[July 29, 2014] |
|
RenaissanceRe Reports Net Income of $120.8 Million for the Second Quarter of 2014 or $2.95 Per Diluted Common Share; Quarterly Operating Income of $93.6 Million or $2.28 Per Diluted Common Share
PEMBROKE, Bermuda --(Business Wire)--
RenaissanceRe Holdings Ltd. (NYSE: RNR) today reported net income
available to RenaissanceRe common shareholders of $120.8 million, or
$2.95 per diluted common share, in the second quarter of 2014, compared
to $26.8 million, or $0.60 per diluted common share, in the second
quarter of 2013. Operating income available to RenaissanceRe common
shareholders was $93.6 million, or $2.28 per diluted common share, for
the second quarter of 2014, compared to $96.4 million or $2.17,
respectively, in the second quarter of 2013. The Company reported an
annualized return on average common equity of 14.2% and an annualized
operating return on average common equity of 11.0% in the second quarter
of 2014, compared to 3.4% and 12.2%, respectively, in the second quarter
of 2013. Book value per common share increased $2.49, or 3.0%, in the
second quarter of 2014 to $84.79, compared to a 0.4% increase in the
second quarter of 2013. Tangible book value per common share plus
accumulated dividends increased 3.5% in the second quarter of 2014,
compared to a 0.8% increase in the second quarter of 2013.
Kevin J. O'Donnell, CEO, commented: "In the second quarter, we generated
$120.8 million of net income, an annualized operating ROE of 11% and
3.5% growth in tangible book value per share, plus accumulated
dividends. Our team executed well in tough market conditions and I am
pleased with the book of business we constructed."
Mr. O'Donnell continued: "We believe that over the long-term the proper
assessment of risk and disciplined underwriting will continue to be key
differentiators in our industry. Our strategy of matching
well-structured risk with efficient capital across cycles has been the
basis for our success for over two decades. We intend to continue this
strategy going forward, providing customers and capital providers with a
suite of innovative and flexible solutions along with industry-leading
underwriting expertise and customer service."
SECOND QUARTER 2014 HIGHLIGHTS
-
The Company generated underwriting income of $99.7 million and a
combined ratio of 61.7% in the second quarter of 2014, compared to
$113.4 million and 61.2% in the second quarter of 2013, respectively.
The $13.7 million decrease in underwriting income was principally
driven by a $31.5 million decrease in net premiums earned, primarily
as a result of reduced gross premiums written, as discussed below, and
partially offset by a $22.6 million decrease in net claims and claim
expenses.
-
Gross premiums written of $511.5 million decreased $191.7 million, or
27.3%, in the second quarter of 2014, compared to the second quarter
of 2013, with the decrease principally driven by the Company's
Catastrophe Reinsurance segment, which experienced a decrease of
$188.8 million, or 32.7%, driven by the continued softening of market
conditions, including reduced risk-adjusted pricing for the second
quarter renewals. Managed catastrophe premiums written were $437.9
million, a 28.0% decrease, compared to the second quarter of 2013,
excluding the impact of $9.8 million of reinstatement premiums written
in the second quarter of 2013. For the first six months of 2014,
managed catastrophe premiums, net of reinstatement premiums written,
totaled $933.9 million, a decrease of $204.2 million, or 17.9%,
compared to the first six months of 2013, excluding the impact of $9.8
million of reinstatement premiums written in the first six months of
2013.
-
The total investment result in the second quarter of 2014 was positive
$61.6 million, which includes the sum of net investment income, net
realized and unrealized gains on investments and the change in net
unrealized gains on fixed maturity investments available for sale,
compared to negative $44.6 million in the second quarter of 2013. The
total investment result was primarily driven by the improved returns
in the Company's fixed maturity investment portfolio as a result of
the flattening of the yield curve and higher average invested assets
during the second quarter of 2014, compared to the second quarter of
2013.
-
Net income attributable to noncontrolling interests in the second
quarter of 2014 was $36.1 million and increased from $14.0 million in
the second quarter of 2013, principally due to an increase in the
profitability of DaVinciRe Holdings Ltd. ("DaVinciRe"), as well as a
decrease in the Company's ownership in DaVinciRe to 26.5% at June 30,
2014, compared to 32.9% at June 30, 2013.
-
During the second quarter of 2014, the Company repurchased an
aggregate of 385 thousand common shares in open market transactions at
an aggregate cost of $37.5 million and at an average share price of
$97.29.
Underwriting Results by Segment
Catastrophe Reinsurance Segment
Gross premiums written in the Catastrophe Reinsurance segment were
$388.1 million in the second quarter of 2014, a decrease of $188.8
million compared to the second quarter of 2013, primarily driven by the
continued softening of market conditions, including reduced
risk-adjusted pricing for the second quarter renewals, the Company's
underwriting discipline given prevailing terms and conditions, and the
absence of $9.8 million in reinstatement premiums written in the second
quarter of 2013, which did not reoccur in the second quarter of 2014. In
addition, gross premiums written in the Catastrophe Reinsurance segment
in the second quarter of 2014 were impacted by a decrease of $28.2
million in gross premiums written related to one quota share deal and a
$27.0 million multi-year transaction that was booked in the second
quarter of 2013, which did not reoccur in the second quarter of 2014.
Managed catastrophe premiums decreased $170.5 million, or 28.0%, to
$437.9 million in the second quarter of 2014, compared to $608.3 million
in the second quarter of 2013, driven by the items noted above, and
excluding the impact of $9.8 million of reinstatement premiums written
in the second quarter of 2013.
For the first six months of 2014, managed catastrophe premiums totaled
$933.9 million, a decrease of $204.2 million, or 17.9%, compared to the
first six months of 2013, net of $9.8 million of reinstatement premiums
written in the first six months of 2013, and principally driven by the
continued softening of market conditions, including reduced
risk-adjusted pricing for the second quarter renewals and decreased
signings on certain specific quota share deals.
The Catastrophe Reinsurance segment generated underwriting income of
$82.4 million and a combined ratio of 48.2% in the second quarter of
2014, compared to $109.8 million and 45.2% in the second quarter of
2013, respectively. The $27.4 million decrease in underwriting income in
the second quarter of 2014, compared to the second quarter of 2013, was
driven by a $41.3 million decrease in net premiums earned, driven by the
decrease in gross premiums written, noted above, combined with a $16.7
million decrease in favorable development on prior accident years net
claims and claim expenses, and partially offset by a $32.9 million
decrease in current accident year net claims and claim expenses.
Included in the Catastrophe Reinsurance segment's current accident year
net claims and claim expenses in the second quarter of 2014 of $38.5
million are a number of relatively small U.S. wind and thunderstorm
events, compared to the second quarter of 2013, which experienced $71.4
million of current accident year net claims and claim expenses and
included $26.4 million and $25.2 million related to the 2013 European
Floods and May 2013 U.S. Tornadoes, respectively.
The Catastrophe Reinsurance segment experienced $1.7 million of
favorable development on prior accident years net claims and claim
expenses in the second quarter of 2014, compared to $18.5 million in the
second quarter of 2013.
Specialty Reinsurance Segment
Gross premiums written in the Specialty Reinsurance segment were $51.6
million in the second quarter of 2014, a decrease of $7.0 million, or
11.9%, compared to the second quarter of 2013.
Gross premiums written in the Specialty Reinsurance segment were $205.8
million in the first six months of 2014, an increase of $65.0 million,
or 46.1%, compared to the first six months of 2013, driven primarily by
increases in certain financial liability related lines of business. Our
specialty reinsurance premiums are prone to significant volatility as
this business can be influenced by a small number of relatively large
transactions.
The Specialty Reinsurance segment generated underwriting income of $11.3
million and a combined ratio of 78.9% in the second quarter of 2014,
compared to $7.1 million and 85.6% in the second quarter of 2013,
respectively. The underwriting expense ratio in the Specialty
Reinsurance segment increased 7.6 percentage points to 41.4% in the
second quarter of 2014, compared to 33.8% in the second quarter of 2013,
primarily due to the relative increase in the percentage of quota share
reinsurance premiums, compared to excess of loss reinsurance premiums,
as a percentage of total gross premiums written within the Specialty
Reinsurance segment, as quota share reinsurance premiums typically
carries a higher acquisition expense ratio, compared to excess of loss
reinsurance.
The Specialty Reinsurance segment experienced $5.4 million of favorable
development on prior years reserves in the second quarter of 2014,
compared to $5.4 million in the second quarter of 2013, principally due
to reported claims activity coming in lower than expected on prior
accident years events.
Lloyd's Segment
Gross premiums written in the Lloyd's segment were $71.9 million in the
second quarter of 2014, an increase of $3.1 million, or 4.6%, compared
to the second quarter of 2013, primarily due to Syndicate 1458
continuing to grow organically in the Lloyd's marketplace, principally
in its property lines of business, notwithstanding challenging market
conditions.
Gross premiums written in the Lloyd's segment increased $12.1 million,
or 8.5%, to $155.2 million in the first six months of 2014, compared to
$143.1 million in the first six months of 2013, primarily due to
Syndicate 1458 continuing to grow organically in the Lloyd's
marketplace, principally in its property lines of business,
notwithstanding challenging market conditions.
The Lloyd's segment incurred an underwriting loss of $0.6 million and a
combined ratio of 101.3% in the second quarter of 2014, compared to an
underwriting loss of $3.5 million and a combined ratio of 108.4% in the
second quarter of 2013, respectively. Net premiums earned increased $5.7
million primarily as a result of the increase in gross premiums written
noted above.
The favorable development of prior accident years net claims and claim
expenses within the Lloyd's segment of $9.4 million during the second
quarter of 2014, compared to $3.0 million in the second quarter of 2013,
was principally due to reported claims activity coming in lower than
expected on prior accident years events.
Other Items
-
Effective July 1, 2014, the Company sold a portion of its shares of
DaVinciRe to an existing third party shareholder. The Company sold
these shares for $38.9 million. The Company's ownership in DaVinciRe
was 26.5% at June 30, 2014 and, subsequent to the above transaction,
its ownership interest in DaVinciRe decreased to 23.4% effective
July 1, 2014.
-
During the second quarter of 2014, the Company recognized the release
of $6.2 million of profit commissions in its Other category as a
result of the commutation of several quota share agreements from its
former Insurance segment.
This Press Release includes certain non-GAAP financial measures
including "operating income available to RenaissanceRe common
shareholders", "operating income available to RenaissanceRe common
shareholders per common share - diluted", "operating return on average
common equity - annualized", "managed catastrophe premiums", "tangible
book value per common share" and "tangible book value per common share
plus accumulated dividends." A reconciliation of such measures to the
most comparable GAAP figures in accordance with Regulation G is
presented in the attached supplemental financial data.
Please refer to the "Investor Information - Financial Reports -
Financial Supplements" section of the Company's website at www.renre.com
for a copy of the Financial Supplement which includes additional
information on the Company's financial performance.
RenaissanceRe Holdings Ltd. will host a conference call on Wednesday,
July 30, 2014 at 10:00 am (ET) to discuss this release. Live broadcast
of the conference call will be available through the "Investor
Information - Company Webcasts" section of RenaissanceRe's website at www.renre.com.
RenaissanceRe Holdings Ltd. is a global provider of reinsurance and
insurance. The Company's business consists of three reportable segments:
(1) Catastrophe Reinsurance, which includes catastrophe reinsurance and
certain property catastrophe joint ventures managed by the Company's
ventures unit; (2) Specialty Reinsurance, which includes specialty
reinsurance and certain specialty joint ventures managed by the
Company's ventures unit; and (3) Lloyd's, which includes reinsurance and
insurance business written through RenaissanceRe Syndicate 1458.
Cautionary Statement under "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995: Statements made in this
earnings release contain information about the Company's future business
prospects. These statements may be considered "forward-looking." These
statements are subject to risks and uncertainties that could cause
actual results to differ materially from those set forth in or implied
by such forward-looking statements. For further information regarding
cautionary statements and factors affecting future results, please refer
to RenaissanceRe Holdings Ltd.'s filings with the U.S. Securities and
Exchange Commission, including its Annual Reports on Form 10-K and its
Quarterly Reports on Form 10-Q.
|
RenaissanceRe Holdings Ltd.
|
Summary Consolidated Statements of Operations
|
(in thousands of United States Dollars, except per share amounts and
percentages)
|
(Unaudited)
|
|
|
|
Three months ended
|
|
Six months ended
|
|
|
June 30, 2014
|
|
June 30, 2013
|
|
June 30, 2014
|
|
June 30, 2013
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written
|
|
$
|
511,540
|
|
|
$
|
703,223
|
|
|
$
|
1,216,800
|
|
|
$
|
1,338,641
|
|
Net premiums written
|
|
$
|
346,407
|
|
|
$
|
559,109
|
|
|
$
|
796,754
|
|
|
$
|
995,922
|
|
Increase in unearned premiums
|
|
(85,991
|
)
|
|
(267,220
|
)
|
|
(249,804
|
)
|
|
(432,778
|
)
|
Net premiums earned
|
|
260,416
|
|
|
291,889
|
|
|
546,950
|
|
|
563,144
|
|
Net investment income
|
|
34,541
|
|
|
26,163
|
|
|
73,489
|
|
|
69,365
|
|
Net foreign exchange gains (losses)
|
|
2,392
|
|
|
(932
|
)
|
|
1,331
|
|
|
(318
|
)
|
Equity in earnings of other ventures
|
|
7,232
|
|
|
3,772
|
|
|
11,431
|
|
|
9,607
|
|
Other loss
|
|
(535
|
)
|
|
(1,128
|
)
|
|
(473
|
)
|
|
(2,837
|
)
|
Net realized and unrealized gains (losses) on investments
|
|
27,128
|
|
|
(69,529
|
)
|
|
42,055
|
|
|
(55,260
|
)
|
Total revenues
|
|
331,174
|
|
|
250,235
|
|
|
674,783
|
|
|
583,701
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expenses incurred
|
|
81,388
|
|
|
103,962
|
|
|
140,303
|
|
|
131,213
|
|
Acquisition expenses
|
|
33,477
|
|
|
31,767
|
|
|
67,177
|
|
|
56,776
|
|
Operational expenses
|
|
45,841
|
|
|
42,789
|
|
|
88,465
|
|
|
88,775
|
|
Corporate expenses
|
|
3,954
|
|
|
21,529
|
|
|
8,499
|
|
|
26,011
|
|
Interest expense
|
|
4,292
|
|
|
4,300
|
|
|
8,585
|
|
|
9,334
|
|
Total expenses
|
|
168,952
|
|
|
204,347
|
|
|
313,029
|
|
|
312,109
|
|
Income from continuing operations before taxes
|
|
162,222
|
|
|
45,888
|
|
|
361,754
|
|
|
271,592
|
|
Income tax benefit (expense)
|
|
204
|
|
|
(11
|
)
|
|
38
|
|
|
(133
|
)
|
Income from continuing operations
|
|
162,426
|
|
|
45,877
|
|
|
361,792
|
|
|
271,459
|
|
Income from discontinued operations
|
|
-
|
|
|
2,427
|
|
|
-
|
|
|
12,201
|
|
Net income
|
|
162,426
|
|
|
48,304
|
|
|
361,792
|
|
|
283,660
|
|
Net income attributable to noncontrolling interests
|
|
(36,078
|
)
|
|
(14,015
|
)
|
|
(78,846
|
)
|
|
(52,622
|
)
|
Net income available to RenaissanceRe
|
|
126,348
|
|
|
34,289
|
|
|
282,946
|
|
|
231,038
|
|
Dividends on preference shares
|
|
(5,596
|
)
|
|
(7,483
|
)
|
|
(11,191
|
)
|
|
(13,758
|
)
|
Net income available to RenaissanceRe common shareholders
|
|
$
|
120,752
|
|
|
$
|
26,806
|
|
|
$
|
271,755
|
|
|
$
|
217,280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations available to RenaissanceRe common
shareholders per common share - basic
|
|
$
|
3.00
|
|
|
$
|
0.55
|
|
|
$
|
6.62
|
|
|
$
|
4.65
|
|
Income from discontinued operations available to RenaissanceRe common
shareholders per common share - basic
|
|
-
|
|
|
0.06
|
|
|
-
|
|
|
0.28
|
|
Net income available to RenaissanceRe common shareholders per common
share - basic
|
|
$
|
3.00
|
|
|
$
|
0.61
|
|
|
$
|
6.62
|
|
|
$
|
4.93
|
|
Income from continuing operations available to RenaissanceRe common
shareholders per common share - diluted
|
|
$
|
2.95
|
|
|
$
|
0.55
|
|
|
$
|
6.52
|
|
|
$
|
4.55
|
|
Income from discontinued operations available to RenaissanceRe common
shareholders per common share - diluted
|
|
-
|
|
|
0.05
|
|
|
-
|
|
|
0.28
|
|
Net income available to RenaissanceRe common shareholders per common
share - diluted
|
|
$
|
2.95
|
|
|
$
|
0.60
|
|
|
$
|
6.52
|
|
|
$
|
4.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding - basic
|
|
39,736
|
|
|
43,372
|
|
|
40,487
|
|
|
43,453
|
|
Average shares outstanding - diluted
|
|
40,395
|
|
|
44,243
|
|
|
41,149
|
|
|
44,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expense ratio
|
|
31.3
|
%
|
|
35.6
|
%
|
|
25.7
|
%
|
|
23.3
|
%
|
Underwriting expense ratio
|
|
30.4
|
%
|
|
25.6
|
%
|
|
28.4
|
%
|
|
25.9
|
%
|
Combined ratio
|
|
61.7
|
%
|
|
61.2
|
%
|
|
54.1
|
%
|
|
49.2
|
%
|
Operating income available to RenaissanceRe common shareholders per
common share - diluted (1)
|
|
$
|
2.28
|
|
|
$
|
2.17
|
|
|
$
|
5.50
|
|
|
$
|
6.08
|
|
Operating return on average common equity - annualized (1)
|
|
11.0
|
%
|
|
12.2
|
%
|
|
13.4
|
%
|
|
17.3
|
%
|
(1) See Comments on Regulation G for a reconciliation of non-GAAP
financial measures.
|
RenaissanceRe Holdings Ltd.
|
Summary Consolidated Balance Sheets
|
(in thousands of United States Dollars, except per share amounts)
|
|
|
|
|
|
|
|
|
June 30, 2014
|
|
December 31, 2013
|
Assets
|
|
(Unaudited)
|
|
(Audited)
|
Fixed maturity investments trading, at fair value
|
|
$
|
4,841,609
|
|
|
$
|
4,809,036
|
Fixed maturity investments available for sale, at fair value
|
|
29,219
|
|
|
34,241
|
Total fixed maturity investments, at fair value
|
|
4,870,828
|
|
|
4,843,277
|
Short term investments, at fair value
|
|
957,698
|
|
|
1,044,779
|
Equity investments trading, at fair value
|
|
254,408
|
|
|
254,776
|
Other investments, at fair value
|
|
513,614
|
|
|
573,264
|
Investments in other ventures, under equity method
|
|
110,354
|
|
|
105,616
|
Total investments
|
|
6,706,902
|
|
|
6,821,712
|
Cash and cash equivalents
|
|
294,457
|
|
|
408,032
|
Premiums receivable
|
|
837,116
|
|
|
474,087
|
Prepaid reinsurance premiums
|
|
267,963
|
|
|
66,132
|
Reinsurance recoverable
|
|
85,115
|
|
|
101,025
|
Accrued investment income
|
|
28,019
|
|
|
34,065
|
Deferred acquisition costs
|
|
140,765
|
|
|
81,684
|
Receivable for investments sold
|
|
58,205
|
|
|
75,845
|
Other assets
|
|
89,076
|
|
|
108,438
|
Goodwill and other intangibles
|
|
8,007
|
|
|
8,111
|
Total assets
|
|
$
|
8,515,625
|
|
|
$
|
8,179,131
|
Liabilities, Noncontrolling Interests and Shareholders' Equity
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Reserve for claims and claim expenses
|
|
$
|
1,552,618
|
|
|
$
|
1,563,730
|
Unearned premiums
|
|
929,523
|
|
|
477,888
|
Debt
|
|
249,476
|
|
|
249,430
|
Reinsurance balances payable
|
|
558,185
|
|
|
293,022
|
Payable for investments purchased
|
|
201,340
|
|
|
193,221
|
Other liabilities
|
|
164,650
|
|
|
397,596
|
Total liabilities
|
|
3,655,792
|
|
|
3,174,887
|
Redeemable noncontrolling interest
|
|
1,023,892
|
|
|
1,099,860
|
Shareholders' Equity
|
|
|
|
|
|
Preference shares
|
|
400,000
|
|
|
400,000
|
Common shares
|
|
40,523
|
|
|
43,646
|
Accumulated other comprehensive income
|
|
3,918
|
|
|
4,131
|
Retained earnings
|
|
3,391,500
|
|
|
3,456,607
|
Total shareholders' equity attributable to RenaissanceRe
|
|
3,835,941
|
|
|
3,904,384
|
Total liabilities, noncontrolling interests and shareholders'
equity
|
|
$
|
8,515,625
|
|
|
$
|
8,179,131
|
|
|
|
|
|
|
Book value per common share
|
|
$
|
84.79
|
|
|
$
|
80.29
|
|
|
|
|
|
|
|
|
|
RenaissanceRe Holdings Ltd.
|
Supplemental Financial Data - Segment Information
|
(in thousands of United States Dollars, except percentages)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2014
|
|
|
Catastrophe Reinsurance
|
|
Specialty Reinsurance
|
|
Lloyd's
|
|
Other
|
|
Total
|
Gross premiums written
|
|
$
|
388,083
|
|
|
$
|
51,554
|
|
|
$
|
71,903
|
|
|
$
|
-
|
|
|
$
|
511,540
|
|
Net premiums written
|
|
$
|
233,698
|
|
|
$
|
46,254
|
|
|
$
|
66,452
|
|
|
$
|
3
|
|
|
$
|
346,407
|
|
Net premiums earned
|
|
$
|
159,152
|
|
|
$
|
53,588
|
|
|
$
|
47,672
|
|
|
$
|
4
|
|
|
$
|
260,416
|
|
Net claims and claim expenses incurred
|
|
36,730
|
|
|
20,075
|
|
|
25,111
|
|
|
(528
|
)
|
|
81,388
|
|
Acquisition expenses
|
|
17,806
|
|
|
11,699
|
|
|
10,122
|
|
|
(6,150
|
)
|
|
33,477
|
|
Operational expenses
|
|
22,200
|
|
|
10,514
|
|
|
13,058
|
|
|
69
|
|
|
45,841
|
|
Underwriting income (loss)
|
|
$
|
82,416
|
|
|
$
|
11,300
|
|
|
$
|
(619
|
)
|
|
$
|
6,613
|
|
|
99,710
|
|
Net investment income
|
|
|
|
|
|
|
|
|
|
|
34,541
|
|
|
34,541
|
|
Net foreign exchange gains
|
|
|
|
|
|
|
|
|
|
|
2,392
|
|
|
2,392
|
|
Equity in earnings of other ventures
|
|
|
|
|
|
|
|
|
|
|
7,232
|
|
|
7,232
|
|
Other loss
|
|
|
|
|
|
|
|
|
|
|
(535
|
)
|
|
(535
|
)
|
Net realized and unrealized gains on investments
|
|
|
|
|
|
|
|
|
|
|
27,128
|
|
|
27,128
|
|
Corporate expenses
|
|
|
|
|
|
|
|
|
|
|
(3,954
|
)
|
|
(3,954
|
)
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
(4,292
|
)
|
|
(4,292
|
)
|
Income before taxes and noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
162,222
|
|
Income tax benefit
|
|
|
|
|
|
|
|
|
|
|
204
|
|
|
204
|
|
Net income attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
(36,078
|
)
|
|
(36,078
|
)
|
Dividends on preference shares
|
|
|
|
|
|
|
|
|
|
|
(5,596
|
)
|
|
(5,596
|
)
|
Net income available to RenaissanceRe common shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
120,752
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expenses incurred - current accident year
|
|
$
|
38,473
|
|
|
$
|
25,443
|
|
|
$
|
34,555
|
|
|
$
|
-
|
|
|
$
|
98,471
|
|
Net claims and claim expenses incurred - prior accident years
|
|
(1,743
|
)
|
|
(5,368
|
)
|
|
(9,444
|
)
|
|
(528
|
)
|
|
(17,083
|
)
|
Net claims and claim expenses incurred - total
|
|
$
|
36,730
|
|
|
$
|
20,075
|
|
|
$
|
25,111
|
|
|
$
|
(528
|
)
|
|
$
|
81,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expense ratio - current accident year
|
|
24.2
|
%
|
|
47.5
|
%
|
|
72.5
|
%
|
|
-
|
%
|
|
37.8
|
%
|
Net claims and claim expense ratio - prior accident years
|
|
(1.1
|
)%
|
|
(10.0
|
)%
|
|
(19.8
|
)%
|
|
(13,200.0
|
)%
|
|
(6.5
|
)%
|
Net claims and claim expense ratio - calendar year
|
|
23.1
|
%
|
|
37.5
|
%
|
|
52.7
|
%
|
|
(13,200.0
|
)%
|
|
31.3
|
%
|
Underwriting expense ratio
|
|
25.1
|
%
|
|
41.4
|
%
|
|
48.6
|
%
|
|
(152,025.0
|
)%
|
|
30.4
|
%
|
Combined ratio
|
|
48.2
|
%
|
|
78.9
|
%
|
|
101.3
|
%
|
|
(165,225.0
|
)%
|
|
61.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2013
|
|
|
Catastrophe Reinsurance
|
|
Specialty Reinsurance
|
|
Lloyd's
|
|
Other
|
|
Total
|
Gross premiums written (1)
|
|
$
|
576,903
|
|
|
$
|
58,539
|
|
|
$
|
68,769
|
|
|
$
|
(988
|
)
|
|
$
|
703,223
|
|
Net premiums written
|
|
$
|
436,852
|
|
|
$
|
57,348
|
|
|
$
|
64,643
|
|
|
$
|
266
|
|
|
$
|
559,109
|
|
Net premiums earned
|
|
$
|
200,483
|
|
|
$
|
49,206
|
|
|
$
|
41,933
|
|
|
$
|
267
|
|
|
$
|
291,889
|
|
Net claims and claim expenses incurred
|
|
52,915
|
|
|
25,511
|
|
|
25,536
|
|
|
-
|
|
|
103,962
|
|
Acquisition expenses
|
|
14,197
|
|
|
9,009
|
|
|
8,484
|
|
|
77
|
|
|
31,767
|
|
Operational expenses
|
|
23,599
|
|
|
7,595
|
|
|
11,456
|
|
|
139
|
|
|
42,789
|
|
Underwriting income (loss)
|
|
$
|
109,772
|
|
|
$
|
7,091
|
|
|
$
|
(3,543
|
)
|
|
$
|
51
|
|
|
113,371
|
|
Net investment income
|
|
|
|
|
|
|
|
|
|
|
26,163
|
|
|
26,163
|
|
Net foreign exchange losses
|
|
|
|
|
|
|
|
|
|
|
(932
|
)
|
|
(932
|
)
|
Equity in earnings of other ventures
|
|
|
|
|
|
|
|
|
|
|
3,772
|
|
|
3,772
|
|
Other loss
|
|
|
|
|
|
|
|
|
|
|
(1,128
|
)
|
|
(1,128
|
)
|
Net realized and unrealized losses on investments
|
|
|
|
|
|
|
|
|
|
|
(69,529
|
)
|
|
(69,529
|
)
|
Corporate expenses
|
|
|
|
|
|
|
|
|
|
|
(21,529
|
)
|
|
(21,529
|
)
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
(4,300
|
)
|
|
(4,300
|
)
|
Income from continuing operations before taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
45,888
|
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
(11
|
)
|
|
(11
|
)
|
Income from discontinued operations
|
|
|
|
|
|
|
|
|
|
|
2,427
|
|
|
2,427
|
|
Net income attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
(14,015
|
)
|
|
(14,015
|
)
|
Dividends on preference shares
|
|
|
|
|
|
|
|
|
|
|
(7,483
|
)
|
|
(7,483
|
)
|
Net income attributable to RenaissanceRe common shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
26,806
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expenses incurred - current accident year
|
|
$
|
71,369
|
|
|
$
|
30,903
|
|
|
$
|
28,517
|
|
|
$
|
-
|
|
|
$
|
130,789
|
|
Net claims and claim expenses incurred - prior accident years
|
|
(18,454
|
)
|
|
(5,392
|
)
|
|
(2,981
|
)
|
|
-
|
|
|
(26,827
|
)
|
Net claims and claim expenses incurred - total
|
|
$
|
52,915
|
|
|
$
|
25,511
|
|
|
$
|
25,536
|
|
|
$
|
-
|
|
|
$
|
103,962
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expense ratio - current accident year
|
|
35.6
|
%
|
|
62.8
|
%
|
|
68.0
|
%
|
|
-
|
%
|
|
44.8
|
%
|
Net claims and claim expense ratio - prior accident years
|
|
(9.2
|
)%
|
|
(11.0
|
)%
|
|
(7.1
|
)%
|
|
-
|
%
|
|
(9.2
|
)%
|
Net claims and claim expense ratio - calendar year
|
|
26.4
|
%
|
|
51.8
|
%
|
|
60.9
|
%
|
|
-
|
%
|
|
35.6
|
%
|
Underwriting expense ratio
|
|
18.8
|
%
|
|
33.8
|
%
|
|
47.5
|
%
|
|
80.9
|
%
|
|
25.6
|
%
|
Combined ratio
|
|
45.2
|
%
|
|
85.6
|
%
|
|
108.4
|
%
|
|
80.9
|
%
|
|
61.2
|
%
|
(1) Included in gross premiums written in the Other category is the
elimination of inter-segment gross premiums written of $1.0 million.
|
RenaissanceRe Holdings Ltd.
|
Supplemental Financial Data - Segment Information
|
(in thousands of United States Dollars, except percentages)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2014
|
|
|
Catastrophe Reinsurance
|
|
Specialty Reinsurance
|
|
Lloyd's
|
|
Other
|
|
Total
|
Gross premiums written
|
|
$
|
855,794
|
|
|
$
|
205,844
|
|
|
$
|
155,162
|
|
|
$
|
-
|
|
|
$
|
1,216,800
|
|
Net premiums written
|
|
$
|
493,187
|
|
|
$
|
171,743
|
|
|
$
|
131,821
|
|
|
$
|
3
|
|
|
$
|
796,754
|
|
Net premiums earned
|
|
$
|
323,736
|
|
|
$
|
123,218
|
|
|
$
|
99,969
|
|
|
$
|
27
|
|
|
$
|
546,950
|
|
Net claims and claim expenses incurred
|
|
43,185
|
|
|
46,156
|
|
|
51,392
|
|
|
(430
|
)
|
|
140,303
|
|
Acquisition expenses
|
|
24,932
|
|
|
28,246
|
|
|
20,689
|
|
|
(6,690
|
)
|
|
67,177
|
|
Operational expenses
|
|
42,619
|
|
|
20,620
|
|
|
25,091
|
|
|
135
|
|
|
88,465
|
|
Underwriting income
|
|
$
|
213,000
|
|
|
$
|
28,196
|
|
|
$
|
2,797
|
|
|
$
|
7,012
|
|
|
251,005
|
|
Net investment income
|
|
|
|
|
|
|
|
|
|
|
73,489
|
|
|
73,489
|
|
Net foreign exchange gains
|
|
|
|
|
|
|
|
|
|
|
1,331
|
|
|
1,331
|
|
Equity in earnings of other ventures
|
|
|
|
|
|
|
|
|
|
|
11,431
|
|
|
11,431
|
|
Other loss
|
|
|
|
|
|
|
|
|
|
|
(473
|
)
|
|
(473
|
)
|
Net realized and unrealized gains on investments
|
|
|
|
|
|
|
|
|
|
|
42,055
|
|
|
42,055
|
|
Corporate expenses
|
|
|
|
|
|
|
|
|
|
|
(8,499
|
)
|
|
(8,499
|
)
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
(8,585
|
)
|
|
(8,585
|
)
|
Income before taxes and noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
361,754
|
|
Income tax benefit
|
|
|
|
|
|
|
|
|
|
|
38
|
|
|
38
|
|
Net income attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
(78,846
|
)
|
|
(78,846
|
)
|
Dividends on preference shares
|
|
|
|
|
|
|
|
|
|
|
(11,191
|
)
|
|
(11,191
|
)
|
Net income available to RenaissanceRe common shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
271,755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expenses incurred - current accident year
|
|
$
|
51,002
|
|
|
$
|
67,365
|
|
|
$
|
55,712
|
|
|
$
|
-
|
|
|
$
|
174,079
|
|
Net claims and claim expenses incurred - prior accident years
|
|
(7,817
|
)
|
|
(21,209
|
)
|
|
(4,320
|
)
|
|
(430
|
)
|
|
(33,776
|
)
|
Net claims and claim expenses incurred - total
|
|
$
|
43,185
|
|
|
$
|
46,156
|
|
|
$
|
51,392
|
|
|
$
|
(430
|
)
|
|
$
|
140,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expense ratio - current accident year
|
|
15.8
|
%
|
|
54.7
|
%
|
|
55.7
|
%
|
|
-
|
%
|
|
31.8
|
%
|
Net claims and claim expense ratio - prior accident years
|
|
(2.5
|
)%
|
|
(17.2
|
)%
|
|
(4.3
|
)%
|
|
(1,592.6
|
)%
|
|
(6.1
|
)%
|
Net claims and claim expense ratio - calendar year
|
|
13.3
|
%
|
|
37.5
|
%
|
|
51.4
|
%
|
|
(1,592.6
|
)%
|
|
25.7
|
%
|
Underwriting expense ratio
|
|
20.9
|
%
|
|
39.6
|
%
|
|
45.8
|
%
|
|
(24,277.8
|
)%
|
|
28.4
|
%
|
Combined ratio
|
|
34.2
|
%
|
|
77.1
|
%
|
|
97.2
|
%
|
|
(25,870.4
|
)%
|
|
54.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2013
|
|
|
Catastrophe Reinsurance
|
|
Specialty Reinsurance
|
|
Lloyd's
|
|
Other
|
|
Total
|
Gross premiums written (1)
|
|
$
|
1,055,699
|
|
|
$
|
140,869
|
|
|
$
|
143,061
|
|
|
$
|
(988
|
)
|
|
$
|
1,338,641
|
|
Net premiums written
|
|
$
|
742,205
|
|
|
$
|
132,867
|
|
|
$
|
120,567
|
|
|
$
|
283
|
|
|
$
|
995,922
|
|
Net premiums earned
|
|
$
|
387,134
|
|
|
$
|
96,015
|
|
|
$
|
79,712
|
|
|
$
|
283
|
|
|
$
|
563,144
|
|
Net claims and claim expenses incurred
|
|
55,623
|
|
|
36,203
|
|
|
40,064
|
|
|
(677
|
)
|
|
131,213
|
|
Acquisition expenses
|
|
23,817
|
|
|
17,448
|
|
|
15,400
|
|
|
111
|
|
|
56,776
|
|
Operational expenses
|
|
49,714
|
|
|
15,155
|
|
|
23,634
|
|
|
272
|
|
|
88,775
|
|
Underwriting income
|
|
$
|
257,980
|
|
|
$
|
27,209
|
|
|
$
|
614
|
|
|
$
|
577
|
|
|
286,380
|
|
Net investment income
|
|
|
|
|
|
|
|
|
|
|
69,365
|
|
|
69,365
|
|
Net foreign exchange losses
|
|
|
|
|
|
|
|
|
|
|
(318
|
)
|
|
(318
|
)
|
Equity in earnings of other ventures
|
|
|
|
|
|
|
|
|
|
|
9,607
|
|
|
9,607
|
|
Other loss
|
|
|
|
|
|
|
|
|
|
|
(2,837
|
)
|
|
(2,837
|
)
|
Net realized and unrealized losses on investments
|
|
|
|
|
|
|
|
|
|
|
(55,260
|
)
|
|
(55,260
|
)
|
Corporate expenses
|
|
|
|
|
|
|
|
|
|
|
(26,011
|
)
|
|
(26,011
|
)
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
(9,334
|
)
|
|
(9,334
|
)
|
Income from continuing operations before taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
271,592
|
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
(133
|
)
|
|
(133
|
)
|
Income from discontinued operations
|
|
|
|
|
|
|
|
|
|
|
12,201
|
|
|
12,201
|
|
Net income attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
(52,622
|
)
|
|
(52,622
|
)
|
Dividends on preference shares
|
|
|
|
|
|
|
|
|
|
|
(13,758
|
)
|
|
(13,758
|
)
|
Net income attributable to RenaissanceRe common shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
217,280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expenses incurred - current accident year
|
|
$
|
92,545
|
|
|
$
|
56,756
|
|
|
$
|
46,388
|
|
|
$
|
-
|
|
|
$
|
195,689
|
|
Net claims and claim expenses incurred - prior accident years
|
|
(36,922
|
)
|
|
(20,553
|
)
|
|
(6,324
|
)
|
|
(677
|
)
|
|
(64,476
|
)
|
Net claims and claim expenses incurred - total
|
|
$
|
55,623
|
|
|
$
|
36,203
|
|
|
$
|
40,064
|
|
|
$
|
(677
|
)
|
|
$
|
131,213
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expense ratio - current accident year
|
|
23.9
|
%
|
|
59.1
|
%
|
|
58.2
|
%
|
|
-
|
%
|
|
34.7
|
%
|
Net claims and claim expense ratio - prior accident years
|
|
(9.5
|
)%
|
|
(21.4
|
)%
|
|
(7.9
|
)%
|
|
(239.2
|
)%
|
|
(11.4
|
)%
|
Net claims and claim expense ratio - calendar year
|
|
14.4
|
%
|
|
37.7
|
%
|
|
50.3
|
%
|
|
(239.2
|
)%
|
|
23.3
|
%
|
Underwriting expense ratio
|
|
19.0
|
%
|
|
34.0
|
%
|
|
48.9
|
%
|
|
135.3
|
%
|
|
25.9
|
%
|
Combined ratio
|
|
33.4
|
%
|
|
71.7
|
%
|
|
99.2
|
%
|
|
(103.9
|
)%
|
|
49.2
|
%
|
(1) Included in gross premiums written in the Other category is the
elimination of inter-segment gross premiums written of $1.0 million.
|
RenaissanceRe Holdings Ltd.
|
Supplemental Financial Data - Gross Premiums Written and Managed
Premiums
|
(in thousands of United States Dollars)
|
(Unaudited)
|
|
|
|
Three months ended
|
|
Six months ended
|
|
|
June 30, 2014
|
|
June 30, 2013
|
|
June 30, 2014
|
|
June 30, 2013
|
Catastrophe Reinsurance Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Renaissance catastrophe premiums
|
|
$
|
240,137
|
|
|
$
|
368,077
|
|
|
$
|
562,885
|
|
|
$
|
678,079
|
DaVinci catastrophe premiums
|
|
|
147,946
|
|
|
|
208,826
|
|
|
292,909
|
|
|
377,620
|
Total Catastrophe Reinsurance segment gross premiums written
|
|
$
|
388,083
|
|
|
$
|
576,903
|
|
|
$
|
855,794
|
|
|
$
|
1,055,699
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Reinsurance Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Renaissance specialty premiums
|
|
$
|
50,001
|
|
|
$
|
56,567
|
|
|
$
|
203,995
|
|
|
$
|
138,184
|
DaVinci specialty premiums
|
|
|
1,553
|
|
|
|
1,972
|
|
|
1,849
|
|
|
2,685
|
Total Specialty Reinsurance segment gross premiums written
|
|
$
|
51,554
|
|
|
$
|
58,539
|
|
|
$
|
205,844
|
|
|
$
|
140,869
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lloyd's Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty
|
|
$
|
45,238
|
|
|
$
|
53,207
|
|
|
$
|
106,942
|
|
|
$
|
108,964
|
Catastrophe
|
|
|
26,665
|
|
|
|
15,562
|
|
|
48,220
|
|
|
34,097
|
Total Lloyd's segment gross premiums written
|
|
$
|
71,903
|
|
|
$
|
68,769
|
|
|
$
|
155,162
|
|
|
$
|
143,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed Premiums (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Catastrophe Reinsurance segment gross premiums written
|
|
$
|
388,083
|
|
|
$
|
576,903
|
|
|
$
|
855,794
|
|
|
$
|
1,055,699
|
Catastrophe premiums written on behalf of the Company's joint venture,
Top Layer Re (2)
|
|
|
23,110
|
|
|
|
25,682
|
|
|
37,225
|
|
|
58,064
|
Catastrophe premiums written in the Lloyd's segment
|
|
|
26,665
|
|
|
|
15,562
|
|
|
48,220
|
|
|
34,097
|
Catastrophe premiums written by the Company in its Catastrophe Reinsurance
segment and ceded to Top Layer Re
|
|
|
-
|
|
|
|
-
|
|
|
(7,355
|
)
|
|
-
|
Total managed catastrophe premiums (1)
|
|
$
|
437,858
|
|
|
$
|
618,147
|
|
|
$
|
933,884
|
|
|
$
|
1,147,860
|
(1) See Comments on Regulation G for a reconciliation of non-GAAP
financial measures. (2) Top Layer Re is accounted for under the
equity method of accounting.
|
RenaissanceRe Holdings Ltd.
|
Supplemental Financial Data - Total Investment Result
|
(in thousands of United States Dollars)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Six months ended
|
|
|
June 30, 2014
|
|
June 30, 2013
|
|
June 30, 2014
|
|
June 30, 2013
|
Fixed maturity investments
|
|
$
|
26,372
|
|
|
$
|
22,839
|
|
|
$
|
50,232
|
|
|
$
|
46,725
|
|
Short term investments
|
|
286
|
|
|
426
|
|
|
476
|
|
|
755
|
|
Equity investments trading
|
|
779
|
|
|
344
|
|
|
1,575
|
|
|
344
|
|
Other investments
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedge funds and private equity investments
|
|
8,340
|
|
|
2,237
|
|
|
20,657
|
|
|
17,117
|
|
Other
|
|
1,483
|
|
|
3,144
|
|
|
6,011
|
|
|
10,139
|
|
Cash and cash equivalents
|
|
93
|
|
|
9
|
|
|
184
|
|
|
61
|
|
|
|
37,353
|
|
|
28,999
|
|
|
79,135
|
|
|
75,141
|
|
Investment expenses
|
|
(2,812
|
)
|
|
(2,836
|
)
|
|
(5,646
|
)
|
|
(5,776
|
)
|
Net investment income
|
|
34,541
|
|
|
26,163
|
|
|
73,489
|
|
|
69,365
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross realized gains
|
|
12,166
|
|
|
17,548
|
|
|
25,633
|
|
|
51,624
|
|
Gross realized losses
|
|
(2,587
|
)
|
|
(14,601
|
)
|
|
(8,151
|
)
|
|
(19,155
|
)
|
Net realized gains on fixed maturity investments
|
|
9,579
|
|
|
2,947
|
|
|
17,482
|
|
|
32,469
|
|
Net unrealized gains (losses) on fixed maturity investments trading
|
|
29,918
|
|
|
(95,680
|
)
|
|
57,800
|
|
|
(118,743
|
)
|
Net realized and unrealized (losses) gains on investments-related derivatives
|
|
(6,884
|
)
|
|
20,510
|
|
|
(17,783
|
)
|
|
20,931
|
|
Net realized gains on equity investments trading
|
|
5,134
|
|
|
74
|
|
|
5,055
|
|
|
17,635
|
|
Net unrealized (losses) gains on equity investments trading
|
|
(10,619
|
)
|
|
2,620
|
|
|
(20,499
|
)
|
|
(7,552
|
)
|
Net realized and unrealized gains (losses) on investments
|
|
27,128
|
|
|
(69,529
|
)
|
|
42,055
|
|
|
(55,260
|
)
|
Change in net unrealized gains on fixed maturity investments available
for sale
|
|
(96
|
)
|
|
(1,239
|
)
|
|
(261
|
)
|
|
(7,306
|
)
|
Total investment result
|
|
$
|
61,573
|
|
|
$
|
(44,605
|
)
|
|
$
|
115,283
|
|
|
$
|
6,799
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investment return - annualized
|
|
3.7
|
%
|
|
(2.8
|
)%
|
|
3.4
|
%
|
|
0.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comments on Regulation G
In addition to the GAAP financial measures set forth in this Press
Release, the Company has included certain non-GAAP financial measures in
this Press Release within the meaning of Regulation G. The Company has
provided these financial measurements in previous investor
communications and the Company's management believes that these
measurements are important to investors and other interested persons,
and that investors and such other persons benefit from having a
consistent basis for comparison between quarters and for the comparison
with other companies within the industry. These measures may not,
however, be comparable to similarly titled measures used by companies
outside of the insurance industry. Investors are cautioned not to place
undue reliance on these non-GAAP measures in assessing the Company's
overall financial performance.
The Company uses "operating income available to RenaissanceRe common
shareholders" as a measure to evaluate the underlying fundamentals of
its operations and believes it to be a useful measure of its corporate
performance. "Operating income available to RenaissanceRe common
shareholders" as used herein differs from "net income available to
RenaissanceRe common shareholders," which the Company believes is the
most directly comparable GAAP measure, by the exclusion of net realized
and unrealized gains and losses on investments from continuing and
discontinued operations and net other-than-temporary impairments. The
Company's management believes that "operating income available to
RenaissanceRe common shareholders" is useful to investors because it
more accurately measures and predicts the Company's results of
operations by removing the variability arising from fluctuations in the
Company's fixed maturity investment portfolio and equity investments
trading. The Company also uses "operating income available to
RenaissanceRe common shareholders" to calculate "operating income
available to RenaissanceRe common shareholders per common share -
diluted" and "operating return on average common equity - annualized".
The following is a reconciliation of: 1) net income available to
RenaissanceRe common shareholders to operating income available to
RenaissanceRe common shareholders; 2) net income available to
RenaissanceRe common shareholders per common share - diluted to
operating income available to RenaissanceRe common shareholders per
common share - diluted; and 3) return on average common equity -
annualized to operating return on average common equity - annualized:
|
|
|
|
|
|
|
Three months ended
|
|
Six months ended
|
(in thousands of United States Dollars, except percentages)
|
|
June 30, 2014
|
|
June 30, 2013
|
|
June 30, 2014
|
|
June 30, 2013
|
Net income available to RenaissanceRe common shareholders
|
|
$
|
120,752
|
|
|
$
|
26,806
|
|
|
$
|
271,755
|
|
|
$
|
217,280
|
|
Adjustment for net realized and unrealized (gains) losses on investments
from continuing operations
|
|
(27,128
|
)
|
|
69,529
|
|
|
(42,055
|
)
|
|
55,260
|
|
Adjustment for net realized and unrealized gains on investments from
discontinued operations
|
|
-
|
|
|
15
|
|
|
-
|
|
|
13
|
|
Operating income available to RenaissanceRe common shareholders
|
|
$
|
93,624
|
|
|
$
|
96,350
|
|
|
$
|
229,700
|
|
|
$
|
272,553
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to RenaissanceRe common shareholders per common
share - diluted
|
|
$
|
2.95
|
|
|
$
|
0.60
|
|
|
$
|
6.52
|
|
|
$
|
4.83
|
|
Adjustment for net realized and unrealized (gains) losses on investments
from continuing operations
|
|
(0.67
|
)
|
|
1.57
|
|
|
(1.02
|
)
|
|
1.25
|
|
Adjustment for net realized and unrealized gains on investments from
discontinued operations
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Operating income available to RenaissanceRe common shareholders per
common share - diluted
|
|
$
|
2.28
|
|
|
$
|
2.17
|
|
|
$
|
5.50
|
|
|
$
|
6.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average common equity - annualized
|
|
14.2
|
%
|
|
3.4
|
%
|
|
15.8
|
%
|
|
13.8
|
%
|
Adjustment for net realized and unrealized (gains) losses on investments
from continuing operations
|
|
(3.2
|
)%
|
|
8.8
|
%
|
|
(2.4
|
)%
|
|
3.5
|
%
|
Adjustment for net realized and unrealized gains on investments from
discontinued operations
|
|
-
|
%
|
|
-
|
%
|
|
-
|
%
|
|
-
|
%
|
Operating return on average common equity - annualized
|
|
11.0
|
%
|
|
12.2
|
%
|
|
13.4
|
%
|
|
17.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company has also included in this Press Release "managed catastrophe
premiums". "Managed catastrophe premiums" is defined as gross
catastrophe premiums written by the Company and its related joint
ventures. "Managed catastrophe premiums" differs from total Catastrophe
Reinsurance segment gross premiums written, which the Company believes
is the most directly comparable GAAP measure, due to the inclusion of
catastrophe premiums written on behalf of the Company's joint venture
Top Layer Re, which is accounted for under the equity method of
accounting, and the inclusion of catastrophe premiums written on behalf
of the Company's Lloyd's segment. The Company's management believes
"managed catastrophe premiums" is useful to investors and other
interested parties because it provides a measure of total catastrophe
premiums assumed by the Company through its consolidated subsidiaries
and related joint ventures.
The Company has also included in this Press Release "tangible book value
per common share" and "tangible book value per common share plus
accumulated dividends". "Tangible book value per common share" is
defined as book value per common share excluding goodwill and intangible
assets per share. "Tangible book value per common share plus accumulated
dividends" is defined as book value per common share excluding goodwill
and intangible assets per share, plus accumulated dividends. "Tangible
book value per common share" differs from book value per common share,
which the Company believes is the most directly comparable GAAP measure,
due to the exclusion of goodwill and intangible assets per share. The
Company's management believes "tangible book value per common share" and
"tangible book value per common share plus accumulated dividends" are
useful to investors because they provide a more accurate measure of the
realizable value of shareholder returns, excluding the impact of
goodwill and intangible assets.
The following is a reconciliation of book value per common share to
tangible book value per common share and tangible book value per common
share plus accumulated dividends:
|
|
|
|
|
At
|
|
|
June 30, 2014
|
|
March 31, 2014
|
|
December 31, 2013
|
|
September 30, 2013
|
|
June 30, 2013
|
Book value per common share
|
|
$
|
84.79
|
|
|
$
|
82.30
|
|
|
$
|
80.29
|
|
|
$
|
74.58
|
|
|
$
|
71.38
|
|
Adjustment for goodwill and other intangibles (1)
|
|
(0.86
|
)
|
|
(0.89
|
)
|
|
(0.85
|
)
|
|
(0.84
|
)
|
|
(0.85
|
)
|
Tangible book value per common share
|
|
83.93
|
|
|
81.41
|
|
|
79.44
|
|
|
73.74
|
|
|
70.53
|
|
Adjustment for accumulated dividends
|
|
13.70
|
|
|
13.41
|
|
|
13.12
|
|
|
12.84
|
|
|
12.56
|
|
Tangible book value per common share plus accumulated
dividends
|
|
$
|
97.63
|
|
|
$
|
94.82
|
|
|
$
|
92.56
|
|
|
$
|
86.58
|
|
|
$
|
83.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly change in book value per common share
|
|
3.0
|
%
|
|
2.5
|
%
|
|
7.7
|
%
|
|
4.5
|
%
|
|
0.4
|
%
|
Quarterly change in tangible book value per common share plus
change in accumulated dividends
|
|
3.5
|
%
|
|
2.8
|
%
|
|
8.1
|
%
|
|
4.9
|
%
|
|
0.8
|
%
|
Annual change in book value per common share
|
|
5.6
|
%
|
|
|
|
|
|
|
|
|
|
|
4.8
|
%
|
Annual change in tangible book value per common share plus
change in accumulated dividends
|
|
6.4
|
%
|
|
|
|
|
|
|
|
|
|
|
5.7
|
%
|
(1) At June 30, 2014, March 31, 2014, December 31, 2013, September 30,
2013 and June 30, 2013, goodwill and other intangibles included $27.0
million, $28.3 million, $29.2 million, $28.5 million and $29.3 million,
respectively, of goodwill and other intangibles included in investments
in other ventures, under equity method.
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