RenaissanceRe Report Net Income Of $146.8M
Bermuda-based RenaissanceRe Holdings Ltd. reported net income available to RenaissanceRe common shareholders of $146.8 million, or $3.56 per diluted common share, in the third quarter of 2016, compared to $75.5 million, or $1.66 per diluted common share, respectively, in the third quarter of 2015.
Operating income available to RenaissanceRe common shareholders was $87.0 million, or $2.09 per diluted common share, in the third quarter of 2016, compared to $116.7 million, or $2.58 per diluted common share, respectively, in the third quarter of 2015.
The Company reported an annualized return on average common equity of 13.5% and an annualized operating return on average common equity of 8.0% in the third quarter of 2016, compared to 6.9% and 10.7%, respectively, in the third quarter of 2015. Book value per common share increased $3.40, or 3.3%, in the third quarter of 2016 to $107.10, compared to a 1.0% increase in the third quarter of 2015.
Tangible book value per common share plus accumulated dividends increased $3.75, or 3.9%, in the third quarter of 2016 to $116.82, compared to a 1.3% increase in the third quarter of 2015.
Kevin J. O’Donnell, CEO, commented, “We reported $146.8 million of net income and 3.9% growth in tangible book value per share plus accumulated dividends for the quarter. Our results benefited from a low level of insured catastrophe activity, favorable reserve development and mark-to-market investment gains.
“For the first nine months of the year, we have generated $411.1 million of net income and grown tangible book value per share by 9.5%, after adjusting for dividends, while also returning almost $350 million of capital to our shareholders through share repurchases and dividends.”
Mr. O’Donnell continued, “We continue to see select opportunities for disciplined organic growth within our casualty and specialty franchise. Given where we are in the reinsurance cycle, we are executing our gross to net strategy, trading underwriting risk for fee income, and protecting our balance sheet for the long term.
“We continue to focus on deepening our customer relationships and look forward to meeting their needs during the upcoming renewal period.”
