incurred - current accident year | $ | 1,127,699 | $ | 215,882 | $ | 1,343,581 | $ | 159,753 | $ | 96,667 | $ | 256,421 | |||||||||||
Net claims and claim expenses incurred - prior accident years | (44,323 | ) | (1,273 | ) | (45,596 | ) | (90,159 | ) | (14,716 | ) | (104,876 | ) | |||||||||||
Net claims and claim expenses incurred - total | $ | 1,083,376 | $ | 214,609 | $ | 1,297,985 | $ | 69,594 | $ | 81,951 | $ | 151,545 | |||||||||||
Net claims and claim expense ratio - current accident year | 160.9 | % | 93.8 | % | 144.3 | % | 28.6 | % | 59.6 | % | 35.6 | % | |||||||||||
Net claims and claim expense ratio - prior accident years | (6.4 | )% | (0.5 | )% | (4.9 | )% | (16.1 | )% | (9.1 | )% | (14.6 | )% | |||||||||||
Net claims and claim expense ratio - calendar year | 154.5 | % | 93.3 | % | 139.4 | % | 12.5 | % | 50.5 | % | 21.0 | % | |||||||||||
Underwriting expense ratio | 16.3 | % | 40.8 | % | 22.3 | % | 24.8 | % | 41.6 | % | 28.6 | % | |||||||||||
Combined ratio | 170.8 | % | 134.1 | % | 161.7 | % | 37.3 | % | 92.1 | % | 49.6 | % |
20 |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||||||
Lloyd's Platform Supplemental Underwriting Results | |||||||||||||||||||||||||||
Three months ended | Year ended | ||||||||||||||||||||||||||
December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | |||||||||||||||||||||
Gross premiums written | $ | 135,474 | $ | 146,453 | $ | 177,230 | $ | 176,788 | $ | 96,861 | $ | 635,945 | $ | 482,477 | |||||||||||||
Net premiums written | $ | 103,887 | $ | 107,755 | $ | 144,278 | $ | 74,709 | $ | 70,705 | $ | 430,629 | $ | 334,720 | |||||||||||||
Net premiums earned | $ | 105,303 | $ | 103,387 | $ | 87,491 | $ | 78,816 | $ | 78,324 | $ | 374,997 | $ | 286,938 | |||||||||||||
Net claims and claim expenses incurred | 60,071 | 124,216 | 51,738 | 59,923 | 49,634 | 295,948 | 149,819 | ||||||||||||||||||||
Acquisition expenses | 26,528 | 24,173 | 24,120 | 22,921 | 19,402 | 97,742 | 73,298 | ||||||||||||||||||||
Operational expenses | 8,220 | 10,955 | 10,424 | 11,711 | 11,231 | 41,310 | 46,533 | ||||||||||||||||||||
Underwriting income (loss) | $ | 10,484 | $ | (55,957 | ) | $ | 1,209 | $ | (15,739 | ) | $ | (1,943 | ) | $ | (60,003 | ) | $ | 17,288 | |||||||||
Net claims and claim expenses incurred - current accident year | $ | 66,369 | $ | 123,494 | $ | 36,731 | $ | 35,679 | $ | 49,408 | $ | 262,273 | $ | 154,991 | |||||||||||||
Net claims and claim expenses incurred - prior accident years | (6,298 | ) | 722 | 15,007 | 24,244 | 226 | 33,675 | (5,172 | ) | ||||||||||||||||||
Net claims and claim expenses incurred - total | $ | 60,071 | $ | 124,216 | $ | 51,738 | $ | 59,923 | $ | 49,634 | $ | 295,948 | $ | 149,819 | |||||||||||||
Net claims and claim expense ratio - current accident year | 63.0 | % | 119.4 | % | 42.0 | % | 45.3 | % | 63.1 | % | 69.9 | % | 54.0 | % | |||||||||||||
Net claims and claim expense ratio - prior accident years | (6.0 | )% | 0.7 | % | 17.1 | % | 30.7 | % | 0.3 | % | 9.0 | % | (1.8 | )% | |||||||||||||
Net claims and claim expense ratio - calendar year | 57.0 | % | 120.1 | % | 59.1 | % | 76.0 | % | 63.4 | % | 78.9 | % | 52.2 | % | |||||||||||||
Underwriting expense ratio | 33.0 | % | 34.0 | % | 39.5 | % | 44.0 | % | 39.1 | % | 37.1 | % | 41.8 | % | |||||||||||||
Combined ratio | 90.0 | % | 154.1 | % | 98.6 | % | 120.0 | % | 102.5 | % | 116.0 | % | 94.0 | % |
21 |
Three months ended | Year ended | ||||||||||||||||||||||||||
December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | |||||||||||||||||||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders | $ | (3,452 | ) | $ | (504,812 | ) | $ | 171,142 | $ | 92,352 | $ | 69,436 | $ | (244,770 | ) | $ | 480,581 | ||||||||||
Adjustment for net realized and unrealized losses (gains) on investments | 7,716 | (42,052 | ) | (58,113 | ) | (43,373 | ) | 49,967 | (135,822 | ) | (141,328 | ) | |||||||||||||||
Adjustment for deferred tax asset write-down (1) | 36,705 | — | — | — | — | 36,705 | — | ||||||||||||||||||||
Adjustment for income tax expense (benefit) (2) | 384 | 2,711 | 3,785 | 4,707 | (10,533 | ) | 11,587 | 3,000 | |||||||||||||||||||
Operating income (loss) available (attributable) to RenaissanceRe common shareholders | $ | 41,353 | $ | (544,153 | ) | $ | 116,814 | $ | 53,686 | $ | 108,870 | $ | (332,300 | ) | $ | 342,253 | |||||||||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share - diluted | $ | (0.09 | ) | $ | (12.75 | ) | $ | 4.24 | $ | 2.25 | $ | 1.69 | $ | (6.15 | ) | $ | 11.43 | ||||||||||
Adjustment for net realized and unrealized losses (gains) on investments | 0.20 | (1.06 | ) | (1.45 | ) | (1.07 | ) | 1.23 | (3.41 | ) | (3.40 | ) | |||||||||||||||
Adjustment for deferred tax asset write-down (1) | 0.93 | — | — | — | — | 0.92 | — | ||||||||||||||||||||
Adjustment for income tax expense (benefit) (2) | 0.01 | 0.07 | 0.09 | 0.12 | (0.26 | ) | 0.29 | 0.07 | |||||||||||||||||||
Operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted | $ | 1.05 | $ | (13.74 | ) | $ | 2.88 | $ | 1.30 | $ | 2.66 | $ | (8.35 | ) | $ | 8.10 | |||||||||||
Return on average common equity - annualized | (0.3 | )% | (47.2 | )% | 15.2 | % | 8.3 | % | 6.3 | % | (5.7 | )% | 11.0 | % | |||||||||||||
Adjustment for net realized and unrealized losses (gains) on investments | 0.8 | % | (3.9 | )% | (5.2 | )% | (3.9 | )% | 4.5 | % | (3.2 | )% | (3.2 | )% | |||||||||||||
Adjustment for deferred tax asset write-down (1) | 3.7 | % | — | % | — | % | — | % | — | % | 0.9 | % | — | % | |||||||||||||
Adjustment for income tax expense (benefit) (2) | — | % | 0.3 | % | 0.3 | % | 0.4 | % | (0.9 | )% | 0.3 | % | 0.1 | % | |||||||||||||
Operating return on average common equity - annualized | 4.2 | % | (50.8 | )% | 10.3 | % | 4.8 | % | 9.9 | % | (7.7 | )% | 7.9 | % |
(1) | Adjustment for deferred tax asset write-down represents the write-down of a portion of the Company's deferred tax asset as a result of the reduction in the U.S. corporate tax rate from 35% to 21% effective January 1, 2018 pursuant to the Tax Bill, which was enacted on December 22, 2017. |
(2) | Adjustment for income tax expense (benefit) represents the income tax expense (benefit) associated with the adjustment for net realized and unrealized gains (losses) on investments. The income tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors. |
22 |
At | |||||||||||||||||||
December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | |||||||||||||||
Book value per common share | $ | 99.72 | $ | 100.00 | $ | 113.08 | $ | 109.37 | $ | 108.45 | |||||||||
Adjustment for goodwill and other intangibles (1) | (6.49 | ) | (6.55 | ) | (6.56 | ) | (6.55 | ) | (6.58 | ) | |||||||||
Tangible book value per common share | 93.23 | 93.45 | 106.52 | 102.82 | 101.87 | ||||||||||||||
Adjustment for accumulated dividends | 18.00 | 17.68 | 17.36 | 17.04 | 16.72 | ||||||||||||||
Tangible book value per common share plus accumulated dividends | $ | 111.23 | $ | 111.13 | $ | 123.88 | $ | 119.86 | $ | 118.59 | |||||||||
Quarterly change in book value per common share | (0.3 | )% | (11.6 | )% | 3.4 | % | 0.8 | % | 1.3 | % | |||||||||
Quarterly change in tangible book value per common share plus change in accumulated dividends | 0.1 | % | (12.0 | )% | 3.9 | % | 1.2 | % | 1.8 | % | |||||||||
Year to date change in book value per common share | (8.0 | )% | 9.4 | % | |||||||||||||||
Year to date change in tangible book value per common share plus change in accumulated dividends | (7.2 | )% | 11.4 | % |
(1) | At December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017 and December 31, 2016, goodwill and other intangibles included $16.7 million, $17.4 million, $18.1 million, $18.9 million and $19.7 million, respectively, of goodwill and other intangibles included in investments in other ventures, under equity method. |
23 |
Three months ended | Year ended | ||||||||||||||||||||||||||
December 31, 2017 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | |||||||||||||||||||||
Property Segment | |||||||||||||||||||||||||||
Catastrophe | $ | 35,012 | $ | 243,514 | $ | 411,500 | $ | 414,424 | $ | 7,705 | $ | 1,104,450 | $ | 884,361 | |||||||||||||
Other property | 60,154 | 81,881 | 87,847 | 106,105 | 44,742 | 335,987 | 226,902 | ||||||||||||||||||||
Property segment gross premiums written | $ | 95,166 | $ | 325,395 | $ | 499,347 | $ | 520,529 | $ | 52,447 | $ | 1,440,437 | $ | 1,111,263 | |||||||||||||
Managed Catastrophe Premiums | |||||||||||||||||||||||||||
Property segment gross premiums written | $ | 95,166 | $ | 325,395 | $ | 499,347 | $ | 520,529 | $ | 52,447 | $ | 1,440,437 | $ | 1,111,263 | |||||||||||||
Other property gross premiums written | (60,154 | ) | (81,881 | ) | (87,847 | ) | (106,105 | ) | (44,742 | ) | (335,987 | ) | (226,902 | ) | |||||||||||||
Catastrophe gross premiums written | $ | 35,012 | $ | 243,514 | $ | 411,500 | $ | 414,424 | $ | 7,705 | $ | 1,104,450 | $ | 884,361 | |||||||||||||
Catastrophe premiums written on behalf of the Company's joint venture, Top Layer Re | 1,540 | 1,510 | 26,337 | 12,385 | 1,389 | 41,772 | 39,667 | ||||||||||||||||||||
Catastrophe premiums written by the Company and ceded to Top Layer Re | — | — | — | — | — | — | (9,263 | ) | |||||||||||||||||||
Managed catastrophe premiums | $ | 36,552 | $ | 245,024 | $ | 437,837 | $ | 426,809 | $ | 9,094 | $ | 1,146,222 | $ | 914,765 |
24 |