RenaissanceRe Reports Third Quarter 2020 Net Income Available to Common Shareholders of $47.8 Million, or $0.94 Per Diluted Common Share; Operating Loss Attributable to Common Shareholders of $131.7 Million, or $2.64 Per Diluted Common Share

Rhea-AI Summary

RenaissanceRe Holdings Ltd. reported a net income of $47.8 million ($0.94/share) in Q3 2020, up from $36.7 million ($0.83/share) in Q3 2019. However, the operating loss was $131.7 million ($2.64/share), contrasting with an operating income of $32.7 million ($0.73/share) last year. The company faced a $321.7 million negative impact from major catastrophes, including hurricanes and wildfires, leading to a significant underwriting loss of $206.1 million and a combined ratio of 120.6%. Despite challenges, gross premiums rose 32.7% to $1.1 billion, driven by both segments.

Positive

• Gross premiums written increased by $282.0 million, or 32.7%, to $1.1 billion.
• Casualty and Specialty segment gross premiums rose by $168.6 million, or 30.8%.
• Total investment result was $307.8 million, with a 6.2% annualized total investment return.

Negative

• Operating loss of $131.7 million, compared to an operating income of $32.7 million last year.
• Underwriting loss of $206.1 million and a combined ratio of 120.6%, up from 100.4% in Q3 2019.
• Net negative impact of $321.7 million from catastrophes, significantly affecting underwriting results.

PEMBROKE, Bermuda--(BUSINESS WIRE)--RenaissanceRe Holdings Ltd. (NYSE: RNR) (the “Company” or “RenaissanceRe”) today reported net income available to RenaissanceRe common shareholders of $47.8 million, or $0.94 per diluted common share, in the third quarter of 2020, compared to $36.7 million, or $0.83 per diluted common share, in the third quarter of 2019. Operating loss attributable to RenaissanceRe common shareholders was $131.7 million, or $2.64 per diluted common share, in the third quarter of 2020, compared to operating income available to RenaissanceRe common shareholders of $32.7 million, or $0.73 per diluted common share, in the third quarter of 2019. The Company reported an annualized return on average common equity of 2.8% and an annualized operating return on average common equity of negative 7.7% in the third quarter of 2020, compared to 2.8% and 2.5%, respectively, in the third quarter of 2019. Book value per common share increased $0.86, or 0.6%, to $135.13 in the third quarter of 2020, compared to a 0.8% increase in the third quarter of 2019. Tangible book value per common share plus accumulated dividends increased $1.24, or 1.0%, to $151.33 in the third quarter of 2020, compared to a 1.1% increase in the third quarter of 2019.

Kevin J. O’Donnell, President and Chief Executive Officer of RenaissanceRe, commented: “Another active quarter further confirms the critical role RenaissanceRe plays in helping communities rebuild. Our results for the third quarter reflect the climate-change driven frequency of catastrophic events impacting the world, but these are risks that we understand well and are paid to take. As we approach the January renewal, I am confident we will successfully execute our strategy and profitably deploy significant capital by helping our customers solve their biggest problems.”

Third Quarter of 2020 Summary

• Net negative impact on net income available to RenaissanceRe common shareholders of $321.7 million resulting from Hurricane Laura, Hurricane Sally, the wildfires occurring in California, Oregon and Washington (the “Q3 2020 Wildfires”), other catastrophe events including the August 2020 derecho which impacted the U.S. Midwest, Hurricane Isaias, and Typhoon Maysak (the “Other Q3 2020 Catastrophe Events”), and loss estimates associated with aggregate loss contracts on these and other events in the third quarter of 2020 (collectively, the “Q3 2020 Large Loss Events”).
• Gross premiums written increased by $282.0 million, or 32.7%, to $1.1 billion, in the third quarter of 2020 compared to the third quarter of 2019, driven by an increase of $168.6 million in the Casualty and Specialty segment and an increase of $113.4 million in the Property segment.
• Underwriting loss of $206.1 million and a combined ratio of 120.6% in the third quarter of 2020, compared to an underwriting loss of $3.4 million and a combined ratio of 100.4% in the third quarter of 2019. The Property segment incurred an underwriting loss of $206.6 million and had a combined ratio of 140.0% in the third quarter of 2020. The Casualty and Specialty segment generated underwriting income of $0.6 million and had a combined ratio of 99.9% in the third quarter of 2020. The Company’s underwriting result in the third quarter of 2020 was principally impacted by the Q3 2020 Large Loss Events, which resulted in a net negative impact on the underwriting result of $422.4 million and added 43.4 percentage points to the combined ratio, primarily in the Property segment. The third quarter of 2019 included the impacts of Hurricane Dorian and Typhoon Faxai (collectively, the “Q3 2019 Catastrophe Events”), which resulted in an underwriting loss of $181.9 million and added 20.6 percentage points to the combined ratio.
• Total investment result was $307.8 million in the third quarter of 2020, generating an annualized total investment return of 6.2%, compared to $145.8 million and an annualized total investment return of 3.6% in the third quarter of 2019.

Net Negative Impact

Net negative impact includes the sum of estimates of net claims and claim expenses incurred, earned reinstatement premiums assumed and ceded, lost profit commissions and redeemable noncontrolling interest. The Company’s estimates of net negative impact are based on a review of its potential exposures, preliminary discussions with certain counterparties and catastrophe modeling techniques. The Company’s 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.

There remains meaningful uncertainty regarding the estimates and the nature and extent of the losses from catastrophe events, driven by the magnitude and recent occurrence of each event, the geographic areas in which the events occurred, 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.

The financial data in the table below provides additional information detailing the net negative impact of the Q3 2020 Large Loss Events on the Company’s consolidated financial statements in the third quarter of 2020.

	Three months ended September 30, 2020	Hurricane Laura				Hurricane Sally				Q3 2020 Wildfires				Other Q3 2020 Catastrophe Events				Aggregate Losses				Total Q3 2020 Large Loss Events
	(in thousands)
	Net claims and claims expenses incurred	$	(123,076	)		$	(72,531	)		$	(91,107	)		$	(61,586	)		$	(120,118	)		$	(468,418	)
	Assumed reinstatement premiums earned	18,282				5,110				17,604				7,407				5,123				53,526
	Ceded reinstatement premiums earned	(334		)		(236		)		—				—				—				(570		)
	Lost profit commissions	(254		)		(418		)		(491		)		(549		)		(5,179		)		(6,891		)
	Net negative impact on underwriting result	(105,382		)		(68,075		)		(73,994		)		(54,728		)		(120,174		)		(422,353		)
	Redeemable noncontrolling interest	20,008				11,834				19,580				17,958				31,262				100,642
	Net negative impact on net income available to RenaissanceRe common shareholders	$	(85,374	)		$	(56,241	)		$	(54,414	)		$	(36,770	)		$	(88,912	)		$	(321,711	)

The financial data below provides additional information detailing the net negative impact of the Q3 2020 Large Loss Events on the Company’s segment underwriting results and consolidated combined ratio in the third quarter of 2020.

	Three months ended September 30, 2020	Hurricane Laura				Hurricane Sally				Q3 2020 Wildfires				Other Q3 2020 Catastrophe Events				Aggregate Losses				Total Q3 2020 Large Loss Events
	(in thousands, except percentages)
	Net negative impact on Property segment underwriting result	$	(95,845	)		$	(68,075	)		$	(73,994	)		$	(54,728	)		$	(120,174	)		$	(412,816	)
	Net negative impact on Casualty and Specialty segment underwriting result	(9,537		)		—				—				—				—				(9,537		)
	Net negative impact on underwriting result	$	(105,382	)		$	(68,075	)		$	(73,994	)		$	(54,728	)		$	(120,174	)		$	(422,353	)
	Percentage point impact on consolidated combined ratio	10.3				6.7				7.2				5.4				12.0				43.4

Underwriting Results by Segment

Property Segment

Gross premiums written in the Property segment were $427.8 million in the third quarter of 2020, an increase of $113.4 million, or 36.1%, compared to $314.4 million in the third quarter of 2019.

Gross premiums written in the catastrophe class of business were $179.7 million in the third quarter of 2020, an increase of $76.9 million, or 74.8%, compared to the third quarter of 2019. Gross written premiums in the third quarter of 2020 included $52.9 million of reinstatement premiums associated with the Q3 2020 Large Loss Events, as compared to $23.1 million of reinstatement premiums written in the third quarter of 2019 associated with the Q3 2019 Catastrophe Events. In addition, gross written premiums in the third quarter of 2019 included $26.4 million of negative premium adjustments related to the business of the third-party capital vehicles that the Company manages as a result of the acquisition of Tokio Millennium Re AG (now known as RenaissanceRe Europe AG), Tokio Millennium Re (UK) Limited (now known as RenaissanceRe (UK) Limited) (“RenaissanceRe UK”) and their subsidiaries (collectively, "TMR"). The negative premium adjustments were fully ceded and were reflected in ceded premiums written, resulting in no impact to the Company’s results of operations in the third quarter of 2019.

Gross premiums written in the other property class of business were $248.1 million in the third quarter of 2020, an increase of $36.5 million, or 17.2%, compared to the third quarter of 2019. The increase in gross premiums written in the other property class of business was primarily driven by growth from existing relationships and new opportunities across a number of the Company’s underwriting platforms.

Ceded premiums written in the Property segment were $49.1 million in the third quarter of 2020, an increase of $37.6 million, or 329.6%, compared to the third quarter of 2019. In the third quarter of 2020, ceded premiums written included certain of the gross premiums written ceded to third-party investors in the Company’s managed vehicles, primarily RenaissanceRe Upsilon Fund Ltd. Ceded premiums written in the third quarter of 2019 included $26.4 million negative premium adjustments related to the business of the third-party capital vehicles that the Company manages as a result of the acquisition of TMR, as discussed above.

The Property segment incurred an underwriting loss of $206.6 million in the third quarter of 2020, compared to an underwriting loss of $7.7 million in the third quarter of 2019. In the third quarter of 2020, the Property segment generated a net claims and claim expense ratio of 114.4%, an underwriting expense ratio of 25.6% and a combined ratio of 140.0%, compared to 76.1%, 25.6% and 101.7%, respectively, in the third quarter of 2019. The underwriting result and combined ratio in the third quarter of 2020 were principally impacted by the Q3 2020 Large Loss Events, which resulted in a net negative impact on the Property segment underwriting result of $412.8 million and added 84.4 percentage points to the Property segment combined ratio. In comparison, the third quarter of 2019 was impacted by the Q3 2019 Catastrophe Events, which resulted in a net negative impact on the Property segment underwriting result of $178.9 million and added 42.3 percentage points to the Property segment combined ratio.

Casualty and Specialty Segment

Gross premiums written in the Casualty and Specialty segment were $715.3 million in the third quarter of 2020, an increase of $168.6 million, or 30.8%, as compared to the third quarter of 2019. This increase was primarily due to growth from new and existing business opportunities written in the current and prior periods across various classes of business within the segment, partially offset by the non-renewal of a portion of the business acquired in connection with the acquisition of TMR.

The Casualty and Specialty segment generated underwriting income of $0.6 million in the third quarter of 2020, compared to $4.5 million in the third quarter of 2019. In the third quarter of 2020, the Casualty and Specialty segment generated a net claims and claim expense ratio of 72.6%, an underwriting expense ratio of 27.3% and a combined ratio of 99.9%, compared to 68.4%, 30.6% and 99.0%, respectively, in the third quarter of 2019.

The increase in the net claims and claim expense ratio of 4.2 percentage points was principally the result of higher current accident year losses in the third quarter of 2020 compared to the third quarter of 2019. The net claims and claim expense ratio was impacted by net losses resulting from the impact of Hurricane Laura and the purchase of an adverse development cover associated with RenaissanceRe Syndicate 1458’s casualty reserves, which combined to add 3.2 percentage points. While the net claims and claim expense ratio was also impacted by increased reserves in our mortgage guaranty book within our financial lines business, there was an offsetting impact to acquisition expenses as a result of reduced profit commission expense associated with this business. The underwriting expense ratio in the Casualty and Specialty segment decreased 3.3 percentage points, to 27.3%, in the third quarter of 2020 compared to the third quarter of 2019, driven by lower acquisition and operating expense ratios. The decrease in profit commission expense noted above was the principal driver of the decrease in acquisition costs. Operating expenses were impacted by reduced travel, marketing and office operational expenses as a result of the COVID-19 pandemic.

COVID-19

The Company continues to evaluate industry trends and its own potential exposure associated with the ongoing COVID-19 pandemic, and expects historically significant industry losses to emerge over time as the full impact of the pandemic and its effects on the global economy are realized. Among other things, the Company continues to actively monitor information received from or reported by clients, brokers, industry actuaries, regulators, courts, and others, and to assess that information in the context of its own portfolio. Our loss estimates represent our best estimate based on currently available information, and actual losses may vary materially from these estimates.

Other Items

• The Company’s total investment result, which includes the sum of net investment income and net realized and unrealized gains on investments, was a gain of $307.8 million in the third quarter of 2020, compared to a gain of $145.8 million in the third quarter of 2019, an increase of $162.0 million. The primary driver of the total investment result in the third quarter of 2020 was net realized and unrealized gains on investments of $224.2 million, principally within the equity and fixed maturity investments trading portfolios.
• Net income attributable to redeemable noncontrolling interests in the third quarter of 2020 was $19.3 million, compared to $62.1 million in the third quarter of 2019. The decrease was primarily driven by underwriting losses in DaVinciRe Holdings Ltd., partially offset by an increase in the net income of RenaissanceRe Medici Fund Ltd. (“Medici”) compared to the third quarter of 2019.
• In the third quarter of 2020, total fee income decreased by $13.6 million, to $18.4 million, compared to $32.0 million in the third quarter of 2019, primarily driven by a decrease in performance fee income due to lower underlying performance of the Company’s joint ventures and structured reinsurance products, primarily related to the Q3 2020 Large Loss Events, partially offset by an increase in the dollar value of managed capital compared to the third quarter of 2019.
• In the third quarter of 2020, corporate expenses increased by $34.2 million, to $48.1 million, compared to $13.8 million in the third quarter of 2019, primarily driven by the $30.2 million loss on the sale of RenaissanceRe UK on August 18, 2020, as well as related transaction and other expenses, and expenses associated with senior management departures during the quarter. The loss on sale includes amounts related to prior purchase GAAP adjustments and cumulative currency translation adjustments recorded since the acquisition of RenaissanceRe UK.
• Income tax benefit was $8.2 million in the third quarter of 2020 compared to income tax expense of $3.7 million in the third quarter of 2019. The income tax benefit was principally driven by lower underwriting performance and other miscellaneous items in the U.S., including amounts resulting from the continued impacts of U.S. tax reform, partially offset by investment gains, primarily in the U.S. based operations.
• Net foreign exchange gains of $17.4 million in the third quarter of 2020 compared to net foreign exchange losses of $8.3 million in the third quarter of 2019. The net foreign exchange gains were primarily driven by gains attributable to third-party investors in Medici and miscellaneous foreign exchange gains in the Company’s operations with non-U.S. dollar functional currencies.
• Hurricane Delta, a Category 2 hurricane, made landfall on the Yucatán Peninsula on October 7, 2020, and subsequently in Louisiana on October 9, 2020, causing widespread flooding and damage, including in the region impacted by Hurricane Laura. The Company is also monitoring Hurricane Zeta, which made landfall on October 26, 2020 on the Yucatán Peninsula and is currently in the Gulf of Mexico. Additionally, wildfires impacting several Western U.S. states are ongoing.

This Press Release includes certain financial measures that are not calculated in accordance with generally accepted accounting principles in the U.S. (“GAAP”) including “operating (loss) income (attributable) available to RenaissanceRe common shareholders,” “operating (loss) income (attributable) available to RenaissanceRe common shareholders per common share - diluted,” “operating return on average common equity - annualized,” “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 “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.

RenaissanceRe will host a conference call on Wednesday, October 28, 2020 at 11:00 a.m. ET to discuss this release. Live broadcast of the conference call will be available through the “Investors - Webcasts & Presentations” section of the Company’s website at www.renre.com.

About RenaissanceRe

RenaissanceRe is a global provider of reinsurance and insurance that specializes in matching well-structured risks with efficient sources of capital. The Company provides property, casualty and specialty reinsurance and certain insurance solutions to customers, principally through intermediaries. Established in 1993, the Company has offices in Bermuda, Australia, Ireland, Singapore, Switzerland, the United Kingdom and the United States.

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 uncertainty of the continuing impact of the COVID-19 pandemic and measures taken in response thereto; the effect of legislative, regulatory, judicial or social influences related to the COVID-19 pandemic on the Company’s financial performance, including the emergence of unexpected or un-modeled insurance or reinsurance losses, and the Company’s ability to conduct its business; the impact and potential future impacts of the COVID-19 pandemic on the value of the Company’s investments and its access to capital in the future or the pricing or terms of available financing; the effect that measures taken to mitigate the COVID-19 pandemic have on the Company’s operations and those of its counterparties; the frequency and severity of catastrophic and other events the Company covers; the effectiveness of the Company’s claims and claim expense reserving process; the effect of climate change on the Company’s business, including the trend towards increasingly frequent and severe climate events; the Company’s ability to maintain its financial strength ratings; the effect of emerging claims and coverage issues; collection on claimed retrocessional coverage, and new retrocessional reinsurance being available on acceptable terms and providing the coverage that the Company intended to obtain; the Company’s reliance on a small and decreasing number of reinsurance brokers and other distribution services for the preponderance of its revenue; the Company’s exposure to credit loss from counterparties in the normal course of business; the effect of continued challenging economic conditions throughout the world; the performance of the Company’s investment portfolio; a contention by the U.S. Internal Revenue Service that Renaissance Reinsurance Ltd., or any of the Company’s other Bermuda subsidiaries, is subject to taxation in the U.S.; the effects of U.S. tax reform legislation and possible future tax reform legislation and regulations, including changes to the tax treatment of the Company’s shareholders or investors in its joint ventures or other entities it manages; the effect of cybersecurity risks, including technology breaches or failure, on the Company’s business; the success of any of the Company’s strategic investments or acquisitions, including its ability to manage its operations as its product and geographical diversity increases; the Company’s ability to retain its key senior officers and to attract or retain the executives and employees necessary to manage its business; the Company’s ability to effectively manage capital on behalf of investors in joint ventures or other entities it manages; foreign currency exchange rate fluctuations; soft reinsurance underwriting market conditions; changes in the method for determining the London Inter-bank Offered Rate (“LIBOR”) and the potential replacement of LIBOR; losses the Company could face from terrorism, political unrest or war; the Company’s ability to successfully implement its business strategies and initiatives; the Company’s ability to determine any impairments taken on its investments; the effects of inflation; the ability of the Company’s ceding companies and delegated authority counterparties to accurately assess the risks they underwrite; the effect of operational risks, including system or human failures; the Company’s ability to raise capital if necessary; the Company’s ability to comply with covenants in its debt agreements; changes to the regulatory systems under which the Company operates, including as a result of increased global regulation of the insurance and reinsurance industries; changes in Bermuda laws and regulations and the political environment in Bermuda; the Company’s dependence on the ability of its operating subsidiaries to declare and pay dividends; aspects of the Company’s corporate structure that may discourage third-party takeovers and other transactions; difficulties investors may have in servicing process or enforcing judgments against the Company in the U.S.; the cyclical nature of the reinsurance and insurance industries; adverse legislative developments that reduce the size of the private markets the Company serves or impede their future growth; consolidation of competitors, customers and insurance and reinsurance brokers; the effect on the Company’s business of the highly competitive nature of its industry, including the effect of new entrants to, competing products for and consolidation in the (re)insurance industry; other political, regulatory or industry initiatives adversely impacting the Company; the Company’s ability to comply with applicable sanctions and foreign corrupt practices laws; increasing barriers to free trade and the free flow of capital; international restrictions on the writing of reinsurance by foreign companies and government intervention in the natural catastrophe market; the effect of Organisation for Economic Co-operation and Development or European Union (“EU”) measures to increase the Company’s taxes and reporting requirements; changes in regulatory regimes and accounting rules that may impact financial results irrespective of business operations; the Company’s need to make many estimates and judgments in the preparation of its financial statements; the effect of the exit by the United Kingdom from the EU; and other factors affecting future results disclosed in RenaissanceRe’s filings with the Securities and Exchange Commission, including its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and prospectus supplement filed on June 4, 2020.

RenaissanceRe Holdings Ltd.
Summary Consolidated Statements of Operations
(in thousands of United States Dollars, except per share amounts and percentages)
(Unaudited)
	Three months ended								Nine months ended
	September 30, 2020				September 30, 2019				September 30, 2020				September 30, 2019
Revenues
Gross premiums written	$	1,143,058			$	861,068			$	4,870,651			$	3,902,271
Net premiums written	$	899,411			$	704,130			$	3,350,022			$	2,656,126
Decrease (increase) in unearned premiums	100,772				202,618				(426,645		)		(287,848		)
Net premiums earned	1,000,183				906,748				2,923,377				2,368,278
Net investment income	83,543				111,387				272,321				312,069
Net foreign exchange gains (losses)	17,426				(8,275		)		4,503				(1,812		)
Equity in earnings of other ventures	5,457				5,877				19,062				17,350
Other income (loss)	1,476				1,016				(4,161		)		5,109
Net realized and unrealized gains on investments	224,208				34,395				561,891				395,655
Total revenues	1,332,293				1,051,148				3,776,993				3,096,649
Expenses
Net claims and claim expenses incurred	942,030				654,520				2,023,256				1,334,928
Acquisition expenses	215,180				202,181				659,394				553,614
Operational expenses	49,045				53,415				165,583				158,162
Corporate expenses	48,050				13,844				75,939				76,480
Interest expense	11,843				15,580				38,612				42,868
Total expenses	1,266,148				939,540				2,962,784				2,166,052
Income before taxes	66,145				111,608				814,209				930,597
Income tax benefit (expense)	8,244				(3,664		)		(12,785		)		(20,670		)
Net income	74,389				107,944				801,424				909,927
Net income attributable to noncontrolling interests	(19,301		)		(62,057		)		(236,120		)		(204,091		)
Net income attributable to RenaissanceRe	55,088				45,887				565,304				705,836
Dividends on preference shares	(7,289		)		(9,189		)		(23,634		)		(27,567		)
Net income available to RenaissanceRe common shareholders	$	47,799			$	36,698			$	541,670			$	678,269
Net income available to RenaissanceRe common shareholders per common share – basic	$	0.94			$	0.83			$	11.60			$	15.58
Net income available to RenaissanceRe common shareholders per common share – diluted	$	0.94			$	0.83			$	11.58			$	15.57
Operating (loss) income (attributable) available to RenaissanceRe common shareholders per common share - diluted	$	(2.64	)		$	0.73			$	1.84			$	8.76
Average shares outstanding - basic	50,009				43,462				46,130				43,003
Average shares outstanding - diluted	50,094				43,537				46,200				43,049
Net claims and claim expense ratio	94.2		%		72.2		%		69.2		%		56.4		%
Underwriting expense ratio	26.4		%		28.2		%		28.2		%		30.0		%
Combined ratio	120.6		%		100.4		%		97.4		%		86.4		%
Return on average common equity - annualized	2.8		%		2.8		%		12.0		%		18.2		%
Operating return on average common equity - annualized (1)	(7.7		)%		2.5		%		2.0		%		10.2		%

(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)
	September 30, 2020				December 31, 2019
Assets	(Unaudited)				(Audited)
Fixed maturity investments trading, at fair value	$	13,391,318			$	11,171,655
Short term investments, at fair value	5,158,961				4,566,277
Equity investments trading, at fair value	547,381				436,931
Other investments, at fair value	1,122,683				1,087,377
Investments in other ventures, under equity method	98,990				106,549
Total investments	20,319,333				17,368,789
Cash and cash equivalents	1,287,378				1,379,068
Premiums receivable	3,337,120				2,599,896
Prepaid reinsurance premiums	1,082,270				767,781
Reinsurance recoverable	2,883,808				2,791,297
Accrued investment income	71,947				72,461
Deferred acquisition costs and value of business acquired	697,346				663,991
Receivable for investments sold	752,936				78,369
Other assets	306,265				346,216
Goodwill and other intangibles	257,437				262,226
Total assets	$	30,995,840			$	26,330,094
Liabilities, Noncontrolling Interests and Shareholders’ Equity
Liabilities
Reserve for claims and claim expenses	$	9,900,615			$	9,384,349
Unearned premiums	3,276,156				2,530,975
Debt	1,135,740				1,384,105
Reinsurance balances payable	3,915,804				2,830,691
Payable for investments purchased	1,597,893				225,275
Other liabilities	391,494				932,024
Total liabilities	20,217,702				17,287,419
Redeemable noncontrolling interest	3,387,317				3,071,308
Shareholders’ Equity
Preference shares	525,000				650,000
Common shares	50,810				44,148
Additional paid-in capital	1,615,328				568,277
Accumulated other comprehensive loss	(2,083		)		(1,939		)
Retained earnings	5,201,766				4,710,881
Total shareholders’ equity attributable to RenaissanceRe	7,390,821				5,971,367
Total liabilities, noncontrolling interests and shareholders’ equity	$	30,995,840			$	26,330,094
Book value per common share	$	135.13			$	120.53

RenaissanceRe Holdings Ltd.
Supplemental Financial Data - Segment Information
(in thousands of United States Dollars, except percentages)
(Unaudited)
	Three months ended September 30, 2020
	Property				Casualty and Specialty				Other				Total
Gross premiums written	$	427,765			$	715,293			$	—			$	1,143,058
Net premiums written	$	378,708			$	520,703			$	—			$	899,411
Net premiums earned	$	516,623			$	483,560			$	—			$	1,000,183
Net claims and claim expenses incurred	590,958				351,052				20				942,030
Acquisition expenses	98,545				116,636				(1		)		215,180
Operational expenses	33,672				15,319				54				49,045
Underwriting (loss) income	$	(206,552	)		$	553			$	(73	)		(206,072		)
Net investment income									83,543				83,543
Net foreign exchange gains									17,426				17,426
Equity in earnings of other ventures									5,457				5,457
Other income									1,476				1,476
Net realized and unrealized gains on investments									224,208				224,208
Corporate expenses									(48,050		)		(48,050		)
Interest expense									(11,843		)		(11,843		)
Income before taxes and redeemable noncontrolling interests													66,145
Income tax benefit									8,244				8,244
Net income attributable to redeemable noncontrolling interests									(19,301		)		(19,301		)
Dividends on preference shares									(7,289		)		(7,289		)
Net income available to RenaissanceRe common shareholders													$	47,799
Net claims and claim expenses incurred – current accident year	$	629,827			$	366,080			$	—			$	995,907
Net claims and claim expenses incurred – prior accident years	(38,869		)		(15,028		)		20				(53,877		)
Net claims and claim expenses incurred – total	$	590,958			$	351,052			$	20			$	942,030
Net claims and claim expense ratio – current accident year	121.9		%		75.7		%						99.6		%
Net claims and claim expense ratio – prior accident years	(7.5		)%		(3.1		)%						(5.4		)%
Net claims and claim expense ratio – calendar year	114.4		%		72.6		%						94.2		%
Underwriting expense ratio	25.6		%		27.3		%						26.4		%
Combined ratio	140.0		%		99.9		%						120.6		%
	Three months ended September 30, 2019
	Property				Casualty and Specialty				Other				Total
Gross premiums written	$	314,400			$	546,668			$	—			$	861,068
Net premiums written	$	302,982			$	401,148			$	—			$	704,130
Net premiums earned	$	444,332			$	462,416			$	—			$	906,748
Net claims and claim expenses incurred	338,260				316,099				161				654,520
Acquisition expenses	79,521				122,654				6				202,181
Operational expenses	34,238				19,198				(21		)		53,415
Underwriting (loss) income	$	(7,687	)		$	4,465			$	(146	)		(3,368		)
Net investment income									111,387				111,387
Net foreign exchange losses									(8,275		)		(8,275		)
Equity in earnings of other ventures									5,877				5,877
Other income									1,016				1,016
Net realized and unrealized gains on investments									34,395				34,395
Corporate expenses									(13,844		)		(13,844		)
Interest expense									(15,580		)		(15,580		)
Income before taxes and redeemable noncontrolling interests													111,608
Income tax expense									(3,664		)		(3,664		)
Net income attributable to redeemable noncontrolling interests									(62,057		)		(62,057		)
Dividends on preference shares									(9,189		)		(9,189		)
Net income available to RenaissanceRe common shareholders													$	36,698
Net claims and claim expenses incurred – current accident year	$	345,880			$	319,087			$	—			$	664,967
Net claims and claim expenses incurred – prior accident years	(7,620		)		(2,988		)		161				(10,447		)
Net claims and claim expenses incurred – total	$	338,260			$	316,099			$	161			$	654,520
Net claims and claim expense ratio – current accident year	77.8		%		69.0		%						73.3		%
Net claims and claim expense ratio – prior accident years	(1.7		)%		(0.6		)%						(1.1		)%
Net claims and claim expense ratio – calendar year	76.1		%		68.4		%						72.2		%
Underwriting expense ratio	25.6		%		30.6		%						28.2		%
Combined ratio	101.7		%		99.0		%						100.4		%

RenaissanceRe Holdings Ltd.
Supplemental Financial Data - Segment Information
(in thousands of United States Dollars, except percentages)
(Unaudited)
	Nine months ended September 30, 2020
	Property				Casualty and Specialty				Other				Total
Gross premiums written	$	2,690,827			$	2,179,824			$	—			$	4,870,651
Net premiums written	$	1,757,427			$	1,592,595			$	—			$	3,350,022
Net premiums earned	$	1,429,074			$	1,494,303			$	—			$	2,923,377
Net claims and claim expenses incurred	899,860				1,123,527				(131		)		2,023,256
Acquisition expenses	278,668				380,726				—				659,394
Operational expenses	109,335				56,195				53				165,583
Underwriting income (loss)	$	141,211			$	(66,145	)		$	78			75,144
Net investment income									272,321				272,321
Net foreign exchange gains									4,503				4,503
Equity in earnings of other ventures									19,062				19,062
Other loss									(4,161		)		(4,161		)
Net realized and unrealized gains on investments									561,891				561,891
Corporate expenses									(75,939		)		(75,939		)
Interest expense									(38,612		)		(38,612		)
Income before taxes and redeemable noncontrolling interests													814,209
Income tax expense									(12,785		)		(12,785		)
Net income attributable to redeemable noncontrolling interests									(236,120		)		(236,120		)
Dividends on preference shares									(23,634		)		(23,634		)
Net income attributable to RenaissanceRe common shareholders													$	541,670
Net claims and claim expenses incurred – current accident year	$	931,285			$	1,147,354			$	—			$	2,078,639
Net claims and claim expenses incurred – prior accident years	(31,425		)		(23,827		)		(131		)		(55,383		)
Net claims and claim expenses incurred – total	$	899,860			$	1,123,527			$	(131	)		$	2,023,256
Net claims and claim expense ratio – current accident year	65.2		%		76.8		%						71.1		%
Net claims and claim expense ratio – prior accident years	(2.2		)%		(1.6		)%						(1.9		)%
Net claims and claim expense ratio – calendar year	63.0		%		75.2		%						69.2		%
Underwriting expense ratio	27.1		%		29.2		%						28.2		%
Combined ratio	90.1		%		104.4		%						97.4		%
	Nine months ended September 30, 2019
	Property				Casualty and Specialty				Other				Total
Gross premiums written	$	2,185,984			$	1,716,287			$	—			$	3,902,271
Net premiums written	$	1,411,327			$	1,244,799			$	—			$	2,656,126
Net premiums earned	$	1,160,090			$	1,208,188			$	—			$	2,368,278
Net claims and claim expenses incurred	541,217				793,533				178				1,334,928
Acquisition expenses	222,971				330,829				(186		)		553,614
Operational expenses	99,546				58,603				13				158,162
Underwriting income (loss)	$	296,356			$	25,223			$	(5	)		321,574
Net investment income									312,069				312,069
Net foreign exchange losses									(1,812		)		(1,812		)
Equity in earnings of other ventures									17,350				17,350
Other income									5,109				5,109
Net realized and unrealized gains on investments									395,655				395,655
Corporate expenses									(76,480		)		(76,480		)
Interest expense									(42,868		)		(42,868		)
Income before taxes and redeemable noncontrolling interests													930,597
Income tax expense									(20,670		)		(20,670		)
Net income attributable to redeemable noncontrolling interests									(204,091		)		(204,091		)
Dividends on preference shares									(27,567		)		(27,567		)
Net income available to RenaissanceRe common shareholders													$	678,269
Net claims and claim expenses incurred – current accident year	$	536,197			$	813,251			$	—			$	1,349,448
Net claims and claim expenses incurred – prior accident years	5,020				(19,718		)		178				(14,520		)
Net claims and claim expenses incurred – total	$	541,217			$	793,533			$	178			$	1,334,928
Net claims and claim expense ratio – current accident year	46.2		%		67.3		%						57.0		%
Net claims and claim expense ratio – prior accident years	0.5		%		(1.6		)%						(0.6		)%
Net claims and claim expense ratio – calendar year	46.7		%		65.7		%						56.4		%
Underwriting expense ratio	27.8		%		32.2		%						30.0		%
Combined ratio	74.5		%		97.9		%						86.4		%

RenaissanceRe Holdings Ltd.
Supplemental Financial Data - Gross Premiums Written
(in thousands of United States Dollars)
(Unaudited)
	Three months ended								Nine months ended
	September 30, 2020				September 30, 2019				September 30, 2020				September 30, 2019
Property Segment
Catastrophe	$	179,689			$	102,779			$	1,827,665			$	1,550,648
Other property	248,076				211,621				863,162				635,336
Property segment gross premiums written	$	427,765			$	314,400			$	2,690,827			$	2,185,984
Casualty and Specialty Segment
General casualty (1)	$	260,265			$	191,447			$	713,598			$	610,563
Professional liability (2)	175,459				151,754				628,683				460,912
Financial lines (3)	143,455				111,459				392,169				330,017
Other (4)	136,114				92,008				445,374				314,795
Casualty and Specialty segment gross premiums written	$	715,293			$	546,668			$	2,179,824			$	1,716,287

(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.

RenaissanceRe Holdings Ltd.
Supplemental Financial Data - Total Investment Result
(in thousands of United States Dollars, except percentages)
(Unaudited)
	Three months ended								Nine months ended
	September 30, 2020				September 30, 2019				September 30, 2020				September 30, 2019
Fixed maturity investments trading	$	68,022			$	82,977			$	211,303			$	232,566
Short term investments	1,611				15,061				19,752				44,712
Equity investments trading	1,559				1,326				4,776				3,269
Other investments
Catastrophe bonds	13,626				12,812				41,284				33,284
Other	2,598				2,672				5,334				6,226
Cash and cash equivalents	441				1,978				2,782				5,801
	87,857				116,826				285,231				325,858
Investment expenses	(4,314		)		(5,439		)		(12,910		)		(13,789		)
Net investment income	83,543				111,387				272,321				312,069
Net realized and unrealized gains (losses) on:
Fixed maturity investments trading (1)	78,348				57,502				502,280				346,123
Equity investments trading (1)	119,622				(25,564		)		81,246				50,463
Other investments
Catastrophe bonds	12,611				9,242				2,711				(4,870		)
Other	13,627				(6,785		)		(24,346		)		3,939
Net realized and unrealized gains on investments	224,208				34,395				561,891				395,655
Total investment result	$	307,751			$	145,782			$	834,212			$	707,724
Total investment return - annualized	6.2		%		3.6		%		5.8		%		6.0		%

(1)

Net realized and unrealized gains (losses) on fixed maturity investments trading includes the impacts of interest rate futures, interest rate swaps, credit default swaps and total return swaps. Net realized and unrealized gains (losses) on equity investments trading includes the impact of equity futures.

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 G. The Company has provided these financial measures in previous investor communications and the Company’s management believes that these measures 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 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.

Operating (Loss) Income (Attributable) Available to RenaissanceRe Common Shareholders and Operating Return on Average Common Equity - Annualized

The Company uses “operating (loss) income (attributable) 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 (loss) income (attributable) 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, excluding other investments - catastrophe bonds, net foreign exchange gains and losses, corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe UK, the income tax expense or benefit associated with these adjustments and the portion of these adjustments attributable to the Company's redeemable noncontrolling interests." The Company’s management believes that “operating (loss) income (attributable) 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 fair value of the Company’s fixed maturity investment portfolio, equity investments trading, other investments (excluding catastrophe bonds) and investments-related derivatives; fluctuations in foreign exchange rates; corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe UK; the associated income tax expense or benefit of these adjustments; and the portion of these adjustments attributable to the Company's redeemable noncontrolling interests. The Company also uses “operating (loss) income (attributable) available to RenaissanceRe common shareholders” to calculate “operating (loss) income (attributable) available to RenaissanceRe common shareholders per common share - diluted” and “operating return on average common equity - annualized.” The following table is a reconciliation of: (1) net income available to RenaissanceRe common shareholders to “operating (loss) income (attributable) available to RenaissanceRe common shareholders”; (2) net income available to RenaissanceRe common shareholders per common share - diluted to “operating (loss) income (attributable) 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.” Comparative information for all prior periods has been updated to conform to the current methodology and presentation.

	Three months ended								Nine months ended
(in thousands of United States Dollars, except per share amounts and percentages)	September 30, 2020				September 30, 2019				September 30, 2020				September 30, 2019
Net income available to RenaissanceRe common shareholders	$	47,799			$	36,698			$	541,670			$	678,269
Adjustment for net realized and unrealized gains on investments, excluding other investments - catastrophe bonds	(211,597		)		(25,153		)		(559,180		)		(400,525		)
Adjustment for net foreign exchange (gains) losses	(17,426		)		8,275				(4,503		)		1,812
Adjustment for corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe UK (1)	33,916				4,022				40,618				44,025
Adjustment for income tax expense (2)	5,058				5,298				22,140				24,074
Adjustment for net income attributable to redeemable noncontrolling interests (3)	10,526				3,541				51,017				37,473
Operating (loss) income (attributable) available to RenaissanceRe common shareholders	$	(131,724	)		$	32,681			$	91,762			$	385,128
Net income available to RenaissanceRe common shareholders per common share - diluted	$	0.94			$	0.83			$	11.58			$	15.57
Adjustment for net realized and unrealized gains on investments, excluding other investments - catastrophe bonds	(4.22		)		(0.58		)		(12.10		)		(9.30		)
Adjustment for net foreign exchange (gains) losses	(0.35		)		0.19				(0.10		)		0.04
Adjustment for corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe UK (1)	0.68				0.09				0.88				1.02
Adjustment for income tax expense (2)	0.10				0.12				0.48				0.56
Adjustment for net income attributable to redeemable noncontrolling interests (3)	0.21				0.08				1.10				0.87
Operating (loss) income (attributable) available to RenaissanceRe common shareholders per common share - diluted	$	(2.64	)		$	0.73			$	1.84			$	8.76
Return on average common equity - annualized	2.8		%		2.8		%		12.0		%		18.2		%
Adjustment for net realized and unrealized gains on investments, excluding other investments - catastrophe bonds	(12.4		)%		(1.9		)%		(12.4		)%		(10.8		)%
Adjustment for net foreign exchange (gains) losses	(1.0		)%		0.6		%		(0.1		)%		—		%
Adjustment for corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe UK (1)	2.0		%		0.3		%		0.9		%		1.2		%
Adjustment for income tax expense (2)	0.3		%		0.4		%		0.5		%		0.6		%
Adjustment for net income attributable to redeemable noncontrolling interests (3)	0.6		%		0.3		%		1.1		%		1.0		%
Operating return on average common equity - annualized	(7.7		)%		2.5		%		2.0		%		10.2		%

(1)		Included in the three and nine months ended September 30, 2020 is the loss on sale of RenaissanceRe UK of $30.2 million.
(2)		Adjustment for income tax expense represents the income tax expense associated with the adjustments to net income available to RenaissanceRe common shareholders. The income tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors.
(3)		Represents the portion of these adjustments 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.”

	September 30, 2020				June 30, 2020				March 31, 2020				December 31, 2019				September 30, 2019
Book value per common share	$	135.13			$	134.27			$	117.15			$	120.53			$	120.07
Adjustment for goodwill and other intangibles (1)	(5.53		)		(5.56		)		(6.46		)		(6.50		)		(6.55		)
Tangible book value per common share	129.60				128.71				110.69				114.03				113.52
Adjustment for accumulated dividends	21.73				21.38				21.03				20.68				20.34
Tangible book value per common share plus accumulated dividends	$	151.33			$	150.09			$	131.72			$	134.71			$	133.86
Quarterly change in book value per common share	0.6		%		14.6		%		(2.8		)%		0.4		%		0.8		%
Quarterly change in tangible book value per common share plus change in accumulated dividends	1.0		%		16.6		%		(2.6		)%		0.7		%		1.1		%
Year to date change in book value per common share	12.1		%		11.4		%		(2.8		)%		15.7		%		15.3		%
Year to date change in tangible book value per common share plus change in accumulated dividends	14.6		%		13.5		%		(2.6		)%		17.9		%		17.1		%

(1)

At September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019, and September 30, 2019, goodwill and other intangibles included $23.2 million, $23.5 million, $24.2 million, $24.9 million and $25.6 million, respectively, of goodwill and other intangibles included in investments in other ventures, under equity method.