RenRe earnings beat estimates
RenaissanceRe Holdings Ltd made a profit of $273.7 million, or $6.43 per diluted common share, in the first quarter. That was up from $56.7 million, or $1.42 per share, for the same period in 2018.
Operating income was $154.4 million, or $3.60 per share, which beat the $3.17 consensus estimate of analysts tracked by Yahoo Finance. It was also an improvement on the $122.1 million, or $3.07 per share, reported for the same period last year
On March 22, the company completed its purchase of Tokio Millennium Re AG, Tokio Millennium Re (UK) Ltd, and subsidiaries. The operating activities of those companies for the nine days between the acquisition date to the end of the first quarter were not material to the earnings period, and were not included in RenRe's first quarter report.
Kevin O'Donnell, chief executive officer of RenaissanceRe, said: “Our strong first quarter was distinguished by solid profits, material growth and strategic advancement. We achieved an annualised operating return on average common equity of 13.3 per cent and growth in tangible book value per common share plus accumulated dividends of 7 per cent.
“At the same time, we grew our business materially by leveraging into an improving rate environment. The purchase of Tokio Millennium Re advanced our strategy, and we have moved from planning to execution on what we are optimistic will be a quick and successful integration.”
Underwriting income was $154.1 million. The combined ratio edged up to 72 per cent, from 70.6 per cent a year ago.
Gross premiums written totalled $1.6 billion, up $404.6 million year-on-year, mainly driven by a $325 million increase in the property division.