November 7, 2024 - 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 September 30, 2024

☐ 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 November 4, 2024 was 51,939,955.

RENAISSANCERE HOLDINGS LTD.

TABLE OF CONTENTS


		Page
	GLOSSARY OF DEFINED TERMS	3
	NOTE ON FORWARD-LOOKING STATEMENTS	5

PART I
ITEM 1.	FINANCIAL STATEMENTS	7






ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	58
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	106
ITEM 4.	CONTROLS AND PROCEDURES	106

PART II
ITEM 1.	LEGAL PROCEEDINGS	107
ITEM 1A.	RISK FACTORS	107
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	107
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	108
ITEM 4.	MINE SAFETY DISCLOSURES	108
ITEM 5.	OTHER INFORMATION	108
ITEM 6.	EXHIBITS	109

SIGNATURES		110

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.


“2023 Large Loss Events”			includes: (1) the wildfires in Hawaii in August 2023 and Hurricane Idalia; (2) a series of large, severe weather events in Texas and other Southern and Central U.S. states in June 2023; (3) the earthquakes in Southern and Central Turkey in February 2023, Cyclone Gabrielle, the flooding in northern New Zealand in January and February 2023, and various wind and thunderstorm events in both the Southern and Midwest U.S. during March 2023 and (4) certain aggregate loss contracts triggered during 2023.
“2024 Large Loss Events”			Hurricane Helene and the Other 2024 Large Loss Events
“AIG”			American International Group, Inc., a Delaware corporation and NYSE-listed company (together with its affiliates and subsidiaries)
“ASC”			Accounting Standards Codification
“AlphaCat Managers”			AlphaCat Managers Ltd.
“A.M. Best”			A.M. Best Company, Inc.
“Baltimore Bridge Collapse”			the collapse of the Francis Scott Key Bridge in Baltimore following a collision with a cargo ship in March 2024
“DaVinci”			DaVinciRe Holdings Ltd. and its subsidiaries
“DaVinci Reinsurance”			DaVinci Reinsurance 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 quarterly period ended September 30, 2024
“IRS”			United States Internal Revenue Service
“Medici”			RenaissanceRe Medici Fund Ltd.
“Moody’s”			Moody’s Investors Service
“NYSE”			New York Stock Exchange
“OECD”			Organisation for Economic Co-operation and Development
“Other 2024 Large Loss Events”			the Baltimore Bridge Collapse, a series of severe convective storms impacting the Southern and Midwest United States, the Hualien earthquake which impacted Taiwan in April 2024, a severe hailstorm which impacted Calgary in August 2024, Hurricane Debby, Hurricane Beryl, and certain aggregate loss contracts triggered during 2024
“Other Q3 2024 Large Loss Events”			a severe hailstorm which impacted Calgary in August 2024, Hurricane Debby, and Hurricane Beryl
“Q3 2024 Large Loss Events”			Hurricane Helene and the Other Q3 2024 Large Loss Events
“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
“Stock Purchase Agreement”			Stock Purchase Agreement, dated May 22, 2023, among RenaissanceRe Holdings Ltd. and AIG, as amended
“Syndicate 1458”			RenaissanceRe Syndicate 1458
“Top Layer”			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 Risk Management LLC and Tomoka Re Holdings, Inc.
“TWFG”			TWFG, Inc. and its subsidiaries
“U.K.”			United Kingdom
“U.S.”			United States of America
“Upsilon Diversified”			RenaissanceRe Upsilon Diversified Fund, a segregated account of Upsilon Fund
“Upsilon Fund”			RenaissanceRe Upsilon Fund Ltd.
“Upsilon RFO”			Upsilon RFO Re Ltd.
“Validus”			Validus Holdings, Validus Specialty, and their respective subsidiaries that were acquired in the Validus Acquisition (including Validus Re and Validus Holdings (UK) Ltd), collectively
“Validus Acquisition”			The acquisitions under the Stock Purchase Agreement, together with the other transactions contemplated in the Stock Purchase Agreement
“Validus Business”			the collective business of Validus
“Validus Holdings”			Validus Holdings, Ltd.
“Validus Re”			Validus Reinsurance, Ltd.
“Validus Specialty”			Validus Specialty, LLC
“Validus Switzerland”			Validus Reinsurance (Switzerland) 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; the impact of the Validus Acquisition on our business; the consequences of our strategic decisions; the performance of our underwriting portfolio, Capital Partners unit, and investment portfolio; and the impact of general economic conditions such as changes in inflation and interest rates on our results of operations. 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, plans and expectations regarding our response and ability to adapt to changing economic conditions, 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 (re)insurance industries, and our integration of, and realization of benefits from, the Validus Acquisition.

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 performance of our investment portfolio and financial market volatility;

•the effects of inflation;

•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;

•our reliance on a small number of brokers;

•the highly competitive nature of our industry;

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

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

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

•our ability to successfully implement our business, strategies and initiatives;

•our exposure to credit loss from counterparties;

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

•our exposure to risks associated with our management of 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 and U.S. laws or regulations;

•the effect of current or future macroeconomic or geopolitical events or trends, including the ongoing conflicts between Russia and Ukraine, and in the Middle East;

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

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

•the effect of adverse economic factors, including changes in the prevailing interest rates;

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

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

•the effects of new or possible future tax reform legislation and regulations in the jurisdictions in which we operate, including recent changes in Bermuda tax law;

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

•our ability to raise capital on acceptable terms, including through debt instruments, the capital markets, and third-party investments in our joint ventures and managed fund partners;

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

•our dependence on capital distributions from our operating subsidiaries.

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 Form 10-K for the year ended December 31, 2023, filed with the SEC on February 21, 2024, and Item 1A of this 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 September 30, 2024 (unaudited) and December 31, 2023			8
Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023			9
Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended Sep tember 30, 2024 and 2023			10
Consolidated Statements of Changes in Shareholders’ Equity for the three and nine months ended September 30, 2024 and 2023			11
Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023			12
Notes to the Consolidated Financial Statements			13
Note 1. Organization			13
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			30
Note 7. Debt and Credit Facilities			34
Note 8. Noncontrolling Interests			35
Note 9. Variable Interest Entities			39
Note 10. Shareholders’ Equity			44
Note 11. Earnings per Share			45
Note 12. Segment Reporting			46
Note 13. Derivative Instruments			49
Note 14. Commitments and Contingencies and Other Items			56

Note 15. Subsequent Events			57

RenaissanceRe Holdings Ltd. and Subsidiaries

Consolidated Balance Sheets

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


	September 30, 2024		December 31, 2023
Assets	(Unaudited)		(Audited)
Fixed maturity investments trading, at fair value – amortized cost $23,927,291 at September 30, 2024 (December 31, 2023 – $20,872,450)	$	24,287,185	$	20,877,108

Short term investments, at fair value – amortized cost $4,302,346 at September 30, 2024 (December 31, 2023 – $4,603,340)	4,302,991		4,604,079
Equity investments, at fair value	133,091		106,766
Other investments, at fair value	4,172,451		3,515,566
Investments in other ventures, under equity method	137,959		112,624
Total investments	33,033,677		29,216,143
Cash and cash equivalents	1,572,911		1,877,518
Premiums receivable	8,226,928		7,280,682
Prepaid reinsurance premiums	1,197,533		924,777
Reinsurance recoverable	4,738,637		5,344,286
Accrued investment income	223,003		205,713
Deferred acquisition costs and value of business acquired	1,719,100		1,751,437
Deferred tax asset	650,712		685,040
Receivable for investments sold	332,048		622,197
Other assets	344,383		323,960
Goodwill and other intangible assets	717,478		775,352

Total assets	$	52,756,410	$	49,007,105
Liabilities, Noncontrolling Interests and Shareholders’ Equity
Liabilities
Reserve for claims and claim expenses	$	21,221,194	$	20,486,869
Unearned premiums	7,041,149		6,136,135
Debt	1,935,928		1,958,655
Reinsurance balances payable	3,179,282		3,186,174
Payable for investments purchased	606,601		661,611
Other liabilities	668,673		1,021,872

Total liabilities	34,652,827		33,451,316
Commitments and contingencies
Redeemable noncontrolling interests	6,860,999		6,100,831
Shareholders’ Equity
Preference shares: $1.00 par value – 30,000 shares issued and outstanding at September 30, 2024 (December 31, 2023 – 30,000)	750,000		750,000
Common shares: $1.00 par value – 51,940,355 shares issued and outstanding at September 30, 2024 (December 31, 2023 – 52,693,887)	51,940		52,694
Additional paid-in capital	1,959,061		2,144,459
Accumulated other comprehensive income (loss)	(13,027)		(14,211)
Retained earnings	8,494,610		6,522,016
Total shareholders’ equity attributable to RenaissanceRe	11,242,584		9,454,958


Total liabilities, noncontrolling interests and shareholders’ equity	$	52,756,410	$	49,007,105

See accompanying notes to the consolidated financial statements

RenaissanceRe Holdings Ltd. and Subsidiaries

Consolidated Statements of Operations

For the three and nine months ended September 30, 2024 and 2023

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


	Three months ended				Nine months ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Revenues
Gross premiums written	$	2,400,136	$	1,618,443	$	9,816,315	$	7,060,325
Net premiums written	$	2,162,504	$	1,421,260	$	8,200,588	$	5,880,766
Decrease (increase) in unearned premiums	420,465		334,616		(632,394)		(659,078)
Net premiums earned	2,582,969		1,755,876		7,568,194		5,221,688
Net investment income	423,859		329,108		1,225,479		876,148
Net foreign exchange gains (losses)	16,804		(25,886)		(27,694)		(53,877)
Equity in earnings (losses) of other ventures	5,718		10,842		32,435		28,072
Other income (loss)	680		(5,866)		799		(6,296)
Net realized and unrealized gains (losses) on investments	943,745		(228,087)		602,507		(171,417)



Total revenues	3,973,775		1,835,987		9,401,720		5,894,318
Expenses
Net claims and claim expenses incurred	1,373,614		861,576		3,849,239		2,593,987
Acquisition expenses	690,338		425,745		1,965,697		1,280,547
Operational expenses	125,261		82,751		339,484		240,716
Corporate expenses	26,078		17,143		100,489		53,357
Interest expense	23,809		22,951		70,522		49,980
Total expenses	2,239,100		1,410,166		6,325,431		4,218,587
Income (loss) before taxes	1,734,675		425,821		3,076,289		1,675,731
Income tax benefit (expense)	(102,012)		(9,295)		(96,536)		(44,139)


Net income (loss)	1,632,663		416,526		2,979,753		1,631,592
Net (income) loss attributable to redeemable noncontrolling interests	(450,176)		(213,695)		(919,734)		(655,986)
Net income (loss) attributable to RenaissanceRe	1,182,487		202,831		2,060,019		975,606
Dividends on preference shares	(8,843)		(8,843)		(26,531)		(26,531)
Net income (loss) available (attributable) to RenaissanceRe common shareholders	$	1,173,644	$	193,988	$	2,033,488	$	949,075


Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – basic	$	22.68	$	3.81	$	38.95	$	20.17


Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – diluted	$	22.62	$	3.80	$	38.84	$	20.13

See accompanying notes to the consolidated financial statements

RenaissanceRe Holdings Ltd. and Subsidiaries

Consolidated Statements of Comprehensive Income (Loss)

For the three and nine months ended September 30, 2024 and 2023

(in thousands of United States Dollars) (Unaudited)


	Three months ended				Nine months ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Comprehensive income (loss)
Net income (loss)	$	1,632,663	$	416,526	$	2,979,753	$	1,631,592
Change in net unrealized gains (losses) on investments, net of tax	84		(199)		250		1,109
Foreign currency translation adjustments, net of tax	298		(257)		934		(153)

Comprehensive income (loss)	1,633,045		416,070		2,980,937		1,632,548
Net (income) loss attributable to redeemable noncontrolling interests	(450,176)		(213,695)		(919,734)		(655,986)

Comprehensive (income) loss attributable to redeemable noncontrolling interests	(450,176)		(213,695)		(919,734)		(655,986)
Comprehensive income (loss) attributable to RenaissanceRe	$	1,182,869	$	202,375	$	2,061,203	$	976,562

See accompanying notes to the consolidated financial statements

RenaissanceRe Holdings Ltd. and Subsidiaries

Consolidated Statements of Changes in Shareholders’ Equity

For the three and nine months ended September 30, 2024 and 2023

(in thousands of United States Dollars) (Unaudited)


	Three months ended				Nine months ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Preference shares
Beginning balance	$	750,000	$	750,000	$	750,000	$	750,000


Ending balance	750,000		750,000		750,000		750,000
Common shares
Beginning balance	52,421		51,182		52,694		43,718
Issuance of shares	—		—		—		7,245
Repurchase of shares	(478)		—		(963)		—
Issuance of restricted stock awards	(3)		(8)		209		211
Ending balance	51,940		51,174		51,940		51,174
Additional paid-in capital
Beginning balance	2,048,921		1,825,215		2,144,459		475,647
Issuance of shares	—		37		—		1,344,363
Repurchase of shares	(106,293)		—		(214,342)		—

Change in redeemable noncontrolling interests	(1,518)		(2,311)		(1,594)		(4,093)
Issuance of restricted stock awards	17,951		13,801		30,538		20,825
Ending balance	1,959,061		1,836,742		1,959,061		1,836,742
Accumulated other comprehensive income (loss)
Beginning balance	(13,409)		(14,050)		(14,211)		(15,462)
Change in net unrealized gains (loss) on investments, net of tax	84		(199)		250		1,109
Foreign currency translation adjustments, net of tax	298		(257)		934		(153)

Ending balance	(13,027)		(14,506)		(13,027)		(14,506)
Retained earnings
Beginning balance	7,340,962		4,790,466		6,522,016		4,071,371

Net income (loss)	1,632,663		416,526		2,979,753		1,631,592
Net (income) loss attributable to redeemable noncontrolling interests	(450,176)		(213,695)		(919,734)		(655,986)

Dividends on common shares	(19,996)		(19,247)		(60,894)		(55,239)
Dividends on preference shares	(8,843)		(8,843)		(26,531)		(26,531)
Ending balance	8,494,610		4,965,207		8,494,610		4,965,207

Total shareholders’ equity	$	11,242,584	$	7,588,617	$	11,242,584	$	7,588,617

See accompanying notes to the consolidated financial statements

RenaissanceRe Holdings Ltd. and Subsidiaries

Consolidated Statements of Cash Flows

For the nine months ended September 30, 2024 and 2023

(in thousands of United States Dollars) (Unaudited)


	Nine months ended
	September 30, 2024		September 30, 2023
Cash flows provided by (used in) operating activities
Net income (loss)	$	2,979,753	$	1,631,592
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Amortization, accretion and depreciation	251,608		(121,068)
Equity in undistributed (earnings) losses of other ventures	13,113		(2,566)
Net realized and unrealized (gains) losses on investments	(552,405)		149,122
Change in:
Premiums receivable	(946,246)		(789,338)
Prepaid reinsurance premiums	(272,756)		(7,504)
Reinsurance recoverable	605,649		457,666
Deferred acquisition costs and value of business acquired	32,337		(95,350)
Reserve for claims and claim expenses	734,325		62,592
Unearned premiums	905,014		663,389
Reinsurance balances payable	(6,892)		(604,675)
Other	(357,594)		55,279
Net cash provided by (used in) operating activities	3,385,906		1,399,139
Cash flows provided by (used in) investing activities
Proceeds from sales and maturities of fixed maturity investments trading	19,075,147		15,300,245
Purchases of fixed maturity investments trading	(21,805,719)		(17,053,131)


Proceeds from sales of equity investments	463		566,022
Purchases of equity investments	(217)		(1,706)
Proceeds from sales of short term investments	24,465,915		25,689,155
Purchases of short term investments	(24,080,234)		(27,466,343)
Proceeds from sales of other investments	784,065		334,214
Purchases of other investments	(1,164,589)		(860,164)

Purchases of investments in other ventures	(56,674)		(20,171)
Return of investment from investment in other ventures	1,301		2,752




Net cash provided by (used in) investing activities	(2,780,542)		(3,509,127)
Cash flows provided by (used in) financing activities
Dividends paid – RenaissanceRe common shares	(60,894)		(55,239)
Dividends paid – preference shares	(26,531)		(26,531)
RenaissanceRe common share issuance, net of expenses	—		1,351,608
RenaissanceRe common share repurchases	(215,305)		—
Issuance of debt, net of expenses	—		740,581
Repayment of Medici Revolving Credit Facility	(100,000)		(30,000)
Drawdown of Medici Revolving Credit Facility	75,000		—


Subscriptions of third-party redeemable noncontrolling interest shares	289,245		481,373
Redemptions of third-party redeemable noncontrolling interest shares	(851,495)		(337,652)
Taxes paid on withholding shares	(21,515)		(20,004)

Net cash provided by (used in) financing activities	(911,495)		2,104,136
Effect of exchange rate changes on foreign currency cash	1,524		7,397
Net increase (decrease) in cash and cash equivalents	(304,607)		1,545

Cash and cash equivalents, beginning of period	1,877,518		1,194,339
Cash and cash equivalents, end of period	$	1,572,911	$	1,195,884

See accompanying notes to the consolidated financial statements

RENAISSANCERE HOLDINGS LTD. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

(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 for the fiscal year ended December 31, 2023 (“Form 10-K”). RenaissanceRe was formed under the laws of Bermuda on June 7, 1993. Through 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.

These consolidated financial statements include the results of the Company, its subsidiaries, and all variable interest entities in which the Company is considered to be the primary beneficiary.

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, 2023, 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, the value of business acquired (“VOBA”) and the fair value of other assets acquired and liabilities assumed in acquisitions; 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:



	September 30, 2024		December 31, 2023
U.S. treasuries	$	11,736,158	$	10,060,203
Corporate (1)	7,790,634		6,499,075
Residential mortgage-backed	1,753,318		1,420,362
Asset-backed	1,440,194		1,491,695
Agencies	615,627		489,117
Non-U.S. government	609,355		483,576
Commercial mortgage-backed	341,899		433,080
Total fixed maturity investments trading	$	24,287,185	$	20,877,108

(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.




	September 30, 2024				December 31, 2023
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in less than one year	$	1,224,238	$	1,226,745	$	587,720	$	582,519
Due after one through five years	12,783,659		12,971,037		11,439,510		11,468,263
Due after five through ten years	5,993,586		6,155,650		5,182,667		5,188,716
Due after ten years	406,699		398,342		307,392		292,473
Mortgage-backed	2,085,663		2,095,217		1,864,520		1,853,442
Asset-backed	1,433,446		1,440,194		1,490,641		1,491,695
Total	$	23,927,291	$	24,287,185	$	20,872,450	$	20,877,108

Equity Investments

The following table summarizes the fair value of equity investments:



	September 30, 2024		December 31, 2023
Financials	$	131,775	$	106,542
Basic materials	754		—
Industrial, utilities and energy	288		—
Consumer	141		212
Communications and technology	101		12


Healthcare	32		—
Total	$	133,091	$	106,766

Pledged Investments

At September 30, 2024, $10.1 billion (December 31, 2023 - $10.5 billion) of cash and investments at fair value were on deposit with, or in trust accounts for the benefit of, various counterparties, including with respect to the Company’s letter of credit facilities. Of this amount, $3.0 billion (December 31, 2023 - $2.9 billion) is on deposit with, or in trust accounts for the benefit of, U.S. state regulatory authorities.

Reverse Repurchase Agreements

At September 30, 2024, the Company held $48.5 million (December 31, 2023 - $159.7 million) of reverse repurchase agreements. These loans are fully collateralized, are generally outstanding for a short period of time and are presented on a gross basis as part of short term investments on the Company’s consolidated balance sheets. The required collateral for these loans typically includes high-quality, readily marketable instruments. Upon maturity, the Company receives principal and interest income.

Net Investment Income

The components of net investment income are as follows:



	Three months ended				Nine months ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Fixed maturity investments trading	$	289,687	$	188,781	$	820,876	$	514,020
Short term investments	46,746		66,722		141,923		149,903
Equity investments	670		510		1,819		6,675
Other investments
Catastrophe bonds	61,175		54,583		177,860		142,936
Other	20,937		20,031		59,525		65,422
Cash and cash equivalents	10,226		4,160		40,347		13,009
	429,441		334,787		1,242,350		891,965
Investment expenses	(5,582)		(5,679)		(16,871)		(15,817)
Net investment income	$	423,859	$	329,108	$	1,225,479	$	876,148

Net Realized and Unrealized Gains (Losses) on Investments

Net realized and unrealized gains (losses) on investments are as follows:



	Three months ended				Nine months ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023


Net realized gains (losses) on fixed maturity investments trading	$	22,052	$	(121,112)	$	(33,965)	$	(300,089)
Net unrealized gains (losses) on fixed maturity investments trading	590,309		(158,226)		353,465		14,007
Net realized and unrealized gains (losses) on fixed maturity investments trading	612,361		(279,338)		319,500		(286,082)
Net realized and unrealized gains (losses) on investment-related derivatives (1)	97,534		30,594		50,102		(22,295)
Net realized gains (losses) on equity investments	340		(10)		355		(27,503)
Net unrealized gains (losses) on equity investments	18,778		2,261		26,368		62,039
Net realized and unrealized gains (losses) on equity investments	19,118		2,251		26,723		34,536
Net realized and unrealized gains (losses) on other investments - catastrophe bonds	66,291		32,474		51,091		94,786
Net realized and unrealized gains (losses) on other investments - other	148,441		(14,068)		155,091		7,638
Net realized and unrealized gains (losses) on investments	$	943,745	$	(228,087)	$	602,507	$	(171,417)

(1)Net realized and unrealized gains (losses) on investment-related derivatives includes fixed maturity investments related derivatives (interest rate futures and credit default swaps), equity investments related derivatives (equity futures) and commodity investments related derivatives (commodity futures and commodity options). See “Note 13. Derivative Instruments” for additional information.

NOTE 4. FAIR VALUE MEASUREMENTS

The use of fair value to measure certain assets and liabilities with resulting unrealized gains or losses is pervasive within the Company’s consolidated financial statements. Fair value is defined under accounting guidance currently applicable to the Company as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between open market participants at the measurement date. The Company recognizes the change in unrealized gains or losses arising from changes in fair value in its consolidated statements of operations.

FASB ASC Topic 820, Fair Value Measurements, prescribes a fair value hierarchy that prioritizes the inputs to the respective valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to valuation techniques that use at least one significant input that is unobservable (Level 3). The three levels of the fair value hierarchy are described below:

•Fair values determined by Level 1 inputs utilize unadjusted quoted prices obtained from active markets for identical assets or liabilities for which the Company has access at the measurement date. The fair value is determined by multiplying the quoted price by the quantity held by the Company;

•Fair values determined by Level 2 inputs utilize inputs (other than quoted prices included in Level 1) that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals, broker quotes and certain pricing indices; and

•Level 3 inputs are based all or in part on significant unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In these cases, significant management assumptions can be used to establish management’s best estimate of the assumptions used by other market participants in determining the fair value of the asset or liability.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement of the asset or liability. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and the Company considers factors specific to the asset or liability.

In order to determine if a market is active or inactive for a security, the Company considers a number of factors, including, but not limited to, the spread between what a seller is asking for a security and what a buyer is bidding for the same security, the volume of trading activity for the security in question, the price of the security compared to its par value (for fixed maturity investments), and other factors that may be indicative of market activity.

There have been no material changes in the Company’s valuation techniques, nor have there been any transfers between Level 1 and Level 2, or Level 2 and Level 3 during the period represented by these consolidated financial statements.

Below is a summary of the assets and liabilities that are measured at fair value on a recurring basis and also represents the carrying amount on the Company’s consolidated balance sheets:



At September 30, 2024	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Fixed maturity investments trading
U.S. treasuries	$	11,736,158	$	11,736,158	$	—	$	—
Corporate (1)	7,790,634		—		7,790,634		—
Residential mortgage-backed	1,753,318		—		1,753,318		—
Asset-backed	1,440,194		—		1,440,194		—
Agencies	615,627		—		615,627		—

Non-U.S. government	609,355		—		609,355		—



Commercial mortgage-backed	341,899		—		341,899		—
Total fixed maturity investments trading	24,287,185		11,736,158		12,551,027		—
Short term investments	4,302,991		141,839		4,161,152		—
Equity investments	133,091		133,091		—		—
Other investments
Catastrophe bonds	1,896,075		—		1,896,075		—
Direct private equity investments	199,039		—		148,005		51,034
Term loans	94,575		—		—		94,575
	2,189,689		—		2,044,080		145,609
Fund investments (2)	1,982,762		—		—		—



Total other investments	4,172,451		—		2,044,080		145,609
Other assets and (liabilities)
Assumed and ceded (re)insurance contracts (3)	(497)		—		—		(497)

Derivative assets (4)	87,029		9,329		77,700		—
Derivative liabilities (4)	(78,668)		(17,841)		(60,827)		—

Total other assets and (liabilities)	7,864		(8,512)		16,873		(497)
	$	32,903,582	$	12,002,576	$	18,773,132	$	145,112

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

(2)Fund investments, which may include private equity funds, private credit funds, and hedge funds, are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. The fair value presented in this table is provided to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet.

(3)Included in assumed and ceded (re)insurance contracts at September 30, 2024 was $3.0 million of other assets and $3.5 million of other liabilities.

(4)Refer to “Note 13. Derivative Instruments” for additional information related to the fair value, by type of contract, of derivatives entered into by the Company.

At December 31, 2023

Total

Quoted
Prices in Active
Markets for
Identical
Assets
(Level 1)

Significant
Other
Observable
Inputs
(Level 2)

Significant
Unobservable
Inputs
(Level 3)

Fixed maturity investments trading

U.S. treasuries

Form: 10-Q

Documents