RenaissanceRe reported a third-quarter net loss of $161.4 million as rising market yields drove down the value of its fixed-income investments.

The Bermudian-based reinsurer said the loss attributable to common shareholders compared with a profit of $907.7 million in the same period last year. The result amounted to a loss of $4.02 per diluted common share, compared with earnings of $19.40 a year earlier.

The company reported $879.8 million of net realised and unrealised investment losses, including $899.6 million of losses on fixed maturity-related investments. It said the latter were primarily due to increases in market yields during the quarter.

When yields rise, bond prices fall, causing a decline in value of fixed-income holdings during the quarter. Unrealised losses impact net income.

The company posted $426.1 million of underwriting income, down from $770.2 million in the prior-year period. RenRe’s overall combined ratio deteriorated to 79.7 per cent from 68.4 per cent in the third quarter of 2025. A ratio below 100 per cent indicates an underwriting profit.

The casualty and specialty segment recorded an underwriting loss of $134.5 million, compared with a loss of $21.3 million a year earlier. Its combined ratio rose to 110.6 per cent from 101.4 per cent.

The ratio included a 10.5 percentage point impact from large loss events in 2026, primarily the Middle East war and the Ras Laffan explosion.

Operating income available to common shareholders, which excludes certain investment gains and losses and other items, was $512.6 million, or $12.71 per diluted share. That compared with $733.7 million, or $15.62 per share, in the third quarter of 2025.

Net investment income remained broadly steady at $440.9 million, compared with $438.4 million a year earlier. RenaissanceRe said it benefited from higher average invested assets and a shift into higher-yielding investments.

The weighted average yield to maturity on its investment portfolio was 5.8 per cent at September 30, up from 4.8 per cent at the end of 2025.

Kevin O’Donnell, chief executive officer of RenRe, said the company had delivered “another strong quarter”, citing contributions from underwriting, fee income and net investment income.

He said the increase in yield on fixed-income securities would benefit the company as it made new investments.

“As we look forward to 2027, we have the underwriting expertise to serve our customers and construct an attractive portfolio, our industry-leading fee business supports durable fee income, and significantly higher new-money yields will compound net investment income over time,” Mr O’Donnell said.

“Taken together, these ‘Three Drivers of Profit’ provide a diversified earnings stream, and position us to deliver attractive returns to our shareholders through the cycle.”

The company’s annualised operating return on average common equity was 18.9 per cent, down from 28.2 per cent in the prior-year quarter. Its annualised return based on the net loss was negative 6 per cent.

In the property segment, gross premiums written fell by $104.5 million, or 14.3 per cent, to $628.8 million. The decrease was driven by rate reductions across both the catastrophe and other classes, the company said.

The property segment produced underwriting income of $560.6 million, down from $791.5 million a year earlier. Its combined ratio was 32.4 per cent, compared with 15.5 per cent in the prior-year period.

The segment benefited from favourable development of prior-year losses, including $178.2 million in its catastrophe class, primarily related to large loss events in 2021, 2022 and 2024. Favourable development occurs when an insurer or reinsurer determines that claims from earlier years are expected to cost less than previously estimated.

Gross premiums written in casualty and specialty fell 7.2 per cent to $1.48 billion, principally because RenaissanceRe reduced its exposure in general casualty and professional liability business. Net premiums written declined 20.5 per cent, also reflecting increased purchases of reinsurance protection.

Fee income was $81.7 million, down from $101.8 million a year earlier. The company said the decline in performance fees was driven primarily by higher current-year net losses in its DaVinci vehicle and lower favourable development from prior years in DaVinci and Upsilon.

RenaissanceRe repurchased $310.1 million of common shares during the quarter and a further $143.8 million between October 1 and October 23. Book value per common share was $259.61 at September 30, down 1.9 per cent during the quarter.

Mr O’Donnell said the company’s capital and liquidity position gave it flexibility to pursue underwriting opportunities while returning capital to shareholders.