shareholders of $274.5 million in 2005. Net operating income (loss) excludes net realized investment losses of $34.5 million and $7.0 million for 2006 and 2005, respectively. Net operating income per common share was $11.05 in 2006, compared to a net operating loss per common share of $3.89 in 2005. Net income available to common shareholders was $761.6 million or $10.57 per common share in 2006, compared to a net loss attributable to common shareholders of $281.4 million or a net loss of $3.99 per common share for 2005.

The Company generated an operating return on average common equity of 37.9% for the year, compared to a negative 13.3% operating return on average common equity in 2005. The Company’s book value per common share increased 40.2% in 2006, compared to an 18.8% decrease in 2005. The Company’s 2006 results benefited significantly from light insured catastrophe loss activity compared to 2005.

Underwriting Results

Gross premiums written for 2006 were $1,943.6 million, a $134.5 million increase from 2005. The increase was principally driven by growth in the Company’s property catastrophe premium within the Company’s Reinsurance segment. As described in more detail below, the Company generated $693.3 million of underwriting income and had a combined ratio of 54.7% in 2006, compared to a $556.4 million underwriting loss and 139.7% combined ratio in 2005. The underwriting loss in 2005 was principally driven by Hurricanes Katrina, Rita and Wilma which occurred in 2005 and resulted in a $1,136.9 million underwriting loss ($891.9 million net negative impact). The Company experienced $136.6 million of favorable development on prior year reserves in 2006, compared to $241.5 million of favorable development in 2005. The favorable development in 2006 was principally attributable to lower than expected claims emergence in the Company’s specialty reinsurance unit.

Reinsurance Segment

Gross premiums written for the Company’s Reinsurance segment increased $118.2 million to $1,321.2 million in 2006, compared to $1,203.0 million in 2005, primarily due to a significant increase in the Company’s property catastrophe premium and partially offset by a decrease in the Company’s specialty reinsurance premium. For the year, the Company’s managed catastrophe premium, net of fully collateralized joint ventures, and its specialty premium, totaled $971.8 million and $222.0 million, respectively, compared to $791.9 million and $427.4 million, respectively, in 2005. Included in the Company’s 2005 managed catastrophe premium, net of fully collateralized joint ventures, and its 2005 specialty reinsurance premium, is $115.0 million and $38.4 million of loss related premium, respectively, related to the 2005 large hurricanes.

The Reinsurance segment generated $636.2 million of underwriting income and had a combined ratio of 34.5% in 2006, compared to a $461.5 million underwriting loss and 148.7% combined ratio in 2005. The underwriting loss in 2005 was principally driven by Hurricanes Katrina, Rita and Wilma which resulted in a $996.8 million underwriting loss ($751.8 million net negative impact). The Company experienced $125.2 million of favorable development on prior year reserves in 2006, compared to $231.3 million of favorable development in 2005. The favorable development in 2006 was principally attributable to lower than expected claims emergence in the Company’s specialty reinsurance unit.

Individual Risk Segment

Gross premiums written for the Company’s Individual Risk segment increased $38.0 million to $689.4 million in 2006, compared to $651.4 million in 2005. The increase was primarily due to an increase in commercial property premium, which more than offset a decrease in personal lines property premium. The Company elected to reduce its quota share personal lines property capacity in 2006 and redeploy this capacity to property catastrophe excess of loss reinsurance in the Company’s Reinsurance segment, where it found the pricing and terms more attractive.

The Individual Risk segment generated $57.0 million of underwriting income and had a combined ratio of 89.8% in 2006, compared to a $94.8 million underwriting loss and 120.8% combined ratio in 2005. The underwriting loss in 2005 was principally driven by Hurricanes Katrina, Rita and Wilma which resulted in a $140.1 million underwriting loss ($140.1 million net negative impact).

Other Items

•

Net investment income increased $100.9 million to $318.1 million for 2006, as a result of an increase in the Company’s average invested assets, combined with higher yields on the Company’s portfolio of fixed maturity investments available for sale and short term investments. Other investments, which include private equity and hedge fund investments, contributed $65.7 million to the Company’s net investment income in 2006 compared to $59.3 million in 2005.

•

Corporate expenses of $24.4 million were incurred during 2006, compared to $71.8 million in 2005. The decrease in such expenses is due in part to the difference in costs incurred related to the Company’s internal review and the ongoing investigations into the Company and certain of its present and former executive officers by governmental authorities. These costs totaled $5.3 million in 2006 compared to $39.7 million in 2005. As noted above, the Company also incurred $13.3 million of compensation expense in 2005 related to the departure of the Company’s former Chairman and CEO in the fourth quarter of 2005.

•	The Company’s cash flows from operations were $813.3 million in 2006, compared to $335.6 million in 2005.

This press release includes certain non-GAAP financial measures including ‘‘operating income (loss) available (attributable) to common shareholders,’’ ‘‘operating income (loss) available (attributable) to common shareholders per common share – diluted,’’ ‘‘operating return on average common equity, annualized,’’ ‘‘managed catastrophe premiums’’ and ‘‘managed catastrophe premiums, 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.

Please refer to the RenaissanceRe Holdings Ltd. Financial Supplement December 31, 2006, which is posted on the Company’s website at www.renre.com, for additional information on the Company’s financial performance. RenaissanceRe Holdings Ltd. will host a conference call on Wednesday, February 7, 2007 at 9:00 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. 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 reports on Form 10-Q for the quarters ending March 31, 2006, June 30, 2006 and September 30, 2006.

INVESTOR CONTACT:			MEDIA CONTACT:
Todd R. Fonner			David Lilly or Dawn Dover
Senior Vice President			Kekst and Company
RenaissanceRe Holdings Ltd.			(212) 521-4800
(441) 239-4801

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RenaissanceRe Holdings Ltd. and Subsidiaries
Summary Consolidated Statements of Operations
For the three and twelve months ended December 31, 2006 and 2005
(in thousands of United States Dollars, except per share amounts)
(Unaudited)

			Three months ended												Twelve months ended
			December 31, 2006						December 31, 2005						December 31, 2006						December 31, 2005
Revenues
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
Decrease (increase) in unearned premiums					223,242						164,626						157						(140,578	)
Net premiums earned					380,088						414,107						1,529,777						1,402,709
Net investment income					83,233						59,126						318,106						217,252
Net foreign exchange (losses) gains					(1,715	)					(4,394	)					(3,293	)					5,183
Equity in earnings of other ventures					8,624						5,271						34,528						28,259
Other (loss) income					(4,160	)					11,032						(3,917	)					9,466
Net realized gains (losses) on investments					2,489						(3,548	)					(34,464	)					(6,962	)
Total revenues					468,559						481,594						1,840,737						1,655,907
Expenses
Net claims and claim expenses incurred					97,280						662,480						446,230						1,635,656
Acquisition expenses					73,288						74,557						280,697						237,594
Operational expenses					32,235						20,759						109,586						85,838
Corporate expenses					7,987						29,965						24,418						71,813
Interest expense					8,439						7,710						37,602						28,218
Total expenses					219,229						795,471						898,533						2,059,119
Income (loss) before minority interest and taxes					249,330						(313,877	)					942,204						(403,212	)
Minority interest – DaVinciRe Holdings					(38,665	)					112,138						(144,159	)					156,449
Income (loss) before taxes					210,665						(201,739	)					798,045						(246,763	)
Income tax expense					(42	)					—						(935	)					—
Net income (loss)					210,623						(201,739	)					797,110						(246,763	)
Dividends on preference shares					(9,488	)					(8,663	)					(35,475	)					(34,650	)
Net income (loss) available (attributable) to common shareholders				$	201,135					$	(210,402	)				$	761,635					$	(281,413	)
Operating income (loss) available (attributable) to common shareholders per Common Share – diluted (1), (2)				$	2.74					$	(2.92	)				$	11.05					$	(3.89	)
Net income (loss) available (attributable) to common shareholders per Common Share – basic				$	2.83					$	(2.97	)				$	10.72					$	(3.99	)
Net income (loss) available (attributable) to common shareholders per Common Share – diluted (2)				$	2.78					$	(2.97	)				$	10.57					$	(3.99	)
Average shares outstanding – basic					71,178						70,793						71,064						70,592
Average shares outstanding – diluted (2)					72,467						70,793						72,073						70,592
Net claims and claim expense ratio					25.6	%					160.0	%					29.2	%					116.6	%
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)	Excludes net realized gains (losses) on investments (see – Comments on Regulation G).

(2)	In accordance with FAS 128, earnings per share calculations use average common shares outstanding – basic, when in a net loss position.

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RenaissanceRe Holdings Ltd. and Subsidiaries
Summary Consolidated Balance Sheets
(in thousands of United States Dollars, except per share amounts)

			At
			December 31, 2006						December 31, 2005
			Unaudited						Audited
Assets
Fixed maturity investments available for sale, at fair value				$	3,111,930					$	2,872,294
Short term investments, at cost					2,410,971						1,653,618
Other investments, at fair value					592,829						586,467
Investments in other ventures, under equity method					227,075						178,774
Total investments					6,342,805						5,291,153
Cash and cash equivalents					214,399						174,001
Premiums receivable					419,150						363,105
Ceded reinsurance balances					133,971						57,134
Losses recoverable					301,854						673,190
Accrued investment income					41,234						25,808
Deferred acquisition costs					106,918						107,951
Other assets					208,695						178,919
Total assets				$	7,769,026					$	6,871,261
Liabilities, Minority Interest and Shareholders’ Equity
Liabilities
Reserve for claims and claim expenses				$	2,098,155					$	2,614,551
Reserve for unearned premiums					578,424						501,744
Debt					450,000						500,000
Subordinated obligation to capital trust					103,093						103,093
Reinsurance balances payable					395,083						292,307
Other liabilities					213,490						142,815
Total liabilities					3,838,245						4,154,510
Minority interest – DaVinciRe Holdings					650,284						462,911
Shareholders’ Equity
Preference shares					800,000						500,000
Common shares and additional paid-in capital					356,263						351,285
Accumulated other comprehensive income					25,217						4,760
Retained earnings					2,099,017						1,397,795
Total shareholders’ equity					3,280,497						2,253,840
Total liabilities, minority interest and shareholders’ equity				$	7,769,026					$	6,871,261
Book value per common share				$	34.38					$	24.52
Common shares outstanding					72,140						71,523

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RenaissanceRe Holdings Ltd. and Subsidiaries
Supplemental Financial Data — Segment Information (Cont’d.)
(in thousands of United States Dollars)
(Unaudited)

			Three months ended December 31, 2006
			Reinsurance						Individual Risk						Eliminations (1)						Other						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 investment income																							83,233						83,233
Equity in earnings of other ventures																							8,624						8,624
Other loss																							(4,160	)					(4,160	)
Interest and preference share dividends																							(17,927	)					(17,927	)
Minority interest – DaVinciRe Holdings																							(38,665	)					(38,665	)
Other items, net																							(9,744	)					(9,744	)
Net realized gains on investments																							2,489						2,489
Net income available to common shareholders																						$	23,850					$	201,135
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	%

(1)	Represents gross premiums ceded from the Individual Risk segment to the Reinsurance segment.

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RenaissanceRe Holdings Ltd. and Subsidiaries
Supplemental Financial Data — Segment Information (Cont’d.)
(in thousands of United States Dollars)
(Unaudited)

			Three months ended December 31, 2005
			Reinsurance						Individual Risk						Eliminations (1)						Other						Total
Gross premiums written (1)				$	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 investment income																							59,126						59,126
Equity in earnings of other ventures																							5,271						5,271
Other income																							11,032						11,032
Interest and preference share dividends																							(16,373	)					(16,373	)
Minority interest - DaVinciRe Holdings																							112,138						112,138
Other items, net																							(34,359	)					(34,359	)
Net realized losses on investments																							(3,548	)					(3,548	)
Net income (loss) available (attributable) to common shareholders																						$	133,287					$	(210,402	)
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.

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RenaissanceRe Holdings Ltd. and Subsidiaries
Supplemental Financial Data — Segment Information (cont’d.)
(in thousands of United States Dollars)
(Unaudited)

			Twelve months ended December 31, 2006
			Reinsurance						Individual Risk						Eliminations (1)						Other						Total
Gross premiums written (1)				$	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 investment income																							318,106						318,106
Equity in earnings of other ventures																							34,528						34,528
Other loss																							(3,917	)					(3,917	)
Interest and preference share dividends																							(73,077	)					(73,077	)
Minority interest - DaVinciRe Holdings																							(144,159	)					(144,159	)
Other items, net																							(28,646	)					(28,646	)
Net realized losses on investments																							(34,464	)					(34,464	)
Net income available to common shareholders																						$	68,371					$	761,635
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	%

(1)	Represents gross premiums ceded from the Individual Risk segment to the Reinsurance segment.

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RenaissanceRe Holdings Ltd. and Subsidiaries
Supplemental Financial Data — Segment Information
(in thousands of United States Dollars)
(Unaudited)

			Twelve months ended December 31, 2005
			Reinsurance						Individual Risk						Eliminations (1)						Other						Total
Gross premiums written (1)				$	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 investment income																							217,252						217,252
Equity in earnings of other ventures																							28,259						28,259
Other income																							9,466						9,466
Interest and preference share dividends																							(62,868	)					(62,868	)
Minority interest - DaVinciRe Holdings																							156,449						156,449
Other items, net																							(66,630	)					(66,630	)
Net realized losses on investments																							(6,962	)					(6,962	)
Net income (loss) available (attributable) to common shareholders																						$	274,966					$	(281,413	)
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.

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RenaissanceRe Holdings Ltd. and Subsidiaries
Supplemental Financial Data — Gross Premiums Written Analysis
(in thousands of United States Dollars)
(Unaudited)

			Three months ended												Twelve months ended
Reinsurance Segment			December 31, 2006						December 31, 2005						December 31, 2006						December 31, 2005
Renaissance catastrophe premiums				$	20,630					$	84,133					$	773,638					$	573,393
Renaissance specialty premiums					28,164						35,457						198,111						402,207
Total Renaissance premiums					48,794						119,590						971,749						975,600
DaVinci catastrophe premiums					2,554						36,021						325,476						202,180
DaVinci specialty premiums					371						(7	)					23,938						25,195
Total DaVinci premiums					2,925						36,014						349,414						227,375
Total Reinsurance premiums				$	51,719					$	155,604					$	1,321,163					$	1,202,975
Total specialty premiums (1)				$	28,535					$	35,450					$	222,049					$	427,402
Total catastrophe premiums				$	23,184					$	120,154					$	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					1,632						(21,000	)					(64,573	)					(43,594	)
Total managed catastrophe premiums (3)					24,816						99,154						1,085,785						791,887
Managed premiums assumed for fully-collateralized joint ventures – Renaissance					280						—						(102,687	)					—
Managed premiums assumed for fully-collateralized joint ventures – DaVinci					42						—						(11,290	)					—
Total managed catastrophe premiums, net of fully-collateralized joint ventures (3)				$	25,138					$	99,154					$	971,808					$	791,887

(1)	Total specialty premiums written includes $nil and $2.3 million of premiums assumed from the Individual Risk segment for the three and twelve months ended December 31, 2006, respectively, and $nil and $1.7 million of premiums assumed from the Individual Risk segment for the three and twelve months ended December 31, 2005, respectively.

(2)	Top Layer Re is accounted for under the equity method of accounting.

(3)	See Comments on Regulation G.

			Three months ended												Twelve months ended
Individual Risk Segment			December 31, 2006						December 31, 2005						December 31, 2006						December 31, 2005
Commercial multi-line				$	62,942					$	69,468					$	358,987					$	316,553
Commercial property					47,199						38,338						226,205						123,236
Personal lines property					31,460						46,112						104,200						211,641
Total Individual Risk premiums				$	141,601					$	153,918					$	689,392					$	651,430

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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 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												Twelve months ended
(In thousands of U.S. dollars, except for per share amounts)			December 31, 2006						December 31, 2005						December 31, 2006						December 31, 2005
Net income (loss) available (attributable) to common shareholders				$	201,135					$	(210,402	)				$	761,635					$	(281,413	)
Adjustment for net realized (gains) losses on investments					(2,489	)					3,548						34,464						6,962
Operating income (loss) available (attributable) to common shareholders				$	198,646					$	(206,854	)				$	796,099					$	(274,451	)
Net income (loss) available (attributable) to common shareholders per common share (1)				$	2.78					$	(2.97	)				$	10.57					$	(3.99	)
Adjustment for net realized (gains) losses on investments (1)					(0.04	)					0.05						0.48						0.10
Operating income (loss) available (attributable) to common shareholders per common share – diluted (1)				$	2.74					$	(2.92	)				$	11.05					$	(3.89	)
Return on average common equity, annualized					33.7	%					(45.0	%)					36.3	%					(13.6	%)
Adjustment for net realized (gains) losses on investments					(0.4	%)					0.8	%					1.6	%					0.3	%
Operating return on average common equity, annualized					33.3	%					(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.

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

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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 Reinsurance Ltd. 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.

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