RenaissanceRe suffered a big dip in profits, making $62.2 million for the fourth quarter of 2007 compared to $201.1 million for the same period in 2006.

This was accounted for mainly by a $131 loss related to RenRe's 32.7-percent stake in ChannelRe, a company founded to reinsure a single client, the world's biggest bond insurer, MBIA.

As RenRe had previously announced ChannelRe's estimate of its fourth-quarter, unrealised mark-to-market losses contrinuted to an estimated loss for the last three months of last year that was greater than ChannelRe's entire shareholder value. For that reason, RenRe has accounted for its stake in ChannelRe as $0 at the end of 2007.

Gross premiums written for the fourth quarter were also down $72.7 million to $122.2 million over the prior quarter, driven largely by premium decreases in both the company reinsurance and individual risk segments.

The reinsurance firm also posted an identical figure for underwriting income of $177.3 million in the fourth quarter compared to the same period of 2006. And RenReexperienced $106.8 million of favourable development on prior year reserves in the fourth quarter of 2007, compared to $29.9 million in the same period of 2006.

Neill Currie, chief executive officer of RenaissanceRe said: "I am pleased to report strong full-year earnings, resulting in an increase in book value per common share of over 19 percent and an operating return on equity of 27 percent. These earnings are a result of a relatively low level of insured catastrophe losses for the full year, solid investment income and strong performance by our team.

"Although our premium volume was down, we are pleased with the results of our January 1 renewals and have constructed an attractive portfolio of business for 2008.

"We will maintain our underwriting discipline, focusing on profit rather than premium volume.

"This discipline has been part of our culture since our formation and we believe this strategy will continue to benefit our shareholders over the long term."

Report Card

Net income: $62.2 million compared to $201 million in 2006

Combined ratio: 47.3 percent compared to 53.4 percent in 2006

Gross premiums written: $122.2 million compared to $72.7 million in 2006