EXHIBIT 99.2
Published on October 30, 2019
RenaissanceRe Holdings Ltd.
Contents
Page |
||||
Basis of Presentation |
||||
Financial Highlights |
||||
Statements of Operations |
||||
a. |
Summary Consolidated Statements of Operations |
|||
b. |
Consolidated Segment Underwriting Results |
|||
c. |
Segment Underwriting Results |
|||
d. |
DaVinciRe Holdings Ltd. and Subsidiary Consolidated Statements of Operations |
|||
Balance Sheets |
||||
a. |
Summary Consolidated Balance Sheets |
|||
Investments |
||||
a. |
Investment Portfolio - Composition |
|||
b. |
Investment Portfolio - Fixed Maturity Investments |
|||
c. |
Investment Portfolio - Weighted Average Yield to Maturity and Credit Rating |
|||
d. |
Total Investment Result |
|||
Loss Reserve Analysis |
||||
a. |
Reserves for Claims and Claim Expenses |
|||
b. |
Paid to Incurred Analysis |
|||
Other Items |
||||
a. |
Fee Income |
|||
b. |
Earnings per Share |
|||
c. |
Ratings |
|||
Supplemental Information |
||||
a. |
Gross Premiums Written |
|||
b. |
Property Segment Supplemental Underwriting Results |
|||
Comments on Regulation G |
||||
RenaissanceRe Holdings Ltd.
Basis of Presentation
RenaissanceRe Holdings Ltd. (the "Company" or "RenaissanceRe") is a global provider of reinsurance and insurance. The Company provides property, casualty and specialty reinsurance and certain insurance solutions to customers, principally through intermediaries. Established in 1993, the Company has offices in Bermuda, Australia, Ireland, Singapore, Switzerland, the United Kingdom and the United States.
On March 22, 2019, the Company's wholly owned subsidiary RenaissanceRe Specialty Holdings (UK) Limited completed its previously announced purchase of all the share capital of Tokio Millennium Re AG (now known as RenaissanceRe Europe AG), Tokio Millennium Re (UK) Limited (now known as RenaissanceRe (UK) Limited) and their subsidiaries (collectively, the “TMR Group Entities”) (the “TMR Stock Purchase”). The Company accounted for the acquisition of the TMR Group Entities under the acquisition method of accounting in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic Business Combinations. The operating activities of the TMR Group Entities from the acquisition date, March 22, 2019, through March 31, 2019 were not material and, as a result, were not included in the Company's consolidated statements of operations for the three months ended March 31, 2019. The operating activities of the TMR Group Entities from the acquisition date, March 22, 2019, through September 30, 2019 are included in the Company's consolidated statements of operations for the three and nine months ended September 30, 2019. At September 30, 2019, June 30, 2019 and March 31, 2019, the Company's consolidated balance sheet reflects the combined entities.
This financial supplement 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”, “tangible book value per common share plus accumulated dividends" and "retained fixed maturity and short term investments, at fair value." A reconciliation of such measures to the most comparable GAAP figures in accordance with Regulation G is presented in the attached supplemental financial data. See pages 19 through 22 for Comments on Regulation G.
Cautionary Statement under “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995: Statements made in this financial supplement contain information about the Company's future business prospects. These statements may be considered “forward-looking.” These statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements. For further information regarding cautionary statements and factors affecting future results, please refer to RenaissanceRe Holdings Ltd.'s filings with the U.S. Securities and Exchange Commission, including its Annual Reports on Form 10-K and its Quarterly Reports on Form 10-Q.
All information contained herein is unaudited. Unless otherwise noted, dollar amounts are in thousands, except for share and per share amounts and ratio information. Certain prior period comparatives have been reclassified to conform to the current presentation. This supplement is being provided for informational purposes only. It should be read in conjunction with documents filed by RenaissanceRe with the U.S. Securities and Exchange Commission, including its Annual Reports on Form 10-K and its Quarterly Reports on Form 10-Q. Please refer to the Company's website at www.renre.com for further information about RenaissanceRe.
i |
||
RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||||||
Financial Highlights | |||||||||||||||||||||||||||
Three months ended |
Nine months ended |
||||||||||||||||||||||||||
September 30, 2019 |
June 30, 2019 |
March 31, 2019 |
December 31, 2018 |
September 30, 2018 |
September 30, 2019 |
September 30, 2018 |
|||||||||||||||||||||
Highlights |
|||||||||||||||||||||||||||
Gross premiums written |
$ |
861,068 |
$ |
1,476,908 |
$ |
1,564,295 |
$ |
547,755 |
$ |
625,677 |
$ |
3,902,271 |
$ |
2,762,672 |
|||||||||||||
Underwriting (loss) income |
$ |
(3,368 |
) |
$ |
170,833 |
$ |
154,109 |
$ |
(82,349 |
) |
$ |
(29,015 |
) |
$ |
321,574 |
$ |
327,204 |
||||||||||
Net investment income |
$ |
113,844 |
$ |
115,832 |
$ |
81,462 |
$ |
53,338 |
$ |
80,696 |
$ |
311,138 |
$ |
208,528 |
|||||||||||||
Net realized and unrealized gains (losses) on investments |
31,938 |
194,003 |
170,645 |
(88,654 |
) |
13,630 |
396,586 |
(86,415 |
) |
||||||||||||||||||
Total investment result |
$ |
145,782 |
$ |
309,835 |
$ |
252,107 |
$ |
(35,316 |
) |
$ |
94,326 |
$ |
707,724 |
$ |
122,113 |
||||||||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders |
$ |
36,698 |
$ |
367,854 |
$ |
273,717 |
$ |
(83,906 |
) |
$ |
32,681 |
$ |
678,269 |
$ |
281,182 |
||||||||||||
Operating income available to RenaissanceRe common shareholders (1) |
$ |
12,966 |
$ |
212,572 |
$ |
154,360 |
$ |
4,797 |
$ |
17,846 |
$ |
379,898 |
$ |
344,230 |
|||||||||||||
Total investments |
$ |
16,947,893 |
$ |
16,388,316 |
$ |
14,852,848 |
$ |
11,885,747 |
$ |
11,545,691 |
$ |
16,947,893 |
$ |
11,545,691 |
|||||||||||||
Total assets |
$ |
25,644,210 |
$ |
26,086,961 |
$ |
24,559,600 |
$ |
18,676,196 |
$ |
17,096,394 |
$ |
25,644,210 |
$ |
17,096,394 |
|||||||||||||
Reserve for claims and claim expenses |
$ |
8,602,437 |
$ |
8,484,848 |
$ |
8,391,484 |
$ |
6,076,271 |
$ |
4,952,498 |
$ |
8,602,437 |
$ |
4,952,498 |
|||||||||||||
Total shareholders' equity attributable to RenaissanceRe |
$ |
5,951,235 |
$ |
5,912,842 |
$ |
5,554,033 |
$ |
5,045,080 |
$ |
4,886,521 |
$ |
5,951,235 |
$ |
4,886,521 |
|||||||||||||
Per share data |
|||||||||||||||||||||||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted |
$ |
0.83 |
$ |
8.35 |
$ |
6.43 |
$ |
(2.10 |
) |
$ |
0.82 |
$ |
15.57 |
$ |
7.02 |
||||||||||||
Operating income available to RenaissanceRe common shareholders per common share - diluted (1) |
$ |
0.29 |
$ |
4.78 |
$ |
3.60 |
$ |
0.11 |
$ |
0.45 |
$ |
8.64 |
$ |
8.62 |
|||||||||||||
Book value per common share |
$ |
120.07 |
$ |
119.17 |
$ |
111.05 |
$ |
104.13 |
$ |
105.21 |
$ |
120.07 |
$ |
105.21 |
|||||||||||||
Tangible book value per common share (1) |
$ |
113.52 |
$ |
112.57 |
$ |
104.39 |
$ |
97.85 |
$ |
98.58 |
$ |
113.52 |
$ |
98.58 |
|||||||||||||
Tangible book value per common share plus accumulated dividends (1) |
$ |
133.86 |
$ |
132.57 |
$ |
124.05 |
$ |
117.17 |
$ |
117.57 |
$ |
133.86 |
$ |
117.57 |
|||||||||||||
Change in tangible book value per common share plus change in accumulated dividends (1) |
1.1 |
% |
8.2 |
% |
7.0 |
% |
(0.4 |
)% |
1.1 |
% |
17.1 |
% |
6.8 |
% |
|||||||||||||
Financial ratios |
|||||||||||||||||||||||||||
Combined ratio |
100.4 |
% |
81.3 |
% |
72.0 |
% |
114.3 |
% |
105.5 |
% |
86.4 |
% |
76.7 |
% |
|||||||||||||
Return on average common equity - annualized |
2.8 |
% |
28.9 |
% |
23.5 |
% |
(7.8 |
)% |
3.1 |
% |
18.2 |
% |
9.1 |
% |
|||||||||||||
Operating return on average common equity - annualized (1) |
1.0 |
% |
16.7 |
% |
13.3 |
% |
0.4 |
% |
1.7 |
% |
10.2 |
% |
11.1 |
% |
|||||||||||||
Total investment return - annualized |
3.6 |
% |
8.0 |
% |
8.0 |
% |
(1.2 |
)% |
3.3 |
% |
6.0 |
% |
1.5 |
% |
|||||||||||||
(1) |
See Comments on Regulation G for a reconciliation of non-GAAP financial measures. |
1 |
|
|
RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||||||
Summary Consolidated Statements of Operations | |||||||||||||||||||||||||||
Three months ended |
Nine months ended |
||||||||||||||||||||||||||
September 30, 2019 |
June 30, 2019 |
March 31, 2019 |
December 31, 2018 |
September 30, 2018 |
September 30, 2019 |
September 30, 2018 |
|||||||||||||||||||||
Revenues |
|||||||||||||||||||||||||||
Gross premiums written |
$ |
861,068 |
$ |
1,476,908 |
$ |
1,564,295 |
$ |
547,755 |
$ |
625,677 |
$ |
3,902,271 |
$ |
2,762,672 |
|||||||||||||
Net premiums written |
$ |
704,130 |
$ |
1,022,965 |
$ |
929,031 |
$ |
411,094 |
$ |
453,255 |
$ |
2,656,126 |
$ |
1,720,808 |
|||||||||||||
Decrease (increase) in unearned premiums |
202,618 |
(111,463 |
) |
(379,003 |
) |
163,519 |
78,594 |
(287,848 |
) |
(319,292 |
) |
||||||||||||||||
Net premiums earned |
906,748 |
911,502 |
550,028 |
574,613 |
531,849 |
2,368,278 |
1,401,516 |
||||||||||||||||||||
Net investment income |
113,844 |
115,832 |
81,462 |
53,338 |
80,696 |
311,138 |
208,528 |
||||||||||||||||||||
Net foreign exchange (losses) gains |
(8,275 |
) |
9,309 |
(2,846 |
) |
(932 |
) |
(4,566 |
) |
(1,812 |
) |
(11,496 |
) |
||||||||||||||
Equity in earnings of other ventures |
5,877 |
6,812 |
4,661 |
4,143 |
7,648 |
17,350 |
14,331 |
||||||||||||||||||||
Other (loss) income |
1,016 |
922 |
3,171 |
5,489 |
497 |
5,109 |
480 |
||||||||||||||||||||
Net realized and unrealized gains (losses) on investments |
31,938 |
194,003 |
170,645 |
(88,654 |
) |
13,630 |
396,586 |
(86,415 |
) |
||||||||||||||||||
Total revenues |
1,051,148 |
1,238,380 |
807,121 |
547,997 |
629,754 |
3,096,649 |
1,526,944 |
||||||||||||||||||||
Expenses |
|||||||||||||||||||||||||||
Net claims and claim expenses incurred |
654,520 |
453,373 |
227,035 |
477,638 |
410,510 |
1,334,928 |
642,380 |
||||||||||||||||||||
Acquisition expenses |
202,181 |
227,482 |
123,951 |
120,465 |
109,761 |
553,614 |
312,524 |
||||||||||||||||||||
Operational expenses |
53,415 |
59,814 |
44,933 |
58,859 |
40,593 |
158,162 |
119,408 |
||||||||||||||||||||
Corporate expenses |
13,844 |
23,847 |
38,789 |
12,108 |
6,841 |
76,480 |
21,875 |
||||||||||||||||||||
Interest expense |
15,580 |
15,534 |
11,754 |
11,765 |
11,769 |
42,868 |
35,304 |
||||||||||||||||||||
Total expenses |
939,540 |
780,050 |
446,462 |
680,835 |
579,474 |
2,166,052 |
1,131,491 |
||||||||||||||||||||
Income (loss) before taxes |
111,608 |
458,330 |
360,659 |
(132,838 |
) |
50,280 |
930,597 |
395,453 |
|||||||||||||||||||
Income tax (expense) benefit |
(3,664 |
) |
(9,475 |
) |
(7,531 |
) |
8,852 |
(1,451 |
) |
(20,670 |
) |
(2,550 |
) |
||||||||||||||
Net income (loss) |
107,944 |
448,855 |
353,128 |
(123,986 |
) |
48,829 |
909,927 |
392,903 |
|||||||||||||||||||
Net (income) loss attributable to noncontrolling interests |
(62,057 |
) |
(71,812 |
) |
(70,222 |
) |
49,269 |
(6,440 |
) |
(204,091 |
) |
(90,822 |
) |
||||||||||||||
Net income (loss) attributable to RenaissanceRe |
45,887 |
377,043 |
282,906 |
(74,717 |
) |
42,389 |
705,836 |
302,081 |
|||||||||||||||||||
Dividends on preference shares |
(9,189 |
) |
(9,189 |
) |
(9,189 |
) |
(9,189 |
) |
(9,708 |
) |
(27,567 |
) |
(20,899 |
) |
|||||||||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders |
$ |
36,698 |
$ |
367,854 |
$ |
273,717 |
$ |
(83,906 |
) |
$ |
32,681 |
$ |
678,269 |
$ |
281,182 |
||||||||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - basic |
$ |
0.83 |
$ |
8.36 |
$ |
6.43 |
$ |
(2.10 |
) |
$ |
0.82 |
$ |
15.58 |
$ |
7.02 |
||||||||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted |
$ |
0.83 |
$ |
8.35 |
$ |
6.43 |
$ |
(2.10 |
) |
$ |
0.82 |
$ |
15.57 |
$ |
7.02 |
||||||||||||
Operating income available to RenaissanceRe common shareholders per common share - diluted (1) |
$ |
0.29 |
$ |
4.78 |
$ |
3.60 |
$ |
0.11 |
$ |
0.45 |
$ |
8.64 |
$ |
8.62 |
|||||||||||||
Return on average common equity - annualized |
2.8 |
% |
28.9 |
% |
23.5 |
% |
(7.8 |
)% |
3.1 |
% |
18.2 |
% |
9.1 |
% |
|||||||||||||
Operating return on average common equity - annualized (1) |
1.0 |
% |
16.7 |
% |
13.3 |
% |
0.4 |
% |
1.7 |
% |
10.2 |
% |
11.1 |
% |
|||||||||||||
(1) |
See Comments on Regulation G for a reconciliation of non-GAAP financial measures. |
2 |
|
|
RenaissanceRe Holdings Ltd. | |||||||||||||||
Consolidated Segment Underwriting Results | |||||||||||||||
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 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 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 |
% |
|||||||||
3 |
|
|
RenaissanceRe Holdings Ltd. | |||||||||||||||
Consolidated Segment Underwriting Results | |||||||||||||||
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 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 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 |
% |
|||||||||
4 |
|
|
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Segment Underwriting Results | |||||||||||||||||||
Three months ended |
|||||||||||||||||||
Property Segment |
September 30, 2019 |
June 30, 2019 |
March 31, 2019 |
December 31, 2018 |
September 30, 2018 |
||||||||||||||
Gross premiums written |
$ |
314,400 |
$ |
839,200 |
$ |
1,032,384 |
$ |
199,918 |
$ |
301,413 |
|||||||||
Net premiums written |
$ |
302,982 |
$ |
544,115 |
$ |
564,230 |
$ |
170,647 |
$ |
232,632 |
|||||||||
Net premiums earned |
$ |
444,332 |
$ |
425,013 |
$ |
290,745 |
$ |
328,585 |
$ |
293,059 |
|||||||||
Net claims and claim expenses incurred |
338,260 |
146,874 |
56,083 |
275,700 |
265,857 |
||||||||||||||
Acquisition expenses |
79,521 |
89,711 |
53,739 |
50,817 |
45,524 |
||||||||||||||
Operational expenses |
34,238 |
36,764 |
28,544 |
37,021 |
25,577 |
||||||||||||||
Underwriting (loss) income |
$ |
(7,687 |
) |
$ |
151,664 |
$ |
152,379 |
$ |
(34,953 |
) |
$ |
(43,899 |
) |
||||||
Net claims and claim expenses incurred - current accident year |
$ |
345,880 |
$ |
136,111 |
$ |
54,206 |
$ |
324,118 |
$ |
268,022 |
|||||||||
Net claims and claim expenses incurred - prior accident years |
(7,620 |
) |
10,763 |
1,877 |
(48,418 |
) |
(2,165 |
) |
|||||||||||
Net claims and claim expenses incurred - total |
$ |
338,260 |
$ |
146,874 |
$ |
56,083 |
$ |
275,700 |
$ |
265,857 |
|||||||||
Net claims and claim expense ratio - current accident year |
77.8 |
% |
32.0 |
% |
18.6 |
% |
98.6 |
% |
91.5 |
% |
|||||||||
Net claims and claim expense ratio - prior accident years |
(1.7 |
)% |
2.6 |
% |
0.7 |
% |
(14.7 |
)% |
(0.8 |
)% |
|||||||||
Net claims and claim expense ratio - calendar year |
76.1 |
% |
34.6 |
% |
19.3 |
% |
83.9 |
% |
90.7 |
% |
|||||||||
Underwriting expense ratio |
25.6 |
% |
29.7 |
% |
28.3 |
% |
26.7 |
% |
24.3 |
% |
|||||||||
Combined ratio |
101.7 |
% |
64.3 |
% |
47.6 |
% |
110.6 |
% |
115.0 |
% |
|||||||||
Three months ended |
|||||||||||||||||||
Casualty and Specialty Segment |
September 30, 2019 |
June 30, 2019 |
March 31, 2019 |
December 31, 2018 |
September 30, 2018 |
||||||||||||||
Gross premiums written |
$ |
546,668 |
$ |
637,708 |
$ |
531,911 |
$ |
347,837 |
$ |
324,264 |
|||||||||
Net premiums written |
$ |
401,148 |
$ |
478,850 |
$ |
364,801 |
$ |
240,447 |
$ |
220,623 |
|||||||||
Net premiums earned |
$ |
462,416 |
$ |
486,489 |
$ |
259,283 |
$ |
246,027 |
$ |
238,791 |
|||||||||
Net claims and claim expenses incurred |
316,099 |
306,501 |
170,933 |
202,047 |
144,671 |
||||||||||||||
Acquisition expenses |
122,654 |
137,963 |
70,212 |
69,650 |
64,238 |
||||||||||||||
Operational expenses |
19,198 |
23,016 |
16,389 |
21,762 |
14,976 |
||||||||||||||
Underwriting income (loss) |
$ |
4,465 |
$ |
19,009 |
$ |
1,749 |
$ |
(47,432 |
) |
$ |
14,906 |
||||||||
Net claims and claim expenses incurred - current accident year |
$ |
319,087 |
$ |
317,029 |
$ |
177,135 |
$ |
227,289 |
$ |
151,904 |
|||||||||
Net claims and claim expenses incurred - prior accident years |
(2,988 |
) |
(10,528 |
) |
(6,202 |
) |
(25,242 |
) |
(7,233 |
) |
|||||||||
Net claims and claim expenses incurred - total |
$ |
316,099 |
$ |
306,501 |
$ |
170,933 |
$ |
202,047 |
$ |
144,671 |
|||||||||
Net claims and claim expense ratio - current accident year |
69.0 |
% |
65.2 |
% |
68.3 |
% |
92.4 |
% |
63.6 |
% |
|||||||||
Net claims and claim expense ratio - prior accident years |
(0.6 |
)% |
(2.2 |
)% |
(2.4 |
)% |
(10.3 |
)% |
(3.0 |
)% |
|||||||||
Net claims and claim expense ratio - calendar year |
68.4 |
% |
63.0 |
% |
65.9 |
% |
82.1 |
% |
60.6 |
% |
|||||||||
Underwriting expense ratio |
30.6 |
% |
33.1 |
% |
33.4 |
% |
37.2 |
% |
33.2 |
% |
|||||||||
Combined ratio |
99.0 |
% |
96.1 |
% |
99.3 |
% |
119.3 |
% |
93.8 |
% |
|||||||||
5 |
|
|
DaVinciRe Holdings Ltd. and Subsidiary | |||||||||||||||||||||||||||
Consolidated Statements of Operations | |||||||||||||||||||||||||||
Three months ended |
Nine months ended |
||||||||||||||||||||||||||
September 30, 2019 |
June 30, 2019 |
March 31, 2019 |
December 31, 2018 |
September 30, 2018 |
September 30, 2019 |
September 30, 2018 |
|||||||||||||||||||||
Revenues |
|||||||||||||||||||||||||||
Gross premiums written |
$ |
32,986 |
$ |
206,052 |
$ |
186,114 |
$ |
33,940 |
$ |
53,328 |
$ |
425,152 |
$ |
352,856 |
|||||||||||||
Net premiums written |
$ |
30,605 |
$ |
165,394 |
$ |
167,919 |
$ |
26,108 |
$ |
50,994 |
$ |
363,918 |
$ |
291,064 |
|||||||||||||
Decrease (increase) in unearned premiums |
63,671 |
(78,769 |
) |
(89,594 |
) |
72,709 |
39,717 |
(104,692 |
) |
(81,403 |
) |
||||||||||||||||
Net premiums earned |
94,276 |
86,625 |
78,325 |
98,817 |
90,711 |
259,226 |
209,661 |
||||||||||||||||||||
Net investment income |
13,813 |
13,597 |
12,823 |
13,543 |
12,327 |
40,233 |
33,516 |
||||||||||||||||||||
Net foreign exchange (losses) gains |
(174 |
) |
(936 |
) |
(256 |
) |
(244 |
) |
131 |
(1,366 |
) |
686 |
|||||||||||||||
Other income |
— |
139 |
205 |
209 |
210 |
344 |
280 |
||||||||||||||||||||
Net realized and unrealized gains (losses) on investments |
6,493 |
20,914 |
22,435 |
427 |
(3,517 |
) |
49,842 |
(27,202 |
) |
||||||||||||||||||
Total revenues |
114,408 |
120,339 |
113,532 |
112,752 |
99,862 |
348,279 |
216,941 |
||||||||||||||||||||
Expenses |
|||||||||||||||||||||||||||
Net claims and claim expenses incurred |
45,325 |
10,986 |
3,663 |
169,716 |
72,818 |
59,974 |
37,931 |
||||||||||||||||||||
Acquisition expenses |
15,762 |
21,211 |
16,966 |
(2,591 |
) |
9,284 |
53,939 |
47,907 |
|||||||||||||||||||
Operational and corporate expenses |
12,139 |
9,777 |
10,650 |
4,490 |
11,560 |
32,566 |
28,690 |
||||||||||||||||||||
Interest expense |
1,859 |
1,858 |
1,858 |
1,859 |
1,859 |
5,575 |
5,575 |
||||||||||||||||||||
Total expenses |
75,085 |
43,832 |
33,137 |
173,474 |
95,521 |
152,054 |
120,103 |
||||||||||||||||||||
Income (loss) before taxes |
39,323 |
76,507 |
80,395 |
(60,722 |
) |
4,341 |
196,225 |
96,838 |
|||||||||||||||||||
Income tax (expense) benefit |
(177 |
) |
243 |
(142 |
) |
21 |
448 |
(76 |
) |
(667 |
) |
||||||||||||||||
Net income (loss) available (attributable) to DaVinciRe common shareholders |
$ |
39,146 |
$ |
76,750 |
$ |
80,253 |
$ |
(60,701 |
) |
$ |
4,789 |
$ |
196,149 |
$ |
96,171 |
||||||||||||
Net claims and claim expenses incurred - current accident year |
$ |
80,022 |
$ |
5,623 |
$ |
10,300 |
$ |
206,323 |
$ |
74,632 |
$ |
95,945 |
$ |
92,442 |
|||||||||||||
Net claims and claim expenses incurred - prior accident years |
(34,697 |
) |
5,363 |
(6,637 |
) |
(36,607 |
) |
(1,814 |
) |
(35,971 |
) |
(54,511 |
) |
||||||||||||||
Net claims and claim expenses incurred - total |
$ |
45,325 |
$ |
10,986 |
$ |
3,663 |
$ |
169,716 |
$ |
72,818 |
$ |
59,974 |
$ |
37,931 |
|||||||||||||
Net claims and claim expense ratio - current accident year |
84.9 |
% |
6.5 |
% |
13.2 |
% |
208.8 |
% |
82.3 |
% |
37.0 |
% |
44.1 |
% |
|||||||||||||
Net claims and claim expense ratio - prior accident years |
(36.8 |
)% |
6.2 |
% |
(8.5 |
)% |
(37.1 |
)% |
(2.0 |
)% |
(13.9 |
)% |
(26.0 |
)% |
|||||||||||||
Net claims and claim expense ratio - calendar year |
48.1 |
% |
12.7 |
% |
4.7 |
% |
171.7 |
% |
80.3 |
% |
23.1 |
% |
18.1 |
% |
|||||||||||||
Underwriting expense ratio |
29.6 |
% |
35.8 |
% |
35.2 |
% |
2.0 |
% |
23.0 |
% |
33.4 |
% |
36.5 |
% |
|||||||||||||
Combined ratio |
77.7 |
% |
48.5 |
% |
39.9 |
% |
173.7 |
% |
103.3 |
% |
56.5 |
% |
54.6 |
% |
|||||||||||||
6 |
|
|
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Summary Consolidated Balance Sheets | |||||||||||||||||||
September 30, 2019 |
June 30, 2019 |
March 31, 2019 |
December 31, 2018 |
September 30, 2018 |
|||||||||||||||
Assets |
|||||||||||||||||||
Fixed maturity investments trading, at fair value |
$ |
11,386,228 |
$ |
10,479,666 |
$ |
9,473,160 |
$ |
8,088,870 |
$ |
7,814,779 |
|||||||||
Short term investments, at fair value |
4,116,156 |
4,579,171 |
4,012,815 |
2,586,520 |
2,461,415 |
||||||||||||||
Equity investments trading, at fair value |
379,422 |
273,646 |
389,937 |
310,252 |
413,271 |
||||||||||||||
Other investments, at fair value |
962,109 |
955,437 |
878,373 |
784,933 |
738,919 |
||||||||||||||
Investments in other ventures, under equity method |
103,978 |
100,396 |
98,563 |
115,172 |
117,307 |
||||||||||||||
Total investments |
16,947,893 |
16,388,316 |
14,852,848 |
11,885,747 |
11,545,691 |
||||||||||||||
Cash and cash equivalents |
871,251 |
670,626 |
1,021,275 |
1,107,922 |
453,041 |
||||||||||||||
Premiums receivable |
2,799,954 |
3,140,688 |
2,753,098 |
1,537,188 |
1,787,095 |
||||||||||||||
Prepaid reinsurance premiums |
972,047 |
1,158,534 |
1,086,027 |
616,185 |
795,496 |
||||||||||||||
Reinsurance recoverable |
2,438,299 |
2,865,150 |
2,908,343 |
2,372,221 |
1,204,059 |
||||||||||||||
Accrued investment income |
73,509 |
76,949 |
64,615 |
51,311 |
46,690 |
||||||||||||||
Deferred acquisition costs and value of business acquired |
708,258 |
780,756 |
841,528 |
476,661 |
497,733 |
||||||||||||||
Receivable for investments sold |
225,147 |
395,787 |
411,172 |
256,416 |
406,062 |
||||||||||||||
Other assets |
344,593 |
344,938 |
353,543 |
135,127 |
121,724 |
||||||||||||||
Goodwill and other intangibles |
263,259 |
265,217 |
267,151 |
237,418 |
238,803 |
||||||||||||||
Total assets |
$ |
25,644,210 |
$ |
26,086,961 |
$ |
24,559,600 |
$ |
18,676,196 |
$ |
17,096,394 |
|||||||||
Liabilities, Noncontrolling Interests and Shareholders' Equity |
|||||||||||||||||||
Liabilities |
|||||||||||||||||||
Reserve for claims and claim expenses |
$ |
8,602,437 |
$ |
8,484,848 |
$ |
8,391,484 |
$ |
6,076,271 |
$ |
4,952,498 |
|||||||||
Unearned premiums |
2,967,535 |
3,362,520 |
3,188,678 |
1,716,021 |
2,058,851 |
||||||||||||||
Debt |
1,383,498 |
1,382,890 |
1,191,499 |
991,127 |
990,749 |
||||||||||||||
Reinsurance balances payable |
2,910,601 |
3,280,048 |
3,009,492 |
1,902,056 |
1,970,913 |
||||||||||||||
Payable for investments purchased |
654,685 |
554,696 |
679,596 |
380,332 |
555,556 |
||||||||||||||
Other liabilities |
395,186 |
396,651 |
435,418 |
513,609 |
147,328 |
||||||||||||||
Total liabilities |
16,913,942 |
17,461,653 |
16,896,167 |
11,579,416 |
10,675,895 |
||||||||||||||
Redeemable noncontrolling interest |
2,779,033 |
2,712,466 |
2,109,400 |
2,051,700 |
1,533,978 |
||||||||||||||
Shareholders' Equity |
|||||||||||||||||||
Preference shares |
650,000 |
650,000 |
650,000 |
650,000 |
650,000 |
||||||||||||||
Common shares |
44,152 |
44,162 |
44,159 |
42,207 |
40,266 |
||||||||||||||
Additional paid-in capital |
560,166 |
552,210 |
543,889 |
296,099 |
42,395 |
||||||||||||||
Accumulated other comprehensive income (loss) |
4,988 |
(3,869 |
) |
(1,470 |
) |
(1,433 |
) |
(1,483 |
) |
||||||||||
Retained earnings |
4,691,929 |
4,670,339 |
4,317,455 |
4,058,207 |
4,155,343 |
||||||||||||||
Total shareholders' equity attributable to RenaissanceRe |
5,951,235 |
5,912,842 |
5,554,033 |
5,045,080 |
4,886,521 |
||||||||||||||
Total liabilities, noncontrolling interests and shareholders' equity |
$ |
25,644,210 |
$ |
26,086,961 |
$ |
24,559,600 |
$ |
18,676,196 |
$ |
17,096,394 |
|||||||||
Book value per common share |
$ |
120.07 |
$ |
119.17 |
$ |
111.05 |
$ |
104.13 |
$ |
105.21 |
|||||||||
7 |
|
|
RenaissanceRe Holdings Ltd. | ||||||||||||||||||||||||||||||||||
Investment Portfolio - Composition | ||||||||||||||||||||||||||||||||||
Type of Investment |
September 30, 2019 |
June 30, 2019 |
March 31, 2019 |
December 31, 2018 |
September 30, 2018 |
|||||||||||||||||||||||||||||
U.S. treasuries |
$ |
4,314,006 |
25.4 |
% |
$ |
3,961,306 |
24.2 |
% |
$ |
3,097,089 |
20.9 |
% |
$ |
3,331,411 |
28.0 |
% |
$ |
3,117,911 |
27.0 |
% |
||||||||||||||
Agencies |
507,903 |
3.0 |
% |
334,923 |
2.0 |
% |
182,904 |
1.2 |
% |
174,883 |
1.5 |
% |
143,980 |
1.2 |
% |
|||||||||||||||||||
Municipal |
1,629 |
— |
% |
2,859 |
— |
% |
256,967 |
1.7 |
% |
6,854 |
0.1 |
% |
7,061 |
0.1 |
% |
|||||||||||||||||||
Non-U.S. government |
379,154 |
2.2 |
% |
370,505 |
2.3 |
% |
687,021 |
4.6 |
% |
279,818 |
2.4 |
% |
254,169 |
2.2 |
% |
|||||||||||||||||||
Non-U.S. government-backed corporate |
263,170 |
1.6 |
% |
207,668 |
1.3 |
% |
286,331 |
1.9 |
% |
160,063 |
1.3 |
% |
137,512 |
1.2 |
% |
|||||||||||||||||||
Corporate |
3,453,222 |
20.4 |
% |
3,268,511 |
19.9 |
% |
2,971,018 |
20.0 |
% |
2,450,244 |
20.6 |
% |
2,448,795 |
21.2 |
% |
|||||||||||||||||||
Agency mortgage-backed |
1,248,722 |
7.4 |
% |
1,167,735 |
7.1 |
% |
955,616 |
6.4 |
% |
817,880 |
6.8 |
% |
836,376 |
7.2 |
% |
|||||||||||||||||||
Non-agency mortgage-backed |
261,850 |
1.5 |
% |
266,963 |
1.6 |
% |
272,880 |
1.8 |
% |
278,680 |
2.4 |
% |
289,649 |
2.5 |
% |
|||||||||||||||||||
Commercial mortgage-backed |
406,268 |
2.4 |
% |
374,584 |
2.3 |
% |
245,323 |
1.7 |
% |
282,294 |
2.4 |
% |
257,434 |
2.2 |
% |
|||||||||||||||||||
Asset-backed |
550,304 |
3.3 |
% |
524,612 |
3.2 |
% |
518,011 |
3.5 |
% |
306,743 |
2.6 |
% |
321,892 |
2.9 |
% |
|||||||||||||||||||
Total fixed maturity investments, at fair value |
11,386,228 |
67.2 |
% |
10,479,666 |
63.9 |
% |
9,473,160 |
63.7 |
% |
8,088,870 |
68.1 |
% |
7,814,779 |
67.7 |
% |
|||||||||||||||||||
Short term investments, at fair value |
4,116,156 |
24.3 |
% |
4,579,171 |
28.0 |
% |
4,012,815 |
27.1 |
% |
2,586,520 |
21.8 |
% |
2,461,415 |
21.3 |
% |
|||||||||||||||||||
Total consolidated fixed maturity and short term investments, at fair value |
15,502,384 |
91.5 |
% |
15,058,837 |
91.9 |
% |
13,485,975 |
90.8 |
% |
10,675,390 |
89.9 |
% |
10,276,194 |
89.0 |
% |
|||||||||||||||||||
Equity investments trading, at fair value |
379,422 |
2.2 |
% |
273,646 |
1.7 |
% |
389,937 |
2.6 |
% |
310,252 |
2.6 |
% |
413,271 |
3.6 |
% |
|||||||||||||||||||
Other investments, at fair value |
962,109 |
5.7 |
% |
955,437 |
5.8 |
% |
878,373 |
5.9 |
% |
784,933 |
6.5 |
% |
738,919 |
6.4 |
% |
|||||||||||||||||||
Total managed investment portfolio |
16,843,915 |
99.4 |
% |
16,287,920 |
99.4 |
% |
14,754,285 |
99.3 |
% |
11,770,575 |
99.0 |
% |
11,428,384 |
99.0 |
% |
|||||||||||||||||||
Investments in other ventures, under equity method |
103,978 |
0.6 |
% |
100,396 |
0.6 |
% |
98,563 |
0.7 |
% |
115,172 |
1.0 |
% |
117,307 |
1.0 |
% |
|||||||||||||||||||
Total investments |
$ |
16,947,893 |
100.0 |
% |
$ |
16,388,316 |
100.0 |
% |
$ |
14,852,848 |
100.0 |
% |
$ |
11,885,747 |
100.0 |
% |
$ |
11,545,691 |
100.0 |
% |
||||||||||||||
Managed fixed maturity and short term investments portfolio (1) |
||||||||||||||||||||||||||||||||||
Total consolidated fixed maturity and short term investments, at fair value |
$ |
15,502,384 |
$ |
15,058,837 |
$ |
13,485,975 |
$ |
10,675,390 |
$ |
10,276,194 |
||||||||||||||||||||||||
Weighted average yield to maturity of fixed maturity and short term investments |
2.2 |
% |
2.4 |
% |
2.7 |
% |
3.2 |
% |
3.1 |
% |
||||||||||||||||||||||||
Average duration of fixed maturities and short term investments |
2.8 |
2.7 |
2.5 |
2.1 |
2.0 |
|||||||||||||||||||||||||||||
Retained fixed maturity and short term investments portfolio (2) |
||||||||||||||||||||||||||||||||||
Retained fixed maturity and short term investments, at fair value |
$ |
11,075,699 |
$ |
10,787,618 |
$ |
9,811,977 |
$ |
7,647,460 |
$ |
7,600,044 |
||||||||||||||||||||||||
Weighted average yield to maturity of retained fixed maturity and short term investments |
2.3 |
% |
2.5 |
% |
2.8 |
% |
3.4 |
% |
3.3 |
% |
||||||||||||||||||||||||
Average duration of retained fixed maturities and short term investments |
3.5 |
3.1 |
3.0 |
2.3 |
2.4 |
|||||||||||||||||||||||||||||
(1) |
Includes total consolidated fixed maturity and short term investments, at fair value, as presented on the Company's consolidated balance sheets. |
(2) |
Includes total consolidated fixed maturity and short term investments, at fair value, less the portion of fixed maturity and short term investments, at fair value attributable to redeemable noncontrolling interests, certain third party vehicles and joint ventures. See Comments on Regulation G for a reconciliation of non-GAAP financial measures. |
8 |
|
|
RenaissanceRe Holdings Ltd. | ||||||||||||||||||||||||||||||||||
Investment Portfolio - Fixed Maturity Investments | ||||||||||||||||||||||||||||||||||
Credit Quality of Fixed Maturity Investments |
September 30, 2019 |
June 30, 2019 |
March 31, 2019 |
December 31, 2018 |
September 30, 2018 |
|||||||||||||||||||||||||||||
AAA |
$ |
1,215,518 |
10.7 |
% |
$ |
1,121,450 |
10.7 |
% |
$ |
1,221,347 |
12.9 |
% |
$ |
769,757 |
9.5 |
% |
$ |
732,294 |
9.4 |
% |
||||||||||||||
AA |
6,699,860 |
58.8 |
% |
6,073,777 |
58.0 |
% |
5,302,980 |
56.0 |
% |
4,745,307 |
58.7 |
% |
4,496,120 |
57.5 |
% |
|||||||||||||||||||
A |
1,671,934 |
14.7 |
% |
1,548,705 |
14.8 |
% |
1,385,193 |
14.6 |
% |
928,205 |
11.5 |
% |
880,744 |
11.3 |
% |
|||||||||||||||||||
BBB |
967,928 |
8.5 |
% |
898,740 |
8.6 |
% |
758,720 |
8.0 |
% |
658,825 |
8.1 |
% |
631,290 |
8.1 |
% |
|||||||||||||||||||
Non-investment grade and not rated |
830,988 |
7.3 |
% |
836,994 |
7.9 |
% |
804,920 |
8.5 |
% |
986,776 |
12.2 |
% |
1,074,331 |
13.7 |
% |
|||||||||||||||||||
Total fixed maturity investments, at fair value |
$ |
11,386,228 |
100.0 |
% |
$ |
10,479,666 |
100.0 |
% |
$ |
9,473,160 |
100.0 |
% |
$ |
8,088,870 |
100.0 |
% |
$ |
7,814,779 |
100.0 |
% |
||||||||||||||
Maturity Profile of Fixed Maturity Investments |
||||||||||||||||||||||||||||||||||
Due in less than one year |
$ |
603,806 |
5.3 |
% |
$ |
616,578 |
5.9 |
% |
$ |
744,030 |
7.8 |
% |
$ |
507,728 |
6.3 |
% |
$ |
301,817 |
3.9 |
% |
||||||||||||||
Due after one through five years |
5,893,946 |
51.8 |
% |
5,176,183 |
49.4 |
% |
5,301,425 |
56.0 |
% |
4,762,712 |
58.9 |
% |
4,694,059 |
60.0 |
% |
|||||||||||||||||||
Due after five through ten years |
2,232,264 |
19.6 |
% |
1,896,176 |
18.1 |
% |
1,154,682 |
12.2 |
% |
1,056,087 |
13.1 |
% |
1,020,157 |
13.1 |
% |
|||||||||||||||||||
Due after ten years |
189,068 |
1.7 |
% |
456,835 |
4.3 |
% |
281,193 |
3.0 |
% |
76,746 |
0.9 |
% |
93,395 |
1.2 |
% |
|||||||||||||||||||
Mortgage-backed securities |
1,916,840 |
16.8 |
% |
1,809,282 |
17.3 |
% |
1,473,819 |
15.5 |
% |
1,378,854 |
17.0 |
% |
1,383,459 |
17.7 |
% |
|||||||||||||||||||
Asset-backed securities |
550,304 |
4.8 |
% |
524,612 |
5.0 |
% |
518,011 |
5.5 |
% |
306,743 |
3.8 |
% |
321,892 |
4.1 |
% |
|||||||||||||||||||
Total fixed maturity investments, at fair value |
$ |
11,386,228 |
100.0 |
% |
$ |
10,479,666 |
100.0 |
% |
$ |
9,473,160 |
100.0 |
% |
$ |
8,088,870 |
100.0 |
% |
$ |
7,814,779 |
100.0 |
% |
||||||||||||||
9 |
|
|
RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||||||||||||||||
Investment Portfolio - Weighted Average Yield to Maturity and Credit Rating | |||||||||||||||||||||||||||||||||||||
Credit Rating (1) |
|||||||||||||||||||||||||||||||||||||
September 30, 2019 |
Amortized Cost |
Fair Value |
% of Total Investment Portfolio |
Weighted Average Yield to Maturity |
AAA |
AA |
A |
BBB |
Non- Investment Grade |
Not Rated |
|||||||||||||||||||||||||||
Short term investments |
$ |
4,116,156 |
$ |
4,116,156 |
24.3 |
% |
1.7 |
% |
$ |
3,710,950 |
$ |
371,500 |
$ |
31,943 |
$ |
348 |
$ |
89 |
$ |
1,326 |
|||||||||||||||||
100.0 |
% |
90.2 |
% |
9.0 |
% |
0.8 |
% |
— |
% |
— |
% |
— |
% |
||||||||||||||||||||||||
Fixed maturity investments |
|||||||||||||||||||||||||||||||||||||
U.S. treasuries |
4,244,917 |
4,314,006 |
25.4 |
% |
1.7 |
% |
— |
4,314,006 |
— |
— |
— |
— |
|||||||||||||||||||||||||
Agencies |
|||||||||||||||||||||||||||||||||||||
Fannie Mae and Freddie Mac |
166,864 |
166,496 |
1.0 |
% |
1.9 |
% |
— |
166,496 |
— |
— |
— |
— |
|||||||||||||||||||||||||
Other agencies |
338,512 |
341,407 |
2.0 |
% |
2.1 |
% |
— |
341,407 |
— |
— |
— |
— |
|||||||||||||||||||||||||
Total agencies |
505,376 |
507,903 |
3.0 |
% |
2.0 |
% |
— |
507,903 |
— |
— |
— |
— |
|||||||||||||||||||||||||
Municipal |
1,581 |
1,629 |
— |
% |
3.0 |
% |
1,068 |
— |
561 |
— |
— |
— |
|||||||||||||||||||||||||
Non-U.S. government |
377,702 |
379,154 |
2.2 |
% |
1.7 |
% |
299,005 |
66,467 |
11,365 |
1,178 |
1,139 |
— |
|||||||||||||||||||||||||
Non-U.S. government-backed corporate |
260,469 |
263,170 |
1.6 |
% |
2.0 |
% |
91,117 |
127,295 |
43,456 |
— |
1,302 |
— |
|||||||||||||||||||||||||
Corporate |
3,384,905 |
3,453,222 |
20.4 |
% |
3.0 |
% |
44,030 |
274,553 |
1,606,601 |
914,903 |
596,752 |
16,383 |
|||||||||||||||||||||||||
Mortgage-backed |
|||||||||||||||||||||||||||||||||||||
Residential mortgage-backed |
|||||||||||||||||||||||||||||||||||||
Agency securities |
1,228,247 |
1,248,722 |
7.4 |
% |
2.5 |
% |
— |
1,248,722 |
— |
— |
— |
— |
|||||||||||||||||||||||||
Non-agency securities - Alt A |
198,243 |
210,133 |
1.2 |
% |
3.7 |
% |
12,949 |
7,014 |
2,906 |
8,405 |
146,854 |
32,005 |
|||||||||||||||||||||||||
Non-agency securities - Prime |
49,376 |
51,717 |
0.3 |
% |
3.3 |
% |
11,209 |
2,426 |
2,935 |
615 |
18,833 |
15,699 |
|||||||||||||||||||||||||
Total residential mortgage-backed |
1,475,866 |
1,510,572 |
8.9 |
% |
2.7 |
% |
24,158 |
1,258,162 |
5,841 |
9,020 |
165,687 |
47,704 |
|||||||||||||||||||||||||
Commercial mortgage-backed |
412,852 |
406,268 |
2.4 |
% |
2.5 |
% |
320,360 |
70,044 |
2,707 |
11,507 |
1,650 |
— |
|||||||||||||||||||||||||
Total mortgage-backed |
1,888,718 |
1,916,840 |
11.3 |
% |
2.7 |
% |
344,518 |
1,328,206 |
8,548 |
20,527 |
167,337 |
47,704 |
|||||||||||||||||||||||||
Asset-backed |
|||||||||||||||||||||||||||||||||||||
Collateralized loan obligations |
502,270 |
501,130 |
3.0 |
% |
3.5 |
% |
390,083 |
81,182 |
— |
29,865 |
— |
— |
|||||||||||||||||||||||||
Credit cards |
16,284 |
16,496 |
0.1 |
% |
2.0 |
% |
16,496 |
— |
— |
— |
— |
— |
|||||||||||||||||||||||||
Auto loans |
16,820 |
17,130 |
0.1 |
% |
2.1 |
% |
17,130 |
— |
— |
— |
— |
— |
|||||||||||||||||||||||||
Other |
15,352 |
15,548 |
0.1 |
% |
2.8 |
% |
12,071 |
248 |
1,403 |
1,455 |
— |
371 |
|||||||||||||||||||||||||
Total asset-backed |
550,726 |
550,304 |
3.3 |
% |
3.4 |
% |
435,780 |
81,430 |
1,403 |
31,320 |
— |
371 |
|||||||||||||||||||||||||
Total securitized assets |
2,439,444 |
2,467,144 |
14.6 |
% |
2.8 |
% |
780,298 |
1,409,636 |
9,951 |
51,847 |
167,337 |
48,075 |
|||||||||||||||||||||||||
Total fixed maturity investments |
11,214,394 |
11,386,228 |
67.2 |
% |
2.4 |
% |
1,215,518 |
6,699,860 |
1,671,934 |
967,928 |
766,530 |
64,458 |
|||||||||||||||||||||||||
100.0 |
% |
10.7 |
% |
58.8 |
% |
14.7 |
% |
8.5 |
% |
6.7 |
% |
0.6 |
% |
||||||||||||||||||||||||
Weighted average yield to maturity of fixed maturity and short term investments |
2.2 |
% |
|||||||||||||||||||||||||||||||||||
Equity investments trading |
379,422 |
2.2 |
% |
— |
— |
— |
— |
— |
379,422 |
||||||||||||||||||||||||||||
100.0 |
% |
— |
% |
— |
% |
— |
% |
— |
% |
— |
% |
100.0 |
% |
||||||||||||||||||||||||
Other investments |
|||||||||||||||||||||||||||||||||||||
Catastrophe bonds |
659,466 |
3.9 |
% |
— |
— |
— |
— |
659,466 |
— |
||||||||||||||||||||||||||||
Private equity investments |
266,048 |
1.6 |
% |
— |
— |
— |
— |
— |
266,048 |
||||||||||||||||||||||||||||
Senior secured bank loan funds |
24,567 |
0.1 |
% |
— |
— |
— |
— |
— |
24,567 |
||||||||||||||||||||||||||||
Hedge funds |
12,028 |
0.1 |
% |
— |
— |
— |
— |
— |
12,028 |
||||||||||||||||||||||||||||
Total other investments |
962,109 |
5.7 |
% |
— |
— |
— |
— |
659,466 |
302,643 |
||||||||||||||||||||||||||||
100.0 |
% |
— |
% |
— |
% |
— |
% |
— |
% |
68.5 |
% |
31.5 |
% |
||||||||||||||||||||||||
Investments in other ventures |
103,978 |
0.6 |
% |
— |
— |
— |
— |
— |
103,978 |
||||||||||||||||||||||||||||
100.0 |
% |
— |
% |
— |
% |
— |
% |
— |
% |
— |
% |
100.0 |
% |
||||||||||||||||||||||||
Total investment portfolio |
$ |
16,947,893 |
100.0 |
% |
$ |
4,926,468 |
$ |
7,071,360 |
$ |
1,703,877 |
$ |
968,276 |
$ |
1,426,085 |
$ |
851,827 |
|||||||||||||||||||||
100.0 |
% |
29.1 |
% |
41.7 |
% |
10.1 |
% |
5.7 |
% |
8.4 |
% |
5.0 |
% |
||||||||||||||||||||||||
(1) |
The credit ratings included in this table are those assigned by Standard & Poor’s Corporation ("S&P"). When ratings provided by S&P were not available, ratings from other nationally recognized rating agencies were used. The Company has grouped short term investments with an A-1+ and A-1 short term issue credit rating as AAA, short term investments with an A-2 short term issue credit rating as AA and short term investments with an A-3 short term issue credit rating as A.
|
10 |
|
|
RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||||||
Total Investment Result | |||||||||||||||||||||||||||
Three months ended |
Nine months ended |
||||||||||||||||||||||||||
September 30, 2019 |
June 30, 2019 |
March 31, 2019 |
December 31, 2018 |
September 30, 2018 |
September 30, 2019 |
September 30, 2018 |
|||||||||||||||||||||
Fixed maturity investments |
$ |
82,977 |
$ |
88,106 |
$ |
61,483 |
$ |
60,189 |
$ |
55,725 |
$ |
232,566 |
$ |
151,784 |
|||||||||||||
Short term investments |
15,061 |
17,807 |
11,844 |
11,231 |
9,403 |
44,712 |
22,340 |
||||||||||||||||||||
Equity investments trading |
1,326 |
916 |
1,027 |
1,383 |
903 |
3,269 |
3,091 |
||||||||||||||||||||
Other investments |
|||||||||||||||||||||||||||
Private equity investments |
(4,597 |
) |
10,309 |
2,454 |
(11,672 |
) |
8,723 |
8,166 |
12,149 |
||||||||||||||||||
Other |
22,538 |
630 |
7,245 |
(4,871 |
) |
8,665 |
30,413 |
27,346 |
|||||||||||||||||||
Cash and cash equivalents |
1,978 |
2,306 |
1,517 |
1,102 |
1,104 |
5,801 |
2,708 |
||||||||||||||||||||
119,283 |
120,074 |
85,570 |
57,362 |
84,523 |
324,927 |
219,418 |
|||||||||||||||||||||
Investment expenses |
(5,439 |
) |
(4,242 |
) |
(4,108 |
) |
(4,024 |
) |
(3,827 |
) |
(13,789 |
) |
(10,890 |
) |
|||||||||||||
Net investment income |
113,844 |
115,832 |
81,462 |
53,338 |
80,696 |
311,138 |
208,528 |
||||||||||||||||||||
Gross realized gains |
34,710 |
28,512 |
24,373 |
6,339 |
5,229 |
87,595 |
14,945 |
||||||||||||||||||||
Gross realized losses |
(4,609 |
) |
(7,217 |
) |
(22,943 |
) |
(23,399 |
) |
(15,327 |
) |
(34,769 |
) |
(67,699 |
) |
|||||||||||||
Net realized gains (losses) on fixed maturity investments |
30,101 |
21,295 |
1,430 |
(17,060 |
) |
(10,098 |
) |
52,826 |
(52,754 |
) |
|||||||||||||||||
Net unrealized gains (losses) on fixed maturity investments trading |
17,226 |
121,991 |
103,922 |
16,212 |
(8,730 |
) |
243,139 |
(73,522 |
) |
||||||||||||||||||
Net realized and unrealized gains (losses) on investments-related derivatives |
11,134 |
37,173 |
13,796 |
(8,021 |
) |
2,563 |
62,103 |
(763 |
) |
||||||||||||||||||
Net realized (losses) gains on equity investments trading |
(72 |
) |
31,899 |
(1,161 |
) |
5,898 |
21,259 |
30,666 |
21,841 |
||||||||||||||||||
Net unrealized (losses) gains on equity investments trading |
(26,451 |
) |
(18,355 |
) |
52,658 |
(85,683 |
) |
8,636 |
7,852 |
18,783 |
|||||||||||||||||
Net realized and unrealized gains (losses) on investments |
31,938 |
194,003 |
170,645 |
(88,654 |
) |
13,630 |
396,586 |
(86,415 |
) |
||||||||||||||||||
Total investment result |
$ |
145,782 |
$ |
309,835 |
$ |
252,107 |
$ |
(35,316 |
) |
$ |
94,326 |
$ |
707,724 |
$ |
122,113 |
||||||||||||
Total investment return - annualized |
3.6 |
% |
8.0 |
% |
8.0 |
% |
(1.2 |
)% |
3.3 |
% |
6.0 |
% |
1.5 |
% |
|||||||||||||
11 |
|
|
RenaissanceRe Holdings Ltd. | |||||||||||||||
Reserves for Claims and Claim Expenses | |||||||||||||||
Case Reserves |
Additional Case Reserves |
IBNR |
Total |
||||||||||||
September 30, 2019 |
|||||||||||||||
Property |
$ |
1,170,009 |
$ |
1,493,600 |
$ |
916,314 |
$ |
3,579,923 |
|||||||
Casualty and Specialty |
1,475,505 |
151,555 |
3,389,344 |
5,016,404 |
|||||||||||
Other |
2,944 |
— |
3,166 |
6,110 |
|||||||||||
Total |
$ |
2,648,458 |
$ |
1,645,155 |
$ |
4,308,824 |
$ |
8,602,437 |
|||||||
June 30, 2019 |
|||||||||||||||
Property |
$ |
1,191,810 |
$ |
1,635,595 |
$ |
791,628 |
$ |
3,619,033 |
|||||||
Casualty and Specialty |
1,450,805 |
128,701 |
3,280,133 |
4,859,639 |
|||||||||||
Other |
3,010 |
— |
3,166 |
6,176 |
|||||||||||
Total |
$ |
2,645,625 |
$ |
1,764,296 |
$ |
4,074,927 |
$ |
8,484,848 |
|||||||
March 31, 2019 |
|||||||||||||||
Property |
$ |
1,243,455 |
$ |
1,598,283 |
$ |
844,681 |
$ |
3,686,419 |
|||||||
Casualty and Specialty |
1,454,164 |
121,165 |
3,125,166 |
4,700,495 |
|||||||||||
Other |
1,404 |
— |
3,166 |
4,570 |
|||||||||||
Total (1) |
$ |
2,699,023 |
$ |
1,719,448 |
$ |
3,973,013 |
$ |
8,391,484 |
|||||||
December 31, 2018 |
|||||||||||||||
Property |
$ |
690,718 |
$ |
1,308,307 |
$ |
1,087,229 |
$ |
3,086,254 |
|||||||
Casualty and Specialty |
771,537 |
116,877 |
2,096,979 |
2,985,393 |
|||||||||||
Other |
1,458 |
— |
3,166 |
4,624 |
|||||||||||
Total |
$ |
1,463,713 |
$ |
1,425,184 |
$ |
3,187,374 |
$ |
6,076,271 |
|||||||
September 30, 2018 |
|||||||||||||||
Property |
$ |
610,932 |
$ |
744,391 |
$ |
774,220 |
$ |
2,129,543 |
|||||||
Casualty and Specialty |
773,732 |
102,631 |
1,940,244 |
2,816,607 |
|||||||||||
Other |
3,240 |
— |
3,108 |
6,348 |
|||||||||||
Total |
$ |
1,387,904 |
$ |
847,022 |
$ |
2,717,572 |
$ |
4,952,498 |
|||||||
(1) |
Included in the Company’s reserves for claims and claim expenses balance at March 31, 2019 is $2.4 billion of gross reserves for claims and claim expenses, at fair value, acquired as a result of the acquisition of the TMR Group Entities. |
12 |
|
|
RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||
Paid to Incurred Analysis | |||||||||||||||||||||||
Three months ended September 30, 2019 |
Three months ended September 30, 2018 |
||||||||||||||||||||||
Gross |
Recoveries |
Net |
Gross |
Recoveries |
Net |
||||||||||||||||||
Reserve for claims and claim expenses, beginning of period |
$ |
8,484,848 |
$ |
2,865,150 |
$ |
5,619,698 |
$ |
4,702,345 |
$ |
1,454,991 |
$ |
3,247,354 |
|||||||||||
Incurred claims and claim expenses |
|||||||||||||||||||||||
Current year |
800,627 |
135,660 |
664,967 |
516,637 |
96,711 |
419,926 |
|||||||||||||||||
Prior years |
(85,913 |
) |
(75,466 |
) |
(10,447 |
) |
(1,764 |
) |
7,652 |
(9,416 |
) |
||||||||||||
Total incurred claims and claim expenses |
714,714 |
60,194 |
654,520 |
514,873 |
104,363 |
410,510 |
|||||||||||||||||
Paid claims and claim expenses |
|||||||||||||||||||||||
Current year |
82,427 |
6,288 |
76,139 |
31,346 |
7,173 |
24,173 |
|||||||||||||||||
Prior years |
472,148 |
479,170 |
(7,022 |
) |
229,019 |
348,117 |
(119,098 |
) |
|||||||||||||||
Total paid claims and claim expenses |
554,575 |
485,458 |
69,117 |
260,365 |
355,290 |
(94,925 |
) |
||||||||||||||||
Foreign exchange |
(42,550 |
) |
(1,587 |
) |
(40,963 |
) |
(4,355 |
) |
(5 |
) |
(4,350 |
) |
|||||||||||
Reserve for claims and claim expenses, end of period |
$ |
8,602,437 |
$ |
2,438,299 |
$ |
6,164,138 |
$ |
4,952,498 |
$ |
1,204,059 |
$ |
3,748,439 |
|||||||||||
Nine months ended September 30, 2019 |
Nine months ended September 30, 2018 |
||||||||||||||||||||||
Gross |
Recoveries |
Net |
Gross |
Recoveries |
Net |
||||||||||||||||||
Reserve for claims and claim expenses, beginning of period |
$ |
6,076,271 |
$ |
2,372,221 |
$ |
3,704,050 |
$ |
5,080,408 |
$ |
1,586,630 |
$ |
3,493,778 |
|||||||||||
Incurred claims and claim expenses |
|||||||||||||||||||||||
Current year |
1,627,026 |
277,578 |
1,349,448 |
1,067,071 |
227,711 |
839,360 |
|||||||||||||||||
Prior years |
177,863 |
192,383 |
(14,520 |
) |
(249,511 |
) |
(52,531 |
) |
(196,980 |
) |
|||||||||||||
Total incurred claims and claim expenses |
1,804,889 |
469,961 |
1,334,928 |
817,560 |
175,180 |
642,380 |
|||||||||||||||||
Paid claims and claim expenses |
|||||||||||||||||||||||
Current year |
138,368 |
9,897 |
128,471 |
59,378 |
11,303 |
48,075 |
|||||||||||||||||
Prior years |
1,484,390 |
920,851 |
563,539 |
873,132 |
546,440 |
326,692 |
|||||||||||||||||
Total paid claims and claim expenses |
1,622,758 |
930,748 |
692,010 |
932,510 |
557,743 |
374,767 |
|||||||||||||||||
Amounts acquired (1) |
2,388,210 |
529,435 |
1,858,775 |
— |
— |
— |
|||||||||||||||||
Foreign exchange (2) |
(44,175 |
) |
(2,570 |
) |
(41,605 |
) |
(12,960 |
) |
(8 |
) |
(12,952 |
) |
|||||||||||
Reserve for claims and claim expenses, end of period |
$ |
8,602,437 |
$ |
2,438,299 |
$ |
6,164,138 |
$ |
4,952,498 |
$ |
1,204,059 |
$ |
3,748,439 |
|||||||||||
(1) |
Represents the fair value of the TMR Group Entities reserves for claims and claim expenses, net of reinsurance recoverables, acquired at March 22, 2019.
|
(2) |
Reflects the impact of the foreign exchange revaluation of net reserves denominated in non-U.S. dollars as at the balance sheet date.
|
13 |
|
|
RenaissanceRe Holdings Ltd. | |||||||||||||||||||||
Fee Income | |||||||||||||||||||||
The table below reflects the total fee income earned through third-party capital management as well as various joint ventures and certain structured retrocession agreements to which the Company is a party. Joint ventures include DaVinciRe Holdings Ltd., Top Layer Reinsurance Ltd. ("Top Layer Re"), Vermeer Reinsurance Ltd. and certain entities investing in Langhorne Holdings LLC. Managed funds include RenaissanceRe Upsilon Fund Ltd. and RenaissanceRe Medici Fund Ltd. Structured reinsurance products and other include Fibonacci Reinsurance Ltd., as well as certain other vehicles and reinsurance contracts which transfer risk to capital.
Three months ended |
Nine months ended |
||||||||||||||||||||||||||
September 30, 2019 |
June 30, 2019 |
March 31, 2019 |
December 31, 2018 |
September 30, 2018 |
September 30, 2019 |
September 30, 2018 |
|||||||||||||||||||||
Management fee income |
|||||||||||||||||||||||||||
Joint ventures |
$ |
11,434 |
$ |
9,519 |
$ |
9,735 |
$ |
3,628 |
$ |
9,265 |
$ |
30,688 |
$ |
22,759 |
|||||||||||||
Managed funds |
4,558 |
6,467 |
3,797 |
3,051 |
3,260 |
14,822 |
8,411 |
||||||||||||||||||||
Structured reinsurance products and other |
8,765 |
9,976 |
8,245 |
8,213 |
8,530 |
26,986 |
25,099 |
||||||||||||||||||||
Total management fee income |
24,757 |
25,962 |
21,777 |
14,892 |
21,055 |
72,496 |
56,269 |
||||||||||||||||||||
Performance fee income (loss) |
|||||||||||||||||||||||||||
Joint ventures |
5,278 |
5,218 |
2,538 |
3,193 |
853 |
13,034 |
11,900 |
||||||||||||||||||||
Managed funds |
1,688 |
470 |
298 |
(4,430 |
) |
2,539 |
2,456 |
4,492 |
|||||||||||||||||||
Structured reinsurance products and other |
275 |
8,541 |
4,191 |
(5,020 |
) |
(1,568 |
) |
13,007 |
8,600 |
||||||||||||||||||
Total performance fee income (loss) (1) |
7,241 |
14,229 |
7,027 |
(6,257 |
) |
1,824 |
28,497 |
24,992 |
|||||||||||||||||||
Total fee income |
$ |
31,998 |
$ |
40,191 |
$ |
28,804 |
$ |
8,635 |
$ |
22,879 |
$ |
100,993 |
$ |
81,261 |
|||||||||||||
(1) |
Performance fees are based on the performance of the individual vehicles or products, and may be negative in a particular period if, for example, large losses occur, which can potentially result in no performance fees or the reversal of previously accrued performance fees. |
14 |
|
|
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Earnings per Share | |||||||||||||||||||
Three months ended |
|||||||||||||||||||
(common shares in thousands) |
September 30, 2019 |
June 30, 2019 |
March 31, 2019 |
December 31, 2018 |
September 30, 2018 |
||||||||||||||
Numerator: |
|||||||||||||||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders |
$ |
36,698 |
$ |
367,854 |
$ |
273,717 |
$ |
(83,906 |
) |
$ |
32,681 |
||||||||
Amount allocated to participating common shareholders (1) |
(446 |
) |
(4,393 |
) |
(3,121 |
) |
(157 |
) |
(294 |
) |
|||||||||
$ |
36,252 |
$ |
363,461 |
$ |
270,596 |
$ |
(84,063 |
) |
$ |
32,387 |
|||||||||
Denominator: |
|||||||||||||||||||
Denominator for basic income (loss) per RenaissanceRe common share - |
|||||||||||||||||||
Weighted average common shares |
43,462 |
43,483 |
42,065 |
40,111 |
39,624 |
||||||||||||||
Per common share equivalents of employee stock options and non-vested shares |
75 |
38 |
26 |
— |
13 |
||||||||||||||
Denominator for diluted income (loss) per RenaissanceRe common share - |
|||||||||||||||||||
Adjusted weighted average common shares and assumed conversions |
43,537 |
43,521 |
42,091 |
40,111 |
39,637 |
||||||||||||||
Basic income (loss) per RenaissanceRe common share |
$ |
0.83 |
$ |
8.36 |
$ |
6.43 |
$ |
(2.10 |
) |
$ |
0.82 |
||||||||
Diluted income (loss) per RenaissanceRe common share |
$ |
0.83 |
$ |
8.35 |
$ |
6.43 |
$ |
(2.10 |
) |
$ |
0.82 |
||||||||
Nine months ended |
|||||||||||||||||||
(common shares in thousands) |
September 30, 2019 |
September 30, 2018 |
|||||||||||||||||
Numerator: |
|||||||||||||||||||
Net income available to RenaissanceRe common shareholders |
$ |
678,269 |
$ |
281,182 |
|||||||||||||||
Amount allocated to participating common shareholders (1) |
(8,074 |
) |
(2,977 |
) |
|||||||||||||||
$ |
670,195 |
$ |
278,205 |
||||||||||||||||
Denominator: |
|||||||||||||||||||
Denominator for basic income per RenaissanceRe common share - |
|||||||||||||||||||
Weighted average common shares |
43,003 |
39,606 |
|||||||||||||||||
Per common share equivalents of employee stock options and non-vested shares |
46 |
21 |
|||||||||||||||||
Denominator for diluted income per RenaissanceRe common share - |
|||||||||||||||||||
Adjusted weighted average common shares and assumed conversions |
43,049 |
39,627 |
|||||||||||||||||
Basic income per RenaissanceRe common share |
$ |
15.58 |
$ |
7.02 |
|||||||||||||||
Diluted income per RenaissanceRe common share |
$ |
15.57 |
$ |
7.02 |
|||||||||||||||
(1) |
Represents earnings attributable to holders of non-vested shares issued pursuant to the Company's 2001 Stock Incentive Plan, 2016 Long-Term Incentive Plan and to the Company's non-employee directors. |
15 |
|
|
RenaissanceRe Holdings Ltd. | |||||||
Ratings | |||||||
A.M. Best |
S&P |
Moody's |
Fitch |
||||
Renaissance Reinsurance Ltd. (1) |
A+ |
A+ |
A1 |
A+ |
|||
DaVinci Reinsurance Ltd. (1) |
A |
A+ |
A3 |
— |
|||
Renaissance Reinsurance of Europe Unlimited Company (1) |
A+ |
A+ |
— |
— |
|||
Renaissance Reinsurance U.S. Inc. (1) |
A+ |
A+ |
— |
— |
|||
RenaissanceRe Europe AG (1) |
A+ |
A+ |
— |
— |
|||
RenaissanceRe Specialty U.S. (1) |
A+ |
A+ |
— |
— |
|||
Top Layer Reinsurance Ltd. (1) |
A+ |
AA |
— |
— |
|||
Vermeer Reinsurance Ltd. (1) |
A |
— |
— |
— |
|||
RenaissanceRe Syndicate 1458 |
— |
— |
— |
— |
|||
Lloyd's Overall Market Rating (2) |
A |
A+ |
— |
AA- |
|||
RenaissanceRe (3) |
Very Strong |
Very Strong |
— |
— |
|||
Ratings as of October 25, 2019.
(1) The A.M. Best, S&P, Moody's and Fitch ratings for the companies set forth in the table above reflect the insurer's financial strength rating and, in addition to the insurer’s financial strength rating, the S&P ratings reflect the applicable insurer's long-term issuer credit rating.
(2) The A.M. Best, S&P and Fitch ratings for the Lloyd's Overall Market Rating represent RenaissanceRe Syndicate 1458's financial strength rating.
(3) The A.M. Best rating for RenaissanceRe reflects a very strong Enterprise Risk Management ("ERM") score within A.M. Best’s credit ratings methodology. The S&P rating for RenaissanceRe represents the rating on its ERM practices.
16 |
|
|
RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||||||
Gross Premiums Written | |||||||||||||||||||||||||||
Three months ended |
Nine months ended |
||||||||||||||||||||||||||
September 30, 2019 |
June 30, 2019 |
March 31, 2019 |
December 31, 2018 |
September 30, 2018 |
September 30, 2019 |
September 30, 2018 |
|||||||||||||||||||||
Property Segment |
|||||||||||||||||||||||||||
Catastrophe |
$ |
102,779 |
$ |
602,656 |
$ |
845,213 |
$ |
108,937 |
$ |
212,330 |
$ |
1,550,648 |
$ |
1,240,387 |
|||||||||||||
Other property |
211,621 |
236,544 |
187,171 |
90,981 |
89,083 |
635,336 |
320,621 |
||||||||||||||||||||
Property segment gross premiums written |
$ |
314,400 |
$ |
839,200 |
$ |
1,032,384 |
$ |
199,918 |
$ |
301,413 |
$ |
2,185,984 |
$ |
1,561,008 |
|||||||||||||
Casualty and Specialty Segment |
|||||||||||||||||||||||||||
General casualty (1) |
$ |
191,447 |
$ |
258,357 |
$ |
153,334 |
$ |
75,797 |
$ |
97,026 |
610,563 |
377,300 |
|||||||||||||||
Professional liability (2) |
151,754 |
167,206 |
149,377 |
119,391 |
111,536 |
460,912 |
366,460 |
||||||||||||||||||||
Financial lines (3) |
111,459 |
91,202 |
127,356 |
102,167 |
69,253 |
330,017 |
250,735 |
||||||||||||||||||||
Other (4) |
92,008 |
120,943 |
101,844 |
50,482 |
46,449 |
314,795 |
207,169 |
||||||||||||||||||||
Casualty and Specialty segment gross premiums written |
$ |
546,668 |
$ |
637,708 |
$ |
531,911 |
$ |
347,837 |
$ |
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. |
17 |
|
|
RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||
Property Segment Supplemental Underwriting Results | |||||||||||||||||||||||
Three months ended September 30, 2019 |
Three months ended September 30, 2018 |
||||||||||||||||||||||
Catastrophe |
Other Property |
Total |
Catastrophe |
Other Property |
Total |
||||||||||||||||||
Gross premiums written |
$ |
102,779 |
$ |
211,621 |
$ |
314,400 |
$ |
212,330 |
$ |
89,083 |
$ |
301,413 |
|||||||||||
Net premiums written |
$ |
96,264 |
$ |
206,718 |
$ |
302,982 |
$ |
147,196 |
$ |
85,436 |
$ |
232,632 |
|||||||||||
Net premiums earned |
$ |
241,408 |
$ |
202,924 |
$ |
444,332 |
$ |
210,260 |
$ |
82,799 |
$ |
293,059 |
|||||||||||
Net claims and claim expenses incurred (recovered) |
159,510 |
178,750 |
338,260 |
192,652 |
73,205 |
265,857 |
|||||||||||||||||
Acquisition expenses |
30,074 |
49,447 |
79,521 |
20,771 |
24,753 |
45,524 |
|||||||||||||||||
Operational expenses |
27,682 |
6,556 |
34,238 |
20,896 |
4,681 |
25,577 |
|||||||||||||||||
Underwriting income (loss) |
$ |
24,142 |
$ |
(31,829 |
) |
$ |
(7,687 |
) |
$ |
(24,059 |
) |
$ |
(19,840 |
) |
$ |
(43,899 |
) |
||||||
Net claims and claim expenses incurred - current accident year |
$ |
193,002 |
$ |
152,878 |
$ |
345,880 |
$ |
194,282 |
$ |
73,740 |
$ |
268,022 |
|||||||||||
Net claims and claim expenses incurred - prior accident years |
(33,492 |
) |
25,872 |
(7,620 |
) |
(1,630 |
) |
(535 |
) |
(2,165 |
) |
||||||||||||
Net claims and claim expenses incurred - total |
$ |
159,510 |
$ |
178,750 |
$ |
338,260 |
$ |
192,652 |
$ |
73,205 |
$ |
265,857 |
|||||||||||
Net claims and claim expense ratio - current accident year |
79.9 |
% |
75.3 |
% |
77.8 |
% |
92.4 |
% |
89.1 |
% |
91.5 |
% |
|||||||||||
Net claims and claim expense ratio - prior accident years |
(13.8 |
)% |
12.8 |
% |
(1.7 |
)% |
(0.8 |
)% |
(0.7 |
)% |
(0.8 |
)% |
|||||||||||
Net claims and claim expense ratio - calendar year |
66.1 |
% |
88.1 |
% |
76.1 |
% |
91.6 |
% |
88.4 |
% |
90.7 |
% |
|||||||||||
Underwriting expense ratio |
23.9 |
% |
27.6 |
% |
25.6 |
% |
19.8 |
% |
35.6 |
% |
24.3 |
% |
|||||||||||
Combined ratio |
90.0 |
% |
115.7 |
% |
101.7 |
% |
111.4 |
% |
124.0 |
% |
115.0 |
% |
|||||||||||
Nine months ended September 30, 2019 |
Nine months ended September 30, 2018 |
||||||||||||||||||||||
Catastrophe |
Other Property |
Total |
Catastrophe |
Other Property |
Total |
||||||||||||||||||
Gross premiums written |
$ |
1,550,648 |
$ |
635,336 |
$ |
2,185,984 |
$ |
1,240,387 |
$ |
320,621 |
$ |
1,561,008 |
|||||||||||
Net premiums written |
$ |
859,408 |
$ |
551,919 |
$ |
1,411,327 |
$ |
620,046 |
$ |
264,495 |
$ |
884,541 |
|||||||||||
Net premiums earned |
$ |
644,172 |
$ |
515,918 |
$ |
1,160,090 |
$ |
477,310 |
$ |
244,936 |
$ |
722,246 |
|||||||||||
Net claims and claim expenses incurred (recovered) |
183,273 |
357,944 |
541,217 |
89,903 |
132,292 |
222,195 |
|||||||||||||||||
Acquisition expenses |
89,480 |
133,491 |
222,971 |
54,785 |
72,310 |
127,095 |
|||||||||||||||||
Operational expenses |
80,131 |
19,415 |
99,546 |
62,913 |
13,020 |
75,933 |
|||||||||||||||||
Underwriting income |
$ |
291,288 |
$ |
5,068 |
$ |
296,356 |
$ |
269,709 |
$ |
27,314 |
$ |
297,023 |
|||||||||||
Net claims and claim expenses incurred - current accident year |
$ |
234,667 |
$ |
301,530 |
$ |
536,197 |
$ |
237,788 |
$ |
157,279 |
$ |
395,067 |
|||||||||||
Net claims and claim expenses incurred - prior accident years |
(51,394 |
) |
56,414 |
5,020 |
(147,885 |
) |
(24,987 |
) |
(172,872 |
) |
|||||||||||||
Net claims and claim expenses incurred - total |
$ |
183,273 |
$ |
357,944 |
$ |
541,217 |
$ |
89,903 |
$ |
132,292 |
$ |
222,195 |
|||||||||||
Net claims and claim expense ratio - current accident year |
36.4 |
% |
58.4 |
% |
46.2 |
% |
49.8 |
% |
64.2 |
% |
54.7 |
% |
|||||||||||
Net claims and claim expense ratio - prior accident years |
(7.9 |
)% |
11.0 |
% |
0.5 |
% |
(31.0 |
)% |
(10.2 |
)% |
(23.9 |
)% |
|||||||||||
Net claims and claim expense ratio - calendar year |
28.5 |
% |
69.4 |
% |
46.7 |
% |
18.8 |
% |
54.0 |
% |
30.8 |
% |
|||||||||||
Underwriting expense ratio |
26.3 |
% |
29.6 |
% |
27.8 |
% |
24.7 |
% |
34.8 |
% |
28.1 |
% |
|||||||||||
Combined ratio |
54.8 |
% |
99.0 |
% |
74.5 |
% |
43.5 |
% |
88.8 |
% |
58.9 |
% |
|||||||||||
18 |
|
|
RenaissanceRe Holdings Ltd.
Comments on Regulation G
In addition to the GAAP financial measures set forth in this Financial Supplement, the Company has included certain non-GAAP financial measures within the meaning of Regulation G. The Company has consistently provided these financial measures in previous investor communications and the Company's management believes that these measures are important to investors and other interested persons, and that investors and such other persons benefit from having a consistent basis for comparison between quarters and for comparison with other companies within the industry. These measures may not, however, be comparable to similarly titled measures used by companies outside of the insurance industry. Investors are cautioned not to place undue reliance on these non-GAAP measures in assessing the Company's overall financial performance.
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 investments attributable to RenaissanceRe common shareholders, transaction and integration expenses associated with the acquisition of the TMR Group Entities and the income tax expense or benefit associated with these exclusions to “net income (loss) available (attributable) to RenaissanceRe common shareholders". 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, equity investments trading and investments-related derivatives; certain transaction and integration expenses associated with the acquisition of the TMR Group Entities; and the associated income tax expense or benefit of these adjustments. 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:
RenaissanceRe Holdings Ltd.
Comments on Regulation G
Three months ended |
Nine months ended |
||||||||||||||||||||||||||
September 30, 2019 |
June 30, 2019 |
March 31, 2019 |
December 31, 2018 |
September 30, 2018 |
September 30, 2019 |
September 30, 2018 |
|||||||||||||||||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders |
$ |
36,698 |
$ |
367,854 |
$ |
273,717 |
$ |
(83,906 |
) |
$ |
32,681 |
$ |
678,269 |
$ |
281,182 |
||||||||||||
Adjustment for net realized and unrealized (gains) losses on investments attributable to RenaissanceRe common shareholders (1) |
(30,683 |
) |
(177,418 |
) |
(153,164 |
) |
88,987 |
(16,371 |
) |
(361,265 |
) |
65,218 |
|||||||||||||||
Adjustment for transaction and integration expenses associated with the acquisition of the TMR Group Entities |
4,022 |
14,483 |
25,520 |
3,296 |
— |
44,025 |
— |
||||||||||||||||||||
Adjustment for income tax expense (benefit) (2) |
2,929 |
7,653 |
8,287 |
(3,580 |
) |
1,536 |
18,869 |
(2,170 |
) |
||||||||||||||||||
Operating income available to RenaissanceRe common shareholders |
$ |
12,966 |
$ |
212,572 |
$ |
154,360 |
$ |
4,797 |
$ |
17,846 |
$ |
379,898 |
$ |
344,230 |
|||||||||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted |
$ |
0.83 |
$ |
8.35 |
$ |
6.43 |
$ |
(2.10 |
) |
$ |
0.82 |
$ |
15.57 |
$ |
7.02 |
||||||||||||
Adjustment for net realized and unrealized (gains) losses on investments attributable to RenaissanceRe common shareholders (1) |
(0.70 |
) |
(4.08 |
) |
(3.64 |
) |
2.22 |
(0.41 |
) |
(8.39 |
) |
1.65 |
|||||||||||||||
Adjustment for transaction and integration expenses associated with the acquisition of the TMR Group Entities |
0.09 |
0.33 |
0.61 |
0.08 |
— |
1.02 |
— |
||||||||||||||||||||
Adjustment for income tax expense (benefit) (2) |
0.07 |
0.18 |
0.20 |
(0.09 |
) |
0.04 |
0.44 |
(0.05 |
) |
||||||||||||||||||
Operating income available to RenaissanceRe common shareholders per common share - diluted |
$ |
0.29 |
$ |
4.78 |
$ |
3.60 |
$ |
0.11 |
$ |
0.45 |
$ |
8.64 |
$ |
8.62 |
|||||||||||||
Return on average common equity - annualized |
2.8 |
% |
28.9 |
% |
23.5 |
% |
(7.8 |
)% |
3.1 |
% |
18.2 |
% |
9.1 |
% |
|||||||||||||
Adjustment for net realized and unrealized (gains) losses on investments attributable to RenaissanceRe common shareholders (1) |
(2.3 |
)% |
(13.9 |
)% |
(13.2 |
)% |
8.2 |
% |
(1.5 |
)% |
(9.7 |
)% |
2.1 |
% |
|||||||||||||
Adjustment for transaction and integration expenses associated with the acquisition of the TMR Group Entities |
0.3 |
% |
1.1 |
% |
2.2 |
% |
0.3 |
% |
— |
% |
1.2 |
% |
— |
% |
|||||||||||||
Adjustment for income tax expense (benefit) (2) |
0.2 |
% |
0.6 |
% |
0.8 |
% |
(0.3 |
)% |
0.1 |
% |
0.5 |
% |
(0.1 |
)% |
|||||||||||||
Operating return on average common equity - annualized |
1.0 |
% |
16.7 |
% |
13.3 |
% |
0.4 |
% |
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 (loss) available (attributable) to RenaissanceRe common shareholders. The income tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors.
|
19 |
|
|
RenaissanceRe Holdings Ltd.
Comments on Regulation G
The Company has included in this Financial Supplement “tangible book value per common share” and “tangible book value per common share plus accumulated dividends”. “Tangible book value per common share” is defined as book value per common share excluding goodwill and intangible assets per share. “Tangible book value per common share plus accumulated dividends” is defined as book value per common share excluding goodwill and intangible assets per share, plus accumulated dividends. The Company's management believes “tangible book value per common share” and “tangible book value per common share plus accumulated dividends” are useful to investors because they provide a more accurate measure of the realizable value of shareholder returns, excluding the impact of goodwill and intangible assets. The following 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:
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.
|
20 |
|
|
RenaissanceRe Holdings Ltd.
Comments on Regulation G
The Company has included in this Financial Supplement “retained fixed maturity and short term investments, at fair value.” “Retained fixed maturity and short term investments, at fair value" is defined as total consolidated fixed maturity and short term investments, at fair value, less the portion of fixed maturity and short term investments, at fair value attributable to redeemable noncontrolling interests, certain third party vehicles and joint ventures. “Retained fixed maturity and short term investments, at fair value” differs from total consolidated fixed maturity and short term investments, at fair value, which the Company believes is the most directly comparable GAAP measure, due to the exclusion of fixed maturity and short term investments, at fair value, attributable to redeemable noncontrolling interests, certain third party vehicles and joint ventures. The Company's management believes “retained fixed maturity and short term investments, at fair value” is useful to investors and other interested parties because it provides a measure of the portion of the Company's fixed maturity and short term investments, at fair value, that impacts the investment results included in net income (loss) available (attributable) to RenaissanceRe common shareholders. A reconciliation of total consolidated fixed maturity and short term investments, at fair value, to “retained fixed maturity and short term investments, at fair value” is included below:
At |
|||||||||||||||||||
September 30, 2019 |
June 30, 2019 |
March 31, 2019 |
December 31, 2018 |
September 30, 2018 |
|||||||||||||||
Fixed maturity investments, at fair value |
$ |
11,386,228 |
$ |
10,479,666 |
$ |
9,473,160 |
$ |
8,088,870 |
$ |
7,814,779 |
|||||||||
Short term investments, at fair value |
4,116,156 |
4,579,171 |
4,012,815 |
2,586,520 |
2,461,415 |
||||||||||||||
Total consolidated fixed maturity and short term investments, at fair value |
$ |
15,502,384 |
$ |
15,058,837 |
$ |
13,485,975 |
$ |
10,675,390 |
$ |
10,276,194 |
|||||||||
Adjustment for fixed maturity and short term investments attributable to redeemable noncontrolling interests, certain third party vehicles and joint ventures |
(4,426,685 |
) |
(4,271,219 |
) |
(3,673,998 |
) |
(3,027,930 |
) |
(2,676,150 |
) |
|||||||||
Retained fixed maturity and short term investments, at fair value |
$ |
11,075,699 |
$ |
10,787,618 |
$ |
9,811,977 |
$ |
7,647,460 |
$ |
7,600,044 |
|||||||||
21 |
|
|