RenaissanceRe Reports Q4 2022 Net Income Available to Common Shareholders of $448.1 Million; Operating Income Available to Common Shareholders of $322.2 Million.
RenaissanceRe reported an annual net loss for common shareholders of $1.1 billion for 2022, with an operating income of $315.6 million. Despite challenges, it achieved a 29.6% annualized operating return on average common equity in Q4. The company experienced 21.2% growth in net premiums written, significantly driven by a 41.6% growth in its Casualty and Specialty segments. Q4 net investment income reached $211.2 million, reflecting a remarkable 162.5% growth year-over-year. However, $807.6 million in weather-related losses adversely impacted net income. The company ended 2022 with solid capital levels following the raising of $1.4 billion in third-party capital.
- 41.6% growth in Casualty and Specialty segments' net premiums written.
- $211.2 million in Q4 net investment income, a 162.5% increase year-over-year.
- 29.6% annualized operating return on average common equity in Q4 2022.
- Raised $1.4 billion in third-party capital in 2022.
- Annual net loss attributable to common shareholders of $1.1 billion.
- Weather-related large losses had a $807.6 million negative impact on net income.
RenaissanceRe Reports Annual Net Loss Attributable to Common Shareholders of
-
41.2% annualized return on average common equity and29.6% annualized operating return on average common equity in Q4 2022. -
Net investment income of
$211.2 million 162.5% growth compared to Q4 2021. -
21.2% growth in net premiums written in 2022; driven by41.6% growth in Casualty and Specialty. -
Casualty and Specialty combined ratio of
93.7% in Q4 2022 and95.3% in 2022. -
Raised
$1.4 billion Capital Partners business in 2022, with a further$402.9 million January 1, 2023 . -
2022 Weather-Related Large Losses had an
$807.6 million
PEMBROKE,
Fourth Quarter 2022
Net Income Available to Common Shareholders per Diluted Common Share:
Operating Income Available to Common Shareholders per Diluted Common Share*: |
||
Underwriting Income
|
Fee Income
|
Net Investment Income
|
Change in Book Value per Common Share:
Change in Tangible Book Value per Common Share Plus Change in Accum. Dividends*: |
||
| * | Operating Return on Average Common Equity, Operating Income (Loss) Available (Attributable) to Common Shareholders, Operating Income (Loss) Available (Attributable) 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. |
|
Consolidated Financial Results - Fourth Quarter |
|
Consolidated Highlights |
|
|
|
||||
|
|
Three months ended
|
||||||
|
(in thousands, except per share amounts and percentages) |
2022 |
|
2021 |
||||
|
Gross premiums written |
$ |
1,585,276 |
|
|
$ |
1,313,018 |
|
|
Net premiums written |
|
1,345,616 |
|
|
|
1,116,560 |
|
|
Underwriting income (loss) |
|
316,302 |
|
|
|
276,661 |
|
|
Combined ratio |
|
80.5 |
% |
|
|
79.4 |
% |
|
|
|
|
|
||||
|
Net Income (Loss) |
|
|
|
||||
|
Available (attributable) to common shareholders |
|
448,092 |
|
|
|
210,917 |
|
|
Available (attributable) to common shareholders per diluted common share |
$ |
10.27 |
|
|
$ |
4.65 |
|
|
Operating Income (Loss) (1) |
|
|
|
||||
|
Available (attributable) to common shareholders |
|
322,153 |
|
|
|
213,692 |
|
|
Available (attributable) to common shareholders per diluted common share |
$ |
7.33 |
|
|
$ |
4.71 |
|
|
Book value per common share |
$ |
104.65 |
|
|
$ |
132.17 |
|
|
Change in book value per share |
|
10.7 |
% |
|
|
2.5 |
% |
|
Tangible book value per common share plus accumulated dividends (1) |
$ |
123.81 |
|
|
$ |
149.79 |
|
|
Change in tangible book value per common share plus change in accumulated dividends (1) |
|
11.9 |
% |
|
|
2.8 |
% |
|
|
|
|
|
||||
|
Return on average common equity - annualized |
|
41.2 |
% |
|
|
14.2 |
% |
|
Operating return on average common equity - annualized (1) |
|
29.6 |
% |
|
|
14.4 |
% |
| (1) | See “Comments on Regulation G” for a reconciliation of non-GAAP financial measures. |
Three Drivers of Profit: Underwriting, Fee and Investment Income - Fourth Quarter |
Underwriting Results - Property Segment: Combined ratio of
|
Property Segment |
|
|
|
|
|
|||||
|
|
Three months ended
|
|
Q/Q
|
|||||||
|
(in thousands, except percentages) |
2022 |
|
2021 |
|
||||||
|
Gross premiums written |
$ |
372,082 |
|
|
$ |
384,657 |
|
|
(3.3 |
) % |
|
Net premiums written |
|
372,998 |
|
|
|
375,112 |
|
|
(0.6 |
) % |
|
Underwriting income (loss) |
|
257,225 |
|
|
|
223,098 |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Underwriting Ratios |
|
|
|
|
|
|||||
|
Net claims and claim expense ratio - current accident year |
|
53.8 |
% |
|
|
43.8 |
% |
|
10.0 pts |
|
|
Net claims and claim expense ratio - prior accident years |
|
(18.9 |
) % |
|
|
(4.9 |
) % |
|
(14.0) pts |
|
|
Net claims and claim expense ratio - calendar year |
|
34.9 |
% |
|
|
38.9 |
% |
|
(4.0) pts |
|
|
Underwriting expense ratio |
|
27.7 |
% |
|
|
25.5 |
% |
|
2.2 pts |
|
|
Combined ratio |
|
62.6 |
% |
|
|
64.4 |
% |
|
(1.8) pts |
|
-
Gross premiums written decreased by
$12.6 million 3.3% , driven by a reduction of$11.8 million -
Net premiums written decreased by
$2.1 million 0.6% , also reflecting lower reinstatement premiums. - Net claims and claim expense ratio - current accident year increased 10.0 percentage points, primarily due to the impacts of Winter Storm Elliott and Hurricane Nicole, as well as losses associated with aggregate loss contracts.
– Weather-related large losses contributed 19.2 percentage points to the current accident year net claims and claim expense ratio in the fourth quarter of 2022, compared to a contribution of 11.0 percentage points from weather-related large losses in the fourth quarter of 2021.
- Net claims and claim expense ratio - prior accident years reflects net favorable development, primarily from weather-related large losses in the 2019 and 2021 accident years, driven by better than expected loss emergence.
- Underwriting expense ratio increased 2.2 percentage points, driven by a lower performance-based compensation expense in the fourth quarter of 2021, in addition to lower management fees due to reductions in Upsilon and the portfolio of structured reinsurance products.
-
Underwriting income of
$257.2 million 62.6% . Weather-related large losses had a$131.9 million
Underwriting Results - Casualty and Specialty Segment: Combined ratio of
|
Casualty and Specialty Segment |
|
|
|
|
|
|||||
|
|
Three months ended
|
|
Q/Q
|
|||||||
|
(in thousands, except percentages) |
2022 |
|
2021 |
|
||||||
|
Gross premiums written |
$ |
1,213,194 |
|
|
$ |
928,361 |
|
|
30.7 |
% |
|
Net premiums written |
|
972,618 |
|
|
|
741,448 |
|
|
31.2 |
% |
|
Underwriting income (loss) |
|
59,077 |
|
|
|
53,563 |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Underwriting Ratios |
|
|
|
|
|
|||||
|
Net claims and claim expense ratio - current accident year |
|
64.9 |
% |
|
|
63.9 |
% |
|
1.0 pts |
|
|
Net claims and claim expense ratio - prior accident years |
|
(2.7 |
)% |
|
|
(1.3 |
)% |
|
(1.4) pts |
|
|
Net claims and claim expense ratio - calendar year |
|
62.2 |
% |
|
|
62.6 |
% |
|
(0.4) pts |
|
|
Underwriting expense ratio |
|
31.5 |
% |
|
|
29.9 |
% |
|
1.6 pts |
|
|
Combined ratio |
|
93.7 |
% |
|
|
92.5 |
% |
|
1.2 pts |
|
-
Gross premiums written increased
30.7% with growth across all lines of business. The increase reflects growth in new and existing business and rate improvement, mainly from business written in prior periods. -
Net premiums written increased
31.2% consistent with the increase in gross premiums written. - Net claims and claim expense ratio - current accident year increased by 1.0 percentage point principally as a result of a large energy loss in the other specialty lines of business.
- Net claims and claim expense ratio - prior accident years reflects higher favorable prior accident year loss development of 1.4 percentage points as compared to the fourth quarter of 2021, driven by favorable experience in other specialty and credit lines of business.
- Underwriting expense ratio increased 1.6 percentage points, principally due to:
– Increase in the operating expense ratio of 0.9 percentage points mainly due to a lower performance-based compensation expense in the fourth quarter of 2021; and
– Increase in the net acquisition expense ratio of 0.7 percentage points due to changes in the mix of business and estimated profit commission expense.
Fee Income:
|
Fee Income |
|
|
|
|
|
||||
|
|
Three months ended
|
|
Q/Q
|
||||||
|
(in thousands, except percentages) |
2022 |
|
2021 |
|
|||||
|
Total management fee income |
$ |
25,984 |
|
$ |
24,723 |
|
$ |
1,261 |
|
|
Total performance fee income (loss) (1) |
|
4,363 |
|
|
5,299 |
|
|
(936 |
) |
|
Total fee income |
$ |
30,347 |
|
$ |
30,022 |
|
$ |
325 |
|
| (1) | Performance fees are based on the performance of the individual vehicles or products, and may be negative in a particular period if, for example, large losses occur, which can potentially result in no performance fees or the reversal of previously accrued performance fees. |
-
Management fee income was relatively stable as compared to the fourth quarter of 2021, reflecting increased capital managed at
DaVinciRe Holdings Ltd. (“DaVinci”),Vermeer Reinsurance Ltd. (“Vermeer”),RenaissanceRe Medici Fund Ltd. (“Medici”), andFontana Holdings L.P. and its subsidiaries (“Fontana”), largely offset by reductions in the Company’s structured reinsurance products and Upsilon, as well as a deferral of management fees in DaVinci as a result of the weather-related large losses experienced in the current and prior years. - Performance fee income was lower in the fourth quarter of 2022 compared to the fourth quarter of 2021, and was affected by the cumulative impact of the catastrophe events in 2021 and 2022.
Investment Results: Total investment result improved
|
Investment Results |
|
|
|
|
|
|||||
|
|
Three months ended
|
|
Q/Q
|
|||||||
|
(in thousands, except percentages) |
2022 |
|
2021 |
|
||||||
|
Net investment income |
$ |
211,237 |
|
|
$ |
80,483 |
|
|
$ |
130,754 |
|
Net realized and unrealized gains (losses) on investments |
|
168,139 |
|
|
|
(21,518 |
) |
|
|
189,657 |
|
Total investment result |
$ |
379,376 |
|
|
$ |
58,965 |
|
|
$ |
320,411 |
|
Total investment return - annualized |
|
7.4 |
% |
|
|
1.1 |
% |
|
6.3 pts |
|
-
Net investment income increased
$130.8 million
– Rising interest rates and increased yields in the fixed maturity trading and short term investment portfolios;
– Higher yields on catastrophe bonds; and
– Higher average invested assets and yields in private credit fund investments.
-
Net realized and unrealized gains on investments increased
$189.7 million
– Net realized and unrealized gains on fixed maturity investments trading of
-
Total investments were
$22.2 billion December 31, 2022 (December 31, 2021 -$21.4 billion 5.7% and 2.5 years (December 31, 2021 -1.6% and 2.8 years, respectively).
Other Items of Note - Fourth Quarter |
-
Net income attributable to redeemable noncontrolling interests of
$236.4 million
– Strong underwriting results for DaVinci and Vermeer;
– Strong net investment income stemming from higher interest rates and yields within the investment portfolios of the Company’s joint ventures and managed funds; and
– Net realized and unrealized gains on investments recorded during the quarter, as described above.
-
Raised third-party capital of
$123.0 million $120.0 million -
Redemptions of third-party capital of
$224.6 million
Consolidated Financial Results - Full Year |
|
Consolidated Highlights |
|
|
|
||||
|
|
Twelve months ended
|
||||||
|
(in thousands, except per share amounts and percentages) |
2022 |
|
2021 |
||||
|
Gross premiums written |
$ |
9,213,540 |
|
|
$ |
7,833,798 |
|
|
Net premiums written |
|
7,196,160 |
|
|
|
5,939,375 |
|
|
Underwriting income (loss) |
|
149,852 |
|
|
|
(108,948 |
) |
|
Combined ratio |
|
97.7 |
% |
|
|
102.1 |
% |
|
|
|
|
|
||||
|
Net Income (Loss) |
|
|
|
||||
|
Available (attributable) to common shareholders |
$ |
(1,096,578 |
) |
|
$ |
(73,421 |
) |
|
Available (attributable) to common shareholders per diluted common share |
$ |
(25.50 |
) |
|
$ |
(1.57 |
) |
|
Operating Income (Loss) (1) |
|
|
|
||||
|
Available (attributable) to common shareholders |
$ |
315,556 |
|
|
$ |
81,599 |
|
|
Available (attributable) to common shareholders per diluted common share |
$ |
7.30 |
|
|
$ |
1.72 |
|
|
Book value per common share |
$ |
104.65 |
|
|
$ |
132.17 |
|
|
Change in book value per share |
|
(20.8 |
)% |
|
|
(4.5 |
)% |
|
Tangible book value per common share plus accumulated dividends (1) |
$ |
123.81 |
|
|
$ |
149.79 |
|
|
Change in tangible book value per common share plus change in accumulated dividends (1) |
|
(20.6 |
)% |
|
|
(4.0 |
)% |
|
|
|
|
|
||||
|
Return on average common equity |
|
(22.0 |
)% |
|
|
(1.1 |
)% |
|
Operating return on average common equity (1) |
|
6.3 |
% |
|
|
1.3 |
% |
| (1) | See “Comments on Regulation G” for a reconciliation of non-GAAP financial measures. |
Net negative impact of the 2022 Weather-Related Large Losses
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
The Company’s estimates of net negative impact are based on a review of our potential exposures, preliminary discussions with certain counterparties and actuarial modeling techniques. Our actual net negative impact, both individually and in the aggregate, may vary from these estimates, perhaps materially. Changes in these estimates will be recorded in the period in which they occur.
Meaningful uncertainty remains regarding the estimates and the nature and extent of the losses from these catastrophe events, driven by the magnitude and recent nature of each event, the geographic areas impacted by the events, relatively limited claims data received to date, the contingent nature of business interruption and other exposures, potential uncertainties relating to reinsurance recoveries and other factors inherent in loss estimation, among other things.
Net negative impact on the consolidated financial statements
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Year ended |
|
Hurricane
|
|
Other 2022
|
|
Aggregate
|
|
Total 2022
|
|
||||||||
|
(in thousands) |
|
|
|
|
|
|
|
|
|
||||||||
|
Net claims and claims expenses incurred |
|
$ |
(982,189 |
) |
|
$ |
(330,973 |
) |
|
$ |
(93,810 |
) |
|
$ |
(1,406,972 |
) |
|
|
Assumed reinstatement premiums earned |
|
|
221,801 |
|
|
|
27,138 |
|
|
|
52 |
|
|
|
248,991 |
|
|
|
Ceded reinstatement premiums earned |
|
|
(57,913 |
) |
|
|
(579 |
) |
|
|
— |
|
|
|
(58,492 |
) |
|
|
Earned (lost) profit commissions |
|
|
(1,487 |
) |
|
|
(1,285 |
) |
|
|
(49 |
) |
|
|
(2,821 |
) |
|
|
Net negative impact on underwriting result |
|
|
(819,788 |
) |
|
|
(305,699 |
) |
|
|
(93,807 |
) |
|
|
(1,219,294 |
) |
|
|
Redeemable noncontrolling interest |
|
|
286,910 |
|
|
|
87,398 |
|
|
|
37,399 |
|
|
|
411,707 |
|
|
|
Net negative impact on net income (loss) available (attributable) to |
|
$ |
(532,878 |
) |
|
$ |
(218,301 |
) |
|
$ |
(56,408 |
) |
|
$ |
(807,587 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net negative impact on the segment underwriting results and consolidated combined ratio
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Year ended |
|
Hurricane
|
|
Other 2022
|
|
Aggregate
|
|
Total 2022
|
|
||||||||
|
(in thousands, except percentages) |
|
|
|
|
|
|
|
|
|
||||||||
|
Net negative impact on Property segment underwriting result |
|
$ |
(811,828 |
) |
|
$ |
(302,080 |
) |
|
$ |
(93,807 |
) |
|
$ |
(1,207,715 |
) |
|
|
Net negative impact on Casualty and Specialty segment underwriting result |
|
|
(7,960 |
) |
|
|
(3,619 |
) |
|
|
— |
|
|
|
(11,579 |
) |
|
|
Net negative impact on underwriting result |
|
$ |
(819,788 |
) |
|
$ |
(305,699 |
) |
|
$ |
(93,807 |
) |
|
$ |
(1,219,294 |
) |
|
|
Percentage point impact on consolidated combined ratio |
|
|
13.4 |
|
|
|
4.9 |
|
|
|
1.5 |
|
|
|
20.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
| (1) |
“Other 2022 Catastrophe Events” includes the floods in |
|
| (2) | “2022 Weather-Related Large Losses” includes Hurricane Ian, Other 2022 Catastrophe Events and loss estimates associated with certain aggregate loss contracts triggered during 2022 as a result of weather-related catastrophe events. |
Three Drivers of Profit: Underwriting, Fee, and Investment Income - Full Year |
Underwriting Results - Property Segment: Combined ratio of
|
Property Segment |
|
|
|
|
|
|||||
|
|
Twelve months ended
|
|
Y/Y
|
|||||||
|
(in thousands, except percentages) |
2022 |
|
2021 |
|
||||||
|
Gross premiums written |
$ |
3,734,241 |
|
|
$ |
3,958,724 |
|
|
(5.7 |
) % |
|
Net premiums written |
|
2,847,659 |
|
|
|
2,868,002 |
|
|
(0.7 |
) % |
|
Underwriting income (loss) |
|
(16,109 |
) |
|
|
(185,504 |
) |
|
|
|
|
|
|
|
|
|
|
|||||
|
Underwriting Ratios |
|
|
|
|
|
|||||
|
Net claims and claim expense ratio - current accident year |
|
81.2 |
% |
|
|
91.9 |
% |
|
(10.7) pts |
|
|
Net claims and claim expense ratio - prior accident years |
|
(7.4 |
)% |
|
|
(9.0 |
)% |
|
1.6 pts |
|
|
Net claims and claim expense ratio - calendar year |
|
73.8 |
% |
|
|
82.9 |
% |
|
(9.1) pts |
|
|
Underwriting expense ratio |
|
26.8 |
% |
|
|
24.2 |
% |
|
2.6 pts |
|
|
Combined ratio |
|
100.6 |
% |
|
|
107.1 |
% |
|
(6.5) pts |
|
-
Gross premiums written decreased
5.7% , driven by:
– Decrease in the catastrophe class of business of
– Decrease in the other property class of business of
-
Ceded premiums written were
$886.6 million $204.1 million 18.7% . This decrease was primarily driven by:
– The reduction in gross premiums written in Upsilon, which are largely ceded to third party investors.
– A reduction in retrocessional purchases as part of the Company’s gross-to-net strategy, in conjunction with the growth in managed third-party capital vehicles.
- Net claims and claim expense ratio - current accident year improved by 10.7 percentage points, primarily as a result of a lower impact from the 2022 Weather-Related Large Losses as compared to the impact of weather-related large losses in 2021.
-
The net claims and claim expense ratio - prior accident years reflected net favorable development of
7.4% , primarily related to weather-related large losses in the 2017 to 2021 accident years. - Underwriting expense ratio increased 2.6 percentage points, driven by a lower performance based compensation expense in 2021, in addition to lower management fees due to reductions in Upsilon and the portfolio of structured reinsurance products.
-
Underwriting loss of
$16.1 million 100.6% , primarily driven by the 2022 Weather-Related Large Losses, which had a$1.2 billion
Casualty and Specialty Segment: Net premiums written increased by
|
Casualty and Specialty Segment |
|
|
|
|
|
|||||
|
|
Twelve months ended
|
|
Y/Y
|
|||||||
|
(in thousands, except percentages) |
2022 |
|
2021 |
|
||||||
|
Gross premiums written |
$ |
5,479,299 |
|
|
$ |
3,875,074 |
|
|
41.4 |
% |
|
Net premiums written |
|
4,348,501 |
|
|
|
3,071,373 |
|
|
41.6 |
% |
|
Underwriting income (loss) |
|
165,961 |
|
|
|
76,556 |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Underwriting Ratios |
|
|
|
|
|
|||||
|
Net claims and claim expense ratio - current accident year |
|
65.5 |
% |
|
|
66.9 |
% |
|
(1.4) pts |
|
|
Net claims and claim expense ratio - prior accident years |
|
(1.1 |
)% |
|
|
(0.7 |
)% |
|
(0.4) pts |
|
|
Net claims and claim expense ratio - calendar year |
|
64.4 |
% |
|
|
66.2 |
% |
|
(1.8) pts |
|
|
Underwriting expense ratio |
|
30.9 |
% |
|
|
30.8 |
% |
|
0.1 pts |
|
|
Combined ratio |
|
95.3 |
% |
|
|
97.0 |
% |
|
(1.7) pts |
|
-
Gross premiums written increased
41.4% , driven by:
– Growth in new and existing business, and rate improvements, principally in the casualty and credit lines of business.
– Gross premiums written in 2022 also included approximately
-
Net premiums written increased
41.6% , primarily driven by growth in casualty and credit lines of business, consistent with the changes in gross premiums written. - Net claims and claim expense ratio - current accident year improved by 1.4 percentage points, primarily as a result of lower current accident year attritional losses compared to 2021.
- Net claims and claim expense ratio - prior accident years improved by 0.4 percentage points, reflecting higher favorable prior accident year loss development compared to 2021.
- The underwriting expense ratio increased 0.1 percentage points driven by an increase of 0.5 percentage points in the net acquisition expense ratio due to higher costs. This was largely offset by a 0.4 percentage point decrease in the operating expense ratio, driven by continued improvement in operating leverage.
Fee Income:
|
Fee Income |
|
|
|
|
|
||||
|
|
Twelve months ended
|
|
Y/Y
|
||||||
|
(in thousands, except percentages) |
2022 |
|
2021 |
|
|||||
|
Total management fee income |
$ |
108,902 |
|
$ |
109,071 |
|
$ |
(169 |
) |
|
Total performance fee income (loss) (1) |
|
9,777 |
|
|
19,432 |
|
|
(9,655 |
) |
|
Total fee income |
$ |
118,679 |
|
$ |
128,503 |
|
$ |
(9,824 |
) |
| (1) | Performance fees are based on the performance of the individual vehicles or products, and may be negative in a particular period if, for example, large losses occur, which can potentially result in no performance fees or the reversal of previously accrued performance fees. |
-
Total fee income decreased
$9.8 million
– Relatively stable management fee income in 2022. The management fees in both years were impacted by a deferral of management fees in DaVinci as a result of the large losses experienced in both years.
– Lower performance fee income in 2022 was primarily due to the impact of the 2022 Weather-Related Large Losses on the results of the Company’s joint ventures and managed funds, partially offset by higher favorable development on prior year losses in DaVinci.
Investment Results: Net investment income increased
|
Investment Results |
|
|
|
|
|
||||||
|
|
Twelve months ended
|
|
Y/Y
|
||||||||
|
(in thousands, except percentages) |
2022 |
|
2021 |
|
|||||||
|
Net investment income |
$ |
559,932 |
|
|
$ |
319,479 |
|
|
$ |
240,453 |
|
|
Net realized and unrealized gains (losses) on investments |
|
(1,800,485 |
) |
|
|
(218,134 |
) |
|
|
(1,582,351 |
) |
|
Total investment result |
$ |
(1,240,553 |
) |
|
$ |
101,345 |
|
|
$ |
(1,341,898 |
) |
|
Total investment return |
|
(5.7 |
)% |
|
|
0.5 |
% |
|
(6.2) pts |
||
-
Total investment result decreased
$1.3 billion
– Net realized and unrealized losses in 2022 of
– Net investment income increased as a result of higher interest rates and increased yields within the Company’s investment portfolio, primarily driven by an increase in yields on
Other Items of Note - Full Year and Subsequent Events |
-
Net loss attributable to redeemable noncontrolling interests of
$98.6 million
– Net realized and unrealized losses on investments in DaVinci, Vermeer, Fontana and Medici, including losses on its catastrophe bonds portfolio; and
– Impact of the 2022 Weather-Related Large Losses on DaVinci, Vermeer and Medici; partially offset by
– Net investment income in Vermeer.
-
Income tax benefit of
$59.0 million -
Net foreign exchange losses of
$56.9 million $41.0 million -
Raised third party capital of
$1.4 billion $462.7 million $350.1 million $273.7 million $250.0 million $79.0 million -
Redemptions of third-party capital of
$687.6 million $425.8 million -
Repurchased 1.1 million common shares at an aggregate cost of
$162.8 million $155.00 -
Raised third party capital of
$402.9 million January 1, 2023 , including$377.2 million 25.4% and12.5% , respectively. -
Mona Lisa Re issued$185 million January 10, 2023 .
Conference Call Details and Additional Information |
Non-GAAP Financial Measures and Additional Financial Information
This Press Release includes certain financial measures that are not calculated in accordance with generally accepted accounting principles in the
Please refer to the “Investors - 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.
Conference Call Information
About
Cautionary Statement Regarding Forward-Looking Statements
Any forward-looking statements made in this Press Release reflect RenaissanceRe’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are subject to numerous factors that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements, including the following: the Company’s exposure to natural and non-natural catastrophic events and circumstances and the variance it may cause in the Company’s financial results; the effect of climate change on the Company’s business, including the trend towards increasingly frequent and severe climate events; the effectiveness of the Company’s claims and claim expense reserving process; the effect of emerging claims and coverage issues; the performance of the Company’s investment portfolio and financial market volatility; the effects of inflation; the ability of the Company’s ceding companies and delegated authority counterparties to accurately assess the risks they underwrite; the Company’s ability to maintain its financial strength ratings; the highly competitive nature of the Company’s industry and its reliance on a small number of brokers; collection on claimed retrocessional coverage, and new retrocessional reinsurance being available on acceptable terms or at all; the historically cyclical nature of the (re)insurance industries; the Company’s ability to attract and retain key executives and employees; the Company’s ability to successfully implement its business strategies and initiatives; the Company’s exposure to credit loss from counterparties; the Company’s need to make many estimates and judgments in the preparation of its financial statements; the Company’s ability to effectively manage capital on behalf of investors in joint ventures or other entities it manages; changes to the accounting rules and regulatory systems applicable to the Company’s business, including changes in
|
|||||||||||||||
Summary Consolidated Statements of Operations |
|||||||||||||||
(in thousands of United States Dollars, except per share amounts and percentages) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three months ended |
|
Twelve months ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues |
|
|
|
|
|
|
|
||||||||
Gross premiums written |
$ |
1,585,276 |
|
|
$ |
1,313,018 |
|
|
$ |
9,213,540 |
|
|
$ |
7,833,798 |
|
Net premiums written |
$ |
1,345,616 |
|
|
$ |
1,116,560 |
|
|
$ |
7,196,160 |
|
|
$ |
5,939,375 |
|
Decrease (increase) in unearned premiums |
|
278,544 |
|
|
|
224,730 |
|
|
|
(862,171 |
) |
|
|
(745,194 |
) |
Net premiums earned |
|
1,624,160 |
|
|
|
1,341,290 |
|
|
|
6,333,989 |
|
|
|
5,194,181 |
|
Net investment income |
|
211,237 |
|
|
|
80,483 |
|
|
|
559,932 |
|
|
|
319,479 |
|
Net foreign exchange gains (losses) |
|
10,781 |
|
|
|
(16,697 |
) |
|
|
(56,909 |
) |
|
|
(41,006 |
) |
Equity in earnings (losses) of other ventures |
|
8,517 |
|
|
|
3,830 |
|
|
|
11,249 |
|
|
|
12,309 |
|
Other income (loss) |
|
7,686 |
|
|
|
6,431 |
|
|
|
12,636 |
|
|
|
10,880 |
|
Net realized and unrealized gains (losses) on investments |
|
168,139 |
|
|
|
(21,518 |
) |
|
|
(1,800,485 |
) |
|
|
(218,134 |
) |
Total revenues |
|
2,030,520 |
|
|
|
1,393,819 |
|
|
|
5,060,412 |
|
|
|
5,277,709 |
|
Expenses |
|
|
|
|
|
|
|
||||||||
Net claims and claim expenses incurred |
|
822,937 |
|
|
|
690,970 |
|
|
|
4,338,840 |
|
|
|
3,876,087 |
|
Acquisition expenses |
|
413,217 |
|
|
|
333,986 |
|
|
|
1,568,606 |
|
|
|
1,214,858 |
|
Operational expenses |
|
71,704 |
|
|
|
39,673 |
|
|
|
276,691 |
|
|
|
212,184 |
|
Corporate expenses |
|
11,537 |
|
|
|
10,426 |
|
|
|
46,775 |
|
|
|
41,152 |
|
Interest expense |
|
12,384 |
|
|
|
11,872 |
|
|
|
48,335 |
|
|
|
47,536 |
|
Total expenses |
|
1,331,779 |
|
|
|
1,086,927 |
|
|
|
6,279,247 |
|
|
|
5,391,817 |
|
Income (loss) before taxes |
|
698,741 |
|
|
|
306,892 |
|
|
|
(1,218,835 |
) |
|
|
(114,108 |
) |
Income tax benefit (expense) |
|
(5,408 |
) |
|
|
(18,616 |
) |
|
|
59,019 |
|
|
|
10,668 |
|
Net income (loss) |
|
693,333 |
|
|
|
288,276 |
|
|
|
(1,159,816 |
) |
|
|
(103,440 |
) |
Net (income) loss attributable to redeemable noncontrolling interests |
|
(236,397 |
) |
|
|
(68,516 |
) |
|
|
98,613 |
|
|
|
63,285 |
|
Net income (loss) attributable to |
|
456,936 |
|
|
|
219,760 |
|
|
|
(1,061,203 |
) |
|
|
(40,155 |
) |
Dividends on preference shares |
|
(8,844 |
) |
|
|
(8,843 |
) |
|
|
(35,375 |
) |
|
|
(33,266 |
) |
Net income (loss) available (attributable) to |
$ |
448,092 |
|
|
$ |
210,917 |
|
|
$ |
(1,096,578 |
) |
|
$ |
(73,421 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) available (attributable) to |
$ |
10.30 |
|
|
$ |
4.65 |
|
|
$ |
(25.50 |
) |
|
$ |
(1.57 |
) |
Net income (loss) available (attributable) to |
$ |
10.27 |
|
|
$ |
4.65 |
|
|
$ |
(25.50 |
) |
|
$ |
(1.57 |
) |
Operating (loss) income (attributable) available to |
$ |
7.33 |
|
|
$ |
4.71 |
|
|
$ |
7.30 |
|
|
$ |
1.72 |
|
|
|
|
|
|
|
|
|
||||||||
Average shares outstanding - basic |
|
42,795 |
|
|
|
44,722 |
|
|
|
43,040 |
|
|
|
47,171 |
|
Average shares outstanding - diluted |
|
42,914 |
|
|
|
44,748 |
|
|
|
43,040 |
|
|
|
47,171 |
|
|
|
|
|
|
|
|
|
||||||||
Net claims and claim expense ratio |
|
50.7 |
% |
|
|
51.5 |
% |
|
|
68.5 |
% |
|
|
74.6 |
% |
Underwriting expense ratio |
|
29.8 |
% |
|
|
27.9 |
% |
|
|
29.2 |
% |
|
|
27.5 |
% |
Combined ratio |
|
80.5 |
% |
|
|
79.4 |
% |
|
|
97.7 |
% |
|
|
102.1 |
% |
|
|
|
|
|
|
|
|
||||||||
Return on average common equity - annualized |
|
41.2 |
% |
|
|
14.2 |
% |
|
|
(22.0 |
)% |
|
|
(1.1 |
)% |
Operating return on average common equity - annualized (1) |
|
29.6 |
% |
|
|
14.4 |
% |
|
|
6.3 |
% |
|
|
1.3 |
% |
| (1) | See Comments on Regulation G for a reconciliation of non-GAAP financial measures. |
|
|||||||
Summary Consolidated Balance Sheets |
|||||||
(in thousands of United States Dollars, except per share amounts) |
|||||||
|
|
|
|
||||
|
|
|
|
||||
Assets |
(Unaudited) |
|
(Audited) |
||||
Fixed maturity investments trading, at fair value |
$ |
14,351,402 |
|
|
$ |
13,507,131 |
|
Short term investments, at fair value |
|
4,669,272 |
|
|
|
5,298,385 |
|
Equity investments, at fair value |
|
625,058 |
|
|
|
546,016 |
|
Other investments, at fair value |
|
2,494,954 |
|
|
|
1,993,059 |
|
Investments in other ventures, under equity method |
|
79,750 |
|
|
|
98,068 |
|
Total investments |
|
22,220,436 |
|
|
|
21,442,659 |
|
Cash and cash equivalents |
|
1,194,339 |
|
|
|
1,859,019 |
|
Premiums receivable |
|
5,139,471 |
|
|
|
3,781,542 |
|
Prepaid reinsurance premiums |
|
1,021,412 |
|
|
|
854,722 |
|
Reinsurance recoverable |
|
4,710,925 |
|
|
|
4,268,669 |
|
Accrued investment income |
|
121,501 |
|
|
|
55,740 |
|
Deferred acquisition costs |
|
1,171,738 |
|
|
|
849,160 |
|
Receivable for investments sold |
|
350,526 |
|
|
|
380,442 |
|
Other assets |
|
384,702 |
|
|
|
224,053 |
|
|
|
237,828 |
|
|
|
243,496 |
|
Total assets |
$ |
36,552,878 |
|
|
$ |
33,959,502 |
|
Liabilities, Noncontrolling Interests and Shareholders’ Equity |
|
|
|
||||
Liabilities |
|
|
|
||||
Reserve for claims and claim expenses |
$ |
15,892,573 |
|
|
$ |
13,294,630 |
|
Unearned premiums |
|
4,559,107 |
|
|
|
3,531,213 |
|
Debt |
|
1,170,442 |
|
|
|
1,168,353 |
|
Reinsurance balances payable |
|
3,928,281 |
|
|
|
3,860,963 |
|
Payable for investments purchased |
|
493,776 |
|
|
|
1,170,568 |
|
Other liabilities |
|
648,036 |
|
|
|
755,441 |
|
Total liabilities |
|
26,692,215 |
|
|
|
23,781,168 |
|
Redeemable noncontrolling interests |
|
4,535,389 |
|
|
|
3,554,053 |
|
Shareholders’ Equity |
|
|
|
||||
Preference shares |
|
750,000 |
|
|
|
750,000 |
|
Common shares |
|
43,718 |
|
|
|
44,445 |
|
Additional paid-in capital |
|
475,647 |
|
|
|
608,121 |
|
Accumulated other comprehensive income (loss) |
|
(15,462 |
) |
|
|
(10,909 |
) |
Retained earnings |
|
4,071,371 |
|
|
|
5,232,624 |
|
Total shareholders’ equity attributable to |
|
5,325,274 |
|
|
|
6,624,281 |
|
Total liabilities, noncontrolling interests and shareholders’ equity |
$ |
36,552,878 |
|
|
$ |
33,959,502 |
|
|
|
|
|
||||
Book value per common share |
$ |
104.65 |
|
|
$ |
132.17 |
|
|
|||||||||||||||
Supplemental Financial Data - Segment Information |
|||||||||||||||
(in thousands of United States Dollars, except percentages) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three months ended |
||||||||||||||
|
Property |
|
Casualty and
|
|
Other |
|
Total |
||||||||
Gross premiums written |
$ |
372,082 |
|
|
$ |
1,213,194 |
|
|
$ |
— |
|
|
$ |
1,585,276 |
|
Net premiums written |
$ |
372,998 |
|
|
$ |
972,618 |
|
|
$ |
— |
|
|
$ |
1,345,616 |
|
Net premiums earned |
$ |
688,238 |
|
|
$ |
935,922 |
|
|
$ |
— |
|
|
$ |
1,624,160 |
|
Net claims and claim expenses incurred |
|
240,503 |
|
|
|
582,434 |
|
|
|
— |
|
|
|
822,937 |
|
Acquisition expenses |
|
140,872 |
|
|
|
272,345 |
|
|
|
— |
|
|
|
413,217 |
|
Operational expenses |
|
49,638 |
|
|
|
22,066 |
|
|
|
— |
|
|
|
71,704 |
|
Underwriting income (loss) |
$ |
257,225 |
|
|
$ |
59,077 |
|
|
$ |
— |
|
|
|
316,302 |
|
Net investment income |
|
|
|
|
|
211,237 |
|
|
|
211,237 |
|
||||
Net foreign exchange gains (losses) |
|
|
|
|
|
10,781 |
|
|
|
10,781 |
|
||||
Equity in earnings of other ventures |
|
|
|
|
|
8,517 |
|
|
|
8,517 |
|
||||
Other income (loss) |
|
|
|
|
|
7,686 |
|
|
|
7,686 |
|
||||
Net realized and unrealized gains (losses) on investments |
|
|
|
|
|
168,139 |
|
|
|
168,139 |
|
||||
Corporate expenses |
|
|
|
|
|
(11,537 |
) |
|
|
(11,537 |
) |
||||
Interest expense |
|
|
|
|
|
(12,384 |
) |
|
|
(12,384 |
) |
||||
Income (loss) before taxes and redeemable noncontrolling interests |
|
|
|
|
|
|
|
698,741 |
|
||||||
Income tax benefit (expense) |
|
|
|
|
|
(5,408 |
) |
|
|
(5,408 |
) |
||||
Net (income) loss attributable to redeemable noncontrolling interests |
|
|
|
|
|
(236,397 |
) |
|
|
(236,397 |
) |
||||
Dividends on preference shares |
|
|
|
|
|
(8,844 |
) |
|
|
(8,844 |
) |
||||
Net income (loss) available (attributable) to |
|
|
|
|
|
|
$ |
448,092 |
|
||||||
|
|
|
|
|
|
|
|
||||||||
Net claims and claim expenses incurred – current accident year |
$ |
370,175 |
|
|
$ |
607,648 |
|
|
$ |
— |
|
|
$ |
977,823 |
|
Net claims and claim expenses incurred – prior accident years |
|
(129,672 |
) |
|
|
(25,214 |
) |
|
|
— |
|
|
|
(154,886 |
) |
Net claims and claim expenses incurred – total |
$ |
240,503 |
|
|
$ |
582,434 |
|
|
$ |
— |
|
|
$ |
822,937 |
|
|
|
|
|
|
|
|
|
||||||||
Net claims and claim expense ratio – current accident year |
|
53.8 |
% |
|
|
64.9 |
% |
|
|
|
|
60.2 |
% |
||
Net claims and claim expense ratio – prior accident years |
|
(18.9 |
)% |
|
|
(2.7 |
)% |
|
|
|
|
(9.5 |
)% |
||
Net claims and claim expense ratio – calendar year |
|
34.9 |
% |
|
|
62.2 |
% |
|
|
|
|
50.7 |
% |
||
Underwriting expense ratio |
|
27.7 |
% |
|
|
31.5 |
% |
|
|
|
|
29.8 |
% |
||
Combined ratio |
|
62.6 |
% |
|
|
93.7 |
% |
|
|
|
|
80.5 |
% |
||
|
|
|
|
|
|
|
|
||||||||
|
Three months ended |
||||||||||||||
|
Property |
|
Casualty and
|
|
Other |
|
Total |
||||||||
Gross premiums written |
$ |
384,657 |
|
|
$ |
928,361 |
|
|
$ |
— |
|
|
$ |
1,313,018 |
|
Net premiums written |
$ |
375,112 |
|
|
$ |
741,448 |
|
|
$ |
— |
|
|
$ |
1,116,560 |
|
Net premiums earned |
$ |
626,359 |
|
|
$ |
714,931 |
|
|
$ |
— |
|
|
$ |
1,341,290 |
|
Net claims and claim expenses incurred |
|
243,356 |
|
|
|
447,614 |
|
|
|
— |
|
|
|
690,970 |
|
Acquisition expenses |
|
131,007 |
|
|
|
202,979 |
|
|
|
— |
|
|
|
333,986 |
|
Operational expenses |
|
28,898 |
|
|
|
10,775 |
|
|
|
— |
|
|
|
39,673 |
|
Underwriting income (loss) |
$ |
223,098 |
|
|
$ |
53,563 |
|
|
$ |
— |
|
|
|
276,661 |
|
Net investment income |
|
|
|
|
|
80,483 |
|
|
|
80,483 |
|
||||
Net foreign exchange gains (losses) |
|
|
|
|
|
(16,697 |
) |
|
|
(16,697 |
) |
||||
Equity in earnings of other ventures |
|
|
|
|
|
3,830 |
|
|
|
3,830 |
|
||||
Other income (loss) |
|
|
|
|
|
6,431 |
|
|
|
6,431 |
|
||||
Net realized and unrealized gains (losses) on investments |
|
|
|
|
|
(21,518 |
) |
|
|
(21,518 |
) |
||||
Corporate expenses |
|
|
|
|
|
(10,426 |
) |
|
|
(10,426 |
) |
||||
Interest expense |
|
|
|
|
|
(11,872 |
) |
|
|
(11,872 |
) |
||||
Income (loss) before taxes and redeemable noncontrolling interests |
|
|
|
|
|
|
|
306,892 |
|
||||||
Income tax benefit (expense) |
|
|
|
|
|
(18,616 |
) |
|
|
(18,616 |
) |
||||
Net (income) loss attributable to redeemable noncontrolling interests |
|
|
|
|
|
(68,516 |
) |
|
|
(68,516 |
) |
||||
Dividends on preference shares |
|
|
|
|
|
(8,843 |
) |
|
|
(8,843 |
) |
||||
Net income (loss) available (attributable) to |
|
|
|
|
|
|
$ |
210,917 |
|
||||||
|
|
|
|
|
|
|
|
||||||||
Net claims and claim expenses incurred – current accident year |
$ |
274,649 |
|
|
$ |
457,080 |
|
|
$ |
— |
|
|
$ |
731,729 |
|
Net claims and claim expenses incurred – prior accident years |
|
(31,293 |
) |
|
|
(9,466 |
) |
|
|
— |
|
|
|
(40,759 |
) |
Net claims and claim expenses incurred – total |
$ |
243,356 |
|
|
$ |
447,614 |
|
|
$ |
— |
|
|
$ |
690,970 |
|
|
|
|
|
|
|
|
|
||||||||
Net claims and claim expense ratio – current accident year |
|
43.8 |
% |
|
|
63.9 |
% |
|
|
|
|
54.6 |
% |
||
Net claims and claim expense ratio – prior accident years |
|
(4.9 |
)% |
|
|
(1.3 |
)% |
|
|
|
|
(3.1 |
)% |
||
Net claims and claim expense ratio – calendar year |
|
38.9 |
% |
|
|
62.6 |
% |
|
|
|
|
51.5 |
% |
||
Underwriting expense ratio |
|
25.5 |
% |
|
|
29.9 |
% |
|
|
|
|
27.9 |
% |
||
Combined ratio |
|
64.4 |
% |
|
|
92.5 |
% |
|
|
|
|
79.4 |
% |
||
|
|||||||||||||||
Supplemental Financial Data - Segment Information |
|||||||||||||||
(in thousands of United States Dollars, except percentages) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Year ended |
||||||||||||||
|
Property |
|
Casualty and
|
|
Other |
|
Total |
||||||||
Gross premiums written |
$ |
3,734,241 |
|
|
$ |
5,479,299 |
|
|
$ |
— |
|
|
$ |
9,213,540 |
|
Net premiums written |
$ |
2,847,659 |
|
|
$ |
4,348,501 |
|
|
$ |
— |
|
|
$ |
7,196,160 |
|
Net premiums earned |
$ |
2,770,227 |
|
|
$ |
3,563,762 |
|
|
$ |
— |
|
|
$ |
6,333,989 |
|
Net claims and claim expenses incurred |
|
2,044,771 |
|
|
|
2,294,069 |
|
|
|
— |
|
|
|
4,338,840 |
|
Acquisition expenses |
|
547,210 |
|
|
|
1,021,396 |
|
|
|
— |
|
|
|
1,568,606 |
|
Operational expenses |
|
194,355 |
|
|
|
82,336 |
|
|
|
— |
|
|
|
276,691 |
|
Underwriting income (loss) |
$ |
(16,109 |
) |
|
$ |
165,961 |
|
|
$ |
— |
|
|
|
149,852 |
|
Net investment income |
|
|
|
|
|
559,932 |
|
|
|
559,932 |
|
||||
Net foreign exchange gain (loss) |
|
|
|
|
|
(56,909 |
) |
|
|
(56,909 |
) |
||||
Equity in earnings of other ventures |
|
|
|
|
|
11,249 |
|
|
|
11,249 |
|
||||
Other income (loss) |
|
|
|
|
|
12,636 |
|
|
|
12,636 |
|
||||
Net realized and unrealized gain (loss) on investments |
|
|
|
|
|
(1,800,485 |
) |
|
|
(1,800,485 |
) |
||||
Corporate expenses |
|
|
|
|
|
(46,775 |
) |
|
|
(46,775 |
) |
||||
Interest expense |
|
|
|
|
|
(48,335 |
) |
|
|
(48,335 |
) |
||||
Income (loss) before taxes and redeemable noncontrolling interests |
|
|
|
|
|
|
|
(1,218,835 |
) |
||||||
Income tax benefit (expense) |
|
|
|
|
|
59,019 |
|
|
|
59,019 |
|
||||
Net (income) loss attributable to redeemable noncontrolling interests |
|
|
|
|
|
98,613 |
|
|
|
98,613 |
|
||||
Dividends on preference shares |
|
|
|
|
|
(35,375 |
) |
|
|
(35,375 |
) |
||||
Net income (loss) available (attributable) to |
|
|
|
|
|
|
$ |
(1,096,578 |
) |
||||||
|
|
|
|
|
|
|
|
||||||||
Net claims and claim expenses incurred – current accident year |
$ |
2,250,512 |
|
|
$ |
2,335,910 |
|
|
$ |
— |
|
|
$ |
4,586,422 |
|
Net claims and claim expenses incurred – prior accident years |
|
(205,741 |
) |
|
|
(41,841 |
) |
|
|
— |
|
|
|
(247,582 |
) |
Net claims and claim expenses incurred – total |
$ |
2,044,771 |
|
|
$ |
2,294,069 |
|
|
$ |
— |
|
|
$ |
4,338,840 |
|
|
|
|
|
|
|
|
|
||||||||
Net claims and claim expense ratio – current accident year |
|
81.2 |
% |
|
|
65.5 |
% |
|
|
|
|
72.4 |
% |
||
Net claims and claim expense ratio – prior accident years |
|
(7.4 |
)% |
|
|
(1.1 |
)% |
|
|
|
|
(3.9 |
)% |
||
Net claims and claim expense ratio – calendar year |
|
73.8 |
% |
|
|
64.4 |
% |
|
|
|
|
68.5 |
% |
||
Underwriting expense ratio |
|
26.8 |
% |
|
|
30.9 |
% |
|
|
|
|
29.2 |
% |
||
Combined ratio |
|
100.6 |
% |
|
|
95.3 |
% |
|
|
|
|
97.7 |
% |
||
|
|
|
|
|
|
|
|
||||||||
|
Year ended |
||||||||||||||
|
Property |
|
Casualty and
|
|
Other |
|
Total |
||||||||
Gross premiums written |
$ |
3,958,724 |
|
|
$ |
3,875,074 |
|
|
$ |
— |
|
|
$ |
7,833,798 |
|
Net premiums written |
$ |
2,868,002 |
|
|
$ |
3,071,373 |
|
|
$ |
— |
|
|
$ |
5,939,375 |
|
Net premiums earned |
$ |
2,608,298 |
|
|
$ |
2,585,883 |
|
|
$ |
— |
|
|
$ |
5,194,181 |
|
Net claims and claim expenses incurred |
|
2,163,016 |
|
|
|
1,713,071 |
|
|
|
— |
|
|
|
3,876,087 |
|
Acquisition expenses |
|
487,178 |
|
|
|
727,680 |
|
|
|
— |
|
|
|
1,214,858 |
|
Operational expenses |
|
143,608 |
|
|
|
68,576 |
|
|
|
— |
|
|
|
212,184 |
|
Underwriting income (loss) |
$ |
(185,504 |
) |
|
$ |
76,556 |
|
|
$ |
— |
|
|
|
(108,948 |
) |
Net investment income |
|
|
|
|
|
319,479 |
|
|
|
319,479 |
|
||||
Net foreign exchange gain (loss) |
|
|
|
|
|
(41,006 |
) |
|
|
(41,006 |
) |
||||
Equity in earnings of other ventures |
|
|
|
|
|
12,309 |
|
|
|
12,309 |
|
||||
Other income (loss) |
|
|
|
|
|
10,880 |
|
|
|
10,880 |
|
||||
Net realized and unrealized gain (loss) on investments |
|
|
|
|
|
(218,134 |
) |
|
|
(218,134 |
) |
||||
Corporate expenses |
|
|
|
|
|
(41,152 |
) |
|
|
(41,152 |
) |
||||
Interest expense |
|
|
|
|
|
(47,536 |
) |
|
|
(47,536 |
) |
||||
Income (loss) before taxes and redeemable noncontrolling interests |
|
|
|
|
|
|
|
(114,108 |
) |
||||||
Income tax benefit (expense) |
|
|
|
|
|
10,668 |
|
|
|
10,668 |
|
||||
Net (income) loss attributable to redeemable noncontrolling interests |
|
|
|
|
|
63,285 |
|
|
|
63,285 |
|
||||
Dividends on preference shares |
|
|
|
|
|
(33,266 |
) |
|
|
(33,266 |
) |
||||
Net income (loss) available (attributable) to |
|
|
|
|
|
|
$ |
(73,421 |
) |
||||||
|
|
|
|
|
|
|
|
||||||||
Net claims and claim expenses incurred – current accident year |
$ |
2,396,389 |
|
|
$ |
1,729,168 |
|
|
$ |
— |
|
|
$ |
4,125,557 |
|
Net claims and claim expenses incurred – prior accident years |
|
(233,373 |
) |
|
|
(16,097 |
) |
|
|
— |
|
|
|
(249,470 |
) |
Net claims and claim expenses incurred – total |
$ |
2,163,016 |
|
|
$ |
1,713,071 |
|
|
$ |
— |
|
|
$ |
3,876,087 |
|
|
|
|
|
|
|
|
|
||||||||
Net claims and claim expense ratio – current accident year |
|
91.9 |
% |
|
|
66.9 |
% |
|
|
|
|
79.4 |
% |
||
Net claims and claim expense ratio – prior accident years |
|
(9.0 |
)% |
|
|
(0.7 |
)% |
|
|
|
|
(4.8 |
)% |
||
Net claims and claim expense ratio – calendar year |
|
82.9 |
% |
|
|
66.2 |
% |
|
|
|
|
74.6 |
% |
||
Underwriting expense ratio |
|
24.2 |
% |
|
|
30.8 |
% |
|
|
|
|
27.5 |
% |
||
Combined ratio |
|
107.1 |
% |
|
|
97.0 |
% |
|
|
|
|
102.1 |
% |
||
|
||||||||||||
Supplemental Financial Data - Gross Premiums Written |
||||||||||||
(in thousands of United States Dollars) |
||||||||||||
(Unaudited) |
||||||||||||
|
|
|
|
|||||||||
|
Three months ended |
|
Twelve months ended |
|||||||||
|
|
|
|
|
|
|
|
|||||
Property Segment |
|
|
|
|
|
|
|
|||||
Catastrophe |
$ |
(4,019 |
) |
|
$ |
7,795 |
|
$ |
2,076,752 |
|
$ |
2,235,736 |
Other property |
|
376,101 |
|
|
|
376,862 |
|
|
1,657,489 |
|
|
1,722,988 |
Property segment gross premiums written |
$ |
372,082 |
|
|
$ |
384,657 |
|
$ |
3,734,241 |
|
$ |
3,958,724 |
|
|
|
|
|
|
|
|
|||||
Casualty and Specialty Segment |
|
|
|
|
|
|
|
|||||
General casualty (1) |
$ |
359,901 |
|
|
$ |
281,926 |
|
$ |
1,560,594 |
|
$ |
1,258,536 |
Professional liability (2) |
|
349,925 |
|
|
|
333,257 |
|
|
1,728,570 |
|
|
1,283,864 |
Credit (3) |
|
217,736 |
|
|
|
139,799 |
|
|
1,062,183 |
|
|
498,946 |
Other specialty (4) |
|
285,632 |
|
|
|
173,379 |
|
|
1,127,952 |
|
|
833,728 |
Casualty and Specialty segment gross premiums written |
$ |
1,213,194 |
|
|
$ |
928,361 |
|
$ |
5,479,299 |
|
$ |
3,875,074 |
(1) |
Includes automobile liability, casualty clash, employer’s liability, umbrella or excess casualty, workers’ compensation and general liability. |
|
(2) |
Includes directors and officers, medical malpractice, and professional indemnity. |
|
(3) |
Includes financial guaranty, mortgage guaranty, political risk, surety and trade credit. |
|
(4) |
Includes accident and health, agriculture, aviation, cyber, energy, marine, satellite and terrorism. Lines of business such as regional multi-line and whole account may have characteristics of various other classes of business, and are allocated accordingly. |
|
|||||||||||||||
Supplemental Financial Data - Total Investment Result |
|||||||||||||||
(in thousands of United States Dollars, except percentages) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three months ended |
|
Twelve months ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Fixed maturity investments trading |
$ |
136,019 |
|
|
$ |
55,643 |
|
|
$ |
382,165 |
|
|
$ |
234,911 |
|
Short term investments |
|
23,908 |
|
|
|
464 |
|
|
|
41,042 |
|
|
|
2,333 |
|
Equity investments |
|
7,474 |
|
|
|
4,077 |
|
|
|
20,864 |
|
|
|
9,017 |
|
Other investments |
|
|
|
|
|
|
|
||||||||
Catastrophe bonds |
|
31,441 |
|
|
|
16,527 |
|
|
|
94,784 |
|
|
|
64,860 |
|
Other |
|
13,793 |
|
|
|
8,100 |
|
|
|
37,497 |
|
|
|
28,811 |
|
Cash and cash equivalents |
|
3,947 |
|
|
|
74 |
|
|
|
5,197 |
|
|
|
297 |
|
|
|
216,582 |
|
|
|
84,885 |
|
|
|
581,549 |
|
|
|
340,229 |
|
Investment expenses |
|
(5,345 |
) |
|
|
(4,402 |
) |
|
|
(21,617 |
) |
|
|
(20,750 |
) |
Net investment income |
|
211,237 |
|
|
|
80,483 |
|
|
|
559,932 |
|
|
|
319,479 |
|
|
|
|
|
|
|
|
|
||||||||
Net investment income return - annualized |
|
4.1 |
% |
|
|
1.5 |
% |
|
|
2.7 |
% |
|
|
1.5 |
% |
|
|
|
|
|
|
|
|
||||||||
Net realized gains (losses) on fixed maturity investments trading |
|
(110,762 |
) |
|
|
(1,472 |
) |
|
|
(732,561 |
) |
|
|
79,588 |
|
Net unrealized gains (losses) on fixed maturity investments trading |
|
187,900 |
|
|
|
(99,504 |
) |
|
|
(636,762 |
) |
|
|
(389,376 |
) |
Net realized and unrealized gains (losses) on investments-related derivatives |
|
(3,347 |
) |
|
|
(15,713 |
) |
|
|
(165,293 |
) |
|
|
(12,237 |
) |
Net realized gains (losses) on equity investments |
|
4,397 |
|
|
|
79,589 |
|
|
|
43,035 |
|
|
|
335,491 |
|
Net unrealized gains (losses) on equity investments |
|
55,251 |
|
|
|
(5,944 |
) |
|
|
(166,823 |
) |
|
|
(285,882 |
) |
Other investments |
|
|
|
|
|
|
|
||||||||
Net realized and unrealized gains (losses) on other investments - catastrophe bonds |
|
29,578 |
|
|
|
(9,958 |
) |
|
|
(130,335 |
) |
|
|
(35,033 |
) |
Net realized and unrealized gains (losses) on other investments - other |
|
5,122 |
|
|
|
31,484 |
|
|
|
(11,746 |
) |
|
|
89,315 |
|
Net realized and unrealized gains (losses) on investments |
|
168,139 |
|
|
|
(21,518 |
) |
|
|
(1,800,485 |
) |
|
|
(218,134 |
) |
Total investment result |
$ |
379,376 |
|
|
$ |
58,965 |
|
|
$ |
(1,240,553 |
) |
|
$ |
101,345 |
|
|
|
|
|
|
|
|
|
||||||||
Total investment return - annualized |
|
7.4 |
% |
|
|
1.1 |
% |
|
|
(5.7 |
)% |
|
|
0.5 |
% |
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 within the meaning of Regulation
Operating Income (Loss) Available (Attributable) to RenaissanceRe Common Shareholders and Operating Return on Average Common Equity - Annualized
The Company uses “operating income (loss) available (attributable) to
|
Three months ended |
|
Twelve months ended |
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(in thousands of United States Dollars, except per share amounts and percentages) |
|
|
|
|
|
|
|
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Net income (loss) available (attributable) to |
$ |
448,092 |
|
|
$ |
210,917 |
|
|
$ |
(1,096,578 |
) |
|
$ |
(73,421 |
) |
Adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds |
|
(138,561 |
) |
|
|
11,560 |
|
|
|
1,670,150 |
|
|
|
183,101 |
|
Adjustment for net foreign exchange losses (gains) |
|
(10,781 |
) |
|
|
16,697 |
|
|
|
56,909 |
|
|
|
41,006 |
|
Adjustment for corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
135 |
|
Adjustment for income tax expense (benefit) (1) |
|
(5,818 |
) |
|
|
(3,628 |
) |
|
|
(83,149 |
) |
|
|
(11,521 |
) |
Adjustment for net income (loss) attributable to redeemable noncontrolling interests (2) |
|
29,221 |
|
|
|
(21,854 |
) |
|
|
(231,776 |
) |
|
|
(57,701 |
) |
Operating income (loss) available (attributable) to |
$ |
322,153 |
|
|
$ |
213,692 |
|
|
$ |
315,556 |
|
|
$ |
81,599 |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) available (attributable) to |
$ |
10.27 |
|
|
$ |
4.65 |
|
|
$ |
(25.50 |
) |
|
$ |
(1.57 |
) |
Adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds |
|
(3.23 |
) |
|
|
0.26 |
|
|
|
38.80 |
|
|
|
3.88 |
|
Adjustment for net foreign exchange losses (gains) |
|
(0.25 |
) |
|
|
0.37 |
|
|
|
1.32 |
|
|
|
0.87 |
|
Adjustment for corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjustment for income tax expense (benefit) (1) |
|
(0.14 |
) |
|
|
(0.08 |
) |
|
|
(1.93 |
) |
|
|
(0.24 |
) |
Adjustment for net income (loss) attributable to redeemable noncontrolling interests (2) |
|
0.68 |
|
|
|
(0.49 |
) |
|
|
(5.39 |
) |
|
|
(1.22 |
) |
Operating income (loss) available (attributable) to |
$ |
7.33 |
|
|
$ |
4.71 |
|
|
$ |
7.30 |
|
|
$ |
1.72 |
|
|
|
|
|
|
|
|
|
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Return on average common equity - annualized |
|
41.2 |
% |
|
|
14.2 |
% |
|
|
(22.0 |
)% |
|
|
(1.1 |
)% |
Adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds |
|
(12.8 |
)% |
|
|
0.8 |
% |
|
|
33.5 |
% |
|
|
2.9 |
% |
Adjustment for net foreign exchange losses (gains) |
|
(1.0 |
)% |
|
|
1.1 |
% |
|
|
1.1 |
% |
|
|
0.6 |
% |
Adjustment for corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe |
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
Adjustment for income tax expense (benefit) (1) |
|
(0.5 |
)% |
|
|
(0.2 |
)% |
|
|
(1.7 |
)% |
|
|
(0.2 |
)% |
Adjustment for net income (loss) attributable to redeemable noncontrolling interests (2) |
|
2.7 |
% |
|
|
(1.5 |
)% |
|
|
(4.6 |
)% |
|
|
(0.9 |
)% |
Operating return on average common equity - annualized |
|
29.6 |
% |
|
|
14.4 |
% |
|
|
6.3 |
% |
|
|
1.3 |
% |
(1) |
Represents the income tax (expense) benefit associated with the adjustments to net income (loss) available (attributable) to |
|
(2) |
Represents the portion of the adjustments above that are attributable to the Company’s redeemable noncontrolling interests, including the income tax impact of those adjustments. |
Tangible Book Value Per Common Share and Tangible Book Value Per Common Share Plus Accumulated Dividends
The Company has 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. 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 table 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.”
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|
|
|
|
|
|
|
|
|
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Book value per common share |
$ |
104.65 |
|
|
$ |
94.55 |
|
|
$ |
113.69 |
|
|
$ |
121.44 |
|
|
$ |
132.17 |
|
Adjustment for goodwill and other intangibles (1) |
|
(5.84 |
) |
|
|
(5.89 |
) |
|
|
(5.90 |
) |
|
|
(5.89 |
) |
|
|
(5.90 |
) |
Tangible book value per common share |
|
98.81 |
|
|
|
88.66 |
|
|
|
107.79 |
|
|
|
115.55 |
|
|
|
126.27 |
|
Adjustment for accumulated dividends |
|
25.00 |
|
|
|
24.63 |
|
|
|
24.26 |
|
|
|
23.89 |
|
|
|
23.52 |
|
Tangible book value per common share plus accumulated dividends |
$ |
123.81 |
|
|
$ |
113.29 |
|
|
$ |
132.05 |
|
|
$ |
139.44 |
|
|
$ |
149.79 |
|
|
|
|
|
|
|
|
|
|
|
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Quarterly change in book value per common share |
|
10.7 |
% |
|
|
(16.8 |
)% |
|
|
(6.4 |
)% |
|
|
(8.1 |
)% |
|
|
2.5 |
% |
Quarterly change in tangible book value per common share plus change in accumulated dividends |
|
11.9 |
% |
|
|
(17.4 |
)% |
|
|
(6.4 |
)% |
|
|
(8.2 |
)% |
|
|
2.8 |
% |
Year to date change in book value per common share |
|
(20.8 |
)% |
|
|
(28.5 |
)% |
|
|
(14.0 |
)% |
|
|
(8.1 |
)% |
|
|
(4.5 |
)% |
Year to date change in tangible book value per common share plus change in accumulated dividends |
|
(20.6 |
)% |
|
|
(28.9 |
)% |
|
|
(14.0 |
)% |
|
|
(8.2 |
)% |
|
|
(4.0 |
)% |
| (1) |
At |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230131005931/en/
INVESTOR CONTACT:
Senior Vice President, Finance & Investor Relations
(441) 239-4830
MEDIA CONTACT:
Vice President, Investor Relations
(441) 239-4946
or
Kekst CNC
(212) 521-4800
Source:
FAQ
What was RenaissanceRe's net loss for 2022?
How much did RenaissanceRe raise in third-party capital in 2022?
What was the growth rate of net premiums written for the Casualty and Specialty segments?
What was the annualized operating return on average common equity for Q4 2022?
How much net investment income did RenaissanceRe report in Q4 2022?
