Bermuda | 001-14428 | 98-014-1974 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Renaissance House 12 Crow Lane, Pembroke Bermuda | HM 19 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits. |
(c) | Exhibits. |
Exhibit # | Description | |
99.1* | Copy of the Company’s press release, issued November 4, 2015 | |
99.2* | Copy of the Company’s Financial Supplement |
* | Exhibits 99.1 and 99.2 are being furnished to the SEC pursuant to Item 2.02 and are not being filed with the SEC. Therefore, these exhibits are not incorporated by reference in any of the registrant’s other SEC filings. |
RENAISSANCERE HOLDINGS LTD. | ||||
Date: | By: | /s/ Jeffrey D. Kelly | ||
November 4, 2015 | Jeffrey D. Kelly | |||
Executive Vice President, Chief Financial Officer and Chief Operating Officer |
Exhibit # | Description | |
99.1* | Copy of the Company’s press release, issued November 4, 2015 | |
99.2* | Copy of the Company’s Financial Supplement |
* | Exhibits 99.1 and 99.2 are being furnished to the SEC pursuant to Item 2.02 and are not being filed with the SEC. Therefore, these exhibits are not incorporated by reference in any of the registrant’s other SEC filings. |
• | Gross premiums written of $369.6 million increased $168.7 million, or 83.9%, in the third quarter of 2015, compared to the third quarter of 2014, with the Company’s Specialty Reinsurance, Catastrophe Reinsurance and Lloyd’s segments experiencing increases of $145.5 million, or 211.2%, $13.4 million, or 19.7%, and $9.7 million, or 15.2%, respectively, in the third quarter of 2015. |
• | The Company generated underwriting income of $129.7 million and a combined ratio of 64.2% in the third quarter of 2015, compared to $104.8 million and 59.5%, respectively, in the third quarter of 2014. Favorable development on prior accident years claims and claim expenses totaled $70.4 million in the third quarter of 2015, compared to $25.3 million in the third quarter of 2014. Underwriting income in the third quarter of 2015 was impacted by $28.1 million of underwriting losses associated with the explosion in Tianjin, China (the “Tianjin Explosion”), which resulted in $26.0 million of net negative impact(1) to the Company. |
• | The Company’s total investment result, which includes the sum of net investment income and net realized and unrealized (losses) gains on investments, was negative $13.0 million in the third quarter of 2015, compared to negative $6.5 million in the third quarter of 2014. The total investment result during the third quarter of 2015 was primarily driven by net realized and unrealized losses in our portfolio of equity investments trading and other investments as a result of the broad downturn in the equity markets during the quarter and net realized and unrealized losses on investments-related derivatives due to the decreasing interest rate environment. Offsetting these items was an increase in net realized and unrealized gains, and net investment income, in the Company’s portfolio of fixed maturity investments, driven primarily by the decreasing interest rate environment at the long end of the yield curve in that portfolio, and an increase in average invested assets, respectively. |
• | During the third quarter of 2015, the Company repurchased an aggregate of 1.9 million common shares in open market transactions at an aggregate cost of $203.1 million and at an average share price of $104.49. Subsequent to September 30, 2015 and through the period ended November 3, 2015, the Company repurchased 286 thousand common shares in open market transactions at an aggregate cost of $30.6 million and at an average share price of $107.11. |
• | During the three and nine months ended September 30, 2015, the Company recorded $3.4 million and $51.9 million, respectively, of corporate expenses associated with the acquisition and integration of Platinum. |
(1) | Net negative impact includes the sum of estimates of net claims and claim expenses incurred, earned reinstatement premiums assumed and ceded, profit commissions and redeemable noncontrolling interest. The Company’s estimates are based on a review of its potential exposures, preliminary discussions with certain counterparties and modeling techniques. Given the magnitude and recent occurrence of this event, delays in receiving claims data, the contingent nature of business interruption and other exposures, potential uncertainties relating to reinsurance recoveries and other uncertainties inherent in loss estimation, meaningful uncertainty remains regarding losses from this event. Accordingly, the Company’s actual net negative impact from this event will vary from these preliminary estimates, perhaps materially so. Changes in these estimates will be recorded in the period in which they occur. |
INVESTOR CONTACT: | MEDIA CONTACT: |
Rohan Pai | Kekst and Company |
Director - Corporate Finance | Peter Hill or Dawn Dover |
RenaissanceRe Holdings Ltd. | (212) 521-4800 |
(441) 295-4513 |
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, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||||||
Revenues | |||||||||||||||
Gross premiums written | $ | 369,642 | $ | 200,992 | $ | 1,675,217 | $ | 1,417,792 | |||||||
Net premiums written | $ | 266,820 | $ | 159,713 | $ | 1,179,532 | $ | 956,467 | |||||||
Decrease (increase) in unearned premiums | 95,568 | 99,266 | (140,556 | ) | (150,538 | ) | |||||||||
Net premiums earned | 362,388 | 258,979 | 1,038,976 | 805,929 | |||||||||||
Net investment income | 28,338 | 24,941 | 106,649 | 98,430 | |||||||||||
Net foreign exchange gains (losses) | 616 | 5,036 | (4,254 | ) | 6,367 | ||||||||||
Equity in earnings of other ventures | 5,730 | 9,806 | 17,185 | 21,237 | |||||||||||
Other income (loss) | 2,306 | (1,169 | ) | 5,272 | (1,642 | ) | |||||||||
Net realized and unrealized (losses) gains on investments | (41,138 | ) | (31,097 | ) | (26,101 | ) | 10,958 | ||||||||
Total revenues | 358,240 | 266,496 | 1,137,727 | 941,279 | |||||||||||
Expenses | |||||||||||||||
Net claims and claim expenses incurred | 100,028 | 69,647 | 346,225 | 209,950 | |||||||||||
Acquisition expenses | 78,126 | 37,550 | 183,193 | 104,727 | |||||||||||
Operational expenses | 54,518 | 46,972 | 154,812 | 135,437 | |||||||||||
Corporate expenses | 7,502 | 3,905 | 66,132 | 12,404 | |||||||||||
Interest expense | 10,362 | 4,290 | 25,311 | 12,875 | |||||||||||
Total expenses | 250,536 | 162,364 | 775,673 | 475,393 | |||||||||||
Income before taxes | 107,704 | 104,132 | 362,054 | 465,886 | |||||||||||
Income tax benefit (expense) | 4,573 | (245 | ) | 54,319 | (207 | ) | |||||||||
Net income | 112,277 | 103,887 | 416,373 | 465,679 | |||||||||||
Net income attributable to noncontrolling interests | (31,153 | ) | (30,477 | ) | (82,982 | ) | (109,323 | ) | |||||||
Net income available to RenaissanceRe | 81,124 | 73,410 | 333,391 | 356,356 | |||||||||||
Dividends on preference shares | (5,595 | ) | (5,595 | ) | (16,786 | ) | (16,786 | ) | |||||||
Net income available to RenaissanceRe common shareholders | $ | 75,529 | $ | 67,815 | $ | 316,605 | $ | 339,570 | |||||||
Net income available to RenaissanceRe common shareholders per common share - basic | $ | 1.68 | $ | 1.72 | $ | 7.25 | $ | 8.38 | |||||||
Net income available to RenaissanceRe common shareholders per common share - diluted | $ | 1.66 | $ | 1.70 | $ | 7.19 | $ | 8.26 | |||||||
Average shares outstanding - basic | 44,564 | 38,975 | 43,166 | 39,983 | |||||||||||
Average shares outstanding - diluted | 44,913 | 39,433 | 43,531 | 40,578 | |||||||||||
Net claims and claim expense ratio | 27.6 | % | 26.9 | % | 33.3 | % | 26.1 | % | |||||||
Underwriting expense ratio | 36.6 | % | 32.6 | % | 32.6 | % | 29.8 | % | |||||||
Combined ratio | 64.2 | % | 59.5 | % | 65.9 | % | 55.9 | % | |||||||
Operating income available to RenaissanceRe common shareholders per common share - diluted (1) | $ | 2.58 | $ | 2.49 | $ | 7.79 | $ | 7.99 | |||||||
Operating return on average common equity - annualized (1) | 10.7 | % | 11.7 | % | 11.0 | % | 12.9 | % |
(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, 2015 | December 31, 2014 | ||||||
Assets | (Unaudited) | (Audited) | |||||
Fixed maturity investments trading, at fair value | $ | 6,905,302 | $ | 4,756,685 | |||
Fixed maturity investments available for sale, at fair value | 19,905 | 26,885 | |||||
Total fixed maturity investments, at fair value | 6,925,207 | 4,783,570 | |||||
Short term investments, at fair value | 998,906 | 1,013,222 | |||||
Equity investments trading, at fair value | 462,198 | 322,098 | |||||
Other investments, at fair value | 483,958 | 504,147 | |||||
Investments in other ventures, under equity method | 129,495 | 120,713 | |||||
Total investments | 8,999,764 | 6,743,750 | |||||
Cash and cash equivalents | 524,546 | 525,584 | |||||
Premiums receivable | 864,198 | 440,007 | |||||
Prepaid reinsurance premiums | 258,445 | 94,810 | |||||
Reinsurance recoverable | 141,416 | 66,694 | |||||
Accrued investment income | 40,855 | 26,509 | |||||
Deferred acquisition costs | 213,599 | 110,059 | |||||
Receivable for investments sold | 321,756 | 52,390 | |||||
Other assets | 271,929 | 135,845 | |||||
Goodwill and other intangibles | 270,213 | 7,902 | |||||
Total assets | $ | 11,906,721 | $ | 8,203,550 | |||
Liabilities, Noncontrolling Interests and Shareholders’ Equity | |||||||
Liabilities | |||||||
Reserve for claims and claim expenses | $ | 2,796,062 | $ | 1,412,510 | |||
Unearned premiums | 1,042,012 | 512,386 | |||||
Debt | 969,221 | 249,522 | |||||
Reinsurance balances payable | 533,174 | 454,580 | |||||
Payable for investments purchased | 602,576 | 203,021 | |||||
Other liabilities | 244,005 | 374,108 | |||||
Total liabilities | 6,187,050 | 3,206,127 | |||||
Redeemable noncontrolling interest | 1,022,028 | 1,131,708 | |||||
Shareholders’ Equity | |||||||
Preference shares | 400,000 | 400,000 | |||||
Common shares | 44,121 | 38,442 | |||||
Additional paid-in capital | 551,683 | — | |||||
Accumulated other comprehensive income | 2,260 | 3,416 | |||||
Retained earnings | 3,699,579 | 3,423,857 | |||||
Total shareholders’ equity attributable to RenaissanceRe | 4,697,643 | 3,865,715 | |||||
Total liabilities, noncontrolling interests and shareholders’ equity | $ | 11,906,721 | $ | 8,203,550 | |||
Book value per common share | $ | 97.41 | $ | 90.15 |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Supplemental Financial Data - Segment Information | |||||||||||||||||||
(in thousands of United States Dollars, except percentages) | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Three months ended September 30, 2015 | |||||||||||||||||||
Catastrophe Reinsurance | Specialty Reinsurance | Lloyd’s | Other | Total | |||||||||||||||
Gross premiums written | $ | 81,692 | $ | 214,372 | $ | 73,578 | $ | — | $ | 369,642 | |||||||||
Net premiums written | $ | 55,182 | $ | 155,987 | $ | 55,651 | $ | — | $ | 266,820 | |||||||||
Net premiums earned | $ | 159,641 | $ | 146,213 | $ | 56,534 | $ | — | $ | 362,388 | |||||||||
Net claims and claim expenses incurred | 22,319 | 41,005 | 36,425 | 279 | 100,028 | ||||||||||||||
Acquisition expenses | 14,048 | 50,432 | 13,654 | (8 | ) | 78,126 | |||||||||||||
Operational expenses | 23,513 | 17,542 | 13,427 | 36 | 54,518 | ||||||||||||||
Underwriting income (loss) | $ | 99,761 | $ | 37,234 | $ | (6,972 | ) | $ | (307 | ) | 129,716 | ||||||||
Net investment income | 28,338 | 28,338 | |||||||||||||||||
Net foreign exchange gains | 616 | 616 | |||||||||||||||||
Equity in earnings of other ventures | 5,730 | 5,730 | |||||||||||||||||
Other income | 2,306 | 2,306 | |||||||||||||||||
Net realized and unrealized losses on investments | (41,138 | ) | (41,138 | ) | |||||||||||||||
Corporate expenses | (7,502 | ) | (7,502 | ) | |||||||||||||||
Interest expense | (10,362 | ) | (10,362 | ) | |||||||||||||||
Income before taxes and noncontrolling interests | 107,704 | ||||||||||||||||||
Income tax expense | 4,573 | 4,573 | |||||||||||||||||
Net income attributable to noncontrolling interests | (31,153 | ) | (31,153 | ) | |||||||||||||||
Dividends on preference shares | (5,595 | ) | (5,595 | ) | |||||||||||||||
Net income available to RenaissanceRe common shareholders | $ | 75,529 | |||||||||||||||||
Net claims and claim expenses incurred – current accident year | $ | 36,244 | $ | 96,737 | $ | 37,397 | $ | — | $ | 170,378 | |||||||||
Net claims and claim expenses incurred – prior accident years | (13,925 | ) | (55,732 | ) | (972 | ) | 279 | (70,350 | ) | ||||||||||
Net claims and claim expenses incurred – total | $ | 22,319 | $ | 41,005 | $ | 36,425 | $ | 279 | $ | 100,028 | |||||||||
Net claims and claim expense ratio – current accident year | 22.7 | % | 66.2 | % | 66.1 | % | 47.0 | % | |||||||||||
Net claims and claim expense ratio – prior accident years | (8.7 | )% | (38.2 | )% | (1.7 | )% | (19.4 | )% | |||||||||||
Net claims and claim expense ratio – calendar year | 14.0 | % | 28.0 | % | 64.4 | % | 27.6 | % | |||||||||||
Underwriting expense ratio | 23.5 | % | 46.5 | % | 47.9 | % | 36.6 | % | |||||||||||
Combined ratio | 37.5 | % | 74.5 | % | 112.3 | % | 64.2 | % | |||||||||||
Three months ended September 30, 2014 | |||||||||||||||||||
Catastrophe Reinsurance | Specialty Reinsurance | Lloyd’s | Other | Total | |||||||||||||||
Gross premiums written | $ | 68,252 | $ | 68,883 | $ | 63,857 | $ | — | $ | 200,992 | |||||||||
Net premiums written | $ | 41,807 | $ | 61,879 | $ | 56,027 | $ | — | $ | 159,713 | |||||||||
Net premiums earned | $ | 136,719 | $ | 63,473 | $ | 58,788 | $ | (1 | ) | $ | 258,979 | ||||||||
Net claims and claim expenses incurred | (666 | ) | 31,759 | 39,027 | (473 | ) | 69,647 | ||||||||||||
Acquisition expenses | 9,131 | 15,806 | 12,614 | (1 | ) | 37,550 | |||||||||||||
Operational expenses | 24,154 | 10,234 | 12,475 | 109 | 46,972 | ||||||||||||||
Underwriting income (loss) | $ | 104,100 | $ | 5,674 | $ | (5,328 | ) | $ | 364 | 104,810 | |||||||||
Net investment income | 24,941 | 24,941 | |||||||||||||||||
Net foreign exchange gains | 5,036 | 5,036 | |||||||||||||||||
Equity in earnings of other ventures | 9,806 | 9,806 | |||||||||||||||||
Other loss | (1,169 | ) | (1,169 | ) | |||||||||||||||
Net realized and unrealized losses on investments | (31,097 | ) | (31,097 | ) | |||||||||||||||
Corporate expenses | (3,905 | ) | (3,905 | ) | |||||||||||||||
Interest expense | (4,290 | ) | (4,290 | ) | |||||||||||||||
Income before taxes and noncontrolling interests | 104,132 | ||||||||||||||||||
Income tax expense | (245 | ) | (245 | ) | |||||||||||||||
Net income attributable to noncontrolling interests | (30,477 | ) | (30,477 | ) | |||||||||||||||
Dividends on preference shares | (5,595 | ) | (5,595 | ) | |||||||||||||||
Net income available to RenaissanceRe common shareholders | $ | 67,815 | |||||||||||||||||
Net claims and claim expenses incurred – current accident year | $ | 9,661 | $ | 46,444 | $ | 38,882 | $ | — | $ | 94,987 | |||||||||
Net claims and claim expenses incurred – prior accident years | (10,327 | ) | (14,685 | ) | 145 | (473 | ) | (25,340 | ) | ||||||||||
Net claims and claim expenses incurred – total | $ | (666 | ) | $ | 31,759 | $ | 39,027 | $ | (473 | ) | $ | 69,647 | |||||||
Net claims and claim expense ratio – current accident year | 7.1 | % | 73.2 | % | 66.1 | % | 36.7 | % | |||||||||||
Net claims and claim expense ratio – prior accident years | (7.6 | )% | (23.2 | )% | 0.3 | % | (9.8 | )% | |||||||||||
Net claims and claim expense ratio – calendar year | (0.5 | )% | 50.0 | % | 66.4 | % | 26.9 | % | |||||||||||
Underwriting expense ratio | 24.4 | % | 41.1 | % | 42.7 | % | 32.6 | % | |||||||||||
Combined ratio | 23.9 | % | 91.1 | % | 109.1 | % | 59.5 | % |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Supplemental Financial Data - Segment Information | |||||||||||||||||||
(in thousands of United States Dollars, except percentages) | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Nine months ended September 30, 2015 | |||||||||||||||||||
Catastrophe Reinsurance | Specialty Reinsurance | Lloyd’s | Other | Total | |||||||||||||||
Gross premiums written (1) | $ | 856,305 | $ | 498,676 | $ | 320,326 | $ | (90 | ) | $ | 1,675,217 | ||||||||
Net premiums written | $ | 548,312 | $ | 399,769 | $ | 231,540 | $ | (89 | ) | $ | 1,179,532 | ||||||||
Net premiums earned | $ | 466,113 | $ | 396,673 | $ | 176,279 | $ | (89 | ) | $ | 1,038,976 | ||||||||
Net claims and claim expenses incurred | 85,289 | 166,655 | 93,951 | 330 | 346,225 | ||||||||||||||
Acquisition expenses | 41,016 | 99,372 | 42,557 | 248 | 183,193 | ||||||||||||||
Operational expenses | 65,966 | 49,579 | 39,086 | 181 | 154,812 | ||||||||||||||
Underwriting income (loss) | $ | 273,842 | $ | 81,067 | $ | 685 | $ | (848 | ) | 354,746 | |||||||||
Net investment income | 106,649 | 106,649 | |||||||||||||||||
Net foreign exchange losses | (4,254 | ) | (4,254 | ) | |||||||||||||||
Equity in earnings of other ventures | 17,185 | 17,185 | |||||||||||||||||
Other income | 5,272 | 5,272 | |||||||||||||||||
Net realized and unrealized losses on investments | (26,101 | ) | (26,101 | ) | |||||||||||||||
Corporate expenses | (66,132 | ) | (66,132 | ) | |||||||||||||||
Interest expense | (25,311 | ) | (25,311 | ) | |||||||||||||||
Income before taxes and noncontrolling interests | 362,054 | ||||||||||||||||||
Income tax benefit | 54,319 | 54,319 | |||||||||||||||||
Net income attributable to noncontrolling interests | (82,982 | ) | (82,982 | ) | |||||||||||||||
Dividends on preference shares | (16,786 | ) | (16,786 | ) | |||||||||||||||
Net income available to RenaissanceRe common shareholders | $ | 316,605 | |||||||||||||||||
Net claims and claim expenses incurred – current accident year | $ | 127,702 | $ | 250,316 | $ | 93,778 | $ | — | $ | 471,796 | |||||||||
Net claims and claim expenses incurred – prior accident years | (42,413 | ) | (83,661 | ) | 173 | 330 | (125,571 | ) | |||||||||||
Net claims and claim expenses incurred – total | $ | 85,289 | $ | 166,655 | $ | 93,951 | $ | 330 | $ | 346,225 | |||||||||
Net claims and claim expense ratio – current accident year | 27.4 | % | 63.1 | % | 53.2 | % | 45.4 | % | |||||||||||
Net claims and claim expense ratio – prior accident years | (9.1 | )% | (21.1 | )% | 0.1 | % | (12.1 | )% | |||||||||||
Net claims and claim expense ratio – calendar year | 18.3 | % | 42.0 | % | 53.3 | % | 33.3 | % | |||||||||||
Underwriting expense ratio | 22.9 | % | 37.6 | % | 46.3 | % | 32.6 | % | |||||||||||
Combined ratio | 41.2 | % | 79.6 | % | 99.6 | % | 65.9 | % | |||||||||||
Nine months ended September 30, 2014 | |||||||||||||||||||
Catastrophe Reinsurance | Specialty Reinsurance | Lloyd’s | Other | Total | |||||||||||||||
Gross premiums written | $ | 924,046 | $ | 274,727 | $ | 219,019 | $ | — | $ | 1,417,792 | |||||||||
Net premiums written | $ | 534,994 | $ | 233,622 | $ | 187,848 | $ | 3 | $ | 956,467 | |||||||||
Net premiums earned | $ | 460,455 | $ | 186,691 | $ | 158,757 | $ | 26 | $ | 805,929 | |||||||||
Net claims and claim expenses incurred | 42,519 | 77,915 | 90,419 | (903 | ) | 209,950 | |||||||||||||
Acquisition expenses | 34,063 | 44,052 | 33,303 | (6,691 | ) | 104,727 | |||||||||||||
Operational expenses | 66,773 | 30,854 | 37,566 | 244 | 135,437 | ||||||||||||||
Underwriting income (loss) | $ | 317,100 | $ | 33,870 | $ | (2,531 | ) | $ | 7,376 | 355,815 | |||||||||
Net investment income | 98,430 | 98,430 | |||||||||||||||||
Net foreign exchange gains | 6,367 | 6,367 | |||||||||||||||||
Equity in earnings of other ventures | 21,237 | 21,237 | |||||||||||||||||
Other loss | (1,642 | ) | (1,642 | ) | |||||||||||||||
Net realized and unrealized gains on investments | 10,958 | 10,958 | |||||||||||||||||
Corporate expenses | (12,404 | ) | (12,404 | ) | |||||||||||||||
Interest expense | (12,875 | ) | (12,875 | ) | |||||||||||||||
Income before taxes and noncontrolling interests | 465,886 | ||||||||||||||||||
Income tax expense | (207 | ) | (207 | ) | |||||||||||||||
Net income attributable to noncontrolling interests | (109,323 | ) | (109,323 | ) | |||||||||||||||
Dividends on preference shares | (16,786 | ) | (16,786 | ) | |||||||||||||||
Net income available to RenaissanceRe common shareholders | $ | 339,570 | |||||||||||||||||
Net claims and claim expenses incurred – current accident year | $ | 60,663 | $ | 113,809 | $ | 94,594 | $ | — | $ | 269,066 | |||||||||
Net claims and claim expenses incurred – prior accident years | (18,144 | ) | (35,894 | ) | (4,175 | ) | (903 | ) | (59,116 | ) | |||||||||
Net claims and claim expenses incurred – total | $ | 42,519 | $ | 77,915 | $ | 90,419 | $ | (903 | ) | $ | 209,950 | ||||||||
Net claims and claim expense ratio – current accident year | 13.2 | % | 61.0 | % | 59.6 | % | 33.4 | % | |||||||||||
Net claims and claim expense ratio – prior accident years | (4.0 | )% | (19.3 | )% | (2.6 | )% | (7.3 | )% | |||||||||||
Net claims and claim expense ratio – calendar year | 9.2 | % | 41.7 | % | 57.0 | % | 26.1 | % | |||||||||||
Underwriting expense ratio | 21.9 | % | 40.2 | % | 44.6 | % | 29.8 | % | |||||||||||
Combined ratio | 31.1 | % | 81.9 | % | 101.6 | % | 55.9 | % |
RenaissanceRe Holdings Ltd. | |||||||||||||||
Supplemental Financial Data - Gross Premiums Written and Managed Premiums | |||||||||||||||
(in thousands of United States Dollars) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended | Nine months ended | ||||||||||||||
September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||||||
Catastrophe Reinsurance Segment | |||||||||||||||
Renaissance catastrophe premiums | $ | 61,479 | $ | 49,480 | $ | 570,455 | $ | 612,365 | |||||||
DaVinci catastrophe premiums | 20,213 | 18,772 | 285,850 | 311,681 | |||||||||||
Total Catastrophe Reinsurance segment gross premiums written | $ | 81,692 | $ | 68,252 | $ | 856,305 | $ | 924,046 | |||||||
Specialty Reinsurance Segment | |||||||||||||||
Casualty | $ | 116,851 | $ | 40,552 | $ | 263,909 | $ | 92,385 | |||||||
Credit | 66,839 | 16,167 | 115,461 | 128,319 | |||||||||||
Property Other | 10,405 | 6,109 | 38,829 | 14,272 | |||||||||||
Other | 20,277 | 6,055 | 80,477 | 39,751 | |||||||||||
Total Specialty Reinsurance segment gross premiums written | $ | 214,372 | $ | 68,883 | $ | 498,676 | $ | 274,727 | |||||||
Lloyd’s Segment | |||||||||||||||
Casualty | $ | 41,352 | $ | 36,759 | $ | 151,749 | $ | 101,410 | |||||||
Property Other | 18,717 | 20,301 | 66,616 | 46,452 | |||||||||||
Catastrophe | 7,465 | 5,161 | 66,489 | 53,381 | |||||||||||
Credit | 3,377 | 278 | 7,496 | 860 | |||||||||||
Other | 2,667 | 1,358 | 27,976 | 16,916 | |||||||||||
Total Lloyd’s segment gross premiums written | $ | 73,578 | $ | 63,857 | $ | 320,326 | $ | 219,019 | |||||||
Managed Premiums (1) | |||||||||||||||
Total Catastrophe Reinsurance segment gross premiums written | $ | 81,692 | $ | 68,252 | $ | 856,305 | $ | 924,046 | |||||||
Catastrophe premiums written in the Lloyd’s segment | 7,465 | 5,161 | 66,489 | 53,381 | |||||||||||
Catastrophe premiums written on behalf of the Company’s joint venture, Top Layer Re (2) | 1,089 | 2,169 | 36,664 | 39,394 | |||||||||||
Catastrophe premiums written by the Company in its Catastrophe Reinsurance segment and ceded to Top Layer Re | — | — | (6,785 | ) | (7,355 | ) | |||||||||
Total managed catastrophe premiums (1) | $ | 90,246 | $ | 75,582 | $ | 952,673 | $ | 1,009,466 |
(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. | |||||||||||||||
Supplemental Financial Data - Total Investment Result | |||||||||||||||
(in thousands of United States Dollars) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended | Nine months ended | ||||||||||||||
September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||||||
Fixed maturity investments | $ | 37,023 | $ | 24,519 | $ | 96,753 | $ | 74,751 | |||||||
Short term investments | 267 | 251 | 761 | 727 | |||||||||||
Equity investments trading | 1,791 | 736 | 6,308 | 2,311 | |||||||||||
Other investments | |||||||||||||||
Hedge funds and private equity investments | (14,505 | ) | (3,320 | ) | 1,333 | 17,337 | |||||||||
Other | 7,261 | 5,547 | 11,443 | 11,558 | |||||||||||
Cash and cash equivalents | 80 | 116 | 355 | 300 | |||||||||||
31,917 | 27,849 | 116,953 | 106,984 | ||||||||||||
Investment expenses | (3,579 | ) | (2,908 | ) | (10,304 | ) | (8,554 | ) | |||||||
Net investment income | 28,338 | 24,941 | 106,649 | 98,430 | |||||||||||
Gross realized gains | 9,160 | 7,962 | 39,364 | 33,595 | |||||||||||
Gross realized losses | (13,720 | ) | (2,720 | ) | (40,143 | ) | (10,871 | ) | |||||||
Net realized (losses) gains on fixed maturity investments | (4,560 | ) | 5,242 | (779 | ) | 22,724 | |||||||||
Net unrealized gains (losses) on fixed maturity investments trading | 10,208 | (36,600 | ) | (11,924 | ) | 21,200 | |||||||||
Net realized and unrealized losses on investments-related derivatives | (16,612 | ) | (1,868 | ) | (1,004 | ) | (19,651 | ) | |||||||
Net realized (losses) gains on equity investments trading | (114 | ) | 3,523 | 16,199 | 8,578 | ||||||||||
Net unrealized losses on equity investments trading | (30,060 | ) | (1,394 | ) | (28,593 | ) | (21,893 | ) | |||||||
Net realized and unrealized (losses) gains on investments | (41,138 | ) | (31,097 | ) | (26,101 | ) | 10,958 | ||||||||
Change in net unrealized gains on fixed maturity investments available for sale | (243 | ) | (302 | ) | (986 | ) | (563 | ) | |||||||
Total investment result | $ | (13,043 | ) | $ | (6,458 | ) | $ | 79,562 | $ | 108,825 | |||||
Total investment return - annualized | (0.6 | )% | (0.4 | )% | 1.2 | % | 2.1 | % |
Three months ended | Nine months ended | ||||||||||||||
(in thousands of United States Dollars, except percentages) | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | |||||||||||
Net income available to RenaissanceRe common shareholders | $ | 75,529 | $ | 67,815 | $ | 316,605 | $ | 339,570 | |||||||
Adjustment for net realized and unrealized losses (gains) on investments | 41,138 | 31,097 | 26,101 | (10,958 | ) | ||||||||||
Operating income available to RenaissanceRe common shareholders | $ | 116,667 | $ | 98,912 | $ | 342,706 | $ | 328,612 | |||||||
Net income available to RenaissanceRe common shareholders per common share - diluted | $ | 1.66 | $ | 1.70 | $ | 7.19 | $ | 8.26 | |||||||
Adjustment for net realized and unrealized losses (gains) on investments | 0.92 | 0.79 | 0.60 | (0.27 | ) | ||||||||||
Operating income available to RenaissanceRe common shareholders per common share - diluted | $ | 2.58 | $ | 2.49 | $ | 7.79 | $ | 7.99 | |||||||
Return on average common equity - annualized | 6.9 | % | 8.0 | % | 10.2 | % | 13.3 | % | |||||||
Adjustment for net realized and unrealized losses (gains) on investments | 3.8 | % | 3.7 | % | 0.8 | % | (0.4 | )% | |||||||
Operating return on average common equity - annualized | 10.7 | % | 11.7 | % | 11.0 | % | 12.9 | % |
At | |||||||||||||||||||
September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | |||||||||||||||
Book value per common share | $ | 97.41 | $ | 96.43 | $ | 95.21 | $ | 90.15 | $ | 85.78 | |||||||||
Adjustment for goodwill and other intangibles (1) | (6.65 | ) | (6.51 | ) | (6.64 | ) | (0.86 | ) | (0.88 | ) | |||||||||
Tangible book value per common share | 90.76 | 89.92 | 88.57 | 89.29 | 84.90 | ||||||||||||||
Adjustment for accumulated dividends | 15.18 | 14.88 | 14.58 | 14.28 | 13.99 | ||||||||||||||
Tangible book value per common share plus accumulated dividends | $ | 105.94 | $ | 104.80 | $ | 103.15 | $ | 103.57 | $ | 98.89 | |||||||||
Quarterly change in book value per common share | 1.0 | % | 1.3 | % | 5.6 | % | 5.1 | % | 1.2 | % | |||||||||
Quarterly change in tangible book value per common share plus change in accumulated dividends | 1.3 | % | 1.9 | % | (0.5 | )% | 5.5 | % | 1.5 | % | |||||||||
Year to date change in book value per common share | 8.1 | % | 6.8 | % | |||||||||||||||
Year to date change in tangible book value per common share plus change in accumulated dividends | 2.7 | % | 8.0 | % |
(1) | At September 30, 2015, June 30, 2015, March 31, 2015, December 31, 2014 and September 30, 2014, goodwill and other intangibles included $22.9 million, $23.5 million, $24.4 million, $25.3 million and $26.1 million, respectively, of goodwill and other intangibles included in investments in other ventures, under equity method. |
Page(s) | ||||
Basis of Presentation | i | |||
Financial Highlights | 1 | |||
Income Statements | ||||
a. | Summary Consolidated Statements of Operations | 2 - 3 | ||
b. | Consolidated Segment Underwriting Results | 4 - 5 | ||
c. | Gross Premiums Written and Managed Premiums | 6 - 7 | ||
d. | DaVinciRe Holdings Ltd. and Subsidiary Consolidated Statements of Operations | 8 - 9 | ||
Balance Sheets | ||||
a. | Summary Consolidated Balance Sheets | 10 | ||
Investments | ||||
a. | Investment Portfolio - Composition | 11 | ||
b. | Summary of Other Investments | 12 | ||
c. | Total Investment Result | 13 | ||
d. | Investment Portfolio - Effective Yield and Credit Rating | 14 | ||
e. | Investment Portfolio - Change in Portfolio Composition | 15 | ||
g. | Fixed Maturity and Short Term Investments - Corporate Top 10 Issuers by Fair Value | 16 | ||
Loss Reserve Analysis | ||||
a. | Reserves for Claims and Claim Expenses | 17 | ||
b. | Paid to Incurred Analysis | 18 | ||
Other Items | ||||
a. | Earnings per Share | 19 | ||
b. | Equity in Earnings of Other Ventures | 20 | ||
c. | Other Income (Loss) | 20 | ||
d. | Ratings | 21 | ||
Comments on Regulation G | 22 - 23 |
i |
RenaissanceRe Holdings Ltd. | |||||||||||||||
Financial Highlights | |||||||||||||||
Three months ended | Nine months ended | ||||||||||||||
September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||||||
Highlights | |||||||||||||||
Gross premiums written | $ | 369,642 | $ | 200,992 | $ | 1,675,217 | $ | 1,417,792 | |||||||
Net premiums written | $ | 266,820 | $ | 159,713 | $ | 1,179,532 | $ | 956,467 | |||||||
Net premiums earned | $ | 362,388 | $ | 258,979 | $ | 1,038,976 | $ | 805,929 | |||||||
Net claims and claim expenses incurred | 100,028 | 69,647 | 346,225 | 209,950 | |||||||||||
Acquisition expenses | 78,126 | 37,550 | 183,193 | 104,727 | |||||||||||
Operating expenses | 54,518 | 46,972 | 154,812 | 135,437 | |||||||||||
Underwriting income | $ | 129,716 | $ | 104,810 | $ | 354,746 | $ | 355,815 | |||||||
Net investment income | $ | 28,338 | $ | 24,941 | $ | 106,649 | $ | 98,430 | |||||||
Net realized and unrealized (losses) gains on investments | (41,138 | ) | (31,097 | ) | (26,101 | ) | 10,958 | ||||||||
Change in net unrealized gains on fixed maturity investments available for sale | (243 | ) | (302 | ) | (986 | ) | (563 | ) | |||||||
Total investment result | $ | (13,043 | ) | $ | (6,458 | ) | $ | 79,562 | $ | 108,825 | |||||
Net income available to RenaissanceRe common shareholders | $ | 75,529 | $ | 67,815 | $ | 316,605 | $ | 339,570 | |||||||
Operating income available to RenaissanceRe common shareholders (1) | $ | 116,667 | $ | 98,912 | $ | 342,706 | $ | 328,612 | |||||||
Total assets | $ | 11,906,721 | $ | 8,356,935 | $ | 11,906,721 | $ | 8,356,935 | |||||||
Total shareholders' equity attributable to RenaissanceRe | $ | 4,697,643 | $ | 3,735,860 | $ | 4,697,643 | $ | 3,735,860 | |||||||
Per share data | |||||||||||||||
Net income available to RenaissanceRe common shareholders per common share - diluted | $ | 1.66 | $ | 1.70 | $ | 7.19 | $ | 8.26 | |||||||
Operating income available to RenaissanceRe common shareholders per common share - diluted (1) | $ | 2.58 | $ | 2.49 | $ | 7.79 | $ | 7.99 | |||||||
Dividends per common share | $ | 0.30 | $ | 0.29 | $ | 0.90 | $ | 0.87 | |||||||
Book value per common share | $ | 97.41 | $ | 85.78 | $ | 97.41 | $ | 85.78 | |||||||
Tangible book value per common share (1) | $ | 90.76 | $ | 84.90 | $ | 90.76 | $ | 84.90 | |||||||
Tangible book value per common share plus accumulated dividends (1) | $ | 105.94 | $ | 98.89 | $ | 105.94 | $ | 98.89 | |||||||
Change in tangible book value per common share plus change in accumulated dividends (1) | 1.3 | % | 1.5 | % | 2.7 | % | 8.0 | % | |||||||
Financial ratios | |||||||||||||||
Net claims and claim expense ratio - current accident year | 47.0 | % | 36.7 | % | 45.4 | % | 33.4 | % | |||||||
Net claims and claim expense ratio - prior accident years | (19.4 | )% | (9.8 | )% | (12.1 | )% | (7.3 | )% | |||||||
Net claims and claim expense ratio - calendar year | 27.6 | % | 26.9 | % | 33.3 | % | 26.1 | % | |||||||
Underwriting expense ratio | 36.6 | % | 32.6 | % | 32.6 | % | 29.8 | % | |||||||
Combined ratio | 64.2 | % | 59.5 | % | 65.9 | % | 55.9 | % | |||||||
Operating return on average common equity - annualized (1) | 10.7 | % | 11.7 | % | 11.0 | % | 12.9 | % | |||||||
Total investment return - annualized | (0.6 | )% | (0.4 | )% | 1.2 | % | 2.1 | % |
(1) | See Comments on Regulation G for a reconciliation of non-GAAP financial measures. |
1 | ![]() |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Summary Consolidated Statements of Operations | |||||||||||||||||||
Three months ended | |||||||||||||||||||
September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | |||||||||||||||
Revenues | |||||||||||||||||||
Gross premiums written | $ | 369,642 | $ | 661,997 | $ | 643,578 | $ | 132,780 | $ | 200,992 | |||||||||
Net premiums written | $ | 266,820 | $ | 508,677 | $ | 404,035 | $ | 111,769 | $ | 159,713 | |||||||||
Decrease (increase) in unearned premiums | 95,568 | (128,849 | ) | (107,275 | ) | 144,718 | 99,266 | ||||||||||||
Net premiums earned | 362,388 | 379,828 | 296,760 | 256,487 | 258,979 | ||||||||||||||
Net investment income | 28,338 | 38,604 | 39,707 | 25,886 | 24,941 | ||||||||||||||
Net foreign exchange gains (losses) | 616 | (1,740 | ) | (3,130 | ) | (107 | ) | 5,036 | |||||||||||
Equity in earnings of other ventures | 5,730 | 6,160 | 5,295 | 4,838 | 9,806 | ||||||||||||||
Other income (loss) | 2,306 | 1,427 | 1,539 | 1,219 | (1,169 | ) | |||||||||||||
Net realized and unrealized (losses) gains on investments | (41,138 | ) | (26,712 | ) | 41,749 | 30,475 | (31,097 | ) | |||||||||||
Total revenues | 358,240 | 397,567 | 381,920 | 318,798 | 266,496 | ||||||||||||||
Expenses | |||||||||||||||||||
Net claims and claim expenses incurred | 100,028 | 169,344 | 76,853 | (12,003 | ) | 69,647 | |||||||||||||
Acquisition expenses | 78,126 | 61,666 | 43,401 | 39,749 | 37,550 | ||||||||||||||
Operational expenses | 54,518 | 54,673 | 45,621 | 55,202 | 46,972 | ||||||||||||||
Corporate expenses | 7,502 | 13,032 | 45,598 | 10,583 | 3,905 | ||||||||||||||
Interest expense | 10,362 | 9,698 | 5,251 | 4,289 | 4,290 | ||||||||||||||
Total expenses | 250,536 | 308,413 | 216,724 | 97,820 | 162,364 | ||||||||||||||
Income before taxes | 107,704 | 89,154 | 165,196 | 220,978 | 104,132 | ||||||||||||||
Income tax benefit (expense) | 4,573 | 1,842 | 47,904 | (401 | ) | (245 | ) | ||||||||||||
Net income | 112,277 | 90,996 | 213,100 | 220,577 | 103,887 | ||||||||||||||
Net income attributable to noncontrolling interests | (31,153 | ) | (12,167 | ) | (39,662 | ) | (44,215 | ) | (30,477 | ) | |||||||||
Net income attributable to RenaissanceRe | 81,124 | 78,829 | 173,438 | 176,362 | 73,410 | ||||||||||||||
Dividends on preference shares | (5,595 | ) | (5,596 | ) | (5,595 | ) | (5,595 | ) | (5,595 | ) | |||||||||
Net income available to RenaissanceRe common shareholders | $ | 75,529 | $ | 73,233 | $ | 167,843 | $ | 170,767 | $ | 67,815 | |||||||||
Net income available to RenaissanceRe common shareholders per common share - basic | $ | 1.68 | $ | 1.60 | $ | 4.18 | $ | 4.46 | $ | 1.72 | |||||||||
Net income available to RenaissanceRe common shareholders per common share - diluted | $ | 1.66 | $ | 1.59 | $ | 4.14 | $ | 4.42 | $ | 1.70 | |||||||||
Operating income available to RenaissanceRe common shareholders per common share - diluted (1) | $ | 2.58 | $ | 2.18 | $ | 3.10 | $ | 3.62 | $ | 2.49 | |||||||||
Operating return on average common equity - annualized (1) | 10.7 | % | 9.1 | % | 12.9 | % | 16.5 | % | 11.7 | % |
(1) | See Comments on Regulation G for a reconciliation of non-GAAP financial measures. |
2 | ![]() |
RenaissanceRe Holdings Ltd. | |||||||
Summary Consolidated Statements of Operations | |||||||
Nine months ended | |||||||
September 30, 2015 | September 30, 2014 | ||||||
Revenues | |||||||
Gross premiums written | $ | 1,675,217 | $ | 1,417,792 | |||
Net premiums written | $ | 1,179,532 | $ | 956,467 | |||
Increase in unearned premiums | (140,556 | ) | (150,538 | ) | |||
Net premiums earned | 1,038,976 | 805,929 | |||||
Net investment income | 106,649 | 98,430 | |||||
Net foreign exchange (losses) gains | (4,254 | ) | 6,367 | ||||
Equity in earnings of other ventures | 17,185 | 21,237 | |||||
Other income (loss) | 5,272 | (1,642 | ) | ||||
Net realized and unrealized (losses) gains on investments | (26,101 | ) | 10,958 | ||||
Total revenues | 1,137,727 | 941,279 | |||||
Expenses | |||||||
Net claims and claim expenses incurred | 346,225 | 209,950 | |||||
Acquisition expenses | 183,193 | 104,727 | |||||
Operational expenses | 154,812 | 135,437 | |||||
Corporate expenses | 66,132 | 12,404 | |||||
Interest expense | 25,311 | 12,875 | |||||
Total expenses | 775,673 | 475,393 | |||||
Income before taxes | 362,054 | 465,886 | |||||
Income tax benefit (expense) | 54,319 | (207 | ) | ||||
Net income | 416,373 | 465,679 | |||||
Net income attributable to noncontrolling interests | (82,982 | ) | (109,323 | ) | |||
Net income attributable to RenaissanceRe | 333,391 | 356,356 | |||||
Dividends on preference shares | (16,786 | ) | (16,786 | ) | |||
Net income available to RenaissanceRe common shareholders | $ | 316,605 | $ | 339,570 | |||
Net income available to RenaissanceRe common shareholders per common share - basic | $ | 7.25 | $ | 8.38 | |||
Net income available to RenaissanceRe common shareholders per common share - diluted | $ | 7.19 | $ | 8.26 | |||
Operating income available to RenaissanceRe common shareholders per common share - diluted (1) | $ | 7.79 | $ | 7.99 | |||
Operating return on average common equity - annualized (1) | 11.0 | % | 12.9 | % |
(1) | See Comments on Regulation G for a reconciliation of non-GAAP financial measures. |
3 | ![]() |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Consolidated Segment Underwriting Results | |||||||||||||||||||
Three months ended September 30, 2015 | |||||||||||||||||||
Catastrophe Reinsurance | Specialty Reinsurance | Lloyd's | Other | Total | |||||||||||||||
Gross premiums written | $ | 81,692 | $ | 214,372 | $ | 73,578 | $ | — | $ | 369,642 | |||||||||
Net premiums written | $ | 55,182 | $ | 155,987 | $ | 55,651 | $ | — | $ | 266,820 | |||||||||
Net premiums earned | $ | 159,641 | $ | 146,213 | $ | 56,534 | $ | — | $ | 362,388 | |||||||||
Net claims and claim expenses incurred | 22,319 | 41,005 | 36,425 | 279 | 100,028 | ||||||||||||||
Acquisition expenses | 14,048 | 50,432 | 13,654 | (8 | ) | 78,126 | |||||||||||||
Operational expenses | 23,513 | 17,542 | 13,427 | 36 | 54,518 | ||||||||||||||
Underwriting income (loss) | $ | 99,761 | $ | 37,234 | $ | (6,972 | ) | $ | (307 | ) | $ | 129,716 | |||||||
Net claims and claim expenses incurred - current accident year | $ | 36,244 | $ | 96,737 | $ | 37,397 | $ | — | $ | 170,378 | |||||||||
Net claims and claim expenses incurred - prior accident years | (13,925 | ) | (55,732 | ) | (972 | ) | 279 | (70,350 | ) | ||||||||||
Net claims and claim expenses incurred - total | $ | 22,319 | $ | 41,005 | $ | 36,425 | $ | 279 | $ | 100,028 | |||||||||
Net claims and claim expense ratio - current accident year | 22.7 | % | 66.2 | % | 66.1 | % | 47.0 | % | |||||||||||
Net claims and claim expense ratio - prior accident years | (8.7 | )% | (38.2 | )% | (1.7 | )% | (19.4 | )% | |||||||||||
Net claims and claim expense ratio - calendar year | 14.0 | % | 28.0 | % | 64.4 | % | 27.6 | % | |||||||||||
Underwriting expense ratio | 23.5 | % | 46.5 | % | 47.9 | % | 36.6 | % | |||||||||||
Combined ratio | 37.5 | % | 74.5 | % | 112.3 | % | 64.2 | % | |||||||||||
Three months ended September 30, 2014 | |||||||||||||||||||
Catastrophe Reinsurance | Specialty Reinsurance | Lloyd's | Other | Total | |||||||||||||||
Gross premiums written | $ | 68,252 | $ | 68,883 | $ | 63,857 | $ | — | $ | 200,992 | |||||||||
Net premiums written | $ | 41,807 | $ | 61,879 | $ | 56,027 | $ | — | $ | 159,713 | |||||||||
Net premiums earned | $ | 136,719 | $ | 63,473 | $ | 58,788 | $ | (1 | ) | $ | 258,979 | ||||||||
Net claims and claim expenses incurred | (666 | ) | 31,759 | 39,027 | (473 | ) | 69,647 | ||||||||||||
Acquisition expenses | 9,131 | 15,806 | 12,614 | (1 | ) | 37,550 | |||||||||||||
Operational expenses | 24,154 | 10,234 | 12,475 | 109 | 46,972 | ||||||||||||||
Underwriting income (loss) | $ | 104,100 | $ | 5,674 | $ | (5,328 | ) | $ | 364 | $ | 104,810 | ||||||||
Net claims and claim expenses incurred - current accident year | $ | 9,661 | $ | 46,444 | $ | 38,882 | $ | — | $ | 94,987 | |||||||||
Net claims and claim expenses incurred - prior accident years | (10,327 | ) | (14,685 | ) | 145 | (473 | ) | (25,340 | ) | ||||||||||
Net claims and claim expenses incurred - total | $ | (666 | ) | $ | 31,759 | $ | 39,027 | $ | (473 | ) | $ | 69,647 | |||||||
Net claims and claim expense ratio - current accident year | 7.1 | % | 73.2 | % | 66.1 | % | 36.7 | % | |||||||||||
Net claims and claim expense ratio - prior accident years | (7.6 | )% | (23.2 | )% | 0.3 | % | (9.8 | )% | |||||||||||
Net claims and claim expense ratio - calendar year | (0.5 | )% | 50.0 | % | 66.4 | % | 26.9 | % | |||||||||||
Underwriting expense ratio | 24.4 | % | 41.1 | % | 42.7 | % | 32.6 | % | |||||||||||
Combined ratio | 23.9 | % | 91.1 | % | 109.1 | % | 59.5 | % |
4 | ![]() |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Consolidated Segment Underwriting Results | |||||||||||||||||||
Nine months ended September 30, 2015 | |||||||||||||||||||
Catastrophe Reinsurance | Specialty Reinsurance | Lloyd's | Other | Total | |||||||||||||||
Gross premiums written (1) | $ | 856,305 | $ | 498,676 | $ | 320,326 | $ | (90 | ) | $ | 1,675,217 | ||||||||
Net premiums written | $ | 548,312 | $ | 399,769 | $ | 231,540 | $ | (89 | ) | $ | 1,179,532 | ||||||||
Net premiums earned | $ | 466,113 | $ | 396,673 | $ | 176,279 | $ | (89 | ) | $ | 1,038,976 | ||||||||
Net claims and claim expenses incurred | 85,289 | 166,655 | 93,951 | 330 | 346,225 | ||||||||||||||
Acquisition expenses | 41,016 | 99,372 | 42,557 | 248 | 183,193 | ||||||||||||||
Operational expenses | 65,966 | 49,579 | 39,086 | 181 | 154,812 | ||||||||||||||
Underwriting income (loss) | $ | 273,842 | $ | 81,067 | $ | 685 | $ | (848 | ) | $ | 354,746 | ||||||||
Net claims and claim expenses incurred - current accident year | $ | 127,702 | $ | 250,316 | $ | 93,778 | $ | — | $ | 471,796 | |||||||||
Net claims and claim expenses incurred - prior accident years | (42,413 | ) | (83,661 | ) | 173 | 330 | (125,571 | ) | |||||||||||
Net claims and claim expenses incurred - total | $ | 85,289 | $ | 166,655 | $ | 93,951 | $ | 330 | $ | 346,225 | |||||||||
Net claims and claim expense ratio - current accident year | 27.4 | % | 63.1 | % | 53.2 | % | 45.4 | % | |||||||||||
Net claims and claim expense ratio - prior accident years | (9.1 | )% | (21.1 | )% | 0.1 | % | (12.1 | )% | |||||||||||
Net claims and claim expense ratio - calendar year | 18.3 | % | 42.0 | % | 53.3 | % | 33.3 | % | |||||||||||
Underwriting expense ratio | 22.9 | % | 37.6 | % | 46.3 | % | 32.6 | % | |||||||||||
Combined ratio | 41.2 | % | 79.6 | % | 99.6 | % | 65.9 | % | |||||||||||
Nine months ended September 30, 2014 | |||||||||||||||||||
Catastrophe Reinsurance | Specialty Reinsurance | Lloyd's | Other | Total | |||||||||||||||
Gross premiums written | $ | 924,046 | $ | 274,727 | $ | 219,019 | $ | — | $ | 1,417,792 | |||||||||
Net premiums written | $ | 534,994 | $ | 233,622 | $ | 187,848 | $ | 3 | $ | 956,467 | |||||||||
Net premiums earned | $ | 460,455 | $ | 186,691 | $ | 158,757 | $ | 26 | $ | 805,929 | |||||||||
Net claims and claim expenses incurred | 42,519 | 77,915 | 90,419 | (903 | ) | 209,950 | |||||||||||||
Acquisition expenses | 34,063 | 44,052 | 33,303 | (6,691 | ) | 104,727 | |||||||||||||
Operational expenses | 66,773 | 30,854 | 37,566 | 244 | 135,437 | ||||||||||||||
Underwriting income (loss) | $ | 317,100 | $ | 33,870 | $ | (2,531 | ) | $ | 7,376 | $ | 355,815 | ||||||||
Net claims and claim expenses incurred - current accident year | $ | 60,663 | $ | 113,809 | $ | 94,594 | $ | — | $ | 269,066 | |||||||||
Net claims and claim expenses incurred - prior accident years | (18,144 | ) | (35,894 | ) | (4,175 | ) | (903 | ) | (59,116 | ) | |||||||||
Net claims and claim expenses incurred - total | $ | 42,519 | $ | 77,915 | $ | 90,419 | $ | (903 | ) | $ | 209,950 | ||||||||
Net claims and claim expense ratio - current accident year | 13.2 | % | 61.0 | % | 59.6 | % | 33.4 | % | |||||||||||
Net claims and claim expense ratio - prior accident years | (4.0 | )% | (19.3 | )% | (2.6 | )% | (7.3 | )% | |||||||||||
Net claims and claim expense ratio - calendar year | 9.2 | % | 41.7 | % | 57.0 | % | 26.1 | % | |||||||||||
Underwriting expense ratio | 21.9 | % | 40.2 | % | 44.6 | % | 29.8 | % | |||||||||||
Combined ratio | 31.1 | % | 81.9 | % | 101.6 | % | 55.9 | % |
5 | ![]() |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Gross Premiums Written and Managed Premiums | |||||||||||||||||||
Three months ended | |||||||||||||||||||
September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | |||||||||||||||
Catastrophe Reinsurance Segment | |||||||||||||||||||
Renaissance catastrophe premiums | $ | 61,479 | $ | 243,246 | $ | 265,730 | $ | 10,569 | $ | 49,480 | |||||||||
DaVinci catastrophe premiums | 20,213 | 142,120 | 123,517 | (646 | ) | 18,772 | |||||||||||||
Total Catastrophe Reinsurance segment gross premiums written | $ | 81,692 | $ | 385,366 | $ | 389,247 | $ | 9,923 | $ | 68,252 | |||||||||
Specialty Reinsurance Segment | |||||||||||||||||||
Casualty | $ | 116,851 | $ | 84,953 | $ | 62,105 | $ | 40,150 | $ | 40,552 | |||||||||
Credit | 66,839 | 19,911 | 28,711 | 19,401 | 16,167 | ||||||||||||||
Property Other | 10,405 | 23,215 | 5,209 | 7,652 | 6,109 | ||||||||||||||
Other | 20,277 | 31,934 | 28,266 | 4,708 | 6,055 | ||||||||||||||
Total Specialty Reinsurance segment gross premiums written | $ | 214,372 | $ | 160,013 | $ | 124,291 | $ | 71,911 | $ | 68,883 | |||||||||
Lloyd's Segment | |||||||||||||||||||
Casualty | $ | 41,352 | $ | 48,426 | $ | 61,971 | $ | 30,562 | $ | 36,759 | |||||||||
Property Other | 18,717 | 24,130 | 23,769 | 17,179 | 20,301 | ||||||||||||||
Catastrophe | 7,465 | 33,379 | 25,645 | 1,985 | 5,161 | ||||||||||||||
Credit | 3,377 | 1,534 | 2,585 | (119 | ) | 278 | |||||||||||||
Other | 2,667 | 9,149 | 16,160 | 1,030 | 1,358 | ||||||||||||||
Total Lloyd's segment gross premiums written | $ | 73,578 | $ | 116,618 | $ | 130,130 | $ | 50,637 | $ | 63,857 | |||||||||
Managed Premiums (1) | |||||||||||||||||||
Total Catastrophe Reinsurance segment gross premiums written | $ | 81,692 | $ | 385,366 | $ | 389,247 | $ | 9,923 | $ | 68,252 | |||||||||
Catastrophe premiums written in the Lloyd's segment | 7,465 | 33,379 | 25,645 | 1,985 | 5,161 | ||||||||||||||
Catastrophe premiums written on behalf of our joint venture, Top Layer Re (2) | 1,089 | 21,411 | 14,164 | 3,162 | 2,169 | ||||||||||||||
Catastrophe premiums written by the Company in its Catastrophe Reinsurance segment and ceded to Top Layer Re | — | (835 | ) | (5,950 | ) | — | — | ||||||||||||
Total managed catastrophe premiums (1) | $ | 90,246 | $ | 439,321 | $ | 423,106 | $ | 15,070 | $ | 75,582 |
(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. |
6 | ![]() |
RenaissanceRe Holdings Ltd. | |||||||
Gross Premiums Written and Managed Premiums | |||||||
Nine months ended | |||||||
September 30, 2015 | September 30, 2014 | ||||||
Catastrophe Reinsurance Segment | |||||||
Renaissance catastrophe premiums | $ | 570,455 | $ | 612,365 | |||
DaVinci catastrophe premiums | 285,850 | 311,681 | |||||
Total Catastrophe Reinsurance segment gross premiums written | $ | 856,305 | $ | 924,046 | |||
Specialty Reinsurance Segment | |||||||
Casualty | $ | 263,909 | $ | 92,385 | |||
Credit | 115,461 | 128,319 | |||||
Property Other | 38,829 | 14,272 | |||||
Other | 80,477 | 39,751 | |||||
Total Specialty Reinsurance segment gross premiums written | $ | 498,676 | $ | 274,727 | |||
Lloyd's Segment | |||||||
Casualty | $ | 151,749 | $ | 101,410 | |||
Property Other | 66,616 | 46,452 | |||||
Catastrophe | 66,489 | 53,381 | |||||
Credit | 7,496 | 860 | |||||
Other | 27,976 | 16,916 | |||||
Total Lloyd's segment gross premiums written | $ | 320,326 | $ | 219,019 | |||
Managed Premiums (1) | |||||||
Total Catastrophe Reinsurance segment gross premiums written | $ | 856,305 | $ | 924,046 | |||
Catastrophe premiums written in the Lloyd's segment | 66,489 | 53,381 | |||||
Catastrophe premiums written on behalf of our joint venture, Top Layer Re (2) | 36,664 | 39,394 | |||||
Catastrophe premiums written by the Company in its Catastrophe Reinsurance segment and ceded to Top Layer Re | (6,785 | ) | (7,355 | ) | |||
Total managed catastrophe premiums (1) | $ | 952,673 | $ | 1,009,466 |
(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. |
7 | ![]() |
DaVinciRe Holdings Ltd. and Subsidiary | |||||||||||||||||||
Consolidated Statements of Operations | |||||||||||||||||||
Three months ended | |||||||||||||||||||
September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | |||||||||||||||
Revenues | |||||||||||||||||||
Gross premiums written | $ | 20,326 | $ | 143,456 | $ | 124,211 | $ | (632 | ) | $ | 18,956 | ||||||||
Net premiums written | $ | 14,598 | $ | 132,977 | $ | 97,365 | $ | (803 | ) | $ | 13,541 | ||||||||
Decrease (increase) in unearned premiums | 47,452 | (69,088 | ) | (36,320 | ) | 62,175 | 48,594 | ||||||||||||
Net premiums earned | 62,050 | 63,889 | 61,045 | 61,372 | 62,135 | ||||||||||||||
Net investment income | 7,171 | 6,812 | 6,215 | 7,599 | 7,082 | ||||||||||||||
Net foreign exchange (losses) gains | (233 | ) | (9 | ) | (585 | ) | 831 | 765 | |||||||||||
Net realized and unrealized (losses) gains on investments | (2,044 | ) | (8,630 | ) | 12,038 | (2,076 | ) | (8,918 | ) | ||||||||||
Total revenues | 66,944 | 62,062 | 78,713 | 67,726 | 61,064 | ||||||||||||||
Expenses | |||||||||||||||||||
Net claims and claim expenses incurred | 4,675 | 22,852 | 1,937 | (21,995 | ) | (1,488 | ) | ||||||||||||
Acquisition expenses | 15,683 | 13,703 | 16,540 | 22,839 | 17,385 | ||||||||||||||
Operational and corporate expenses | 7,285 | 7,081 | 7,238 | 7,467 | 7,492 | ||||||||||||||
Interest expense | 1,813 | 1,504 | 939 | 933 | 934 | ||||||||||||||
Total expenses | 29,456 | 45,140 | 26,654 | 9,244 | 24,323 | ||||||||||||||
Income before taxes | 37,488 | 16,922 | 52,059 | 58,482 | 36,741 | ||||||||||||||
Income tax benefit (expense) | 188 | (153 | ) | (36 | ) | (18 | ) | (20 | ) | ||||||||||
Net income | 37,676 | 16,769 | 52,023 | 58,464 | 36,721 | ||||||||||||||
Net income attributable to redeemable noncontrolling interest | — | — | — | — | (75 | ) | |||||||||||||
Net income available to DaVinciRe common shareholders | $ | 37,676 | $ | 16,769 | $ | 52,023 | $ | 58,464 | $ | 36,646 | |||||||||
Net claims and claim expenses incurred - current accident year | $ | 9,649 | $ | 26,832 | $ | 10,109 | $ | 701 | $ | 3,341 | |||||||||
Net claims and claim expenses incurred - prior accident years | (4,974 | ) | (3,980 | ) | (8,172 | ) | (22,696 | ) | (4,829 | ) | |||||||||
Net claims and claim expenses incurred - total | $ | 4,675 | $ | 22,852 | $ | 1,937 | $ | (21,995 | ) | $ | (1,488 | ) | |||||||
Net claims and claim expense ratio - current accident year | 15.6 | % | 42.0 | % | 16.6 | % | 1.1 | % | 5.4 | % | |||||||||
Net claims and claim expense ratio - prior accident years | (8.1 | )% | (6.2 | )% | (13.4 | )% | (36.9 | )% | (7.8 | )% | |||||||||
Net claims and claim expense ratio - calendar year | 7.5 | % | 35.8 | % | 3.2 | % | (35.8 | )% | (2.4 | )% | |||||||||
Underwriting expense ratio | 37.0 | % | 32.5 | % | 38.9 | % | 49.3 | % | 40.0 | % | |||||||||
Combined ratio | 44.5 | % | 68.3 | % | 42.1 | % | 13.5 | % | 37.6 | % |
8 | ![]() |
DaVinciRe Holdings Ltd. and Subsidiary | |||||||
Consolidated Statements of Operations | |||||||
Nine months ended | |||||||
September 30, 2015 | September 30, 2014 | ||||||
Revenues | |||||||
Gross premiums written | $ | 287,993 | $ | 313,714 | |||
Net premiums written | $ | 244,940 | $ | 259,281 | |||
Increase in unearned premiums | (57,956 | ) | (44,914 | ) | |||
Net premiums earned | 186,984 | 214,367 | |||||
Net investment income | 20,198 | 21,011 | |||||
Net foreign exchange (losses) gains | (827 | ) | 2,815 | ||||
Net realized and unrealized gains on investments | 1,364 | 250 | |||||
Total revenues | 207,719 | 238,443 | |||||
Expenses | |||||||
Net claims and claim expenses incurred | 29,464 | 13,950 | |||||
Acquisition expenses | 45,926 | 55,770 | |||||
Operational and corporate expenses | 21,604 | 24,630 | |||||
Interest expense | 4,256 | 2,804 | |||||
Total expenses | 101,250 | 97,154 | |||||
Income before taxes | 106,469 | 141,289 | |||||
Income tax expense | (1 | ) | (22 | ) | |||
Net income | 106,468 | 141,267 | |||||
Net income attributable to redeemable noncontrolling interest | — | (288 | ) | ||||
Net income available to DaVinciRe common shareholders | $ | 106,468 | $ | 140,979 | |||
Net claims and claim expenses incurred - current accident year | $ | 46,590 | $ | 27,817 | |||
Net claims and claim expenses incurred - prior accident years | (17,126 | ) | (13,867 | ) | |||
Net claims and claim expenses incurred - total | $ | 29,464 | $ | 13,950 | |||
Net claims and claim expense ratio - current accident year | 24.9 | % | 13.0 | % | |||
Net claims and claim expense ratio - prior accident years | (9.1 | )% | (6.5 | )% | |||
Net claims and claim expense ratio - calendar year | 15.8 | % | 6.5 | % | |||
Underwriting expense ratio | 36.1 | % | 37.5 | % | |||
Combined ratio | 51.9 | % | 44.0 | % |
9 | ![]() |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Summary Consolidated Balance Sheets | |||||||||||||||||||
September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | |||||||||||||||
Assets | |||||||||||||||||||
Fixed maturity investments trading, at fair value | $ | 6,905,302 | $ | 6,591,434 | $ | 5,982,843 | $ | 4,756,685 | $ | 4,750,766 | |||||||||
Fixed maturity investments available for sale, at fair value | 19,905 | 21,754 | 25,086 | 26,885 | 28,069 | ||||||||||||||
Total fixed maturity investments, at fair value | 6,925,207 | 6,613,188 | 6,007,929 | 4,783,570 | 4,778,835 | ||||||||||||||
Short term investments, at fair value | 998,906 | 1,543,191 | 1,775,819 | 1,013,222 | 1,031,143 | ||||||||||||||
Equity investments trading, at fair value | 462,198 | 493,056 | 261,656 | 322,098 | 301,714 | ||||||||||||||
Other investments, at fair value | 483,958 | 504,693 | 514,906 | 504,147 | 501,487 | ||||||||||||||
Investments in other ventures, under equity method | 129,495 | 126,139 | 123,743 | 120,713 | 118,245 | ||||||||||||||
Total investments | 8,999,764 | 9,280,267 | 8,684,053 | 6,743,750 | 6,731,424 | ||||||||||||||
Cash and cash equivalents | 524,546 | 398,090 | 557,618 | 525,584 | 300,547 | ||||||||||||||
Premiums receivable | 864,198 | 1,068,819 | 866,418 | 440,007 | 630,718 | ||||||||||||||
Prepaid reinsurance premiums | 258,445 | 276,231 | 233,062 | 94,810 | 195,978 | ||||||||||||||
Reinsurance recoverable | 141,416 | 136,464 | 82,696 | 66,694 | 79,043 | ||||||||||||||
Accrued investment income | 40,855 | 37,480 | 40,583 | 26,509 | 25,514 | ||||||||||||||
Deferred acquisition costs | 213,599 | 173,408 | 146,053 | 110,059 | 130,108 | ||||||||||||||
Receivable for investments sold | 321,756 | 149,063 | 121,530 | 52,390 | 147,206 | ||||||||||||||
Other assets | 271,929 | 257,621 | 273,851 | 135,845 | 108,443 | ||||||||||||||
Goodwill and other intangibles | 270,213 | 275,743 | 281,334 | 7,902 | 7,954 | ||||||||||||||
Total assets | $ | 11,906,721 | $ | 12,053,186 | $ | 11,287,198 | $ | 8,203,550 | $ | 8,356,935 | |||||||||
Liabilities, Noncontrolling Interests and Shareholders' Equity | |||||||||||||||||||
Liabilities | |||||||||||||||||||
Reserve for claims and claim expenses | $ | 2,796,062 | $ | 2,847,648 | $ | 2,781,568 | $ | 1,412,510 | $ | 1,532,780 | |||||||||
Unearned premiums | 1,042,012 | 1,155,596 | 983,137 | 512,386 | 758,272 | ||||||||||||||
Debt | 969,221 | 972,362 | 826,774 | 249,522 | 249,499 | ||||||||||||||
Reinsurance balances payable | 533,174 | 512,019 | 495,045 | 454,580 | 501,155 | ||||||||||||||
Payable for investments purchased | 602,576 | 511,251 | 217,986 | 203,021 | 284,295 | ||||||||||||||
Other liabilities | 244,005 | 228,554 | 231,968 | 374,108 | 203,908 | ||||||||||||||
Total liabilities | 6,187,050 | 6,227,430 | 5,536,478 | 3,206,127 | 3,529,909 | ||||||||||||||
Redeemable noncontrolling interest | 1,022,028 | 988,812 | 968,431 | 1,131,708 | 1,091,166 | ||||||||||||||
Shareholders' Equity | |||||||||||||||||||
Preference shares | 400,000 | 400,000 | 400,000 | 400,000 | 400,000 | ||||||||||||||
Common shares | 44,121 | 46,013 | 46,026 | 38,442 | 38,888 | ||||||||||||||
Additional paid-in capital | 551,683 | 750,484 | 754,941 | — | — | ||||||||||||||
Accumulated other comprehensive income | 2,260 | 2,993 | 3,342 | 3,416 | 3,829 | ||||||||||||||
Retained earnings | 3,699,579 | 3,637,454 | 3,577,980 | 3,423,857 | 3,293,143 | ||||||||||||||
Total shareholders' equity attributable to RenaissanceRe | 4,697,643 | 4,836,944 | 4,782,289 | 3,865,715 | 3,735,860 | ||||||||||||||
Total liabilities, noncontrolling interests and shareholders' equity | $ | 11,906,721 | $ | 12,053,186 | $ | 11,287,198 | $ | 8,203,550 | $ | 8,356,935 | |||||||||
Book value per common share | $ | 97.41 | $ | 96.43 | $ | 95.21 | $ | 90.15 | $ | 85.78 |
10 | ![]() |
RenaissanceRe Holdings Ltd. | ||||||||||||||||||||||||||||||||||
Investment Portfolio - Composition | ||||||||||||||||||||||||||||||||||
TYPE OF INVESTMENT | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | |||||||||||||||||||||||||||||
U.S. treasuries | $ | 1,984,841 | 22.1 | % | $ | 2,020,746 | 21.8 | % | $ | 1,535,746 | 17.7 | % | $ | 1,671,471 | 24.8 | % | $ | 1,636,326 | 24.3 | % | ||||||||||||||
Agencies | 131,524 | 1.5 | % | 144,947 | 1.6 | % | 152,272 | 1.8 | % | 96,208 | 1.4 | % | 120,025 | 1.8 | % | |||||||||||||||||||
Municipal | 675,349 | 7.5 | % | 806,724 | 8.7 | % | 1,220,206 | 14.1 | % | — | — | % | — | — | % | |||||||||||||||||||
Non-U.S. government (Sovereign debt) | 393,320 | 4.4 | % | 370,613 | 4.0 | % | 329,626 | 3.8 | % | 280,651 | 4.2 | % | 282,326 | 4.2 | % | |||||||||||||||||||
Non-U.S. government-backed corporate | 172,548 | 1.9 | % | 172,381 | 1.9 | % | 151,446 | 1.7 | % | 146,467 | 2.2 | % | 141,159 | 2.1 | % | |||||||||||||||||||
Corporate | 2,141,859 | 23.8 | % | 1,865,369 | 20.1 | % | 1,603,024 | 18.5 | % | 1,610,442 | 23.9 | % | 1,572,168 | 23.4 | % | |||||||||||||||||||
Agency mortgage-backed | 497,092 | 5.5 | % | 475,870 | 5.1 | % | 342,461 | 3.9 | % | 316,620 | 4.7 | % | 325,138 | 4.8 | % | |||||||||||||||||||
Non-agency mortgage-backed | 268,389 | 3.0 | % | 263,329 | 2.8 | % | 268,102 | 3.1 | % | 253,050 | 3.7 | % | 264,455 | 3.9 | % | |||||||||||||||||||
Commercial mortgage-backed | 552,617 | 6.1 | % | 426,895 | 4.6 | % | 361,812 | 4.2 | % | 381,051 | 5.7 | % | 405,635 | 6.0 | % | |||||||||||||||||||
Asset-backed | 107,668 | 1.2 | % | 66,314 | 0.7 | % | 43,234 | 0.5 | % | 27,610 | 0.4 | % | 31,603 | 0.5 | % | |||||||||||||||||||
Total fixed maturity investments, at fair value | 6,925,207 | 77.0 | % | 6,613,188 | 71.3 | % | 6,007,929 | 69.3 | % | 4,783,570 | 71.0 | % | 4,778,835 | 71.0 | % | |||||||||||||||||||
Short term investments, at fair value | 998,906 | 11.1 | % | 1,543,191 | 16.6 | % | 1,775,819 | 20.4 | % | 1,013,222 | 15.0 | % | 1,031,143 | 15.3 | % | |||||||||||||||||||
Equity investments trading, at fair value | 462,198 | 5.1 | % | 493,056 | 5.3 | % | 261,656 | 3.0 | % | 322,098 | 4.8 | % | 301,714 | 4.5 | % | |||||||||||||||||||
Other investments, at fair value | 483,958 | 5.3 | % | 504,693 | 5.4 | % | 514,906 | 5.9 | % | 504,147 | 7.5 | % | 501,487 | 7.5 | % | |||||||||||||||||||
Total managed investment portfolio | 8,870,269 | 98.5 | % | 9,154,128 | 98.6 | % | 8,560,310 | 98.6 | % | 6,623,037 | 98.3 | % | 6,613,179 | 98.3 | % | |||||||||||||||||||
Investments in other ventures, under equity method | 129,495 | 1.5 | % | 126,139 | 1.4 | % | 123,743 | 1.4 | % | 120,713 | 1.7 | % | 118,245 | 1.7 | % | |||||||||||||||||||
Total investments | $ | 8,999,764 | 100.0 | % | $ | 9,280,267 | 100.0 | % | $ | 8,684,053 | 100.0 | % | $ | 6,743,750 | 100.0 | % | $ | 6,731,424 | 100.0 | % | ||||||||||||||
CREDIT QUALITY OF FIXED MATURITY INVESTMENTS | ||||||||||||||||||||||||||||||||||
AAA | $ | 1,029,717 | 14.9 | % | $ | 850,676 | 12.9 | % | $ | 860,185 | 14.3 | % | $ | 561,208 | 11.7 | % | $ | 579,663 | 12.2 | % | ||||||||||||||
AA | 3,551,893 | 51.3 | % | 3,622,348 | 54.8 | % | 3,077,887 | 51.2 | % | 2,506,760 | 52.4 | % | 2,521,251 | 52.8 | % | |||||||||||||||||||
A | 1,020,516 | 14.7 | % | 979,776 | 14.8 | % | 989,205 | 16.5 | % | 727,639 | 15.2 | % | 713,648 | 14.9 | % | |||||||||||||||||||
BBB | 659,789 | 9.5 | % | 558,221 | 8.4 | % | 515,885 | 8.6 | % | 444,132 | 9.3 | % | 402,318 | 8.4 | % | |||||||||||||||||||
Non-investment grade and not rated | 663,292 | 9.6 | % | 602,167 | 9.1 | % | 564,767 | 9.4 | % | 543,831 | 11.4 | % | 561,955 | 11.7 | % | |||||||||||||||||||
Total fixed maturity investments, at fair value | $ | 6,925,207 | 100.0 | % | $ | 6,613,188 | 100.0 | % | $ | 6,007,929 | 100.0 | % | $ | 4,783,570 | 100.0 | % | $ | 4,778,835 | 100.0 | % | ||||||||||||||
MATURITY PROFILE OF FIXED MATURITY INVESTMENTS | ||||||||||||||||||||||||||||||||||
Due in less than one year | $ | 265,366 | 3.8 | % | $ | 219,382 | 3.3 | % | $ | 209,392 | 3.5 | % | $ | 151,803 | 3.2 | % | $ | 97,868 | 2.0 | % | ||||||||||||||
Due after one through five years | 3,876,482 | 56.0 | % | 3,859,616 | 58.4 | % | 3,220,154 | 53.6 | % | 2,969,828 | 62.1 | % | 2,949,329 | 61.7 | % | |||||||||||||||||||
Due after five through ten years | 1,028,728 | 14.9 | % | 970,723 | 14.7 | % | 1,018,252 | 16.9 | % | 537,636 | 11.2 | % | 593,633 | 12.4 | % | |||||||||||||||||||
Due after ten years | 328,865 | 4.7 | % | 331,059 | 5.0 | % | 544,522 | 9.1 | % | 145,972 | 3.0 | % | 111,174 | 2.4 | % | |||||||||||||||||||
Mortgage-backed securities | 1,318,098 | 19.0 | % | 1,166,094 | 17.6 | % | 972,375 | 16.2 | % | 950,721 | 19.9 | % | 995,228 | 20.8 | % | |||||||||||||||||||
Asset-backed securities | 107,668 | 1.6 | % | 66,314 | 1.0 | % | 43,234 | 0.7 | % | 27,610 | 0.6 | % | 31,603 | 0.7 | % | |||||||||||||||||||
Total fixed maturity investments, at fair value | $ | 6,925,207 | 100.0 | % | $ | 6,613,188 | 100.0 | % | $ | 6,007,929 | 100.0 | % | $ | 4,783,570 | 100.0 | % | $ | 4,778,835 | 100.0 | % | ||||||||||||||
Weighted average effective yield of fixed maturity and short term investments | 1.9 | % | 1.7 | % | 1.6 | % | 1.7 | % | 1.7 | % | ||||||||||||||||||||||||
Average duration of fixed maturities and short term investments | 2.3 | 2.3 | 2.3 | 2.1 | 2.2 |
11 | ![]() |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Summary of Other Investments | |||||||||||||||||||
September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | |||||||||||||||
TYPE OF INVESTMENT | |||||||||||||||||||
Catastrophe bonds | $ | 233,223 | $ | 228,998 | $ | 221,780 | $ | 200,329 | $ | 179,246 | |||||||||
Private equity partnerships | 226,000 | 250,796 | 271,074 | 281,932 | 300,800 | ||||||||||||||
Senior secured bank loan funds | 22,345 | 22,561 | 19,679 | 19,316 | 18,723 | ||||||||||||||
Hedge funds | 2,390 | 2,338 | 2,373 | 2,570 | 2,718 | ||||||||||||||
Total other investments, at fair value | $ | 483,958 | $ | 504,693 | $ | 514,906 | $ | 504,147 | $ | 501,487 | |||||||||
TYPE OF INVESTMENT | |||||||||||||||||||
Catastrophe bonds | 48.2 | % | 45.4 | % | 43.1 | % | 39.7 | % | 35.7 | % | |||||||||
Private equity partnerships | 46.7 | % | 49.6 | % | 52.6 | % | 56.0 | % | 60.1 | % | |||||||||
Senior secured bank loan funds | 4.6 | % | 4.5 | % | 3.8 | % | 3.8 | % | 3.7 | % | |||||||||
Hedge funds | 0.5 | % | 0.5 | % | 0.5 | % | 0.5 | % | 0.5 | % | |||||||||
Total other investments, at fair value | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
12 | ![]() |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||||||
Total Investment Result | |||||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||
September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | September 30, 2015 | September 30, 2014 | |||||||||||||||||||||
Fixed maturity investments | $ | 37,023 | $ | 33,791 | $ | 25,939 | $ | 26,104 | $ | 24,519 | $ | 96,753 | $ | 74,751 | |||||||||||||
Short term investments | 267 | 297 | 197 | 217 | 251 | 761 | 727 | ||||||||||||||||||||
Equity investments trading | 1,791 | 1,913 | 2,604 | 1,139 | 736 | 6,308 | 2,311 | ||||||||||||||||||||
Other investments | |||||||||||||||||||||||||||
Hedge funds and private equity investments | (14,505 | ) | 5,425 | 10,413 | 1,530 | (3,320 | ) | 1,333 | 17,337 | ||||||||||||||||||
Other | 7,261 | 674 | 3,508 | (414 | ) | 5,547 | 11,443 | 11,558 | |||||||||||||||||||
Cash and cash equivalents | 80 | 127 | 148 | 95 | 116 | 355 | 300 | ||||||||||||||||||||
31,917 | 42,227 | 42,809 | 28,671 | 27,849 | 116,953 | 106,984 | |||||||||||||||||||||
Investment expenses | (3,579 | ) | (3,623 | ) | (3,102 | ) | (2,785 | ) | (2,908 | ) | (10,304 | ) | (8,554 | ) | |||||||||||||
Net investment income | 28,338 | 38,604 | 39,707 | 25,886 | 24,941 | 106,649 | 98,430 | ||||||||||||||||||||
Gross realized gains | 9,160 | 8,672 | 21,532 | 11,973 | 7,962 | 39,364 | 33,595 | ||||||||||||||||||||
Gross realized losses | (13,720 | ) | (21,552 | ) | (4,871 | ) | (3,997 | ) | (2,720 | ) | (40,143 | ) | (10,871 | ) | |||||||||||||
Net realized (losses) gains on fixed maturity investments | (4,560 | ) | (12,880 | ) | 16,661 | 7,976 | 5,242 | (779 | ) | 22,724 | |||||||||||||||||
Net unrealized gains (losses) on fixed maturity investments trading | 10,208 | (48,104 | ) | 25,972 | (1,520 | ) | (36,600 | ) | (11,924 | ) | 21,200 | ||||||||||||||||
Net realized and unrealized (losses) gains on investments-related derivatives | (16,612 | ) | 19,816 | (4,208 | ) | (11,280 | ) | (1,868 | ) | (1,004 | ) | (19,651 | ) | ||||||||||||||
Net realized (losses) gains on equity investments trading | (114 | ) | 8,832 | 7,481 | 2,330 | 3,523 | 16,199 | 8,578 | |||||||||||||||||||
Net unrealized (losses) gains on equity investments trading | (30,060 | ) | 5,624 | (4,157 | ) | 32,969 | (1,394 | ) | (28,593 | ) | (21,893 | ) | |||||||||||||||
Net realized and unrealized (losses) gains on investments | (41,138 | ) | (26,712 | ) | 41,749 | 30,475 | (31,097 | ) | (26,101 | ) | 10,958 | ||||||||||||||||
Change in net unrealized gains on fixed maturity investments available for sale | (243 | ) | (560 | ) | (183 | ) | (292 | ) | (302 | ) | (986 | ) | (563 | ) | |||||||||||||
Total investment result | $ | (13,043 | ) | $ | 11,332 | $ | 81,273 | $ | 56,069 | $ | (6,458 | ) | $ | 79,562 | $ | 108,825 | |||||||||||
Total investment return - annualized | (0.6 | )% | 0.5 | % | 4.2 | % | 3.3 | % | (0.4 | )% | 1.2 | % | 2.1 | % |
13 | ![]() |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||||||||||||||||
Investment Portfolio - Effective Yield and Credit Rating | |||||||||||||||||||||||||||||||||||||
Credit Rating (1) | |||||||||||||||||||||||||||||||||||||
September 30, 2015 | Amortized Cost | Fair Value | % of Total Investment Portfolio | Weighted Average Effective Yield | AAA | AA | A | BBB | Non- Investment Grade | Not Rated | |||||||||||||||||||||||||||
Short term investments | $ | 998,906 | $ | 998,906 | 11.1 | % | 0.1 | % | $ | 967,982 | $ | 28,858 | $ | — | $ | 1,820 | $ | 86 | $ | 160 | |||||||||||||||||
100.0 | % | 96.9 | % | 2.9 | % | — | % | 0.2 | % | — | % | — | % | ||||||||||||||||||||||||
Fixed maturity investments | |||||||||||||||||||||||||||||||||||||
U.S. treasuries | 1,974,341 | 1,984,841 | 22.1 | % | 0.9 | % | — | 1,984,841 | — | — | — | — | |||||||||||||||||||||||||
Agencies | |||||||||||||||||||||||||||||||||||||
Fannie Mae and Freddie Mac | 76,794 | 77,125 | 0.9 | % | 0.9 | % | — | 77,125 | — | — | — | — | |||||||||||||||||||||||||
Other agencies | 53,982 | 54,399 | 0.6 | % | 2.0 | % | — | 54,399 | — | — | — | — | |||||||||||||||||||||||||
Total agencies | 130,776 | 131,524 | 1.5 | % | 1.3 | % | — | 131,524 | — | — | — | — | |||||||||||||||||||||||||
Municipal | 675,039 | 675,349 | 7.5 | % | 2.3 | % | 154,569 | 433,219 | 85,347 | 1,101 | 1,113 | — | |||||||||||||||||||||||||
Non-U.S. government (Sovereign debt) | 405,041 | 393,320 | 4.4 | % | 1.1 | % | 229,310 | 130,062 | 18,878 | 15,070 | — | — | |||||||||||||||||||||||||
Non-U.S. government-backed corporate | 174,086 | 172,548 | 1.9 | % | 1.0 | % | 90,986 | 75,322 | 4,062 | 2,178 | — | — | |||||||||||||||||||||||||
Corporate | 2,166,217 | 2,141,859 | 23.8 | % | 3.4 | % | 26,631 | 155,022 | 870,269 | 610,173 | 454,752 | 25,012 | |||||||||||||||||||||||||
Mortgage-backed | |||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | |||||||||||||||||||||||||||||||||||||
Agency securities | 496,726 | 497,092 | 5.5 | % | 2.4 | % | — | 497,092 | — | — | — | — | |||||||||||||||||||||||||
Non-agency securities - Alt A | 161,425 | 170,589 | 1.9 | % | 4.5 | % | 4,001 | 24,164 | 10,432 | 16,617 | 102,329 | 13,046 | |||||||||||||||||||||||||
Non-agency securities - Prime | 93,803 | 97,800 | 1.1 | % | 3.4 | % | 7,862 | 10,818 | 5,440 | 6,640 | 64,010 | 3,030 | |||||||||||||||||||||||||
Total residential mortgage-backed | 751,954 | 765,481 | 8.5 | % | 3.0 | % | 11,863 | 532,074 | 15,872 | 23,257 | 166,339 | 16,076 | |||||||||||||||||||||||||
Commercial mortgage-backed | 548,452 | 552,617 | 6.1 | % | 2.4 | % | 416,045 | 102,474 | 26,088 | 8,010 | — | — | |||||||||||||||||||||||||
Total mortgage-backed | 1,300,406 | 1,318,098 | 14.6 | % | 2.8 | % | 427,908 | 634,548 | 41,960 | 31,267 | 166,339 | 16,076 | |||||||||||||||||||||||||
Asset-backed | |||||||||||||||||||||||||||||||||||||
Credit cards | 30,439 | 30,717 | 0.3 | % | 1.4 | % | 30,717 | — | — | — | — | — | |||||||||||||||||||||||||
Auto loans | 17,003 | 17,070 | 0.2 | % | 1.5 | % | 16,870 | 200 | — | — | — | — | |||||||||||||||||||||||||
Student loans | 5,981 | 5,862 | 0.1 | % | 1.4 | % | 5,406 | 456 | — | — | — | — | |||||||||||||||||||||||||
Other | 53,952 | 54,019 | 0.6 | % | 1.8 | % | 47,320 | 6,699 | — | — | — | — | |||||||||||||||||||||||||
Total asset-backed | 107,375 | 107,668 | 1.2 | % | 1.6 | % | 100,313 | 7,355 | — | — | — | — | |||||||||||||||||||||||||
Total securitized assets | 1,407,781 | 1,425,766 | 15.8 | % | 2.7 | % | 528,221 | 641,903 | 41,960 | 31,267 | 166,339 | 16,076 | |||||||||||||||||||||||||
Total fixed maturity investments | 6,933,281 | 6,925,207 | 77.0 | % | 2.2 | % | 1,029,717 | 3,551,893 | 1,020,516 | 659,789 | 622,204 | 41,088 | |||||||||||||||||||||||||
100.0 | % | 14.9 | % | 51.3 | % | 14.7 | % | 9.5 | % | 9.0 | % | 0.6 | % | ||||||||||||||||||||||||
Equity investments trading | 462,198 | 5.1 | % | — | — | — | — | — | 462,198 | ||||||||||||||||||||||||||||
100.0 | % | — | % | — | % | — | % | — | % | — | % | 100.0 | % | ||||||||||||||||||||||||
Other investments | |||||||||||||||||||||||||||||||||||||
Catastrophe bonds | 233,223 | 2.6 | % | — | — | — | — | 233,223 | — | ||||||||||||||||||||||||||||
Private equity partnerships | 226,000 | 2.5 | % | — | — | — | — | — | 226,000 | ||||||||||||||||||||||||||||
Senior secured bank loan fund | 22,345 | 0.2 | % | — | — | — | — | — | 22,345 | ||||||||||||||||||||||||||||
Hedge funds | 2,390 | — | % | — | — | — | — | — | 2,390 | ||||||||||||||||||||||||||||
Total other investments | 483,958 | 5.3 | % | — | — | — | — | 233,223 | 250,735 | ||||||||||||||||||||||||||||
100.0 | % | — | % | — | % | — | % | — | % | 48.2 | % | 51.8 | % | ||||||||||||||||||||||||
Investments in other ventures | 129,495 | 1.5 | % | — | — | — | — | — | 129,495 | ||||||||||||||||||||||||||||
100.0 | % | — | % | — | % | — | % | — | % | — | % | 100.0 | % | ||||||||||||||||||||||||
Total investment portfolio | $ | 8,999,764 | 100.0 | % | $ | 1,997,699 | $ | 3,580,751 | $ | 1,020,516 | $ | 661,609 | $ | 855,513 | $ | 883,676 | |||||||||||||||||||||
100.0 | % | 22.2 | % | 39.8 | % | 11.3 | % | 7.4 | % | 9.5 | % | 9.8 | % |
14 | ![]() |
RenaissanceRe Holdings Ltd. | ||||||||||||||||||||
Investment Portfolio - Change in Portfolio Composition | ||||||||||||||||||||
September 30, 2015 | December 31, 2014 | Change | ||||||||||||||||||
Fair Value | % of Total Managed Investment Portfolio | Fair Value | % of Total Managed Investment Portfolio | $ | % | |||||||||||||||
Short term investments | $ | 998,906 | 11.1 | % | $ | 1,013,222 | 15.0 | % | $ | (14,316 | ) | (3.9 | )% | |||||||
Fixed maturity investments | ||||||||||||||||||||
U.S. treasuries | 1,984,841 | 22.1 | % | 1,671,471 | 24.8 | % | 313,370 | (2.7 | )% | |||||||||||
Agencies | ||||||||||||||||||||
Fannie Mae and Freddie Mac | 77,125 | 0.9 | % | 89,919 | 1.3 | % | (12,794 | ) | (0.4 | )% | ||||||||||
Other agencies | 54,399 | 0.6 | % | 6,289 | 0.1 | % | 48,110 | 0.5 | % | |||||||||||
Total agencies | 131,524 | 1.5 | % | 96,208 | 1.4 | % | 35,316 | 0.1 | % | |||||||||||
Municipal | 675,349 | 7.5 | % | — | — | % | 675,349 | 7.5 | % | |||||||||||
Non-U.S. government (Sovereign debt) | 393,320 | 4.4 | % | 280,651 | 4.2 | % | 112,669 | 0.2 | % | |||||||||||
Non-U.S. government-backed corporate | 172,548 | 1.9 | % | 146,467 | 2.2 | % | 26,081 | (0.3 | )% | |||||||||||
Corporate | 2,141,859 | 23.8 | % | 1,610,442 | 23.9 | % | 531,417 | (0.1 | )% | |||||||||||
Mortgage-backed | ||||||||||||||||||||
Residential mortgage-backed | ||||||||||||||||||||
Agency securities | 497,092 | 5.5 | % | 316,620 | 4.7 | % | 180,472 | 0.8 | % | |||||||||||
Non-agency securities - Alt A | 170,589 | 1.9 | % | 149,754 | 2.2 | % | 20,835 | (0.3 | )% | |||||||||||
Non-agency securities - Prime | 97,800 | 1.1 | % | 103,296 | 1.5 | % | (5,496 | ) | (0.4 | )% | ||||||||||
Total residential mortgage-backed | 765,481 | 8.5 | % | 569,670 | 8.4 | % | 195,811 | 0.1 | % | |||||||||||
Commercial mortgage-backed | 552,617 | 6.1 | % | 381,051 | 5.7 | % | 171,566 | 0.4 | % | |||||||||||
Total mortgage-backed | 1,318,098 | 14.6 | % | 950,721 | 14.1 | % | 367,377 | 0.5 | % | |||||||||||
Asset-backed | ||||||||||||||||||||
Credit cards | 30,717 | 0.3 | % | 9,686 | 0.1 | % | 21,031 | 0.2 | % | |||||||||||
Auto loans | 17,070 | 0.2 | % | 10,380 | 0.2 | % | 6,690 | — | % | |||||||||||
Student loans | 5,862 | 0.1 | % | 585 | — | % | 5,277 | 0.1 | % | |||||||||||
Other | 54,019 | 0.6 | % | 6,959 | 0.1 | % | 47,060 | 0.5 | % | |||||||||||
Total asset-backed | 107,668 | 1.2 | % | 27,610 | 0.4 | % | 80,058 | 0.8 | % | |||||||||||
Total securitized assets | 1,425,766 | 15.8 | % | 978,331 | 14.5 | % | 447,435 | 1.3 | % | |||||||||||
Total fixed maturity investments | 6,925,207 | 77.0 | % | 4,783,570 | 71.0 | % | 2,141,637 | 6.0 | % | |||||||||||
Equity investments trading | 462,198 | 5.1 | % | 322,098 | 4.8 | % | 140,100 | 0.3 | % | |||||||||||
Other investments | ||||||||||||||||||||
Catastrophe bonds | 233,223 | 2.6 | % | 200,329 | 3.0 | % | 32,894 | (0.4 | )% | |||||||||||
Private equity partnerships | 226,000 | 2.5 | % | 281,932 | 4.2 | % | (55,932 | ) | (1.7 | )% | ||||||||||
Senior secured bank loan fund | 22,345 | 0.2 | % | 19,316 | 0.3 | % | 3,029 | (0.1 | )% | |||||||||||
Hedge funds | 2,390 | — | % | 2,570 | — | % | (180 | ) | — | % | ||||||||||
Total other investments | 483,958 | 5.3 | % | 504,147 | 7.5 | % | (20,189 | ) | (2.2 | )% | ||||||||||
Investments in other ventures | 129,495 | 1.5 | % | 120,713 | 1.7 | % | 8,782 | (0.2 | )% | |||||||||||
Total managed investment portfolio | $ | 8,999,764 | 100.0 | % | $ | 6,743,750 | 100.0 | % | $ | 2,256,014 |
15 | ![]() |
RenaissanceRe Holdings Ltd. | ||||||||||||||||||||
Fixed Maturity and Short Term Investments - Corporate Top 10 Issuers by Fair Value | ||||||||||||||||||||
September 30, 2015 | ||||||||||||||||||||
Issuer | Total | Short term investments | Fixed maturity investments | |||||||||||||||||
Bank of America Corp. | $ | 73,697 | $ | — | $ | 73,697 | ||||||||||||||
Goldman Sachs Group Inc. | 62,588 | — | 62,588 | |||||||||||||||||
JP Morgan Chase & Co. | 56,478 | — | 56,478 | |||||||||||||||||
Morgan Stanley | 53,585 | — | 53,585 | |||||||||||||||||
Citigroup Inc. | 39,672 | — | 39,672 | |||||||||||||||||
HSBC Holdings PLC | 36,582 | — | 36,582 | |||||||||||||||||
Ford Motor Co. | 26,352 | — | 26,352 | |||||||||||||||||
Wells Fargo & Co. | 26,024 | — | 26,024 | |||||||||||||||||
Verizon Communications Inc. | 24,938 | — | 24,938 | |||||||||||||||||
Royal Bank of Canada | 22,272 | — | 22,272 | |||||||||||||||||
Total (1) | $ | 422,188 | $ | — | $ | 422,188 |
(1) | Excludes non-U.S. government-backed corporate fixed maturity investments, reverse repurchase agreements and commercial paper, at fair value. |
16 | ![]() |
RenaissanceRe Holdings Ltd. | |||||||||||||||
Reserves for Claims and Claim Expenses | |||||||||||||||
Case Reserves | Additional Case Reserves | IBNR | Total | ||||||||||||
September 30, 2015 | |||||||||||||||
Catastrophe Reinsurance | $ | 259,614 | $ | 168,296 | $ | 189,096 | $ | 617,006 | |||||||
Specialty Reinsurance | 516,315 | 123,991 | 1,153,278 | 1,793,584 | |||||||||||
Lloyd's | 73,016 | 24,410 | 250,573 | 347,999 | |||||||||||
Other | 3,132 | 2,129 | 32,212 | 37,473 | |||||||||||
Total | $ | 852,077 | $ | 318,826 | $ | 1,625,159 | $ | 2,796,062 | |||||||
June 30, 2015 | |||||||||||||||
Catastrophe Reinsurance | $ | 298,100 | $ | 160,903 | $ | 184,729 | $ | 643,732 | |||||||
Specialty Reinsurance | 537,224 | 104,897 | 1,202,717 | 1,844,838 | |||||||||||
Lloyd's | 68,525 | 20,867 | 231,272 | 320,664 | |||||||||||
Other | 3,697 | 2,139 | 32,578 | 38,414 | |||||||||||
Total | $ | 907,546 | $ | 288,806 | $ | 1,651,296 | $ | 2,847,648 | |||||||
March 31, 2015 | |||||||||||||||
Catastrophe Reinsurance | $ | 284,684 | $ | 158,165 | $ | 179,342 | $ | 622,191 | |||||||
Specialty Reinsurance | 542,201 | 97,281 | 1,182,865 | 1,822,347 | |||||||||||
Lloyd's | 61,703 | 17,064 | 218,952 | 297,719 | |||||||||||
Other | 3,515 | 2,354 | 33,442 | 39,311 | |||||||||||
Total | $ | 892,103 | $ | 274,864 | $ | 1,614,601 | $ | 2,781,568 | |||||||
December 31, 2014 | |||||||||||||||
Catastrophe Reinsurance | $ | 253,431 | $ | 150,825 | $ | 138,411 | $ | 542,667 | |||||||
Specialty Reinsurance | 106,293 | 79,457 | 357,960 | 543,710 | |||||||||||
Lloyd's | 65,295 | 14,168 | 204,984 | 284,447 | |||||||||||
Other | 5,212 | 2,354 | 34,120 | 41,686 | |||||||||||
Total | $ | 430,231 | $ | 246,804 | $ | 735,475 | $ | 1,412,510 | |||||||
September 30, 2014 | |||||||||||||||
Catastrophe Reinsurance | $ | 282,923 | $ | 186,653 | $ | 178,243 | $ | 647,819 | |||||||
Specialty Reinsurance | 111,774 | 83,196 | 359,069 | 554,039 | |||||||||||
Lloyd's | 54,142 | 21,464 | 207,463 | 283,069 | |||||||||||
Other | 8,097 | 2,324 | 37,432 | 47,853 | |||||||||||
Total | $ | 456,936 | $ | 293,637 | $ | 782,207 | $ | 1,532,780 |
17 | ![]() |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||
Paid to Incurred Analysis | |||||||||||||||||||||||
Three months ended September 30, 2015 | Three months ended September 30, 2014 | ||||||||||||||||||||||
Gross | Recoveries | Net | Gross | Recoveries | Net | ||||||||||||||||||
Reserve for claims and claim expenses, beginning of period | $ | 2,847,648 | $ | 136,464 | $ | 2,711,184 | $ | 1,552,618 | $ | 85,115 | $ | 1,467,503 | |||||||||||
Incurred claims and claim expenses | |||||||||||||||||||||||
Current year | 200,646 | 30,268 | 170,378 | 104,510 | 9,523 | 94,987 | |||||||||||||||||
Prior years | (78,902 | ) | (8,552 | ) | (70,350 | ) | (27,537 | ) | (2,197 | ) | (25,340 | ) | |||||||||||
Total incurred claims and claim expenses | 121,744 | 21,716 | 100,028 | 76,973 | 7,326 | 69,647 | |||||||||||||||||
Paid claims and claim expenses | |||||||||||||||||||||||
Current year | 35,909 | 11,322 | 24,587 | 17,580 | 114 | 17,466 | |||||||||||||||||
Prior years | 137,421 | 5,442 | 131,979 | 79,231 | 13,284 | 65,947 | |||||||||||||||||
Total paid claims and claim expenses | 173,330 | 16,764 | 156,566 | 96,811 | 13,398 | 83,413 | |||||||||||||||||
Reserve for claims and claim expenses, end of period | $ | 2,796,062 | $ | 141,416 | $ | 2,654,646 | $ | 1,532,780 | $ | 79,043 | $ | 1,453,737 | |||||||||||
Nine months ended September 30, 2015 | Nine months ended September 30, 2014 | ||||||||||||||||||||||
Gross | Recoveries | Net | Gross | Recoveries | Net | ||||||||||||||||||
Reserve for claims and claim expenses, beginning of period | $ | 1,412,510 | $ | 66,694 | $ | 1,345,816 | $ | 1,563,730 | $ | 101,025 | $ | 1,462,705 | |||||||||||
Incurred claims and claim expenses | |||||||||||||||||||||||
Current year | 565,734 | 93,938 | 471,796 | 298,400 | 29,334 | 269,066 | |||||||||||||||||
Prior years | (132,176 | ) | (6,605 | ) | (125,571 | ) | (56,213 | ) | 2,903 | (59,116 | ) | ||||||||||||
Total incurred claims and claim expenses | 433,558 | 87,333 | 346,225 | 242,187 | 32,237 | 209,950 | |||||||||||||||||
Paid claims and claim expenses | |||||||||||||||||||||||
Current year | 117,984 | 11,355 | 106,629 | 19,357 | 126 | 19,231 | |||||||||||||||||
Prior years | 329,867 | 4,984 | 324,883 | 253,780 | 54,093 | 199,687 | |||||||||||||||||
Total paid claims and claim expenses | 447,851 | 16,339 | 431,512 | 273,137 | 54,219 | 218,918 | |||||||||||||||||
Amounts acquired (1) | 1,397,845 | 3,728 | 1,394,117 | — | — | — | |||||||||||||||||
Reserve for claims and claim expenses, end of period | $ | 2,796,062 | $ | 141,416 | $ | 2,654,646 | $ | 1,532,780 | $ | 79,043 | $ | 1,453,737 |
18 | ![]() |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Earnings per Share | |||||||||||||||||||
Three months ended | |||||||||||||||||||
(common shares in thousands) | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | ||||||||||||||
Numerator: | |||||||||||||||||||
Net income available to RenaissanceRe common shareholders | $ | 75,529 | $ | 73,233 | $ | 167,843 | $ | 170,767 | $ | 67,815 | |||||||||
Amount allocated to participating common shareholders (1) | (867 | ) | (819 | ) | (2,025 | ) | (2,312 | ) | (904 | ) | |||||||||
$ | 74,662 | $ | 72,414 | $ | 165,818 | $ | 168,455 | $ | 66,911 | ||||||||||
Denominator: | |||||||||||||||||||
Denominator for basic income per RenaissanceRe common share - | |||||||||||||||||||
Weighted average common shares | 44,564 | 45,303 | 39,631 | 37,752 | 38,975 | ||||||||||||||
Per common share equivalents of employee stock options and restricted shares | 349 | 354 | 390 | 393 | 458 | ||||||||||||||
Denominator for diluted income per RenaissanceRe common share - | |||||||||||||||||||
Adjusted weighted average common shares and assumed conversions | 44,913 | 45,657 | 40,021 | 38,145 | 39,433 | ||||||||||||||
Basic income per RenaissanceRe common share | $ | 1.68 | $ | 1.60 | $ | 4.18 | $ | 4.46 | $ | 1.72 | |||||||||
Diluted income per RenaissanceRe common share | $ | 1.66 | $ | 1.59 | $ | 4.14 | $ | 4.42 | $ | 1.70 | |||||||||
Nine months ended | |||||||||||||||||||
(common shares in thousands) | September 30, 2015 | September 30, 2014 | |||||||||||||||||
Numerator: | |||||||||||||||||||
Net income available to RenaissanceRe common shareholders | $ | 316,605 | $ | 339,570 | |||||||||||||||
Amount allocated to participating common shareholders (1) | (3,642 | ) | (4,466 | ) | |||||||||||||||
$ | 312,963 | $ | 335,104 | ||||||||||||||||
Denominator: | |||||||||||||||||||
Denominator for basic income per RenaissanceRe common share - | |||||||||||||||||||
Weighted average common shares | 43,166 | 39,983 | |||||||||||||||||
Per common share equivalents of employee stock options and restricted shares | 365 | 595 | |||||||||||||||||
Denominator for diluted income per RenaissanceRe common share - | |||||||||||||||||||
Adjusted weighted average common shares and assumed conversions | 43,531 | 40,578 | |||||||||||||||||
Basic income per RenaissanceRe common share | $ | 7.25 | $ | 8.38 | |||||||||||||||
Diluted income per RenaissanceRe common share (2) | $ | 7.19 | $ | 8.26 |
(1) | Represents earnings attributable to holders of unvested restricted shares issued under the Company's 2001 Stock Incentive Plan and Non-Employee Director Stock Incentive Plan. |
19 | ![]() |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Equity in Earnings of Other Ventures | |||||||||||||||||||
Three months ended | |||||||||||||||||||
September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | |||||||||||||||
Tower Hill Companies | $ | 4,135 | $ | 4,294 | $ | 3,011 | $ | 4,276 | $ | 6,912 | |||||||||
Top Layer Re | 1,738 | 2,174 | 2,616 | 2,364 | 3,108 | ||||||||||||||
Other | (143 | ) | (308 | ) | (332 | ) | (1,802 | ) | (214 | ) | |||||||||
Total equity in earnings of other ventures | $ | 5,730 | $ | 6,160 | $ | 5,295 | $ | 4,838 | $ | 9,806 | |||||||||
Nine months ended | |||||||||||||||||||
September 30, 2015 | September 30, 2014 | ||||||||||||||||||
Tower Hill Companies | $ | 11,440 | $ | 14,100 | |||||||||||||||
Top Layer Re | 6,528 | 8,047 | |||||||||||||||||
Other | (783 | ) | (910 | ) | |||||||||||||||
Total equity in earnings of other ventures | $ | 17,185 | $ | 21,237 | |||||||||||||||
Other Income (Loss) | |||||||||||||||||||
Three months ended | |||||||||||||||||||
September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | |||||||||||||||
Assumed and ceded reinsurance contracts accounted for at fair value or as deposits | $ | 1,749 | $ | 1,162 | $ | 1,317 | $ | 1,044 | $ | 239 | |||||||||
Other items | 557 | 265 | 222 | 175 | (1,408 | ) | |||||||||||||
Total other income (loss) | $ | 2,306 | $ | 1,427 | $ | 1,539 | $ | 1,219 | $ | (1,169 | ) | ||||||||
Nine months ended | |||||||||||||||||||
September 30, 2015 | September 30, 2014 | ||||||||||||||||||
Assumed and ceded reinsurance contracts accounted for at fair value or as deposits | $ | 4,228 | $ | 277 | |||||||||||||||
Other items | 1,044 | (1,919 | ) | ||||||||||||||||
Total other income (loss) | $ | 5,272 | $ | (1,642 | ) |
20 | ![]() |
RenaissanceRe Holdings Ltd. | |||||||
Ratings | |||||||
A.M. Best | S&P | Moody's (4) | Fitch | ||||
Renaissance Reinsurance (1) | A+ | AA- | A1 | A+ | |||
DaVinci (1) | A | AA- | A3 | — | |||
Platinum Bermuda (1) | A | A- | — | — | |||
Renaissance Reinsurance U.S. (1) | A | A+ | — | — | |||
RenaissanceRe Specialty Risks (1) | A | A+ | — | — | |||
RenaissanceRe Specialty U.S. (1) | A | A+ | — | — | |||
Renaissance Reinsurance of Europe (1) | A+ | AA- | — | — | |||
Top Layer Re (1) | A+ | AA | — | — | |||
Syndicate 1458 | — | — | — | — | |||
Lloyd's Overall Market Rating (2) | A | A+ | — | AA- | |||
RenaissanceRe (3) | — | Very Strong | — | — |
21 | ![]() |
Three months ended | Nine months ended | ||||||||||||||||||||||||||
September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | September 30, 2015 | September 30, 2014 | |||||||||||||||||||||
Net income available to RenaissanceRe common shareholders | $ | 75,529 | $ | 73,233 | $ | 167,843 | $ | 170,767 | $ | 67,815 | $ | 316,605 | $ | 339,570 | |||||||||||||
Adjustment for net realized and unrealized losses (gains) on investments | 41,138 | 26,712 | (41,749 | ) | (30,475 | ) | 31,097 | 26,101 | (10,958 | ) | |||||||||||||||||
Operating income available to RenaissanceRe common shareholders | $ | 116,667 | $ | 99,945 | $ | 126,094 | $ | 140,292 | $ | 98,912 | $ | 342,706 | $ | 328,612 | |||||||||||||
Net income available to RenaissanceRe common shareholders per common share - diluted | $ | 1.66 | $ | 1.59 | $ | 4.14 | $ | 4.42 | $ | 1.70 | $ | 7.19 | $ | 8.26 | |||||||||||||
Adjustment for net realized and unrealized losses (gains) on investments | 0.92 | 0.59 | (1.04 | ) | (0.80 | ) | 0.79 | 0.60 | (0.27 | ) | |||||||||||||||||
Operating income available to RenaissanceRe common shareholders per common share - diluted | $ | 2.58 | $ | 2.18 | $ | 3.10 | $ | 3.62 | $ | 2.49 | $ | 7.79 | $ | 7.99 | |||||||||||||
Return on average common equity - annualized | 6.9 | % | 6.6 | % | 17.1 | % | 20.1 | % | 8.0 | % | 10.2 | % | 13.3 | % | |||||||||||||
Adjustment for net realized and unrealized losses (gains) on investments | 3.8 | % | 2.4 | % | (4.3 | )% | (3.6 | )% | 3.7 | % | 0.8 | % | (0.4 | )% | |||||||||||||
Operating return on average common equity - annualized | 10.7 | % | 9.1 | % | 12.9 | % | 16.5 | % | 11.7 | % | 11.0 | % | 12.9 | % |
22 | ![]() |
At | |||||||||||||||||||
September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | |||||||||||||||
Book value per common share | $ | 97.41 | $ | 96.43 | $ | 95.21 | $ | 90.15 | $ | 85.78 | |||||||||
Adjustment for goodwill and other intangibles (1) | (6.65 | ) | (6.51 | ) | (6.64 | ) | (0.86 | ) | (0.88 | ) | |||||||||
Tangible book value per common share | 90.76 | 89.92 | 88.57 | 89.29 | 84.90 | ||||||||||||||
Adjustment for accumulated dividends | 15.18 | 14.88 | 14.58 | 14.28 | 13.99 | ||||||||||||||
Tangible book value per common share plus accumulated dividends | $ | 105.94 | $ | 104.80 | $ | 103.15 | $ | 103.57 | $ | 98.89 | |||||||||
Quarterly change in book value per common share | 1.0 | % | 1.3 | % | 5.6 | % | 5.1 | % | 1.2 | % | |||||||||
Quarterly change in tangible book value per common share plus change in accumulated dividends | 1.3 | % | 1.9 | % | (0.5 | )% | 5.5 | % | 1.5 | % | |||||||||
Year to date change in book value per common share | 8.1 | % | 6.8 | % | |||||||||||||||
Year to date change in tangible book value per common share plus change in accumulated dividends | 2.7 | % | 8.0 | % |
(1) | At September 30, 2015, June 30, 2015, March 31, 2015, December 31, 2014 and September 30, 2014, goodwill and other intangibles included $22.9 million, $23.5 million, $24.4 million, $25.3 million and $26.1 million, respectively, of goodwill and other intangibles included in investments in other ventures, under equity method. |
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