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): November 1, 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) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
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 November 1, 2022, RenaissanceRe Holdings Ltd. (the “Company”) issued a press release announcing its financial results for the three months ended September 30, 2022 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 | ||||||||||||
| November 1, 2022 | Robert Qutub | |||||||||||||
| Executive Vice President and Chief Financial Officer | ||||||||||||||
RenaissanceRe Reports Q3 2022 Net Loss Attributable to Common Shareholders of $825.3 Million; Operating Loss Attributable to Common Shareholders of $396.7 Million.
•Hurricane Ian and certain other catastrophe events contributed to a $648.4 million net negative impact on net loss attributable to common shareholders, and added 57.2 percentage points to the combined ratio.
•101.6% growth in net investment income compared to Q3 2021.
•95.7% Casualty and Specialty combined ratio, an improvement of 3.9 percentage points from Q3 2021.
•22.6% growth in net premiums written; driven by 39.7% growth in Casualty and Specialty.
•$641.5 million of net realized and unrealized losses on investments, primarily driven by the impact of increasing interest rates on the fixed maturity portfolio.
Pembroke, Bermuda, November 1, 2022 - RenaissanceRe Holdings Ltd. (NYSE: RNR) (“RenaissanceRe” or the “Company”) today announced its financial results for the third quarter of 2022.
Net Loss Attributable to Common Shareholders per Diluted Common Share: $(19.27) Operating Loss Attributable to Common Shareholders per Diluted Common Share*: $(9.27) | ||||||||
Underwriting Loss $(683.1)M | Fee Income $25.7M | Net Investment Income $157.8M | ||||||
Change in Book Value per Common Share: (16.8)% Change in Tangible Book Value per Common Share Plus Change in Accum. Dividends*: (17.4)% | ||||||||
*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.
Kevin J. O’Donnell, President and Chief Executive Officer, said, “Hurricane Ian’s arrival in the final days of the quarter was both a stark reminder of our value proposition to our customers and a catalyst for change in the reinsurance marketplace. RenaissanceRe’s strategic focus on reinsurance, strong capital and industry leadership uniquely situate us to drive transformative change during the upcoming renewal period. As a result, we are positioned to deliver an attractive return to our investors through materially increased underwriting profit, robust fee income and significantly higher investment income.” | ||
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Consolidated Financial Results | ||
Consolidated Highlights | ||||||||||||||
| Three months ended September 30, | ||||||||||||||
| (in thousands, except per share amounts and percentages) | 2022 | 2021 | ||||||||||||
Gross premiums written | $ | 2,220,661 | $ | 1,774,180 | ||||||||||
| Net premiums written | 1,821,711 | 1,486,440 | ||||||||||||
| Underwriting income (loss) | (683,114) | (678,825) | ||||||||||||
Combined ratio | 138.7 | % | 145.1 | % | ||||||||||
Net Income (Loss) | ||||||||||||||
Available (attributable) to common shareholders | (825,344) | (450,222) | ||||||||||||
Available (attributable) to common shareholders per diluted common share | $ | (19.27) | $ | (9.75) | ||||||||||
Operating Income (Loss) (1) | ||||||||||||||
Available (attributable) to common shareholders | (396,674) | (414,538) | ||||||||||||
Available (attributable) to common shareholders per diluted common share | $ | (9.27) | $ | (8.98) | ||||||||||
Book value per common share | $ | 94.55 | $ | 128.91 | ||||||||||
Change in book value per share | (16.8) | % | (7.5) | % | ||||||||||
Tangible book value per common share plus accumulated dividends (1) | $ | 113.29 | $ | 146.40 | ||||||||||
Change in tangible book value per common share plus change in accumulated dividends (1) | (17.4)% | (7.6)% | ||||||||||||
Return on average common equity - annualized | (72.4)% | (28.4)% | ||||||||||||
Operating return on average common equity - annualized (1) | (34.8)% | (26.1)% | ||||||||||||
(1)See “Comments on Regulation G” for a reconciliation of non-GAAP financial measures.
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Net Negative Impact
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, both before consideration of any related income tax benefit (expense).
The Company’s estimates of net negative impact are based on a review of our potential exposures, preliminary discussions with certain counterparties and actuarial modeling techniques. Our 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 the losses from these 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.
Weather-Related Large Losses
Net negative impact on the consolidated financial statements
| Three months ended September 30, 2022 | Hurricane Ian | Other Q3 2022 Catastrophe Events (1) | Aggregate Losses (2) | Total Q3 2022 Weather-Related Large Losses (3) | |||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||
| Net claims and claims expenses incurred | $ | (990,382) | $ | (152,418) | $ | (9,695) | $ | (1,152,495) | |||||||||||||||||||||
| Assumed reinstatement premiums earned | 221,799 | 14,105 | 9 | 235,913 | |||||||||||||||||||||||||
| Ceded reinstatement premiums earned | (57,733) | (283) | — | (58,016) | |||||||||||||||||||||||||
| Earned (lost) profit commissions | (1,487) | (1,285) | (49) | (2,821) | |||||||||||||||||||||||||
| Net negative impact on underwriting result | (827,803) | (139,881) | (9,735) | (977,419) | |||||||||||||||||||||||||
| Redeemable noncontrolling interest | 288,383 | 40,621 | — | 329,004 | |||||||||||||||||||||||||
| Net negative impact on net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | (539,420) | $ | (99,260) | $ | (9,735) | $ | (648,415) | |||||||||||||||||||||
Net negative impact on the segment underwriting results and consolidated combined ratio
| Three months ended September 30, 2022 | Hurricane Ian | Other Q3 2022 Catastrophe Events (1) | Aggregate Losses (2) | Total Q3 2022 Weather-Related Large Losses (3) | |||||||||||||||||||||||||
| (in thousands, except percentages) | |||||||||||||||||||||||||||||
| Net negative impact on Property segment underwriting result | $ | (820,765) | $ | (137,881) | $ | (9,735) | $ | (968,381) | |||||||||||||||||||||
| Net negative impact on Casualty and Specialty segment underwriting result | (7,038) | (2,000) | — | (9,038) | |||||||||||||||||||||||||
| Net negative impact on underwriting result | $ | (827,803) | $ | (139,881) | $ | (9,735) | $ | (977,419) | |||||||||||||||||||||
| Percentage point impact on consolidated combined ratio | 47.7 | 7.7 | 0.6 | 57.2 | |||||||||||||||||||||||||
(1)“Other Q3 2022 Catastrophe Events” includes the severe weather in France in May and June of 2022, and typhoons in Asia and Hurricane Fiona during the third quarter of 2022.
(2)“Aggregate Losses” includes loss estimates associated with certain aggregate loss contracts triggered during 2022 as a result of weather-related catastrophe events.
(3)“Q3 2022 Weather-Related Large Losses” includes Hurricane Ian, Other Q3 2022 Catastrophe Events and the Aggregate Losses described above.
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Three Drivers of Profit: Underwriting, Fee and Investment Income | ||
Underwriting Results - Property Segment: Q3 2022 Weather-Related Large Losses contributed 123.0 percentage points to the combined ratio
Property Segment | ||||||||||||||||||||
| Three months ended September 30, | Q/Q Change | |||||||||||||||||||
| (in thousands, except percentages) | 2022 | 2021 | ||||||||||||||||||
Gross premiums written | $ | 800,330 | $ | 773,692 | 3.4% | |||||||||||||||
| Net premiums written | 696,520 | 681,095 | 2.3% | |||||||||||||||||
Underwriting income (loss) | (722,599) | (681,929) | ||||||||||||||||||
Underwriting Ratios | ||||||||||||||||||||
Net claims and claim expense ratio - current accident year | 166.3 | % | 180.0 | % | (13.7) | pts | ||||||||||||||
Net claims and claim expense ratio - prior accident years | (2.9) | % | (17.9) | % | 15.0 | pts | ||||||||||||||
Net claims and claim expense ratio - calendar year | 163.4 | % | 162.1 | % | 1.3 | pts | ||||||||||||||
Underwriting expense ratio | 22.6 | % | 21.4 | % | 1.2 | pts | ||||||||||||||
Combined ratio | 186.0 | % | 183.5 | % | 2.5 | pts | ||||||||||||||
•Gross premiums written increased by $26.6 million, or 3.4%, driven by growth of $55.9 million within the catastrophe class of business, partially offset by a reduction of $29.2 million within the other property class of business.
–Reinstatement premiums from the Q3 2022 Weather-Related Large Losses were $234.0 million compared to $254.9 million of reinstatement premiums from the weather related large losses in the third quarter of 2021.
•Net premiums written increased by $15.4 million, or 2.3%, driven by the increase in gross premiums written, slightly offset by an increase in ceded premiums written of $11.2 million.
•Net claims and claim expense ratio - current accident year decreased 13.7 percentage points, primarily due to a lower impact from weather-related large losses.
–Q3 2022 Weather-Related Large Losses contributed 127.9 percentage points to the current accident year net claims and claim expense ratio, compared to the weather-related large losses in the third quarter of 2021, which contributed 143.1 percentage points to the current accident year net claims and claim expense ratio.
•Net claims and claim expense ratio - prior accident years reflects net favorable development primarily from weather-related large losses in the 2017 to 2020 accident years.
•Underwriting loss of $722.6 million in the Property segment included a $968.4 million net negative impact from the Q3 2022 Weather-Related Large Losses with significant impacts in both the catastrophe and other property classes of business.
–Combined ratio of 186.0% included 123.0 percentage points from the Q3 2022 Weather-Related Large Losses.
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Underwriting Results - Casualty and Specialty Segment: Combined ratio of 95.7% and growth in net premiums written of 39.7%
Casualty and Specialty Segment | ||||||||||||||||||||
| Three months ended September 30, | Q/Q Change | |||||||||||||||||||
(in thousands, except percentages) | 2022 | 2021 | ||||||||||||||||||
Gross premiums written | $ | 1,420,331 | $ | 1,000,488 | 42.0% | |||||||||||||||
| Net premiums written | 1,125,191 | 805,345 | 39.7% | |||||||||||||||||
Underwriting income (loss) | 39,485 | 3,104 | ||||||||||||||||||
Underwriting Ratios | ||||||||||||||||||||
Net claims and claim expense ratio - current accident year | 65.0 | % | 69.0 | % | (4.0) | pts | ||||||||||||||
Net claims and claim expense ratio - prior accident years | (0.8) | % | (0.2) | % | (0.6) | pts | ||||||||||||||
Net claims and claim expense ratio - calendar year | 64.2 | % | 68.8 | % | (4.6) | pts | ||||||||||||||
Underwriting expense ratio | 31.5 | % | 30.8 | % | 0.7 | pts | ||||||||||||||
Combined ratio | 95.7 | % | 99.6 | % | (3.9) | pts | ||||||||||||||
•Gross premiums written increased 42.0% across various lines of business, principally in the financial lines classes of business, which grew $237.0 million.
•Net premiums written increased 39.7%, primarily driven by growth in the financial lines classes of business, consistent with the changes in gross premiums written.
•Net claims and claim expense ratio - current accident year improved by 4.0 percentage points, primarily due to a lower impact from the Q3 2022 Weather-Related Large Losses compared to the weather related large losses in the third quarter of 2021.
•Net claims and claim expense ratio - prior accident year improved by 0.6 percentage points, reflecting higher favorable prior accident year loss development compared to the third quarter of 2021.
•Underwriting expense ratio increased 0.7 percentage points, principally due to a 1.6 percentage point increase in the net acquisition expense ratio due to higher costs and changes in mix of business. This was largely offset by a 0.9 percentage point improvement in the operating expense ratio, driven by improved operating leverage.
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Fee Income: $25.7 million of fee income; management fees stable while performance fees impacted by Q3 2022 Weather-Related Large Losses
Fee Income | ||||||||||||||||||||
| Three months ended September 30, | Q/Q Change | |||||||||||||||||||
(in thousands, except percentages) | 2022 | 2021 | ||||||||||||||||||
Total management fee income | $ | 24,989 | $ | 23,854 | $ | 1,135 | ||||||||||||||
Total performance fee income (loss) (1) | 739 | 4,481 | (3,742) | |||||||||||||||||
Total fee income | $ | 25,728 | $ | 28,335 | $ | (2,607) | ||||||||||||||
(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.
•Management fee income was relatively stable in comparison to the third quarter of 2021, reflecting increased capital managed at DaVinciRe Holdings Ltd. (“DaVinci”), Vermeer Reinsurance Ltd. (“Vermeer”), RenaissanceRe Medici Fund Ltd. (“Medici”), and Fontana Holdings L.P. and its subsidiaries, largely offset by reductions in the Company’s structured reinsurance products.
•Performance fee income was lower in the third quarter of 2022 compared to the third quarter of 2021, primarily due to the impact of the Q3 2022 Weather-Related Large Losses.
Investment Results: Net investment income up $79.5 million; total investment result driven by net realized and unrealized losses, primarily in the fixed maturity investments portfolio
Investment Results | ||||||||||||||||||||
| Three months ended September 30, | Q/Q Change | |||||||||||||||||||
(in thousands, except percentages) | 2022 | 2021 | ||||||||||||||||||
| Net investment income | $ | 157,793 | $ | 78,267 | $ | 79,526 | ||||||||||||||
| Net realized and unrealized gains (losses) on investments | (641,500) | (42,071) | (599,429) | |||||||||||||||||
Total investment result | $ | (483,707) | $ | 36,196 | $ | (519,903) | ||||||||||||||
Total investment return - annualized | (8.9) | % | 0.7 | % | (9.6) | pts | ||||||||||||||
•Net investment income increased $79.5 million, primarily driven by higher investment yields from:
–Portfolio management to take advantage of rising interest rates and increase the book yield within the fixed maturity trading and short term investment portfolios, and
–Higher average invested assets and yields in private credit fund investments.
•Net realized and unrealized losses on investments increased $599.4 million principally driven by:
–Net realized and unrealized losses on fixed maturity investments trading of $424.2 million as a result of the significant increase in interest rates on the fixed maturity portfolio, compared to net realized and unrealized losses of $29.4 million in the third quarter of 2021 resulting from a smaller increase in interest rates.
–Net realized and unrealized losses on catastrophe bonds of $127.0 million (primarily held in the Medici portfolio, the majority of which is owned by third party investors), principally as a result of the impact of Hurricane Ian, compared to net realized and unrealized losses of $6.0 million in the third quarter of 2021.
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•Total investments were $20.9 billion at September 30, 2022 (December 31, 2021 - $21.4 billion). Weighted average yield to maturity and duration on the Company’s investment portfolio (which excludes investments that have no final maturity, yield to maturity or duration) was 5.1% and 2.5 years.
Other Items of Note | ||
•Net loss attributable to redeemable noncontrolling interests of $372.4 million was primarily driven by:
–Impact of the Q3 2022 Weather-Related Large Losses on the performance of DaVinci, Medici and Vermeer; and
–Realized and unrealized losses on investments in the Company’s joint ventures driven by the significant increase in interest rates.
•Raised capital of $122.1 million in the third quarter of 2022 through Vermeer and Medici.
•Share repurchases of 175.7 thousand common shares at an aggregate cost of $25.3 million and an average price of $144.07 per common share from July 1, 2022 through July 22, 2022.
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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, November 2, 2022 at 11:00 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 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 performance of the Company’s investment portfolio and financial market volatility; the effects of inflation; 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 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 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
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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 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 and Quarterly Reports on Form 10-Q.
INVESTOR CONTACT: RenaissanceRe Holdings Ltd. Keith McCue Senior Vice President, Finance & Investor Relations (441) 239-4830 | MEDIA CONTACT: RenaissanceRe Holdings Ltd. Hayden Kenny Vice President, Investor Relations & Communications (441) 239-4946 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 | Nine months ended | ||||||||||||||||||||||
| September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Gross premiums written | $ | 2,220,661 | $ | 1,774,180 | $ | 7,628,264 | $ | 6,520,780 | |||||||||||||||
| Net premiums written | $ | 1,821,711 | $ | 1,486,440 | $ | 5,850,544 | $ | 4,822,815 | |||||||||||||||
| Decrease (increase) in unearned premiums | (54,690) | 19,825 | (1,140,715) | (969,924) | |||||||||||||||||||
| Net premiums earned | 1,767,021 | 1,506,265 | 4,709,829 | 3,852,891 | |||||||||||||||||||
| Net investment income | 157,793 | 78,267 | 348,695 | 238,996 | |||||||||||||||||||
| Net foreign exchange gains (losses) | (1,383) | (4,755) | (67,690) | (24,309) | |||||||||||||||||||
| Equity in earnings (losses) of other ventures | 1,739 | 5,305 | 2,732 | 8,479 | |||||||||||||||||||
| Other income (loss) | 2,834 | 1,692 | 4,950 | 4,449 | |||||||||||||||||||
| Net realized and unrealized gains (losses) on investments | (641,500) | (42,071) | (1,968,624) | (196,616) | |||||||||||||||||||
Total revenues | 1,286,504 | 1,544,703 | 3,029,892 | 3,883,890 | |||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Net claims and claim expenses incurred | 1,967,931 | 1,798,045 | 3,515,903 | 3,185,117 | |||||||||||||||||||
| Acquisition expenses | 417,644 | 328,048 | 1,155,389 | 880,872 | |||||||||||||||||||
| Operational expenses | 64,560 | 58,997 | 204,987 | 172,511 | |||||||||||||||||||
| Corporate expenses | 10,384 | 10,196 | 35,238 | 30,726 | |||||||||||||||||||
| Interest expense | 12,101 | 11,919 | 35,951 | 35,664 | |||||||||||||||||||
Total expenses | 2,472,620 | 2,207,205 | 4,947,468 | 4,304,890 | |||||||||||||||||||
| Income (loss) before taxes | (1,186,116) | (662,502) | (1,917,576) | (421,000) | |||||||||||||||||||
| Income tax benefit (expense) | (2,814) | 23,630 | 64,427 | 29,284 | |||||||||||||||||||
| Net income (loss) | (1,188,930) | (638,872) | (1,853,149) | (391,716) | |||||||||||||||||||
| Net (income) loss attributable to redeemable noncontrolling interests | 372,429 | 198,495 | 335,010 | 131,801 | |||||||||||||||||||
| Net income (loss) attributable to RenaissanceRe | (816,501) | (440,377) | (1,518,139) | (259,915) | |||||||||||||||||||
| Dividends on preference shares | (8,843) | (9,845) | (26,531) | (24,423) | |||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | (825,344) | $ | (450,222) | $ | (1,544,670) | $ | (284,338) | |||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – basic | $ | (19.27) | $ | (9.75) | $ | (35.84) | $ | (5.94) | |||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – diluted | $ | (19.27) | $ | (9.75) | $ | (35.84) | $ | (5.94) | |||||||||||||||
Operating (loss) income (attributable) available to RenaissanceRe common shareholders per common share - diluted (1) | $ | (9.27) | $ | (8.98) | $ | (0.16) | $ | (2.77) | |||||||||||||||
Average shares outstanding - basic | 42,837 | 46,223 | 43,121 | 47,988 | |||||||||||||||||||
Average shares outstanding - diluted | 42,837 | 46,223 | 43,121 | 47,988 | |||||||||||||||||||
Net claims and claim expense ratio | 111.4 | % | 119.4 | % | 74.7 | % | 82.7 | % | |||||||||||||||
Underwriting expense ratio | 27.3 | % | 25.7 | % | 28.9 | % | 27.3 | % | |||||||||||||||
Combined ratio | 138.7 | % | 145.1 | % | 103.6 | % | 110.0 | % | |||||||||||||||
Return on average common equity - annualized | (72.4) | % | (28.4) | % | (40.5) | % | (5.8) | % | |||||||||||||||
Operating return on average common equity - annualized (1) | (34.8) | % | (26.1) | % | (0.2) | % | (2.7) | % | |||||||||||||||
(1)See Comments on Regulation G for a reconciliation of non-GAAP financial measures.
10
| RenaissanceRe Holdings Ltd. | |||||||||||
| Summary Consolidated Balance Sheets | |||||||||||
| (in thousands of United States Dollars, except per share amounts) | |||||||||||
| September 30, 2022 | December 31, 2021 | ||||||||||
| Assets | (Unaudited) | (Audited) | |||||||||
| Fixed maturity investments trading, at fair value | $ | 12,671,098 | $ | 13,507,131 | |||||||
| Short term investments, at fair value | 4,935,960 | 5,298,385 | |||||||||
| Equity investments trading, at fair value | 950,393 | 546,016 | |||||||||
| Other investments, at fair value | 2,263,164 | 1,993,059 | |||||||||
| Investments in other ventures, under equity method | 72,535 | 98,068 | |||||||||
| Total investments | 20,893,150 | 21,442,659 | |||||||||
| Cash and cash equivalents | 1,204,241 | 1,859,019 | |||||||||
| Premiums receivable | 5,479,305 | 3,781,542 | |||||||||
| Prepaid reinsurance premiums | 1,233,551 | 854,722 | |||||||||
| Reinsurance recoverable | 4,969,244 | 4,268,669 | |||||||||
| Accrued investment income | 84,508 | 55,740 | |||||||||
| Deferred acquisition costs and value of business acquired | 1,181,156 | 849,160 | |||||||||
| Receivable for investments sold | 298,346 | 380,442 | |||||||||
| Other assets | 353,147 | 224,053 | |||||||||
| Goodwill and other intangible assets | 239,187 | 243,496 | |||||||||
| Total assets | $ | 35,935,835 | $ | 33,959,502 | |||||||
| Liabilities, Noncontrolling Interests and Shareholders’ Equity | |||||||||||
| Liabilities | |||||||||||
| Reserve for claims and claim expenses | $ | 15,662,955 | $ | 13,294,630 | |||||||
| Unearned premiums | 5,046,150 | 3,531,213 | |||||||||
| Debt | 1,169,917 | 1,168,353 | |||||||||
| Reinsurance balances payable | 4,158,610 | 3,860,963 | |||||||||
| Payable for investments purchased | 589,886 | 1,170,568 | |||||||||
| Other liabilities | 251,485 | 755,441 | |||||||||
| Total liabilities | 26,879,003 | 23,781,168 | |||||||||
| Redeemable noncontrolling interests | 4,174,960 | 3,554,053 | |||||||||
| Shareholders’ Equity | |||||||||||
| Preference shares | 750,000 | 750,000 | |||||||||
| Common shares | 43,702 | 44,445 | |||||||||
| Additional paid-in capital | 465,565 | 608,121 | |||||||||
| Accumulated other comprehensive income (loss) | (16,773) | (10,909) | |||||||||
| Retained earnings | 3,639,378 | 5,232,624 | |||||||||
| Total shareholders’ equity attributable to RenaissanceRe | 4,881,872 | 6,624,281 | |||||||||
| Total liabilities, noncontrolling interests and shareholders’ equity | $ | 35,935,835 | $ | 33,959,502 | |||||||
| Book value per common share | $ | 94.55 | $ | 132.17 | |||||||
11
| RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||
| Supplemental Financial Data - Segment Information | |||||||||||||||||||||||
| (in thousands of United States Dollars, except percentages) | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Three months ended September 30, 2022 | |||||||||||||||||||||||
| Property | Casualty and Specialty | Other | Total | ||||||||||||||||||||
| Gross premiums written | $ | 800,330 | $ | 1,420,331 | $ | — | $ | 2,220,661 | |||||||||||||||
| Net premiums written | $ | 696,520 | $ | 1,125,191 | $ | — | $ | 1,821,711 | |||||||||||||||
| Net premiums earned | $ | 839,817 | $ | 927,204 | $ | — | $ | 1,767,021 | |||||||||||||||
| Net claims and claim expenses incurred | 1,372,583 | 595,348 | — | 1,967,931 | |||||||||||||||||||
| Acquisition expenses | 141,675 | 275,969 | — | 417,644 | |||||||||||||||||||
| Operational expenses | 48,158 | 16,402 | — | 64,560 | |||||||||||||||||||
| Underwriting income (loss) | $ | (722,599) | $ | 39,485 | $ | — | (683,114) | ||||||||||||||||
| Net investment income | 157,793 | 157,793 | |||||||||||||||||||||
| Net foreign exchange gains (losses) | (1,383) | (1,383) | |||||||||||||||||||||
| Equity in earnings of other ventures | 1,739 | 1,739 | |||||||||||||||||||||
| Other income (loss) | 2,834 | 2,834 | |||||||||||||||||||||
| Net realized and unrealized gains (losses) on investments | (641,500) | (641,500) | |||||||||||||||||||||
| Corporate expenses | (10,384) | (10,384) | |||||||||||||||||||||
| Interest expense | (12,101) | (12,101) | |||||||||||||||||||||
| Income (loss) before taxes and redeemable noncontrolling interests | (1,186,116) | ||||||||||||||||||||||
| Income tax benefit (expense) | (2,814) | (2,814) | |||||||||||||||||||||
| Net (income) loss attributable to redeemable noncontrolling interests | 372,429 | 372,429 | |||||||||||||||||||||
| Dividends on preference shares | (8,843) | (8,843) | |||||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | (825,344) | |||||||||||||||||||||
| Net claims and claim expenses incurred – current accident year | $ | 1,396,842 | $ | 602,995 | $ | — | $ | 1,999,837 | |||||||||||||||
| Net claims and claim expenses incurred – prior accident years | (24,259) | (7,647) | — | (31,906) | |||||||||||||||||||
| Net claims and claim expenses incurred – total | $ | 1,372,583 | $ | 595,348 | $ | — | $ | 1,967,931 | |||||||||||||||
| Net claims and claim expense ratio – current accident year | 166.3 | % | 65.0 | % | 113.2 | % | |||||||||||||||||
| Net claims and claim expense ratio – prior accident years | (2.9) | % | (0.8) | % | (1.8) | % | |||||||||||||||||
| Net claims and claim expense ratio – calendar year | 163.4 | % | 64.2 | % | 111.4 | % | |||||||||||||||||
| Underwriting expense ratio | 22.6 | % | 31.5 | % | 27.3 | % | |||||||||||||||||
| Combined ratio | 186.0 | % | 95.7 | % | 138.7 | % | |||||||||||||||||
| Three months ended September 30, 2021 | |||||||||||||||||||||||
| Property | Casualty and Specialty | Other | Total | ||||||||||||||||||||
| Gross premiums written | $ | 773,692 | $ | 1,000,488 | $ | — | $ | 1,774,180 | |||||||||||||||
| Net premiums written | $ | 681,095 | $ | 805,345 | $ | — | $ | 1,486,440 | |||||||||||||||
| Net premiums earned | $ | 816,376 | $ | 689,889 | $ | — | $ | 1,506,265 | |||||||||||||||
| Net claims and claim expenses incurred | 1,323,678 | 474,367 | — | 1,798,045 | |||||||||||||||||||
| Acquisition expenses | 134,179 | 193,869 | — | 328,048 | |||||||||||||||||||
| Operational expenses | 40,448 | 18,549 | — | 58,997 | |||||||||||||||||||
| Underwriting income (loss) | $ | (681,929) | $ | 3,104 | $ | — | (678,825) | ||||||||||||||||
| Net investment income | 78,267 | 78,267 | |||||||||||||||||||||
| Net foreign exchange gains (losses) | (4,755) | (4,755) | |||||||||||||||||||||
| Equity in earnings of other ventures | 5,305 | 5,305 | |||||||||||||||||||||
| Other income (loss) | 1,692 | 1,692 | |||||||||||||||||||||
| Net realized and unrealized gains (losses) on investments | (42,071) | (42,071) | |||||||||||||||||||||
| Corporate expenses | (10,196) | (10,196) | |||||||||||||||||||||
| Interest expense | (11,919) | (11,919) | |||||||||||||||||||||
| Income (loss) before taxes and redeemable noncontrolling interests | (662,502) | ||||||||||||||||||||||
| Income tax benefit (expense) | 23,630 | 23,630 | |||||||||||||||||||||
| Net (income) loss attributable to redeemable noncontrolling interests | 198,495 | 198,495 | |||||||||||||||||||||
| Dividends on preference shares | (9,845) | (9,845) | |||||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | (450,222) | |||||||||||||||||||||
| Net claims and claim expenses incurred – current accident year | $ | 1,469,613 | $ | 476,082 | $ | — | $ | 1,945,695 | |||||||||||||||
| Net claims and claim expenses incurred – prior accident years | (145,935) | (1,715) | — | (147,650) | |||||||||||||||||||
| Net claims and claim expenses incurred – total | $ | 1,323,678 | $ | 474,367 | $ | — | $ | 1,798,045 | |||||||||||||||
| Net claims and claim expense ratio – current accident year | 180.0 | % | 69.0 | % | 129.2 | % | |||||||||||||||||
| Net claims and claim expense ratio – prior accident years | (17.9) | % | (0.2) | % | (9.8) | % | |||||||||||||||||
| Net claims and claim expense ratio – calendar year | 162.1 | % | 68.8 | % | 119.4 | % | |||||||||||||||||
| Underwriting expense ratio | 21.4 | % | 30.8 | % | 25.7 | % | |||||||||||||||||
| Combined ratio | 183.5 | % | 99.6 | % | 145.1 | % | |||||||||||||||||
12
| RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||
| Supplemental Financial Data - Segment Information | |||||||||||||||||||||||
| (in thousands of United States Dollars, except percentages) | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Nine months ended September 30, 2022 | |||||||||||||||||||||||
| Property | Casualty and Specialty | Other | Total | ||||||||||||||||||||
| Gross premiums written | $ | 3,362,159 | $ | 4,266,105 | $ | — | $ | 7,628,264 | |||||||||||||||
| Net premiums written | $ | 2,474,661 | $ | 3,375,883 | $ | — | $ | 5,850,544 | |||||||||||||||
| Net premiums earned | $ | 2,081,989 | $ | 2,627,840 | $ | — | $ | 4,709,829 | |||||||||||||||
| Net claims and claim expenses incurred | 1,804,268 | 1,711,635 | — | 3,515,903 | |||||||||||||||||||
| Acquisition expenses | 406,338 | 749,051 | — | 1,155,389 | |||||||||||||||||||
| Operational expenses | 144,717 | 60,270 | — | 204,987 | |||||||||||||||||||
| Underwriting income (loss) | $ | (273,334) | $ | 106,884 | $ | — | (166,450) | ||||||||||||||||
| Net investment income | 348,695 | 348,695 | |||||||||||||||||||||
| Net foreign exchange gain (loss) | (67,690) | (67,690) | |||||||||||||||||||||
| Equity in earnings of other ventures | 2,732 | 2,732 | |||||||||||||||||||||
| Other income (loss) | 4,950 | 4,950 | |||||||||||||||||||||
| Net realized and unrealized gain (loss) on investments | (1,968,624) | (1,968,624) | |||||||||||||||||||||
| Corporate expenses | (35,238) | (35,238) | |||||||||||||||||||||
| Interest expense | (35,951) | (35,951) | |||||||||||||||||||||
| Income (loss) before taxes and redeemable noncontrolling interests | (1,917,576) | ||||||||||||||||||||||
| Income tax benefit (expense) | 64,427 | 64,427 | |||||||||||||||||||||
| Net (income) loss attributable to redeemable noncontrolling interests | 335,010 | 335,010 | |||||||||||||||||||||
| Dividends on preference shares | (26,531) | (26,531) | |||||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | (1,544,670) | |||||||||||||||||||||
| Net claims and claim expenses incurred – current accident year | $ | 1,880,337 | $ | 1,728,262 | $ | — | $ | 3,608,599 | |||||||||||||||
| Net claims and claim expenses incurred – prior accident years | (76,069) | (16,627) | — | (92,696) | |||||||||||||||||||
| Net claims and claim expenses incurred – total | $ | 1,804,268 | $ | 1,711,635 | $ | — | $ | 3,515,903 | |||||||||||||||
| Net claims and claim expense ratio – current accident year | 90.3 | % | 65.8 | % | 76.6 | % | |||||||||||||||||
| Net claims and claim expense ratio – prior accident years | (3.6) | % | (0.7) | % | (1.9) | % | |||||||||||||||||
| Net claims and claim expense ratio – calendar year | 86.7 | % | 65.1 | % | 74.7 | % | |||||||||||||||||
| Underwriting expense ratio | 26.4 | % | 30.8 | % | 28.9 | % | |||||||||||||||||
| Combined ratio | 113.1 | % | 95.9 | % | 103.6 | % | |||||||||||||||||
| Nine months ended September 30, 2021 | |||||||||||||||||||||||
| Property | Casualty and Specialty | Other | Total | ||||||||||||||||||||
| Gross premiums written | $ | 3,574,067 | $ | 2,946,713 | $ | — | $ | 6,520,780 | |||||||||||||||
| Net premiums written | $ | 2,492,890 | $ | 2,329,925 | $ | — | $ | 4,822,815 | |||||||||||||||
| Net premiums earned | $ | 1,981,939 | $ | 1,870,952 | $ | — | $ | 3,852,891 | |||||||||||||||
| Net claims and claim expenses incurred | 1,919,660 | 1,265,457 | — | 3,185,117 | |||||||||||||||||||
| Acquisition expenses | 356,171 | 524,701 | — | 880,872 | |||||||||||||||||||
| Operational expenses | 114,710 | 57,801 | — | 172,511 | |||||||||||||||||||
| Underwriting income (loss) | $ | (408,602) | $ | 22,993 | $ | — | (385,609) | ||||||||||||||||
| Net investment income | 238,996 | 238,996 | |||||||||||||||||||||
| Net foreign exchange gain (loss) | (24,309) | (24,309) | |||||||||||||||||||||
| Equity in earnings of other ventures | 8,479 | 8,479 | |||||||||||||||||||||
| Other income (loss) | 4,449 | 4,449 | |||||||||||||||||||||
| Net realized and unrealized gain (loss) on investments | (196,616) | (196,616) | |||||||||||||||||||||
| Corporate expenses | (30,726) | (30,726) | |||||||||||||||||||||
| Interest expense | (35,664) | (35,664) | |||||||||||||||||||||
| Income (loss) before taxes and redeemable noncontrolling interests | (421,000) | ||||||||||||||||||||||
| Income tax benefit (expense) | 29,284 | 29,284 | |||||||||||||||||||||
| Net (income) loss attributable to redeemable noncontrolling interests | 131,801 | 131,801 | |||||||||||||||||||||
| Dividends on preference shares | (24,423) | (24,423) | |||||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | (284,338) | |||||||||||||||||||||
| Net claims and claim expenses incurred – current accident year | $ | 2,121,740 | $ | 1,272,088 | $ | — | $ | 3,393,828 | |||||||||||||||
| Net claims and claim expenses incurred – prior accident years | (202,080) | (6,631) | — | (208,711) | |||||||||||||||||||
| Net claims and claim expenses incurred – total | $ | 1,919,660 | $ | 1,265,457 | $ | — | $ | 3,185,117 | |||||||||||||||
| Net claims and claim expense ratio – current accident year | 107.1 | % | 68.0 | % | 88.1 | % | |||||||||||||||||
| Net claims and claim expense ratio – prior accident years | (10.2) | % | (0.4) | % | (5.4) | % | |||||||||||||||||
| Net claims and claim expense ratio – calendar year | 96.9 | % | 67.6 | % | 82.7 | % | |||||||||||||||||
| Underwriting expense ratio | 23.7 | % | 31.2 | % | 27.3 | % | |||||||||||||||||
| Combined ratio | 120.6 | % | 98.8 | % | 110.0 | % | |||||||||||||||||
13
| RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||
| Supplemental Financial Data - Gross Premiums Written | |||||||||||||||||||||||
| (in thousands of United States Dollars) | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | ||||||||||||||||||||
| Property Segment | |||||||||||||||||||||||
| Catastrophe | $ | 391,347 | $ | 335,493 | $ | 2,080,771 | $ | 2,227,941 | |||||||||||||||
| Other property | 408,983 | 438,199 | 1,281,388 | 1,346,126 | |||||||||||||||||||
Property segment gross premiums written | $ | 800,330 | $ | 773,692 | $ | 3,362,159 | $ | 3,574,067 | |||||||||||||||
| Casualty and Specialty Segment | |||||||||||||||||||||||
General casualty (1) | $ | 397,818 | $ | 346,754 | $ | 1,200,693 | $ | 976,610 | |||||||||||||||
Professional liability (2) | 380,125 | 329,848 | 1,378,645 | 950,607 | |||||||||||||||||||
Financial lines (3) | 365,863 | 128,586 | 844,447 | 359,147 | |||||||||||||||||||
Other (4) | 276,525 | 195,300 | 842,320 | 660,349 | |||||||||||||||||||
Casualty and Specialty segment gross premiums written | $ | 1,420,331 | $ | 1,000,488 | $ | 4,266,105 | $ | 2,946,713 | |||||||||||||||
| (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. | ||||
14
| RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||
| Supplemental Financial Data - Total Investment Result | |||||||||||||||||||||||
| (in thousands of United States Dollars, except percentages) | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | ||||||||||||||||||||
| Fixed maturity investments trading | $ | 107,182 | $ | 56,825 | $ | 246,146 | $ | 179,268 | |||||||||||||||
| Short term investments | 11,601 | 514 | 17,134 | 1,869 | |||||||||||||||||||
| Equity investments trading | 6,120 | 1,823 | 13,390 | 4,940 | |||||||||||||||||||
| Other investments | |||||||||||||||||||||||
| Catastrophe bonds | 25,748 | 17,184 | 63,343 | 48,333 | |||||||||||||||||||
| Other | 11,258 | 7,571 | 23,704 | 20,711 | |||||||||||||||||||
| Cash and cash equivalents | 1,386 | (38) | 1,250 | 223 | |||||||||||||||||||
| 163,295 | 83,879 | 364,967 | 255,344 | ||||||||||||||||||||
| Investment expenses | (5,502) | (5,612) | (16,272) | (16,348) | |||||||||||||||||||
| Net investment income | 157,793 | 78,267 | 348,695 | 238,996 | |||||||||||||||||||
| Net investment income return - annualized | 3.2 | % | 1.4 | % | 2.3 | % | 1.5 | % | |||||||||||||||
| Net realized gains (losses) on fixed maturity investments trading | (213,493) | 27,501 | (621,799) | 81,060 | |||||||||||||||||||
| Net unrealized gains (losses) on fixed maturity investments trading | (210,665) | (56,869) | (824,662) | (289,872) | |||||||||||||||||||
| Net realized and unrealized gains (losses) on investments-related derivatives | (55,580) | (2,056) | (161,946) | 3,476 | |||||||||||||||||||
| Net realized gains (losses) on equity investments trading | 3,066 | 52,604 | 38,638 | 255,902 | |||||||||||||||||||
| Net unrealized gains (losses) on equity investments trading | (46,301) | (74,284) | (222,074) | (279,938) | |||||||||||||||||||
| Other investments | |||||||||||||||||||||||
| Net realized and unrealized gains (losses) on other investments - catastrophe bonds | (126,992) | (5,994) | (159,913) | (25,075) | |||||||||||||||||||
| Net realized and unrealized gains (losses) on other investments - other | 8,465 | 17,027 | (16,868) | 57,831 | |||||||||||||||||||
| Net realized and unrealized gains (losses) on investments | (641,500) | (42,071) | (1,968,624) | (196,616) | |||||||||||||||||||
| Total investment result | $ | (483,707) | $ | 36,196 | $ | (1,619,929) | $ | 42,380 | |||||||||||||||
| Total investment return - annualized | (8.9) | % | 0.7 | % | (10.1) | % | 0.3 | % | |||||||||||||||
15
| 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 or outside the industry. These measures may not, however, be comparable to similarly titled measures used by companies within or 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.
16
| Three months ended | Nine months ended | ||||||||||||||||||||||
| (in thousands of United States Dollars, except per share amounts and percentages) | September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | |||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | (825,344) | $ | (450,222) | $ | (1,544,670) | $ | (284,338) | |||||||||||||||
| Adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds | 514,508 | 36,077 | 1,808,711 | 171,541 | |||||||||||||||||||
| Adjustment for net foreign exchange losses (gains) | 1,383 | 4,755 | 67,690 | 24,309 | |||||||||||||||||||
| Adjustment for corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe UK | — | — | — | 135 | |||||||||||||||||||
Adjustment for income tax expense (benefit) (1) | 7,269 | 286 | (77,331) | (7,893) | |||||||||||||||||||
Adjustment for net income (loss) attributable to redeemable noncontrolling interests (2) | (94,490) | (5,434) | (260,997) | (35,847) | |||||||||||||||||||
| Operating income (loss) available (attributable) to RenaissanceRe common shareholders | $ | (396,674) | $ | (414,538) | $ | (6,597) | $ | (132,093) | |||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted | $ | (19.27) | $ | (9.75) | $ | (35.84) | $ | (5.94) | |||||||||||||||
| Adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds | 12.01 | 0.78 | 41.95 | 3.57 | |||||||||||||||||||
| Adjustment for net foreign exchange losses (gains) | 0.03 | 0.10 | 1.57 | 0.51 | |||||||||||||||||||
| Adjustment for corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe UK | — | — | — | — | |||||||||||||||||||
Adjustment for income tax expense (benefit) (1) | 0.17 | 0.01 | (1.79) | (0.16) | |||||||||||||||||||
Adjustment for net income (loss) attributable to redeemable noncontrolling interests (2) | (2.21) | (0.12) | (6.05) | (0.75) | |||||||||||||||||||
| Operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted | $ | (9.27) | $ | (8.98) | $ | (0.16) | $ | (2.77) | |||||||||||||||
| Return on average common equity - annualized | (72.4) | % | (28.4) | % | (40.5) | % | (5.8) | % | |||||||||||||||
| Adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds | 45.2 | % | 2.3 | % | 47.3 | % | 3.5 | % | |||||||||||||||
| Adjustment for net foreign exchange losses (gains) | 0.1 | % | 0.3 | % | 1.8 | % | 0.5 | % | |||||||||||||||
| Adjustment for corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe UK | — | % | — | % | — | % | — | % | |||||||||||||||
Adjustment for income tax expense (benefit) (1) | 0.6 | % | — | % | (2.0) | % | (0.2) | % | |||||||||||||||
Adjustment for net income (loss) attributable to redeemable noncontrolling interests (2) | (8.3) | % | (0.3) | % | (6.8) | % | (0.7) | % | |||||||||||||||
Operating return on average common equity - annualized | (34.8) | % | (26.1) | % | (0.2) | % | (2.7) | % | |||||||||||||||
(1)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.
(2)Represents the portion of the adjustments above that are attributable to the Company’s redeemable noncontrolling interests, including the income tax impact of those adjustments.
17
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.”
| September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||||||||||||||||
Book value per common share | $ | 94.55 | $ | 113.69 | $ | 121.44 | $ | 132.17 | $ | 128.91 | |||||||||||||||||||
Adjustment for goodwill and other intangibles (1) | (5.89) | (5.90) | (5.89) | (5.90) | (5.67) | ||||||||||||||||||||||||
Tangible book value per common share | 88.66 | 107.79 | 115.55 | 126.27 | 123.24 | ||||||||||||||||||||||||
Adjustment for accumulated dividends | 24.63 | 24.26 | 23.89 | 23.52 | 23.16 | ||||||||||||||||||||||||
Tangible book value per common share plus accumulated dividends | $ | 113.29 | $ | 132.05 | $ | 139.44 | $ | 149.79 | $ | 146.40 | |||||||||||||||||||
Quarterly change in book value per common share | (16.8) | % | (6.4) | % | (8.1) | % | 2.5 | % | (7.5) | % | |||||||||||||||||||
Quarterly change in tangible book value per common share plus change in accumulated dividends | (17.4) | % | (6.4) | % | (8.2) | % | 2.8 | % | (7.6) | % | |||||||||||||||||||
| Year to date change in book value per common share | (28.5) | % | (14.0) | % | (8.1) | % | (4.5) | % | (6.9) | % | |||||||||||||||||||
Year to date change in tangible book value per common share plus change in accumulated dividends | (28.9) | % | (14.0) | % | (8.2) | % | (4.0) | % | (6.6) | % | |||||||||||||||||||
(1)At September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021, and September 30, 2021, the adjustment for goodwill and other intangibles included $18.0 million, $18.3 million, $18.4 million, $18.6 million, and $19.0 million, respectively, of goodwill and other intangibles included in investments in other ventures, under equity method.
18
| 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. | Consolidated and Segment Underwriting Results - Five Quarter Trend | ||||||||||
| c. | Property Segment - Catastrophe and Other Property Underwriting Results | ||||||||||
| d. | Gross Premiums Written | ||||||||||
| e. | Net Premiums Written | ||||||||||
| f. | Net Premiums Earned | ||||||||||
| g. | Reserves for Claims and Claim Expenses | ||||||||||
| h. | Paid to Incurred Analysis | ||||||||||
| Managed Joint Ventures and Fee Income | |||||||||||
| a. | Fee Income | ||||||||||
| b. | Fee income - Five Quarter Trend | ||||||||||
| c. | Noncontrolling Interests | ||||||||||
| d. | DaVinciRe Holdings Ltd. and Subsidiary Consolidated Statements of Operations | ||||||||||
| Investments | |||||||||||
| a. | Total Investment Result | ||||||||||
| b. | Investments Composition | ||||||||||
| c. | Managed Investments - Credit Rating | ||||||||||
| d. | Retained Investments - Credit Rating | ||||||||||
| 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 that specializes in matching well-structured risks with efficient sources of capital. The Company provides property, casualty and specialty reinsurance and certain insurance solutions to customers, principally through intermediaries. Established in 1993, the Company has offices in Bermuda, Australia, Ireland, Singapore, Switzerland, the United Kingdom and the United States.
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 total investment result,” “retained investments, at fair value,” “retained investments, unrealized gain (loss)” and “operating (income) loss attributable to redeemable noncontrolling interests.” 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 28 through 35 for “Comments on Regulation G.”
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.
Cautionary Statement Regarding Forward-Looking Statements | ||
Any forward-looking statements made in this Financial Supplement 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 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 performance of the
i | ||||||||
Company’s investment portfolio and financial market volatility; the effects of inflation; 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 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 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 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 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 and Quarterly Reports on Form 10-Q.
ii | ||||||||
| RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||
| Financial Highlights | |||||||||||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | ||||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | (825,344) | $ | (450,222) | $ | (1,544,670) | $ | (284,338) | |||||||||||||||
Operating income (loss) available (attributable) to RenaissanceRe common shareholders (1) | $ | (396,674) | $ | (414,538) | $ | (6,597) | $ | (132,093) | |||||||||||||||
| Underwriting income | |||||||||||||||||||||||
| Gross premiums written | $ | 2,220,661 | $ | 1,774,180 | $ | 7,628,264 | $ | 6,520,780 | |||||||||||||||
| Net premiums written | 1,821,711 | 1,486,440 | 5,850,544 | 4,822,815 | |||||||||||||||||||
| Underwriting income (loss) | (683,114) | (678,825) | (166,450) | (385,609) | |||||||||||||||||||
| Net claims and claim expense ratio: | |||||||||||||||||||||||
| Current accident year | 113.2 | % | 129.2 | % | 76.6 | % | 88.1 | % | |||||||||||||||
| Prior accident years | (1.8) | % | (9.8) | % | (1.9) | % | (5.4) | % | |||||||||||||||
| Calendar year | 111.4 | % | 119.4 | % | 74.7 | % | 82.7 | % | |||||||||||||||
| Acquisition expense ratio | 23.6 | % | 21.8 | % | 24.5 | % | 22.9 | % | |||||||||||||||
| Operating expense ratio | 3.7 | % | 3.9 | % | 4.4 | % | 4.5 | % | |||||||||||||||
| Combined ratio | 138.7 | % | 145.1 | % | 103.6 | % | 110.0 | % | |||||||||||||||
| Fee income | |||||||||||||||||||||||
| Management fee income | $ | 24,989 | $ | 23,854 | $ | 82,918 | $ | 84,348 | |||||||||||||||
| Performance fee income | 739 | 4,481 | 5,414 | 14,133 | |||||||||||||||||||
| Total fee income | $ | 25,728 | $ | 28,335 | $ | 88,332 | $ | 98,481 | |||||||||||||||
| Investment results - managed | |||||||||||||||||||||||
| Net investment income | $ | 157,793 | $ | 78,267 | $ | 348,695 | $ | 238,996 | |||||||||||||||
| Net realized and unrealized gains (losses) on investments | (641,500) | (42,071) | (1,968,624) | (196,616) | |||||||||||||||||||
| Total investment result | $ | (483,707) | $ | 36,196 | $ | (1,619,929) | $ | 42,380 | |||||||||||||||
| Total investment return - annualized | (8.9) | % | 0.7 | % | (10.1) | % | 0.3 | % | |||||||||||||||
Investment results - retained (1) | |||||||||||||||||||||||
| Net investment income | $ | 110,105 | $ | 60,105 | $ | 247,763 | $ | 185,685 | |||||||||||||||
| Net realized and unrealized gains (losses) on investments | (453,242) | (37,975) | (1,613,936) | (169,272) | |||||||||||||||||||
| Total investment result | $ | (343,137) | $ | 22,130 | $ | (1,366,173) | $ | 16,413 | |||||||||||||||
| Total investment return - annualized | (9.6) | % | 0.6 | % | (12.7) | % | 0.2 | % | |||||||||||||||
(1) See “Comments on Regulation G” for a reconciliation of non-GAAP financial measures.
1 | | |||||||
| Financial Highlights - Per Share Data & ROE | |||||||||||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | ||||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - basic | $ | (19.27) | $ | (9.75) | $ | (35.84) | $ | (5.94) | |||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted | $ | (19.27) | $ | (9.75) | $ | (35.84) | $ | (5.94) | |||||||||||||||
Operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted (1) | $ | (9.27) | $ | (8.98) | $ | (0.16) | $ | (2.77) | |||||||||||||||
| Average shares outstanding - basic | 42,837 | 46,223 | 43,121 | 47,988 | |||||||||||||||||||
| Average shares outstanding - diluted | 42,837 | 46,223 | 43,121 | 47,988 | |||||||||||||||||||
| Return on average common equity - annualized | (72.4) | % | (28.4) | % | (40.5) | % | (5.8) | % | |||||||||||||||
Operating return on average common equity - annualized (1) | (34.8) | % | (26.1) | % | (0.2) | % | (2.7) | % | |||||||||||||||
| September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||
| Book value per common share | $ | 94.55 | $ | 132.17 | |||||||||||||||||||
Tangible book value per common share (1) | $ | 88.66 | $ | 126.27 | |||||||||||||||||||
Tangible book value per common share plus accumulated dividends (1) | $ | 113.29 | $ | 149.79 | |||||||||||||||||||
Year to date change in tangible book value per common share plus change in accumulated dividends (1) | (28.9) | % | (4.0) | % | |||||||||||||||||||
(1) See “Comments on Regulation G” for a reconciliation of non-GAAP financial measures.
2 | | |||||||
| Summary Consolidated Financial Statements | |||||||||||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Gross premiums written | $ | 2,220,661 | $ | 1,774,180 | $ | 7,628,264 | $ | 6,520,780 | |||||||||||||||
| Net premiums written | $ | 1,821,711 | $ | 1,486,440 | $ | 5,850,544 | $ | 4,822,815 | |||||||||||||||
| Decrease (increase) in unearned premiums | (54,690) | 19,825 | (1,140,715) | (969,924) | |||||||||||||||||||
| Net premiums earned | 1,767,021 | 1,506,265 | 4,709,829 | 3,852,891 | |||||||||||||||||||
| Net investment income | 157,793 | 78,267 | 348,695 | 238,996 | |||||||||||||||||||
| Net foreign exchange gains (losses) | (1,383) | (4,755) | (67,690) | (24,309) | |||||||||||||||||||
| Equity in earnings (losses) of other ventures | 1,739 | 5,305 | 2,732 | 8,479 | |||||||||||||||||||
| Other income (loss) | 2,834 | 1,692 | 4,950 | 4,449 | |||||||||||||||||||
| Net realized and unrealized gains (losses) on investments | (641,500) | (42,071) | (1,968,624) | (196,616) | |||||||||||||||||||
| Total revenues | 1,286,504 | 1,544,703 | 3,029,892 | 3,883,890 | |||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Net claims and claim expenses incurred | 1,967,931 | 1,798,045 | 3,515,903 | 3,185,117 | |||||||||||||||||||
| Acquisition expenses | 417,644 | 328,048 | 1,155,389 | 880,872 | |||||||||||||||||||
| Operational expenses | 64,560 | 58,997 | 204,987 | 172,511 | |||||||||||||||||||
| Corporate expenses | 10,384 | 10,196 | 35,238 | 30,726 | |||||||||||||||||||
| Interest expense | 12,101 | 11,919 | 35,951 | 35,664 | |||||||||||||||||||
| Total expenses | 2,472,620 | 2,207,205 | 4,947,468 | 4,304,890 | |||||||||||||||||||
| Income (loss) before taxes | (1,186,116) | (662,502) | (1,917,576) | (421,000) | |||||||||||||||||||
| Income tax benefit (expense) | (2,814) | 23,630 | 64,427 | 29,284 | |||||||||||||||||||
| Net income (loss) | (1,188,930) | (638,872) | (1,853,149) | (391,716) | |||||||||||||||||||
| Net (income) loss attributable to redeemable noncontrolling interests | 372,429 | 198,495 | 335,010 | 131,801 | |||||||||||||||||||
| Net income (loss) attributable to RenaissanceRe | (816,501) | (440,377) | (1,518,139) | (259,915) | |||||||||||||||||||
| Dividends on preference shares | (8,843) | (9,845) | (26,531) | (24,423) | |||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | (825,344) | $ | (450,222) | $ | (1,544,670) | $ | (284,338) | |||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - basic | $ | (19.27) | $ | (9.75) | $ | (35.84) | $ | (5.94) | |||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted | $ | (19.27) | $ | (9.75) | $ | (35.84) | $ | (5.94) | |||||||||||||||
Operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted (1) | $ | (9.27) | $ | (8.98) | $ | (0.16) | $ | (2.77) | |||||||||||||||
Return on average common equity - annualized | (72.4) | % | (28.4) | % | (40.5) | % | (5.8) | % | |||||||||||||||
Operating return on average common equity - annualized (1) | (34.8) | % | (26.1) | % | (0.2) | % | (2.7) | % | |||||||||||||||
3 | | |||||||
| Summary Consolidated Financial Statements | |||||||||||
| Consolidated Balance Sheets | |||||||||||
| September 30, 2022 | December 31, 2021 | ||||||||||
| Assets | |||||||||||
Fixed maturity investments trading, at fair value – amortized cost $13,555,195 at September 30, 2022 (December 31, 2021 – $13,552,579) | $ | 12,671,098 | $ | 13,507,131 | |||||||
| Short term investments, at fair value | 4,935,960 | 5,298,385 | |||||||||
| Equity investments trading, at fair value | 950,393 | 546,016 | |||||||||
| Other investments, at fair value | 2,263,164 | 1,993,059 | |||||||||
| Investments in other ventures, under equity method | 72,535 | 98,068 | |||||||||
| Total investments | 20,893,150 | 21,442,659 | |||||||||
| Cash and cash equivalents | 1,204,241 | 1,859,019 | |||||||||
| Premiums receivable | 5,479,305 | 3,781,542 | |||||||||
| Prepaid reinsurance premiums | 1,233,551 | 854,722 | |||||||||
| Reinsurance recoverable | 4,969,244 | 4,268,669 | |||||||||
| Accrued investment income | 84,508 | 55,740 | |||||||||
| Deferred acquisition costs and value of business acquired | 1,181,156 | 849,160 | |||||||||
| Receivable for investments sold | 298,346 | 380,442 | |||||||||
| Other assets | 353,147 | 224,053 | |||||||||
| Goodwill and other intangibles | 239,187 | 243,496 | |||||||||
| Total assets | $ | 35,935,835 | $ | 33,959,502 | |||||||
| Liabilities, Noncontrolling Interests and Shareholders' Equity | |||||||||||
| Liabilities | |||||||||||
| Reserve for claims and claim expenses | $ | 15,662,955 | $ | 13,294,630 | |||||||
| Unearned premiums | 5,046,150 | 3,531,213 | |||||||||
| Debt | 1,169,917 | 1,168,353 | |||||||||
| Reinsurance balances payable | 4,158,610 | 3,860,963 | |||||||||
| Payable for investments purchased | 589,886 | 1,170,568 | |||||||||
| Other liabilities | 251,485 | 755,441 | |||||||||
| Total liabilities | 26,879,003 | 23,781,168 | |||||||||
| Redeemable noncontrolling interests | 4,174,960 | 3,554,053 | |||||||||
| Shareholders' Equity | |||||||||||
Preference shares: $1.00 par value – 30,000 shares issued and outstanding at September 30, 2022 (December 31, 2021 – 30,000) | 750,000 | 750,000 | |||||||||
Common shares: $1.00 par value – 43,701,890 shares issued and outstanding at September 30, 2022 (December 31, 2021 – 44,444,831) | 43,702 | 44,445 | |||||||||
| Additional paid-in capital | 465,565 | 608,121 | |||||||||
| Accumulated other comprehensive loss | (16,773) | (10,909) | |||||||||
| Retained earnings | 3,639,378 | 5,232,624 | |||||||||
| Total shareholders' equity attributable to RenaissanceRe | 4,881,872 | 6,624,281 | |||||||||
| Total liabilities, noncontrolling interests and shareholders' equity | $ | 35,935,835 | $ | 33,959,502 | |||||||
| Book value per common share | $ | 94.55 | $ | 132.17 | |||||||
4 | | |||||||
| Underwriting and Reserves | |||||||||||||||||||||||||||||||||||
| Consolidated Segment Underwriting Results | |||||||||||||||||||||||||||||||||||
| Three months ended September 30, 2022 | Three months ended September 30, 2021 | ||||||||||||||||||||||||||||||||||
| Property | Casualty and Specialty | Total | Property | Casualty and Specialty | Total | ||||||||||||||||||||||||||||||
| Gross premiums written | $ | 800,330 | $ | 1,420,331 | $ | 2,220,661 | $ | 773,692 | $ | 1,000,488 | $ | 1,774,180 | |||||||||||||||||||||||
| Net premiums written | $ | 696,520 | $ | 1,125,191 | $ | 1,821,711 | $ | 681,095 | $ | 805,345 | $ | 1,486,440 | |||||||||||||||||||||||
| Net premiums earned | $ | 839,817 | $ | 927,204 | $ | 1,767,021 | $ | 816,376 | $ | 689,889 | $ | 1,506,265 | |||||||||||||||||||||||
| Net claims and claim expenses incurred | 1,372,583 | 595,348 | 1,967,931 | 1,323,678 | 474,367 | 1,798,045 | |||||||||||||||||||||||||||||
| Acquisition expenses | 141,675 | 275,969 | 417,644 | 134,179 | 193,869 | 328,048 | |||||||||||||||||||||||||||||
| Operational expenses | 48,158 | 16,402 | 64,560 | 40,448 | 18,549 | 58,997 | |||||||||||||||||||||||||||||
| Underwriting income (loss) | $ | (722,599) | $ | 39,485 | $ | (683,114) | $ | (681,929) | $ | 3,104 | $ | (678,825) | |||||||||||||||||||||||
| Net claims and claim expenses incurred: | |||||||||||||||||||||||||||||||||||
| Current accident year | $ | 1,396,842 | $ | 602,995 | $ | 1,999,837 | $ | 1,469,613 | $ | 476,082 | $ | 1,945,695 | |||||||||||||||||||||||
| Prior accident years | (24,259) | (7,647) | (31,906) | (145,935) | (1,715) | (147,650) | |||||||||||||||||||||||||||||
| Total | $ | 1,372,583 | $ | 595,348 | $ | 1,967,931 | $ | 1,323,678 | $ | 474,367 | $ | 1,798,045 | |||||||||||||||||||||||
| Net claims and claim expense ratio: | |||||||||||||||||||||||||||||||||||
| Current accident year | 166.3 | % | 65.0 | % | 113.2 | % | 180.0 | % | 69.0 | % | 129.2 | % | |||||||||||||||||||||||
| Prior accident years | (2.9) | % | (0.8) | % | (1.8) | % | (17.9) | % | (0.2) | % | (9.8) | % | |||||||||||||||||||||||
| Calendar year | 163.4 | % | 64.2 | % | 111.4 | % | 162.1 | % | 68.8 | % | 119.4 | % | |||||||||||||||||||||||
| Acquisition expense ratio | 16.9 | % | 29.7 | % | 23.6 | % | 16.4 | % | 28.1 | % | 21.8 | % | |||||||||||||||||||||||
| Operating expense ratio | 5.7 | % | 1.8 | % | 3.7 | % | 5.0 | % | 2.7 | % | 3.9 | % | |||||||||||||||||||||||
| Combined ratio | 186.0 | % | 95.7 | % | 138.7 | % | 183.5 | % | 99.6 | % | 145.1 | % | |||||||||||||||||||||||
5 | | |||||||
| Underwriting and Reserves | |||||||||||||||||||||||||||||||||||
| Consolidated Segment Underwriting Results | |||||||||||||||||||||||||||||||||||
| Nine months ended September 30, 2022 | Nine months ended September 30, 2021 | ||||||||||||||||||||||||||||||||||
| Property | Casualty and Specialty | Total | Property | Casualty and Specialty | Total | ||||||||||||||||||||||||||||||
| Gross premiums written | $ | 3,362,159 | $ | 4,266,105 | $ | 7,628,264 | $ | 3,574,067 | $ | 2,946,713 | $ | 6,520,780 | |||||||||||||||||||||||
| Net premiums written | $ | 2,474,661 | $ | 3,375,883 | $ | 5,850,544 | $ | 2,492,890 | $ | 2,329,925 | $ | 4,822,815 | |||||||||||||||||||||||
| Net premiums earned | $ | 2,081,989 | $ | 2,627,840 | $ | 4,709,829 | $ | 1,981,939 | $ | 1,870,952 | $ | 3,852,891 | |||||||||||||||||||||||
| Net claims and claim expenses incurred | 1,804,268 | 1,711,635 | 3,515,903 | 1,919,660 | 1,265,457 | 3,185,117 | |||||||||||||||||||||||||||||
| Acquisition expenses | 406,338 | 749,051 | 1,155,389 | 356,171 | 524,701 | 880,872 | |||||||||||||||||||||||||||||
| Operational expenses | 144,717 | 60,270 | 204,987 | 114,710 | 57,801 | 172,511 | |||||||||||||||||||||||||||||
| Underwriting income (loss) | $ | (273,334) | $ | 106,884 | $ | (166,450) | $ | (408,602) | $ | 22,993 | $ | (385,609) | |||||||||||||||||||||||
| Net claims and claim expenses incurred: | |||||||||||||||||||||||||||||||||||
| Current accident year | $ | 1,880,337 | $ | 1,728,262 | $ | 3,608,599 | $ | 2,121,740 | $ | 1,272,088 | $ | 3,393,828 | |||||||||||||||||||||||
| Prior accident years | (76,069) | (16,627) | (92,696) | (202,080) | (6,631) | (208,711) | |||||||||||||||||||||||||||||
| Total | $ | 1,804,268 | $ | 1,711,635 | $ | 3,515,903 | $ | 1,919,660 | $ | 1,265,457 | $ | 3,185,117 | |||||||||||||||||||||||
| Net claims and claim expense ratio: | |||||||||||||||||||||||||||||||||||
| Current accident year | 90.3 | % | 65.8 | % | 76.6 | % | 107.1 | % | 68.0 | % | 88.1 | % | |||||||||||||||||||||||
| Prior accident years | (3.6) | % | (0.7) | % | (1.9) | % | (10.2) | % | (0.4) | % | (5.4) | % | |||||||||||||||||||||||
| Calendar year | 86.7 | % | 65.1 | % | 74.7 | % | 96.9 | % | 67.6 | % | 82.7 | % | |||||||||||||||||||||||
| Acquisition expense ratio | 19.4 | % | 28.5 | % | 24.5 | % | 17.9 | % | 28.0 | % | 22.9 | % | |||||||||||||||||||||||
| Operating expense ratio | 7.0 | % | 2.3 | % | 4.4 | % | 5.8 | % | 3.1 | % | 4.5 | % | |||||||||||||||||||||||
| Combined ratio | 113.1 | % | 95.9 | % | 103.6 | % | 120.6 | % | 98.8 | % | 110.0 | % | |||||||||||||||||||||||
6 | | |||||||
| Underwriting and Reserves | |||||||||||||||||||||||||||||
| Consolidated Underwriting Results - Five Quarter Trend | |||||||||||||||||||||||||||||
| Total | |||||||||||||||||||||||||||||
| September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||||||||||||||||
| Gross premiums written | $ | 2,220,661 | $ | 2,464,639 | $ | 2,942,964 | $ | 1,313,018 | $ | 1,774,180 | |||||||||||||||||||
| Net premiums written | $ | 1,821,711 | $ | 1,863,616 | $ | 2,165,217 | $ | 1,116,560 | $ | 1,486,440 | |||||||||||||||||||
| Net premiums earned | $ | 1,767,021 | $ | 1,456,383 | $ | 1,486,425 | $ | 1,341,290 | $ | 1,506,265 | |||||||||||||||||||
| Net claims and claim expenses incurred | 1,967,931 | 706,239 | 841,733 | 690,970 | 1,798,045 | ||||||||||||||||||||||||
| Acquisition expenses | 417,644 | 361,238 | 376,507 | 333,986 | 328,048 | ||||||||||||||||||||||||
| Operational expenses | 64,560 | 72,520 | 67,907 | 39,673 | 58,997 | ||||||||||||||||||||||||
| Underwriting income (loss) | $ | (683,114) | $ | 316,386 | $ | 200,278 | $ | 276,661 | $ | (678,825) | |||||||||||||||||||
| Net claims and claim expenses incurred: | |||||||||||||||||||||||||||||
| Current accident year | $ | 1,999,837 | $ | 749,196 | $ | 859,566 | $ | 731,729 | $ | 1,945,695 | |||||||||||||||||||
| Prior accident years | (31,906) | (42,957) | (17,833) | (40,759) | (147,650) | ||||||||||||||||||||||||
| Total | $ | 1,967,931 | $ | 706,239 | $ | 841,733 | $ | 690,970 | $ | 1,798,045 | |||||||||||||||||||
| Net claims and claim expense ratio: | |||||||||||||||||||||||||||||
| Current accident year | 113.2 | % | 51.4 | % | 57.8 | % | 54.6 | % | 129.2 | % | |||||||||||||||||||
| Prior accident years | (1.8) | % | (2.9) | % | (1.2) | % | (3.1) | % | (9.8) | % | |||||||||||||||||||
| Calendar year | 111.4 | % | 48.5 | % | 56.6 | % | 51.5 | % | 119.4 | % | |||||||||||||||||||
| Acquisition expense ratio | 23.6 | % | 24.8 | % | 25.3 | % | 24.9 | % | 21.8 | % | |||||||||||||||||||
| Operating expense ratio | 3.7 | % | 5.0 | % | 4.6 | % | 3.0 | % | 3.9 | % | |||||||||||||||||||
| Combined ratio | 138.7 | % | 78.3 | % | 86.5 | % | 79.4 | % | 145.1 | % | |||||||||||||||||||
7 | | |||||||
| Underwriting and Reserves | |||||||||||||||||||||||||||||
| Property Underwriting Results - Five Quarter Trend | |||||||||||||||||||||||||||||
| Property | |||||||||||||||||||||||||||||
| September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||||||||||||||||
| Gross premiums written | $ | 800,330 | $ | 1,218,321 | $ | 1,343,508 | $ | 384,657 | $ | 773,692 | |||||||||||||||||||
| Net premiums written | $ | 696,520 | $ | 887,975 | $ | 890,166 | $ | 375,112 | $ | 681,095 | |||||||||||||||||||
| Net premiums earned | $ | 839,817 | $ | 623,581 | $ | 618,591 | $ | 626,359 | $ | 816,376 | |||||||||||||||||||
| Net claims and claim expenses incurred | 1,372,583 | 171,924 | 259,761 | 243,356 | 1,323,678 | ||||||||||||||||||||||||
| Acquisition expenses | 141,675 | 137,567 | 127,096 | 131,007 | 134,179 | ||||||||||||||||||||||||
| Operational expenses | 48,158 | 49,627 | 46,932 | 28,898 | 40,448 | ||||||||||||||||||||||||
| Underwriting income (loss) | $ | (722,599) | $ | 264,463 | $ | 184,802 | $ | 223,098 | $ | (681,929) | |||||||||||||||||||
| Net claims and claim expenses incurred: | |||||||||||||||||||||||||||||
| Current accident year | $ | 1,396,842 | $ | 206,976 | $ | 276,519 | $ | 274,649 | $ | 1,469,613 | |||||||||||||||||||
| Prior accident years | (24,259) | (35,052) | (16,758) | (31,293) | (145,935) | ||||||||||||||||||||||||
| Total | $ | 1,372,583 | $ | 171,924 | $ | 259,761 | $ | 243,356 | $ | 1,323,678 | |||||||||||||||||||
| Net claims and claim expense ratio: | |||||||||||||||||||||||||||||
| Current accident year | 166.3 | % | 33.2 | % | 44.7 | % | 43.8 | % | 180.0 | % | |||||||||||||||||||
| Prior accident years | (2.9) | % | (5.6) | % | (2.7) | % | (4.9) | % | (17.9) | % | |||||||||||||||||||
| Calendar year | 163.4 | % | 27.6 | % | 42.0 | % | 38.9 | % | 162.1 | % | |||||||||||||||||||
| Acquisition expense ratio | 16.9 | % | 22.0 | % | 20.5 | % | 20.9 | % | 16.4 | % | |||||||||||||||||||
| Operating expense ratio | 5.7 | % | 8.0 | % | 7.6 | % | 4.6 | % | 5.0 | % | |||||||||||||||||||
| Combined ratio | 186.0 | % | 57.6 | % | 70.1 | % | 64.4 | % | 183.5 | % | |||||||||||||||||||
8 | | |||||||
| Underwriting and Reserves | |||||||||||||||||||||||||||||
| Casualty and Specialty Underwriting Results - Five Quarter Trend | |||||||||||||||||||||||||||||
| Casualty and Specialty | |||||||||||||||||||||||||||||
| September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||||||||||||||||
| Gross premiums written | $ | 1,420,331 | $ | 1,246,318 | $ | 1,599,456 | $ | 928,361 | $ | 1,000,488 | |||||||||||||||||||
| Net premiums written | $ | 1,125,191 | $ | 975,641 | $ | 1,275,051 | $ | 741,448 | $ | 805,345 | |||||||||||||||||||
| Net premiums earned | $ | 927,204 | $ | 832,802 | $ | 867,834 | $ | 714,931 | $ | 689,889 | |||||||||||||||||||
| Net claims and claim expenses incurred | 595,348 | 534,315 | 581,972 | 447,614 | 474,367 | ||||||||||||||||||||||||
| Acquisition expenses | 275,969 | 223,671 | 249,411 | 202,979 | 193,869 | ||||||||||||||||||||||||
| Operational expenses | 16,402 | 22,893 | 20,975 | 10,775 | 18,549 | ||||||||||||||||||||||||
| Underwriting income (loss) | $ | 39,485 | $ | 51,923 | $ | 15,476 | $ | 53,563 | $ | 3,104 | |||||||||||||||||||
| Net claims and claim expenses incurred: | |||||||||||||||||||||||||||||
| Current accident year | $ | 602,995 | $ | 542,220 | $ | 583,047 | $ | 457,080 | $ | 476,082 | |||||||||||||||||||
| Prior accident years | (7,647) | (7,905) | (1,075) | (9,466) | (1,715) | ||||||||||||||||||||||||
| Total | $ | 595,348 | $ | 534,315 | $ | 581,972 | $ | 447,614 | $ | 474,367 | |||||||||||||||||||
| Net claims and claim expense ratio: | |||||||||||||||||||||||||||||
| Current accident year | 65.0 | % | 65.1 | % | 67.2 | % | 63.9 | % | 69.0 | % | |||||||||||||||||||
| Prior accident years | (0.8) | % | (0.9) | % | (0.1) | % | (1.3) | % | (0.2) | % | |||||||||||||||||||
| Calendar year | 64.2 | % | 64.2 | % | 67.1 | % | 62.6 | % | 68.8 | % | |||||||||||||||||||
| Acquisition expense ratio | 29.7 | % | 26.9 | % | 28.7 | % | 28.4 | % | 28.1 | % | |||||||||||||||||||
| Operating expense ratio | 1.8 | % | 2.7 | % | 2.4 | % | 1.5 | % | 2.7 | % | |||||||||||||||||||
| Combined ratio | 95.7 | % | 93.8 | % | 98.2 | % | 92.5 | % | 99.6 | % | |||||||||||||||||||
9 | | |||||||
| Underwriting and Reserves | |||||||||||||||||||||||||||||||||||
| Property Segment - Catastrophe and Other Property Underwriting Results | |||||||||||||||||||||||||||||||||||
| Three months ended September 30, 2022 | Three months ended September 30, 2021 | ||||||||||||||||||||||||||||||||||
| Catastrophe | Other Property | Total | Catastrophe | Other Property | Total | ||||||||||||||||||||||||||||||
| Gross premiums written | $ | 391,347 | $ | 408,983 | $ | 800,330 | $ | 335,493 | $ | 438,199 | $ | 773,692 | |||||||||||||||||||||||
| Net premiums written | $ | 324,265 | $ | 372,255 | $ | 696,520 | $ | 254,032 | $ | 427,063 | $ | 681,095 | |||||||||||||||||||||||
| Net premiums earned | $ | 506,749 | $ | 333,068 | $ | 839,817 | $ | 446,508 | $ | 369,868 | $ | 816,376 | |||||||||||||||||||||||
| Net claims and claim expenses incurred | 828,628 | 543,955 | 1,372,583 | 927,399 | 396,279 | 1,323,678 | |||||||||||||||||||||||||||||
| Acquisition expenses | 37,666 | 104,009 | 141,675 | 28,114 | 106,065 | 134,179 | |||||||||||||||||||||||||||||
| Operational expenses | 39,078 | 9,080 | 48,158 | 33,200 | 7,248 | 40,448 | |||||||||||||||||||||||||||||
| Underwriting income (loss) | $ | (398,623) | $ | (323,976) | $ | (722,599) | $ | (542,205) | $ | (139,724) | $ | (681,929) | |||||||||||||||||||||||
| Net claims and claim expenses incurred: | |||||||||||||||||||||||||||||||||||
| Current accident year | $ | 865,112 | $ | 531,730 | $ | 1,396,842 | $ | 1,053,963 | $ | 415,650 | $ | 1,469,613 | |||||||||||||||||||||||
| Prior accident years | (36,484) | 12,225 | (24,259) | (126,564) | (19,371) | (145,935) | |||||||||||||||||||||||||||||
| Total | $ | 828,628 | $ | 543,955 | $ | 1,372,583 | $ | 927,399 | $ | 396,279 | $ | 1,323,678 | |||||||||||||||||||||||
| Net claims and claim expense ratio: | |||||||||||||||||||||||||||||||||||
| Current accident year | 170.7 | % | 159.6 | % | 166.3 | % | 236.0 | % | 112.4 | % | 180.0 | % | |||||||||||||||||||||||
| Prior accident years | (7.2) | % | 3.7 | % | (2.9) | % | (28.3) | % | (5.3) | % | (17.9) | % | |||||||||||||||||||||||
| Calendar year | 163.5 | % | 163.3 | % | 163.4 | % | 207.7 | % | 107.1 | % | 162.1 | % | |||||||||||||||||||||||
| Acquisition expense ratio | 7.5 | % | 31.3 | % | 16.9 | % | 6.3 | % | 28.7 | % | 16.4 | % | |||||||||||||||||||||||
| Operating expense ratio | 7.7 | % | 2.7 | % | 5.7 | % | 7.4 | % | 2.0 | % | 5.0 | % | |||||||||||||||||||||||
| Combined ratio | 178.7 | % | 197.3 | % | 186.0 | % | 221.4 | % | 137.8 | % | 183.5 | % | |||||||||||||||||||||||
10 | | |||||||
| Underwriting and Reserves | |||||||||||||||||||||||||||||||||||
| Property Segment - Catastrophe and Other Property Underwriting Results | |||||||||||||||||||||||||||||||||||
| Nine months ended September 30, 2022 | Nine months ended September 30, 2021 | ||||||||||||||||||||||||||||||||||
| Catastrophe | Other Property | Total | Catastrophe | Other Property | Total | ||||||||||||||||||||||||||||||
| Gross premiums written | $ | 2,080,771 | $ | 1,281,388 | $ | 3,362,159 | $ | 2,227,941 | $ | 1,346,126 | $ | 3,574,067 | |||||||||||||||||||||||
| Net premiums written | $ | 1,424,556 | $ | 1,050,105 | $ | 2,474,661 | $ | 1,317,424 | $ | 1,175,466 | $ | 2,492,890 | |||||||||||||||||||||||
| Net premiums earned | $ | 1,065,516 | $ | 1,016,473 | $ | 2,081,989 | $ | 1,059,797 | $ | 922,142 | $ | 1,981,939 | |||||||||||||||||||||||
| Net claims and claim expenses incurred | 900,135 | 904,133 | 1,804,268 | 1,227,342 | 692,318 | 1,919,660 | |||||||||||||||||||||||||||||
| Acquisition expenses | 110,108 | 296,230 | 406,338 | 101,595 | 254,576 | 356,171 | |||||||||||||||||||||||||||||
| Operational expenses | 117,612 | 27,105 | 144,717 | 92,176 | 22,534 | 114,710 | |||||||||||||||||||||||||||||
| Underwriting income (loss) | $ | (62,339) | $ | (210,995) | $ | (273,334) | $ | (361,316) | $ | (47,286) | $ | (408,602) | |||||||||||||||||||||||
| Net claims and claim expenses incurred: | |||||||||||||||||||||||||||||||||||
| Current accident year | $ | 997,230 | $ | 883,107 | $ | 1,880,337 | $ | 1,409,011 | $ | 712,729 | $ | 2,121,740 | |||||||||||||||||||||||
| Prior accident years | (97,095) | 21,026 | (76,069) | (181,669) | (20,411) | (202,080) | |||||||||||||||||||||||||||||
| Total | $ | 900,135 | $ | 904,133 | $ | 1,804,268 | $ | 1,227,342 | $ | 692,318 | $ | 1,919,660 | |||||||||||||||||||||||
| Net claims and claim expense ratio: | |||||||||||||||||||||||||||||||||||
| Current accident year | 93.6 | % | 86.9 | % | 90.3 | % | 133.0 | % | 77.3 | % | 107.1 | % | |||||||||||||||||||||||
| Prior accident years | (9.1) | % | 2.0 | % | (3.6) | % | (17.2) | % | (2.2) | % | (10.2) | % | |||||||||||||||||||||||
| Calendar year | 84.5 | % | 88.9 | % | 86.7 | % | 115.8 | % | 75.1 | % | 96.9 | % | |||||||||||||||||||||||
| Acquisition expense ratio | 10.4 | % | 29.2 | % | 19.4 | % | 9.6 | % | 27.6 | % | 17.9 | % | |||||||||||||||||||||||
| Operating expense ratio | 11.0 | % | 2.7 | % | 7.0 | % | 8.7 | % | 2.4 | % | 5.8 | % | |||||||||||||||||||||||
| Combined ratio | 105.9 | % | 120.8 | % | 113.1 | % | 134.1 | % | 105.1 | % | 120.6 | % | |||||||||||||||||||||||
11 | | |||||||
| Underwriting and Reserves | |||||||||||||||||||||||
| Gross Premiums Written | |||||||||||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | ||||||||||||||||||||
| Property Segment | |||||||||||||||||||||||
| Catastrophe | $ | 162,960 | $ | 106,850 | $ | 1,829,509 | $ | 1,899,907 | |||||||||||||||
| Catastrophe - gross reinstatement premiums | 228,387 | 228,643 | 251,262 | 328,034 | |||||||||||||||||||
| Total catastrophe gross premiums written | $ | 391,347 | $ | 335,493 | $ | 2,080,771 | $ | 2,227,941 | |||||||||||||||
| Other property | 406,003 | 427,492 | 1,274,450 | 1,334,416 | |||||||||||||||||||
| Other property - gross reinstatement premiums | 2,980 | 10,707 | 6,938 | 11,710 | |||||||||||||||||||
| Total other property gross premiums written | $ | 408,983 | $ | 438,199 | $ | 1,281,388 | $ | 1,346,126 | |||||||||||||||
| Property segment gross premiums written | $ | 800,330 | $ | 773,692 | $ | 3,362,159 | $ | 3,574,067 | |||||||||||||||
| Casualty and Specialty Segment | |||||||||||||||||||||||
General casualty (1) | $ | 397,818 | $ | 346,754 | $ | 1,200,693 | $ | 976,610 | |||||||||||||||
Professional liability (2) | 380,125 | 329,848 | 1,378,645 | 950,607 | |||||||||||||||||||
Financial lines (3) | 365,863 | 128,586 | 844,447 | 359,147 | |||||||||||||||||||
Other (4) | 276,525 | 195,300 | 842,320 | 660,349 | |||||||||||||||||||
| Casualty and Specialty segment gross premiums written | $ | 1,420,331 | $ | 1,000,488 | $ | 4,266,105 | $ | 2,946,713 | |||||||||||||||
| (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. | ||||
12 | | |||||||
| Underwriting and Reserves | |||||||||||||||||||||||
| Net Premiums Written | |||||||||||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | ||||||||||||||||||||
| Property Segment | |||||||||||||||||||||||
| Catastrophe | $ | 120,834 | $ | 57,660 | $ | 1,198,957 | $ | 1,028,352 | |||||||||||||||
| Catastrophe - net reinstatement premiums | 203,431 | 196,371 | 225,599 | 289,071 | |||||||||||||||||||
| Total catastrophe net premiums written | $ | 324,265 | $ | 254,031 | $ | 1,424,556 | $ | 1,317,423 | |||||||||||||||
| Other property | 401,440 | 421,790 | 1,075,562 | 1,169,624 | |||||||||||||||||||
| Other property - net reinstatement premiums | (29,185) | 5,273 | (25,457) | 5,842 | |||||||||||||||||||
| Total other property net premiums written | $ | 372,255 | $ | 427,063 | $ | 1,050,105 | $ | 1,175,466 | |||||||||||||||
| Property segment net premiums written | $ | 696,520 | $ | 681,094 | $ | 2,474,661 | $ | 2,492,889 | |||||||||||||||
| Casualty and Specialty Segment | |||||||||||||||||||||||
General casualty (1) | $ | 330,005 | $ | 292,026 | $ | 1,002,357 | $ | 811,566 | |||||||||||||||
Professional liability (2) | 298,977 | 255,405 | 1,086,205 | 738,419 | |||||||||||||||||||
Financial lines (3) | 260,189 | 90,371 | 593,315 | 247,145 | |||||||||||||||||||
Other (4) | 236,020 | 167,543 | 694,006 | 532,795 | |||||||||||||||||||
| Casualty and Specialty segment net premiums written | $ | 1,125,191 | $ | 805,345 | $ | 3,375,883 | 2,329,925 | ||||||||||||||||
| (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. | ||||
13 | | |||||||
| Underwriting and Reserves | |||||||||||||||||||||||
| Net Premiums Earned | |||||||||||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | ||||||||||||||||||||
| Property Segment | |||||||||||||||||||||||
| Catastrophe | $ | 303,318 | $ | 250,137 | $ | 839,917 | $ | 770,726 | |||||||||||||||
| Catastrophe - net reinstatement premiums | 203,431 | 196,371 | 225,599 | 289,071 | |||||||||||||||||||
| Total catastrophe net premiums earned | $ | 506,749 | $ | 446,508 | $ | 1,065,516 | $ | 1,059,797 | |||||||||||||||
| Other property | 362,253 | 364,595 | 1,041,930 | 916,300 | |||||||||||||||||||
| Other property - net reinstatement premiums | (29,185) | 5,273 | (25,457) | 5,842 | |||||||||||||||||||
| Total other property net premiums earned | $ | 333,068 | $ | 369,868 | $ | 1,016,473 | $ | 922,142 | |||||||||||||||
| Property segment net premiums earned | $ | 839,817 | $ | 816,376 | $ | 2,081,989 | $ | 1,981,939 | |||||||||||||||
| Casualty and Specialty Segment | |||||||||||||||||||||||
General casualty (1) | $ | 315,064 | $ | 236,362 | $ | 891,345 | $ | 633,245 | |||||||||||||||
Professional liability (2) | 283,653 | 220,324 | 867,293 | 582,955 | |||||||||||||||||||
Financial lines (3) | 112,840 | 69,210 | 283,330 | 234,908 | |||||||||||||||||||
Other (4) | 215,647 | 163,993 | 585,872 | 419,844 | |||||||||||||||||||
| Casualty and Specialty segment net premiums earned | $ | 927,204 | $ | 689,889 | $ | 2,627,840 | $ | 1,870,952 | |||||||||||||||
| (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. | ||||
14 | | |||||||
| Underwriting and Reserves | |||||||||||||||||||||||
| Reserves for Claims and Claim Expenses | |||||||||||||||||||||||
| Case Reserves | Additional Case Reserves | IBNR | Total | ||||||||||||||||||||
| September 30, 2022 | |||||||||||||||||||||||
| Property | $ | 1,835,138 | $ | 1,722,667 | $ | 4,214,919 | $ | 7,772,724 | |||||||||||||||
| Casualty and Specialty | 1,875,979 | 144,419 | 5,869,833 | 7,890,231 | |||||||||||||||||||
| Total | $ | 3,711,117 | $ | 1,867,086 | $ | 10,084,752 | $ | 15,662,955 | |||||||||||||||
| 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 | |||||||||||||||
15 | | |||||||
| Underwriting and Reserves | |||||||||||||||||||||||||||||||||||
| Paid to Incurred Analysis | |||||||||||||||||||||||||||||||||||
| Three months ended September 30, 2022 | Three months ended September 30, 2021 | ||||||||||||||||||||||||||||||||||
| Gross | Recoveries | Net | Gross | Recoveries | Net | ||||||||||||||||||||||||||||||
| Reserve for claims and claim expenses, beginning of period | $ | 13,442,806 | $ | 4,206,459 | $ | 9,236,347 | $ | 10,944,742 | $ | 3,187,638 | $ | 7,757,104 | |||||||||||||||||||||||
| Incurred claims and claim expenses | |||||||||||||||||||||||||||||||||||
| Current year | 3,196,128 | 1,196,291 | 1,999,837 | 3,342,005 | 1,396,310 | 1,945,695 | |||||||||||||||||||||||||||||
| Prior years | (99,588) | (67,682) | (31,906) | (278,179) | (130,529) | (147,650) | |||||||||||||||||||||||||||||
| Total incurred claims and claim expenses | 3,096,540 | 1,128,609 | 1,967,931 | 3,063,826 | 1,265,781 | 1,798,045 | |||||||||||||||||||||||||||||
| Paid claims and claim expenses | |||||||||||||||||||||||||||||||||||
| Current year | 73,028 | 12,894 | 60,134 | 220,568 | 35,451 | 185,117 | |||||||||||||||||||||||||||||
| Prior years | 655,646 | 330,648 | 324,998 | 515,272 | 228,203 | 287,069 | |||||||||||||||||||||||||||||
| Total paid claims and claim expenses | 728,674 | 343,542 | 385,132 | 735,840 | 263,654 | 472,186 | |||||||||||||||||||||||||||||
Foreign exchange (1) | (147,717) | (22,282) | (125,435) | (39,484) | 2,993 | (42,477) | |||||||||||||||||||||||||||||
| Reserve for claims and claim expenses, end of period | $ | 15,662,955 | $ | 4,969,244 | $ | 10,693,711 | $ | 13,233,244 | $ | 4,192,758 | $ | 9,040,486 | |||||||||||||||||||||||
| Nine months ended September 30, 2022 | Nine months ended September 30, 2021 | ||||||||||||||||||||||||||||||||||
| Gross | Recoveries | Net | Gross | Recoveries | Net | ||||||||||||||||||||||||||||||
| Reserve for claims and claim expenses, beginning of period | $ | 13,294,630 | $ | 4,268,669 | $ | 9,025,961 | $ | 10,381,138 | $ | 2,926,010 | $ | 7,455,128 | |||||||||||||||||||||||
| Incurred claims and claim expenses | |||||||||||||||||||||||||||||||||||
| Current year | 5,099,492 | 1,490,893 | 3,608,599 | 5,261,594 | 1,867,766 | 3,393,828 | |||||||||||||||||||||||||||||
| Prior years | (186,179) | (93,483) | (92,696) | (281,416) | (72,705) | (208,711) | |||||||||||||||||||||||||||||
| Total incurred claims and claim expenses | 4,913,313 | 1,397,410 | 3,515,903 | 4,980,178 | 1,795,061 | 3,185,117 | |||||||||||||||||||||||||||||
| Paid claims and claim expenses | |||||||||||||||||||||||||||||||||||
| Current year | 118,612 | 17,354 | 101,258 | 293,541 | 43,146 | 250,395 | |||||||||||||||||||||||||||||
| Prior years | 2,077,584 | 622,607 | 1,454,977 | 1,764,951 | 482,056 | 1,282,895 | |||||||||||||||||||||||||||||
| Total paid claims and claim expenses | 2,196,196 | 639,961 | 1,556,235 | 2,058,492 | 525,202 | 1,533,290 | |||||||||||||||||||||||||||||
Foreign exchange (1) | (348,792) | (56,874) | (291,918) | (69,580) | (3,111) | (66,469) | |||||||||||||||||||||||||||||
| Reserve for claims and claim expenses, end of period | $ | 15,662,955 | $ | 4,969,244 | $ | 10,693,711 | $ | 13,233,244 | $ | 4,192,758 | $ | 9,040,486 | |||||||||||||||||||||||
(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.
16 | | |||||||
| 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”), Fontana Holdings L.P. and its subsidiaries (“Fontana”), and certain entities investing in Langhorne Holdings LLC. Managed funds include RenaissanceRe Upsilon Fund Ltd. ("Upsilon Fund") and RenaissanceRe Medici Fund Ltd. (“Medici”). Structured reinsurance products and other include certain reinsurance contracts which transfer risk to capital.
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | ||||||||||||||||||||
| Management fee income | |||||||||||||||||||||||
| Joint ventures | $ | 12,271 | $ | 8,602 | $ | 43,369 | $ | 34,471 | |||||||||||||||
| Structured reinsurance products and other | 6,377 | 8,646 | 20,250 | 26,097 | |||||||||||||||||||
| Managed funds | 6,341 | 6,606 | 19,299 | 23,780 | |||||||||||||||||||
| Total management fee income | 24,989 | 23,854 | 82,918 | 84,348 | |||||||||||||||||||
| Performance fee income (loss) | |||||||||||||||||||||||
| Joint ventures | 1,915 | 2,980 | 2,849 | 11,883 | |||||||||||||||||||
| Structured reinsurance products and other | (1,360) | 1,237 | 2,060 | 2,525 | |||||||||||||||||||
| Managed funds | 184 | 264 | 505 | (275) | |||||||||||||||||||
Total performance fee income (loss) (1) | 739 | 4,481 | 5,414 | 14,133 | |||||||||||||||||||
| Total fee income | $ | 25,728 | $ | 28,335 | $ | 88,332 | $ | 98,481 | |||||||||||||||
(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 | Nine months ended | ||||||||||||||||||||||
| Fee income contributing to: | September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | |||||||||||||||||||
Underwriting income (loss) (1) | $ | 11,366 | $ | 19,444 | $ | 36,278 | $ | 49,213 | |||||||||||||||
Earnings from equity method investments (2) | 19 | 17 | 69 | 50 | |||||||||||||||||||
Redeemable noncontrolling interests (3) | 14,343 | 8,874 | 51,985 | 49,218 | |||||||||||||||||||
| Total fee income | $ | 25,728 | $ | 28,335 | $ | 88,332 | $ | 98,481 | |||||||||||||||
(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.
17 | | |||||||
| Managed Joint Ventures and Fee Income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fee Income - Five Quarter Trend | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, Top Layer Reinsurance Ltd., Vermeer, Fontana, and certain entities investing in Langhorne Holdings LLC. Managed funds include Upsilon Fund and Medici. Structured reinsurance products and other include certain reinsurance contracts which transfer risk to capital.
| Three months ended | |||||||||||||||||||||||||||||
| September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||||||||||||||||
| Management fee income | |||||||||||||||||||||||||||||
| Joint ventures | $ | 12,271 | $ | 17,703 | $ | 13,395 | $ | 8,603 | $ | 8,602 | |||||||||||||||||||
| Structured reinsurance products and other | 6,377 | 6,649 | 7,224 | 8,542 | 8,646 | ||||||||||||||||||||||||
| Managed funds | 6,341 | 6,355 | 6,603 | 7,578 | 6,606 | ||||||||||||||||||||||||
| Total management fee income | 24,989 | 30,707 | 27,222 | 24,723 | 23,854 | ||||||||||||||||||||||||
| Performance fee income (loss) | |||||||||||||||||||||||||||||
| Joint ventures | 1,915 | 1,037 | (103) | 2,352 | 2,980 | ||||||||||||||||||||||||
| Structured reinsurance products and other | (1,360) | 2,486 | 934 | 2,392 | 1,237 | ||||||||||||||||||||||||
| Managed funds | 184 | 25 | 296 | 555 | 264 | ||||||||||||||||||||||||
Total performance fee income (loss) (1) | 739 | 3,548 | 1,127 | 5,299 | 4,481 | ||||||||||||||||||||||||
| Total fee income | $ | 25,728 | $ | 34,255 | $ | 28,349 | $ | 30,022 | $ | 28,335 | |||||||||||||||||||
(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 | |||||||||||||||||||||||||||||
| Fee income contributing to: | September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | ||||||||||||||||||||||||
Underwriting income (loss) (1) | $ | 11,366 | $ | 12,751 | $ | 12,161 | $ | 18,074 | $ | 19,444 | |||||||||||||||||||
Earnings from equity method investments (2) | 19 | 27 | 23 | — | 17 | ||||||||||||||||||||||||
Redeemable noncontrolling interests (3) | 14,343 | 21,477 | 16,165 | 11,948 | 8,874 | ||||||||||||||||||||||||
| Total fee income | $ | 25,728 | $ | 34,255 | $ | 28,349 | $ | 30,022 | $ | 28,335 | |||||||||||||||||||
(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.
18 | | |||||||
| 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, Vermeer and Fontana (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 | Nine months ended | ||||||||||||||||||||||
| September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | ||||||||||||||||||||
| Redeemable noncontrolling interests - DaVinciRe | $ | 219,191 | $ | 202,362 | $ | 185,692 | $ | 158,030 | |||||||||||||||
| Redeemable noncontrolling interests - Medici | 107,461 | (6,526) | 139,635 | (5,072) | |||||||||||||||||||
| Redeemable noncontrolling interests - Vermeer | 39,164 | 2,659 | (2,471) | (21,157) | |||||||||||||||||||
| Redeemable noncontrolling interests - Fontana | 6,613 | — | 12,154 | — | |||||||||||||||||||
Net (income) loss attributable to redeemable noncontrolling interests (1) | $ | 372,429 | $ | 198,495 | $ | 335,010 | $ | 131,801 | |||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | ||||||||||||||||||||
Operating (income) loss attributable to redeemable noncontrolling interests (2) | $ | 277,939 | $ | 193,061 | $ | 74,013 | $ | 95,954 | |||||||||||||||
| Non-operating (income) loss attributable to redeemable noncontrolling interests | 94,490 | 5,434 | 260,997 | 35,847 | |||||||||||||||||||
Net (income) loss attributable to redeemable noncontrolling interests (1) | $ | 372,429 | $ | 198,495 | $ | 335,010 | $ | 131,801 | |||||||||||||||
(1)A negative number in the tables 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.
(2)See “Comments on Regulation G” for a reconciliation of non-GAAP financial measures.
19 | | |||||||
| Managed Joint Ventures and Fee Income | |||||||||||||||||||||||||||||||||||||||||
| Noncontrolling Interests | |||||||||||||||||||||||||||||||||||||||||
A summary of the Company’s redeemable noncontrolling interests on its consolidated balance sheets is set forth below:
| September 30, 2022 | December 31, 2021 | ||||||||||
| Redeemable noncontrolling interests - DaVinciRe | $ | 1,618,490 | $ | 1,499,451 | |||||||
| Redeemable noncontrolling interests - Medici | 964,687 | 856,820 | |||||||||
| Redeemable noncontrolling interests - Vermeer | 1,330,253 | 1,197,782 | |||||||||
| Redeemable noncontrolling interests - Fontana | 261,530 | — | |||||||||
| Redeemable noncontrolling interests | $ | 4,174,960 | $ | 3,554,053 | |||||||
A summary of the redeemable noncontrolling economic ownership of third parties in the Company’s Consolidated Managed Joint Ventures is set forth below:
| September 30, 2022 | December 31, 2021 | ||||||||||
| DaVinciRe | 69.1 | % | 71.3 | % | |||||||
| Medici | 87.0 | % | 85.3 | % | |||||||
| Vermeer | 100.0 | % | 100.0 | % | |||||||
| Fontana | 68.4 | % | — | % | |||||||
20 | | |||||||
| Managed Joint Ventures and Fee Income | |||||||||||||||||||||||
| DaVinciRe Holdings Ltd. and Subsidiary Consolidated Statements of Operations | |||||||||||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Gross premiums written | $ | 181,804 | $ | 168,770 | $ | 914,121 | $ | 754,430 | |||||||||||||||
| Net premiums written | $ | 169,168 | $ | 159,697 | $ | 844,110 | $ | 681,080 | |||||||||||||||
| Decrease (increase) in unearned premiums | 126,396 | 79,853 | (208,410) | (144,874) | |||||||||||||||||||
| Net premiums earned | 295,564 | 239,550 | 635,700 | 536,206 | |||||||||||||||||||
| Net investment income | 25,994 | 6,549 | 51,977 | 21,928 | |||||||||||||||||||
| Net foreign exchange gains (losses) | 4,165 | (818) | 5,162 | (811) | |||||||||||||||||||
| Net realized and unrealized gains (losses) on investments | (98,706) | (2,670) | (292,377) | (25,079) | |||||||||||||||||||
| Total revenues | 227,017 | 242,611 | 400,462 | 532,244 | |||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Net claims and claim expenses incurred | 512,073 | 501,695 | 552,916 | 649,484 | |||||||||||||||||||
| Acquisition expenses | 20,394 | 14,490 | 62,649 | 62,400 | |||||||||||||||||||
| Operational and corporate expenses | 9,839 | 8,190 | 44,343 | 36,273 | |||||||||||||||||||
| Interest expense | 1,859 | 1,859 | 5,575 | 5,575 | |||||||||||||||||||
| Total expenses | 544,165 | 526,234 | 665,483 | 753,732 | |||||||||||||||||||
| Income (loss) before taxes | (317,148) | (283,623) | (265,021) | (221,488) | |||||||||||||||||||
| Income tax benefit (expense) | (5) | — | (5) | (1) | |||||||||||||||||||
| Net income (loss) available (attributable) to DaVinciRe common shareholders | $ | (317,153) | $ | (283,623) | $ | (265,026) | $ | (221,489) | |||||||||||||||
Net claims and claim expenses incurred - current accident year | $ | 524,996 | $ | 561,674 | $ | 615,664 | $ | 751,660 | |||||||||||||||
Net claims and claim expenses incurred - prior accident years | (12,923) | (59,979) | (62,748) | (102,176) | |||||||||||||||||||
Net claims and claim expenses incurred - total | $ | 512,073 | $ | 501,695 | $ | 552,916 | $ | 649,484 | |||||||||||||||
Net claims and claim expense ratio - current accident year | 177.6 | % | 234.5 | % | 96.8 | % | 140.2 | % | |||||||||||||||
Net claims and claim expense ratio - prior accident years | (4.3) | % | (25.1) | % | (9.8) | % | (19.1) | % | |||||||||||||||
Net claims and claim expense ratio - calendar year | 173.3 | % | 209.4 | % | 87.0 | % | 121.1 | % | |||||||||||||||
Underwriting expense ratio | 10.2 | % | 9.5 | % | 16.8 | % | 18.4 | % | |||||||||||||||
Combined ratio | 183.5 | % | 218.9 | % | 103.8 | % | 139.5 | % | |||||||||||||||
21 | | |||||||
| Investments | |||||||||||||||||||||||
| Total Investment Result | |||||||||||||||||||||||
Managed (1) | Retained (2) | ||||||||||||||||||||||
| Three months ended | Three months ended | ||||||||||||||||||||||
| September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | ||||||||||||||||||||
Fixed maturity investments trading | $ | 107,182 | $ | 56,825 | $ | 87,326 | $ | 51,404 | |||||||||||||||
Short term investments | 11,601 | 514 | 4,733 | 388 | |||||||||||||||||||
Equity investments trading | 6,120 | 1,823 | 6,120 | 1,823 | |||||||||||||||||||
Other investments | |||||||||||||||||||||||
| Catastrophe bonds | 25,748 | 17,184 | 3,707 | 3,541 | |||||||||||||||||||
| Other | 11,258 | 7,571 | 11,258 | 7,571 | |||||||||||||||||||
Cash and cash equivalents | 1,386 | (38) | 1,261 | (26) | |||||||||||||||||||
| 163,295 | 83,879 | 114,405 | 64,701 | ||||||||||||||||||||
Investment expenses | (5,502) | (5,612) | (4,300) | (4,596) | |||||||||||||||||||
| Net investment income | $ | 157,793 | $ | 78,267 | $ | 110,105 | $ | 60,105 | |||||||||||||||
| Net investment income return - annualized | 3.2 | % | 1.4 | % | 3.2 | % | 1.7 | % | |||||||||||||||
| Net realized gains (losses) on fixed maturity investments trading | (213,493) | 27,501 | (164,791) | 24,521 | |||||||||||||||||||
| Net unrealized gains (losses) on fixed maturity investments trading | (210,665) | (56,869) | (180,596) | (51,675) | |||||||||||||||||||
| Net realized and unrealized gains (losses) on investments-related derivatives | (55,580) | (2,056) | (56,422) | (2,380) | |||||||||||||||||||
| Net realized gains (losses) on equity investments trading | 3,066 | 52,604 | 3,066 | 52,604 | |||||||||||||||||||
| Net unrealized gains (losses) on equity investments trading | (46,301) | (74,284) | (46,297) | (74,269) | |||||||||||||||||||
| Other investments | |||||||||||||||||||||||
| Net realized and unrealized gains (losses) on other investments - catastrophe bonds | (126,992) | (5,994) | (16,667) | (3,803) | |||||||||||||||||||
| Net realized and unrealized gains (losses) on other investments - other | 8,465 | 17,027 | 8,465 | 17,027 | |||||||||||||||||||
| Net realized and unrealized gains (losses) on investments | (641,500) | (42,071) | (453,242) | (37,975) | |||||||||||||||||||
Total investment result | $ | (483,707) | $ | 36,196 | $ | (343,137) | $ | 22,130 | |||||||||||||||
| Average invested assets | $ | 20,745,479 | $ | 21,908,291 | $ | 13,752,864 | $ | 14,257,183 | |||||||||||||||
Total investment return - annualized | (8.9) | % | 0.7 | % | (9.6) | % | 0.6 | % | |||||||||||||||
(1)“Managed” represents the consolidated total investment result, which is comprised of net investment income and net realized and unrealized gains (losses) on investments as presented on the Company’s consolidated statements of operations.
(2)“Retained” represents the consolidated total investment result, less the portions attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds. See “Comments on Regulation G” for a reconciliation of non-GAAP financial measures.
22 | | |||||||
| Investments | |||||||||||||||||||||||
| Total Investment Result | |||||||||||||||||||||||
Managed (1) | Retained (2) | ||||||||||||||||||||||
| Nine months ended | Nine months ended | ||||||||||||||||||||||
| September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | ||||||||||||||||||||
Fixed maturity investments trading | $ | 246,146 | $ | 179,268 | $ | 206,294 | $ | 161,833 | |||||||||||||||
Short term investments | 17,134 | 1,869 | 6,836 | 1,265 | |||||||||||||||||||
Equity investments trading | 13,390 | 4,940 | 13,390 | 4,940 | |||||||||||||||||||
Other investments | |||||||||||||||||||||||
| Catastrophe bonds | 63,343 | 48,333 | 9,379 | 10,413 | |||||||||||||||||||
| Other | 23,704 | 20,711 | 23,704 | 20,711 | |||||||||||||||||||
Cash and cash equivalents | 1,250 | 223 | 1,137 | 254 | |||||||||||||||||||
| 364,967 | 255,344 | 260,740 | 199,416 | ||||||||||||||||||||
Investment expenses | (16,272) | (16,348) | (12,977) | (13,731) | |||||||||||||||||||
| Net investment income | $ | 348,695 | $ | 238,996 | $ | 247,763 | $ | 185,685 | |||||||||||||||
| Net investment income return - annualized | 2.3 | % | 1.5 | % | 2.4 | % | 1.7 | % | |||||||||||||||
| Net realized gains (losses) on fixed maturity investments trading | (621,799) | 81,060 | (512,583) | 71,513 | |||||||||||||||||||
| Net unrealized gains (losses) on fixed maturity investments trading | (824,662) | (289,872) | (716,116) | (263,975) | |||||||||||||||||||
| Net realized and unrealized gains (losses) on investments-related derivatives | (161,946) | 3,476 | (163,517) | 5,117 | |||||||||||||||||||
| Net realized gains (losses) on equity investments trading | 38,638 | 255,902 | 38,638 | 256,064 | |||||||||||||||||||
| Net unrealized gains (losses) on equity investments trading | (222,074) | (279,938) | (222,076) | (280,197) | |||||||||||||||||||
| Other investments | |||||||||||||||||||||||
| Net realized and unrealized gains (losses) on other investments - catastrophe bonds | (159,913) | (25,075) | (21,414) | (15,625) | |||||||||||||||||||
| Net realized and unrealized gains (losses) on other investments - other | (16,868) | 57,831 | (16,868) | 57,831 | |||||||||||||||||||
| Net realized and unrealized gains (losses) on investments | (1,968,624) | (196,616) | (1,613,936) | (169,272) | |||||||||||||||||||
Total investment result | $ | (1,619,929) | $ | 42,380 | $ | (1,366,173) | $ | 16,413 | |||||||||||||||
| Average invested assets | $ | 20,946,208 | $ | 21,645,496 | $ | 14,087,633 | $ | 14,264,445 | |||||||||||||||
Total investment return - annualized | (10.1) | % | 0.3 | % | (12.7) | % | 0.2 | % | |||||||||||||||
(1)“Managed” represents the consolidated total investment result, which is comprised of net investment income and net realized and unrealized gains (losses) on investments as presented on the Company’s consolidated statements of operations.
(2)“Retained” represents the consolidated total investment result, less the portions attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds. See “Comments on Regulation G” for a reconciliation of non-GAAP financial measures.
23 | | |||||||
| Investments | ||
| Investments Composition | ||
| September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
Managed (1) | Retained (2) | Managed (1) | Retained (2) | ||||||||||||||||||||||||||||||||||||||||||||
| Type of Investment | Fair Value | Unrealized Gain (Loss) | Fair Value | Unrealized Gain (Loss) | Fair Value | Unrealized Gain (Loss) | Fair Value | Unrealized Gain (Loss) | |||||||||||||||||||||||||||||||||||||||
| Fixed maturity investments trading, at fair value | |||||||||||||||||||||||||||||||||||||||||||||||
| U.S. treasuries | $ | 5,745,880 | $ | (239,857) | $ | 4,665,776 | $ | (218,727) | $ | 6,247,779 | $ | (54,534) | $ | 5,175,003 | $ | (47,562) | |||||||||||||||||||||||||||||||
| Corporate | 4,121,508 | $ | (440,148) | 3,211,115 | (382,655) | 3,689,286 | 10,472 | 3,156,556 | 11,969 | ||||||||||||||||||||||||||||||||||||||
Other (3) | 2,803,710 | (204,092) | 2,337,524 | (166,795) | 3,570,066 | (1,386) | 3,085,843 | (2,084) | |||||||||||||||||||||||||||||||||||||||
| Total fixed maturity investments trading, at fair value | 12,671,098 | (884,097) | 10,214,415 | (768,177) | 13,507,131 | (45,448) | 11,417,402 | (37,677) | |||||||||||||||||||||||||||||||||||||||
| Short term investments, at fair value | 4,935,960 | — | 1,309,375 | — | 5,298,385 | — | 1,450,158 | — | |||||||||||||||||||||||||||||||||||||||
| Equity investments trading, at fair value | 950,393 | (65,852) | 950,107 | (65,962) | 546,016 | 156,245 | 545,708 | 156,120 | |||||||||||||||||||||||||||||||||||||||
| Other investments, at fair value | |||||||||||||||||||||||||||||||||||||||||||||||
| Catastrophe bonds | 1,135,053 | (217,779) | 175,961 | (56,354) | 1,104,034 | (63,665) | 217,493 | (36,249) | |||||||||||||||||||||||||||||||||||||||
| Direct private equity investments | 69,923 | (28,218) | 69,923 | (28,218) | 88,373 | (4,768) | 88,373 | (4,768) | |||||||||||||||||||||||||||||||||||||||
| Fund investments | 958,188 | 105,285 | 958,188 | 105,285 | 725,802 | 138,045 | 725,803 | 138,046 | |||||||||||||||||||||||||||||||||||||||
| Term loans | 100,000 | — | 100,000 | — | 74,850 | — | 74,850 | — | |||||||||||||||||||||||||||||||||||||||
| Total other investments, at fair value | 2,263,164 | (140,712) | 1,304,072 | 20,713 | 1,993,059 | 69,612 | 1,106,519 | 97,029 | |||||||||||||||||||||||||||||||||||||||
| Investments in other ventures, under equity method | 72,535 | — | 72,535 | — | 98,068 | — | 98,068 | — | |||||||||||||||||||||||||||||||||||||||
| Total investments | $ | 20,893,150 | $ | (1,090,661) | $ | 13,850,504 | $ | (813,426) | $ | 21,442,659 | $ | 180,409 | $ | 14,617,855 | $ | 215,472 | |||||||||||||||||||||||||||||||
| September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||
Managed (1) | Retained (2) | Managed (1) | Retained (2) | ||||||||||||||||||||
Weighted average yield to maturity of investments (4) | 5.1 | % | 5.3 | % | 1.6 | % | 1.8 | % | |||||||||||||||
Average duration of investments, in years (4) | 2.5 | 3.3 | 2.8 | 3.5 | |||||||||||||||||||
Unrealized gain (loss) on total fixed maturity investments trading, at fair value, per common share (5) | $ | (17.58) | $ | (0.85) | |||||||||||||||||||
(1)“Managed” represents the consolidated total investments as presented on the Company’s consolidated balance sheets.
(2)“Retained” represents the consolidated total investments, less the portions attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds. See “Comments on Regulation G” for a reconciliation of non-GAAP financial measures.
(3)Includes agencies, non-U.S. government, residential mortgage-backed, commercial mortgage-backed and asset-backed securities within the Company's fixed maturity investments trading.
(4)Excludes equity investments trading, at fair value, direct private equity investments, private equity funds and investments in other ventures, under equity method as these investments have no final maturity, yield to maturity or duration.
(5)Represents the impact to book value per common share of the unrealized gain (loss) on total fixed maturity investments trading, at fair value. See "Comments on Regulation G" for reconciliation of non-GAAP financial measures.
24 | | |||||||
| Investments | ||||||||||||||||||||||||||||||||||||||||||||||||||
Managed Investments - Credit Rating (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Rating (2) | Investments not subject to credit ratings | |||||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2022 | Fair Value | AAA | AA | A | BBB | Non- Investment Grade | Not Rated | |||||||||||||||||||||||||||||||||||||||||||
| Fixed maturity investments trading, at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. treasuries | $ | 5,745,880 | $ | — | $ | 5,745,880 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||
Corporate (3) | 4,121,508 | 179,981 | 358,713 | 1,385,122 | 1,225,631 | 941,231 | 30,830 | — | ||||||||||||||||||||||||||||||||||||||||||
| Agencies | 375,894 | 30,950 | 344,944 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Non-U.S. government | 443,869 | 230,646 | 196,234 | 8,607 | 7,330 | 1,052 | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Residential mortgage-backed | 698,496 | 38,254 | 503,381 | 2,540 | 8,427 | 94,979 | 50,915 | — | ||||||||||||||||||||||||||||||||||||||||||
| Commercial mortgage-backed | 257,827 | 198,068 | 33,846 | 5,592 | 11,694 | 4,533 | 4,094 | — | ||||||||||||||||||||||||||||||||||||||||||
| Asset-backed | 1,027,624 | 667,602 | 187,198 | 60,293 | 38,884 | 64,815 | 8,832 | — | ||||||||||||||||||||||||||||||||||||||||||
| Total fixed maturity investments trading, at fair value | 12,671,098 | 1,345,501 | 7,370,196 | 1,462,154 | 1,291,966 | 1,106,610 | 94,671 | — | ||||||||||||||||||||||||||||||||||||||||||
| Short term investments, at fair value | 4,935,960 | 4,861,621 | 71,672 | 758 | 156 | 75 | 1,678 | — | ||||||||||||||||||||||||||||||||||||||||||
| Equity investments trading, at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed income exchange traded funds (4) | 394,851 | — | — | — | 196,296 | 198,555 | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Other equity investments trading | 555,542 | — | — | — | — | — | — | 555,542 | ||||||||||||||||||||||||||||||||||||||||||
| Total equity investments trading, at fair value | 950,393 | — | — | — | 196,296 | 198,555 | — | 555,542 | ||||||||||||||||||||||||||||||||||||||||||
| Other investments, at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Catastrophe bonds | 1,135,053 | — | — | — | — | 1,135,053 | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Direct private equity investments | 69,923 | — | — | — | — | — | — | 69,923 | ||||||||||||||||||||||||||||||||||||||||||
| Fund investments: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Private credit funds | 677,499 | — | — | — | — | — | — | 677,499 | ||||||||||||||||||||||||||||||||||||||||||
| Private equity funds | 280,689 | — | — | — | — | — | — | 280,689 | ||||||||||||||||||||||||||||||||||||||||||
| Term loans | 100,000 | — | — | 100,000 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Total other investments, at fair value | 2,263,164 | — | — | 100,000 | — | 1,135,053 | — | 1,028,111 | ||||||||||||||||||||||||||||||||||||||||||
| Investments in other ventures, under equity method | 72,535 | — | — | — | — | — | — | 72,535 | ||||||||||||||||||||||||||||||||||||||||||
| Total investments | $ | 20,893,150 | $ | 6,207,122 | $ | 7,441,868 | $ | 1,562,912 | $ | 1,488,418 | $ | 2,440,293 | $ | 96,349 | $ | 1,656,188 | ||||||||||||||||||||||||||||||||||
| 100.0 | % | 29.7 | % | 35.6 | % | 7.5 | % | 7.1 | % | 11.7 | % | 0.5 | % | 7.9 | % | |||||||||||||||||||||||||||||||||||
(1)“Managed” represents the consolidated total investments as presented on the Company’s consolidated balance sheets.
(2)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 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.
(3)Corporate fixed maturity investments include non-U.S. government-backed corporate fixed maturity investments.
(4)The credit ratings included in this table are based on the credit rating of the underlying investment held in the exchange traded funds.
25 | | |||||||
| Investments | ||||||||||||||||||||||||||||||||||||||||||||||||||
Retained Investments - Credit Rating (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Rating (2) | Investments not subject to credit ratings | |||||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2022 | Fair Value | AAA | AA | A | BBB | Non- Investment Grade | Not Rated | |||||||||||||||||||||||||||||||||||||||||||
| Fixed maturity investments trading, at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. treasuries | $ | 4,665,776 | $ | — | $ | 4,665,776 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||
Corporate (3) | 3,211,115 | 131,284 | 279,665 | 1,039,203 | 927,696 | 806,715 | 26,552 | — | ||||||||||||||||||||||||||||||||||||||||||
| Agencies | 296,304 | 26,683 | 269,621 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Non-U.S. government | 368,803 | 190,539 | 161,275 | 8,607 | 7,330 | 1,052 | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Residential mortgage-backed | 509,827 | 29,101 | 323,865 | 2,540 | 8,427 | 94,979 | 50,915 | — | ||||||||||||||||||||||||||||||||||||||||||
| Commercial mortgage-backed | 175,672 | 121,561 | 29,522 | 4,268 | 11,694 | 4,533 | 4,094 | — | ||||||||||||||||||||||||||||||||||||||||||
| Asset-backed | 986,918 | 628,555 | 186,423 | 59,409 | 38,884 | 64,815 | 8,832 | — | ||||||||||||||||||||||||||||||||||||||||||
| Total fixed maturity investments trading, at fair value | 10,214,415 | 1,127,723 | 5,916,147 | 1,114,027 | 994,031 | 972,094 | 90,393 | — | ||||||||||||||||||||||||||||||||||||||||||
| Short term investments, at fair value | 1,309,375 | 1,258,623 | 48,049 | 987 | 156 | 75 | 1,485 | — | ||||||||||||||||||||||||||||||||||||||||||
| Equity investments trading, at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed income exchange traded funds (4) | 394,851 | — | — | — | 196,296 | 198,555 | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Other equity investments trading | 555,256 | — | — | — | — | — | — | 555,256 | ||||||||||||||||||||||||||||||||||||||||||
| Total equity investments trading, at fair value | 950,107 | — | — | — | 196,296 | 198,555 | — | 555,256 | ||||||||||||||||||||||||||||||||||||||||||
| Other investments, at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Catastrophe bonds | 175,961 | — | — | — | — | 175,961 | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Direct private equity investments | 69,923 | — | — | — | — | — | — | 69,923 | ||||||||||||||||||||||||||||||||||||||||||
| Fund investments: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Private credit funds | 677,499 | — | — | — | — | — | — | 677,499 | ||||||||||||||||||||||||||||||||||||||||||
| Private equity funds | 280,689 | — | — | — | — | — | — | 280,689 | ||||||||||||||||||||||||||||||||||||||||||
| Term loans | 100,000 | — | — | 100,000 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Total other investments, at fair value | 1,304,072 | — | — | 100,000 | — | 175,961 | — | 1,028,111 | ||||||||||||||||||||||||||||||||||||||||||
| Investments in other ventures, under equity method | 72,535 | — | — | — | — | — | — | 72,535 | ||||||||||||||||||||||||||||||||||||||||||
| Total investments | $ | 13,850,504 | $ | 2,386,346 | $ | 5,964,196 | $ | 1,215,014 | $ | 1,190,483 | $ | 1,346,685 | $ | 91,878 | $ | 1,655,902 | ||||||||||||||||||||||||||||||||||
| 100.0 | % | 17.2 | % | 43.1 | % | 8.8 | % | 8.6 | % | 9.7 | % | 0.6 | % | 12.0 | % | |||||||||||||||||||||||||||||||||||
(1)“Retained” represents the consolidated total investments, less the portions attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds. See “Comments on Regulation G” for a reconciliation of non-GAAP financial measures.
(2)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 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.
(3)Corporate fixed maturity investments include non-U.S. government-backed corporate fixed maturity investments.
(4)The credit ratings included in this table are based on the credit rating of the underlying investment held in the exchange traded funds.
26 | | |||||||
| Other Items | |||||||||||||||||||||||
| Earnings per Share | |||||||||||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||||||||||
| (common shares in thousands) | September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | |||||||||||||||||||
| Numerator: | |||||||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | (825,344) | $ | (450,222) | $ | (1,544,670) | $ | (284,338) | |||||||||||||||
Amount allocated to participating common shareholders (1) | (306) | (229) | (813) | (485) | |||||||||||||||||||
| Net income (loss) allocated to RenaissanceRe common shareholders | $ | (825,650) | $ | (450,451) | $ | (1,545,483) | $ | (284,823) | |||||||||||||||
| Denominator: | |||||||||||||||||||||||
Denominator for basic income (loss) per RenaissanceRe common share - weighted average common shares (2) | 42,837 | 46,223 | 43,121 | 47,988 | |||||||||||||||||||
Per common share equivalents of non-vested shares (2) | — | — | — | — | |||||||||||||||||||
Denominator for diluted income (loss) per RenaissanceRe common share - adjusted weighted average common shares and assumed conversions (2) | 42,837 | 46,223 | 43,121 | 47,988 | |||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - basic | $ | (19.27) | $ | (9.75) | $ | (35.84) | $ | (5.94) | |||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted | $ | (19.27) | $ | (9.75) | $ | (35.84) | $ | (5.94) | |||||||||||||||
(1)Represents earnings and dividends attributable to holders of unvested shares issued pursuant to the Company’s stock compensation plans.
(2)In periods for which the Company has net loss allocated to RenaissanceRe common shareholders, the denominator used in calculating net loss attributable to RenaissanceRe common shareholders per common share - basic is also used in calculating net loss attributable to RenaissanceRe common shareholders per common share - diluted. For the three and nine months ended September 30, 2022, per common share equivalents of non-vested shares of 94 thousand and 81 thousand, respectively, could potentially be dilutive in future periods if the Company reports net income allocated to RenaissanceRe common shareholders.
27 | | |||||||
| 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 provided certain of these financial measures in previous investor communications and the Company’s management believes that such 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 or outside the industry. These measures may not, however, be comparable to similarly titled measures used by companies within or 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 (1) net realized and unrealized gains and losses on investments, excluding other investments - catastrophe bonds, (2) net foreign exchange gains and losses, (3) corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe UK, (4) the income tax expense or benefit associated with these adjustments and (5) 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 these adjustments. 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.
28 | | |||||||
| Comments on Regulation G | ||
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | ||||||||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | (825,344) | $ | (450,222) | $ | (1,544,670) | $ | (284,338) | |||||||||||||||
| Adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds | 514,508 | 36,077 | 1,808,711 | 171,541 | |||||||||||||||||||
| Adjustment for net foreign exchange losses (gains) | 1,383 | 4,755 | 67,690 | 24,309 | |||||||||||||||||||
| Adjustment for corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe UK | — | — | — | 135 | |||||||||||||||||||
Adjustment for income tax expense (benefit) (1) | 7,269 | 286 | (77,331) | (7,893) | |||||||||||||||||||
Adjustment for net (loss) income attributable to redeemable noncontrolling interests (2) | (94,490) | (5,434) | (260,997) | (35,847) | |||||||||||||||||||
| Operating income (loss) available (attributable) to RenaissanceRe common shareholders | $ | (396,674) | $ | (414,538) | $ | (6,597) | $ | (132,093) | |||||||||||||||
| Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted | $ | (19.27) | $ | (9.75) | $ | (35.84) | $ | (5.94) | |||||||||||||||
| Adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds | 12.01 | 0.78 | 41.95 | 3.57 | |||||||||||||||||||
| Adjustment for net foreign exchange losses (gains) | 0.03 | 0.10 | 1.57 | 0.51 | |||||||||||||||||||
| Adjustment for corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe UK | — | — | — | — | |||||||||||||||||||
Adjustment for income tax expense (benefit) (1) | 0.17 | 0.01 | (1.79) | (0.16) | |||||||||||||||||||
Adjustment for net (loss) income attributable to redeemable noncontrolling interests (2) | (2.21) | (0.12) | (6.05) | (0.75) | |||||||||||||||||||
| Operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted | $ | (9.27) | $ | (8.98) | $ | (0.16) | $ | (2.77) | |||||||||||||||
| Return on average common equity - annualized | (72.4) | % | (28.4) | % | (40.5) | % | (5.8) | % | |||||||||||||||
| Adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds | 45.2 | % | 2.3 | % | 47.3 | % | 3.5 | % | |||||||||||||||
| Adjustment for net foreign exchange losses (gains) | 0.1 | % | 0.3 | % | 1.8 | % | 0.5 | % | |||||||||||||||
| Adjustment for corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe UK | — | % | — | % | — | % | — | % | |||||||||||||||
Adjustment for income tax expense (benefit) (1) | 0.6 | % | — | % | (2.0) | % | (0.2) | % | |||||||||||||||
Adjustment for net (loss) income attributable to redeemable noncontrolling interests (2) | (8.3) | % | (0.3) | % | (6.8) | % | (0.7) | % | |||||||||||||||
| Operating return on average common equity - annualized | (34.8) | % | (26.1) | % | (0.2) | % | (2.7) | % | |||||||||||||||
(1)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.
(2)Represents the portion of the adjustments above that are attributable to the Company’s redeemable noncontrolling interests, including the income tax impact of those adjustments.
29 | | |||||||
| 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.”
| September 30, 2022 | December 31, 2021 | ||||||||||
Book value per common share | $ | 94.55 | $ | 132.17 | |||||||
Adjustment for goodwill and other intangibles (1) | (5.89) | (5.90) | |||||||||
Tangible book value per common share | 88.66 | 126.27 | |||||||||
Adjustment for accumulated dividends | 24.63 | 23.52 | |||||||||
Tangible book value per common share plus accumulated dividends | $ | 113.29 | $ | 149.79 | |||||||
| Year to date change in book value per common share | (28.5) | % | (4.5) | % | |||||||
Year to date change in tangible book value per common share plus change in accumulated dividends | (28.9) | % | (4.0) | % | |||||||
(1)At September 30, 2022 and December 31, 2021, the adjustment for goodwill and other intangibles included $18.0 million and $18.6 million, respectively, of goodwill and other intangibles included in investments in other ventures, under equity method.
30 | | |||||||
| 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 the consolidated total investment result less the portions attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds. “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 portions of the consolidated total investment result attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds. The Company’s management believes “retained total investment result” is useful to investors because it provides a measure of the portion of the Company’s investment result that impacts 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 September 30, 2022 | Three months ended September 30, 2021 | ||||||||||||||||||||||||||||||||||
Managed (1) | Adjustment (2) | Retained (3) | Managed (1) | Adjustment (2) | Retained (3) | ||||||||||||||||||||||||||||||
| Fixed maturity investments trading | $ | 107,182 | $ | (19,856) | $ | 87,326 | $ | 56,825 | $ | (5,421) | $ | 51,404 | |||||||||||||||||||||||
| Short term investments | 11,601 | (6,868) | 4,733 | 514 | (126) | 388 | |||||||||||||||||||||||||||||
| Equity investments trading | 6,120 | — | 6,120 | 1,823 | — | 1,823 | |||||||||||||||||||||||||||||
| Other investments | |||||||||||||||||||||||||||||||||||
| Catastrophe bonds | 25,748 | (22,041) | 3,707 | 17,184 | (13,643) | 3,541 | |||||||||||||||||||||||||||||
| Other | 11,258 | — | 11,258 | 7,571 | — | 7,571 | |||||||||||||||||||||||||||||
| Cash and cash equivalents | 1,386 | (125) | 1,261 | (38) | 12 | (26) | |||||||||||||||||||||||||||||
| 163,295 | (48,890) | 114,405 | 83,879 | (19,178) | 64,701 | ||||||||||||||||||||||||||||||
| Investment expenses | (5,502) | 1,202 | (4,300) | (5,612) | 1,016 | (4,596) | |||||||||||||||||||||||||||||
| Net investment income | $ | 157,793 | $ | (47,688) | $ | 110,105 | $ | 78,267 | $ | (18,162) | $ | 60,105 | |||||||||||||||||||||||
| Net investment income return - annualized | 3.2 | % | — | % | 3.2 | % | 1.4 | % | 0.3 | % | 1.7 | % | |||||||||||||||||||||||
| Net realized gains (losses) on fixed maturity investments trading | (213,493) | 48,702 | (164,791) | 27,501 | (2,980) | 24,521 | |||||||||||||||||||||||||||||
| Net unrealized gains (losses) on fixed maturity investments trading | (210,665) | 30,069 | (180,596) | (56,869) | 5,194 | (51,675) | |||||||||||||||||||||||||||||
| Net realized and unrealized gains (losses) on investments-related derivatives | (55,580) | (842) | (56,422) | (2,056) | (324) | (2,380) | |||||||||||||||||||||||||||||
| Net realized gains (losses) on equity investments trading | 3,066 | — | 3,066 | 52,604 | — | 52,604 | |||||||||||||||||||||||||||||
| Net unrealized gains (losses) on equity investments trading | (46,301) | 4 | (46,297) | (74,284) | 15 | (74,269) | |||||||||||||||||||||||||||||
| Other investments | |||||||||||||||||||||||||||||||||||
| Net realized and unrealized gains (losses) on other investments - catastrophe bonds | (126,992) | 110,325 | (16,667) | (5,994) | 2,191 | (3,803) | |||||||||||||||||||||||||||||
| Net realized and unrealized gains (losses) on other investments - other | 8,465 | — | 8,465 | 17,027 | — | 17,027 | |||||||||||||||||||||||||||||
| Net realized and unrealized gains (losses) on investments | (641,500) | 188,258 | (453,242) | (42,071) | 4,096 | (37,975) | |||||||||||||||||||||||||||||
| Total investment result | $ | (483,707) | $ | 140,570 | $ | (343,137) | $ | 36,196 | $ | (14,066) | $ | 22,130 | |||||||||||||||||||||||
| Average invested assets | $ | 20,745,479 | $ | (6,992,615) | $ | 13,752,864 | $ | 21,908,291 | $ | (7,651,108) | $ | 14,257,183 | |||||||||||||||||||||||
| Total investment return - annualized | (8.9) | % | (0.7) | % | (9.6) | % | 0.7 | % | (0.1) | % | 0.6 | % | |||||||||||||||||||||||
(1)“Managed” represents the consolidated total investment result, which is comprised of net investment income and net realized and unrealized gains (losses) on investments as presented on the Company’s consolidated statements of operations.
(2)Adjustment for the portions of the consolidated total investment result attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds
(3)“Retained” represents the consolidated total investment result, less the portions attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds.
31 | | |||||||
| Comments on Regulation G | ||
Retained Total Investment Result
| Nine months ended September 30, 2022 | Nine months ended September 30, 2021 | ||||||||||||||||||||||||||||||||||
Managed (1) | Adjustment (2) | Retained (3) | Managed (1) | Adjustment (2) | Retained (3) | ||||||||||||||||||||||||||||||
| Fixed maturity investments trading | $ | 246,146 | $ | (39,852) | $ | 206,294 | $ | 179,268 | $ | (17,435) | $ | 161,833 | |||||||||||||||||||||||
| Short term investments | 17,134 | (10,298) | 6,836 | 1,869 | (604) | 1,265 | |||||||||||||||||||||||||||||
| Equity investments trading | 13,390 | — | 13,390 | 4,940 | — | 4,940 | |||||||||||||||||||||||||||||
| Other investments | |||||||||||||||||||||||||||||||||||
| Catastrophe bonds | 63,343 | (53,964) | 9,379 | 48,333 | (37,920) | 10,413 | |||||||||||||||||||||||||||||
| Other | 23,704 | — | 23,704 | 20,711 | — | 20,711 | |||||||||||||||||||||||||||||
| Cash and cash equivalents | 1,250 | (113) | 1,137 | 223 | 31 | 254 | |||||||||||||||||||||||||||||
| 364,967 | (104,227) | 260,740 | 255,344 | (55,928) | 199,416 | ||||||||||||||||||||||||||||||
| Investment expenses | (16,272) | 3,295 | (12,977) | (16,348) | 2,617 | (13,731) | |||||||||||||||||||||||||||||
| Net investment income | $ | 348,695 | $ | (100,932) | $ | 247,763 | $ | 238,996 | $ | (53,311) | $ | 185,685 | |||||||||||||||||||||||
| Net investment income return - annualized | 2.3 | % | 0.1 | % | 2.4 | % | 1.5 | % | 0.2 | % | 1.7 | % | |||||||||||||||||||||||
| Net realized gains (losses) on fixed maturity investments trading | (621,799) | 109,216 | (512,583) | 81,060 | (9,547) | 71,513 | |||||||||||||||||||||||||||||
| Net unrealized gains (losses) on fixed maturity investments trading | (824,662) | 108,546 | (716,116) | (289,872) | 25,897 | (263,975) | |||||||||||||||||||||||||||||
| Net realized and unrealized gains (losses) on investments-related derivatives | (161,946) | (1,571) | (163,517) | 3,476 | 1,641 | 5,117 | |||||||||||||||||||||||||||||
| Net realized gains (losses) on equity investments trading | 38,638 | — | 38,638 | 255,902 | 162 | 256,064 | |||||||||||||||||||||||||||||
| Net unrealized gains (losses) on equity investments trading | (222,074) | (2) | (222,076) | (279,938) | (259) | (280,197) | |||||||||||||||||||||||||||||
| Other investments | |||||||||||||||||||||||||||||||||||
| Net realized and unrealized gains (losses) on other investments - catastrophe bonds | (159,913) | 138,499 | (21,414) | (25,075) | 9,450 | (15,625) | |||||||||||||||||||||||||||||
| Net realized and unrealized gains (losses) on other investments - other | (16,868) | — | (16,868) | 57,831 | — | 57,831 | |||||||||||||||||||||||||||||
| Net realized and unrealized gains (losses) on investments | (1,968,624) | 354,688 | (1,613,936) | (196,616) | 27,344 | (169,272) | |||||||||||||||||||||||||||||
| Total investment result | $ | (1,619,929) | $ | 253,756 | $ | (1,366,173) | $ | 42,380 | $ | (25,967) | $ | 16,413 | |||||||||||||||||||||||
| Average invested assets | $ | 20,946,208 | $ | (6,858,575) | $ | 14,087,633 | $ | 21,645,496 | $ | (7,381,051) | $ | 14,264,445 | |||||||||||||||||||||||
| Total investment return - annualized | (10.1) | % | (2.6) | % | (12.7) | % | 0.3 | % | (0.1) | % | 0.2 | % | |||||||||||||||||||||||
(1)“Managed” represents the consolidated total investment result, which is comprised of net investment income and net realized and unrealized gains (losses) on investments as presented on the Company’s consolidated statements of operations.
(2)Adjustment for the portions of the consolidated total investment result attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds
(3)“Retained” represents the consolidated total investment result, less the portions attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds.
32 | | |||||||
| Comments on Regulation G | ||
Retained Total Investments
The Company has included in this Financial Supplement “retained total investments.” “Retained total investments” is defined as the consolidated total investments, less the portions attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds. “Retained total investments” differs from consolidated total investments, which the Company believes is the most directly comparable GAAP measure, due to the exclusion of portions of the consolidated total investments attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds. The Company’s management believes the “retained total investments” is useful to investors because it provides a measure of the portion of the Company’s total investments 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 investments to "retained total investments."
| September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||
Managed (1) | Adjustment (2) | Retained (3) | Managed (1) | Adjustment (2) | Retained (3) | ||||||||||||||||||||||||||||||
| Fixed maturity investments trading, at fair value | |||||||||||||||||||||||||||||||||||
| U.S. treasuries | 5,745,880 | (1,080,104) | 4,665,776 | 6,247,779 | (1,072,776) | 5,175,003 | |||||||||||||||||||||||||||||
Corporate (4) | 4,121,508 | (910,393) | 3,211,115 | 3,689,286 | (532,730) | 3,156,556 | |||||||||||||||||||||||||||||
| Agencies | 375,894 | (79,590) | 296,304 | 361,684 | (58,997) | 302,687 | |||||||||||||||||||||||||||||
| Non-U.S. government | 443,869 | (75,066) | 368,803 | 549,613 | (83,792) | 465,821 | |||||||||||||||||||||||||||||
| Residential mortgage-backed | 698,496 | (188,669) | 509,827 | 955,301 | (222,661) | 732,640 | |||||||||||||||||||||||||||||
| Commercial mortgage-backed | 257,827 | (82,155) | 175,672 | 634,925 | (74,577) | 560,348 | |||||||||||||||||||||||||||||
| Asset-backed | 1,027,624 | (40,706) | 986,918 | 1,068,543 | (44,196) | 1,024,347 | |||||||||||||||||||||||||||||
| Total fixed maturity investments trading, at fair value | 12,671,098 | (2,456,683) | 10,214,415 | 13,507,131 | (2,089,729) | 11,417,402 | |||||||||||||||||||||||||||||
| Short term investments, at fair value | $ | 4,935,960 | $ | (3,626,585) | $ | 1,309,375 | $ | 5,298,385 | $ | (3,848,227) | $ | 1,450,158 | |||||||||||||||||||||||
| Equity investments trading, at fair value | |||||||||||||||||||||||||||||||||||
| Fixed income exchange traded funds | 394,851 | — | 394,851 | 90,422 | — | 90,422 | |||||||||||||||||||||||||||||
| Other equity investments trading | 555,542 | (286) | 555,256 | 455,594 | (308) | 455,286 | |||||||||||||||||||||||||||||
| Total equity investments trading, at fair value | 950,393 | (286) | 950,107 | 546,016 | (308) | 545,708 | |||||||||||||||||||||||||||||
| Other investments, at fair value | |||||||||||||||||||||||||||||||||||
| Catastrophe bonds | 1,135,053 | (959,092) | 175,961 | 1,104,034 | (886,541) | 217,493 | |||||||||||||||||||||||||||||
| Direct private equity investments | 69,923 | — | 69,923 | 88,373 | — | 88,373 | |||||||||||||||||||||||||||||
| Fund investments: | |||||||||||||||||||||||||||||||||||
| Private credit funds | 677,499 | — | 677,499 | 473,112 | — | 473,112 | |||||||||||||||||||||||||||||
| Private equity funds | 280,689 | — | 280,689 | 241,297 | — | 241,297 | |||||||||||||||||||||||||||||
| Hedge funds | — | — | — | 11,393 | 1 | 11,394 | |||||||||||||||||||||||||||||
| Term loans | 100,000 | — | 100,000 | 74,850 | — | 74,850 | |||||||||||||||||||||||||||||
| Total other investments, at fair value | 2,263,164 | (959,092) | 1,304,072 | 1,993,059 | (886,540) | 1,106,519 | |||||||||||||||||||||||||||||
| Investments in other ventures, under equity method | 72,535 | — | 72,535 | 98,068 | — | 98,068 | |||||||||||||||||||||||||||||
| Total investments | $ | 20,893,150 | (7,042,646) | $ | 13,850,504 | 21,442,659 | (6,824,804) | 14,617,855 | |||||||||||||||||||||||||||
(1)“Managed” represents the consolidated total investments as presented on the Company’s consolidated balance sheets.
(2)Adjustment for the portions of the consolidated total investments attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds.
(3)“Retained” represents the consolidated total investments, less the portions attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds.
(4)Corporate fixed maturity investments include non-U.S. government-backed corporate fixed maturity investments.
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| Comments on Regulation G | ||
Retained Total Investments, Unrealized Gain (Loss)
The Company has included in this Financial Supplement “retained total investments, unrealized gain (loss).” “Retained total investments, unrealized gain (loss)” is defined as the unrealized gain (loss) of the consolidated total investments, less the portions attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds. Unrealized gain (loss) of the consolidated total investments is the difference between fair value and amortized cost or equivalent of the respective investments as at the balance sheet date. “Retained total investments, unrealized gain (loss)” differs from the unrealized gain (loss) of the consolidated total investments, which the Company believes is the most directly comparable GAAP measure, due to the exclusion of portions of the consolidated total investments attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds. The Company’s management believes the “retained total investments, unrealized gain (loss)” is useful to investors because it provides a measure of the portion of the unrealized gain (loss) of investments in the Company’s consolidated total investments that is available (attributable) to RenaissanceRe common shareholders. The following table is a reconciliation of the total unrealized gain (loss) of investments, to “retained total investments, unrealized gain (loss)".
| September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||
| Type of Investment | Unrealized Gain (Loss) - Managed (1) | Adjustment (2) | Unrealized Gain (Loss) - Retained (3) | Unrealized Gain (Loss) - Managed (1) | Adjustment (2) | Unrealized Gain (Loss) - Retained (3) | |||||||||||||||||||||||||||||
| Fixed maturity investments trading, at fair value | |||||||||||||||||||||||||||||||||||
| U.S. treasuries | $ | (239,857) | $ | 21,130 | $ | (218,727) | $ | (54,534) | $ | 6,972 | $ | (47,562) | |||||||||||||||||||||||
| Corporate | (440,148) | 57,493 | (382,655) | 10,472 | 1,497 | 11,969 | |||||||||||||||||||||||||||||
Other (4) | (204,092) | 37,297 | (166,795) | (1,386) | (698) | (2,084) | |||||||||||||||||||||||||||||
| Total fixed maturity investments trading, at fair value | (884,097) | 115,920 | (768,177) | (45,448) | 7,771 | (37,677) | |||||||||||||||||||||||||||||
| Equity investments trading, at fair value | (65,852) | (110) | (65,962) | 156,245 | (125) | 156,120 | |||||||||||||||||||||||||||||
| Other investments, at fair value | |||||||||||||||||||||||||||||||||||
| Catastrophe bonds | (217,779) | 161,425 | (56,354) | (63,665) | 27,416 | (36,249) | |||||||||||||||||||||||||||||
| Direct private equity investments | (28,218) | — | (28,218) | (4,768) | — | (4,768) | |||||||||||||||||||||||||||||
| Fund investments | 105,285 | — | 105,285 | 138,045 | 1 | 138,046 | |||||||||||||||||||||||||||||
| Total other investments, at fair value | (140,712) | 161,425 | 20,713 | 69,612 | 27,417 | 97,029 | |||||||||||||||||||||||||||||
| Total investments | $ | (1,090,661) | $ | 277,235 | $ | (813,426) | $ | 180,409 | $ | 35,063 | $ | 215,472 | |||||||||||||||||||||||
Unrealized gain (loss) on total fixed maturity investments trading, at fair value, per common share (5) | $ | (17.58) | $ | (0.85) | |||||||||||||||||||||||||||||||
(1)“Managed” represents the consolidated total investments as presented on the Company’s consolidated balance sheets.
(2)Adjustment for the portions of the consolidated total investments attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds.
(3)“Retained” represents the consolidated total investments, less the portions attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds.
(4)Includes agencies, non-U.S. government, residential mortgage-backed, commercial mortgage-backed and asset-backed securities within the Company's fixed maturity investments trading.
(5)Represents the impact to book value per common share of the unrealized gain (loss) on total fixed maturity investments trading, at fair value, of $768.2 million and $37.7 million at September 30, 2022 and December 31, 2021, respectively. Book value per common share is calculated net of redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds. Accordingly, there is no corresponding managed metric for the unrealized gain (loss) on total fixed maturity investments trading, at fair value, per common share.
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| Comments on Regulation G | ||
Operating (income) loss attributable to redeemable noncontrolling interests
The Company has included in this Financial Supplement “operating (income) loss attributable to redeemable noncontrolling interests.” “Operating (income) loss attributable to redeemable noncontrolling interests” is defined as net (income) loss attributable to redeemable noncontrolling interests as adjusted for the portion of the adjustments to the Company’s redeemable noncontrolling interests which are excluded from net income (loss) available (attributable) to RenaissanceRe common shareholders in calculating the Company’s operating income (loss) available (attributable) to RenaissanceRe common shareholders. The Company’s management believes that “operating (income) loss attributable to redeemable noncontrolling interests” is useful to investors because it provides additional information on the operations and financial results of the Company’s Managed Joint Ventures and how noncontrolling interests impact the Company’s results. The following table is a reconciliation of net (income) loss attributable to redeemable noncontrolling interests, the most directly comparable GAAP measure, to "operating (income) loss attributable to redeemable noncontrolling interests."
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | ||||||||||||||||||||
Net (income) loss attributable to redeemable noncontrolling interests (1) | $ | 372,429 | $ | 198,495 | $ | 335,010 | $ | 131,801 | |||||||||||||||
| Adjustment for the portion of net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds attributable to redeemable noncontrolling interests | 80,550 | 1,905 | 216,169 | 17,894 | |||||||||||||||||||
| Adjustment for the portion of net foreign exchange losses (gains) attributable to redeemable noncontrolling interests | 13,940 | 3,528 | 44,828 | 17,953 | |||||||||||||||||||
Adjustment for non-operating (income) loss attributable to redeemable noncontrolling interests (2) | 94,490 | 5,433 | 260,997 | 35,847 | |||||||||||||||||||
| Operating (income) loss attributable to redeemable noncontrolling interests | $ | 277,939 | $ | 193,062 | $ | 74,013 | $ | 95,954 | |||||||||||||||
(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.
(2)Represents the total portion of adjustments attributable to the Company’s redeemable noncontrolling interests which are excluded from net income (loss) available (attributable) to RenaissanceRe common shareholders when calculating the Company’s operating income (loss) available (attributable) to RenaissanceRe common shareholders. These adjustments include (1) net realized and unrealized gains and losses on investments, excluding other investments - catastrophe bonds and (2) net foreign exchange gains and losses.
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