RenaissanceRe 1st Q Profit Jumps $68 Million
Bermuda based RenaissanceRe reported net income available to common shareholders of $165.0 million, a raise of $67.7 million over the first quarter of 2009.
The $165 million [$2.73 per diluted common share] compares favorably to $97.3 million [$1.57 per diluted common share] for the first quarter of 2009.
Operating income available to common shareholders was $116.5 million or $1.91 per diluted common share in the first quarter of 2010, compared to $94.2 million or $1.52 per diluted common share in the first quarter of 2009.
Operating income excludes net realized and unrealized gains on fixed maturity investments of $48.6 million and net other-than-temporary impairments of $33 thousand in the first quarter of 2010 and net realized gains on fixed maturity investments of $22.1 million and net other-than-temporary impairments of $19.0 million in the first quarter of 2009.
The Company reported an annualized return on average common equity of 20.9% and an annualized operating return on average common equity of 14.8% in the first quarter of 2010, compared to 16.0% and 15.5%, respectively, in the first quarter of 2009. Book value per common share increased to $53.86 at March 31, 2010, a 4.2% increase in the first quarter of 2010, compared to a 2.3% increase in the first quarter of 2009.
The Company recorded $124.5 million of net negative impact from the Chilean earthquake and Xynthia in the first quarter of 2010.
Neill A. Currie, CEO, commented:
Industry insured catastrophe losses were among the highest recorded for a first quarter. We generated an annualized operating ROE of 14.8% and grew our book value per share by over 4%, including the $124.5 million of net negative impact from these catastrophes. Favorable reserve development and strong investment performance were key drivers for the quarter.
An event like Xynthia is a relatively common occurrence, whereas the Chilean earthquake had a much lower probability of occurring. We are in the business of protecting our clients from such events and our estimated losses were well within our modeled expectations.
Total assets as of March 31, 2010 were $7.93 billion, compared with $7.8 billion as of December 31, 2009.
You can read the full 1st quarter document here [14 page PDF]
RenaissanceRe was founded in Bermuda in 1993, and is global provider of reinsurance and insurance to cover the risk of natural and man-made catastrophes.
Other 2010 first quarter results of Bermuda based companies here.
