RenaissanceRe Reports Net Loss Attributable to Common Shareholders of $290.9 Million; Operating Income Available to Common Shareholders of $4.4 Million in the First Quarter of 2021. Gross Premiums Written Increased by 30.9%.
RenaissanceRe Holdings Ltd. (NYSE: RNR) reported significant losses for Q1 2021, with a net loss of $(290.9M) or $(5.87) per diluted share. The underwriting loss was $(35.8M), attributed primarily to Winter Storm Uri, which negatively impacted results by $(179.8M). Despite these challenges, the company expanded its underwriting portfolio and is optimistic about future opportunities. Gross premiums written increased to $2.65B from $2.03B year-over-year. The combined ratio rose to 103.1%, indicating underwriting challenges, while the return on equity fell to -17.1%. There was a 5.3% decline in book value per share.
- Gross premiums written increased to $2.65B, up from $2.03B YoY.
- Expanded underwriting portfolio during a challenging quarter.
- Anticipation of improved market conditions and underwriting margins.
- Net loss attributable to common shareholders was $(290.9M) or $(5.87) per share.
- Underwriting loss of $(35.8M) due to Winter Storm Uri.
- Combined ratio increased to 103.1%, indicating underwriting difficulties.
RenaissanceRe Holdings Ltd. (NYSE: RNR) (“RenaissanceRe” or the “Company”) today announced its financial results for the three months ended March 31, 2021.
Net Loss Attributable to Common Shareholders per Diluted Common Share:
Operating Income Available to Common Shareholders per Diluted Common Share*: |
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Underwriting Loss
|
Fee Income
|
Net Investment Income
|
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Change in Book Value per Common Share: (5.3)% Change in Tangible Book Value per Common Share Plus Change in Accum. Dividends*: (5.3)% |
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∗ |
Operating Income Available to Common Shareholders per Diluted Common Share and Change in Tangible Book Value per Common Share Plus Change in Accumulated Dividends are non-GAAP financial measures, see “Comments on Regulation G” for a reconciliation of non-GAAP financial measures. |
| Kevin J. O’Donnell, President and Chief Executive Officer, said, “We materially grew our underwriting portfolio while returning significant capital to our shareholders during a quarter that was negatively impacted by Winter Storm Uri and volatile capital markets. Going forward, we anticipate additional opportunities to grow into a broadly improving market by matching desirable risk with efficient capital, both on our wholly owned balance sheets and in our industry-leading RenaissanceRe Capital Partners business. Together with improved yields in our investment portfolio, this diligent execution of our strategy will further contribute to shareholder value creation.” | |
Utilized flexible platform to broaden access to risk and match with efficient capital, growing premiums on a gross and net basis
- Expanded participation on multiple casualty and specialty lines, benefiting from underlying rate increases and anticipated improvement in underwriting margins.
- Grew catastrophe-exposed U.S. property excess and surplus lines in the other property class of business.
- Took a disciplined approach at the January 1 and April 1 property catastrophe renewals, expanding participation predominately with existing customers at improved rates.
- Rebranded ventures unit as RenaissanceRe Capital Partners, reflecting partnership approach and strong alignment with third-party investors.
Consolidated Financial Results - First Quarter |
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Consolidated Highlights |
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|
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Three months ended March 31 |
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(in thousands, except per share amounts and percentages) |
2021 |
|
2020 |
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Gross premiums written |
$ |
2,652,442 |
|
$ |
2,025,721 |
|
||
Underwriting (loss) income |
|
(35,760 |
) |
|
64,079 |
|
||
Combined ratio |
|
103.1 |
% |
|
93.0 |
% |
||
|
|
|
||||||
Net Loss |
|
|
||||||
Attributable to common shareholders |
|
(290,934 |
) |
|
(81,974 |
) |
||
Attributable to common shareholders per diluted common share |
$ |
(5.87 |
) |
$ |
(1.89 |
) |
||
Operating income (1) |
|
|
||||||
Available to common shareholders |
|
4,395 |
|
|
33,410 |
|
||
Available to common shareholders per diluted common share |
$ |
0.09 |
|
$ |
0.76 |
|
||
Book value per common share |
$ |
131.15 |
|
$ |
117.15 |
|
||
Change in book value per share |
|
(5.3 |
)% |
|
(2.8 |
)% |
||
Tangible book value per common share plus accumulated dividends (1) |
$ |
148.17 |
|
$ |
131.72 |
|
||
Change in tangible book value per common share plus change in accumulated dividends (1) |
|
(5.3 |
)% |
|
(2.6 |
)% |
||
|
|
|
||||||
Return on average common equity - annualized |
|
(17.1 |
)% |
|
(6.3 |
)% |
||
Operating return on average common equity - annualized (1) |
|
0.3 |
% |
|
2.6 |
% |
||
(1) See “Comments on Regulation G” for a reconciliation of non-GAAP financial measures. |
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Net Negative Impact of Winter Storm Uri
Net negative impact on underwriting result includes the sum of (1) net claims and claim expenses incurred, (2) assumed and ceded reinstatement premiums earned and (3) earned and lost profit commissions. Net negative impact on net income (loss) available (attributable) to RenaissanceRe common shareholders is the sum of (1) net negative impact on underwriting result and (2) redeemable noncontrolling interest.
Net negative impact of Winter Storm Uri on the consolidated financial statements |
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|
|
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Three months ended March 31, 2021 |
Winter Storm Uri |
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(in thousands) |
|
|||
Net claims and claims expenses incurred |
$ |
(372,894 |
) |
|
Assumed reinstatement premiums earned |
|
91,191 |
|
|
Ceded reinstatement premiums earned |
|
(10,570 |
) |
|
Earned profit commissions |
|
773 |
|
|
Net negative impact on underwriting result |
|
(291,500 |
) |
|
Redeemable noncontrolling interest |
|
111,666 |
|
|
Net negative impact on net loss attributable to RenaissanceRe common shareholders |
$ |
(179,834 |
) |
|
|
|
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Net negative impact of Winter Storm Uri on the segment underwriting results and consolidated combined ratio |
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Three months ended March 31, 2021 |
Winter Storm Uri |
|||
(in thousands, except percentages) |
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Net negative impact on Property segment underwriting result |
$ |
(288,470 |
) |
|
Net negative impact on Casualty and Specialty segment underwriting result |
|
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FAQ
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