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RenRe suffers $590m investment loss

RenaissanceRe Holdings Ltd, the Bermudian-based reinsurer, has reported a first-quarter net loss attributable to common shareholders of $394.4 million.

That compares with a net loss of $290.9 million in the first quarter of 2021.

Operating income attributable to common shareholders was $151.9 million compared with the first quarter 2021 figure of $4.4 million.

Underwriting income in the quarter was $200.3 million, which compares with a $35.7 million loss in the prior-year quarter.

The total investment result was a loss of $589.3 million, compared with a loss of $265.8 million in the prior-year quarter.

In the first quarter, the net negative impact of large weather-related losses was $102.3 million.

Losses related to Russia’s invasion of Ukraine resulted in a net negative impact of $24.9 million.

RenRe reported a combined ratio of 86.5 per cent, which included an impact of seven percentage points from the Q1 2022 weather-related large losses and 1.8 percentage points related to the Russia-Ukraine war.

Kevin J O’Donnell, president and chief executive officer, said: “We would like to recognise the great human tragedy of the ongoing Russia-Ukraine war and hope for rapid cessation of hostilities and peace in the region.

“There were also numerous natural catastrophes this quarter and we would like to extend our sympathies to all those impacted. Our purpose is to protect communities and enable prosperity and these events reinforce the importance of our role in helping our stakeholders manage many different forms of volatility.”

He added: “For our shareholders, we delivered a solid double-digit operating return while generating profits in both underwriting segments.

“Our balance sheet is strong and all three of our drivers of profit should benefit from improving market conditions: our underwriting from material rate increases across most lines as well as continuing growth in our casualty and specialty segment; our fee income business from the launch of our groundbreaking casualty and specialty joint venture, Fontana; and our investment income from rising interest rates.

“We believe that all of these factors will make our financial results increasingly resilient to natural catastrophe volatility and produce superior returns for our shareholders.”

RenRe CEO Kevin O'Donnell (File photograph)

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Published May 05, 2022 at 7:37 am (Updated May 05, 2022 at 7:37 am)

RenRe suffers $590m investment loss

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