RenaissanceRe Q2 Net Income Down From 2010
Bermuda based reinsurer RenaissanceRe Holdings Ltd reported a 2011 second quarter net income of $24.8 million, a reduction of the $210.2 million net income the Company had in the second quarter of 2010.
A statement released by the company said, “RenaissanceRe Holdings Ltd. reported net income available to RenaissanceRe common shareholders of $24.8 million or $0.48 per diluted common share in the second quarter of 2011, compared to $210.2 million or $3.66, respectively, in the second quarter of 2010.”
“Operating loss attributable to RenaissanceRe common shareholders was $10.2 million or $0.21 per diluted common share for the second quarter of 2011, compared to operating income available to RenaissanceRe common shareholders of $139.9 million or $2.40 per diluted common share in the second quarter of 2010.”
“The Company reported an annualized return on average common equity of 3.3% and an annualized operating return on average common equity of negative 1.4% in the second quarter of 2011, compared to positive 26.8% and positive 17.9%, respectively, in the second quarter of 2010.”
“Book value per common share increased $0.29, or 0.5%, in the second quarter of 2011 to $57.30, compared to a 5.8% increase in the second quarter of 2010.”
CEO Neill Currie [pictured] commented: “Our results for the quarter were impacted by $70.8 million of net losses from the tornado activity in the U.S. As a result, we reported $24.8 million of net income, a $10.2 million operating loss and a 0.5% increase in book value per share in the quarter.”
Mr. Currie added: “At the same time, we had a successful June 1st renewal season and are pleased with our portfolio of risks, which reflects improving market conditions in our Reinsurance segment. Our strong balance sheet, high ratings and leadership position in property catastrophe reinsurance allowed us to increase our catastrophe premiums by over 15%.”
