Kevin O’Donnell, the chief executive of RenaissanceRe, said that profitability often now takes precedence over size in the insurance sector.

“We’re always willing to shrink our top line,” Mr O’Donnell said during a “seaside chat” with Lee Harris of the Financial Times at the PwC Insurance Summit yesterday, held at the Hamilton Princess & Beach Club.

“Our focus is 100 per cent on margin preservation over growth. That’s the Nirvana state right now.”

Mr O’Donnell explained that for his company, growing tangible value per share has become the main metric, sometimes even at the expense of revenue growth.

“If an insurance company or reinsurance company tries to grow by x per cent every year, in every market, it’s probably not the optimal strategy,” he said.

This approach is emerging as market cycles become increasingly volatile, with rising political and regulatory pressures. “There is a certain permanence to what the traditional delivery model is,” he said, “but I do think what we’re seeing now is going to be competitive to the traditional delivery model.”

Rather than chasing expansion for its own sake, the Bermudian-based reinsurer is focusing on protecting margins and being responsive to market trends.

“If rates went up 10 per cent less in 2023, we would have done exactly the same. Being thoughtful and focusing less on rate change and more on rate accuracy will lead to a more rational market,” he said.

In 2023, RenaissanceRe had a combined ratio of 78 per cent. In 2024, the combined ratio rose to about 83.9 per cent and the company repurchased roughly $677.6 million of its own shares, signalling, as Mr O’Donnell said, a focus on value per share rather than simply chasing revenue.