RenaissanceRe Reports Fourth Quarter Results

January 27, 2021 | 0 Comments

RenaissanceRe Holdings reported net income available to RenaissanceRe common shareholders of $189.8 million, or $3.74 per diluted common share, in the fourth quarter of 2020, compared to $33.8 million, or $0.77 per diluted common share, in the fourth quarter of 2019.

Operating loss attributable to RenaissanceRe common shareholders was $77.1 million, or $1.59 per diluted common share, in the fourth quarter of 2020, compared to operating income available to RenaissanceRe common shareholders of $12.6 million, or $0.28 per diluted common share, in the fourth quarter of 2019.

The Company reported an annualized return on average common equity of 10.9% and an annualized operating return on average common equity of negative 4.4% in the fourth quarter of 2020, compared to 2.5% and 0.9%, respectively, in the fourth quarter of 2019. Book value per common share increased $3.33, or 2.5%, to $138.46 in the fourth quarter of 2020, compared to a 0.4% increase in the fourth quarter of 2019.

Tangible book value per common share plus accumulated dividends increased $3.84 to $155.17 in the fourth quarter of 2020. For the fourth quarter of 2020, tangible book value per common share plus change in accumulated dividends increased 3.0% compared to a 0.7% increase in the fourth quarter of 2019.

For 2020, the Company reported net income available to RenaissanceRe common shareholders of $731.5 million, or $15.31 per diluted common share, compared to $712.0 million, or $16.29 per diluted common share, in 2019. Operating income available to RenaissanceRe common shareholders was $14.6 million, or $0.12 per diluted common share, in 2020, compared to $397.8 million, or $9.01 per diluted common share, in 2019.

The Company reported a return on average common equity of 11.7% and an operating return on average common equity of 0.2% in 2020, compared to 14.1% and 7.9%, respectively, in 2019. Book value per common share increased $17.93, or 14.9%, in 2020, to $138.46, compared to a 15.7% increase in 2019. Tangible book value per common share plus accumulated dividends increased $20.46 to $155.17 in 2020. For 2020, tangible book value per common share plus change in accumulated dividends increased 17.9%, compared to a 17.9% increase in 2019.

Kevin J. O’Donnell, President and Chief Executive Officer of RenaissanceRe, commented: “We begin 2021 looking forward and fully focused on executing our strategy into an attractive reinsurance market. The book of business that we wrote at the January 1 renewal is larger and more efficient, with increased expected profitability, and we anticipate further opportunities to improve it over the course of the year.

“While 2020 brought many challenges, I am particularly proud of the accomplishments of our employees and the continuity of our culture during a difficult year marked by record-breaking weather events and the stresses of the COVID-19 pandemic.”

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