RenaissanceRe Holdings Ltd. yesterday reported $93.3 million in second quarter net operating income, compared to $37.5 million in the second quarter of 2001.

Operating earnings per common share grew to $1.33 in the second quarter, from $0.62 per common share in the second quarter of the previous year.

Net income available to common shareholders rose 138 percent - to $96.2 million, or $1.37 per common share in the quarter - from $40.3 million or $0.67 per common share for the same quarter of 2001.

In a press release, James N. Stanard, chairman and CEO said: "We are very pleased with the 56 percent increase we achieved in managed cat premium in the quarter, and with the accelerating growth trends in our speciality reinsurance and Glencoe insurance businesses.

"To support the growth of our catastrophe business, we utilised our joint ventures and increased our purchases of reinsurance. Our 31 percent annualised return on equity reflects the inherent earnings power of our business in periods with limited catastrophe loss activity.

"Assuming normal loss activity for the balance of the year, we are increasing our earnings per share estimates for 2002 to a range of $4.45 to $4.60, reflecting the strong earnings we achieved as a result of the limited losses in the second quarter, as well as the growth in our business."

For the six months ended June 30, net operating income available to common shareholders (excluding realised gains and losses on investments and excluding the cumulative effect of a change in accounting principle) was $179.9 million or $2.57 per common share, compared to $74.7 million or $1.23 per common share for the same period in 2001.

Net income available to common shareholders for the six months ended June 30, 2002 was $174.3 million or $2.49 per common share, compared to $85.2 million or $1.41 per common share for the same period in 2001.

Gross premiums written for the second quarter increased 122 percent to $270.3 million, compared to $122.0 million for the same quarter of 2001.

Net premiums written for the second quarter were $198.5 million, versus $92.9 million for the same quarter of 2001 and net premiums earned for the second quarter were $184.7 million, compared to $75.5 million for the same quarter of 2001.

Those premiums include $34.8 million of gross written premiums, $34.8 million of net written premiums and $34.2 million of net premiums earned by the Company's consolidated joint venture, DaVinci Re during the second quarter of 2002.

Gross premiums written for the six months ended June 30, 2002 were $731.1 million, compared to $320.2 million for the same period of 2001. Net premiums written for the six months ended June 30, were $577.6 million, compared to $214.2 million for the same period of 2001.

Net premiums earned for the first six months of 2002 were $335.1 million, compared to $159.4 million for the same period of 2001. Those premiums include $130.1 million of gross written premiums, $130.1 million of net written premiums and $57.8 million of net premiums earned by DaVinci Re during the first six months of 2002.

Net investment income, excluding realised and unrealised investment gains and losses, for the second quarter of 2002 increased to $26.4 million, compared to $18.3 million for the same period in 2001, primarily due to the Company's capital raising activities during the second half of 2001 and strong cash flows from operations.

The low level of catastrophe losses in the quarter resulted in claims and claim expenses incurred for the quarter ended June 30, 2002 of $73.1 million, or 39.6 percent of net premiums earned. In comparison, claims and claim expenses incurred for the quarter ended June 30, 2001 were $32.3 million, or 42.8 perecent of net premiums earned. Claims and claim expenses incurred for the six months ended June 30, 2002 also benefited from the low level of catastrophe losses during the first six months of 2002 and were $116.3 million or 34.7 percent of net premiums earned. In comparison, claims and claim expenses incurred for the six months ended June 30, 2001 were $74.2 million or 46.5 percent of net premiums earned.

Pro forma "other income", which includes aggregate earnings from joint venture activities, fees related to catastrophe business, and miscellaneous other items, is presented in the supplemental disclosures.

For the six months ended June 30, 2002, the Company recorded pro forma other income of $51.2 million, compared to $12.9 million for the same period of 2001. Of the total $51.2 million of pro forma other income during the first six months, $29.3 million relates to fees and profit commissions, compared to $9.4 million in the first six months of 2001, and $18.7 million relates to the Company's portion of the earnings from its joint ventures, versus $4.9 million in the comparable period of 2001. The remaining $3.1 million of other income in 2002 relates primarily to income from contracts triggered by physical variables, compared to a loss of $1.4 million in the first six months of 2001.

Shareholders' equity attributable to common shareholders was $1.24 billion at June 30, 2002, compared to $1.08 billion at December 31, 2001. Book value per common share at June 30, 2002 was $18.03 per common share, compared to $15.83 per common share at December 31, 2001. The share and per-share information in this press release reflects the Company's three-for-one stock split in May 2002, as if the split had occurred for all periods presented.

Also reflected on the Company's consolidated financial statements is an increase in debt due to the completion of the previously announced $100 million bank credit facility for DaVinci.

On the web

www.renre.com.