RenaissanceRe Holdings Ltd’s net income dipped 36 per cent in the fourth quarter as the company grappled with pressure on pricing from abundant capital in the industry — but operating earnings surpassed analysts’ expectations.

The company posted net income of $170.8 million, down from $268.7 million in the fourth quarter of 2013. For the full year, net income also fell by 23 per cent to $510.3 million.

Operating income for the fourth quarter was $140.3 million, or $3.62 per share, compared to the $2.27 per share consensus expectation of analysts tracked by Yahoo Finance.

Full-year underwriting income dropped by more than $97 million. The company reported $529.4 million in underwriting income for the year, compared to $626.7 million in 2013.

Gross premiums written also showed a decline — down $54.8 million (3.4 per cent) to $1.55 billion, which the company attributed to a $186.4 million (16.6 per cent) fall in the catastrophe reinsurance segment.

But RenaisanceRe said that had been offset by increases in specialty reinsurance and its Lloyd’s of London arm — with gross premiums up $87.1 million (33.6 per cent) and $43.1 million (19 per cent) respectively.

RenaissanceRe CEO Kevin O’Donnell said: “I’m pleased with RenaissanceRe’s performance, both for the fourth quarter and the for the full year.

“We achieved solid growth in tangible book value per share plus accumulated dividends of 5.5 per cent for the quarter and 13.9 per cent for the year, while demonstrating discipline and objectivity about the risk we assumed and the pricing required.

“Our underwriting team executed extremely well during the most recent renewal period, as pressure on pricing from abundant capacity persisted.”

The firm — set to take over Platinum Underwriters later this year — said the deal would give the firm greater scope.

Mr O’Donnell said: “Over the past few years, we have steadily developed the spectrum of products, platforms and scale we offer, in anticipation of the evolving needs of our customers.

“The acquisition of Platinum Underwriters Holdings Ltd will accelerate our efforts, broadening our client and broker base and our capital flexibility.

“The preparation for the integration of the two entities is on track and we are looking forward to welcoming our new team members.”

The company also reported 2014 net income available to common shareholders of $510.3 million, or $12.60 per diluted common share, compared to $665.7 million or $14.87 the year before.

Operating income available to common shareholders was $468.9 million, or $11.56 per diluted common share for 2014.

In 2013, the figures were $630.6 million and $14.08 respectively.

The firm reported a return on average common equity of 14.9 per cent and an operating return on average common equity of 13.7 per cent in 2014, compared to 20.5 per cent and 19.4 per cent, respectively, in 2013.