Form: 8-K

Current report filing

February 4, 2004

Documents

PRESS RELEASE

Published on February 4, 2004


Exhibit 99.1

[RENAISSANCERE HOLDINGS LOGO OMITTED]


RENAISSANCERE REPORTS RECORD OPERATING EARNINGS OF $524 MILLION FOR 2003,
OR $7.38 OPERATING EPS; RECORD QUARTERLY OPERATING EPS OF $2.13

$605 MILLION NET INCOME FOR 2003, OR EPS OF $8.52 FOR 2003; EPS OF $2.25
FOR THE FOURTH QUARTER OF 2003

INDIVIDUAL RISK PREMIUM GROWS TO $447 MILLION IN 2003
COMPARED TO $283 MILLION IN 2002

MANAGED SPECIALTY REINSURANCE PREMIUM GROWS TO $292 MILLION
IN 2003 COMPARED TO $247 MILLION IN 2002

MANAGED CATASTROPHE PREMIUM OF $720 MILLION FOR THE FULL
YEAR 2003, COMPARED WITH $717 MILLION FOR FULL YEAR 2002

ACHIEVES FULL YEAR 2003 OPERATING RETURN ON EQUITY OF 29.2%


PEMBROKE, BERMUDA, FEBRUARY 3, 2004 -- RenaissanceRe Holdings Ltd. (NYSE: RNR)
today reported $151.4 million in fourth quarter net operating income available
to common shareholders, compared to $105.8 million in the fourth quarter of
2002. Operating income excludes realized investment gains (losses) of $8.6
million and ($3.6) million in the fourth quarters of 2003 and 2002,
respectively. Operating income per common share grew to $2.13 in the fourth
quarter of 2003, from $1.50 per common share in the fourth quarter of 2002. Net
income available to common shareholders rose 57% to $160.0 million or $2.25 per
common share in the quarter, from $102.2 million or $1.45 per common share for
the same quarter of 2002.

For the year ended December 31, 2003, net operating income available to common
shareholders was $524.1 million or $7.38 per common share, compared to $363.8
million or $5.18 per common share for 2002. Operating income excludes realized
investment gains of $80.5 million and $10.2 million for the years ended December
31, 2003 and 2002, respectively, and, in 2002, the cumulative effect of a change
in accounting principle of $9.2 million relating to goodwill. Net income
available to common shareholders for the year ended December 31, 2003 was $604.6
million or $8.52 per common share, compared to $364.8 million or $5.20 per
common share for 2002.

James N. Stanard, Chairman and CEO, commented: "Renaissance delivered another
year of outstanding financial results in 2003, our tenth full year in business,
with an operating return on equity of 29%. To my knowledge, we have had the best
operating return on equity in the property/casualty business over the last ten
years. From our roots in catastrophe reinsurance, we've increasingly applied our
proven analytic skills and underwriting discipline in new areas of the market,
developing a significant and profitable presence in specialty reinsurance and
individual risk."

Mr. Stanard added: "Looking into 2004, we anticipate strong growth in our
specialty reinsurance premium and our individual risk premium. We now expect
that our catastrophe reinsurance business will experience modest declines in
gross premiums, as we are committed to maintaining our hurdle rates in an
environment of declining prices. We are maintaining our operating earnings
guidance for 2004 at $6.10 to $6.50 per share, assuming normal catastrophe
activity."


1



This Press Release includes certain non-GAAP financial measures including
"operating income," "operating EPS or operating income per common share,"
"operating return on equity," "managed catastrophe premium" and "summary of
income from joint venture relationships." A reconciliation of such measures to
the most comparable GAAP figures in accordance with Regulation G is presented in
the attached supplemental financial data.

Gross premiums written for the fourth quarter of 2003 were $171.2 million,
compared to $159.3 million for the same quarter of 2002. Net premiums written
for the fourth quarter of 2003 were $165.4 million, versus $153.4 million for
the same quarter of 2002. Net premiums earned for the fourth quarter of 2003
were $299.4 million, compared to $234.5 million for the same quarter of 2002.
Those premiums include $10.2 million of gross written premiums and $9.0 of net
written premiums and $47.3 million of net premiums earned by the Company's
consolidated joint venture, DaVinci Re during the fourth quarter of 2003,
compared to $19.3 million of gross and net written premiums and $52.9 million of
net premiums earned by DaVinci Re during the fourth quarter of 2002.

Gross premiums written for the year ended December 31, 2003 were $1,382.2
million, compared to $1,173.0 million for 2002. Net premiums written for the
year ended December 31, 2003 were $1,152.5 million, compared to $923.7 million
for 2002. Net premiums earned for 2003 were $1,115.7 million, compared to $760.9
million for 2002. Those premiums include $178.9 million of gross written
premiums, $184.0 million of net written premiums and $193.0 million of net
premiums earned by DaVinci Re during 2003, compared to $187.8 million of gross
written premiums, $185.6 million of net written premiums and $153.0 million of
net premiums earned by DaVinci Re for 2002.

Total Managed Catastrophe Premiums Written, representing gross catastrophe
premiums written by Renaissance Reinsurance and by related joint ventures, were
$42.6 million for the fourth quarter, compared to $35.5 million for the same
quarter of 2002. Total Managed Catastrophe Premiums Written for 2003 were $720.4
million, compared to $716.5 million for 2002. See the attached supplemental
financial data for additional information regarding managed premiums.

Total Individual Risk premiums written during the quarter were $111.5 million,
compared to $97.6 million for the same quarter of 2002. Total Individual Risk
premiums written for the year ended December 31, 2003 were $446.7 million, a 58%
increase from the $282.6 million written for 2002.

Net investment income for the fourth quarter of 2003 was $35.7 million, compared
to $29.7 million for the same quarter in 2002. Net investment income for the
year ended December 31, 2003 was $129.5 million, compared to $102.7 million for
2002. Net investment income for the fourth quarters of 2003 and 2002 includes
net appreciation of $8.3 million and $0.8 million, respectively, related to
investments in hedge funds and private equity funds. For the full year of 2003,
net appreciation from these investments totaled $21.2 million as compared to a
loss of $1.4 million for 2002.

Claims and claim expenses incurred for the quarter ended December 31, 2003 were
$88.0 million, or 29.4% of net premiums earned. In comparison, claims and claim
expenses incurred for the quarter ended December 31, 2002 were $90.3 million, or
38.5% of net premiums earned. Claims and claim expenses incurred for the year
ended December 31, 2003 were $367.7 million or 33.0% of net premiums earned,
compared to $289.5 million or 38.1% of net premiums earned for 2002. During the
quarter, the Company recorded favorable development on prior period reserves of
$45.1 million or a benefit of 15.1 points to the Company's quarterly loss ratio.
For the year ended December 31, 2003, the Company recorded favorable development
on prior period reserves of $95.1 million, or a benefit of 8.5 points to the
Company's 2003 loss ratio. See the attached supplemental financial data for
additional information regarding loss reserves by segment.

During the quarter the Company's expense ratio increased to 24.5% compared to
22.1% for the fourth quarter of 2002. The increase in the expense ratio
primarily relates to increased premiums from the Company's Individual Risk
segment, which typically generates higher expense ratios as compared with the
Company's reinsurance operations.


2



During the quarter, income from the DaVinci joint venture and other fee income
on managed cat business was $36.6 million, compared to $31.8 million during the
fourth quarter of 2002. Of this, $21.6 million was generated from fees and
profit commissions, compared to $15.8 million in the fourth quarter of 2002, and
$13.7 million was generated from the Company's equity pick up from joint
ventures, versus $14.6 million in the comparable quarter of 2002. A summary of
income from joint venture relationships, which includes aggregate earnings from
joint venture activities, fees related to catastrophe business, and
miscellaneous other items, is presented in the supplemental disclosures. The
principal differences between other income as reported and the summary of income
in the supplemental disclosure are that the results of DaVinci Re are reflected
as if it were reported under the equity accounting method, and the summary
presentation also includes fees earned on certain quota share cessions of
catastrophe business by the Company which are recorded on the income statement
as a reduction of acquisition and operational expenses.

The Company's cash flows from operations were $821.2 million for the full year
2003, compared with $778.4 million for 2002.

Shareholders' equity attributable to common shareholders was $2.1 billion at
December 31, 2003, compared to $1.5 billion at December 31, 2002. Book value per
common share at December 31, 2003 was $29.61, compared to $21.39 per common
share at December 31, 2002.

RenaissanceRe Holdings Ltd. will host a conference call on Wednesday, February
4, 2003 at 8:00 a.m. (EST) to discuss this release. Live broadcast of the
conference call will be available through the Investor Section of
RenaissanceRe's website at www.renre.com.

RenaissanceRe Holdings Ltd. (NYSE: RNR), is a global provider of reinsurance and
insurance. The Company's business primarily consists of four components: (1)
catastrophe reinsurance; (2) specialty reinsurance; (3) catastrophe and
specialty reinsurance written for the account of joint ventures Top Layer
Reinsurance Ltd. and DaVinci Reinsurance Ltd; and (4) individual risk business
which includes primary insurance and quota share reinsurance.

Cautionary Statement under "Safe Harbor" Provisions of the Private Securities
Litigation Reform Act of 1995: Statements made in this news release 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
operations results, please refer to RenaissanceRe Holdings Ltd.'s filings with
the Securities and Exchange Commission, including its Annual Report on Form 10-K
for the year ended December 31, 2002, and its Quarterly Reports on Form 10-Q for
the quarters ended March 31, June 30 and September 30, 2003.

INVESTOR CONTACT: MEDIA CONTACT:
Martin J. Merritt David Lilly or Dawn Dover
Senior Vice President - Finance Kekst and Company
RenaissanceRe Holdings Ltd. (212) 521-4800
(441) 299-7230


3


RENAISSANCERE HOLDINGS LTD. AND SUBSIDIARIES
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
For the three months and years ended December 31, 2003 and 2002
(in thousands of United States Dollars, except per share amounts)



QUARTERS ENDED YEARS ENDED
---------------------------- -----------------------------
DEC. 31, 2003 DEC. 31, 2002 DEC. 31, 2003 DEC. 31, 2002
------------- ------------- ------------- -------------

REVENUES
Gross premiums written $ 171,165 $ 159,324 $ 1,382,209 $ 1,173,049
=========== =========== =========== ===========
Net premiums written $ 165,360 $ 153,411 $ 1,152,523 $ 923,711
Decrease (increase) in unearned premiums 134,010 81,134 (36,780) (162,806)
----------- ----------- ----------- -----------
Net premiums earned 299,370 234,545 1,115,743 760,905
Net investment income 35,719 29,665 129,542 102,686
Net foreign exchange gains 1,788 1,273 13,631 3,861
Other income 6,348 8,594 27,070 32,821
Net realized gains (losses) on investments 8,560 (3,559) 80,504 10,177
----------- ----------- ----------- -----------
TOTAL REVENUES 351,785 270,518 1,366,490 910,450

EXPENSES
Claims and claim expenses incurred 88,032 90,327 367,744 289,525
Acquisition expenses 54,986 32,925 194,140 95,644
Operational expenses 18,276 18,918 67,397 49,159
Corporate expenses 3,442 3,483 16,043 14,327
Interest expense 4,086 3,423 18,252 13,069
----------- ----------- ----------- -----------
TOTAL EXPENSES 168,822 149,076 663,576 461,724
----------- ----------- ----------- -----------
Income before minority interest and taxes and change
in accounting principle 182,963 121,442 702,914 448,726
Minority interest - Capital Securities 2,375 2,182 7,470 7,605
Minority interest - DaVinci 15,768 14,415 72,014 55,051
----------- ----------- ----------- -----------
Income before taxes and change in accounting principle 164,820 104,845 623,430 386,070
Income tax benefit -- 497 18 115
Cumulative effect of a change in accounting
principle - SFAS 142 - Goodwill -- -- -- (9,187)
----------- ----------- ----------- -----------
NET INCOME 164,820 105,342 623,448 376,998
Dividends on preference shares 4,862 3,105 18,801 12,184
----------- ----------- ----------- -----------
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 159,958 $ 102,237 $ 604,647 $ 364,814
=========== =========== =========== ===========
Operating Earnings per Common Share - diluted * $ 2.13 $ 1.50 $ 7.38 $ 5.18
Earnings per Common Share - basic $ 2.31 $ 1.50 $ 8.76 $ 5.40
Earnings per Common Share - diluted $ 2.25 $ 1.45 $ 8.52 $ 5.20
Average shares outstanding - basic 69,341 68,241 69,039 67,555
Average shares outstanding - diluted 71,202 70,574 71,002 70,211
Claims and claim expense ratio 29.4% 38.5% 33.0% 38.1%
Expense ratio 24.5% 22.1% 23.4% 19.0%
----------- ----------- ----------- -----------
Combined ratio 53.9% 60.6% 56.4% 57.1%
=========== =========== =========== ===========
Operating return on average equity (annualized) * 30.2% 29.9% 29.2% 29.0%
=========== =========== =========== ===========


* Excludes realized gains (losses) on investments and, in 2002, the
cumulative effect of a change in accounting principle - SFAS 142 -
Goodwill.


4



RENAISSANCERE HOLDINGS LTD. AND SUBSIDIARIES
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands of United States Dollars, except per share amounts)



AS AT
------------------------------------
DECEMBER 31, 2003 DECEMBER 31, 2002
----------------- -----------------

ASSETS
Fixed maturity investments available for sale, at fair value
(Amortized cost $2,880,425 and $2,153,715 at December 31, 2003 and
December 31, 2002, respectively) $ 2,932,471 $ 2,221,109
Short term investments 660,564 570,497
Other investments 367,187 129,918
Equity investment in reinsurance company, at fair value
(Cost $84,199 at December 31, 2003 and 2002) 145,535 120,288
Cash and cash equivalents 63,397 87,067
----------- -----------
Total investments and cash 4,169,154 3,128,879
Premiums receivable 167,996 199,449
Ceded reinsurance balances 56,852 73,360
Losses recoverable 149,201 199,533
Accrued investment income 22,793 25,833
Deferred acquisition costs 75,261 55,853
Other assets 69,982 62,829
----------- -----------
TOTAL ASSETS $ 4,711,239 $ 3,745,736
=========== ===========

LIABILITIES, MINORITY INTERESTS AND SHAREHOLDERS' EQUITY
LIABILITIES
Reserve for claims and claim expenses $ 977,892 $ 804,795
Reserve for unearned premiums 349,824 331,985
Debt 350,000 275,000
Reinsurance balances payable 131,629 146,732
Other liabilities 52,123 97,013
----------- -----------
TOTAL LIABILITIES 1,861,468 1,655,525
----------- -----------

Minority interest - Capital Securities 84,630 84,630
Minority interest - DaVinci 430,498 363,546

SHAREHOLDERS' EQUITY
Preference shares 250,000 150,000
Common shares and additional paid-in capital 314,414 320,936
Unearned stock grant compensation (18,468)
Accumulated other comprehensive income 113,382 95,234
Retained earnings 1,656,847 1,094,333
----------- -----------
TOTAL SHAREHOLDERS' EQUITY 2,334,643 1,642,035
----------- -----------
TOTAL LIABILITIES, MINORITY INTERESTS, AND SHAREHOLDERS' EQUITY $ 4,711,239 $ 3,745,736
=========== ===========
BOOK VALUE PER COMMON SHARE $ 29.61 $ 21.39
=========== ===========
COMMON SHARES OUTSTANDING 70,399 69,750
=========== ===========



5


RENAISSANCERE HOLDINGS LTD. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA
(in thousands of United States Dollars)



GROSS WRITTEN PREMIUMS QUARTERS ENDED YEARS ENDED
--------------------------- ---------------------------
DEC. 31, 2003 DEC. 31, 2002 DEC. 31, 2003 DEC. 31, 2002
------------- ------------- ------------- -------------

Renaissance Cat Premium $ 30,414 $ 16,225 $ 488,124 $ 455,628
Renaissance Specialty Premium 19,061 26,261 268,506 247,020
---------- ---------- ---------- ----------
Total Renaissance Reinsurance Premium 49,475 42,486 756,630 702,648
---------- ---------- ---------- ----------
DaVinci Cat Premium 9,588 19,268 155,541 187,822
DaVinci Specialty Premium 581 -- 23,314 --
---------- ---------- ---------- ----------
Total DaVinci Reinsurance Premium 10,169 19,268 178,855 187,822
---------- ---------- ---------- ----------
Total Reinsurance Premium 59,644 61,754 935,485 890,470
Individual Risk Premium (1) 111,521 97,570 446,724 282,579
---------- ---------- ---------- ----------
Total Premiums $ 171,165 $ 159,324 $1,382,209 $1,173,049
========== ========== ========== ==========
Total Managed Cat Premiums (2) $ 42,606 $ 35,493 $ 720,400 $ 716,549
========== ========== ========== ==========
Total Managed Specialty Premiums $ 19,642 $ 26,261 $ 291,820 $ 247,020
========== ========== ========== ==========


(1) Includes combined premium ceded to Renaissance and DaVinci of ($3.4) million
and nil for the quarters ended December 31, 2003 and 2002 respectively, and
$20.8 million and $22.0 million for the twelve months ended December 31, 2003
and 2002, respectively. Such amounts of premium are excluded from the
Renaissance and DaVinci premiums shown above.

(2) Total Managed Cat Premiums include Renaissance and DaVinci Cat Premium, as
above, and Cat Premium of $2.6 million and nil for the quarters ended December
31, 2003 and 2002, respectively, and $76.7 million and $73.1 million for the
twelve months ended December 31, 2003 and 2002, respectively, written on behalf
of our joint venture, Top Layer Re.



OTHER INCOME
QUARTERS ENDED YEARS ENDED
--------------------------- ---------------------------
DEC. 31, 2003 DEC. 31, 2002 DEC. 31, 2003 DEC. 31, 2002
------------- ------------- ------------- -------------

As Reported

Fee income $ 1,647 $ 941 $ 7,655 $ 3,882
Equity pick up 3,334 6,280 21,167 22,339
Other items 1,367 1,373 (1,752) 6,600
--------- --------- --------- ---------
Total other income - as reported $ 6,348 $ 8,594 $ 27,070 $ 32,821
========= ========= ========= =========

Summary of income from joint venture relationships (3)

Fee income (4) $ 21,583 $ 15,777 $ 76,715 $ 54,071
Equity pick up 13,662 14,631 61,998 52,110
Other items 1,367 1,373 (1,752) 6,600
--------- --------- --------- ---------
Total $ 36,612 $ 31,781 $ 136,961 $ 112,781
========= ========= ========= =========


(3) Reported GAAP presentation adjusted to reflect:
- fee income and the Company's interest in DaVinci as if DaVinci were
accounted for under the equity method
- other fee income on managed cat business which is reflected on the income
statement as a reduction of acquisition and operational expenses
(4) Excludes fee income received on capital invested by RenaissanceRe Holdings.


6



RENAISSANCERE HOLDINGS LTD. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL DATA
(in thousands of United States Dollars, except percentage amounts)



SEGMENT INFORMATION
QUARTERS ENDED
----------------------------------------------------------------------
DEC. 31, 2003 DEC. 31, 2002
------------------------------------ -------------------------------
INDIVIDUAL INDIVIDUAL
REINSURANCE RISK TOTAL REINSURANCE RISK TOTAL
----------- ---- ----- ----------- ---- -----

Net premiums earned $204,444 $ 94,926 $ 299,370 $195,718 $38,827 $234,545
======== ======== ========== ======== ======= ========
Claims and claim expenses incurred - current accident year $ 74,320 $ 58,762 $ 133,082 $ 89,997 $17,538 $107,535
Claims and claim expenses incurred - prior years (39,646) (5,404) (45,050) (16,885) (323) (17,208)
-------- -------- ---------- -------- ------- --------
Net claims and claim expenses incurred - total $ 34,674 $ 53,358 $ 88,032 $ 73,112 $17,215 $ 90,327
======== ======== ========== ======== ======= ========
Claims and claim expense ratio - accident year 36.4% 61.9% 44.5% 46.0% 45.2% 45.8%
======== ======== ========== ======== ======= ========
Claims and claim expense ratio - calendar year 17.0% 56.2% 29.4% 37.4% 44.3% 38.5%
Expense ratio 17.9% 39.4% 24.5% 19.0% 37.4% 22.1%
-------- -------- ---------- -------- ------- --------
Combined ratio 34.9% 95.6% 53.9% 56.4% 81.7% 60.6%
======== ======== ========== ======== ======= ========

YEARS ENDED
----------------------------------------------------------------------
DEC. 31, 2003 DEC. 31, 2002
------------------------------------ -------------------------------
INDIVIDUAL INDIVIDUAL
REINSURANCE RISK TOTAL REINSURANCE RISK TOTAL
----------- ---- ----- ----------- ---- -----

Net premiums earned $809,360 $306,383 $1,115,743 $667,929 $92,976 $760,905
======== ======== ========== ======== ======= ========
Claims and claim expenses incurred - current accident year $279,334 $183,482 $ 462,816 $254,387 $37,133 $291,520
Claims and claim expenses incurred - prior years (70,137) (24,935) (95,072) (5,071) 3,076 (1,995)
-------- -------- ---------- -------- ------- --------
Net claims and claim expenses incurred - total $209,197 $158,547 $ 367,744 $249,316 $40,209 $289,525
======== ======== ========== ======== ======= ========
Claims and claim expense ratio - accident year 34.5% 59.9% 41.5% 38.1% 39.9% 38.3%
======== ======== ========== ======== ======= ========
Claims and claim expense ratio - calendar year 25.8% 51.7% 33.0% 37.3% 43.2% 38.1%
Expense ratio 18.2% 37.8% 23.4% 16.5% 37.5% 19.0%
-------- -------- ---------- -------- ------- --------
Combined ratio 44.0% 89.5% 56.4% 53.8% 80.7% 57.1%
======== ======== ========== ======== ======= ========



7

COMMENTS ON REGULATION G

In addition to the GAAP financial measures set forth in this Press Release, the
Company has included certain non-GAAP financial measures in this Press Release
within the meaning of Regulation G. The Company has consistently provided these
financial measurements in previous earnings releases and the Company's
management believes that these measurements 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 the 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" 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" differs from "net income applicable to
common shareholders", which the Company believes is the most directly comparable
GAAP measure, only by the exclusion of net realized gains and losses on
investments and the cumulative effect of a change in accounting principle -
goodwill. The Company's management believes that "operating income" 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
registrant's investment portfolio and by removing non-recurring matters such as
changes in accounting principles - goodwill, which are not considered by
management to be a relevant indicator of business operations. The Company also
uses operating income to calculate operating income per common share and
operating return on average equity. The following is a reconciliation of 1) net
income applicable to common shareholders to operating income; 2) net income per
common share to net operating income per common share; and 3) return on average
common equity to operating return on average common equity:



QUARTERS ENDED YEARS ENDED
---------------------------- ----------------------------
DEC. 31, 2003 DEC. 31, 2002 DEC. 31, 2003 DEC. 31, 2002
------------- ------------- ------------- -------------
(In thousands of US dollars)

Net income applicable to common shareholders $ 159,958 $ 102,237 $ 604,647 $ 364,814
Adjustment for net realized (gains) losses on investments (8,560) 3,559 (80,504) (10,177)
Adjustment for cumulative effect of a change in
accounting principle - SFAS 142 - Goodwill -- -- -- 9,187
---------- ---------- ---------- ----------
Operating income $ 151,398 $ 105,796 $ 524,143 $ 363,824
========== ========== ========== ==========

Net income per common share (diluted) $ 2.25 $ 1.45 $ 8.52 $ 5.20
Adjustment for net realized (gains) losses on investments (0.12) 0.05 (1.14) (0.15)
Adjustment for cumulative effect of a change in
accounting principle - SFAS 142 - Goodwill -- -- -- 0.13
---------- ---------- ---------- ----------
Operating income per common share (diluted) $ 2.13 $ 1.50 $ 7.38 $ 5.18
========== ========== ========== ==========

Return on average common equity (annualized) 31.9% 28.9% 33.7% 29.1%
Adjustment for net realized (gains) losses on investments (1.7%) 1.0% (4.5%) (0.8%)
Adjustment for cumulative effect of a change in
accounting principle - SFAS 142 - Goodwill -- -- -- .7%
---------- ---------- ---------- ----------
Operating return on average common equity (annualized) 30.2% 29.9% 29.2% 29.0%
========== ========== ========== ==========



8
Exhibit 99.1


The Company has also included in this Press Release "managed catastrophe
premium". "Managed catastrophe premium" is defined as gross catastrophe premium
written by Renaissance Reinsurance and its related joint ventures. "Managed
catastrophe premium" differs from total catastrophe premium, which the Company
believes is the most directly comparable GAAP measure, due to the inclusion of
catastrophe premium written on behalf of our joint venture Top Layer Re, which
is accounted for under the equity method of accounting. Refer to supplemental
financial data on gross written premiums.

The Company has also included in this Press Release "summary of income from
joint venture relationships" which is a non-GAAP financial measure. The
principal differences between "summary of income from joint venture
relationships" and "other income," which the Company believes is the most
directly comparable GAAP measure, are that the results of DaVinci Reinsurance
Ltd., a joint venture the financial results of which are consolidated in the
Company's financial statements, are reflected in "summary of income from joint
venture relationships" as if reported under the equity accounting method, and
that this presentation also includes fees earned on certain quota share cessions
of catastrophe business by the Company which are reflected on its income
statement as a reduction of acquisition and operational expenses.


9