Net income at Renaissance Re plunged by nearly $112 million for the third quarter of the year compared to the same period in 2013.

The Bermuda-based reinsurer recorded a profit of $67.8 million, compared to $179.7 million for the third quarter of last year.

The latest figure equates to $1.70 per diluted share compared to $4.01 in the same period last year.

Operating income available to shareholders was $98.9 million ($2.49 per share) in the third quarter of this year, while the corresponding quarter last year showed figures of $151.3 million and $3.36 per share for the same period last year.

Kevin O’Donnell, RenaissanceRe CEO, said: “our results reflect our actions to reduce risk and optimise risk-adjusted returns in a difficult market.”

Mr O’Donnell added that the third quarter of this year saw an annualised operating return on equity of 11.7 per cent and a 1.5 per cent increase in tangible book value per share, plus accumulated dividends.

And he said: “In a market that looks set to remain challenging absent a major event, we will continue to provide the capacity, flexibility and scope our clients and partners seek.

“At the same time, we will maintain the same discipline and focus they have come to appreciate.

“The investments we have made over the years to develop the platforms and the breadth of products sought by our clients positions us particularly well in this environment.”

RenRe generated underwriting income of $104.8 million in the quarter, compared to $151.4 million over the same period in 2013.

The company’s quarterly report said the $46.6 million decrease was largely driven by $35.7 million fall in net premiums earned, attributed to a reduced gross premiums written in the first nine months of this year and an $8.7 million increase in net claims and claim expenses.

The firm wrote $201 million in gross premiums in the quarter to the end of September — an increase of $18.3 million (ten percent), compared to same period in 2013.

RenRe said the increase was primarily driven by the company’s Lloyd’s and specialty reinsurance segments, which showed a jump of $23.9 million (59.8 per cent) and $8.7 million (14.5 per cent) respectively.

But the firm added these increases were offset by a $14.3 million drop (17.3 percent) in the catastrophe reinsurance arm.

The total investment result for the third quarter this year was negative $6.5 million — including the sum of net investment income, net realised and unrealised gains on investments and the change in net unrealised gains on fixed maturity investments available for sale.

That compared to a positive $88.2 million in the third quarter of last year.

The quarterly report said: “The negative total investment result was primarily driven by rising interest rates and widening credit spreads in the company’s fixed maturity investment portfolio, which resulted in net unrealised losses, combined with lower returns in the company’s portfolio of private equity investments, principally driven by weaker returns in the public equity markets during the third quarter of 2014, compared to the third quarter of 2013, partially offset by higher average invested assets during the third quarter of 2014, compared to the third quarter of 2013.”