XML 33 R20.htm IDEA: XBRL DOCUMENT v3.19.1
Segment Reporting
3 Months Ended
Mar. 31, 2019
Segment Reporting, Measurement Disclosures [Abstract]  
Segment Reporting SEGMENT REPORTING
The Company’s reportable segments are defined as follows: (1) Property, which is comprised of catastrophe and other property reinsurance and insurance written on behalf of the Company’s operating subsidiaries and certain joint ventures managed by the Company’s ventures unit, and (2) Casualty and Specialty, which is comprised of casualty and specialty reinsurance and insurance written on behalf of the Company’s operating subsidiaries and certain joint ventures managed by the Company’s ventures unit. In addition to its reportable segments, the Company has an Other category, which primarily includes its strategic investments, investments unit, corporate expenses, capital servicing costs, noncontrolling interests and the remnants of its former Bermuda-based insurance operations. From the acquisition date, March 22, 2019, through March 31, 2019, the results of operations of the TMR Group Entities were not material, and as a result were not included in the Company’s consolidated statements of operations for the three months ended March 31, 2019. In future periods, the results of operations of the TMR Group Entities will be reflected in the Company’s existing reportable segments.
The Company’s Property segment is managed by the Chief Underwriting Officer - Property and the Casualty and Specialty segment is managed by the Chief Underwriting Officer - Casualty and Specialty, each of whom operate under the direction of the Company’s Group Chief Underwriting Officer, who in turn reports to the Company’s President and Chief Executive Officer.
The Company does not manage its assets by segment; accordingly, net investment income and total assets are not allocated to the segments. A summary of the significant components of the Company’s revenues and expenses by segment is as follows:
 
 
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2019
Property
 
Casualty and Specialty
 
Other
 
Total
 
 
Gross premiums written
$
1,032,384

 
$
531,911

 
$

 
$
1,564,295

 
 
Net premiums written
$
564,230

 
$
364,801

 
$

 
$
929,031

 
 
Net premiums earned
$
290,745

 
$
259,283

 
$

 
$
550,028

 
 
Net claims and claim expenses incurred
56,083

 
170,933

 
19

 
227,035

 
 
Acquisition expenses
53,739

 
70,212

 

 
123,951

 
 
Operational expenses
28,544

 
16,389

 

 
44,933

 
 
Underwriting income (loss)
$
152,379

 
$
1,749

 
$
(19
)
 
154,109

 
 
Net investment income
 
 
 
 
81,462

 
81,462

 
 
Net foreign exchange losses
 
 
 
 
(2,846
)
 
(2,846
)
 
 
Equity in earnings of other ventures
 
 
 
 
4,661

 
4,661

 
 
Other income
 
 
 
 
3,171

 
3,171

 
 
Net realized and unrealized gains on investments
 
 
 
 
170,645

 
170,645

 
 
Corporate expenses
 
 
 
 
(38,789
)
 
(38,789
)
 
 
Interest expense
 
 
 
 
(11,754
)
 
(11,754
)
 
 
Income before taxes and redeemable noncontrolling interests
 
 
 
 
 
 
360,659

 
 
Income tax expense
 
 
 
 
(7,531
)
 
(7,531
)
 
 
Net income attributable to redeemable noncontrolling interests
 
 
 
 
(70,222
)
 
(70,222
)
 
 
Dividends on preference shares
 
 
 
 
(9,189
)
 
(9,189
)
 
 
Net income available to RenaissanceRe common shareholders
 
 
 
 
 
 
$
273,717

 
 
 
 
 
 
 
 
 
 
 
 
Net claims and claim expenses incurred – current accident year
$
54,206

 
$
177,135

 
$

 
$
231,341

 
 
Net claims and claim expenses incurred – prior accident years
1,877

 
(6,202
)
 
19

 
(4,306
)
 
 
Net claims and claim expenses incurred – total
$
56,083

 
$
170,933

 
$
19

 
$
227,035

 
 
 
 
 
 
 
 
 
 
 
 
Net claims and claim expense ratio – current accident year
18.6
%
 
68.3
 %
 
 
 
42.1
 %
 
 
Net claims and claim expense ratio – prior accident years
0.7
%
 
(2.4
)%
 
 
 
(0.8
)%
 
 
Net claims and claim expense ratio – calendar year
19.3
%
 
65.9
 %
 
 
 
41.3
 %
 
 
Underwriting expense ratio
28.3
%
 
33.4
 %
 
 
 
30.7
 %
 
 
Combined ratio
47.6
%
 
99.3
 %
 
 
 
72.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2018
Property
 
Casualty and Specialty
 
Other
 
Total
 
 
Gross premiums written
$
706,968

 
$
452,684

 
$

 
$
1,159,652

 
 
Net premiums written
$
354,077

 
$
308,967

 
$

 
$
663,044

 
 
Net premiums earned
$
225,049

 
$
215,233

 
$

 
$
440,282

 
 
Net claims and claim expenses incurred
30,607

 
141,078

 
18

 
171,703

 
 
Acquisition expenses
40,721

 
56,990

 

 
97,711

 
 
Operational expenses
26,546

 
14,593

 
133

 
41,272

 
 
Underwriting income (loss)
$
127,175

 
$
2,572

 
$
(151
)
 
129,596

 
 
Net investment income
 
 
 
 
56,476

 
56,476

 
 
Net foreign exchange gains
 
 
 
 
3,757

 
3,757

 
 
Equity in earnings of other ventures
 
 
 
 
857

 
857

 
 
Other loss
 
 
 
 
(1,242
)
 
(1,242
)
 
 
Net realized and unrealized losses on investments
 
 
 
 
(82,144
)
 
(82,144
)
 
 
Corporate expenses
 
 
 
 
(6,733
)
 
(6,733
)
 
 
Interest expense
 
 
 
 
(11,767
)
 
(11,767
)
 
 
Income before taxes and redeemable noncontrolling interests
 
 
 
 
 
 
88,800

 
 
Income tax benefit
 
 
 
 
3,407

 
3,407

 
 
Net income attributable to redeemable noncontrolling interests
 
 
 
 
(29,899
)
 
(29,899
)
 
 
Dividends on preference shares
 
 
 
 
(5,595
)
 
(5,595
)
 
 
Net income available to RenaissanceRe common shareholders
 
 
 
 
 
 
$
56,713

 
 
 
 
 
 
 
 
 
 
 
 
Net claims and claim expenses incurred – current accident year
$
58,169

 
$
144,869

 
$

 
$
203,038

 
 
Net claims and claim expenses incurred – prior accident years
(27,562
)
 
(3,791
)
 
18

 
(31,335
)
 
 
Net claims and claim expenses incurred – total
$
30,607

 
$
141,078

 
$
18

 
$
171,703

 
 
 
 
 
 
 
 
 
 
 
 
Net claims and claim expense ratio – current accident year
25.8
 %
 
67.3
 %
 
 
 
46.1
 %
 
 
Net claims and claim expense ratio – prior accident years
(12.2
)%
 
(1.8
)%
 
 
 
(7.1
)%
 
 
Net claims and claim expense ratio – calendar year
13.6
 %
 
65.5
 %
 
 
 
39.0
 %
 
 
Underwriting expense ratio
29.9
 %
 
33.3
 %
 
 
 
31.6
 %
 
 
Combined ratio
43.5
 %
 
98.8
 %
 
 
 
70.6
 %