RenaissanceRe Holdings Ltd. yesterday reported that its net operating income for the first three months of the year jumped 46 percent - to $126.9 million from $86.6 million.

Profit rose 94 percent to $151.3 million, or $2.14 per common share in the quarter, from $78.1 million or $1.12 per common share for the same quarter of 2002 after realised investment gains of $24.4 million and $0.7 million in the first quarters of 2003 and 2002, respectively were included.

“We are very pleased with the performance of our business across all categories,” said chairman and chief executive officer James Stanard.

“In particular, the 25 percent increase in Managed Catastrophe Premium reflects the ongoing strength of our market presence in our traditional core business.”

RenRe was founded in 1993 as a catastrophe reinsurer and has been one of the strongest Bermuda insurance companies since then.

Mr. Stanard said the company expected to deliver another year of growth in all of its businesses, but said it expected property catastrophe prices to stabilise after soaring since the September 11 terrorist attacks.

“Significant premium from large transactions produced growth in the first quarter beyond our original expectations, and may create some variability in premium growth rates going forward,” he added.

“For the 2003, first quarter, we also estimate that we experienced approximately $25 million, or $0.35 per common share, of benefit from the low level of catastrophe loss activity compared to results from a period of normalised activity.”

Gross premiums written for the first quarter of 2003 increased by 49 percent to $685.2 million, compared to $460.8 million for the same quarter of 2002. Net premiums written for the first quarter of 2003 were $590.4 million, versus $379.1 million for the same quarter of 2002.

Net premiums earned for the first quarter of 2003 were $263.5 million, compared to $150.3 million for the same quarter of 2002.

“Those premiums include $126.5 million of gross written premiums, $126.5 million of net written premiums and $49.1 million of net premiums earned by the company's consolidated joint venture, DaVinci Re during the first quarter of 2003, compared to $95.3 million of gross written premiums, $95.3 million of net written premiums and $23.6 million of net premiums earned by DaVinci Re during the first quarter of 2002. the company said.

The company and its related businesses recorded $464.7 million in total managed catastrophe premiums written for the first quarter, compared to $370.4 million for the same quarter of 2002.

Net investment income, excluding realised and unrealised investment gains and losses, for the first quarter of 2003 increased to $28.2 million, compared to $22.8 million for the same period in 2002. This increase was driven by the increase in invested assets resulting both from strong operating cash flows as well as the $196 million of net proceeds from the Perpetual Preferred Stock and Senior Notes sold in the first quarter.

RenaissanceRe shares closed up $2.94 to $45 on the New York Stock Exchange. The company released its results after the close of trading.