Renaissance Re has suffered a $116 million drop in profit for the third quarter, partially due to a $36 million charge to reflect anticipated third quarter loss at ChannelRe Holdings driven by unrealised mark-to-market losses.

The company's gross written premiums dropped just under $50 million to $208.8 million and its combined ratio shot up from 36.5 percent a year ago to 60.6 percent.

Chief executive officer Neill Currie, said: "We generated solid underwriting profits and strong investment returns during the third quarter. Financial results were positively affected by the lack of hurricanes making landfall in the US, and were negatively impacted by unrealised mark-to-market losses in ChannelRe, flood losses in the UK, and claims reported in various lines of our specialty reinsurance book.

"Our focus is on growing book value per share over the long term. So far this year, book value per share has increased by 18 percent and we have generated an annualised operating return on equity in excess of 27 percent."

The company made a third quarter profit of $143.9 million compared to $259.7 million over the same period in 2006.

Mr. Currie added: "I'm very pleased with the quality of the portfolio of insurance and reinsurance business our team has constructed, which reflects our strong underwriting discipline. We look forward to continuing to serve our clients, brokers and joint venture partners during the upcoming renewal season."