• | Net negative impact on net income available to RenaissanceRe common shareholders of $154.9 million from Hurricane Dorian and Typhoon Faxai (collectively, the “Q3 2019 Catastrophe Events”) in the third quarter of 2019. |
• | Gross premiums written increase of $235.4 million, or 37.6%, to $861.1 million, in the third quarter of 2019 compared to the third quarter of 2018, driven by an increase of $222.4 million in the Casualty and Specialty segment and an increase of $13.0 million in the Property segment. |
• | Underwriting loss of $3.4 million and a combined ratio of 100.4% in the third quarter of 2019, compared to an underwriting loss of $29.0 million and a combined ratio of 105.5% in the third quarter of 2018. The Property segment incurred an underwriting loss of $7.7 million and had a combined ratio of 101.7% in the third quarter of 2019. The Casualty and Specialty segment generated underwriting income of $4.5 million and had a combined ratio of 99.0% the third quarter of 2019. The Company’s underwriting results in the third quarter of 2019 were principally impacted by the Q3 2019 Catastrophe Events, which resulted in an underwriting loss of $181.9 million and added 20.6 percentage points to the combined ratio. The third quarter of 2018 included the impacts of Typhoons Jebi, Mangkhut and Trami, Hurricane Florence and the wildfires in California during the third quarter of 2018 (collectively, the “Q3 2018 Catastrophe Events”), which resulted in an underwriting loss of $178.0 million and added 34.4 percentage points to the combined ratio. |
• | Total investment result was a gain of $145.8 million in the third quarter of 2019, generating an annualized total investment return of 3.6%. |
Three months ended September 30, 2019 | Hurricane Dorian | Typhoon Faxai | Total Q3 2019 Catastrophe Events | ||||||||||
(in thousands, except percentages) | |||||||||||||
Net claims and claims expenses incurred | $ | (60,784 | ) | $ | (148,127 | ) | $ | (208,911 | ) | ||||
Assumed reinstatement premiums earned | 5,106 | 18,332 | 23,438 | ||||||||||
Ceded reinstatement premiums earned | (364 | ) | (118 | ) | (482 | ) | |||||||
Lost profit commissions | 92 | 3,943 | 4,035 | ||||||||||
Net negative impact on underwriting result | (55,950 | ) | (125,970 | ) | (181,920 | ) | |||||||
Redeemable noncontrolling interest - DaVinciRe | 3,659 | 23,335 | 26,994 | ||||||||||
Net negative impact on net income available to RenaissanceRe common shareholders | $ | (52,291 | ) | $ | (102,635 | ) | $ | (154,926 | ) | ||||
Percentage point impact on consolidated combined ratio | 6.2 | 14.2 | 20.6 | ||||||||||
Net negative impact on Property segment underwriting result | $ | (53,378 | ) | $ | (125,540 | ) | $ | (178,918 | ) | ||||
Net negative impact on Casualty and Specialty segment underwriting result | (2,572 | ) | (430 | ) | (3,002 | ) | |||||||
Net negative impact on underwriting result | $ | (55,950 | ) | $ | (125,970 | ) | $ | (181,920 | ) | ||||
• | 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 $145.8 million in the third quarter of 2019, compared to a gain of $94.3 million in the third quarter of 2018, an increase of $51.5 million. The increase in the total investment result was principally due to higher returns on the Company’s portfolios of fixed maturity and short term investments, catastrophe bonds and investments-related derivatives, partially offset by net realized and unrealized losses on the Company’s portfolio of equity investments. Also driving the investment result for the third quarter of 2019 were higher average invested assets primarily resulting from the acquisition of the TMR Group Entities, combined with capital raised during the second quarter of 2019 in certain of the Company’s consolidated third-party capital vehicles, including DaVinciRe Holdings Ltd. (“DaVinciRe”), Upsilon RFO Re Ltd. (“Upsilon RFO”), Vermeer Reinsurance Ltd. (“Vermeer”) and RenaissanceRe Medici Fund Ltd. (“Medici”), and the subsequent investment of those funds as part of the Company’s consolidated investment portfolio. |
• | Net income attributable to redeemable noncontrolling interests in the third quarter of 2019 was $62.1 million compared to $6.4 million in the third quarter of 2018. The increase was primarily driven by higher net income from DaVinciRe and an increase in net investment income from Medici, combined with the results of operations |
• | In the third quarter of 2019, total fee income increased by $9.1 million, to $32.0 million, compared to $22.9 million in the third quarter of 2018, primarily driven by improved underlying performance, combined with an increase in the dollar value of capital being managed. |
• | The Company currently estimates, on a preliminary basis, that losses from Typhoon Hagibis will have an estimated net negative impact on net income (loss) available (attributable) to RenaissanceRe common shareholders of approximately $175 million on its fourth quarter 2019 results of operations. |
INVESTOR CONTACT: | MEDIA CONTACT: |
Keith McCue | Keil Gunther |
Senior Vice President, Finance & Investor Relations | Vice President, Marketing & Communications |
RenaissanceRe Holdings Ltd. | RenaissanceRe Holdings Ltd. |
(441) 239-4830 | (441) 239-4932 |
or | |
Kekst CNC | |
Dawn Dover | |
(212) 521-4800 |
RenaissanceRe Holdings Ltd. | |||||||||||||||
Summary Consolidated Statements of Operations | |||||||||||||||
(in thousands of United States Dollars, except per share amounts and percentages) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended | Nine months ended | ||||||||||||||
September 30, 2019 | September 30, 2018 | September 30, 2019 | September 30, 2018 | ||||||||||||
Revenues | |||||||||||||||
Gross premiums written | $ | 861,068 | $ | 625,677 | $ | 3,902,271 | $ | 2,762,672 | |||||||
Net premiums written | $ | 704,130 | $ | 453,255 | $ | 2,656,126 | $ | 1,720,808 | |||||||
Decrease (increase) in unearned premiums | 202,618 | 78,594 | (287,848 | ) | (319,292 | ) | |||||||||
Net premiums earned | 906,748 | 531,849 | 2,368,278 | 1,401,516 | |||||||||||
Net investment income | 113,844 | 80,696 | 311,138 | 208,528 | |||||||||||
Net foreign exchange losses | (8,275 | ) | (4,566 | ) | (1,812 | ) | (11,496 | ) | |||||||
Equity in earnings of other ventures | 5,877 | 7,648 | 17,350 | 14,331 | |||||||||||
Other (loss) income | 1,016 | 497 | 5,109 | 480 | |||||||||||
Net realized and unrealized gains (losses) on investments | 31,938 | 13,630 | 396,586 | (86,415 | ) | ||||||||||
Total revenues | 1,051,148 | 629,754 | 3,096,649 | 1,526,944 | |||||||||||
Expenses | |||||||||||||||
Net claims and claim expenses incurred | 654,520 | 410,510 | 1,334,928 | 642,380 | |||||||||||
Acquisition expenses | 202,181 | 109,761 | 553,614 | 312,524 | |||||||||||
Operational expenses | 53,415 | 40,593 | 158,162 | 119,408 | |||||||||||
Corporate expenses | 13,844 | 6,841 | 76,480 | 21,875 | |||||||||||
Interest expense | 15,580 | 11,769 | 42,868 | 35,304 | |||||||||||
Total expenses | 939,540 | 579,474 | 2,166,052 | 1,131,491 | |||||||||||
Income before taxes | 111,608 | 50,280 | 930,597 | 395,453 | |||||||||||
Income tax expense | (3,664 | ) | (1,451 | ) | (20,670 | ) | (2,550 | ) | |||||||
Net income | 107,944 | 48,829 | 909,927 | 392,903 | |||||||||||
Net income attributable to noncontrolling interests | (62,057 | ) | (6,440 | ) | (204,091 | ) | (90,822 | ) | |||||||
Net income attributable to RenaissanceRe | 45,887 | 42,389 | 705,836 | 302,081 | |||||||||||
Dividends on preference shares | (9,189 | ) | (9,708 | ) | (27,567 | ) | (20,899 | ) | |||||||
Net income available to RenaissanceRe common shareholders | $ | 36,698 | $ | 32,681 | $ | 678,269 | $ | 281,182 | |||||||
Net income available to RenaissanceRe common shareholders per common share - basic | $ | 0.83 | $ | 0.82 | $ | 15.58 | $ | 7.02 | |||||||
Net income available to RenaissanceRe common shareholders per common share - diluted | $ | 0.83 | $ | 0.82 | $ | 15.57 | $ | 7.02 | |||||||
Operating income available to RenaissanceRe common shareholders per common share - diluted (1) | $ | 0.29 | $ | 0.45 | $ | 8.64 | $ | 8.62 | |||||||
Average shares outstanding - basic | 43,462 | 39,624 | 43,003 | 39,606 | |||||||||||
Average shares outstanding - diluted | 43,537 | 39,637 | 43,049 | 39,627 | |||||||||||
Net claims and claim expense ratio | 72.2 | % | 77.2 | % | 56.4 | % | 45.8 | % | |||||||
Underwriting expense ratio | 28.2 | % | 28.3 | % | 30.0 | % | 30.9 | % | |||||||
Combined ratio | 100.4 | % | 105.5 | % | 86.4 | % | 76.7 | % | |||||||
Return on average common equity - annualized | 2.8 | % | 3.1 | % | 18.2 | % | 9.1 | % | |||||||
Operating return on average common equity - annualized (1) | 1.0 | % | 1.7 | % | 10.2 | % | 11.1 | % |
(1) | See Comments on Regulation G for a reconciliation of non-GAAP financial measures. |
RenaissanceRe Holdings Ltd. | |||||||
Summary Consolidated Balance Sheets | |||||||
(in thousands of United States Dollars, except per share amounts) | |||||||
September 30, 2019 | December 31, 2018 | ||||||
Assets | (Unaudited) | (Audited) | |||||
Fixed maturity investments trading, at fair value | $ | 11,386,228 | $ | 8,088,870 | |||
Short term investments, at fair value | 4,116,156 | 2,586,520 | |||||
Equity investments trading, at fair value | 379,422 | 310,252 | |||||
Other investments, at fair value | 962,109 | 784,933 | |||||
Investments in other ventures, under equity method | 103,978 | 115,172 | |||||
Total investments | 16,947,893 | 11,885,747 | |||||
Cash and cash equivalents | 871,251 | 1,107,922 | |||||
Premiums receivable | 2,799,954 | 1,537,188 | |||||
Prepaid reinsurance premiums | 972,047 | 616,185 | |||||
Reinsurance recoverable | 2,438,299 | 2,372,221 | |||||
Accrued investment income | 73,509 | 51,311 | |||||
Deferred acquisition costs and value of business acquired | 708,258 | 476,661 | |||||
Receivable for investments sold | 225,147 | 256,416 | |||||
Other assets | 344,593 | 135,127 | |||||
Goodwill and other intangibles | 263,259 | 237,418 | |||||
Total assets | $ | 25,644,210 | $ | 18,676,196 | |||
Liabilities, Noncontrolling Interests and Shareholders’ Equity | |||||||
Liabilities | |||||||
Reserve for claims and claim expenses | $ | 8,602,437 | $ | 6,076,271 | |||
Unearned premiums | 2,967,535 | 1,716,021 | |||||
Debt | 1,383,498 | 991,127 | |||||
Reinsurance balances payable | 2,910,601 | 1,902,056 | |||||
Payable for investments purchased | 654,685 | 380,332 | |||||
Other liabilities | 395,186 | 513,609 | |||||
Total liabilities | 16,913,942 | 11,579,416 | |||||
Redeemable noncontrolling interest | 2,779,033 | 2,051,700 | |||||
Shareholders’ Equity | |||||||
Preference shares | 650,000 | 650,000 | |||||
Common shares | 44,152 | 42,207 | |||||
Additional paid-in capital | 560,166 | 296,099 | |||||
Accumulated other comprehensive income (loss) | 4,988 | (1,433 | ) | ||||
Retained earnings | 4,691,929 | 4,058,207 | |||||
Total shareholders’ equity attributable to RenaissanceRe | 5,951,235 | 5,045,080 | |||||
Total liabilities, noncontrolling interests and shareholders’ equity | $ | 25,644,210 | $ | 18,676,196 | |||
Book value per common share | $ | 120.07 | $ | 104.13 |
RenaissanceRe Holdings Ltd. | |||||||||||||||
Supplemental Financial Data - Segment Information | |||||||||||||||
(in thousands of United States Dollars, except percentages) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended September 30, 2019 | |||||||||||||||
Property | Casualty and Specialty | Other | Total | ||||||||||||
Gross premiums written | $ | 314,400 | $ | 546,668 | $ | — | $ | 861,068 | |||||||
Net premiums written | $ | 302,982 | $ | 401,148 | $ | — | $ | 704,130 | |||||||
Net premiums earned | $ | 444,332 | $ | 462,416 | $ | — | $ | 906,748 | |||||||
Net claims and claim expenses incurred | 338,260 | 316,099 | 161 | 654,520 | |||||||||||
Acquisition expenses | 79,521 | 122,654 | 6 | 202,181 | |||||||||||
Operational expenses | 34,238 | 19,198 | (21 | ) | 53,415 | ||||||||||
Underwriting (loss) income | $ | (7,687 | ) | $ | 4,465 | $ | (146 | ) | (3,368 | ) | |||||
Net investment income | 113,844 | 113,844 | |||||||||||||
Net foreign exchange losses | (8,275 | ) | (8,275 | ) | |||||||||||
Equity in earnings of other ventures | 5,877 | 5,877 | |||||||||||||
Other loss | 1,016 | 1,016 | |||||||||||||
Net realized and unrealized gains on investments | 31,938 | 31,938 | |||||||||||||
Corporate expenses | (13,844 | ) | (13,844 | ) | |||||||||||
Interest expense | (15,580 | ) | (15,580 | ) | |||||||||||
Income before taxes and redeemable noncontrolling interests | 111,608 | ||||||||||||||
Income tax expense | (3,664 | ) | (3,664 | ) | |||||||||||
Net income attributable to redeemable noncontrolling interests | (62,057 | ) | (62,057 | ) | |||||||||||
Dividends on preference shares | (9,189 | ) | (9,189 | ) | |||||||||||
Net income available to RenaissanceRe common shareholders | $ | 36,698 | |||||||||||||
Net claims and claim expenses incurred – current accident year | $ | 345,880 | $ | 319,087 | $ | — | $ | 664,967 | |||||||
Net claims and claim expenses incurred – prior accident years | (7,620 | ) | (2,988 | ) | 161 | (10,447 | ) | ||||||||
Net claims and claim expenses incurred – total | $ | 338,260 | $ | 316,099 | $ | 161 | $ | 654,520 | |||||||
Net claims and claim expense ratio – current accident year | 77.8 | % | 69.0 | % | 73.3 | % | |||||||||
Net claims and claim expense ratio – prior accident years | (1.7 | )% | (0.6 | )% | (1.1 | )% | |||||||||
Net claims and claim expense ratio – calendar year | 76.1 | % | 68.4 | % | 72.2 | % | |||||||||
Underwriting expense ratio | 25.6 | % | 30.6 | % | 28.2 | % | |||||||||
Combined ratio | 101.7 | % | 99.0 | % | 100.4 | % | |||||||||
Three months ended September 30, 2018 | |||||||||||||||
Property | Casualty and Specialty | Other | Total | ||||||||||||
Gross premiums written | $ | 301,413 | $ | 324,264 | $ | — | $ | 625,677 | |||||||
Net premiums written | $ | 232,632 | $ | 220,623 | $ | — | $ | 453,255 | |||||||
Net premiums earned | $ | 293,059 | $ | 238,791 | $ | (1 | ) | $ | 531,849 | ||||||
Net claims and claim expenses incurred | 265,857 | 144,671 | (18 | ) | 410,510 | ||||||||||
Acquisition expenses | 45,524 | 64,238 | (1 | ) | 109,761 | ||||||||||
Operational expenses | 25,577 | 14,976 | 40 | 40,593 | |||||||||||
Underwriting (loss) income | $ | (43,899 | ) | $ | 14,906 | $ | (22 | ) | (29,015 | ) | |||||
Net investment income | 80,696 | 80,696 | |||||||||||||
Net foreign exchange losses | (4,566 | ) | (4,566 | ) | |||||||||||
Equity in earnings of other ventures | 7,648 | 7,648 | |||||||||||||
Other income | 497 | 497 | |||||||||||||
Net realized and unrealized gains on investments | 13,630 | 13,630 | |||||||||||||
Corporate expenses | (6,841 | ) | (6,841 | ) | |||||||||||
Interest expense | (11,769 | ) | (11,769 | ) | |||||||||||
Income before taxes and redeemable noncontrolling interests | 50,280 | ||||||||||||||
Income tax expense | (1,451 | ) | (1,451 | ) | |||||||||||
Net income attributable to redeemable noncontrolling interests | (6,440 | ) | (6,440 | ) | |||||||||||
Dividends on preference shares | (9,708 | ) | (9,708 | ) | |||||||||||
Net income available to RenaissanceRe common shareholders | $ | 32,681 | |||||||||||||
Net claims and claim expenses incurred – current accident year | $ | 268,022 | $ | 151,904 | $ | — | $ | 419,926 | |||||||
Net claims and claim expenses incurred – prior accident years | (2,165 | ) | (7,233 | ) | (18 | ) | (9,416 | ) | |||||||
Net claims and claim expenses incurred – total | $ | 265,857 | $ | 144,671 | $ | (18 | ) | $ | 410,510 | ||||||
Net claims and claim expense ratio – current accident year | 91.5 | % | 63.6 | % | 79.0 | % | |||||||||
Net claims and claim expense ratio – prior accident years | (0.8 | )% | (3.0 | )% | (1.8 | )% | |||||||||
Net claims and claim expense ratio – calendar year | 90.7 | % | 60.6 | % | 77.2 | % | |||||||||
Underwriting expense ratio | 24.3 | % | 33.2 | % | 28.3 | % | |||||||||
Combined ratio | 115.0 | % | 93.8 | % | 105.5 | % |
RenaissanceRe Holdings Ltd. | |||||||||||||||
Supplemental Financial Data - Segment Information | |||||||||||||||
(in thousands of United States Dollars, except percentages) | |||||||||||||||
(Unaudited) | |||||||||||||||
Nine months ended September 30, 2019 | |||||||||||||||
Property | Casualty and Specialty | Other | Total | ||||||||||||
Gross premiums written | $ | 2,185,984 | $ | 1,716,287 | $ | — | $ | 3,902,271 | |||||||
Net premiums written | $ | 1,411,327 | $ | 1,244,799 | $ | — | $ | 2,656,126 | |||||||
Net premiums earned | $ | 1,160,090 | $ | 1,208,188 | $ | — | $ | 2,368,278 | |||||||
Net claims and claim expenses incurred | 541,217 | 793,533 | 178 | 1,334,928 | |||||||||||
Acquisition expenses | 222,971 | 330,829 | (186 | ) | 553,614 | ||||||||||
Operational expenses | 99,546 | 58,603 | 13 | 158,162 | |||||||||||
Underwriting income | $ | 296,356 | $ | 25,223 | $ | (5 | ) | 321,574 | |||||||
Net investment income | 311,138 | 311,138 | |||||||||||||
Net foreign exchange losses | (1,812 | ) | (1,812 | ) | |||||||||||
Equity in earnings of other ventures | 17,350 | 17,350 | |||||||||||||
Other income | 5,109 | 5,109 | |||||||||||||
Net realized and unrealized gains on investments | 396,586 | 396,586 | |||||||||||||
Corporate expenses | (76,480 | ) | (76,480 | ) | |||||||||||
Interest expense | (42,868 | ) | (42,868 | ) | |||||||||||
Income before taxes and redeemable noncontrolling interests | 930,597 | ||||||||||||||
Income tax expense | (20,670 | ) | (20,670 | ) | |||||||||||
Net income attributable to redeemable noncontrolling interests | (204,091 | ) | (204,091 | ) | |||||||||||
Dividends on preference shares | (27,567 | ) | (27,567 | ) | |||||||||||
Net income attributable to RenaissanceRe common shareholders | $ | 678,269 | |||||||||||||
Net claims and claim expenses incurred – current accident year | $ | 536,197 | $ | 813,251 | $ | — | $ | 1,349,448 | |||||||
Net claims and claim expenses incurred – prior accident years | 5,020 | (19,718 | ) | 178 | (14,520 | ) | |||||||||
Net claims and claim expenses incurred – total | $ | 541,217 | $ | 793,533 | $ | 178 | $ | 1,334,928 | |||||||
Net claims and claim expense ratio – current accident year | 46.2 | % | 67.3 | % | 57.0 | % | |||||||||
Net claims and claim expense ratio – prior accident years | 0.5 | % | (1.6 | )% | (0.6 | )% | |||||||||
Net claims and claim expense ratio – calendar year | 46.7 | % | 65.7 | % | 56.4 | % | |||||||||
Underwriting expense ratio | 27.8 | % | 32.2 | % | 30.0 | % | |||||||||
Combined ratio | 74.5 | % | 97.9 | % | 86.4 | % | |||||||||
Nine months ended September 30, 2018 | |||||||||||||||
Property | Casualty and Specialty | Other | Total | ||||||||||||
Gross premiums written | $ | 1,561,008 | $ | 1,201,664 | $ | — | $ | 2,762,672 | |||||||
Net premiums written | $ | 884,541 | $ | 836,267 | $ | — | $ | 1,720,808 | |||||||
Net premiums earned | $ | 722,246 | $ | 679,271 | $ | (1 | ) | $ | 1,401,516 | ||||||
Net claims and claim expenses incurred | 222,195 | 420,273 | (88 | ) | 642,380 | ||||||||||
Acquisition expenses | 127,095 | 185,429 | — | 312,524 | |||||||||||
Operational expenses | 75,933 | 43,121 | 354 | 119,408 | |||||||||||
Underwriting income (loss) | $ | 297,023 | $ | 30,448 | $ | (267 | ) | 327,204 | |||||||
Net investment income | 208,528 | 208,528 | |||||||||||||
Net foreign exchange losses | (11,496 | ) | (11,496 | ) | |||||||||||
Equity in earnings of other ventures | 14,331 | 14,331 | |||||||||||||
Other income | 480 | 480 | |||||||||||||
Net realized and unrealized losses on investments | (86,415 | ) | (86,415 | ) | |||||||||||
Corporate expenses | (21,875 | ) | (21,875 | ) | |||||||||||
Interest expense | (35,304 | ) | (35,304 | ) | |||||||||||
Income before taxes and redeemable noncontrolling interests | 395,453 | ||||||||||||||
Income tax expense | (2,550 | ) | (2,550 | ) | |||||||||||
Net income attributable to redeemable noncontrolling interests | (90,822 | ) | (90,822 | ) | |||||||||||
Dividends on preference shares | (20,899 | ) | (20,899 | ) | |||||||||||
Net income available to RenaissanceRe common shareholders | $ | 281,182 | |||||||||||||
Net claims and claim expenses incurred – current accident year | $ | 395,067 | $ | 444,293 | $ | — | $ | 839,360 | |||||||
Net claims and claim expenses incurred – prior accident years | (172,872 | ) | (24,020 | ) | (88 | ) | (196,980 | ) | |||||||
Net claims and claim expenses incurred – total | $ | 222,195 | $ | 420,273 | $ | (88 | ) | $ | 642,380 | ||||||
Net claims and claim expense ratio – current accident year | 54.7 | % | 65.4 | % | 59.9 | % | |||||||||
Net claims and claim expense ratio – prior accident years | (23.9 | )% | (3.5 | )% | (14.1 | )% | |||||||||
Net claims and claim expense ratio – calendar year | 30.8 | % | 61.9 | % | 45.8 | % | |||||||||
Underwriting expense ratio | 28.1 | % | 33.6 | % | 30.9 | % | |||||||||
Combined ratio | 58.9 | % | 95.5 | % | 76.7 | % |
RenaissanceRe Holdings Ltd. | |||||||||||||||
Supplemental Financial Data - Gross Premiums Written | |||||||||||||||
(in thousands of United States Dollars) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended | Nine months ended | ||||||||||||||
September 30, 2019 | September 30, 2018 | September 30, 2019 | September 30, 2018 | ||||||||||||
Property Segment | |||||||||||||||
Catastrophe | $ | 102,779 | $ | 212,330 | $ | 1,550,648 | $ | 1,240,387 | |||||||
Other property | 211,621 | 89,083 | 635,336 | 320,621 | |||||||||||
Property segment gross premiums written | $ | 314,400 | $ | 301,413 | $ | 2,185,984 | $ | 1,561,008 | |||||||
Casualty and Specialty Segment | |||||||||||||||
General casualty (1) | $ | 191,447 | $ | 97,026 | 610,563 | 377,300 | |||||||||
Professional liability (2) | 151,754 | 111,536 | 460,912 | 366,460 | |||||||||||
Financial lines (3) | 111,459 | 69,253 | 330,017 | 250,735 | |||||||||||
Other (4) | 92,008 | 46,449 | 314,795 | 207,169 | |||||||||||
Casualty and Specialty segment gross premiums written | $ | 546,668 | $ | 324,264 | $ | 1,716,287 | $ | 1,201,664 |
(1) | Includes automobile liability, casualty clash, employer’s liability, umbrella or excess casualty, workers’ compensation and general liability. |
(2) | Includes directors and officers, medical malpractice, and professional indemnity. |
(3) | Includes financial guaranty, mortgage guaranty, political risk, surety and trade credit. |
(4) | Includes accident and health, agriculture, aviation, cyber, energy, marine, satellite and terrorism. Lines of business such as regional multi-line and whole account may have characteristics of various other classes of business, and are allocated accordingly. |
RenaissanceRe Holdings Ltd. | |||||||||||||||
Supplemental Financial Data - Total Investment Result | |||||||||||||||
(in thousands of United States Dollars, except percentages) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended | Nine months ended | ||||||||||||||
September 30, 2019 | September 30, 2018 | September 30, 2019 | September 30, 2018 | ||||||||||||
Fixed maturity investments | $ | 82,977 | $ | 55,725 | $ | 232,566 | $ | 151,784 | |||||||
Short term investments | 15,061 | 9,403 | 44,712 | 22,340 | |||||||||||
Equity investments trading | 1,326 | 903 | 3,269 | 3,091 | |||||||||||
Other investments | |||||||||||||||
Private equity investments | (4,597 | ) | 8,723 | 8,166 | 12,149 | ||||||||||
Other | 22,538 | 8,665 | 30,413 | 27,346 | |||||||||||
Cash and cash equivalents | 1,978 | 1,104 | 5,801 | 2,708 | |||||||||||
119,283 | 84,523 | 324,927 | 219,418 | ||||||||||||
Investment expenses | (5,439 | ) | (3,827 | ) | (13,789 | ) | (10,890 | ) | |||||||
Net investment income | 113,844 | 80,696 | 311,138 | 208,528 | |||||||||||
Gross realized gains | 34,710 | 5,229 | 87,595 | 14,945 | |||||||||||
Gross realized losses | (4,609 | ) | (15,327 | ) | (34,769 | ) | (67,699 | ) | |||||||
Net realized gains (losses) on fixed maturity investments | 30,101 | (10,098 | ) | 52,826 | (52,754 | ) | |||||||||
Net unrealized gains (losses) on fixed maturity investments trading | 17,226 | (8,730 | ) | 243,139 | (73,522 | ) | |||||||||
Net realized and unrealized gains (losses) on investments-related derivatives | 11,134 | 2,563 | 62,103 | (763 | ) | ||||||||||
Net realized (losses) gains on equity investments trading | (72 | ) | 21,259 | 30,666 | 21,841 | ||||||||||
Net unrealized (losses) gains on equity investments trading | (26,451 | ) | 8,636 | 7,852 | 18,783 | ||||||||||
Net realized and unrealized gains (losses) on investments | 31,938 | 13,630 | 396,586 | (86,415 | ) | ||||||||||
Total investment result | $ | 145,782 | $ | 94,326 | $ | 707,724 | $ | 122,113 | |||||||
Total investment return - annualized | 3.6 | % | 3.3 | % | 6.0 | % | 1.5 | % |
Three months ended | Nine months ended | ||||||||||||||
(in thousands of United States Dollars, except per share amounts and percentages) | September 30, 2019 | September 30, 2018 | September 30, 2019 | September 30, 2018 | |||||||||||
Net income available to RenaissanceRe common shareholders | $ | 36,698 | $ | 32,681 | $ | 678,269 | $ | 281,182 | |||||||
Adjustment for net realized and unrealized (gains) losses on investments attributable to RenaissanceRe common shareholders (1) | (30,683 | ) | (16,371 | ) | (361,265 | ) | 65,218 | ||||||||
Adjustment for transaction and integration expenses associated with the acquisition of the TMR Group Entities | 4,022 | — | 44,025 | — | |||||||||||
Adjustment for income tax expense (benefit) (2) | 2,929 | 1,536 | 18,869 | (2,170 | ) | ||||||||||
Operating income available to RenaissanceRe common shareholders | $ | 12,966 | $ | 17,846 | $ | 379,898 | $ | 344,230 | |||||||
Net income available to RenaissanceRe common shareholders per common share - diluted | $ | 0.83 | $ | 0.82 | $ | 15.57 | $ | 7.02 | |||||||
Adjustment for net realized and unrealized (gains) losses on investments attributable to RenaissanceRe common shareholders (1) | (0.70 | ) | (0.41 | ) | (8.39 | ) | 1.65 | ||||||||
Adjustment for transaction and integration expenses associated with the acquisition of the TMR Group Entities | 0.09 | — | 1.02 | — | |||||||||||
Adjustment for income tax expense (benefit) (2) | 0.07 | 0.04 | 0.44 | (0.05 | ) | ||||||||||
Operating income available to RenaissanceRe common shareholders per common share - diluted | $ | 0.29 | $ | 0.45 | $ | 8.64 | $ | 8.62 | |||||||
Return on average common equity - annualized | 2.8 | % | 3.1 | % | 18.2 | % | 9.1 | % | |||||||
Adjustment for net realized and unrealized (gains) losses on investments attributable to RenaissanceRe common shareholders (1) | (2.3 | )% | (1.5 | )% | (9.7 | )% | 2.1 | % | |||||||
Adjustment for transaction and integration expenses associated with the acquisition of the TMR Group Entities | 0.3 | % | — | % | 1.2 | % | — | % | |||||||
Adjustment for income tax expense (benefit) (2) | 0.2 | % | 0.1 | % | 0.5 | % | (0.1 | )% | |||||||
Operating return on average common equity - annualized | 1.0 | % | 1.7 | % | 10.2 | % | 11.1 | % |
(1) | Adjustment for net realized and unrealized (gains) losses on investments attributable to RenaissanceRe common shareholders represents: net realized and unrealized gains (losses) on investments as set forth in the Company's consolidated statement of operations less net realized and unrealized gains (losses) attributable to redeemable noncontrolling interests, which is included in net income attributable to redeemable noncontrolling interests in the Company's consolidated statement of operations. Comparative information for all prior periods has been updated to conform to the current methodology and presentation. |
(2) | Adjustment for income tax expense (benefit) represents the income tax expense (benefit) associated with the adjustments to net income available to RenaissanceRe common shareholders. The income tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors. |
At | |||||||||||||||||||
September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | |||||||||||||||
Book value per common share | $ | 120.07 | $ | 119.17 | $ | 111.05 | $ | 104.13 | $ | 105.21 | |||||||||
Adjustment for goodwill and other intangibles (1) | (6.55 | ) | (6.60 | ) | (6.66 | ) | (6.28 | ) | (6.63 | ) | |||||||||
Tangible book value per common share | 113.52 | 112.57 | 104.39 | 97.85 | 98.58 | ||||||||||||||
Adjustment for accumulated dividends | 20.34 | 20.00 | 19.66 | 19.32 | 18.99 | ||||||||||||||
Tangible book value per common share plus accumulated dividends | $ | 133.86 | $ | 132.57 | $ | 124.05 | $ | 117.17 | $ | 117.57 | |||||||||
Quarterly change in book value per common share | 0.8 | % | 7.3 | % | 6.6 | % | (1.0 | )% | 0.6 | % | |||||||||
Quarterly change in tangible book value per common share plus change in accumulated dividends | 1.1 | % | 8.2 | % | 7.0 | % | (0.4 | )% | 1.1 | % | |||||||||
Year to date change in book value per common share | 15.3 | % | 14.4 | % | 6.6 | % | 4.4 | % | 5.5 | % | |||||||||
Year to date change in tangible book value per common share plus change in accumulated dividends | 17.1 | % | 15.7 | % | 7.0 | % | 6.4 | % | 6.8 | % |
(1) | At September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018 and September 30, 2018, goodwill and other intangibles included $25.6 million, $26.3 million, $27.0 million, $27.7 million and $28.4 million, respectively, of goodwill and other intangibles included in investments in other ventures, under equity method. |