RenaissanceRe reported its net income fell 27 percent in the first quarter, hurt by a drop in investment income and a decline in written policies.

The Bermuda-based company said net income available to common shareholders fell to $137.2 million, or $2.05 a share, compared with $190.8 million, or $2.63 a share, in the year-ago period.

The results, released yesterday, also showed first-quarter operating income available to common shareholders was $186.7 million, or $2.21 a share. This was a penny more than estimates from analysts. The figure was down from $190.8 million or $2.57 a share in during the same period in 2007.

RenRe chief executive officer Neil Currie said: "I am pleased to report another solid quarter with an annualised operating return on equity of more than 21 percent and almost three percent growth in book value per share, inclusive of the impact of share buybacks. We continue to actively manage capital and returned over $239 million to our shareholders through share buybacks during the quarter, bringing our total purchases to date to over $460 million since the start of 2007."

Mr. Currie added: "We remain disciplined in our underwriting given current market conditions, while continuing to build out our franchise and capabilities through strategic hires, additional modelling capabilities and strategic new investments. These initiatives further enhance our ability to react quickly and grow our portfolio when the right opportunities present themselves."

Gross premiums written for the first quarter of 2008 were $527.0 million, compared to $632.7 million for the first quarter of 2007. The decrease in gross premiums written was primarily driven by a reduction in business written due to softening market conditions in the company's reinsurance and individual risk segments, including commercial and personal property lines, compared to the first quarter of 2007.

The company generated $150.2 million of underwriting income and had a combined ratio of 51.4 percent in the first quarter of 2008, compared to $124.4 million of underwriting income and a 65.6 percent combined ratio in the first quarter of 2007. This was mainly driven by lower insured catastrophic events compared to the first quarter of 2007, which was impacted by European windstorm Kyrill.

Net investment income for the first quarter of 2008 was $52.5 million, compared to $108.0 million for the same quarter in 2007 as a result of lower returns in the company's investment portfolio.