RenaissanceRe Reports Net Income of $170.8 Million for the Fourth Quarter of 2014 or $4.42 Per Diluted Common Share; Quarterly Operating Income of $140.3 Million or $3.62 Per Diluted Common Share

Annual Net Income of $510.3 Million for 2014 or $12.60 Per Diluted Common Share; Annual Operating Income of $468.9 Million or $11.56 Per Diluted Common Share

Pembroke, Bermuda, February 3, 2015 -- RenaissanceRe Holdings Ltd. (NYSE: RNR) today reported net income available to RenaissanceRe common shareholders of $170.8 million, or $4.42 per diluted common share, in the fourth quarter of 2014, compared to $268.7 million, or $6.05, respectively, in the fourth quarter of 2013. Operating income available to RenaissanceRe common shareholders was $140.3 million, or $3.62 per diluted common share, for the fourth quarter of 2014, compared to $206.8 million, or $4.64, respectively, in the fourth quarter of 2013. The Company reported an annualized return on average common equity of 20.1% and an annualized operating return on average common equity of 16.5% in the fourth quarter of 2014, compared to 31.5% and 24.3%, respectively, in the fourth quarter of 2013. Book value per common share increased $4.37, or 5.1%, in the fourth quarter of 2014 to $90.15, compared to a 7.7% increase in the fourth quarter of 2013. Tangible book value per common share plus accumulated dividends increased 5.5% in the fourth quarter of 2014, compared to an 8.1% increase in the fourth quarter of 2013.

For 2014, the Company reported net income available to RenaissanceRe common shareholders of $510.3 million, or $12.60 per diluted common share, compared to $665.7 million, or $14.87 per diluted common share in 2013. Operating income available to RenaissanceRe common shareholders was $468.9 million, or $11.56 per diluted common share in 2014, compared to $630.6 million, or $14.08 per diluted common share in 2013. The Company reported a return on average common equity of 14.9% and an operating return on average common equity of 13.7% in 2014, compared to 20.5% and 19.4%, respectively, in 2013. Book value per common share increased $9.86, or 12.3%, in 2014 to $90.15, compared to a 17.8% increase in 2013. Tangible book value per common share plus accumulated dividends increased 13.9% in 2014, compared to a 19.7% increase in 2013.

Kevin J. O'Donnell, CEO, commented:  "I am pleased with RenaissanceRe’s performance, both for the fourth quarter and for the full year.  We achieved solid growth in tangible book value per share plus accumulated dividends of 5.5% for the quarter and 13.9% for the year, while demonstrating discipline and objectivity about the risk we assumed and the pricing required.  Our underwriting team executed extremely well during the most recent renewal period, as pressure on pricing from abundant capacity persisted." 

FOURTH QUARTER 2014 HIGHLIGHTS

The total investment result was primarily driven by lower returns in the Company’s portfolios of private equity and public equity investments, each principally driven by weaker returns in the public equity markets during the fourth quarter of 2014, compared to the fourth quarter of 2013.

Gross premiums written in the Catastrophe Reinsurance segment were $9.9 million in the fourth quarter of 2014, an increase of $27.8 million compared to the fourth quarter of 2013. Gross premiums written in the fourth quarter of 2013 were impacted by $33.9 million of net negative reinstatement premiums written due to net reductions in net claims and claim expenses and related reinstatement premiums with respect to a number of large loss events, compared to $3.9 million in the fourth quarter of 2014. Excluding the impact of the net negative reinstatement premiums written in the fourth quarters of 2014 and 2013, gross premiums written in the Catastrophe Reinsurance segment were $13.8 million in the fourth quarter of 2014, a $2.2 million decrease, compared to $16.0 million the fourth quarter of 2013.

Managed catastrophe premiums decreased $1.1 million, or 5.5%, to $19.1 million in the fourth quarter of 2014, compared to $20.2 million in the fourth quarter of 2013, net of $4.0 million and $34.0 million of net negative reinstatement premiums written in the fourth quarter of 2014 and 2013, respectively.

The Catastrophe Reinsurance segment generated underwriting income of $133.0 million and a combined ratio of negative 2.0% in the fourth quarter of 2014, compared to $171.6 million and negative 12.8% in the fourth quarter of 2013, respectively. The $38.7 million decrease in underwriting income in the fourth quarter of 2014, compared to the fourth quarter of 2013, was driven by a $21.8 million decrease in net premiums earned, primarily driven by lower gross premiums written during the preceding twelve months as a result of the continued softening of market conditions and the Company’s underwriting discipline given prevailing terms and conditions, a $12.2 million increase in current accident year net claims and claim expenses and an $11.6 million decrease in favorable development on prior accident years net claims and claim expenses.

The Catastrophe Reinsurance segment experienced $47.4 million of favorable development on prior accident years net claims and claim expenses in the fourth quarter of 2014, compared to $59.0 million in the fourth quarter of 2013. The favorable development on prior accident years net claims and claim expenses in the fourth quarter of 2014 was principally driven by net reductions to estimated ultimate losses from Storm Sandy, a number of U.S. wind and thunderstorm events, the 2011 Thailand Floods, Hurricane Irene, the 2013 Eastern European Floods and the Tohoku Earthquake, which experienced favorable development of $20.1 million, $11.4 million, $9.3 million, $4.5 million, $4.5 million and $3.5 million, respectively, partially offset by adverse development of $17.0 million on the 2010 New Zealand Earthquake.

Gross premiums written in the Specialty Reinsurance segment were $71.9 million in the fourth quarter of 2014, an increase of $13.4 million, or 23.0%, compared to the fourth quarter of 2013, driven primarily by increases in certain casualty related lines of business.

The Specialty Reinsurance segment generated underwriting income of $26.9 million and a combined ratio of 59.8% in the fourth quarter of 2014, compared to $23.0 million and 58.3% in the fourth quarter of 2013, respectively. The $3.8 million increase in underwriting income in the fourth quarter of 2014, compared to the fourth quarter of 2013, was driven by an $11.6 million increase in net premiums earned as a result of the increase in gross premiums written, noted above, and a $9.2 million increase in favorable development on prior accident year net claims and claim expenses, partially offset by a $6.2 million increase in current accident year net claims and claim expenses and a $10.7 million increase in underwriting expenses. The increase in current accident year net claims and claim expenses was principally due to a higher level of attritional losses primarily as a result of the increase in net premiums earned. The Specialty Reinsurance segment experienced $20.0 million of favorable development on prior years reserves in the fourth quarter of 2014, compared to $10.9 million in the fourth quarter of 2013, due to a reduction in estimated ultimate losses with respect to potential exposure to LIBOR related claims from prior accident years of $10.5 million, with the remainder driven by better than expected claims emergence.

The underwriting expense ratio in the Specialty Reinsurance segment increased 10.2 percentage points to 44.0% in the fourth quarter of 2014, compared to 33.8% in the fourth quarter of 2013, primarily due to the relative increase in the percentage of quota share reinsurance premiums, compared to excess of loss reinsurance premiums, as a percentage of gross premiums written within the Specialty Reinsurance segment, as quota share reinsurance typically carries a higher acquisition expense ratio compared to excess of loss reinsurance premiums, as well as an increase in operational expenses due to the continued expansion of the Company’s Specialty Reinsurance segment.

Gross premiums written in the Lloyd’s segment were $50.6 million in the fourth quarter of 2014, an increase of $7.1 million, or 16.4%, compared to the fourth quarter of 2013, primarily due to Syndicate 1458 continuing to grow organically in the Lloyd’s marketplace, principally in its property and casualty lines of business, notwithstanding challenging market conditions.

The Lloyd’s segment generated underwriting income of $8.3 million and a combined ratio of 85.9% in the fourth quarter of 2014, compared to an underwriting loss of $3.1 million and a combined ratio of 106.3% in the fourth quarter of 2013. Impacting underwriting income in the fourth quarter of 2014 was a $9.7 million increase in net premiums earned and a $4.0 million decrease in net claims and claim expenses, as discussed below, partially offset by a $3.1 million increase in acquisition expenses. The increases in net premiums earned and acquisition expenses were primarily the result of the increase in gross premiums written noted above. Also impacting acquisition expenses was the increased proportion of quota share and delegated authority business written, which generally carry higher acquisition expenses, compared to non-proportional business.

The $4.0 million decrease in net claims and claim expenses was principally due to favorable development of prior accident years net claims and claim expenses of $12.1 million during the fourth quarter of 2014, compared to $5.2 million of favorable development on prior accident years net claims and claim expenses in the fourth quarter of 2013, partially offset by a $2.8 million increase in attritional net claims and claim expenses as a result of the increase in net premiums earned, noted above.

Gross premiums written in the Catastrophe Reinsurance segment decreased by $186.4 million, or 16.6%, to $934.0 million in 2014, compared to $1,120.4 million in 2013, primarily driven by the continued softening of market conditions, including reduced risk-adjusted pricing for the January and June renewals, the Company’s underwriting discipline given prevailing terms and conditions, and reduced participation on certain quota share deals. Excluding the impact of $3.9 million and $24.1 million of net negative reinstatement premiums written in 2014 and 2013, respectively, both due to net reductions in net claims and claim expenses and related reinstatement premiums with respect to a number of large loss events, gross premiums written in the Catastrophe Reinsurance segment decreased $206.6 million, or 18.1%.

For 2014, managed catastrophe premiums, net of negative reinstatement premiums written of $4.0 million and $24.2 million in 2014 and 2013, respectively, totaled $1,028.6 million, a decrease of $217.6 million, or 17.5%, compared to 2013.

The Catastrophe Reinsurance segment generated underwriting income of $450.1 million and a combined ratio of 23.8% in 2014, compared to $558.5 million and 22.8%, respectively, in 2013. The $108.4 million decrease in underwriting income in the Catastrophe Reinsurance segment in 2014, compared to 2013, was primarily driven by a $132.9 million decrease in net premiums earned as a result of the decrease in gross premiums written, as discussed above, combined with an increase of $25.1 million in ceded premiums written. The $25.1 million increase in ceded premiums written in the Catastrophe Reinsurance segment was primarily the result of additional purchases of retrocessional reinsurance, including coverage specific to U.S. windstorms in the State of Florida, given the softening retrocessional marketplace in 2014, compared to 2013.

The Company’s Catastrophe Reinsurance segment experienced a relatively low level of insured catastrophe loss activity in 2014, resulting in current accident year net claims and claim expenses of $67.3 million, compared to $109.9 million in 2013, primarily attributable to a number of relatively small U.S. wind and thunderstorm events.

During 2014, the Company experienced $65.5 million of favorable development on prior year reserves within its Catastrophe Reinsurance segment, compared to $102.0 million in 2013. The favorable development in 2014 was principally comprised of favorable development of $20.1 million, $13.9 million, $9.3 million, $7.6 million, $6.7 million and $6.6 million related to Storm Sandy, the 2011 April and May U.S. Tornadoes, the 2011 Thailand Floods, the 2013 Eastern European Floods, a 2013 U.S. wind and thunderstorm event and the 2008 Hurricanes (Gustav and Ike), offset by adverse development of $24.7 million related to the 2010 New Zealand Earthquake, each principally the result of changes in estimated ultimate losses for each respective event, with the remainder due to net favorable development on a number of other events.

Gross premiums written in the Specialty Reinsurance segment were $346.6 million in 2014, an increase of $87.1 million, or 33.6%, compared to 2013, driven primarily by increases in certain financial liability and casualty related lines of business. The Company’s specialty reinsurance premiums are prone to significant volatility as this business can be influenced by a small number of relatively large transactions.

The Company’s Specialty Reinsurance segment generated underwriting income of $60.7 million and a combined ratio of 76.0% in 2014, compared to $73.8 million and 65.6%, respectively, in 2013. The $13.0 million decrease in the Company’s Specialty Reinsurance segment’s underwriting income during 2014, compared to 2013, was principally driven by a $43.1 million increase in current accident year net claims and claim expenses and a $31.0 million increase in underwriting expenses, partially offset by a $39.2 million increase in net premiums earned due to the increase in gross premiums written, as noted above. The $43.1 million increase in current accident year net claims and claim expenses was principally driven by attritional losses arising from the increase in net premiums earned during 2014, compared to 2013. The $31.0 million increase in underwriting expenses was primarily driven by the increase in net premiums earned, combined with the relative increase in the percentage of quota share reinsurance, compared to excess of loss reinsurance, as a percentage of gross premiums written within the Specialty Reinsurance segment, as quota share reinsurance typically carries a higher acquisition expense ratio, compared to excess of loss reinsurance premiums. In addition, operational expenses in the Company’s Specialty Reinsurance segment have increased to support the growth in this segment.

The favorable development of $55.9 million in 2014, compared to $34.1 million in 2013, was primarily driven by reported claims coming in lower than expected on prior accident years events, as a result of the application of the Company’s formulaic actuarial reserving methodology, and a $10.5 million reduction in estimated ultimate losses with respect to potential exposure to LIBOR related claims from prior accident years.

Gross premiums written in the Company’s Lloyd’s segment increased $43.1 million, or 19.0%, to $269.7 million in 2014, compared to $226.5 million in 2013, primarily due to Syndicate 1458 continuing to grow organically in the Lloyd’s marketplace, principally in its property and casualty lines of business, notwithstanding challenging market conditions.

The Company’s Lloyd’s segment generated underwriting income of $5.8 million and a combined ratio of 97.3% in 2014, compared to an underwriting loss of $5.0 million and a combined ratio of 102.9% in 2013. Impacting the underwriting result in the Lloyd’s segment was a $41.6 million increase in net premiums earned principally driven by the increase in gross premiums written, noted above, partially offset by a $26.1 million increase in current accident year net claims and claim expenses, and a $12.7 million increase in underwriting expenses, each as discussed below.

The Company’s Lloyd’s segment experienced current accident year net claims and claim expenses of $130.1 million and a current accident year net claims and claim expense ratio of 59.8% in 2014, compared to $103.9 million and 59.1% in 2013, respectively, with the $26.1 million increase in current accident year net claims and claim expenses principally due to attritional loss activity driven by the increase in net premiums earned noted above.

The Company’s Lloyd’s segment incurred underwriting expenses of $98.0 million and an underwriting expense ratio of 45.0% in 2014, compared to $85.4 million and 48.5% in 2013, respectively, with the $12.7 million increase in underwriting expenses primarily driven by increased acquisition expenses as a result of the increased proportion of quota share and delegated authority business written, which generally carry higher acquisition expenses, compared to non-proportional business. Operating expenses of $51.1 million in 2014 were relatively flat compared to $50.5 million in 2013.

The favorable development of prior accident years net claims and claim expenses within the Company’s Lloyd’s segment was $16.2 million and $8.3 million during 2014 and 2013, respectively. The favorable development on prior accident years net claims and claim expenses during 2014 and 2013 within the Company’s Lloyd’s segment was principally due to reported claims activity coming in lower than expected on prior accident years events and 2014 was also impacted by a $4.1 million reduction in the estimated ultimate loss related to Storm Sandy.

This Press Release includes certain non-GAAP financial measures including “operating income available to RenaissanceRe common shareholders”, “operating income available to RenaissanceRe common shareholders per common share - diluted”, “operating return on average common equity - annualized”, “managed catastrophe premiums”, “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.

Please refer to the “Investor Information - Financial Reports - Financial Supplements” section of the Company’s website at www.renre.com for a copy of the Financial Supplement which includes additional information on the Company’s financial performance.

RenaissanceRe Holdings Ltd. will host a conference call on Wednesday, February 4, 2015 at 9:00 am (ET) to discuss this release. Live broadcast of the conference call will be available through the “Investor Information - Company Webcasts” section of RenaissanceRe’s website at www.renre.com.

This communication relates in part to a proposed merger between RenaissanceRe and Platinum that is the subject of a registration statement on Form S-4 filed with the U.S. Securities and Exchange Commission (the “SEC”) on December 19, 2014 and declared effective on January 15, 2015, and the definitive proxy statement/prospectus filed with the SEC on January 30, 2015, which provide details of the proposed merger and the attendant benefits and risks. This communication is not a substitute for the definitive proxy statement/prospectus or any other document that RenaissanceRe or Platinum may file with the SEC or that Platinum may send to its shareholders in connection with the proposed merger.  Investors and Platinum security holders are urged to read the registration statement on Form S-4 and the definitive proxy statement/prospectus, and all other relevant documents filed with the SEC or sent to Platinum shareholders as they become available because they will contain important information about the proposed merger.  All documents, when filed, will be available free of charge at the SEC’s website (www.sec.gov). You may also obtain documents filed by RenaissanceRe with the SEC by contacting RenaissanceRe’s Legal Department at RenaissanceRe Holdings Ltd., Renaissance House, 12 Crow Lane, Pembroke HM 19 Bermuda, or via e-mail at investorrelations@renre.com; and you may obtain copies of documents filed by Platinum with the SEC by contacting Platinum’s Legal Department at Platinum Underwriters Holdings, Ltd., Waterloo House, 100 Pitts Bay Road, Pembroke, Bermuda HM08, or visiting Platinum’s website at www.platinumre.com. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.

(1) Included in gross premiums written in the Other category is the elimination of inter-segment gross premiums written of $0.3 million for the three months ended December 31, 2014.