RenRe posts $367.9m quarterly profit

  • Kevin O'Donnell, CEO of RenRe

    Kevin O'Donnell, CEO of RenRe

Bermudian reinsurer RenaissanceRe Holdings Ltd reported net income of $367.9 million and trounced the estimates of Wall Street analysts.

Profits soared more than 90 per cent from the $191.8 million the company made in the corresponding quarter last year.

Operating income was $212.6 million, or $4.78 per diluted common share, up by $8 million from the same period and comfortably surpassing the $3.71 per share consensus forecast of analysts tracked by Yahoo Finance.

Kevin O’Donnell, chief executive officer of RenRe, said: “I am pleased with our performance in the second quarter, where we achieved annualised operating return on average common equity of 16.7 per cent and growth in tangible book value per common share plus accumulated dividends of 8.2 per cent.

“This strong performance was due to the diligent execution of our differentiated strategy, resulting in solid profits, material growth and improved operational efficiency.

“The portfolio of risks we have constructed is larger, more diverse and increasingly efficient, and poised to drive superior long-term returns for our shareholders.”

The company reported an annualised return on average common equity of 28.9 per cent and an annualised operating return on average common equity of 16.7 per cent in the second quarter.

Book value per common share increased $8.12, or 7.3 per cent, to $119.17 in the second quarter of 2019.

Gross premiums written increased by $499.6 million, or 51.1 per cent, to $1.5 billion, in the second quarter of 2019, compared to the second quarter of 2018, driven by an increase of $286.6 million in the Property segment and an increase of $213.0 million in the Casualty and Specialty segment.

Underwriting income of $170.8 million and a combined ratio of 81.3 per cent in the second quarter of 2019, compared to $226.6 million and 47.2 per cent, respectively, in the second quarter of 2018.

Total investment result was a gain of $309.8 million in the second quarter of 2019, generating an annualised total investment return of 8 per cent, driven by net realised and unrealised gains on investments of $194 million, comprised of $143.3 million from fixed maturity investments and $50.7 million from equity investments and investments-related derivatives.

RenRe said more than $700 million of capital was raised through the company’s third-party vehicles, including DaVinciRe Holdings Ltd, Upsilon RFO Re Ltd, Vermeer Reinsurance Ltd and RenaissanceRe Medici Fund Ltd.

On March 22, 2019, the Company completed its acquisition of Tokio Millennium Re AG, now known as RenaissanceRe Europe AG, Tokio Millennium Re (UK) Ltd, now known as RenaissanceRe (UK) Ltd and their subsidiaries.

The second quarter of 2019 was the first full quarter that reflected the results of the TMR acquisition on the company’s results of operations.

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Published Jul 24, 2019 at 8:00 am (Updated Jul 24, 2019 at 8:14 am)

RenRe posts $367.9m quarterly profit

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