RenaissanceRe Holdings Ltd. (NYSE: RNR) today reported net income
available to RenaissanceRe common shareholders of $24.8 million or $0.48
per diluted common share in the second quarter of 2011, compared to
$210.2 million or $3.66, respectively, in the second quarter of 2010.
Operating loss attributable to RenaissanceRe common shareholders was
$10.2 million or $0.21 per diluted common share for the second quarter
of 2011, compared to operating income available to RenaissanceRe common
shareholders of $139.9 million or $2.40 per diluted common share in the
second quarter of 2010. The Company reported an annualized return on
average common equity of 3.3% and an annualized operating return on
average common equity of negative 1.4% in the second quarter of 2011,
compared to positive 26.8% and positive 17.9%, respectively, in the
second quarter of 2010. See Comments on Regulation G for a
reconciliation of non-GAAP measures.
Book value per common share increased $0.29, or 0.5%, in the second
quarter of 2011 to $57.30, compared to a 5.8% increase in the second
quarter of 2010.
Mr. Neill A. Currie, CEO, commented: “Our results for the quarter were
impacted by $70.8 million of net losses from the tornado activity in the
U.S. As a result, we reported $24.8 million of net income, a $10.2
million operating loss and a 0.5% increase in book value per share in
the quarter.”
Mr. Currie added: “At the same time, we had a successful June 1st
renewal season and are pleased with our portfolio of risks, which
reflects improving market conditions in our Reinsurance segment. Our
strong balance sheet, high ratings and leadership position in property
catastrophe reinsurance allowed us to increase our catastrophe premiums
by over 15%.”
SECOND QUARTER 2011 HIGHLIGHTS
(1)
-
Gross premiums written increased $135.0 million, or 26.7%, to $641.6
million, primarily driven by improving market conditions in our core
markets experienced during the June 2011 renewals and $22.5 million of
reinstatement premiums written from the large U.S. tornadoes in the
second quarter of 2011. Excluding the impact of $22.5 million of
reinstatement premiums written in the second quarter of 2011, gross
premiums written increased $112.5 million, or 22.2%.
-
Underwriting income of $9.7 million and a combined ratio of 95.5%,
compared to $169.4 million and 20.2%, primarily impacted by the large
U.S. tornadoes in the second quarter of 2011, as detailed in the table
below, which had a net negative impact (2) of $70.8
million and added 51.8 percentage points to the combined ratio.
| | Three months ended June 30, 2011 | | |
| |
(in thousands of U.S. dollars, except ratios)
| |
Large U.S.
Tornadoes
|
| |
Net claims and claim expenses incurred
| |
$ (121,655)
|
| | | | |
| |
Reinstatement premiums earned
| |
22,499
|
| |
Lost profit commissions
| |
(708)
|
| |
Net impact on underwriting result
| |
(99,864)
|
| |
Redeemable noncontrolling interest - DaVinciRe
| |
29,054
|
| | | | |
| |
Net negative impact
| |
$ (70,810)
|
| | | | |
| |
Percentage point impact on consolidated combined ratio
| |
51.8
|
| | | | | | |
| |
Net negative impact on Reinsurance segment underwriting result
| |
$ (96,944)
|
| |
Net negative impact on Lloyd's segment underwriting result
| |
(2,920)
|
| |
Net negative impact on underwriting result
| |
$ (99,864)
|
Underwriting Results by Segment (1)
Reinsurance Segment
Gross premiums written in the Reinsurance segment were $607.4 million,
an increase of $110.9 million, or 22.3%. The increase is primarily due
to a $93.7 million increase in the catastrophe unit as a result of the
improving market conditions in our core markets experienced during the
June 2011 renewals, combined with reinstatement premiums written from
the large U.S. tornadoes in the second quarter of 2011. Excluding the
impact of $22.4 million of reinstatement premiums written in the second
quarter of 2011, the Reinsurance segment gross premiums written
increased $88.5 million, or 17.8%, and managed catastrophe premiums
written increased $80.9 million, or 15.7%.
The Reinsurance segment generated underwriting income of $12.9 million
and a combined ratio of 93.5%, compared to $180.7 million and a combined
ratio of 8.8%. Current accident year net claims and claim expenses in
the Reinsurance segment of $162.4 million are comprised of $139.2
million and $23.2 million related to the catastrophe and specialty
units, respectively. As detailed in the table below, the large U.S.
tornadoes in the second quarter of 2011 had a net impact on the
Reinsurance segment underwriting result of $96.9 million and added 55.5
percentage points to the Reinsurance segment’s combined ratio.
| | Three months ended June 30, 2011 | | |
| |
(in thousands of U.S. dollars, except ratios)
| |
Large U.S.
Tornadoes
|
| |
Net claims and claim expenses incurred
| |
$
|
(118,655
|
)
|
| | | | | | |
| |
Reinstatement premiums earned
| | |
22,419
| |
| |
Lost profit commissions
| | |
(708
|
)
|
| |
Net impact on Reinsurance segment underwriting result
| |
$
|
(96,944
|
)
|
| | | | | | |
| |
Net negative impact on catastrophe unit underwriting result
| |
$
|
(96,944
|
)
|
| |
Net negative impact on specialty unit underwriting result
| | |
-
| |
| |
Net impact on Reinsurance segment underwriting result
| |
$
|
(96,944
|
)
|
| | | | | | |
| |
Percentage point impact on Reinsurance segment combined ratio
| | |
55.5
| |
The Reinsurance segment experienced $19.2 million of favorable
development on prior year reserves, including $11.8 million in the
catastrophe unit due to reductions in estimated ultimate losses on
certain specific events, and $7.4 million in the specialty unit
primarily due to better than expected claims emergence.
Lloyd’s Segment
Gross premiums written in the Lloyd’s segment decreased $0.7 million, or
2.1%, to $34.1 million. The Lloyd’s segment incurred an underwriting
loss of $3.3 million and a combined ratio of 119.3%, compared to
generating underwriting income of $0.8 million and a combined ratio of
95.5%. Net claims and claim expenses include $3.0 million related to the
large U.S. tornadoes in the second quarter of 2011.
Investments (1)
Total investment result, which includes net investment income, net
realized and unrealized gains on investments, net other-than-temporary
impairments and the change in net unrealized gains on fixed maturity
investments available for sale, decreased $19.5 million, to $66.5
million, primarily due to the lower total returns on the fixed maturity
investments portfolio, and partially offset by improved returns on
certain non-investment grade allocations included in other investments.
The weighted average effective yield on the fixed maturity and short
term investment portfolio was 2.4% at June 30, 2011, compared to 2.1% at
March 31, 2011.
Other Items (1)
-
On June 1, 2011, DaVinciRe Holdings Ltd. completed an equity raise of
$100.0 million from new and existing shareholders. The capital raised
is being used to support the ongoing underwriting activities of
DaVinci, which primarily writes property catastrophe reinsurance and
certain classes of specialty reinsurance. As a result of the equity
raise, the Company’s ownership in DaVinciRe decreased to 42.8%
effective June 1, 2011, compared to 44.0% at January 1, 2011.
This Press Release includes certain non-GAAP financial measures
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” and “managed catastrophe premiums”. A reconciliation of such
measures to the most comparable GAAP figures in accordance with
Regulation G is presented in the attached supplemental financial data.
Please refer to the “Investor Information – Financial Reports –
Financial Supplements” section of the Company’s website at www.renre.com
for a copy of the Financial Supplement which includes additional
information on the Company’s financial performance.
RenaissanceRe Holdings Ltd. will host a conference call on Wednesday,
July 27, 2011 at 9:30 a.m. (ET) to discuss this release. Live broadcast
of the conference call will be available through the “Investor
Information – Company Webcasts” section of RenaissanceRe’s website at www.renre.com.
RenaissanceRe Holdings Ltd. is a global provider of reinsurance and
insurance. The Company’s business consists of three segments: (1)
Reinsurance, which includes catastrophe reinsurance, specialty
reinsurance and certain property catastrophe and specialty joint
ventures managed by the Company’s ventures unit, (2) Lloyd’s, which
includes reinsurance and insurance business written through Syndicate
1458, and (3) Insurance, which principally includes the Company’s
Bermuda-based insurance operations.
Cautionary Statement under “Safe Harbor” Provisions of the Private
Securities Litigation Reform Act of 1995: Statements made in this
earnings release contain information about the Company’s future business
prospects. These statements may be considered “forward-looking.”These statements are subject to risks and uncertainties that could
cause actual results to differ materially from those set forth in or
implied by such forward-looking statements. For further
information regarding cautionary statements and factors affecting future
results, please refer to RenaissanceRe Holdings Ltd.’s filings with the
Securities and Exchange Commission, including its Annual Report on Form
10-K for the year ended December 31, 2010 and its Quarterly Reports on
Form 10-Q.
|
(1)
| |
All comparisons are with the second quarter of 2010 unless
specifically stated.
|
|
(2)
| |
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 – DaVinciRe. The Company’s estimates are based on a review
of its potential exposures, preliminary discussions with certain
counterparties and catastrophe modeling techniques. Given the
magnitude and recent occurrence of these events, delays in receiving
claims data, potential uncertainties relating to reinsurance
recoveries and other uncertainties inherent in loss estimation,
meaningful uncertainty remains regarding losses from these events.
Accordingly, the Company’s actual net negative impact from these
events will vary from these preliminary estimates, perhaps
materially so. Changes in these estimates will be recorded in the
period in which they occur.
|
| RenaissanceRe Holdings Ltd. and Subsidiaries |
| Summary Consolidated Statements of Operations |
|
(in thousands of United States Dollars, except per share amounts)
|
|
(Unaudited)
|
| | | | | | | | | | |
| | | | Three months ended | | Six months ended |
| | | | June 30, 2011 | | June 30, 2010 | | June 30, 2011 | | June 30, 2010 |
| Revenues | | | | | | | | |
| |
Gross premiums written
| |
$
|
641,563
| | |
$
|
506,540
| | |
$
|
1,252,068
| | |
$
|
1,022,551
| |
| | | | | | | | | | |
| |
Net premiums written
| |
$
|
427,995
| | |
$
|
329,334
| | |
$
|
880,570
| | |
$
|
736,493
| |
| |
Increase in unearned premiums
| | |
(210,820
|
)
| | |
(117,163
|
)
| | |
(357,854
|
)
| | |
(273,669
|
)
|
| | | | | | | | | | |
| |
Net premiums earned
| | |
217,175
| | | |
212,171
| | | |
522,716
| | | |
462,824
| |
| |
Net investment income
| | |
33,328
| | | |
26,173
| | | |
93,609
| | | |
91,882
| |
| |
Net foreign exchange losses
| | |
(4,521
|
)
| | |
(609
|
)
| | |
(3,861
|
)
| | |
(11,951
|
)
|
| |
Equity in earnings (losses) of other ventures
| | |
5,128
| | | |
3,160
| | | |
(18,625
|
)
| | |
5,316
| |
| |
Other (loss) income
| | |
(5,167
|
)
| | |
(3,742
|
)
| | |
44,978
| | | |
(9,933
|
)
|
| |
Net realized and unrealized gains on investments
| | |
34,979
| | | |
70,051
| | | |
29,765
| | | |
118,251
| |
| | | | | | | | | | |
| |
Total other-than-temporary impairments
| | |
-
| | | |
(798
|
)
| | |
-
| | | |
(831
|
)
|
| |
Portion recognized in other comprehensive income, before taxes
| | |
-
| | | |
2
| | | |
-
| | | |
2
| |
| | | | | | | | | | |
| |
Net other-than-temporary impairments
| | |
-
| | | |
(796
|
)
| | |
-
| | | |
(829
|
)
|
| | | | | | | | | | |
| | Total revenues | | |
280,922
| | | |
306,408
| | | |
668,582
| | | |
655,560
| |
| | | | | | | | | | |
| Expenses | | | | | | | | |
| |
Net claims and claim expenses incurred
| | |
151,261
| | | |
(18,803
|
)
| | |
779,798
| | | |
78,537
| |
| |
Acquisition expenses
| | |
13,883
| | | |
23,580
| | | |
46,218
| | | |
50,015
| |
| |
Operational expenses
| | |
42,299
| | | |
38,040
| | | |
84,129
| | | |
83,190
| |
| |
Corporate expenses
| | |
4,011
| | | |
4,493
| | | |
6,075
| | | |
9,802
| |
| |
Interest expense
| | |
5,730
| | | |
6,206
| | | |
11,925
| | | |
9,362
| |
| | | | | | | | | | |
| | Total expenses | | |
217,184
| | | |
53,516
| | | |
928,145
| | | |
230,906
| |
| | | | | | | | | | |
|
Income (loss) from continuing operations before taxes
| | |
63,738
| | | |
252,892
| | | |
(259,563
|
)
| | |
424,654
| |
|
Income tax benefit
| | |
1,773
| | | |
958
| | | |
1,825
| | | |
3,921
| |
| | | | | | | | | | |
| | Income (loss) from continuing operations | | |
65,511
| | | |
253,850
| | | |
(257,738
|
)
| | |
428,575
| |
|
(Loss) income from discontinued operations
| | |
(10,094
|
)
| | |
18,881
| | | |
(11,620
|
)
| | |
30,328
| |
| | | | | | | | | | |
| | Net income (loss) | | |
55,417
| | | |
272,731
| | | |
(269,358
|
)
| | |
458,903
| |
|
Net (income) loss attributable to noncontrolling interests
| | |
(21,903
|
)
| | |
(51,915
|
)
| | |
63,589
| | | |
(62,465
|
)
|
| | | | | | | | | | |
| | Net income (loss) attributable to RenaissanceRe | | |
33,514
| | | |
220,816
| | | |
(205,769
|
)
| | |
396,438
| |
|
Dividends on preference shares
| | |
(8,750
|
)
| | |
(10,575
|
)
| | |
(17,500
|
)
| | |
(21,150
|
)
|
| | | | | | | | | | |
| | | | | | | | | | |
| | Net income (loss) available (attributable) to
RenaissanceRe common shareholders | |
$
|
24,764
| | |
$
|
210,241
| | |
$
|
(223,269
|
)
| |
$
|
375,288
| |
| | | | | | | | | | |
|
Operating (loss) income (attributable) available to RenaissanceRe
common
shareholders per common share - diluted (1)
| |
$
|
(0.21
|
)
| |
$
|
2.40
| | |
$
|
(4.97
|
)
| |
$
|
4.30
| |
| | | | | | | | |
|
Income (loss) from continuing operations available (attributable)
to
RenaissanceRe common shareholders per common share - basic
| |
$
|
0.68
| | |
$
|
3.35
| | |
$
|
(4.16
|
)
| |
$
|
5.89
| |
| | | | | | | | |
|
(Loss) income from discontinued operations (attributable)
available to
RenaissanceRe common shareholders per common
share - basic
| | |
(0.20
|
)
| | |
0.34
| | | |
(0.23
|
)
| | |
0.53
| |
| | | | | | | | | |
|
Net income (loss) available (attributable) to RenaissanceRe
common
shareholders per common share - basic
| |
$
|
0.48
| | |
$
|
3.69
| | |
$
|
(4.39
|
)
| |
$
|
6.42
| |
| | | | | | | | | | |
|
Income (loss) from continuing operations available (attributable)
to
RenaissanceRe common shareholders per common share -
diluted (2)
| |
$
|
0.68
| | |
$
|
3.32
| | |
$
|
(4.16
|
)
| |
$
|
5.84
| |
| | | | | | | | |
|
(Loss) income from discontinued operations (attributable)
available to
RenaissanceRe common shareholders per common
share - diluted (2)
| | |
(0.20
|
)
| | |
0.34
| | | |
(0.23
|
)
| | |
0.53
| |
| | | | | | | | | | |
|
Net income (loss) available (attributable) to RenaissanceRe
common
shareholders per common share - diluted (2)
| |
$
|
0.48
| | |
$
|
3.66
| | |
$
|
(4.39
|
)
| |
$
|
6.37
| |
| | | | | | | | | | |
|
Average shares outstanding - basic
| | |
50,493
| | | |
55,538
| | | |
50,994
| | | |
56,972
| |
|
Average shares outstanding - diluted (2)
| | |
51,050
| | | |
56,044
| | | |
50,994
| | | |
57,465
| |
| | | | | | | | | | |
|
Net claims and claim expense ratio
| | |
69.6
|
%
| | |
(8.9
|
%)
| | |
149.2
|
%
| | |
17.0
|
%
|
|
Expense ratio
| | |
25.9
|
%
| | |
29.1
|
%
| | |
24.9
|
%
| | |
28.8
|
%
|
| | | | | | | | | | |
|
Combined ratio
| | |
95.5
|
%
| | |
20.2
|
%
| | |
174.1
|
%
| | |
45.8
|
%
|
| | | | | | | | | | |
|
Operating return on average common equity - annualized (1)
| | |
(1.4
|
%)
| | |
17.9
|
%
| | |
(16.3
|
%)
| | |
16.3
|
%
|
| | | | | | | | | | |
(1)
| |
See Comments on Regulation G for a reconciliation of non-GAAP
financial measures.
|
(2)
| |
Earnings per share calculations use average common shares
outstanding - basic, when in a net loss position, as required by
FASB ASC Topic Earnings per Share. |
| RenaissanceRe Holdings Ltd. and Subsidiaries |
| Summary Consolidated Balance Sheets |
|
(in thousands of United States Dollars, except per share amounts)
|
| | | | | | |
| | | | At |
| | | | June 30, 2011 | | December 31, 2010 |
| | | | | | |
| Assets | | | | |
|
Fixed maturity investments trading, at fair value
| |
$
|
3,864,205
| |
$
|
3,871,780
|
|
Fixed maturity investments available for sale, at fair value
| | |
202,769
| | |
244,917
|
| | | | | | |
| |
Total fixed maturity investments, at fair value
| | |
4,066,974
| | |
4,116,697
|
|
Short term investments, at fair value
| | |
774,421
| | |
1,110,364
|
|
Equity investments trading, at fair value
| | |
32,252
| | |
-
|
|
Other investments, at fair value
| | |
839,643
| | |
787,548
|
|
Investments in other ventures, under equity method
| | |
82,197
| | |
85,603
|
| | | | | | |
| |
Total investments
| | |
5,795,487
| | |
6,100,212
|
|
Cash and cash equivalents
| | |
237,737
| | |
277,738
|
|
Premiums receivable
| | |
933,519
| | |
322,080
|
|
Prepaid reinsurance premiums
| | |
245,676
| | |
60,643
|
|
Reinsurance recoverable
| | |
333,245
| | |
101,711
|
|
Accrued investment income
| | |
36,266
| | |
34,560
|
|
Deferred acquisition costs
| | |
90,858
| | |
35,648
|
|
Receivable for investments sold
| | |
257,075
| | |
99,226
|
|
Other secured assets
| | |
-
| | |
14,250
|
|
Other assets
| | |
219,226
| | |
205,373
|
|
Goodwill and other intangibles
| | |
14,383
| | |
14,690
|
|
Assets of discontinued operations held for sale
| | |
2,868
| | |
872,147
|
| | | | | | |
| | Total assets | |
$
|
8,166,340
| |
$
|
8,138,278
|
| | | | | | |
| Liabilities, Noncontrolling Interests and Shareholders' Equity | | | | |
| Liabilities | | | | |
|
Reserve for claims and claim expenses
| |
$
|
2,170,728
| |
$
|
1,257,843
|
|
Unearned premiums
| | |
830,939
| | |
286,183
|
|
Debt
| | |
349,201
| | |
549,155
|
|
Reinsurance balances payable
| | |
403,152
| | |
318,024
|
|
Payable for investments purchased
| | |
102,545
| | |
195,383
|
|
Other secured liabilities
| | |
-
| | |
14,000
|
|
Other liabilities
| | |
152,853
| | |
222,310
|
|
Liabilities of discontinued operations held for sale
| | |
10,220
| | |
598,511
|
| | | | | | |
| | Total liabilities | | |
4,019,638
| | |
3,441,409
|
| | | | | | |
|
Redeemable noncontrolling interest - DaVinciRe
| | |
628,001
| | |
757,655
|
| | | | | | |
| Shareholders' Equity | | | | |
|
Preference shares
| | |
550,000
| | |
550,000
|
|
Common shares
| | |
51,753
| | |
54,110
|
|
Additional paid-in capital
| | |
5,768
| | |
-
|
|
Accumulated other comprehensive income
| | |
18,031
| | |
19,823
|
|
Retained earnings
| | |
2,889,719
| | |
3,312,392
|
| | | | | | |
| | Total shareholders' equity attributable to RenaissanceRe | | |
3,515,271
| | |
3,936,325
|
|
Noncontrolling interest
| | |
3,430
| | |
2,889
|
| | | | | | |
| | Total shareholders' equity | | |
3,518,701
| | |
3,939,214
|
| | | | | | |
| | Total liabilities, noncontrolling interests and shareholders'
equity | |
$
|
8,166,340
| |
$
|
8,138,278
|
| | | | | | |
| Book value per common share | |
$
|
57.30
| |
$
|
62.58
|
| RenaissanceRe Holdings Ltd. and Subsidiaries |
| Supplemental Financial Data - Segment Information |
|
(in thousands of United States Dollars) (Unaudited)
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | Three months ended June 30, 2011 |
| | | | Reinsurance | | Lloyd's | | Insurance | | Eliminations | | Other | | Total |
| | | | | | | | | | | | | | |
|
Gross premiums written
| |
$
|
607,404
| | |
$
|
34,126
| | |
$
|
33
| | |
$
|
-
| | |
$
|
-
| | |
$
|
641,563
| |
| | | | | | | | | | | | | | |
|
Net premiums written
| |
$
|
395,856
| | |
$
|
32,084
| | |
$
|
55
| | | | | |
-
| | |
$
|
427,995
| |
| | | | | | | | | | | | | | |
|
Net premiums earned
| |
$
|
199,461
| | |
$
|
17,233
| | |
$
|
481
| | | | | |
-
| | |
$
|
217,175
| |
|
Net claims and claim expenses incurred
| | |
143,219
| | | |
8,619
| | | |
(577
|
)
| | | | |
-
| | | |
151,261
| |
|
Acquisition expenses
| | |
10,431
| | | |
3,305
| | | |
147
| | | | | |
-
| | | |
13,883
| |
|
Operational expenses
| | |
32,901
| | | |
8,635
| | | |
763
| | | | | |
-
| | | |
42,299
| |
| | | | | | | | | | | | | | |
| |
Underwriting income (loss)
| |
$
|
12,910
| | |
$
|
(3,326
|
)
| |
$
|
148
| | | | | |
-
| | | |
9,732
| |
|
Net investment income
| | | | | | | | | | |
33,328
| | | |
33,328
| |
|
Net foreign exchange losses
| | | | | | | | | | |
(4,521
|
)
| | |
(4,521
|
)
|
|
Equity in earnings of other ventures
| | | | | | | | | | |
5,128
| | | |
5,128
| |
|
Other loss
| | | | | | | | | | |
(5,167
|
)
| | |
(5,167
|
)
|
|
Net realized and unrealized gains on investments
| | | | | | | | | | |
34,979
| | | |
34,979
| |
|
Corporate expenses
| | | | | | | | | | |
(4,011
|
)
| | |
(4,011
|
)
|
|
Interest expense
| | | | | | | | | | |
(5,730
|
)
| | |
(5,730
|
)
|
| | | | | | | | | | | | | | |
| |
Income from continuing operations before taxes
| | | | | | | | | | | | |
63,738
| |
|
Income tax benefit
| | | | | | | | | | |
1,773
| | | |
1,773
| |
|
Loss from discontinued operations
| | | | | | | | | | |
(10,094
|
)
| | |
(10,094
|
)
|
|
Net income attributable to noncontrolling interests
| | | | | | | | | | |
(21,903
|
)
| | |
(21,903
|
)
|
|
Dividends on preference shares
| | | | | | | | | | |
(8,750
|
)
| | |
(8,750
|
)
|
| | | | | | | | | | | | | | |
| |
Net income available to RenaissanceRe common shareholders
| | | | | | | | | | | |
$
|
24,764
| |
| | | | | | | | | | | | | | |
|
Net claims and claim expenses incurred - current accident year
| |
$
|
162,398
| | |
$
|
9,612
| | |
$
|
(78
|
)
| | | | | |
$
|
171,932
| |
|
Net claims and claim expenses incurred - prior accident years
| | |
(19,179
|
)
| | |
(993
|
)
| | |
(499
|
)
| | | | | | |
(20,671
|
)
|
| | | | | | | | | | | | | | |
|
Net claims and claim expenses incurred - total
| |
$
|
143,219
| | |
$
|
8,619
| | |
$
|
(577
|
)
| | | | | |
$
|
151,261
| |
| | | | | | | | | | | | | | |
|
Net claims and claim expense ratio - current accident year
| | |
81.4
|
%
| | |
55.8
|
%
| | |
(16.2
|
%)
| | | | | | |
79.2
|
%
|
|
Net claims and claim expense ratio - prior accident years
| | |
(9.6
|
%)
| | |
(5.8
|
%)
| | |
(103.8
|
%)
| | | | | | |
(9.6
|
%)
|
| | | | | | | | | | | | | | |
|
Net claims and claim expense ratio - calendar year
| | |
71.8
|
%
| | |
50.0
|
%
| | |
(120.0
|
%)
| | | | | | |
69.6
|
%
|
|
Underwriting expense ratio
| | |
21.7
|
%
| | |
69.3
|
%
| | |
189.2
|
%
| | | | | | |
25.9
|
%
|
| | | | | | | | | | | | | | |
|
Combined ratio
| | |
93.5
|
%
| | |
119.3
|
%
| | |
69.2
|
%
| | | | | | |
95.5
|
%
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | Three months ended June 30, 2010 |
| | | | Reinsurance | | Lloyd's | | Insurance | | Eliminations (1) | | Other | | Total |
| | | | | | | | | | | | | | |
|
Gross premiums written
| |
$
|
496,517
| | |
$
|
34,841
| | |
$
|
(3,742
|
)
| |
$
|
(21,076
|
)
| |
$
|
-
| | |
$
|
506,540
| |
| | | | | | | | | | | | | | |
|
Net premiums written
| |
$
|
319,000
| | |
$
|
32,330
| | |
$
|
(21,996
|
)
| | | | |
-
| | |
$
|
329,334
| |
| | | | | | | | | | | | | | |
|
Net premiums earned
| |
$
|
198,223
| | |
$
|
16,630
| | |
$
|
(2,682
|
)
| | | | |
-
| | |
$
|
212,171
| |
|
Net claims and claim expenses incurred
| | |
(30,332
|
)
| | |
7,752
| | | |
3,777
| | | | | |
-
| | | |
(18,803
|
)
|
|
Acquisition expenses
| | |
17,941
| | | |
3,172
| | | |
2,467
| | | | | |
-
| | | |
23,580
| |
|
Operational expenses
| | |
29,869
| | | |
4,953
| | | |
3,218
| | | | | |
-
| | | |
38,040
| |
| | | | | | | | | | | | | | |
| |
Underwriting income (loss)
| |
$
|
180,745
| | |
$
|
753
| | |
$
|
(12,144
|
)
| | | | |
-
| | | |
169,354
| |
|
Net investment income
| | | | | | | | | | |
26,173
| | | |
26,173
| |
|
Net foreign exchange losses
| | | | | | | | | | |
(609
|
)
| | |
(609
|
)
|
|
Equity in earnings of other ventures
| | | | | | | | | | |
3,160
| | | |
3,160
| |
|
Other loss
| | | | | | | | | | |
(3,742
|
)
| | |
(3,742
|
)
|
|
Net realized and unrealized gains on fixed maturity investments
| | | | | | | | | | |
70,051
| | | |
70,051
| |
|
Net other-than-temporary impairments
| | | | | | | | | | |
(796
|
)
| | |
(796
|
)
|
|
Corporate expenses
| | | | | | | | | | |
(4,493
|
)
| | |
(4,493
|
)
|
|
Interest expense
| | | | | | | | | | |
(6,206
|
)
| | |
(6,206
|
)
|
| | | | | | | | | | | | | | |
| |
Income from continuing operations before taxes
| | | | | | | | | | | | |
252,892
| |
|
Income tax benefit
| | | | | | | | | | |
958
| | | |
958
| |
|
Income from discontinued operations
| | | | | | | | | | |
18,881
| | | |
18,881
| |
|
Net income attributable to redeemable noncontrolling interest -
DaVinciRe
| | | | | | | | |
(51,915
|
)
| | |
(51,915
|
)
|
|
Dividends on preference shares
| | | | | | | | | | |
(10,575
|
)
| | |
(10,575
|
)
|
| | | | | | | | | | | | | | |
| |
Net income available to RenaissanceRe common shareholders
| | | | | | | | | | | |
$
|
210,241
| |
| | | | | | | | | | | | | | |
|
Net claims and claim expenses incurred - current accident year
| |
$
|
50,994
| | |
$
|
7,814
| | |
$
|
2,627
| | | | | | |
$
|
61,435
| |
|
Net claims and claim expenses incurred - prior accident years
| | |
(81,326
|
)
| | |
(62
|
)
| | |
1,150
| | | | | | | |
(80,238
|
)
|
| | | | | | | | | | | | | | |
|
Net claims and claim expenses incurred - total
| |
$
|
(30,332
|
)
| |
$
|
7,752
| | |
$
|
3,777
| | | | | | |
$
|
(18,803
|
)
|
| | | | | | | | | | | | | | |
|
Net claims and claim expense ratio - current accident year
| | |
25.7
|
%
| | |
47.0
|
%
| |
NMF
| | | | | | |
29.0
|
%
|
|
Net claims and claim expense ratio - prior accident years
| | |
(41.0
|
%)
| | |
(0.4
|
%)
| |
NMF
| | | | | | |
(37.9
|
%)
|
| | | | | | | | | | | | | | |
|
Net claims and claim expense ratio - calendar year
| | |
(15.3
|
%)
| | |
46.6
|
%
| |
NMF
| | | | | | |
(8.9
|
%)
|
|
Underwriting expense ratio
| | |
24.1
|
%
| | |
48.9
|
%
| |
NMF
| | | | | | |
29.1
|
%
|
| | | | | | | | | | | | | | |
|
Combined ratio
| | |
8.8
|
%
| | |
95.5
|
%
| |
NMF
| | | | | | |
20.2
|
%
|
| | | | | | | | | | | | | | |
(1)
| |
Represents $21.0 million and $0.1 million of gross premiums ceded
from the Insurance segment to the Lloyd's segment and from the
Insurance segment to the Reinsurance segment, respectively.
|
|
NMF - Not a meaningful figure.
|
| RenaissanceRe Holdings Ltd. and Subsidiaries |
| Supplemental Financial Data - Segment Information (cont'd.) |
|
(in thousands of United States Dollars) (Unaudited)
|
| | | | | | | | | | | | | | |
| | | | Six months ended June 30, 2011 |
| | | | Reinsurance | | Lloyd's | | Insurance | | Eliminations (1) | | Other | | Total |
| | | | | | | | | | | | | | |
|
Gross premiums written
| |
$
|
1,181,086
| | |
$
|
70,746
| | |
$
|
313
| | |
$
|
(77
|
)
| |
$
|
-
| | |
$
|
1,252,068
| |
| | | | | | | | | | | | | | |
|
Net premiums written
| |
$
|
819,422
| | |
$
|
60,821
| | |
$
|
327
| | | | | |
-
| | |
$
|
880,570
| |
| | | | | | | | | | | | | | |
|
Net premiums earned
| |
$
|
488,890
| | |
$
|
32,907
| | |
$
|
919
| | | | | |
-
| | |
$
|
522,716
| |
|
Net claims and claim expenses incurred
| | |
738,623
| | | |
39,142
| | | |
2,033
| | | | | |
-
| | | |
779,798
| |
|
Acquisition expenses
| | |
40,223
| | | |
5,766
| | | |
229
| | | | | |
-
| | | |
46,218
| |
|
Operational expenses
| | |
65,264
| | | |
17,607
| | | |
1,258
| | | | | |
-
| | | |
84,129
| |
| | | | | | | | | | | | | | |
| |
Underwriting loss
| |
$
|
(355,220
|
)
| |
$
|
(29,608
|
)
| |
$
|
(2,601
|
)
| | | | |
-
| | | |
(387,429
|
)
|
|
Net investment income
| | | | | | | | | | |
93,609
| | | |
93,609
| |
|
Net foreign exchange losses
| | | | | | | | | | |
(3,861
|
)
| | |
(3,861
|
)
|
|
Equity in losses of other ventures
| | | | | | | | | | |
(18,625
|
)
| | |
(18,625
|
)
|
|
Other income
| | | | | | | | | | |
44,978
| | | |
44,978
| |
|
Net realized and unrealized gains on investments
| | | | | | | | | | |
29,765
| | | |
29,765
| |
|
Corporate expenses
| | | | | | | | | | |
(6,075
|
)
| | |
(6,075
|
)
|
|
Interest expense
| | | | | | | | | | |
(11,925
|
)
| | |
(11,925
|
)
|
| | | | | | | | | | | | | | |
| |
Loss from continuing operations before taxes
| | | | | | | | | | | | |
(259,563
|
)
|
|
Income tax benefit
| | | | | | | | | | |
1,825
| | | |
1,825
| |
|
Loss from discontinued operations
| | | | | | | | | | |
(11,620
|
)
| | |
(11,620
|
)
|
|
Net loss attributable to noncontrolling interests
| | | | | | | | | | |
63,589
| | | |
63,589
| |
|
Dividends on preference shares
| | | | | | | | | | |
(17,500
|
)
| | |
(17,500
|
)
|
| | | | | | | | | | | | | | |
| |
Net loss attributable to RenaissanceRe common shareholders
| | | | | | | | | | | |
$
|
(223,269
|
)
|
| | | | | | | | | | | | | | |
|
Net claims and claim expenses incurred - current accident year
| |
$
|
829,760
| | |
$
|
38,938
| | |
$
|
(69
|
)
| | | | | |
$
|
868,629
| |
|
Net claims and claim expenses incurred - prior accident years
| | |
(91,137
|
)
| | |
204
| | | |
2,102
| | | | | | | |
(88,831
|
)
|
| | | | | | | | | | | | | | |
|
Net claims and claim expenses incurred - total
| |
$
|
738,623
| | |
$
|
39,142
| | |
$
|
2,033
| | | | | | |
$
|
779,798
| |
| | | | | | | | | | | | | | |
|
Net claims and claim expense ratio - current accident year
| | |
169.7
|
%
| | |
118.3
|
%
| | |
(7.5
|
%)
| | | | | | |
166.2
|
%
|
|
Net claims and claim expense ratio - prior accident years
| | |
(18.6
|
%)
| | |
0.6
|
%
| | |
228.7
|
%
| | | | | | |
(17.0
|
%)
|
| | | | | | | | | | | | | | |
|
Net claims and claim expense ratio - calendar year
| | |
151.1
|
%
| | |
118.9
|
%
| | |
221.2
|
%
| | | | | | |
149.2
|
%
|
|
Underwriting expense ratio
| | |
21.6
|
%
| | |
71.1
|
%
| | |
161.8
|
%
| | | | | | |
24.9
|
%
|
| | | | | | | | | | | | | | |
|
Combined ratio
| | |
172.7
|
%
| | |
190.0
|
%
| | |
383.0
|
%
| | | | | | |
174.1
|
%
|
| | | | | | | | | | | | | | |
(1)
| |
Represents $0.1 million of gross premiums ceded from the Reinsurance
segment to the Lloyd's segment.
|
| | | | | | | | | | | | | | |
| | | | Six months ended June 30, 2010 |
| | | | Reinsurance | | Lloyd's | | Insurance | | Eliminations (1) | | Other | | Total |
| | | | | | | | | | | | | | |
|
Gross premiums written
| |
$
|
995,102
| | |
$
|
48,865
| | |
$
|
685
| | |
$
|
(22,101
|
)
| |
$
|
-
| | |
$
|
1,022,551
| |
| | | | | | | | | | | | | | |
|
Net premiums written
| |
$
|
707,658
| | |
$
|
45,981
| | |
$
|
(17,146
|
)
| | | | |
-
| | |
$
|
736,493
| |
| | | | | | | | | | | | | | |
|
Net premiums earned
| |
$
|
441,292
| | |
$
|
23,601
| | |
$
|
(2,069
|
)
| | | | |
-
| | |
$
|
462,824
| |
|
Net claims and claim expenses incurred
| | |
68,615
| | | |
10,339
| | | |
(417
|
)
| | | | |
-
| | | |
78,537
| |
|
Acquisition expenses
| | |
40,600
| | | |
4,331
| | | |
5,084
| | | | | |
-
| | | |
50,015
| |
|
Operational expenses
| | |
63,886
| | | |
11,087
| | | |
8,217
| | | | | |
-
| | | |
83,190
| |
| | | | | | | | | | | | | | |
| |
Underwriting income (loss)
| |
$
|
268,191
| | |
$
|
(2,156
|
)
| |
$
|
(14,953
|
)
| | | | |
-
| | | |
251,082
| |
|
Net investment income
| | | | | | | | | | |
91,882
| | | |
91,882
| |
|
Net foreign exchange losses
| | | | | | | | | | |
(11,951
|
)
| | |
(11,951
|
)
|
|
Equity in earnings of other ventures
| | | | | | | | | | |
5,316
| | | |
5,316
| |
|
Other loss
| | | | | | | | | | |
(9,933
|
)
| | |
(9,933
|
)
|
|
Net realized and unrealized gains on fixed maturity investments
| | | | | | | | | | |
118,251
| | | |
118,251
| |
|
Net other-than-temporary impairments
| | | | | | | | | | |
(829
|
)
| | |
(829
|
)
|
|
Corporate expenses
| | | | | | | | | | |
(9,802
|
)
| | |
(9,802
|
)
|
|
Interest expense
| | | | | | | | | | |
(9,362
|
)
| | |
(9,362
|
)
|
| | | | | | | | | | | | | | |
| |
Income from continuing operations before taxes
| | | | | | | | | | | | |
424,654
| |
|
Income tax benefit
| | | | | | | | | | |
3,921
| | | |
3,921
| |
|
Income from discontinued operations
| | | | | | | | | | |
30,328
| | | |
30,328
| |
|
Net income attributable to redeemable noncontrolling interest -
DaVinciRe
| | | | | | | | |
(62,465
|
)
| | |
(62,465
|
)
|
|
Dividends on preference shares
| | | | | | | | | | |
(21,150
|
)
| | |
(21,150
|
)
|
| | | | | | | | | | | | | | |
| |
Net income available to RenaissanceRe common shareholders
| | | | | | | | | | | |
$
|
375,288
| |
| | | | | | | | | | | | | | |
|
Net claims and claim expenses incurred - current accident year
| |
$
|
255,059
| | |
$
|
10,500
| | |
$
|
5,486
| | | | | | |
$
|
271,045
| |
|
Net claims and claim expenses incurred - prior accident years
| | |
(186,444
|
)
| | |
(161
|
)
| | |
(5,903
|
)
| | | | | | |
(192,508
|
)
|
| | | | | | | | | | | | | | |
|
Net claims and claim expenses incurred - total
| |
$
|
68,615
| | |
$
|
10,339
| | |
$
|
(417
|
)
| | | | | |
$
|
78,537
| |
| | | | | | | | | | | | | | |
|
Net claims and claim expense ratio - current accident year
| | |
57.8
|
%
| | |
44.5
|
%
| |
NMF
| | | | | | |
58.6
|
%
|
|
Net claims and claim expense ratio - prior accident years
| | |
(42.3
|
%)
| | |
(0.7
|
%)
| |
NMF
| | | | | | |
(41.6
|
%)
|
| | | | | | | | | | | | | | |
|
Net claims and claim expense ratio - calendar year
| | |
15.5
|
%
| | |
43.8
|
%
| |
NMF
| | | | | | |
17.0
|
%
|
|
Underwriting expense ratio
| | |
23.7
|
%
| | |
65.3
|
%
| |
NMF
| | | | | | |
28.8
|
%
|
| | | | | | | | | | | | | | |
|
Combined ratio
| | |
39.2
|
%
| | |
109.1
|
%
| |
NMF
| | | | | | |
45.8
|
%
|
| | | | | | | | | | | | | | |
(1)
| |
Represents $21.6 million, $0.2 million and $0.2 million of gross
premiums ceded from the Insurance segment to the Lloyd's segment,
from the Insurance segment to the Reinsurance segment and from the
Reinsurance segment to Lloyd's segment, respectively.
|
|
NMF - Not a meaningful figure.
|
| RenaissanceRe Holdings Ltd. and Subsidiaries |
| Supplemental Financial Data - Gross Premiums Written and Managed
Premiums Analysis |
|
(in thousands of United States Dollars)
|
|
(Unaudited)
|
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | Three months ended | | Six months ended |
Reinsurance Segment | | June 30, 2011 | | June 30, 2010 | | June 30, 2011 | | June 30, 2010 |
| | | | | | | | | | | |
|
Renaissance catastrophe premiums
| |
$
|
366,929
| |
$
|
302,625
| | |
$
|
678,571
| |
$
|
570,919
| |
|
Renaissance specialty premiums
| | |
23,066
| | |
7,389
| | | |
97,461
| | |
79,838
| |
| | | | | | | | | | | |
| |
Total Renaissance premiums
| | |
389,995
| | |
310,014
| | | |
776,032
| | |
650,757
| |
| | | | | | | | | | | |
|
DaVinci catastrophe premiums
| | |
216,317
| | |
186,917
| | | |
403,353
| | |
342,743
| |
|
DaVinci specialty premiums
| | |
1,092
| | |
(414
|
)
| | |
1,701
| | |
1,602
| |
| | | | | | | | | | | |
| |
Total DaVinci premiums
| | |
217,409
| | |
186,503
| | | |
405,054
| | |
344,345
| |
| | | | | | | | | | | |
|
Total catastrophe unit premiums
| | |
583,246
| | |
489,542
| | | |
1,081,924
| | |
913,662
| |
|
Total specialty unit premiums
| | |
24,158
| | |
6,975
| | | |
99,162
| | |
81,440
| |
| | | | | | | | | | | |
| | Total Reinsurance segment gross premiums written | |
$
|
607,404
| |
$
|
496,517
| | |
$
|
1,181,086
| |
$
|
995,102
| |
| | | | | | | | | | | |
Lloyd's Segment | | | | | | | | |
| | | | | | | | | | | |
|
Specialty
| |
$
|
17,546
| |
$
|
6,508
| | |
$
|
46,781
| |
$
|
14,230
| |
|
Catastrophe
| | |
16,580
| | |
7,324
| | | |
23,965
| | |
12,993
| |
|
Insurance
| | |
-
| | |
21,009
| | | |
-
| | |
21,642
| |
| | | | | | | | | | | |
| | Total Lloyd's segment gross premiums written | |
$
|
34,126
| |
$
|
34,841
| | |
$
|
70,746
| |
$
|
48,865
| |
| | | | | | | | | | | |
| | | | | | | | | | | |
Insurance Segment | | | | | | | | |
| | | | | | | | | | | |
|
Commercial property
| |
$
|
33
| |
$
|
20
| | |
$
|
313
| |
$
|
1,117
| |
|
Personal lines property
| | |
-
| | |
(3,762
|
)
| | |
-
| | |
(432
|
)
|
| | | | | | | | | | | |
| | Total Insurance segment gross premiums written | |
$
|
33
| |
$
|
(3,742
|
)
| |
$
|
313
| |
$
|
685
| |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | Three months ended | | Six months ended |
Managed Premiums (1) | | June 30, 2011 | | June 30, 2010 | | June 30, 2011 | | June 30, 2010 |
| | | | | | | | | | | |
|
Total catastrophe unit gross premiums written
| |
$
|
583,246
| |
$
|
489,542
| | |
$
|
1,081,924
| |
$
|
913,662
| |
| |
Catastrophe premiums written on behalf of our joint venture, Top
Layer Re (2)
| | |
19,079
| | |
18,793
| | | |
41,607
| | |
44,979
| |
| |
Catastrophe premiums written in the Lloyd's segment
| | |
16,580
| | |
7,324
| | | |
23,965
| | |
12,993
| |
| |
Catastrophe premiums assumed from the Insurance segment
| | |
-
| | |
(67
|
)
| | |
-
| | |
(242
|
)
|
| | | | | | | | | | | |
| | Total managed catastrophe premiums (1) | |
$
|
618,905
| |
$
|
515,592
| | |
$
|
1,147,496
| |
$
|
971,392
| |
| | | | | | | | | | | |
|
(1)
| |
See Comments on Regulation G for a reconciliation of non-GAAP
financial measures.
|
|
(2)
| |
Top Layer Re is accounted for under the equity method of accounting.
|
| RenaissanceRe Holdings Ltd. and Subsidiaries |
| Supplemental Financial Data - Total Investment Result |
|
(in thousands of United States Dollars)
|
|
(Unaudited)
|
| | | | | | | | | | |
| | | | | | | | | | |
| | | | Three months ended | | Six months ended |
| | | | June 30, 2011 | | June 30, 2010 | | June 30, 2011 | | June 30, 2010 |
| | | | | | | | | | |
|
Fixed maturity investments
| |
$
|
24,426
| | |
$
|
28,014
| | |
$
|
52,339
| | |
$
|
56,889
| |
|
Short term investments
| | |
433
| | | |
682
| | | |
1,028
| | | |
1,168
| |
|
Equity investments trading
| | |
112
| | | |
-
| | | |
126
| | | |
-
| |
|
Other investments
| | | | | | | | |
| |
Hedge funds and private equity investments
| | |
8,230
| | | |
8,188
| | | |
31,737
| | | |
25,724
| |
| |
Other
| | |
2,838
| | | |
(8,184
|
)
| | |
13,665
| | | |
13,034
| |
|
Cash and cash equivalents
| | |
45
| | | |
22
| | | |
86
| | | |
83
| |
| | | | | | | | | | |
| | | | |
36,084
| | | |
28,722
| | | |
98,981
| | | |
96,898
| |
|
Investment expenses
| | |
(2,756
|
)
| | |
(2,549
|
)
| | |
(5,372
|
)
| | |
(5,016
|
)
|
| | | | | | | | | | |
| Net investment income | | |
33,328
| | | |
26,173
| | | |
93,609
| | | |
91,882
| |
| | | | | | | | | | |
|
Gross realized gains
| | |
15,430
| | | |
28,753
| | | |
25,992
| | | |
77,601
| |
|
Gross realized losses
| | |
(4,156
|
)
| | |
(5,962
|
)
| | |
(16,773
|
)
| | |
(11,132
|
)
|
| | | | | | | | | | |
| Net realized gains on fixed maturity investments | | |
11,274
| | | |
22,791
| | | |
9,219
| | | |
66,469
| |
| | | | | | | | | | |
|
Net unrealized gains on fixed maturity investments trading
| | |
24,728
| | | |
47,260
| | | |
20,970
| | | |
51,782
| |
|
Net unrealized losses on equity investments trading
| | |
(1,023
|
)
| | |
-
| | | |
(424
|
)
| | |
-
| |
| | | | | | | | | | |
| Net realized and unrealized gains on investments | | |
34,979
| | | |
70,051
| | | |
29,765
| | | |
118,251
| |
| | | | | | | | | | |
|
Total other-than-temporary impairments
| | |
-
| | | |
(798
|
)
| | |
-
| | | |
(831
|
)
|
|
Portion recognized in other comprehensive income, before taxes
| | |
-
| | | |
2
| | | |
-
| | | |
2
| |
| | | | | | | | | | |
| Net other-than-temporary impairments | | |
-
| | | |
(796
|
)
| | |
-
| | | |
(829
|
)
|
| | | | | | | | | | |
| Change in net unrealized gains on fixed maturity investment
available for sale | | |
(1,763
|
)
| | |
(9,414
|
)
| | |
(1,511
|
)
| | |
(18,055
|
)
|
| | | | | | | | | | |
| Total investment result | |
$
|
66,544
| | |
$
|
86,014
| | |
$
|
121,863
| | |
$
|
191,249
| |
Comments on Regulation G
In addition to the GAAP financial measures set forth in this Press
Release, the Company has included certain non-GAAP financial measures in
this Press Release within the meaning of Regulation G. The Company has
provided these financial measurements in previous investor
communications and the Company’s management believes that these
measurements are important to investors and other interested persons,
and that investors and such other persons benefit from having a
consistent basis for comparison between quarters and for the comparison
with other companies within the industry. These measures may not,
however, be comparable to similarly titled measures used by companies
outside of the insurance industry. Investors are cautioned not to place
undue reliance on these non-GAAP measures in assessing the Company’s
overall financial performance.
The Company uses “operating (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 (loss) available (attributable) to
RenaissanceRe common shareholders,” which the Company believes is the
most directly comparable GAAP measure, by the exclusion of net realized
and unrealized gains and losses on investments from continuing and
discontinued operations and net other-than-temporary impairments from
continuing and discontinued operations. 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
Company’s fixed maturity investment portfolio and equity investments
trading. 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 is a reconciliation
of: 1) net income (loss) available (attributable) to RenaissanceRe
common shareholders to operating (loss) income (attributable) available
to RenaissanceRe common shareholders; 2) net income (loss) available
(attributable) 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:
| | | | | | | | | | | |
| | | | | Three months ended | | Six months ended |
|
(in thousands of United States dollars, except for per share amounts)
| | June 30, 2011 | June 30, 2010 | | June 30, 2011 | | June 30, 2010 |
| | | | | | | | | | | |
|
Net income (loss) available (attributable) to RenaissanceRe common
shareholders
| |
$
|
24,764
| | |
$
|
210,241
| | |
$
|
(223,269
|
)
| |
$
|
375,288
| |
| | | | | | | | | | |
|
Adjustment for net realized and unrealized (gains) losses
on
investments of continuing operations
| | |
(34,979
|
)
| | |
(70,051
|
)
| | |
(29,765
|
)
| | |
(118,251
|
)
|
|
Adjustment for net other-than-temporary impairments of continuing
operations
| | |
-
| | | |
796
| | | |
-
| | | |
829
| |
| | | | | | | | |
|
Adjustment for net realized and unrealized gains on fixed maturity
investments
and net other-than-temporary impairments of
discontinued operations
| | |
-
| | | |
(1,055
|
)
| | |
(42
|
)
| | |
(1,453
|
)
|
| | | | | | | | | | | |
|
Operating (loss) income (attributable) available to RenaissanceRe
common shareholders
| |
$
|
(10,215
|
)
| |
$
|
139,931
| | |
$
|
(253,076
|
)
| |
$
|
256,413
| |
| | | | | | | | | | | |
| | | | | | | |
|
Net income (loss) available (attributable) to RenaissanceRe common
shareholders
per common share - diluted
| |
$
|
0.48
| | |
$
|
3.66
| | |
$
|
(4.39
|
)
| |
$
|
6.37
| |
| | | | | | | | | | |
|
Adjustment for net realized and unrealized (gains) losses
on
investments of continuing operations
| | |
(0.69
|
)
| | |
(1.26
|
)
| | |
(0.58
|
)
| | |
(2.07
|
)
|
|
Adjustment for net other-than-temporary impairments of continuing
operations
| | |
-
| | | |
0.02
| | | |
-
| | | |
0.02
| |
| | | | | | | | |
|
Adjustment for net realized and unrealized gains on fixed maturity
investments
and net other-than-temporary impairments of
discontinued operations
| | |
-
| | | |
(0.02
|
)
| | |
-
| | | |
(0.02
|
)
|
| | | | | | | | | | | |
| | | | | | | |
|
Operating (loss) income (attributable) available to RenaissanceRe
common shareholders
per common share - diluted
| |
$
|
(0.21
|
)
| |
$
|
2.40
| | |
$
|
(4.97
|
)
| |
$
|
4.30
| |
| | | | | | | | | | | |
|
Return on average common equity - annualized
| | |
3.3
|
%
| | |
26.8
|
%
| | |
(14.4
|
%)
| | |
23.8
|
%
|
| | | | | | | | | | |
|
Adjustment for net realized and unrealized (gains) losses
on
investments of continuing operations
| | |
(4.7
|
%)
| | |
(8.9
|
%)
| | |
(1.9
|
%)
| | |
(7.5
|
%)
|
|
Adjustment for net other-than-temporary impairments of continuing
operations
| | |
-
| | | |
0.1
|
%
| | |
-
| | | |
0.1
|
%
|
| | | | | | | | |
|
Adjustment for net realized and unrealized gains on fixed maturity
investments
and net other-than-temporary impairments of
discontinued operations
| | |
-
| | | |
(0.1
|
%)
| | |
-
| | | |
(0.1
|
%)
|
| | | | | | | | | | | |
|
Operating return on average common equity - annualized
| | |
(1.4
|
%)
| | |
17.9
|
%
| | |
(16.3
|
%)
| | |
16.3
|
%
|
The Company has also included in this Press Release “managed catastrophe
premiums”. “Managed catastrophe premiums” is defined as gross
catastrophe premiums written by Renaissance Reinsurance and its related
joint ventures, excluding catastrophe premiums assumed from the
Company’s Insurance segment. “Managed catastrophe premiums” differs from
total catastrophe unit gross premiums written, which the Company
believes is the most directly comparable GAAP measure, due to the
inclusion of catastrophe premiums written on behalf of the Company’s
joint venture Top Layer Re, which is accounted for under the equity
method of accounting, the inclusion of catastrophe premiums written on
behalf of the Company’s Lloyd’s segment, and the exclusion of
catastrophe premiums assumed from the Company’s Insurance segment. The
Company’s management believes “managed catastrophe premiums” is useful
to investors and other interested parties because it provides a measure
of total catastrophe premiums, as applicable, assumed by the Company
through its consolidated subsidiaries and related joint ventures,
excluding catastrophe premiums assumed from the Company's Insurance
segment.
