RenRe posts 2020 profit despite weather, pandemic impact – The Royal Gazette | Bermuda News, Business, Sports, Events, & Community

Log In

Reset Password
BERMUDA | RSS PODCAST

RenRe posts 2020 profit despite weather, pandemic impact

First Prev 1 2 Next Last

Bermudian-based reinsurer RenaissanceRe reported operating income of $14.6 million in 2020 despite the dramatic negative impact of weather-related losses and Covid-19 on results.

The company reported an operating loss of $77.1 million for the fourth quarter of the year despite strong investment gains of $340.5 million.

Net income for the full year was $731.5 million, or $15.31 per common share, compared to $712 million, or $16.29 per share. in 2019.

Kevin O’Donnell, president and chief executive officer of RenRe, said: “We begin 2021 looking forward and fully focused on executing our strategy into an attractive reinsurance market. The book of business that we wrote at the January 1 renewal is larger and more efficient, with increased expected profitability, and we anticipate further opportunities to improve it over the course of the year.

“While 2020 brought many challenges, I am particularly proud of the accomplishments of our employees and the continuity of our culture during a difficult year marked by record-breaking weather events and the stresses of the Covid-19 pandemic.”

For the full year, RenRe reported an overall underwriting loss of $76.5 million and a combined ratio of 101.9 per cent.

The company had underwriting income of $256.4 million and a combined ratio of 92.3 per cent in 2019.

RenRe reported that gross premiums written increased by $1 billion in 2020 to $5.8 billion, an increase of 20.8 per cent compared to 2019.

The total investment result for the year was a gain of $1.2 billion.

The company said its underwriting result in 2020 was principally impacted by weather-related large loss events and Covid-19 losses.

Weather-related large loss events resulted in a net negative impact on the underwriting result of $668.5 million.

RenRe said Covid-19 losses resulted in a net negative impact on the underwriting result of $351.9 million.

In the fourth quarter, the company had an underwriting loss of $151.7 million and a combined ratio of 114.7 per cent.

Kevin O'Donnell: President and CEO of RenRe

The company said the underwriting result in the fourth quarter was principally impacted by weather-related large losses and Covid-19 losses, both of which were primarily in the property segment.

RenaissanceRe logo

You must be registered or signed-in to post comment or to vote.

Published January 27, 2021 at 5:00 pm (Updated January 28, 2021 at 8:42 am)

RenRe posts 2020 profit despite weather, pandemic impact

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon