RenaissanceRe reported its profits jumped by 13 percent to $170.4 million for the first quarter of 2004, after a change in the mix of business and strong growth in certain segments.

The company, which has offices on East Broadway and is building a new office block on the Hamilton waterfront, reported net income for the same period in 2003 as $151.3 million.

"This quarter demonstrates the increasing diversification of RenaissanceRe's business mix," said James Stanard, chairman and chief executive officer. "Strong first quarter growth in individual risk and specialty reinsurance positions us well to meet our targeted 2004 growth rates in these lines of 30 percent and 20 percent, respectively, and more than offset the five percent decline in gross managed cat premium, which was in line with our expectations."

He said that the company also benefited from another quarter of light catastrophes, and continued to deliver strong returns on equity and growth in book value per share.

RenaissanceRe reported $137.8 million in first quarter net operating income available to common shareholders, compared to $130.2 million in the first quarter of 2003.

This operating income excludes realised investment gains of $32.5 million and $21.1 million in the first quarters of 2004 and 2003, respectively.

Operating income per common share grew to $1.93 in the first quarter of 2004, from $1.84 per common share in the first quarter of 2003.

Gross premiums written for the first quarter of 2004 rose 14 percent to $780.3 million, compared to $685.2 million for the same quarter of 2003.

Gross premiums written include $660.4 million in gross premiums written for the company's reinsurance segment in the first quarter of 2004, compared to $621.3 million for the same quarter of 2003 and $119.9 million in gross premiums written for the company's individual risk segment in the first quarter of 2004, compared to $63.8 million for the same quarter of 2003.

Net premiums written for the first quarter of 2004 were $706.0 million, versus $590.4 million for the same quarter of 2003.

Net premiums earned for the first quarter of 2004 were $309.6 million, compared to $263.5 million for the same quarter of 2003.

Premiums for the first quarter of 2004 include $130.8 million of gross written premiums and $128.7 million of net written premiums and $47.0 million of net premiums earned by the company's consolidated joint venture, DaVinci Re during the first quarter of 2004, compared to $126.5 million of gross and net written premiums and $49.1 million of net premiums earned by DaVinci Re during the first quarter of 2003.

During the quarter, the income from the DaVinci, one of the six post September 11 start-ups, and other fee income was $33.7 million, compared to $36.1 million during the first quarter of 2003.

Of this, $16.9 million reflects fees and profit commissions, compared to $20.2 million in the first quarter of 2003, and $16.8 million reflects equity in earnings of unconsolidated ventures and DaVinci, versus $17.7 million in the comparable quarter of 2003.

Also during the quarter, the company consummated its $119.7 million investment in ChannelRe Holdings Ltd. This investment has been reflected in the balance sheet under the caption "investments in other ventures, under the equity method", which also includes our investment in Top Layer Reinsurance Ltd. The earnings on our investment in ChannelRe Holdings Ltd. will be recorded one quarter in arrears so will be available in the second quarter, the company said.

Net investment income for the first quarter of 2004 was $35.1 million, compared to $31.4 million for the same quarter in 2003. Net investment income includes appreciation related to investments in hedge funds and private equity funds recorded during the first quarter of 2004 of $6.3 million compared to $3.3 million of net appreciation recorded during the first quarter of 2003.

Highlights

Operating earnings per share of $1.93 Q1 2004 vs. $1.84 Q1 2003

$170.4 Million Net Income for the First Quarter of 2004

Managed Speciality Reinsurance Premium Grows to $258.0 Million Compared to $205.8 Million in 2003

Individual Risk Segment Premium Grows to $119.9 Million for the First Quarter of 2004 Compared to $63.8 Million in 2003

Achieves First Quarter 2004 Annualised Operating Return on Equity of 25.5%