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 | % | | | | | | | | | | | |
|