Bermuda reinsurer RenaissanceRe Holdings Ltd’s full-year profit rose 17.6 percent, as fewer catastrophes reduced claims.

The catastrophe reinsurance specialist, which set up in Bermuda 21 years ago, last night reported net income of $665.7 million for 2013, compared to $566 million in the previous year.

Many observers have noted that reinsurance rates have come under downward pressure, as a glut of alternative capital has come into the market, and RenRe CEO Kevin O’Donnell noted that the January reinsurance renewal season had been “particularly competitive”.

The company closed the year with a strong fourth-quarter profits, boosted by a reduction in loss estimates related to catastrophes that occurred in the past 12 months.

RenRe’s Catastrophe Reinsurance segment of reduces its ultimate net loss estimate for the June 2013 European floods by $13.8 million, while the net positive impact on from the review of losses tied to Superstorm Sandy, which battered the US in December 2012, was $32.8 million.

This factor helped RenRe post net income of $268.7 million for the quarter, more than six times the profit from the corresponding period in 2012 when results were impacted by Sandy.

The company wrote a little more business, with gross premiums rising to $1.6 billion in 2013, compared to $1.55 billion in 2012.

Operating income of $206.8 million, or $4.64 per share, doubled the $2.32 consensus estimate of analysts polled by Yahoo Finance.

Underwriting profitability improved as the combined ratio — the proportion of premiums spent on claims and expenses —

Mr O’Donnell said: “Although the most recent renewal was particularly competitive, our seasoned team was able to react quickly, access desirable business, and build an attractive portfolio of risks for our wholly owned and joint venture balance sheets. We enter 2014 with a strong balance sheet, some of the highest ratings in the industry, and a flexible operating platform from which to serve our clients and partners.”

RenRe achieved a 19.4 percent operating return on equity (ROE) and 19.7 percent growth in tangible book value per common share for 2013 plus the change in accumulated dividends.

For the quarter, annualised operating ROE was 24.3 percent and tangible book value per common share increased 8.1 percent.

“Both the quarter and year were driven by strong underwriting and investment performance, while we continued to invest in our future,” Mr O’Donnell added.

Corporate expenses almost doubled at RenRe in 2013 to $33.6 million compared to $17.2 million in 2012. The company said the increase was “primarily due to costs associated with senior management transition changes during the year”.

Net investment income for the fourth quarter more than doubled from the prior-year period to $78.7 million, and for the year net investment income was $208 million.

Book value per share ended 2013 at $80.29, up from $68.14 at the end of 2012.

Shares of RenRe rose 0.4 percent in New York trading yesterday, and rose a further 0.5 percent to $90.75 in after-hours trading.