Form: 8-K

Current report filing

November 1, 2012







RenaissanceRe Holdings Ltd.
Contents

 
 
 
Page(s)
 
 
 
 
 
 
Basis of Presentation
 
i
 
 
 
 
 
 
Financial Highlights
 
1
 
 
 
 
 
 
Income Statements
 
 
 
a.
Summary Consolidated Statements of Operations
 
2 - 3
 
b.
Consolidated Segment Underwriting Results
 
4 - 5
 
c.
Reinsurance Segment - Unit Underwriting Results
 
6 - 7
 
d.
Gross Premiums Written and Managed Premiums
 
8 - 9
 
e.
DaVinciRe Holdings Ltd. and Subsidiary Consolidated Statements of Operations
 
10 - 11
 
 
 
 
 
 
Balance Sheets
 
 
 
a.
Summary Consolidated Balance Sheets
 
12
 
 
 
 
 
 
Investments
 
 
 
a.
Investment Portfolio - Composition
 
13
 
b.
Summary of Other Investments
 
14
 
c.
Investment Income (Loss)
 
15
 
d.
Investment Portfolio - Effective Yield and Credit Rating
 
16
 
e.
Investment Portfolio - Change in Portfolio Composition
 
17
 
f.
Fixed Maturity Investments - Corporate Sector
 
18
 
g.
Fixed Maturity and Short Term Investments - Corporate Top 10 Issuers by Fair Value
 
18
 
 
 
 
 
 
Loss Reserve Analysis
 
 
 
a.
Reserves for Claims and Claim Expenses
 
19
 
b.
Paid to Incurred Analysis
 
20
 
 
 
 
 
 
Other Items
 
 
 
a.
Earnings (Loss) per Share
 
21
 
b.
Equity in Earnings (Losses) of Other Ventures
 
22
 
c.
Other (Loss) Income
 
22
 
d.
Ratings
 
23
 
 
 
 
 
 
Comments on Regulation G
 
24 - 25
 




RenaissanceRe Holdings Ltd.
Basis of Presentation

This financial supplement includes certain non-GAAP financial measures including “operating income (loss) available (attributable) to RenaissanceRe common shareholders”, “operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted”, “operating return on average common equity - annualized”, “managed catastrophe premium”, “tangible book value per common share” and “tangible book value per common share plus accumulated dividends.” A reconciliation of such measures to the most comparable GAAP figures in accordance with Regulation G is presented in the attached supplemental financial data. See pages 24 and 25 for Comments on Regulation G.
RenaissanceRe Holdings Ltd. is a global provider of reinsurance and insurance. The Company's business consists of three reportable segments: (1) Reinsurance, which includes catastrophe reinsurance, specialty reinsurance and certain property catastrophe and specialty joint ventures managed by Company's ventures unit, (2) Lloyd's, which includes reinsurance and insurance business written through RenaissanceRe Syndicate 1458 (“Syndicate 1458”), and (3) Insurance, which principally includes the Company's Bermuda-based insurance operations.
Cautionary Statement under “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995: Statements made in this 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 Reports on Form 10-K and its Quarterly Reports on Form 10-Q.
All information contained herein is unaudited. Unless otherwise noted, dollar amounts are in thousands, except for share and per share amounts and ratio information. Certain prior period comparatives have been reclassified to conform to the current presentation. This supplement is being provided for informational purposes only. It should be read in conjunction with documents filed by RenaissanceRe Holdings Ltd. with the Securities and Exchange Commission, including its Annual Reports on Form 10-K and its Quarterly Reports on Form 10-Q. Please refer to the Company's website at www.renre.com for further information about RenaissanceRe Holdings Ltd.



 
i



RenaissanceRe Holdings Ltd.
Financial Highlights
 
 
 
 
 
Three months ended
 
Nine months ended
 
September 30,
2012
 
September 30,
2011
 
September 30,
2012
 
September 30,
2011
Highlights
 
 
 
 
 
 
 
Gross premiums written
$
136,359

 
$
139,938

 
$
1,467,846

 
$
1,392,006

Net premiums written
105,035

 
103,010

 
1,025,240

 
983,580

Net premiums earned
262,623

 
229,224

 
785,704

 
751,940

Net claims and claim expenses incurred
73,215

 
77,830

 
138,318

 
857,628

Underwriting income (loss)
122,580

 
83,168

 
447,049

 
(304,261
)
Net investment income (loss)
45,164

 
(27,940
)
 
126,878

 
65,669

Net income (loss) available (attributable) to RenaissanceRe common shareholders
180,660

 
49,263

 
524,359

 
(174,006
)
Net realized and unrealized gains on investments
76,258

 
16,983

 
153,374

 
46,748

Net other-than-temporary impairments

 
(449
)
 
(343
)
 
(449
)
Operating income (loss) available (attributable) to RenaissanceRe common shareholders (1)
104,402

 
32,729

 
371,328

 
(220,347
)
Total assets
$
8,793,508

 
$
8,117,409

 
$
8,793,508

 
$
8,117,409

Total shareholders' equity attributable to RenaissanceRe
$
3,838,956

 
$
3,547,814

 
$
3,838,956

 
$
3,547,814

Per share data
 
 
 
 
 
 
 
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted
$
3.62

 
$
0.95

 
$
10.24

 
$
(3.44
)
Operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted (1)
$
2.07

 
$
0.62

 
$
7.21

 
$
(4.35
)
Dividends per common share
$
0.27

 
$
0.26

 
$
0.81

 
$
0.78

Book value per common share
$
68.20

 
$
57.89

 
$
68.20

 
$
57.89

Adjustment for goodwill and other intangibles (1)
(0.85
)
 
(0.94
)
 
(0.85
)
 
(0.94
)
Tangible book value per common share (1)
67.35

 
56.95

 
67.35

 
56.95

Accumulated dividends per common share
11.73

 
10.66

 
11.73

 
10.66

 Tangible book value per common share plus accumulated dividends (1)
$
79.08

 
$
67.61

 
$
79.08

 
$
67.61

Financial ratios
 
 
 
 
 
 
 
 Net claims and claim expense ratio - current accident year
35.6
 %
 
37.7
 %
 
33.1
 %
 
127.0
 %
 Net claims and claim expense ratio - prior accident years
(7.7
)%
 
(3.7
)%
 
(15.5
)%
 
(12.9
)%
 Net claims and claim expense ratio - calendar year
27.9
 %
 
34.0
 %
 
17.6
 %
 
114.1
 %
 Underwriting expense ratio
25.4
 %
 
29.7
 %
 
25.5
 %
 
26.4
 %
 Combined ratio
53.3
 %
 
63.7
 %
 
43.1
 %
 
140.5
 %
 Operating return on average common equity - annualized (1)
12.7
 %
 
4.4
 %
 
15.4
 %
 
(9.6
)%
(1)
See Comments on Regulation G for a reconciliation of non-GAAP financial measures.

                 
 
1



RenaissanceRe Holdings Ltd.
Summary Consolidated Statements of Operations
 
 
 
Three months ended
 
September 30,
2012
 
June 30,
2012
 
March 31,
2012
 
December 31,
2011
 
September 30,
2011
Revenues
 
 
 
 
 
 
 
 
 
Gross premiums written
$
136,359

 
$
667,336

 
$
664,151

 
$
42,970

 
$
139,938

Net premiums written
$
105,035

 
$
427,630

 
$
492,575

 
$
29,193

 
$
103,010

Decrease (increase) in unearned premiums
157,588

 
(183,214
)
 
(213,910
)
 
169,916

 
126,214

Net premiums earned
262,623

 
244,416

 
278,665

 
199,109

 
229,224

Net investment income (loss)
45,164

 
14,743

 
66,971

 
52,331

 
(27,940
)
Net foreign exchange gains (losses)
3,001

 
2,410

 
(1,460
)
 
(400
)
 
(2,650
)
Equity in earnings (losses) of other ventures
4,310

 
6,846

 
5,470

 
(22,702
)
 
4,794

Other (loss) income
(881
)
 
11,289

 
(39,094
)
 
(43,648
)
 
(2,015
)
Net realized and unrealized gains on investments
76,258

 
31,003

 
46,113

 
23,920

 
16,983

Total other-than-temporary impairments

 
(234
)
 
(161
)
 
(132
)
 
(498
)
Portion recognized in other comprehensive income, before taxes

 
25

 
27

 
29

 
49

     Net other-than-temporary impairments

 
(209
)
 
(134
)
 
(103
)
 
(449
)
Total revenues
390,475

 
310,498

 
356,531

 
208,507

 
217,947

Expenses
 
 
 
 
 
 
 
 
 
Net claims and claim expenses incurred
73,215

 
49,551

 
15,552

 
3,551

 
77,830

Acquisition expenses
24,438

 
25,608

 
24,111

 
25,101

 
26,057

Operational expenses
42,390

 
41,407

 
42,383

 
43,368

 
42,169

Corporate expenses
3,850

 
4,067

 
4,811

 
8,607

 
3,582

Interest expense
5,891

 
5,716

 
5,718

 
5,721

 
5,722

Total expenses
149,784

 
126,349

 
92,575

 
86,348

 
155,360

Income from continuing operations before taxes
240,691

 
184,149

 
263,956

 
122,159

 
62,587

Income tax (expense) benefit
(144
)
 
(898
)
 
37

 
(2,945
)
 
1,435

Income from continuing operations
240,547

 
183,251

 
263,993

 
119,214

 
64,022

(Loss) income from discontinued operations
(54
)
 
1,393

 
(173
)
 
(3,305
)
 
(965
)
Net income
240,493

 
184,644

 
263,820

 
115,909

 
63,057

Net income attributable to noncontrolling interests
(51,083
)
 
(33,624
)
 
(53,641
)
 
(25,388
)
 
(5,044
)
Net income attributable to RenaissanceRe
189,410

 
151,020

 
210,179

 
90,521

 
58,013

Dividends on preference shares
(8,750
)
 
(8,750
)
 
(8,750
)
 
(8,750
)
 
(8,750
)
Net income available to RenaissanceRe common shareholders
$
180,660

 
$
142,270

 
$
201,429

 
$
81,771

 
$
49,263

Income from continuing operations available to RenaissanceRe common shareholders per common share - basic
$
3.67

 
$
2.75

 
$
3.93

 
$
1.66

 
$
0.98

(Loss) income from discontinued operations (attributable) available to RenaissanceRe common shareholders per common share - basic

 
0.03

 

 
(0.07
)
 
(0.02
)
Net income available to RenaissanceRe common shareholders per common share - basic
$
3.67

 
$
2.78

 
$
3.93

 
$
1.59

 
$
0.96

Income from continuing operations available to RenaissanceRe common shareholders per common share - diluted
3.62

 
2.72

 
$
3.88

 
$
1.64

 
$
0.97

(Loss) income from discontinued operations (attributable) available to RenaissanceRe common shareholders per common share - diluted

 
0.03

 

 
(0.06
)
 
(0.02
)
Net income available to RenaissanceRe common shareholders per common share - diluted
$
3.62

 
$
2.75

 
$
3.88

 
$
1.58

 
$
0.95

Operating income available to RenaissanceRe common shareholders per common share (1)
$
2.07

 
$
2.14

 
$
2.98

 
$
1.11

 
$
0.62

Operating return on average common equity - annualized (1)
12.7
%
 
13.7
%
 
19.7
%
 
7.7
%
 
4.4
%
(1)
See Comments on Regulation G for a reconciliation of non-GAAP financial measures.

                 
 
2




RenaissanceRe Holdings Ltd.
Summary Consolidated Statements of Operations
 
 
 
Nine months ended
 
September 30,
2012
 
September 30,
2011
Revenues
 
 
 
Gross premiums written
$
1,467,846

 
$
1,392,006

Net premiums written
$
1,025,240

 
$
983,580

Increase in unearned premiums
(239,536
)
 
(231,640
)
Net premiums earned
785,704

 
751,940

Net investment income
126,878

 
65,669

Net foreign exchange gains (losses)
3,951

 
(6,511
)
Equity in earnings (losses) of other ventures
16,626

 
(13,831
)
Other (loss) income
(28,686
)
 
42,963

Net realized and unrealized gains on investments
153,374

 
46,748

Total other-than-temporary impairments
(395
)
 
(498
)
Portion recognized in other comprehensive income, before taxes
52

 
49

     Net other-than-temporary impairments
(343
)
 
(449
)
Total revenues
1,057,504

 
886,529

Expenses
 
 
 
Net claims and claim expenses incurred
138,318

 
857,628

Acquisition expenses
74,157

 
72,275

Operational expenses
126,180

 
126,298

Corporate expenses
12,728

 
9,657

Interest expense
17,325

 
17,647

Total expenses
368,708

 
1,083,505

Income (loss) from continuing operations before taxes
688,796

 
(196,976
)
Income tax (expense) benefit
(1,005
)
 
3,260

Income (loss) from continuing operations
687,791

 
(193,716
)
Income (loss) from discontinued operations
1,166

 
(12,585
)
Net income (loss)
688,957

 
(206,301
)
Net (income) loss attributable to noncontrolling interests
(138,348
)
 
58,545

Net income (loss) attributable to RenaissanceRe
550,609

 
(147,756
)
Dividends on preference shares
(26,250
)
 
(26,250
)
Net income (loss) available (attributable) to RenaissanceRe common shareholders
$
524,359

 
$
(174,006
)
Income (loss) from continuing operations available (attributable) to RenaissanceRe common shareholders per common share - basic
$
10.36

 
$
(3.19
)
Income (loss) from discontinued operations available (attributable) to RenaissanceRe common shareholders per common share - basic
0.02

 
(0.25
)
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - basic
$
10.38

 
$
(3.44
)
Income (loss) from continuing operations available (attributable) to RenaissanceRe common shareholders per common share - diluted
10.22

 
(3.19
)
Income (loss) from discontinued operations available (attributable) to RenaissanceRe common shareholders per common share - diluted
0.02

 
(0.25
)
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted
$
10.24

 
$
(3.44
)
Operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share (1)
$
7.21

 
$
(4.35
)
Operating return on average common equity - annualized (1)
15.4
%
 
(9.6
)%
(1)
See Comments on Regulation G for a reconciliation of non-GAAP financial measures.

                 
 
3




RenaissanceRe Holdings Ltd.
Consolidated Segment Underwriting Results
 
 
 
Three months ended September 30, 2012
 
Reinsurance
 
Lloyd's
 
Insurance
 
Total
Gross premiums written
$
107,637

 
$
28,722

 
$

 
$
136,359

Net premiums written
$
78,164

 
$
26,982

 
$
(111
)
 
$
105,035

Net premiums earned
$
230,359

 
$
32,375

 
$
(111
)
 
$
262,623

Net claims and claim expenses incurred
47,080

 
26,331

 
(196
)
 
73,215

Acquisition expenses
18,258

 
6,051

 
129

 
24,438

Operational expenses
30,856

 
11,532

 
2

 
42,390

Underwriting income (loss)
$
134,165

 
$
(11,539
)
 
$
(46
)
 
$
122,580

 
 
 
 
 
 
 
 
Net claims and claim expenses incurred - current accident year
$
64,488

 
$
29,051

 
$

 
$
93,539

Net claims and claim expenses incurred - prior accident years
(17,408
)
 
(2,720
)
 
(196
)
 
(20,324
)
Net claims and claim expenses incurred - total
$
47,080

 
$
26,331

 
$
(196
)
 
$
73,215

 
 
 
 
 
 
 
 
Net claims and claim expense ratio - current accident year
28.0
 %
 
89.7
 %
 
 %
 
35.6
 %
Net claims and claim expense ratio - prior accident years
(7.6
)%
 
(8.4
)%
 
176.6
 %
 
(7.7
)%
Net claims and claim expense ratio - calendar year
20.4
 %
 
81.3
 %
 
176.6
 %
 
27.9
 %
Underwriting expense ratio
21.4
 %
 
54.3
 %
 
(118.0
)%
 
25.4
 %
Combined ratio
41.8
 %
 
135.6
 %
 
58.6
 %
 
53.3
 %
 
 
 
 
 
 
 
 
 
Three months ended September 30, 2011
 
Reinsurance
 
Lloyd's
 
 Insurance
 
Total
Gross premiums written
$
122,811

 
$
17,127

 
$

 
$
139,938

Net premiums written
$
86,745

 
$
16,125

 
$
140

 
$
103,010

Net premiums earned
$
208,074

 
$
20,797

 
$
353

 
$
229,224

Net claims and claim expenses incurred
58,565

 
14,141

 
5,124

 
77,830

Acquisition expenses
21,964

 
4,013

 
80

 
26,057

Operational expenses
32,462

 
9,560

 
147

 
42,169

Underwriting income (loss)
$
95,083

 
$
(6,917
)
 
$
(4,998
)
 
$
83,168

 
 
 
 
 
 
 
 
Net claims and claim expenses incurred - current accident year
$
72,358

 
$
14,089

 
$
(17
)
 
$
86,430

Net claims and claim expenses incurred - prior accident years
(13,793
)
 
52

 
5,141

 
(8,600
)
Net claims and claim expenses incurred - total
$
58,565

 
$
14,141

 
$
5,124

 
$
77,830

 
 
 
 
 
 
 
 
Net claims and claim expense ratio - current accident year
34.8
 %
 
67.7
 %
 
(4.8
)%
 
37.7
 %
Net claims and claim expense ratio - prior accident years
(6.7
)%
 
0.3
 %
 
1,456.4
 %
 
(3.7
)%
Net claims and claim expense ratio - calendar year
28.1
 %
 
68.0
 %
 
1,451.6
 %
 
34.0
 %
Underwriting expense ratio
26.2
 %
 
65.3
 %
 
64.3
 %
 
29.7
 %
Combined ratio
54.3
 %
 
133.3
 %
 
1,515.9
 %
 
63.7
 %


                 
 
4



RenaissanceRe Holdings Ltd.
Consolidated Segment Underwriting Results
 
 
 
Nine months ended September 30, 2012
 
Reinsurance
 
Lloyd's
 
Insurance
 
Eliminations (1)
 
Total
Gross premiums written
$
1,334,438

 
$
133,836

 
$

  
$
(428
)
 
$
1,467,846

Net premiums written
$
916,171

 
$
109,429

 
$
(360
)
 
 
 
$
1,025,240

Net premiums earned
$
698,473

 
$
87,566

 
$
(335
)
 
 
 
$
785,704

Net claims and claim expenses incurred
90,892

 
50,292

 
(2,866
)
 
 
 
138,318

Acquisition expenses
57,742

 
16,229

 
186

 
 
 
74,157

Operational expenses
93,246

 
32,395

 
539

 
 
 
126,180

Underwriting income (loss)
$
456,593

 
$
(11,350
)
 
$
1,806

 
 
 
$
447,049

 
 
 
 
 
 
 
 
 
 
Net claims and claim expenses incurred - current accident year
$
196,263

 
$
63,697

 
$

  
 
 
$
259,960

Net claims and claim expenses incurred - prior accident years
(105,371
)
 
(13,405
)
 
(2,866
)
 
 
 
(121,642
)
Net claims and claim expenses incurred - total
$
90,892

 
$
50,292

 
$
(2,866
)
 
 
 
$
138,318

 
 
 
 
 
 
 
 
 
 
Net claims and claim expense ratio - current accident year
28.1
 %
 
72.7
 %
 
 %
 
 
 
33.1
 %
Net claims and claim expense ratio - prior accident years
(15.1
)%
 
(15.3
)%
 
855.5
 %
 
 
 
(15.5
)%
Net claims and claim expense ratio - calendar year
13.0
 %
 
57.4
 %
 
855.5
 %
 
 
 
17.6
 %
Underwriting expense ratio
21.6
 %
 
55.6
 %
 
(216.4
)%
 
 
 
25.5
 %
Combined ratio
34.6
 %
 
113.0
 %
 
639.1
 %
 
 
 
43.1
 %
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2011
 
Reinsurance
 
Lloyd's
 
 Insurance
 
Eliminations (1)
 
Total
Gross premiums written
$
1,303,897

 
$
87,873

 
$
313

  
$
(77
)
 
$
1,392,006

Net premiums written
$
906,167

 
$
76,946

 
$
467

 
 
 
$
983,580

Net premiums earned
$
696,964

 
$
53,704

 
$
1,272

 
 
 
$
751,940

Net claims and claim expenses incurred
797,188

 
53,283

 
7,157

 
 
 
857,628

Acquisition expenses
62,187

 
9,779

 
309

 
 
 
72,275

Operational expenses
97,726

 
27,167

 
1,405

 
 
 
126,298

Underwriting loss
$
(260,137
)
 
$
(36,525
)
 
$
(7,599
)
 
 
 
$
(304,261
)
 
 
 
 
 
 
 
 
 
 
Net claims and claim expenses incurred - current accident year
$
902,118

 
$
53,027

 
$
(86
)
 
 
 
$
955,059

Net claims and claim expenses incurred - prior accident years
(104,930
)
 
256

 
7,243

 
 
 
(97,431
)
Net claims and claim expenses incurred - total
$
797,188

 
$
53,283

 
$
7,157

 
 
 
$
857,628

 
 
 
 
 
 
 
 
 
 
Net claims and claim expense ratio - current accident year
129.4
 %
 
98.7
 %
 
(6.8
)%
 
 
 
127.0
 %
Net claims and claim expense ratio - prior accident years
(15.0
)%
 
0.5
 %
 
569.5
 %
 
 
 
(12.9
)%
Net claims and claim expense ratio - calendar year
114.4
 %
 
99.2
 %
 
562.7
 %
 
 
 
114.1
 %
Underwriting expense ratio
22.9
 %
 
68.8
 %
 
134.7
 %
 
 
 
26.4
 %
Combined ratio
137.3
 %
 
168.0
 %
 
697.4
 %
 
 
 
140.5
 %
(1) Represents $0.4 million of gross premiums ceded from the Reinsurance segment to the Lloyd's segment for the nine months ended September 30, 2012 (2011 - $0.1 million).


                 
 
5



RenaissanceRe Holdings Ltd.
Reinsurance Segment - Unit Underwriting Results
 
 
 
Three months ended September 30, 2012
 
Catastrophe
 
 Specialty
 
Total
Gross premiums written
$
69,705

 
$
37,932

 
$
107,637

Net premiums written
$
40,935

 
$
37,229

 
$
78,164

Net premiums earned
$
190,806

 
$
39,553

 
$
230,359

Net claims and claim expenses incurred
11,518

 
35,562

 
47,080

Acquisition expenses
12,272

 
5,986

 
18,258

Operational expenses
24,185

 
6,671

 
30,856

Underwriting income (loss)
$
142,831

 
$
(8,666
)
 
$
134,165

 
 
 
 
 
 
Net claims and claim expenses incurred - current accident year
$
29,460

 
$
35,028

 
$
64,488

Net claims and claim expenses incurred - prior accident years
(17,942
)
 
534

 
(17,408
)
Net claims and claim expenses incurred - total
$
11,518

 
$
35,562

 
$
47,080

 
 
 
 
 
 
Net claims and claim expense ratio - current accident year
15.4
 %
 
88.6
 %
 
28.0
 %
Net claims and claim expense ratio - prior accident years
(9.4
)%
 
1.3
 %
 
(7.6
)%
Net claims and claim expense ratio - calendar year
6.0
 %
 
89.9
 %
 
20.4
 %
Underwriting expense ratio
19.1
 %
 
32.0
 %
 
21.4
 %
Combined ratio
25.1
 %
 
121.9
 %
 
41.8
 %
 
 
 
 
 
 
 
Three months ended September 30, 2011
 
Catastrophe
 
 Specialty
 
Total
Gross premiums written
$
97,217

 
$
25,594

 
$
122,811

Net premiums written
$
61,234

 
$
25,511

 
$
86,745

Net premiums earned
$
175,242

 
$
32,832

 
$
208,074

Net claims and claim expenses incurred
56,221

 
2,344

 
58,565

Acquisition expenses
17,149

 
4,815

 
21,964

Operational expenses
25,003

 
7,459

 
32,462

Underwriting income
$
76,869

 
$
18,214

 
$
95,083

 
 
 
 
 
 
Net claims and claim expenses incurred - current accident year
$
57,242

 
$
15,116

 
$
72,358

Net claims and claim expenses incurred - prior accident years
(1,021
)
 
(12,772
)
 
(13,793
)
Net claims and claim expenses incurred - total
$
56,221

 
$
2,344

 
$
58,565

 
 
 
 
 
 
Net claims and claim expense ratio - current accident year
32.7
 %
 
46.0
 %
 
34.8
 %
Net claims and claim expense ratio - prior accident years
(0.6
)%
 
(38.9
)%
 
(6.7
)%
Net claims and claim expense ratio - calendar year
32.1
 %
 
7.1
 %
 
28.1
 %
Underwriting expense ratio
24.0
 %
 
37.4
 %
 
26.2
 %
Combined ratio
56.1
 %
 
44.5
 %
 
54.3
 %

                 
 
6



RenaissanceRe Holdings Ltd.
Reinsurance Segment - Unit Underwriting Results
 
 
 
Nine months ended September 30, 2012
 
Catastrophe
 
 Specialty
 
Total
Gross premiums written
$
1,158,683

 
$
175,755

 
$
1,334,438

Net premiums written
$
747,684

 
$
168,487

 
$
916,171

Net premiums earned
$
576,498

 
$
121,975

 
$
698,473

Net claims and claim expenses incurred
27,780

 
63,112

 
90,892

Acquisition expenses
41,436

 
16,306

 
57,742

Operational expenses
72,758

 
20,488

 
93,246

Underwriting income
$
434,524

 
$
22,069

 
$
456,593

 
 
 
 
 
 
Net claims and claim expenses incurred - current accident year
$
113,864

 
$
82,399

 
$
196,263

Net claims and claim expenses incurred - prior accident years
(86,084
)
 
(19,287
)
 
(105,371
)
Net claims and claim expenses incurred - total
$
27,780

 
$
63,112

 
$
90,892

 
 
 
 
 
 
Net claims and claim expense ratio - current accident year
19.8
 %
 
67.6
 %
 
28.1
 %
Net claims and claim expense ratio - prior accident years
(15.0
)%
 
(15.9
)%
 
(15.1
)%
Net claims and claim expense ratio - calendar year
4.8
 %
 
51.7
 %
 
13.0
 %
Underwriting expense ratio
19.8
 %
 
30.2
 %
 
21.6
 %
Combined ratio
24.6
 %
 
81.9
 %
 
34.6
 %
 
 
 
 
 
 
 
Nine months ended September 30, 2011
 
Catastrophe
 
 Specialty
 
Total
Gross premiums written
$
1,179,141

 
$
124,756

 
$
1,303,897

Net premiums written
$
786,910

 
$
119,257

 
$
906,167

Net premiums earned
$
598,040

 
$
98,924

 
$
696,964

Net claims and claim expenses incurred
770,113

 
27,075

 
797,188

Acquisition expenses
46,658

 
15,529

 
62,187

Operational expenses
75,464

 
22,262

 
97,726

Underwriting (loss) income
$
(294,195
)
 
$
34,058

 
$
(260,137
)
 
 
 
 
 
 
Net claims and claim expenses incurred - current accident year
$
802,630

 
$
99,488

 
$
902,118

Net claims and claim expenses incurred - prior accident years
(32,517
)
 
(72,413
)
 
(104,930
)
Net claims and claim expenses incurred - total
$
770,113

 
$
27,075

 
$
797,188

 
 
 
 
 
 
Net claims and claim expense ratio - current accident year
134.2
 %
 
100.6
 %
 
129.4
 %
Net claims and claim expense ratio - prior accident years
(5.4
)%
 
(73.2
)%
 
(15.0
)%
Net claims and claim expense ratio - calendar year
128.8
 %
 
27.4
 %
 
114.4
 %
Underwriting expense ratio
20.4
 %
 
38.2
 %
 
22.9
 %
Combined ratio
149.2
 %
 
65.6
 %
 
137.3
 %

                 
 
7



RenaissanceRe Holdings Ltd.
Gross Premiums Written and Managed Premiums
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
September 30,
2012
 
June 30,
2012
 
March 31,
2012
 
December 31,
2011
 
September 30,
2011
Reinsurance Segment
 
 
 
 
 
 
 
 
 
Renaissance catastrophe premiums
$
44,699

 
$
345,094

 
$
330,427

 
$
(652
)
 
$
64,317

Renaissance specialty premiums
37,932

 
35,778

 
99,545

 
21,117

 
25,614

Total Renaissance premiums
82,631

 
380,872

 
429,972

 
20,465

 
89,931

DaVinci catastrophe premiums
25,006

 
234,644

 
178,813

 
(1,193
)
 
32,900

DaVinci specialty premiums

 
1,523

 
977

 
18

 
(20
)
Total DaVinci premiums
25,006

 
236,167

 
179,790

 
(1,175
)
 
32,880

Total catastrophe unit premiums
69,705

 
579,738

 
509,240

 
(1,845
)
 
97,217

Total specialty unit premiums
37,932

 
37,301

 
100,522

 
21,135

 
25,594

Total Reinsurance segment gross premiums written
$
107,637

 
$
617,039

 
$
609,762

 
$
19,290

 
$
122,811

 
 
 
 
 
 
 
 
 
 
Lloyd's Segment
 
 
 
 
 
 
 
 
 
Specialty
$
26,455

 
$
32,925

 
$
39,329

 
$
22,570

 
$
14,290

Catastrophe
2,267

 
17,372

 
15,488

 
1,141

 
2,837

Total Lloyd's segment gross premiums written
$
28,722

 
$
50,297

 
$
54,817

 
$
23,711

 
$
17,127

 
 
 
 
 
 
 
 
 
 
Insurance Segment
 
 
 
 
 
 
 
 
 
Commercial property
$

 
$

 
$

 
$
(31
)
 
$

Total Insurance segment gross premiums written
$

 
$

 
$

 
$
(31
)
 
$

 
 
 
 
 
 
 
 
 
 
Managed Premiums (1)
 
 
 
 
 
 
 
 
 
Total catastrophe unit gross premiums written
$
69,705

 
$
579,738

 
$
509,240

 
$
(1,845
)
 
$
97,217

Catastrophe premiums written on behalf of our joint venture, Top Layer Re (2)
5,382

 
31,180

 
34,305

 
1,497

 
12,379

Catastrophe premiums written in the Lloyd's segment
2,267

 
17,372

 
15,488

 
1,141

 
2,837

Total managed catastrophe premiums (1)
$
77,354

 
$
628,290

 
$
559,033

 
$
793

 
$
112,433

(1) See Comments on Regulation G for a reconciliation of non-GAAP financial measures.
(2) Top Layer Re is accounted for under the equity method of accounting.

                 
 
8



RenaissanceRe Holdings Ltd.
Gross Premiums Written and Managed Premiums
 
 
 
 
 
Nine months ended
 
September 30,
2012
 
September 30,
2011
Reinsurance Segment
 
 
 
Renaissance catastrophe premiums
$
720,220

 
$
742,888

Renaissance specialty premiums
173,255

 
123,075

Total Renaissance premiums
893,475

 
865,963

DaVinci catastrophe premiums
438,463

 
436,253

DaVinci specialty premiums
2,500

 
1,681

Total DaVinci premiums
440,963

 
437,934

Total catastrophe unit premiums
1,158,683

 
1,179,141

Total specialty unit premiums
175,755

 
124,756

Total Reinsurance segment gross premiums written
$
1,334,438

 
$
1,303,897

 
 
 
 
Lloyd's Segment
 
 
 
Specialty
$
98,709

 
$
61,071

Catastrophe
35,127

 
26,802

Total Lloyd's segment gross premiums written
$
133,836

 
$
87,873

 
 
 
 
Insurance Segment
 
 
 
Commercial property
$

 
$
313

Total Insurance segment gross premiums written
$

 
$
313

 
 
 
 
Managed Premiums (1)
 
 
 
Total catastrophe unit gross premiums written
$
1,158,683

 
$
1,179,141

Catastrophe premiums written on behalf of our joint venture, Top Layer Re (2)
70,867

 
53,986

Catastrophe premiums written in the Lloyd's segment
35,127

 
26,802

Total managed catastrophe premiums (1)
$
1,264,677

 
$
1,259,929

(1) See Comments on Regulation G for a reconciliation of non-GAAP financial measures.
(2) Top Layer Re is accounted for under the equity method of accounting.

                 
 
9



DaVinciRe Holdings Ltd. and Subsidiary
Consolidated Statements of Operations
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
September 30,
2012
 
June 30,
2012
 
March 31,
2012
 
December 31,
2011
 
September 30,
2011

Revenues
 
 
 
 
 
 
 
 
 
Gross premiums written
$
25,006

 
$
236,167

 
$
179,790

 
$
(1,175
)
 
$
32,880

Net premiums written
$
18,554

 
$
185,088

 
$
154,680

 
$
(3,264
)
 
$
22,673

Decrease (increase) in unearned premiums
72,039

 
(104,070
)
 
(59,543
)
 
74,533

 
58,063

Net premiums earned
90,593

 
81,018

 
95,137

 
71,269

 
80,736

Net investment income (loss)
8,146

 
4,109

 
10,527

 
9,501

 
(700
)
Net foreign exchange gains (losses)
1,115

 
1,465

 
76

 
(461
)
 
(1,194
)
Other loss
(1,384
)
 
(1,222
)
 
(462
)
 
(799
)
 
(1,032
)
Net realized and unrealized gains (losses) on fixed maturity investments
21,553

 
7,025

 
16,666

 
5,915

 
(4,871
)
Total revenues
120,023

 
92,395

 
121,944

 
85,425

 
72,939

Expenses
 
 
 
 
 
 
 
 
 
Net claims and claim expenses incurred
10,170

 
14,213

 
1,924

 
12,566

 
35,332

Acquisition expenses
22,783

 
19,051

 
24,099

 
16,450

 
14,916

Operational and corporate expenses
10,740

 
11,902

 
12,301

 
10,655

 
11,655

Interest expense
1,980

 
1,985

 
2,040

 
1,936

 
1,873

Total expenses
45,673

 
47,151

 
40,364

 
41,607

 
63,776

Net income
74,350

 
45,244

 
81,580

 
43,818

 
9,163

Net income attributable to redeemable noncontrolling interest
(152
)
 
(95
)
 
(167
)
 
(91
)
 
(22
)
Net income available to DaVinciRe common shareholders
$
74,198

 
$
45,149

 
$
81,413

 
$
43,727

 
$
9,141

 
 
 
 
 
 
 
 
 
 
Net claims and claim expenses incurred - current accident year
$
14,330

 
$
24,454

 
$
14,826

 
$
24,413

 
$
33,096

Net claims and claim expenses incurred - prior accident years
(4,160
)
 
(10,241
)
 
(12,902
)
 
(11,847
)
 
2,236

Net claims and claim expenses incurred - total
$
10,170

 
$
14,213

 
$
1,924

 
$
12,566

 
$
35,332

 
 
 
 
 
 
 
 
 
 
Net claims and claim expense ratio - current accident year
15.8
 %
 
30.2
 %
 
15.6
 %
 
34.3
 %
 
41.0
%
Net claims and claim expense ratio - prior accident years
(4.6
)%
 
(12.7
)%
 
(13.6
)%
 
(16.7
)%
 
2.8
%
Net claims and claim expense ratio - calendar year
11.2
 %
 
17.5
 %
 
2.0
 %
 
17.6
 %
 
43.8
%
Underwriting expense ratio
37.0
 %
 
38.2
 %
 
38.3
 %
 
38.1
 %
 
32.9
%
Combined ratio
48.2
 %
 
55.7
 %
 
40.3
 %
 
55.7
 %
 
76.7
%

                 
 
10



DaVinciRe Holdings Ltd. and Subsidiary
Consolidated Statements of Operations
 
 
 
 
 
Nine months ended
 
September 30,
2012
 
September 30,
2011
Revenues
 
 
 
Gross premiums written
$
440,963

 
$
437,934

Net premiums written
$
358,322

 
$
365,082

Increase in unearned premiums
(91,574
)
 
(85,918
)
Net premiums earned
266,748

 
279,164

Net investment income
22,782

 
12,463

Net foreign exchange gains (losses)
2,656

 
(1,445
)
Other (loss) income
(3,068
)
 
9,775

Net realized and unrealized gains on fixed maturity investments
45,244

 
4,715

Total revenues
334,362

 
304,672

Expenses
 
 
 
Net claims and claim expenses incurred
26,307

 
381,524

Acquisition expenses
65,933

 
1,957

Operational and corporate expenses
34,943

 
22,204

Interest expense
6,005

 
4,249

Total expenses
133,188

 
409,934

Net income (loss)
201,174

 
(105,262
)
Net (income) loss attributable to redeemable noncontrolling interest
(414
)
 
202

Net income (loss) available (attributable) to DaVinciRe common shareholders
$
200,760

 
$
(105,060
)
 
 
 
 
Net claims and claim expenses incurred - current accident year
$
53,610

 
$
390,571

Net claims and claim expenses incurred - prior accident years
(27,303
)
 
(9,047
)
Net claims and claim expenses incurred - total
$
26,307

 
$
381,524

 
 
 
 
Net claims and claim expense ratio - current accident year
20.1
 %
 
139.9
 %
Net claims and claim expense ratio - prior accident years
(10.2
)%
 
(3.2
)%
Net claims and claim expense ratio - calendar year
9.9
 %
 
136.7
 %
Underwriting expense ratio
37.8
 %
 
8.6
 %
Combined ratio
47.7
 %
 
145.3
 %

                 
 
11



RenaissanceRe Holdings Ltd.
Summary Consolidated Balance Sheets
 
 
 
 
 
 
 
 
 
 
 
September 30,
2012
 
June 30,
2012
 
March 31,
2012
 
December 31,
2011
 
September 30,
2011

Assets
 
 
 
 
 
 
 
 
 
Fixed maturity investments trading, at fair value
$
5,089,540

 
$
4,948,955

 
$
4,176,827

 
$
4,291,465

 
$
3,687,669

Fixed maturity investments available for sale, at fair value
94,826

 
108,102

 
125,292

 
142,052

 
149,969

Total fixed maturity investments, at fair value
5,184,366

 
5,057,057

 
4,302,119

 
4,433,517

 
3,837,638

Short term investments, at fair value
679,356

 
654,912

 
1,172,839

 
905,477

 
1,557,937

Equity investments trading, at fair value
57,617

 
55,381

 
53,080

 
50,560

 
45,607

Other investments, at fair value
752,000

 
743,568

 
806,782

 
748,984

 
736,757

Investments in other ventures, under equity method
82,212

 
79,692

 
76,723

 
70,714

 
78,071

Total investments
6,755,551

 
6,590,610

 
6,411,543

 
6,209,252

 
6,256,010

Cash and cash equivalents
249,123

 
264,232

 
260,982

 
216,984

 
235,058

Premiums receivable
701,240

 
971,546

 
703,932

 
471,878

 
695,163

Prepaid reinsurance premiums
189,592

 
278,242

 
143,690

 
58,522

 
164,547

Reinsurance recoverable
209,490

 
198,777

 
279,398

 
404,029

 
434,553

Accrued investment income
37,327

 
35,938

 
30,782

 
33,523

 
34,237

Deferred acquisition costs
83,222

 
106,027

 
71,162

 
43,721

 
71,225

Receivable for investments sold
344,367

 
311,658

 
237,372

 
117,117

 
33,791

Other assets
215,008

 
193,798

 
205,660

 
180,992

 
176,114

Goodwill and other intangibles
8,588

 
8,690

 
9,077

 
8,894

 
14,230

Assets of discontinued operations held for sale

 

 

 

 
2,481

Total assets
$
8,793,508

 
$
8,959,518

 
$
8,353,598

 
$
7,744,912

 
$
8,117,409

Liabilities, Noncontrolling Interests and Shareholders' Equity
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
Reserve for claims and claim expenses
$
1,782,680

 
$
1,801,247

 
$
1,858,203

 
$
1,992,354

 
$
2,226,005

Unearned premiums
718,261

 
964,499

 
646,733

 
347,655

 
623,596

Debt
358,595

 
354,293

 
351,999

 
353,620

 
349,224

Reinsurance balances payable
356,136

 
396,669

 
285,207

 
256,883

 
317,627

Payable for investments purchased
576,052

 
519,619

 
361,460

 
303,264

 
233,282

Other liabilities
206,709

 
173,433

 
242,257

 
211,369

 
174,424

Liabilities of discontinued operations held for sale
1,318

 
1,959

 
12,539

 
13,507

 
9,098

Total liabilities
3,999,751

 
4,211,719

 
3,758,398

 
3,478,652

 
3,933,256

Redeemable noncontrolling interest - DaVinciRe
950,822

 
900,878

 
796,743

 
657,727

 
633,112

Shareholders' Equity
 
 
 
 
 
 
 
 
 
Preference shares
550,000

 
550,000

 
550,000

 
550,000

 
550,000

Common shares
48,228

 
50,609

 
51,765

 
51,543

 
51,787

Additional paid-in capital

 

 
379

 

 
9,331

Accumulated other comprehensive income
14,067

 
12,531

 
12,988

 
11,760

 
11,092

Retained earnings
3,226,661

 
3,229,870

 
3,179,433

 
2,991,890

 
2,925,604

Total shareholders' equity attributable to RenaissanceRe
3,838,956

 
3,843,010

 
3,794,565

 
3,605,193

 
3,547,814

Noncontrolling interest
3,979

 
3,911

 
3,892

 
3,340

 
3,227

Total shareholders' equity
3,842,935

 
3,846,921

 
3,798,457

 
3,608,533

 
3,551,041

Total liabilities, noncontrolling interests and shareholders' equity
$
8,793,508

 
$
8,959,518

 
$
8,353,598

 
$
7,744,912

 
$
8,117,409

 
 
 
 
 
 
 
 
 
 
Book value per common share
$
68.20

 
$
65.07

 
$
62.68

 
$
59.27

 
$
57.89


                 
 
12



RenaissanceRe Holdings Ltd.
Investment Portfolio - Composition
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2012
 
June 30, 2012
 
March 31, 2012
 
December 31, 2011
 
September 30, 2011
TYPE OF INVESTMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. treasuries
$
1,178,345

 
17.4
%
 
$
1,126,759

 
17.1
%
 
$
1,309,243

 
20.4
%
 
$
885,152

 
14.3
%
 
$
428,865

 
6.9
%
Agencies
426,067

 
6.3
%
 
436,691

 
6.7
%
 
343,575

 
5.4
%
 
158,561

 
2.6
%
 
127,063

 
2.0
%
Non-U.S. government (Sovereign debt)
156,473

 
2.3
%
 
177,231

 
2.7
%
 
130,899

 
2.0
%
 
227,912

 
3.7
%
 
402,288

 
6.4
%
FDIC guaranteed corporate
14,105

 
0.2
%
 
29,386

 
0.4
%
 
103,554

 
1.6
%
 
423,630

 
6.8
%
 
183,314

 
2.9
%
Non-U.S. government-backed corporate
371,186

 
5.5
%
 
393,875

 
6.0
%
 
501,160

 
7.8
%
 
641,082

 
10.3
%
 
594,897

 
9.6
%
Corporate
1,719,627

 
25.5
%
 
1,664,722

 
25.3
%
 
1,146,211

 
17.9
%
 
1,206,904

 
19.4
%
 
1,294,442

 
20.7
%
Agency mortgage-backed
580,823

 
8.6
%
 
592,355

 
9.0
%
 
319,215

 
5.0
%
 
441,749

 
7.1
%
 
363,814

 
5.8
%
Non-agency mortgage-backed
224,619

 
3.3
%
 
153,674

 
2.3
%
 
108,047

 
1.7
%
 
104,771

 
1.7
%
 
104,541

 
1.7
%
Commercial mortgage-backed
499,491

 
7.4
%
 
470,167

 
7.1
%
 
329,343

 
5.1
%
 
325,729

 
5.2
%
 
318,805

 
5.1
%
Asset-backed
13,630

 
0.2
%
 
12,197

 
0.2
%
 
10,872

 
0.2
%
 
18,027

 
0.3
%
 
19,609

 
0.3
%
Total fixed maturity investments, at fair value
5,184,366

 
76.7
%
 
5,057,057

 
76.8
%
 
4,302,119

 
67.1
%
 
4,433,517

 
71.4
%
 
3,837,638

 
61.4
%
Short term investments, at fair value
679,356

 
10.1
%
 
654,912

 
9.9
%
 
1,172,839

 
18.3
%
 
905,477

 
14.6
%
 
1,557,937

 
24.9
%
Equity investments trading, at fair value
57,617

 
0.9
%
 
55,381

 
0.8
%
 
53,080

 
0.8
%
 
50,560

 
0.8
%
 
45,607

 
0.7
%
Other investments, at fair value
752,000

 
11.1
%
 
743,568

 
11.3
%
 
806,782

 
12.6
%
 
748,984

 
12.1
%
 
736,757

 
11.8
%
Total managed investment portfolio
6,673,339

 
98.7
%
 
6,510,918

 
98.9
%
 
6,334,820

 
98.8
%
 
6,138,538

 
98.9
%
 
6,177,939

 
98.8
%
Investments in other ventures, under equity method
82,212

 
1.2
%
 
79,692

 
1.2
%
 
76,723

 
1.2
%
 
70,714

 
1.1
%
 
78,071

 
1.2
%
Total investments
$
6,755,551

 
100.0
%
 
$
6,590,610

 
100.0
%
 
$
6,411,543

 
100.0
%
 
$
6,209,252

 
100.0
%
 
$
6,256,010

 
100.0
%
CREDIT QUALITY OF FIXED MATURITY INVESTMENTS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AAA
$
801,827

 
15.5
%
 
$
842,146

 
16.7
%
 
$
742,577

 
17.2
%
 
$
1,023,890

 
23.1
%
 
$
1,099,221

 
28.6
%
AA (1)
2,690,342

 
51.9
%
 
2,626,291

 
51.9
%
 
2,459,756

 
57.2
%
 
2,244,016

 
50.6
%
 
1,607,177

 
41.9
%
A
936,264

 
18.0
%
 
917,152

 
18.1
%
 
574,809

 
13.4
%
 
631,479

 
14.2
%
 
619,229

 
16.1
%
BBB
336,207

 
6.5
%
 
319,760

 
6.3
%
 
272,616

 
6.3
%
 
335,002

 
7.6
%
 
329,213

 
8.6
%
Non-investment grade and not rated
419,726

 
8.1
%
 
351,708

 
7.0
%
 
252,361

 
5.9
%
 
199,130

 
4.5
%
 
182,798

 
4.8
%
Total fixed maturity investments, at fair value
$
5,184,366

 
100.0
%
 
$
5,057,057

 
100.0
%
 
$
4,302,119

 
100.0
%
 
$
4,433,517

 
100.0
%
 
$
3,837,638

 
100.0
%
MATURITY PROFILE OF FIXED MATURITY INVESTMENTS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Due in less than one year
$
417,722

 
8.0
%
 
$
405,636

 
8.0
%
 
$
386,259

 
9.0
%
 
$
619,845

 
14.0
%
 
$
168,557

 
4.4
%
Due after one through five years
2,633,322

 
50.8
%
 
2,624,676

 
52.0
%
 
2,367,344

 
55.0
%
 
2,035,383

 
45.9
%
 
1,893,416

 
49.3
%
Due after five through ten years
671,408

 
13.0
%
 
652,909

 
12.9
%
 
646,091

 
15.0
%
 
742,050

 
16.7
%
 
831,196

 
21.7
%
Due after ten years
143,351

 
2.8
%
 
145,443

 
2.9
%
 
134,948

 
3.1
%
 
145,963

 
3.3
%
 
137,700

 
3.6
%
Mortgage-backed securities
1,304,933

 
25.2
%
 
1,216,196

 
24.0
%
 
756,605

 
17.6
%
 
872,249

 
19.7
%
 
787,160

 
20.5
%
Asset-backed securities
13,630

 
0.2
%
 
12,197

 
0.2
%
 
10,872

 
0.3
%
 
18,027

 
0.4
%
 
19,609

 
0.5
%
Total fixed maturity investments, at fair value
$
5,184,366

 
100.0
%
 
$
5,057,057

 
100.0
%
 
$
4,302,119

 
100.0
%
 
$
4,433,517

 
100.0
%
 
$
3,837,638

 
100.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average effective yield of fixed maturities and short term investments
1.4
%
 
 
 
1.8
%
 
 
 
1.6
%
 
 
 
1.9
%
 
 
 
2.0
%
 
 
Average duration of fixed maturities and short term investments
2.2

 
 
 
2.2

 
 
 
2.3

 
 
 
2.6

 
 
 
2.5

 
 
(1)
Included in the AA rating category at September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011 and September 30, 2011 is $1,618.5 million, $1,592.8 million, $1,756.4 million, $1,467.3 million and $739.2 million, respectively, of U.S. treasuries, agencies and FDIC guaranteed corporate fixed maturity investments that were included in the AAA rating category in prior periods.

                 
 
13



RenaissanceRe Holdings Ltd.
Summary of Other Investments
 
 
 
 
 
 
 
 
 
 
 
September 30,
2012
 
June 30,
2012
 
March 31,
2012
 
December 31,
2011
 
September 30,
2011
TYPE OF INVESTMENT
 
 
 
 
 
 
 
 
 
Private equity partnerships
$
359,880

 
$
360,268

 
$
389,451

 
$
367,909

 
$
345,986

Senior secured bank loan funds
279,839

 
269,317

 
266,141

 
257,870

 
243,766

Catastrophe bonds
106,319

 
106,470

 
95,827

 
70,999

 
85,800

Hedge funds
5,962

 
6,243

 
22,310

 
21,344

 
26,810

Non-U.S. fixed income funds

 

 
31,713

 
28,862

 
29,440

Miscellaneous other investments

 
1,270

 
1,340

 
2,000

 
4,955

Total other investments, at fair value
$
752,000

 
$
743,568

 
$
806,782

 
$
748,984

 
$
736,757

 
 
 
 
 
 
 
 
 
 
TYPE OF INVESTMENT
 
 
 
 
 
 
 
 
 
Private equity partnerships
47.9
%
 
48.5
%
 
48.2
%
 
49.1
%
 
47.0
%
Senior secured bank loan funds
37.2
%
 
36.2
%
 
33.0
%
 
34.4
%
 
33.1
%
Catastrophe bonds
14.1
%
 
14.3
%
 
11.9
%
 
9.5
%
 
11.6
%
Hedge funds
0.8
%
 
0.8
%
 
2.8
%
 
2.8
%
 
3.6
%
Non-U.S. fixed income funds
%
 
%
 
3.9
%
 
3.9
%
 
4.0
%
Miscellaneous other investments
%
 
0.2
%
 
0.2
%
 
0.3
%
 
0.7
%
Total other investments, at fair value
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%



                 
 
14



RenaissanceRe Holdings Ltd.
Investment Income (Loss)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
Nine months ended
 
September 30,
2012
 
June 30,
2012
 
March 31,
2012
 
December 31,
2011
 
September 30,
2011
 
September 30,
2012
 
September 30,
2011
Fixed maturity investments
$
24,785

 
$
22,436

 
$
26,333

 
$
26,084

 
$
11,435

 
$
73,554

 
$
63,774

Short term investments
219

 
234

 
500

 
357

 
281

 
953

 
1,309

Equity investments trading
181

 
181

 
170

 
174

 
171

 
532

 
297

Other investments
 
 
 
 
 
 
 
 
 
 
 
 
 
Hedge funds and private equity investments
10,383

 
(10,413
)
 
28,473

 
21,506

 
(25,702
)
 
28,443

 
6,035

Other
12,737

 
4,975

 
14,170

 
6,458

 
(11,665
)
 
31,882

 
2,000

Cash and cash equivalents
63

 
54

 
26

 
11

 
66

 
143

 
152

 
48,368

 
17,467

 
69,672

 
54,590

 
(25,414
)
 
135,507

 
73,567

Investment expenses
(3,204
)
 
(2,724
)
 
(2,701
)
 
(2,259
)
 
(2,526
)
 
(8,629
)
 
(7,898
)
Net investment income (loss)
45,164

 
14,743

 
66,971

 
52,331

 
(27,940
)
 
126,878

 
65,669

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross realized gains
19,891

 
19,458

 
36,286

 
15,312

 
38,054

 
75,635

 
64,046

Gross realized losses
(2,811
)
 
(3,294
)
 
(6,950
)
 
(7,787
)
 
(6,099
)
 
(13,055
)
 
(22,872
)
Net realized gains on fixed maturity investments
17,080

 
16,164

 
29,336

 
7,525

 
31,955

 
62,580

 
41,174

Net unrealized gains (losses) on fixed maturity investments trading
56,942

 
12,538

 
14,257

 
11,441

 
(13,007
)
 
83,737

 
7,963

Net unrealized gains (losses) on equity investments trading
2,236

 
2,301

 
2,520

 
4,954

 
(1,965
)
 
7,057

 
(2,389
)
Net realized and unrealized gains on investments
76,258

 
31,003

 
46,113

 
23,920

 
16,983

 
153,374

 
46,748

Total other-than-temporary impairments

 
(234
)
 
(161
)
 
(132
)
 
(498
)
 
(395
)
 
(498
)
Portion recognized in other comprehensive income, before taxes

 
25

 
27

 
29

 
49

 
52

 
49

Net other-than-temporary impairments

 
(209
)
 
(134
)
 
(103
)
 
(449
)
 
(343
)
 
(449
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Change in net unrealized gains on fixed maturity investments available for sale
1,326

 
(706
)
 
778

 
697

 
(7,171
)
 
1,398

 
(8,682
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total investment income (loss)
$
122,748

 
$
44,831

 
$
113,728

 
$
76,845

 
$
(18,577
)
 
$
281,307

 
$
103,286



                 
 
15



RenaissanceRe Holdings Ltd.
Investment Portfolio - Effective Yield and Credit Rating
  
  
 
  
 
  
 
Credit Rating (1)
September 30, 2012
Amortized
Cost
 
Fair Value
 
% of Total
Investment
Portfolio
 
Weighted Average Effective Yield
 
AAA
 
AA
 
A
 
BBB
 
Non-
Investment
Grade
 
Not Rated
Short term investments
$
679,356

 
$
679,356

 
10.1
%
 
0.2
%
 
$
646,623

 
$
28,177

 
$
2,948

 
$
1,599

 
$
9

 
$

 
 
 
100.0
%
 
 
 
 
 
95.2
%
 
4.2
%
 
0.4
%
 
0.2
%
 
%
 
%
Fixed maturity investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. treasuries
1,173,659

 
1,178,345

 
17.4
%
 
0.4
%
 

 
1,178,345

 

 

 

 

Agencies
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

393,697

 
396,997

 
5.9
%
 
0.6
%
 

 
396,997

 

 

 

 

Other agencies
28,706

 
29,070

 
0.4
%
 
0.7
%
 

 
29,070

 

 

 

 

Total agencies
422,403

 
426,067

 
6.3
%
 
0.6
%
 

 
426,067

 

 

 

 

Non-U.S. government (Sovereign debt)
151,392

 
156,473

 
2.3
%
 
1.8
%
 
78,336

 
35,630

 
6,897

 
22,558

 
12,357

 
695

FDIC guaranteed corporate
14,096

 
14,105

 
0.2
%
 
0.5
%
 

 
14,105

 

 

 

 

Non-U.S. government-backed corporate
365,781

 
371,186

 
5.5
%
 
0.8
%
 
308,802

 
55,654

 
6,730

 

 

 

Corporate
1,656,505

 
1,719,627

 
25.5
%
 
2.5
%
 
27,068

 
310,905

 
812,263

 
310,382

 
246,251

 
12,758

Mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Agency securities
572,323

 
580,823

 
8.6
%
 
0.9
%
 

 
580,823

 

 

 

 

  Non-agency securities - Prime
110,107

 
115,785

 
1.7
%
 
3.8
%
 
31,470

 
3,933

 
3,483

 
1,814

 
75,085

 

  Non-agency securities - Alt A
100,659

 
108,834

 
1.6
%
 
5.4
%
 
17,071

 
2,586

 
15,144

 
1,453

 
72,580

 

Total residential mortgage-backed
783,089

 
805,442

 
11.9
%
 
1.9
%
 
48,541

 
587,342

 
18,627

 
3,267

 
147,665

 

Commercial mortgage-backed
473,264

 
499,491

 
7.4
%
 
1.8
%
 
325,450

 
82,294

 
91,747

 

 

 

Total mortgage-backed
1,256,353

 
1,304,933

 
19.3
%
 
1.9
%
 
373,991

 
669,636

 
110,374

 
3,267

 
147,665

 

Asset-backed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit cards
4,270

 
4,618

 
0.1
%
 
1.8
%
 
4,618

 

 

 

 

 

Auto loans
2,635

 
2,722

 
%
 
1.1
%
 
2,722

 

 

 

 

 

Student loans
1,714

 
1,667

 
%
 
1.8
%
 
1,667

 

 

 

 

 

Other
4,353

 
4,623

 
0.1
%
 
2.4
%
 
4,623

 

 

 

 

 

Total asset-backed
12,972

 
13,630

 
0.2
%
 
1.9
%
 
13,630

 

 

 

 

 

Total securitized assets
1,269,325

 
1,318,563

 
19.5
%
 
1.9
%
 
387,621

 
669,636

 
110,374

 
3,267

 
147,665

 

Total fixed maturity investments
5,053,161

 
5,184,366

 
76.7
%
 
1.5
%
 
801,827

 
2,690,342

 
936,264

 
336,207

 
406,273

 
13,453

 
 
 
100.0
%
 
 
 
 
 
15.5
%
 
51.9
%
 
18.0
%
 
6.5
%
 
7.8
%
 
0.3
%
Equity investments trading
 
 
57,617

 
0.9
%
 
 
 

 

 

 

 

 
57,617

 
 
 
100.0
%
 
 
 
 
 
%
 
%
 
%
 
%
 
%
 
100.0
%
Other investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Private equity partnerships
 
 
359,880

 
5.3
%
 
 
 

 

 

 

 

 
359,880

Senior secured bank loan funds
 
 
279,839

 
4.1
%
 
 
 

 

 

 

 
252,809

 
27,030

Catastrophe bonds
 
 
106,319

 
1.6
%
 
 
 

 

 

 

 
106,319

 

Hedge funds
 
 
5,962

 
0.1
%
 
 
 

 

 

 

 

 
5,962

Miscellaneous other investments
 
 

 
%
 
 
 

 

 

 

 

 

Total other investments
 
 
752,000

 
11.1
%
 
 
 

 

 

 

 
359,128

 
392,872

 
 
 
100.0
%
 
 
 
 
 
%
 
%
 
%
 
%
 
47.8
%
 
52.2
%
Investments in other ventures
 
 
82,212

 
1.2
%
 
 
 

 

 

 

 

 
82,212

 
 
 
100.0
%
 
 
 
 
 
%
 
%
 
%
 
%
 
%
 
100.0
%
Total investment portfolio
 
 
$
6,755,551

 
100.0
%
 
 
 
$
1,448,450

 
$
2,718,519

 
$
939,212

 
$
337,806

 
$
765,410

 
$
546,154

 
 

 
100.0
%
 
 

 
 

 
21.5
%
 
40.2
%
 
13.9
%
 
5.0
%
 
11.3
%
 
8.1
%
(1)
The credit ratings included in this table are those assigned by Standard & Poor’s Corporation ("S&P").  When ratings provided by S&P were not available, ratings from other nationally recognized rating agencies were used. The Company has grouped short term investments with an A-1+ and A-1 short term issue credit rating as AAA, short term investments with A-2 short term issue credit rating as AA and short term investments with an A-3 short term issue credit rating as A.

                 
 
16



RenaissanceRe Holdings Ltd.
Investment Portfolio - Change in Portfolio Composition
 
 
 
 
 
 
 
September 30, 2012
 
December 31, 2011
 
Change
 
Fair
Value
 
 % of Total Managed Investment Portfolio
 
Fair
Value
 
 % of Total Managed Investment Portfolio
 
$
 
 %
Short term investments
$
679,356

 
10.1
%
 
$
905,477

 
14.6
%
 
$
(226,121
)
 
(4.5
)%
Fixed maturity investments
 
 
 
 
 
 
 
 
 
 
 
U.S. treasuries
1,178,345

 
17.4
%
 
885,152

 
14.3
%
 
293,193

 
3.1
 %
Agencies
 
 
 
 
 
 
 
 
 
 
 
Fannie Mae & Freddie Mac
396,997

 
5.9
%
 
143,562

 
2.4
%
 
253,435

 
3.5
 %
Other agencies
29,070

 
0.4
%
 
14,999

 
0.2
%
 
14,071

 
0.2
 %
Total agencies
426,067

 
6.3
%
 
158,561

 
2.6
%
 
267,506

 
3.7
 %
Non-U.S. government (Sovereign debt)
156,473

 
2.3
%
 
227,912

 
3.7
%
 
(71,439
)
 
(1.4
)%
FDIC guaranteed corporate
14,105

 
0.2
%
 
423,630

 
6.8
%
 
(409,525
)
 
(6.6
)%
Non-U.S. government-backed corporate
371,186

 
5.5
%
 
641,082

 
10.3
%
 
(269,896
)
 
(4.8
)%
Corporate
1,719,627

 
25.5
%
 
1,206,904

 
19.4
%
 
512,723

 
6.1
 %
Mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
Agency securities
580,823

 
8.6
%
 
441,749

 
7.1
%
 
139,074

 
1.5
 %
Non-agency securities - Prime
115,785

 
1.7
%
 
68,678

 
1.1
%
 
47,107

 
0.6
 %
Non-agency securities - Alt A
108,834

 
1.6
%
 
36,093

 
0.6
%
 
72,741

 
1.0
 %
Total residential mortgage-backed
805,442

 
11.9
%
 
546,520

 
8.8
%
 
258,922

 
3.1
 %
Commercial mortgage-backed
499,491

 
7.4
%
 
325,729

 
5.2
%
 
173,762

 
2.2
 %
Total mortgage-backed
1,304,933

 
19.3
%
 
872,249

 
14.0
%
 
432,684

 
5.3
 %
Asset-backed
 
 
 
 
 
 
 
 
 
 
 
Credit cards
4,618

 
0.1
%
 
8,955

 
0.2
%
 
(4,337
)
 
(0.1
)%
Auto loans
2,722

 
%
 

 
%
 
2,722

 
 %
Student loans
1,667

 
%
 
1,287

 
%
 
380

 
 %
Other
4,623

 
0.1
%
 
7,785

 
0.1
%
 
(3,162
)
 
 %
Total asset-backed
13,630

 
0.2
%
 
18,027

 
0.3
%
 
(4,397
)
 
(0.1
)%
Total securitized assets
1,318,563

 
19.5
%
 
890,276

 
14.3
%
 
428,287

 
5.2
 %
Total fixed maturity investments
5,184,366

 
76.7
%
 
4,433,517

 
71.4
%
 
750,849

 
5.3
 %
Equity investments trading
57,617

 
0.9
%
 
50,560

 
0.8
%
 
7,057

 
0.1
 %
Other investments
 
 
 
 
 
 
 
 
 
 
 
Private equity partnerships
359,880

 
5.3
%
 
367,909

 
5.9
%
 
(8,029
)
 
(0.6
)%
Senior secured bank loan funds
279,839

 
4.1
%
 
257,870

 
4.2
%
 
21,969

 
(0.1
)%
Catastrophe bonds
106,319

 
1.6
%
 
70,999

 
1.1
%
 
35,320

 
0.5
 %
Hedge funds
5,962

 
0.1
%
 
21,344

 
0.3
%
 
(15,382
)
 
(0.2
)%
Non-U.S. fixed income funds

 
%
 
28,862

 
0.5
%
 
(28,862
)
 
(0.5
)%
Miscellaneous other investments

 
%
 
2,000

 
%
 
(2,000
)
 
 %
Total other investments
752,000

 
11.1
%
 
748,984

 
12.1
%
 
3,016

 
(1.0
)%
Investments in other ventures
82,212

 
1.2
%
 
70,714

 
1.1
%
 
11,498

 
0.1
 %
Total managed investment portfolio
$
6,755,551

 
100.0
%
 
$
6,209,252

 
100.0
%
 
$
546,299

 
 

                 
 
17



RenaissanceRe Holdings Ltd.
Fixed Maturity Investments - Corporate Sector
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2012
Sector
 
Total
 
AAA
 
AA
 
A
 
BBB
 
Non-Investment Grade
 
Not Rated
Financials
 
$
724,674

 
$
14,553

 
$
176,041

 
$
422,579

 
$
64,406

 
$
36,444

 
$
10,651

Industrial, utilities and energy
 
350,452

 
7,007

 
32,652

 
145,045

 
98,950

 
66,574

 
224

Communications and technology
 
238,926

 
4,622

 
13,934

 
101,599

 
65,858

 
52,231

 
682

Consumer
 
179,153

 

 
21,881

 
67,486

 
42,810

 
46,011

 
965

Basic materials
 
74,499

 

 

 
27,045

 
27,043

 
20,175

 
236

Health care
 
134,216

 

 
61,674

 
40,235

 
9,268

 
23,039

 

Other
 
17,707

 
886

 
4,723

 
8,274

 
2,047

 
1,777

 

Total corporate fixed maturity investments, at fair value (1)
 
$
1,719,627

 
$
27,068

 
$
310,905

 
$
812,263

 
$
310,382

 
$
246,251

 
$
12,758

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed Maturity and Short Term Investments - Corporate Top 10 Issuers by Fair Value
 
 
 
 
 
 
 
 
 
September 30, 2012
 
 
 
 
Issuer
 
Total
 
Short term
investments
 
Fixed maturity
investments
 
 
 
 
 
 
 
 
JP Morgan Chase & Co.
 
$
68,408

 
$
1,554

 
$
66,854

 
 
 
 
 
 
 
 
Citigroup Inc.
 
58,937

 

 
58,937

 
 
 
 
 
 
 
 
Goldman Sachs Group Inc.
 
55,639

 

 
55,639

 
 
 
 
 
 
 
 
General Electric Company
 
51,007

 

 
51,007

 
 
 
 
 
 
 
 
Bank of America Corp.
 
48,567

 
165

 
48,402

 
 
 
 
 
 
 
 
HSBC Holdings PLC
 
40,850

 

 
40,850

 
 
 
 
 
 
 
 
Morgan Stanley
 
31,005

 

 
31,005

 
 
 
 
 
 
 
 
AT&T Inc.
 
25,294

 

 
25,294

 
 
 
 
 
 
 
 
Credit Suisse Group AG
 
24,182

 

 
24,182

 
 
 
 
 
 
 
 
BP PLC
 
23,855

 

 
23,855

 
 
 
 
 
 
 
 
Total (2)
 
$
427,744

 
$
1,719

 
$
426,025

 
 
 
 
 
 
 
 
(1)
Excludes FDIC guaranteed and non-U.S. government-backed corporate fixed maturity investments, at fair value.
(2)
Excludes FDIC guaranteed and non-U.S. government-backed corporate fixed maturity investments, repurchase agreements and commercial paper, at fair value.

                 
 
18



RenaissanceRe Holdings Ltd.
Reserves for Claims and Claim Expenses
 
 
 
 
 
 
 
 
 
Case Reserves
 
Additional Case Reserves
 
IBNR
 
Total
September 30, 2012
 
 
 
 
 
 
 
Catastrophe
$
703,573

 
$
229,511

 
$
168,185

 
$
1,101,269

Specialty
121,427

 
88,538

 
272,481

 
482,446

Total Reinsurance
825,000

 
318,049

 
440,666

 
1,583,715

Lloyd's
26,631

 
7,528

 
92,413

 
126,572

Insurance
19,556

 
8,478

 
44,359

 
72,393

Total
$
871,187

 
$
334,055

 
$
577,438

 
$
1,782,680

 
 
 
 
 
 
 
 
June 30, 2012
 
 
 
 
 
 
 
Catastrophe
$
698,335

 
$
306,158

 
$
160,478

 
$
1,164,971

Specialty
123,978

 
87,277

 
247,290

 
458,545

Total Reinsurance
822,313

 
393,435

 
407,768

 
1,623,516

Lloyd's
19,219

 
7,920

 
74,411

 
101,550

Insurance
21,605

 
8,336

 
46,240

 
76,181

Total
$
863,137

 
$
409,691

 
$
528,419

 
$
1,801,247

 
 
 
 
 
 
 
 
March 31, 2012
 
 
 
 
 
 
 
Catastrophe
$
633,228

 
$
243,651

 
$
350,708

 
$
1,227,587

Specialty
135,492

 
53,045

 
270,225

 
458,762

Total Reinsurance
768,720

 
296,696

 
620,933

 
1,686,349

Lloyd's
18,421

 
7,579

 
67,101

 
93,101

Insurance
20,810

 
5,338

 
52,605

 
78,753

Total
$
807,951

 
$
309,613

 
$
740,639

 
$
1,858,203

 
 
 
 
 
 
 
 
December 31, 2011
 
 
 
 
 
 
 
Catastrophe
$
681,771

 
$
271,990

 
$
388,147

 
$
1,341,908

Specialty
120,189

 
49,840

 
301,589

 
471,618

Total Reinsurance
801,960

 
321,830

 
689,736

 
1,813,526

Lloyd's
17,909

 
14,459

 
55,127

 
87,495

Insurance
32,944

 
3,515

 
54,874

 
91,333

Total
$
852,813

 
$
339,804

 
$
799,737

 
$
1,992,354

 
 
 
 
 
 
 
 
September 30, 2011
 
 
 
 
 
 
 
Catastrophe
$
497,889

 
$
524,700

 
$
539,723

 
$
1,562,312

Specialty
113,022

 
52,285

 
333,947

 
499,254

Total Reinsurance
610,911

 
576,985

 
873,670

 
2,061,566

Lloyd's
18,114

 
10,558

 
43,676

 
72,348

Insurance
39,058

 
5,020

 
48,013

 
92,091

Total
$
668,083

 
$
592,563

 
$
965,359

 
$
2,226,005


                 
 
19



RenaissanceRe Holdings Ltd.
Paid to Incurred Analysis
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended September 30, 2012
 
Three months ended September 30, 2011
 
Gross
 
Recoveries
 
Net
 
Gross
 
Recoveries
 
Net
Reserve for losses and loss expenses, beginning of period
$
1,801,247

 
$
198,777

 
$
1,602,470

 
$
2,170,728

 
$
333,245

 
$
1,837,483

Incurred losses and loss expenses
 
 
 
 
 
 
 
 
 
 
 
Current year
99,427

 
5,888

 
93,539

 
194,781

 
108,351

 
86,430

Prior years
(16,238
)
 
4,086

 
(20,324
)
 
(15,116
)
 
(6,516
)
 
(8,600
)
Total incurred losses and loss expenses
83,189

 
9,974

 
73,215

 
179,665

 
101,835

 
77,830

Paid losses and loss expenses
 
 
 
 
 
 
 
 
 
 
 
Current year
20,395

 
33

 
20,362

 
56,724

 

 
56,724

Prior years
81,361

 
(772
)
 
82,133

 
67,664

 
527

 
67,137

Total paid losses and loss expenses
101,756

 
(739
)
 
102,495

 
124,388

 
527

 
123,861

Reserve for losses and loss expenses, end of period
$
1,782,680

 
$
209,490

 
$
1,573,190

 
$
2,226,005

 
$
434,553

 
$
1,791,452

 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2012
 
Nine months ended September 30, 2011
 
Gross
 
Recoveries
 
Net
 
Gross
 
Recoveries
 
Net
Reserve for losses and loss expenses, beginning of period
$
1,992,354

 
$
404,029

 
$
1,588,325

 
$
1,257,843

 
$
101,711

 
$
1,156,132

Incurred losses and loss expenses
 
 
 
 
 
 
 
 
 
 
 
Current year
282,824

 
22,864

 
259,960

 
1,319,400

 
364,341

 
955,059

Prior years
(114,252
)
 
7,390

 
(121,642
)
 
(111,743
)
 
(14,312
)
 
(97,431
)
Total incurred losses and loss expenses
168,572

 
30,254

 
138,318

 
1,207,657

 
350,029

 
857,628

Paid losses and loss expenses
 
 
 
 
 
 
 
 
 
 
 
Current year
39,332

 
33

 
39,299

 
108,302

 

 
108,302

Prior years
338,914

 
224,760

 
114,154

 
131,193

 
17,187

 
114,006

Total paid losses and loss expenses
378,246

 
224,793

 
153,453

 
239,495

 
17,187

 
222,308

Reserve for losses and loss expenses, end of period
$
1,782,680

 
$
209,490

 
$
1,573,190

 
$
2,226,005

 
$
434,553

 
$
1,791,452




                 
 
20



RenaissanceRe Holdings Ltd.
Earnings (Loss) per Share
 
 
 
 
 
 
 
 
 
 
 
Three months ended
(common shares in thousands)
September 30,
2012
 
June 30,
2012
 
March 31,
2012
 
December 31,
2011
 
September 30,
2011
Numerator:
 
 
 
 
 
 
 
 
 
Net income available to RenaissanceRe common shareholders
$
180,660

 
$
142,270

 
$
201,429

 
$
81,771

 
$
49,263

Amount allocated to participating common shareholders (1)
(2,787
)
 
(2,236
)
 
(3,404
)
 
(1,433
)
 
(911
)
 
$
177,873

 
$
140,034

 
$
198,025

 
$
80,338

 
$
48,352

Denominator:
 
 
 
 
 
 
 
 
 
Denominator for basic income per RenaissanceRe common share -
 
 
 
 
 
 
 
 
 
Weighted average common shares
48,394

 
50,278

 
50,377

 
50,501

 
50,501

Per common share equivalents of employee stock options and restricted shares
725

 
734

 
604

 
359

 
472

Denominator for diluted income per RenaissanceRe common share -
 
 
 
 
 
 
 
 
 
Adjusted weighted average common shares and assumed conversions
49,119

 
51,012

 
50,981

 
50,860

 
50,973

 
 
 
 
 
 
 
 
 
 
Basic income per RenaissanceRe common share
$
3.67

 
$
2.78

 
$
3.93

 
$
1.59

 
$
0.96

Diluted income per RenaissanceRe common share
$
3.62

 
$
2.75

 
$
3.88

 
$
1.58

 
$
0.95

 
 
 
 
 
 
 
 
 
 
 
Nine months ended
 
 
 
 
(common shares in thousands)
September 30,
2012
 
September 30,
2011
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
 
 
Net income (loss) available (attributable) to RenaissanceRe common shareholders
$
524,359

 
$
(174,006
)
 
 
 
 
 
 
Amount allocated to participating common shareholders (1)
(8,395
)
 
(761
)
 
 
 
 
 
 
 
$
515,964

 
$
(174,767
)
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
 
 
Denominator for basic income (loss) per RenaissanceRe common share -
 
 
 
 
 
 
 
 
 
Weighted average common shares
49,683

 
50,830

 
 
 
 
 
 
Per common share equivalents of employee stock options and restricted shares
687

 

 
 
 
 
 
 
Denominator for diluted income (loss) per RenaissanceRe common share -
 
 
 
 
 
 
 
 
 
Adjusted weighted average common shares and assumed conversions (2)
50,370

 
50,830

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic income (loss) per RenaissanceRe common share
$
10.38

 
$
(3.44
)
 
 
 
 
 
 
Diluted income (loss) per RenaissanceRe common share (2)
$
10.24

 
$
(3.44
)
 
 
 
 
 
 
(1)
Represents earnings attributable to holders of unvested restricted shares issued under the Company's 2001 Stock Incentive Plan and Non-Employee Director Stock Incentive Plan.
(2)
Earnings per share calculations use average common shares outstanding - basic, when in a net loss position, as required by FASB ASC Topic Earnings Per Share.

                 
 
21



RenaissanceRe Holdings Ltd.
Equity in Earnings (Losses) of Other Ventures
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
September 30,
2012
 
June 30,
2012
 
March 31,
2012
 
December 31,
2011
 
September 30,
2011
Top Layer Re
$
4,970

 
$
5,113

 
$
4,737

 
$
(22,617
)
 
$
3,688

Tower Hill Companies
1,930

 
1,744

 
1,117

 
(348
)
 
2,504

Other
(2,590
)
 
(11
)
 
(384
)
 
263

 
(1,398
)
Total equity in earnings (losses) of other ventures
$
4,310

 
$
6,846

 
$
5,470

 
$
(22,702
)
 
$
4,794

 
 
 
 
 
 
 
 
 
 
 
Nine months ended
 
 
 
 
 
 
 
September 30,
2012
 
September 30,
2011
 
 
 
 
 
 
Top Layer Re
$
14,820

 
$
(14,854
)
 
 
 
 
 
 
Tower Hill Companies
4,791

 
3,271

 
 
 
 
 
 
Other
(2,985
)
 
(2,248
)
 
 
 
 
 
 
Total equity in earnings (losses) of other ventures
$
16,626

 
$
(13,831
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other (Loss) Income
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
September 30,
2012
 
June 30,
2012
 
March 31,
2012
 
December 31,
2011
 
September 30,
2011
Weather and energy risk management operations
$
172

 
$
5,875

 
$
(35,463
)
 
$
(41,314
)
 
$
(3,232
)
Gain on sale of NBIC

 

 

 

 
4,836

Assumed and ceded reinsurance contracts accounted for at fair value or as deposits
(3,696
)
 
4,082

 
(1,779
)
 
(2,381
)
 
(2,704
)
Other items
2,643

 
1,332

 
(1,852
)
 
47

 
(915
)
Total other (loss) income
$
(881
)
 
$
11,289

 
$
(39,094
)
 
$
(43,648
)
 
$
(2,015
)
 
 
 
 
 
 
 
 
 
 
 
Nine months ended
 
 
 
 
 
 
 
September 30,
2012
 
September 30,
2011
 
 
 
 
 
 
Gain on sale of NBIC
$

 
$
4,836

 
 
 
 
 
 
Mark-to-market on Platinum warrant

 
2,975

 
 
 
 
 
 
Assumed and ceded reinsurance contracts accounted for at fair value or as deposits
(1,393
)
 
39,795

 
 
 
 
 
 
Weather and energy risk management operations
(29,416
)
 
(3,716
)
 
 
 
 
 
 
Other items
2,123

 
(927
)
 
 
 
 
 
 
Total other (loss) income
$
(28,686
)
 
$
42,963

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

                 
 
22



RenaissanceRe Holdings Ltd.
Ratings
 
 
 
 
 
 
 
 
 
A.M. Best
 
S&P (4)
 
Moody's
 
Fitch
REINSURANCE SEGMENT (1)
 
 
 
 
 
 
 
Renaissance Reinsurance
A+
 
AA-
 
A1
 
A+
DaVinci
A
 
A+
 
A3
 
Glencoe
A
 
A
 
 
Top Layer Re
A+
 
AA
 
 
Renaissance Reinsurance of Europe
A+
 
AA-
 
 
 
 
 
 
 
 
 
 
LLOYD'S SEGMENT
 
 
 
 
 
 
 
RenaissanceRe Syndicate 1458
 
 
 
Lloyd's Overall Market Rating (2)
A
 
A+
 
 
A+
 
 
 
 
 
 
 
 
RENAISSANCERE (3)
 
Excellent
 
 
(1) The A.M. Best, S&P, Moody's and Fitch ratings for the companies in the Reinsurance and Insurance segments reflect the insurer's financial strength rating.
(2) The A.M. Best, S&P and Fitch ratings for the Lloyd's Overall Market Rating represent its financial strength rating.
(3) The S&P rating for RenaissanceRe represents rating on its Enterprise Risk Management practices.
(4) The S&P ratings for the companies in the Reinsurance and Insurance segments reflect, in addition to the insurer's financial strength rating, the insurer's issuer credit rating.

                 
 
23



RenaissanceRe Holdings Ltd.
Comments on Regulation G
In addition to the GAAP financial measures set forth in this Financial Supplement, the Company has included certain non-GAAP financial measures in this Financial Supplement within the meaning of Regulation G. The Company has consistently provided these financial measurements in previous investor communications and the Company's management believes that these measurements are important to investors and other interested persons, and that investors and such other persons benefit from having a consistent basis for comparison between quarters and for the comparison with other companies within the industry. These measures may not, however, be comparable to similarly titled measures used by companies outside of the insurance industry. Investors are cautioned not to place undue reliance on these non-GAAP measures in assessing the Company's overall financial performance.
The Company uses “operating income (loss) available (attributable) to RenaissanceRe common shareholders” 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) available (attributable) to RenaissanceRe common shareholders” as used herein differs from “net income (loss) available (attributable) to RenaissanceRe common shareholders,” which the Company believes is the most directly comparable GAAP measure, by the exclusion of net realized and unrealized gains and losses on investments from continuing and discontinued operations, net other-than-temporary impairments from continuing and discontinued operations. The Company's management believes that “operating income (loss) available (attributable) to RenaissanceRe common shareholders” 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 fixed maturity investment portfolio and equity investments trading. The Company also uses “operating income (loss) available (attributable) to RenaissanceRe common shareholders” to calculate “operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted” and “operating return on average common equity - annualized”. The following is a reconciliation of: 1) net income (loss) available (attributable) to RenaissanceRe common shareholders to operating income (loss) available (attributable) to RenaissanceRe common shareholders; 2) net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted to operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted; and 3) return on average common equity - annualized to operating return on average common equity - annualized:
 
Three months ended
 
Nine months ended
 
September 30,
2012
 
June 30,
2012
 
March 31,
2012
 
December 31,
2011
 
September 30,
2011
 
September 30,
2012
 
September 30,
2011
Net income (loss) available (attributable) to RenaissanceRe common shareholders
$
180,660

 
$
142,270

 
$
201,429

 
$
81,771

 
$
49,263

 
$
524,359

 
$
(174,006
)
Adjustment for net realized and unrealized gains on investments of continuing operations
(76,258
)
 
(31,003
)
 
(46,113
)
 
(23,920
)
 
(16,983
)
 
(153,374
)
 
(46,748
)
Adjustment for net other-than-temporary impairments of continuing operations

 
209

 
134

 
103

 
449

 
343

 
449

Adjustment for net realized and unrealized gains on fixed maturity investments and net other-than-temporary impairments of discontinued operations

 

 

 

 

 

 
(42
)
Operating income (loss) available (attributable) to RenaissanceRe common shareholders
$
104,402

 
$
111,476

 
$
155,450

 
$
57,954

 
$
32,729

 
$
371,328

 
$
(220,347
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted
$
3.62

 
$
2.75

 
$
3.88

 
$
1.58

 
$
0.95

 
$
10.24

 
$
(3.44
)
Adjustment for net realized and unrealized gains on investments of continuing operations
(1.55
)
 
(0.61
)
 
(0.90
)
 
(0.47
)
 
(0.34
)
 
(3.04
)
 
(0.92
)
Adjustment for net other-than-temporary impairments of continuing operations

 

 

 

 
0.01

 
0.01

 
0.01

Operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted
$
2.07

 
$
2.14

 
$
2.98

 
$
1.11

 
$
0.62

 
$
7.21

 
$
(4.35
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on average common equity - annualized
22.0
 %
 
17.5
 %
 
25.6
 %
 
10.8
 %
 
6.6
 %
 
21.7
 %
 
(7.5
)%
Adjustment for net realized and unrealized gains on investments of continuing operations
(9.3
)%
 
(3.8
)%
 
(5.9
)%
 
(3.1
)%
 
(2.3
)%
 
(6.3
)%
 
(2.1
)%
Adjustment for net other-than-temporary impairments of continuing operations
 %
 
 %
 
 %
 
 %
 
0.1
 %
 
 %
 
 %
Operating return on average common equity - annualized
12.7
 %
 
13.7
 %
 
19.7
 %
 
7.7
 %
 
4.4
 %
 
15.4
 %
 
(9.6
)%

                 
 
24



RenaissanceRe Holdings Ltd.
Comments on Regulation G
The Company has also included in this Financial Supplement “managed catastrophe premiums”. “Managed catastrophe premiums” is defined as gross catastrophe premiums written by Renaissance Reinsurance and its related joint ventures. “Managed catastrophe premiums” differs from total catastrophe unit gross premiums written, 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 inclusion of catastrophe premiums written on behalf of the Company's Lloyd's segment. The Company's management believes “managed catastrophe premiums” is useful to investors and other interested parties because it provides a measure of total catastrophe premiums, as applicable, assumed by the Company through its consolidated subsidiaries and related joint ventures.
The Company has also included in this Financial Supplement “tangible book value per common share” and “tangible book value per common share plus accumulated dividends”. “Tangible book value per common share” is defined as book value per common share excluding goodwill and intangible assets per share; “tangible book value per common share plus accumulated dividends” is defined as book value per common share excluding goodwill and intangible assets per share, plus accumulated dividends. “Tangible book value per common share” differs from book value per common share, which the Company believes is the most directly comparable GAAP measure, due to the exclusion of goodwill and intangible assets per share. The Company's management believes “tangible book value per common share” and “tangible book value per common share plus accumulated dividends” are useful to investors because they provide a more accurate measure of the realizable value of shareholder returns, excluding the impact of goodwill and intangible assets. The following is a reconciliation of book value per common share to tangible book value per common share and tangible book value per common share plus accumulated dividends:
 
At
 
September 30,
2012
 
June 30,
2012
 
March 31,
2012
 
December 31,
2011
 
September 30,
2011
Book value per common share
$
68.20

 
$
65.07

 
$
62.68

 
$
59.27

 
$
57.89

Adjustment for goodwill and other intangibles (1)
(0.85
)
 
(0.83
)
 
(0.84
)
 
(0.82
)
 
(0.94
)
Tangible book value per common share
67.35

 
64.24

 
61.84

 
58.45

 
56.95

Adjustment for accumulated dividends
11.73

 
11.46

 
11.19

 
10.92

 
10.66

Tangible book value per common share plus accumulated dividends
$
79.08

 
$
75.70

 
$
73.03

 
$
69.37

 
$
67.61

 
 
 
 
 
 
 
 
 
 
Quarter change in book value per common share
4.8
%
 
3.8
%
 
5.8
%
 
2.4
%
 
1.0
%
Quarter change in tangible book value per common share plus change in accumulated dividends
5.3
%
 
4.3
%
 
6.3
%
 
3.1
%
 
1.5
%
(1)
At September 30, 2012, June 30, 2012, March 31, 2012, December 31, 2011 and September 30, 2011, goodwill and other intangibles included $32.2 million, $33.3 million, $34.5 million, $33.5 million and $34.2 million, respectively, of goodwill and other intangibles included in investments in other ventures, under equity method.

                 
 
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