SLIDES FOR PRESENTATION
Published on September 18, 2007
RenaissanceRe Holdings Ltd.
Investor Presentation
September 2007
Table of Contents
Consistent Strategy
Identifying Opportunities
Leveraging Our Franchise
Recent Developments
Well-Positioned for the Future
Our focus and strategy remain the same
We focus on four key business areas
Property Cat Reinsurance
Specialty Reinsurance
Individual Risk
Joint Ventures and Strategic Investments
Four core strategies are key to our success
Superior risk selection underwriting discipline, proprietary tools, risk
management culture
Superior marketing to get the business that we select
Superior capital management to match capital with risk
Superior joint ventures- to maximize capital efficiency for clients, capital providers
and RNR shareholders
3
Key Competitive Advantages
Discipline - Disciplined underwriter with proven track record in hard and soft
markets; history of identifying market inefficiencies
Talent & Culture - Experienced management team; risk management culture;
shared strategic vision
Use Of Technology Proprietary models to analyze and aggregate risk; large
databases to support decision making; recognize
limits of modeling
Relationships - Excellent customer and broker relationships; recognized market
leader; focus on adding value
Capital - Strong capitalization; strong loss reserves; multiple channels by which to
access capital; disciplined capital management
4
Discipline requires knowing when to grow and when
to shrink
Market conditions dictate writings we decrease when conditions soften
(e.g. late 90s), and grow when pricing improves (e.g. 2002)
Specialty declined in 2006 as we stayed disciplined in a more competitive market,
but there were attractive prospects to grow in our core Cat business
0
200
400
600
800
1000
1200
1400
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Proj.
Specialty
Managed Cat ceded to fully-collateralized J.V.'s
Managed Cat
Projected as of Q2
Information concerning the reconciliation of Non-GAAP measures can be found at the end of this presentation.
*2007 projected Managed Catastrophe and Specialty Premiums are based on August 2007 premium estimates of managed catastrophe
premiums down 5%, Individual Risk premiums down 10% and specialty reinsurance premiums
written up 35%.
Managed Catastrophe and Specialty Premiums
5
Our team is strong and key to our success
US Underwriting SVP
International
Underwriting SVP
Kevin J. O'Donnell
President
Renaissance Reinsurance
Corporate Risk
VP
Senior Development
Analyst VP
Risk Modeling SVP
RenRe
Investment Managers
President
Weather Predict
President
William I. Riker (1)
President
Chief Underwriting Officer
President GUSH
CFO GUSH
William J. Ashley
CEO
Glencoe Group
RenaissanceRe Ventures
SVP
John D. Nichols
EVP, President
RenaissanceRe Ventures
Chief Accting Officer
Controller SVP
Treasurer
(Open)
Internal Audit
VP
Fred R. Donner
Chief Financial Officer
EVP
Stephen H. Weinstein
General Counsel, SVP
Chief Compliance Officer
Peter C. Durhager
Chief Administrative
Officer SVP
Todd R. Fonner
CRO and CIO
SVP
Neill A. Currie
Chief Executive Officer
US Underwriting
VP
US Underwriting
VP
Specialty
Underwriting SVP
General Counsel
GUSH
GUSH Modeling VP
COO GUSH
Program Operations
SVP
Specialty
Underwriting VP
Specialty
Underwriting VP
RenaissanceRe Ventures
SVP
Business Development
SVP
Business Development
SVP
GUSH Claims VP
(1) Mr. Riker will remain with the Company until the end of 2007, and thereafter remain an employee serving in an advisory capacity until August 2008. Neill A. Currie, Chief Executive Officer of RenaissanceRe, will also assume the role of President.
RenaissanceRe Ventures
VP
RenaissanceRe Ventures
VP
6
We are differentiated in the resources we dedicate
to risk modeling
Risk Modeling
Resources
Reinsurance (11)
6 Modelers
1 Actuary
2 Masters
Individual Risk (6)
Risk Systems (5)
1 Masters
4 Programmers
WPC Consulting (14)
12 Ph.Ds
RIM (5)
3 Ph.Ds
Corporate Risk (3)
3 MBAs
Quant. Group (4)
1 Ph.D
1 Masters
3 Masters
7
Risk management is more than modeling
management expertise and corporate culture are critical
Avoid
Surprises
Proactive
Response
to Market
Opportunities
Superior Risk Management
Highly talented
individuals
Underwriters
understand models
Clear accountability
Tight control
of authority
Peer review
Ownership mentality
REMS©
Computer
System
Clean database
User friendly
system
Multiple vendor
models
Many unique
custom features
Management
Procedures
and Culture
8
To manage capital we cultivate diversified
and flexible sources
Multiple channels of access for capital is
a competitive advantage
Retrocessional reinsurance capacity
can be used to manage capital needs
when available at economic terms
Bank debt can be used to manage
capital quickly; short timeframe to
access with no prepayment penalties
Joint ventures with private capital
enhance our ability to manage capital
flexibly; capital comes in and out at
book value
Soft capital can be targeted short-term
at the most dislocated part of the market
to create capacity for incremental
business
RNR
Long-term
JV Capital
e.g. DaVinci
Public
Equity
Reinsurance
Public
Debt
Short-term
Soft Capital
e.g.
Starbound I&II
Private/
Bank Debt
9
Our goal remains long-term growth in tangible book
value per share plus accumulated dividends
Tangible book value per share plus accumulated dividends has grown at an
annualized rate of 17.5% from 1997 through 2006 driven by a track record of
strong Operating ROE
While the 2004 and 2005 results were disappointing, 2005s result is consistent
with our models that indicate we should expect to lose money every ten to fifteen
years
Operating ROE*
Tangible Book Value Per Share plus
Accumulated Dividends*
* Information concerning the reconciliation of Non-GAAP measures can be found at the end of this presentation.
10
We are also well-positioned to address the new sources of capital
that are entering our business
Hedge funds, investment banks and securitization have increasingly become
sources of risk-bearing capacity for property catastrophe risks we
believe
further growth is inevitable
These participants will change the way our business is transacted
Real-time trading of the underlying risk should emerge
Indices and other standardized formats for assuming risk will continue to gain
market share
Capital will flow in and out of our business more quickly as market conditions
change
Our Ventures and RIM business units are important components of a strategy to
keep pace with this change
Our Ventures unit has developed key skills and capabilities as an intermediary
for and transformer of Cat risk
11
Table of Contents
Consistent Strategy
Identifying Opportunities
Leveraging Our Franchise
Recent Developments
Well-Positioned for the Future
While our strategy will remain consistent,
our business focus will evolve
We operate today with the same culture and principles as when
the company was formed
By staying disciplined and focused we have been able to leverage our approach
to build a more diversified business model
We will continue to evaluate new opportunities and hope to add additional
franchises, but are committed to maintaining our culture and our standards
for growing book value per share
We will only add businesses that earn attractive risk-adjusted
returns and will exit businesses that no longer do the same
13
We screen new opportunities with a consistent
framework
We look for new business opportunities that meet our return hurdles and fit our
business model.
Credible Data/
Decision Support
Tools
Market
Opportunity
Cultural Fit
14
Weve used this approach to grow from a Cat company
to four successful business units
0
500
1,000
1,500
2,000
2,500
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Proj.
RenRe Cat
RenRe Specialty
Joint Venture
Individual Risk
Projected as of Q2
* Information concerning the reconciliation of Non-GAAP measures can be found at the end of this presentation.
Gross written managed premium
15
Table of Contents
Consistent Strategy
Identifying Opportunities
Leveraging Our Franchise
Recent Developments
Well-Positioned for the Future
We are leveraging off of our market leading franchise
in Property Cat
Consistent pricing
Quick response
Customized products
Capacity for large lines
Advice on Cat risk management
Superior credit quality and
willingness to pay
Normal open market position
Plus preferred signings on open
market transactions
Plus private market transactions
Option to renew business
written for fully collateralized
vehicles
RNR delivers value
RNR gets preferred status
17
2001 Specialty Premium
$77 million
2006 Specialty Premium
$222 million
2005 Specialty Premium
$427 million
33.1%
40.6%
26.3%
32.7%
18.7%
19%
6.7%
11.1%
11.8%
12%
4%
23%
18%
22%
21%
Since 2001, weve built a more diversified Specialty Re portfolio
while remaining disciplined in 2006s softening market
18
Individual Risk has grown significantly
$0
$100
$200
$300
$400
$500
$600
$700
$800
2004
2005
2006
Commercial Property
Personal Lines Property
Commercial Multi -Lines
Individual Risk Gross Written Premium
by Major Type of Business
19
Individual Risk is selectively focused with a small group
of partners
Our Individual Risk Unit is focused on high-margin primary insurance and quota
share reinsurance where we evaluate the Individual Risk (i.e. underwriting
policies as distinguished from portfolios)
We partner with other insurance companies and program managers
(intermediaries) who source the risk and provide back office support
We target a small number of partners with the following characteristics:
Leaders in their classes of risk
Large premium volume
Efficient back offices
Focused on data, systems and rigorous risk analytics
We are developing proprietary risk modeling tools to track and evaluate exposures
20
Ventures has developed three areas of competence
Catastrophe Portfolio
Participation CPPs -
Participation in the results
of our Property Cat book
Starbound I & II (Florida)
Timicuan Re (Florida)
Cat Bonds
Other
Platinum (2002) IPO spin-off
of St. Pauls reinsurance
operations
ChannelRe Holdings Ltd.
(2004) Financial guarantee
reinsurer in partnership with
MBIA, Partner Re and Koch
Financial
Tower Hill (2005) -
Recapitalization of Florida
primary insurance companies
Top Layer Re
DaVinci Re
OPCat
Examples
Custom packaging
and selling of risk
Strategic investments to
capitalize upon market
dislocations
Attractive businesses that we
prefer to invest in rather than
operate
Continue to selectively
consider large deals or other
classes of business
Leveraging RenRes
capabilities and reputation
as the leading Property Cat
reinsurer
Very active role in the
management, oversight
and corporate governance
of the entities
Business
3) Customized Reinsurance
2) Strategic Investments
1) Property Cat Joint Ventures
21
The period following the 2004 and 2005 storms highlighted
the importance of Ventures role within RenaissanceRe
In 2006 and 2007 we executed four significant capital raises to bring capacity to
our clients
Our joint venture track record since 1999 demonstrates RenaissanceRes ability to
add value = generate alpha
We expanded on our inventory of relationships with investors and advisors
Our reputation with our clients, the option value of the renewal business and the
fee income will benefit us for years into the future
We remain differentiated in our approach and the resources we dedicate which
leaves us well positioned
22
Table of Contents
Consistent Strategy
Identifying Opportunities
Leveraging Our Franchise
Recent Developments
Well-Positioned for the Future
Recent developments
July U.K. floods- Industry loss estimate
*£1 billion-*£1.5 billion. Our preliminary
loss estimate is not
expected to be material.
Hurricane Dean- Industry loss estimate
*$750 million-*$1.5 billion. Our
preliminary loss estimate is not expected to
be material.
Hurricane Felix- Industry loss estimate minimal at less than
*$200 million. Our
preliminary loss estimate is not expected to be material.
Capital Management- Active10b5-1
plan year to date share repurchases totaled
$88.2 million of which 3rd quarter to date share repurchases totaled $77.1 million.
*Source Risk Management Solutions (RMS)
24
Table of Contents
Consistent Strategy
Identifying Opportunities
Leveraging Our Franchise
Recent Developments
Well-Positioned for the Future
Our balance sheet and capital base are strong
* excluding $3.9 billion of capacity at Top Layer Re
**Reflects the redemption of ~$250 million of preference shares and funded debt, which were redeemed during Q1 2007.
26
RenaissanceRe is well-positioned
Our balance sheet and capital base are strong - our capital position is stronger
than at any point in our history
Our culture and talented team remain a key competitive advantage
We have strengthened our position over the last year as the market leader in
property cat reinsurance; ahead of peers on risk analytics
We are well positioned for the remainder of 2007 but we will remain disciplined
and will not seek growth unless we find attractive opportunities
27
Safe Harbour Statement
Cautionary Statement under "Safe Harbor Provisions of the Private Securities Litigation Reform
Act of 1995:
Statements made in this presentation 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, 2006 and its Form 10-Qs for the quarters ended March 31, 2007 and
June 30,
2007.
This presentation includes certain non-GAAP financial measures within the meaning of Regulation
G including "operating return on equity", "tangible book value per share plus accumulated
dividends
and gross written managed premium. A definition of such measures and a
reconciliation of these measures to the most comparable GAAP figures in accordance with
Regulation G is available in the Company's 2006, 2005, 2004
and 2003 Annual Reports and the
February 6, 2007, May 1, 2007 and July 31, 2007 Press Releases which are located on the
Company's website
www.renre.com
28
RenaissanceRe Holdings Ltd.
Renaissance House
8 20 East Broadway
Pembroke, HM 19
Bermuda
Tel: (441) 295-4513
www.renre.com