RenaissanceRe: Net Income Of $92.2 Million
Bermuda-based RenaissanceRe Holdings Ltd. reported net income available to RenaissanceRe common shareholders of $92.2 million, or $2.09 per diluted common share, in the fourth quarter of 2015, compared to $170.8 million, or $4.42 per diluted common share, respectively, in the fourth quarter of 2014.
Operating income available to RenaissanceRe common shareholders was $135.0 million, or $3.07 per diluted common share, in the fourth quarter of 2015, compared to $140.3 million, or $3.62 per diluted common share, respectively, in the fourth quarter of 2014.
The Company reported an annualized return on average common equity of 8.5% and an annualized operating return on average common equity of 12.5% in the fourth quarter of 2015, compared to 20.1% and 16.5%, respectively, in the fourth quarter of 2014.
Book value per common share increased $1.72, or 1.8%, in the fourth quarter of 2015 to $99.13, compared to a 5.1% increase in the fourth quarter of 2014. Tangible book value per common share plus accumulated dividends increased 2.3% in the fourth quarter of 2015, compared to a 5.5% increase in the fourth quarter of 2014.
For 2015, the Company reported net income available to RenaissanceRe common shareholders of $408.8 million, or $9.28 per diluted common share, compared to $510.3 million, or $12.60 per diluted common share in 2014. Operating income available to RenaissanceRe common shareholders was $477.7 million, or $10.86 per diluted common share in 2015, compared to $468.9 million, or $11.56 per diluted common share in 2014.
The Company reported a return on average common equity of 9.8% and an operating return on average common equity of 11.4% in 2015, compared to 14.9% and 13.7%, respectively, in 2014. Book value per common share increased $8.98, or 10.0%, in 2015 to $99.13, compared to a 12.3% increase in 2014. Tangible book value per common share plus accumulated dividends increased 5.0% in 2015, compared to a 13.9% increase in 2014.
Kevin J. O’Donnell, CEO, commented, “I am pleased to report $135.0 million of operating income, an annualized operating ROE of 12.5% and 2.3% growth in tangible book value per share plus accumulated dividends for the quarter. In a year in which we acquired and fully integrated Platinum, we generated solid operating income of $477.7 million for the year and delivered an operating ROE of 11.4%.”
Mr. O’Donnell continued, “Our underwriting team executed well during the most recent renewal period, as pressure on pricing from abundant capacity persisted. We maintained discipline, coming off business that did not meet our return hurdles, buying more reinsurance protection, while also building an attractive portfolio of risks.
“We are a bigger, stronger company today, than a year ago, and have the management team, global operating platforms and risk management expertise to serve our clients, third party capital providers and shareholders well in the years ahead.”
