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Segment Reporting
12 Months Ended
Dec. 31, 2012
Segment Reporting, Measurement Disclosures [Abstract]  
Segment Reporting
SEGMENT REPORTING
The Company currently has two reportable segments: Reinsurance and Lloyd's.
As of December 31, 2012, the Company undertook a review of its reportable segments and concluded that its former Insurance segment no longer met the quantitative thresholds defined in FASB ASC Topic Segment Reporting. These operations are not actively involved in pursuing business opportunities and are in run-off; therefore the Company determined it no longer requires, nor warrant, separate disclosure as a reportable segment. As such, the results of operations of the former Insurance segment have been included in the Other category, and all prior periods presented herein have been reclassified to conform with the current year presentation.
The Company's Reinsurance operations are comprised of: 1) property catastrophe reinsurance, principally written through Renaissance Reinsurance and DaVinci; 2) specialty reinsurance, principally written through Renaissance Reinsurance, DaVinci and Glencoe; and 3) certain property catastrophe and specialty joint ventures, as described herein. The Reinsurance segment is managed by the Company's President and Global Chief Underwriting Officer, who leads a team of underwriters, risk modelers and other industry professionals, who have access to the Company's proprietary risk management, underwriting and modeling resources and tools.
The Company's Lloyd's segment includes reinsurance and insurance business written through Syndicate 1458. Syndicate 1458 started writing certain lines of insurance and reinsurance business incepting on or after June 1, 2009. The syndicate was established to enhance the Company's underwriting platform by providing access to Lloyd's extensive distribution network and worldwide licenses and is managed by the Chief Underwriting Officer Lloyd's. RenaissanceRe Corporate Capital (UK) Limited ("RenaissanceRe CCL"), an indirect wholly owned subsidiary of RenaissanceRe, is the sole corporate member of Syndicate 1458.
The financial results of the Company's strategic investments, weather and energy risk management operations, former Insurance segment and noncontrolling interests are included in the Other category of the Company's segment results. Also included in the Other category of the Company's segment results are the Company's investments in other ventures, investments unit, corporate expenses and capital servicing costs.
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 is as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2012
Reinsurance
 
Lloyd's
 
Other
 
Eliminations (1)
 
Total
 
 
Gross premiums written
$
1,392,094

 
$
159,987

 
$

 
$
(490
)
 
$
1,551,591

 
 
Net premiums written
$
967,587

 
$
135,131

 
$
(61
)
 
 
 
$
1,102,657

 
 
Net premiums earned
$
946,423

 
$
122,968

 
$
(36
)
 
 
 
$
1,069,355

 
 
Net claims and claim expenses incurred
242,022

 
80,242

 
2,947

 
 
 
325,211

 
 
Acquisition expenses
90,491

 
22,864

 
187

 
 
 
113,542

 
 
Operational expenses
132,935

 
45,680

 
686

 
 
 
179,301

 
 
Underwriting income (loss)
$
480,975

 
$
(25,818
)
 
$
(3,856
)
 
 
 
451,301

 
 
Net investment income
 
 
 
 
167,375

 
 
 
167,375

 
 
Net foreign exchange gains
 
 
 
 
5,223

 
 
 
5,223

 
 
Equity in earnings of other ventures
 
 
 
 
23,238

 
 
 
23,238

 
 
Other loss
 
 
 
 
(22,905
)
 
 
 
(22,905
)
 
 
Net realized and unrealized gains on investments
 
 
 
 
163,991

 
 
 
163,991

 
 
Net other-than-temporary impairments
 
 
 
 
(343
)
 
 
 
(343
)
 
 
Corporate expenses
 
 
 
 
(16,692
)
 
 
 
(16,692
)
 
 
Interest expense
 
 
 
 
(23,097
)
 
 
 
(23,097
)
 
 
Income from continuing operations before taxes
 
 
 
 
 
 
 
 
748,091

 
 
Income tax expense
 
 
 
 
(1,429
)
 
 
 
(1,429
)
 
 
Income from discontinued operations
 
 
 
 
2,287

 
 
 
2,287

 
 
Net income attributable to noncontrolling interests
 
 
 
 
(148,040
)
 
 
 
(148,040
)
 
 
Dividends on preference shares
 
 
 
 
(34,895
)
 
 
 
(34,895
)
 
 
Net income available to RenaissanceRe common shareholders
 
 
 
 
 
 
 
 
$
566,014

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net claims and claim expenses incurred – current accident year
$
386,736

 
$
96,444

  
$

 
 
 
$
483,180

 
 
Net claims and claim expenses incurred – prior accident years
(144,714
)
 
(16,202
)
 
2,947

 
 
 
(157,969
)
 
 
Net claims and claim expenses incurred – total
$
242,022

 
$
80,242

 
$
2,947

 
 
 
$
325,211

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net claims and claim expense ratio – current accident year
40.9
 %
 
78.4
 %
 
 %
 
 
 
45.2
 %
 
 
Net claims and claim expense ratio – prior accident years
(15.3
)%
 
(13.1
)%
 
(8,186.1
)%
 
 
 
(14.8
)%
 
 
Net claims and claim expense ratio – calendar year
25.6
 %
 
65.3
 %
 
(8,186.1
)%
 
 
 
30.4
 %
 
 
Underwriting expense ratio
23.6
 %
 
55.7
 %
 
(2,425.0
)%
 
 
 
27.4
 %
 
 
Combined ratio
49.2
 %
 
121.0
 %
 
(10,611.1
)%
 
 
 
57.8
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Represents $0.5 million of gross premiums ceded from the Reinsurance segment to the Lloyd's segment.



 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2011
Reinsurance
 
Lloyd's
 
Other
 
Eliminations 
(1)
 
Total
 
 
Gross premiums written
$
1,323,187

 
$
111,584

 
$
282

 
$
(77
)
 
$
1,434,976

 
 
Net premiums written
$
913,499

 
$
98,617

 
$
657

 
 
 
$
1,012,773

 
 
Net premiums earned
$
873,088

 
$
76,386

 
$
1,575

 
 
 
$
951,049

 
 
Net claims and claim expenses incurred
783,704

 
73,259

 
4,216

 
 
 
861,179

 
 
Acquisition expenses
82,978

 
14,031

 
367

 
 
 
97,376

 
 
Operational expenses
131,251

 
36,732

 
1,683

 
 
 
169,666

 
 
Underwriting loss
$
(124,845
)
 
$
(47,636
)
 
$
(4,691
)
 
 
 
(177,172
)
 
 
Net investment income
 
 
 
 
118,000

 
 
 
118,000

 
 
Net foreign exchange losses
 
 
 
 
(6,911
)
 
 
 
(6,911
)
 
 
Equity in losses of other ventures
 
 
 
 
(36,533
)
 
 
 
(36,533
)
 
 
Other loss
 
 
 
 
(685
)
 
 
 
(685
)
 
 
Net realized and unrealized gains on investments
 
 
 
 
70,668

 
 
 
70,668

 
 
Net other-than-temporary impairments
 
 
 
 
(552
)
 
 
 
(552
)
 
 
Corporate expenses
 
 
 
 
(18,264
)
 
 
 
(18,264
)
 
 
Interest expense
 
 
 
 
(23,368
)
 
 
 
(23,368
)
 
 
Loss from continuing operations before taxes
 
 
 
 
 
 
 
 
(74,817
)
 
 
Income tax benefit
 
 
 
 
315

 
 
 
315

 
 
Loss from discontinued operations
 
 
 
 
(15,890
)
 
 
 
(15,890
)
 
 
Net loss attributable to noncontrolling interests
 
 
 
 
33,157

 
 
 
33,157

 
 
Dividends on preference shares
 
 
 
 
(35,000
)
 
 
 
(35,000
)
 
 
Net loss attributable to RenaissanceRe common shareholders
 
 
 
 
 
 
 
 
$
(92,235
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net claims and claim expenses incurred – current accident year
$
920,602

 
$
72,781

 
$
(215
)
 
 
 
$
993,168

 
 
Net claims and claim expenses incurred – prior accident years
(136,898
)
 
478

 
4,431

 
 
 
(131,989
)
 
 
Net claims and claim expenses incurred – total
$
783,704

 
$
73,259

 
$
4,216

 
 
 
$
861,179

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net claims and claim expense ratio – current accident year
105.4
 %
 
95.3
%
 
(13.7
)%
 
 
 
104.4
 %
 
 
Net claims and claim expense ratio – prior accident years
(15.6
)%
 
0.6
%
 
281.4
 %
 
 
 
(13.8
)%
 
 
Net claims and claim expense ratio – calendar year
89.8
 %
 
95.9
%
 
267.7
 %
 
 
 
90.6
 %
 
 
Underwriting expense ratio
24.5
 %
 
66.5
%
 
130.1
 %
 
 
 
28.0
 %
 
 
Combined ratio
114.3
 %
 
162.4
%
 
397.8
 %
 
 
 
118.6
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Represents $0.1 million of gross premiums ceded from the Reinsurance segment to the Lloyd's segment.

 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2010
Reinsurance
 
Lloyd's
 
Other
 
Eliminations 
(1)
 
Total
 
 
Gross premiums written
$
1,123,619

 
$
66,209

  
$
2,585

 
$
(27,118
)
 
$
1,165,295

 
 
Net premiums written
$
809,719

 
$
61,189

 
$
(21,943
)
 
 
 
$
848,965

 
 
Net premiums earned
$
838,790

 
$
50,204

 
$
(24,073
)
 
 
 
$
864,921

 
 
Net claims and claim expenses incurred
113,804

 
25,676

 
(10,135
)
 
 
 
129,345

 
 
Acquisition expenses
77,954

 
10,784

 
6,223

 
 
 
94,961

 
 
Operational expenses
129,990

 
24,837

 
11,215

 
 
 
166,042

 
 
Underwriting income (loss)
$
517,042

 
$
(11,093
)
 
$
(31,376
)
 
 
 
474,573

 
 
Net investment income
 
 
 
 
203,955

 
 
 
203,955

 
 
Net foreign exchange losses
 
 
 
 
(17,126
)
 
 
 
(17,126
)
 
 
Equity in losses of other ventures
 
 
 
 
(11,814
)
 
 
 
(11,814
)
 
 
Other income
 
 
 
 
41,120

 
 
 
41,120

 
 
Net realized and unrealized gains on investments
 
 
 
 
144,444

 
 
 
144,444

 
 
Net other-than-temporary impairments
 
 
 
 
(829
)
 
 
 
(829
)
 
 
Corporate expenses
 
 
 
 
(20,136
)
 
 
 
(20,136
)
 
 
Interest expense
 
 
 
 
(21,829
)
 
 
 
(21,829
)
 
 
Income from continuing operations before taxes
 
 
 
 
 
 
 
 
792,358

 
 
Income tax benefit
 
 
 
 
6,124

 
 
 
6,124

 
 
Income from discontinued operations
 
 
 
 
62,670

 
 
 
62,670

 
 
Income attributable to redeemable noncontrolling interest – DaVinciRe
 
 
 
 
(116,421
)
 
 
 
(116,421
)
 
 
Dividends on preference shares
 
 
 
 
(42,118
)
 
 
 
(42,118
)
 
 
Net income available to RenaissanceRe common shareholders
 
 
 
 
 
 
 
 
$
702,613

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net claims and claim expenses incurred – current accident year
$
399,823

 
$
25,873

 
$
5,780

 
 
 
$
431,476

 
 
Net claims and claim expenses incurred – prior accident years
(286,019
)
 
(197
)
 
(15,915
)
 
 
 
(302,131
)
 
 
Net claims and claim expenses incurred – total
$
113,804

 
$
25,676

 
$
(10,135
)
 
 
 
$
129,345

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net claims and claim expense ratio – current accident year
47.7
 %
 
51.5
 %
 
(24.0
)%
 
 
 
49.9
 %
 
 
Net claims and claim expense ratio – prior accident years
(34.1
)%
 
(0.4
)%
 
66.1
 %
 
 
 
(34.9
)%
 
 
Net claims and claim expense ratio – calendar year
13.6
 %
 
51.1
 %
 
42.1
 %
 
 
 
15.0
 %
 
 
Underwriting expense ratio
24.8
 %
 
71.0
 %
 
(72.4
)%
 
 
 
30.1
 %
 
 
Combined ratio
38.4
 %
 
122.1
 %
 
(30.3
)%
 
 
 
45.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Represents $9.5 million, $17.4 million and $0.2 million of gross premiums ceded from the Other category to the Reinsurance segment, from the Other category to the Lloyd's segment and from the Reinsurance segment to the Lloyd's segment, respectively.

The following is a summary of the Company's gross premiums written allocated to the territory of coverage exposure:
 
 
 
 
 
 
 
 
 
Year ended December 31,
2012
 
2011
 
2010
 
 
Catastrophe
 
 
 
 
 
 
 
U.S. and Caribbean
$
857,740

 
$
786,721

 
$
720,250

 
 
Worldwide (excluding U.S.) (1)
139,265

 
164,112

 
113,270

 
 
Worldwide
81,595

 
124,797

 
65,500

 
 
Japan
43,238

 
49,021

 
26,188

 
 
Europe
37,113

 
31,888

 
59,480

 
 
Australia and New Zealand
18,578

 
16,818

 
6,269

 
 
Other
4,678

 
3,939

 
3,276

 
 
Total catastrophe
1,182,207

 
1,177,296

 
994,233

 
 
Specialty
 
 
 
 
 
 
 
Worldwide
96,081

 
91,032

 
59,636

 
 
U.S. and Caribbean
69,070

 
49,832

 
57,461

 
 
Australia and New Zealand
28,307

 
792

 
8,934

 
 
Europe
16,429

 
3,595

 
2,786

 
 
Other

 
640

 
569

 
 
Total specialty
209,887

 
145,891

 
129,386

 
 
Total Reinsurance
1,392,094

 
1,323,187

 
1,123,619

 
 
Lloyd's
 
 
 
 
 
 
 
Worldwide
75,132

 
47,605

 
16,207

 
 
U.S. and Caribbean
57,332

 
48,435

 
43,178

 
 
Europe
14,456

 
8,044

 
3,174

 
 
Worldwide (excluding U.S.) (1)
6,064

 
238

 
1,049

 
 
Australia and New Zealand
2,152

 
2,060

 
91

 
 
Other
4,851

 
5,202

 
2,510

 
 
Total Lloyd's
159,987

 
111,584

 
66,209

 
 
Other category (2)

 
282

 
2,585

 
 
Eliminations (3)
(490
)
 
(77
)
 
(27,118
)
 
 
Total gross premiums written
$
1,551,591

 
$
1,434,976

 
$
1,165,295

 
 
 
 
 
 
 
 
 
(1)
The category "Worldwide (excluding U.S.)" consists of contracts that cover more than one geographic region (other than the U.S.). The exposure in this category for gross premiums written to date is predominantly from Europe and Japan.
(2)
The Other category consists of contracts that are primarily exposed to U.S. risks.
(3)
Represents $0.5 million of gross premiums ceded from the Reinsurance segment to the Lloyd's segment for the year ended December 31, 2012 (2011 - $0.1 million of gross premiums ceded from the Reinsurance segment to the Lloyd's segment, 2010 - $9.5 million, $17.4 million and $0.2 million of gross premiums ceded from the Other category to the Reinsurance segment, from the Other category to the Lloyd's segment and from the Reinsurance segment to the Lloyd's segment).