RenaissanceRe generated net income available to common shareholders of $654.2 million in the second quarter, with the Bermuda-based reinsurer citing strong underwriting performance, higher investment income and continued capital returns to shareholders.

The company reported an annualised return on average common equity of 24 per cent for the three months to June 30, while operating return on average common equity was 20.1 per cent. Book value per common share increased 5.7 per cent during the quarter to $264.77.

The reinsurer posted an underwriting profit of $599.1 million and a combined ratio of 72.8 per cent — reflecting the proportion of premium income spent on claims and expenses — an improvement from 75.1 per cent a year earlier, reflecting low catastrophe losses and favourable development on prior-year claims.

Net investment income increased 4.7 per cent year on year to $432.5 million, while fee income totalled $83 million.

Net income, however, was lower than the $826.5 million reported in the second quarter of 2025, largely because investment gains were lower than in the comparable period despite stronger operating earnings per share.

Operating income available to common shareholders fell to $547.8 million from $594.6 million, although operating income per diluted share rose to $12.92 from $12.29.

Kevin O'Donnell, president and chief executive officer, said all three of the company's “drivers of profit” — underwriting, fee income and net investment income — had contributed to the result.

“We delivered strong results in the second quarter, growing book value per common share by 5.7 per cent to $264.77, with annualised return on average common equity of 24.0 per cent and annualised operating return on average common equity of 20.1 per cent,” Mr O’Donnell said.

“Each of our three drivers of profit — underwriting, fee and net investment income — contributed meaningfully to this outcome, with a diversified income base that supports enhanced earnings stability.”

RenaissanceRe's property segment remained a standout performer, producing a combined ratio of 27.1 per cent and underwriting income of $642.7 million. The result was supported by low catastrophe losses and favourable reserve development.

Gross property premiums written declined 10.4 per cent, reflecting lower catastrophe pricing, although the company said this was partly offset by growth opportunities in other property business.

The casualty and specialty business recorded an underwriting loss of $43.6 million and a combined ratio of 103.3 per cent after adverse reserve development related in part to the Baltimore bridge collapse, although the company said current-year large losses were lower than a year earlier.

RenaissanceRe also repurchasing $350 million of common shares during the quarter.

Since launching its buyback programme two years ago, it has repurchased approximately $3 billion of stock, representing about 22 per cent of its starting share count, and bought back a further $82.9 million of shares after the quarter ended.

• This story was generated by machine and edited by The Royal Gazette newsroom