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Financial Highlights

RenaissanceRe Holdings Ltd. and Subsidiaries

Gross Managed Premiums Written by Line ($) millions*		Tangible Book Value per Common Share plus Accumulated Dividends ($)*

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RenaissanceRe Holdings Ltd. 2007 Annual Report

Company Overview

RenaissanceRe is a leading provider of property catastrophe reinsurance and insurance worldwide. Founded in Bermuda in 1993, the Company has gained recognition for excellence in the industry through disciplined underwriting, capital management expertise, sophisticated risk modeling and responsive client service. RenaissanceRe is traded on the New York Stock Exchange under the ticker symbol ‘RNR’.

Property Catastrophe and Specialty Reinsurance

The Company’s Reinsurance segment business is written primarily by Renaissance Reinsurance Ltd. and DaVinci Reinsurance Ltd., two of the world’s leading reinsurers, specializing in property catastrophe and specialty products. We have been a pioneer in the use of sophisticated computer modeling for risk analysis and management. Using proprietary technology, our seasoned team of underwriters seeks to construct a superior risk portfolio, while cultivating long-term relationships with clients who appreciate our problem-solving capabilities. In addition to our expertise in property catastrophe reinsurance, our specialty lines include casualty clash, medical malpractice, terrorism, surety and catastrophe-exposed workers’ compensation reinsurance.

Individual Risk

RenaissanceRe’s Individual Risk business is written by the Glencoe Group through its operating subsidiaries. Individual Risk products primarily include commercial and homeowners’ property coverages including catastrophe-exposed products, multi-peril crop insurance, commercial liability coverages including general, automobile, professional and various specialty products, and reinsurance of other insurers on a quota share basis. Individual Risk business is mainly produced through three distribution channels: program managers, quota share partners and brokers.

Ventures

RenaissanceRe’s Ventures unit expands the scale of RenaissanceRe’s business by creating joint ventures, customized reinsurance products, and other strategic relationships that leverage the Company’s underwriting expertise and experience. Through our property catastrophe managed joint ventures, the Ventures unit provides RenaissanceRe with management fee income and brings additional reinsurance capacity to our clients. Our principal joint ventures include Top Layer Re and DaVinci Re. Our customized reinsurance transactions enable partners and investors to participate in the performance of the Company’s catastrophe reinsurance portfolio. We also capitalize on opportunities outside of RenaissanceRe’s core expertise by structuring new ventures in partnership with other market participants in non-catastrophe classes of risk. These provide diversification in other areas of the insurance and/or reinsurance markets.

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Letter to Shareholders

Neill A. Currie

President and Chief Executive Officer

To Our Shareholders:

I am pleased to report that in 2007, RenaissanceRe recorded another successful year with excellent results. We improved our risk modeling and analytical tools. We strengthened our organization with new talent. We continued to strengthen the distinctive corporate culture that sets RenaissanceRe apart in driving value for our clients, shareholders and intermediaries.

We achieved this during a year impacted by stunning dislocations in the sub-prime mortgage securities and credit markets, which created potential liability exposures for insurers and reinsurers. RenaissanceRe was not immune to these events, but our exposure was manageable, evidenced by our solid financial results.

Our accomplishments were the result of a lot of hard work and the successful execution of a business strategy built on exceptional customer service, cutting-edge technology, prudent capital management, and disciplined underwriting.

We were fortunate this year to have avoided the brunt of the many natural disasters that materialized. We know that in this business we will have both good and bad years. We believe that the profits we accumulate during relatively benign years such as 2007 will see us safely through the inevitable times of higher claims payments, while still providing our shareholders with attractive long-term returns, which is our primary focus. Our increased financial strength and the actions we have taken to further enhance our operations in 2007 will be essential building blocks for rewarding our shareholders over time.

A Year of Strong Financial Performance

Operating income was $735 million, or $10.24 per fully diluted share, while net income available to common shareholders was $570 million, or $7.93 per fully diluted share. Our net income and book value per share were adversely impacted by the reduction in the carrying value of ChannelRe, which I address later in this letter. Operating return on equity was 27%, among the highest in our industry, and tangible book value per share plus accumulated dividends increased over 18%. Over the past 10 years, which include the high-catastrophe

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RenaissanceRe Holdings Ltd. 2007 Annual Report

“Our strong returns this year further strengthened our balance sheet, and this was reflected in our ratings.”

Fred Donner, Chief Financial Officer

years of 2004 and 2005, our annual compounded growth in tangible book value per common share, plus accumulated dividends, has been over 17%. As we have emphasized over the years, our key financial objective is to build tangible book value per share, plus accumulated dividends, in excess of 15% over time. Achieving this is not easy and there will be years when we fall short, but over time, we believe that we can deliver on this goal.

I am pleased that our strong performance was recognized by the major credit rating agencies. A.M. Best upgraded its financial strength rating of Renaissance Reinsurance Ltd., our flagship reinsurance unit, to A+ (Superior) from A. Standard & Poor’s also raised its credit rating of Renaissance Reinsurance to AA- from A+. Both rating agencies noted our strong level of capitalization, superior risk management, exceptional underwriting track record, as well as the depth and experience of our senior management team. We also maintained our “Excellent” rating for our Enterprise Risk Management (ERM) from Standard & Poor’s; this is achieved by very few companies in our industry.

These upgrades restore RenaissanceRe to the high ratings we enjoyed prior to 2005 and reflect our place as a leader among reinsurers. I am proud that the contributions and strengths of our team have been recognized in this way.

Reinsurance: Relationships and Results

In a year of increasing competition in our markets, we successfully built a very attractive portfolio of property catastrophe reinsurance. As always, we remained disciplined in our underwriting, and accordingly, gross premiums written declined approximately 7% from the prior year. The quality of the book was a function of our strong client and intermediary relationships, our superior risk-modeling technology and the judgment of our experienced team.

Credit Ratings

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Letter to Shareholders

It would be difficult to overstate the importance of our strong client relationships. Clients appreciate our commitment to service and our consistent exposure-based pricing. Most importantly, they value working over time with our underwriters, who are industry experts and empowered to make decisions. Although we avoid risks that we believe do not offer adequate return, our clients know we will work closely with them to find a way to meet their coverage requirements at mutually agreeable terms.

At the January 2008 renewal season, we enjoyed the continued support of our clients once again, providing us the opportunity to build another strong book of business. Although overall market pricing has come down due to excess capacity, the strength of our relationships and the discipline of our underwriters have enabled us to start off the new year on sound footing.

“After a loss, tensions often increase between counterparties in the reinsurance business. Almost without exception, our relationships are stronger after a loss, because of our willingness and ability to pay claims promptly.”

Kevin O’Donnell, President, Renaissance Reinsurance Ltd.

As I mentioned, 2007 was a year without a major U.S. event. Despite windstorms in Europe, flooding in the U.K. and Australia, earthquakes in Asia and wildfires in California, some of which impacted our results, our focus continued to be the large market for hurricane coverage in the United States, where no major hurricanes made landfall.

Still, according to our research, we remain in a period of increased hurricane frequency and severity. For the first time in recorded history, during the year there were two Category 5 hurricanes making landfall in the Atlantic basin within the same season. They struck remote areas causing little economic loss, although we recognize the destruction they unfortunately caused to those living in their path.

In our specialty reinsurance unit, we continued to experience heavy competition in many of our specialty lines as reinsurers throughout the industry sought to diversify away from U.S. hurricane coverage. Nonetheless, we grew our book by over 29% as a result of one attractive large quota share transaction. The specialty book is a volatile one with respect to both premium and losses. Here as elsewhere, we remain consistent in only writing business offering an appropriate expected return for the risk we assume.

From a profitability standpoint, our casualty clash reinsurance business was affected by the sub-prime mortgage crisis that unfolded mid-year. The losses, largely from underlying professional lines such as Directors & Officers and Errors & Omissions, were within our potential outcome range, and are manageable.

We expect competition to remain vigorous and to impact our specialty reinsurance activity in 2008. We will continue to pursue our strategy of discipline while being opportunistic during market dislocations.

New Developments in Individual Risk

Our Individual Risk segment, which writes primary insurance as well as quota share reinsurance, met our expectations and in some cases exceeded them, despite softening market conditions in several business areas.

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RenaissanceRe Holdings Ltd. 2007 Annual Report

Gross Managed Premiums Written by Line

($) millions

This solid performance resulted from numerous factors: disciplined underwriting from our program partners, our decision to emphasize lines of business that tend to hold up better in softening conditions, further improvements in our technology, and low insured catastrophe activity.

Underwriting discipline led us to write approximately 19% less premium than in 2006. We reduced our exposure to catastrophe-related personal lines in the Florida homeowners market and transferred some catastrophe-related quota share reinsurance to our Reinsurance segment. We reduced commercial property earthquake coverage in California, where pricing declined precipitously during the year. In addition, we decided not to renew a large commercial quota share transaction, which was performing below our underwriting standards.

Despite our decision to reduce our book, we continued to build excellent relationships with our program managers, adding one new property program and one new property and casualty program during the year. We expect to see the benefits of these programs coming through in 2008.

“Many of our relationships exceed five years and strengthen over time; that makes quite a difference in a competitive market.”

Bill Ashley, President & Chief Executive Officer, Glencoe Group Holdings Ltd.

Just as client relationships are critical to our success, so is our risk modeling technology. Since our founding, RenaissanceRe has been a pioneer in using sophisticated analytical tools to select the best risks. This year, we continued to devote significant resources to our proprietary systems and technology, including in our Individual Risk operations. In particular, our growing team of experts in this unit focused on refining analysis of risks and exposures further, using both our large base of internally-generated data and information available from external sources. As a result, we believe we were able to price exposures more precisely than ever, increasing retention of those risks we found most attractive. These improved capabilities greatly assisted our marketing efforts, enabling us to target clients whose business we found most desirable.

In 2007, we invested in the people, technology and infrastructure necessary for our continued growth and efficiency. These efforts will continue in 2008.

Added Value from Our Ventures Unit

RenaissanceRe has earned a reputation for innovation, whether by expanding capacity in the conventional insurance and reinsurance marketplace or by helping develop new ways to mitigate loss.

For several years, our Ventures unit has done an outstanding job of leveraging RenaissanceRe’s expertise to provide the market needed capacity. The unit’s Joint Ventures, Venture Capital and Capital Markets groups have focused on managing both catastrophe and non-catastrophe joint ventures, as well as exploring investment opportunities and structuring innovative products for investors in the catastrophe marketplace. This year, we broadened the Ventures unit to include

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Letter to Shareholders

“We provide capital to our clients. While most of this capital is provided in the form of reinsurance contracts, our clients also need capital in other forms. We are well positioned to respond to those needs and have a proven capability to execute.”

Jay Nichols, President, RenaissanceRe Ventures Ltd.

Renaissance Trading Ltd., which develops and trades financial products based in large part on our climatological forecasting capabilities and our understanding of particular commodity markets. WeatherPredict Consulting Inc., which provides forecasting for hurricane and other atmospheric events to a wide range of external end-users, as well as to our own organization, also became part of our Ventures unit.

Our success at innovation has earned RenaissanceRe the reputation as a financial gateway for capital providers who wish to take advantage of the catastrophe market through a range of vehicles that suit their investment parameters and risk appetite.

Achievements in 2007 included the creation of Starbound Re II, a fully collateralized “sidecar” that enabled us to provide approximately $375 million in new reinsurance capacity for the Atlantic hurricane-exposed market. This venture demonstrated once again our ability to respond effectively to our clients’ needs.

We also successfully completed the life cycle of Tim Re and Starbound, two sidecars we created in 2006, which generated excellent returns for their investors, including RenaissanceRe.

Our 21%-owned DaVinci joint venture, established in 2001, had a strong year and investors benefited from very attractive returns. DaVinci has grown to be a sizeable company in its own right, with over $1 billion of capital.

Top Layer Re, our 50%-owned joint venture serving the non-U.S. market and targeting higher layers than either Renaissance Reinsurance or DaVinci, had another great year, its ninth consecutive year without a loss.

The strong returns we generated from these various vehicles offset losses related to our investment in ChannelRe Holdings Ltd. Volatility in the debt markets led to mark-to-market charges from ChannelRe’s financial guaranty contracts, accounted for as derivatives under generally accepted accounting principles, which exceeded our carrying value in this entity. Accordingly, in the fourth quarter we reduced our 33% share in ChannelRe to a carrying value of zero. We have no further financial contractual obligations and no further negative economic exposure. Our ability to manage this event and still generate solid fourth quarter profits reflects our financial discipline, and demonstrates that how you assume risk is often as important as the type of risk you assume.

Operating Return on Average Common Equity (%)

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RenaissanceRe Holdings Ltd. 2007 Annual Report

“We continue to be pleased with the risk-return profile of our portfolio, and with the attractiveness of the opportunities we are seeing.”

Todd Fonner, Chief Risk Officer & Chief Investment Officer

Investments and Capital

Despite the tumultuous year in the fixed-income markets, our overall investment portfolio returned approximately 7% with a low level of volatility. We entered the year conservatively positioned, with more than 90% of our investments in our fixed-income portfolio rated “AA” or better. Our investment portfolio had no significant exposure to sub-prime mortgages and CDOs, and this served us well. In fact, the rapid deterioration of market sentiment in the latter part of the year presented us with an opportunity to be slightly more aggressive and deploy a portion of our portfolio into highly rated, higher yielding securitized assets and corporate debt, where we believe we are being appropriately paid to take on somewhat higher levels of risk.

We continued to enjoy strong performance from our alternative investments. We generated returns of nearly 20% from our hedge fund investments and over 30% from our private equity portfolio. During the year, we continued to add to our private equity holdings and increased our hedge fund portfolio for the first time in several years, carefully selecting managers who could meet our stringent criteria.

Central to our capital management is our ongoing focus on maximizing shareholder value by returning capital to shareholders when this proves to be the best use of our resources, and raising capital when we see compelling business opportunities. This year, we elected to return capital to shareholders through the repurchase of our shares, which were trading at prices that we found to be attractive. In 2007, our Board increased our standing repurchase authorization to permit the repurchase of up to $500 million of common stock, and in 2007 we bought approximately $200 million worth of shares using internally generated funds. We entered 2008 with a strong capital position, and have continued to buy back shares when prices have been attractive.

Risk Mitigation: Investing for the Future

As part of our goal to help clients manage their risks comprehensively, we are committed to researching and developing risk mitigation techniques and raising awareness of the benefits of effective risk mitigation. We believe that fostering safer, more hurricane-resistant communities will not only contribute to reducing insurance premium costs over time, but will also ultimately save lives.

Our WeatherPredict Consulting group played a vital role in several projects in 2007 that advanced our Company’s focus on risk mitigation. First, we teamed up with Florida International University and the International Hurricane Research Center to create the “RenaissanceRe Wall of Wind”, a state-of-the-art testing facility that simulates the effects of hurricanes on buildings to improve housing construction practices and identify effective mitigation techniques. We have also funded the installation of a

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Letter to Shareholders

“Understandably, policy-makers want to explore ways to make storm-vulnerable communities safer, in light of the devastation associated with severe storms. We believe the reinsurance industry should contribute to the search for forward-looking solutions.”

Steve Weinstein, Chief Compliance Officer, General Counsel & Secretary

network of hardened wind-stations providing reliable data for the “WindX” index. This is a parametric index for products based on wind-speeds, providing a novel solution for purchasers of hurricane-related damage insurance. In addition, we entered into an exciting project, alongside other partners, with INNOVENTIONS at Epcot^® at the Walt Disney World^® Resort to create an interactive weather installation. This experience will enable guests to see what it is actually like to be in the midst of a severe storm and will both entertain and educate them about the risks associated with weather such as hurricanes and tornadoes, and how to improve the protection of their homes. And, we are proud of a new loss mitigation product, invented by one of WeatherPredict Consulting’s scientists, based on vortex suppression, designed to reduce wind damage to buildings during hurricanes.

This year’s annual report features our work in the vital area of loss mitigation, immediately following this letter.

RenaissanceRe is also committed to better understanding the challenges of climate change and global warming. A dedicated team of professionals from across our organization has been studying these issues as they relate to our Company, our strategy, and the communities in which we live and work.

People: Our Most Important Resource

RenaissanceRe has earned a reputation as a highly desirable place to work. We work hard to maintain a collegial, open environment where people learn from each other and are passionate about what they do. We continue to attract an exceptional caliber of qualified, talented employees, here in Bermuda and in our offices in Europe and the United States.

Operating Income (loss) per Share ($)

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RenaissanceRe Holdings Ltd. 2007 Annual Report

“Our corporate culture is as strong as it has ever been despite rapid growth. This is a testament both to the strength of our organization and of our management team, as well as to the extraordinary passion that our employees have for the Company.”

Peter Durhager, Chief Administrative Officer

In 2007, we continued to provide people at every level of the organization the ability to further develop their skills and knowledge base. Our Leadership Development Institute brought in high profile speakers from the worlds of business and science to inspire and broaden the outlook of our senior officers. Our company-wide “World Café” meetings provided a forum for learning and sharing for all members of our staff. More than 85% of our employees signed up for further development programs. Our formal mentoring program enabled employees to seek out relationships with professionals from across the organization to foster personal growth.

RenaissanceRe has been steadily growing, and in 2007 we brought in the additional capabilities and skills required to meet the needs of our expanding organization. We hired new people across the Company, and I am pleased with the success with which they have integrated into our culture, and with the overall cohesion and effectiveness of our team.

With mixed feelings, we also announced the retirement of William I. Riker, one of the chief architects of RenaissanceRe’s strategy and development. Over the years, Bill served in several senior positions at RenaissanceRe and contributed immeasurably to our success. We are glad Bill will have more time to spend with his family but we will miss his energy, contagious enthusiasm and insight. His influence will continue to be felt at RenaissanceRe.

Tangible Book Value per Common Share plus Accumulated Dividends ($)

“Over the past ten years, we have grown tangible book value per common share plus accumulated dividends by over 17% on average.”

Fred Donner, Chief Financial Officer

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Message from the Chairman

Confidence in the Future

As we begin 2008, the year of our 15th anniversary, we recognize the challenges that lie ahead: a softening market cycle, further potential turmoil in the financial markets, and increasing competition within the reinsurance space from capital markets. Initiatives such as state and federal programs for hurricane insurance may also affect our business. We have served the Florida market over the years with significant reinsurance capacity for risks not covered by the State’s hurricane fund. While there has been an effort in Florida and elsewhere to move risk out of the private insurance market, the situation remains fluid and we continue to monitor it carefully.

Despite these challenges, I am confident that RenaissanceRe is well positioned to succeed in the current economic environment and respond to changes that will inevitably arise in the future. We will negotiate a soft market by staying true to our strategy of strict discipline, capital management, and superior marketing, focusing as we always have on long-term success rather than short-term gain. We will continue to lay the foundation for the future, through continued investments in people, relationships and technology.

Outlook

As we focus on strengthening our position in existing businesses, we will also look to expand into new businesses where we can leverage our expertise. There will be increased demand for products that protect high value assets and communities against a wide range of natural and man-made disasters. We have the market position, balance sheet strength and expertise to meet these needs, and to build upon our superior long-term record of performance for our shareholders.

Sincerely,

Neill A. Currie

President and Chief Executive Officer

Message from the Chairman

W. James MacGinnitie

On behalf of the Board of Directors, I am pleased to join Neill in remarking on a strong year for RenaissanceRe. In a year of financial market turmoil, the Company exhibited its diversified earnings power. This was a testament to the efforts of our management team and employees to build on our strong franchise and to continually invest in the future.

RenaissanceRe’s culture has always emphasized disciplined risk management, and we view rigorous, effective corporate governance as an important component of our overall risk management objectives. This year we revised and updated our governance policies, in keeping with our commitment to stay ahead of the changing environment in which we operate.

It is my privilege to recognize the outstanding service of Edmund B. Greene, Brian R. Hall, and Scott E. Pardee, longtime members of our Board who announced their intention to retire this year in conjunction with our Annual Shareholder Meeting, when their terms of service are scheduled to expire. Ed was a founding member of our Board, and Brian and Scott joined us soon thereafter. Each of them made substantial contributions to our Board and our Company.

During 2007, we welcomed Ralph B. Levy to our Board. Ralph has had a distinguished legal career as a counselor to financial service companies. I am also pleased to recognize our three nominees for election to our Board: David C. Bushnell, former Chief Administrative Officer and Senior Risk Officer of Citigroup Inc., James L. Gibbons, President and Chief Executive Officer of CAPITAL G Limited, a leading Bermuda financial services organization, and Anthony M. Santomero, former President of the Federal Reserve Bank of Philadelphia. At this complex and challenging time in our industry and our markets, we will be fortunate to draw on their expertise in finance, risk management, legal and regulatory matters.

Neill, myself, my fellow directors, and the entire RenaissanceRe team are grateful for the support we have received from our clients, partners, employees, and investors. We look forward to serving you in the future.

Sincerely,

W. James MacGinnitie Chairman of the Board

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RenaissanceRe Holdings Ltd. 2007 Annual Report

Executive Committee

“Rating agencies noted our strong level of capitalization, superior risk management, exceptional underwriting track record, as well as the depth and experience of our senior management team.”

Neill Currie, President and Chief Executive Officer

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RenaissanceRe Holdings Ltd. 2007 Annual Report

Hurricane Risk Mitigation

Rising to the Challenge

After the devastation wreaked by the storms of 2004 and 2005, the perception of hurricane-related risk increased dramatically. So did the call for effective risk mitigation.

Last year’s Annual Report cautioned: “We are clearly in a decadal period of increased hurricane frequency… but we are still a long way from incorporating into our client pricing models predictions regarding a specific number of storms that might make landfall in any given season.” Such are the complexities of physics and of atmospheric processes that, although progress is continually being made in the field of weather-related risk prediction, it remains immensely difficult to predict with precision when an event might occur. In addition, many scientists believe that the latest research supports the existence of observable climate change, which adds another layer of complexity to the potential volatility of weather-related natural perils and to the challenges of modeling and forecasting them. At RenaissanceRe, we believe these dynamics make the need for smart and effective mitigation strategies more crucial than ever. Disaster safety technology and initiatives represent the most promising means to minimize the physical and economic impact of weather events, potentially saving lives in catastrophe-exposed regions and reducing economic costs over time. Indeed, risk mitigation can go a long way toward addressing the current issues of availability and affordability of insurance in storm-vulnerable communities.

Effective risk mitigation begins with a thorough understanding of the hazard. At RenaissanceRe, understanding risk – particularly hurricane risk in the North Atlantic Basin – has been at the core of our business strategy since our inception. We believe that our expertise in risk modeling and analysis helps us both to underwrite risk effectively and offer fairly priced, consistent capacity in some of the world’s most perilous regions, while asking hard, candid questions about risk. Our commitment to understanding, analyzing and managing risk is both deep and broad across our organization. The Company’s efforts to increase awareness about the importance of risk mitigation and encourage resilience through the widespread adoption of effective mitigation strategies are being led by our U.S. affiliate, WeatherPredict Consulting Inc.

Studying resiliency has been a component of RenaissanceRe research initiatives from the outset, but in 2003, when Hurricane Fabian made landfall in Bermuda, our research staff were given an exceptional opportunity to study first-hand the effectiveness of mitigation strategies. While Fabian had been forecast as a Category 3 hurricane, potentially devastating based on disaster surveys carried out in the U.S., the island sustained remarkably little damage. Bermudian houses typically have complex roof finishes and architectural features, and often have rain gutters or ridges along the leading edges. The relatively light impact of Fabian on these structures reinforced our evolving study of the relationship between roof shapes and wind loads.

The following year, when the 2004 hurricanes hit Florida, RenaissanceRe researchers went on site to study the characteristics of those structures, once again, which sustained comparably light damage. These findings furthered our efforts to develop technologies to retrofit

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“If every home in Florida could be built or retrofitted to withstand winds of up to 130 mph with minimal damage, the economic costs of windstorms could be dramatically reduced.”

Craig Tillman, President, WeatherPredict Consulting Inc.

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RenaissanceRe Holdings Ltd. 2007 Annual Report

Comparison of Loss Mitigation Benefits

Projected vulnerability curves for mitigated and unmitigated roof surfaces.

roof-edges and a promising device emerged, based on the concept of vortex suppression, which involves disrupting wind vortices enough to dramatically reduce lift.

One of the particular challenges of researching this vortex suppression technology and other loss mitigation techniques was the lack of large-scale wind-tunnel technology. In 2004, RenaissanceRe partnered with the International Hurricane Research Center at Florida International University to develop a revolutionary testing facility: the RenaissanceRe Wall of Wind. Fully operational in 2007, the RenaissanceRe Wall of Wind generates 125 mph winds and associated rain, to which full-scale structures can be subjected. The controlled water-injection system allows the simulation to examine how water penetrates a structure in severe wind-driven rain conditions. The first-of-its-kind facility has become the testing ground for innovative loss mitigation product development, including the vortex suppression technique. The research gathered by RenaissanceRe and the WeatherPredict Consulting team has been extremely compelling – so much so that it has caught the attention of prominent news outlets, including The Wall Street Journal, New Scientist, USA Today and ABC World News Tonight.

The RenaissanceRe Wall of Wind generates valuable scientific data on the vulnerability of individual structural components, as well as on their interaction under storm conditions. Engineers can observe and measure how a breach in a window, for example, might lead to progressive failures inside a building, enhancing their ability both to improve existing mitigation measures and develop new ones, without having to wait for new hurricanes to conduct research. Even for the lay audience, the sight and sound of hurricane-force winds and rain as they impact full-scale structures powerfully convey what happens to homes when they are hit by major storms.

RenaissanceRe is committed to sharing data from the RenaissanceRe Wall of Wind in a collaborative fashion.

For example, together with experts from the Wharton Risk Management Decision Process Center, we are analyzing how the use of various mitigation strategies might be used to lower insurance costs via the use of premium credits for buildings that employ mitigation technologies. Our hope is that the distribution of accurate, authoritative information to experts, policy-makers, academics, industry participants and other key stakeholders will improve the allocation and increase the availability of mitigation-based insurance incentives.

Just how much difference can loss mitigation make? Strong building codes have long been advocated by the insurance industry, but they are typically implemented only in new construction. Most homes in storm-vulnerable regions have been built to older, inferior codes. This existing inventory is responsible for the majority of financial losses in major events. RenaissanceRe modelers have concluded that if every home in Florida could be built or retrofitted to withstand winds of up to 130 mph with minimal damage, the economic costs of windstorms could be dramatically reduced. RenaissanceRe is also working on quantifying strategic risk mitigation, by which we mean the identification of specific locations and buildings subject to the greatest exposures and the greatest potential losses, so that the expense of retrofitting structures “blanket-fashion” can be minimized.

To further improve our understanding of hurricane-related risk, RenaissanceRe has been working with WeatherFlow and Risk Management Solutions on the WindX network - the first network of hardened anemometer stations to record hurricane winds. This network of stations will generate more accurate, consistent data on wind force and will enable insurers and reinsurers to develop new products using wind-speed triggers, rather than basing underwriting on less exact physical damage and vulnerability measures. It will also enhance the ability of researchers to observe the complexities of wind-fields and hurricanes, which will

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“We are actively involved in raising awareness of loss mitigation. Our commitment to hurricane disaster safety research and development will not only contribute to reduced insurance premium costs in storm-exposed regions over time; it may ultimately save lives.”

Neill Currie, President and Chief Executive Officer

ultimately enable them to create better and more cost-effective mitigation techniques. Many WindX stations have already been placed along the Florida coast, each designed to withstand winds of up to 140 mph, each with independent power sources. Currently, a total of 100 such stations is planned.

The risk mitigation movement is gathering momentum, and we are actively participating in a growing community. In addition to our long-standing collaborations with academic institutions such as the Wharton School and Florida International University, RenaissanceRe is proud to support organizations such as the Institute for Business and Home Safety and the Federal Alliance for Safe Homes (FLASH^®). These entities, along with many others, are working to foster thought-leadership and encourage public awareness of the significance of effective risk mitigation. In February 2008, we co-sponsored the first-ever Hurricane Risk Mitigation Leadership Forum in Orlando, bringing together academics, scientists, and public and private sector representatives to advance the cause of hurricane risk mitigation. And in January, RenaissanceRe and WeatherPredict Consulting Inc., in partnership with FLASH^®, State Farm^® and Simpson Strong-Tie, announced plans to launch an exhibit at INNOVENTIONS at Epcot^® at the Walt Disney World^® Resort.

“StormStruck: The Tale of Two Homes™” is an interactive exhibit combining the exhilaration of experiencing what it might feel like to be in a severe storm with education about the visitors’ own levels of risk exposure, and how they can take action to protect their homes. “StormStruck™” is scheduled to open in summer 2008 and is expected to draw guests from across the globe.

Global growth and ever-increasing property development in catastrophe-exposed regions will make the potential risks associated with catastrophes greater than ever. Smarter, more effectively planned and more broadly implemented loss mitigation is perhaps the most promising strategy to reduce these risks. At RenaissanceRe, our uncommon combination of scientific and industry expertise positions us ideally to help further the science of loss mitigation and quantify its potential impact. We are committed to working with policy-makers, academic experts and other interested parties to further the development of more effective approaches to managing hurricane risk. Neill Currie, President and Chief Executive Officer of RenaissanceRe, has made this priority clear: “We are actively involved in raising awareness of loss mitigation. Our commitment to hurricane disaster safety research and development will not only contribute to reduced insurance premium costs in storm-exposed regions over time; it may ultimately save lives.”

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RenaissanceRe Holdings Ltd. 2007 Annual Report

Board of Directors

RenaissanceRe Holdings Ltd.

W. James MacGinnitie		Neill A. Currie		Thomas A. Cooper		Edmund B. Greene
Chairman		President &		Chief Executive Officer		Retired Deputy Treasurer
RenaissanceRe Holdings Ltd.		Chief Executive Officer		TAC Associates		General Electric Company
		RenaissanceRe Holdings Ltd.
Brian R. Hall		Jean D. Hamilton		William F. Hecht		Henry Klehm III
Retired Chairman & CEO		Private Investor		Retired Chairman,President		Partner
Johnson & Higgins		Independent Consultant		& Chief Executive Officer		Jones Day
(Bermuda) Ltd.				PPL Corporation
Scott E. Pardee, Ph.D.		Ralph B. Levy		Nicholas L. Trivisonno
Alan R. Holmes Professor		Senior Partner		Retired Chairman &
of Monetary Economics		King & Spalding LLP		Chief Executive Officer
Middlebury College				ACNielsen Corporation

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Senior Officers

RenaissanceRe Holdings Ltd. and Subsidiaries

Bermuda

Currie, Neill A.

President & Chief Executive Officer,

RenaissanceRe Holdings Ltd.

Donner, Fred R.

Executive Vice President &

Chief Financial Officer,

RenaissanceRe Holdings Ltd.

Nichols, John D.

Executive Vice President,

RenaissanceRe Holdings Ltd.,

President, RenaisanceRe Ventures Ltd.

Ashley, William J.

Senior Vice President,

RenaissanceRe Holdings Ltd.,

Chief Executive Officer,

Glencoe Group Holdings Ltd.

O’Donnell, Kevin J.

Senior Vice President,

RenaissanceRe Holdings Ltd.,

President, Renaissance Reinsurance Ltd.

Durhager, Peter C.

Senior Vice President,

Chief Administrative Officer,

RenaissanceRe Holdings Ltd.,

President, RenaissanceRe Services Ltd.

Fonner, Todd R.

Senior Vice President,

Chief Risk Officer &

Chief Investment Officer,

RenaissanceRe Holdings Ltd.

Weinstein, Stephen H.

Senior Vice President,

Chief Compliance Officer,

General Counsel & Secretary,

RenaissanceRe Holdings Ltd.

Aune, Jeffrey A.

Senior Vice President,

RenaissanceRe Holdings Ltd.

Branagan, Ian D.

Senior Vice President,

RenaissanceRe Holdings Ltd.

Curtis, Ross A.

Senior Vice President,

Renaissance Reinsurance Ltd.

Lamendola, Robert J.

Senior Vice President,

Renaissance Reinsurance Ltd.

Moore, Sean M.

Senior Vice President,

RenaissanceRe Services Ltd.

Paradine, Jonathan D.

Senior Vice President,

Renaissance Reinsurance Ltd.

Prado, Juan

Senior Vice President,

RenaissanceRe Ventures Ltd.

Richardson, Laurence B.

Senior Vice President,

RenaissanceRe Ventures Ltd.

Wilcox, Mark A.

Senior Vice President,

Chief Accounting Officer,

Corporate Controller,

RenaissanceRe Holdings Ltd.

Brookes, Trevor A.

Vice President, Internal Audit,

RenaissanceRe Holdings Ltd.

Da Silva, Anne-Marie

Vice President,

RenaissanceRe Services Ltd.

Illston, Peter A.

Vice President,

RenaissanceRe Services Ltd.

James, Helen L.

Vice President,

RenaissanceRe Ventures Ltd.

Komposch, Caroline M.

Vice President,

RenaissanceRe Services Ltd.

Lewis, James R.

Vice President,

Renaissance Reinsurance Ltd.

Matusiak, James J.

Vice President,

Renaissance Reinsurance Ltd.

McCue, Keith A.

Vice President,

Renaissance Reinsurance Ltd.

Montpellier, Peter R.

Vice President,

Glencoe Insurance Ltd.

Morgenstern, Kai H.

Vice President,

RenaissanceRe Ventures Ltd.

Nusum, Maureen B.

Vice President,

Human Resources & Administration,

RenaissanceRe Services Ltd.

O’Keefe, Justin D.

Vice President,

Renaissance Reinsurance Ltd.

Oswald, Apryle L.

Vice President,

Renaissance Reinsurance Ltd.

Smith, Josephine A.

Vice President,

RenaissanceRe Services Ltd.

Roberts, Rebecca J.

Vice President,

Renaissance Reinsurance Ltd.

Robertson, Adriaan M.

Vice President, Treasurer,

RenaissanceRe Holdings Ltd.

Tucker, Dion A.

Vice President,

RenaissanceRe Services Ltd.

Ireland

Britchfield, Ian

Managing Director,

Renaissance Reinsurance of Europe

Brosnan, Sean G.

Managing Director, Investments,

Renaissance Reinsurance of Europe

Burnett-Herkes, James

Managing Director, Risk Modeling,

Renaissance Reinsurance of Europe

Gill, John N.

Vice President,

Renaissance Reinsurance of Europe

Dallas

Heatherly, David A.

President,

Glencoe Specialty Services Inc.

Bowden, Tracy H.

Senior Vice President, General Counsel

& Chief Compliance Officer,

Glencoe Specialty Services Inc.

Graff, Timothy J.

Senior Vice President,

Glencoe Specialty Services Inc.

Lewis, Travis L.

Senior Vice President,

Chief Operating Officer,

Glencoe Group Holdings Ltd.

Primerano, Richard B.

Senior Vice President,

Chief Financial Officer,

Glencoe Specialty Services Inc.

Brockman, Robert W.

Vice President,

Glencoe Specialty Services Inc.

Hockersmith, Jeffrey S.

Vice President, Controller,

Glencoe Specialty Services Inc.

Kanan, Aileen P.

Vice President,

Glencoe Specialty Services Inc.

Kozuch, Walter J.

Vice President,

Glencoe Specialty Services Inc.

Lessmann, Kathryn M.

Vice President,

Glencoe Specialty Services Inc.

Meehan, Patricia M.

Vice President,

Glencoe Specialty Services Inc.

Rhodes, Randy L.

Vice President,

Glencoe Specialty Services Inc.

Rotta, Pauline R.

Vice President,

Glencoe Specialty Services Inc.

Schlaegel, Woldemar W.

Vice President,

Glencoe Specialty Services Inc.

Scholl, David C.

Vice President,

Glencoe Specialty Services Inc.

Stahl, Brian C.

Vice President,

Glencoe Specialty Services Inc.

Houston

Cole, Joseph B.

President,

RenRe Investment Managers Ltd.

Kaplan, Paul E.

Vice President & Secretary,

RenRe Investment Managers Ltd.

Tawney, Mark R.

Vice President,

RenRe Investment Managers Ltd.

Windle, William W.

Vice President,

RenRe Investment Managers Ltd.

Raleigh

Tillman, Craig W.

President,

WeatherPredict Consulting Inc.

Lin, Jason J.

Vice President,

WeatherPredict Consulting Inc.

Bachiochi, David R.

Senior Scientist,

WeatherPredict Consulting Inc.

Rowe, Dail

Senior Scientist,

WeatherPredict Consulting Inc.

Williford, C. Eric

Senior Scientist,

WeatherPredict Consulting Inc.

Rhode Island

Ginis, Isaac

Principal Scientist,

WeatherPredict Consulting Inc.

Rothstein, Lewis M.

Principal Scientist,

WeatherPredict Consulting Inc.

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COMMENTS ON REGULATION G

In addition to the financial measures set forth in this Annual Report prepared in accordance with accounting principles generally accepted in the Unites States (“GAAP”), the Company has included certain non-GAAP financial measures in this Annual Report within the meaning of Regulation G. The Company has consistently provided these financial measurements in previous annual reports 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 years 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 the Company’s investments, net unrealized gains and losses on credit derivatives issued by ChannelRe, the cumulative effect of a change in accounting principle — goodwill and by a charge relating to our Stonington subsidiary. 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 the adjustments noted above, which are not considered by management to be relevant indicators of business operations. The Company also uses “operating income (loss)” to calculate “operating income (loss) per common share - diluted” and “operating return on average common equity”. 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 – diluted to operating income (loss) available (attributable) to common shareholders per common share - diluted; and 3) return on average common equity to operating return on average common equity:

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The Company has also included in this Annual Report “gross managed premiums written” and “managed catastrophe premiums”. “Gross managed premiums written” differs from gross premiums written, which the Company believes is the most directly comparable GAAP measure, due to the inclusion of premiums written on behalf of our joint ventures Top Layer Re, which is accounted for under the equity method of accounting and OPCat, which was accounted for under the equity method of accounting prior to 2002. “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” differs 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 ventures Top Layer Re, which is accounted for under the equity method of accounting and OPCat, which was accounted for under the equity method of accounting prior to 2002 and the exclusion of catastrophe premiums assumed from the Company’s Individual Risk segment. The Company’s management believes “gross managed premiums written” and “managed catastrophe premiums” are useful to investors and other interested parties because it provides a measure of total premiums assumed by the Company through its consolidated subsidiaries and related joint ventures. The following is a reconciliation of 1) total catastrophe premiums to managed catastrophe premiums and 2) gross premiums written to gross managed premiums written:

The Company has also included in this Annual Report “tangible book value per share plus accumulated dividends”. This is defined as book value per share excluding goodwill and intangible assets, plus accumulated dividends. “Tangible book value per share plus accumulated dividends” differs from book value per share, which the Company believes is the most directly comparable GAAP measure, due to the exclusion of goodwill and intangible assets and the inclusion of accumulated dividends. The following is a reconciliation of book value per share to tangible book value per share plus accumulated dividends:

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

x    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For The Fiscal Year Ended December 31, 2007

OR

¨    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission File No. 34-0-26512

RENAISSANCERE HOLDINGS LTD.

(Exact Name Of Registrant As Specified In Its Charter)

Renaissance House, 8-20 East Broadway, Pembroke HM 19 Bermuda

(Address of Principal Executive Offices)

(441) 295-4513

(Registrant’s telephone number)

Securities registered pursuant to Section 12(b) of the Act:

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer (as defined in Rule 405 of the Act).

Yes x    No ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes ¨     No x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x    No ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, as defined in Rule 12b-2 of the Act. Large accelerated filer x, Accelerated filer ¨, Non-accelerated filer ¨, Smaller reporting company ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes ¨    No x

The aggregate market value of Common Shares held by nonaffiliates of the registrant at June 29, 2007 was $4,446,505,998 based on the closing sale price of the Common Shares on the New York Stock Exchange on that date.

The number of Common Shares outstanding at February 12, 2008 was 65,686,769.

The information required by Part III of this report, to the extent not set forth herein, is incorporated by reference to the registrant’s Definitive Proxy Statement to be filed in respect of our 2008 Annual General Meeting of Shareholders.

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RENAISSANCERE HOLDINGS LTD.

TABLE OF CONTENTS

Table of Contents

PART I

Unless the context otherwise requires, references in this Annual Report to “RenaissanceRe” or the “Company” mean RenaissanceRe Holdings Ltd. and its subsidiaries, which principally include Renaissance Reinsurance Ltd. (“Renaissance Reinsurance”), Renaissance Reinsurance of Europe (“Renaissance Europe”), Glencoe Group Holdings Ltd. (“Glencoe Group”), Glencoe Specialty Holdings Inc. (“Glencoe Holdings”), Glencoe Insurance Ltd. (“Glencoe”), Glencoe U.S. Holdings Inc. (“Glencoe U.S.”), Stonington Insurance Company (“Stonington”), Lantana Insurance Ltd. (“Lantana”), Glencoe Specialty Services Inc. (“Glencoe Specialty Services”), Renaissance Underwriting Managers, Ltd. (“RUM”), RenaissanceRe Ventures Ltd. (“Ventures”), Timicuan Reinsurance Ltd. (“Tim Re”), RenTech U.S. Holdings Inc. (“RenTech”), RenRe Investment Managers Ltd. (“RIM”), Renaissance Trading Ltd. (“RTL”), Weather Predict Inc. (“Weather Predict”), WeatherPredict Consulting Inc. (“WP Consulting”), RenaissanceRe Capital Trust (“Capital Trust”), Renaissance Investment Management Company Ltd. (“RIMCO”), Renaissance Investment Holdings Ltd. (“RIHL”) and RenaissanceRe Services Ltd. (“Renaissance Services”). We also underwrite reinsurance on behalf of joint ventures, principally including Top Layer Reinsurance Ltd. (“Top Layer Re”) and Starbound Reinsurance II Ltd. (“Starbound II”), both recorded under the equity method of accounting, and DaVinci Reinsurance Ltd. (“DaVinci”). The financial results of DaVinci and DaVinci’s parent company, DaVinciRe Holdings Ltd. (“DaVinciRe”), are consolidated in our financial statements. Unless the context otherwise requires, references to RenaissanceRe do not include any of the joint ventures, which we account for under the equity method and for which we provide underwriting services. For your convenience, we have included a glossary beginning on page 62 of selected insurance and reinsurance terms. All dollar amounts referred to in this Form 10-K are in U.S. dollars unless otherwise indicated. Any discrepancies in the tables included herein between the amounts listed and the totals thereof are due to rounding.

NOTE ON FORWARD-LOOKING STATEMENTS

This Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which, with respect to future business decisions, are subject to change. These uncertainties and contingencies can affect actual results and could cause actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, us.

In particular, statements using words such as “may”, “should”, “estimate”, “expect”, “anticipate”, “intends”, “believe”, “predict”, “potential”, or words of similar import generally involve forward-looking statements. For example, we may include certain forward-looking statements in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” with regard to trends in results, prices, volumes, operations, investment results, margins, combined ratios, reserves, overall market trends, risk management and exchange rates. This Form 10-K also contains forward-looking statements with respect to our business and industry, such as those relating to our strategy and management objectives, trends in market conditions, prices, market standing and product volumes, investment results, government initiatives and regulatory matters, and pricing conditions in the reinsurance and insurance industries.

In light of the risks and uncertainties inherent in all future projections, the inclusion of forward-looking statements in this report should not be considered as a representation by us or any other person that our objectives or plans will be achieved. Numerous factors could cause our actual results to differ materially from those addressed by the forward-looking statements, including the following:

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The factors listed above should not be construed as exhaustive. Certain of these factors are described in more detail in “Risk Factors” below. We undertake no obligation to release publicly the results of any future revisions we may make to forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

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ITEM 1.     BUSINESS

GENERAL

RenaissanceRe, established in Bermuda in 1993 to write principally property catastrophe reinsurance, is today a leading global provider of reinsurance and insurance. Through our operating subsidiaries, we seek to obtain a portfolio of reinsurance, insurance and financial risks in each of our businesses that are significantly better than the market average and produce an attractive return on equity. We seek to accomplish this in part by taking advantage of market dislocations, and by leveraging our core capabilities of risk assessment and information management. Overall, our strategy focuses on superior risk selection, capital management, marketing and joint ventures. We provide value to our clients and joint venture partners in the form of financial security, innovative products, and responsive service. We are known as a leader in paying valid reinsurance claims promptly. We measure our financial success principally through long-term growth in tangible book value per common share plus accumulated dividends, which we believe is the most appropriate measure of our Company’s performance, and believe we have delivered superior performance in respect of this measure in the past.

Our core products include property catastrophe reinsurance, which we write through our principal operating subsidiary Renaissance Reinsurance and joint ventures, principally DaVinci, Top Layer Re and Starbound II; specialty reinsurance risks through Renaissance Reinsurance and DaVinci; and primary insurance and quota share reinsurance, which we write through the operating subsidiaries of the Glencoe Group. We believe that we are one of the world’s leading providers of property catastrophe reinsurance. We also believe we have a strong position in certain specialty reinsurance lines of business and are building a unique franchise in the U.S. program business. Our reinsurance and insurance products are principally distributed through intermediaries, with whom we seek to cultivate strong relationships.

We conduct our business through two reportable segments, Reinsurance and Individual Risk. For the year ended December 31, 2007, our Reinsurance and Individual Risk segments accounted for approximately 69.2% and 30.8%, respectively, of our total consolidated gross premiums written. Our segments are more fully described in “Business Segments” below.

Underwriting and Risk Management

We seek to develop and effectively utilize sophisticated computer models and other analytical tools to assess and manage the risks that we underwrite and attempt to optimize our portfolio of reinsurance and insurance contracts and other financial risks. These efforts are managed across our organization by a team of professionals led by our President and Chief Executive Officer.

With respect to our Reinsurance operations, since 1993, we have developed and continuously seek to improve our proprietary, computer-based pricing and exposure management system, Renaissance Exposure Management System (“REMS^©”). As described in more detail below, we believe that REMS^© is a more robust underwriting and risk management system than is currently commercially available elsewhere in the reinsurance industry and offers us a significant competitive advantage. REMS^© was originally developed to analyze catastrophe risks, though we are continuously enhancing the program in order to analyze other classes of risk.

In addition to using REMS^©, within our Individual Risk operations we have developed a proprietary information management and analytical database, our Program Analysis Central Repository (“PACeR”), within which data related to substantially all our U.S. program business is maintained. With the use and development of PACeR, we are seeking to develop statistical and analytical techniques to evaluate our U.S. program lines of business. We provide our program manager partners with access to PACeR’s capabilities, which we believe helps support superior underwriting decisions, thus creating value for them and for us. Our objective is to have PACeR create an advantage for our Individual Risk operations by assisting us in building and maintaining a well-priced portfolio of specialty insurance risks.

New Business

In addition to the potential growth of our existing reinsurance and insurance businesses, from time to time we consider opportunistic diversification into new ventures, either through organic growth, the formation of

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new joint ventures, or the acquisition of other companies or books of business of other companies. This potential diversification includes opportunities to write targeted, additional classes of risk-exposed business, both directly for our own account and through possible new joint venture opportunities. We also regularly evaluate opportunities to grow our business by utilizing our skills, capabilities, proprietary technology and relationships to expand into further risk-related coverages, services and products. Generally, we focus on underwriting or trading risks where reasonably sufficient data may be available, and where our analytical abilities may provide us a competitive advantage, in order for us to seek to model estimated probabilities of losses and returns in accordance with our approach in respect of our current portfolio of risks.

In evaluating potential new ventures, we seek an attractive return on equity, the ability to develop or capitalize on a competitive advantage, and opportunities which we believe will not detract from our core Reinsurance and Individual Risk operations. Accordingly, we regularly review strategic opportunities and periodically engage in discussions regarding possible transactions, although there can be no assurance that we will complete any such transactions or that any such transaction would contribute materially to our results of operations or financial condition. We believe that our ability to potentially attract investment and operational opportunities is supported by our strong reputation and financial resources, and by the capabilities and track record of our ventures unit.

CORPORATE STRATEGY

We seek to generate long-term growth in tangible book value per common share plus accumulated dividends for our shareholders by pursuing the following strategic objectives:

We believe we are well positioned to fulfill these objectives by virtue of the experience and skill of our management team, our significant financial strength, and our strong relationships with brokers and clients. In addition, we believe our superior service, our proprietary modeling technology, and our extensive business relationships, which have enabled us to become a leader in the property catastrophe reinsurance market, will be instrumental in allowing us to achieve our strategic objectives. In particular, we believe our responsive, flexible strategy and high performance, ethical culture and commitment to our clients and joint venture partners permit us to differentiate ourselves by offering specialized services and products at times and in markets where capacity and alternatives may be limited.

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BUSINESS SEGMENTS

We conduct our business through two reportable segments, Reinsurance and Individual Risk. Financial data relating to our two segments is included in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in our Financial Statements and Supplementary Data presented under Item 8.

Reinsurance Segment

Our Reinsurance operations are comprised of three units: 1) property catastrophe reinsurance, primarily written through Renaissance Reinsurance and DaVinci; 2) specialty reinsurance, primarily written through Renaissance Reinsurance and DaVinci; and 3) certain other activities of Ventures as described herein. Our Reinsurance operations are managed by the President of Renaissance Reinsurance, who leads a team of underwriters, risk modelers and other industry professionals, who have access to our proprietary risk management, underwriting and modeling resources and tools. We believe the expertise of our underwriting and modeling team and our proprietary analytic tools, together with superior customer service, provide us with a significant competitive advantage.

Our portfolio of business has continued to be increasingly characterized by relatively large transactions with ceding companies with whom we do business, although no current relationship exceeds 15% of our gross premiums written. Accordingly, our gross premiums written are subject to significant fluctuations depending on our success in maintaining or expanding our relationships with these large customers. We believe that recent market dynamics, and trends in our industry in respect of potential future consolidation, have increased our exposure to the risks of client and counterparty concentration.

The following table shows our total managed catastrophe and specialty reinsurance gross premiums written: