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): January 25, 2022
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of Principal Executive Office) (Zip Code)
(441 ) 295-4513
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report).
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
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| 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 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 ☐
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. ☐
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol | Name of each exchange on which registered | ||||||
Item 2.02 Results of Operations and Financial Condition.
On January 25, 2022, RenaissanceRe Holdings Ltd. (the “Company”) issued a press release announcing its financial results for the fourth quarter and full year ended December 31, 2021 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
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).
* Exhibits 99.1 and 99.2 are being furnished to the SEC pursuant to Item 2.02 and are not being filed with the SEC. Therefore, these exhibits are not incorporated by reference in any of the registrant’s other SEC filings.
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 | ||||||||||||
| January 25, 2022 | Robert Qutub | |||||||||||||
| Executive Vice President and Chief Financial Officer | ||||||||||||||
RenaissanceRe Reports Fourth Quarter 2021 Net Income Available to Common Shareholders of $210.9 Million; Operating Income Available to Common Shareholders of $213.7 Million.
RenaissanceRe Reports Annual Net Loss Attributable to Common Shareholders of $73.4 Million; Operating Income Available to Common Shareholders of $81.6 Million.
•Grew gross premiums written by $2.0 billion, or 34.9%, and net premiums written by $1.8 billion, or 45.0%, in 2021.
•Casualty and Specialty segment combined ratio of 92.5% in the fourth quarter of 2021 and 97.0% in 2021.
•Repurchased $326.9 million of common shares in the fourth quarter; aggregate of $1.0 billion of common shares repurchased in 2021; and an additional $56.7 million of common shares repurchased from January 1, 2022 through January 21, 2022.
•Raised $1.1 billion of additional capital in the Capital Partners business in 2021, including $258.0 million from RenaissanceRe, with a further $662.7 million raised effective January 1, 2022, including $209.7 million from RenaissanceRe.
•2021 Weather-Related Large Losses contributed a $962.1 million net negative impact on net loss attributable to common shareholders in 2021, including $53.4 million in the fourth quarter of 2021.
Pembroke, Bermuda, January 25, 2022 -- RenaissanceRe Holdings Ltd. (NYSE: RNR) (“RenaissanceRe” or the “Company”) today announced its financial results for the fourth quarter and full year 2021.
Fourth Quarter 2021
Net Income Available to Common Shareholders per Diluted Common Share: $4.65 Operating Income Available to Common Shareholders per Diluted Common Share*: $4.71 | ||||||||
Underwriting Income $276.7M | Fee Income $30.0M | Net Investment Income $80.5M | ||||||
Change in Book Value per Common Share: 2.5% Change in Tangible Book Value per Common Share Plus Change in Accum. Dividends*: 2.8% | ||||||||
*Operating Return on Average Common Equity, Operating Income (Loss) Available (Attributable) to Common Shareholders, Operating Income (Loss) Available (Attributable) to Common Shareholders per Diluted Common Share and Change in Tangible Book Value per Common Share Plus Change in Accumulated Dividends are non-GAAP financial measures; see “Comments on Regulation G” for a reconciliation of non-GAAP financial measures.
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Kevin J. O’Donnell, President and Chief Executive Officer, said, “The fourth quarter was a solid finish to a difficult year. We reported a return on average common equity of over 14% for the quarter driven by record profitability in our Casualty and Specialty segment and strong results in our Property segment. For the full year, we earned a modest operating profit despite catastrophe losses of nearly $1 billion. At the same time, we exercised leadership in the market, growing net premiums written by 45% while simultaneously returning over $1 billion in capital to shareholders. At the January 2022 renewal, our Capital Partners team once again led the industry, raising $500 million in DaVinci to grow in an improving environment and further optimize our Property segment. In addition, we continued to expand our Casualty and Specialty business in an attractive market, and as a result have built a stronger, more diversified and efficient underwriting portfolio that I am confident will produce superior returns for our shareholders in 2022.” | ||
Consolidated Financial Results - Fourth Quarter | ||
Consolidated Highlights | ||||||||||||||
| Three months ended December 31 | ||||||||||||||
| (in thousands, except per share amounts and percentages) | 2021 | 2020 | ||||||||||||
Gross premiums written | $ | 1,313,018 | $ | 935,514 | ||||||||||
| Underwriting income (loss) | 276,661 | (151,655) | ||||||||||||
Combined ratio | 79.4 | % | 114.7 | % | ||||||||||
Net Income (Loss) | ||||||||||||||
Available (Attributable) to common shareholders | 210,917 | 189,812 | ||||||||||||
Available (Attributable) to common shareholders per diluted common share | $ | 4.65 | $ | 3.74 | ||||||||||
Operating Income (Loss) (1) | ||||||||||||||
Available (Attributable) to common shareholders | 213,692 | (77,122) | ||||||||||||
Available (Attributable) to common shareholders per diluted common share | $ | 4.71 | $ | (1.59) | ||||||||||
Book value per common share | $ | 132.17 | $ | 138.46 | ||||||||||
Change in book value per share | 2.5 | % | 2.5 | % | ||||||||||
Tangible book value per common share plus accumulated dividends (1) | $ | 149.79 | $ | 155.17 | ||||||||||
Change in tangible book value per common share plus change in accumulated dividends (1) | 2.8% | 3.0% | ||||||||||||
Return on average common equity - annualized | 14.2% | 10.9% | ||||||||||||
Operating return on average common equity - annualized (1) | 14.4% | (4.4)% | ||||||||||||
(1)See “Comments on Regulation G” for a reconciliation of non-GAAP financial measures.
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Three Drivers of Profit: Underwriting, Fee and Investment Income - Fourth Quarter | ||
Underwriting Results - Property Segment: Combined ratio of 64.4%; 10.8 percentage points from weather-related large losses.
Property Segment | ||||||||||||||||||||
| Three months ended December 31 | Q/Q Change | |||||||||||||||||||
| (in thousands, except percentages) | 2021 | 2020 | ||||||||||||||||||
Gross premiums written | $ | 384,657 | $ | 308,315 | 24.8% | |||||||||||||||
Underwriting income (loss) | 223,098 | (130,268) | ||||||||||||||||||
Underwriting Ratios | ||||||||||||||||||||
Net claims and claim expense ratio - current accident year | 43.8 | % | 130.5 | % | (86.7) | pts | ||||||||||||||
Net claims and claim expense ratio - prior accident years | (4.9) | % | (24.8) | % | 19.9 | pts | ||||||||||||||
Net claims and claim expense ratio - calendar year | 38.9 | % | 105.7 | % | (66.8) | pts | ||||||||||||||
Underwriting expense ratio | 25.5 | % | 19.9 | % | 5.6 | pts | ||||||||||||||
Combined ratio | 64.4 | % | 125.6 | % | (61.2) | pts | ||||||||||||||
•Gross premiums written increased 24.8%, driven by:
–Growth in the other property class of business of $127.7 million, or 51.2%, principally as a result of rate improvements driving growth in new and existing business, notably within catastrophe exposed U.S. property excess and surplus lines; partially offset by a
–Decrease in property catastrophe class of business of $51.3 million, or 86.8%, primarily due to a decrease in reinstatement premiums.
•Ceded premiums written were $9.5 million, a decrease of $19.0 million, or 66.6%. This decrease was primarily driven by the non-renewal of certain deals ceded to Upsilon RFO Re Ltd. (“Upsilon RFO”).
•The net claims and claim expense ratio - current accident year decreased 86.7 percentage points, primarily as a result of COVID-19 losses in the fourth quarter of 2020, combined with a lower amount of weather-related losses in the fourth quarter of 2021.
•The net claims and claim expense ratio - prior accident year reflected net favorable development primarily from weather-related large losses in the 2017 to 2019 accident years.
•Underwriting expense ratio increased 5.6 percentage points, driven by lower profit commissions and a lower impact to the ratio from reinstatement premiums, as well as changes in the mix of business due to continued growth in the other property class of business.
•Underwriting income of $223.1 million and a combined ratio of 64.4% included weather-related large losses which had a $68.4 million net negative impact on the Property segment underwriting result and added 10.8 percentage points to the combined ratio in the fourth quarter of 2021.
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Underwriting Results - Casualty and Specialty Segment: Grew gross premiums written by 48.0% and reported a combined ratio of 92.5%
Casualty and Specialty Segment | ||||||||||||||||||||
| Three months ended December 31 | Q/Q Change | |||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | ||||||||||||||||||
Gross premiums written | $ | 928,361 | $ | 627,199 | 48.0% | |||||||||||||||
Underwriting income (loss) | 53,563 | (21,387) | ||||||||||||||||||
Underwriting Ratios | ||||||||||||||||||||
Net claims and claim expense ratio - current accident year | 63.9 | % | 70.5 | % | (6.6) | pts | ||||||||||||||
Net claims and claim expense ratio - prior accident years | (1.3) | % | (0.5) | % | (0.8) | pts | ||||||||||||||
Net claims and claim expense ratio - calendar year | 62.6 | % | 70.0 | % | (7.4) | pts | ||||||||||||||
Underwriting expense ratio | 29.9 | % | 34.1 | % | (4.2) | pts | ||||||||||||||
Combined ratio | 92.5 | % | 104.1 | % | (11.6) | pts | ||||||||||||||
•Gross premiums written increased 48.0%, primarily driven by growth in professional liability, general casualty and other specialty lines of business. This growth was principally driven by increases in new and existing business written in the current and prior periods, combined with rate improvements.
•Net claims and claim expense ratio declined 7.4 percentage points principally as a result of lower current accident year losses, which in turn were primarily driven by lower attritional losses and lower losses related to the COVID-19 pandemic.
•The underwriting expense ratio decreased 4.2 percentage points driven by a 2.9 percentage point improvement in the net acquisition expense ratio, principally due to changes in the mix of business and estimated profit commissions, combined with a decrease in the operating expense ratio driven by improved operating leverage.
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Fee Income: $30.0 million of fee income; impacted by the 2021 Weather-Related Large Losses
Fee Income | ||||||||||||||||||||
| Three months ended December 31 | Q/Q Change | |||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | ||||||||||||||||||
Total management fee income | $ | 24,723 | $ | 26,778 | $ | (2,055) | ||||||||||||||
Total performance fee income (loss) (1) | 5,299 | 9,128 | (3,829) | |||||||||||||||||
Total fee income | $ | 30,022 | $ | 35,906 | $ | (5,884) | ||||||||||||||
(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.
•Total fee income decreased $5.9 million due to lower management and performance fee income primarily driven by the impact of the 2021 Weather-Related Large Losses on the results of the Company’s joint ventures and managed funds. In addition, management fees were also impacted by a deferral of management fees in DaVinci in the fourth quarter of 2021.
Investment Results: Performance primarily driven by net realized and unrealized losses in the fixed maturity investments portfolio
Investment Results | ||||||||||||||||||||
| Three months ended December 31 | Q/Q Change | |||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | ||||||||||||||||||
| Net investment income | $ | 80,483 | $ | 81,717 | $ | (1,234) | ||||||||||||||
| Net realized and unrealized gains (losses) on investments | (21,518) | 258,745 | (280,263) | |||||||||||||||||
Total investment result | 58,965 | 340,462 | (281,497) | |||||||||||||||||
Total investment return - annualized | 1.1 | % | 6.6 | % | (5.5) | pts | ||||||||||||||
•Total investment result decreased $281.5 million, primarily due to the difference in net realized and unrealized gains (losses) on investments, principally within the fixed maturity and equity investments portfolios.
–In the fourth quarter of 2021, net realized and unrealized losses on fixed maturity investments of $116.7 million were primarily driven by increasing yields on U.S. treasuries; partially offset by net realized and unrealized gains of $73.6 million on equity investments in line with wider equity markets.
–In the fourth quarter of 2020, net realized and unrealized gains on equity investments of $154.3 million were primarily driven by the significant price appreciation in equity markets generally, and in particular in the Company’s strategic investment in Trupanion, Inc. Net realized and unrealized gains on fixed maturity investments of $90.1 million during the quarter were largely driven by tightening credit spreads on certain fixed maturity investments.
•Managed fixed maturity and short-term investment weighted average yield to maturity was 1.2% and average duration was 3.0 years on total consolidated fixed maturity and short-term investments at fair value of $18.8 billion at December 31, 2021.
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Other Items of Note - Fourth Quarter | ||
•Net income attributable to redeemable noncontrolling interests was $68.5 million compared to net loss attributable to redeemable noncontrolling interests of $5.5 million in the fourth quarter of 2020, primarily due to:
–DaVinciRe Holdings Ltd. (“DaVinci”), which had underwriting income in the fourth quarter of 2021 as compared to underwriting losses in the fourth quarter of 2020, and was partially offset by;
–RenaissanceRe Medici Fund Ltd. (“Medici”), which had net loss in the fourth quarter of 2021 as compared to net income in the fourth quarter of 2020. The Medici net loss for the quarter includes net foreign exchange losses that were attributable to third party investors, resulting in net income being retained by the Company.
•Income tax expense of $18.6 million compared to an income tax benefit of $9.9 million in the fourth quarter of 2020. The increase in income tax expense was primarily driven by underwriting income in the Company’s taxable jurisdictions, partially offset by net unrealized investment losses in the Company’s U.S. based operations.
•Net foreign exchange losses of $16.7 million compared to a $23.3 million net foreign exchange gain in the fourth quarter of 2020. The net foreign exchange loss was primarily driven by losses attributable to third-party investors in Medici which are allocated through noncontrolling interests and miscellaneous foreign exchange losses generated by underwriting activities.
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| Consolidated Financial Results - Full Year | ||
Consolidated Highlights | ||||||||||||||
| Twelve months ended December 31 | ||||||||||||||
| (in thousands, except per share amounts and percentages) | 2021 | 2020 | ||||||||||||
| Gross premiums written | $ | 7,833,798 | $ | 5,806,165 | ||||||||||
| Underwriting income (loss) | (108,948) | (76,511) | ||||||||||||
| Combined ratio | 102.1 | % | 101.9 | % | ||||||||||
Net Income (Loss) | ||||||||||||||
Available (Attributable) to common shareholders | $ | (73,421) | $ | 731,482 | ||||||||||
Available (Attributable) to common shareholders per diluted common share | $ | (1.57) | $ | 15.31 | ||||||||||
Operating Income (Loss) (1) | ||||||||||||||
Available (Attributable) to common shareholders | $ | 81,599 | $ | 14,640 | ||||||||||
Available (Attributable) to common shareholders per diluted common share | $ | 1.72 | $ | 0.12 | ||||||||||
Book value per common share | $ | 132.17 | $ | 138.46 | ||||||||||
Change in book value per share | (4.5) | % | 14.9 | % | ||||||||||
Tangible book value per common share plus accumulated dividends (1) | $ | 149.79 | $ | 155.17 | ||||||||||
Change in tangible book value per common share plus change in accumulated dividends (1) | (4.0) | % | 17.9 | % | ||||||||||
| Return on average common equity | (1.1) | % | 11.7 | % | ||||||||||
Operating return on average common equity (1) | 1.3 | % | 0.2 | % | ||||||||||
(1)See “Comments on Regulation G” for a reconciliation of non-GAAP financial measures.
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Net negative impact of the 2021 Weather-Related Large Losses
Net negative impact on underwriting result includes the sum of (1) net claims and claim expenses incurred, (2) assumed and ceded reinstatement premiums earned and (3) earned and lost profit commissions. Net negative impact on net income (loss) available (attributable) to RenaissanceRe common shareholders is the sum of (1) net negative impact on underwriting result and (2) redeemable noncontrolling interest.
Net negative impact on the consolidated financial statements
| Year ended December 31, 2021 | Winter Storm Uri | European Floods | Hurricane Ida | Other 2021 Catastrophe Events (1) | Aggregate Losses (2) | Total 2021 Weather-Related Large Losses (3) | |||||||||||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||||||||||
| Net claims and claims expenses incurred | $ | (358,937) | $ | (360,644) | $ | (741,285) | $ | (85,941) | $ | (161,093) | $ | (1,707,900) | |||||||||||||||||||||||||||||
| Assumed reinstatement premiums earned | 86,626 | 90,346 | 156,061 | 9,939 | 6,140 | $ | 349,112 | ||||||||||||||||||||||||||||||||||
| Ceded reinstatement premiums earned | (11,045) | (16,372) | (27,467) | — | — | $ | (54,884) | ||||||||||||||||||||||||||||||||||
| Earned (lost) profit commissions | 773 | 8,084 | — | 1,645 | — | 10,502 | |||||||||||||||||||||||||||||||||||
| Net negative impact on underwriting result | (282,583) | (278,586) | (612,691) | (74,357) | (154,953) | (1,403,170) | |||||||||||||||||||||||||||||||||||
| Redeemable noncontrolling interest | 101,966 | 84,082 | 200,806 | 17,082 | 37,175 | 441,111 | |||||||||||||||||||||||||||||||||||
| Net negative impact on net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | (180,617) | $ | (194,504) | $ | (411,885) | $ | (57,275) | $ | (117,778) | $ | (962,059) | |||||||||||||||||||||||||||||
Net negative impact on the segment underwriting results and consolidated combined ratio
| Year ended December 31, 2021 | Winter Storm Uri | European Floods | Hurricane Ida | Other 2021 Catastrophe Events (1) | Aggregate Losses (2) | Total 2021 Weather-Related Large Losses (3) | |||||||||||||||||||||||||||||||||||
| (in thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||||
| Net negative impact on Property segment underwriting result | $ | (275,566) | $ | (276,317) | $ | (596,271) | $ | (74,357) | $ | (154,953) | $ | (1,377,464) | |||||||||||||||||||||||||||||
| Net negative impact on Casualty and Specialty segment underwriting result | (7,017) | (2,269) | (16,420) | — | — | (25,706) | |||||||||||||||||||||||||||||||||||
| Net negative impact on underwriting result | $ | (282,583) | $ | (278,586) | $ | (612,691) | $ | (74,357) | $ | (154,953) | $ | (1,403,170) | |||||||||||||||||||||||||||||
| Percentage point impact on consolidated combined ratio | 5.5 | 5.4 | 12.0 | 1.4 | 3.0 | 28.5 | |||||||||||||||||||||||||||||||||||
(1)“Other 2021 Catastrophe Events” includes the hail storm in Europe in late June 2021, the wildfires in California during the third quarter of 2021, the tornadoes in the Central and Midwest U.S. in December 2021, and the Midwest Derecho in December 2021.
(2)“Aggregate Losses” includes loss estimates associated with certain aggregate loss contracts triggered during 2021 as a result of weather-related catastrophe events.
(3)“2021 Weather-Related Large Losses” includes Winter Storm Uri, the European Floods, Hurricane Ida, Other 2021 Catastrophe Events and Aggregate Losses.
Estimates of net negative impact are based on a review of potential exposures, preliminary discussions with certain counterparties and actuarial modeling techniques. Actual net negative impact, both individually and in the aggregate, may vary from these estimates, perhaps materially. Changes in these estimates will be recorded in the period in which they occur.
Meaningful uncertainty remains regarding the estimates and the nature and extent of losses from catastrophe events, driven by the magnitude and recent nature of each event, the geographic areas impacted by the events, relatively limited claims data received to date, the contingent nature of business interruption and other exposures, potential uncertainties relating to reinsurance recoveries, and other factors inherent in loss estimation, among other things.
8
| Three Drivers of Profit: Underwriting, Fee, and Investment Income - Full Year | ||
Underwriting Results - Property Segment: Grew gross premiums written by 32.0%; 2021 Weather-Related Large Losses contributed 58.6 percentage points to the combined ratio
Property Segment | ||||||||||||||||||||
| Twelve months ended December 31 | Y/Y Change | |||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | ||||||||||||||||||
Gross premiums written | $ | 3,958,724 | $ | 2,999,142 | 32.0% | |||||||||||||||
Underwriting income (loss) | (185,504) | 11,021 | ||||||||||||||||||
Underwriting Ratios | ||||||||||||||||||||
Net claims and claim expense ratio - current accident year | 91.9 | % | 82.3 | % | 9.6 | pts | ||||||||||||||
Net claims and claim expense ratio - prior accident years | (9.0) | % | (8.1) | % | (0.9) | pts | ||||||||||||||
Net claims and claim expense ratio - calendar year | 82.9 | % | 74.2 | % | 8.7 | pts | ||||||||||||||
Underwriting expense ratio | 24.2 | % | 25.2 | % | (1.0) | pts | ||||||||||||||
Combined ratio | 107.1 | % | 99.4 | % | 7.7 | pts | ||||||||||||||
•Gross premiums written increased 32.0%, driven by:
–Growth in the other property class of business of $610.6 million, or 54.9%, principally as a result of rate improvements driving growth in new and existing business, notably within catastrophe exposed U.S. property excess and surplus lines.
–Growth in the property catastrophe class of business of $349.0 million, or 18.5%, principally as a result of an increase in reinstatement premiums, rate improvements, and increased shares on existing deals, as well as participation in new deals and opportunities.
◦$339.7 million of reinstatement premiums associated with the 2021 Weather-Related Large Losses, compared to reinstatement premiums of $77.0 million associated with 2020 weather-related large losses and $25.9 million associated with COVID-19 losses in 2020.
•Ceded premiums written were $1.1 billion, an increase of $128.8 million, or 13.4%. This increase was primarily driven by higher gross premiums written in 2021, which were ceded to Upsilon RFO, and ceded reinstatement premiums earned of $54.7 million from the 2021 Weather-Related Large Losses.
•The net claims and claim expense ratio for prior accident years reflected net favorable development of 15.3% for property catastrophe and 2.4% for other property in the year, primarily related to weather-related large losses in the 2017 to 2019 accident years.
•Underwriting loss of $185.5 million and a combined ratio of 107.1%, primarily driven by the 2021 Weather-Related Large Losses, which had a $1.4 billion net negative impact on the Property segment underwriting result and added 58.6 percentage points to the combined ratio.
9
Casualty and Specialty Segment: Grew gross written premium by 38% and reported a combined ratio of 97.0%
Casualty and Specialty Segment | ||||||||||||||||||||
| Twelve months ended December 31 | Y/Y Change | |||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | ||||||||||||||||||
Gross premiums written | $ | 3,875,074 | $ | 2,807,023 | 38.0% | |||||||||||||||
Underwriting income (loss) | 76,556 | (87,532) | ||||||||||||||||||
Underwriting Ratios | ||||||||||||||||||||
Net claims and claim expense ratio - current accident year | 66.9 | % | 75.2 | % | (8.3) | pts | ||||||||||||||
Net claims and claim expense ratio - prior accident years | (0.7) | % | (1.4) | % | 0.7 | pts | ||||||||||||||
Net claims and claim expense ratio - calendar year | 66.2 | % | 73.8 | % | (7.6) | pts | ||||||||||||||
Underwriting expense ratio | 30.8 | % | 30.5 | % | 0.3 | pts | ||||||||||||||
Combined ratio | 97.0 | % | 104.3 | % | (7.3) | pts | ||||||||||||||
•Gross premiums written increased 38.0%, primarily due to growth from new and existing business opportunities written in the current and prior periods across various classes of business within the segment, combined with rate improvements.
•Net claims and claim expense ratio decreased 7.6 percentage points, driven by lower current accident year losses. As compared to 2021, 2020 was impacted by net losses related to the COVID-19 pandemic.
•The underwriting expense ratio increased 0.3 percentage points due to:
–An increase of 1.1 percentage points in the net acquisition expense ratio principally due the effects of purchase accounting amortization in 2020 related to the acquisition of TMR which decreased the acquisition ratio in the prior year period; largely offset by
–Lower operating expense ratio driven by improved operating leverage.
10
Fee Income: $128.5 million of fee income; impacted by 2021 Weather-Related Large Losses
Fee Income | ||||||||||||||||||||
| Twelve months ended December 31 | Y/Y Change | |||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | ||||||||||||||||||
Total management fee income | $ | 109,071 | $ | 111,476 | $ | (2,405) | ||||||||||||||
Total performance fee income (loss) (1) | 19,432 | 33,686 | (14,254) | |||||||||||||||||
Total fee income | $ | 128,503 | $ | 145,162 | $ | (16,659) | ||||||||||||||
(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.
•Total fee income decreased $16.7 million due to lower performance and management fee income in 2021.
–Lower management fee income in 2021 was primarily due to a deferral of management fees in DaVinci as a result of the 2021 Weather-Related Large Losses.
–Lower performance fee income in 2021 was primarily due to the impact of the 2021 Weather-Related Large Losses on the results of the Company’s joint ventures and managed funds, partially offset by higher favorable development on prior year losses in DaVinci.
Investment Results: Performance primarily driven by net realized and unrealized losses in the fixed maturity investments portfolio
Investment Results | ||||||||||||||||||||
| Twelve months ended December 31 | Y/Y Change | |||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | ||||||||||||||||||
Net investment income | $ | 319,479 | $ | 354,038 | $ | (34,559) | ||||||||||||||
Net realized and unrealized gains (losses) on investments | (218,134) | 820,636 | (1,038,770) | |||||||||||||||||
Total investment result | 101,345 | 1,174,674 | (1,073,329) | |||||||||||||||||
Total investment return | 0.5 | % | 5.9 | % | (5.4) | pts | ||||||||||||||
•Total investment result decreased $1.1 billion primarily due to the difference in net realized and unrealized gains (losses) on investments, principally within the fixed maturity and equity investments portfolios.
–Net realized and unrealized losses in 2021 of $322.0 million on fixed maturity investments were primarily driven by increasing yields on U.S. treasuries; partially offset by net realized and unrealized gains of $49.6 million on equity investments.
–In 2020, the total investment result was favorably impacted by the recovery in the financial markets following the disruption associated with the COVID-19 pandemic, resulting in net realized and unrealized gains of $592.4 million on fixed maturity investments and $235.6 million on equity investments.
•Managed fixed maturity and short-term investment weighted average yield to maturity was 1.2% and average duration was 3.0 years on total consolidated fixed maturity and short-term investments at fair value of $18.8 billion at December 31, 2021.
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| Other Items of Note - Full Year and Subsequent Events | ||
•Corporate expenses were $41.2 million, a decrease of $55.8 million, primarily driven by higher non-recurring expenses in 2020 resulting from the loss on sale of RenaissanceRe UK, executive compensation charges, and certain integration and compensation related costs associated with the acquisition of TMR.
•Net loss attributable to redeemable noncontrolling interests was $63.3 million, compared to net income attributable to redeemable noncontrolling interest of $230.7 million in 2020, reflecting the impact of higher underwriting losses in DaVinci, lower underwriting income in Vermeer, and a decrease in Medici net income, primarily due to foreign exchange losses that are attributable to third party investors.
•Income tax benefit of $10.7 million, principally driven by unrealized investment portfolio losses in the Company’s taxable jurisdictions.
•Net foreign exchange losses of $41.0 million compared to a $27.8 million net foreign exchange gain in 2020. The net foreign exchange loss was primarily driven by losses attributable to third party investors in Medici, which are allocated through noncontrolling interest, and miscellaneous foreign exchange losses generated by underwriting activities.
•Raised gross proceeds of $500.0 million in July 2021 through the issuance of 20,000,000 Depositary Shares, each of which represents a 1/1,000th interest in a share of the Company’s 4.20% Series G Preference Shares, $1.00 par value and $25,000 liquidation preference per share (equivalent to $25.00 per Depositary Share). Redeemed all 11,000,000 outstanding 5.375% Series E Preference Shares on August 11, 2021 for $275.0 million plus accrued and unpaid dividends thereon.
•Raised capital of $662.7 million, effective January 1, 2022, through Upsilon RFO, DaVinci and Medici, including $209.7 million from the Company. Following these transactions, the Company’s ownership in Upsilon RFO, DaVinci and Medici was 13.6%, 30.9% and 13.7%, respectively.
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Conference Call Details and Additional Information | ||
Non-GAAP Financial Measures and Additional Financial Information
This Press Release includes certain financial measures that are not calculated in accordance with generally accepted accounting principles in the U.S. (“GAAP”) including “operating Income (loss) available (attributable) to RenaissanceRe common shareholders,” “operating Income (loss) available (attributable) 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.
Conference Call Information
RenaissanceRe will host a conference call on Wednesday, January 26, 2022 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, RenaissanceRe 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 Company’s exposure to natural and non-natural catastrophic events and circumstances and the variance it may cause in the Company’s financial results; the effect of climate change on the Company’s business, including the trend towards increasingly frequent and severe climate events; the effectiveness of the Company’s claims and claim expense reserving process; the effect of emerging claims and coverage issues; the highly competitive nature of the Company’s industry, resulting in consolidation of competitors, customers and (re)insurance brokers, and the Company’s reliance on a small and decreasing number of brokers; the historically cyclical nature of the (re)insurance industries; collection on claimed retrocessional coverage, and new retrocessional reinsurance being available on acceptable terms; the ability of the Company’s ceding companies and delegated authority counterparties to accurately assess the risks they underwrite; the Company’s ability to maintain its financial strength ratings; the impact of large non-recurring contracts and reinstatement premiums on the Company’s financial results; the Company’s ability to attract and retain key executives and employees; the effect of cybersecurity risks, including technology breaches or failure; the performance of the Company’s investment portfolio and financial market volatility; the effects of inflation; the Company’s ability to successfully implement its business strategies and initiatives, and the success of any of the Company’s strategic investments or acquisitions, including its ability to manage its operations as its product and geographical diversity increases; the Company’s exposure to credit loss from counterparties; the Company’s need to make many estimates and judgments in the preparation of its
13
financial statements; the Company’s ability to effectively manage capital on behalf of investors in joint ventures or other entities it manages; changes to the accounting rules and regulatory systems applicable to the Company’s business, including changes in Bermuda laws or regulations or as a result of increased global regulation of the insurance and reinsurance industries; other political, regulatory or industry initiatives adversely impacting the Company; the Company’s ability to comply with covenants in its debt agreements; a contention by the U.S. Internal Revenue Service that any of the Company’s Bermuda subsidiaries are subject to taxation in the U.S.; the effects of U.S. tax reform legislation, Organisation for Economic Co-operation and Development or European Union measures and possible future tax reform legislation and regulations, including changes to the tax treatment of the Company’s shareholders or investors in its joint ventures or other entities it manages; the Company’s ability to determine any impairments taken on its investments; the uncertainty of the continuing and future impact of the COVID-19 pandemic, including measures taken in response thereto and the effect of legislative, regulatory and judicial influences on the Company’s potential reinsurance, insurance and investment exposures, or other effects that it may have; foreign currency exchange rate fluctuations; the Company’s ability to raise capital if necessary; the Company’s ability to comply with applicable sanctions and foreign corrupt practices laws; 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 and other transactions; difficulties investors may have in serving process or enforcing judgments against the Company in the U.S.; and other factors affecting future results disclosed in RenaissanceRe’s filings with the SEC, including its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Prospectus Supplement dated July 7, 2021.
INVESTOR CONTACT: RenaissanceRe Holdings Ltd. Keith McCue Senior Vice President, Finance & Investor Relations (441) 239-4830 | MEDIA CONTACT: RenaissanceRe Holdings Ltd. Keil Gunther Senior Vice President, Head of Global Marketing & Client Communication (441) 239-4932 or Kekst CNC Dawn Dover (212) 521-4800 | ||||
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| RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||
| Summary Consolidated Statements of Operations | |||||||||||||||||||||||
| (in thousands of United States Dollars, except per share amounts and percentages) | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Three months ended | Twelve months ended | ||||||||||||||||||||||
| December 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Gross premiums written | $ | 1,313,018 | $ | 935,514 | $ | 7,833,798 | $ | 5,806,165 | |||||||||||||||
| Net premiums written | $ | 1,116,560 | $ | 746,311 | $ | 5,939,375 | $ | 4,096,333 | |||||||||||||||
| Decrease (increase) in unearned premiums | 224,730 | 282,774 | (745,194) | (143,871) | |||||||||||||||||||
| Net premiums earned | 1,341,290 | 1,029,085 | 5,194,181 | 3,952,462 | |||||||||||||||||||
| Net investment income | 80,483 | 81,717 | 319,479 | 354,038 | |||||||||||||||||||
| Net foreign exchange gains (losses) | (16,697) | 23,270 | (41,006) | 27,773 | |||||||||||||||||||
| Equity in earnings (losses) of other ventures | 3,830 | (1,868) | 12,309 | 17,194 | |||||||||||||||||||
| Other income (loss) | 6,431 | 4,374 | 10,880 | 213 | |||||||||||||||||||
| Net realized and unrealized gains (losses) on investments | (21,518) | 258,745 | (218,134) | 820,636 | |||||||||||||||||||
Total revenues | 1,393,819 | 1,395,323 | 5,277,709 | 5,172,316 | |||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Net claims and claim expenses incurred | 690,970 | 901,353 | 3,876,087 | 2,924,609 | |||||||||||||||||||
| Acquisition expenses | 333,986 | 238,283 | 1,214,858 | 897,677 | |||||||||||||||||||
| Operational expenses | 39,673 | 41,104 | 212,184 | 206,687 | |||||||||||||||||||
| Corporate expenses | 10,426 | 21,031 | 41,152 | 96,970 | |||||||||||||||||||
| Interest expense | 11,872 | 11,841 | 47,536 | 50,453 | |||||||||||||||||||
Total expenses | 1,086,927 | 1,213,612 | 5,391,817 | 4,176,396 | |||||||||||||||||||
| Income (loss) before taxes | 306,892 | 181,711 | (114,108) | 995,920 | |||||||||||||||||||
| Income tax benefit (expense) | (18,616) | 9,923 | 10,668 | (2,862) | |||||||||||||||||||
| Net income (loss) | 288,276 | 191,634 | (103,440) | 993,058 | |||||||||||||||||||
| Net (income) loss attributable to redeemable noncontrolling interests | (68,516) | 5,467 | 63,285 | (230,653) | |||||||||||||||||||
| Net income (loss) attributable to RenaissanceRe | 219,760 | 197,101 | (40,155) | 762,405 | |||||||||||||||||||
| Dividends on preference shares | (8,843) | (7,289) | (33,266) | (30,923) | |||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | 210,917 | $ | 189,812 | $ | (73,421) | $ | 731,482 | |||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – basic | $ | 4.65 | $ | 3.75 | $ | (1.57) | $ | 15.34 | |||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – diluted | $ | 4.65 | $ | 3.74 | $ | (1.57) | $ | 15.31 | |||||||||||||||
Operating (loss) income (attributable) available to RenaissanceRe common shareholders per common share - diluted (1) | $ | 4.71 | $ | (1.59) | $ | 1.72 | $ | 0.12 | |||||||||||||||
Average shares outstanding - basic | 44,722 | 50,022 | 47,171 | 47,103 | |||||||||||||||||||
Average shares outstanding - diluted | 44,748 | 50,111 | 47,171 | 47,178 | |||||||||||||||||||
Net claims and claim expense ratio | 51.5 | % | 87.6 | % | 74.6 | % | 74.0 | % | |||||||||||||||
Underwriting expense ratio | 27.9 | % | 27.1 | % | 27.5 | % | 27.9 | % | |||||||||||||||
Combined ratio | 79.4 | % | 114.7 | % | 102.1 | % | 101.9 | % | |||||||||||||||
Return on average common equity - annualized | 14.2 | % | 10.9 | % | (1.1) | % | 11.7 | % | |||||||||||||||
Operating return on average common equity - annualized (1) | 14.4 | % | (4.4) | % | 1.3 | % | 0.2 | % | |||||||||||||||
(1) See Comments on Regulation G for a reconciliation of non-GAAP financial measures.
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| RenaissanceRe Holdings Ltd. | |||||||||||
| Summary Consolidated Balance Sheets | |||||||||||
| (in thousands of United States Dollars, except per share amounts) | |||||||||||
| December 31, 2021 | December 31, 2020 | ||||||||||
| Assets | (Unaudited) | (Audited) | |||||||||
| Fixed maturity investments trading, at fair value | $ | 13,507,131 | $ | 13,506,503 | |||||||
| Short term investments, at fair value | 5,298,385 | 4,993,735 | |||||||||
| Equity investments trading, at fair value | 546,016 | 702,617 | |||||||||
| Other investments, at fair value | 1,993,059 | 1,256,948 | |||||||||
| Investments in other ventures, under equity method | 98,068 | 98,373 | |||||||||
| Total investments | 21,442,659 | 20,558,176 | |||||||||
| Cash and cash equivalents | 1,859,019 | 1,736,813 | |||||||||
| Premiums receivable | 3,781,542 | 2,894,631 | |||||||||
| Prepaid reinsurance premiums | 854,722 | 823,582 | |||||||||
| Reinsurance recoverable | 4,268,669 | 2,926,010 | |||||||||
| Accrued investment income | 55,740 | 66,743 | |||||||||
| Deferred acquisition costs and value of business acquired | 849,160 | 633,521 | |||||||||
| Receivable for investments sold | 380,442 | 568,293 | |||||||||
| Other assets | 224,053 | 363,170 | |||||||||
| Goodwill and other intangible assets | 243,496 | 249,641 | |||||||||
| Total assets | $ | 33,959,502 | $ | 30,820,580 | |||||||
| Liabilities, Noncontrolling Interests and Shareholders’ Equity | |||||||||||
| Liabilities | |||||||||||
| Reserve for claims and claim expenses | $ | 13,294,630 | $ | 10,381,138 | |||||||
| Unearned premiums | 3,531,213 | 2,763,599 | |||||||||
| Debt | 1,168,353 | 1,136,265 | |||||||||
| Reinsurance balances payable | 3,860,963 | 3,488,352 | |||||||||
| Payable for investments purchased | 1,170,568 | 1,132,538 | |||||||||
| Other liabilities | 755,441 | 970,121 | |||||||||
| Total liabilities | 23,781,168 | 19,872,013 | |||||||||
| Redeemable noncontrolling interests | 3,554,053 | 3,388,319 | |||||||||
| Shareholders’ Equity | |||||||||||
| Preference shares | 750,000 | 525,000 | |||||||||
| Common shares | 44,445 | 50,811 | |||||||||
| Additional paid-in capital | 608,121 | 1,623,206 | |||||||||
| Accumulated other comprehensive loss | (10,909) | (12,642) | |||||||||
| Retained earnings | 5,232,624 | 5,373,873 | |||||||||
| Total shareholders’ equity attributable to RenaissanceRe | 6,624,281 | 7,560,248 | |||||||||
| Total liabilities, noncontrolling interests and shareholders’ equity | $ | 33,959,502 | $ | 30,820,580 | |||||||
| Book value per common share | $ | 132.17 | $ | 138.46 | |||||||
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| RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||
| Supplemental Financial Data - Segment Information | |||||||||||||||||||||||
| (in thousands of United States Dollars, except percentages) | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Three months ended December 31, 2021 | |||||||||||||||||||||||
| Property | Casualty and Specialty | Other | Total | ||||||||||||||||||||
| Gross premiums written | $ | 384,657 | $ | 928,361 | $ | — | $ | 1,313,018 | |||||||||||||||
| Net premiums written | $ | 375,112 | $ | 741,448 | $ | — | $ | 1,116,560 | |||||||||||||||
| Net premiums earned | $ | 626,359 | $ | 714,931 | $ | — | $ | 1,341,290 | |||||||||||||||
| Net claims and claim expenses incurred | 243,356 | 447,614 | — | 690,970 | |||||||||||||||||||
| Acquisition expenses | 131,007 | 202,979 | — | 333,986 | |||||||||||||||||||
| Operational expenses | 28,898 | 10,775 | — | 39,673 | |||||||||||||||||||
| Underwriting income (loss) | $ | 223,098 | $ | 53,563 | $ | — | 276,661 | ||||||||||||||||
| Net investment income | 80,483 | 80,483 | |||||||||||||||||||||
| Net foreign exchange gain (loss) | (16,697) | (16,697) | |||||||||||||||||||||
| Equity in earnings of other ventures | 3,830 | 3,830 | |||||||||||||||||||||
| Other income (loss) | 6,431 | 6,431 | |||||||||||||||||||||
| Net realized and unrealized gain (loss) on investments | (21,518) | (21,518) | |||||||||||||||||||||
| Corporate expenses | (10,426) | (10,426) | |||||||||||||||||||||
| Interest expense | (11,872) | (11,872) | |||||||||||||||||||||
| Income (loss) before taxes and redeemable noncontrolling interests | 306,892 | ||||||||||||||||||||||
| Income tax benefit (expense) | (18,616) | (18,616) | |||||||||||||||||||||
| Net (income) loss attributable to redeemable noncontrolling interests | (68,516) | (68,516) | |||||||||||||||||||||
| Dividends on preference shares | (8,843) | (8,843) | |||||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | 210,917 | |||||||||||||||||||||
| Net claims and claim expenses incurred – current accident year | $ | 274,649 | $ | 457,080 | $ | — | $ | 731,729 | |||||||||||||||
| Net claims and claim expenses incurred – prior accident years | (31,293) | (9,466) | — | (40,759) | |||||||||||||||||||
| Net claims and claim expenses incurred – total | $ | 243,356 | $ | 447,614 | $ | — | $ | 690,970 | |||||||||||||||
| Net claims and claim expense ratio – current accident year | 43.8 | % | 63.9 | % | 54.6 | % | |||||||||||||||||
| Net claims and claim expense ratio – prior accident years | (4.9) | % | (1.3) | % | (3.1) | % | |||||||||||||||||
| Net claims and claim expense ratio – calendar year | 38.9 | % | 62.6 | % | 51.5 | % | |||||||||||||||||
| Underwriting expense ratio | 25.5 | % | 29.9 | % | 27.9 | % | |||||||||||||||||
| Combined ratio | 64.4 | % | 92.5 | % | 79.4 | % | |||||||||||||||||
| Three months ended December 31, 2020 | |||||||||||||||||||||||
| Property | Casualty and Specialty | Other | Total | ||||||||||||||||||||
| Gross premiums written | $ | 308,315 | $ | 627,199 | $ | — | $ | 935,514 | |||||||||||||||
| Net premiums written | $ | 279,773 | $ | 466,538 | $ | — | $ | 746,311 | |||||||||||||||
| Net premiums earned | $ | 507,141 | $ | 521,944 | $ | — | $ | 1,029,085 | |||||||||||||||
| Net claims and claim expenses incurred | 536,218 | 365,135 | — | 901,353 | |||||||||||||||||||
| Acquisition expenses | 75,032 | 163,251 | — | 238,283 | |||||||||||||||||||
| Operational expenses | 26,159 | 14,945 | — | 41,104 | |||||||||||||||||||
| Underwriting income (loss) | $ | (130,268) | $ | (21,387) | $ | — | (151,655) | ||||||||||||||||
| Net investment income | 81,717 | 81,717 | |||||||||||||||||||||
| Net foreign exchange gain (loss) | 23,270 | 23,270 | |||||||||||||||||||||
| Equity in earnings of other ventures | (1,868) | (1,868) | |||||||||||||||||||||
| Other income (loss) | 4,374 | 4,374 | |||||||||||||||||||||
| Net realized and unrealized gain (loss) on investments | 258,745 | 258,745 | |||||||||||||||||||||
| Corporate expenses | (21,031) | (21,031) | |||||||||||||||||||||
| Interest expense | (11,841) | (11,841) | |||||||||||||||||||||
| Income (loss) before taxes and redeemable noncontrolling interests | 181,711 | ||||||||||||||||||||||
| Income tax benefit (expense) | 9,923 | 9,923 | |||||||||||||||||||||
| Net (income) loss attributable to redeemable noncontrolling interests | 5,467 | 5,467 | |||||||||||||||||||||
| Dividends on preference shares | (7,289) | (7,289) | |||||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | 189,812 | |||||||||||||||||||||
| Net claims and claim expenses incurred – current accident year | $ | 661,711 | $ | 368,071 | $ | — | $ | 1,029,782 | |||||||||||||||
| Net claims and claim expenses incurred – prior accident years | (125,493) | (2,936) | — | (128,429) | |||||||||||||||||||
| Net claims and claim expenses incurred – total | $ | 536,218 | $ | 365,135 | $ | — | $ | 901,353 | |||||||||||||||
| Net claims and claim expense ratio – current accident year | 130.5 | % | 70.5 | % | 100.1 | % | |||||||||||||||||
| Net claims and claim expense ratio – prior accident years | (24.8) | % | (0.5) | % | (12.5) | % | |||||||||||||||||
| Net claims and claim expense ratio – calendar year | 105.7 | % | 70.0 | % | 87.6 | % | |||||||||||||||||
| Underwriting expense ratio | 19.9 | % | 34.1 | % | 27.1 | % | |||||||||||||||||
| Combined ratio | 125.6 | % | 104.1 | % | 114.7 | % | |||||||||||||||||
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| RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||
| Supplemental Financial Data - Segment Information | |||||||||||||||||||||||
| (in thousands of United States Dollars, except percentages) | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Year ended December 31, 2021 | |||||||||||||||||||||||
| Property | Casualty and Specialty | Other | Total | ||||||||||||||||||||
| Gross premiums written | $ | 3,958,724 | $ | 3,875,074 | $ | — | $ | 7,833,798 | |||||||||||||||
| Net premiums written | $ | 2,868,002 | $ | 3,071,373 | $ | — | $ | 5,939,375 | |||||||||||||||
| Net premiums earned | $ | 2,608,298 | $ | 2,585,883 | $ | — | $ | 5,194,181 | |||||||||||||||
| Net claims and claim expenses incurred | 2,163,016 | 1,713,071 | — | 3,876,087 | |||||||||||||||||||
| Acquisition expenses | 487,178 | 727,680 | — | 1,214,858 | |||||||||||||||||||
| Operational expenses | 143,608 | 68,576 | — | 212,184 | |||||||||||||||||||
| Underwriting income (loss) | $ | (185,504) | $ | 76,556 | $ | — | (108,948) | ||||||||||||||||
| Net investment income | 319,479 | 319,479 | |||||||||||||||||||||
| Net foreign exchange gain (loss) | (41,006) | (41,006) | |||||||||||||||||||||
| Equity in earnings of other ventures | 12,309 | 12,309 | |||||||||||||||||||||
| Other income (loss) | 10,880 | 10,880 | |||||||||||||||||||||
| Net realized and unrealized gain (loss) on investments | (218,134) | (218,134) | |||||||||||||||||||||
| Corporate expenses | (41,152) | (41,152) | |||||||||||||||||||||
| Interest expense | (47,536) | (47,536) | |||||||||||||||||||||
| Income (loss) before taxes and redeemable noncontrolling interests | (114,108) | ||||||||||||||||||||||
| Income tax benefit (expense) | 10,668 | 10,668 | |||||||||||||||||||||
| Net (income) loss attributable to redeemable noncontrolling interests | 63,285 | 63,285 | |||||||||||||||||||||
| Dividends on preference shares | (33,266) | (33,266) | |||||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | (73,421) | |||||||||||||||||||||
| Net claims and claim expenses incurred – current accident year | $ | 2,396,389 | $ | 1,729,168 | $ | — | $ | 4,125,557 | |||||||||||||||
| Net claims and claim expenses incurred – prior accident years | (233,373) | (16,097) | — | (249,470) | |||||||||||||||||||
| Net claims and claim expenses incurred – total | $ | 2,163,016 | $ | 1,713,071 | $ | — | $ | 3,876,087 | |||||||||||||||
| Net claims and claim expense ratio – current accident year | 91.9 | % | 66.9 | % | 79.4 | % | |||||||||||||||||
| Net claims and claim expense ratio – prior accident years | (9.0) | % | (0.7) | % | (4.8) | % | |||||||||||||||||
| Net claims and claim expense ratio – calendar year | 82.9 | % | 66.2 | % | 74.6 | % | |||||||||||||||||
| Underwriting expense ratio | 24.2 | % | 30.8 | % | 27.5 | % | |||||||||||||||||
| Combined ratio | 107.1 | % | 97.0 | % | 102.1 | % | |||||||||||||||||
| Year ended December 31, 2020 | |||||||||||||||||||||||
| Property | Casualty and Specialty | Other | Total | ||||||||||||||||||||
| Gross premiums written | $ | 2,999,142 | $ | 2,807,023 | $ | — | $ | 5,806,165 | |||||||||||||||
| Net premiums written | $ | 2,037,200 | $ | 2,059,133 | $ | — | $ | 4,096,333 | |||||||||||||||
| Net premiums earned | $ | 1,936,215 | $ | 2,016,247 | $ | — | $ | 3,952,462 | |||||||||||||||
| Net claims and claim expenses incurred | 1,435,947 | 1,488,662 | — | 2,924,609 | |||||||||||||||||||
| Acquisition expenses | 353,700 | 543,977 | — | 897,677 | |||||||||||||||||||
| Operational expenses | 135,547 | 71,140 | — | 206,687 | |||||||||||||||||||
| Underwriting income (loss) | $ | 11,021 | $ | (87,532) | $ | — | (76,511) | ||||||||||||||||
| Net investment income | 354,038 | 354,038 | |||||||||||||||||||||
| Net foreign exchange gain (loss) | 27,773 | 27,773 | |||||||||||||||||||||
| Equity in earnings of other ventures | 17,194 | 17,194 | |||||||||||||||||||||
| Other income (loss) | 213 | 213 | |||||||||||||||||||||
| Net realized and unrealized gain (loss) on investments | 820,636 | 820,636 | |||||||||||||||||||||
| Corporate expenses | (96,970) | (96,970) | |||||||||||||||||||||
| Interest expense | (50,453) | (50,453) | |||||||||||||||||||||
| Income (loss) before taxes and redeemable noncontrolling interests | 995,920 | ||||||||||||||||||||||
| Income tax benefit (expense) | (2,862) | (2,862) | |||||||||||||||||||||
| Net (income) loss attributable to redeemable noncontrolling interests | (230,653) | (230,653) | |||||||||||||||||||||
| Dividends on preference shares | (30,923) | (30,923) | |||||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | 731,482 | |||||||||||||||||||||
| Net claims and claim expenses incurred – current accident year | $ | 1,592,996 | $ | 1,515,425 | $ | — | $ | 3,108,421 | |||||||||||||||
| Net claims and claim expenses incurred – prior accident years | (157,049) | (26,763) | — | (183,812) | |||||||||||||||||||
| Net claims and claim expenses incurred – total | $ | 1,435,947 | $ | 1,488,662 | $ | — | $ | 2,924,609 | |||||||||||||||
| Net claims and claim expense ratio – current accident year | 82.3 | % | 75.2 | % | 78.6 | % | |||||||||||||||||
| Net claims and claim expense ratio – prior accident years | (8.1) | % | (1.4) | % | (4.6) | % | |||||||||||||||||
| Net claims and claim expense ratio – calendar year | 74.2 | % | 73.8 | % | 74.0 | % | |||||||||||||||||
| Underwriting expense ratio | 25.2 | % | 30.5 | % | 27.9 | % | |||||||||||||||||
| Combined ratio | 99.4 | % | 104.3 | % | 101.9 | % | |||||||||||||||||
18
| RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||
| Supplemental Financial Data - Gross Premiums Written | |||||||||||||||||||||||
| (in thousands of United States Dollars) | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Three months ended | Twelve months ended | ||||||||||||||||||||||
| December 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | ||||||||||||||||||||
| Property Segment | |||||||||||||||||||||||
| Catastrophe | $ | 7,795 | $ | 59,120 | $ | 2,235,736 | $ | 1,886,785 | |||||||||||||||
| Other property | 376,862 | 249,195 | 1,722,988 | 1,112,357 | |||||||||||||||||||
Property segment gross premiums written | $ | 384,657 | $ | 308,315 | $ | 3,958,724 | $ | 2,999,142 | |||||||||||||||
| Casualty and Specialty Segment | |||||||||||||||||||||||
General casualty (1) | $ | 281,926 | $ | 190,996 | $ | 1,258,536 | $ | 904,594 | |||||||||||||||
Professional liability (2) | 333,257 | 207,437 | 1,283,864 | 836,120 | |||||||||||||||||||
Financial lines (3) | 139,799 | 122,023 | 498,946 | 514,192 | |||||||||||||||||||
Other (4) | 173,379 | 106,743 | 833,728 | 552,117 | |||||||||||||||||||
Casualty and Specialty segment gross premiums written | $ | 928,361 | $ | 627,199 | $ | 3,875,074 | $ | 2,807,023 | |||||||||||||||
| (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. | ||||
19
| RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||
| Supplemental Financial Data - Total Investment Result | |||||||||||||||||||||||
| (in thousands of United States Dollars, except percentages) | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Three months ended | Twelve months ended | ||||||||||||||||||||||
| December 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | ||||||||||||||||||||
| Fixed maturity investments trading | $ | 55,643 | $ | 66,912 | $ | 234,911 | $ | 278,215 | |||||||||||||||
| Short term investments | 464 | 1,047 | 2,333 | 20,799 | |||||||||||||||||||
| Equity investments trading | 4,077 | 1,628 | 9,017 | 6,404 | |||||||||||||||||||
| Other investments | |||||||||||||||||||||||
| Catastrophe bonds | 16,527 | 13,500 | 64,860 | 54,784 | |||||||||||||||||||
| Other | 8,100 | 4,083 | 28,811 | 9,417 | |||||||||||||||||||
| Cash and cash equivalents | 74 | 192 | 297 | 2,974 | |||||||||||||||||||
| 84,885 | 87,362 | 340,229 | 372,593 | ||||||||||||||||||||
| Investment expenses | (4,402) | (5,645) | (20,750) | (18,555) | |||||||||||||||||||
| Net investment income | 80,483 | 81,717 | 319,479 | 354,038 | |||||||||||||||||||
| Net realized and unrealized gains (losses) on: | |||||||||||||||||||||||
Fixed maturity investments trading, net of investments-related derivatives (1) | (116,689) | 90,132 | (322,025) | 592,412 | |||||||||||||||||||
Equity investments trading, net of investments-related derivatives (1) | 73,645 | 154,306 | 49,609 | 235,552 | |||||||||||||||||||
| Other investments | |||||||||||||||||||||||
| Catastrophe bonds | (9,958) | (9,742) | (35,033) | (7,031) | |||||||||||||||||||
| Other | 31,484 | 24,049 | 89,315 | (297) | |||||||||||||||||||
| Net realized and unrealized gains (losses) on investments | (21,518) | 258,745 | (218,134) | 820,636 | |||||||||||||||||||
| Total investment result | $ | 58,965 | $ | 340,462 | $ | 101,345 | $ | 1,174,674 | |||||||||||||||
| Total investment return - annualized | 1.1 | % | 6.6 | % | 0.5 | % | 5.9 | % | |||||||||||||||
(1) Net realized and unrealized gains (losses) on fixed maturity investments trading includes the impacts of interest rate futures, interest rate swaps, credit default swaps and total return swaps. Net realized and unrealized gains (losses) on equity investments trading includes the impact of equity futures.
20
| 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.
Operating Income (Loss) Available (Attributable) to RenaissanceRe Common Shareholders and Operating Return on Average Common Equity - Annualized
The Company uses “operating Income (loss) available (attributable) 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 (loss) available (attributable) to RenaissanceRe common shareholders” as used herein differs from “net income (loss) 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, excluding other investments - catastrophe bonds, net foreign exchange gains and losses, corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe (UK) Limited (“RenaissanceRe UK”), the income tax expense or benefit associated with these adjustments and the portion of these adjustments attributable to the Company’s redeemable noncontrolling interests. The Company’s management believes that “operating Income (loss) available (attributable) 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 fair value of the Company’s fixed maturity investment portfolio, equity investments trading, other investments (excluding catastrophe bonds) and investments-related derivatives; fluctuations in foreign exchange rates; corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe UK; the associated income tax expense or benefit of these adjustments; and the portion of these adjustments attributable to the Company’s redeemable noncontrolling interests. The Company also uses “operating Income (loss) available (attributable) to RenaissanceRe common shareholders” to calculate “operating Income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted” and “operating return on average common equity - annualized.” The following table is a reconciliation of: (1) net income (loss) attributable to RenaissanceRe common shareholders to “operating Income (loss) available (attributable) to RenaissanceRe common shareholders”; (2) net income (loss) attributable to RenaissanceRe common shareholders per common share - diluted to “operating Income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted”; and (3) return on average common equity - annualized to “operating return on average common equity - annualized.” Comparative information for all prior periods has been updated to conform to the current methodology and presentation.
21
| Three months ended | Twelve months ended | ||||||||||||||||||||||
| (in thousands of United States Dollars, except per share amounts and percentages) | December 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | 210,917 | $ | 189,812 | $ | (73,421) | $ | 731,482 | |||||||||||||||
| Adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds | 11,560 | (268,487) | 183,101 | (827,667) | |||||||||||||||||||
| Adjustment for net foreign exchange losses (gains) | 16,697 | (23,270) | 41,006 | (27,773) | |||||||||||||||||||
| Adjustment for corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe UK | — | 7,346 | 135 | 47,964 | |||||||||||||||||||
Adjustment for income tax expense (benefit) (1) | (3,628) | 7,723 | (11,521) | 29,863 | |||||||||||||||||||
Adjustment for net income (loss) attributable to redeemable noncontrolling interests (2) | (21,854) | 9,754 | (57,701) | 60,771 | |||||||||||||||||||
| Operating income (loss) available (attributable) to RenaissanceRe common shareholders | $ | 213,692 | $ | (77,122) | $ | 81,599 | $ | 14,640 | |||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted | $ | 4.65 | $ | 3.74 | $ | (1.57) | $ | 15.31 | |||||||||||||||
| Adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds | 0.26 | (5.36) | 3.88 | (17.54) | |||||||||||||||||||
| Adjustment for net foreign exchange losses (gains) | 0.37 | (0.46) | 0.87 | (0.59) | |||||||||||||||||||
| Adjustment for corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe UK | — | 0.15 | — | 1.02 | |||||||||||||||||||
Adjustment for income tax expense (benefit) (1) | (0.08) | 0.15 | (0.24) | 0.63 | |||||||||||||||||||
Adjustment for net income (loss) attributable to redeemable noncontrolling interests (2) | (0.49) | 0.19 | (1.22) | 1.29 | |||||||||||||||||||
| Operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted | $ | 4.71 | $ | (1.59) | $ | 1.72 | $ | 0.12 | |||||||||||||||
| Return on average common equity - annualized | 14.2 | % | 10.9 | % | (1.1) | % | 11.7 | % | |||||||||||||||
| Adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds | 0.8 | % | (15.4) | % | 2.9 | % | (13.4) | % | |||||||||||||||
| Adjustment for net foreign exchange losses (gains) | 1.1 | % | (1.3) | % | 0.6 | % | (0.4) | % | |||||||||||||||
| Adjustment for corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe UK | — | % | 0.4 | % | — | % | 0.8 | % | |||||||||||||||
Adjustment for income tax expense (benefit) (1) | (0.2) | % | 0.4 | % | (0.2) | % | 0.5 | % | |||||||||||||||
Adjustment for net income (loss) attributable to redeemable noncontrolling interests (2) | (1.5) | % | 0.6 | % | (0.9) | % | 1.0 | % | |||||||||||||||
Operating return on average common equity - annualized | 14.4 | % | (4.4) | % | 1.3 | % | 0.2 | % | |||||||||||||||
(1) Adjustment for income tax expense (benefit) represents the income tax (expense) benefit associated with the adjustments to net income 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) Represents the portion of these adjustments that are attributable to the Company's redeemable noncontrolling interests, including the income tax impact of those adjustments.
22
Tangible Book Value Per Common Share and Tangible Book Value Per Common Share Plus Accumulated Dividends
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 table 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.”
| December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Book value per common share | $ | 132.17 | $ | 128.91 | $ | 139.35 | $ | 131.15 | $ | 138.46 | |||||||||||||||||||
Adjustment for goodwill and other intangibles (1) | (5.90) | (5.67) | (5.60) | (5.42) | (5.37) | ||||||||||||||||||||||||
Tangible book value per common share | 126.27 | 123.24 | 133.75 | 125.73 | 133.09 | ||||||||||||||||||||||||
Adjustment for accumulated dividends | 23.52 | 23.16 | 22.80 | 22.44 | 22.08 | ||||||||||||||||||||||||
Tangible book value per common share plus accumulated dividends | $ | 149.79 | $ | 146.40 | $ | 156.55 | $ | 148.17 | $ | 155.17 | |||||||||||||||||||
Quarterly change in book value per common share | 2.5 | % | (7.5) | % | 6.3 | % | (5.3) | % | 2.5 | % | |||||||||||||||||||
Quarterly change in tangible book value per common share plus change in accumulated dividends | 2.8 | % | (7.6) | % | 6.7 | % | (5.3) | % | 3.0 | % | |||||||||||||||||||
| Year to date change in book value per common share | (4.5) | % | (6.9) | % | 0.6 | % | (5.3) | % | 14.9 | % | |||||||||||||||||||
Year to date change in tangible book value per common share plus change in accumulated dividends | (4.0) | % | (6.6) | % | 1.0 | % | (5.3) | % | 17.9 | % | |||||||||||||||||||
(1) At December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, goodwill and other intangibles included $18.6 million, $19.0 million, $22.4 million, $22.7 million, and $23.0 million, respectively, of goodwill and other intangibles included in investments in other ventures, under equity method.
23
| RenaissanceRe Holdings Ltd. | ||
| Contents | ||
| Page | |||||||||||
| Basis of Presentation | |||||||||||
| Financial Highlights | |||||||||||
| Summary Consolidated Financial Statements | |||||||||||
| a. | Consolidated Statements of Operations | ||||||||||
| b. | Consolidated Balance Sheets | ||||||||||
| Underwriting and Reserves | |||||||||||
| a. | Consolidated Segment Underwriting Results | ||||||||||
| b. | Segment Underwriting Results | ||||||||||
| c. | Property Segment - Catastrophe and Other Property Underwriting Results | ||||||||||
| d. | Gross Premiums Written | ||||||||||
| e. | Reserves for Claims and Claim Expenses | ||||||||||
| f. | Paid to Incurred Analysis | ||||||||||
| Managed Joint Ventures and Fee Income | |||||||||||
| a. | Fee Income | ||||||||||
| b. | Noncontrolling Interests | ||||||||||
| c. | DaVinciRe Holdings Ltd. and Subsidiary Consolidated Statements of Operations | ||||||||||
| Investments | |||||||||||
| a. | Total Investment Result | ||||||||||
| b. | Investment Portfolio - Composition | ||||||||||
| c. | Investment Portfolio - Fixed Maturity Investments | ||||||||||
| d. | Investment Portfolio - Weighted Average Yield to Maturity and Credit Rating | ||||||||||
| e. | Retained Investment Information | ||||||||||
| Other Items | |||||||||||
| a. | Earnings per Share | ||||||||||
| Comments on Regulation G | |||||||||||
| 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.
This financial supplement includes certain financial measures that are not calculated in accordance with generally accepted accounting principles in the U.S. (“GAAP”) including “operating income (loss) available (attributable) to RenaissanceRe common shareholders,” “operating income (loss) available (attributable) 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 investment result” and “retained fixed maturity and short term investments, at fair value.” 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, its Quarterly Reports on Form 10-Q and prospectus supplement dated July 7, 2021.
All information contained herein is unaudited. Unless otherwise noted, amounts are in thousands of United States Dollars, 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 | ||||||||
| Financial Highlights | |||||||||||||||||||||||||||||||||||||||||
| Three months ended | Twelve months ended | ||||||||||||||||||||||||||||||||||||||||
| December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||
| Highlights | |||||||||||||||||||||||||||||||||||||||||
| Gross premiums written | $ | 1,313,018 | $ | 1,774,180 | $ | 2,094,158 | $ | 2,652,442 | $ | 935,514 | $ | 7,833,798 | $ | 5,806,165 | |||||||||||||||||||||||||||
| Underwriting income (loss) | $ | 276,661 | $ | (678,825) | $ | 328,976 | $ | (35,760) | $ | (151,655) | $ | (108,948) | $ | (76,511) | |||||||||||||||||||||||||||
| Net investment income | $ | 80,483 | $ | 78,267 | $ | 80,925 | $ | 79,804 | $ | 81,717 | $ | 319,479 | $ | 354,038 | |||||||||||||||||||||||||||
| Net realized and unrealized gains (losses) on investments | (21,518) | (42,071) | 191,018 | (345,563) | 258,745 | (218,134) | 820,636 | ||||||||||||||||||||||||||||||||||
Total investment result | $ | 58,965 | $ | 36,196 | $ | 271,943 | $ | (265,759) | $ | 340,462 | $ | 101,345 | $ | 1,174,674 | |||||||||||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | 210,917 | $ | (450,222) | $ | 456,818 | $ | (290,934) | $ | 189,812 | $ | (73,421) | $ | 731,482 | |||||||||||||||||||||||||||
Operating income (loss) available (attributable) to RenaissanceRe common shareholders (1) | $ | 213,692 | $ | (414,538) | $ | 278,050 | $ | 4,395 | $ | (77,122) | $ | 81,599 | $ | 14,640 | |||||||||||||||||||||||||||
| Per share data | |||||||||||||||||||||||||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - basic | $ | 4.65 | $ | (9.75) | $ | 9.36 | $ | (5.87) | $ | 3.75 | $ | (1.57) | $ | 15.34 | |||||||||||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted | $ | 4.65 | $ | (9.75) | $ | 9.35 | $ | (5.87) | $ | 3.74 | $ | (1.57) | $ | 15.31 | |||||||||||||||||||||||||||
Operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted (1) | $ | 4.71 | $ | (8.98) | $ | 5.64 | $ | 0.09 | $ | (1.59) | $ | 1.72 | $ | 0.12 | |||||||||||||||||||||||||||
| Book value per common share | $ | 132.17 | $ | 128.91 | $ | 139.35 | $ | 131.15 | $ | 138.46 | $ | 132.17 | $ | 138.46 | |||||||||||||||||||||||||||
Tangible book value per common share (1) | $ | 126.27 | $ | 123.24 | $ | 133.75 | $ | 125.73 | $ | 133.09 | $ | 126.27 | $ | 133.09 | |||||||||||||||||||||||||||
Tangible book value per common share plus accumulated dividends (1) | $ | 149.79 | $ | 146.40 | $ | 156.55 | $ | 148.17 | $ | 155.17 | $ | 149.79 | $ | 155.17 | |||||||||||||||||||||||||||
Change in tangible book value per common share plus change in accumulated dividends (1) | 2.8 | % | (7.6) | % | 6.7 | % | (5.3) | % | 3.0 | % | (4.0) | % | 17.9 | % | |||||||||||||||||||||||||||
| Financial ratios | |||||||||||||||||||||||||||||||||||||||||
| Combined ratio | 79.4 | % | 145.1 | % | 72.4 | % | 103.1 | % | 114.7 | % | 102.1 | % | 101.9 | % | |||||||||||||||||||||||||||
| Return on average common equity - annualized | 14.2 | % | (28.4) | % | 27.6 | % | (17.1) | % | 10.9 | % | (1.1) | % | 11.7 | % | |||||||||||||||||||||||||||
Operating return on average common equity - annualized (1) | 14.4 | % | (26.1) | % | 16.8 | % | 0.3 | % | (4.4) | % | 1.3 | % | 0.2 | % | |||||||||||||||||||||||||||
| Total investment return - annualized | 1.1 | % | 0.7 | % | 5.2 | % | (4.9) | % | 6.6 | % | 0.5 | % | 5.9 | % | |||||||||||||||||||||||||||
(1) See “Comments on Regulation G” for a reconciliation of non-GAAP financial measures.
1 | | |||||||
| Summary Consolidated Financial Statements | |||||||||||||||||||||||||||||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||||||||||||||||||||||||||||
| Three months ended | Twelve months ended | ||||||||||||||||||||||||||||||||||||||||
| December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||||||||
| Gross premiums written | $ | 1,313,018 | $ | 1,774,180 | $ | 2,094,158 | $ | 2,652,442 | $ | 935,514 | $ | 7,833,798 | $ | 5,806,165 | |||||||||||||||||||||||||||
| Net premiums written | $ | 1,116,560 | $ | 1,486,440 | $ | 1,512,292 | $ | 1,824,083 | $ | 746,311 | $ | 5,939,375 | $ | 4,096,333 | |||||||||||||||||||||||||||
| Decrease (increase) in unearned premiums | 224,730 | 19,825 | (319,502) | (670,247) | 282,774 | (745,194) | (143,871) | ||||||||||||||||||||||||||||||||||
| Net premiums earned | 1,341,290 | 1,506,265 | 1,192,790 | 1,153,836 | 1,029,085 | 5,194,181 | 3,952,462 | ||||||||||||||||||||||||||||||||||
| Net investment income | 80,483 | 78,267 | 80,925 | 79,804 | 81,717 | 319,479 | 354,038 | ||||||||||||||||||||||||||||||||||
| Net foreign exchange gains (losses) | (16,697) | (4,755) | 3,234 | (22,788) | 23,270 | (41,006) | 27,773 | ||||||||||||||||||||||||||||||||||
| Equity in earnings (losses) of other ventures | 3,830 | 5,305 | 8,732 | (5,558) | (1,868) | 12,309 | 17,194 | ||||||||||||||||||||||||||||||||||
| Other income (loss) | 6,431 | 1,692 | 586 | 2,171 | 4,374 | 10,880 | 213 | ||||||||||||||||||||||||||||||||||
| Net realized and unrealized gains (losses) on investments | (21,518) | (42,071) | 191,018 | (345,563) | 258,745 | (218,134) | 820,636 | ||||||||||||||||||||||||||||||||||
| Total revenues | 1,393,819 | 1,544,703 | 1,477,285 | 861,902 | 1,395,323 | 5,277,709 | 5,172,316 | ||||||||||||||||||||||||||||||||||
| Expenses | |||||||||||||||||||||||||||||||||||||||||
| Net claims and claim expenses incurred | 690,970 | 1,798,045 | 520,021 | 867,051 | 901,353 | 3,876,087 | 2,924,609 | ||||||||||||||||||||||||||||||||||
| Acquisition expenses | 333,986 | 328,048 | 285,590 | 267,234 | 238,283 | 1,214,858 | 897,677 | ||||||||||||||||||||||||||||||||||
| Operational expenses | 39,673 | 58,997 | 58,203 | 55,311 | 41,104 | 212,184 | 206,687 | ||||||||||||||||||||||||||||||||||
| Corporate expenses | 10,426 | 10,196 | 10,125 | 10,405 | 21,031 | 41,152 | 96,970 | ||||||||||||||||||||||||||||||||||
| Interest expense | 11,872 | 11,919 | 11,833 | 11,912 | 11,841 | 47,536 | 50,453 | ||||||||||||||||||||||||||||||||||
| Total expenses | 1,086,927 | 2,207,205 | 885,772 | 1,211,913 | 1,213,612 | 5,391,817 | 4,176,396 | ||||||||||||||||||||||||||||||||||
| Income (loss) before taxes | 306,892 | (662,502) | 591,513 | (350,011) | 181,711 | (114,108) | 995,920 | ||||||||||||||||||||||||||||||||||
| Income tax benefit (expense) | (18,616) | 23,630 | (13,862) | 19,516 | 9,923 | 10,668 | (2,862) | ||||||||||||||||||||||||||||||||||
| Net income (loss) | 288,276 | (638,872) | 577,651 | (330,495) | 191,634 | (103,440) | 993,058 | ||||||||||||||||||||||||||||||||||
| Net (income) loss attributable to redeemable noncontrolling interests | (68,516) | 198,495 | (113,544) | 46,850 | 5,467 | 63,285 | (230,653) | ||||||||||||||||||||||||||||||||||
| Net income (loss) attributable to RenaissanceRe | 219,760 | (440,377) | 464,107 | (283,645) | 197,101 | (40,155) | 762,405 | ||||||||||||||||||||||||||||||||||
| Dividends on preference shares | (8,843) | (9,845) | (7,289) | (7,289) | (7,289) | (33,266) | (30,923) | ||||||||||||||||||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | 210,917 | $ | (450,222) | $ | 456,818 | $ | (290,934) | $ | 189,812 | $ | (73,421) | $ | 731,482 | |||||||||||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - basic | $ | 4.65 | $ | (9.75) | $ | 9.36 | $ | (5.87) | $ | 3.75 | $ | (1.57) | $ | 15.34 | |||||||||||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted | $ | 4.65 | $ | (9.75) | $ | 9.35 | $ | (5.87) | $ | 3.74 | $ | (1.57) | $ | 15.31 | |||||||||||||||||||||||||||
Operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted (1) | $ | 4.71 | $ | (8.98) | $ | 5.64 | $ | 0.09 | $ | (1.59) | $ | 1.72 | $ | 0.12 | |||||||||||||||||||||||||||
Return on average common equity - annualized | 14.2 | % | (28.4) | % | 27.6 | % | (17.1) | % | 10.9 | % | (1.1) | % | 11.7 | % | |||||||||||||||||||||||||||
Operating return on average common equity - annualized (1) | 14.4 | % | (26.1) | % | 16.8 | % | 0.3 | % | (4.4) | % | 1.3 | % | 0.2 | % | |||||||||||||||||||||||||||
2 | | |||||||
| Summary Consolidated Financial Statements | |||||||||||||||||||||||||||||
| Consolidated Balance Sheets | |||||||||||||||||||||||||||||
| December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
| Fixed maturity investments trading, at fair value | $ | 13,507,131 | $ | 13,839,248 | $ | 13,418,389 | $ | 13,309,234 | $ | 13,506,503 | |||||||||||||||||||
| Short term investments, at fair value | 5,298,385 | 4,667,273 | 4,392,652 | 5,091,143 | 4,993,735 | ||||||||||||||||||||||||
| Equity investments trading, at fair value | 546,016 | 527,839 | 577,090 | 503,137 | 702,617 | ||||||||||||||||||||||||
| Other investments, at fair value | 1,993,059 | 1,738,737 | 1,585,036 | 1,379,056 | 1,256,948 | ||||||||||||||||||||||||
| Investments in other ventures, under equity method | 98,068 | 93,344 | 91,938 | 91,362 | 98,373 | ||||||||||||||||||||||||
| Total investments | 21,442,659 | 20,866,441 | 20,065,105 | 20,373,932 | 20,558,176 | ||||||||||||||||||||||||
| Cash and cash equivalents | 1,859,019 | 1,440,734 | 1,789,756 | 1,286,661 | 1,736,813 | ||||||||||||||||||||||||
| Premiums receivable | 3,781,542 | 4,141,899 | 4,481,492 | 3,928,122 | 2,894,631 | ||||||||||||||||||||||||
| Prepaid reinsurance premiums | 854,722 | 1,137,556 | 1,361,041 | 1,229,716 | 823,582 | ||||||||||||||||||||||||
| Reinsurance recoverable | 4,268,669 | 4,192,758 | 3,187,638 | 3,160,667 | 2,926,010 | ||||||||||||||||||||||||
| Accrued investment income | 55,740 | 55,620 | 56,804 | 62,573 | 66,743 | ||||||||||||||||||||||||
| Deferred acquisition costs and value of business acquired | 849,160 | 893,265 | 883,926 | 786,941 | 633,521 | ||||||||||||||||||||||||
| Receivable for investments sold | 380,442 | 322,553 | 457,458 | 841,156 | 568,293 | ||||||||||||||||||||||||
| Other assets | 224,053 | 240,491 | 196,959 | 318,249 | 363,170 | ||||||||||||||||||||||||
| Goodwill and other intangibles | 243,496 | 245,015 | 246,576 | 248,080 | 249,641 | ||||||||||||||||||||||||
| Total assets | $ | 33,959,502 | $ | 33,536,332 | $ | 32,726,755 | $ | 32,236,097 | $ | 30,820,580 | |||||||||||||||||||
| Liabilities, Noncontrolling Interests and Shareholders' Equity | |||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||
| Reserve for claims and claim expenses | $ | 13,294,630 | $ | 13,233,244 | $ | 10,944,742 | $ | 10,953,383 | $ | 10,381,138 | |||||||||||||||||||
| Unearned premiums | 3,531,213 | 4,039,546 | 4,284,260 | 3,833,155 | 2,763,599 | ||||||||||||||||||||||||
| Debt | 1,168,353 | 1,137,829 | 1,137,304 | 1,136,783 | 1,136,265 | ||||||||||||||||||||||||
| Reinsurance balances payable | 3,860,963 | 3,964,137 | 4,489,841 | 4,254,645 | 3,488,352 | ||||||||||||||||||||||||
| Payable for investments purchased | 1,170,568 | 718,099 | 795,185 | 1,133,787 | 1,132,538 | ||||||||||||||||||||||||
| Other liabilities | 755,441 | 235,665 | 201,398 | 436,437 | 970,121 | ||||||||||||||||||||||||
| Total liabilities | 23,781,168 | 23,328,520 | 21,852,730 | 21,748,190 | 19,872,013 | ||||||||||||||||||||||||
| Redeemable noncontrolling interests | 3,554,053 | 3,458,298 | 3,656,419 | 3,409,570 | 3,388,319 | ||||||||||||||||||||||||
| Shareholders' Equity | |||||||||||||||||||||||||||||
| Preference shares | 750,000 | 750,000 | 525,000 | 525,000 | 525,000 | ||||||||||||||||||||||||
| Common shares | 44,445 | 46,540 | 48,026 | 49,970 | 50,811 | ||||||||||||||||||||||||
| Additional paid-in capital | 608,121 | 927,862 | 1,153,881 | 1,450,627 | 1,623,206 | ||||||||||||||||||||||||
| Accumulated other comprehensive loss | (10,909) | (12,709) | (14,061) | (12,382) | (12,642) | ||||||||||||||||||||||||
| Retained earnings | 5,232,624 | 5,037,821 | 5,504,760 | 5,065,122 | 5,373,873 | ||||||||||||||||||||||||
| Total shareholders' equity attributable to RenaissanceRe | 6,624,281 | 6,749,514 | 7,217,606 | 7,078,337 | 7,560,248 | ||||||||||||||||||||||||
| Total liabilities, noncontrolling interests and shareholders' equity | $ | 33,959,502 | $ | 33,536,332 | $ | 32,726,755 | $ | 32,236,097 | $ | 30,820,580 | |||||||||||||||||||
| Book value per common share | $ | 132.17 | $ | 128.91 | $ | 139.35 | $ | 131.15 | $ | 138.46 | |||||||||||||||||||
3 | | |||||||
| Underwriting and Reserves | ||||||||||||||||||||
| Consolidated Segment Underwriting Results | ||||||||||||||||||||
| Three months ended December 31, 2021 | ||||||||||||||||||||
| Property | Casualty and Specialty | Total | ||||||||||||||||||
| Gross premiums written | $ | 384,657 | $ | 928,361 | $ | 1,313,018 | ||||||||||||||
| Net premiums written | $ | 375,112 | $ | 741,448 | $ | 1,116,560 | ||||||||||||||
| Net premiums earned | $ | 626,359 | $ | 714,931 | $ | 1,341,290 | ||||||||||||||
| Net claims and claim expenses incurred | 243,356 | 447,614 | 690,970 | |||||||||||||||||
| Acquisition expenses | 131,007 | 202,979 | 333,986 | |||||||||||||||||
| Operational expenses | 28,898 | 10,775 | 39,673 | |||||||||||||||||
| Underwriting income (loss) | $ | 223,098 | $ | 53,563 | $ | 276,661 | ||||||||||||||
| Net claims and claim expenses incurred - current accident year | $ | 274,649 | $ | 457,080 | $ | 731,729 | ||||||||||||||
| Net claims and claim expenses incurred - prior accident years | (31,293) | (9,466) | (40,759) | |||||||||||||||||
| Net claims and claim expenses incurred - total | $ | 243,356 | $ | 447,614 | $ | 690,970 | ||||||||||||||
| Net claims and claim expense ratio - current accident year | 43.8 | % | 63.9 | % | 54.6 | % | ||||||||||||||
| Net claims and claim expense ratio - prior accident years | (4.9) | % | (1.3) | % | (3.1) | % | ||||||||||||||
| Net claims and claim expense ratio - calendar year | 38.9 | % | 62.6 | % | 51.5 | % | ||||||||||||||
| Underwriting expense ratio | 25.5 | % | 29.9 | % | 27.9 | % | ||||||||||||||
| Combined ratio | 64.4 | % | 92.5 | % | 79.4 | % | ||||||||||||||
| Three months ended December 31, 2020 | ||||||||||||||||||||
| Property | Casualty and Specialty | Total | ||||||||||||||||||
| Gross premiums written | $ | 308,315 | $ | 627,199 | $ | 935,514 | ||||||||||||||
| Net premiums written | $ | 279,773 | $ | 466,538 | $ | 746,311 | ||||||||||||||
| Net premiums earned | $ | 507,141 | $ | 521,944 | $ | 1,029,085 | ||||||||||||||
| Net claims and claim expenses incurred | 536,218 | 365,135 | 901,353 | |||||||||||||||||
| Acquisition expenses | 75,032 | 163,251 | 238,283 | |||||||||||||||||
| Operational expenses | 26,159 | 14,945 | 41,104 | |||||||||||||||||
| Underwriting income (loss) | $ | (130,268) | $ | (21,387) | $ | (151,655) | ||||||||||||||
| Net claims and claim expenses incurred - current accident year | $ | 661,711 | $ | 368,071 | $ | 1,029,782 | ||||||||||||||
| Net claims and claim expenses incurred - prior accident years | (125,493) | (2,936) | (128,429) | |||||||||||||||||
| Net claims and claim expenses incurred - total | $ | 536,218 | $ | 365,135 | $ | 901,353 | ||||||||||||||
| Net claims and claim expense ratio - current accident year | 130.5 | % | 70.5 | % | 100.1 | % | ||||||||||||||
| Net claims and claim expense ratio - prior accident years | (24.8) | % | (0.5) | % | (12.5) | % | ||||||||||||||
| Net claims and claim expense ratio - calendar year | 105.7 | % | 70.0 | % | 87.6 | % | ||||||||||||||
| Underwriting expense ratio | 19.9 | % | 34.1 | % | 27.1 | % | ||||||||||||||
| Combined ratio | 125.6 | % | 104.1 | % | 114.7 | % | ||||||||||||||
4 | | |||||||
| Underwriting and Reserves | |||||||||||||||||
| Consolidated Segment Underwriting Results | |||||||||||||||||
| Year ended December 31, 2021 | |||||||||||||||||
| Property | Casualty and Specialty | Total | |||||||||||||||
| Gross premiums written | $ | 3,958,724 | $ | 3,875,074 | $ | 7,833,798 | |||||||||||
| Net premiums written | $ | 2,868,002 | $ | 3,071,373 | $ | 5,939,375 | |||||||||||
| Net premiums earned | $ | 2,608,298 | $ | 2,585,883 | $ | 5,194,181 | |||||||||||
| Net claims and claim expenses incurred | 2,163,016 | 1,713,071 | 3,876,087 | ||||||||||||||
| Acquisition expenses | 487,178 | 727,680 | 1,214,858 | ||||||||||||||
| Operational expenses | 143,608 | 68,576 | 212,184 | ||||||||||||||
| Underwriting income (loss) | $ | (185,504) | $ | 76,556 | $ | (108,948) | |||||||||||
| Net claims and claim expenses incurred - current accident year | $ | 2,396,389 | $ | 1,729,168 | $ | 4,125,557 | |||||||||||
| Net claims and claim expenses incurred - prior accident years | (233,373) | (16,097) | (249,470) | ||||||||||||||
| Net claims and claim expenses incurred - total | $ | 2,163,016 | $ | 1,713,071 | $ | 3,876,087 | |||||||||||
| Net claims and claim expense ratio - current accident year | 91.9 | % | 66.9 | % | 79.4 | % | |||||||||||
| Net claims and claim expense ratio - prior accident years | (9.0) | % | (0.7) | % | (4.8) | % | |||||||||||
| Net claims and claim expense ratio - calendar year | 82.9 | % | 66.2 | % | 74.6 | % | |||||||||||
| Underwriting expense ratio | 24.2 | % | 30.8 | % | 27.5 | % | |||||||||||
| Combined ratio | 107.1 | % | 97.0 | % | 102.1 | % | |||||||||||
| Year ended December 31, 2020 | |||||||||||||||||
| Property | Casualty and Specialty | Total | |||||||||||||||
| Gross premiums written | $ | 2,999,142 | $ | 2,807,023 | $ | 5,806,165 | |||||||||||
| Net premiums written | $ | 2,037,200 | $ | 2,059,133 | $ | 4,096,333 | |||||||||||
| Net premiums earned | $ | 1,936,215 | $ | 2,016,247 | $ | 3,952,462 | |||||||||||
| Net claims and claim expenses incurred | 1,435,947 | 1,488,662 | 2,924,609 | ||||||||||||||
| Acquisition expenses | 353,700 | 543,977 | 897,677 | ||||||||||||||
| Operational expenses | 135,547 | 71,140 | 206,687 | ||||||||||||||
| Underwriting income (loss) | $ | 11,021 | $ | (87,532) | $ | (76,511) | |||||||||||
| Net claims and claim expenses incurred - current accident year | $ | 1,592,996 | $ | 1,515,425 | $ | 3,108,421 | |||||||||||
| Net claims and claim expenses incurred - prior accident years | (157,049) | (26,763) | (183,812) | ||||||||||||||
| Net claims and claim expenses incurred - total | $ | 1,435,947 | $ | 1,488,662 | $ | 2,924,609 | |||||||||||
| Net claims and claim expense ratio - current accident year | 82.3 | % | 75.2 | % | 78.6 | % | |||||||||||
| Net claims and claim expense ratio - prior accident years | (8.1) | % | (1.4) | % | (4.6) | % | |||||||||||
| Net claims and claim expense ratio - calendar year | 74.2 | % | 73.8 | % | 74.0 | % | |||||||||||
| Underwriting expense ratio | 25.2 | % | 30.5 | % | 27.9 | % | |||||||||||
| Combined ratio | 99.4 | % | 104.3 | % | 101.9 | % | |||||||||||
5 | | |||||||
| Underwriting and Reserves | |||||||||||||||||||||||||||||
| Segment Underwriting Results | |||||||||||||||||||||||||||||
| Three months ended | |||||||||||||||||||||||||||||
| Property Segment | December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||
| Gross premiums written | $ | 384,657 | $ | 773,692 | $ | 1,183,556 | $ | 1,616,819 | $ | 308,315 | |||||||||||||||||||
| Net premiums written | $ | 375,112 | $ | 681,095 | $ | 803,335 | $ | 1,008,460 | $ | 279,773 | |||||||||||||||||||
| Net premiums earned | $ | 626,359 | $ | 816,376 | $ | 560,397 | $ | 605,166 | $ | 507,141 | |||||||||||||||||||
| Net claims and claim expenses incurred | 243,356 | 1,323,678 | 97,150 | 498,832 | 536,218 | ||||||||||||||||||||||||
| Acquisition expenses | 131,007 | 134,179 | 109,238 | 112,754 | 75,032 | ||||||||||||||||||||||||
| Operational expenses | 28,898 | 40,448 | 38,887 | 35,375 | 26,159 | ||||||||||||||||||||||||
| Underwriting income (loss) | $ | 223,098 | $ | (681,929) | $ | 315,122 | $ | (41,795) | $ | (130,268) | |||||||||||||||||||
| Net claims and claim expenses incurred - current accident year | $ | 274,649 | $ | 1,469,613 | $ | 148,133 | $ | 503,994 | $ | 661,711 | |||||||||||||||||||
| Net claims and claim expenses incurred - prior accident years | (31,293) | (145,935) | (50,983) | (5,162) | (125,493) | ||||||||||||||||||||||||
| Net claims and claim expenses incurred - total | $ | 243,356 | $ | 1,323,678 | $ | 97,150 | $ | 498,832 | $ | 536,218 | |||||||||||||||||||
| Net claims and claim expense ratio - current accident year | 43.8 | % | 180.0 | % | 26.4 | % | 83.3 | % | 130.5 | % | |||||||||||||||||||
| Net claims and claim expense ratio - prior accident years | (4.9) | % | (17.9) | % | (9.1) | % | (0.9) | % | (24.8) | % | |||||||||||||||||||
| Net claims and claim expense ratio - calendar year | 38.9 | % | 162.1 | % | 17.3 | % | 82.4 | % | 105.7 | % | |||||||||||||||||||
| Underwriting expense ratio | 25.5 | % | 21.4 | % | 26.5 | % | 24.5 | % | 19.9 | % | |||||||||||||||||||
| Combined ratio | 64.4 | % | 183.5 | % | 43.8 | % | 106.9 | % | 125.6 | % | |||||||||||||||||||
| Three months ended | |||||||||||||||||||||||||||||
| Casualty and Specialty Segment | December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||
| Gross premiums written | $ | 928,361 | $ | 1,000,488 | $ | 910,602 | $ | 1,035,623 | $ | 627,199 | |||||||||||||||||||
| Net premiums written | $ | 741,448 | $ | 805,345 | $ | 708,957 | $ | 815,623 | $ | 466,538 | |||||||||||||||||||
| Net premiums earned | $ | 714,931 | $ | 689,889 | $ | 632,393 | $ | 548,670 | $ | 521,944 | |||||||||||||||||||
| Net claims and claim expenses incurred | 447,614 | 474,367 | 422,871 | 368,219 | 365,135 | ||||||||||||||||||||||||
| Acquisition expenses | 202,979 | 193,869 | 176,352 | 154,480 | 163,251 | ||||||||||||||||||||||||
| Operational expenses | 10,775 | 18,549 | 19,316 | 19,936 | 14,945 | ||||||||||||||||||||||||
| Underwriting income (loss) | $ | 53,563 | $ | 3,104 | $ | 13,854 | $ | 6,035 | $ | (21,387) | |||||||||||||||||||
| Net claims and claim expenses incurred - current accident year | $ | 457,080 | $ | 476,082 | $ | 423,917 | $ | 372,089 | $ | 368,071 | |||||||||||||||||||
| Net claims and claim expenses incurred - prior accident years | (9,466) | (1,715) | (1,046) | (3,870) | (2,936) | ||||||||||||||||||||||||
| Net claims and claim expenses incurred - total | $ | 447,614 | $ | 474,367 | $ | 422,871 | $ | 368,219 | $ | 365,135 | |||||||||||||||||||
| Net claims and claim expense ratio - current accident year | 63.9 | % | 69.0 | % | 67.0 | % | 67.8 | % | 70.5 | % | |||||||||||||||||||
| Net claims and claim expense ratio - prior accident years | (1.3) | % | (0.2) | % | (0.1) | % | (0.7) | % | (0.5) | % | |||||||||||||||||||
| Net claims and claim expense ratio - calendar year | 62.6 | % | 68.8 | % | 66.9 | % | 67.1 | % | 70.0 | % | |||||||||||||||||||
| Underwriting expense ratio | 29.9 | % | 30.8 | % | 30.9 | % | 31.8 | % | 34.1 | % | |||||||||||||||||||
| Combined ratio | 92.5 | % | 99.6 | % | 97.8 | % | 98.9 | % | 104.1 | % | |||||||||||||||||||
6 | | |||||||
| Underwriting and Reserves | |||||||||||||||||||||||||||||||||||
| Property Segment - Catastrophe and Other Property Underwriting Results | |||||||||||||||||||||||||||||||||||
| Three months ended December 31, 2021 | Three months ended December 31, 2020 | ||||||||||||||||||||||||||||||||||
| Catastrophe | Other Property | Total | Catastrophe | Other Property | Total | ||||||||||||||||||||||||||||||
| Gross premiums written | $ | 7,795 | $ | 376,862 | $ | 384,657 | $ | 59,120 | $ | 249,195 | $ | 308,315 | |||||||||||||||||||||||
| Net premiums written | $ | 632 | $ | 374,480 | $ | 375,112 | $ | 50,206 | $ | 229,567 | $ | 279,773 | |||||||||||||||||||||||
| Net premiums earned | $ | 260,044 | $ | 366,315 | $ | 626,359 | $ | 301,980 | $ | 205,161 | $ | 507,141 | |||||||||||||||||||||||
| Net claims and claim expenses incurred | 55,992 | 187,364 | 243,356 | 324,474 | 211,744 | 536,218 | |||||||||||||||||||||||||||||
| Acquisition expenses | 29,107 | 101,900 | 131,007 | 17,721 | 57,311 | 75,032 | |||||||||||||||||||||||||||||
| Operational expenses | 23,262 | 5,636 | 28,898 | 20,767 | 5,392 | 26,159 | |||||||||||||||||||||||||||||
| Underwriting income (loss) | $ | 151,683 | $ | 71,415 | $ | 223,098 | $ | (60,982) | $ | (69,286) | $ | (130,268) | |||||||||||||||||||||||
| Net claims and claim expenses incurred - current accident year | $ | 76,196 | $ | 198,453 | $ | 274,649 | $ | 415,248 | $ | 246,463 | $ | 661,711 | |||||||||||||||||||||||
| Net claims and claim expenses incurred - prior accident years | (20,204) | (11,089) | (31,293) | (90,774) | (34,719) | (125,493) | |||||||||||||||||||||||||||||
| Net claims and claim expenses incurred - total | $ | 55,992 | $ | 187,364 | $ | 243,356 | $ | 324,474 | $ | 211,744 | $ | 536,218 | |||||||||||||||||||||||
| Net claims and claim expense ratio - current accident year | 29.3 | % | 54.2 | % | 43.8 | % | 137.5 | % | 120.1 | % | 130.5 | % | |||||||||||||||||||||||
| Net claims and claim expense ratio - prior accident years | (7.8) | % | (3.1) | % | (4.9) | % | (30.2) | % | (16.9) | % | (24.8) | % | |||||||||||||||||||||||
| Net claims and claim expense ratio - calendar year | 21.5 | % | 51.1 | % | 38.9 | % | 107.3 | % | 103.2 | % | 105.7 | % | |||||||||||||||||||||||
| Underwriting expense ratio | 20.2 | % | 29.4 | % | 25.5 | % | 12.8 | % | 30.6 | % | 19.9 | % | |||||||||||||||||||||||
| Combined ratio | 41.7 | % | 80.5 | % | 64.4 | % | 120.1 | % | 133.8 | % | 125.6 | % | |||||||||||||||||||||||
| Year ended December 31, 2021 | Year ended December 31, 2020 | ||||||||||||||||||||||||||||||||||
| Catastrophe | Other Property | Total | Catastrophe | Other Property | Total | ||||||||||||||||||||||||||||||
| Gross premiums written | $ | 2,235,736 | $ | 1,722,988 | $ | 3,958,724 | $ | 1,886,785 | $ | 1,112,357 | $ | 2,999,142 | |||||||||||||||||||||||
| Net premiums written | $ | 1,318,056 | $ | 1,549,946 | $ | 2,868,002 | $ | 1,065,390 | $ | 971,810 | $ | 2,037,200 | |||||||||||||||||||||||
| Net premiums earned | $ | 1,319,841 | $ | 1,288,457 | $ | 2,608,298 | $ | 1,071,099 | $ | 865,116 | $ | 1,936,215 | |||||||||||||||||||||||
| Net claims and claim expenses incurred | 1,283,334 | 879,682 | 2,163,016 | 760,758 | 675,189 | 1,435,947 | |||||||||||||||||||||||||||||
| Acquisition expenses | 130,702 | 356,476 | 487,178 | 115,636 | 238,064 | 353,700 | |||||||||||||||||||||||||||||
| Operational expenses | 115,438 | 28,170 | 143,608 | 110,495 | 25,052 | 135,547 | |||||||||||||||||||||||||||||
| Underwriting income (loss) | $ | (209,633) | $ | 24,129 | $ | (185,504) | $ | 84,210 | $ | (73,189) | $ | 11,021 | |||||||||||||||||||||||
| Net claims and claim expenses incurred - current accident year | $ | 1,485,207 | $ | 911,182 | $ | 2,396,389 | $ | 925,401 | $ | 667,595 | $ | 1,592,996 | |||||||||||||||||||||||
| Net claims and claim expenses incurred - prior accident years | (201,873) | (31,500) | (233,373) | (164,643) | 7,594 | (157,049) | |||||||||||||||||||||||||||||
| Net claims and claim expenses incurred - total | $ | 1,283,334 | $ | 879,682 | $ | 2,163,016 | $ | 760,758 | $ | 675,189 | $ | 1,435,947 | |||||||||||||||||||||||
| Net claims and claim expense ratio - current accident year | 112.5 | % | 70.7 | % | 91.9 | % | 86.4 | % | 77.2 | % | 82.3 | % | |||||||||||||||||||||||
| Net claims and claim expense ratio - prior accident years | (15.3) | % | (2.4) | % | (9.0) | % | (15.4) | % | 0.8 | % | (8.1) | % | |||||||||||||||||||||||
| Net claims and claim expense ratio - calendar year | 97.2 | % | 68.3 | % | 82.9 | % | 71.0 | % | 78.0 | % | 74.2 | % | |||||||||||||||||||||||
| Underwriting expense ratio | 18.7 | % | 29.8 | % | 24.2 | % | 21.1 | % | 30.5 | % | 25.2 | % | |||||||||||||||||||||||
| Combined ratio | 115.9 | % | 98.1 | % | 107.1 | % | 92.1 | % | 108.5 | % | 99.4 | % | |||||||||||||||||||||||
7 | | |||||||
| Underwriting and Reserves | |||||||||||||||||||||||||||||||||||||||||
| Gross Premiums Written | |||||||||||||||||||||||||||||||||||||||||
| Three months ended | Twelve months ended | ||||||||||||||||||||||||||||||||||||||||
| December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||
| Property Segment | |||||||||||||||||||||||||||||||||||||||||
| Catastrophe | $ | 7,795 | $ | 335,493 | $ | 761,323 | $ | 1,131,125 | $ | 59,120 | $ | 2,235,736 | $ | 1,886,785 | |||||||||||||||||||||||||||
| Other property | 376,862 | 438,199 | 422,233 | 485,694 | 249,195 | 1,722,988 | 1,112,357 | ||||||||||||||||||||||||||||||||||
Property segment gross premiums written | $ | 384,657 | $ | 773,692 | $ | 1,183,556 | $ | 1,616,819 | $ | 308,315 | $ | 3,958,724 | $ | 2,999,142 | |||||||||||||||||||||||||||
| Casualty and Specialty Segment | |||||||||||||||||||||||||||||||||||||||||
General casualty (1) | $ | 281,926 | $ | 346,754 | $ | 286,686 | $ | 343,170 | $ | 190,996 | $ | 1,258,536 | $ | 904,594 | |||||||||||||||||||||||||||
Professional liability (2) | 333,257 | 329,848 | 306,387 | 314,372 | 207,437 | 1,283,864 | 836,120 | ||||||||||||||||||||||||||||||||||
Financial lines (3) | 139,799 | 128,586 | 86,175 | 144,386 | 122,023 | 498,946 | 514,192 | ||||||||||||||||||||||||||||||||||
Other (4) | 173,379 | 195,300 | 231,354 | 233,695 | 106,743 | 833,728 | 552,117 | ||||||||||||||||||||||||||||||||||
Casualty and Specialty segment gross premiums written | $ | 928,361 | $ | 1,000,488 | $ | 910,602 | $ | 1,035,623 | $ | 627,199 | $ | 3,875,074 | $ | 2,807,023 | |||||||||||||||||||||||||||
| (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 | | |||||||
| Underwriting and Reserves | |||||||||||||||||||||||
| Reserves for Claims and Claim Expenses | |||||||||||||||||||||||
| Case Reserves | Additional Case Reserves | IBNR | Total | ||||||||||||||||||||
| December 31, 2021 | |||||||||||||||||||||||
| Property | $ | 1,555,210 | $ | 1,996,760 | $ | 2,825,718 | $ | 6,377,688 | |||||||||||||||
| Casualty and Specialty | 1,784,334 | 128,065 | 5,004,543 | 6,916,942 | |||||||||||||||||||
| Total | $ | 3,339,544 | $ | 2,124,825 | $ | 7,830,261 | $ | 13,294,630 | |||||||||||||||
| September 30, 2021 | |||||||||||||||||||||||
| Property | $ | 1,265,040 | $ | 1,319,022 | $ | 4,005,279 | $ | 6,589,341 | |||||||||||||||
| Casualty and Specialty | 1,768,649 | 151,263 | 4,723,991 | 6,643,903 | |||||||||||||||||||
| Total | $ | 3,033,689 | $ | 1,470,285 | $ | 8,729,270 | $ | 13,233,244 | |||||||||||||||
| June 30, 2021 | |||||||||||||||||||||||
| Property | $ | 1,383,754 | $ | 1,513,549 | $ | 1,773,492 | $ | 4,670,795 | |||||||||||||||
| Casualty and Specialty | 1,727,051 | 133,041 | 4,413,855 | 6,273,947 | |||||||||||||||||||
| Total | $ | 3,110,805 | $ | 1,646,590 | $ | 6,187,347 | $ | 10,944,742 | |||||||||||||||
| March 31, 2021 | |||||||||||||||||||||||
| Property | $ | 1,292,683 | $ | 1,333,734 | $ | 2,145,953 | $ | 4,772,370 | |||||||||||||||
| Casualty and Specialty | 1,801,362 | 147,822 | 4,231,829 | 6,181,013 | |||||||||||||||||||
| Total | $ | 3,094,045 | $ | 1,481,556 | $ | 6,377,782 | $ | 10,953,383 | |||||||||||||||
| December 31, 2020 | |||||||||||||||||||||||
| Property | $ | 1,127,909 | $ | 1,617,003 | $ | 1,627,541 | $ | 4,372,453 | |||||||||||||||
| Casualty and Specialty | 1,651,150 | 133,843 | 4,223,692 | 6,008,685 | |||||||||||||||||||
| Total | $ | 2,779,059 | $ | 1,750,846 | $ | 5,851,233 | $ | 10,381,138 | |||||||||||||||
9 | | |||||||
| Underwriting and Reserves | |||||||||||||||||||||||||||||||||||
| Paid to Incurred Analysis | |||||||||||||||||||||||||||||||||||
| Three months ended December 31, 2021 | Three months ended December 31, 2020 | ||||||||||||||||||||||||||||||||||
| Gross | Recoveries | Net | Gross | Recoveries | Net | ||||||||||||||||||||||||||||||
| Reserve for claims and claim expenses, beginning of period | $ | 13,233,244 | $ | 4,192,758 | $ | 9,040,486 | $ | 9,900,615 | $ | 2,883,808 | $ | 7,016,807 | |||||||||||||||||||||||
| Incurred claims and claim expenses | |||||||||||||||||||||||||||||||||||
| Current year | 1,028,496 | 296,767 | 731,729 | 1,555,246 | 525,464 | 1,029,782 | |||||||||||||||||||||||||||||
| Prior years | (103,058) | (62,299) | (40,759) | (249,115) | (120,686) | (128,429) | |||||||||||||||||||||||||||||
| Total incurred claims and claim expenses | 925,438 | 234,468 | 690,970 | 1,306,131 | 404,778 | 901,353 | |||||||||||||||||||||||||||||
| Paid claims and claim expenses | |||||||||||||||||||||||||||||||||||
| Current year | 366,464 | 42,629 | 323,835 | 253,693 | 32,734 | 220,959 | |||||||||||||||||||||||||||||
| Prior years | 476,322 | 109,345 | 366,977 | 638,762 | 339,320 | 299,442 | |||||||||||||||||||||||||||||
| Total paid claims and claim expenses | 842,786 | 151,974 | 690,812 | 892,455 | 372,054 | 520,401 | |||||||||||||||||||||||||||||
Foreign exchange (1) | (21,266) | (6,583) | (14,683) | 66,847 | 9,478 | 57,369 | |||||||||||||||||||||||||||||
| Reserve for claims and claim expenses, end of period | $ | 13,294,630 | $ | 4,268,669 | $ | 9,025,961 | $ | 10,381,138 | $ | 2,926,010 | $ | 7,455,128 | |||||||||||||||||||||||
| Year ended December 31, 2021 | Year ended December 31, 2020 | ||||||||||||||||||||||||||||||||||
| Gross | Recoveries | Net | Gross | Recoveries | Net | ||||||||||||||||||||||||||||||
| Reserve for claims and claim expenses, beginning of period | $ | 10,381,138 | $ | 2,926,010 | $ | 7,455,128 | $ | 9,384,349 | $ | 2,791,297 | $ | 6,593,052 | |||||||||||||||||||||||
| Incurred claims and claim expenses | |||||||||||||||||||||||||||||||||||
| Current year | 6,290,090 | 2,164,533 | 4,125,557 | 4,297,339 | 1,188,918 | 3,108,421 | |||||||||||||||||||||||||||||
| Prior years | (384,474) | (135,004) | (249,470) | (404,135) | (220,323) | (183,812) | |||||||||||||||||||||||||||||
| Total incurred claims and claim expenses | 5,905,616 | 2,029,529 | 3,876,087 | 3,893,204 | 968,595 | 2,924,609 | |||||||||||||||||||||||||||||
| Paid claims and claim expenses | |||||||||||||||||||||||||||||||||||
| Current year | 660,005 | 85,775 | 574,230 | 460,278 | 48,106 | 412,172 | |||||||||||||||||||||||||||||
| Prior years | 2,241,273 | 591,401 | 1,649,872 | 2,373,235 | 780,779 | 1,592,456 | |||||||||||||||||||||||||||||
| Total paid claims and claim expenses | 2,901,278 | 677,176 | 2,224,102 | 2,833,513 | 828,885 | 2,004,628 | |||||||||||||||||||||||||||||
Foreign exchange (1) | (90,846) | (9,694) | (81,152) | 95,924 | (1,349) | 97,273 | |||||||||||||||||||||||||||||
Amounts disposed (2) | — | — | — | (158,826) | (3,648) | (155,178) | |||||||||||||||||||||||||||||
| Reserve for claims and claim expenses, end of period | $ | 13,294,630 | $ | 4,268,669 | $ | 9,025,961 | $ | 10,381,138 | $ | 2,926,010 | $ | 7,455,128 | |||||||||||||||||||||||
(1) Reflects the impact of the foreign exchange revaluation of the net reserve for claims and claim expenses denominated in non-U.S. dollars as at the balance sheet date.
(2) Represents the fair value of RenaissanceRe UK's reserve for claims and claim expenses, net of reinsurance recoverables, disposed of on August 18, 2020.
10 | | |||||||
| Managed Joint Ventures and Fee Income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fee Income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The table below reflects the total fee income earned through third-party capital management as well as various joint ventures and certain structured retrocession agreements to which the Company is a party. Joint ventures include DaVinciRe Holdings Ltd. (“DaVinciRe”), Top Layer Reinsurance Ltd., Vermeer Reinsurance Ltd. (“Vermeer”) and certain entities investing in Langhorne Holdings LLC. Managed funds include RenaissanceRe Upsilon Fund Ltd. and RenaissanceRe Medici Fund Ltd. (“Medici”). Structured reinsurance products and other include certain other vehicles and reinsurance contracts which transfer risk to capital.
| Three months ended | Twelve months ended | ||||||||||||||||||||||||||||||||||||||||
| December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||
| Management fee income | |||||||||||||||||||||||||||||||||||||||||
| Joint ventures | $ | 8,603 | $ | 8,602 | $ | 14,741 | $ | 11,128 | $ | 8,458 | $ | 43,074 | $ | 45,499 | |||||||||||||||||||||||||||
| Structured reinsurance products and other | 8,542 | 8,646 | 8,677 | 8,774 | 8,830 | 34,639 | 34,951 | ||||||||||||||||||||||||||||||||||
| Managed funds | 7,578 | 6,606 | 8,552 | 8,622 | 9,490 | 31,358 | 31,026 | ||||||||||||||||||||||||||||||||||
| Total management fee income | 24,723 | 23,854 | 31,970 | 28,524 | 26,778 | 109,071 | 111,476 | ||||||||||||||||||||||||||||||||||
| Performance fee income (loss) | |||||||||||||||||||||||||||||||||||||||||
| Joint ventures | 2,352 | 2,980 | 7,347 | 1,556 | (1,984) | 14,235 | 10,167 | ||||||||||||||||||||||||||||||||||
| Structured reinsurance products and other | 2,392 | 1,237 | 2,581 | (1,293) | 1,570 | 4,917 | 7,525 | ||||||||||||||||||||||||||||||||||
| Managed funds | 555 | 264 | 4,259 | (4,798) | 9,542 | 280 | 15,994 | ||||||||||||||||||||||||||||||||||
Total performance fee income (loss) (1) | 5,299 | 4,481 | 14,187 | (4,535) | 9,128 | 19,432 | 33,686 | ||||||||||||||||||||||||||||||||||
| Total fee income | $ | 30,022 | $ | 28,335 | $ | 46,157 | $ | 23,989 | $ | 35,906 | $ | 128,503 | $ | 145,162 | |||||||||||||||||||||||||||
(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.
The table below shows how the total fee income described above contributes to the Company's consolidated results of operations.
| Three months ended | Twelve months ended | ||||||||||||||||||||||||||||||||||||||||
| Fee income contributing to: | December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||
Underwriting income (loss) (1) | 18,074 | 19,444 | 19,239 | 10,530 | 36,100 | 67,287 | 87,764 | ||||||||||||||||||||||||||||||||||
Earnings from equity method investments (2) | — | 17 | 17 | 16 | (4) | 50 | 70 | ||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interest (3) | 11,948 | 8,874 | 26,901 | 13,443 | (190) | 61,166 | 57,328 | ||||||||||||||||||||||||||||||||||
| Total fee income | $ | 30,022 | $ | 28,335 | $ | 46,157 | $ | 23,989 | $ | 35,906 | $ | 128,503 | $ | 145,162 | |||||||||||||||||||||||||||
(1) The fees recorded through underwriting income (loss) are recorded as a reduction (increase) to operating expenses or acquisition expenses.
(2) The fees reflected as earnings from equity method investments are recorded through equity in earnings (losses) of other ventures.
(3) The fee income reflected as redeemable noncontrolling interest is recorded through net (income) loss attributable to redeemable noncontrolling interest. A positive number represents the fee income earned from third-party investors in the Company's Consolidated Managed Joint Ventures (as defined herein). Conversely, a negative number represents a reduction in fee income earned from third-party investors in the Company's Consolidated Managed Joint Ventures.
11 | | |||||||
| Managed Joint Ventures and Fee Income | |||||||||||||||||||||||||||||||||||||||||
| Noncontrolling Interests | |||||||||||||||||||||||||||||||||||||||||
The Company consolidates the results of certain of its joint ventures and managed capital vehicles, namely, DaVinciRe, Medici and Vermeer (collectively, the “Consolidated Managed Joint Ventures”), on its consolidated balance sheets and statements of operations. Redeemable noncontrolling interests on the Company's consolidated balance sheets represents the portion of the net assets of the Consolidated Managed Joint Ventures attributable to third-party investors in these Consolidated Managed Joint Ventures. Net (income) loss attributable to redeemable noncontrolling interests on the Company's consolidated statements of operations represents the portion of the (income) loss associated with the Consolidated Managed Joint Ventures included on the Company's consolidated statements of operations that is attributable to third-party investors in these Consolidated Managed Joint Ventures.
A summary of the redeemable noncontrolling interests on the Company's consolidated statements of operations is set forth below:
| Three months ended | Twelve months ended | ||||||||||||||||||||||||||||||||||||||||
| December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interest - DaVinciRe | $ | (55,098) | $ | 202,362 | $ | (84,266) | $ | 39,934 | $ | 32,993 | $ | 102,932 | $ | (113,671) | |||||||||||||||||||||||||||
Redeemable noncontrolling interest - Medici | 3,580 | (6,526) | (11,989) | 13,443 | (13,534) | (1,492) | (55,970) | ||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interest - Vermeer | (16,998) | 2,659 | (17,289) | (6,527) | (13,992) | (38,155) | (61,012) | ||||||||||||||||||||||||||||||||||
Net loss (income) attributable to redeemable noncontrolling interests (1) | $ | (68,516) | $ | 198,495 | $ | (113,544) | $ | 46,850 | $ | 5,467 | $ | 63,285 | $ | (230,653) | |||||||||||||||||||||||||||
(1) A negative number in the table above represents net income earned by the Consolidated Managed Joint Ventures allocated to third-party investors. Conversely, a positive number represents net losses incurred by the Consolidated Managed Joint Ventures allocated to third-party investors.
A summary of the Company’s redeemable noncontrolling interests on its consolidated balance sheets is set forth below:
| December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||
| Redeemable noncontrolling interest - DaVinciRe | $ | 1,499,451 | $ | 1,443,589 | $ | 1,642,656 | $ | 1,555,714 | $ | 1,560,693 | |||||||||||||||||||
| Redeemable noncontrolling interest - Medici | 856,820 | 883,925 | 880,320 | 737,702 | 717,999 | ||||||||||||||||||||||||
| Redeemable noncontrolling interest - Vermeer | 1,197,782 | 1,130,784 | 1,133,443 | 1,116,154 | 1,109,627 | ||||||||||||||||||||||||
| Redeemable noncontrolling interests | $ | 3,554,053 | $ | 3,458,298 | $ | 3,656,419 | $ | 3,409,570 | $ | 3,388,319 | |||||||||||||||||||
A summary of the redeemable noncontrolling economic ownership of third parties in the Consolidated Managed Joint Ventures is set forth below:
| December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||
| DaVinciRe | 71.3 | % | 71.3 | % | 71.3 | % | 71.3 | % | 78.6 | % | |||||||||||||||||||
| Medici | 85.3 | % | 86.6 | % | 86.6 | % | 84.6 | % | 84.3 | % | |||||||||||||||||||
| Vermeer | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||||||
12 | | |||||||
| Managed Joint Ventures and Fee Income | |||||||||||||||||||||||||||||||||||||||||
| DaVinciRe Holdings Ltd. and Subsidiary Consolidated Statements of Operations | |||||||||||||||||||||||||||||||||||||||||
| Three months ended | Twelve months ended | ||||||||||||||||||||||||||||||||||||||||
| December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||||||||
| Gross premiums written | $ | 2,240 | $ | 168,770 | $ | 243,627 | $ | 342,033 | $ | 21,996 | $ | 756,670 | $ | 577,808 | |||||||||||||||||||||||||||
| Net premiums written | $ | 1,109 | $ | 159,697 | $ | 205,907 | $ | 315,476 | $ | 22,266 | $ | 682,189 | $ | 519,048 | |||||||||||||||||||||||||||
| Decrease (increase) in unearned premiums | 134,218 | 79,853 | (69,833) | (154,894) | 120,081 | (10,656) | (11,538) | ||||||||||||||||||||||||||||||||||
| Net premiums earned | 135,327 | 239,550 | 136,074 | 160,582 | 142,347 | 671,533 | 507,510 | ||||||||||||||||||||||||||||||||||
| Net investment income | 6,937 | 6,549 | 7,118 | 8,261 | 8,848 | 28,865 | 44,831 | ||||||||||||||||||||||||||||||||||
| Net foreign exchange gains (losses) | (561) | (818) | 597 | (590) | 149 | (1,372) | (1,534) | ||||||||||||||||||||||||||||||||||
| Net realized and unrealized gains (losses) on investments | (20,486) | (2,670) | 4,389 | (26,798) | 3,436 | (45,565) | 62,078 | ||||||||||||||||||||||||||||||||||
| Total revenues | 121,217 | 242,611 | 148,178 | 141,455 | 154,780 | 653,461 | 612,885 | ||||||||||||||||||||||||||||||||||
| Expenses | |||||||||||||||||||||||||||||||||||||||||
| Net claims and claim expenses incurred | 14,977 | 501,695 | (19,754) | 167,543 | 184,787 | 664,461 | 352,161 | ||||||||||||||||||||||||||||||||||
| Acquisition expenses | 19,242 | 14,490 | 31,593 | 16,317 | 3,138 | 81,642 | 64,842 | ||||||||||||||||||||||||||||||||||
| Operational and corporate expenses | 7,916 | 8,190 | 16,377 | 11,706 | 6,955 | 44,189 | 43,829 | ||||||||||||||||||||||||||||||||||
| Interest expense | 1,859 | 1,859 | 1,858 | 1,858 | 1,859 | 7,434 | 7,435 | ||||||||||||||||||||||||||||||||||
| Total expenses | 43,994 | 526,234 | 30,074 | 197,424 | 196,739 | 797,726 | 468,267 | ||||||||||||||||||||||||||||||||||
| Income (loss) before taxes | 77,223 | (283,623) | 118,104 | (55,969) | (41,959) | (144,265) | 144,618 | ||||||||||||||||||||||||||||||||||
| Income tax benefit (expense) | — | — | (1) | — | (12) | (1) | (12) | ||||||||||||||||||||||||||||||||||
| Net income (loss) available (attributable) to DaVinciRe common shareholders | $ | 77,223 | $ | (283,623) | $ | 118,103 | $ | (55,969) | $ | (41,971) | $ | (144,266) | $ | 144,606 | |||||||||||||||||||||||||||
Net claims and claim expenses incurred - current accident year | $ | 26,746 | $ | 561,674 | $ | 8,270 | $ | 181,716 | $ | 209,903 | $ | 778,406 | $ | 425,786 | |||||||||||||||||||||||||||
Net claims and claim expenses incurred - prior accident years | (11,769) | (59,979) | (28,024) | (14,173) | (25,116) | (113,945) | (73,625) | ||||||||||||||||||||||||||||||||||
Net claims and claim expenses incurred - total | $ | 14,977 | $ | 501,695 | $ | (19,754) | $ | 167,543 | $ | 184,787 | $ | 664,461 | $ | 352,161 | |||||||||||||||||||||||||||
Net claims and claim expense ratio - current accident year | 19.8 | % | 234.5 | % | 6.1 | % | 113.2 | % | 147.5 | % | 115.9 | % | 83.9 | % | |||||||||||||||||||||||||||
Net claims and claim expense ratio - prior accident years | (8.7) | % | (25.1) | % | (20.6) | % | (8.9) | % | (17.7) | % | (17.0) | % | (14.5) | % | |||||||||||||||||||||||||||
Net claims and claim expense ratio - calendar year | 11.1 | % | 209.4 | % | (14.5) | % | 104.3 | % | 129.8 | % | 98.9 | % | 69.4 | % | |||||||||||||||||||||||||||
Underwriting expense ratio | 20.0 | % | 9.5 | % | 35.2 | % | 17.5 | % | 7.1 | % | 18.8 | % | 21.4 | % | |||||||||||||||||||||||||||
Combined ratio | 31.1 | % | 218.9 | % | 20.7 | % | 121.8 | % | 136.9 | % | 117.7 | % | 90.8 | % | |||||||||||||||||||||||||||
13 | | |||||||
| RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||||||||||||||||||||
| Investments | |||||||||||||||||||||||||||||||||||||||||
| Total Investment Result | |||||||||||||||||||||||||||||||||||||||||
| Three months ended | Twelve months ended | ||||||||||||||||||||||||||||||||||||||||
| December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||
Fixed maturity investments trading | $ | 55,643 | $ | 56,825 | $ | 59,510 | $ | 62,933 | $ | 66,912 | $ | 234,911 | $ | 278,215 | |||||||||||||||||||||||||||
Short term investments | 464 | 514 | 782 | 573 | 1,047 | 2,333 | 20,799 | ||||||||||||||||||||||||||||||||||
Equity investments trading | 4,077 | 1,823 | 1,626 | 1,491 | 1,628 | 9,017 | 6,404 | ||||||||||||||||||||||||||||||||||
Other investments | |||||||||||||||||||||||||||||||||||||||||
| Catastrophe bonds | 16,527 | 17,184 | 16,681 | 14,468 | 13,500 | 64,860 | 54,784 | ||||||||||||||||||||||||||||||||||
| Other | 8,100 | 7,571 | 9,339 | 3,801 | 4,083 | 28,811 | 9,417 | ||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 74 | (38) | 159 | 102 | 192 | 297 | 2,974 | ||||||||||||||||||||||||||||||||||
| 84,885 | 83,879 | 88,097 | 83,368 | 87,362 | 340,229 | 372,593 | |||||||||||||||||||||||||||||||||||
Investment expenses | (4,402) | (5,612) | (7,172) | (3,564) | (5,645) | (20,750) | (18,555) | ||||||||||||||||||||||||||||||||||
| Net investment income | 80,483 | 78,267 | 80,925 | 79,804 | 81,717 | 319,479 | 354,038 | ||||||||||||||||||||||||||||||||||
| Net realized and unrealized gains (losses) on: | |||||||||||||||||||||||||||||||||||||||||
Fixed maturity investments trading, net of investments-related derivatives (1) | (116,689) | (31,424) | 87,847 | (261,759) | 90,132 | (322,025) | 592,412 | ||||||||||||||||||||||||||||||||||
Equity investments trading, net of investments-related derivatives (1) | 73,645 | (21,680) | 65,566 | (67,922) | 154,306 | 49,609 | 235,552 | ||||||||||||||||||||||||||||||||||
| Other investments | |||||||||||||||||||||||||||||||||||||||||
| Catastrophe bonds | (9,958) | (5,994) | 2 | (19,083) | (9,742) | (35,033) | (7,031) | ||||||||||||||||||||||||||||||||||
| Other | 31,484 | 17,027 | 37,603 | 3,201 | 24,049 | 89,315 | (297) | ||||||||||||||||||||||||||||||||||
| Net realized and unrealized gains (losses) on investments | (21,518) | (42,071) | 191,018 | (345,563) | 258,745 | (218,134) | 820,636 | ||||||||||||||||||||||||||||||||||
Total investment result | $ | 58,965 | $ | 36,196 | $ | 271,943 | $ | (265,759) | $ | 340,462 | $ | 101,345 | $ | 1,174,674 | |||||||||||||||||||||||||||
Total investment return - annualized | 1.1 | % | 0.7 | % | 5.2 | % | (4.9) | % | 6.6 | % | 0.5 | % | 5.9 | % | |||||||||||||||||||||||||||
(1) Net realized and unrealized gains (losses) on fixed maturity investments trading includes the impacts of interest rate futures, interest rate swaps, credit default swaps and total return swaps. Net realized and unrealized gains (losses) on equity investments trading includes the impact of equity futures.
14 | | |||||||
| Investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment Portfolio - Composition | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Type of Investment | December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. treasuries | $ | 6,247,779 | 29.1 | % | $ | 6,730,967 | 32.3 | % | $ | 6,327,895 | 31.5 | % | $ | 5,107,878 | 25.1 | % | $ | 4,960,409 | 24.1 | % | |||||||||||||||||||||||||||||||||||||||
| Agencies | 361,684 | 1.7 | % | 297,057 | 1.4 | % | 325,051 | 1.6 | % | 227,184 | 1.1 | % | 368,032 | 1.8 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Non-U.S. government | 549,613 | 2.6 | % | 495,243 | 2.4 | % | 508,320 | 2.5 | % | 518,162 | 2.5 | % | 491,531 | 2.4 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Non-U.S. government-backed corporate | 474,848 | 2.2 | % | 409,322 | 2.0 | % | 396,966 | 2.0 | % | 335,662 | 1.6 | % | 338,014 | 1.6 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Corporate | 3,214,438 | 15.0 | % | 3,346,556 | 16.0 | % | 3,387,433 | 16.9 | % | 4,289,072 | 21.1 | % | 4,261,025 | 20.7 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Agency mortgage-backed | 721,955 | 3.4 | % | 754,118 | 3.6 | % | 703,757 | 3.5 | % | 957,563 | 4.7 | % | 1,113,792 | 5.4 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Non-agency mortgage-backed | 233,346 | 1.1 | % | 243,654 | 1.2 | % | 260,432 | 1.3 | % | 272,529 | 1.3 | % | 291,444 | 1.4 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Commercial mortgage-backed | 634,925 | 3.0 | % | 621,153 | 3.0 | % | 588,262 | 2.9 | % | 713,044 | 3.5 | % | 791,272 | 3.8 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Asset-backed | 1,068,543 | 5.0 | % | 941,178 | 4.5 | % | 920,273 | 4.6 | % | 888,140 | 4.4 | % | 890,984 | 4.3 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Total fixed maturity investments, at fair value | 13,507,131 | 63.1 | % | 13,839,248 | 66.4 | % | 13,418,389 | 66.8 | % | 13,309,234 | 65.3 | % | 13,506,503 | 65.5 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Short term investments, at fair value | 5,298,385 | 24.7 | % | 4,667,273 | 22.4 | % | 4,392,652 | 21.9 | % | 5,091,143 | 25.0 | % | 4,993,735 | 24.3 | % | ||||||||||||||||||||||||||||||||||||||||||||
Total consolidated fixed maturity and short term investments, at fair value | 18,805,516 | 87.8 | % | 18,506,521 | 88.8 | % | 17,811,041 | 88.7 | % | 18,400,377 | 90.3 | % | 18,500,238 | 89.8 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Equity investments trading, at fair value | 546,016 | 2.5 | % | 527,839 | 2.5 | % | 577,090 | 2.9 | % | 503,137 | 2.5 | % | 702,617 | 3.4 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Catastrophe bonds | 1,104,034 | 5.1 | % | 1,037,640 | 5.0 | % | 1,026,397 | 5.1 | % | 941,604 | 4.6 | % | 881,290 | 4.3 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Direct private investments | 88,373 | 0.4 | % | 84,587 | 0.4 | % | 81,344 | 0.4 | % | 75,874 | 0.4 | % | 79,807 | 0.4 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Fund investments | 725,802 | 3.4 | % | 616,510 | 3.0 | % | 477,295 | 2.4 | % | 361,578 | 1.8 | % | 295,851 | 1.4 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Term Loan | 74,850 | 0.3 | % | — | — | % | — | — | % | — | — | % | — | — | % | ||||||||||||||||||||||||||||||||||||||||||||
| Total other investments, at fair value | 1,993,059 | 9.2 | % | 1,738,737 | 8.4 | % | 1,585,036 | 8.0 | % | 1,379,056 | 6.8 | % | 1,256,948 | 6.2 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Total managed investment portfolio | 21,344,591 | 99.5 | % | 20,773,097 | 99.7 | % | 19,973,167 | 99.6 | % | 20,282,570 | 99.6 | % | 20,459,803 | 99.4 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Investments in other ventures, under equity method | 98,068 | 0.5 | % | 93,344 | 0.3 | % | 91,938 | 0.4 | % | 91,362 | 0.4 | % | 98,373 | 0.6 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Total investments | $ | 21,442,659 | 100.0 | % | $ | 20,866,441 | 100.0 | % | $ | 20,065,105 | 100.0 | % | $ | 20,373,932 | 100.0 | % | $ | 20,558,176 | 100.0 | % | |||||||||||||||||||||||||||||||||||||||
15 | | |||||||
| Investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment Portfolio - Fixed Maturity Investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Credit Quality of Fixed Maturity Investments | December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AAA | $ | 1,857,331 | 13.8 | % | $ | 1,825,727 | 13.2 | % | $ | 1,793,720 | 13.4 | % | $ | 1,859,370 | 14.0 | % | $ | 1,915,147 | 14.2 | % | |||||||||||||||||||||||||||||||||||||||
| AA | 8,155,048 | 60.3 | % | 8,449,810 | 61.0 | % | 7,982,119 | 59.5 | % | 7,022,443 | 52.8 | % | 7,210,622 | 53.4 | % | ||||||||||||||||||||||||||||||||||||||||||||
| A | 1,114,771 | 8.3 | % | 1,063,127 | 7.7 | % | 1,060,647 | 7.9 | % | 1,504,569 | 11.3 | % | 1,485,463 | 11.0 | % | ||||||||||||||||||||||||||||||||||||||||||||
| BBB | 1,073,103 | 7.9 | % | 1,133,307 | 8.2 | % | 1,171,756 | 8.7 | % | 1,509,280 | 11.3 | % | 1,538,681 | 11.4 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Non-investment grade and not rated | 1,306,878 | 9.7 | % | 1,367,277 | 9.9 | % | 1,410,147 | 10.5 | % | 1,413,572 | 10.6 | % | 1,356,590 | 10.0 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Total fixed maturity investments, at fair value | $ | 13,507,131 | 100.0 | % | $ | 13,839,248 | 100.0 | % | $ | 13,418,389 | 100.0 | % | $ | 13,309,234 | 100.0 | % | $ | 13,506,503 | 100.0 | % | |||||||||||||||||||||||||||||||||||||||
| Maturity Profile of Fixed Maturity Investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Due in less than one year | $ | 365,418 | 2.7 | % | $ | 388,647 | 2.8 | % | $ | 365,154 | 2.7 | % | $ | 572,443 | 4.3 | % | $ | 637,418 | 4.7 | % | |||||||||||||||||||||||||||||||||||||||
| Due after one through five years | 6,297,063 | 46.6 | % | 6,540,886 | 47.3 | % | 6,191,724 | 46.1 | % | 5,569,638 | 41.9 | % | 5,391,122 | 39.9 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Due after five through ten years | 3,877,715 | 28.7 | % | 4,003,465 | 28.9 | % | 4,060,205 | 30.3 | % | 3,786,423 | 28.4 | % | 3,806,564 | 28.2 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Due after ten years | 308,166 | 2.3 | % | 346,146 | 2.5 | % | 328,582 | 2.4 | % | 549,453 | 4.1 | % | 583,908 | 4.3 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Mortgage-backed securities | 1,590,226 | 11.8 | % | 1,618,926 | 11.7 | % | 1,552,451 | 11.6 | % | 1,943,137 | 14.6 | % | 2,196,507 | 16.3 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Asset-backed securities | 1,068,543 | 7.9 | % | 941,178 | 6.8 | % | 920,273 | 6.9 | % | 888,140 | 6.7 | % | 890,984 | 6.6 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Total fixed maturity investments, at fair value | $ | 13,507,131 | 100.0 | % | $ | 13,839,248 | 100.0 | % | $ | 13,418,389 | 100.0 | % | $ | 13,309,234 | 100.0 | % | $ | 13,506,503 | 100.0 | % | |||||||||||||||||||||||||||||||||||||||
16 | | |||||||
| Investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment Portfolio - Weighted Average Yield to Maturity and Credit Rating | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Rating (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2021 | Amortized Cost | Fair Value | Weighted Average Yield to Maturity | AAA | AA | A | BBB | Non- Investment Grade | Not Rated | ||||||||||||||||||||||||||||||||||||||||||||
| Short term investments | $ | 5,298,385 | $ | 5,298,385 | 0.1 | % | $ | 5,261,431 | $ | 21,682 | $ | 13,431 | $ | 203 | $ | 177 | $ | 1,461 | |||||||||||||||||||||||||||||||||||
| 100.0 | % | 99.3 | % | 0.4 | % | 0.3 | % | — | % | — | % | — | % | ||||||||||||||||||||||||||||||||||||||||
| Fixed maturity investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. treasuries | 6,302,313 | 6,247,779 | 1.1 | % | — | 6,247,779 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
| Agencies | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fannie Mae and Freddie Mac | 4,455 | 4,353 | 1.2 | % | — | 4,353 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
| Other agencies | 359,974 | 357,331 | 1.2 | % | 56,067 | 301,264 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
| Total agencies | 364,429 | 361,684 | 1.2 | % | 56,067 | 305,617 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
| Non-U.S. government | 552,935 | 549,613 | 1.2 | % | 286,810 | 202,067 | 45,192 | 14,257 | 1,287 | — | |||||||||||||||||||||||||||||||||||||||||||
| Non-U.S. government-backed corporate | 476,200 | 474,848 | 1.4 | % | 168,177 | 272,297 | 24,480 | 3,702 | 6,192 | — | |||||||||||||||||||||||||||||||||||||||||||
| Corporate | 3,202,614 | 3,214,438 | 2.8 | % | 31,603 | 113,253 | 979,752 | 996,288 | 1,053,867 | 39,675 | |||||||||||||||||||||||||||||||||||||||||||
| Mortgage-backed | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgage-backed | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Agency securities | 721,711 | 721,955 | 1.9 | % | — | 721,955 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
| Non-agency securities | 232,144 | 233,346 | 3.2 | % | 51,279 | 11,749 | 1,810 | 5,751 | 110,459 | 52,298 | |||||||||||||||||||||||||||||||||||||||||||
| Total residential mortgage-backed | 953,855 | 955,301 | 2.2 | % | 51,279 | 733,704 | 1,810 | 5,751 | 110,459 | 52,298 | |||||||||||||||||||||||||||||||||||||||||||
| Commercial mortgage-backed | 631,016 | 634,925 | 1.9 | % | 492,903 | 113,736 | 4,191 | 15,835 | 2,514 | 5,746 | |||||||||||||||||||||||||||||||||||||||||||
| Total mortgage-backed | 1,584,871 | 1,590,226 | 2.1 | % | 544,182 | 847,440 | 6,001 | 21,586 | 112,973 | 58,044 | |||||||||||||||||||||||||||||||||||||||||||
| Asset-backed | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Collateralized loan obligations | 955,057 | 954,512 | 1.8 | % | 672,310 | 162,176 | 50,457 | 36,639 | 21,223 | 11,707 | |||||||||||||||||||||||||||||||||||||||||||
| Other | 114,160 | 114,031 | 1.3 | % | 98,182 | 4,419 | 8,889 | 631 | 1,712 | 198 | |||||||||||||||||||||||||||||||||||||||||||
| Total asset-backed | 1,069,217 | 1,068,543 | 1.8 | % | 770,492 | 166,595 | 59,346 | 37,270 | 22,935 | 11,905 | |||||||||||||||||||||||||||||||||||||||||||
| Total securitized assets | 2,654,088 | 2,658,769 | 2.0 | % | 1,314,674 | 1,014,035 | 65,347 | 58,856 | 135,908 | 69,949 | |||||||||||||||||||||||||||||||||||||||||||
| Total fixed maturity investments | 13,552,579 | 13,507,131 | 1.7 | % | 1,857,331 | 8,155,048 | 1,114,771 | 1,073,103 | 1,197,254 | 109,624 | |||||||||||||||||||||||||||||||||||||||||||
| 100.0 | % | 13.8 | % | 60.3 | % | 8.3 | % | 7.9 | % | 8.9 | % | 0.8 | % | ||||||||||||||||||||||||||||||||||||||||
Total consolidated fixed maturity and short term investments, at fair value | $ | 18,850,964 | $ | 18,805,516 | 1.2 | % | $ | 7,118,762 | $ | 8,176,730 | $ | 1,128,202 | $ | 1,073,306 | $ | 1,197,431 | $ | 111,085 | |||||||||||||||||||||||||||||||||||
| 100.0 | % | 37.9 | % | 43.4 | % | 6.0 | % | 5.7 | % | 6.4 | % | 0.6 | % | ||||||||||||||||||||||||||||||||||||||||
(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.
17 | | |||||||
| Investments | ||
| Retained Investment Information | ||
“Retained total investment result” is defined as consolidated total investment result less the portion attributable to redeemable noncontrolling interests, certain third-party vehicles and joint ventures.
| Three months ended | Twelve months ended | ||||||||||||||||||||||||||||||||||||||||
| December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||
| Total investment result | |||||||||||||||||||||||||||||||||||||||||
| Net investment income | $ | 80,483 | $ | 78,267 | $ | 80,925 | $ | 79,804 | $ | 81,717 | $ | 319,479 | $ | 354,038 | |||||||||||||||||||||||||||
| Net realized and unrealized gains (losses) on investments | (21,518) | (42,071) | 191,018 | (345,563) | 258,745 | (218,134) | 820,636 | ||||||||||||||||||||||||||||||||||
| Total investment result | $ | 58,965 | $ | 36,196 | $ | 271,943 | $ | (265,759) | $ | 340,462 | $ | 101,345 | $ | 1,174,674 | |||||||||||||||||||||||||||
Retained total investment result (1) | |||||||||||||||||||||||||||||||||||||||||
| Retained net investment income | $ | 61,930 | $ | 60,105 | $ | 62,982 | $ | 62,598 | $ | 64,250 | $ | 247,615 | $ | 269,013 | |||||||||||||||||||||||||||
| Retained net realized and unrealized gains (losses) on investments | 1,653 | (37,975) | 187,391 | (318,688) | 258,293 | (167,619) | 764,777 | ||||||||||||||||||||||||||||||||||
| Retained total investment result | $ | 63,583 | $ | 22,130 | $ | 250,373 | $ | (256,090) | $ | 322,543 | $ | 79,996 | $ | 1,033,790 | |||||||||||||||||||||||||||
(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.
“Retained fixed maturity and short term investments, at fair value” is defined as 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.
| December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Managed fixed maturity and short term investments portfolio (1) | |||||||||||||||||||||||||||||
| Total consolidated fixed maturity and short term investments, at fair value | $ | 18,805,516 | $ | 18,506,521 | $ | 17,811,041 | $ | 18,400,377 | $ | 18,500,238 | |||||||||||||||||||
| Weighted average yield to maturity of fixed maturity and short term investments | 1.2 | % | 1.1 | % | 1.0 | % | 1.2 | % | 0.9 | % | |||||||||||||||||||
| Average duration of fixed maturities and short term investments, in years | 3.0 | 3.0 | 3.0 | 2.9 | 2.9 | ||||||||||||||||||||||||
Retained fixed maturity and short term investments portfolio (2) | |||||||||||||||||||||||||||||
| Retained fixed maturity and short term investments, at fair value | $ | 12,867,560 | $ | 13,032,675 | $ | 12,569,024 | $ | 12,736,000 | $ | 13,219,754 | |||||||||||||||||||
Weighted average yield to maturity of retained fixed maturity and short term investments | 1.6 | % | 1.3 | % | 1.3 | % | 1.5 | % | 1.2 | % | |||||||||||||||||||
| Average duration of retained fixed maturities and short term investments, in years | 3.7 | 3.7 | 3.8 | 3.7 | 3.6 | ||||||||||||||||||||||||
(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.
18 | | |||||||
| Other Items | |||||||||||||||||||||||||||||
| Earnings per Share | |||||||||||||||||||||||||||||
| Three months ended | |||||||||||||||||||||||||||||
| (common shares in thousands) | December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||
| Numerator: | |||||||||||||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | 210,917 | $ | (450,222) | $ | 456,818 | $ | (290,934) | $ | 189,812 | |||||||||||||||||||
Amount allocated to participating common shareholders (1) | (3,022) | (229) | (5,809) | (129) | (2,285) | ||||||||||||||||||||||||
| Net income (loss) allocated to RenaissanceRe common shareholders | $ | 207,895 | $ | (450,451) | $ | 451,009 | $ | (291,063) | $ | 187,527 | |||||||||||||||||||
| Denominator: | |||||||||||||||||||||||||||||
| Denominator for basic income (loss) per RenaissanceRe common share - | |||||||||||||||||||||||||||||
| Weighted average common shares | 44,722 | 46,223 | 48,163 | 49,579 | 50,022 | ||||||||||||||||||||||||
| Per common share equivalents of non-vested shares | 26 | — | 63 | — | 89 | ||||||||||||||||||||||||
| Denominator for diluted income (loss) per RenaissanceRe common share - | |||||||||||||||||||||||||||||
| Adjusted weighted average common shares and assumed conversions | 44,748 | 46,223 | 48,226 | 49,579 | 50,111 | ||||||||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - basic | $ | 4.65 | $ | (9.75) | $ | 9.36 | $ | (5.87) | $ | 3.75 | |||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted | $ | 4.65 | $ | (9.75) | $ | 9.35 | $ | (5.87) | $ | 3.74 | |||||||||||||||||||
| Twelve months ended | |||||||||||||||||||||||||||||
| (common shares in thousands) | December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||
| Numerator: | |||||||||||||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | (73,421) | $ | 731,482 | |||||||||||||||||||||||||
Amount allocated to participating common shareholders (1) | (727) | (8,968) | |||||||||||||||||||||||||||
| Net income (loss) allocated to RenaissanceRe common shareholders | $ | (74,148) | $ | 722,514 | |||||||||||||||||||||||||
| Denominator: | |||||||||||||||||||||||||||||
| Denominator for basic income (loss) per RenaissanceRe common share - | |||||||||||||||||||||||||||||
| Weighted average common shares | 47,171 | 47,103 | |||||||||||||||||||||||||||
| Per common share equivalents of non-vested shares | — | 75 | |||||||||||||||||||||||||||
| Denominator for diluted income (loss) per RenaissanceRe common share - | |||||||||||||||||||||||||||||
| Adjusted weighted average common shares and assumed conversions | 47,171 | 47,178 | |||||||||||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - basic | $ | (1.57) | $ | 15.34 | |||||||||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted | $ | (1.57) | $ | 15.31 | |||||||||||||||||||||||||
(1) Represents earnings and dividends attributable to holders of unvested shares issued pursuant to the Company's stock compensation plans.
19 | | |||||||
| Comments on Regulation G | ||
In addition to the GAAP financial measures set forth in this Financial Supplement, the Company has included certain non-GAAP financial measures within the meaning of Regulation G. The Company has consistently 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.
Operating Income (Loss) Available (Attributable) to RenaissanceRe Common Shareholders and Operating Return on Average Common Equity - Annualized
The Company uses “operating income (loss) available (attributable) 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 (loss) available (attributable) 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, excluding other investments - catastrophe bonds, net foreign exchange gains and losses, corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe UK, the income tax expense or benefit associated with these adjustments and the portion of these adjustments attributable to the Company's redeemable noncontrolling interests. The Company's management believes that “operating income (loss) available (attributable) 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 fair value of the Company's fixed maturity investment portfolio, equity investments trading, other investments (excluding catastrophe bonds) and investments-related derivatives; fluctuations in foreign exchange rates; corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe UK; the associated income tax expense or benefit of these adjustments; and the portion of these adjustments attributable to the Company's redeemable noncontrolling interests. The Company also uses “operating income (loss) available (attributable) to RenaissanceRe common shareholders” to calculate “operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted” and “operating return on average common equity - annualized.” The following table is a reconciliation of: (1) net income (loss) available (attributable) to RenaissanceRe common shareholders to “operating income (loss) available (attributable) to RenaissanceRe common shareholders”; (2) net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted to “operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted”; and (3) return on average common equity - annualized to “operating return on average common equity - annualized.” Comparative information for all prior periods has been updated to conform to the current methodology and presentation.
20 | | |||||||
| Comments on Regulation G | ||
| Three months ended | Twelve months ended | ||||||||||||||||||||||||||||||||||||||||
| December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | 210,917 | $ | (450,222) | $ | 456,818 | $ | (290,934) | $ | 189,812 | $ | (73,421) | $ | 731,482 | |||||||||||||||||||||||||||
| Adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds | 11,560 | 36,077 | (191,016) | 326,480 | (268,487) | 183,101 | (827,667) | ||||||||||||||||||||||||||||||||||
| Adjustment for net foreign exchange losses (gains) | 16,697 | 4,755 | (3,234) | 22,788 | (23,270) | 41,006 | (27,773) | ||||||||||||||||||||||||||||||||||
Adjustment for corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe UK (1) | — | — | — | 135 | 7,346 | 135 | 47,964 | ||||||||||||||||||||||||||||||||||
Adjustment for income tax expense (benefit) (2) | (3,628) | 286 | 11,786 | (19,965) | 7,723 | (11,521) | 29,863 | ||||||||||||||||||||||||||||||||||
Adjustment for net (loss) income attributable to redeemable noncontrolling interests (3) | (21,854) | (5,434) | 3,696 | (34,109) | 9,754 | (57,701) | 60,771 | ||||||||||||||||||||||||||||||||||
| Operating income (loss) available (attributable) to RenaissanceRe common shareholders | $ | 213,692 | $ | (414,538) | $ | 278,050 | $ | 4,395 | $ | (77,122) | $ | 81,599 | $ | 14,640 | |||||||||||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted | $ | 4.65 | $ | (9.75) | $ | 9.35 | $ | (5.87) | $ | 3.74 | $ | (1.57) | $ | 15.31 | |||||||||||||||||||||||||||
| Adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds | 0.26 | 0.78 | (3.96) | 6.59 | (5.36) | 3.88 | (17.54) | ||||||||||||||||||||||||||||||||||
| Adjustment for net foreign exchange losses (gains) | 0.37 | 0.10 | (0.07) | 0.46 | (0.46) | 0.87 | (0.59) | ||||||||||||||||||||||||||||||||||
Adjustment for corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe UK (1) | — | — | — | — | 0.15 | — | 1.02 | ||||||||||||||||||||||||||||||||||
Adjustment for income tax expense (benefit) (2) | (0.08) | 0.01 | 0.24 | (0.40) | 0.15 | (0.24) | 0.63 | ||||||||||||||||||||||||||||||||||
Adjustment for net (loss) income attributable to redeemable noncontrolling interests (3) | (0.49) | (0.12) | 0.08 | (0.69) | 0.19 | (1.22) | 1.29 | ||||||||||||||||||||||||||||||||||
| Operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted | $ | 4.71 | $ | (8.98) | $ | 5.64 | $ | 0.09 | $ | (1.59) | $ | 1.72 | $ | 0.12 | |||||||||||||||||||||||||||
| Return on average common equity - annualized | 14.2 | % | (28.4) | % | 27.6 | % | (17.1) | % | 10.9 | % | (1.1) | % | 11.7 | % | |||||||||||||||||||||||||||
| Adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds | 0.8 | % | 2.3 | % | (11.5) | % | 19.2 | % | (15.4) | % | 2.9 | % | (13.4) | % | |||||||||||||||||||||||||||
| Adjustment for net foreign exchange losses (gains) | 1.1 | % | 0.3 | % | (0.2) | % | 1.4 | % | (1.3) | % | 0.6 | % | (0.4) | % | |||||||||||||||||||||||||||
Adjustment for corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe UK (1) | — | % | — | % | — | % | — | % | 0.4 | % | — | % | 0.8 | % | |||||||||||||||||||||||||||
Adjustment for income tax expense (benefit) (2) | (0.2) | % | — | % | 0.7 | % | (1.2) | % | 0.4 | % | (0.2) | % | 0.5 | % | |||||||||||||||||||||||||||
Adjustment for net (loss) income attributable to redeemable noncontrolling interests (3) | (1.5) | % | (0.3) | % | 0.2 | % | (2.0) | % | 0.6 | % | (0.9) | % | 1.0 | % | |||||||||||||||||||||||||||
| Operating return on average common equity - annualized | 14.4 | % | (26.1) | % | 16.8 | % | 0.3 | % | (4.4) | % | 1.3 | % | 0.2 | % | |||||||||||||||||||||||||||
(1) Included in the twelve months ended December 31, 2020 is the loss on sale of RenaissanceRe UK of $30.2 million.
(2) Adjustment for income tax expense (benefit) represents the income tax (expense) benefit associated with the adjustments to net income (loss) available (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.
(3) Represents the portion of these adjustments that are attributable to the Company's redeemable noncontrolling interests, including the income tax impact of those adjustments.
21 | | |||||||
| Comments on Regulation G | ||
Tangible Book Value Per Common Share and Tangible Book Value Per Common Share Plus Accumulated Dividends
The Company has included in this Financial Supplement “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 table 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.”
| December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Book value per common share | $ | 132.17 | $ | 128.91 | $ | 139.35 | $ | 131.15 | $ | 138.46 | |||||||||||||||||||
Adjustment for goodwill and other intangibles (1) | (5.90) | (5.67) | (5.60) | (5.42) | (5.37) | ||||||||||||||||||||||||
Tangible book value per common share | 126.27 | 123.24 | 133.75 | 125.73 | 133.09 | ||||||||||||||||||||||||
Adjustment for accumulated dividends | 23.52 | 23.16 | 22.80 | 22.44 | 22.08 | ||||||||||||||||||||||||
Tangible book value per common share plus accumulated dividends | $ | 149.79 | $ | 146.40 | $ | 156.55 | $ | 148.17 | $ | 155.17 | |||||||||||||||||||
Quarterly change in book value per common share | 2.5 | % | (7.5) | % | 6.3 | % | (5.3) | % | 2.5 | % | |||||||||||||||||||
Quarterly change in tangible book value per common share plus change in accumulated dividends | 2.8 | % | (7.6) | % | 6.7 | % | (5.3) | % | 3.0 | % | |||||||||||||||||||
| Year to date change in book value per common share | (4.5) | % | (6.9) | % | 0.6 | % | (5.3) | % | 14.9 | % | |||||||||||||||||||
Year to date change in tangible book value per common share plus change in accumulated dividends | (4.0) | % | (6.6) | % | 1.0 | % | (5.3) | % | 17.9 | % | |||||||||||||||||||
(1) At December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, goodwill and other intangibles included $18.6 million, $19.0 million, $22.4 million, $22.7 million, and $23.0 million, respectively, of goodwill and other intangibles included in investments in other ventures, under equity method.
22 | | |||||||
| Comments on Regulation G | ||
Retained Total Investment Result
The Company has included in this Financial Supplement “retained total investment result.” “Retained total investment result" is defined as consolidated total investment result less the portion attributable to redeemable noncontrolling interests, certain third-party vehicles and joint ventures. “Retained total investment result” differs from consolidated total investment result, which the Company believes is the most directly comparable GAAP measure, due to the exclusion of the investment result attributable to redeemable noncontrolling interests, certain third-party vehicles and joint ventures. The Company's management believes “retained total investment result” is useful to investors and other interested parties because it provides a measure of the portion of the Company's investment result, that impacts the investment result included in net income (loss) available (attributable) to RenaissanceRe common shareholders. The following table is a reconciliation of consolidated total investment result to “retained total investment result.”
| Three months ended | Twelve months ended | ||||||||||||||||||||||||||||||||||||||||
| December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||
Net investment income | $ | 80,483 | $ | 78,267 | $ | 80,925 | $ | 79,804 | $ | 81,717 | $ | 319,479 | $ | 354,038 | |||||||||||||||||||||||||||
Adjustment for net investment income attributable to redeemable noncontrolling interests, certain third-party vehicles and joint ventures | (18,553) | (18,162) | (17,943) | (17,206) | (17,467) | (71,864) | (85,025) | ||||||||||||||||||||||||||||||||||
Retained net investment income | 61,930 | 60,105 | 62,982 | 62,598 | 64,250 | 247,615 | 269,013 | ||||||||||||||||||||||||||||||||||
| Net realized and unrealized gains (losses) on investments | (21,518) | (42,071) | 191,018 | (345,563) | 258,745 | (218,134) | 820,636 | ||||||||||||||||||||||||||||||||||
| Adjustment for net realized and unrealized losses (gains) on investments attributable to redeemable noncontrolling interests, certain third-party vehicles and joint ventures | 23,171 | 4,096 | (3,627) | 26,875 | (452) | 50,515 | (55,859) | ||||||||||||||||||||||||||||||||||
| Retained net realized and unrealized gains (losses) on investments | 1,653 | (37,975) | 187,391 | (318,688) | 258,293 | (167,619) | 764,777 | ||||||||||||||||||||||||||||||||||
Total investment result | 58,965 | 36,196 | 271,943 | (265,759) | 340,462 | 101,345 | 1,174,674 | ||||||||||||||||||||||||||||||||||
Adjustment for investment result attributable to redeemable noncontrolling interests, certain third-party vehicles and joint ventures | 4,618 | (14,066) | (21,570) | 9,669 | (17,919) | (21,349) | (140,884) | ||||||||||||||||||||||||||||||||||
Retained total investment result | $ | 63,583 | $ | 22,130 | $ | 250,373 | $ | (256,090) | $ | 322,543 | $ | 79,996 | $ | 1,033,790 | |||||||||||||||||||||||||||
23 | | |||||||
| Comments on Regulation G | ||
Retained Fixed Maturity and Short Term Investments, at Fair Value
The Company has included in this Financial Supplement “retained fixed maturity and short term investments, at fair value.” “Retained fixed maturity and short term investments, at fair value” is defined as 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. “Retained fixed maturity and short term investments, at fair value” differs from total consolidated fixed maturity and short term investments, at fair value, which the Company believes is the most directly comparable GAAP measure, due to the exclusion of fixed maturity and short term investments, at fair value, attributable to redeemable noncontrolling interests, certain third party vehicles and joint ventures. The Company's management believes “retained fixed maturity and short term investments, at fair value” is useful to investors and other interested parties because it provides a measure of the portion of the Company's fixed maturity and short term investments, at fair value, that impacts the investment result included in net income (loss) available (attributable) to RenaissanceRe common shareholders. The following table is a reconciliation of total consolidated fixed maturity and short term investments, at fair value, to “retained fixed maturity and short term investments, at fair value.”
| December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||
| Fixed maturity investments, at fair value | $ | 13,507,131 | $ | 13,839,248 | $ | 13,418,389 | $ | 13,309,234 | $ | 13,506,503 | |||||||||||||||||||
| Short term investments, at fair value | 5,298,385 | 4,667,273 | 4,392,652 | 5,091,143 | 4,993,735 | ||||||||||||||||||||||||
Total consolidated fixed maturity and short term investments, at fair value | $ | 18,805,516 | $ | 18,506,521 | $ | 17,811,041 | $ | 18,400,377 | $ | 18,500,238 | |||||||||||||||||||
Adjustment for fixed maturity and short term investments attributable to redeemable noncontrolling interests, certain third-party vehicles and joint ventures | (5,937,956) | (5,473,846) | (5,242,017) | (5,664,377) | (5,280,484) | ||||||||||||||||||||||||
Retained fixed maturity and short term investments, at fair value | $ | 12,867,560 | $ | 13,032,675 | $ | 12,569,024 | $ | 12,736,000 | $ | 13,219,754 | |||||||||||||||||||
24 | | |||||||