RenaissanceRe Holdings last week reported record earnings per share for 2001 and said the company had started 2002 with an excellent renewal season.

The company reported operating earnings of $2.07 per common share for the last quarter of 2001, a 16 percent increase, and $7.03 per common share for all of 2001.

Chairman James N. Stanard said: "We turned in record earnings per share in fiscal 2001 and achieved an 18 percent return on equity, despite severe market challenges. In addition, we are off to a great start in 2002 with an extremely successful January 1 renewal season.

"For 2002 we again anticipate superior results, with an expected return on equity greater than 20 percent and projected managed cat premium growth of over 50 percent. Also, we expect our cat exposed commercial insurance and specialty reinsurance businesses to contribute in excess of $200 million in net written premium, for a growth rate of well over 100 percent.

"For these reasons, we are comfortable with increases of estimates to $10.50 to $11.00 for 2002 operating earnings per share."

Net operating income available to common shareholders for the fourth quarter of 2001, excluding realised investment gains and losses, increased 29 percent to $46.6 million, from $36.0 million in the fourth quarter of 2000.

Operating earnings per common share grew to $2.07 in the fourth quarter, from $1.79 per common share in the fourth quarter of the previous year.

Net income available to common shareholders rose 30 percent to $49.2 million, or $2.18 per common share in the fourth quarter, from $37.8 million or $1.87 per common share for the same quarter of 2000.

For the year ending December 31, 2001, net operating income available to common shareholders was $146.3 million or $7.03 per common share, compared to $134.4 million or $6.86 per common share for the same period in 2000.

Net income available to common shareholders for the year ending December 31, 2001, was $164.4 million or $7.90 per common share, compared to $127.2 million or $6.50 per common share for the same period in 2000.

Gross premiums written for the fourth quarter of 2001 were $57.5 million, compared to $52.4 million for the same quarter of 2000 and net premiums written for the fourth quarter of 2001 were $46.3 million, versus $39.6 million for the same quarter of 2000.

Net premiums earned for the fourth quarter of 2001 were $93.7 million, compared to $79.1 million for the same quarter of 2000 and the company says premiums written and earned in the fourth quarter of 2001 each benefited from $13.7 million of reinstatement premiums.

Net premiums written for the year ending December 31, 2001 were $339.5 million, compared to $293.3 million for the same period of 2000.

Total managed catastrophe premiums written, representing gross catastrophe premiums written by RenaissanceRe and related joint ventures, were $27.1 million for the fourth quarter, compared to $24.6 million for the same quarter of 2000 and for the fiscal year 2001 were $441.8 million, compared to $397.0 million in 2000.

Net investment income, excluding realised and unrealised investment gains and losses, for the fourth quarter of 2001 was $20.3 million, compared to $19.2 million for the same period in 2000 and for the twelve months of 2001 was $75.2 million, compared to $77.9 million for the same period in 2000.

The company experienced light catastrophe losses in the fourth quarter of 2001 with the company's claims and claim expenses incurred for the quarter of $28.7 million or 30.7 percent of net premiums earned compared to $36.1 million or 45.6 percent of net premiums earned in the same period last year.

The claims and claims expense ratio for the fourth quarter of 2001 also benefited from the additional reinstatement premiums in the quarter.

Claims and claim expenses incurred for the twelve months ended December 31, 2001 were $150 million or 45.0 percent of net premiums earned compared to $108.6 million or 40.6 percent of net premiums earned in 2000.

The increase in the claims and claim expenses incurred for the year primarily relates to the losses incurred by the Company during the third quarter related to the World Trade Center attack.

At year-end, the company decided to increase its valuation allowance for its deferred tax asset by $13.1 million, which is reflected as income tax expense.

The increase in the company's cash and investments from $1.4 billion as of September 30, 2001 to $2.2 billion as of December 31, 2001 is a result of $232 million raised from the issuance of 2.5 million common shares, $145 million received from the issuance of six million Series A Preference Shares, and $275 million of third party investment in the Company's most recent joint venture, DaVinci Reinsurance.

DaVinci is consolidated with Renaissance and the third party investment in DaVinci is reflected as minority interest.

Shareholders' equity attributable to common shareholders was $1,075 million at December 31, 2001, compared to $700.8 million at December 31, 2000.

Book value per common share at December 31, 2001 was $47.50 per common share, compared to $35.72 per common share at December 31, 2000.

The increase in shareholders' equity is partially attributable to the Company's sale of 2.5 million common shares during the fourth quarter of 2001.