RenaissanceRe Reports Net Income of $211.8 Million for the Fourth Quarter of 2009 or $3.38 Per Diluted Common Share; Operating Income of $177.7 Million or $2.82 Per Diluted Common Share
Annual Net Income of $838.9 Million for 2009 or $13.40 Per Diluted Common Share; Annual Operating Income of $768.2 Million or $12.25 Per Diluted Common Share
PEMBROKE, Bermuda--(BUSINESS WIRE)-- RenaissanceRe Holdings Ltd. (NYSE: RNR) today reported net income available to common shareholders of $211.8 million or $3.38 per diluted common share in the fourth quarter of 2009, compared to a net loss attributable to common shareholders of $55.2 million, or a loss of $0.91 per diluted common share, in the fourth quarter of 2008. Operating income available to common shareholders was $177.7 million for the fourth quarter of 2009, or $2.82 per diluted common share, compared to $28.7 million, or $0.47 per diluted common share, in the fourth quarter of 2008. Operating income excludes net realized and unrealized gains on fixed maturity investments of $35.4 million and net other-than-temporary impairments of $1.3 million in the fourth quarter of 2009 and net realized losses on fixed maturity investments of $17.6 million and net other-than-temporary impairments of $66.3 million in the fourth quarter of 2008.
The Company reported an annualized return on average common equity of 27.1% and an annualized operating return on average common equity of 22.7% in the fourth quarter of 2009, compared to negative 9.2% and positive 4.8%, respectively, in the fourth quarter of 2008. Book value per common share increased $2.47, or 5.0%, in the fourth quarter of 2009 to $51.68, compared to a 0.5% decrease in the fourth quarter of 2008. During the year ended December 31, 2009, book value per common share increased $12.94, or 33.4%, compared to a decrease of $2.29, or 5.6% during the year ended December 31, 2008.
Neill A. Currie, CEO, commented: "I am pleased to report strong full year earnings, resulting in an increase in our tangible book value per common share plus the change in accumulated dividends of 38%. These earnings are a result of a relatively low level of insured catastrophe losses, favorable development on prior year reserves, solid investment results and strong performance by our team. While volatility is inherent in our business, we seek to build a portfolio of risks with attractive expected returns, with the potential to achieve superior returns in good years, such as 2009, while seeking to ensure our losses are manageable in high catastrophe loss years."
Mr. Currie added: "We are pleased with the results of our January 1 renewals and have constructed an attractive portfolio of business for 2010. We will continue to maintain our underwriting discipline, focusing on expected profit rather than premium volume. This discipline has been part of our culture since our formation and we believe this strategy will continue to benefit our shareholders over the long term."
FOURTH QUARTER 2009 HIGHLIGHTS
Underwriting Results
Gross premiums written for the fourth quarter of 2009 were $73.0 million, an $88.6 million decrease from the fourth quarter of 2008, principally reflecting a $63.6 million decrease in the Company's Reinsurance segment and a $24.4 million decrease in the Company's Individual Risk segment, as described in more detail below. The Company generated $184.5 million of underwriting income and had a combined ratio of 37.7% in the fourth quarter of 2009, compared to $205.7 million of underwriting income and a combined ratio of 36.1% in the fourth quarter of 2008. The strong underwriting results in the fourth quarter of 2009 were primarily driven by a low level of insured catastrophes combined with $75.1 million of favorable development on prior year reserves in the quarter. As discussed in more detail below, the favorable development was principally driven by reductions in estimated ultimate net losses on the 2008, 2005 and 2004 hurricanes in the Company's catastrophe reinsurance unit. Favorable development on prior year reserves in the fourth quarter of 2008 totaled $104.2 million.
Reinsurance Segment
Gross premiums written for the Company's Reinsurance segment were negative $10.2 million in the fourth quarter of 2009, compared to $53.4 million in the fourth quarter of 2008, a decrease of $63.6 million. The decrease is primarily due to a $55.8 million decrease in gross premiums written in the Company's catastrophe reinsurance unit, combined with a $7.8 million decrease in gross premiums written in the Company's specialty reinsurance unit. The decrease in gross premiums written in the Company's catastrophe reinsurance unit is primarily due to estimated negative premium adjustments on the 2009 underwriting year of $19.2 million, principally due to an estimated decrease in the amount of premium underlying ceding companies have written in 2009, $15.0 million due to credit related issues with certain ceding companies which experienced significant financial difficulty in the fourth quarter of 2009, and the non-renewal of a large program in the fourth quarter of 2009, that originally incepted during the fourth quarter of 2008. The $7.8 million decrease in gross premiums written in the Company's specialty reinsurance unit in the fourth quarter of 2009, compared to the fourth quarter of 2008, was principally due to the non-renewal and portfolio transfer out of a catastrophe exposed homeowners personal lines property quota share during the second quarter of 2009. The Reinsurance segment's gross premiums written continue to be comprised of a relatively small number of large transactions which can result in significant increases or decreases in gross premiums written from one period to the next.
The Reinsurance segment generated $178.5 million of underwriting income and had a combined ratio of 7.8% in the fourth quarter of 2009, compared to $205.8 million of underwriting income and a combined ratio of negative 2.8% in the fourth quarter of 2008. The $27.3 million decrease in underwriting income and 10.6 percentage point increase in the combined ratio was principally driven by an $18.3 million increase in underwriting expenses, reflecting higher operating expenses as a result of an increase in personnel and related compensation and benefits costs, as well as a $6.6 million decrease in net premiums earned due in part to the negative premium adjustments discussed above. The Reinsurance segment experienced $18.2 million of current accident year losses in the fourth quarter of 2009, compared to $46.4 million of current accident year losses in the fourth quarter of 2008, with the $28.2 million decrease principally due to lower estimated losses in the Company's specialty unit. Current accident year losses within the catastrophe unit of $7.3 million and $7.3 million in the fourth quarters of 2009 and 2008, respectively, were each low due to low insured catastrophe losses in the fourth quarters of 2009 and 2008, respectively. The Reinsurance segment experienced $65.7 million of favorable development on prior year reserves in the fourth quarter of 2009 which includes $57.0 million related to the Company's catastrophe reinsurance unit, principally attributable to a reduction in ultimate net losses associated with the 2004 hurricanes, Charley, Frances, Ivan and Jeanne ($11.3 million), the 2005 hurricanes, Katrina, Rita and Wilma ($25.7 million), and the 2008 hurricanes, Gustav and Ike ($14.7 million), and $8.7 million related to the Company's specialty reinsurance unit.
Individual Risk Segment
Gross premiums written for the Company's Individual Risk segment decreased $24.4 million, or 22.6%, to $83.6 million in the fourth quarter of 2009, compared to $108.0 million in the fourth quarter of 2008, with the decrease driven primarily by a $26.3 million decrease in the Company's crop insurance gross premiums written. The decrease in crop insurance gross premiums written was principally due to a significant decline in commodity prices used in determining the policy premium in the fourth quarter of 2009 compared to the fourth quarter of 2008. In 2009 the Company's crop policy count increased compared to prior periods. There can be significant increases or decreases in gross premiums written in the Company's Individual Risk segment between quarters and between years based on several factors, including, without limitation, the timing of the inception or cessation of new program managers and quota share reinsurance contracts. In addition, the Company's gross premiums written in respect of its crop insurance business are subject to fluctuations from a number of factors including the impact of relevant commodity prices.
The Individual Risk segment generated $6.0 million of underwriting income and a combined ratio of 94.2% in the fourth quarter of 2009, compared to an underwriting loss of $0.1 million and a combined ratio of 100.1% in the fourth quarter of 2008. The increase in underwriting income and reduction in the combined ratio were driven by a $24.0 million decrease in current accident year losses due to lower net claims and claim expenses in the Company's crop insurance business in the fourth quarter of 2009, compared to the fourth quarter of 2008, and partially offset by a $19.2 million decrease in net premiums earned, principally driven by a 22.6% decrease in gross premiums written in 2009 compared to 2008. The Individual Risk segment experienced $9.4 million of favorable development on prior year reserves in the fourth quarter of 2009 compared to $7.9 million of favorable development in the fourth quarter of 2008. The favorable development on prior year reserves in the fourth quarter of 2009 was primarily due to a reduction in estimated ultimate losses on the 2005 hurricanes, compared to the favorable development in the fourth quarter of 2008, which was primarily due to revised reported loss development patterns for several of the Company's liability lines of business that were enhanced to reflect the Company's actual experience to date with these lines, principally for the 2004 through 2007 accident years.
Investments
Returns on the Company's investment portfolio were notably higher in the fourth quarter of 2009 compared to the fourth quarter of 2008, primarily due to higher total returns on the Company's non-investment grade allocations which the Company includes in other investments including its senior secured bank loan funds and non-U.S. fixed income funds as discussed in more detail below. The Company's total investment result, which includes the sum of net investment income, net realized and unrealized gains and losses on fixed maturity investments available for sale and trading and net other-than-temporary impairments, was $48.8 million in the fourth quarter of 2009, compared to negative $104.2 million in the fourth quarter of 2008, an increase of $153.1 million. The Company's total investment result for the fourth quarter of 2009 continued to benefit from tightening credit spreads and improved economic conditions, and partially offset by an increase in interest rates.
Net investment income was $60.7 million in the fourth quarter of 2009, compared to a net investment loss of $82.7 million in the fourth quarter of 2008. The $143.5 million increase in net investment income was principally driven by a $65.5 million increase from the Company's hedge fund and private equity investments and a $99.0 million increase in net investment income from its other investments, principally senior secured bank loan funds and non-U.S. fixed income funds, and partially offset by a $16.0 million and $5.5 million decrease in net investment income from the Company's fixed maturity investments and short term investments, respectively, principally due to lower yields on these investments. The Company's hedge fund, private equity and other investments are accounted for at fair value with the change in fair value recorded in net investment income, which included net unrealized gains of $17.1 million in the fourth quarter of 2009, compared to net unrealized losses of $155.4 million in the fourth quarter of 2008.
Net realized and unrealized gains on fixed maturity investments were $35.4 million in the fourth quarter of 2009, compared to net realized and unrealized losses on fixed maturity investments of $17.6 million in the fourth quarter of 2008, an increase of $53.0 million. During the fourth quarter of 2009, the Company started designating, upon acquisition, certain fixed maturity investments as trading, rather than available for sale, and as a result, $11.4 million of unrealized losses on these securities are recorded in net realized and unrealized gains (losses) on fixed maturity investments in the Company's consolidated statements of operations in the fourth quarter of 2009 rather than in accumulated other comprehensive income in shareholders' equity. Net other-than-temporary impairments recognized in earnings were $1.3 million in the fourth quarter of 2009, compared to $66.3 million for the fourth quarter of 2008. The significant decrease in net other-than-temporary impairments is due to the combination of improved economic conditions in the fourth quarter of 2009, compared to the fourth quarter of 2008, and the adoption of new authoritative accounting guidance related to the recognition and presentation of other-than-temporary impairments during the second quarter of 2009.
Other Items
-- During the fourth quarter of 2009, the Company started designating, upon
acquisition, certain fixed maturity investments as trading, rather than
as available for sale. The Company made this change due in part to the
new authoritative other-than-temporary impairment GAAP guidance that
became effective on April 1, 2009 which has resulted in additional
accounting judgment required to be made on a quarterly basis, combined
with an effort to report the Company's fixed maturity investment
portfolio results in its consolidated statements of operations in a
manner consistent with the way in which the Company manages the
portfolio, which is on a total return basis. The Company currently
expects to continue to designate, in future periods, upon acquisition,
certain fixed maturity investments as trading, rather than as available
for sale, and, as a result, the Company currently expects its fixed
maturity investments available for sale balance to decrease and its
fixed maturity investments trading balance to increase over time,
resulting in a reduction in other-than-temporary impairment accounting
judgments the Company makes. This change will also result in additional
volatility in the Company's net income (loss) in future periods as net
unrealized gains and losses on these fixed maturity investments will be
recorded currently in net income (loss), rather than as a component of
accumulated other comprehensive income (loss) in shareholders' equity.
This change did not impact, and the Company does not expect it will
impact in future periods, the Company's calculations of operating income
available to RenaissanceRe common shareholders, operating return on
average common equity, operating income available to RenaissanceRe
common shareholder per common share - diluted or book value per share.
-- Operational expenses increased $29.3 million to $57.6 million in the
fourth quarter of 2009, compared to $28.3 million in the fourth quarter
of 2008, primarily due to increased compensation and benefits related
costs as a result of the Company's strong financial results in 2009 as
well as increased headcount.
-- During the fourth quarter of 2009, the Company repaid its revolving
credit facility of $150.0 million with existing capital resources.
-- During the fourth quarter of 2009, the Company repurchased approximately
951 thousand common shares in open market transactions at an aggregate
cost of $51.0 million and at an average share price of $53.55.
Subsequent to December 31, 2009 and through the period ending February
9, 2010, the Company has repurchased an additional approximately 1.7
million common shares in open market transactions at an aggregate cost
of $90.4 million and at an average share price of $53.81.
FULL YEAR 2009 HIGHLIGHTS
For the year ended December 31, 2009, the Company reported net income available to common shareholders of $838.9 million or $13.40 per diluted common share, compared to a net loss attributable to common shareholders of $13.3 million, or a loss of $0.21 per diluted common share, in 2008. Operating income available to common shareholders was $768.2 million, or $12.25 per diluted common share, compared to $193.0 million, or $3.04 per diluted common share, in 2008. Operating income excludes net realized and unrealized gains on fixed maturity investments of $93.2 million and net other-than-temporary impairments of $22.5 million in 2009 and net realized and unrealized gains on fixed maturity investments of $10.7 million and net other-than-temporary impairments of $217.0 million in 2008.
The Company reported a return on average common equity of 30.2% and an operating return on average common equity of 27.6% in 2009, compared to negative 0.5% and positive 7.4%, respectively, in 2008. Book value per common share was $51.68 at December 31, 2009, an increase of $12.94, or 33.4%, in 2009, compared to a 5.6% decrease in 2008.
As discussed in more detail below, the Company's 2009 operating results, in comparison to its 2008 operating results, were positively impacted by significantly improved investments results, due primarily to higher total returns on certain non-investment grade allocations which are included in other investments and higher returns on the Company's hedge fund and private equity investments, combined with higher underwriting income, principally driven by a decrease in current accident year net claims and claim expenses due to a comparably low level of insured catastrophes occurring during 2009, compared to 2008, specifically the comparative impact of events such as hurricanes Gustav and Ike, which occurred during 2008 and negatively impacted the Company's 2008 results.
Underwriting Results
Gross premiums written for 2009 were $1,728.9 million, a decrease of $7.1 million from 2008. As described in more detail below, the decrease in gross premiums written was driven by a $56.5 million decrease in the gross premiums written in the Company's Individual Risk segment and partially offset by a $49.4 million increase in gross premiums written in the Company's Reinsurance segment (net of intercompany premium). As described in more detail below, the Company generated $697.1 million of underwriting income and had a combined ratio of 45.3% in 2009, compared to $290.6 million of underwriting income and a 79.0% combined ratio in 2008. The $406.5 million increase in underwriting income and 33.7 percentage point decrease in the combined ratio was driven by the comparably low level of insured catastrophes during 2009, compared to 2008, specifically the comparative impact of hurricanes Gustav and Ike which resulted in $419.1 million of underwriting losses and increased the Company's combined ratio by 32.3 percentage points in 2008. The net negative impact from hurricanes Gustav and Ike was $276.2 million in 2008. Following is supplemental financial data regarding the underwriting impact by segment on the Company's 2008 results due to hurricanes Gustav and Ike:
Twelve months ended December 31, 2008
(in millions of United States Reinsurance Individual Risk Total
dollars)
Net claims and claim expenses $ (432.6 ) $ (35.4 ) $ (468.0 )
incurred
Net reinstatement premiums earned 58.4 (4.8 ) 53.6
Lost profit commissions (4.7 ) - (4.7 )
Net impact on underwriting result (378.9 ) (40.2 ) (419.1 )
Redeemable noncontrolling interest - 142.9 - 142.9
DaVinciRe
Net negative impact $ (236.0 ) $ (40.2 ) $ (276.2 )
Impact on combined ratio 46.6 % 8.4 % 32.3 %
The Company experienced $244.5 million of favorable development on prior year reserves in 2009, compared to $234.8 million of favorable development in 2008, as discussed in more detail below.
Reinsurance Segment
Gross premiums written for the Company's Reinsurance segment increased $56.4 million, or 4.9%, to $1,210.8 million in 2009, compared to $1,154.4 million in 2008. For the year ended December 31, 2009, the Company's managed catastrophe premiums and specialty premiums totaled $1,135.8 million and $114.3 million, respectively, compared to $1,044.3 million and $159.8 million, respectively, in 2008. Excluding the impact of $58.4 million of reinstatement premiums written in 2008 as a result of hurricanes Gustav and Ike, the Company's managed catastrophe gross premiums written increased $149.9 million, or 15.2%, in 2009, compared to 2008, due to the Company's ability and determination to increase the capacity provided to its catastrophe unit clients in light of, among other things, attractive market conditions for the 2009 underwriting year, the inception of several new programs, and $32.0 million of premium written on behalf of and ceded to Timicuan Reinsurance II Ltd., a side-car established by the Company in the second quarter of 2009 for the 2009 underwriting year. The Company's specialty gross premiums written decreased $45.4 million, or 28.4%, compared to the comparative period in 2008, principally due to the non-renewal of several programs that did not meet the Company's underwriting standards, combined with the non-renewal and portfolio transfer out of a catastrophe exposed homeowners personal lines property quota share contract during the second quarter of 2009. The Reinsurance segment's gross premiums written continue to be comprised of a relatively small number of large transactions which can result in significant increases or decreases in gross premiums written from one period to the next.
The Reinsurance segment generated $719.2 million of underwriting income and had a combined ratio of 15.4% in 2009, compared to $281.6 million of underwriting income and a 69.0% combined ratio in 2008. The $437.6 million increase in underwriting income was primarily due to a $528.5 million decrease in net claims and claim expenses due to a comparably lower level of insured catastrophes occurring in 2009 compared to 2008, specifically the comparative impact of events such as hurricanes Gustav and Ike, which added $432.6 million in net claims and claim expenses and 46.6 percentage points to the Reinsurance segment's combined ratio in 2008.
The Reinsurance segment experienced $249.5 million of favorable development on prior year reserves in 2009, which includes $184.4 million related to the Company's catastrophe reinsurance unit and $65.1 million related to the Company's specialty reinsurance unit. The favorable development within the Company's catastrophe reinsurance unit in 2009 was principally attributable to a reduction in ultimate net losses associated with the 2008 hurricanes, Gustav and Ike ($44.7 million); the 2005 hurricanes, Katrina, Rita and Wilma ($25.5 million); the 2007 European windstorm Kyrill ($16.7 million); the 2007 California wildfires ($14.1 million); the 2007 flooding in the U.K. ($14.6 million); and the 2004 hurricanes, Charley, Frances, Ivan and Jeanne ($11.3 million), due to better than expected reported claims activity, and with respect of the 2004 and 2005 hurricanes, the adoption of a new actuarial technique using reported loss development factors to estimate the ultimate losses for these events. The remaining favorable development within the Company's catastrophe reinsurance unit was due to a reduction of ultimate net losses on a variety of smaller catastrophes such as hail storms, winter freezes, floods, fires, tornadoes which occurred during the 2006 through 2008 accident years. The favorable development within the Company's specialty reinsurance unit in 2009 was principally attributable to lower than expected claims emergence on the 2005 through 2008 underwriting years of $87.6 million which was driven by the application of the Company's formulaic actuarial reserving methodology for this business with the reductions being due to actual paid and reported loss activity being more favorable to date than what was originally anticipated when setting the initial IBNR reserves, as well as $10.0 million due to a reduction in one claim on a contract related to the 2005 hurricanes, and partially offset by a $32.5 million increase in the Company's estimated ultimate net losses on the 2008 Madoff matter.
Individual Risk Segment
Gross premiums written for the Company's Individual Risk segment decreased $56.5 million, or 9.6%, to $530.8 million in 2009, compared to $587.3 million in 2008. The decrease in gross premiums written was primarily due to decreases of $49.8 million, $13.8 million and $10.7 million from the Company's commercial property, commercial multi-line and personal lines property businesses, respectively, as a result of the Company's decision in late 2008 to terminate several program manager relationships and a commercial property quota share contract as a result of the then softening market conditions and, during the second quarter of 2009, to reduce its participation on a personal lines property quota share contract. Offsetting these decreases in gross premiums written for 2009 was a $17.8 million increase in the Company's crop insurance gross premiums written, principally driven by an increase in policy count and insured acres, which more than offset a decline in commodity prices used in determining the policy premium. There can be significant increases or decreases in gross premiums written in the Company's Individual Risk segment between quarters and between years based on several factors, including, without limitation, the timing of the inception or cessation of new program managers and quota share reinsurance contracts. In addition, the Company's gross premiums written in respect of its crop insurance business are subject to fluctuations from a number of factors including the impact of relevant commodity prices.
The Individual Risk segment incurred an underwriting loss of $22.1 million and a combined ratio of 105.2% in 2009, compared to generating underwriting income of $9.0 million and a combined ratio of 98.1% in 2008. The $31.1 million decrease in underwriting income and 7.1 percentage point increase in the combined ratio were principally due to a $53.0 million decrease in net premiums earned and a $12.8 million increase in underwriting expenses, partially offset by a $34.7 million decrease in net claims and claim expenses incurred as a result of the comparably low level of catastrophes during 2009, compared to 2008. The Individual Risk segment underwriting results for accident year 2009 were negatively impacted by $17.5 million of net crop hail losses in excess of net premiums earned within the Company's crop insurance business. Included in net claims and claim expense in the Company's Individual Risk segment for 2008 was $35.4 million of net claims and claim expenses related to hurricanes Gustav and Ike, which added 8.4 percentage points to the combined ratio.
The Individual Risk segment experienced $5.0 million of adverse development in 2009, compared to favorable development of $46.7 million in 2008. The adverse development in 2009 was principally driven by $26.9 million of adverse development in the Company's crop insurance business primarily due to an increase in the severity of reported loss activity in 2009 on the 2008 crop year. This more than offset a $2.4 million reduction in ultimate net losses on the 2004 and 2005 hurricanes, principally due to the adoption of a new actuarial technique using reported loss development factors to estimate the ultimate losses for these events, $2.1 million of favorable development due to changes in actuarial assumptions and $17.4 million of favorable development principally driven by the application of the Company's formulaic actuarial reserving methodology for this business with the reductions being due to actual paid and reported loss activity being more favorable to date than what was originally anticipated when setting the initial IBNR reserves.
Investments
Returns on the Company's investment portfolio were significantly higher in 2009 compared to 2008, primarily due to higher total returns on the Company's non-investment grade allocations which the Company includes in other investments including its senior secured bank loan funds and non-U.S. fixed income funds as discussed in more detail below. The Company's total investment result, which includes the sum of net investment income, net realized and unrealized gains and losses on fixed maturity investments available for sale and trading and net other-than-temporary impairments, was $437.4 million in 2009, a $590.0 million increase from negative $152.7 million in 2008. The Company does not anticipate a repeat of its 2009 investment performance in future periods.
Net investment income was $324.0 million in 2009 compared to $24.2 million in 2008, an increase of $299.8 million. The increase in net investment income in 2009 was principally driven by a $120.1 million increase from the Company's hedge fund and private equity investments and a $263.2 million increase in net investment income from its other investments, principally senior secured bank loan funds and non-U.S. fixed income funds, and partially offset by a $40.7 million and $38.5 million decrease in net investment income from the Company's fixed maturity investments and short term investments, respectively, principally due to lower yields on these investments. The Company's hedge fund, private equity and other investments are accounted for at fair value with the change in fair value recorded in net investment income, which included net unrealized gains of $88.5 million in 2009, compared to net unrealized losses of $259.4 million in 2008.
Net realized and unrealized gains on fixed maturity investments were $93.2 million in 2009, compared to net realized gains on fixed maturity investments of $10.7 million in 2008, an increase of $82.5 million. As noted above, during the fourth quarter of 2009, the Company started designating, upon acquisition, certain fixed maturity investments as trading, rather than available for sale, and as a result, $11.4 million of unrealized losses on these securities are recorded in net realized and unrealized gains (losses) on fixed maturity investments in the Company's consolidated statements of operations in 2009 rather than in accumulated other comprehensive income in shareholders' equity. Net other-than-temporary impairments recognized in earnings were $22.5 million in 2009, compared to $217.0 million in 2008. The significant decrease in net other-than-temporary impairments is due to the combination of improved economic conditions in 2009, compared to 2008, and the adoption of new authoritative accounting guidance related to the recognition and presentation of other-than-temporary impairments during the second quarter of 2009.
Other Items
-- Operational expenses increased $67.5 million to $189.7 million in 2009,
compared to $122.2 million in 2008, primarily due to increased
compensation and benefits related costs as a result of the Company's
strong financial results in 2009 as well as increased headcount.
-- Corporate expenses decreased $11.4 million to $14.2 million in 2009,
compared to $25.6 million in 2008, primarily due to the recognition of a
corporate insurance recovery during the third quarter of 2009.
-- Income tax expense increased $8.5 million to $9.1 million in 2009,
compared to $0.6 million in 2008, principally due to improved
profitability in the Company's U.S. operations, specifically related to
its energy and weather risk management operations.
This press release includes certain non-GAAP financial measures including "operating income available to RenaissanceRe common shareholders", "operating income available to RenaissanceRe common shareholders per common share - diluted", "operating return on average common equity - annualized", "tangible book value per common share plus accumulated dividends" and "managed catastrophe premiums". 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 "Investor Information - Financial Reports - Financial Supplements" section of the Company's website at www.renre.com for a copy of the Financial Supplement which includes additional information on the Company's financial performance.
RenaissanceRe Holdings Ltd. will host a conference call on Wednesday, February 10, 2010 at 9:30 a.m. (ET) to discuss this release. Live broadcast of the conference call will be available through the "Investor Information - Company Webcasts" section of RenaissanceRe's website at www.renre.com.
RenaissanceRe Holdings Ltd. is a global provider of reinsurance and insurance. The Company's business consists of two segments: (1) Reinsurance, which includes catastrophe reinsurance, specialty reinsurance and certain joint ventures and other investments managed by the Company's subsidiary RenaissanceRe Ventures Ltd., and (2) Individual Risk, which includes primary insurance and quota share reinsurance.
Cautionary Statement under "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995: Statements made in this earnings release contain information about the Company's future business prospects. These statements may be considered "forward-looking." These statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements. For further information regarding cautionary statements and factors affecting future results, please refer to RenaissanceRe Holdings Ltd.'s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2008 and its quarterly reports on Form 10-Q.
RenaissanceRe Holdings Ltd. and Subsidiaries
Summary Consolidated Statements of Operations
(in thousands of United States Dollars, except per share amounts)
(Unaudited)
Three months ended Twelve months ended
December December December 31, December 31,
31, 31,
2009 2008 2009 2008
Revenues
Gross premiums $ 73,046 $ 161,609 $ 1,728,932 $ 1,736,028
written
Net premiums written $ 53,093 $ 142,074 $ 1,206,397 $ 1,353,620
Decrease in unearned 243,145 179,921 67,419 33,204
premiums
Net premiums earned 296,238 321,995 1,273,816 1,386,824
Net investment income 60,747 (82,724 ) 323,981 24,231
(loss)
Net foreign exchange (862 ) (5,553 ) (13,623 ) 2,600
(losses) gains
Equity in (losses)
earnings of other (523 ) 148 10,976 13,603
ventures
Other income 7,048 6 2,021 10,252
Net realized and
unrealized gains 35,353 (17,622 ) 93,162 10,700
(losses) on fixed
maturity investments
Total
other-than-temporary (1,280 ) (66,251 ) (26,999 ) (217,014 )
impairments
Portion recognized in
other comprehensive - - 4,518 -
income, before taxes
Net
other-than-temporary (1,280 ) (66,251 ) (22,481 ) (217,014 )
impairments
Total revenues 396,721 149,999 1,667,852 1,231,196
Expenses
Net claims and claim 5,700 28,769 197,287 760,489
expenses incurred
Acquisition expenses 48,473 59,281 189,775 213,553
Operational expenses 57,566 28,262 189,686 122,165
Corporate expenses 5,632 6,705 14,240 25,635
Interest expense 3,027 6,513 15,111 24,633
Total expenses 120,398 129,530 606,099 1,146,475
Income before taxes 276,323 20,469 1,061,753 84,721
Income tax (expense) (5,301 ) 368 (9,094 ) (568 )
benefit
Net income 271,022 20,837 1,052,659 84,153
Net income
attributable to
redeemable (48,680 ) (65,454 ) (171,501 ) (55,133 )
noncontrolling
interest - DaVinciRe
Net income (loss)
attributable to 222,342 (44,617 ) 881,158 29,020
RenaissanceRe
Dividends on (10,575 ) (10,575 ) (42,300 ) (42,300 )
preference shares
Net income (loss) available
(attributable) to RenaissanceRe
common shareholders $ 211,767 $ (55,192 ) $ 838,858 $ (13,280 )
Operating income available to
RenaissanceRe common shareholders
per common share - $ 2.82 $ 0.47 $ 12.25 $ 3.04
diluted (1)
Net income (loss) available
(attributable) to RenaissanceRe
common
shareholders per $ 3.41 $ (0.91 ) $ 13.50 $ (0.21 )
common share - basic
Net income (loss) available
(attributable) to RenaissanceRe
common
shareholders per
common share - $ 3.38 $ (0.91 ) $ 13.40 $ (0.21 )
diluted
Average shares 60,604 60,732 60,775 62,531
outstanding - basic
Average shares 61,161 61,269 61,210 63,411
outstanding - diluted
Net claims and claim 1.9 % 8.9 % 15.5 % 54.8 %
expense ratio
Expense ratio 35.8 % 27.2 % 29.8 % 24.2 %
Combined ratio 37.7 % 36.1 % 45.3 % 79.0 %
Operating return on
average common equity 22.7 % 4.8 % 27.6 % 7.4 %
- annualized (1)
(1) See Comments on Regulation G for a reconciliation of non-GAAP financial
measures.
RenaissanceRe Holdings Ltd. and Subsidiaries
Summary Consolidated Balance Sheets
(in thousands of United States Dollars, except per share amounts)
At
December 31, December 31,
2009 2008
(Unaudited) (Audited)
Assets
Fixed maturity investments available for sale, at $ 3,559,197 $ 2,996,885
fair value
Fixed maturity investments trading, at fair value 736,595 -
Total fixed maturity investments, at fair value 4,295,792 2,996,885
Short term investments, at fair value 1,002,306 2,172,343
Other investments, at fair value 858,026 773,475
Investments in other ventures, under equity method 97,287 99,879
Total investments 6,253,411 6,042,582
Cash and cash equivalents 260,716 274,692
Premiums receivable 589,827 565,630
Ceded reinsurance balances 91,852 88,019
Losses recoverable 194,241 299,534
Accrued investment income 31,928 26,614
Deferred acquisition costs 61,870 81,904
Receivable for investments sold 7,431 236,485
Other secured assets 27,730 76,424
Other assets 205,347 217,986
Goodwill and other intangibles 76,688 74,181
Total assets $ 7,801,041 $ 7,984,051
Liabilities, Redeemable Noncontrolling Interest and
Shareholders' Equity
Liabilities
Reserve for claims and claim expenses $ 1,702,006 $ 2,160,612
Reserve for unearned premiums 446,649 510,235
Debt 300,000 450,000
Reinsurance balances payable 381,548 315,401
Payable for investments purchased 59,236 378,111
Other secured liabilities 27,500 77,420
Other liabilities 256,669 290,998
Total liabilities 3,173,608 4,182,777
Redeemable noncontrolling interest - DaVinciRe 786,647 768,531
Shareholders' Equity
Preference shares 650,000 650,000
Common shares 61,745 61,503
Additional paid-in capital - -
Accumulated other comprehensive income 41,438 75,387
Retained earnings 3,087,603 2,245,853
Total shareholders' equity 3,840,786 3,032,743
Total liabilities, redeemable noncontrolling $ 7,801,041 $ 7,984,051
interest and shareholders' equity
Book value per common share $ 51.68 $ 38.74
Common shares outstanding 61,745 61,503
RenaissanceRe Holdings Ltd. and Subsidiaries
Supplemental Financial Data - Segment Information
(in thousands of United States Dollars) (Unaudited)
Three months ended December 31, 2009
Reinsurance Individual Eliminations Other Total
Risk (1)
Gross premiums $ (10,240 ) $ 83,558 $ (272 ) $ - $ 73,046
written
Net premiums written $ (13,947 ) $ 67,040 - $ 53,093
Net premiums earned $ 193,582 $ 102,656 - $ 296,238
Net claims and claim (47,507 ) 53,207 - 5,700
expenses incurred
Acquisition expenses 21,527 26,946 - 48,473
Operational expenses 41,063 16,503 - 57,566
Underwriting income $ 178,499 $ 6,000 - 184,499
Net investment 60,747 60,747
income
Equity in losses of (523 ) (523 )
other ventures
Other income 7,048 7,048
Interest and
preference share (13,602 ) (13,602 )
dividends
Redeemable
noncontrolling (48,680 ) (48,680 )
interest - DaVinciRe
Other items, net (11,795 ) (11,795 )
Net realized and
unrealized gains on 35,353 35,353
fixed maturity
investments
Net
other-than-temporary (1,280 ) (1,280 )
impairments
Net income available
to RenaissanceRe $ 27,268 $ 211,767
common shareholders
Net claims and claim
expenses incurred - $ 18,232 $ 62,568 $ 80,800
current accident
year
Net claims and claim
expenses incurred - (65,739 ) (9,361 ) (75,100 )
prior accident years
Net claims and claim
expenses incurred - $ (47,507 ) $ 53,207 $ 5,700
total
Net claims and claim
expense ratio - 9.4 % 60.9 % 27.3 %
current accident
year
Net claims and claim
expense ratio - (33.9 %) (9.1 %) (25.4 %)
prior accident years
Net claims and claim
expense ratio - (24.5 %) 51.8 % 1.9 %
calendar year
Underwriting expense 32.3 % 42.4 % 35.8 %
ratio
Combined ratio 7.8 % 94.2 % 37.7 %
(1) Represents gross premiums ceded from the Individual Risk segment to the Reinsurance
segment.
Three months ended December 31, 2008
Reinsurance Individual Eliminations Other Total
Risk (1)
Gross premiums $ 53,407 $ 107,958 $ 244 $ - $ 161,609
written
Net premiums written $ 46,557 $ 95,517 - $ 142,074
Net premiums earned $ 200,188 $ 121,807 - $ 321,995
Net claims and claim (49,857 ) 78,626 - 28,769
expenses incurred
Acquisition expenses 26,942 32,339 - 59,281
Operational expenses 17,300 10,962 - 28,262
Underwriting income $ 205,803 $ (120 ) - 205,683
(loss)
Net investment loss (82,724 ) (82,724 )
Equity in earnings 148 148
of other ventures
Other income 6 6
Interest and
preference share (17,088 ) (17,088 )
dividends
Redeemable
noncontrolling (65,454 ) (65,454 )
interest - DaVinciRe
Other items, net (11,890 ) (11,890 )
Net realized losses (17,622 ) (17,622 )
on investments
Net
other-than-temporary (66,251 ) (66,251 )
impairments
Net loss
attributable to $ (260,875 ) $ (55,192 )
RenaissanceRe common
shareholders
Net claims and claim
expenses incurred - $ 46,398 $ 86,546 $ 132,944
current accident
year
Net claims and claim
expenses incurred - (96,255 ) (7,920 ) (104,175 )
prior accident years
Net claims and claim
expenses incurred - $ (49,857 ) $ 78,626 $ 28,769
total
Net claims and claim
expense ratio - 23.2 % 71.1 % 41.3 %
current accident
year
Net claims and claim
expense ratio - (48.1 %) (6.6 %) (32.4 %)
prior accident years
Net claims and claim
expense ratio - (24.9 %) 64.5 % 8.9 %
calendar year
Underwriting expense 22.1 % 35.6 % 27.2 %
ratio
Combined ratio (2.8 %) 100.1 % 36.1 %
(1) Represents gross premiums ceded from the Individual Risk segment to the Reinsurance
segment.
RenaissanceRe Holdings Ltd. and Subsidiaries
Supplemental Financial Data - Segment Information (cont'd.)
(in thousands of United States Dollars) (Unaudited)
Twelve months ended December 31, 2009
Reinsurance Individual Eliminations Other Total
Risk (1)
Gross premiums $ 1,210,795 $ 530,787 $ (12,650 ) $ - $ 1,728,932
written
Net premiums written $ 839,023 $ 367,374 - $ 1,206,397
Net premiums earned $ 849,725 $ 424,091 - $ 1,273,816
Net claims and claim (87,639 ) 284,926 - 197,287
expenses incurred
Acquisition expenses 78,848 110,927 - 189,775
Operational expenses 139,328 50,358 - 189,686
Underwriting income $ 719,188 $ (22,120 ) - 697,068
(loss)
Net investment 323,981 323,981
income
Equity in earnings 10,976 10,976
of other ventures
Other income 2,021 2,021
Interest and
preference share (57,411 ) (57,411 )
dividends
Redeemable
noncontrolling (171,501 ) (171,501 )
interest - DaVinciRe
Other items, net (36,957 ) (36,957 )
Net realized and
unrealized gains on 93,162 93,162
fixed maturity
investments
Net
other-than-temporary (22,481 ) (22,481 )
impairments
Net income available
to RenaissanceRe $ 141,790 $ 838,858
common shareholders
Net claims and claim
expenses incurred - $ 161,868 $ 279,918 $ 441,786
current accident
year
Net claims and claim
expenses incurred - (249,507 ) 5,008 (244,499 )
prior accident years
Net claims and claim
expenses incurred - $ (87,639 ) $ 284,926 $ 197,287
total
Net claims and claim
expense ratio - 19.0 % 66.0 % 34.7 %
current accident
year
Net claims and claim
expense ratio - (29.3 %) 1.2 % (19.2 %)
prior accident years
Net claims and claim
expense ratio - (10.3 %) 67.2 % 15.5 %
calendar year
Underwriting expense 25.7 % 38.0 % 29.8 %
ratio
Combined ratio 15.4 % 105.2 % 45.3 %
(1) Represents gross premiums ceded from the Individual Risk segment to the Reinsurance
segment.
Twelve months ended December 31, 2008
Reinsurance Individual Eliminations Other Total
Risk (1)
Gross premiums $ 1,154,391 $ 587,309 $ (5,672 ) $ - $ 1,736,028
written
Net premiums written $ 871,893 $ 481,727 - $ 1,353,620
Net premiums earned $ 909,759 $ 477,065 - $ 1,386,824
Net claims and claim 440,900 319,589 - 760,489
expenses incurred
Acquisition expenses 105,437 108,116 - 213,553
Operational expenses 81,797 40,368 - 122,165
Underwriting income $ 281,625 $ 8,992 - 290,617
Net investment 24,231 24,231
income
Equity in earnings 13,603 13,603
of other ventures
Other income 10,252 10,252
Interest and
preference share (66,933 ) (66,933 )
dividends
Redeemable
noncontrolling (55,133 ) (55,133 )
interest - DaVinciRe
Other items, net (23,603 ) (23,603 )
Net realized gains 10,700 10,700
on investments
Net
other-than-temporary (217,014 ) (217,014 )
impairments
Net loss
attributable to $ (303,897 ) $ (13,280 )
RenaissanceRe common
shareholders
Net claims and claim
expenses incurred - $ 629,022 $ 366,294 $ 995,316
current accident
year
Net claims and claim
expenses incurred - (188,122 ) (46,705 ) (234,827 )
prior accident years
Net claims and claim
expenses incurred - $ 440,900 $ 319,589 $ 760,489
total
Net claims and claim
expense ratio - 69.1 % 76.8 % 71.8 %
current accident
year
Net claims and claim
expense ratio - (20.6 %) (9.8 %) (17.0 %)
prior accident years
Net claims and claim
expense ratio - 48.5 % 67.0 % 54.8 %
calendar year
Underwriting expense 20.5 % 31.1 % 24.2 %
ratio
Combined ratio 69.0 % 98.1 % 79.0 %
(1) Represents gross premiums ceded from the Individual Risk segment to the Reinsurance
segment.
RenaissanceRe Holdings Ltd. and Subsidiaries
Supplemental Financial Data - Gross Premiums Written Analysis
(in thousands of United States Dollars)
(Unaudited)
Three months ended Twelve months ended
December 31, December 31, December 31, December 31,
Reinsurance Segment
2009 2008 2009 2008
Renaissance $ (17,184 ) $ 19,487 $ 706,947 $ 633,611
catastrophe premiums
Renaissance specialty 21,037 26,875 111,889 153,701
premiums
Total Renaissance 3,853 46,362 818,836 787,312
premiums
DaVinci catastrophe (14,093 ) 5,070 389,502 361,010
premiums
DaVinci specialty - 1,975 2,457 6,069
premiums
Total DaVinci (14,093 ) 7,045 391,959 367,079
premiums
Total Reinsurance $ (10,240 ) $ 53,407 $ 1,210,795 $ 1,154,391
premiums
Total specialty $ 21,037 $ 28,850 $ 114,346 $ 159,770
premiums
Total catastrophe $ (31,277 ) $ 24,557 $ 1,096,449 $ 994,621
premiums
Catastrophe premiums
written on behalf of 2,432 - 51,974 55,370
our joint venture,
Top Layer Re (1)
Catastrophe premiums
assumed from the (272 ) 244 (12,650 ) (5,672 )
Individual Risk
segment
Total managed
catastrophe $ (29,117 ) $ 24,801 $ 1,135,773 $ 1,044,319
premiums (2)
(1) Top Layer Re is accounted for under the equity method of accounting.
(2) See Comments on Regulation G for a reconciliation of non-GAAP financial
measures.
Three months ended Twelve months ended
Individual Risk December 31, December 31, December 31, December 31,
Segment
2009 2008 2009 2008
Crop $ 25,882 $ 52,229 $ 290,324 $ 272,559
Commercial multi-line 25,028 27,131 106,183 119,987
Commercial property 20,820 18,055 84,821 134,601
Personal lines 11,828 10,543 49,459 60,162
property
Total Individual $ 83,558 $ 107,958 $ 530,787 $ 587,309
Risk premiums
RenaissanceRe Holdings Ltd. and Subsidiaries
Supplemental Financial Data - Total Investment Result
(in thousands of United States Dollars)
(Unaudited)
Three months ended Twelve months ended
December 31, December 31, December 31, December 31,
2009 2008 2009 2008
Fixed maturity $ 37,289 $ 53,290 $ 160,550 $ 201,220
investments
Short term investments 1,827 7,313 9,924 48,437
Other investments
Hedge funds and private 10,183 (55,364 ) 18,279 (101,779 )
equity investments
Other 14,058 (84,983 ) 145,367 (117,867 )
Cash and cash 223 1,552 855 7,452
equivalents
63,580 (78,192 ) 334,975 37,463
Investment expenses (2,833 ) (4,532 ) (10,994 ) (13,232 )
Net investment income 60,747 (82,724 ) 323,981 24,231
(loss)
Gross realized gains 52,363 40,749 143,733 99,634
Gross realized losses (5,622 ) (58,371 ) (39,183 ) (88,934 )
Net realized gains
(losses) on fixed 46,741 (17,622 ) 104,550 10,700
maturity investments
Net unrealized losses on
fixed maturity (11,388 ) - (11,388 ) -
investments, trading
Net realized and
unrealized gains 35,353 (17,622 ) 93,162 10,700
(losses) on fixed
maturity investments
Total
other-than-temporary (1,280 ) (66,251 ) (26,999 ) (217,014 )
impairments
Portion recognized in
other comprehensive - - 4,518 -
income, before taxes
Net other-than-temporary (1,280 ) (66,251 ) (22,481 ) (217,014 )
impairments
Net unrealized (losses)
gains on fixed maturity (46,004 ) 62,363 (33,880 ) 29,433
investment available for
sale
FAS 115-2 cumulative - - 76,615 -
effect adjustment (1)
Net change in unrealized
holding gains on
fixed maturity
investments available (46,004 ) 62,363 42,735 29,433
for sale
Total investment result $ 48,816 $ (104,234 ) $ 437,397 $ (152,650 )
(1) Cumulative effect adjustment to opening retained earnings as of April 1,
2009, related to the recognition and presentation of other-than-temporary
impairments, as required by FASB ASC Topic Investments - Debt and Equity
Securities.
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 in this Press Release within the meaning of Regulation G. The Company has provided these financial measurements in previous investor communications and the Company's management believes that these measurements 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 the comparison with other companies within the industry. These measures may not, however, be comparable to similarly titled measures used by companies outside of the insurance industry. Investors are cautioned not to place undue reliance on these non-GAAP measures in assessing the Company's overall financial performance.
The Company uses "operating income available to RenaissanceRe common shareholders" as a measure to evaluate the underlying fundamentals of its operations and believes it to be a useful measure of its corporate performance. "Operating income available to RenaissanceRe common shareholders" as used herein differs from "net income (loss) available (attributable) to RenaissanceRe common shareholders," which the Company believes is the most directly comparable GAAP measure, by the exclusion of net realized and unrealized gains and losses on fixed maturity investments and net other-than-temporary impairments. The Company's management believes that "operating income available to RenaissanceRe common shareholders" is useful to investors because it more accurately measures and predicts the Company's results of operations by removing the variability arising from fluctuations in the Company's fixed maturity investment portfolio. The Company also uses "operating income available to RenaissanceRe common shareholders" to calculate "operating income available to RenaissanceRe common shareholders per common share - diluted" and "operating return on average common equity - annualized". The following is a reconciliation of: 1) net income (loss) available (attributable) to RenaissanceRe common shareholders to operating income available to RenaissanceRe common shareholders; 2) net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted to operating income available to RenaissanceRe common shareholders per common share - diluted; and 3) return on average common equity - annualized to operating return on average common equity - annualized:
Three months ended Twelve months ended
(in thousands of December 31, December 31, December 31, December 31,
United States
dollars, except for 2009 2008 2009 2008
per share amounts)
Net income (loss)
available
(attributable) to $ 211,767 $ (55,192 ) $ 838,858 $ (13,280 )
RenaissanceRe common
shareholders
Adjustment for net
realized and
unrealized (gains) (35,353 ) 17,622 (93,162 ) (10,700 )
losses on fixed
maturity investments
Adjustment for net
other-than-temporary 1,280 66,251 22,481 217,014
impairments
Operating income
available to $ 177,694 $ 28,681 $ 768,177 $ 193,034
RenaissanceRe common
shareholders
Net income (loss)
available
(attributable) to
RenaissanceRe common
shareholders
per common share - $ 3.38 $ (0.91 ) $ 13.40 $ (0.21 )
diluted
Adjustment for net
realized and
unrealized (gains) (0.58 ) 0.29 (1.52 ) (0.17 )
losses on fixed
maturity investments
Adjustment for net
other-than-temporary 0.02 1.09 0.37 3.42
impairments
Operating income
available to
RenaissanceRe common $ 2.82 $ 0.47 $ 12.25 $ 3.04
shareholders
per common share -
diluted
Return on average
common equity - 27.1 % (9.2 %) 30.2 % (0.5 %)
annualized
Adjustment for net
realized and
unrealized (gains) (4.6 %) 2.9 % (3.4 %) (0.4 %)
losses on fixed
maturity investments
Adjustment for net
other-than-temporary 0.2 % 11.1 % 0.8 % 8.3 %
impairments
Operating return on
average common equity 22.7 % 4.8 % 27.6 % 7.4 %
- annualized
The Company has also included in this Press Release "managed catastrophe premiums." "Managed catastrophe premiums" is defined as gross catastrophe premiums written by Renaissance Reinsurance and its related joint ventures, excluding catastrophe premiums assumed from the Company's Individual Risk segment. "Managed catastrophe premiums" differ from total catastrophe premiums, which the Company believes is the most directly comparable GAAP measure, due to the inclusion of catastrophe premiums written on behalf of the Company's joint venture Top Layer Re, which is accounted for under the equity method of accounting, and the exclusion of catastrophe premiums assumed from the Company's Individual Risk segment. The Company's management believes "managed catastrophe premiums" is useful to investors and other interested parties because it provides a measure of total catastrophe reinsurance premiums assumed by the Company through its consolidated subsidiaries and related joint ventures.
The Company has also included in this Press Release "tangible book value per common share plus accumulated dividends." This is defined as book value per common share excluding goodwill and intangible assets, plus accumulated dividends. "Tangible book value per common share plus accumulated dividends" differs from book value per common share, which the Company believes is the most directly comparable GAAP measure, due to the exclusion of goodwill and intangible assets and the inclusion of accumulated dividends. The following is a reconciliation of book value per common share to tangible book value per common share plus accumulated dividends:
At
December 31, September June 30, March 31, December 31,
30,
2009 2009 2009 2008
2009
Book value
per common $ 51.68 $ 49.21 $ 44.17 $ 39.65 $ 38.74
share
Adjustment
for
goodwill (1.95 ) (1.83 ) (1.89 ) (1.93 ) (2.01 )
and other
intangibles
(1)
Tangible
book value $ 49.73 $ 47.38 $ 42.28 $ 37.72 $ 36.73
per common
share
Adjustment
for 8.88 8.64 8.40 8.16 7.92
accumulated
dividends
Tangible
book value
per common $ 58.61 $ 56.02 $ 50.68 $ 45.88 $ 44.65
share plus
accumulated
dividends
(1) At December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009 and December 31, 2008, goodwill and other intangibles included $43.8 million, $45.3 million, $46.7 million, $48.3 million and $49.8 million, respectively, of goodwill and other intangibles included in investments in other ventures, under equity method.
Source: RenaissanceRe Holdings Ltd.
Released February 9, 2010