(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading symbol | Name of each exchange on which registered |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
99.1* |
99.2* |
101 | Pursuant to Rule 406 of Regulation S-T, the cover page information is formatted in Inline XBRL. |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101). |
RENAISSANCERE HOLDINGS LTD. | ||||
Date: | By: | /s/ Robert Qutub | ||
May 6, 2020 | Robert Qutub | |||
Executive Vice President and Chief Financial Officer |
• | Gross premiums written increased by $461.4 million, or 29.5%, to $2.0 billion, in the first quarter of 2020 compared to the first quarter of 2019, driven by an increase of $273.3 million in the Casualty and Specialty segment and an increase of $188.1 million in the Property segment. |
• | Underwriting income of $64.1 million and a combined ratio of 93.0% in the first quarter of 2020, compared to underwriting income of $154.1 million and a combined ratio of 72.0% in the first quarter of 2019. The Property segment generated underwriting income of $147.1 million and had a combined ratio of 65.1% in the first quarter of 2020. The Casualty and Specialty segment incurred an underwriting loss of $83.2 million and had a combined ratio of 116.9% in the first quarter of 2020, principally impacted by net claims and claim expenses associated with the COVID-19 pandemic of $103.8 million, which added 21.1 percentage points to the combined ratio. The losses primarily represent the cost of claims incurred but not yet reported, with respect to exposures such as event contingency and event-based casualty covers. |
• | Total investment result was a loss of $11.2 million in the first quarter of 2020, generating an annualized total investment return of negative 0.1%, compared to a gain of $252.1 million and an annualized total investment return of 8.0% in the first quarter of 2019. The Company was favorably positioned during the recent disruption in global financial markets associated with the COVID-19 pandemic as a significant portion of the Company’s investment portfolio is weighted towards high-quality fixed maturity investments. The primary driver of the investment result was the Company’s net realized and unrealized losses on equity investments trading, which represents 2.0% of the Company’s total investment portfolio of $17.8 billion. |
• | Approximately $600 million of net capital raised in the first quarter of 2020 through the Company’s managed joint ventures and third-party capital vehicles, including Upsilon RFO Re Ltd. and RenaissanceRe Medici Fund Ltd. |
• | The Company’s total investment result, which includes the sum of net investment income and net realized and unrealized (losses) gains on investments, was a loss of $11.2 million in the first quarter of 2020, compared to a gain of $252.1 million in the first quarter of 2019, a decrease of $263.3 million. The primary driver of the decrease in the total investment result was net realized and unrealized losses on equity investments trading, combined with net realized and unrealized losses on other investments and lower net realized and unrealized gains on fixed maturity investments, due in part to the recent disruption in global financial markets associated with the COVID-19 pandemic, partially offset by higher returns on investments-related derivatives. |
• | Net income attributable to redeemable noncontrolling interests in the first quarter of 2020 was $98.1 million, compared to $70.2 million in the first quarter of 2019. The result was primarily driven by DaVinciRe Holdings Ltd. and Vermeer Reinsurance Ltd. generating net income of $108.0 million and $17.9 million, respectively, in the first quarter of 2020, compared to $80.3 million and $5.2 million, respectively, in the first quarter of 2019. |
• | In the first quarter of 2020, total fee income increased by $16.6 million, to $45.4 million, compared to $28.8 million in the first quarter of 2019, primarily driven by an increase in the dollar value of capital being managed combined with improved underlying performance. |
• | During the first quarter of 2020, the Company repurchased 406 thousand common shares in open market transactions at an aggregate cost of $62.6 million and an average price of $154.36 per common share. |
• | In February 2020, the Company announced the redemption of all 5 million of its outstanding Series C 6.08% Preference Shares. The Series C 6.08% Preference Shares were redeemed on March 26, 2020 for $125.0 million plus accrued and unpaid dividends thereon. Following the redemption, no Series C 6.08% Preference Shares remain outstanding. |
• | On February 4, 2020, the Company’s wholly-owned subsidiary, RenaissanceRe Specialty Holdings (UK) Limited, entered into an agreement to sell its wholly owned subsidiary, RenaissanceRe (UK) Limited, a UK run-off company acquired in connection with the acquisition of TMR, to an investment vehicle managed by AXA Liabilities Managers, an affiliate of AXA XL. The sale is subject to regulatory approval and is expected to close in 2020. |
• | On March 15, 2020, the Company repaid in full at maturity the aggregate principal amount of $250.0 million, plus applicable accrued interest, of its 5.75% Senior Notes due 2020 of RenRe North America Holdings Inc. and RenaissanceRe Finance. |
INVESTOR CONTACT: | MEDIA CONTACT: |
Keith McCue | Keil Gunther |
Senior Vice President, Finance & Investor Relations | Vice President, Head of Global Marketing & Client |
RenaissanceRe Holdings Ltd. | Communication |
(441) 239-4830 | RenaissanceRe Holdings Ltd. |
(441) 239-4932 | |
or | |
Kekst CNC | |
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 | |||||||
March 31, 2020 | March 31, 2019 | ||||||
Revenues | |||||||
Gross premiums written | $ | 2,025,721 | $ | 1,564,295 | |||
Net premiums written | $ | 1,269,808 | $ | 929,031 | |||
Increase in unearned premiums | (356,710 | ) | (379,003 | ) | |||
Net premiums earned | 913,098 | 550,028 | |||||
Net investment income | 99,473 | 82,094 | |||||
Net foreign exchange losses | (5,728 | ) | (2,846 | ) | |||
Equity in earnings of other ventures | 4,564 | 4,661 | |||||
Other (loss) income | (4,436 | ) | 3,171 | ||||
Net realized and unrealized (losses) gains on investments | (110,707 | ) | 170,013 | ||||
Total revenues | 896,264 | 807,121 | |||||
Expenses | |||||||
Net claims and claim expenses incurred | 570,954 | 227,035 | |||||
Acquisition expenses | 210,604 | 123,951 | |||||
Operational expenses | 67,461 | 44,933 | |||||
Corporate expenses | 15,991 | 38,789 | |||||
Interest expense | 14,927 | 11,754 | |||||
Total expenses | 879,937 | 446,462 | |||||
Income before taxes | 16,327 | 360,659 | |||||
Income tax benefit (expense) | 8,846 | (7,531 | ) | ||||
Net income | 25,173 | 353,128 | |||||
Net income attributable to noncontrolling interests | (98,091 | ) | (70,222 | ) | |||
Net (loss) income attributable to RenaissanceRe | (72,918 | ) | 282,906 | ||||
Dividends on preference shares | (9,056 | ) | (9,189 | ) | |||
Net (loss) income (attributable) available to RenaissanceRe common shareholders | $ | (81,974 | ) | $ | 273,717 | ||
Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share - basic | $ | (1.89 | ) | $ | 6.43 | ||
Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share - diluted | $ | (1.89 | ) | $ | 6.43 | ||
Operating income available to RenaissanceRe common shareholders per common share - diluted (1) | $ | 0.76 | $ | 3.59 | |||
Average shares outstanding - basic | 43,441 | 42,065 | |||||
Average shares outstanding - diluted | 43,441 | 42,091 | |||||
Net claims and claim expense ratio | 62.5 | % | 41.3 | % | |||
Underwriting expense ratio | 30.5 | % | 30.7 | % | |||
Combined ratio | 93.0 | % | 72.0 | % | |||
Return on average common equity - annualized | (6.3 | )% | 23.5 | % | |||
Operating return on average common equity - annualized (1) | 2.6 | % | 13.1 | % |
(1) | See Comments on Regulation G for a reconciliation of non-GAAP financial measures. |
RenaissanceRe Holdings Ltd. | |||||||
Summary Consolidated Balance Sheets | |||||||
(in thousands of United States Dollars, except per share amounts) | |||||||
March 31, 2020 | December 31, 2019 | ||||||
Assets | (Unaudited) | (Audited) | |||||
Fixed maturity investments trading, at fair value | $ | 11,045,801 | $ | 11,171,655 | |||
Short term investments, at fair value | 5,263,242 | 4,566,277 | |||||
Equity investments trading, at fair value | 360,444 | 436,931 | |||||
Other investments, at fair value | 1,058,714 | 1,087,377 | |||||
Investments in other ventures, under equity method | 90,396 | 106,549 | |||||
Total investments | 17,818,597 | 17,368,789 | |||||
Cash and cash equivalents | 896,216 | 1,379,068 | |||||
Premiums receivable | 3,105,441 | 2,599,896 | |||||
Prepaid reinsurance premiums | 1,151,926 | 767,781 | |||||
Reinsurance recoverable | 2,765,583 | 2,791,297 | |||||
Accrued investment income | 73,496 | 72,461 | |||||
Deferred acquisition costs and value of business acquired | 739,875 | 663,991 | |||||
Receivable for investments sold | 341,786 | 78,369 | |||||
Other assets | 312,523 | 346,216 | |||||
Goodwill and other intangibles | 260,076 | 262,226 | |||||
Total assets | $ | 27,465,519 | $ | 26,330,094 | |||
Liabilities, Noncontrolling Interests and Shareholders’ Equity | |||||||
Liabilities | |||||||
Reserve for claims and claim expenses | $ | 9,406,707 | $ | 9,384,349 | |||
Unearned premiums | 3,245,914 | 2,530,975 | |||||
Debt | 1,134,695 | 1,384,105 | |||||
Reinsurance balances payable | 3,775,375 | 2,830,691 | |||||
Payable for investments purchased | 636,136 | 225,275 | |||||
Other liabilities | 351,320 | 932,024 | |||||
Total liabilities | 18,550,147 | 17,287,419 | |||||
Redeemable noncontrolling interest | 3,231,846 | 3,071,308 | |||||
Shareholders’ Equity | |||||||
Preference shares | 525,000 | 650,000 | |||||
Common shares | 44,034 | 44,148 | |||||
Additional paid-in capital | 502,608 | 568,277 | |||||
Accumulated other comprehensive loss | (1,664 | ) | (1,939 | ) | |||
Retained earnings | 4,613,548 | 4,710,881 | |||||
Total shareholders’ equity attributable to RenaissanceRe | 5,683,526 | 5,971,367 | |||||
Total liabilities, noncontrolling interests and shareholders’ equity | $ | 27,465,519 | $ | 26,330,094 | |||
Book value per common share | $ | 117.15 | $ | 120.53 |
RenaissanceRe Holdings Ltd. | |||||||||||||||
Supplemental Financial Data - Segment Information | |||||||||||||||
(in thousands of United States Dollars, except percentages) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended March 31, 2020 | |||||||||||||||
Property | Casualty and Specialty | Other | Total | ||||||||||||
Gross premiums written | $ | 1,220,526 | $ | 805,195 | $ | — | $ | 2,025,721 | |||||||
Net premiums written | $ | 674,581 | $ | 595,227 | $ | — | $ | 1,269,808 | |||||||
Net premiums earned | $ | 421,335 | $ | 491,763 | $ | — | $ | 913,098 | |||||||
Net claims and claim expenses incurred | 144,852 | 426,209 | (107 | ) | 570,954 | ||||||||||
Acquisition expenses | 85,351 | 125,253 | — | 210,604 | |||||||||||
Operational expenses | 44,007 | 23,454 | — | 67,461 | |||||||||||
Underwriting income (loss) | $ | 147,125 | $ | (83,153 | ) | $ | 107 | 64,079 | |||||||
Net investment income | 99,473 | 99,473 | |||||||||||||
Net foreign exchange losses | (5,728 | ) | (5,728 | ) | |||||||||||
Equity in earnings of other ventures | 4,564 | 4,564 | |||||||||||||
Other loss | (4,436 | ) | (4,436 | ) | |||||||||||
Net realized and unrealized losses on investments | (110,707 | ) | (110,707 | ) | |||||||||||
Corporate expenses | (15,991 | ) | (15,991 | ) | |||||||||||
Interest expense | (14,927 | ) | (14,927 | ) | |||||||||||
Income before taxes and redeemable noncontrolling interests | 16,327 | ||||||||||||||
Income tax benefit | 8,846 | 8,846 | |||||||||||||
Net income attributable to redeemable noncontrolling interests | (98,091 | ) | (98,091 | ) | |||||||||||
Dividends on preference shares | (9,056 | ) | (9,056 | ) | |||||||||||
Net loss attributable to RenaissanceRe common shareholders | $ | (81,974 | ) | ||||||||||||
Net claims and claim expenses incurred – current accident year | $ | 130,844 | $ | 426,210 | $ | — | $ | 557,054 | |||||||
Net claims and claim expenses incurred – prior accident years | 14,008 | (1 | ) | (107 | ) | 13,900 | |||||||||
Net claims and claim expenses incurred – total | $ | 144,852 | $ | 426,209 | $ | (107 | ) | $ | 570,954 | ||||||
Net claims and claim expense ratio – current accident year | 31.1 | % | 86.7 | % | 61.0 | % | |||||||||
Net claims and claim expense ratio – prior accident years | 3.3 | % | — | % | 1.5 | % | |||||||||
Net claims and claim expense ratio – calendar year | 34.4 | % | 86.7 | % | 62.5 | % | |||||||||
Underwriting expense ratio | 30.7 | % | 30.2 | % | 30.5 | % | |||||||||
Combined ratio | 65.1 | % | 116.9 | % | 93.0 | % | |||||||||
Three months ended 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 | 82,094 | 82,094 | |||||||||||||
Net foreign exchange losses | (2,846 | ) | (2,846 | ) | |||||||||||
Equity in earnings of other ventures | 4,661 | 4,661 | |||||||||||||
Other income | 3,171 | 3,171 | |||||||||||||
Net realized and unrealized gains on investments | 170,013 | 170,013 | |||||||||||||
Corporate expenses | (38,789 | ) | (38,789 | ) | |||||||||||
Interest expense | (11,754 | ) | (11,754 | ) | |||||||||||
Income before taxes and redeemable noncontrolling interests | 360,659 | ||||||||||||||
Income tax expense | (7,531 | ) | (7,531 | ) | |||||||||||
Net income attributable to redeemable noncontrolling interests | (70,222 | ) | (70,222 | ) | |||||||||||
Dividends on preference shares | (9,189 | ) | (9,189 | ) | |||||||||||
Net income available to 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 | % |
RenaissanceRe Holdings Ltd. | |||||||
Supplemental Financial Data - Gross Premiums Written | |||||||
(in thousands of United States Dollars) | |||||||
(Unaudited) | |||||||
Three months ended | |||||||
March 31, 2020 | March 31, 2019 | ||||||
Property Segment | |||||||
Catastrophe | $ | 936,190 | $ | 845,213 | |||
Other property | 284,336 | 187,171 | |||||
Property segment gross premiums written | $ | 1,220,526 | $ | 1,032,384 | |||
Casualty and Specialty Segment | |||||||
General casualty (1) | $ | 246,667 | $ | 153,334 | |||
Professional liability (2) | 230,487 | 149,377 | |||||
Financial lines (3) | 147,079 | 127,356 | |||||
Other (4) | 180,962 | 101,844 | |||||
Casualty and Specialty segment gross premiums written | $ | 805,195 | $ | 531,911 |
(1) | Includes automobile liability, casualty clash, employer’s liability, umbrella or excess casualty, workers’ compensation and general liability. |
(2) | Includes directors and officers, medical malpractice, and professional indemnity. |
(3) | Includes financial guaranty, mortgage guaranty, political risk, surety and trade credit. |
(4) | Includes accident and health, agriculture, aviation, cyber, energy, marine, satellite and terrorism. Lines of business such as regional multi-line and whole account may have characteristics of various other classes of business, and are allocated accordingly. |
RenaissanceRe Holdings Ltd. | |||||||
Supplemental Financial Data - Total Investment Result | |||||||
(in thousands of United States Dollars, except percentages) | |||||||
(Unaudited) | |||||||
Three months ended | |||||||
March 31, 2020 | March 31, 2019 | ||||||
Fixed maturity investments | $ | 73,338 | $ | 61,483 | |||
Short term investments | 12,092 | 11,844 | |||||
Equity investments trading | 1,551 | 1,027 | |||||
Other investments | |||||||
Catastrophe bonds | 14,139 | 8,691 | |||||
Other | 1,629 | 1,640 | |||||
Cash and cash equivalents | 1,504 | 1,517 | |||||
104,253 | 86,202 | ||||||
Investment expenses | (4,780 | ) | (4,108 | ) | |||
Net investment income | 99,473 | 82,094 | |||||
Gross realized gains | 68,847 | 24,373 | |||||
Gross realized losses | (11,360 | ) | (22,943 | ) | |||
Net realized gains on fixed maturity investments | 57,487 | 1,430 | |||||
Net unrealized (losses) gains on fixed maturity investments trading | (20,345 | ) | 103,922 | ||||
Net realized and unrealized gains on investments-related derivatives | 33,181 | 13,796 | |||||
Net realized losses on equity investments trading | (15,047 | ) | (1,161 | ) | |||
Net unrealized (losses) gains on equity investments trading | (105,937 | ) | 52,658 | ||||
Net realized and unrealized losses on other investments - catastrophe bonds | (14,352 | ) | (2,210 | ) | |||
Net realized and unrealized (losses) gains on other investments - other | (45,694 | ) | 1,578 | ||||
Net realized and unrealized (losses) gains on investments | (110,707 | ) | 170,013 | ||||
Total investment result | $ | (11,234 | ) | $ | 252,107 | ||
Total investment return - annualized | (0.1 | )% | 8.0 | % |
Three months ended | |||||||
(in thousands of United States Dollars, except per share amounts and percentages) | March 31, 2020 | March 31, 2019 | |||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders | $ | (81,974 | ) | $ | 273,717 | ||
Adjustment for net realized and unrealized losses (gains) on investments, excluding net realized and unrealized losses (gains) on other investments - catastrophe bonds | 96,355 | (172,223 | ) | ||||
Adjustment for net foreign exchange losses | 5,728 | 2,846 | |||||
Adjustment for transaction and integration expenses associated with the acquisition of TMR | 4,423 | 25,520 | |||||
Adjustment for income tax (benefit) expense (1) | (4,141 | ) | 8,334 | ||||
Adjustment for net income attributable to redeemable noncontrolling interests (2) | 13,019 | 15,414 | |||||
Operating income available to RenaissanceRe common shareholders | $ | 33,410 | $ | 153,608 | |||
Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share - diluted | $ | (1.89 | ) | $ | 6.43 | ||
Adjustment for net realized and unrealized losses (gains) on investments, excluding net realized and unrealized losses (gains) on other investments - catastrophe bonds | 2.22 | (4.09 | ) | ||||
Adjustment for net foreign exchange losses | 0.13 | 0.07 | |||||
Adjustment for transaction and integration expenses associated with the acquisition of TMR | 0.10 | 0.61 | |||||
Adjustment for income tax (benefit) expense (1) | (0.10 | ) | 0.20 | ||||
Adjustment for net income attributable to redeemable noncontrolling interests (2) | 0.30 | 0.37 | |||||
Operating income available to RenaissanceRe common shareholders per common share - diluted | $ | 0.76 | $ | 3.59 | |||
Return on average common equity - annualized | (6.3 | )% | 23.5 | % | |||
Adjustment for net realized and unrealized losses (gains) on investments, excluding net realized and unrealized losses (gains) on other investments - catastrophe bonds | 7.5 | % | (14.8 | )% | |||
Adjustment for net foreign exchange losses | 0.4 | % | 0.2 | % | |||
Adjustment for transaction and integration expenses associated with the acquisition of TMR | 0.3 | % | 2.2 | % | |||
Adjustment for income tax (benefit) expense (1) | (0.3 | )% | 0.7 | % | |||
Adjustment for net income attributable to redeemable noncontrolling interests (2) | 1.0 | % | 1.3 | % | |||
Operating return on average common equity - annualized | 2.6 | % | 13.1 | % |
(1) | Adjustment for income tax (benefit) expense represents the income tax benefit (expense) associated with the adjustments to net (loss) income (attributable) available to RenaissanceRe common shareholders. The income tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors. |
(2) | Adjustment for net income attributable to redeemable noncontrolling interests represents the portion attributable to the Company's redeemable noncontrolling interests associated with the adjustments to net (loss) income (attributable) available to RenaissanceRe common shareholders, including the income tax impact of those adjustments. |
At | |||||||||||||||||||
March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||
Book value per common share | $ | 117.15 | $ | 120.53 | $ | 120.07 | $ | 119.17 | $ | 111.05 | |||||||||
Adjustment for goodwill and other intangibles (1) | (6.46 | ) | (6.50 | ) | (6.55 | ) | (6.60 | ) | (6.66 | ) | |||||||||
Tangible book value per common share | 110.69 | 114.03 | 113.52 | 112.57 | 104.39 | ||||||||||||||
Adjustment for accumulated dividends | 21.03 | 20.68 | 20.34 | 20.00 | 19.66 | ||||||||||||||
Tangible book value per common share plus accumulated dividends | $ | 131.72 | $ | 134.71 | $ | 133.86 | $ | 132.57 | $ | 124.05 | |||||||||
Quarterly change in book value per common share | (2.8 | )% | 0.4 | % | 0.8 | % | 7.3 | % | 6.6 | % | |||||||||
Quarterly change in tangible book value per common share plus change in accumulated dividends | (2.6 | )% | 0.7 | % | 1.1 | % | 8.2 | % | 7.0 | % | |||||||||
Year to date change in book value per common share | (2.8 | )% | 15.7 | % | 15.3 | % | 14.4 | % | 6.6 | % | |||||||||
Year to date change in tangible book value per common share plus change in accumulated dividends | (2.6 | )% | 17.9 | % | 17.1 | % | 15.7 | % | 7.0 | % |
(1) | At March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019, goodwill and other intangibles included $24.2 million, $24.9 million, $25.6 million, $26.3 million and $27.0 million, respectively, of goodwill and other intangibles included in investments in other ventures, under equity method. |
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. | Investment Portfolio - Weighted Average Yield to Maturity and Credit Rating | |||
d. | Total Investment Result | |||
Loss Reserve Analysis | ||||
a. | Reserves for Claims and Claim Expenses | |||
b. | Paid to Incurred Analysis | |||
Other Items | ||||
a. | Fee Income | |||
b. | Noncontrolling Interests | |||
c. | Earnings per Share | |||
d. | Ratings | |||
Supplemental Information | ||||
a. | Gross Premiums Written | |||
b. | Property Segment Supplemental Underwriting Results | |||
Comments on Regulation G |
RenaissanceRe Holdings Ltd. |
Basis of Presentation |
i |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Financial Highlights | |||||||||||||||||||
Three months ended | |||||||||||||||||||
March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||
Highlights | |||||||||||||||||||
Gross premiums written | $ | 2,025,721 | $ | 905,479 | $ | 861,068 | $ | 1,476,908 | $ | 1,564,295 | |||||||||
Underwriting income (loss) | $ | 64,079 | $ | (65,157 | ) | $ | (3,368 | ) | $ | 170,833 | $ | 154,109 | |||||||
Net investment income | $ | 99,473 | $ | 112,138 | $ | 111,387 | $ | 118,588 | $ | 82,094 | |||||||||
Net realized and unrealized (losses) gains on investments | (110,707 | ) | 18,454 | 34,395 | 191,247 | 170,013 | |||||||||||||
Total investment result | $ | (11,234 | ) | $ | 130,592 | $ | 145,782 | $ | 309,835 | $ | 252,107 | ||||||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders | $ | (81,974 | ) | $ | 33,773 | $ | 36,698 | $ | 367,854 | $ | 273,717 | ||||||||
Operating income available to RenaissanceRe common shareholders (1) | $ | 33,410 | $ | 12,623 | $ | 32,681 | $ | 198,839 | $ | 153,608 | |||||||||
Total investments | $ | 17,818,597 | $ | 17,368,789 | $ | 16,947,893 | $ | 16,388,316 | $ | 14,852,848 | |||||||||
Total assets | $ | 27,465,519 | $ | 26,330,094 | $ | 25,644,210 | $ | 26,086,961 | $ | 24,559,600 | |||||||||
Reserve for claims and claim expenses | $ | 9,406,707 | $ | 9,384,349 | $ | 8,602,437 | $ | 8,484,848 | $ | 8,391,484 | |||||||||
Total shareholders' equity attributable to RenaissanceRe | $ | 5,683,526 | $ | 5,971,367 | $ | 5,951,235 | $ | 5,912,842 | $ | 5,554,033 | |||||||||
Per share data | |||||||||||||||||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share - diluted | $ | (1.89 | ) | $ | 0.77 | $ | 0.83 | $ | 8.35 | $ | 6.43 | ||||||||
Operating income available to RenaissanceRe common shareholders per common share - diluted (1) | $ | 0.76 | $ | 0.28 | $ | 0.73 | $ | 4.47 | $ | 3.59 | |||||||||
Book value per common share | $ | 117.15 | $ | 120.53 | $ | 120.07 | $ | 119.17 | $ | 111.05 | |||||||||
Tangible book value per common share (1) | $ | 110.69 | $ | 114.03 | $ | 113.52 | $ | 112.57 | $ | 104.39 | |||||||||
Tangible book value per common share plus accumulated dividends (1) | $ | 131.72 | $ | 134.71 | $ | 133.86 | $ | 132.57 | $ | 124.05 | |||||||||
Change in tangible book value per common share plus change in accumulated dividends (1) | (2.6 | )% | 0.7 | % | 1.1 | % | 8.2 | % | 7.0 | % | |||||||||
Financial ratios | |||||||||||||||||||
Combined ratio | 93.0 | % | 106.7 | % | 100.4 | % | 81.3 | % | 72.0 | % | |||||||||
Return on average common equity - annualized | (6.3 | )% | 2.5 | % | 2.8 | % | 28.9 | % | 23.5 | % | |||||||||
Operating return on average common equity - annualized (1) | 2.6 | % | 0.9 | % | 2.5 | % | 15.6 | % | 13.1 | % | |||||||||
Total investment return - annualized | (0.1 | )% | 3.1 | % | 3.6 | % | 8.0 | % | 8.0 | % |
(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 | |||||||||||||||||||
March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||
Revenues | |||||||||||||||||||
Gross premiums written | $ | 2,025,721 | $ | 905,479 | $ | 861,068 | $ | 1,476,908 | $ | 1,564,295 | |||||||||
Net premiums written | $ | 1,269,808 | $ | 725,367 | $ | 704,130 | $ | 1,022,965 | $ | 929,031 | |||||||||
(Increase) decrease in unearned premiums | (356,710 | ) | 244,758 | 202,618 | (111,463 | ) | (379,003 | ) | |||||||||||
Net premiums earned | 913,098 | 970,125 | 906,748 | 911,502 | 550,028 | ||||||||||||||
Net investment income | 99,473 | 112,138 | 111,387 | 118,588 | 82,094 | ||||||||||||||
Net foreign exchange (losses) gains | (5,728 | ) | (1,126 | ) | (8,275 | ) | 9,309 | (2,846 | ) | ||||||||||
Equity in earnings of other ventures | 4,564 | 5,874 | 5,877 | 6,812 | 4,661 | ||||||||||||||
Other (loss) income | (4,436 | ) | (160 | ) | 1,016 | 922 | 3,171 | ||||||||||||
Net realized and unrealized (losses) gains on investments | (110,707 | ) | 18,454 | 34,395 | 191,247 | 170,013 | |||||||||||||
Total revenues | 896,264 | 1,105,305 | 1,051,148 | 1,238,380 | 807,121 | ||||||||||||||
Expenses | |||||||||||||||||||
Net claims and claim expenses incurred | 570,954 | 762,093 | 654,520 | 453,373 | 227,035 | ||||||||||||||
Acquisition expenses | 210,604 | 208,618 | 202,181 | 227,482 | 123,951 | ||||||||||||||
Operational expenses | 67,461 | 64,571 | 53,415 | 59,814 | 44,933 | ||||||||||||||
Corporate expenses | 15,991 | 17,642 | 13,844 | 23,847 | 38,789 | ||||||||||||||
Interest expense | 14,927 | 15,496 | 15,580 | 15,534 | 11,754 | ||||||||||||||
Total expenses | 879,937 | 1,068,420 | 939,540 | 780,050 | 446,462 | ||||||||||||||
Income before taxes | 16,327 | 36,885 | 111,608 | 458,330 | 360,659 | ||||||||||||||
Income tax benefit (expense) | 8,846 | 3,455 | (3,664 | ) | (9,475 | ) | (7,531 | ) | |||||||||||
Net income | 25,173 | 40,340 | 107,944 | 448,855 | 353,128 | ||||||||||||||
Net (income) loss attributable to noncontrolling interests | (98,091 | ) | 2,622 | (62,057 | ) | (71,812 | ) | (70,222 | ) | ||||||||||
Net (loss) income attributable to RenaissanceRe | (72,918 | ) | 42,962 | 45,887 | 377,043 | 282,906 | |||||||||||||
Dividends on preference shares | (9,056 | ) | (9,189 | ) | (9,189 | ) | (9,189 | ) | (9,189 | ) | |||||||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders | $ | (81,974 | ) | $ | 33,773 | $ | 36,698 | $ | 367,854 | $ | 273,717 | ||||||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share - basic | $ | (1.89 | ) | $ | 0.77 | $ | 0.83 | $ | 8.36 | $ | 6.43 | ||||||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share - diluted | $ | (1.89 | ) | $ | 0.77 | $ | 0.83 | $ | 8.35 | $ | 6.43 | ||||||||
Operating income available to RenaissanceRe common shareholders per common share - diluted (1) | $ | 0.76 | $ | 0.28 | $ | 0.73 | $ | 4.52 | $ | 3.59 | |||||||||
Return on average common equity - annualized | (6.3 | )% | 2.5 | % | 2.8 | % | 28.9 | % | 23.5 | % | |||||||||
Operating return on average common equity - annualized (1) | 2.6 | % | 0.9 | % | 2.5 | % | 15.6 | % | 13.1 | % |
(1) | See "Comments on Regulation G" for a reconciliation of non-GAAP financial measures. |
2 |
RenaissanceRe Holdings Ltd. | |||||||||||||||
Consolidated Segment Underwriting Results | |||||||||||||||
Three months ended March 31, 2020 | |||||||||||||||
Property | Casualty and Specialty | Other | Total | ||||||||||||
Gross premiums written | $ | 1,220,526 | $ | 805,195 | $ | — | $ | 2,025,721 | |||||||
Net premiums written | $ | 674,581 | $ | 595,227 | $ | — | $ | 1,269,808 | |||||||
Net premiums earned | $ | 421,335 | $ | 491,763 | $ | — | $ | 913,098 | |||||||
Net claims and claim expenses incurred | 144,852 | 426,209 | (107 | ) | 570,954 | ||||||||||
Acquisition expenses | 85,351 | 125,253 | — | 210,604 | |||||||||||
Operational expenses | 44,007 | 23,454 | — | 67,461 | |||||||||||
Underwriting income (loss) | $ | 147,125 | $ | (83,153 | ) | $ | 107 | $ | 64,079 | ||||||
Net claims and claim expenses incurred - current accident year | $ | 130,844 | $ | 426,210 | $ | — | $ | 557,054 | |||||||
Net claims and claim expenses incurred - prior accident years | 14,008 | (1 | ) | (107 | ) | 13,900 | |||||||||
Net claims and claim expenses incurred - total | $ | 144,852 | $ | 426,209 | $ | (107 | ) | $ | 570,954 | ||||||
Net claims and claim expense ratio - current accident year | 31.1 | % | 86.7 | % | 61.0 | % | |||||||||
Net claims and claim expense ratio - prior accident years | 3.3 | % | — | % | 1.5 | % | |||||||||
Net claims and claim expense ratio - calendar year | 34.4 | % | 86.7 | % | 62.5 | % | |||||||||
Underwriting expense ratio | 30.7 | % | 30.2 | % | 30.5 | % | |||||||||
Combined ratio | 65.1 | % | 116.9 | % | 93.0 | % | |||||||||
Three months ended 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 | % |
3 |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Segment Underwriting Results | |||||||||||||||||||
Three months ended | |||||||||||||||||||
Property Segment | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | ||||||||||||||
Gross premiums written | $ | 1,220,526 | $ | 245,001 | $ | 314,400 | $ | 839,200 | $ | 1,032,384 | |||||||||
Net premiums written | $ | 674,581 | $ | 242,932 | $ | 302,982 | $ | 544,115 | $ | 564,230 | |||||||||
Net premiums earned | $ | 421,335 | $ | 467,404 | $ | 444,332 | $ | 425,013 | $ | 290,745 | |||||||||
Net claims and claim expenses incurred | 144,852 | 424,207 | 338,260 | 146,874 | 56,083 | ||||||||||||||
Acquisition expenses | 85,351 | 90,790 | 79,521 | 89,711 | 53,739 | ||||||||||||||
Operational expenses | 44,007 | 39,469 | 34,238 | 36,764 | 28,544 | ||||||||||||||
Underwriting income (loss) | $ | 147,125 | $ | (87,062 | ) | $ | (7,687 | ) | $ | 151,664 | $ | 152,379 | |||||||
Net claims and claim expenses incurred - current accident year | $ | 130,844 | $ | 432,160 | $ | 345,880 | $ | 136,111 | $ | 54,206 | |||||||||
Net claims and claim expenses incurred - prior accident years | 14,008 | (7,953 | ) | (7,620 | ) | 10,763 | 1,877 | ||||||||||||
Net claims and claim expenses incurred - total | $ | 144,852 | $ | 424,207 | $ | 338,260 | $ | 146,874 | $ | 56,083 | |||||||||
Net claims and claim expense ratio - current accident year | 31.1 | % | 92.5 | % | 77.8 | % | 32.0 | % | 18.6 | % | |||||||||
Net claims and claim expense ratio - prior accident years | 3.3 | % | (1.7 | )% | (1.7 | )% | 2.6 | % | 0.7 | % | |||||||||
Net claims and claim expense ratio - calendar year | 34.4 | % | 90.8 | % | 76.1 | % | 34.6 | % | 19.3 | % | |||||||||
Underwriting expense ratio | 30.7 | % | 27.8 | % | 25.6 | % | 29.7 | % | 28.3 | % | |||||||||
Combined ratio | 65.1 | % | 118.6 | % | 101.7 | % | 64.3 | % | 47.6 | % | |||||||||
Three months ended | |||||||||||||||||||
Casualty and Specialty Segment | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | ||||||||||||||
Gross premiums written | $ | 805,195 | $ | 660,478 | $ | 546,668 | $ | 637,708 | $ | 531,911 | |||||||||
Net premiums written | $ | 595,227 | $ | 482,435 | $ | 401,148 | $ | 478,850 | $ | 364,801 | |||||||||
Net premiums earned | $ | 491,763 | $ | 502,721 | $ | 462,416 | $ | 486,489 | $ | 259,283 | |||||||||
Net claims and claim expenses incurred | 426,209 | 338,104 | 316,099 | 306,501 | 170,933 | ||||||||||||||
Acquisition expenses | 125,253 | 117,849 | 122,654 | 137,963 | 70,212 | ||||||||||||||
Operational expenses | 23,454 | 25,943 | 19,198 | 23,016 | 16,389 | ||||||||||||||
Underwriting (loss) income | $ | (83,153 | ) | $ | 20,825 | $ | 4,465 | $ | 19,009 | $ | 1,749 | ||||||||
Net claims and claim expenses incurred - current accident year | $ | 426,210 | $ | 342,268 | $ | 319,087 | $ | 317,029 | $ | 177,135 | |||||||||
Net claims and claim expenses incurred - prior accident years | (1 | ) | (4,164 | ) | (2,988 | ) | (10,528 | ) | (6,202 | ) | |||||||||
Net claims and claim expenses incurred - total | $ | 426,209 | $ | 338,104 | $ | 316,099 | $ | 306,501 | $ | 170,933 | |||||||||
Net claims and claim expense ratio - current accident year | 86.7 | % | 68.1 | % | 69.0 | % | 65.2 | % | 68.3 | % | |||||||||
Net claims and claim expense ratio - prior accident years | — | % | (0.8 | )% | (0.6 | )% | (2.2 | )% | (2.4 | )% | |||||||||
Net claims and claim expense ratio - calendar year | 86.7 | % | 67.3 | % | 68.4 | % | 63.0 | % | 65.9 | % | |||||||||
Underwriting expense ratio | 30.2 | % | 28.6 | % | 30.6 | % | 33.1 | % | 33.4 | % | |||||||||
Combined ratio | 116.9 | % | 95.9 | % | 99.0 | % | 96.1 | % | 99.3 | % |
4 |
DaVinciRe Holdings Ltd. and Subsidiary | |||||||||||||||||||
Consolidated Statements of Operations | |||||||||||||||||||
Three months ended | |||||||||||||||||||
March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||
Revenues | |||||||||||||||||||
Gross premiums written | $ | 255,640 | $ | 15,566 | $ | 32,986 | $ | 206,052 | $ | 186,114 | |||||||||
Net premiums written | $ | 241,641 | $ | 15,210 | $ | 30,605 | $ | 165,394 | $ | 167,919 | |||||||||
(Increase) decrease in unearned premiums | (135,933 | ) | 90,674 | 63,671 | (78,769 | ) | (89,594 | ) | |||||||||||
Net premiums earned | 105,708 | 105,884 | 94,276 | 86,625 | 78,325 | ||||||||||||||
Net investment income | 15,087 | 13,506 | 13,813 | 13,597 | 12,823 | ||||||||||||||
Net foreign exchange losses | (1,180 | ) | (399 | ) | (174 | ) | (936 | ) | (256 | ) | |||||||||
Other income | — | — | — | 139 | 205 | ||||||||||||||
Net realized and unrealized gains (losses) on investments | 18,529 | (1,307 | ) | 6,493 | 20,914 | 22,435 | |||||||||||||
Total revenues | 138,144 | 117,684 | 114,408 | 120,339 | 113,532 | ||||||||||||||
Expenses | |||||||||||||||||||
Net claims and claim expenses incurred | (13,726 | ) | 135,397 | 45,325 | 10,986 | 3,663 | |||||||||||||
Acquisition expenses | 30,112 | 1,313 | 15,762 | 21,211 | 16,966 | ||||||||||||||
Operational and corporate expenses | 11,889 | 12,238 | 12,139 | 9,777 | 10,650 | ||||||||||||||
Interest expense | 1,858 | 1,859 | 1,859 | 1,858 | 1,858 | ||||||||||||||
Total expenses | 30,133 | 150,807 | 75,085 | 43,832 | 33,137 | ||||||||||||||
Income (loss) before taxes | 108,011 | (33,123 | ) | 39,323 | 76,507 | 80,395 | |||||||||||||
Income tax benefit (expense) | 2 | (6 | ) | (177 | ) | 243 | (142 | ) | |||||||||||
Net income (loss) available (attributable) to DaVinciRe common shareholders | $ | 108,013 | $ | (33,129 | ) | $ | 39,146 | $ | 76,750 | $ | 80,253 | ||||||||
Net claims and claim expenses incurred - current accident year | $ | 4,967 | $ | 113,743 | $ | 80,022 | $ | 5,623 | $ | 10,300 | |||||||||
Net claims and claim expenses incurred - prior accident years | (18,693 | ) | 21,654 | (34,697 | ) | 5,363 | (6,637 | ) | |||||||||||
Net claims and claim expenses incurred - total | $ | (13,726 | ) | $ | 135,397 | $ | 45,325 | $ | 10,986 | $ | 3,663 | ||||||||
Net claims and claim expense ratio - current accident year | 4.7 | % | 107.4 | % | 84.9 | % | 6.5 | % | 13.2 | % | |||||||||
Net claims and claim expense ratio - prior accident years | (17.7 | )% | 20.5 | % | (36.8 | )% | 6.2 | % | (8.5 | )% | |||||||||
Net claims and claim expense ratio - calendar year | (13.0 | )% | 127.9 | % | 48.1 | % | 12.7 | % | 4.7 | % | |||||||||
Underwriting expense ratio | 39.7 | % | 12.8 | % | 29.6 | % | 35.8 | % | 35.2 | % | |||||||||
Combined ratio | 26.7 | % | 140.7 | % | 77.7 | % | 48.5 | % | 39.9 | % |
5 |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Summary Consolidated Balance Sheets | |||||||||||||||||||
March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||
Assets | |||||||||||||||||||
Fixed maturity investments trading, at fair value | $ | 11,045,801 | $ | 11,171,655 | $ | 11,386,228 | $ | 10,479,666 | $ | 9,473,160 | |||||||||
Short term investments, at fair value | 5,263,242 | 4,566,277 | 4,116,156 | 4,579,171 | 4,012,815 | ||||||||||||||
Equity investments trading, at fair value | 360,444 | 436,931 | 379,422 | 273,646 | 389,937 | ||||||||||||||
Other investments, at fair value | 1,058,714 | 1,087,377 | 962,109 | 955,437 | 878,373 | ||||||||||||||
Investments in other ventures, under equity method | 90,396 | 106,549 | 103,978 | 100,396 | 98,563 | ||||||||||||||
Total investments | 17,818,597 | 17,368,789 | 16,947,893 | 16,388,316 | 14,852,848 | ||||||||||||||
Cash and cash equivalents | 896,216 | 1,379,068 | 871,251 | 670,626 | 1,021,275 | ||||||||||||||
Premiums receivable | 3,105,441 | 2,599,896 | 2,799,954 | 3,140,688 | 2,753,098 | ||||||||||||||
Prepaid reinsurance premiums | 1,151,926 | 767,781 | 972,047 | 1,158,534 | 1,086,027 | ||||||||||||||
Reinsurance recoverable | 2,765,583 | 2,791,297 | 2,438,299 | 2,865,150 | 2,908,343 | ||||||||||||||
Accrued investment income | 73,496 | 72,461 | 73,509 | 76,949 | 64,615 | ||||||||||||||
Deferred acquisition costs and value of business acquired | 739,875 | 663,991 | 708,258 | 780,756 | 841,528 | ||||||||||||||
Receivable for investments sold | 341,786 | 78,369 | 225,147 | 395,787 | 411,172 | ||||||||||||||
Other assets | 312,523 | 346,216 | 344,593 | 344,938 | 353,543 | ||||||||||||||
Goodwill and other intangibles | 260,076 | 262,226 | 263,259 | 265,217 | 267,151 | ||||||||||||||
Total assets | $ | 27,465,519 | $ | 26,330,094 | $ | 25,644,210 | $ | 26,086,961 | $ | 24,559,600 | |||||||||
Liabilities, Noncontrolling Interests and Shareholders' Equity | |||||||||||||||||||
Liabilities | |||||||||||||||||||
Reserve for claims and claim expenses | $ | 9,406,707 | $ | 9,384,349 | $ | 8,602,437 | $ | 8,484,848 | $ | 8,391,484 | |||||||||
Unearned premiums | 3,245,914 | 2,530,975 | 2,967,535 | 3,362,520 | 3,188,678 | ||||||||||||||
Debt | 1,134,695 | 1,384,105 | 1,383,498 | 1,382,890 | 1,191,499 | ||||||||||||||
Reinsurance balances payable | 3,775,375 | 2,830,691 | 2,910,601 | 3,280,048 | 3,009,492 | ||||||||||||||
Payable for investments purchased | 636,136 | 225,275 | 654,685 | 554,696 | 679,596 | ||||||||||||||
Other liabilities | 351,320 | 932,024 | 395,186 | 396,651 | 435,418 | ||||||||||||||
Total liabilities | 18,550,147 | 17,287,419 | 16,913,942 | 17,461,653 | 16,896,167 | ||||||||||||||
Redeemable noncontrolling interest | 3,231,846 | 3,071,308 | 2,779,033 | 2,712,466 | 2,109,400 | ||||||||||||||
Shareholders' Equity | |||||||||||||||||||
Preference shares | 525,000 | 650,000 | 650,000 | 650,000 | 650,000 | ||||||||||||||
Common shares | 44,034 | 44,148 | 44,152 | 44,162 | 44,159 | ||||||||||||||
Additional paid-in capital | 502,608 | 568,277 | 560,166 | 552,210 | 543,889 | ||||||||||||||
Accumulated other comprehensive (loss) income | (1,664 | ) | (1,939 | ) | 4,988 | (3,869 | ) | (1,470 | ) | ||||||||||
Retained earnings | 4,613,548 | 4,710,881 | 4,691,929 | 4,670,339 | 4,317,455 | ||||||||||||||
Total shareholders' equity attributable to RenaissanceRe | 5,683,526 | 5,971,367 | 5,951,235 | 5,912,842 | 5,554,033 | ||||||||||||||
Total liabilities, noncontrolling interests and shareholders' equity | $ | 27,465,519 | $ | 26,330,094 | $ | 25,644,210 | $ | 26,086,961 | $ | 24,559,600 | |||||||||
Book value per common share | $ | 117.15 | $ | 120.53 | $ | 120.07 | $ | 119.17 | $ | 111.05 |
6 |
RenaissanceRe Holdings Ltd. | ||||||||||||||||||||||||||||||||||
Investment Portfolio - Composition | ||||||||||||||||||||||||||||||||||
Type of Investment | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||||||||||||||||
U.S. treasuries | $ | 3,915,130 | 22.0 | % | $ | 4,467,345 | 25.7 | % | $ | 4,314,006 | 25.4 | % | $ | 3,961,306 | 24.2 | % | $ | 3,097,089 | 20.9 | % | ||||||||||||||
Agencies | 537,490 | 3.1 | % | 343,031 | 1.9 | % | 507,903 | 3.0 | % | 334,923 | 2.0 | % | 182,904 | 1.2 | % | |||||||||||||||||||
Municipal | — | — | % | — | — | % | 1,629 | — | % | 2,859 | — | % | 256,967 | 1.7 | % | |||||||||||||||||||
Non-U.S. government | 635,282 | 3.6 | % | 497,392 | 2.9 | % | 379,154 | 2.2 | % | 370,505 | 2.3 | % | 687,021 | 4.6 | % | |||||||||||||||||||
Non-U.S. government-backed corporate | 283,577 | 1.6 | % | 321,356 | 1.9 | % | 263,170 | 1.6 | % | 207,668 | 1.3 | % | 286,331 | 1.9 | % | |||||||||||||||||||
Corporate | 3,259,780 | 18.3 | % | 3,075,660 | 17.7 | % | 3,453,222 | 20.4 | % | 3,268,511 | 19.9 | % | 2,971,018 | 20.0 | % | |||||||||||||||||||
Agency mortgage-backed | 1,056,272 | 5.9 | % | 1,148,499 | 6.6 | % | 1,248,722 | 7.4 | % | 1,167,735 | 7.1 | % | 955,616 | 6.4 | % | |||||||||||||||||||
Non-agency mortgage-backed | 275,026 | 1.6 | % | 294,604 | 1.7 | % | 261,850 | 1.5 | % | 266,963 | 1.6 | % | 272,880 | 1.8 | % | |||||||||||||||||||
Commercial mortgage-backed | 540,502 | 3.0 | % | 468,698 | 2.7 | % | 406,268 | 2.4 | % | 374,584 | 2.3 | % | 245,323 | 1.7 | % | |||||||||||||||||||
Asset-backed | 542,742 | 3.1 | % | 555,070 | 3.2 | % | 550,304 | 3.3 | % | 524,612 | 3.2 | % | 518,011 | 3.5 | % | |||||||||||||||||||
Total fixed maturity investments, at fair value | 11,045,801 | 62.2 | % | 11,171,655 | 64.3 | % | 11,386,228 | 67.2 | % | 10,479,666 | 63.9 | % | 9,473,160 | 63.7 | % | |||||||||||||||||||
Short term investments, at fair value | 5,263,242 | 29.4 | % | 4,566,277 | 26.3 | % | 4,116,156 | 24.3 | % | 4,579,171 | 28.0 | % | 4,012,815 | 27.1 | % | |||||||||||||||||||
Total consolidated fixed maturity and short term investments, at fair value | 16,309,043 | 91.6 | % | 15,737,932 | 90.6 | % | 15,502,384 | 91.5 | % | 15,058,837 | 91.9 | % | 13,485,975 | 90.8 | % | |||||||||||||||||||
Equity investments trading, at fair value | 360,444 | 2.0 | % | 436,931 | 2.5 | % | 379,422 | 2.2 | % | 273,646 | 1.7 | % | 389,937 | 2.6 | % | |||||||||||||||||||
Other investments, at fair value | 1,058,714 | 5.9 | % | 1,087,377 | 6.3 | % | 962,109 | 5.7 | % | 955,437 | 5.8 | % | 878,373 | 5.9 | % | |||||||||||||||||||
Total managed investment portfolio | 17,728,201 | 99.5 | % | 17,262,240 | 99.4 | % | 16,843,915 | 99.4 | % | 16,287,920 | 99.4 | % | 14,754,285 | 99.3 | % | |||||||||||||||||||
Investments in other ventures, under equity method | 90,396 | 0.5 | % | 106,549 | 0.6 | % | 103,978 | 0.6 | % | 100,396 | 0.6 | % | 98,563 | 0.7 | % | |||||||||||||||||||
Total investments | $ | 17,818,597 | 100.0 | % | $ | 17,368,789 | 100.0 | % | $ | 16,947,893 | 100.0 | % | $ | 16,388,316 | 100.0 | % | $ | 14,852,848 | 100.0 | % | ||||||||||||||
Managed fixed maturity and short term investments portfolio (1) | ||||||||||||||||||||||||||||||||||
Total consolidated fixed maturity and short term investments, at fair value | $ | 16,309,043 | $ | 15,737,932 | $ | 15,502,384 | $ | 15,058,837 | $ | 13,485,975 | ||||||||||||||||||||||||
Weighted average yield to maturity of fixed maturity and short term investments | 1.5 | % | 2.1 | % | 2.2 | % | 2.4 | % | 2.7 | % | ||||||||||||||||||||||||
Average duration of fixed maturities and short term investments | 2.8 | 2.9 | 2.8 | 2.7 | 2.5 | |||||||||||||||||||||||||||||
Retained fixed maturity and short term investments portfolio (2) | ||||||||||||||||||||||||||||||||||
Retained fixed maturity and short term investments, at fair value | $ | 11,124,214 | $ | 11,154,174 | $ | 11,075,699 | $ | 10,787,618 | $ | 9,811,977 | ||||||||||||||||||||||||
Weighted average yield to maturity of retained fixed maturity and short term investments | 1.9 | % | 2.2 | % | 2.3 | % | 2.5 | % | 2.8 | % | ||||||||||||||||||||||||
Average duration of retained fixed maturities and short term investments | 3.5 | 3.6 | 3.5 | 3.1 | 3.0 |
(1) | Includes total consolidated fixed maturity and short term investments, at fair value, as presented on the Company's consolidated balance sheets. |
(2) | Includes total consolidated fixed maturity and short term investments, at fair value, less the portion of fixed maturity and short term investments, at fair value attributable to redeemable noncontrolling interests, certain third party vehicles and joint ventures. See "Comments on Regulation G" for a reconciliation of non-GAAP financial measures. |
7 |
RenaissanceRe Holdings Ltd. | ||||||||||||||||||||||||||||||||||
Investment Portfolio - Fixed Maturity Investments | ||||||||||||||||||||||||||||||||||
Credit Quality of Fixed Maturity Investments | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||||||||||||||||
AAA | $ | 1,590,824 | 14.4 | % | $ | 1,338,265 | 12.0 | % | $ | 1,215,518 | 10.7 | % | $ | 1,121,450 | 10.7 | % | $ | 1,221,347 | 12.9 | % | ||||||||||||||
AA | 6,212,689 | 56.3 | % | 6,677,219 | 59.8 | % | 6,699,860 | 58.8 | % | 6,073,777 | 58.0 | % | 5,302,980 | 56.0 | % | |||||||||||||||||||
A | 1,491,504 | 13.5 | % | 1,453,212 | 13.0 | % | 1,671,934 | 14.7 | % | 1,548,705 | 14.8 | % | 1,385,193 | 14.6 | % | |||||||||||||||||||
BBB | 915,375 | 8.3 | % | 874,730 | 7.8 | % | 967,928 | 8.5 | % | 898,740 | 8.6 | % | 758,720 | 8.0 | % | |||||||||||||||||||
Non-investment grade and not rated | 835,409 | 7.5 | % | 828,229 | 7.4 | % | 830,988 | 7.3 | % | 836,994 | 7.9 | % | 804,920 | 8.5 | % | |||||||||||||||||||
Total fixed maturity investments, at fair value | $ | 11,045,801 | 100.0 | % | $ | 11,171,655 | 100.0 | % | $ | 11,386,228 | 100.0 | % | $ | 10,479,666 | 100.0 | % | $ | 9,473,160 | 100.0 | % | ||||||||||||||
Maturity Profile of Fixed Maturity Investments | ||||||||||||||||||||||||||||||||||
Due in less than one year | $ | 723,397 | 6.5 | % | $ | 544,636 | 4.9 | % | $ | 603,806 | 5.3 | % | $ | 616,578 | 5.9 | % | $ | 744,030 | 7.8 | % | ||||||||||||||
Due after one through five years | 5,039,456 | 45.7 | % | 5,522,769 | 49.4 | % | 5,893,946 | 51.8 | % | 5,176,183 | 49.4 | % | 5,301,425 | 56.0 | % | |||||||||||||||||||
Due after five through ten years | 2,612,031 | 23.7 | % | 2,420,602 | 21.7 | % | 2,232,264 | 19.6 | % | 1,896,176 | 18.1 | % | 1,154,682 | 12.2 | % | |||||||||||||||||||
Due after ten years | 256,375 | 2.3 | % | 216,777 | 1.9 | % | 189,068 | 1.7 | % | 456,835 | 4.3 | % | 281,193 | 3.0 | % | |||||||||||||||||||
Mortgage-backed securities | 1,871,800 | 16.9 | % | 1,911,801 | 17.1 | % | 1,916,840 | 16.8 | % | 1,809,282 | 17.3 | % | 1,473,819 | 15.5 | % | |||||||||||||||||||
Asset-backed securities | 542,742 | 4.9 | % | 555,070 | 5.0 | % | 550,304 | 4.8 | % | 524,612 | 5.0 | % | 518,011 | 5.5 | % | |||||||||||||||||||
Total fixed maturity investments, at fair value | $ | 11,045,801 | 100.0 | % | $ | 11,171,655 | 100.0 | % | $ | 11,386,228 | 100.0 | % | $ | 10,479,666 | 100.0 | % | $ | 9,473,160 | 100.0 | % |
8 |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||||||||||||||||
Investment Portfolio - Weighted Average Yield to Maturity and Credit Rating | |||||||||||||||||||||||||||||||||||||
Credit Rating (1) | |||||||||||||||||||||||||||||||||||||
March 31, 2020 | Amortized Cost | Fair Value | % of Total Investment Portfolio | Weighted Average Yield to Maturity | AAA | AA | A | BBB | Non- Investment Grade | Not Rated | |||||||||||||||||||||||||||
Short term investments | $ | 5,263,242 | $ | 5,263,242 | 29.4 | % | 0.5 | % | $ | 4,845,167 | $ | 408,920 | $ | 1,258 | $ | 4,870 | $ | 1,965 | $ | 1,062 | |||||||||||||||||
100.0 | % | 92.1 | % | 7.8 | % | — | % | 0.1 | % | — | % | — | % | ||||||||||||||||||||||||
Fixed maturity investments | |||||||||||||||||||||||||||||||||||||
U.S. treasuries | 3,713,475 | 3,915,130 | 22.0 | % | 0.4 | % | — | 3,915,130 | — | — | — | — | |||||||||||||||||||||||||
Agencies | |||||||||||||||||||||||||||||||||||||
Fannie Mae and Freddie Mac | 200,585 | 205,530 | 1.2 | % | 1.0 | % | — | 205,530 | — | — | — | — | |||||||||||||||||||||||||
Other agencies | 323,842 | 331,960 | 1.9 | % | 1.0 | % | — | 331,960 | — | — | — | — | |||||||||||||||||||||||||
Total agencies | 524,427 | 537,490 | 3.1 | % | 1.0 | % | — | 537,490 | — | — | — | — | |||||||||||||||||||||||||
Non-U.S. government | 619,620 | 635,282 | 3.6 | % | 0.8 | % | 419,541 | 199,192 | 6,108 | 9,504 | 937 | — | |||||||||||||||||||||||||
Non-U.S. government-backed corporate | 280,712 | 283,577 | 1.6 | % | 1.2 | % | 181,395 | 79,884 | 21,773 | 525 | — | — | |||||||||||||||||||||||||
Corporate | 3,369,559 | 3,259,780 | 18.3 | % | 3.8 | % | 48,059 | 247,072 | 1,453,523 | 861,621 | 633,996 | 15,509 | |||||||||||||||||||||||||
Mortgage-backed | |||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | |||||||||||||||||||||||||||||||||||||
Agency securities | 1,022,760 | 1,056,272 | 5.9 | % | 1.4 | % | — | 1,056,272 | — | — | — | — | |||||||||||||||||||||||||
Non-agency securities - Alt A | 229,184 | 211,511 | 1.2 | % | 6.3 | % | 42,467 | 5,850 | 1,754 | 7,040 | 125,232 | 29,168 | |||||||||||||||||||||||||
Non-agency securities - Prime | 67,597 | 63,515 | 0.4 | % | 5.6 | % | 28,720 | 2,724 | 2,241 | 462 | 17,083 | 12,285 | |||||||||||||||||||||||||
Total residential mortgage-backed | 1,319,541 | 1,331,298 | 7.5 | % | 2.4 | % | 71,187 | 1,064,846 | 3,995 | 7,502 | 142,315 | 41,453 | |||||||||||||||||||||||||
Commercial mortgage-backed | 542,523 | 540,502 | 3.0 | % | 3.1 | % | 443,952 | 80,412 | 3,848 | 11,091 | 1,199 | — | |||||||||||||||||||||||||
Total mortgage-backed | 1,862,064 | 1,871,800 | 10.5 | % | 2.6 | % | 515,139 | 1,145,258 | 7,843 | 18,593 | 143,514 | 41,453 | |||||||||||||||||||||||||
Asset-backed | |||||||||||||||||||||||||||||||||||||
Collateralized loan obligations | 507,903 | 478,923 | 2.7 | % | 4.7 | % | 367,468 | 88,663 | — | 22,792 | — | — | |||||||||||||||||||||||||
Credit cards | 15,372 | 15,331 | 0.1 | % | 2.0 | % | 15,331 | — | — | — | — | — | |||||||||||||||||||||||||
Auto loans | 38,371 | 38,403 | 0.2 | % | 2.3 | % | 38,403 | — | — | — | — | — | |||||||||||||||||||||||||
Other | 10,169 | 10,085 | 0.1 | % | 3.8 | % | 5,488 | — | 2,257 | 2,340 | — | — | |||||||||||||||||||||||||
Total asset-backed | 571,815 | 542,742 | 3.1 | % | 4.4 | % | 426,690 | 88,663 | 2,257 | 25,132 | — | — | |||||||||||||||||||||||||
Total securitized assets | 2,433,879 | 2,414,542 | 13.6 | % | 3.0 | % | 941,829 | 1,233,921 | 10,100 | 43,725 | 143,514 | 41,453 | |||||||||||||||||||||||||
Total fixed maturity investments | 10,941,672 | 11,045,801 | 62.2 | % | 2.0 | % | 1,590,824 | 6,212,689 | 1,491,504 | 915,375 | 778,447 | 56,962 | |||||||||||||||||||||||||
100.0 | % | 14.4 | % | 56.3 | % | 13.5 | % | 8.3 | % | 7.0 | % | 0.5 | % | ||||||||||||||||||||||||
Weighted average yield to maturity of fixed maturity and short term investments | 1.5 | % | |||||||||||||||||||||||||||||||||||
Equity investments trading | 360,444 | 2.0 | % | — | — | — | — | — | 360,444 | ||||||||||||||||||||||||||||
100.0 | % | — | % | — | % | — | % | — | % | — | % | 100.0 | % | ||||||||||||||||||||||||
Other investments | |||||||||||||||||||||||||||||||||||||
Catastrophe bonds | 786,531 | 4.4 | % | — | — | — | — | 786,531 | — | ||||||||||||||||||||||||||||
Private equity investments | 240,277 | 1.3 | % | — | — | — | — | — | 240,277 | ||||||||||||||||||||||||||||
Senior secured bank loan funds | 22,579 | 0.1 | % | — | — | — | — | — | 22,579 | ||||||||||||||||||||||||||||
Hedge funds | 9,327 | 0.1 | % | — | — | — | — | — | 9,327 | ||||||||||||||||||||||||||||
Total other investments | 1,058,714 | 5.9 | % | — | — | — | — | 786,531 | 272,183 | ||||||||||||||||||||||||||||
100.0 | % | — | % | — | % | — | % | — | % | 74.3 | % | 25.7 | % | ||||||||||||||||||||||||
Investments in other ventures | 90,396 | 0.5 | % | — | — | — | — | — | 90,396 | ||||||||||||||||||||||||||||
100.0 | % | — | % | — | % | — | % | — | % | — | % | 100.0 | % | ||||||||||||||||||||||||
Total investment portfolio | $ | 17,818,597 | 100.0 | % | $ | 6,435,991 | $ | 6,621,609 | $ | 1,492,762 | $ | 920,245 | $ | 1,566,943 | $ | 781,047 | |||||||||||||||||||||
100.0 | % | 36.0 | % | 37.2 | % | 8.4 | % | 5.2 | % | 8.8 | % | 4.4 | % |
(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. |
9 |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Total Investment Result | |||||||||||||||||||
Three months ended | |||||||||||||||||||
March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||
Fixed maturity investments | $ | 73,338 | $ | 85,937 | $ | 82,977 | $ | 88,106 | $ | 61,483 | |||||||||
Short term investments | 12,092 | 11,552 | 15,061 | 17,807 | 11,844 | ||||||||||||||
Equity investments trading | 1,551 | 1,539 | 1,326 | 916 | 1,027 | ||||||||||||||
Other investments | |||||||||||||||||||
Catastrophe bonds | 14,139 | 12,870 | 12,812 | 11,781 | 8,691 | ||||||||||||||
Other | 1,629 | 2,221 | 2,672 | 1,914 | 1,640 | ||||||||||||||
Cash and cash equivalents | 1,504 | 1,875 | 1,978 | 2,306 | 1,517 | ||||||||||||||
104,253 | 115,994 | 116,826 | 122,830 | 86,202 | |||||||||||||||
Investment expenses | (4,780 | ) | (3,856 | ) | (5,439 | ) | (4,242 | ) | (4,108 | ) | |||||||||
Net investment income | 99,473 | 112,138 | 111,387 | 118,588 | 82,094 | ||||||||||||||
Gross realized gains | 68,847 | 45,814 | 34,710 | 28,512 | 24,373 | ||||||||||||||
Gross realized losses | (11,360 | ) | (8,380 | ) | (4,609 | ) | (7,217 | ) | (22,943 | ) | |||||||||
Net realized gains on fixed maturity investments | 57,487 | 37,434 | 30,101 | 21,295 | 1,430 | ||||||||||||||
Net unrealized (losses) gains on fixed maturity investments trading | (20,345 | ) | (72,956 | ) | 17,226 | 121,991 | 103,922 | ||||||||||||
Net realized and unrealized gains (losses) on investments-related derivatives | 33,181 | (3,212 | ) | 11,134 | 37,173 | 13,796 | |||||||||||||
Net realized (losses) gains on equity investments trading | (15,047 | ) | 396 | (72 | ) | 31,899 | (1,161 | ) | |||||||||||
Net unrealized (losses) gains on equity investments trading | (105,937 | ) | 56,235 | (26,451 | ) | (18,355 | ) | 52,658 | |||||||||||
Net realized and unrealized (losses) gains on other investments - catastrophe bonds | (14,352 | ) | (4,522 | ) | 9,242 | (11,902 | ) | (2,210 | ) | ||||||||||
Net realized and unrealized (losses) gains on other investments - other | (45,694 | ) | 5,079 | (6,785 | ) | 9,146 | 1,578 | ||||||||||||
Net realized and unrealized (losses) gains on investments | (110,707 | ) | 18,454 | 34,395 | 191,247 | 170,013 | |||||||||||||
Total investment result | $ | (11,234 | ) | $ | 130,592 | $ | 145,782 | $ | 309,835 | $ | 252,107 | ||||||||
Total investment return - annualized | (0.1 | )% | 3.1 | % | 3.6 | % | 8.0 | % | 8.0 | % | |||||||||
Retained total investment result (1) | |||||||||||||||||||
Retained net investment income | $ | 72,603 | $ | 87,739 | $ | 86,408 | $ | 95,400 | $ | 61,442 | |||||||||
Retained net realized and unrealized (losses) gains on investments | (113,261 | ) | 21,751 | 21,764 | 183,357 | 154,328 | |||||||||||||
Retained total investment result | $ | (40,658 | ) | $ | 109,490 | $ | 108,172 | $ | 278,757 | $ | 215,770 |
(1) | Includes total investment return, less the portion attributable to redeemable noncontrolling interests, certain third-party vehicles and joint ventures. See "Comments on Regulation G" for a reconciliation of non-GAAP financial measures. |
10 |
RenaissanceRe Holdings Ltd. | |||||||||||||||
Reserves for Claims and Claim Expenses | |||||||||||||||
Case Reserves | Additional Case Reserves | IBNR | Total | ||||||||||||
March 31, 2020 | |||||||||||||||
Property | $ | 1,095,840 | $ | 1,707,754 | $ | 958,827 | $ | 3,762,421 | |||||||
Casualty and Specialty | 1,644,402 | 105,505 | 3,894,049 | 5,643,956 | |||||||||||
Other | 330 | — | — | 330 | |||||||||||
Total | $ | 2,740,572 | $ | 1,813,259 | $ | 4,852,876 | $ | 9,406,707 | |||||||
December 31, 2019 | |||||||||||||||
Property | $ | 1,253,406 | $ | 1,631,223 | $ | 1,189,221 | $ | 4,073,850 | |||||||
Casualty and Specialty | 1,596,426 | 129,720 | 3,583,913 | 5,310,059 | |||||||||||
Other | 440 | — | — | 440 | |||||||||||
Total | $ | 2,850,272 | $ | 1,760,943 | $ | 4,773,134 | $ | 9,384,349 | |||||||
September 30, 2019 | |||||||||||||||
Property | $ | 1,170,009 | $ | 1,493,600 | $ | 916,314 | $ | 3,579,923 | |||||||
Casualty and Specialty | 1,475,505 | 151,555 | 3,389,344 | 5,016,404 | |||||||||||
Other | 2,944 | — | 3,166 | 6,110 | |||||||||||
Total | $ | 2,648,458 | $ | 1,645,155 | $ | 4,308,824 | $ | 8,602,437 | |||||||
June 30, 2019 | |||||||||||||||
Property | $ | 1,191,810 | $ | 1,635,595 | $ | 791,628 | $ | 3,619,033 | |||||||
Casualty and Specialty | 1,450,805 | 128,701 | 3,280,133 | 4,859,639 | |||||||||||
Other | 3,010 | — | 3,166 | 6,176 | |||||||||||
Total | $ | 2,645,625 | $ | 1,764,296 | $ | 4,074,927 | $ | 8,484,848 | |||||||
March 31, 2019 | |||||||||||||||
Property | $ | 1,243,455 | $ | 1,598,283 | $ | 844,681 | $ | 3,686,419 | |||||||
Casualty and Specialty | 1,454,164 | 121,165 | 3,125,166 | 4,700,495 | |||||||||||
Other | 1,404 | — | 3,166 | 4,570 | |||||||||||
Total (1) | $ | 2,699,023 | $ | 1,719,448 | $ | 3,973,013 | $ | 8,391,484 |
(1) | Included in the Company’s reserves for claims and claim expenses balance at March 31, 2019 is $2.4 billion of gross reserves for claims and claim expenses, at fair value, acquired as a result of the acquisition of TMR. |
11 |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||
Paid to Incurred Analysis | |||||||||||||||||||||||
Three months ended March 31, 2020 | Three months ended March 31, 2019 | ||||||||||||||||||||||
Gross | Recoveries | Net | Gross | Recoveries | Net | ||||||||||||||||||
Reserve for claims and claim expenses, beginning of period | $ | 9,384,349 | $ | 2,791,297 | $ | 6,593,052 | $ | 6,076,271 | $ | 2,372,221 | $ | 3,704,050 | |||||||||||
Incurred claims and claim expenses | |||||||||||||||||||||||
Current year | 790,010 | 232,956 | 557,054 | 300,561 | 69,220 | 231,341 | |||||||||||||||||
Prior years | (42,295 | ) | (56,195 | ) | 13,900 | 37,558 | 41,864 | (4,306 | ) | ||||||||||||||
Total incurred claims and claim expenses | 747,715 | 176,761 | 570,954 | 338,119 | 111,084 | 227,035 | |||||||||||||||||
Paid claims and claim expenses | |||||||||||||||||||||||
Current year | 34,310 | 3,109 | 31,201 | 9,339 | 1,190 | 8,149 | |||||||||||||||||
Prior years | 635,378 | 199,092 | 436,286 | 403,340 | 103,220 | 300,120 | |||||||||||||||||
Total paid claims and claim expenses | 669,688 | 202,201 | 467,487 | 412,679 | 104,410 | 308,269 | |||||||||||||||||
Amounts acquired (1) | — | — | — | 2,388,210 | 529,435 | 1,858,775 | |||||||||||||||||
Foreign exchange (2) | (55,669 | ) | (274 | ) | (55,395 | ) | 1,563 | 13 | 1,550 | ||||||||||||||
Reserve for claims and claim expenses, end of period | $ | 9,406,707 | $ | 2,765,583 | $ | 6,641,124 | $ | 8,391,484 | $ | 2,908,343 | $ | 5,483,141 |
(1) | Represents the fair value of TMR's reserves for claims and claim expenses, net of reinsurance recoverables, acquired at March 22, 2019. |
(2) | Reflects the impact of the foreign exchange revaluation of net reserves denominated in non-U.S. dollars as at the balance sheet date. |
12 |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||||
Fee Income | |||||||||||||||||||||
Three months ended | |||||||||||||||||||
March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||
Management fee income | |||||||||||||||||||
Joint ventures | $ | 11,781 | $ | 11,858 | $ | 11,434 | $ | 9,519 | $ | 9,735 | |||||||||
Structured reinsurance products and other | 8,597 | 8,252 | 8,765 | 9,976 | 8,245 | ||||||||||||||
Managed funds | 6,418 | 3,814 | 4,558 | 6,467 | 3,797 | ||||||||||||||
Total management fee income | 26,796 | 23,924 | 24,757 | 25,962 | 21,777 | ||||||||||||||
Performance fee income (loss) | |||||||||||||||||||
Structured reinsurance products and other | 8,375 | (5,314 | ) | 275 | 8,541 | 4,191 | |||||||||||||
Joint ventures | 7,828 | (3,374 | ) | 5,278 | 5,218 | 2,538 | |||||||||||||
Managed funds | 2,363 | (2,036 | ) | 1,688 | 470 | 298 | |||||||||||||
Total performance fee income (loss) (1) | 18,566 | (10,724 | ) | 7,241 | 14,229 | 7,027 | |||||||||||||
Total fee income | $ | 45,362 | $ | 13,200 | $ | 31,998 | $ | 40,191 | $ | 28,804 |
(1) | Performance fees are based on the performance of the individual vehicles or products, and may be negative in a particular period if, for example, large losses occur, which can potentially result in no performance fees or the reversal of previously accrued performance fees. |
13 |
RenaissanceRe Holdings Ltd. | |||||||||||||
Noncontrolling Interests | |||||||||||||
Three months ended | |||||||||||||||||||
March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||
Redeemable noncontrolling interest - DaVinciRe | $ | (84,906 | ) | $ | 25,862 | $ | (30,558 | ) | $ | (59,855 | ) | $ | (62,533 | ) | |||||
Redeemable noncontrolling interest - Medici | 4,678 | (6,363 | ) | (15,211 | ) | (1,704 | ) | (2,481 | ) | ||||||||||
Redeemable noncontrolling interest - Vermeer | (17,863 | ) | (16,877 | ) | (16,288 | ) | (10,253 | ) | (5,208 | ) | |||||||||
Net (income) loss attributable to redeemable noncontrolling interests | $ | (98,091 | ) | $ | 2,622 | $ | (62,057 | ) | $ | (71,812 | ) | $ | (70,222 | ) |
March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | ||||||||||
DaVinciRe | 78.6 | % | 78.1 | % | 78.1 | % | 78.1 | % | 77.9 | % | ||||
Medici | 88.8 | % | 87.9 | % | 86.3 | % | 86.1 | % | 82.9 | % | ||||
Vermeer | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
14 |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Earnings per Share | |||||||||||||||||||
Three months ended | |||||||||||||||||||
(common shares in thousands) | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | ||||||||||||||
Numerator: | |||||||||||||||||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders | $ | (81,974 | ) | $ | 33,773 | $ | 36,698 | $ | 367,854 | $ | 273,717 | ||||||||
Amount allocated to participating common shareholders (1) | (146 | ) | (409 | ) | (446 | ) | (4,393 | ) | (3,121 | ) | |||||||||
$ | (82,120 | ) | $ | 33,364 | $ | 36,252 | $ | 363,461 | $ | 270,596 | |||||||||
Denominator: | |||||||||||||||||||
Denominator for basic (loss) income per RenaissanceRe common share - | |||||||||||||||||||
Weighted average common shares | 43,441 | 43,467 | 43,462 | 43,483 | 42,065 | ||||||||||||||
Per common share equivalents of employee stock options and non-vested shares | — | 85 | 75 | 38 | 26 | ||||||||||||||
Denominator for diluted (loss) income per RenaissanceRe common share - | |||||||||||||||||||
Adjusted weighted average common shares and assumed conversions | 43,441 | 43,552 | 43,537 | 43,521 | 42,091 | ||||||||||||||
Basic (loss) income per RenaissanceRe common share | $ | (1.89 | ) | $ | 0.77 | $ | 0.83 | $ | 8.36 | $ | 6.43 | ||||||||
Diluted (loss) income per RenaissanceRe common share | $ | (1.89 | ) | $ | 0.77 | $ | 0.83 | $ | 8.35 | $ | 6.43 |
(1) | Represents earnings and dividends attributable to holders of unvested shares issued pursuant to the Company's stock compensation plans. |
15 |
RenaissanceRe Holdings Ltd. | |||||||
Ratings | |||||||
A.M. Best (1) | S&P (2) | Moody's (3) | Fitch (4) | ||||
Renaissance Reinsurance Ltd. | A+ | A+ | A1 | A+ | |||
DaVinci Reinsurance Ltd. | A | A+ | A3 | — | |||
Renaissance Reinsurance of Europe Unlimited Company | A+ | A+ | — | — | |||
Renaissance Reinsurance U.S. Inc. | A+ | A+ | — | — | |||
RenaissanceRe Europe AG | A+ | A+ | — | — | |||
RenaissanceRe Specialty U.S. | A+ | A+ | — | — | |||
Top Layer Reinsurance Ltd. | A+ | AA | — | — | |||
Vermeer Reinsurance Ltd. | A | — | — | — | |||
RenaissanceRe Syndicate 1458 | — | — | — | — | |||
Lloyd's Overall Market Rating | A | A+ | — | AA- | |||
RenaissanceRe | Very Strong | Very Strong | — | — |
(3) | The Moody’s ratings represent the insurer’s financial strength rating. |
(4) | The Fitch rating for Renaissance Reinsurance represents the insurer’s financial strength rating. The Lloyd’s Overall Market Rating represents RenaissanceRe Syndicate 1458’s financial strength rating. |
16 |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Gross Premiums Written | |||||||||||||||||||
Three months ended | |||||||||||||||||||
March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||
Property Segment | |||||||||||||||||||
Catastrophe | $ | 936,190 | $ | 44,824 | $ | 102,779 | $ | 602,656 | $ | 845,213 | |||||||||
Other property | 284,336 | 200,177 | 211,621 | 236,544 | 187,171 | ||||||||||||||
Property segment gross premiums written | $ | 1,220,526 | $ | 245,001 | $ | 314,400 | $ | 839,200 | $ | 1,032,384 | |||||||||
Casualty and Specialty Segment | |||||||||||||||||||
General casualty (1) | $ | 246,667 | $ | 197,338 | $ | 191,447 | $ | 258,357 | $ | 153,334 | |||||||||
Professional liability (2) | 230,487 | 189,838 | 151,754 | 167,206 | 149,377 | ||||||||||||||
Financial lines (3) | 147,079 | 126,983 | 111,459 | 91,202 | 127,356 | ||||||||||||||
Other (4) | 180,962 | 146,319 | 92,008 | 120,943 | 101,844 | ||||||||||||||
Casualty and Specialty segment gross premiums written | $ | 805,195 | $ | 660,478 | $ | 546,668 | $ | 637,708 | $ | 531,911 |
(1) | Includes automobile liability, casualty clash, employer’s liability, umbrella or excess casualty, workers’ compensation and general liability. |
(2) | Includes directors and officers, medical malpractice, and professional indemnity. |
(3) | Includes financial guaranty, mortgage guaranty, political risk, surety and trade credit. |
(4) | Includes accident and health, agriculture, aviation, cyber, energy, marine, satellite and terrorism. Lines of business such as regional multi-line and whole account may have characteristics of various other classes of business, and are allocated accordingly. |
17 |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||
Property Segment Supplemental Underwriting Results | |||||||||||||||||||||||
Three months ended March 31, 2020 | Three months ended March 31, 2019 | ||||||||||||||||||||||
Catastrophe | Other Property | Total | Catastrophe | Other Property | Total | ||||||||||||||||||
Gross premiums written | $ | 936,190 | $ | 284,336 | $ | 1,220,526 | $ | 845,213 | $ | 187,171 | $ | 1,032,384 | |||||||||||
Net premiums written | $ | 477,457 | $ | 197,124 | $ | 674,581 | $ | 444,016 | $ | 120,214 | $ | 564,230 | |||||||||||
Net premiums earned | $ | 220,655 | $ | 200,680 | $ | 421,335 | $ | 180,237 | $ | 110,508 | $ | 290,745 | |||||||||||
Net claims and claim expenses incurred | (2,094 | ) | 146,946 | 144,852 | (13,994 | ) | 70,077 | 56,083 | |||||||||||||||
Acquisition expenses | 28,707 | 56,644 | 85,351 | 24,327 | 29,412 | 53,739 | |||||||||||||||||
Operational expenses | 35,545 | 8,462 | 44,007 | 23,612 | 4,932 | 28,544 | |||||||||||||||||
Underwriting income (loss) | $ | 158,497 | $ | (11,372 | ) | $ | 147,125 | $ | 146,292 | $ | 6,087 | $ | 152,379 | ||||||||||
Net claims and claim expenses incurred - current accident year | $ | 23,382 | $ | 107,462 | $ | 130,844 | $ | 3,490 | $ | 50,716 | $ | 54,206 | |||||||||||
Net claims and claim expenses incurred - prior accident years | (25,476 | ) | 39,484 | 14,008 | (17,484 | ) | 19,361 | 1,877 | |||||||||||||||
Net claims and claim expenses incurred - total | $ | (2,094 | ) | $ | 146,946 | $ | 144,852 | $ | (13,994 | ) | $ | 70,077 | $ | 56,083 | |||||||||
Net claims and claim expense ratio - current accident year | 10.6 | % | 53.5 | % | 31.1 | % | 1.9 | % | 45.9 | % | 18.6 | % | |||||||||||
Net claims and claim expense ratio - prior accident years | (11.5 | )% | 19.7 | % | 3.3 | % | (9.7 | )% | 17.5 | % | 0.7 | % | |||||||||||
Net claims and claim expense ratio - calendar year | (0.9 | )% | 73.2 | % | 34.4 | % | (7.8 | )% | 63.4 | % | 19.3 | % | |||||||||||
Underwriting expense ratio | 29.1 | % | 32.5 | % | 30.7 | % | 26.6 | % | 31.1 | % | 28.3 | % | |||||||||||
Combined ratio | 28.2 | % | 105.7 | % | 65.1 | % | 18.8 | % | 94.5 | % | 47.6 | % |
18 |
RenaissanceRe Holdings Ltd. |
Comments on Regulation G |
RenaissanceRe Holdings Ltd. |
Comments on Regulation G |
Three months ended | |||||||||||||||||||
March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders | $ | (81,974 | ) | $ | 33,773 | $ | 36,698 | $ | 367,854 | $ | 273,717 | ||||||||
Adjustment for net realized and unrealized losses (gains) on investments, excluding net realized and unrealized losses (gains) on other investments - catastrophe bonds | 96,355 | (22,976 | ) | (25,153 | ) | (203,149 | ) | (172,223 | ) | ||||||||||
Adjustment for net foreign exchange losses (gains) | 5,728 | 1,126 | 8,275 | (9,309 | ) | 2,846 | |||||||||||||
Adjustment for transaction and integration expenses associated with the acquisition of TMR | 4,423 | 5,700 | 4,022 | 14,483 | 25,520 | ||||||||||||||
Adjustment for income tax (benefit) expense (1) | (4,141 | ) | (3,707 | ) | 5,298 | 10,442 | 8,334 | ||||||||||||
Adjustment for net income (loss) attributable to redeemable noncontrolling interests (2) | 13,019 | (1,293 | ) | 3,541 | 18,518 | 15,414 | |||||||||||||
Operating income available to RenaissanceRe common shareholders | $ | 33,410 | $ | 12,623 | $ | 32,681 | $ | 198,839 | $ | 153,608 | |||||||||
Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share - diluted | $ | (1.89 | ) | $ | 0.77 | $ | 0.83 | $ | 8.35 | $ | 6.43 | ||||||||
Adjustment for net realized and unrealized losses (gains) on investments, excluding net realized and unrealized losses (gains) on other investments - catastrophe bonds | 2.22 | (0.53 | ) | (0.58 | ) | (4.67 | ) | (4.09 | ) | ||||||||||
Adjustment for net foreign exchange losses (gains) | 0.13 | 0.03 | 0.19 | (0.21 | ) | 0.07 | |||||||||||||
Adjustment for transaction and integration expenses associated with the acquisition of TMR | 0.10 | 0.13 | 0.09 | 0.33 | 0.61 | ||||||||||||||
Adjustment for income tax (benefit) expense (1) | (0.10 | ) | (0.09 | ) | 0.12 | 0.24 | 0.20 | ||||||||||||
Adjustment for net income (loss) attributable to redeemable noncontrolling interests (2) | 0.30 | (0.03 | ) | 0.08 | 0.43 | 0.37 | |||||||||||||
Operating income available to RenaissanceRe common shareholders per common share - diluted | $ | 0.76 | $ | 0.28 | $ | 0.73 | $ | 4.47 | $ | 3.59 | |||||||||
Return on average common equity - annualized | (6.3 | )% | 2.5 | % | 2.8 | % | 28.9 | % | 23.5 | % | |||||||||
Adjustment for net realized and unrealized losses (gains) on investments, excluding net realized and unrealized losses (gains) on other investments - catastrophe bonds | 7.5 | % | (1.7 | )% | (1.9 | )% | (16.0 | )% | (14.8 | )% | |||||||||
Adjustment for net foreign exchange losses (gains) | 0.4 | % | 0.1 | % | 0.6 | % | (0.7 | )% | 0.2 | % | |||||||||
Adjustment for transaction and integration expenses associated with the acquisition of TMR | 0.3 | % | 0.4 | % | 0.3 | % | 1.1 | % | 2.2 | % | |||||||||
Adjustment for income tax (benefit) expense (1) | (0.3 | )% | (0.3 | )% | 0.4 | % | 0.8 | % | 0.7 | % | |||||||||
Adjustment for net income (loss) attributable to redeemable noncontrolling interests (2) | 1.0 | % | (0.1 | )% | 0.3 | % | 1.5 | % | 1.3 | % | |||||||||
Operating return on average common equity - annualized | 2.6 | % | 0.9 | % | 2.5 | % | 15.6 | % | 13.1 | % |
(1) | Adjustment for income tax (benefit) expense represents the income tax benefit (expense) associated with the adjustments to net (loss) income (attributable) available to RenaissanceRe common shareholders. The income tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors. |
(2) | Adjustment for net income (loss) attributable to redeemable noncontrolling interests represents the portion of these adjustments attributable to the Company's redeemable noncontrolling interests associated with the adjustments to net (loss) income (attributable) available to RenaissanceRe common shareholders, including the income tax impact of those adjustments. |
19 |
RenaissanceRe Holdings Ltd. |
Comments on Regulation G |
At | |||||||||||||||||||
March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||
Book value per common share | $ | 117.15 | $ | 120.53 | $ | 120.07 | $ | 119.17 | $ | 111.05 | |||||||||
Adjustment for goodwill and other intangibles (1) | (6.46 | ) | (6.50 | ) | (6.55 | ) | (6.60 | ) | (6.66 | ) | |||||||||
Tangible book value per common share | 110.69 | 114.03 | 113.52 | 112.57 | 104.39 | ||||||||||||||
Adjustment for accumulated dividends | 21.03 | 20.68 | 20.34 | 20.00 | 19.66 | ||||||||||||||
Tangible book value per common share plus accumulated dividends | $ | 131.72 | $ | 134.71 | $ | 133.86 | $ | 132.57 | $ | 124.05 | |||||||||
Quarterly change in book value per common share | (2.8 | )% | 0.4 | % | 0.8 | % | 7.3 | % | 6.6 | % | |||||||||
Quarterly change in tangible book value per common share plus change in accumulated dividends | (2.6 | )% | 0.7 | % | 1.1 | % | 8.2 | % | 7.0 | % | |||||||||
Year to date change in book value per common share | (2.8 | )% | 15.7 | % | 15.3 | % | 14.4 | % | 6.6 | % | |||||||||
Year to date change in tangible book value per common share plus change in accumulated dividends | (2.6 | )% | 17.9 | % | 17.1 | % | 15.7 | % | 7.0 | % |
(1) | At March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019, goodwill and other intangibles included $24.2 million, $24.9 million, $25.6 million, $26.3 million and $27.0 million, respectively, of goodwill and other intangibles included in investments in other ventures, under equity method. |
20 |
RenaissanceRe Holdings Ltd. |
Comments on Regulation G |
At | |||||||||||||||||||
March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||
Fixed maturity investments, at fair value | $ | 11,045,801 | $ | 11,171,655 | $ | 11,386,228 | $ | 10,479,666 | $ | 9,473,160 | |||||||||
Short term investments, at fair value | 5,263,242 | 4,566,277 | 4,116,156 | 4,579,171 | 4,012,815 | ||||||||||||||
Total consolidated fixed maturity and short term investments, at fair value | $ | 16,309,043 | $ | 15,737,932 | $ | 15,502,384 | $ | 15,058,837 | $ | 13,485,975 | |||||||||
Adjustment for fixed maturity and short term investments attributable to redeemable noncontrolling interests, certain third-party vehicles and joint ventures | (5,184,829 | ) | (4,583,758 | ) | (4,426,685 | ) | (4,271,219 | ) | (3,673,998 | ) | |||||||||
Retained fixed maturity and short term investments, at fair value | $ | 11,124,214 | $ | 11,154,174 | $ | 11,075,699 | $ | 10,787,618 | $ | 9,811,977 |
21 |
RenaissanceRe Holdings Ltd. |
Comments on Regulation G |
Three months ended | |||||||||||||||||||
March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||
Net investment income | $ | 99,473 | $ | 112,138 | 111,387 | $ | 118,588 | $ | 82,094 | ||||||||||
Adjustment for net investment income attributable to redeemable noncontrolling interests, certain third-party vehicles and joint ventures | (26,870 | ) | (24,399 | ) | $ | (24,979 | ) | (23,188 | ) | (20,652 | ) | ||||||||
Retained net investment income | 72,603 | 87,739 | 86,408 | 95,400 | 61,442 | ||||||||||||||
Net realized and unrealized (losses) gains on investments | (110,707 | ) | 18,454 | 34,395 | 191,247 | 170,013 | |||||||||||||
Adjustment for net realized and unrealized losses (gains) on investments attributable to redeemable noncontrolling interests, certain third-party vehicles and joint ventures | (2,554 | ) | 3,297 | (12,631 | ) | (7,890 | ) | (15,685 | ) | ||||||||||
Retained net realized and unrealized gains on investments | (113,261 | ) | 21,751 | 21,764 | 183,357 | 154,328 | |||||||||||||
Total investment result | (11,234 | ) | 130,592 | 145,782 | 309,835 | 252,107 | |||||||||||||
Adjustment for investment result attributable to redeemable noncontrolling interests, certain third-party vehicles and joint ventures | (29,424 | ) | (21,102 | ) | (37,610 | ) | (31,078 | ) | (36,337 | ) | |||||||||
Retained total investment result | $ | (40,658 | ) | $ | 109,490 | $ | 108,172 | $ | 278,757 | $ | 215,770 |
22 |