Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 7, 2019
 RenaissanceRe Holdings Ltd.
(Exact name of registrant as specified in its charter)
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)
Registrant’s telephone number, including area code: (441) 295-4513
Not Applicable
(Former name or former address, if changed since last report).

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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))
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading
symbol
Name of each exchange on which registered
Common Shares, Par Value $1.00 per share
RNR
New York Stock Exchange, Inc.
Series C 6.08% Preference Shares, Par Value $1.00 per share
RNR PRC
New York Stock Exchange, Inc.
Series E 5.375% Preference Shares, Par Value $1.00 per share
RNR PRE
New York Stock Exchange, Inc.
Depositary Shares, each representing a 1/1,000th interest in a Series F 5.750% Preference Share, Par Value $1.00 per share
RNR PRF
New York Stock Exchange, Inc.





Item 2.02.
Results of Operations and Financial Condition.
On May 7, 2019, RenaissanceRe Holdings Ltd. (the “Company”) issued a press release announcing its financial results for the three months ended March 31, 2019 and the availability of its corresponding financial supplement. Copies of the press release and the financial supplement are attached as Exhibit 99.1 and 99.2, respectively, to this Form 8-K. This Form 8-K and Exhibits 99.1 and 99.2 hereto are each being furnished to the Securities and Exchange Commission (the SEC) pursuant to Item 2.02 of Form 8-K and are therefore not to be considered filed with the SEC.
Item 9.01.
Financial Statements and Exhibits.
(d) Exhibits.

Exhibit #
 
Description
99.1*
 
99.2*
 
*
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 registrants other SEC filings.






SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. 
 
 
 
 
 
 
 
 
RENAISSANCERE HOLDINGS LTD.
 
 
 
 
 
 
 
 
 
 
Date:
 
 
By:
/s/ Robert Qutub
May 7, 2019
 
 
 
Robert Qutub
 
 
 
 
Executive Vice President and Chief Financial Officer



Exhibit


https://cdn.kscope.io/a0a7581fe6798b8565eaed9f1f0b8f5e-renaissanceresmalla18.jpg
RenaissanceRe Reports First Quarter 2019 Net Income Available to Common Shareholders of $273.7 Million, or $6.43 Per Diluted Common Share; Operating Income Available to Common Shareholders of $154.4 Million, or $3.60 Per Diluted Common Share
Pembroke, Bermuda, May 7, 2019 -- RenaissanceRe Holdings Ltd. (NYSE: RNR) (the “Company” or “RenaissanceRe”) today reported net income available to RenaissanceRe common shareholders of $273.7 million, or $6.43 per diluted common share, in the first quarter of 2019, compared to $56.7 million, or $1.42 per diluted common share, in the first quarter of 2018. Operating income available to RenaissanceRe common shareholders was $154.4 million, or $3.60 per diluted common share, in the first quarter of 2019, compared to $122.1 million, or $3.07 per diluted common share, in the first quarter of 2018. The Company reported an annualized return on average common equity of 23.5% and an annualized operating return on average common equity of 13.3% in the first quarter of 2019, compared to 5.7% and 12.2%, respectively, in the first quarter of 2018. Book value per common share increased $6.92, or 6.6%, to $111.05 in the first quarter of 2019, compared to a 0.6% increase in the first quarter of 2018. Tangible book value per common share plus accumulated dividends increased $6.88, or 7.0%, to $124.05 in the first quarter of 2019, compared to a 0.8% increase in the first quarter of 2018.
Kevin J. O’Donnell, President and Chief Executive Officer of RenaissanceRe, commented: “Our strong first quarter was distinguished by solid profits, material growth and strategic advancement. We achieved an annualized operating return on average common equity of 13.3% and growth in tangible book value per common share plus accumulated dividends of 7.0%. At the same time, we grew our business materially by leveraging into an improving rate environment.  The purchase of Tokio Millennium Re advanced our strategy, and we have moved from planning to execution on what we are optimistic will be a quick and successful integration.”
Acquisition of Tokio Millennium Re
On March 22, 2019, the Company's wholly owned subsidiary RenaissanceRe Specialty Holdings (UK) Limited completed its previously announced purchase of all the share capital of Tokio Millennium Re AG (now known as RenaissanceRe Europe AG), Tokio Millennium Re (UK) Limited (now known as RenaissanceRe (UK) Limited) and their subsidiaries (collectively, the “TMR Group Entities”) (the “TMR Stock Purchase”). The operating activities of the TMR Group Entities from the acquisition date, March 22, 2019, through March 31, 2019 were not material and as a result were not included in the Company’s consolidated statements of operations for the first quarter of 2019. At March 31, 2019, the Company’s consolidated balance sheet reflects the combined entities. 
During the first quarter of 2019, the Company recorded $25.5 million of corporate expenses associated with the acquisition, comprised of $12.9 million of transaction-related costs, $5.9 million of integration-related costs, and $6.7 million of compensation-related costs. In addition, the Company recognized $18.0 million of net identifiable intangible assets and $13.1 million of goodwill in connection with the acquisition, further detailed in the table below, or a total of $0.74 per diluted common share in the first quarter of 2019.
 
 
 
 
 
 
March 31, 2019
 
 
Top broker relationships
$
10,000

 
 
Renewal rights
1,200

 
 
Insurance licenses
6,800

 
 
Net identifiable intangible assets at March 31, 2019 related to the acquisition of the TMR Group Entities
18,000

 
 
Excess purchase price over the fair value of net assets acquired assigned to goodwill
13,094

 
 
Total net identifiable intangible assets and goodwill recognized related to the acquisition of the TMR Group Entities
$
31,094

 
 
 
 
 

1



First Quarter of 2019 Summary
Underwriting income of $154.1 million and a combined ratio of 72.0% in the first quarter of 2019, compared to $129.6 million and 70.6%, respectively, in the first quarter of 2018. The Property segment generated underwriting income of $152.4 million and had a combined ratio of 47.6%. The Casualty and Specialty segment generated underwriting income of $1.7 million and had a combined ratio of 99.3%.
Gross premiums written increased by $404.6 million, or 34.9%, to $1.6 billion, in the first quarter of 2019, compared to the first quarter of 2018, driven by an increase of $325.4 million in the Property segment and an increase of $79.2 million in the Casualty and Specialty segment.
Total investment result was a gain of $252.1 million in the first quarter of 2019, generating an annualized total investment return of 8.0%.
Underwriting Results by Segment
Property Segment
Gross premiums written in the Property segment were $1.0 billion in the first quarter of 2019, an increase of $325.4 million, or 46.0%, compared to $707.0 million in the first quarter of 2018.
Gross premiums written in the catastrophe class of business were $845.2 million in the first quarter of 2019, an increase of $254.9 million, or 43.2%, compared to the first quarter of 2018. The increase in gross premiums written in the catastrophe class of business in the first quarter of 2019 was driven primarily by expanded participation on existing transactions and certain new transactions.
Gross premiums written in the other property class of business were $187.2 million in the first quarter of 2019, an increase of $70.5 million, or 60.5%, compared to the first quarter of 2018. The increase in gross premiums written in the other property class of business was primarily driven by growth across a number of the Company’s underwriting platforms, both from existing relationships and through new opportunities.
Ceded premiums written in the Property segment were $468.2 million in the first quarter of 2019, an increase of $115.3 million, or 32.7%, compared to the first quarter of 2018. The increase in ceded premiums written in the first quarter of 2019 was principally due to a significant portion of the increase in gross premiums written in the catastrophe class of business noted above being ceded to third-party investors in the Company’s managed joint venture, Upsilon RFO.
The Property segment generated underwriting income of $152.4 million and had a combined ratio of 47.6% in the first quarter of 2019, compared to $127.2 million and 43.5%, respectively, in the first quarter of 2018. Principally impacting the Property segment underwriting result and combined ratio in the first quarter of 2019 was lower current accident year net claims and claim expenses driven by a relatively lower level of insured catastrophe events, compared to the first quarter of 2018. Partially offsetting this was net adverse development on prior accident years net claims and claim expenses of $1.9 million, or 0.7% percentage points, during the first quarter of 2019, primarily driven by higher than expected losses in the other property class of business.
Casualty and Specialty Segment
Gross premiums written in the Casualty and Specialty segment were $531.9 million in the first quarter of 2019, an increase of $79.2 million, or 17.5%, compared to the first quarter of 2018. The increase was due to continued growth from new and existing business opportunities across various classes of business within the segment.
The Casualty and Specialty segment generated underwriting income of $1.7 million and had a combined ratio of 99.3% in the first quarter of 2019, compared to $2.6 million and 98.8%, respectively, in the first quarter of 2018.
During the first quarter of 2019, the Casualty and Specialty segment experienced net favorable development on prior accident years net claims and claim expenses of $6.2 million, or 2.4 percentage points, compared to net favorable development of $3.8 million, or 1.8 percentage points, in the first quarter of 2018. The net favorable development during the first quarter of 2019 was principally driven by reported losses generally coming in lower than expected on attritional net claims and claim expenses from various lines of business within the segment.
Other Items
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 $252.1 million in the first quarter of 2019, compared

2



to a loss of $25.7 million in the first quarter of 2018, an increase of $277.8 million. The increase in the total investment result was principally due to significant net unrealized gains from the Company’s fixed maturity and public equity portfolios and higher net investment income primarily driven by the Company’s fixed maturity, short term and private equity investments.
Net income attributable to redeemable noncontrolling interests in the first quarter of 2019 was $70.2 million, compared to $29.9 million in the first quarter of 2018. The result for the first quarter of 2019 was primarily driven by DaVinciRe generating net income of $80.3 million in the first quarter of 2019, compared to $26.9 million in the first quarter of 2018. The Company’s ownership in DaVinciRe was 22.1% at both March 31, 2019 and March 31, 2018. The Company expects its noncontrolling economic ownership in DaVinciRe to fluctuate over time.
In connection with the TMR Stock Purchase, the Company issued 1,739,071 of its common shares to Tokio Marine & Nichido Fire Insurance Co. Ltd.
On April 2, 2019, the Company issued $400.0 million of its 3.600% Senior Notes due April 15, 2029. A portion of the net proceeds were used to repay, in full, $200.0 million outstanding under the Company’s revolving credit facility, which was drawn on March 20, 2019 in connection with the acquisition of the TMR Group Entities. The remainder of the net proceeds will be used for general corporate purposes.
This Press Release includes certain non-GAAP financial measures including “operating income available to RenaissanceRe common shareholders”, “operating income available to RenaissanceRe common shareholders per common share - diluted”, “operating return on average common equity - annualized”, “tangible book value per common share” and “tangible book value per common share plus accumulated dividends.” A reconciliation of such measures to the most comparable GAAP figures in accordance with Regulation G is presented in the attached supplemental financial data.
Please refer to the “Investors - Financial Reports - Financial Supplements” section of the Company’s website at www.renre.com for a copy of the Financial Supplement which includes additional information on the Company’s financial performance.
RenaissanceRe will host a conference call on Wednesday, May 8, 2019 at 10:00 a.m. ET to discuss this release. Live broadcast of the conference call will be available through the “Investors - Webcasts & Presentations” section of the Company’s website at www.renre.com.
About RenaissanceRe
RenaissanceRe is a global provider of reinsurance and insurance that specializes in matching well-structured risks with efficient sources of capital. The Company provides property, casualty and specialty reinsurance and certain insurance solutions to customers, principally through intermediaries. Established in 1993, the Company has offices in Bermuda, Australia, Ireland, Singapore, Switzerland, the United Kingdom and the United States.
Cautionary Statement Regarding Forward-Looking Statements
Any forward-looking statements made in this Press Release reflect RenaissanceRe’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are subject to numerous factors that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements, including the following: the frequency and severity of catastrophic and other events that the Company covers; the effectiveness of the Company’s claims and claim expense reserving process; risks that the TMR Stock Purchase disrupts or distracts from current plans and operations; the ability to recognize the benefits of the TMR Stock Purchase; the amount of the costs, fees, expenses and charges related to the TMR Stock Purchase; the Company’s ability to maintain its financial strength ratings; the effect of climate change on the Company’s business; collection on claimed retrocessional coverage, and new retrocessional reinsurance being available on acceptable terms and providing the coverage that we intended to obtain; the effects of U.S. tax reform legislation and possible future tax reform legislation and regulations, including changes to the tax treatment of the Company’s shareholders or investors in the Company’s joint ventures or other entities the Company manages; the effect of emerging claims and coverage issues; soft reinsurance underwriting market conditions; the Company’s reliance on a small and decreasing number of reinsurance brokers and other distribution services for the preponderance of its revenue; the Company’s exposure to credit loss from counterparties in the normal course of business; the effect of continued challenging economic conditions throughout the world; a contention by the Internal Revenue Service that Renaissance Reinsurance Ltd., or any of the Company’s other Bermuda subsidiaries, is subject to taxation in the

3



U.S.; the success of any of the Company’s strategic investments or acquisitions, including the Company’s ability to manage its operations as its product and geographical diversity increases; the Company’s ability to retain key senior officers and to attract or retain the executives and employees necessary to manage its business; the performance of the Company’s investment portfolio; losses that the Company could face from terrorism, political unrest or war; the effect of cybersecurity risks, including technology breaches or failure on the Company’s business; the Company’s ability to successfully implement its business strategies and initiatives; the Company’s ability to determine the impairments taken on investments; the effects of inflation; the ability of the Company’s ceding companies and delegated authority counterparties to accurately assess the risks they underwrite; the effect of operational risks, including system or human failures; the Company’s ability to effectively manage capital on behalf of investors in joint ventures or other entities it manages; foreign currency exchange rate fluctuations; the Company’s ability to raise capital if necessary; the Company’s ability to comply with covenants in its debt agreements; changes to the regulatory systems under which the Company operates, including as a result of increased global regulation of the insurance and reinsurance industries; changes in Bermuda laws and regulations and the political environment in Bermuda; the Company’s dependence on the ability of its operating subsidiaries to declare and pay dividends; aspects of the Company’s corporate structure that may discourage third-party takeovers or other transactions; the cyclical nature of the reinsurance and insurance industries; adverse legislative developments that reduce the size of the private markets the Company serves or impede their future growth; consolidation of competitors, customers and insurance and reinsurance brokers; the effect on the Company’s business of the highly competitive nature of its industry, including the effect of new entrants to, competing products for and consolidation in the (re)insurance industry; other political, regulatory or industry initiatives adversely impacting the Company; the Company’s ability to comply with applicable sanctions and foreign corrupt practices laws; increasing barriers to free trade and the free flow of capital; international restrictions on the writing of reinsurance by foreign companies and government intervention in the natural catastrophe market; the effect of Organisation for Economic Co-operation and Development or European Union (“EU”) measures to increase the Company’s taxes and reporting requirements; the effect of the vote by the U.K. to leave the EU; changes in regulatory regimes and accounting rules that may impact financial results irrespective of business operations; the Company’s need to make many estimates and judgments in the preparation of its financial statements; and other factors affecting future results disclosed in RenaissanceRe’s filings with the Securities and Exchange Commission, including its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.

INVESTOR CONTACT:
MEDIA CONTACT:
Keith McCue
Keil Gunther
Senior Vice President, Finance & Investor Relations
Vice President, Marketing & Communications
RenaissanceRe Holdings Ltd.
RenaissanceRe Holdings Ltd.
(441) 239-4830
(441) 239-4932
 
or
 
Kekst CNC
 
Dawn Dover
 
(212) 521-4800

4



RenaissanceRe Holdings Ltd.
Summary Consolidated Statements of Operations
(in thousands of United States Dollars, except per share amounts and percentages)
(Unaudited)
 
Three months ended
 
March 31,
2019
 
March 31,
2018
Revenues
 
 
 
Gross premiums written
$
1,564,295

 
$
1,159,652

Net premiums written
$
929,031

 
$
663,044

Increase in unearned premiums
(379,003
)
 
(222,762
)
Net premiums earned
550,028

 
440,282

Net investment income
81,462

 
56,476

Net foreign exchange (losses) gains
(2,846
)
 
3,757

Equity in earnings of other ventures
4,661

 
857

Other income (loss)
3,171

 
(1,242
)
Net realized and unrealized gains (losses) on investments
170,645

 
(82,144
)
Total revenues
807,121

 
417,986

Expenses
 
 
 
Net claims and claim expenses incurred
227,035

 
171,703

Acquisition expenses
123,951

 
97,711

Operational expenses
44,933

 
41,272

Corporate expenses
38,789

 
6,733

Interest expense
11,754

 
11,767

Total expenses
446,462

 
329,186

Income before taxes
360,659

 
88,800

Income tax (expense) benefit
(7,531
)
 
3,407

Net income
353,128

 
92,207

Net income attributable to noncontrolling interests
(70,222
)
 
(29,899
)
Net income attributable to RenaissanceRe
282,906

 
62,308

Dividends on preference shares
(9,189
)
 
(5,595
)
Net income available to RenaissanceRe common shareholders
$
273,717

 
$
56,713

 
 
 
 
Net income available to RenaissanceRe common shareholders per common share - basic
$
6.43

 
$
1.42

Net income available to RenaissanceRe common shareholders per common share - diluted
$
6.43

 
$
1.42

Operating income available to RenaissanceRe common shareholders per common share - diluted (1)
$
3.60

 
$
3.07

 
 
 
 
Average shares outstanding - basic
42,065

 
39,552

Average shares outstanding - diluted
42,091

 
39,599

 
 
 
 
Net claims and claim expense ratio
41.3
%
 
39.0
%
Underwriting expense ratio
30.7
%
 
31.6
%
Combined ratio
72.0
%
 
70.6
%
 
 
 
 
Return on average common equity - annualized
23.5
%
 
5.7
%
Operating return on average common equity - annualized (1)
13.3
%
 
12.2
%
(1)
See Comments on Regulation G for a reconciliation of non-GAAP financial measures.

5



RenaissanceRe Holdings Ltd.
Summary Consolidated Balance Sheets
(in thousands of United States Dollars, except per share amounts)
 
 
 
 
 
March 31,
2019
 
December 31,
2018
Assets
(Unaudited)
 
(Audited)
Fixed maturity investments trading, at fair value
$
9,473,160

 
$
8,088,870

Short term investments, at fair value
4,012,815

 
2,586,520

Equity investments trading, at fair value
389,937

 
310,252

Other investments, at fair value
878,373

 
784,933

Investments in other ventures, under equity method
98,563

 
115,172

Total investments
14,852,848

 
11,885,747

Cash and cash equivalents
1,021,275

 
1,107,922

Premiums receivable
2,753,098

 
1,537,188

Prepaid reinsurance premiums
1,086,027

 
616,185

Reinsurance recoverable
2,908,343

 
2,372,221

Accrued investment income
64,615

 
51,311

Deferred acquisition costs and value of business acquired
841,528

 
476,661

Receivable for investments sold
411,172

 
256,416

Other assets
353,543

 
135,127

Goodwill and other intangibles
267,151

 
237,418

Total assets
$
24,559,600

 
$
18,676,196

Liabilities, Noncontrolling Interests and Shareholders’ Equity
 
 
 
Liabilities
 
 
 
Reserve for claims and claim expenses
$
8,391,484

 
$
6,076,271

Unearned premiums
3,188,678

 
1,716,021

Debt
1,191,499

 
991,127

Reinsurance balances payable
3,009,492

 
1,902,056

Payable for investments purchased
679,596

 
380,332

Other liabilities
435,418

 
513,609

Total liabilities
16,896,167

 
11,579,416

Redeemable noncontrolling interest
2,109,400

 
2,051,700

Shareholders’ Equity
 
 
 
Preference shares
650,000

 
650,000

Common shares
44,159

 
42,207

Additional paid-in capital
543,889

 
296,099

Accumulated other comprehensive loss
(1,470
)
 
(1,433
)
Retained earnings
4,317,455

 
4,058,207

Total shareholders’ equity attributable to RenaissanceRe
5,554,033

 
5,045,080

Total liabilities, noncontrolling interests and shareholders’ equity
$
24,559,600

 
$
18,676,196

 
 
 
 
Book value per common share
$
111.05

 
$
104.13




6



RenaissanceRe Holdings Ltd.
Supplemental Financial Data - Segment Information
(in thousands of United States Dollars, except percentages)
(Unaudited)
 
Three months ended March 31, 2019
 
Property
 
Casualty and Specialty
 
Other
 
Total
Gross premiums written
$
1,032,384

 
$
531,911

 
$

 
$
1,564,295

Net premiums written
$
564,230

 
$
364,801

 
$

 
$
929,031

Net premiums earned
$
290,745

 
$
259,283

 
$

 
$
550,028

Net claims and claim expenses incurred
56,083

 
170,933

 
19

 
227,035

Acquisition expenses
53,739

 
70,212

 

 
123,951

Operational expenses
28,544

 
16,389

 

 
44,933

Underwriting income (loss)
$
152,379

 
$
1,749

 
$
(19
)
 
154,109

Net investment income
 
 
 
 
81,462

 
81,462

Net foreign exchange losses
 
 
 
 
(2,846
)
 
(2,846
)
Equity in earnings of other ventures
 
 
 
 
4,661

 
4,661

Other income
 
 
 
 
3,171

 
3,171

Net realized and unrealized gains on investments
 
 
 
 
170,645

 
170,645

Corporate expenses
 
 
 
 
(38,789
)
 
(38,789
)
Interest expense
 
 
 
 
(11,754
)
 
(11,754
)
Income before taxes and redeemable noncontrolling interests
 
 
 
 
 
 
360,659

Income tax expense
 
 
 
 
(7,531
)
 
(7,531
)
Net income attributable to redeemable noncontrolling interests
 
 
 
 
(70,222
)
 
(70,222
)
Dividends on preference shares
 
 
 
 
(9,189
)
 
(9,189
)
Net income available to RenaissanceRe common shareholders
 
 
 
 
 
 
$
273,717

 
 
 
 
 
 
 
 
Net claims and claim expenses incurred – current accident year
$
54,206

 
$
177,135

 
$

 
$
231,341

Net claims and claim expenses incurred – prior accident years
1,877

 
(6,202
)
 
19

 
(4,306
)
Net claims and claim expenses incurred – total
$
56,083

 
$
170,933

 
$
19

 
$
227,035

 
 
 
 
 
 
 
 
Net claims and claim expense ratio – current accident year
18.6
 %
 
68.3
 %
 
 
 
42.1
 %
Net claims and claim expense ratio – prior accident years
0.7
 %
 
(2.4
)%
 
 
 
(0.8
)%
Net claims and claim expense ratio – calendar year
19.3
 %
 
65.9
 %
 
 
 
41.3
 %
Underwriting expense ratio
28.3
 %
 
33.4
 %
 
 
 
30.7
 %
Combined ratio
47.6
 %
 
99.3
 %
 
 
 
72.0
 %
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2018
 
Property
 
Casualty and Specialty
 
Other
 
Total
Gross premiums written
$
706,968

 
$
452,684

 
$

 
$
1,159,652

Net premiums written
$
354,077

 
$
308,967

 
$

 
$
663,044

Net premiums earned
$
225,049

 
$
215,233

 
$

 
$
440,282

Net claims and claim expenses incurred
30,607

 
141,078

 
18

 
171,703

Acquisition expenses
40,721

 
56,990

 

 
97,711

Operational expenses
26,546

 
14,593

 
133

 
41,272

Underwriting income (loss)
$
127,175

 
$
2,572

 
$
(151
)
 
129,596

Net investment income
 
 
 
 
56,476

 
56,476

Net foreign exchange gains
 
 
 
 
3,757

 
3,757

Equity in earnings of other ventures
 
 
 
 
857

 
857

Other loss
 
 
 
 
(1,242
)
 
(1,242
)
Net realized and unrealized losses on investments
 
 
 
 
(82,144
)
 
(82,144
)
Corporate expenses
 
 
 
 
(6,733
)
 
(6,733
)
Interest expense
 
 
 
 
(11,767
)
 
(11,767
)
Income before taxes and redeemable noncontrolling interests
 
 
 
 
 
 
88,800

Income tax benefit
 
 
 
 
3,407

 
3,407

Net income attributable to redeemable noncontrolling interests
 
 
 
 
(29,899
)
 
(29,899
)
Dividends on preference shares
 
 
 
 
(5,595
)
 
(5,595
)
Net income available to RenaissanceRe common shareholders
 
 
 
 
 
 
$
56,713

 
 
 
 
 
 
 
 
Net claims and claim expenses incurred – current accident year
$
58,169

 
$
144,869

 
$

 
$
203,038

Net claims and claim expenses incurred – prior accident years
(27,562
)
 
(3,791
)
 
18

 
(31,335
)
Net claims and claim expenses incurred – total
$
30,607

 
$
141,078

 
$
18

 
$
171,703

 
 
 
 
 
 
 
 
Net claims and claim expense ratio – current accident year
25.8
 %
 
67.3
 %
 
 
 
46.1
 %
Net claims and claim expense ratio – prior accident years
(12.2
)%
 
(1.8
)%
 
 
 
(7.1
)%
Net claims and claim expense ratio – calendar year
13.6
 %
 
65.5
 %
 
 
 
39.0
 %
Underwriting expense ratio
29.9
 %
 
33.3
 %
 
 
 
31.6
 %
Combined ratio
43.5
 %
 
98.8
 %
 
 
 
70.6
 %

7



RenaissanceRe Holdings Ltd.
Supplemental Financial Data - Gross Premiums Written
(in thousands of United States Dollars)
(Unaudited)
 
 
 
Three months ended
 
March 31,
2019
 
March 31,
2018
Property Segment
 
 
 
Catastrophe
$
845,213

 
$
590,337

Other property
187,171

 
116,631

Property segment gross premiums written
$
1,032,384

 
$
706,968

 
 
 
 
Casualty and Specialty Segment
 
 
 
General casualty (1)
$
153,334

 
$
126,626

Professional liability (2)
149,377

 
157,113

Financial lines (3)
127,356

 
93,267

Other (4)
101,844

 
75,678

Casualty and Specialty segment gross premiums written
$
531,911

 
$
452,684

(1)
Includes automobile liability, casualty clash, employer’s liability, umbrella or excess casualty, workers’ compensation and general liability
(2)
Includes directors and officers, medical malpractice, and professional indemnity.
(3)
Includes financial guaranty, mortgage guaranty, political risk, surety and trade credit.
(4)
Includes accident and health, agriculture, aviation, cyber, energy, marine, satellite and terrorism. Lines of business such as regional multi-line and whole account may have characteristics of various other classes of business, and are allocated accordingly.

8



RenaissanceRe Holdings Ltd.
Supplemental Financial Data - Total Investment Result
(in thousands of United States Dollars, except percentages)
(Unaudited)
 
 
 
 
 
Three months ended
 
March 31,
2019
 
March 31,
2018
Fixed maturity investments
$
61,483

 
$
45,643

Short term investments
11,844

 
5,304

Equity investments trading
1,027

 
698

Other investments
 
 
 
Private equity investments
2,454

 
(434
)
Other
7,245

 
8,023

Cash and cash equivalents
1,517

 
565

 
85,570

 
59,799

Investment expenses
(4,108
)
 
(3,323
)
Net investment income
81,462

 
56,476

 
 
 
 
Gross realized gains
24,373

 
4,583

Gross realized losses
(22,943
)
 
(25,853
)
Net realized gains (losses) on fixed maturity investments
1,430

 
(21,270
)
Net unrealized gains (losses) on fixed maturity investments trading
103,922

 
(55,372
)
Net realized and unrealized gains (losses) on investments-related derivatives
13,796

 
(4,364
)
Net realized (losses) gains on equity investments trading
(1,161
)
 
234

Net unrealized gains (losses) on equity investments trading
52,658

 
(1,372
)
Net realized and unrealized gains (losses) on investments
170,645

 
(82,144
)
Total investment result
$
252,107

 
$
(25,668
)
 
 
 
 
Total investment return - annualized (1)
8.0
%
 
(1.0
)%
(1)
Total investment return for the three months ended March 31, 2019 does not include the investment results related to the invested assets of the TMR Group Entities, which were acquired on March 22, 2019.


9



Comments on Regulation G
In addition to the GAAP financial measures set forth in this Press Release, the Company has included certain non-GAAP financial measures within the meaning of Regulation G. The Company has provided these financial measures in previous investor communications and the Company’s management believes that these measures are important to investors and other interested persons, and that investors and such other persons benefit from having a consistent basis for comparison between quarters and for comparison with other companies within the industry. These measures may not, however, be comparable to similarly titled measures used by companies outside of the insurance industry. Investors are cautioned not to place undue reliance on these non-GAAP measures in assessing the Company’s overall financial performance.
The Company uses “operating income available to RenaissanceRe common shareholders” as a measure to evaluate the underlying fundamentals of its operations and believes it to be a useful measure of its corporate performance. “Operating income available to RenaissanceRe common shareholders” as used herein differs from “net income (loss) available (attributable) to RenaissanceRe common shareholders,” which the Company believes is the most directly comparable GAAP measure, by the exclusion of net realized and unrealized gains and losses on investments attributable to RenaissanceRe common shareholders, transaction and integration expenses associated with the acquisition of Tokio Millennium Re and the income tax expense or benefit associated with net realized and unrealized gains and losses on investments attributable to RenaissanceRe common shareholders. The Company’s management believes that “operating income available to RenaissanceRe common shareholders” is useful to investors because it more accurately measures and predicts the Company’s results of operations by removing the variability arising from: fluctuations in the Company’s fixed maturity investment portfolio, equity investments trading and investments-related derivatives and the associated income tax expense or benefit of those fluctuations; and certain transaction and integration expenses associated with the acquisition of Tokio Millennium Re. The Company also uses “operating income available to RenaissanceRe common shareholders” to calculate “operating income available to RenaissanceRe common shareholders per common share - diluted” and “operating return on average common equity - annualized”. The following is a reconciliation of: 1) net income (loss) available (attributable) to RenaissanceRe common shareholders to operating income available to RenaissanceRe common shareholders; 2) net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted to operating income available to RenaissanceRe common shareholders per common share - diluted; and 3) return on average common equity - annualized to operating return on average common equity - annualized:

10



 
Three months ended
(in thousands of United States Dollars, except per share amounts and percentages)
March 31,
2019
 
March 31,
2018
Net income available to RenaissanceRe common shareholders
$
273,717

 
$
56,713

Adjustment for net realized and unrealized (gains) losses on investments attributable to RenaissanceRe common shareholders (1)
(153,164
)
 
69,028

Adjustment for transaction and integration expenses associated with the acquisition of Tokio Millennium Re (2)
25,520

 

Adjustment for income tax expense (benefit) (3)
8,287

 
(3,648
)
Operating income available to RenaissanceRe common shareholders
$
154,360

 
$
122,093

 
 
 
 
Net income available to RenaissanceRe common shareholders per common share - diluted
$
6.43

 
$
1.42

Adjustment for net realized and unrealized (gains) losses on investments attributable to RenaissanceRe common shareholders (1)
(3.64
)
 
1.74

Adjustment for transaction and integration expenses associated with the acquisition of Tokio Millennium Re (2)
0.61

 

Adjustment for income tax expense (benefit) (3)
0.20

 
(0.09
)
Operating income available to RenaissanceRe common shareholders per common share - diluted
$
3.60

 
$
3.07

 
 
 
 
Return on average common equity - annualized
23.5
 %
 
5.7
 %
Adjustment for net realized and unrealized (gains) losses on investments attributable to RenaissanceRe common shareholders (1)
(13.2
)%
 
6.9
 %
Adjustment for transaction and integration expenses associated with the acquisition of Tokio Millennium Re (2)
2.2
 %
 
 %
Adjustment for income tax expense (benefit) (3)
0.8
 %
 
(0.4
)%
Operating return on average common equity - annualized
13.3
 %
 
12.2
 %
(1)
Adjustment for net realized and unrealized (gains) losses on investments attributable to RenaissanceRe common shareholders represents: net realized and unrealized gains (losses) on investments as set forth in the Company's consolidated statement of operations less net realized and unrealized gains (losses) attributable to redeemable noncontrolling interests, which is included in net income attributable to redeemable noncontrolling interests in the Company's consolidated statement of operations. Comparative information for all prior periods has been updated to conform to the current methodology and presentation.
(2)
Adjustment for transaction and integration expenses associated with the acquisition of Tokio Millennium Re for the three months ended March 31, 2019 represents $25.5 million of corporate expenses associated with the acquisition, comprised of $12.9 million of transaction-related costs, $5.9 million of integration-related costs, and $6.7 million of compensation-related costs. Comparative information for all prior periods has been updated to conform to the current methodology and presentation.
(3)
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 attributable to RenaissanceRe common shareholders. The income tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors.

11



The Company has included in this Press Release “tangible book value per common share” and “tangible book value per common share plus accumulated dividends”. “Tangible book value per common share” is defined as book value per common share excluding goodwill and intangible assets per share. “Tangible book value per common share plus accumulated dividends” is defined as book value per common share excluding goodwill and intangible assets per share, plus accumulated dividends. The Company’s management believes “tangible book value per common share” and “tangible book value per common share plus accumulated dividends” are useful to investors because they provide a more accurate measure of the realizable value of shareholder returns, excluding the impact of goodwill and intangible assets. The following is a reconciliation of book value per common share to tangible book value per common share and tangible book value per common share plus accumulated dividends:
 
At
 
March 31,
2019
 
December 31,
2018
 
September 30,
2018
 
June 30,
2018
 
March 31,
2018
Book value per common share
$
111.05

 
$
104.13

 
$
105.21

 
$
104.56

 
$
100.29

Adjustment for goodwill and other intangibles (1) (2)
(6.66
)
 
(6.28
)
 
(6.63
)
 
(6.69
)
 
(6.66
)
Tangible book value per common share
104.39

 
97.85

 
98.58

 
97.87

 
93.63

Adjustment for accumulated dividends
19.66

 
19.32

 
18.99

 
18.66

 
18.33

Tangible book value per common share plus accumulated dividends
$
124.05

 
$
117.17

 
$
117.57

 
$
116.53

 
$
111.96

 
 
 
 
 
 
 
 
 
 
Quarterly change in book value per common share
6.6
%
 
(1.0
)%
 
0.6
%
 
4.3
%
 
0.6
%
Quarterly change in tangible book value per common share plus change in accumulated dividends
7.0
%
 
(0.4
)%
 
1.1
%
 
4.9
%
 
0.8
%
Year to date change in book value per common share
6.6
%
 
4.4
 %
 
5.5
%
 
4.9
%
 
0.6
%
Year to date change in tangible book value per common share plus change in accumulated dividends
7.0
%
 
6.4
 %
 
6.8
%
 
5.7
%
 
0.8
%
(1)
At March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018, goodwill and other intangibles included $27.0 million, $27.7 million, $28.4 million, $29.1 million and $26.3 million, respectively, of goodwill and other intangibles included in investments in other ventures, under equity method.
(2)
At March 31, 2019, goodwill and other intangibles included $18.0 million of identifiable intangible assets and $13.1 million of goodwill, respectively, recognized by the Company in connection with the acquisition of the TMR Group Entities on March 22, 2019.


12
Exhibit


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RenaissanceRe Holdings Ltd.
Contents

 
 
 
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.
Investment Portfolio - Fixed Maturity Investments
 
 
c.
Summary of Other Investments
 
 
d.
Total Investment Result
 
 
e.
Investment Portfolio - Weighted Average Yield to Maturity and Credit Rating
 
 
 
 
 
 
 
Loss Reserve Analysis
 
 
 
a.
Reserves for Claims and Claim Expenses
 
 
b.
Paid to Incurred Analysis
 
 
 
 
 
 
 
Other Items
 
 
 
a.
Fee Income
 
 
b.
Earnings per Share
 
 
c.
Equity in Earnings of Other Ventures
 
 
d.
Other Income (Loss)
 
 
e.
Ratings
 
 
 
 
 
 
 
Supplemental Information
 
 
 
a.
Gross Premiums Written
 
 
b.
Property Segment Supplemental Underwriting Results
 
 
 
 
 
 
 
Comments on Regulation G
 
 

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RenaissanceRe Holdings Ltd.
Basis of Presentation
RenaissanceRe Holdings Ltd. (the "Company" or "RenaissanceRe") is a global provider of reinsurance and insurance. The Company provides property, casualty and specialty reinsurance and certain insurance solutions to customers, principally through intermediaries. Established in 1993, the Company has offices in Bermuda, Australia, Ireland, Singapore, Switzerland, the United Kingdom and the United States.
On March 22, 2019, the Company's wholly owned subsidiary RenaissanceRe Specialty Holdings (UK) Limited completed its previously announced purchase of all the share capital of Tokio Millennium Re AG (now known as RenaissanceRe Europe AG), Tokio Millennium Re (UK) Limited (now known as RenaissanceRe (UK) Limited) and their subsidiaries (collectively, the “TMR Group Entities”) (the “TMR Stock Purchase”). The Company accounted for the acquisition of the TMR Group Entities under the acquisition method of accounting in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic Business Combinations. The operating activities of the TMR Group Entities from the acquisition date, March 22, 2019, through March 31, 2019 were not material and as a result were not included in the Company’s consolidated statements of operations for the first quarter of 2019. As at March 31, 2019, the Company’s consolidated balance sheet reflects the combined entities.
This financial supplement includes certain non-GAAP financial measures including “operating income available to RenaissanceRe common shareholders”, “operating income available to RenaissanceRe common shareholders per common share - diluted”, “operating return on average common equity - annualized”, “tangible book value per common share”, “tangible book value per common share plus accumulated dividends", "retained fixed maturity and short term investments, at fair value" and “managed catastrophe premium.” A reconciliation of such measures to the most comparable GAAP figures in accordance with Regulation G is presented in the attached supplemental financial data. See pages 20 through 24 for Comments on Regulation G.
Cautionary Statement under “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995: Statements made in this financial supplement contain information about the Company's future business prospects. These statements may be considered “forward-looking.” These statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements. For further information regarding cautionary statements and factors affecting future results, please refer to RenaissanceRe Holdings Ltd.'s filings with the U.S. Securities and Exchange Commission, including its Annual Reports on Form 10-K and its Quarterly Reports on Form 10-Q.
All information contained herein is unaudited. Unless otherwise noted, dollar amounts are in thousands, except for share and per share amounts and ratio information. Certain prior period comparatives have been reclassified to conform to the current presentation. This supplement is being provided for informational purposes only. It should be read in conjunction with documents filed by RenaissanceRe with the U.S. Securities and Exchange Commission, including its Annual Reports on Form 10-K and its Quarterly Reports on Form 10-Q. Please refer to the Company's website at www.renre.com for further information about RenaissanceRe.

 
i
 



RenaissanceRe Holdings Ltd.
Financial Highlights
 
Three months ended
 
March 31,
2019
 
December 31,
2018
 
September 30,
2018
 
June 30,
2018
 
March 31,
2018
Highlights
 
 
 
 
 
 
 
 
 
Gross premiums written
$
1,564,295

 
$
547,755

 
$
625,677

 
$
977,343

 
$
1,159,652

Net premiums written
$
929,031

 
$
411,094

 
$
453,255

 
$
604,509

 
$
663,044

Net premiums earned
$
550,028

 
$
574,613

 
$
531,849

 
$
429,385

 
$
440,282

Net claims and claim expenses incurred
227,035

 
477,638

 
410,510

 
60,167

 
171,703

Acquisition expenses
123,951

 
120,465

 
109,761

 
105,052

 
97,711

Operating expenses
44,933

 
58,859

 
40,593

 
37,543

 
41,272

Underwriting income (loss)
$
154,109

 
$
(82,349
)
 
$
(29,015
)
 
$
226,623

 
$
129,596

 
 
 
 
 
 
 
 
 
 
Net investment income
$
81,462

 
$
53,338

 
$
80,696

 
$
71,356

 
$
56,476

Net realized and unrealized gains (losses) on investments
170,645

 
(88,654
)
 
13,630

 
(17,901
)
 
(82,144
)
Total investment result
$
252,107

 
$
(35,316
)
 
$
94,326

 
$
53,455

 
$
(25,668
)
 
 
 
 
 
 
 
 
 
 
Net income (loss) available (attributable) to RenaissanceRe common shareholders
$
273,717

 
$
(83,906
)
 
$
32,681

 
$
191,788

 
$
56,713

Operating income available to RenaissanceRe common shareholders (1)
$
154,360

 
$
4,797

 
$
17,846

 
$
204,292

 
$
122,093

 
 
 
 
 
 
 
 
 
 
Total assets
$
24,559,600

 
$
18,676,196

 
$
17,096,394

 
$
17,023,378

 
$
15,922,202

Total shareholders' equity attributable to RenaissanceRe
$
5,554,033

 
$
5,045,080

 
$
4,886,521

 
$
4,860,061

 
$
4,436,253

 
 
 
 
 
 
 
 
 
 
Per share data
 
 
 
 
 
 
 
 
 
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted
$
6.43

 
$
(2.10
)
 
$
0.82

 
$
4.78

 
$
1.42

Operating income available to RenaissanceRe common shareholders per common share - diluted (1)
$
3.60

 
$
0.11

 
$
0.45

 
$
5.10

 
$
3.07

Dividends per common share
$
0.34

 
$
0.33

 
$
0.33

 
$
0.33

 
$
0.33

Book value per common share
$
111.05

 
$
104.13

 
$
105.21

 
$
104.56

 
$
100.29

Tangible book value per common share (1)
$
104.39

 
$
97.85

 
$
98.58

 
$
97.87

 
$
93.63

Tangible book value per common share plus accumulated dividends (1)
$
124.05

 
$
117.17

 
$
117.57

 
$
116.53

 
$
111.96

Change in tangible book value per common share plus change in accumulated dividends (1)
7.0
 %
 
(0.4
)%
 
1.1
 %
 
4.9
 %
 
0.8
 %
 
 
 
 
 
 
 
 
 
 
Financial ratios
 
 
 
 
 
 
 
 
 
 Net claims and claim expense ratio - current accident year
42.1
 %
 
96.0
 %
 
79.0
 %
 
50.4
 %
 
46.1
 %
 Net claims and claim expense ratio - prior accident years
(0.8
)%
 
(12.9
)%
 
(1.8
)%
 
(36.4
)%
 
(7.1
)%
 Net claims and claim expense ratio - calendar year
41.3
 %
 
83.1
 %
 
77.2
 %
 
14.0
 %
 
39.0
 %
 Underwriting expense ratio
30.7
 %
 
31.2
 %
 
28.3
 %
 
33.2
 %
 
31.6
 %
 Combined ratio
72.0
 %
 
114.3
 %
 
105.5
 %
 
47.2
 %
 
70.6
 %
 Return on average common equity - annualized
23.5
 %
 
(7.8
)%
 
3.1
 %
 
18.6
 %
 
5.7
 %
 Operating return on average common equity - annualized (1)
13.3
 %
 
0.4
 %
 
1.7
 %
 
19.8
 %
 
12.2
 %
 Total investment return - annualized
8.0
 %
 
(1.2
)%
 
3.3
 %
 
2.0
 %
 
(1.0
)%
(1)
See Comments on Regulation G for a reconciliation of non-GAAP financial measures.

                 
 
1
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RenaissanceRe Holdings Ltd.
Summary Consolidated Statements of Operations
 
 
 
Three months ended
 
March 31,
2019
 
December 31,
2018
 
September 30,
2018
 
June 30,
2018
 
March 31,
2018
Revenues
 
 
 
 
 
 
 
 
 
Gross premiums written
$
1,564,295

 
$
547,755

 
$
625,677

 
$
977,343

 
$
1,159,652

Net premiums written
$
929,031

 
$
411,094

 
$
453,255

 
$
604,509

 
$
663,044

(Increase) decrease in unearned premiums
(379,003
)
 
163,519

 
78,594

 
(175,124
)
 
(222,762
)
Net premiums earned
550,028

 
574,613

 
531,849

 
429,385

 
440,282

Net investment income
81,462

 
53,338

 
80,696

 
71,356

 
56,476

Net foreign exchange (losses) gains
(2,846
)
 
(932
)
 
(4,566
)
 
(10,687
)
 
3,757

Equity in earnings of other ventures
4,661

 
4,143

 
7,648

 
5,826

 
857

Other income (loss)
3,171

 
5,489

 
497

 
1,225

 
(1,242
)
Net realized and unrealized gains (losses) on investments
170,645

 
(88,654
)
 
13,630

 
(17,901
)
 
(82,144
)
Total revenues
807,121

 
547,997

 
629,754

 
479,204

 
417,986

Expenses
 
 
 
 
 
 
 
 
 
Net claims and claim expenses incurred
227,035

 
477,638

 
410,510

 
60,167

 
171,703

Acquisition expenses
123,951

 
120,465

 
109,761

 
105,052

 
97,711

Operational expenses
44,933

 
58,859

 
40,593

 
37,543

 
41,272

Corporate expenses
38,789

 
12,108

 
6,841

 
8,301

 
6,733

Interest expense
11,754

 
11,765

 
11,769

 
11,768

 
11,767

Total expenses
446,462

 
680,835

 
579,474

 
222,831

 
329,186

Income (loss) before taxes
360,659

 
(132,838
)
 
50,280

 
256,373

 
88,800

Income tax (expense) benefit
(7,531
)
 
8,852

 
(1,451
)
 
(4,506
)
 
3,407

Net income (loss)
353,128

 
(123,986
)
 
48,829

 
251,867

 
92,207

Net (income) loss attributable to noncontrolling interests
(70,222
)
 
49,269

 
(6,440
)
 
(54,483
)
 
(29,899
)
Net income (loss) attributable to RenaissanceRe
282,906

 
(74,717
)
 
42,389

 
197,384

 
62,308

Dividends on preference shares
(9,189
)
 
(9,189
)
 
(9,708
)
 
(5,596
)
 
(5,595
)
Net income (loss) available (attributable) to RenaissanceRe common shareholders
$
273,717

 
$
(83,906
)
 
$
32,681

 
$
191,788

 
$
56,713

 
 
 
 
 
 
 
 
 
 
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - basic
$
6.43

 
$
(2.10
)
 
$
0.82

 
$
4.78

 
$
1.42

Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted
$
6.43

 
$
(2.10
)
 
$
0.82

 
$
4.78

 
$
1.42

Operating income available to RenaissanceRe common shareholders per common share - diluted (1)
$
3.60

 
$
0.11

 
$
0.45

 
$
5.10

 
$
3.07

 
 
 
 
 
 
 
 
 
 
Return on average common equity - annualized
23.5
%
 
(7.8
)%
 
3.1
%
 
18.6
%
 
5.7
%
Operating return on average common equity - annualized (1)
13.3
%
 
0.4
 %
 
1.7
%
 
19.8
%
 
12.2
%
(1)
See Comments on Regulation G for a reconciliation of non-GAAP financial measures.

                 
 
2
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RenaissanceRe Holdings Ltd.
Consolidated Segment Underwriting Results
 
 
 
 
 
Three months ended March 31, 2019
 
Property
 
Casualty and Specialty
 
Other
 
Total
Gross premiums written
$
1,032,384

 
$
531,911

 
$

 
$
1,564,295

Net premiums written
$
564,230

 
$
364,801

 
$

 
$
929,031

Net premiums earned
$
290,745

 
$
259,283

 
$

 
$
550,028

Net claims and claim expenses incurred
56,083

 
170,933

 
19

 
227,035

Acquisition expenses
53,739

 
70,212

 

 
123,951

Operational expenses
28,544

 
16,389

 

 
44,933

Underwriting income (loss)
$
152,379

 
$
1,749

 
$
(19
)
 
$
154,109

 
 
 
 
 
 
 
 
Net claims and claim expenses incurred - current accident year
$
54,206

 
$
177,135

 
$

 
$
231,341

Net claims and claim expenses incurred - prior accident years
1,877

 
(6,202
)
 
19

 
(4,306
)
Net claims and claim expenses incurred - total
$
56,083

 
$
170,933

 
$
19

 
$
227,035

 
 
 
 
 
 
 
 
Net claims and claim expense ratio - current accident year
18.6
 %
 
68.3
 %
 
 
 
42.1
 %
Net claims and claim expense ratio - prior accident years
0.7
 %
 
(2.4
)%
 
 
 
(0.8
)%
Net claims and claim expense ratio - calendar year
19.3
 %
 
65.9
 %
 
 
 
41.3
 %
Underwriting expense ratio
28.3
 %
 
33.4
 %
 
 
 
30.7
 %
Combined ratio
47.6
 %
 
99.3
 %
 
 
 
72.0
 %
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2018
 
Property
 
Casualty and Specialty
 
Other
 
Total
Gross premiums written
$
706,968

 
$
452,684

 
$

 
$
1,159,652

Net premiums written
$
354,077

 
$
308,967

 
$

 
$
663,044

Net premiums earned
$
225,049

 
$
215,233

 
$

 
$
440,282

Net claims and claim expenses incurred
30,607

 
141,078

 
18

 
171,703

Acquisition expenses
40,721

 
56,990

 

 
97,711

Operational expenses
26,546

 
14,593

 
133

 
41,272

Underwriting income (loss)
$
127,175

 
$
2,572

 
$
(151
)
 
$
129,596

 
 
 
 
 
 
 
 
Net claims and claim expenses incurred - current accident year
$
58,169

 
$
144,869

 
$

 
$
203,038

Net claims and claim expenses incurred - prior accident years
(27,562
)
 
(3,791
)
 
18

 
(31,335
)
Net claims and claim expenses incurred - total
$
30,607

 
$
141,078

 
$
18

 
$
171,703

 
 
 
 
 
 
 
 
Net claims and claim expense ratio - current accident year
25.8
 %
 
67.3
 %
 
 
 
46.1
 %
Net claims and claim expense ratio - prior accident years
(12.2
)%
 
(1.8
)%
 
 
 
(7.1
)%
Net claims and claim expense ratio - calendar year
13.6
 %
 
65.5
 %
 
 
 
39.0
 %
Underwriting expense ratio
29.9
 %
 
33.3
 %
 
 
 
31.6
 %
Combined ratio
43.5
 %
 
98.8
 %
 
 
 
70.6
 %


                 
 
3
https://cdn.kscope.io/a0a7581fe6798b8565eaed9f1f0b8f5e-renaissanceresmalla18.jpg



RenaissanceRe Holdings Ltd.
Segment Underwriting Results
 
 
 
 
 
 
 
Three months ended
Property Segment
March 31,
2019
 
December 31,
2018
 
September 30,
2018
 
June 30,
2018
 
March 31,
2018
Gross premiums written
$
1,032,384

 
$
199,918

 
$
301,413

 
$
552,627

 
$
706,968

Net premiums written
$
564,230

 
$
170,647

 
$
232,632

 
$
297,832

 
$
354,077

Net premiums earned
$
290,745

 
$
328,585

 
$
293,059

 
$
204,138

 
$
225,049

Net claims and claim expenses incurred
56,083

 
275,700

 
265,857

 
(74,269
)
 
30,607

Acquisition expenses
53,739

 
50,817

 
45,524

 
40,850

 
40,721

Operational expenses
28,544

 
37,021

 
25,577

 
23,810

 
26,546

Underwriting income (loss)
$
152,379

 
$
(34,953
)
 
$
(43,899
)
 
$
213,747

 
$
127,175

 
 
 
 
 
 
 
 
 
 
Net claims and claim expenses incurred - current accident year
$
54,206

 
$
324,118

 
$
268,022

 
$
68,876

 
$
58,169

Net claims and claim expenses incurred - prior accident years
1,877

 
(48,418
)
 
(2,165
)
 
(143,145
)
 
(27,562
)
Net claims and claim expenses incurred - total
$
56,083

 
$
275,700

 
$
265,857

 
$
(74,269
)
 
$
30,607

 
 
 
 
 
 
 
 
 
 
Net claims and claim expense ratio - current accident year
18.6
 %
 
98.6
 %
 
91.5
 %
 
33.7
 %
 
25.8
 %
Net claims and claim expense ratio - prior accident years
0.7
 %
 
(14.7
)%
 
(0.8
)%
 
(70.1
)%
 
(12.2
)%
Net claims and claim expense ratio - calendar year
19.3
 %
 
83.9
 %
 
90.7
 %
 
(36.4
)%
 
13.6
 %
Underwriting expense ratio
28.3
 %
 
26.7
 %
 
24.3
 %
 
31.7
 %
 
29.9
 %
Combined ratio
47.6
 %
 
110.6
 %
 
115.0
 %
 
(4.7
)%
 
43.5
 %
 
 
 
 
 
 
 
 
 
 
 
Three months ended
Casualty and Specialty Segment
March 31,
2019
 
December 31,
2018
 
September 30,
2018
 
June 30,
2018
 
March 31,
2018
Gross premiums written
$
531,911

 
$
347,837

 
$
324,264

 
$
424,716

 
$
452,684

Net premiums written
$
364,801

 
$
240,447

 
$
220,623

 
$
306,677

 
$
308,967

Net premiums earned
$
259,283

 
$
246,027

 
$
238,791

 
$
225,247

 
$
215,233

Net claims and claim expenses incurred
170,933

 
202,047

 
144,671

 
134,524

 
141,078

Acquisition expenses
70,212

 
69,650