RenRe cat losses near $1 billion, as GWP grew by $2 billion
Bermudian-based re/insurer RenaissanceRe Holdings Ltd has reported an annual net loss attributable to common shareholders of $73.4 million in 2021 as weather-related large losses took their toll.
Those losses contributed a $962.1 million net negative impact on net loss attributable to common shareholders in 2021, including $53.4 million in the fourth quarter, the company said.
They were primarily due to losses related to Hurricane Ida, Winter Storm Uri, flooding in northwestern Europe, other catastrophe events and aggregate losses.
The net loss in 2021 compared with net income of $731.5 million in 2020.
Operating income available to common shareholders was $81.6 million in 2021, compared with $14.6 million a year earlier.
The company grew gross premiums written by $2 billion, or 34.9 per cent, and net premiums written by $1.8 billion, or 45 per cent, in 2021.
Combined ratio for the year was 102.1 per cent, compared with 101.9 per cent in 2020.
RenRe reported fourth-quarter net income available to common shareholders of $210.9 million and operating income available to common shareholders of $213.7 million.
For the same period in 2020, net income was $189.9 million while RenRe had an operating loss of $77.1 million.
Combined ratio in the quarter was 79.4 per cent, compared with 114.7 per cent for the same period in 2020.
Kevin J. O’Donnell, president and chief executive officer, said: “The fourth quarter was a solid finish to a difficult year. We reported a return on average common equity of over 14 per cent for the quarter driven by record profitability in our casualty and specialty segment and strong results in our property segment.
“For the full year, we earned a modest operating profit despite catastrophe losses of nearly $1 billion. At the same time, we exercised leadership in the market, growing net premiums written by 45 per cent while simultaneously returning over $1 billion in capital to shareholders.”
He added: “At the January 2022 renewal, our Capital Partners team once again led the industry, raising $500 million in DaVinci to grow in an improving environment and further optimise our property segment.
“In addition, we continued to expand our casualty and specialty business in an attractive market, and as a result have built a stronger, more diversified and efficient underwriting portfolio that I am confident will produce superior returns for our shareholders in 2022.”