RenaissanceRe Report Net Income Of $191.8M

July 25, 2018 | 0 Comments

Bermuda-based RenaissanceRe Holdings reported net income available to RenaissanceRe common shareholders of $191.8 million, or $4.78 per diluted common share, in the second quarter of 2018, compared to $171.1 million, or $4.24 per diluted common share, in the second quarter of 2017.

Operating income available to RenaissanceRe common shareholders was $209.6 million, or $5.23 per diluted common share, in the second quarter of 2018, compared to $116.8 million, or $2.88 per diluted common share, in the second quarter of 2017.

The Company reported an annualized return on average common equity of 18.6% and an annualized operating return on average common equity of 20.3% in the second quarter of 2018, compared to 15.2% and 10.3%, respectively, in the second quarter of 2017.

Book value per common share increased $4.27, or 4.3%, to $104.56, in the second quarter of 2018, compared to a 3.4% increase in the second quarter of 2017. Tangible book value per common share plus accumulated dividends increased $4.57, or 4.9%, to $116.53 in the second quarter of 2018, compared to a 3.9% increase in the second quarter of 2017.

Kevin J. O’Donnell, CEO, commented: “We celebrated our 25th anniversary as a company this quarter, and I am proud to report very strong results. We recorded annualized operating return on average common equity of 20.3% and growth in tangible book value per common share plus accumulated dividends of 4.9%.

“I am especially pleased that we were also able to construct our best portfolio of risk in years. Moving forward, a combination of top line growth, an effective gross-to-net strategy, rising interest rates and improved operational efficiency should provide the foundations for continued superior shareholder return.”

Second Quarter 2018 Summary

  • Gross premiums written increased by $149.9 million, or 18.1%, to $977.3 million, in the second quarter of 2018, compared to the second quarter of 2017, driven by increases of $96.6 million in the Casualty and Specialty segment and $53.3 million in the Property segment. Gross premiums written in the Property segment included a $31.4 million reduction in assumed reinstatement premiums written.
  • Underwriting income of $226.6 million and a combined ratio of 47.2% in the second quarter of 2018, compared to $109.7 million and 71.3%, respectively, in the second quarter of 2017. Decreases in the estimates of the net negative impact of the 2017 Catastrophe Events [as defined herein] resulted in a net positive impact on the underwriting result of $92.0 million, and a corresponding reduction in the combined ratio of 23.5 percentage points, in the second quarter of 2018, principally within the Company’s Property segment.
  • The Company’s portfolio of fixed maturity and short term investments had a yield to maturity of 3.0% at June 30, 2018
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