RenaissanceRe Reports Fourth Quarter 2020 Net Income Available to Common Shareholders of $189.8 Million, or $3.74 Per Diluted Common Share; Operating Loss Attributable to Common Shareholders of $77.1 Million, or $1.59 Per Diluted Common Share
Annual Net Income Available to Common Shareholders of
PEMBROKE,
For 2020, the Company reported net income available to
Fourth Quarter of 2020 Summary
- Net negative impact on net income available to
RenaissanceRe common shareholders of$166.1 million resulting from the Q4 2020 Weather-Related Large Losses (as defined in the table below) and$172.7 million from losses related to the COVID-19 pandemic. - Gross premiums written increased
$30.0 million , or 3.3%, to$935.5 million , in the fourth quarter of 2020 compared to the fourth quarter of 2019, driven by an increase of$63.3 million in the Property segment, partially offset by a decrease of$33.3 million in the Casualty and Specialty segment. - Underwriting loss of
$151.7 million and a combined ratio of 114.7% in the fourth quarter of 2020, compared to an underwriting loss of$65.2 million and a combined ratio of 106.7% in the fourth quarter of 2019. The Property segment incurred an underwriting loss of$130.0 million and had a combined ratio of 125.6% in the fourth quarter of 2020. The Casualty and Specialty segment incurred an underwriting loss of$21.4 million and had a combined ratio of 104.1% in the fourth quarter of 2020. The Company’s underwriting result in the fourth quarter of 2020 was principally impacted by the Q4 2020 Weather-Related Large Losses and the COVID-19 losses, both of which were primarily in the Property segment. The Q4 2020 Weather-Related Large Losses resulted in a net negative impact on the underwriting result of$239.8 million and added 23.4 percentage points to the combined ratio. The COVID-19 losses resulted in a net negative impact on the underwriting result of$237.2 million and added 23.2 percentage points to the combined ratio.
Partially offsetting the impact of the Q4 2020 Weather-Related Large Losses and COVID-19 losses was favorable development on prior accident years of$128.4 million , primarily related to large loss events in 2019, 2018 and 2017, as well as favorable movements in other assumed losses and ceded recoveries. The favorable development on prior accident years reduced the combined ratio by 12.5 percentage points and was principally in the Property segment.
In comparison, the Company’s underwriting results in the fourth quarter of 2019 were principally impacted by Typhoon Hagibis and losses associated with aggregate loss contracts in 2019 (the “2019 Aggregate Losses”), which together had a net negative impact on the underwriting result of$237.0 million and added 25.0 percentage points to the combined ratio. - Total investment result was a gain of
$340.5 million in the fourth quarter of 2020, generating an annualized total investment return of 6.6%, compared to$130.6 million and an annualized total investment return of 3.1% in the fourth quarter of 2019.
Net Negative Impact
Net negative impact includes the sum of estimates of net claims and claim expenses incurred, earned reinstatement premiums assumed and ceded, earned and lost profit commissions and redeemable noncontrolling interest. The Company’s estimates of net negative impact are based on a review of its potential exposures, preliminary discussions with certain counterparties and actuarial modeling techniques. The Company’s 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 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.
The Company continues to evaluate industry trends and its own potential exposure associated with the ongoing COVID-19 pandemic, and expects historically significant industry losses to emerge over time as the full impact of the pandemic and its effects on the global economy are realized. Among other things, the Company continues to actively monitor information received from or reported by clients, brokers, industry actuaries, regulators, courts, and others, and to assess that information in the context of its own portfolio. The Company’s loss estimates represent its best estimate of incurred losses based on currently available information, and actual losses may vary materially from these estimates.
Weather-Related Large Loss Events
The financial data in the table below provides additional information detailing the net negative impact of the Q4 2020 Weather-Related Large Losses on the Company’s consolidated financial statements in the fourth quarter of 2020.
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Three months ended |
Hurricane |
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Hurricane |
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Other Q4 2020 |
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Change in |
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Aggregate |
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Total Q4 2020 |
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(in thousands) |
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||||||||||||
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Net claims and claims expenses incurred |
$ |
(48,556) |
|
|
$ |
(43,996) |
|
|
$ |
(36,842) |
|
|
$ |
(108,125) |
|
|
$ |
(27,194) |
|
|
$ |
(264,713) |
|
|
|
Assumed reinstatement premiums earned |
4,935 |
|
|
1,464 |
|
|
(76) |
|
|
19,691 |
|
|
(259) |
|
|
25,755 |
|
|
||||||
|
Ceded reinstatement premiums earned |
(113) |
|
|
(651) |
|
|
(914) |
|
|
(3,449) |
|
|
— |
|
|
(5,127) |
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|
||||||
|
Earned (lost) profit commissions |
731 |
|
|
882 |
|
|
1,161 |
|
|
2,549 |
|
|
(1,038) |
|
|
4,285 |
|
|
||||||
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Net negative impact on underwriting result |
(43,003) |
|
|
(42,301) |
|
|
(36,671) |
|
|
(89,334) |
|
|
(28,491) |
|
|
(239,800) |
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Redeemable noncontrolling interest |
12,058 |
|
|
14,548 |
|
|
10,205 |
|
|
23,443 |
|
|
13,454 |
|
|
73,708 |
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||||||
|
Net negative impact on net income available to |
$ |
(30,945) |
|
|
$ |
(27,753) |
|
|
$ |
(26,466) |
|
|
$ |
(65,891) |
|
|
$ |
(15,037) |
|
|
$ |
(166,092) |
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The financial data in the table below provides additional information detailing the net negative impact of the Q4 2020 Weather-Related Large Losses on the Company’s segment underwriting results and consolidated combined ratio in the fourth quarter of 2020.
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Three months ended |
Hurricane |
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Hurricane |
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Other Q4 2020 |
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Change in |
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Aggregate |
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Total Q4 2020 |
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(in thousands, except percentages) |
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Net negative impact on Property segment underwriting result |
$ |
(40,590) |
|
|
$ |
(40,889) |
|
|
$ |
(36,671) |
|
|
$ |
(86,032) |
|
|
$ |
(28,491) |
|
|
$ |
(232,673) |
|
|
|
Net negative impact on Casualty and Specialty segment underwriting result |
(2,413) |
|
|
(1,412) |
|
|
— |
|
|
(3,302) |
|
|
— |
|
|
(7,127) |
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||||||
|
Net negative impact on underwriting result |
$ |
(43,003) |
|
|
$ |
(42,301) |
|
|
$ |
(36,671) |
|
|
$ |
(89,334) |
|
|
$ |
(28,491) |
|
|
$ |
(239,800) |
|
|
|
Percentage point impact on consolidated combined ratio |
4.1 |
|
|
4.1 |
|
|
0.9 |
|
|
3.9 |
|
|
2.7 |
|
|
23.4 |
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(1) |
“Other Q4 2020 Catastrophe Events” includes Hurricane Eta and wildfires on the |
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(2) |
An initial estimate of the net negative impact of Hurricane Laura, Hurricane Sally, the third quarter 2020 wildfires in |
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(3) |
“Aggregate Losses” includes loss estimates associated with aggregate loss contracts triggered during 2020, primarily as a result of losses associated with Hurricanes Zeta, Delta and Eta, and from the Q3 2020 Weather-Related Catastrophe Events. |
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(4) |
“Q4 2020 Weather-Related Large Losses” includes Hurricanes Zeta and Delta, the Other Q4 2020 Catastrophe Events, changes in estimates of the Q3 2020 Weather-Related Catastrophe Events and the aggregate losses in the fourth quarter of 2020 described in footnote (3). |
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COVID-19 Losses
In the fourth quarter of 2020, losses related to the COVID-19 pandemic resulted in a net negative impact on net income available to
Underwriting Results by Segment
Property Segment
Gross premiums written in the Property segment were
Gross premiums written in the catastrophe class of business were
Gross premiums written in the other property class of business were
Ceded premiums written in the Property segment were
The Property segment incurred an underwriting loss of
The Property segment underwriting result and combined ratio in the fourth quarter of 2020 were principally impacted by the Q4 2020 Weather-Related Large Losses, which resulted in a net negative impact on underwriting result of
In comparison, the fourth quarter of 2019 was impacted by Typhoon Hagibis and the 2019 Aggregate Losses, which resulted in a net negative impact on the Property segment underwriting result of
Casualty and Specialty Segment
Gross premiums written in the Casualty and Specialty segment were
The Casualty and Specialty segment incurred an underwriting loss of
The increase in the net claims and claim expense ratio of 2.7 percentage points was principally the result of higher current accident year losses in the fourth quarter of 2020 compared to the fourth quarter of 2019. The net claims and claim expense ratio was impacted by net losses related to the COVID-19 pandemic. The underwriting expense ratio in the Casualty and Specialty segment increased 5.5 percentage points, to 34.1%, in the fourth quarter of 2020 compared to the fourth quarter of 2019, driven by a higher acquisition ratio, partly offset by a lower operating expense ratio. The increase in the acquisition ratio was principally due to changes in estimated commission expense and the effects of purchase accounting amortization in the fourth quarter of 2019 related to the acquisition of TMR which decreased the acquisition ratio in the prior year period. The decrease in the operating expense ratio was primarily due to lower compensation expenses in the fourth quarter of 2020.
Other Items
- The Company’s total investment result, which includes the sum of net investment income and net realized and unrealized gains on investments, was a gain of
$340.5 million in the fourth quarter of 2020, compared to a gain of$130.6 million in the fourth quarter of 2019, an increase of$209.9 million . The primary driver of the total investment result in the fourth quarter of 2020 was net realized and unrealized gains on investments of$258.7 million , principally within fixed maturity and equity investments trading, including significant gains from the Company’s strategic investment portfolio. - Net loss attributable to redeemable noncontrolling interests in the fourth quarter of 2020 was
$5.5 million , compared to$2.6 million in the fourth quarter of 2019. The increase was primarily driven by underwriting losses inDaVinciRe Holdings Ltd. , partially offset by an increase in the net income ofRenaissanceRe Medici Fund Ltd. (“Medici”) compared to the fourth quarter of 2019. - In the fourth quarter of 2020, total fee income increased
$22.7 million , to$35.9 million , compared to$13.2 million in the fourth quarter of 2019, primarily driven by an increase in performance fee income due to favorable prior year reserve development which benefited certain of the Company’s managed funds and structured reinsurance products. - Income tax benefit was
$9.9 million in the fourth quarter of 2020 compared to$3.5 million in the fourth quarter of 2019. The income tax benefit was principally driven by lower underwriting performance, partially offset by investment gains, primarily in theU.S. -based operations. - Net foreign exchange gains of
$23.3 million in the fourth quarter of 2020 compared to net foreign exchange losses of$1.1 million in the fourth quarter of 2019. The net foreign exchange gains were primarily driven by gains attributable to third-party investors in Medici, miscellaneous foreign exchange gains generated by the Company’s underwriting activities, and foreign exchange gains attributable to the Company’s operations with non-U.S. dollar functional currencies. - Effective
January 1, 2021 , the Company raised over$730 million of capital through Upsilon RFO, DaVinci and Medici, including$131 million from the Company. In addition, the Company entered into secondary transactions with third-party investors resulting in a net purchase of an additional$117 million of DaVinci shares. Following these transactions, the Company’s ownership in Upsilon RFO, DaVinci and Medici was 12.4%, 28.7% and 15.4%, respectively.
FULL YEAR 2020 SUMMARY
- Net negative impact on net income available to
RenaissanceRe common shareholders of$493.6 million resulting from the 2020 Weather-Related Large Loss Events (as defined in the table below) and$286.6 million resulting from losses related to the COVID-19 pandemic. - Gross premiums written increased
$1.0 billion , or 20.8%, to$5.8 billion , in 2020, compared to 2019, driven by increases of$568.2 million in the Property segment and$430.3 million in the Casualty and Specialty segment. - Underwriting loss of
$76.5 million and a combined ratio of 101.9% in 2020, compared to underwriting income of$256.4 million and a combined ratio of 92.3% in 2019. The Property segment generated underwriting income of$11.2 million and had a combined ratio of 99.4% in 2020. The Casualty and Specialty segment incurred an underwriting loss of$87.5 million and had a combined ratio of 104.3% in 2020. The Company’s underwriting result in 2020 was principally impacted by the 2020 Weather-Related Large Loss Events and the COVID-19 losses. The 2020 Weather-Related Large Loss Events resulted in a net negative impact on the underwriting result of$668.5 million and added 17.2 percentage points to the combined ratio, primarily in the Property segment. The COVID-19 losses, which impacted both the Property and Casualty and Specialty segments, resulted in a net negative impact on the underwriting result of$351.9 million and added 8.9 percentage points to the combined ratio.
Partially offsetting the impact of the 2020 Weather-Related Large Loss Events and COVID-19 losses was favorable development on prior accident years of$183.8 million , primarily related to large loss events in 2019, 2018 and 2017, as well as favorable movements in other assumed losses and ceded recoveries. This favorable development reduced the combined ratio by 4.6 percentage points and was principally in the Property segment.
In comparison, the Company’s underwriting result in 2019 was principally impacted by Typhoon Hagibis, the Q3 2019 Catastrophe Events and the 2019 Aggregate Losses (collectively, the “2019 Large Loss Events”), which had a net negative impact on the Company’s underwriting result of$418.9 million and added 12.9 percentage points to the combined ratio, principally in the Property segment. - Total investment result was a gain of
$1.2 billion in 2020, generating an annualized total investment return of 5.9%. The Company’s portfolio of fixed maturity and short term investments had a yield to maturity of 0.9% atDecember 31, 2020 , contributing$354.0 million of net investment income included in the total$1.2 billion investment result in 2020. - On
June 5, 2020 , the Company issued 6,325,000 of its common shares in an underwritten public offering at a public offering price of$166.00 per share. Concurrently with the public offering, the Company raised$75.0 million through the issuance of 451,807 of its common shares at a price of$166.00 per share toState Farm Mutual Automobile Insurance Company , one of the Company’s existing stockholders, in a private placement. The total net proceeds from the offerings were$1.1 billion . - Over
$1.0 billion of capital raised in 2020 through the Company’s managed joint ventures and third-party capital vehicles, Upsilon RFO, Medici, Vermeer and DaVinciRe, including$138.1 million from the Company.
Net Negative Impact
Weather-Related Large Loss Events
The financial data in the table below provides additional information detailing the net negative impact of the 2020 Weather-Related Large Loss Events on the Company’s consolidated financial statements in 2020.
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Year ended |
Q3 2020 |
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Q4 2020 |
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2020 |
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Total 2020 |
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(in thousands) |
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||||||||
|
Net claims and claims expenses incurred |
$ |
(456,425) |
|
|
$ |
(129,394) |
|
|
$ |
(153,757) |
|
|
$ |
(739,576) |
|
|
|
Assumed reinstatement premiums earned |
68,094 |
|
|
6,323 |
|
|
4,997 |
|
|
79,414 |
|
|
||||
|
Ceded reinstatement premiums earned |
(4,019) |
|
|
(1,678) |
|
|
— |
|
|
(5,697) |
|
|
||||
|
Earned (lost) profit commissions |
837 |
|
|
2,774 |
|
|
(6,270) |
|
|
(2,659) |
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|
||||
|
Net negative impact on underwriting result |
(391,513) |
|
|
(121,975) |
|
|
(155,030) |
|
|
(668,518) |
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Redeemable noncontrolling interest |
92,823 |
|
|
36,811 |
|
|
45,270 |
|
|
174,904 |
|
|
||||
|
Net negative impact on net income available to |
$ |
(298,690) |
|
|
$ |
(85,164) |
|
|
$ |
(109,760) |
|
|
$ |
(493,614) |
|
|
|
|
|
|
|
|
|
|
|
|
The financial data in the table below provides additional information detailing the net negative impact of the 2020 Weather-Related Large Loss Events on the Company’s segment underwriting results and consolidated combined ratio in 2020.
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Year ended |
Q3 2020 |
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Q4 2020 |
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2020 |
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Total 2020 |
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|
(in thousands, except percentages) |
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||||||||
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Net negative impact on Property segment underwriting result |
$ |
(378,674) |
|
|
$ |
(118,150) |
|
|
$ |
(155,030) |
|
|
$ |
(651,854) |
|
|
|
Net negative impact on Casualty and Specialty segment underwriting result |
(12,839) |
|
|
(3,825) |
|
|
— |
|
|
(16,664) |
|
|
||||
|
Net negative impact on underwriting result |
$ |
(391,513) |
|
|
$ |
(121,975) |
|
|
$ |
(155,030) |
|
|
$ |
(668,518) |
|
|
|
Percentage point impact on consolidated combined ratio |
10.0 |
|
|
3.1 |
|
|
3.9 |
|
|
17.2 |
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(1) |
“Q4 2020 Weather-Related Catastrophe Events” includes Hurricanes Zeta, Delta, and the Other Q4 2020 Catastrophe Events. |
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(2) |
“2020 Aggregate Losses” includes loss estimates associated with aggregate loss contracts triggered during 2020 primarily as a result of losses associated with the Q3 2020 Weather-Related Catastrophe Events and Q4 2020 Weather-Related Catastrophe Events. |
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(3) |
“2020 Weather-Related Large Loss Events” includes the Q3 2020 Weather-Related Catastrophe Events, Q4 2020 Weather-Related Catastrophe Events and the aggregate losses in 2020 described in footnote (2). |
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COVID-19 Losses
In 2020, COVID-19 losses resulted in a net negative impact on net income available to
Underwriting Results by Segment
Property Segment
In 2020, gross premiums written in the Property segment increased
Gross premiums written in the catastrophe class of business were
Gross premiums written in the other property class of business were
Ceded premiums written in the Property segment were
The Property segment generated underwriting income of
The Property segment underwriting result and combined ratio in 2020 were principally impacted by the 2020 Weather-Related Large Loss Events, which resulted in a net negative impact on underwriting result of
Casualty and Specialty Segment
In 2020, gross premiums written in the Casualty and Specialty segment increased
Ceded premiums written in the Casualty and Specialty segment were
The Company’s Casualty and Specialty segment incurred an underwriting loss of
The increase in the Company’s Casualty and Specialty segment’s combined ratio was driven by an increase in the net claims and claim expense ratio. The increase in the Casualty and Specialty segment net claims and claim expense ratio was principally due to the COVID-19 losses, which contributed 6.1 percentage points to the 7.7 percentage point increase in the net claims and claim expense ratio in 2020, compared to 2019. The underwriting expense ratio in the Casualty and Specialty segment decreased 0.7 percentage points, to 30.5%, in 2020, compared to 31.2% in 2019, due to a decrease in the operating expense ratio principally as a result of improved operating leverage.
Other Items
- Net income attributable to redeemable noncontrolling interests in 2020 was
$230.7 million , compared to$201.5 million in 2019, an increase of$29.2 million , due to improved performance from Medici and Vermeer, partially offset by lower underlying performance in DaVinci which was negatively impacted by the 2020 Weather-Related Large Loss Events and the COVID-19 losses. - In 2020, total fee income increased by
$31.0 million , to$145.2 million , compared to$114.2 million in 2019, primarily driven by an increase in performance fee income due to favorable prior year reserve development which benefited certain of the Company’s managed funds, and an increase in management fee income due to an increase in the dollar value of third-party capital managed by the Company. - The Company’s total investment result, which includes the sum of net investment income and net realized and unrealized gains and losses on investments, was
$1.2 billion in 2020, compared to$838.3 million in 2019, an increase of$336.4 million . The increase was primarily driven by net realized and unrealized gains on investments of$820.6 million in 2020, compared to$414.1 million in 2019. The net realized and unrealized gains on investments in 2020 were driven by net realized and unrealized gains on fixed maturity investments and equity investments trading, including gains from the strategic investment portfolio. Also driving the investment result for 2020 were higher average invested assets primarily resulting from capital raised during 2020 through the Company’s common share offerings, described above, and through the Company’s managed joint ventures and third-party capital vehicles, Upsilon RFO, Medici, Vermeer and DaVinciRe, and the subsequent investment of those funds as part of the Company’s consolidated investment portfolio. - Net foreign exchange gains of
$27.8 million in 2020 compared to net foreign exchange losses of$2.9 million in 2019. The net foreign exchange gains were primarily driven by gains attributable to third-party investors in Medici, miscellaneous foreign exchange gains generated by the Company’s underwriting activities, and foreign exchange gains attributable to the Company’s operations with non-U.S. dollar functional currencies. - Income tax expense was
$2.9 million in 2020 compared to$17.2 million in 2019. The reduction in income tax expense was principally driven by lower underwriting performance, partially offset by investment gains, primarily in theU.S. based operations. - Corporate expenses increased
$2.8 million to$97.0 million , in 2020 compared to$94.1 million in 2019. Corporate expenses for 2020 included a$30.2 million loss on the sale of RenaissanceReUK , including related transaction and other expenses, and certain expenses associated with senior management departures during the year. In comparison, corporate expenses in 2019 included$49.7 million of corporate expenses associated with the acquisition of TMR. - In 2020, the Company repurchased 406 thousand common shares in open market transactions at an aggregate cost of
$62.6 million and an average price of$154.36 per common share. All such share repurchases occurred during the first quarter of 2020. - In
February 2020 , the Company announced the redemption of all 5 million of its outstanding Series C 6.08% Preference Shares. The Series C 6.08% Preference Shares were redeemed onMarch 26, 2020 for$125.0 million plus accrued and unpaid dividends thereon. - On
March 15, 2020 , the Company repaid in full at maturity the aggregate principal amount of$250.0 million , plus applicable accrued interest, of its 5.75% Senior Notes due 2020 ofRenRe North America Holdings Inc. andRenaissanceRe Finance .
This Press Release includes certain financial measures that are not calculated in accordance with generally accepted accounting principles in the
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.
About
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 uncertainty of the continuing impact of the COVID-19 pandemic and measures taken in response thereto; the effect of legislative, regulatory, judicial or social influences related to the COVID-19 pandemic on the Company’s financial performance, including the emergence of unexpected or un-modeled insurance or reinsurance losses, and the Company’s ability to conduct its business; the impact and potential future impacts of the COVID-19 pandemic on the value of the Company’s investments and its access to capital in the future or the pricing or terms of available financing; the effect that measures taken to mitigate the COVID-19 pandemic have on the Company’s operations and those of its counterparties; the frequency and severity of catastrophic and other events the Company covers; the effectiveness of the Company’s claims and claim expense reserving process; the effect of climate change on the Company’s business, including the trend towards increasingly frequent and severe climate events; the Company’s ability to maintain its financial strength ratings; the effect of emerging claims and coverage issues; collection on claimed retrocessional coverage, and new retrocessional reinsurance being available on acceptable terms and providing the coverage that the Company intended to obtain; the Company’s reliance on a small and decreasing number of reinsurance brokers and other distribution services for the preponderance of its revenue; the Company’s exposure to credit loss from counterparties in the normal course of business; the effect of continued challenging economic conditions throughout the world; the performance of the Company’s investment portfolio; a contention by the
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Summary Consolidated Statements of Operations |
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(in thousands of United States Dollars, except per share amounts and percentages) |
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(Unaudited) |
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Three months ended |
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Twelve months ended |
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Revenues |
|
|
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|
||||||||
Gross premiums written |
$ |
935,514 |
|
|
$ |
905,479 |
|
|
$ |
5,806,165 |
|
|
$ |
4,807,750 |
|
Net premiums written |
$ |
746,311 |
|
|
$ |
725,367 |
|
|
$ |
4,096,333 |
|
|
$ |
3,381,493 |
|
Decrease (increase) in unearned premiums |
282,774 |
|
|
244,758 |
|
|
(143,871) |
|
|
(43,090) |
|
||||
Net premiums earned |
1,029,085 |
|
|
970,125 |
|
|
3,952,462 |
|
|
3,338,403 |
|
||||
Net investment income |
81,717 |
|
|
112,138 |
|
|
354,038 |
|
|
424,207 |
|
||||
Net foreign exchange gains (losses) |
23,270 |
|
|
(1,126) |
|
|
27,773 |
|
|
(2,938) |
|
||||
Equity in (losses) earnings of other ventures |
(1,868) |
|
|
5,874 |
|
|
17,194 |
|
|
23,224 |
|
||||
Other income (loss) |
4,374 |
|
|
(160) |
|
|
213 |
|
|
4,949 |
|
||||
Net realized and unrealized gains on investments |
258,745 |
|
|
18,454 |
|
|
820,636 |
|
|
414,109 |
|
||||
Total revenues |
1,395,323 |
|
|
1,105,306 |
|
|
5,172,316 |
|
|
4,201,955 |
|
||||
Expenses |
|
|
|
|
|
|
|
||||||||
Net claims and claim expenses incurred |
901,353 |
|
|
762,093 |
|
|
2,924,609 |
|
|
2,097,021 |
|
||||
Acquisition expenses |
238,283 |
|
|
208,618 |
|
|
897,677 |
|
|
762,232 |
|
||||
Operational expenses |
41,104 |
|
|
64,571 |
|
|
206,687 |
|
|
222,733 |
|
||||
Corporate expenses |
21,031 |
|
|
17,642 |
|
|
96,970 |
|
|
94,122 |
|
||||
Interest expense |
11,841 |
|
|
15,496 |
|
|
50,453 |
|
|
58,364 |
|
||||
Total expenses |
1,213,612 |
|
|
1,068,420 |
|
|
4,176,396 |
|
|
3,234,472 |
|
||||
Income before taxes |
181,711 |
|
|
36,885 |
|
|
995,920 |
|
|
967,482 |
|
||||
Income tax benefit (expense) |
9,923 |
|
|
3,455 |
|
|
(2,862) |
|
|
(17,215) |
|
||||
Net income |
191,634 |
|
|
40,340 |
|
|
993,058 |
|
|
950,267 |
|
||||
Net loss (income) attributable to noncontrolling interests |
5,467 |
|
|
2,622 |
|
|
(230,653) |
|
|
(201,469) |
|
||||
Net income attributable to |
197,101 |
|
|
42,962 |
|
|
762,405 |
|
|
748,798 |
|
||||
Dividends on preference shares |
(7,289) |
|
|
(9,189) |
|
|
(30,923) |
|
|
(36,756) |
|
||||
Net income available to |
$ |
189,812 |
|
|
$ |
33,773 |
|
|
$ |
731,482 |
|
|
$ |
712,042 |
|
|
|
|
|
|
|
|
|
||||||||
Net income available to |
$ |
3.75 |
|
|
$ |
0.77 |
|
|
$ |
15.34 |
|
|
$ |
16.32 |
|
Net income available to |
$ |
3.74 |
|
|
$ |
0.77 |
|
|
$ |
15.31 |
|
|
$ |
16.29 |
|
Operating (loss) income (attributable) available to |
$ |
(1.59) |
|
|
$ |
0.28 |
|
|
$ |
0.12 |
|
|
$ |
9.01 |
|
|
|
|
|
|
|
|
|
||||||||
Average shares outstanding - basic |
50,022 |
|
|
43,467 |
|
|
47,103 |
|
|
43,119 |
|
||||
Average shares outstanding - diluted |
50,111 |
|
|
43,552 |
|
|
47,178 |
|
|
43,175 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Net claims and claim expense ratio |
87.6 |
% |
|
78.6 |
% |
|
74.0 |
% |
|
62.8 |
% |
||||
Underwriting expense ratio |
27.1 |
% |
|
28.1 |
% |
|
27.9 |
% |
|
29.5 |
% |
||||
Combined ratio |
114.7 |
% |
|
106.7 |
% |
|
101.9 |
% |
|
92.3 |
% |
||||
|
|
|
|
|
|
|
|
||||||||
Return on average common equity - annualized |
10.9 |
% |
|
2.5 |
% |
|
11.7 |
% |
|
14.1 |
% |
||||
Operating return on average common equity - annualized (1) |
(4.4) |
% |
|
0.9 |
% |
|
0.2 |
% |
|
7.9 |
% |
(1) See Comments on Regulation G for a reconciliation of non-GAAP financial measures.
|
|||||||
Summary Consolidated Balance Sheets |
|||||||
(in thousands of United States Dollars, except per share amounts) |
|||||||
|
|
|
|
||||
|
|
|
|
||||
Assets |
(Unaudited) |
|
(Audited) |
||||
Fixed maturity investments trading, at fair value |
$ |
13,506,503 |
|
|
$ |
11,171,655 |
|
Short term investments, at fair value |
4,993,735 |
|
|
4,566,277 |
|
||
Equity investments trading, at fair value |
702,617 |
|
|
436,931 |
|
||
Other investments, at fair value |
1,256,948 |
|
|
1,087,377 |
|
||
Investments in other ventures, under equity method |
98,373 |
|
|
106,549 |
|
||
Total investments |
20,558,176 |
|
|
17,368,789 |
|
||
Cash and cash equivalents |
1,736,813 |
|
|
1,379,068 |
|
||
Premiums receivable |
2,894,631 |
|
|
2,599,896 |
|
||
Prepaid reinsurance premiums |
823,582 |
|
|
767,781 |
|
||
Reinsurance recoverable |
2,926,010 |
|
|
2,791,297 |
|
||
Accrued investment income |
66,743 |
|
|
72,461 |
|
||
Deferred acquisition costs and value of business acquired |
633,521 |
|
|
663,991 |
|
||
Receivable for investments sold |
568,293 |
|
|
78,369 |
|
||
Other assets |
363,170 |
|
|
346,216 |
|
||
|
249,641 |
|
|
262,226 |
|
||
Total assets |
$ |
30,820,580 |
|
|
$ |
26,330,094 |
|
Liabilities, Noncontrolling Interests and Shareholders’ Equity |
|
|
|
||||
Liabilities |
|
|
|
||||
Reserve for claims and claim expenses |
$ |
10,381,138 |
|
|
$ |
9,384,349 |
|
Unearned premiums |
2,763,599 |
|
|
2,530,975 |
|
||
Debt |
1,136,265 |
|
|
1,384,105 |
|
||
Reinsurance balances payable |
3,488,352 |
|
|
2,830,691 |
|
||
Payable for investments purchased |
1,132,538 |
|
|
225,275 |
|
||
Other liabilities |
970,121 |
|
|
932,024 |
|
||
Total liabilities |
19,872,013 |
|
|
17,287,419 |
|
||
Redeemable noncontrolling interest |
3,388,319 |
|
|
3,071,308 |
|
||
Shareholders’ Equity |
|
|
|
||||
Preference shares |
525,000 |
|
|
650,000 |
|
||
Common shares |
50,811 |
|
|
44,148 |
|
||
Additional paid-in capital |
1,623,206 |
|
|
568,277 |
|
||
Accumulated other comprehensive loss |
(12,642) |
|
|
(1,939) |
|
||
Retained earnings |
5,373,873 |
|
|
4,710,881 |
|
||
Total shareholders’ equity attributable to |
7,560,248 |
|
|
5,971,367 |
|
||
Total liabilities, noncontrolling interests and shareholders’ equity |
$ |
30,820,580 |
|
|
$ |
26,330,094 |
|
|
|
|
|
||||
Book value per common share |
$ |
138.46 |
|
|
$ |
120.53 |
|
|
|||||||||||||||
Supplemental Financial Data - Segment Information |
|||||||||||||||
(in thousands of United States Dollars, except percentages) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three months ended |
||||||||||||||
|
Property |
|
Casualty and |
|
Other |
|
Total |
||||||||
Gross premiums written |
$ |
308,315 |
|
|
$ |
627,199 |
|
|
$ |
— |
|
|
$ |
935,514 |
|
Net premiums written |
$ |
279,773 |
|
|
$ |
466,538 |
|
|
$ |
— |
|
|
$ |
746,311 |
|
Net premiums earned |
$ |
507,141 |
|
|
$ |
521,944 |
|
|
$ |
— |
|
|
$ |
1,029,085 |
|
Net claims and claim expenses incurred |
535,875 |
|
|
365,135 |
|
|
343 |
|
|
901,353 |
|
||||
Acquisition expenses |
75,032 |
|
|
163,251 |
|
|
— |
|
|
238,283 |
|
||||
Operational expenses |
26,212 |
|
|
14,945 |
|
|
(53) |
|
|
41,104 |
|
||||
Underwriting loss |
$ |
(129,978) |
|
|
$ |
(21,387) |
|
|
$ |
(290) |
|
|
(151,655) |
|
|
Net investment income |
|
|
|
|
81,717 |
|
|
81,717 |
|
||||||
Net foreign exchange gains |
|
|
|
|
23,270 |
|
|
23,270 |
|
||||||
Equity in losses of other ventures |
|
|
|
|
(1,868) |
|
|
(1,868) |
|
||||||
Other income |
|
|
|
|
4,374 |
|
|
4,374 |
|
||||||
Net realized and unrealized gains on investments |
|
|
|
|
258,745 |
|
|
258,745 |
|
||||||
Corporate expenses |
|
|
|
|
(21,031) |
|
|
(21,031) |
|
||||||
Interest expense |
|
|
|
|
(11,841) |
|
|
(11,841) |
|
||||||
Income before taxes and redeemable noncontrolling interests |
|
|
|
|
|
|
181,711 |
|
|||||||
Income tax benefit |
|
|
|
|
9,923 |
|
|
9,923 |
|
||||||
Net loss attributable to redeemable noncontrolling interests |
|
|
|
|
5,467 |
|
|
5,467 |
|
||||||
Dividends on preference shares |
|
|
|
|
(7,289) |
|
|
(7,289) |
|
||||||
Net income available to |
|
|
|
|
|
|
$ |
189,812 |
|
||||||
|
|
|
|
|
|
|
|
||||||||
Net claims and claim expenses incurred – current accident year |
$ |
661,711 |
|
|
$ |
368,071 |
|
|
$ |
— |
|
|
$ |
1,029,782 |
|
Net claims and claim expenses incurred – prior accident years |
(125,836) |
|
|
(2,936) |
|
|
343 |
|
|
(128,429) |
|
||||
Net claims and claim expenses incurred – total |
$ |
535,875 |
|
|
$ |
365,135 |
|
|
$ |
343 |
|
|
$ |
901,353 |
|
|
|
|
|
|
|
|
|
||||||||
Net claims and claim expense ratio – current accident year |
130.5 |
% |
|
70.5 |
% |
|
|
|
100.1 |
% |
|||||
Net claims and claim expense ratio – prior accident years |
(24.8) |
% |
|
(0.5) |
% |
|
|
|
(12.5) |
% |
|||||
Net claims and claim expense ratio – calendar year |
105.7 |
% |
|
70.0 |
% |
|
|
|
87.6 |
% |
|||||
Underwriting expense ratio |
19.9 |
% |
|
34.1 |
% |
|
|
|
27.1 |
% |
|||||
Combined ratio |
125.6 |
% |
|
104.1 |
% |
|
|
|
114.7 |
% |
|||||
|
|
|
|
|
|
|
|
||||||||
|
Three months ended |
||||||||||||||
|
Property |
|
Casualty and |
|
Other |
|
Total |
||||||||
Gross premiums written |
$ |
245,001 |
|
|
$ |
660,478 |
|
|
$ |
— |
|
|
$ |
905,479 |
|
Net premiums written |
$ |
242,932 |
|
|
$ |
482,435 |
|
|
$ |
— |
|
|
$ |
725,367 |
|
Net premiums earned |
$ |
467,404 |
|
|
$ |
502,721 |
|
|
$ |
— |
|
|
$ |
970,125 |
|
Net claims and claim expenses incurred |
424,207 |
|
|
338,104 |
|
|
(218) |
|
|
762,093 |
|
||||
Acquisition expenses |
90,790 |
|
|
117,849 |
|
|
(21) |
|
|
208,618 |
|
||||
Operational expenses |
39,469 |
|
|
25,943 |
|
|
(841) |
|
|
64,571 |
|
||||
Underwriting (loss) income |
$ |
(87,062) |
|
|
$ |
20,825 |
|
|
$ |
1,080 |
|
|
(65,157) |
|
|
Net investment income |
|
|
|
|
112,139 |
|
|
112,139 |
|
||||||
Net foreign exchange losses |
|
|
|
|
(1,126) |
|
|
(1,126) |
|
||||||
Equity in earnings of other ventures |
|
|
|
|
5,874 |
|
|
5,874 |
|
||||||
Other loss |
|
|
|
|
(160) |
|
|
(160) |
|
||||||
Net realized and unrealized gains on investments |
|
|
|
|
18,454 |
|
|
18,454 |
|
||||||
Corporate expenses |
|
|
|
|
(17,642) |
|
|
(17,642) |
|
||||||
Interest expense |
|
|
|
|
(15,496) |
|
|
(15,496) |
|
||||||
Income before taxes and redeemable noncontrolling interests |
|
|
|
|
|
|
36,885 |
|
|||||||
Income tax benefit |
|
|
|
|
3,455 |
|
|
3,455 |
|
||||||
Net loss attributable to redeemable noncontrolling interests |
|
|
|
|
2,622 |
|
|
2,622 |
|
||||||
Dividends on preference shares |
|
|
|
|
(9,189) |
|
|
(9,189) |
|
||||||
Net income available to |
|
|
|
|
|
|
$ |
33,773 |
|
||||||
|
|
|
|
|
|
|
|
||||||||
Net claims and claim expenses incurred – current accident year |
$ |
432,160 |
|
|
$ |
342,268 |
|
|
$ |
— |
|
|
$ |
774,428 |
|
Net claims and claim expenses incurred – prior accident years |
(7,953) |
|
|
(4,164) |
|
|
(218) |
|
|
(12,335) |
|
||||
Net claims and claim expenses incurred – total |
$ |
424,207 |
|
|
$ |
338,104 |
|
|
$ |
(218) |
|
|
$ |
762,093 |
|
|
|
|
|
|
|
|
|
||||||||
Net claims and claim expense ratio – current accident year |
92.5 |
% |
|
68.1 |
% |
|
|
|
79.8 |
% |
|||||
Net claims and claim expense ratio – prior accident years |
(1.7) |
% |
|
(0.8) |
% |
|
|
|
(1.2) |
% |
|||||
Net claims and claim expense ratio – calendar year |
90.8 |
% |
|
67.3 |
% |
|
|
|
78.6 |
% |
|||||
Underwriting expense ratio |
27.8 |
% |
|
28.6 |
% |
|
|
|
28.1 |
% |
|||||
Combined ratio |
118.6 |
% |
|
95.9 |
% |
|
|
|
106.7 |
% |
|
|||||||||||||||
Supplemental Financial Data - Segment Information |
|||||||||||||||
(in thousands of United States Dollars, except percentages) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Year ended |
||||||||||||||
|
Property |
|
Casualty and |
|
Other |
|
Total |
||||||||
Gross premiums written |
$ |
2,999,142 |
|
|
$ |
2,807,023 |
|
|
$ |
— |
|
|
$ |
5,806,165 |
|
Net premiums written |
$ |
2,037,200 |
|
|
$ |
2,059,133 |
|
|
$ |
— |
|
|
$ |
4,096,333 |
|
Net premiums earned |
$ |
1,936,215 |
|
|
$ |
2,016,247 |
|
|
$ |
— |
|
|
$ |
3,952,462 |
|
Net claims and claim expenses incurred |
1,435,735 |
|
|
1,488,662 |
|
|
212 |
|
|
2,924,609 |
|
||||
Acquisition expenses |
353,700 |
|
|
543,977 |
|
|
— |
|
|
897,677 |
|
||||
Operational expenses |
135,547 |
|
|
71,140 |
|
|
— |
|
|
206,687 |
|
||||
Underwriting income (loss) |
$ |
11,233 |
|
|
$ |
(87,532) |
|
|
$ |
(212) |
|
|
(76,511) |
|
|
Net investment income |
|
|
|
|
354,038 |
|
|
354,038 |
|
||||||
Net foreign exchange gains |
|
|
|
|
27,773 |
|
|
27,773 |
|
||||||
Equity in earnings of other ventures |
|
|
|
|
17,194 |
|
|
17,194 |
|
||||||
Other income |
|
|
|
|
213 |
|
|
213 |
|
||||||
Net realized and unrealized gains on investments |
|
|
|
|
820,636 |
|
|
820,636 |
|
||||||
Corporate expenses |
|
|
|
|
(96,970) |
|
|
(96,970) |
|
||||||
Interest expense |
|
|
|
|
(50,453) |
|
|
(50,453) |
|
||||||
Income before taxes and redeemable noncontrolling interests |
|
|
|
|
|
|
995,920 |
|
|||||||
Income tax expense |
|
|
|
|
(2,862) |
|
|
(2,862) |
|
||||||
Net income attributable to redeemable noncontrolling interests |
|
|
|
|
(230,653) |
|
|
(230,653) |
|
||||||
Dividends on preference shares |
|
|
|
|
(30,923) |
|
|
(30,923) |
|
||||||
Net income attributable to |
|
|
|
|
|
|
$ |
731,482 |
|
||||||
|
|
|
|
|
|
|
|
||||||||
Net claims and claim expenses incurred – current accident year |
$ |
1,592,996 |
|
|
$ |
1,515,425 |
|
|
$ |
— |
|
|
$ |
3,108,421 |
|
Net claims and claim expenses incurred – prior accident years |
(157,261) |
|
|
(26,763) |
|
|
212 |
|
|
(183,812) |
|
||||
Net claims and claim expenses incurred – total |
$ |
1,435,735 |
|
|
$ |
1,488,662 |
|
|
$ |
212 |
|
|
$ |
2,924,609 |
|
|
|
|
|
|
|
|
|
||||||||
Net claims and claim expense ratio – current accident year |
82.3 |
% |
|
75.2 |
% |
|
|
|
78.6 |
% |
|||||
Net claims and claim expense ratio – prior accident years |
(8.1) |
% |
|
(1.4) |
% |
|
|
|
(4.6) |
% |
|||||
Net claims and claim expense ratio – calendar year |
74.2 |
% |
|
73.8 |
% |
|
|
|
74.0 |
% |
|||||
Underwriting expense ratio |
25.2 |
% |
|
30.5 |
% |
|
|
|
27.9 |
% |
|||||
Combined ratio |
99.4 |
% |
|
104.3 |
% |
|
|
|
101.9 |
% |
|||||
|
|
|
|
|
|
|
|
||||||||
|
Year ended |
||||||||||||||
|
Property |
|
Casualty and |
|
Other |
|
Total |
||||||||
Gross premiums written |
$ |
2,430,985 |
|
|
$ |
2,376,765 |
|
|
$ |
— |
|
|
$ |
4,807,750 |
|
Net premiums written |
$ |
1,654,259 |
|
|
$ |
1,727,234 |
|
|
$ |
— |
|
|
$ |
3,381,493 |
|
Net premiums earned |
$ |
1,627,494 |
|
|
$ |
1,710,909 |
|
|
$ |
— |
|
|
$ |
3,338,403 |
|
Net claims and claim expenses incurred |
965,424 |
|
|
1,131,637 |
|
|
(40) |
|
|
2,097,021 |
|
||||
Acquisition expenses |
313,761 |
|
|
448,678 |
|
|
(207) |
|
|
762,232 |
|
||||
Operational expenses |
139,015 |
|
|
84,546 |
|
|
(828) |
|
|
222,733 |
|
||||
Underwriting income |
$ |
209,294 |
|
|
$ |
46,048 |
|
|
$ |
1,075 |
|
|
256,417 |
|
|
Net investment income |
|
|
|
|
424,207 |
|
|
424,207 |
|
||||||
Net foreign exchange losses |
|
|
|
|
(2,938) |
|
|
(2,938) |
|
||||||
Equity in earnings of other ventures |
|
|
|
|
23,224 |
|
|
23,224 |
|
||||||
Other income |
|
|
|
|
4,949 |
|
|
4,949 |
|
||||||
Net realized and unrealized gains on investments |
|
|
|
|
414,109 |
|
|
414,109 |
|
||||||
Corporate expenses |
|
|
|
|
(94,122) |
|
|
(94,122) |
|
||||||
Interest expense |
|
|
|
|
(58,364) |
|
|
(58,364) |
|
||||||
Income before taxes and redeemable noncontrolling interests |
|
|
|
|
|
|
967,482 |
|
|||||||
Income tax expense |
|
|
|
|
(17,215) |
|
|
(17,215) |
|
||||||
Net income attributable to redeemable noncontrolling interests |
|
|
|
|
(201,469) |
|
|
(201,469) |
|
||||||
Dividends on preference shares |
|
|
|
|
(36,756) |
|
|
(36,756) |
|
||||||
Net income available to |
|
|
|
|
|
|
$ |
712,042 |
|
||||||
|
|
|
|
|
|
|
|
||||||||
Net claims and claim expenses incurred – current accident year |
$ |
968,357 |
|
|
$ |
1,155,519 |
|
|
$ |
— |
|
|
$ |
2,123,876 |
|
Net claims and claim expenses incurred – prior accident years |
(2,933) |
|
|
(23,882) |
|
|
(40) |
|
|
(26,855) |
|
||||
Net claims and claim expenses incurred – total |
$ |
965,424 |
|
|
$ |
1,131,637 |
|
|
$ |
(40) |
|
|
$ |
2,097,021 |
|
|
|
|
|
|
|
|
|
||||||||
Net claims and claim expense ratio – current accident year |
59.5 |
% |
|
67.5 |
% |
|
|
|
63.6 |
% |
|||||
Net claims and claim expense ratio – prior accident years |
(0.2) |
% |
|
(1.4) |
% |
|
|
|
(0.8) |
% |
|||||
Net claims and claim expense ratio – calendar year |
59.3 |
% |
|
66.1 |
% |
|
|
|
62.8 |
% |
|||||
Underwriting expense ratio |
27.8 |
% |
|
31.2 |
% |
|
|
|
29.5 |
% |
|||||
Combined ratio |
87.1 |
% |
|
97.3 |
% |
|
|
|
92.3 |
% |
|
|||||||||||||||
Supplemental Financial Data - Gross Premiums Written |
|||||||||||||||
(in thousands of United States Dollars) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
|
|
||||||||||||
|
Three months ended |
|
Twelve months ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Property Segment |
|
|
|
|
|
|
|
||||||||
Catastrophe |
$ |
59,120 |
|
|
$ |
44,824 |
|
|
$ |
1,886,785 |
|
|
$ |
1,595,472 |
|
Other property |
249,195 |
|
|
200,177 |
|
|
1,112,357 |
|
|
835,513 |
|
||||
Property segment gross premiums written |
$ |
308,315 |
|
|
$ |
245,001 |
|
|
$ |
2,999,142 |
|
|
$ |
2,430,985 |
|
|
|
|
|
|
|
|
|
||||||||
Casualty and Specialty Segment |
|
|
|
|
|
|
|
||||||||
General casualty (1) |
$ |
190,996 |
|
|
$ |
197,338 |
|
|
$ |
904,594 |
|
|
$ |
807,901 |
|
Professional liability (2) |
207,437 |
|
|
189,838 |
|
|
836,120 |
|
|
650,750 |
|
||||
Financial lines (3) |
122,023 |
|
|
126,983 |
|
|
514,192 |
|
|
457,000 |
|
||||
Other (4) |
106,743 |
|
|
146,319 |
|
|
552,117 |
|
|
461,114 |
|
||||
Casualty and Specialty segment gross premiums written |
$ |
627,199 |
|
|
$ |
660,478 |
|
|
$ |
2,807,023 |
|
|
$ |
2,376,765 |
|
(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. |
|
|
|||||||||||||||
Supplemental Financial Data - Total Investment Result |
|||||||||||||||
(in thousands of United States Dollars, except percentages) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three months ended |
|
Twelve months ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Fixed maturity investments trading |
$ |
66,912 |
|
|
$ |
85,937 |
|
|
$ |
278,215 |
|
|
$ |
318,503 |
|
Short term investments |
1,047 |
|
|
11,552 |
|
|
20,799 |
|
|
56,264 |
|
||||
Equity investments trading |
1,628 |
|
|
1,539 |
|
|
6,404 |
|
|
4,808 |
|
||||
Other investments |
|
|
|
|
|
|
|
||||||||
Catastrophe bonds |
13,500 |
|
|
12,870 |
|
|
54,784 |
|
|
46,154 |
|
||||
Other |
4,083 |
|
|
2,221 |
|
|
9,417 |
|
|
8,447 |
|
||||
Cash and cash equivalents |
192 |
|
|
1,875 |
|
|
2,974 |
|
|
7,676 |
|
||||
|
87,362 |
|
|
115,994 |
|
|
372,593 |
|
|
441,852 |
|
||||
Investment expenses |
(5,645) |
|
|
(3,856) |
|
|
(18,555) |
|
|
(17,645) |
|
||||
Net investment income |
81,717 |
|
|
112,138 |
|
|
354,038 |
|
|
424,207 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Net realized and unrealized gains (losses) on: |
|
|
|
|
|
|
|
||||||||
Fixed maturity investments trading (1) |
90,132 |
|
|
(48,146) |
|
|
592,412 |
|
|
297,977 |
|
||||
Equity investments trading (1) |
154,306 |
|
|
66,043 |
|
|
235,552 |
|
|
116,506 |
|
||||
Other investments |
|
|
|
|
|
|
|
||||||||
Catastrophe bonds |
(9,742) |
|
|
(4,522) |
|
|
(7,031) |
|
|
(9,392) |
|
||||
Other |
24,049 |
|
|
5,079 |
|
|
(297) |
|
|
9,018 |
|
||||
Net realized and unrealized gains on investments |
258,745 |
|
|
18,454 |
|
|
820,636 |
|
|
414,109 |
|
||||
Total investment result |
$ |
340,462 |
|
|
$ |
130,592 |
|
|
$ |
1,174,674 |
|
|
$ |
838,316 |
|
|
|
|
|
|
|
|
|
||||||||
Total investment return - annualized |
6.6 |
% |
|
3.1 |
% |
|
5.9 |
% |
|
5.2 |
% |
(1) |
Net realized and unrealized gains (losses) on fixed maturity investments trading includes the impacts of interest rate futures, interest rate swaps, credit default swaps and total return swaps. Net realized and unrealized gains (losses) on equity investments trading includes the impact of equity futures. |
|
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
Operating (Loss) Income (Attributable) Available to RenaissanceRe Common Shareholders and Operating Return on Average Common Equity - Annualized
The Company uses “operating (loss) income (attributable) available to
|
Three months ended |
|
Twelve months ended |
||||||||||||
(in thousands of United States Dollars, except per share amounts and percentages) |
|
|
|
|
|
|
|
||||||||
Net income available to |
$ |
189,812 |
|
|
$ |
33,773 |
|
|
$ |
731,482 |
|
|
$ |
712,042 |
|
Adjustment for net realized and unrealized gains on investments, excluding other investments - catastrophe bonds |
(268,487) |
|
|
(22,976) |
|
|
(827,667) |
|
|
(423,501) |
|
||||
Adjustment for net foreign exchange (gains) losses |
(23,270) |
|
|
1,126 |
|
|
(27,773) |
|
|
2,938 |
|
||||
Adjustment for corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe |
7,346 |
|
|
5,700 |
|
|
47,964 |
|
|
49,725 |
|
||||
Adjustment for income tax expense (benefit) (2) |
7,723 |
|
|
(3,707) |
|
|
29,863 |
|
|
20,367 |
|
||||
Adjustment for net income (loss) attributable to redeemable noncontrolling interests (3) |
9,754 |
|
|
(1,293) |
|
|
60,771 |
|
|
36,180 |
|
||||
Operating (loss) income (attributable) available to |
$ |
(77,122) |
|
|
$ |
12,623 |
|
|
$ |
14,640 |
|
|
$ |
397,751 |
|
|
|
|
|
|
|
|
|
||||||||
Net income available to |
$ |
3.74 |
|
|
$ |
0.77 |
|
|
$ |
15.31 |
|
|
$ |
16.29 |
|
Adjustment for net realized and unrealized gains on investments, excluding other investments - catastrophe bonds |
(5.36) |
|
|
(0.53) |
|
|
(17.54) |
|
|
(9.81) |
|
||||
Adjustment for net foreign exchange (gains) losses |
(0.46) |
|
|
0.03 |
|
|
(0.59) |
|
|
0.07 |
|
||||
Adjustment for corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe |
0.15 |
|
|
0.13 |
|
|
1.02 |
|
|
1.15 |
|
||||
Adjustment for income tax expense (benefit) (2) |
0.15 |
|
|
(0.09) |
|
|
0.63 |
|
|
0.47 |
|
||||
Adjustment for net income (loss) attributable to redeemable noncontrolling interests (3) |
0.19 |
|
|
(0.03) |
|
|
1.29 |
|
|
0.84 |
|
||||
Operating (loss) income (attributable) available to |
$ |
(1.59) |
|
|
$ |
0.28 |
|
|
$ |
0.12 |
|
|
$ |
9.01 |
|
|
|
|
|
|
|
|
|
||||||||
Return on average common equity - annualized |
10.9 |
% |
|
2.5 |
% |
|
11.7 |
% |
|
14.1 |
% |
||||
Adjustment for net realized and unrealized gains on investments, excluding other investments - catastrophe bonds |
(15.4) |
% |
|
(1.7) |
% |
|
(13.4) |
% |
|
(8.4) |
% |
||||
Adjustment for net foreign exchange (gains) losses |
(1.3) |
% |
|
0.1 |
% |
|
(0.4) |
% |
|
0.1 |
% |
||||
Adjustment for corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe |
0.4 |
% |
|
0.4 |
% |
|
0.8 |
% |
|
1.0 |
% |
||||
Adjustment for income tax expense (benefit) (2) |
0.4 |
% |
|
(0.3) |
% |
|
0.5 |
% |
|
0.4 |
% |
||||
Adjustment for net income (loss) attributable to redeemable noncontrolling interests (3) |
0.6 |
% |
|
(0.1) |
% |
|
1.0 |
% |
|
0.7 |
% |
||||
Operating return on average common equity - annualized |
(4.4) |
% |
|
0.9 |
% |
|
0.2 |
% |
|
7.9 |
% |
(1) |
Included in the twelve months ended |
|
(2) |
Adjustment for income tax expense (benefit) represents the income tax (expense) benefit associated with the adjustments to net income available to |
|
(3) |
Represents the portion of these adjustments that are attributable to the Company's redeemable noncontrolling interests, including the income tax impact of those adjustments. |
|
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.”
|
|
|
|
|
|
|
|
|
|
||||||||||
Book value per common share |
$ |
138.46 |
|
|
$ |
135.13 |
|
|
$ |
134.27 |
|
|
$ |
117.15 |
|
|
$ |
120.53 |
|
Adjustment for goodwill and other intangibles (1) |
(5.37) |
|
|
(5.53) |
|
|
(5.56) |
|
|
(6.46) |
|
|
(6.50) |
|
|||||
Tangible book value per common share |
133.09 |
|
|
129.60 |
|
|
128.71 |
|
|
110.69 |
|
|
114.03 |
|
|||||
Adjustment for accumulated dividends |
22.08 |
|
|
21.73 |
|
|
21.38 |
|
|
21.03 |
|
|
20.68 |
|
|||||
Tangible book value per common share plus accumulated dividends |
$ |
155.17 |
|
|
$ |
151.33 |
|
|
$ |
150.09 |
|
|
$ |
131.72 |
|
|
$ |
134.71 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Quarterly change in book value per common share |
2.5 |
% |
|
0.6 |
% |
|
14.6 |
% |
|
(2.8) |
% |
|
0.4 |
% |
|||||
Quarterly change in tangible book value per common share plus change in accumulated dividends |
3.0 |
% |
|
1.0 |
% |
|
16.6 |
% |
|
(2.6) |
% |
|
0.7 |
% |
|||||
Year to date change in book value per common share |
14.9 |
% |
|
12.1 |
% |
|
11.4 |
% |
|
(2.8) |
% |
|
15.7 |
% |
|||||
Year to date change in tangible book value per common share plus change in accumulated dividends |
17.9 |
% |
|
14.6 |
% |
|
13.5 |
% |
|
(2.6) |
% |
|
17.9 |
% |
(1) |
At |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210126006063/en/
INVESTORS:
Senior Vice President, Finance & Investor Relations
(441) 239-4830
MEDIA:
Vice President, Head of Global Marketing & Client
Communication
(441) 239-4932
or
Kekst CNC
(212) 521-4800
Source: