RenRe reports $47.8m profit
RenaissanceRe Holdings Ltd has reported a profit of $47.8 million, or 94 cents per diluted common share, in the third quarter. This is up from $36.7 million, or 83 cents per share, for the same period a year ago.
It had an operating loss was $131.7 million, compared to operating income of $32.7 million, in the third quarter of 2019.
Hurricane Laura, Hurricane Sally, and wildfires in California, Oregon and Washington had a $321.7 million negative impact.
Kevin O’Donnell, president and chief executive officer of Bermudian-based RenRe, said: “Another active quarter further confirms the critical role RenaissanceRe plays in helping communities rebuild. Our results for the third quarter reflect the climate-change driven frequency of catastrophic events impacting the world, but these are risks that we understand well and are paid to take.
“As we approach the January renewal, I am confident we will successfully execute our strategy and profitably deploy significant capital by helping our customers solve their biggest problems.”
The company reported an annualised return on average common equity of 2.8 per cent and an annualised operating return on average common equity of negative 7.7 per cent in the third quarter of 2020, compared to 2.8 per cent and 2.5 per cent, respectively, a year ago.
RenRe’s gross premiums written increased by $282 million, or 32.7 per cent, to $1.1 billion, year-on-year for the third quarter. This was driven by an increase of $168.6 million in the casualty and specialty segment, and an increase of $113.4 million in the property segment.
There was an underwriting loss of $206.1 million and a combined ratio of 120.6 per cent in the quarter, which compared to an underwriting loss of $3.4 million and a combined ratio of 100.4 per cent a year ago.
However, RenRe had a total investment result of $307.8 million, generating an annualised total investment return of 6.2 per cent.
RenRe’s book value per common share increased 86 cents, or 0.6 per cent, to $135.13.