July 26, 2022 - 10-Q: Quarterly report pursuant to Section 13 or 15(d)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-14428

RENAISSANCERE HOLDINGS LTD.

(Exact Name Of Registrant As Specified In Its Charter)


Bermuda			98-0141974
(State or Other Jurisdiction of Incorporation or Organization)			(I.R.S. Employer Identification Number)

Renaissance House, 12 Crow Lane, Pembroke, Bermuda HM 19

(Address of Principal Executive Offices) (Zip Code)

(441) 295-4513

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol	Name of each exchange on which registered
Common Shares, Par Value $1.00 per share	RNR	New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a Series F 5.750% Preference Share, Par Value $1.00 per share	RNR PRF	New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a Series G 4.20% Preference Share, Par Value $1.00 per share	RNR PRG	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒, Accelerated filer ☐, Non-accelerated filer ☐, Smaller reporting company ☐, Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of Common Shares, par value U.S. $1.00 per share, outstanding at July 22, 2022 was 43,705,376.

RENAISSANCERE HOLDINGS LTD.

TABLE OF CONTENTS


		Page
	GLOSSARY OF DEFINED TERMS	3
	NOTE ON FORWARD-LOOKING STATEMENTS	4

PART I
ITEM 1.	FINANCIAL STATEMENTS	6






ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	56
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	98
ITEM 4.	CONTROLS AND PROCEDURES	98

PART II
ITEM 1.	LEGAL PROCEEDINGS	99
ITEM 1A.	RISK FACTORS	99
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	99
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	99
ITEM 4.	MINE SAFETY DISCLOSURES	100
ITEM 5.	OTHER INFORMATION	100
ITEM 6.	EXHIBITS	101

SIGNATURES		102

GLOSSARY OF DEFINED TERMS

In this Form 10-Q, references to “RenaissanceRe” refer to RenaissanceRe Holdings Ltd. (the parent company) and references to “we,” “us,” “our” and the “Company” refer to RenaissanceRe Holdings Ltd. together with its subsidiaries, unless the context requires otherwise.


“ASC”			Accounting Standards Codification
“A.M. Best”			A.M. Best Company, Inc.
“DaVinci”			DaVinci Reinsurance Ltd.
“DaVinciRe”			DaVinciRe Holdings Ltd.
“ERM”			enterprise risk management
“Exchange Act”			the Securities Exchange Act of 1934, as amended
“FAL”			a deposit that must be submitted to support the underwriting capacity of a member of Lloyd’s
“FASB”			Financial Accounting Standards Board
“FCR”			financial condition report
“Fitch”			Fitch Ratings Ltd.
“Fontana”			Fontana Holdings L.P. and its subsidiaries
“Form 10-K”			Annual Report on Form 10-K
“Form 10-Q”			this Quarterly Report on Form 10-Q for the three months ended June 30, 2022
“IRS”			United States Internal Revenue Service
“Medici”			RenaissanceRe Medici Fund Ltd.
“Moody’s”			Moody’s Investors Service
“Renaissance Reinsurance”			Renaissance Reinsurance Ltd.
“Renaissance Reinsurance of Europe”			Renaissance Reinsurance of Europe Unlimited Company
“Renaissance Reinsurance U.S.”			Renaissance Reinsurance U.S. Inc.
“RenaissanceRe”			RenaissanceRe Holdings Ltd.
“RenaissanceRe Finance”			RenaissanceRe Finance, Inc.
“RenaissanceRe Specialty U.S.”			RenaissanceRe Specialty U.S. Ltd.
“RREAG”			RenaissanceRe Europe AG
“S&P”			Standard and Poor’s Rating Services
“SEC”			U.S. Securities and Exchange Commission
“Securities Act”			Securities Act of 1933, as amended
“Syndicate 1458”			RenaissanceRe Syndicate 1458
“Top Layer Re”			Top Layer Reinsurance Ltd.
“Tower Hill Companies”			collectively, our investments in a group of Tower Hill affiliated companies including Bluegrass Insurance Management, LLC, Tower Hill Claims Service, LLC, Tower Hill Holdings, Inc., Tower Hill Insurance Group, LLC, Tower Hill Insurance Managers, LLC, Tower Hill Re Holdings, Inc., Tower Hill Signature Insurance Holdings, Inc., Tower Hill Risk Management LLC and Tomoka Re Holdings, Inc.
“U.K.”			United Kingdom
“U.S.”			United States of America
“Upsilon Fund”			RenaissanceRe Upsilon Fund Ltd.
“Upsilon RFO”			Upsilon RFO Re Ltd.
“Vermeer”			Vermeer Reinsurance Ltd.

NOTE ON FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q of RenaissanceRe Holdings Ltd. contains forward-looking statements within the meaning of Section 27A of the Securities Act, and Section 21E of the Exchange Act. Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which, with respect to future business decisions, are subject to change. These uncertainties and contingencies can affect actual results and could cause actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, us. In particular, statements using words such as “may,” “should,” “estimate,” “expect,” “anticipate,” “intend,” “believe,” “predict,” “potential,” or words of similar import generally involve forward-looking statements. For example, we may include certain forward-looking statements in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” with regard to trends in results, prices, volumes, operations, investment results, margins, combined ratios, fees, reserves, market conditions, risk management and exchange rates. This Form 10-Q also contains forward-looking statements with respect to our business and industry, such as those relating to our strategy and management objectives, market standing and product volumes, competition and new entrants in our industry, industry capital, insured losses from loss events, government initiatives and regulatory matters affecting the reinsurance and insurance industries.

The inclusion of forward-looking statements in this report should not be considered as a representation by us or any other person that our current objectives or plans will be achieved. Numerous factors could cause our actual results to differ materially from those addressed by the forward-looking statements, including the following:

•our exposure to natural and non-natural catastrophic events and circumstances and the variance they may cause in our financial results;

•the effect of climate change on our business, including the trend towards increasingly frequent and severe climate events;

•the effectiveness of our claims and claim expense reserving process;

•the effect of emerging claims and coverage issues;

•the historically cyclical nature of the (re)insurance industries;

•collection on claimed retrocessional coverage, and new retrocessional reinsurance being available on acceptable terms;

•the ability of our ceding companies and delegated authority counterparties to accurately assess the risks they underwrite;

•our ability to maintain our financial strength ratings;

•the performance of our investment portfolio and financial market volatility;

•the effects of inflation;

•the highly competitive nature of our industry, resulting in consolidation of competitors, customers and (re)insurance brokers, and our reliance on a small and decreasing number of brokers;

•the impact of large non-recurring contracts and reinstatement premiums on our financial results;

•our ability to attract and retain key executives and employees;

•the effect of cybersecurity risks, including technology breaches or failure;

•our ability to successfully implement our business, strategies and initiatives, and the success of any of our strategic investments or acquisitions, including our ability to manage our operations as our product and geographical diversity increases;

•our exposure to credit loss from counterparties;

•our need to make many estimates and judgments in the preparation of our financial statements;

•our ability to effectively manage capital on behalf of investors in joint ventures or other entities we manage;

•changes to the accounting rules and regulatory systems applicable to our business, including changes in Bermuda laws or regulations or as a result of increased global regulation of the insurance and reinsurance industries;

•other political, regulatory or industry initiatives adversely impacting us;

•our ability to comply with covenants in our debt agreements;

•a contention by the IRS that any of our Bermuda subsidiaries are subject to taxation in the U.S.;

•the effects of possible future tax reform legislation and regulations, including changes to the tax treatment of our shareholders or investors in our joint ventures or other entities we manage;

•our ability to determine any impairments taken on our investments;

•the uncertainty of the continuing and future impact of the COVID-19 pandemic, including measures taken in response thereto and the effect of legislative, regulatory and judicial influences on our potential reinsurance, insurance and investment exposures, or other effects that it may have;

•foreign currency exchange rate fluctuations;

•our ability to raise capital if necessary;

•our ability to comply with applicable sanctions and foreign corrupt practices laws;

•our dependence on the ability of our operating subsidiaries to declare and pay dividends;

•aspects of our corporate structure that may discourage third-party takeovers and other transactions; and

•difficulties investors may have in serving process or enforcing judgments against us in the U.S.

As a consequence, our future financial condition and results may differ from those expressed in any forward-looking statements made by or on behalf of us. The factors listed above, which are discussed in more detail in our filings with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2021 and Item 1A of this Quarterly Report on Form 10-Q, should not be construed as exhaustive. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to revise or update forward-looking statements to reflect new information, events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

PART I FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS


			Page
Consolidated Balance Sheets at June 30 , 2022 (unaudited) and December 31, 2021			7
Consolidated Statements of Operations for the three and si x months ended June 30 , 2022 and 2021			8
Consolidated Statements of Comprehensive Income (Loss) for the three an d si x months ended June 30 , 2022 and 2021			9
Consolidated Statements of Changes in Shareholders’ Equity for the three and six months ended June 30 , 2022 and 2021			10
Consolidated Statements of Cash Flows for the six months ended June 30 , 2022 and 2021			11
Notes to the Consolidated Financial Statements			12
Note 1. Organization			12
Note 2. Significant Accounting Policies			13
Note 3. Investments			14
Note 4. Fair Value Measurements			17
Note 5. Reinsurance			28
Note 6. Reserve for Claims and Claim Expenses			29
Note 7. Debt and Credit Facilities			34
Note 8. Noncontrolling Interests			35
Note 9. Variable Interest Entities			38
Note 10. Shareholders’ Equity			41
Note 11. Earnings per Share			43
Note 12. Segment Reporting			44
Note 13. Derivative Instruments			48
Note 14. Commitments and Contingencies and Other Items			54
Note 15. Subsequent Events			55

RenaissanceRe Holdings Ltd. and Subsidiaries

Consolidated Balance Sheets

(in thousands of United States Dollars, except share and per share amounts)


	June 30, 2022		December 31, 2021
Assets	(Unaudited)		(Audited)
Fixed maturity investments trading, at fair value – amortized cost $13,749,254 at June 30, 2022 (December 31, 2021 – $13,552,579)	$	13,085,367	$	13,507,131

Short term investments, at fair value	4,429,483		5,298,385
Equity investments trading, at fair value	692,747		546,016
Other investments, at fair value	2,314,232		1,993,059
Investments in other ventures, under equity method	75,979		98,068
Total investments	20,597,808		21,442,659
Cash and cash equivalents	1,398,095		1,859,019
Premiums receivable	5,408,217		3,781,542
Prepaid reinsurance premiums	1,354,565		854,722
Reinsurance recoverable	4,206,459		4,268,669
Accrued investment income	75,302		55,740
Deferred acquisition costs and value of business acquired	1,089,426		849,160
Receivable for investments sold	279,442		380,442
Other assets	384,436		224,053
Goodwill and other intangible assets	240,647		243,496

Total assets	$	35,034,397	$	33,959,502
Liabilities, Noncontrolling Interests and Shareholders’ Equity
Liabilities
Reserve for claims and claim expenses	$	13,442,806	$	13,294,630
Unearned premiums	5,117,217		3,531,213
Debt	1,169,393		1,168,353
Reinsurance balances payable	4,385,834		3,860,963
Payable for investments purchased	517,753		1,170,568
Other liabilities	309,938		755,441

Total liabilities	24,942,941		23,781,168
Commitments and contingencies
Redeemable noncontrolling interests	4,352,797		3,554,053
Shareholders’ Equity
Preference shares: $1.00 par value – 30,000 shares issued and outstanding at June 30, 2022 (December 31, 2021 – 30,000)	750,000		750,000
Common shares: $1.00 par value – 43,881,035 shares issued and outstanding at June 30, 2022 (December 31, 2021 – 44,444,831)	43,881		44,445
Additional paid-in capital	479,085		608,121
Accumulated other comprehensive income (loss)	(15,168)		(10,909)
Retained earnings	4,480,861		5,232,624
Total shareholders’ equity attributable to RenaissanceRe	5,738,659		6,624,281


Total liabilities, noncontrolling interests and shareholders’ equity	$	35,034,397	$	33,959,502

See accompanying notes to the consolidated financial statements

RenaissanceRe Holdings Ltd. and Subsidiaries

Consolidated Statements of Operations

For the three and six months ended June 30, 2022 and 2021

(in thousands of United States Dollars, except per share amounts) (Unaudited)


	Three months ended				Six months ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Revenues
Gross premiums written	$	2,464,639	$	2,094,158	$	5,407,603	$	4,746,600
Net premiums written	$	1,863,616	$	1,512,292	$	4,028,833	$	3,336,375
Decrease (increase) in unearned premiums	(407,233)		(319,502)		(1,086,025)		(989,749)
Net premiums earned	1,456,383		1,192,790		2,942,808		2,346,626
Net investment income	107,211		80,925		190,902		160,729
Net foreign exchange gains (losses)	(50,821)		3,234		(66,307)		(19,554)
Equity in earnings (losses) of other ventures	7,383		8,732		993		3,174
Other income (loss)	923		586		2,116		2,757
Net realized and unrealized gains (losses) on investments	(654,107)		191,018		(1,327,124)		(154,545)



Total revenues	866,972		1,477,285		1,743,388		2,339,187
Expenses
Net claims and claim expenses incurred	706,239		520,021		1,547,972		1,387,072
Acquisition expenses	361,238		285,590		737,745		552,824
Operational expenses	72,520		58,203		140,427		113,514
Corporate expenses	12,352		10,125		24,854		20,530
Interest expense	11,895		11,833		23,850		23,745
Total expenses	1,164,244		885,772		2,474,848		2,097,685
Income (loss) before taxes	(297,272)		591,513		(731,460)		241,502
Income tax benefit (expense)	30,534		(13,862)		67,241		5,654


Net income (loss)	(266,738)		577,651		(664,219)		247,156
Net (income) loss attributable to redeemable noncontrolling interests	(49,331)		(113,544)		(37,419)		(66,694)
Net income (loss) attributable to RenaissanceRe	(316,069)		464,107		(701,638)		180,462
Dividends on preference shares	(8,844)		(7,289)		(17,688)		(14,578)
Net income (loss) available (attributable) to RenaissanceRe common shareholders	$	(324,913)	$	456,818	$	(719,326)	$	165,884


Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – basic	$	(7.53)	$	9.36	$	(16.64)	$	3.36


Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – diluted	$	(7.53)	$	9.35	$	(16.64)	$	3.35
Dividends per common share	$	0.37	$	0.36	$	0.74	$	0.72

See accompanying notes to the consolidated financial statements

RenaissanceRe Holdings Ltd. and Subsidiaries

Consolidated Statements of Comprehensive Income (Loss)

For the three and six months ended June 30, 2022 and 2021

(in thousands of United States Dollars) (Unaudited)


	Three months ended				Six months ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Comprehensive income (loss)
Net income (loss)	$	(266,738)	$	577,651	$	(664,219)	$	247,156
Change in net unrealized gains (losses) on investments, net of tax	(3,251)		(1,022)		(2,417)		(2,833)
Foreign currency translation adjustments, net of tax	917		(657)		(1,842)		1,414

Comprehensive income (loss)	(269,072)		575,972		(668,478)		245,737
Net (income) loss attributable to redeemable noncontrolling interests	(49,331)		(113,544)		(37,419)		(66,694)

Comprehensive income (loss) attributable to redeemable noncontrolling interests	(49,331)		(113,544)		(37,419)		(66,694)
Comprehensive income (loss) attributable to RenaissanceRe	$	(318,403)	$	462,428	$	(705,897)	$	179,043

See accompanying notes to the consolidated financial statements

RenaissanceRe Holdings Ltd. and Subsidiaries

Consolidated Statements of Changes in Shareholders’ Equity

For the three and six months ended June 30, 2022 and 2021

(in thousands of United States Dollars) (Unaudited)


	Three months ended				Six months ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Preference shares
Beginning balance	$	750,000	$	525,000	$	750,000	$	525,000
Issuance of shares	—		—		—		—
Repurchase of shares	—		—		—		—
Ending balance	750,000		525,000		750,000		525,000
Common shares
Beginning balance	44,193		49,970		44,445		50,811
Issuance of shares	—		—		—		—
Repurchase of shares	(298)		(1,944)		(875)		(3,020)
Issuance of restricted stock awards	(14)		—		311		235
Ending balance	43,881		48,026		43,881		48,026
Additional paid-in capital
Beginning balance	513,631		1,450,627		608,121		1,623,206
Issuance of shares	—		—		—		—
Repurchase of shares	(43,799)		(307,071)		(136,656)		(477,640)
Offering expenses	—		—		—		—
Change in redeemable noncontrolling interests	(3,126)		(825)		(3,989)		(2,690)
Issuance of restricted stock awards	12,379		11,150		11,609		11,005
Ending balance	479,085		1,153,881		479,085		1,153,881
Accumulated other comprehensive income (loss)
Beginning balance	(12,834)		(12,382)		(10,909)		(12,642)
Change in net unrealized gains (loss) on investments, net of tax	(3,251)		(1,022)		(2,417)		(2,833)
Foreign currency translation adjustments, net of tax	917		(657)		(1,842)		1,414

Ending balance	(15,168)		(14,061)		(15,168)		(14,061)
Retained earnings
Beginning balance	4,821,970		5,065,122		5,232,624		5,373,873

Net income (loss)	(266,738)		577,651		(664,219)		247,156
Net (income) loss attributable to redeemable noncontrolling interests	(49,331)		(113,544)		(37,419)		(66,694)

Dividends on common shares	(16,196)		(17,180)		(32,437)		(34,997)
Dividends on preference shares	(8,844)		(7,289)		(17,688)		(14,578)
Ending balance	4,480,861		5,504,760		4,480,861		5,504,760

Total shareholders’ equity	$	5,738,659	$	7,217,606	$	5,738,659	$	7,217,606

See accompanying notes to the consolidated financial statements

RenaissanceRe Holdings Ltd. and Subsidiaries

Consolidated Statements of Cash Flows

For the six months ended June 30, 2022 and 2021

(in thousands of United States Dollars) (Unaudited)


	Six months ended
	June 30, 2022		June 30, 2021
Cash flows provided by (used in) operating activities
Net income (loss)	$	(664,219)	$	247,156
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities
Amortization, accretion and depreciation	9,583		(7,927)
Equity in undistributed (earnings) losses of other ventures	13,961		15,848
Net realized and unrealized (gains) losses on investments	1,220,758		160,077




Change in:
Premiums receivable	(1,626,675)		(1,586,861)
Prepaid reinsurance premiums	(499,843)		(537,459)
Reinsurance recoverable	62,210		(261,628)
Deferred acquisition costs and value of business acquired	(240,266)		(250,405)
Reserve for claims and claim expenses	148,176		563,604
Unearned premiums	1,586,004		1,520,661
Reinsurance balances payable	524,871		1,001,489
Other	(265,391)		(529,386)
Net cash provided by (used in) operating activities	269,169		335,169
Cash flows provided by (used in) investing activities
Proceeds from sales and maturities of fixed maturity investments trading	10,527,219		8,921,362
Purchases of fixed maturity investments trading	(11,743,171)		(9,251,778)


Net sales (purchases) of equity investments trading	(286,399)		123,242
Net sales (purchases) of short term investments	939,736		624,792
Net sales (purchases) of other investments	(397,523)		(286,511)
Net sales (purchases) of investments in other ventures	2,391		(15,342)
Return of investment from investment in other ventures	2,213		2,622




Net cash provided by (used in) investing activities	(955,534)		118,387
Cash flows provided by (used in) financing activities
Dividends paid – RenaissanceRe common shares	(32,437)		(34,997)
Dividends paid – preference shares	(17,780)		(14,578)

RenaissanceRe common share repurchases	(141,356)		(480,660)






Net third-party redeemable noncontrolling interest share transactions	408,774		140,439
Taxes paid on withholding shares	(10,848)		(9,897)

Net cash provided by (used in) financing activities	206,353		(399,693)
Effect of exchange rate changes on foreign currency cash	19,088		(920)
Net increase (decrease) in cash and cash equivalents	(460,924)		52,943

Cash and cash equivalents, beginning of period	1,859,019		1,736,813
Cash and cash equivalents, end of period	$	1,398,095	$	1,789,756

See accompanying notes to the consolidated financial statements

RENAISSANCERE HOLDINGS LTD. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2022

(unless otherwise noted, amounts in tables expressed in thousands of United States (“U.S.”) dollars,

except shares, per share amounts and percentages) (Unaudited)

NOTE 1. ORGANIZATION

This report on Form 10-Q should be read in conjunction with RenaissanceRe’s Annual Report on Form 10-K (“Form 10-K”) for the fiscal year ended December 31, 2021. RenaissanceRe was formed under the laws of Bermuda on June 7, 1993. Together with its wholly owned and majority-owned subsidiaries, joint ventures and managed funds, the Company provides property, casualty and specialty reinsurance and certain insurance solutions to its customers.

•Renaissance Reinsurance Ltd. (“Renaissance Reinsurance”), a Bermuda-domiciled reinsurance company, is the Company’s principal reinsurance subsidiary and provides property, casualty and specialty reinsurance coverages to insurers and reinsurers on a worldwide basis.

•Renaissance Reinsurance U.S. Inc. is a reinsurance company domiciled in the state of Maryland that provides property, casualty and specialty reinsurance coverages to insurers and reinsurers, primarily in the Americas.

•RenaissanceRe Syndicate 1458 (“Syndicate 1458”) is the Company’s Lloyd’s syndicate. RenaissanceRe Corporate Capital (UK) Limited, a wholly owned subsidiary of RenaissanceRe, is Syndicate 1458’s sole corporate member. RenaissanceRe Syndicate Management Ltd., a wholly owned subsidiary of RenaissanceRe, is the managing agent for Syndicate 1458.

•RenaissanceRe Europe AG (“RREAG”), a Swiss-domiciled reinsurance company, which has branches in Australia, Bermuda, the U.K. and the U.S., provides property, casualty and specialty reinsurance coverages to insurers and reinsurers on a worldwide basis.

•RenaissanceRe Specialty U.S. Ltd., a Bermuda-domiciled insurer, which operates subject to U.S. federal income tax.

•DaVinci Reinsurance Ltd. (“DaVinci”), a wholly-owned subsidiary of DaVinciRe Holdings Ltd. (“DaVinciRe”), is a managed joint venture formed by the Company to principally write property catastrophe reinsurance and certain casualty and specialty reinsurance lines of business on a global basis.

•Fontana Holdings L.P. and its subsidiaries (collectively, “Fontana”) are a managed joint venture formed by the Company to write casualty and specialty risks in line with the Company’s book of business. Fontana launched effective April 1, 2022.

•Top Layer Reinsurance Ltd. is a managed joint venture formed by the Company to write high excess non-U.S. property catastrophe reinsurance.

•RenaissanceRe Underwriting Managers U.S. LLC, is licensed as a reinsurance intermediary broker in the State of Connecticut and underwrites specialty treaty reinsurance solutions on both a quota share and excess of loss basis on behalf of affiliates.

•Renaissance Underwriting Managers, Ltd. (“RUM”), a wholly-owned subsidiary of RenaissanceRe, acts as exclusive underwriting manager for certain of our joint ventures or managed funds in return for fee-based income and profit participation.

•RenaissanceRe Fund Management Ltd. (“RFM”) is a wholly-owned Bermuda exempted company and acts as the exclusive investment fund manager for several of the Company’s joint ventures or managed funds, in return for a management fee, a performance based incentive fee, or both. RFM is registered as an Exempt Reporting Adviser with the Securities and Exchange Commission and serves as the investment adviser to third-party investors in the various private investment partnerships and insurance-related investment products offered by the Company.

•RenaissanceRe Medici Fund Ltd. (“Medici”) is an exempted company, incorporated in Bermuda and registered as an institutional fund. Medici invests, primarily on behalf of third-party investors, in various instruments that have returns primarily tied to property catastrophe risk.

•Upsilon RFO Re Ltd. (“Upsilon RFO”), an exempted company incorporated in Bermuda and registered as a segregated accounts company and as a collateralized insurer, is a managed fund formed by the Company principally to provide additional capacity to the worldwide aggregate and per-occurrence primary and retrocessional property catastrophe excess of loss market.

•RenaissanceRe Upsilon Fund Ltd., an exempted company incorporated in Bermuda and registered as a segregated accounts company and a Class A Professional Fund, provides a fund structure through which third-party investors can invest in reinsurance risk managed by the Company.

•Vermeer Reinsurance Ltd. (“Vermeer”), an exempted company incorporated in Bermuda and registered as a Class 3B insurer, provides capacity focused on risk remote layers in the U.S. property catastrophe market. The Company maintains a majority voting control of Vermeer, while Stichting Pensioenfonds Zorg en Welzijn (“PFZW”), a pension fund represented by PGGM Vermogensbeheer B.V., a Dutch pension fund manager, retains economic benefits.

•Mona Lisa Re Ltd. (“Mona Lisa Re”), a Bermuda domiciled special purpose insurer (“SPI”), provides reinsurance capacity to subsidiaries of RenaissanceRe, namely Renaissance Reinsurance and DaVinci, through reinsurance agreements which are collateralized and funded by Mona Lisa Re through the issuance of one or more series of principal-at-risk variable rate notes.

•Fibonacci Reinsurance Ltd. (“Fibonacci Re”), an exempted company incorporated in Bermuda and registered as a SPI, provides collateralized capacity to Renaissance Reinsurance and its affiliates. Fibonacci Re raises capital from third-party investors and the Company, via private placements of participating notes which are listed on the Bermuda Stock Exchange.

•The Company and Reinsurance Group of America, Incorporated are engaged in an initiative (“Langhorne”) to source third-party capital to support reinsurers targeting large in-force life and annuity blocks. Langhorne Holdings LLC (“Langhorne Holdings”) was incorporated to own and manage certain reinsurance entities within Langhorne. Langhorne Partners LLC (“Langhorne Partners”) is the general partner for Langhorne and manages the third-parties investing in Langhorne Holdings.

•Following the acquisition of Tokio Millennium Re AG and certain associated entities and subsidiaries (collectively, “TMR”) on March 22, 2019, the Company managed Shima Reinsurance Ltd. (“Shima Re”), Norwood Re Ltd. (“Norwood Re”) and Blizzard Re Ltd. (“Blizzard,” together with Shima Re and Norwood Re, the “TMR managed third-party capital vehicles”), which provided third-party investors with access to reinsurance risk. The TMR managed third-party capital vehicles no longer write new business. The Company ceased providing management services to Blizzard effective November 1, 2020, and to Shima Re and Norwood Re effective December 1, 2020.

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES

There have been no material changes to the Company’s significant accounting policies as described in its Form 10-K for the year ended December 31, 2021, except as described below.

BASIS OF PRESENTATION

These consolidated financial statements have been prepared on the basis of accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information and in conformity with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, these unaudited consolidated financial statements reflect all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of the Company’s financial position and results of operations as at the end of and for the periods presented. All significant intercompany accounts and transactions have been eliminated from these statements.

Certain comparative information has been reclassified to conform to the current presentation. Because of the seasonality of the Company’s business, the results of operations and cash flows for any interim period will not necessarily be indicative of the results of operations and cash flows for the full fiscal year or subsequent quarters.

USE OF ESTIMATES IN FINANCIAL STATEMENTS

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported and disclosed amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. The major estimates reflected in the Company’s consolidated financial statements include, but are not limited to, the reserve for claims and claim expenses; reinsurance recoverable and premiums receivable, including provisions for reinsurance recoverable and premiums receivable to reflect expected credit losses; estimates of written and earned premiums; fair value, including the fair value of investments, financial instruments and derivatives; impairment charges; deferred acquisition costs and the value of business acquired and the Company’s deferred tax valuation allowance.

NOTE 3. INVESTMENTS

Fixed Maturity Investments Trading

The following table summarizes the fair value of fixed maturity investments trading:



	June 30, 2022		December 31, 2021
U.S. treasuries	$	6,012,779	$	6,247,779
Agencies	366,752		361,684

Non-U.S. government	450,590		549,613


Corporate (1)	3,901,805		3,689,286

Residential mortgage-backed	902,508		955,301
Commercial mortgage-backed	443,070		634,925
Asset-backed	1,007,863		1,068,543
Total fixed maturity investments trading	$	13,085,367	$	13,507,131

(1)Corporate fixed maturity investments include non-U.S. government-backed corporate fixed maturity investments.

Contractual maturities of fixed maturity investments trading are described in the following table. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.




June 30, 2022	Amortized Cost		Fair Value
Due in less than one year	$	466,719	$	458,871
Due after one through five years	6,996,959		6,771,940
Due after five through ten years	3,543,454		3,271,012
Due after ten years	271,530		230,103
Mortgage-backed	1,421,935		1,345,578
Asset-backed	1,048,657		1,007,863
Total	$	13,749,254	$	13,085,367

Equity Investments Trading

The following table summarizes the fair value of equity investments trading:

Form: 10-Q

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