RenaissanceRe Report Net Income Of $56.7M
Bermuda-based RenaissanceRe Holdings Ltd. today reported net income available to RenaissanceRe common shareholders of $56.7 million, or $1.42 per diluted common share, in the first quarter of 2018, compared to $92.4 million, or $2.25 per diluted common share, in the first quarter of 2017.
Operating income available to RenaissanceRe common shareholders was $135.2 million, or $3.40 per diluted common share, in the first quarter of 2018, compared to $53.7 million, or $1.30per diluted common share, in the first quarter of 2017. The Company reported an annualized return on average common equity of 5.7% and an annualized operating return on average common equity of 13.5% in the first quarter of 2018, compared to 8.3% and 4.8%, respectively, in the first quarter of 2017.
Book value per common share increased $0.57, or 0.6%, to $100.29, in the first quarter of 2018, compared to a 0.8% increase in the first quarter of 2017. Tangible book value per common share plus accumulated dividends increased $0.73, or 0.8%, to $111.96 in the first quarter of 2018, compared to a 1.2% increase in the first quarter of 2017.
Kevin J. O’Donnell, CEO, commented: “I am pleased with our solid results and very strong execution in the first quarter. We delivered an annualized operating return on average common equity of 13.5% for the quarter, highlighted by low catastrophe activity, strong growth in premiums, prior year favorable development and a continued increase in operating efficiency.
“The January 1 renewal was successful, as we increased both the size and efficiency of our portfolio of risk. Moving into the mid-year renewals, we remain focused on implementing our strategy in order to continue to build a diverse and profitable book of business and maximize shareholder value.”
First Quarter 2018 Summary
- Gross premiums written increased by $237.6 million, or 25.8%, to $1.2 billion, in the first quarter of 2018, compared to the first quarter of 2017, driven by increases of $186.4 million in the Property segment and $51.1 million in the Casualty and Specialty segment.
- Underwriting income of $129.6 million and a combined ratio of 70.6% in the first quarter of 2018. The Property segment generated underwriting income of $127.2 million and a combined ratio of 43.5%. The Casualty and Specialty segment generated underwriting income of $2.6 million and a combined ratio of 98.8%.
- The Company’s portfolio of fixed maturity and short term investments had a yield to maturity of 2.9% at March 31, 2018.
