Form: 8-K

Current report filing

February 7, 2007

Documents

RenaissanceRe Holdings Ltd.

Financial Supplement

December 31, 2006

Contact:

Investors:

RenaissanceRe Holdings Ltd.
Todd R. Fonner
441-239-4801

Media:

Kekst and Company
David Lilly or Dawn Dover
212-521-4800



Table of Contents

RenaissanceRe Holdings Ltd.
Basis of Presentation

This financial supplement includes certain non-GAAP financial measures including ‘‘operating income,’’ ‘‘operating income per common share,’’ ‘‘operating return on average common equity (annualized)’’, ‘‘managed catastrophe premium’’ and ‘‘managed catastrophe premium, net of fully-collateralized joint ventures’’. A reconciliation of such measures to the most comparable GAAP figures in accordance with Regulation G is presented in the attached supplemental financial data. See Comments on Regulation G.

RenaissanceRe Holdings Ltd. is a global provider of reinsurance and insurance. Our business consists of two segments: (1) Reinsurance, which includes catastrophe reinsurance, specialty reinsurance and certain joint ventures and other investments managed by our subsidiary RenaissanceRe Ventures Ltd., and (2) Individual Risk, 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 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, 2005 and its Quarterly Report on Form 10-Q for the quarters ending March 31, June 30 and September 30, 2006.

All information contained herein is unaudited, except for the financial data relating to the balance sheet for the year ended December 31, 2005. Unless otherwise noted, dollar amounts are in thousands, except for share and per share amounts and ratio information. Certain prior period comparatives have been reclassified to conform to the current presentation. This supplement is being provided for informational purposes only. It should be read in conjunction with documents filed by RenaissanceRe Holdings Ltd. with the Securities and Exchange Commission, including the Annual Report on Form 10-K for 2005 and Quarterly Reports on Form 10-Q. Please refer to the Company’s website at renre.com for further information about RenaissanceRe Holdings Ltd.

i



RenaissanceRe Holdings Ltd.
Financial Highlights


  Three months ended
December 31,		 Twelve months ended
December 31,
  2006 2005 2006 2005
Highlights        
Gross premiums written $ 194,952
$ 288,522
$ 1,943,647
$ 1,809,128
Net premiums written 156,846
249,481
1,529,620
1,543,287
Net premiums earned 380,088
414,107
1,529,777
1,402,709
Net claims and claim expenses incurred 97,280
662,480
446,230
1,635,656
Underwriting income (loss) 177,285
(343,689
)
 693,264
(556,379
)
Net investment income 83,233
59,126
318,106
217,252
Net income (loss) available to common shareholders 201,135
(210,402
)
 761,635
(281,413
)
Net realized gains (losses) on investments 2,489
(3,548
)
 (34,464
)
 (6,962
)
Operating income (loss) available to common shareholders (1) 198,646
(206,854
)
 796,099
(274,451
)
Total assets $ 7,769,026
$ 6,871,261
$ 7,769,026
$ 6,871,261
Total shareholders’ equity $ 3,280,497
$ 2,253,840
$ 3,280,497
$ 2,253,840
Per share data  
 
 
 
Net income (loss) available (attributable) to common
shareholders per common share – diluted (2)		 $ 2.78
$ (2.97
)
 $ 10.57
$ (3.99
)
Operating income (loss) available (attributable) to common
shareholders per common share – diluted (1) (2)		 $ 2.74
$ (2.92
)
 $ 11.05
$ (3.89
)
Dividends per common share $ 0.21
$ 0.20
$ 0.84
$ 0.80
Book value per common share $ 34.38
$ 24.52
$ 34.38
$ 24.52
Accumulated dividends per common share 6.12
5.28
6.12
5.28
Book value per common share plus accumulated dividends $ 40.50
$ 29.80
$ 40.50
$ 29.80
Financial ratios  
 
 
 
Net claims and claim expense ratio – current accident year 33.5
%
 158.8
%
 38.1
%
 133.8
%
Net claims and claim expense ratio – prior accident years (7.9
%)
 1.2
%
 (8.9
%)
 (17.2
%)
Net claims and claim expense ratio – calendar year 25.6
%
 160.0
%
 29.2
%
 116.6
%
Underwriting expense ratio 27.8
%
 23.0
%
 25.5
%
 23.1
%
Combined ratio 53.4
%
 183.0
%
 54.7
%
 139.7
%
Operating return on average common equity – annualized (1) 33.3
%
 (44.2
%)
 37.9
%
 (13.3
%)
(1) Operating income (loss) excludes net realized gains and losses on investments. See Comments on Regulation G for a reconciliation to net income (loss).
(2) In accordance with FAS 128, earnings per share calculations use average common shares outstanding – basic, when in a net loss position.

1



RenaissanceRe Holdings Ltd.
Summary Consolidated Statements of Operations – Quarter to Date


  Three months ended
  December 31, 2006 September 30, 2006 June 30, 2006 March 31, 2006 December 31, 2005
Revenues  
 
 
 
 
Gross premiums written $ 194,952
$ 257,752
$ 742,551
$ 748,392
$ 288,522
Net premiums written $ 156,846
$ 162,695
$ 512,244
$ 697,835
$ 249,481
Decrease (increase) in unearned premiums 223,242
204,381
(81,303
)
 (346,163
)
 164,626
Net premiums earned 380,088
367,076
430,941
351,672
414,107
Net investment income 83,233
80,427
74,012
80,434
59,126
Net foreign exchange (losses) gains (1,715
)
 (2,160
)
 (2,441
)
 3,023
(4,394
)
Equity in earnings of other ventures 8,624
10,131
9,221
6,552
5,271
Other (loss) income (4,160
)
 2,006
(84
)
 (1,679
)
 11,032
Net realized gains (losses) on investments 2,489
4,151
(24,348
)
 (16,756
)
 (3,548
)
Total revenues 468,559
461,631
487,301
423,246
481,594
Expenses  
 
 
 
 
Net claims and claim expenses incurred 97,280
42,436
207,336
99,178
662,480
Acquisition expenses 73,288
63,998
74,597
68,814
74,557
Operational expenses 32,235
27,364
29,056
20,931
20,759
Corporate expenses 7,987
5,121
5,571
5,739
29,965
Interest expense 8,439
9,492
10,370
9,301
7,710
Total expenses 219,229
148,411
326,930
203,963
795,471
Income (loss) before minority interest and taxes 249,330
313,220
160,371
219,283
(313,877
)
Minority interest – DaVinciRe Holdings (38,665
)
 (52,830
)
 (21,207
)
 (31,457
)
 112,138
Income (loss) before taxes 210,665
260,390
139,164
187,826
(201,739
)
Income tax expense (42
)
 (616
)
 (94
)
 (183
)
 —
Net income (loss) 210,623
259,774
139,070
187,643
(201,739
)
Dividends on preference shares (9,488
)
 (8,662
)
 (8,662
)
 (8,663
)
 (8,663
)
Net income (loss) available (attributable) to common shareholders $ 201,135
$ 251,112
$ 130,408
$ 178,980
$ (210,402
)
Operating income (loss) available (attributable) to common shareholders per Common Share – diluted (1) (2) $ 2.74
$ 3.42
$ 2.15
$ 2.73
$ (2.92
)
Net income (loss) available (attributable) to common shareholders per Common Share – basic $ 2.83
$ 3.53
$ 1.84
$ 2.52
$ (2.97
)
Net income (loss) available (attributable) to common shareholders per Common Share – diluted (2) $ 2.78
$ 3.48
$ 1.81
$ 2.49
$ (2.97
)
Average shares outstanding – basic 71,178
71,093
71,049
70,935
70,793
Average shares outstanding – diluted (2) 72,467
72,115
71,926
71,786
70,793
Net claims and claim expense ratio 25.6
%
 11.6
%
 48.1
%
 28.2
%
 160.0
%
Underwriting expense ratio 27.8
%
 24.9
%
 24.1
%
 25.5
%
 23.0
%
Combined ratio 53.4
%
 36.5
%
 72.2
%
 53.7
%
 183.0
%
Operating return on average common equity – annualized (1) 33.3
%
 45.6
%
 31.3
%
 42.7
%
 (44.2
%)
(1) Operating income (loss) excludes net realized gains and losses on investments. See Comments on Regulation G for a reconciliation to net income (loss).
(2) In accordance with FAS 128, earnings per share calculations use average common shares outstanding – basic, when in a net loss position.

2



RenaissanceRe Holdings Ltd.
Summary Consolidated Statements of Operations – Year to Date


  Twelve months ended
  December 31, 2006 December 31, 2005
Revenues  
 
Gross premiums written $ 1,943,647
$ 1,809,128
Net premiums written $ 1,529,620
$ 1,543,287
Decrease (increase) in unearned premiums 157
(140,578
)
Net premiums earned 1,529,777
1,402,709
Net investment income 318,106
217,252
Net foreign exchange (losses) gains (3,293
)
 5,183
Equity in earnings of other ventures 34,528
28,259
Other (loss) income (3,917
)
 9,466
Net realized (losses) gains on investments (34,464
)
 (6,962
)
Total revenues 1,840,737
1,655,907
Expenses  
 
Net claims and claim expenses incurred 446,230
1,635,656
Acquisition expenses 280,697
237,594
Operational expenses 109,586
85,838
Corporate expenses 24,418
71,813
Interest expense 37,602
28,218
Total expenses 898,533
2,059,119
Income (loss) before minority interest and taxes 942,204
(403,212
)
Minority interest – DaVinciRe (144,159
)
 156,449
Income (loss) before taxes 798,045
(246,763
)
Income tax expense (935
)
 —
Net income (loss) 797,110
(246,763
)
Dividends on preference shares (35,475
)
 (34,650
)
Net income (loss) available (attributable) to common shareholders $ 761,635
$ (281,413
)
Operating income (loss) available (attributable) to common shareholders per Common Share – diluted (1) (2) $ 11.05
$ (3.89
)
Net income (loss) available (attributable) to common shareholders per Common Share – basic $ 10.72
$ (3.99
)
Net income (loss) available (attributable) to common shareholders per Common Share – diluted (2) $ 10.57
$ (3.99
)
Average shares outstanding – basic 71,064
70,592
Average shares outstanding – diluted (2) 72,073
70,592
Net claims and claim expense ratio 29.2
%
 116.6
%
Underwriting expense ratio 25.5
%
 23.1
%
Combined ratio 54.7
%
 139.7
%
Operating return on average common equity – annualized (1) 37.9
%
 (13.3
%)
(1) Operating income (loss) excludes net realized gains and losses on investments. See Comments on Regulation G for a reconciliation to net income (loss).
(2) In accordance with FAS 128, earnings per share calculations use average common shares outstanding – basic, when in a net loss position.

3



RenaissanceRe Holdings Ltd.
Consolidated Segment Underwriting Results – Quarter to Date


  Three months ended December 31, 2006
  Reinsurance Individual Risk Eliminations (1) Total
Gross premiums written $ 51,719
$ 141,601
$ 1,632
$ 194,952
Net premiums written $ 52,026
$ 104,820
  $ 156,846
Net premiums earned $ 244,273
$ 135,815
  $ 380,088
Net claims and claim expenses incurred 54,183
43,097
  97,280
Acquisition expenses 27,837
45,451
  73,288
Operational expenses 21,603
10,632
  32,235
Underwriting income $ 140,650
$ 36,635
  $ 177,285
Net claims and claim expenses incurred – current accident year $ 79,666
$ 47,507
  $ 127,173
Net claims and claim expenses incurred – prior accident years (25,483
)
 (4,410
)
   (29,893
)
Net claims and claim expenses incurred – total $ 54,183
$ 43,097
  $ 97,280
Net claims and claim expense ratio – current accident year 32.6
%
 35.0
%
   33.5
%
Net claims and claim expense ratio – prior accident years (10.4
%)
 (3.2
%)
   (7.9
%)
Net claims and claim expense ratio – calendar year 22.2
%
 31.8
%
   25.6
%
Underwriting expense ratio 20.2
%
 41.3
%
   27.8
%
Combined ratio 42.4
%
 73.1
%
   53.4
%

  Three months ended December 31, 2005
  Reinsurance Individual Risk Eliminations (1) Total
Gross premiums written $ 155,604
$ 153,918
$ (21,000
)
 $ 288,522
Net premiums written $ 137,093
$ 112,388
  $ 249,481
Net premiums earned $ 309,849
$ 104,258
  $ 414,107
Net claims and claim expenses incurred 572,393
90,087
  662,480
Acquisition expenses 30,196
44,361
  74,557
Operational expenses 15,466
5,293
  20,759
Underwriting loss $ (308,206
)
 $ (35,483
)
   $ (343,689
)
Net claims and claim expenses incurred – current accident year $ 566,456
$ 91,215
  $ 657,671
Net claims and claim expenses incurred – prior accident years 5,937
(1,128
)
   4,809
Net claims and claim expenses incurred – total $ 572,393
$ 90,087
  $ 662,480
Net claims and claim expense ratio – current accident year 182.8
%
 87.5
%
   158.8
%
Net claims and claim expense ratio – prior accident years 1.9
%
 (1.1
%)
   1.2
%
Net claims and claim expense ratio – calendar year 184.7
%
 86.4
%
   160.0
%
Underwriting expense ratio 14.7
%
 47.6
%
   23.0
%
Combined ratio 199.4
%
 134.0
%
   183.0
%
(1) Represents gross premiums ceded from the Individual Risk segment to the Reinsurance segment.

4



Table of Contents

RenaissanceRe Holdings Ltd.
Consolidated Segment Underwriting Results – Year to Date


  Twelve months ended December 31, 2006
  Reinsurance Individual Risk Eliminations (1) Total
Gross premiums written $ 1,321,163
$ 689,392
$ (66,908
)
 $ 1,943,647
Net premiums written $ 1,039,103
$ 490,517
  $ 1,529,620
Net premiums earned $ 972,017
$ 557,760
  $ 1,529,777
Net claims and claim expenses incurred 148,052
298,178
  446,230
Acquisition expenses 115,324
165,373
  280,697
Operational expenses 72,405
37,181
  109,586
Underwriting income $ 636,236
$ 57,028
  $ 693,264
Net claims and claim expenses incurred – current accident year $ 273,286
$ 309,502
  $ 582,788
Net claims and claim expenses incurred – prior accident years (125,234
)
 (11,324
)
   (136,558
)
Net claims and claim expenses incurred – total $ 148,052
$ 298,178
  $ 446,230
Net claims and claim expense ratio – current accident year 28.1
%
 55.5
%
   38.1
%
Net claims and claim expense ratio – prior accident years (12.9
%)
 (2.0
%)
   (8.9
%)
Net claims and claim expense ratio – calendar year 15.2
%
 53.5
%
   29.2
%
Underwriting expense ratio 19.3
%
 36.3
%
   25.5
%
Combined ratio 34.5
%
 89.8
%
   54.7
%

  Twelve months ended December 31, 2005
  Reinsurance Individual Risk Eliminations (1) Total
Gross premiums written $ 1,202,975
$ 651,430
$ (45,277
)
 $ 1,809,128
Net premiums written $ 1,024,010
$ 519,277
  $ 1,543,287
Net premiums earned $ 947,389
$ 455,320
  $ 1,402,709
Net claims and claim expenses incurred 1,252,644
383,012
  1,635,656
Acquisition expenses 92,763
144,831
  237,594
Operational expenses 63,522
22,316
  85,838
Underwriting loss $ (461,540
)
 $ (94,839
)
   $ (556,379
)
Net claims and claim expenses incurred – current accident year $ 1,483,981
$ 393,137
  $ 1,877,118
Net claims and claim expenses incurred – prior accident years (231,337
)
 (10,125
)
   (241,462
)
Net claims and claim expenses incurred – total $ 1,252,644
$ 383,012
  $ 1,635,656
Net claims and claim expense ratio – current accident year 156.6
%
 86.3
%
   133.8
%
Net claims and claim expense ratio – prior accident years (24.4
%)
 (2.2
%)
   (17.2
%)
Net claims and claim expense ratio – calendar year 132.2
%
 84.1
%
   116.6
%
Underwriting expense ratio 16.5
%
 36.7
%
   23.1
%
Combined ratio 148.7
%
 120.8
%
   139.7
%
(1) Represents gross premiums ceded from the Individual Risk segment to the Reinsurance segment.

5



RenaissanceRe Holdings Ltd.
Reinsurance Segment – Catastrophe and Specialty Underwriting Results


  Three months ended December 31, 2006 Three months ended December 31, 2005
  Catastrophe Specialty Total Catastrophe Specialty Total
Gross premiums written $ 23,184
$ 28,535
$ 51,719
$ 120,154
$ 35,450
$ 155,604
Net premiums written $ 23,491
$ 28,535
$ 52,026
$ 101,643
$ 35,450
$ 137,093
Net premiums earned $ 179,309
$ 64,964
$ 244,273
$ 221,444
$ 88,405
$ 309,849
Net claims and claim expenses incurred 34,973
19,210
54,183
489,043
83,350
572,393
Acquisition expenses 20,337
7,500
27,837
19,386
10,810
30,196
Operational expenses 13,944
7,659
21,603
10,323
5,143
15,466
Underwriting income (loss) $ 110,055
$ 30,595
$ 140,650
$ (297,308
)
 $ (10,898
)
 $ (308,206
)
Net claims and claim expenses incurred – current accident year $ 38,433
$ 41,233
$ 79,666
$ 467,392
$ 99,064
$ 566,456
Net claims and claim expenses incurred – prior accident years (3,460
)
 (22,023
)
 (25,483
)
 21,651
(15,714
)
 5,937
Net claims and claim expenses incurred – total $ 34,973
$ 19,210
$ 54,183
$ 489,043
$ 83,350
$ 572,393
Net claims and claim expense ratio – current accident year 21.4
%
 63.5
%
 32.6
%
 211.1
%
 112.1
%
 182.8
%
Net claims and claim expense ratio – prior accident years (1.9
%)
 (33.9
%)
 (10.4
%)
 9.8
%
 (17.8
%)
 1.9
%
Net claims and claim expense ratio – calendar year 19.5
%
 29.6
%
 22.2
%
 220.9
%
 94.3
%
 184.7
%
Underwriting expense ratio 19.1
%
 23.3
%
 20.2
%
 13.4
%
 18.0
%
 14.7
%
Combined ratio 38.6
%
 52.9
%
 42.4
%
 234.3
%
 112.3
%
 199.4
%

6



RenaissanceRe Holdings Ltd.
Reinsurance Segment – Catastrophe and Specialty Underwriting Results


  Twelve months ended December 31, 2006 Twelve months ended December 31, 2005
  Catastrophe Specialty Total Catastrophe Specialty Total
Gross premiums written $ 1,099,114
$ 222,049
$ 1,321,163
$ 775,573
$ 427,402
$ 1,202,975
Net premiums written $ 817,054
$ 222,049
$ 1,039,103
$ 596,608
$ 427,402
$ 1,024,010
Net premiums earned $ 733,777
$ 238,240
$ 972,017
$ 545,321
$ 402,068
$ 947,389
Net claims and claim expenses incurred 131,475
16,577
148,052
1,025,389
227,255
1,252,644
Acquisition expenses 82,936
32,388
115,324
47,620
45,143
92,763
Operational expenses 47,364
25,041
72,405
35,746
27,776
63,522
Underwriting income (loss) $ 472,002
$ 164,234
$ 636,236
$ (563,434
)
 $ 101,894
$ (461,540
)
Net claims and claim expenses incurred – current accident year $ 117,528
$ 155,758
$ 273,286
$ 1,087,141
$ 396,840
$ 1,483,981
Net claims and claim expenses incurred – prior accident years 13,947
(139,181
)
 (125,234
)
 (61,752
)
 (169,585
)
 (231,337
)
Net claims and claim expenses incurred – total $ 131,475
$ 16,577
$ 148,052
$ 1,025,389
$ 227,255
$ 1,252,644
Net claims and claim expense ratio – current accident year 16.0
%
 65.4
%
 28.1
%
 199.3
%
 98.7
%
 156.6
%
Net claims and claim expense ratio – prior accident years 1.9
%
 (58.4
%)
 (12.9
%)
 (11.3
%)
 (42.2
%)
 (24.4
%)
Net claims and claim expense ratio – calendar year 17.9
%
 7.0
%
 15.2
%
 188.0
%
 56.5
%
 132.2
%
Underwriting expense ratio 17.8
%
 24.1
%
 19.3
%
 15.3
%
 18.1
%
 16.5
%
Combined ratio 35.7
%
 31.1
%
 34.5
%
 203.3
%
 74.6
%
 148.7
%

7



RenaissanceRe Holdings Ltd.
Reinsurance Segment Gross Premiums Written


  Three months ended
  Dec. 31, 2006 Sept. 30, 2006 June 30, 2006 March 31, 2006 Dec. 31, 2005
Renaissance catastrophe premiums $ 20,630
$ 92,150
$ 377,063
$ 283,797
$ 84,133
Renaissance specialty premiums 28,164
20,367
27,736
121,843
35,457
Total Renaissance premiums 48,794
112,517
404,799
405,640
119,590
DaVinci catastrophe premiums 2,554
10,578
155,430
156,913
36,021
DaVinci specialty premiums 371
250
2,096
21,221
(7
)
Total DaVinci premiums 2,925
10,828
157,526
178,134
36,014
Total Reinsurance premiums $ 51,719
$ 123,345
$ 562,325
$ 583,774
$ 155,604
Total specialty premiums (1) $ 28,535
$ 20,617
$ 29,832
$ 143,064
$ 35,450
Total catastrophe premiums $ 23,184
$ 102,728
$ 532,493
$ 440,710
$ 120,154
    Catastrophe premiums written on behalf of our joint venture,
Top Layer Re (2)		 —
1,189
24,270
25,785
—
Catastrophe premiums assumed from the Individual Risk segment 1,632
(31,109
)
 (28,990
)
 (6,106
)
 (21,000
)
Total managed catastrophe premiums (3) 24,816
72,808
527,773
460,389
99,154
        Managed catastrophe premiums assumed on behalf of
    fully-collateralized joint ventures		 322
(3,046
)
 (111,253
)
 —
—
Total managed catastrophe premiums, net of fully-collateralized joint ventures (3) $ 25,138
$ 69,762
$ 416,520
$ 460,389
$ 99,154
(1) Total specialty premiums written includes $nil, $0.7 million, $1.6 million, $nil and $nil of premiums assumed from the Individual Risk segment for the three months ended December 31, 2006, September 30, 2006, June 30, 2006, March 31, 2006 and December 31, 2005, respectively.
(2) Top Layer Re is accounted for under the equity method of accounting.
(3) See Comments on Regulaton G.

8



RenaissanceRe Holdings Ltd.
Reinsurance Segment Gross Premiums Written


  Twelve months ended
  Dec. 31, 2006 Dec. 31, 2005
Renaissance catastrophe premiums $ 773,638
$ 573,393
Renaissance specialty premiums 198,111
402,207
Total Renaissance premiums 971,749
975,600
DaVinci catastrophe premiums 325,476
202,180
DaVinci specialty premiums 23,938
25,195
Total DaVinci premiums 349,414
227,375
Total Reinsurance premiums $ 1,321,163
$ 1,202,975
Total specialty premiums (1) $ 222,049
$ 427,402
Total catastrophe premiums $ 1,099,114
$ 775,573
Catastrophe premiums written on behalf of our joint venture, Top Layer Re (2) 51,244
59,908
Catastrophe premiums assumed from the Individual Risk segment (64,573
)
 (43,594
)
Total managed catastrophe premiums (3) 1,085,785
791,887
Managed catastrophe premiums assumed on behalf of fully-collateralized joint ventures (113,977
)
 —
Total managed catastrophe premiums, net of fully-collateralized joint ventures (3) $ 971,808
$ 791,887
(1) Total specialty premiums written includes $2.3 million and $1.7 million of premiums assumed from the Individual Risk segment for the years ended December 31, 2006 and 2005, respectively.
(2) Top Layer Re is accounted for under the equity method of accounting.
(3) See Comments on Regulation G.

9



RenaissanceRe Holdings Ltd.
Individual Risk Segment Gross Premiums Written


  Three months ended
  Dec. 31, 2006 Sept. 30, 2006 June 30, 2006 March 31, 2006 Dec. 31, 2005
By Type of Business  
 
 
 
 
Commercial multi-line $ 62,942
$ 92,056
$ 137,162
$ 66,827
$ 69,468
Commercial property 47,199
46,597
78,407
54,002
38,338
Personal lines property 31,460
27,585
(4,740
)
 49,895
46,112
Total Individual Risk premiums $ 141,601
$ 166,238
$ 210,829
$ 170,724
$ 153,918

  Twelve months ended
  Dec. 31, 2006 Dec. 31, 2005
By Type of Business  
 
Commercial multi-line $ 358,987
$ 316,553
Commercial property 226,205
123,236
Personal lines property 104,200
211,641
Total Individual Risk premiums $ 689,392
$ 651,430

10



DaVinciRe Holdings Ltd and Subsidiary
Consolidated Statements of Operations


  Three months ended
December 31,		 Twelve months ended
December 31,
  2006 2005 2006 2005
Revenues  
 
 
 
Gross premiums written $ 2,925
$ 36,014
$ 349,414
$ 227,375
Net premiums written $ 3,117
$ 36,014
$ 310,500
$ 226,547
Decrease (increase) in unearned premiums 66,821
49,136
(30,952
)
 (8,854
)
Net premiums earned 69,938
85,150
279,548
217,693
Net investment income 16,572
8,298
59,067
28,051
Net foreign exchange losses (1,428
)
 (792
)
 (4,066
)
 (1,131
)
Other (loss) income (1,045
)
 37
(2,129
)
 45
Net realized gains (losses) on investments 646
(7,014
)
 (7,740
)
 (10,258
)
Total revenues 84,683
85,679
324,680
234,400
Expenses  
 
 
 
Net claims and claim expenses incurred 9,251
222,692
46,574
400,588
Acquisition expenses 16,567
5,610
58,326
17,957
Operational and corporate expenses 8,154
6,231
29,928
20,971
Interest expense 2,469
1,119
8,549
4,138
Total expenses 36,441
235,652
143,377
443,654
Income (loss) before minority interest 48,242
(149,973
)
 181,303
(209,254
)
Minority interest (103
)
 298
(382
)
 410
Net income (loss) $ 48,139
$ (149,675
)
 $ 180,921
$ (208,844
)
Net claims and claim expense ratio – current accident year 16.3
%
 254.3
%
 14.7
%
 189.7
%
Net claims and claim expense ratio – prior accident years (3.1
%)
 7.2
%
 1.9
%
 (5.7
%)
Net claims and claim expense ratio – calendar year 13.2
%
 261.5
%
 16.6
%
 184.0
%
Underwriting expense ratio 35.3
%
 13.9
%
 31.6
%
 17.9
%
Combined ratio 48.5
%
 275.4
%
 48.2
%
 201.9
%

11



RenaissanceRe Holdings Ltd.
Summary Consolidated Balance Sheets


  Dec. 31, 2006 Sept. 30, 2006 June 30, 2006 March 31, 2006 Dec. 31, 2005
Assets  
 
 
 
 
Fixed maturity investments available for sale, at fair value $ 3,111,930
$ 3,176,045
$ 3,079,855
$ 3,101,935
$ 2,872,294
Short term investments, at cost 2,410,971
1,841,330
1,911,693
1,621,623
1,653,618
Other investments, at fair value 592,829
559,256
526,844
506,974
586,467
Investments in other ventures, under equity method 227,075
195,787
186,979
172,618
178,774
Total investments 6,342,805
5,772,418
5,705,371
5,403,150
5,291,153
Cash and cash equivalents 214,399
245,817
187,340
240,684
174,001
Premiums receivable 419,150
623,869
857,687
566,956
363,105
Ceded reinsurance balances 133,971
232,439
241,315
62,856
57,134
Losses recoverable 301,854
394,335
464,556
625,697
673,190
Accrued investment income 41,234
38,437
37,639
31,785
25,808
Deferred acquisition costs 106,918
138,922
158,600
138,802
107,951
Other assets 208,695
93,320
86,121
88,332
178,919
Total assets $ 7,769,026
$ 7,539,557
$ 7,738,629
$ 7,158,262
$ 6,871,261
Liabilities, Minority Interest and Shareholders’ Equity  
 
 
 
 
Liabilities  
 
 
 
 
Reserve for claims and claim expenses $ 2,098,155
$ 2,155,213
$ 2,347,525
$ 2,419,252
$ 2,614,551
Reserve for unearned premiums 578,424
900,133
1,113,391
853,629
501,744
Debt 450,000
410,000
485,000
500,000
500,000
Subordinated obligation to capital trust 103,093
103,093
103,093
103,093
103,093
Reinsurance balances payable 395,083
437,653
477,477
268,620
292,307
Other liabilities 213,490
123,827
118,191
65,850
142,815
Total liabilities 3,838,245
4,129,919
4,644,677
4,210,444
4,154,510
Minority interest – DaVinciRe Holdings 650,284
612,431
555,433
531,929
462,911
Shareholders’ Equity  
 
 
 
 
Preference shares 800,000
500,000
500,000
500,000
500,000
Common shares and additional paid-in capital 356,263
358,700
356,462
352,055
351,285
Accumulated other comprehensive income 25,217
25,472
4,993
2,088
4,760
Retained earnings 2,099,017
1,913,035
1,677,064
1,561,746
1,397,795
Total shareholders’ equity 3,280,497
2,797,207
2,538,519
2,415,889
2,253,840
Total liabilities, minority interest and shareholders’ equity $ 7,769,026
$ 7,539,557
$ 7,738,629
$ 7,158,262
$ 6,871,261
Book value per common share $ 34.38
$ 31.86
$ 28.37
$ 26.65
$ 24.52
Common shares outstanding 72,140
72,108
71,849
71,881
71,523

12



RenaissanceRe Holdings Ltd.
Composition of Investment Portfolio


  Dec. 31, 2006 Sept. 30, 2006 June 30, 2006 Mar. 31, 2006 Dec. 31, 2005
TYPE OF INVESTMENT                    
U.S. treasuries and agencies $ 1,180,064
18.6
%
 $ 1,403,475
24.2
%
 $ 1,388,386
24.3
%
 $ 1,524,192
28.1
%
 $ 1,040,432
19.6
%
Non-U.S. government 154,848
2.4
%
 153,396
2.7
%
 147,249
2.6
%
 132,996
2.5
%
 127,961
2.4
%
Corporate 995,410
15.7
%
 855,272
14.8
%
 817,097
14.3
%
 599,597
11.1
%
 554,666
10.5
%
Mortgage-backed 397,741
6.3
%
 389,868
6.8
%
 396,794
7.0
%
 489,805
9.1
%
 739,053
14.0
%
Asset-backed 383,867
6.1
%
 374,034
6.5
%
 330,329
5.8
%
 355,345
6.6
%
 410,182
7.8
%
Total fixed maturities available for sale 3,111,930
49.1
%
 3,176,045
55.0
%
 3,079,855
54.0
%
 3,101,935
57.4
%
 2,872,294
54.3
%
Short term investments, at cost 2,410,971
38.0
%
 1,841,330
31.9
%
 1,911,693
33.5
%
 1,621,623
30.0
%
 1,653,618
31.2
%
Other investments, at fair value 592,829
9.3
%
 559,256
9.7
%
 526,844
9.2
%
 506,974
9.4
%
 586,467
11.1
%
Total managed investment portfolio 6,115,730
96.4
%
 5,576,631
96.6
%
 5,518,392
96.7
%
 5,230,532
96.8
%
 5,112,379
96.6
%
Investments in other ventures, under equity method 227,075
3.6
%
 195,787
3.4
%
 186,979
3.3
%
 172,618
3.2
%
 178,774
3.4
%
Total investments $ 6,342,805
100.0
%
 $ 5,772,418
100.0
%
 $ 5,705,371
100.0
%
 $ 5,403,150
100.0
%
 $ 5,291,153
100.0
%
CREDIT QUALITY OF FIXED MATURITIES  
 
 
 
 
 
 
 
 
 
AAA $ 2,248,182
72.2
%
 $ 2,455,167
77.3
%
 $ 2,392,763
77.7
%
 $ 2,578,170
83.2
%
 $ 2,356,609
82.1
%
AA 479,340
15.4
%
 339,209
10.7
%
 308,840
10.0
%
 201,560
6.5
%
 202,417
7.0
%
A 167,068
5.4
%
 172,119
5.4
%
 181,165
5.9
%
 124,810
4.0
%
 132,120
4.6
%
BBB 139,453
4.5
%
 138,423
4.4
%
 130,218
4.2
%
 131,444
4.2
%
 111,001
3.9
%
Non-investment grade 77,887
2.5
%
 71,127
2.2
%
 66,869
2.2
%
 65,951
2.1
%
 70,147
2.4
%
Total fixed maturities available for sale $ 3,111,930
100.0
%
 $ 3,176,045
100.0
%
 $ 3,079,855
100.0
%
 $ 3,101,935
100.0
%
 $ 2,872,294
100.0
%
MATURITY PROFILE OF FIXED MATURITIES  
 
 
 
 
 
 
 
 
Due in less than one year $ 508,982
16.4
%
 $ 329,405
10.4
%
 $ 299,264
9.7
%
 $ 317,280
10.3
%
 $ 241,954
8.4
%
Due after one through five years 1,539,509
49.5
%
 1,777,781
55.9
%
 1,769,729
57.4
%
 1,679,450
54.1
%
 1,220,387
42.5
%
Due after five through ten years 178,143
5.7
%
 215,586
6.8
%
 199,011
6.5
%
 171,807
5.5
%
 175,930
6.1
%
Due after 10 years 103,688
3.3
%
 89,371
2.8
%
 84,728
2.8
%
 88,248
2.8
%
 84,788
3.0
%
U.S. mortgage-backed securities 397,741
12.8
%
 389,868
12.3
%
 396,794
12.9
%
 489,805
15.8
%
 739,053
25.7
%
U.S. asset-backed securities 383,867
12.3
%
 374,034
11.8
%
 330,329
10.7
%
 355,345
11.5
%
 410,182
14.3
%
Total fixed maturities available for sale $ 3,111,930
100.0
%
 $ 3,176,045
100.0
%
 $ 3,079,855
100.0
%
 $ 3,101,935
100.0
%
 $ 2,872,294
100.0
%

  As of or for the three months ended
  Dec. 31, 2006 Sept. 30, 2006 June 30, 2006 Mar. 31, 2006 Dec. 31, 2005
Average yield to maturity of fixed maturities and short term investments 5.3
%
 5.2
%
 5.5
%
 5.0
%
 4.6
%
Average duration of fixed maturities and short term investments 1.3
1.4
1.4
1.4
1.4
Average credit quality of fixed maturities and short term investments AA
AA
AA
AA
AA

13



RenaissanceRe Holdings Ltd.
Summary of Other Investments


  Dec. 31, 2006 Sept. 30, 2006 June 30, 2006 Mar 31 2006 Dec. 31, 2005
TYPE OF INVESTMENT  
 
 
 
 
Private equity partnerships $ 223,245
$ 208,583
$ 194,280
$ 174,181
$ 167,864
Catastrophe bonds 114,614
50,041
—
—
—
Senior secured bank loan fund 81,428
79,831
78,535
77,771
76,451
Hedge funds 72,439
125,262
159,837
162,433
214,669
Non-U.S. convertible fund 36,080
32,815
32,149
31,077
28,083
European high yield credit fund 31,919
29,620
29,022
27,447
64,885
Medium term note representing an interest in a pool of European fixed income securities 30,000
30,000
30,000
30,000
30,000
Miscellaneous other investments 3,104
3,104
3,021
4,065
4,515
Total other investments $ 592,829
$ 559,256
$ 526,844
$ 506,974
$ 586,467
TYPE OF INVESTMENT  
 
 
 
 
Private equity partnerships 37.7
%
 37.2
%
 36.9
%
 34.5
%
 28.6
%
Catastrophe bonds 19.3
%
 8.9
%
 0.0
%
 0.0
%
 0.0
%
Senior secured bank loan fund 13.7
%
 14.3
%
 14.9
%
 15.3
%
 13.0
%
Hedge funds 12.2
%
 22.4
%
 30.3
%
 32.0
%
 36.6
%
Non-U.S. convertible fund 6.1
%
 5.9
%
 6.1
%
 6.1
%
 4.8
%
European high yield credit fund 5.4
%
 5.3
%
 5.5
%
 5.4
%
 11.1
%
Medium term note representing an interest in a pool of European fixed income securities 5.1
%
 5.4
%
 5.7
%
 5.9
%
 5.1
%
Miscellaneous other investments 0.5
%
 0.6
%
 0.6
%
 0.8
%
 0.8
%
Total other investments 100.0
%
 100.0
%
 100.0
%
 100.0
%
 100.0
%

14



RenaissanceRe Holdings Ltd.
Reserves for Claims and Claim Expenses


December 31, 2006 Case
Reserves		 Additional
Case
Reserves		 IBNR Total
Property catastrophe reinsurance $ 366,337
$ 282,544
$ 226,579
$ 875,460
Specialty reinsurance 104,010
77,315
412,466
593,791
Total Reinsurance 470,347
359,859
639,045
1,469,251
Individual Risk 272,119
15,611
341,174
628,904
Total $ 742,466
$ 375,470
$ 980,219
$ 2,098,155
September 30, 2006  
 
 
 
Property catastrophe reinsurance $ 432,924
$ 265,016
$ 221,404
$ 919,344
Specialty reinsurance 104,298
75,811
414,250
594,359
Total Reinsurance 537,222
340,827
635,654
1,513,703
Individual Risk 286,624
19,774
335,112
641,510
Total $ 823,846
$ 360,601
$ 970,766
$ 2,155,213
June 30, 2006  
 
 
 
Property catastrophe reinsurance $ 498,426
$ 309,485
$ 224,725
$ 1,032,636
Specialty reinsurance 175,937
88,563
414,323
678,823
Total Reinsurance 674,363
398,048
639,048
1,711,459
Individual Risk 284,780
15,566
335,720
636,066
Total $ 959,143
$ 413,614
$ 974,768
$ 2,347,525
March 31, 2006  
 
 
 
Property catastrophe reinsurance $ 555,631
$ 428,796
$ 158,488
$ 1,142,915
Specialty reinsurance 158,410
103,011
403,464
664,885
Total Reinsurance 714,041
531,807
561,952
1,807,800
Individual Risk 240,624
—
370,828
611,452
Total $ 954,665
$ 531,807
$ 932,780
$ 2,419,252
December 31, 2005  
 
 
 
Property catastrophe reinsurance $ 544,750
$ 576,992
$ 207,087
$ 1,328,829
Specialty reinsurance 180,868
95,312
414,445
690,625
Total Reinsurance 725,618
672,304
621,532
2,019,454
Individual Risk 194,016
—
401,081
595,097
Total $ 919,634
$ 672,304
$ 1,022,613
$ 2,614,551

15



RenaissanceRe Holdings Ltd.
Paid to Incurred Analysis


  Three months ended December 31, 2006 Three months ended December 31, 2005
  Gross Recoveries Net Gross Recoveries Net
Reserve for losses and loss expenses, beginning of period $ 2,155,213
$ 394,335
$ 1,760,878
$ 2,300,231
$ 543,460
$ 1,756,771
Incurred losses and loss expenses  
 
 
 
 
 
Current year 164,809
37,636
127,173
886,731
229,060
657,671
Prior years (36,784
)
 (6,891
)
 (29,893
)
 1
(4,808
)
 4,809
Total incurred losses and loss expenses 128,025
30,745
97,280
886,732
224,252
662,480
Paid losses and loss expenses  
 
 
 
 
 
Current year 59,962
20,590
39,372
495,546
23,250
472,296
Prior years 125,121
102,636
22,485
76,866
71,272
5,594
Total paid losses and loss expenses 185,083
123,226
61,857
572,412
94,522
477,890
Reserve for losses and loss expenses, end of period $ 2,098,155
$ 301,854
$ 1,796,301
$ 2,614,551
$ 673,190
$ 1,941,361
  Twelve months ended December 31, 2006 Twelve months ended December 31, 2005
  Gross Recoveries Net Gross Recoveries Net
Reserve for losses and loss expenses, beginning of period $ 2,614,551
$ 673,190
$ 1,941,361
$ 1,459,398
$ 217,788
$ 1,241,610
Incurred losses and loss expenses  
 
 
 
 
 
Current year 668,941
86,153
582,788
2,423,783
546,665
1,877,118
Prior years (164,831
)
 (28,273
)
 (136,558
)
 (219,421
)
 22,041
(241,462
)
Total incurred losses and loss expenses 504,110
57,880
446,230
2,204,362
568,706
1,635,656
Paid losses and loss expenses  
 
 
 
 
 
Current year 172,800
33,532
139,268
624,971
27,974
596,997
Prior years 847,706
395,684
452,022
424,238
85,330
338,908
Total paid losses and loss expenses 1,020,506
429,216
591,290
1,049,209
113,304
935,905
Reserve for losses and loss expenses, end of period $ 2,098,155
$ 301,854
$ 1,796,301
$ 2,614,551
$ 673,190
$ 1,941,361

16



RenaissanceRe Holdings Ltd.
Equity in Earnings of Other Ventures


  Three months ended
  December 31, 2006 September 30, 2006 June 30, 2006 March 31, 2006 December 31, 2005
Channel Re $ 5,653
$ 5,142
$ 4,639
$ 3,663
$ 4,320
Top Layer Re 3,232
3,176
3,506
2,789
1,404
Starbound 880
941
305
—
—
Tower Hill (1,141
)
 872
771
100
(453
)
Total equity in earnings of other ventures $ 8,624
$ 10,131
$ 9,221
$ 6,552
$ 5,271

  Year ended
  December 31, 2006 December 31, 2005
Channel Re $ 19,097
$ 15,388
Top Layer Re 12,703
12,524
Starbound 2,126
—
Tower Hill 602
347
Total equity in earnings of other ventures $ 34,528
$ 28,259

17



RenaissanceRe Holdings Ltd.
Ratings


At December 31, 2006 S&P A.M. Best Moody’s
REINSURANCE SEGMENT1  
   
Renaissance Reinsurance A+ A A2
DaVinci A A —
Top Layer Re AA A+ —
Renaissance Europe —
A —
INDIVIDUAL RISK SEGMENT1  
   
Glencoe —
A− —
Stonington —
A− —
Stonington Lloyds —
A− —
Lantana —
A− —
RENAISSANCERE2 A− — Baa1
1 The A.M. Best, S&P and Moody’s ratings for the companies in the Reinsurance and Individual Risk segments reflect the insurer’s financial strength rating.
2 The S&P and Moody’s ratings for RenaissanceRe represent the credit ratings on its senior unsecured debt.

18



RenaissanceRe Holdings Ltd.
Comments on Regulation G

In addition to the GAAP financial measures set forth in this Financial Supplement, the Company has included certain non-GAAP financial measures in this Financial Supplement within the meaning of Regulation G. The Company has consistently provided these financial measurements in previous investor communications 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 (loss)’’ 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 (loss)’’ as used herein differs from ‘‘net income (loss) available (attributable) to common shareholders’’, which the Company believes is the most directly comparable GAAP measure, by the exclusion of net realized gains and losses on investments. In addition, the Company’s management believes that ‘‘operating income (loss)’’ is useful to investors because it more accurately measures and predicts the Company’s results of operations by removing the variability arising from fluctuations in the Company’s investment portfolio, which is not considered by management to be a relevant indicator of business operations. The Company also uses ‘‘operating income (loss)’’ to calculate ‘‘operating income (loss) per common share’’ and ‘‘operating return on average common equity, annualized’’. The following is a reconciliation of 1) net income (loss) available (attributable) to common shareholders to operating income (loss) available (attributable) to common shareholders; 2) net income (loss) available (attributable) to common shareholders per common share to operating income (loss) available (attributable) to common shareholders per common share; and 3) return on average common equity, annualized to operating return on average common equity, annualized:


  Three months ended Year ended
  Dec. 31, 2006 Sept. 30, 2006 June 30, 2006 March 31, 2006 Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2005
Net income (loss) available (attributable) to common shareholders $ 201,135
$ 251,112
$ 130,408
$ 178,980
$ (210,402
)
 $ 761,635
$ (281,413
)
Adjustment for net realized losses (gains) on investments (2,489
)
 (4,151
)
 24,348
16,756
3,548
34,464
6,962
Operating income (loss) available (attributable) to common shareholders $ 198,646
$ 246,961
$ 154,756
$ 195,736
$ (206,854
)
 $ 796,099
$ (274,451
)
Net income (loss) available (attributable) to common shareholders per common share – diluted (1) $ 2.78
$ 3.48
$ 1.81
$ 2.49
$ (2.97
)
 $ 10.57
$ (3.99
)
Adjustment for net realized losses (gains) on investments (1) (0.04
)
 (0.06
)
 0.34
0.24
0.05
0.48
0.10
Operating income (loss) available (attributable) to common shareholders per common share – diluted (1) $ 2.74
$ 3.42
$ 2.15
$ 2.73
$ (2.92
)
 $ 11.05
$ (3.89
)
Return on average common equity, annualized 33.7
%
 46.3
%
 26.4
%
 39.0
%
 (45.0
%)
 36.3
%
 (13.6
%)
Adjustment for net realized losses (gains) on investments (0.4
%)
 (0.7
%)
 4.9
%
 3.7
%
 0.8
%
 1.6
%
 0.3
%
Operating return on average common equity, annualized 33.3
%
 45.6
%
 31.3
%
 42.7
%
 (44.2
%)
 37.9
%
 (13.3
%)
(1) In accordance with FAS 128, earnings per share calculations use average common shares outstanding – basic, when in a net loss position.

19



The Company has also included in this Press Release ‘‘managed catastrophe premiums’’ and ‘‘managed catastrophe premiums, net of fully-collateralized joint ventures.’’ ‘‘Managed catastrophe premiums’’ is defined as gross catastrophe premiums written by Renaissance Reinsurance and its related joint ventures, excluding catastrophe premiums assumed from the Company’s Individual Risk segment. ‘‘Managed catastrophe premiums’’ differ from total catastrophe premiums, which the Company believes is the most directly comparable GAAP measure, due to the inclusion of catastrophe premiums written on behalf of the Company’s joint venture Top Layer Re, which is accounted for under the equity method of accounting and the exclusion of catastrophe premiums assumed from the Company’s Individual Risk segment. ‘‘Managed catastrophe premiums, net of fully-collateralized joint ventures’’ differ from total catastrophe premiums, which the Company believes is the most directly comparable GAAP measure, due to: 1) the inclusion of catastrophe premiums written on behalf of the Company’s joint venture Top Layer Re, which is accounted for under the equity method of accounting; 2) the exclusion of catastrophe premiums assumed from the Company’s Individual Risk segment; and 3) the deduction of catastrophe premiums that are written by the Company and ceded directly to the Company’s fully-collateralized joint ventures which include Starbound Re and Timicuan Reinsurance Ltd. The Company’s management believes ‘‘managed catastrophe premiums’’ is useful to investors and other interested parties because it provides a measure of total catastrophe reinsurance premiums assumed by the Company through its consolidated subsidiaries and related joint ventures. The Company believes ‘‘managed catastrophe premiums, net of fully-collateralized joint ventures’’ is also a useful measure to investors and other interested parties because it provides a measure of total catastrophe reinsurance premiums assumed by the Company through its consolidated subsidiaries and related joint ventures, net of catastrophe premiums assumed from the Company’s Individual Risk segment and net of catastrophe premiums written directly on behalf of the Company’s fully-collateralized joint ventures.

20