Company Website:
http://www.renre.com/
PEMBROKE, Bermuda -- (Business Wire)
RenaissanceRe Holdings Ltd. (NYSE: RNR) today reported net income
available to RenaissanceRe common shareholders of $201.4 million or
$3.88 per diluted common share in the first quarter of 2012, compared to
a net loss attributable to RenaissanceRe common shareholders of $248.0
million or $4.69 per diluted common share in the first quarter of 2011.
Operating income available to RenaissanceRe common shareholders was
$155.5 million or $2.98 per diluted common share for the first quarter
of 2012, compared to an operating loss attributable to RenaissanceRe
common shareholders of $242.9 million or $4.59 per diluted common share
in the first quarter of 2011. The Company reported an annualized return
on average common equity of 25.6% and an annualized operating return on
average common equity of 19.7% in the first quarter of 2012, compared to
negative 31.3% and negative 30.7%, respectively, in the first quarter of
2011. Book value per common share increased $3.41, or 5.8%, in the first
quarter of 2012 to $62.68, compared to an 8.9% decrease in the first
quarter of 2011.
See Comments on Regulation G for a reconciliation of non-GAAP measures.
Neill A. Currie, CEO, commented: “In the first quarter of 2012, we
generated an annualized operating ROE of over 19% and increased our book
value per share by 5.8%. Our results reflect a light catastrophe loss
quarter, strong investment returns and favorable development. We also
benefited from a successful January 1st renewal season in which we
deployed more capital, increased our premiums by over 30% in each of our
Cat, Specialty and Lloyd's units, and constructed an attractive
portfolio of business.”
FIRST QUARTER 2012 HIGHLIGHTS(1)
-
Underwriting income of $196.6 million and a combined ratio of 29.4%,
compared to an underwriting loss of $397.2 million and a combined
ratio of 230.0%, was primarily driven by the absence of large losses
incurred during the first quarter of 2012, compared to the first
quarter of 2011, which was negatively impacted by the Australian
flooding and the New Zealand and Tohoku earthquakes which had a net
negative impact (2) of $427.4 million and added 212.3
percentage points to the combined ratio.
-
Gross premiums written increased $53.6 million, or 8.8%, to $664.2
million. Excluding the impact of $Nil and $113.5 million of
reinstatement premiums written from large losses in the first quarter
of 2012 and 2011, respectively, gross premiums written increased
$167.1 million, or 33.6%, primarily due to the catastrophe unit
experiencing higher risk-adjusted pricing within its core lines of
business during the January 2012 renewals, combined with continued
growth within the Lloyd's segment across most lines of business.
-
Total investment income of $113.7 million, which includes the sum of
net investment income, net realized and unrealized gains (losses) on
investments and net other-than-temporary impairments, compared to
$55.3 million. The increase in total investment income was primarily
due to higher total returns in the Company's fixed maturity investment
portfolio as a result of tightening credit spreads during the first
quarter of 2012 and higher returns in the Company's private equity
investment portfolio.
-
Other loss of $39.1 million, compared to other income of $50.1
million, was primarily due to trading losses within the Company's
weather and energy risk management operations as a result of the
unusually warm weather experienced in parts of the United Kingdom and
parts of the United States during the first quarter of 2012. This unit
reported a pre-tax loss of $35.5 million and an after-tax loss of
$32.7 million. In addition, ceded reinsurance contracts accounted for
at fair value incurred a loss of $1.8 million, compared to income of
$43.5 million, as a result of net recoverables on the Tohoku
earthquake in the first quarter of 2011 which did not reoccur in the
first quarter of 2012.
Underwriting Results by Segment (1)
Reinsurance Segment
Gross premiums written in the Reinsurance segment were $609.8 million,
an increase of $36.1 million, or 6.3%. Excluding the impact of $Nil and
$112.8 million of reinstatement premiums written from large losses in
the first quarter of 2012 and 2011, respectively, gross premiums written
increased $148.8 million, or 32.3%, primarily due to the catastrophe
unit experiencing improved market conditions on a risk-adjusted basis
within its core lines of business during the January 2012 renewals, and
inclusive of $33.5 million of gross premiums written on behalf of the
Company's most recent fully collateralized joint venture, Upsilon
Reinsurance Ltd. Managed catastrophe premiums totaled $559.0 million, an
increase of $143.9 million, or 34.7%, excluding the impact of
reinstatement premiums written from large losses in the first quarter of
2011. In addition, gross premiums written in the specialty unit were
$100.5 million, an increase of $25.5 million, or 34.0%, due to the
inception of several new contracts.
The Reinsurance segment generated underwriting income of $194.1 million
and a combined ratio of 23.5%, compared to an underwriting loss of
$368.1 million and a combined ratio of 227.2%, primarily the result of a
$587.1 million decrease in net claims and claim expenses. The
Reinsurance segment experienced a light catastrophe loss quarter during
the first quarter of 2012, compared to the first quarter of 2011, which
was negatively impacted by the Australian flooding and New Zealand and
Tohoku earthquakes which had a net negative impact(2) of
$544.7 million and added 220.9 percentage points to the Reinsurance
segment combined ratio.
The Reinsurance segment experienced $46.8 million of favorable
development on prior year reserves, compared to $72.0 million, including
$34.9 million in the catastrophe unit primarily due to reductions in
estimated ultimate losses on certain specific events occurring in prior
accident years, and $11.9 million in the specialty unit.
Lloyd's Segment
Gross premiums written in the Lloyd's segment were $54.8 million, an
increase of $18.2 million, or 49.7%, primarily due to continued growth
within the segment. The Lloyd's segment generated underwriting income of
$1.1 million and a combined ratio of 95.6%, compared to an underwriting
loss of $26.3 million and a combined ratio of 267.7%, primarily as a
result of an increase in favorable development of $8.5 million due to
reductions in estimated ultimate losses on certain specific events
occurring in prior accident years and the absence of large losses during
the first quarter of 2012, compared with the first quarter of 2011 and
the increase in gross premiums written noted above.
Other Items (1)
-
Net income attributable to redeemable noncontrolling interests of
$53.6 million increased from net loss attributable to redeemable
noncontrolling interests of $85.5 million, primarily impacted by an
increase in profitability of DaVinciRe and a decrease in the Company's
ownership percentage in DaVinciRe from 42.8% at December 31, 2011 to
34.7% at March 31, 2012 and compared to 44.0% at March 31, 2011.
-
Equity in earnings of other ventures improved $29.2 million, to
earnings of $5.5 million, primarily due to equity in earnings of Top
Layer Re of $4.7 million, which improved $27.2 million, as a result of
Top Layer Re not experiencing any net claims and claim expenses during
the first quarter of 2012, compared to net claims and claim expenses
related to the February 2011 New Zealand earthquake during the first
quarter of 2011.
-
During the first quarter of 2012, the Company repurchased
approximately 51 thousand common shares in open market transactions at
an aggregate cost of $3.6 million and at an average share price of
$71.81.
This Press Release 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” and
“managed catastrophe premiums.” 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 Thursday, May
3, 2012 at 10:00 a.m. (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.
RenaissanceRe Holdings Ltd. is a global provider of reinsurance and
insurance. The Company's business consists of three segments: (i)
Reinsurance, which includes catastrophe reinsurance, specialty
reinsurance and certain property catastrophe and specialty joint
ventures managed by the Company's ventures unit, (ii) Lloyd's, which
includes reinsurance and insurance business written through Syndicate
1458, and (iii) 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
earnings 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.
|
(1)
|
|
All comparisons are with the first quarter of 2011 unless
specifically stated.
|
|
|
|
(2)
| |
Net negative impact includes the sum of estimates of net claims
and claim expenses incurred, earned reinstatement premiums assumed
and ceded, lost profit commissions, redeemable noncontrolling
interest - DaVinci Re, equity in the net claims and claim expenses
of Top Layer Re, and other income in respect of ceded reinsurance
contracts accounted for at fair value. The Company's estimates are
based on a review of its potential exposures, preliminary
discussions with certain counterparties and catastrophe modeling
techniques. Given the magnitude and recent occurrence of these
events, delays in receiving claims data, potential uncertainties
relating to reinsurance recoveries and other uncertainties
inherent in loss estimation, meaningful uncertainty remains
regarding losses from these events. Accordingly, the Company's
actual net impact from these events will vary from these
preliminary estimates, perhaps materially so. Changes in these
estimates will be recorded in the period in which they occur.
|
|
|
| RenaissanceRe Holdings Ltd. |
| Summary Consolidated Statements of Operations |
|
(in thousands of United States Dollars, except per share amounts and
percentages)
|
|
(Unaudited)
|
|
|
|
| Three months ended |
| | March 31, |
| March 31, |
| | 2012 | | 2011 |
| Revenues | | | | |
|
Gross premiums written
| |
$
|
664,151
|
| |
$
|
610,505
|
|
|
Net premiums written
| |
$
|
492,575
| | |
$
|
452,575
| |
|
Increase in unearned premiums
| |
(213,910
|
)
| |
(147,034
|
)
|
|
Net premiums earned
| |
278,665
| | |
305,541
| |
|
Net investment income
| |
66,971
| | |
60,281
| |
|
Net foreign exchange (losses) gains
| |
(1,460
|
)
| |
660
| |
|
Equity in earnings (losses) of other ventures
| |
5,470
| | |
(23,753
|
)
|
|
Other (loss) income
| |
(39,094
|
)
| |
50,145
| |
|
Net realized and unrealized gains (losses) on fixed maturity
investments
| |
46,113
| | |
(5,214
|
)
|
|
Total other-than-temporary impairments
| |
(161
|
)
| |
—
| |
|
Portion recognized in other-than-temporary impairments
| |
27
|
| |
—
|
|
|
Net other-than-temporary impairments
| |
(134
|
)
| |
—
|
|
| Total revenues | |
356,531
|
| |
387,660
|
|
| Expenses | | | | |
|
Net claims and claim expenses incurred
| |
15,552
| | |
628,537
| |
|
Acquisition expenses
| |
24,111
| | |
32,335
| |
|
Operational expenses
| |
42,383
| | |
41,830
| |
|
Corporate expenses
| |
4,811
| | |
2,064
| |
|
Interest expense
| |
5,718
|
| |
6,195
|
|
| Total expenses | |
92,575
|
| |
710,961
|
|
|
Income (loss) from continuing operations before taxes
| |
263,956
| | |
(323,301
|
)
|
|
Income tax benefit
| |
37
|
| |
52
|
|
| Income (loss) from continuing operations | |
263,993
| | |
(323,249
|
)
|
|
Loss from discontinued operations
| |
(173
|
)
| |
(1,526
|
)
|
| Net income (loss) | |
263,820
| | |
(324,775
|
)
|
|
Net (income) loss attributable to noncontrolling interests
| |
(53,641
|
)
| |
85,492
|
|
| Net income (loss) available (attributable) to RenaissanceRe | |
210,179
| | |
(239,283
|
)
|
|
Dividends on preference shares
| |
(8,750
|
)
| |
(8,750
|
)
|
| Net income (loss) available (attributable) to RenaissanceRe
common shareholders | |
$
|
201,429
|
| |
$
|
(248,033
|
)
|
| | | |
|
|
Income (loss) from continuing operations available (attributable) to
RenaissanceRe common shareholders per common share - basic
| |
$
|
3.93
| | |
$
|
(4.66
|
)
|
|
Loss from discontinued operations attributable to RenaissanceRe
common shareholders per common share - basic
| |
$
|
—
|
| |
(0.03
|
)
|
|
Net income (loss) available (attributable) to RenaissanceRe common
shareholders per common share - basic
| |
$
|
3.93
|
| |
$
|
(4.69
|
)
|
|
Income (loss) from continuing operations available (attributable) to
RenaissanceRe common shareholders per common share - diluted (1)
| |
$
|
3.88
| | |
$
|
(4.66
|
)
|
|
Loss from discontinued operations attributable to RenaissanceRe
common shareholders per common share - diluted (1)
| |
$
|
—
|
| |
(0.03
|
)
|
|
Net income (loss) available (attributable) to RenaissanceRe common
shareholders per common share - diluted (1)
| |
$
|
3.88
|
| |
$
|
(4.69
|
)
|
| | | |
|
|
Average shares outstanding - basic (1)
| |
50,377
| | |
51,504
| |
|
Average shares outstanding - diluted (1)
| |
50,981
| | |
51,504
| |
| | | |
|
|
Net claims and claim expense ratio
| |
5.6
|
%
| |
205.7
|
%
|
|
Expense ratio
| |
23.8
|
%
| |
24.3
|
%
|
|
Combined ratio
| |
29.4
|
%
| |
230.0
|
%
|
|
Operating income (loss) available (attributable) to RenaissanceRe
common shareholders per common share - diluted (2)
| |
$
|
2.98
| | |
$
|
(4.59
|
)
|
|
Operating return on average common equity - annualized (2)
| |
19.7
|
%
| |
(30.7%)
|
|
(1)
|
|
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.
|
|
(2)
| |
See Comments on Regulation G for a reconciliation of non-GAAP
financial measures.
|
|
|
| RenaissanceRe Holdings Ltd. |
| Summary Consolidated Balance Sheets |
|
(in thousands of United States Dollars, except per share amounts)
|
|
|
|
| March 31, |
| December 31, |
| | 2012 | | 2011 |
| Assets | | | | | |
|
Fixed maturity investments trading, at fair value
| |
$
|
4,176,827
| | |
$
|
4,291,465
| |
|
Fixed maturity investments available for sale, at fair value
| |
125,292
|
| |
142,052
|
|
|
Total fixed maturity investments, at fair value
| |
4,302,119
| | |
4,433,517
| |
|
Short term investments, at fair value
| |
1,172,839
| | |
905,477
| |
|
Equity investments trading, at fair value
| |
53,080
| | |
50,560
| |
|
Other investments, at fair value
| |
806,782
| | |
748,984
| |
|
Investments in other ventures, under equity method
| |
76,723
|
| |
70,714
|
|
|
Total investments
| |
6,411,543
| | |
6,209,252
| |
|
Cash and cash equivalents
| |
260,982
| | |
216,984
| |
|
Premiums receivable
| |
703,932
| | |
471,878
| |
|
Prepaid reinsurance premiums
| |
143,690
| | |
58,522
| |
|
Reinsurance recoverable
| |
279,398
| | |
404,029
| |
|
Accrued investment income
| |
30,782
| | |
33,523
| |
|
Deferred acquisition costs
| |
71,162
| | |
43,721
| |
|
Receivable for investments sold
| |
237,372
| | |
117,117
| |
|
Other assets
| |
205,660
| | |
180,992
| |
|
Goodwill and other intangibles
| |
9,077
|
| |
8,894
|
|
| Total assets | |
$
|
8,353,598
|
| |
$
|
7,744,912
|
|
| Liabilities, Noncontrolling Interests and Shareholders' Equity | | | | | |
| Liabilities | | | | | |
|
Reserve for claims and claim expenses
| |
$
|
1,858,203
| | |
$
|
1,992,354
| |
|
Unearned premiums
| |
646,733
| | |
347,655
| |
|
Debt
| |
351,999
| | |
353,620
| |
|
Reinsurance balances payable
| |
285,207
| | |
256,883
| |
|
Payable for investments purchased
| |
361,460
| | |
303,264
| |
|
Other liabilities
| |
242,257
| | |
211,369
| |
|
Liabilities of discontinued operations held for sale
| |
12,539
|
| |
13,507
|
|
| Total liabilities | |
3,758,398
|
| |
3,478,652
|
|
|
Redeemable noncontrolling interest - DaVinciRe
| |
796,743
| | |
657,727
| |
| Shareholders' Equity | | | | | |
|
Preference shares
| |
550,000
| | |
550,000
| |
|
Common shares
| |
51,765
| | |
51,543
| |
|
Additional paid-in capital
| |
379
| | |
—
| |
|
Accumulated other comprehensive income
| |
12,988
| | |
11,760
| |
|
Retained earnings
| |
3,179,433
|
| |
2,991,890
|
|
| Total shareholders' equity attributable to RenaissanceRe | |
3,794,565
| | |
3,605,193
| |
|
Noncontrolling interest
| |
3,892
|
| |
3,340
|
|
| Total shareholders' equity | |
3,798,457
|
| |
3,608,533
|
|
| Total liabilities, noncontrolling interests and shareholders'
equity | |
$
|
8,353,598
|
| |
$
|
7,744,912
|
|
| | | | |
|
| Book value per common share | |
$
|
62.68
|
| |
$
|
59.27
|
|
|
|
| RenaissanceRe Holdings Ltd. |
| Supplemental Financial Data - Segment Information |
|
(in thousands of United States Dollars, except percentages)
|
|
(Unaudited)
|
|
|
|
| Three months ended March 31, 2012 |
| | Reinsurance |
| Lloyd’s |
| Insurance |
| Eliminations (1) |
| Other |
| Total |
|
Gross premiums written
| |
$
|
609,762
|
| |
$
|
54,817
|
| |
$
|
—
|
| |
$
|
(428
|
)
| |
$
|
—
| | |
$
|
664,151
|
|
|
Net premiums written
| |
$
|
458,638
|
| |
$
|
33,937
|
| |
$
|
—
|
| | | |
—
| | |
$
|
492,575
|
|
|
Net premiums earned
| |
$
|
253,818
| | |
$
|
24,822
| | |
$
|
25
| | | | |
—
| | |
$
|
278,665
| |
|
Net claims and claim expenses incurred
| |
8,324
| | |
9,001
| | |
(1,773
|
)
| | | |
—
| | |
15,552
| |
|
Acquisition expenses
| |
19,386
| | |
4,668
| | |
57
| | | | |
—
| | |
24,111
| |
|
Operational expenses
| |
32,044
|
| |
10,057
|
| |
282
|
| | | |
—
|
| |
42,383
|
|
|
Underwriting income
| |
$
|
194,064
|
| |
$
|
1,096
|
| |
$
|
1,459
|
| | | |
—
| | |
196,619
| |
|
Net investment income
| | | | | | | | | |
66,971
| | |
66,971
| |
|
Net foreign exchange losses
| | | | | | | | | |
(1,460
|
)
| |
(1,460
|
)
|
|
Equity in earnings of other ventures
| | | | | | | | | |
5,470
| | |
5,470
| |
|
Other loss
| | | | | | | | | |
(39,094
|
)
| |
(39,094
|
)
|
|
Net realized and unrealized gains on investments
| | | | | | | | | |
46,113
| | |
46,113
| |
|
Net other-than-temporary impairments
| | | | | | | | | |
(134
|
)
| |
(134
|
)
|
|
Corporate expenses
| | | | | | | | | |
(4,811
|
)
| |
(4,811
|
)
|
|
Interest expense
| | | | | | | | | |
(5,718
|
)
| |
(5,718
|
)
|
|
Income from continuing operations before taxes
| | | | | | | | | | | |
263,956
| |
|
Income tax benefit
| | | | | | | | | |
37
| | |
37
| |
|
Loss from discontinued operations
| | | | | | | | | |
(173
|
)
| |
(173
|
)
|
|
Net income attributable to noncontrolling interests
| | | | | | | | | |
(53,641
|
)
| |
(53,641
|
)
|
|
Dividends on preference shares
| | | | | | | | | |
(8,750
|
)
| |
(8,750
|
)
|
|
Net income available to RenaissanceRe common shareholders
| | | | | | | | | | | |
$
|
201,429
|
|
| | | | | | | | | | | |
|
|
Net claims and claim expenses incurred – current accident year
| |
$
|
55,144
| | |
$
|
16,280
| | |
$
|
—
| | | | | | |
$
|
71,424
| |
|
Net claims and claim expenses incurred – prior accident years
| |
(46,820
|
)
| |
(7,279
|
)
| |
(1,773
|
)
| | | | | |
(55,872
|
)
|
|
Net claims and claim expenses incurred – total
| |
$
|
8,324
|
| |
$
|
9,001
|
| |
$
|
(1,773
|
)
| | | | | |
$
|
15,552
|
|
| | | | | | | | | | | |
|
|
Net claims and claim expense ratio – current accident year
| |
21.7
|
%
| |
65.6
|
%
| |
—
|
%
| | | | | |
25.6
|
%
|
|
Net claims and claim expense ratio – prior accident years
| |
(18.4
|
)%
| |
(29.3
|
)%
| |
(7,092.0
|
)%
| | | | | |
(20.0
|
)%
|
|
Net claims and claim expense ratio – calendar year
| |
3.3
|
%
| |
36.3
|
%
| |
(7,092.0
|
)%
| | | | | |
5.6
|
%
|
|
Underwriting expense ratio
| |
20.2
|
%
| |
59.3
|
%
| |
1,356.0
|
%
| | | | | |
23.8
|
%
|
|
Combined ratio
| |
23.5
|
%
| |
95.6
|
%
| |
(5,736.0
|
)%
| | | | | |
29.4
|
%
|
|
|
|
|
| | Three months ended March 31, 2011 |
| | Reinsurance | | Lloyd’s | | Insurance | | Eliminations (1) | | Other | | Total |
|
Gross premiums written
| |
$
|
573,682
|
| |
$
|
36,620
|
| |
$
|
280
|
| |
$
|
(77
|
)
| |
$
|
—
| | |
$
|
610,505
|
|
|
Net premiums written
| |
$
|
423,566
|
| |
$
|
28,737
|
| |
$
|
272
|
| | | |
—
| | |
$
|
452,575
|
|
|
Net premiums earned
| |
$
|
289,429
| | |
$
|
15,674
| | |
$
|
438
| | | | |
—
| | |
$
|
305,541
| |
|
Net claims and claim expenses incurred
| |
595,404
| | |
30,523
| | |
2,610
| | | | |
—
| | |
628,537
| |
|
Acquisition expenses
| |
29,792
| | |
2,461
| | |
82
| | | | |
—
| | |
32,335
| |
|
Operational expenses
| |
32,363
|
| |
8,972
|
| |
495
|
| | | |
—
|
| |
41,830
|
|
|
Underwriting loss
| |
$
|
(368,130
|
)
| |
$
|
(26,282
|
)
| |
$
|
(2,749
|
)
| | | |
—
| | |
(397,161
|
)
|
|
Net investment income
| | | | | | | | | |
60,281
| | |
60,281
| |
|
Net foreign exchange gains
| | | | | | | | | |
660
| | |
660
| |
|
Equity in losses of other ventures
| | | | | | | | | |
(23,753
|
)
| |
(23,753
|
)
|
|
Other income
| | | | | | | | | |
50,145
| | |
50,145
| |
|
Net realized and unrealized losses on investments
| | | | | | | | | |
(5,214
|
)
| |
(5,214
|
)
|
|
Corporate expenses
| | | | | | | | | |
2,064
| | |
2,064
| |
|
Interest expense
| | | | | | | | | |
6,195
| | |
6,195
|
|
|
Loss from continuing operations before taxes
| | | | | | | | | | | |
(323,301
|
)
|
|
Income tax benefit
| | | | | | | | | |
52
| | |
52
| |
|
Loss from discontinued operations
| | | | | | | | | |
(1,526
|
)
| |
(1,526
|
)
|
|
Net loss attributable to noncontrolling interests
| | | | | | | | | |
85,492
| | |
85,492
| |
|
Dividends on preference shares
| | | | | | | | | |
(8,750
|
)
| |
(8,750
|
)
|
|
Net loss attributable to RenaissanceRe common shareholders
| | | | | | | | | | | |
$
|
(248,033
|
)
|
| | | | | | | | | | | |
|
|
Net claims and claim expenses incurred – current accident year
| |
$
|
667,362
| | |
$
|
29,326
| | |
$
|
9
| | | | | | |
$
|
696,697
| |
|
Net claims and claim expenses incurred – prior accident years
| |
(71,958
|
)
| |
1,197
|
| |
2,601
|
| | | | | |
(68,160
|
)
|
|
Net claims and claim expenses incurred – total
| |
$
|
595,404
|
| |
$
|
30,523
|
| |
$
|
2,610
|
| | | | | |
$
|
628,537
|
|
| | | | | | | | | | | |
|
|
Net claims and claim expense ratio – current accident year
| |
230.6
|
%
| |
187.1
|
%
| |
2.1
|
%
| | | | | |
228.0
|
%
|
|
Net claims and claim expense ratio – prior accident years
| |
(24.9
|
)%
| |
7.6
|
%
| |
593.8
|
%
| | | | | |
(22.3
|
)%
|
|
Net claims and claim expense ratio – calendar year
| |
205.7
|
%
| |
194.7
|
%
| |
595.9
|
%
| | | | | |
205.7
|
%
|
|
Underwriting expense ratio
| |
21.5
|
%
| |
73.0
|
%
| |
131.7
|
%
| | | | | |
24.3
|
%
|
|
Combined ratio
| |
227.2
|
%
| |
267.7
|
%
| |
727.6
|
%
| | | | | |
230.0
|
%
|
|
(1)
|
|
Represents $0.4 million of gross premiums ceded from the Reinsurance
segment to the Lloyd's segment for the three months ended March 31,
2012 (2011 - $0.1 million from the Reinsurance segment to the
Lloyd's segment).
|
|
|
| RenaissanceRe Holdings Ltd. |
| Supplemental Financial Data - Gross Premiums Written and Managed
Premiums |
|
(in thousands of United States Dollars)
|
|
(Unaudited)
|
|
|
|
| Three months ended |
| | March 31, |
| March 31, |
| | 2012 | | 2011 |
Reinsurance Segment | | | | |
|
Renaissance catastrophe premiums
| |
$
|
330,427
| | |
$
|
311,642
|
|
Renaissance specialty premiums
| |
99,545
|
| |
74,395
|
|
Total Renaissance premiums
| |
429,972
|
| |
386,037
|
|
DaVinci catastrophe premiums
| |
178,813
| | |
187,036
|
|
DaVinci specialty premiums
| |
977
|
| |
609
|
|
Total DaVinci premiums
| |
179,790
|
| |
187,645
|
|
Total catastrophe unit premiums
| |
509,240
| | |
498,678
|
|
Total specialty unit premiums
| |
100,522
|
| |
75,004
|
| Total Reinsurance segment gross premiums written | |
$
|
609,762
|
| |
$
|
573,682
|
| | | |
|
Lloyd's Segment | | | | |
|
Specialty
| |
$
|
39,329
| | |
$
|
29,235
|
|
Catastrophe
| |
15,488
|
| |
7,385
|
| Total Lloyd's segment gross premiums written | |
$
|
54,817
|
| |
$
|
36,620
|
| | | |
|
Insurance Segment | | | | |
|
Commercial property
| |
$
|
—
|
| |
$
|
280
|
| Total Insurance segment gross premiums written | |
$
|
—
|
| |
$
|
280
|
| | | |
|
Managed Premiums (1) | | | | |
|
Total catastrophe unit gross premiums written
| |
$
|
509,240
| | |
$
|
498,678
|
|
Catastrophe premiums written on behalf of our joint venture, Top
Layer Re (2)
| |
34,305
| | |
22,528
|
|
Catastrophe premiums written in the Lloyd's unit
| |
15,488
|
| |
7,385
|
| Total managed catastrophe premiums (1) | |
$
|
559,033
|
| |
$
|
528,591
|
|
|
(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.
|
|
|
| RenaissanceRe Holdings Ltd. |
| Supplemental Financial Data - Total Investment Result |
|
(in thousands of United States Dollars)
|
|
(Unaudited)
|
|
|
|
| Three months ended |
| | March 31, |
| March 31, |
| | 2012 | | 2011 |
|
Fixed maturity investments
| |
$
|
26,333
| | |
$
|
27,913
| |
|
Short term investments
| |
500
| | |
595
| |
|
Equity investments trading
| |
170
| | |
14
| |
|
Other investments
| | | | |
|
Hedge funds and private equity investments
| |
28,473
| | |
23,507
| |
|
Other
| |
14,170
| | |
10,827
| |
|
Cash and cash equivalents
| |
26
|
| |
41
|
|
| |
69,672
| | |
62,897
| |
|
Investment expenses
| |
(2,701
|
)
| |
(2,616
|
)
|
| Net investment income | |
66,971
|
| |
60,281
|
|
| | | |
|
|
Gross realized gains
| |
36,286
| | |
10,562
| |
|
Gross realized losses
| |
(6,950
|
)
| |
(12,617
|
)
|
| Net realized gains (losses) on fixed maturity investments | |
29,336
| | |
(2,055
|
)
|
|
Net unrealized gains (losses) on fixed maturity investments trading
| |
14,257
| | |
(3,758
|
)
|
|
Net unrealized gains on equity investments trading
| |
2,520
|
| |
599
|
|
| Net realized and unrealized gains (losses) on investments | |
46,113
| | |
(5,214
|
)
|
|
Total other-than-temporary impairments
| |
(161
|
)
| |
—
| |
|
Portion recognized in other comprehensive income, before taxes
| |
27
|
| |
—
|
|
| Net other-than-temporary impairments | |
(134
|
)
| |
—
| |
| | | |
|
| Change in net unrealized gains on fixed maturity investments
available for sale | |
778
|
| |
252
|
|
| | | |
|
| Total investment income | |
$
|
113,728
|
| |
$
|
55,319
|
|
|
|
Comments on Regulation G
In addition to the GAAP financial measures set forth in this Press
Release, the Company has included certain non-GAAP financial measures in
this Press Release within the meaning of Regulation G. The Company has
provided these financial measurements in previous investor
communications and the Company's management believes that these
measurements are important to investors and other interested persons,
and that investors and such other persons benefit from having a
consistent basis for comparison between quarters and for the comparison
with other companies within the industry. These measures may not,
however, be comparable to similarly titled measures used by companies
outside of the insurance industry. Investors are cautioned not to place
undue reliance on these non-GAAP measures in assessing the Company's
overall financial performance.
The Company uses “operating 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 to RenaissanceRe common shareholders” as used herein differs
from “net 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 and net other-than-temporary
impairments from continuing and discontinued operations. The Company's
management believes that “operating 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 to RenaissanceRe common shareholders” to calculate
“operating to RenaissanceRe common shareholders per common share -
diluted” and “operating return on average common equity - annualized”.
The following is a reconciliation of: 1) net to RenaissanceRe common
shareholders to operating to RenaissanceRe common shareholders; 2) net
to RenaissanceRe common shareholders per common share - diluted to
operating 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 |
| | March 31, |
| March 31, |
|
(in thousands of United States Dollars, except percentages)
| | 2012 | | 2011 |
|
Net income (loss) available (attributable) to RenaissanceRe common
shareholders
| |
$
|
201,429
| | |
$
|
(248,033
|
)
|
|
Adjustment for net realized and unrealized (gains) losses on
investments of continuing operations
| |
(46,113
|
)
| |
5,214
| |
|
Adjustment for net other-than-temporary impairments of continuing
operations
| |
134
| | |
—
| |
|
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
| |
$
|
155,450
|
| |
$
|
(242,861
|
)
|
| | | |
|
|
Net income (loss) available (attributable) to RenaissanceRe common
shareholders per common share - diluted
| |
$
|
3.88
| | |
$
|
(4.69
|
)
|
|
Adjustment for net realized and unrealized (gains) losses on
investments of continuing operations
| |
(0.90
|
)
| |
0.10
| |
|
Adjustment for net other-than-temporary impairments of continuing
operations
| |
—
| | |
—
| |
|
Adjustment for net realized and unrealized gains on fixed maturity
investments and net other-than-temporary impairments of discontinued
operations
| |
—
|
| |
—
|
|
|
Operating income (loss) available (attributable) to RenaissanceRe
common shareholders per common share - diluted
| |
$
|
2.98
|
| |
$
|
(4.59
|
)
|
| | | |
|
|
Return on average common equity - annualized
| |
25.6
|
%
| |
(31.3%)
|
|
Adjustment for net realized and unrealized (gains) losses on
investments of continuing operations
| |
(5.9
|
)%
| |
0.6
|
%
|
|
Adjustment for net other-than-temporary impairments of continuing
operations
| |
—
|
%
| |
—
|
%
|
|
Adjustment for net realized and unrealized gains on fixed maturity
investments and net other-than-temporary impairments of discontinued
operations
| |
—
|
%
| |
—
|
%
|
|
Operating return on average common equity - annualized
| |
19.7
|
%
| |
(30.7%)
|
|
|
The Company has also included in this Press Release “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.
Contacts:
INVESTORS:
RenaissanceRe Holdings Ltd.
Rohan Pai,
441-295-4513
Director of Investor Relations
or
MEDIA:
Kekst
and Company
Peter Hill or Dawn Dover
212-521-4800
Source: RenaissanceRe Holdings Ltd.
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