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 July 26, 2016 | |
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 | ||
July 26, 2016 | 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 July 26, 2016 | |
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 $759.1 million increased $97.1 million, or 14.7%, in the second quarter of 2016, compared to the second quarter of 2015, with the Company’s Lloyd’s, Specialty Reinsurance and Catastrophe Reinsurance segments experiencing increases of $44.3 million, or 38.0%; $40.7 million, or 25.4%; and $12.1 million, or 3.1%, respectively. |
• | The Company generated underwriting income of $63.6 million and a combined ratio of 81.9% in the second quarter of 2016, compared to $94.1 million and 75.2%, respectively, in the second quarter of 2015. The increase in the combined ratio in the second quarter of 2016, compared to the second quarter of 2015, was primarily driven by an increase in net claims and claim expenses and underwriting expenses, adding 3.1 and 3.6 percentage points, respectively, to the combined ratio. |
• | Included in net claims and claim expenses in the second quarter of 2016 was $32.8 million of net claims and claim expenses associated with a number of weather-related events in Texas (the “2016 Texas Events”) and $28.1 million associated with the wildfire originating near Fort McMurray, Alberta (the “Fort McMurray Wildfire”). The net negative impact of these events on the Company’s consolidated underwriting result was $50.4 million, and added 15.4 percentage points to the Company’s consolidated combined ratio. The net negative impact of these events on the Company’s net income available to RenaissanceRe common shareholders was $41.1 million. See below for additional information related to the 2016 Texas Events and the Fort McMurray Wildfire. |
• | The Company’s total investment result, which includes the sum of net investment income and net realized and unrealized gains on investments, was $123.8 million in the second quarter of 2016, compared to $11.3 million in the second quarter of 2015, an increase of $112.5 million. The total investment result during the second quarter of 2016 was primarily driven by net unrealized gains in the Company’s portfolio of fixed maturity investments trading, principally the result of a decrease in U.S. treasury yields and a flattening of the yield curve during the quarter, an increase in net investment income in the Company’s portfolio of fixed maturity investments, driven by an increase in average invested assets, and net realized and unrealized gains on equity investments trading as a result of the strong performance of a number of the Company’s equity positions during the quarter. Partially offsetting these items were net realized and unrealized losses on certain investments-related derivatives due to the flattening of the yield curve, noted above. |
• | During the second quarter of 2016, the Company repurchased an aggregate of 1.7 million common shares in open market transactions at an aggregate cost of $187.1 million and at an average share price of $113.33. Subsequent to June 30, 2016 and through the period ended July 25, 2016, the Company repurchased 286 thousand common shares in open market transactions at an aggregate cost of $33.1 million and at an average share price of $115.66. |
Three months ended June 30, 2016 | 2016 Texas Events | Fort McMurray Wildfire | Total | ||||||||||
(in thousands, except percentages) | |||||||||||||
Net claims and claim expenses incurred | $ | (32,821 | ) | $ | (28,061 | ) | $ | (60,882 | ) | ||||
Assumed reinstatement premiums earned | 6,102 | 5,251 | 11,353 | ||||||||||
Ceded reinstatement premiums earned | — | (71 | ) | (71 | ) | ||||||||
Lost profit commissions | (477 | ) | (370 | ) | (847 | ) | |||||||
Net negative impact on underwriting result | (27,196 | ) | (23,251 | ) | (50,447 | ) | |||||||
Redeemable noncontrolling interest - DaVinciRe | 5,124 | 4,247 | 9,371 | ||||||||||
Net negative impact | $ | (22,072 | ) | $ | (19,004 | ) | $ | (41,076 | ) | ||||
Percentage point impact on consolidated combined ratio | 8.2 | 7.0 | 15.4 | ||||||||||
Net negative impact on Catastrophe Reinsurance segment underwriting result | $ | (24,402 | ) | $ | (18,763 | ) | $ | (43,165 | ) | ||||
Net negative impact on Specialty Reinsurance segment underwriting result | (1,901 | ) | (500 | ) | (2,401 | ) | |||||||
Net negative impact on Lloyd's segment underwriting result | (893 | ) | (3,988 | ) | (4,881 | ) | |||||||
Net negative impact on underwriting result | $ | (27,196 | ) | $ | (23,251 | ) | $ | (50,447 | ) | ||||
• | Net income attributable to noncontrolling interests in the second quarter of 2016 was $30.6 million, an increase from $12.2 million in the second quarter of 2015, principally due to an increase in the profitability of DaVinciRe Holdings Ltd. (“DaVinciRe”). The Company’s ownership in DaVinciRe was 24.0% at June 30, 2016, compared to 26.3% at June 30, 2015. |
• | Corporate expenses decreased $7.1 million to $5.8 million in the second quarter of 2016, compared to $12.9 million in the second quarter of 2015, primarily reflecting a decrease to $0.2 million of corporate expenses associated with the acquisition and integration of Platinum incurred during the second quarter of 2016, compared to $7.8 million in the second quarter of 2015. |
INVESTOR CONTACT: | MEDIA CONTACT: |
Rohan Pai | Elizabeth Tillman |
Director - Corporate Finance | Director - Communications |
RenaissanceRe Holdings Ltd. | RenaissanceRe Holdings Ltd. |
(441) 295-4513 | (212) 238-9224 |
or | |
Kekst and Company | |
Peter Hill or Dawn Dover | |
(212) 521-4800 |
RenaissanceRe Holdings Ltd. | |||||||||||||||
Summary Consolidated Statements of Operations | |||||||||||||||
(in thousands of United States Dollars, except per share amounts and percentages) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended | Six months ended | ||||||||||||||
June 30, 2016 | June 30, 2015 | June 30, 2016 | June 30, 2015 | ||||||||||||
Revenues | |||||||||||||||
Gross premiums written | $ | 759,128 | $ | 661,997 | $ | 1,621,261 | $ | 1,305,575 | |||||||
Net premiums written | $ | 519,916 | $ | 508,677 | $ | 1,031,591 | $ | 912,712 | |||||||
Increase in unearned premiums | (168,514 | ) | (128,849 | ) | (326,583 | ) | (236,124 | ) | |||||||
Net premiums earned | 351,402 | 379,828 | 705,008 | 676,588 | |||||||||||
Net investment income | 54,124 | 38,604 | 82,987 | 78,311 | |||||||||||
Net foreign exchange losses | (690 | ) | (1,740 | ) | (2,382 | ) | (4,870 | ) | |||||||
Equity in earnings of other ventures | 6,022 | 6,160 | 7,633 | 11,455 | |||||||||||
Other income | 2,654 | 1,427 | 6,733 | 2,966 | |||||||||||
Net realized and unrealized gains (losses) on investments | 69,772 | (26,712 | ) | 131,425 | 15,037 | ||||||||||
Total revenues | 483,284 | 397,567 | 931,404 | 779,487 | |||||||||||
Expenses | |||||||||||||||
Net claims and claim expenses incurred | 167,750 | 169,344 | 294,355 | 246,197 | |||||||||||
Acquisition expenses | 69,005 | 61,666 | 134,597 | 105,067 | |||||||||||
Operational expenses | 51,073 | 54,673 | 107,308 | 100,294 | |||||||||||
Corporate expenses | 5,752 | 12,868 | 13,977 | 58,401 | |||||||||||
Interest expense | 10,536 | 9,862 | 21,074 | 15,178 | |||||||||||
Total expenses | 304,116 | 308,413 | 571,311 | 525,137 | |||||||||||
Income before taxes | 179,168 | 89,154 | 360,093 | 254,350 | |||||||||||
Income tax (expense) benefit | (6,612 | ) | 1,842 | (9,356 | ) | 49,746 | |||||||||
Net income | 172,556 | 90,996 | 350,737 | 304,096 | |||||||||||
Net income attributable to noncontrolling interests | (30,635 | ) | (12,167 | ) | (75,226 | ) | (51,829 | ) | |||||||
Net income available to RenaissanceRe | 141,921 | 78,829 | 275,511 | 252,267 | |||||||||||
Dividends on preference shares | (5,596 | ) | (5,596 | ) | (11,191 | ) | (11,191 | ) | |||||||
Net income available to RenaissanceRe common shareholders | $ | 136,325 | $ | 73,233 | $ | 264,320 | $ | 241,076 | |||||||
Net income available to RenaissanceRe common shareholders per common share - basic | $ | 3.23 | $ | 1.60 | $ | 6.20 | $ | 5.61 | |||||||
Net income available to RenaissanceRe common shareholders per common share - diluted | $ | 3.22 | $ | 1.59 | $ | 6.16 | $ | 5.56 | |||||||
Average shares outstanding - basic | 41,693 | 45,303 | 42,135 | 42,467 | |||||||||||
Average shares outstanding - diluted | 41,885 | 45,657 | 42,398 | 42,839 | |||||||||||
Net claims and claim expense ratio | 47.7 | % | 44.6 | % | 41.8 | % | 36.4 | % | |||||||
Underwriting expense ratio | 34.2 | % | 30.6 | % | 34.3 | % | 30.3 | % | |||||||
Combined ratio | 81.9 | % | 75.2 | % | 76.1 | % | 66.7 | % | |||||||
Net income available to RenaissanceRe common shareholders per common share - diluted | $ | 3.22 | $ | 1.59 | $ | 6.16 | $ | 5.56 | |||||||
Operating income available to RenaissanceRe common shareholders per common share - diluted (1) | $ | 1.55 | $ | 2.18 | $ | 3.06 | $ | 5.21 | |||||||
Return on average common equity - annualized | 12.6 | % | 6.6 | % | 12.2 | % | 11.8 | % | |||||||
Operating return on average common equity - annualized (1) | 6.1 | % | 9.1 | % | 6.1 | % | 11.0 | % |
(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) | |||||||
June 30, 2016 | December 31, 2015 | ||||||
Assets | (Unaudited) | (Audited) | |||||
Fixed maturity investments trading, at fair value | $ | 7,073,129 | $ | 6,765,005 | |||
Fixed maturity investments available for sale, at fair value | 12,434 | 17,813 | |||||
Total fixed maturity investments, at fair value | 7,085,563 | 6,782,818 | |||||
Short term investments, at fair value | 1,000,206 | 1,208,401 | |||||
Equity investments trading, at fair value | 301,298 | 393,877 | |||||
Other investments, at fair value | 489,702 | 481,621 | |||||
Investments in other ventures, under equity method | 133,448 | 132,351 | |||||
Total investments | 9,010,217 | 8,999,068 | |||||
Cash and cash equivalents | 455,521 | 506,885 | |||||
Premiums receivable | 1,332,667 | 778,009 | |||||
Prepaid reinsurance premiums | 533,092 | 230,671 | |||||
Reinsurance recoverable | 222,006 | 134,526 | |||||
Accrued investment income | 37,900 | 39,749 | |||||
Deferred acquisition costs | 331,152 | 199,380 | |||||
Receivable for investments sold | 203,165 | 220,834 | |||||
Other assets | 160,873 | 181,011 | |||||
Goodwill and other intangibles | 258,170 | 265,154 | |||||
Total assets | $ | 12,544,763 | $ | 11,555,287 | |||
Liabilities, Noncontrolling Interests and Shareholders’ Equity | |||||||
Liabilities | |||||||
Reserve for claims and claim expenses | $ | 2,844,243 | $ | 2,767,045 | |||
Unearned premiums | 1,518,106 | 889,102 | |||||
Debt | 954,577 | 960,495 | |||||
Reinsurance balances payable | 753,699 | 523,974 | |||||
Payable for investments purchased | 432,926 | 391,378 | |||||
Other liabilities | 215,592 | 245,145 | |||||
Total liabilities | 6,719,143 | 5,777,139 | |||||
Redeemable noncontrolling interest | 1,122,403 | 1,045,964 | |||||
Shareholders’ Equity | |||||||
Preference shares | 400,000 | 400,000 | |||||
Common shares | 41,496 | 43,701 | |||||
Additional paid-in capital | 242,561 | 507,674 | |||||
Accumulated other comprehensive income | 2,337 | 2,108 | |||||
Retained earnings | 4,016,823 | 3,778,701 | |||||
Total shareholders’ equity attributable to RenaissanceRe | 4,703,217 | 4,732,184 | |||||
Total liabilities, noncontrolling interests and shareholders’ equity | $ | 12,544,763 | $ | 11,555,287 | |||
Book value per common share | $ | 103.70 | $ | 99.13 |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Supplemental Financial Data - Segment Information | |||||||||||||||||||
(in thousands of United States Dollars, except percentages) | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Three months ended June 30, 2016 | |||||||||||||||||||
Catastrophe Reinsurance | Specialty Reinsurance | Lloyd’s | Other | Total | |||||||||||||||
Gross premiums written | $ | 397,454 | $ | 200,733 | $ | 160,941 | $ | — | $ | 759,128 | |||||||||
Net premiums written | $ | 255,645 | $ | 132,420 | $ | 131,851 | $ | — | $ | 519,916 | |||||||||
Net premiums earned | $ | 141,616 | $ | 137,168 | $ | 72,618 | $ | — | $ | 351,402 | |||||||||
Net claims and claim expenses incurred | 56,131 | 67,701 | 43,832 | 86 | 167,750 | ||||||||||||||
Acquisition expenses | 16,227 | 34,127 | 18,651 | — | 69,005 | ||||||||||||||
Operational expenses | 18,685 | 19,959 | 12,408 | 21 | 51,073 | ||||||||||||||
Underwriting income (loss) | $ | 50,573 | $ | 15,381 | $ | (2,273 | ) | $ | (107 | ) | 63,574 | ||||||||
Net investment income | 54,124 | 54,124 | |||||||||||||||||
Net foreign exchange losses | (690 | ) | (690 | ) | |||||||||||||||
Equity in earnings of other ventures | 6,022 | 6,022 | |||||||||||||||||
Other income | 2,654 | 2,654 | |||||||||||||||||
Net realized and unrealized gains on investments | 69,772 | 69,772 | |||||||||||||||||
Corporate expenses | (5,752 | ) | (5,752 | ) | |||||||||||||||
Interest expense | (10,536 | ) | (10,536 | ) | |||||||||||||||
Income before taxes and redeemable noncontrolling interests | 179,168 | ||||||||||||||||||
Income tax expense | (6,612 | ) | (6,612 | ) | |||||||||||||||
Net income attributable to redeemable noncontrolling interests | (30,635 | ) | (30,635 | ) | |||||||||||||||
Dividends on preference shares | (5,596 | ) | (5,596 | ) | |||||||||||||||
Net income available to RenaissanceRe common shareholders | $ | 136,325 | |||||||||||||||||
Net claims and claim expenses incurred – current accident year | $ | 70,321 | $ | 85,117 | $ | 41,567 | $ | — | $ | 197,005 | |||||||||
Net claims and claim expenses incurred – prior accident years | (14,190 | ) | (17,416 | ) | 2,265 | 86 | (29,255 | ) | |||||||||||
Net claims and claim expenses incurred – total | $ | 56,131 | $ | 67,701 | $ | 43,832 | $ | 86 | $ | 167,750 | |||||||||
Net claims and claim expense ratio – current accident year | 49.7 | % | 62.1 | % | 57.2 | % | 56.1 | % | |||||||||||
Net claims and claim expense ratio – prior accident years | (10.1 | )% | (12.7 | )% | 3.2 | % | (8.4 | )% | |||||||||||
Net claims and claim expense ratio – calendar year | 39.6 | % | 49.4 | % | 60.4 | % | 47.7 | % | |||||||||||
Underwriting expense ratio | 24.7 | % | 39.4 | % | 42.7 | % | 34.2 | % | |||||||||||
Combined ratio | 64.3 | % | 88.8 | % | 103.1 | % | 81.9 | % | |||||||||||
Three months ended June 30, 2015 | |||||||||||||||||||
Catastrophe Reinsurance | Specialty Reinsurance | Lloyd’s | Other | Total | |||||||||||||||
Gross premiums written | $ | 385,366 | $ | 160,013 | $ | 116,618 | $ | — | $ | 661,997 | |||||||||
Net premiums written | $ | 270,490 | $ | 139,867 | $ | 98,320 | $ | — | $ | 508,677 | |||||||||
Net premiums earned | $ | 162,705 | $ | 155,584 | $ | 61,539 | $ | — | $ | 379,828 | |||||||||
Net claims and claim expenses incurred | 55,376 | 86,062 | 27,683 | 223 | 169,344 | ||||||||||||||
Acquisition expenses | 19,314 | 28,251 | 14,210 | (109 | ) | 61,666 | |||||||||||||
Operational expenses | 22,090 | 18,747 | 13,719 | 117 | 54,673 | ||||||||||||||
Underwriting income (loss) | $ | 65,925 | $ | 22,524 | $ | 5,927 | $ | (231 | ) | 94,145 | |||||||||
Net investment income | 38,604 | 38,604 | |||||||||||||||||
Net foreign exchange losses | (1,740 | ) | (1,740 | ) | |||||||||||||||
Equity in earnings of other ventures | 6,160 | 6,160 | |||||||||||||||||
Other income | 1,427 | 1,427 | |||||||||||||||||
Net realized and unrealized losses on investments | (26,712 | ) | (26,712 | ) | |||||||||||||||
Corporate expenses | (12,868 | ) | (12,868 | ) | |||||||||||||||
Interest expense | (9,862 | ) | (9,862 | ) | |||||||||||||||
Income before taxes and noncontrolling interests | 89,154 | ||||||||||||||||||
Income tax benefit | 1,842 | 1,842 | |||||||||||||||||
Net income attributable to noncontrolling interests | (12,167 | ) | (12,167 | ) | |||||||||||||||
Dividends on preference shares | (5,596 | ) | (5,596 | ) | |||||||||||||||
Net income available to RenaissanceRe common shareholders | $ | 73,233 | |||||||||||||||||
Net claims and claim expenses incurred – current accident year | $ | 67,334 | $ | 104,315 | $ | 30,771 | $ | — | $ | 202,420 | |||||||||
Net claims and claim expenses incurred – prior accident years | (11,958 | ) | (18,253 | ) | (3,088 | ) | 223 | (33,076 | ) | ||||||||||
Net claims and claim expenses incurred – total | $ | 55,376 | $ | 86,062 | $ | 27,683 | $ | 223 | $ | 169,344 | |||||||||
Net claims and claim expense ratio – current accident year | 41.4 | % | 67.0 | % | 50.0 | % | 53.3 | % | |||||||||||
Net claims and claim expense ratio – prior accident years | (7.4 | )% | (11.7 | )% | (5.0 | )% | (8.7 | )% | |||||||||||
Net claims and claim expense ratio – calendar year | 34.0 | % | 55.3 | % | 45.0 | % | 44.6 | % | |||||||||||
Underwriting expense ratio | 25.5 | % | 30.2 | % | 45.4 | % | 30.6 | % | |||||||||||
Combined ratio | 59.5 | % | 85.5 | % | 90.4 | % | 75.2 | % |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Supplemental Financial Data - Segment Information | |||||||||||||||||||
(in thousands of United States Dollars, except percentages) | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Six months ended June 30, 2016 | |||||||||||||||||||
Catastrophe Reinsurance | Specialty Reinsurance | Lloyd’s | Other | Total | |||||||||||||||
Gross premiums written | $ | 757,877 | $ | 569,722 | $ | 293,662 | $ | — | $ | 1,621,261 | |||||||||
Net premiums written | $ | 444,430 | $ | 392,511 | $ | 194,650 | $ | — | $ | 1,031,591 | |||||||||
Net premiums earned | $ | 278,601 | $ | 292,486 | $ | 133,921 | $ | — | $ | 705,008 | |||||||||
Net claims and claim expenses incurred | 63,951 | 159,553 | 70,848 | 3 | 294,355 | ||||||||||||||
Acquisition expenses | 25,807 | 75,852 | 32,938 | — | 134,597 | ||||||||||||||
Operational expenses | 38,953 | 41,732 | 26,542 | 81 | 107,308 | ||||||||||||||
Underwriting income (loss) | $ | 149,890 | $ | 15,349 | $ | 3,593 | $ | (84 | ) | 168,748 | |||||||||
Net investment income | 82,987 | 82,987 | |||||||||||||||||
Net foreign exchange losses | (2,382 | ) | (2,382 | ) | |||||||||||||||
Equity in earnings of other ventures | 7,633 | 7,633 | |||||||||||||||||
Other income | 6,733 | 6,733 | |||||||||||||||||
Net realized and unrealized gains on investments | 131,425 | 131,425 | |||||||||||||||||
Corporate expenses | (13,977 | ) | (13,977 | ) | |||||||||||||||
Interest expense | (21,074 | ) | (21,074 | ) | |||||||||||||||
Income before taxes and redeemable noncontrolling interests | 360,093 | ||||||||||||||||||
Income tax expense | (9,356 | ) | (9,356 | ) | |||||||||||||||
Net income attributable to redeemable noncontrolling interests | (75,226 | ) | (75,226 | ) | |||||||||||||||
Dividends on preference shares | (11,191 | ) | (11,191 | ) | |||||||||||||||
Net income available to RenaissanceRe common shareholders | $ | 264,320 | |||||||||||||||||
Net claims and claim expenses incurred – current accident year | $ | 84,204 | $ | 173,495 | $ | 67,515 | $ | — | $ | 325,214 | |||||||||
Net claims and claim expenses incurred – prior accident years | (20,253 | ) | (13,942 | ) | 3,333 | 3 | (30,859 | ) | |||||||||||
Net claims and claim expenses incurred – total | $ | 63,951 | $ | 159,553 | $ | 70,848 | $ | 3 | $ | 294,355 | |||||||||
Net claims and claim expense ratio – current accident year | 30.2 | % | 59.3 | % | 50.4 | % | 46.1 | % | |||||||||||
Net claims and claim expense ratio – prior accident years | (7.2 | )% | (4.7 | )% | 2.5 | % | (4.3 | )% | |||||||||||
Net claims and claim expense ratio – calendar year | 23.0 | % | 54.6 | % | 52.9 | % | 41.8 | % | |||||||||||
Underwriting expense ratio | 23.2 | % | 40.2 | % | 44.4 | % | 34.3 | % | |||||||||||
Combined ratio | 46.2 | % | 94.8 | % | 97.3 | % | 76.1 | % | |||||||||||
Six months ended June 30, 2015 | |||||||||||||||||||
Catastrophe Reinsurance | Specialty Reinsurance | Lloyd’s | Other | Total | |||||||||||||||
Gross premiums written (1) | $ | 774,613 | $ | 284,304 | $ | 246,748 | $ | (90 | ) | $ | 1,305,575 | ||||||||
Net premiums written | $ | 493,130 | $ | 243,782 | $ | 175,889 | $ | (89 | ) | $ | 912,712 | ||||||||
Net premiums earned | $ | 306,472 | $ | 250,460 | $ | 119,745 | $ | (89 | ) | $ | 676,588 | ||||||||
Net claims and claim expenses incurred | 62,970 | 125,650 | 57,526 | 51 | 246,197 | ||||||||||||||
Acquisition expenses | 26,968 | 48,940 | 28,903 | 256 | 105,067 | ||||||||||||||
Operational expenses | 42,453 | 32,037 | 25,659 | 145 | 100,294 | ||||||||||||||
Underwriting income (loss) | $ | 174,081 | $ | 43,833 | $ | 7,657 | $ | (541 | ) | 225,030 | |||||||||
Net investment income | 78,311 | 78,311 | |||||||||||||||||
Net foreign exchange losses | (4,870 | ) | (4,870 | ) | |||||||||||||||
Equity in earnings of other ventures | 11,455 | 11,455 | |||||||||||||||||
Other income | 2,966 | 2,966 | |||||||||||||||||
Net realized and unrealized gains on investments | 15,037 | 15,037 | |||||||||||||||||
Corporate expenses | (58,401 | ) | (58,401 | ) | |||||||||||||||
Interest expense | (15,178 | ) | (15,178 | ) | |||||||||||||||
Income before taxes and noncontrolling interests | 254,350 | ||||||||||||||||||
Income tax benefit | 49,746 | 49,746 | |||||||||||||||||
Net income attributable to noncontrolling interests | (51,829 | ) | (51,829 | ) | |||||||||||||||
Dividends on preference shares | (11,191 | ) | (11,191 | ) | |||||||||||||||
Net income available to RenaissanceRe common shareholders | $ | 241,076 | |||||||||||||||||
Net claims and claim expenses incurred – current accident year | $ | 91,458 | $ | 153,579 | $ | 56,381 | $ | — | $ | 301,418 | |||||||||
Net claims and claim expenses incurred – prior accident years | (28,488 | ) | (27,929 | ) | 1,145 | 51 | (55,221 | ) | |||||||||||
Net claims and claim expenses incurred – total | $ | 62,970 | $ | 125,650 | $ | 57,526 | $ | 51 | $ | 246,197 | |||||||||
Net claims and claim expense ratio – current accident year | 29.8 | % | 61.3 | % | 47.1 | % | 44.5 | % | |||||||||||
Net claims and claim expense ratio – prior accident years | (9.3 | )% | (11.1 | )% | 0.9 | % | (8.1 | )% | |||||||||||
Net claims and claim expense ratio – calendar year | 20.5 | % | 50.2 | % | 48.0 | % | 36.4 | % | |||||||||||
Underwriting expense ratio | 22.7 | % | 32.3 | % | 45.6 | % | 30.3 | % | |||||||||||
Combined ratio | 43.2 | % | 82.5 | % | 93.6 | % | 66.7 | % |
RenaissanceRe Holdings Ltd. | |||||||||||||||
Supplemental Financial Data - Gross Premiums Written and Managed Premiums | |||||||||||||||
(in thousands of United States Dollars) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended | Six months ended | ||||||||||||||
June 30, 2016 | June 30, 2015 | June 30, 2016 | June 30, 2015 | ||||||||||||
Catastrophe Reinsurance Segment | |||||||||||||||
Renaissance catastrophe premiums | $ | 251,695 | $ | 243,246 | $ | 497,784 | $ | 508,976 | |||||||
DaVinci catastrophe premiums | 145,759 | 142,120 | 260,093 | 265,637 | |||||||||||
Total Catastrophe Reinsurance segment gross premiums written | $ | 397,454 | $ | 385,366 | $ | 757,877 | $ | 774,613 | |||||||
Specialty Reinsurance Segment | |||||||||||||||
Casualty | $ | 87,989 | $ | 84,953 | $ | 235,790 | $ | 147,058 | |||||||
Credit | 71,395 | 19,911 | 210,025 | 48,622 | |||||||||||
Property | 18,235 | 23,215 | 57,859 | 28,424 | |||||||||||
Other | 23,114 | 31,934 | 66,048 | 60,200 | |||||||||||
Total Specialty Reinsurance segment gross premiums written | $ | 200,733 | $ | 160,013 | $ | 569,722 | $ | 284,304 | |||||||
Lloyd’s Segment | |||||||||||||||
Casualty | $ | 62,110 | $ | 48,426 | $ | 133,038 | $ | 110,397 | |||||||
Catastrophe | 39,602 | 33,379 | 62,635 | 59,024 | |||||||||||
Property | 38,662 | 24,130 | 60,541 | 47,899 | |||||||||||
Credit | 2,860 | 1,534 | 7,064 | 4,119 | |||||||||||
Other | 17,707 | 9,149 | 30,384 | 25,309 | |||||||||||
Total Lloyd’s segment gross premiums written | $ | 160,941 | $ | 116,618 | $ | 293,662 | $ | 246,748 | |||||||
Managed Premiums (1) | |||||||||||||||
Total Catastrophe Reinsurance segment gross premiums written | $ | 397,454 | $ | 385,366 | $ | 757,877 | $ | 774,613 | |||||||
Catastrophe premiums written in the Lloyd’s segment | 39,602 | 33,379 | 62,635 | 59,024 | |||||||||||
Catastrophe premiums written on behalf of the Company’s joint venture, Top Layer Re (2) | 25,689 | 21,411 | 36,785 | 35,575 | |||||||||||
Catastrophe premiums written by the Company in its Catastrophe Reinsurance segment and ceded to Top Layer Re | (896 | ) | (835 | ) | (9,263 | ) | (6,785 | ) | |||||||
Total managed catastrophe premiums (1) | $ | 461,849 | $ | 439,321 | $ | 848,034 | $ | 862,427 |
(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 | Six months ended | ||||||||||||||
June 30, 2016 | June 30, 2015 | June 30, 2016 | June 30, 2015 | ||||||||||||
Fixed maturity investments | $ | 46,091 | $ | 33,791 | $ | 82,097 | $ | 59,730 | |||||||
Short term investments | 1,227 | 297 | 2,227 | 494 | |||||||||||
Equity investments trading | 865 | 1,913 | 2,528 | 4,517 | |||||||||||
Other investments | |||||||||||||||
Private equity investments | 4,356 | 5,425 | (5,002 | ) | 15,838 | ||||||||||
Other | 5,035 | 674 | 8,344 | 4,182 | |||||||||||
Cash and cash equivalents | 209 | 127 | 338 | 275 | |||||||||||
57,783 | 42,227 | 90,532 | 85,036 | ||||||||||||
Investment expenses | (3,659 | ) | (3,623 | ) | (7,545 | ) | (6,725 | ) | |||||||
Net investment income | 54,124 | 38,604 | 82,987 | 78,311 | |||||||||||
Gross realized gains | 22,661 | 8,672 | 40,411 | 30,204 | |||||||||||
Gross realized losses | (7,804 | ) | (21,552 | ) | (22,469 | ) | (26,423 | ) | |||||||
Net realized gains (losses) on fixed maturity investments | 14,857 | (12,880 | ) | 17,942 | 3,781 | ||||||||||
Net unrealized gains (losses) on fixed maturity investments trading | 44,271 | (48,104 | ) | 129,736 | (22,132 | ) | |||||||||
Net realized and unrealized (losses) gains on investments-related derivatives | (9,151 | ) | 19,816 | (28,600 | ) | 15,608 | |||||||||
Net realized gains on equity investments trading | 14,729 | 8,832 | 13,911 | 16,313 | |||||||||||
Net unrealized gains (losses) on equity investments trading | 5,066 | 5,624 | (1,564 | ) | 1,467 | ||||||||||
Net realized and unrealized gains (losses) on investments | 69,772 | (26,712 | ) | 131,425 | 15,037 | ||||||||||
Change in net unrealized gains on fixed maturity investments available for sale | (90 | ) | (560 | ) | (359 | ) | (743 | ) | |||||||
Total investment result | $ | 123,806 | $ | 11,332 | $ | 214,053 | $ | 92,605 | |||||||
Total investment return - annualized | 5.5 | % | 0.5 | % | 4.7 | % | 2.2 | % |
Three months ended | Six months ended | ||||||||||||||
(in thousands of United States Dollars, except percentages) | June 30, 2016 | June 30, 2015 | June 30, 2016 | June 30, 2015 | |||||||||||
Net income available to RenaissanceRe common shareholders | $ | 136,325 | $ | 73,233 | $ | 264,320 | $ | 241,076 | |||||||
Adjustment for net realized and unrealized (gains) losses on investments | (69,772 | ) | 26,712 | (131,425 | ) | (15,037 | ) | ||||||||
Operating income available to RenaissanceRe common shareholders | $ | 66,553 | $ | 99,945 | $ | 132,895 | $ | 226,039 | |||||||
Net income available to RenaissanceRe common shareholders per common share - diluted | $ | 3.22 | $ | 1.59 | $ | 6.16 | $ | 5.56 | |||||||
Adjustment for net realized and unrealized (gains) losses on investments | (1.67 | ) | 0.59 | (3.10 | ) | (0.35 | ) | ||||||||
Operating income available to RenaissanceRe common shareholders per common share - diluted | $ | 1.55 | $ | 2.18 | $ | 3.06 | $ | 5.21 | |||||||
Return on average common equity - annualized | 12.6 | % | 6.6 | % | 12.2 | % | 11.8 | % | |||||||
Adjustment for net realized and unrealized (gains) losses on investments | (6.5 | )% | 2.5 | % | (6.1 | )% | (0.8 | )% | |||||||
Operating return on average common equity - annualized | 6.1 | % | 9.1 | % | 6.1 | % | 11.0 | % |
At | |||||||||||||||||||
June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | |||||||||||||||
Book value per common share | $ | 103.70 | $ | 101.19 | $ | 99.13 | $ | 97.41 | $ | 96.43 | |||||||||
Adjustment for goodwill and other intangibles (1) | (6.73 | ) | (6.59 | ) | (6.59 | ) | (6.65 | ) | (6.51 | ) | |||||||||
Tangible book value per common share | 96.97 | 94.60 | 92.54 | 90.76 | 89.92 | ||||||||||||||
Adjustment for accumulated dividends | 16.10 | 15.79 | 15.48 | 15.18 | 14.88 | ||||||||||||||
Tangible book value per common share plus accumulated dividends | $ | 113.07 | $ | 110.39 | $ | 108.02 | $ | 105.94 | $ | 104.80 | |||||||||
Quarterly change in book value per common share | 2.5 | % | 2.1 | % | 1.8 | % | 1.0 | % | 1.3 | % | |||||||||
Quarterly change in tangible book value per common share plus change in accumulated dividends | 2.8 | % | 2.6 | % | 2.3 | % | 1.3 | % | 1.9 | % | |||||||||
Year to date change in book value per common share | 4.6 | % | 7.0 | % | |||||||||||||||
Year to date change in tangible book value per common share plus change in accumulated dividends | 5.5 | % | 1.4 | % |
(1) | At June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015 and June 30, 2015, goodwill and other intangibles included $21.4 million, $22.3 million, $23.2 million, $22.9 million and $23.5 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 | 20 | ||
d. | Ratings | 21 | ||
Comments on Regulation G | 22 - 23 |
i |
RenaissanceRe Holdings Ltd. | |||||||||||||||
Financial Highlights | |||||||||||||||
Three months ended | Six months ended | ||||||||||||||
June 30, 2016 | June 30, 2015 | June 30, 2016 | June 30, 2015 | ||||||||||||
Highlights | |||||||||||||||
Gross premiums written | $ | 759,128 | $ | 661,997 | $ | 1,621,261 | $ | 1,305,575 | |||||||
Net premiums written | $ | 519,916 | $ | 508,677 | $ | 1,031,591 | $ | 912,712 | |||||||
Net premiums earned | $ | 351,402 | $ | 379,828 | $ | 705,008 | $ | 676,588 | |||||||
Net claims and claim expenses incurred | 167,750 | 169,344 | 294,355 | 246,197 | |||||||||||
Acquisition expenses | 69,005 | 61,666 | 134,597 | 105,067 | |||||||||||
Operating expenses | 51,073 | 54,673 | 107,308 | 100,294 | |||||||||||
Underwriting income | $ | 63,574 | $ | 94,145 | $ | 168,748 | $ | 225,030 | |||||||
Net investment income | $ | 54,124 | $ | 38,604 | $ | 82,987 | $ | 78,311 | |||||||
Net realized and unrealized gains (losses) on investments | 69,772 | (26,712 | ) | 131,425 | 15,037 | ||||||||||
Change in net unrealized gains on fixed maturity investments available for sale | (90 | ) | (560 | ) | (359 | ) | (743 | ) | |||||||
Total investment result | $ | 123,806 | $ | 11,332 | $ | 214,053 | $ | 92,605 | |||||||
Net income available to RenaissanceRe common shareholders | $ | 136,325 | $ | 73,233 | $ | 264,320 | $ | 241,076 | |||||||
Operating income available to RenaissanceRe common shareholders (1) | $ | 66,553 | $ | 99,945 | $ | 132,895 | $ | 226,039 | |||||||
Total assets | $ | 12,544,763 | $ | 12,047,395 | $ | 12,544,763 | $ | 12,047,395 | |||||||
Total shareholders' equity attributable to RenaissanceRe | $ | 4,703,217 | $ | 4,836,944 | $ | 4,703,217 | $ | 4,836,944 | |||||||
Per share data | |||||||||||||||
Net income available to RenaissanceRe common shareholders per common share - diluted | $ | 3.22 | $ | 1.59 | $ | 6.16 | $ | 5.56 | |||||||
Operating income available to RenaissanceRe common shareholders per common share - diluted (1) | $ | 1.55 | $ | 2.18 | $ | 3.06 | $ | 5.21 | |||||||
Dividends per common share | $ | 0.31 | $ | 0.30 | $ | 0.62 | $ | 0.60 | |||||||
Book value per common share | $ | 103.70 | $ | 96.43 | $ | 103.70 | $ | 96.43 | |||||||
Tangible book value per common share (1) | $ | 96.97 | $ | 89.92 | $ | 96.97 | $ | 89.92 | |||||||
Tangible book value per common share plus accumulated dividends (1) | $ | 113.07 | $ | 104.80 | $ | 113.07 | $ | 104.80 | |||||||
Change in tangible book value per common share plus change in accumulated dividends (1) | 2.8 | % | 1.9 | % | 5.5 | % | 1.4 | % | |||||||
Financial ratios | |||||||||||||||
Net claims and claim expense ratio - current accident year | 56.1 | % | 53.3 | % | 46.1 | % | 44.5 | % | |||||||
Net claims and claim expense ratio - prior accident years | (8.4 | )% | (8.7 | )% | (4.3 | )% | (8.1 | )% | |||||||
Net claims and claim expense ratio - calendar year | 47.7 | % | 44.6 | % | 41.8 | % | 36.4 | % | |||||||
Underwriting expense ratio | 34.2 | % | 30.6 | % | 34.3 | % | 30.3 | % | |||||||
Combined ratio | 81.9 | % | 75.2 | % | 76.1 | % | 66.7 | % | |||||||
Return on average common equity - annualized | 12.6 | % | 6.6 | % | 12.2 | % | 11.8 | % | |||||||
Operating return on average common equity - annualized (1) | 6.1 | % | 9.1 | % | 6.1 | % | 11.0 | % | |||||||
Total investment return - annualized | 5.5 | % | 0.5 | % | 4.7 | % | 2.2 | % |
(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 | |||||||||||||||||||
June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | |||||||||||||||
Revenues | |||||||||||||||||||
Gross premiums written | $ | 759,128 | $ | 862,133 | $ | 336,093 | $ | 369,642 | $ | 661,997 | |||||||||
Net premiums written | $ | 519,916 | $ | 511,675 | $ | 236,651 | $ | 266,820 | $ | 508,677 | |||||||||
(Increase) decrease in unearned premiums | (168,514 | ) | (158,069 | ) | 124,924 | 95,568 | (128,849 | ) | |||||||||||
Net premiums earned | 351,402 | 353,606 | 361,575 | 362,388 | 379,828 | ||||||||||||||
Net investment income | 54,124 | 28,863 | 45,918 | 28,338 | 38,604 | ||||||||||||||
Net foreign exchange (losses) gains | (690 | ) | (1,692 | ) | 1,203 | 616 | (1,740 | ) | |||||||||||
Equity in earnings of other ventures | 6,022 | 1,611 | 3,296 | 5,730 | 6,160 | ||||||||||||||
Other income | 2,654 | 4,079 | 8,200 | 2,306 | 1,427 | ||||||||||||||
Net realized and unrealized gains (losses) on investments | 69,772 | 61,653 | (42,817 | ) | (41,138 | ) | (26,712 | ) | |||||||||||
Total revenues | 483,284 | 448,120 | 377,375 | 358,240 | 397,567 | ||||||||||||||
Expenses | |||||||||||||||||||
Net claims and claim expenses incurred | 167,750 | 126,605 | 102,013 | 100,028 | 169,344 | ||||||||||||||
Acquisition expenses | 69,005 | 65,592 | 55,399 | 78,126 | 61,666 | ||||||||||||||
Operational expenses | 51,073 | 56,235 | 64,300 | 54,518 | 54,673 | ||||||||||||||
Corporate expenses | 5,752 | 8,225 | 10,791 | 7,322 | 12,868 | ||||||||||||||
Interest expense | 10,536 | 10,538 | 10,550 | 10,542 | 9,862 | ||||||||||||||
Total expenses | 304,116 | 267,195 | 243,053 | 250,536 | 308,413 | ||||||||||||||
Income before taxes | 179,168 | 180,925 | 134,322 | 107,704 | 89,154 | ||||||||||||||
Income tax (expense) benefit | (6,612 | ) | (2,744 | ) | (8,453 | ) | 4,573 | 1,842 | |||||||||||
Net income | 172,556 | 178,181 | 125,869 | 112,277 | 90,996 | ||||||||||||||
Net income attributable to noncontrolling interests | (30,635 | ) | (44,591 | ) | (28,068 | ) | (31,153 | ) | (12,167 | ) | |||||||||
Net income attributable to RenaissanceRe | 141,921 | 133,590 | 97,801 | 81,124 | 78,829 | ||||||||||||||
Dividends on preference shares | (5,596 | ) | (5,595 | ) | (5,595 | ) | (5,595 | ) | (5,596 | ) | |||||||||
Net income available to RenaissanceRe common shareholders | $ | 136,325 | $ | 127,995 | $ | 92,206 | $ | 75,529 | $ | 73,233 | |||||||||
Net income available to RenaissanceRe common shareholders per common share - basic | $ | 3.23 | $ | 2.97 | $ | 2.11 | $ | 1.68 | $ | 1.60 | |||||||||
Net income available to RenaissanceRe common shareholders per common share - diluted | $ | 3.22 | $ | 2.95 | $ | 2.09 | $ | 1.66 | $ | 1.59 | |||||||||
Operating income available to RenaissanceRe common shareholders per common share - diluted (1) | $ | 1.55 | $ | 1.51 | $ | 3.07 | $ | 2.58 | $ | 2.18 | |||||||||
Return on average common equity - annualized | 12.6 | % | 11.8 | % | 8.5 | % | 6.9 | % | 6.6 | % | |||||||||
Operating return on average common equity - annualized (1) | 6.1 | % | 6.1 | % | 12.5 | % | 10.7 | % | 9.1 | % |
(1) | See Comments on Regulation G for a reconciliation of non-GAAP financial measures. |
2 | ![]() |
RenaissanceRe Holdings Ltd. | |||||||
Summary Consolidated Statements of Operations | |||||||
Six months ended | |||||||
June 30, 2016 | June 30, 2015 | ||||||
Revenues | |||||||
Gross premiums written | $ | 1,621,261 | $ | 1,305,575 | |||
Net premiums written | $ | 1,031,591 | $ | 912,712 | |||
Increase in unearned premiums | (326,583 | ) | (236,124 | ) | |||
Net premiums earned | 705,008 | 676,588 | |||||
Net investment income | 82,987 | 78,311 | |||||
Net foreign exchange losses | (2,382 | ) | (4,870 | ) | |||
Equity in earnings of other ventures | 7,633 | 11,455 | |||||
Other income | 6,733 | 2,966 | |||||
Net realized and unrealized gains on investments | 131,425 | 15,037 | |||||
Total revenues | 931,404 | 779,487 | |||||
Expenses | |||||||
Net claims and claim expenses incurred | 294,355 | 246,197 | |||||
Acquisition expenses | 134,597 | 105,067 | |||||
Operational expenses | 107,308 | 100,294 | |||||
Corporate expenses | 13,977 | 58,401 | |||||
Interest expense | 21,074 | 15,178 | |||||
Total expenses | 571,311 | 525,137 | |||||
Income before taxes | 360,093 | 254,350 | |||||
Income tax (expense) benefit | (9,356 | ) | 49,746 | ||||
Net income | 350,737 | 304,096 | |||||
Net income attributable to noncontrolling interests | (75,226 | ) | (51,829 | ) | |||
Net income attributable to RenaissanceRe | 275,511 | 252,267 | |||||
Dividends on preference shares | (11,191 | ) | (11,191 | ) | |||
Net income available to RenaissanceRe common shareholders | $ | 264,320 | $ | 241,076 | |||
Net income available to RenaissanceRe common shareholders per common share - basic | $ | 6.20 | $ | 5.61 | |||
Net income available to RenaissanceRe common shareholders per common share - diluted | $ | 6.16 | $ | 5.56 | |||
Operating income available to RenaissanceRe common shareholders per common share - diluted (1) | $ | 3.06 | $ | 5.21 | |||
Return on average common equity - annualized | 12.2 | % | 11.8 | % | |||
Operating return on average common equity - annualized (1) | 6.1 | % | 11.0 | % |
(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 June 30, 2016 | |||||||||||||||||||
Catastrophe Reinsurance | Specialty Reinsurance | Lloyd's | Other | Total | |||||||||||||||
Gross premiums written | $ | 397,454 | $ | 200,733 | $ | 160,941 | $ | — | $ | 759,128 | |||||||||
Net premiums written | $ | 255,645 | $ | 132,420 | $ | 131,851 | $ | — | $ | 519,916 | |||||||||
Net premiums earned | $ | 141,616 | $ | 137,168 | $ | 72,618 | $ | — | $ | 351,402 | |||||||||
Net claims and claim expenses incurred | 56,131 | 67,701 | 43,832 | 86 | 167,750 | ||||||||||||||
Acquisition expenses | 16,227 | 34,127 | 18,651 | — | 69,005 | ||||||||||||||
Operational expenses | 18,685 | 19,959 | 12,408 | 21 | 51,073 | ||||||||||||||
Underwriting income (loss) | $ | 50,573 | $ | 15,381 | $ | (2,273 | ) | $ | (107 | ) | $ | 63,574 | |||||||
Net claims and claim expenses incurred - current accident year | $ | 70,321 | $ | 85,117 | $ | 41,567 | $ | — | $ | 197,005 | |||||||||
Net claims and claim expenses incurred - prior accident years | (14,190 | ) | (17,416 | ) | 2,265 | 86 | (29,255 | ) | |||||||||||
Net claims and claim expenses incurred - total | $ | 56,131 | $ | 67,701 | $ | 43,832 | $ | 86 | $ | 167,750 | |||||||||
Net claims and claim expense ratio - current accident year | 49.7 | % | 62.1 | % | 57.2 | % | 56.1 | % | |||||||||||
Net claims and claim expense ratio - prior accident years | (10.1 | )% | (12.7 | )% | 3.2 | % | (8.4 | )% | |||||||||||
Net claims and claim expense ratio - calendar year | 39.6 | % | 49.4 | % | 60.4 | % | 47.7 | % | |||||||||||
Underwriting expense ratio | 24.7 | % | 39.4 | % | 42.7 | % | 34.2 | % | |||||||||||
Combined ratio | 64.3 | % | 88.8 | % | 103.1 | % | 81.9 | % | |||||||||||
Three months ended June 30, 2015 | |||||||||||||||||||
Catastrophe Reinsurance | Specialty Reinsurance | Lloyd's | Other | Total | |||||||||||||||
Gross premiums written | $ | 385,366 | $ | 160,013 | $ | 116,618 | $ | — | $ | 661,997 | |||||||||
Net premiums written | $ | 270,490 | $ | 139,867 | $ | 98,320 | $ | — | $ | 508,677 | |||||||||
Net premiums earned | $ | 162,705 | $ | 155,584 | $ | 61,539 | $ | — | $ | 379,828 | |||||||||
Net claims and claim expenses incurred | 55,376 | 86,062 | 27,683 | 223 | 169,344 | ||||||||||||||
Acquisition expenses | 19,314 | 28,251 | 14,210 | (109 | ) | 61,666 | |||||||||||||
Operational expenses | 22,090 | 18,747 | 13,719 | 117 | 54,673 | ||||||||||||||
Underwriting income (loss) | $ | 65,925 | $ | 22,524 | $ | 5,927 | $ | (231 | ) | $ | 94,145 | ||||||||
Net claims and claim expenses incurred - current accident year | $ | 67,334 | $ | 104,315 | $ | 30,771 | $ | — | $ | 202,420 | |||||||||
Net claims and claim expenses incurred - prior accident years | (11,958 | ) | (18,253 | ) | (3,088 | ) | 223 | (33,076 | ) | ||||||||||
Net claims and claim expenses incurred - total | $ | 55,376 | $ | 86,062 | $ | 27,683 | $ | 223 | $ | 169,344 | |||||||||
Net claims and claim expense ratio - current accident year | 41.4 | % | 67.0 | % | 50.0 | % | 53.3 | % | |||||||||||
Net claims and claim expense ratio - prior accident years | (7.4 | )% | (11.7 | )% | (5.0 | )% | (8.7 | )% | |||||||||||
Net claims and claim expense ratio - calendar year | 34.0 | % | 55.3 | % | 45.0 | % | 44.6 | % | |||||||||||
Underwriting expense ratio | 25.5 | % | 30.2 | % | 45.4 | % | 30.6 | % | |||||||||||
Combined ratio | 59.5 | % | 85.5 | % | 90.4 | % | 75.2 | % |
4 | ![]() |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Consolidated Segment Underwriting Results | |||||||||||||||||||
Six months ended June 30, 2016 | |||||||||||||||||||
Catastrophe Reinsurance | Specialty Reinsurance | Lloyd's | Other | Total | |||||||||||||||
Gross premiums written | $ | 757,877 | $ | 569,722 | $ | 293,662 | $ | — | $ | 1,621,261 | |||||||||
Net premiums written | $ | 444,430 | $ | 392,511 | $ | 194,650 | $ | — | $ | 1,031,591 | |||||||||
Net premiums earned | $ | 278,601 | $ | 292,486 | $ | 133,921 | $ | — | $ | 705,008 | |||||||||
Net claims and claim expenses incurred | 63,951 | 159,553 | 70,848 | 3 | 294,355 | ||||||||||||||
Acquisition expenses | 25,807 | 75,852 | 32,938 | — | 134,597 | ||||||||||||||
Operational expenses | 38,953 | 41,732 | 26,542 | 81 | 107,308 | ||||||||||||||
Underwriting income (loss) | $ | 149,890 | $ | 15,349 | $ | 3,593 | $ | (84 | ) | $ | 168,748 | ||||||||
Net claims and claim expenses incurred - current accident year | $ | 84,204 | $ | 173,495 | $ | 67,515 | $ | — | $ | 325,214 | |||||||||
Net claims and claim expenses incurred - prior accident years | (20,253 | ) | (13,942 | ) | 3,333 | 3 | (30,859 | ) | |||||||||||
Net claims and claim expenses incurred - total | $ | 63,951 | $ | 159,553 | $ | 70,848 | $ | 3 | $ | 294,355 | |||||||||
Net claims and claim expense ratio - current accident year | 30.2 | % | 59.3 | % | 50.4 | % | 46.1 | % | |||||||||||
Net claims and claim expense ratio - prior accident years | (7.2 | )% | (4.7 | )% | 2.5 | % | (4.3 | )% | |||||||||||
Net claims and claim expense ratio - calendar year | 23.0 | % | 54.6 | % | 52.9 | % | 41.8 | % | |||||||||||
Underwriting expense ratio | 23.2 | % | 40.2 | % | 44.4 | % | 34.3 | % | |||||||||||
Combined ratio | 46.2 | % | 94.8 | % | 97.3 | % | 76.1 | % | |||||||||||
Six months ended June 30, 2015 | |||||||||||||||||||
Catastrophe Reinsurance | Specialty Reinsurance | Lloyd's | Other | Total | |||||||||||||||
Gross premiums written (1) | $ | 774,613 | $ | 284,304 | $ | 246,748 | $ | (90 | ) | $ | 1,305,575 | ||||||||
Net premiums written | $ | 493,130 | $ | 243,782 | $ | 175,889 | $ | (89 | ) | $ | 912,712 | ||||||||
Net premiums earned | $ | 306,472 | $ | 250,460 | $ | 119,745 | $ | (89 | ) | $ | 676,588 | ||||||||
Net claims and claim expenses incurred | 62,970 | 125,650 | 57,526 | 51 | 246,197 | ||||||||||||||
Acquisition expenses | 26,968 | 48,940 | 28,903 | 256 | 105,067 | ||||||||||||||
Operational expenses | 42,453 | 32,037 | 25,659 | 145 | 100,294 | ||||||||||||||
Underwriting income (loss) | $ | 174,081 | $ | 43,833 | $ | 7,657 | $ | (541 | ) | $ | 225,030 | ||||||||
Net claims and claim expenses incurred - current accident year | $ | 91,458 | $ | 153,579 | $ | 56,381 | $ | — | $ | 301,418 | |||||||||
Net claims and claim expenses incurred - prior accident years | (28,488 | ) | (27,929 | ) | 1,145 | 51 | (55,221 | ) | |||||||||||
Net claims and claim expenses incurred - total | $ | 62,970 | $ | 125,650 | $ | 57,526 | $ | 51 | $ | 246,197 | |||||||||
Net claims and claim expense ratio - current accident year | 29.8 | % | 61.3 | % | 47.1 | % | 44.5 | % | |||||||||||
Net claims and claim expense ratio - prior accident years | (9.3 | )% | (11.1 | )% | 0.9 | % | (8.1 | )% | |||||||||||
Net claims and claim expense ratio - calendar year | 20.5 | % | 50.2 | % | 48.0 | % | 36.4 | % | |||||||||||
Underwriting expense ratio | 22.7 | % | 32.3 | % | 45.6 | % | 30.3 | % | |||||||||||
Combined ratio | 43.2 | % | 82.5 | % | 93.6 | % | 66.7 | % |
5 | ![]() |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Gross Premiums Written and Managed Premiums | |||||||||||||||||||
Three months ended | |||||||||||||||||||
June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | |||||||||||||||
Catastrophe Reinsurance Segment | |||||||||||||||||||
Renaissance catastrophe premiums | $ | 251,695 | $ | 246,089 | $ | 11,207 | $ | 61,479 | $ | 243,246 | |||||||||
DaVinci catastrophe premiums | 145,759 | 114,334 | 1,119 | 20,213 | 142,120 | ||||||||||||||
Total Catastrophe Reinsurance segment gross premiums written | $ | 397,454 | $ | 360,423 | $ | 12,326 | $ | 81,692 | $ | 385,366 | |||||||||
Specialty Reinsurance Segment | |||||||||||||||||||
Casualty | $ | 87,989 | $ | 147,801 | $ | 93,004 | $ | 116,851 | $ | 84,953 | |||||||||
Credit | 71,395 | 138,630 | 141,939 | 66,839 | 19,911 | ||||||||||||||
Property | 18,235 | 39,624 | 14,176 | 10,405 | 23,215 | ||||||||||||||
Other | 23,114 | 42,934 | 18,256 | 20,277 | 31,934 | ||||||||||||||
Total Specialty Reinsurance segment gross premiums written | $ | 200,733 | $ | 368,989 | $ | 267,375 | $ | 214,372 | $ | 160,013 | |||||||||
Lloyd's Segment | |||||||||||||||||||
Casualty | $ | 62,110 | $ | 70,928 | $ | 37,161 | $ | 41,352 | $ | 48,426 | |||||||||
Catastrophe | 39,602 | 23,033 | 2,840 | 7,465 | 33,379 | ||||||||||||||
Property | 38,662 | 21,879 | 14,578 | 18,717 | 24,130 | ||||||||||||||
Credit | 2,860 | 4,204 | 274 | 3,377 | 1,534 | ||||||||||||||
Other | 17,707 | 12,677 | 1,539 | 2,667 | 9,149 | ||||||||||||||
Total Lloyd's segment gross premiums written | $ | 160,941 | $ | 132,721 | $ | 56,392 | $ | 73,578 | $ | 116,618 | |||||||||
Managed Premiums (1) | |||||||||||||||||||
Total Catastrophe Reinsurance segment gross premiums written | $ | 397,454 | $ | 360,423 | $ | 12,326 | $ | 81,692 | $ | 385,366 | |||||||||
Catastrophe premiums written in the Lloyd's segment | 39,602 | 23,033 | 2,840 | 7,465 | 33,379 | ||||||||||||||
Catastrophe premiums written on behalf of our joint venture, Top Layer Re (2) | 25,689 | 11,096 | 1,923 | 1,089 | 21,411 | ||||||||||||||
Catastrophe premiums written by the Company in its Catastrophe Reinsurance segment and ceded to Top Layer Re | (896 | ) | (8,367 | ) | — | — | (835 | ) | |||||||||||
Total managed catastrophe premiums (1) | $ | 461,849 | $ | 386,185 | $ | 17,089 | $ | 90,246 | $ | 439,321 |
(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 | |||||||
Six months ended | |||||||
June 30, 2016 | June 30, 2015 | ||||||
Catastrophe Reinsurance Segment | |||||||
Renaissance catastrophe premiums | $ | 497,784 | $ | 508,976 | |||
DaVinci catastrophe premiums | 260,093 | 265,637 | |||||
Total Catastrophe Reinsurance segment gross premiums written | $ | 757,877 | $ | 774,613 | |||
Specialty Reinsurance Segment | |||||||
Casualty | $ | 235,790 | $ | 147,058 | |||
Credit | 210,025 | 48,622 | |||||
Property | 57,859 | 28,424 | |||||
Other | 66,048 | 60,200 | |||||
Total Specialty Reinsurance segment gross premiums written | $ | 569,722 | $ | 284,304 | |||
Lloyd's Segment | |||||||
Casualty | $ | 133,038 | $ | 110,397 | |||
Catastrophe | 62,635 | 59,024 | |||||
Property | 60,541 | 47,899 | |||||
Credit | 7,064 | 4,119 | |||||
Other | 30,384 | 25,309 | |||||
Total Lloyd's segment gross premiums written | $ | 293,662 | $ | 246,748 | |||
Managed Premiums (1) | |||||||
Total Catastrophe Reinsurance segment gross premiums written | $ | 757,877 | $ | 774,613 | |||
Catastrophe premiums written in the Lloyd's segment | 62,635 | 59,024 | |||||
Catastrophe premiums written on behalf of our joint venture, Top Layer Re (2) | 36,785 | 35,575 | |||||
Catastrophe premiums written by the Company in its Catastrophe Reinsurance segment and ceded to Top Layer Re | (9,263 | ) | (6,785 | ) | |||
Total managed catastrophe premiums (1) | $ | 848,034 | $ | 862,427 |
(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 | |||||||||||||||||||
June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | |||||||||||||||
Revenues | |||||||||||||||||||
Gross premiums written | $ | 146,519 | $ | 114,503 | $ | 1,269 | $ | 20,326 | $ | 143,456 | |||||||||
Net premiums written | $ | 133,513 | $ | 88,506 | $ | 1,244 | $ | 14,598 | $ | 132,977 | |||||||||
(Increase) decrease in unearned premiums | (70,095 | ) | (30,106 | ) | 61,795 | 47,452 | (69,088 | ) | |||||||||||
Net premiums earned | 63,418 | 58,400 | 63,039 | 62,050 | 63,889 | ||||||||||||||
Net investment income | 7,162 | 6,869 | 7,241 | 7,171 | 6,812 | ||||||||||||||
Net foreign exchange gains (losses) | 594 | 407 | (225 | ) | (233 | ) | (9 | ) | |||||||||||
Other loss | (86 | ) | — | — | — | — | |||||||||||||
Net realized and unrealized gains (losses) on investments | 11,004 | 15,239 | (13,120 | ) | (2,044 | ) | (8,630 | ) | |||||||||||
Total revenues | 82,092 | 80,915 | 56,935 | 66,944 | 62,062 | ||||||||||||||
Expenses | |||||||||||||||||||
Net claims and claim expenses incurred | 23,231 | (518 | ) | (6,954 | ) | 4,675 | 22,852 | ||||||||||||
Acquisition expenses | 12,916 | 16,096 | 16,883 | 15,683 | 13,703 | ||||||||||||||
Operational and corporate expenses | 6,786 | 6,860 | 7,211 | 7,285 | 7,081 | ||||||||||||||
Interest expense | 1,859 | 1,858 | 1,813 | 1,813 | 1,504 | ||||||||||||||
Total expenses | 44,792 | 24,296 | 18,953 | 29,456 | 45,140 | ||||||||||||||
Income before taxes | 37,300 | 56,619 | 37,982 | 37,488 | 16,922 | ||||||||||||||
Income tax (expense) benefit | (84 | ) | (91 | ) | (2 | ) | 188 | (153 | ) | ||||||||||
Net income available to DaVinciRe common shareholders | $ | 37,216 | $ | 56,528 | $ | 37,980 | $ | 37,676 | $ | 16,769 | |||||||||
Net claims and claim expenses incurred - current accident year | $ | 30,095 | $ | 3,546 | $ | 5,477 | $ | 9,649 | $ | 26,832 | |||||||||
Net claims and claim expenses incurred - prior accident years | (6,864 | ) | (4,064 | ) | (12,431 | ) | (4,974 | ) | (3,980 | ) | |||||||||
Net claims and claim expenses incurred - total | $ | 23,231 | $ | (518 | ) | $ | (6,954 | ) | $ | 4,675 | $ | 22,852 | |||||||
Net claims and claim expense ratio - current accident year | 47.5 | % | 6.1 | % | 8.7 | % | 15.6 | % | 42.0 | % | |||||||||
Net claims and claim expense ratio - prior accident years | (10.9 | )% | (7.0 | )% | (19.7 | )% | (8.1 | )% | (6.2 | )% | |||||||||
Net claims and claim expense ratio - calendar year | 36.6 | % | (0.9 | )% | (11.0 | )% | 7.5 | % | 35.8 | % | |||||||||
Underwriting expense ratio | 31.1 | % | 39.3 | % | 38.2 | % | 37.0 | % | 32.5 | % | |||||||||
Combined ratio | 67.7 | % | 38.4 | % | 27.2 | % | 44.5 | % | 68.3 | % |
8 | ![]() |
DaVinciRe Holdings Ltd. and Subsidiary | |||||||
Consolidated Statements of Operations | |||||||
Six months ended | |||||||
June 30, 2016 | June 30, 2015 | ||||||
Revenues | |||||||
Gross premiums written | $ | 261,022 | $ | 267,667 | |||
Net premiums written | $ | 222,019 | $ | 230,342 | |||
Increase in unearned premiums | (100,201 | ) | (105,408 | ) | |||
Net premiums earned | 121,818 | 124,934 | |||||
Net investment income | 14,031 | 13,027 | |||||
Net foreign exchange gains (losses) | 1,001 | (594 | ) | ||||
Other loss | (86 | ) | — | ||||
Net realized and unrealized losses on investments | 26,243 | 3,408 | |||||
Total revenues | 163,007 | 140,775 | |||||
Expenses | |||||||
Net claims and claim expenses incurred | 22,713 | 24,789 | |||||
Acquisition expenses | 29,012 | 30,243 | |||||
Operational and corporate expenses | 13,646 | 14,319 | |||||
Interest expense | 3,717 | 2,443 | |||||
Total expenses | 69,088 | 71,794 | |||||
Income before taxes | 93,919 | 68,981 | |||||
Income tax expense | (175 | ) | (189 | ) | |||
Net income available to DaVinciRe common shareholders | $ | 93,744 | $ | 68,792 | |||
Net claims and claim expenses incurred - current accident year | $ | 33,641 | $ | 36,941 | |||
Net claims and claim expenses incurred - prior accident years | (10,928 | ) | (12,152 | ) | |||
Net claims and claim expenses incurred - total | $ | 22,713 | $ | 24,789 | |||
Net claims and claim expense ratio - current accident year | 27.6 | % | 29.6 | % | |||
Net claims and claim expense ratio - prior accident years | (9.0 | )% | (9.8 | )% | |||
Net claims and claim expense ratio - calendar year | 18.6 | % | 19.8 | % | |||
Underwriting expense ratio | 35.1 | % | 35.7 | % | |||
Combined ratio | 53.7 | % | 55.5 | % |
9 | ![]() |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Summary Consolidated Balance Sheets | |||||||||||||||||||
June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | |||||||||||||||
Assets | |||||||||||||||||||
Fixed maturity investments trading, at fair value | $ | 7,073,129 | $ | 6,890,592 | $ | 6,765,005 | $ | 6,905,302 | $ | 6,591,434 | |||||||||
Fixed maturity investments available for sale, at fair value | 12,434 | 13,985 | 17,813 | 19,905 | 21,754 | ||||||||||||||
Total fixed maturity investments, at fair value | 7,085,563 | 6,904,577 | 6,782,818 | 6,925,207 | 6,613,188 | ||||||||||||||
Short term investments, at fair value | 1,000,206 | 1,171,523 | 1,208,401 | 998,906 | 1,543,191 | ||||||||||||||
Equity investments trading, at fair value | 301,298 | 335,509 | 393,877 | 462,198 | 493,056 | ||||||||||||||
Other investments, at fair value | 489,702 | 496,900 | 481,621 | 483,958 | 504,693 | ||||||||||||||
Investments in other ventures, under equity method | 133,448 | 131,692 | 132,351 | 129,495 | 126,139 | ||||||||||||||
Total investments | 9,010,217 | 9,040,201 | 8,999,068 | 8,999,764 | 9,280,267 | ||||||||||||||
Cash and cash equivalents | 455,521 | 449,149 | 506,885 | 524,546 | 398,090 | ||||||||||||||
Premiums receivable | 1,332,667 | 1,094,116 | 778,009 | 864,198 | 1,068,819 | ||||||||||||||
Prepaid reinsurance premiums | 533,092 | 444,954 | 230,671 | 258,445 | 276,231 | ||||||||||||||
Reinsurance recoverable | 222,006 | 167,228 | 134,526 | 141,416 | 136,464 | ||||||||||||||
Accrued investment income | 37,900 | 37,492 | 39,749 | 40,855 | 37,480 | ||||||||||||||
Deferred acquisition costs | 331,152 | 287,291 | 199,380 | 213,599 | 173,408 | ||||||||||||||
Receivable for investments sold | 203,165 | 204,306 | 220,834 | 321,756 | 149,063 | ||||||||||||||
Other assets | 160,873 | 167,514 | 181,011 | 266,318 | 251,830 | ||||||||||||||
Goodwill and other intangibles | 258,170 | 261,662 | 265,154 | 270,213 | 275,743 | ||||||||||||||
Total assets | $ | 12,544,763 | $ | 12,153,913 | $ | 11,555,287 | $ | 11,901,110 | $ | 12,047,395 | |||||||||
Liabilities, Noncontrolling Interests and Shareholders' Equity | |||||||||||||||||||
Liabilities | |||||||||||||||||||
Reserve for claims and claim expenses | $ | 2,844,243 | $ | 2,811,523 | $ | 2,767,045 | $ | 2,796,062 | $ | 2,847,648 | |||||||||
Unearned premiums | 1,518,106 | 1,261,454 | 889,102 | 1,042,012 | 1,155,596 | ||||||||||||||
Debt | 954,577 | 957,536 | 960,495 | 963,610 | 966,571 | ||||||||||||||
Reinsurance balances payable | 753,699 | 618,344 | 523,974 | 533,174 | 512,019 | ||||||||||||||
Payable for investments purchased | 432,926 | 454,593 | 391,378 | 602,576 | 511,251 | ||||||||||||||
Other liabilities | 215,592 | 208,533 | 245,145 | 244,005 | 228,554 | ||||||||||||||
Total liabilities | 6,719,143 | 6,311,983 | 5,777,139 | 6,181,439 | 6,221,639 | ||||||||||||||
Redeemable noncontrolling interest | 1,122,403 | 1,081,337 | 1,045,964 | 1,022,028 | 988,812 | ||||||||||||||
Shareholders' Equity | |||||||||||||||||||
Preference shares | 400,000 | 400,000 | 400,000 | 400,000 | 400,000 | ||||||||||||||
Common shares | 41,496 | 43,095 | 43,701 | 44,121 | 46,013 | ||||||||||||||
Additional paid-in capital | 242,561 | 422,422 | 507,674 | 551,683 | 750,484 | ||||||||||||||
Accumulated other comprehensive income | 2,337 | 1,665 | 2,108 | 2,260 | 2,993 | ||||||||||||||
Retained earnings | 4,016,823 | 3,893,411 | 3,778,701 | 3,699,579 | 3,637,454 | ||||||||||||||
Total shareholders' equity attributable to RenaissanceRe | 4,703,217 | 4,760,593 | 4,732,184 | 4,697,643 | 4,836,944 | ||||||||||||||
Total liabilities, noncontrolling interests and shareholders' equity | $ | 12,544,763 | $ | 12,153,913 | $ | 11,555,287 | $ | 11,901,110 | $ | 12,047,395 | |||||||||
Book value per common share | $ | 103.70 | $ | 101.19 | $ | 99.13 | $ | 97.41 | $ | 96.43 |
10 | ![]() |
RenaissanceRe Holdings Ltd. | ||||||||||||||||||||||||||||||||||
Investment Portfolio - Composition | ||||||||||||||||||||||||||||||||||
TYPE OF INVESTMENT | June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | |||||||||||||||||||||||||||||
U.S. treasuries | $ | 2,660,051 | 29.5 | % | $ | 2,475,747 | 27.4 | % | $ | 2,064,944 | 23.0 | % | $ | 1,984,841 | 22.1 | % | $ | 2,020,746 | 21.8 | % | ||||||||||||||
Agencies | 126,549 | 1.4 | % | 85,270 | 0.9 | % | 137,976 | 1.5 | % | 131,524 | 1.5 | % | 144,947 | 1.6 | % | |||||||||||||||||||
Municipal | 561,456 | 6.2 | % | 564,555 | 6.3 | % | 583,282 | 6.5 | % | 675,349 | 7.5 | % | 806,724 | 8.7 | % | |||||||||||||||||||
Non-U.S. government (Sovereign debt) | 313,699 | 3.5 | % | 353,756 | 3.9 | % | 334,981 | 3.7 | % | 393,320 | 4.4 | % | 370,613 | 4.0 | % | |||||||||||||||||||
Non-U.S. government-backed corporate | 157,606 | 1.7 | % | 164,724 | 1.8 | % | 138,994 | 1.5 | % | 172,548 | 1.9 | % | 172,381 | 1.9 | % | |||||||||||||||||||
Corporate | 1,840,407 | 20.5 | % | 1,833,825 | 20.3 | % | 2,055,323 | 22.9 | % | 2,141,859 | 23.8 | % | 1,865,369 | 20.1 | % | |||||||||||||||||||
Agency mortgage-backed | 513,666 | 5.7 | % | 498,093 | 5.5 | % | 504,518 | 5.6 | % | 497,092 | 5.5 | % | 475,870 | 5.1 | % | |||||||||||||||||||
Non-agency mortgage-backed | 258,507 | 2.8 | % | 256,572 | 2.8 | % | 270,763 | 3.0 | % | 268,389 | 3.0 | % | 263,329 | 2.8 | % | |||||||||||||||||||
Commercial mortgage-backed | 503,475 | 5.6 | % | 540,940 | 6.0 | % | 561,496 | 6.2 | % | 552,617 | 6.1 | % | 426,895 | 4.6 | % | |||||||||||||||||||
Asset-backed | 150,147 | 1.7 | % | 131,095 | 1.5 | % | 130,541 | 1.4 | % | 107,668 | 1.2 | % | 66,314 | 0.7 | % | |||||||||||||||||||
Total fixed maturity investments, at fair value | 7,085,563 | 78.6 | % | 6,904,577 | 76.4 | % | 6,782,818 | 75.3 | % | 6,925,207 | 77.0 | % | 6,613,188 | 71.3 | % | |||||||||||||||||||
Short term investments, at fair value | 1,000,206 | 11.1 | % | 1,171,523 | 13.0 | % | 1,208,401 | 13.4 | % | 998,906 | 11.1 | % | 1,543,191 | 16.6 | % | |||||||||||||||||||
Equity investments trading, at fair value | 301,298 | 3.4 | % | 335,509 | 3.7 | % | 393,877 | 4.4 | % | 462,198 | 5.1 | % | 493,056 | 5.3 | % | |||||||||||||||||||
Other investments, at fair value | 489,702 | 5.4 | % | 496,900 | 5.4 | % | 481,621 | 5.4 | % | 483,958 | 5.3 | % | 504,693 | 5.4 | % | |||||||||||||||||||
Total managed investment portfolio | 8,876,769 | 98.5 | % | 8,908,509 | 98.5 | % | 8,866,717 | 98.5 | % | 8,870,269 | 98.5 | % | 9,154,128 | 98.6 | % | |||||||||||||||||||
Investments in other ventures, under equity method | 133,448 | 1.5 | % | 131,692 | 1.5 | % | 132,351 | 1.5 | % | 129,495 | 1.5 | % | 126,139 | 1.4 | % | |||||||||||||||||||
Total investments | $ | 9,010,217 | 100.0 | % | $ | 9,040,201 | 100.0 | % | $ | 8,999,068 | 100.0 | % | $ | 8,999,764 | 100.0 | % | $ | 9,280,267 | 100.0 | % | ||||||||||||||
CREDIT QUALITY OF FIXED MATURITY INVESTMENTS | ||||||||||||||||||||||||||||||||||
AAA | $ | 1,006,357 | 14.2 | % | $ | 1,104,041 | 16.0 | % | $ | 1,017,693 | 15.0 | % | $ | 1,029,717 | 14.9 | % | $ | 850,676 | 12.9 | % | ||||||||||||||
AA | 4,018,887 | 56.7 | % | 3,757,452 | 54.4 | % | 3,495,895 | 51.5 | % | 3,551,893 | 51.3 | % | 3,622,348 | 54.8 | % | |||||||||||||||||||
A | 669,716 | 9.5 | % | 712,348 | 10.3 | % | 779,637 | 11.5 | % | 1,020,516 | 14.7 | % | 979,776 | 14.8 | % | |||||||||||||||||||
BBB | 527,498 | 7.5 | % | 521,656 | 7.6 | % | 765,988 | 11.3 | % | 659,789 | 9.5 | % | 558,221 | 8.4 | % | |||||||||||||||||||
Non-investment grade and not rated | 863,105 | 12.1 | % | 809,080 | 11.7 | % | 723,605 | 10.7 | % | 663,292 | 9.6 | % | 602,167 | 9.1 | % | |||||||||||||||||||
Total fixed maturity investments, at fair value | $ | 7,085,563 | 100.0 | % | $ | 6,904,577 | 100.0 | % | $ | 6,782,818 | 100.0 | % | $ | 6,925,207 | 100.0 | % | $ | 6,613,188 | 100.0 | % | ||||||||||||||
MATURITY PROFILE OF FIXED MATURITY INVESTMENTS | ||||||||||||||||||||||||||||||||||
Due in less than one year | $ | 266,356 | 3.8 | % | $ | 215,975 | 3.1 | % | $ | 252,257 | 3.7 | % | $ | 265,366 | 3.8 | % | $ | 219,382 | 3.3 | % | ||||||||||||||
Due after one through five years | 4,163,134 | 58.8 | % | 4,011,832 | 58.1 | % | 3,833,261 | 56.5 | % | 3,876,482 | 56.0 | % | 3,859,616 | 58.4 | % | |||||||||||||||||||
Due after five through ten years | 1,049,939 | 14.8 | % | 1,035,877 | 15.0 | % | 1,011,132 | 14.9 | % | 1,028,728 | 14.9 | % | 970,723 | 14.7 | % | |||||||||||||||||||
Due after ten years | 180,339 | 2.5 | % | 214,193 | 3.1 | % | 218,850 | 3.3 | % | 328,865 | 4.7 | % | 331,059 | 5.0 | % | |||||||||||||||||||
Mortgage-backed securities | 1,275,648 | 18.0 | % | 1,295,605 | 18.8 | % | 1,336,777 | 19.7 | % | 1,318,098 | 19.0 | % | 1,166,094 | 17.6 | % | |||||||||||||||||||
Asset-backed securities | 150,147 | 2.1 | % | 131,095 | 1.9 | % | 130,541 | 1.9 | % | 107,668 | 1.6 | % | 66,314 | 1.0 | % | |||||||||||||||||||
Total fixed maturity investments, at fair value | $ | 7,085,563 | 100.0 | % | $ | 6,904,577 | 100.0 | % | $ | 6,782,818 | 100.0 | % | $ | 6,925,207 | 100.0 | % | $ | 6,613,188 | 100.0 | % | ||||||||||||||
Weighted average effective yield of fixed maturity and short term investments | 1.8 | % | 2.0 | % | 2.2 | % | 1.9 | % | 1.7 | % | ||||||||||||||||||||||||
Average duration of fixed maturities and short term investments | 2.2 | 2.2 | 2.3 | 2.3 | 2.3 |
11 | ![]() |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Summary of Other Investments | |||||||||||||||||||
June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | |||||||||||||||
TYPE OF INVESTMENT | |||||||||||||||||||
Catastrophe bonds | $ | 275,553 | $ | 272,397 | $ | 241,253 | $ | 233,223 | $ | 228,998 | |||||||||
Private equity partnerships | 190,316 | 200,465 | 214,848 | 226,000 | 250,796 | ||||||||||||||
Senior secured bank loan fund | 22,212 | 22,334 | 23,231 | 22,345 | 22,561 | ||||||||||||||
Hedge funds | 1,621 | 1,704 | 2,289 | 2,390 | 2,338 | ||||||||||||||
Total other investments, at fair value | $ | 489,702 | $ | 496,900 | $ | 481,621 | $ | 483,958 | $ | 504,693 | |||||||||
TYPE OF INVESTMENT | |||||||||||||||||||
Catastrophe bonds | 56.3 | % | 54.8 | % | 50.1 | % | 48.2 | % | 45.4 | % | |||||||||
Private equity partnerships | 38.9 | % | 40.4 | % | 44.6 | % | 46.7 | % | 49.6 | % | |||||||||
Senior secured bank loan fund | 4.5 | % | 4.5 | % | 4.8 | % | 4.6 | % | 4.5 | % | |||||||||
Hedge funds | 0.3 | % | 0.3 | % | 0.5 | % | 0.5 | % | 0.5 | % | |||||||||
Total other investments, at fair value | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
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Total Investment Result | |||||||||||||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||||||||||||
June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | June 30, 2016 | June 30, 2015 | |||||||||||||||||||||
Fixed maturity investments | $ | 46,091 | $ | 36,006 | $ | 38,047 | $ | 37,023 | $ | 33,791 | $ | 82,097 | $ | 59,730 | |||||||||||||
Short term investments | 1,227 | 1,000 | 466 | 267 | 297 | 2,227 | 494 | ||||||||||||||||||||
Equity investments trading | 865 | 1,663 | 2,038 | 1,791 | 1,913 | 2,528 | 4,517 | ||||||||||||||||||||
Other investments | |||||||||||||||||||||||||||
Private equity investments | 4,356 | (9,358 | ) | 8,260 | (14,617 | ) | 5,431 | (5,002 | ) | 15,838 | |||||||||||||||||
Other | 5,035 | 3,309 | 891 | 7,373 | 668 | 8,344 | 4,182 | ||||||||||||||||||||
Cash and cash equivalents | 209 | 129 | 112 | 80 | 127 | 338 | 275 | ||||||||||||||||||||
57,783 | 32,749 | 49,814 | 31,917 | 42,227 | 90,532 | 85,036 | |||||||||||||||||||||
Investment expenses | (3,659 | ) | (3,886 | ) | (3,896 | ) | (3,579 | ) | (3,623 | ) | (7,545 | ) | (6,725 | ) | |||||||||||||
Net investment income | 54,124 | 28,863 | 45,918 | 28,338 | 38,604 | 82,987 | 78,311 | ||||||||||||||||||||
Gross realized gains | 22,661 | 17,750 | 11,124 | 9,160 | 8,672 | 40,411 | 30,204 | ||||||||||||||||||||
Gross realized losses | (7,804 | ) | (14,665 | ) | (13,487 | ) | (13,720 | ) | (21,552 | ) | (22,469 | ) | (26,423 | ) | |||||||||||||
Net realized gains (losses) on fixed maturity investments | 14,857 | 3,085 | (2,363 | ) | (4,560 | ) | (12,880 | ) | 17,942 | 3,781 | |||||||||||||||||
Net unrealized gains (losses) on fixed maturity investments trading | 44,271 | 85,465 | (52,984 | ) | 10,208 | (48,104 | ) | 129,736 | (22,132 | ) | |||||||||||||||||
Net realized and unrealized (losses) gains on investments-related derivatives | (9,151 | ) | (19,449 | ) | 6,447 | (16,612 | ) | 19,816 | (28,600 | ) | 15,608 | ||||||||||||||||
Net realized gains (losses) on equity investments trading | 14,729 | (818 | ) | 149 | (114 | ) | 8,832 | 13,911 | 16,313 | ||||||||||||||||||
Net unrealized gains (losses) on equity investments trading | 5,066 | (6,630 | ) | 5,934 | (30,060 | ) | 5,624 | (1,564 | ) | 1,467 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 69,772 | 61,653 | (42,817 | ) | (41,138 | ) | (26,712 | ) | 131,425 | 15,037 | |||||||||||||||||
Change in net unrealized gains on fixed maturity investments available for sale | (90 | ) | (269 | ) | (257 | ) | (243 | ) | (560 | ) | (359 | ) | (743 | ) | |||||||||||||
Total investment result | $ | 123,806 | $ | 90,247 | $ | 2,844 | $ | (13,043 | ) | $ | 11,332 | $ | 214,053 | $ | 92,605 | ||||||||||||
Total investment return - annualized | 5.5 | % | 4.0 | % | 0.1 | % | (0.6 | )% | 0.5 | % | 4.7 | % | 2.2 | % |
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RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||||||||||||||||
Investment Portfolio - Effective Yield and Credit Rating | |||||||||||||||||||||||||||||||||||||
Credit Rating (1) | |||||||||||||||||||||||||||||||||||||
June 30, 2016 | Amortized Cost | Fair Value | % of Total Investment Portfolio | Weighted Average Effective Yield | AAA | AA | A | BBB | Non- Investment Grade | Not Rated | |||||||||||||||||||||||||||
Short term investments | $ | 1,000,206 | $ | 1,000,206 | 11.1 | % | 0.5 | % | $ | 986,778 | $ | 13,191 | $ | — | $ | — | $ | — | $ | 237 | |||||||||||||||||
100.0 | % | 98.7 | % | 1.3 | % | — | % | — | % | — | % | — | % | ||||||||||||||||||||||||
Fixed maturity investments | |||||||||||||||||||||||||||||||||||||
U.S. treasuries | 2,630,226 | 2,660,051 | 29.5 | % | 0.7 | % | — | 2,660,051 | — | — | — | — | |||||||||||||||||||||||||
Agencies | |||||||||||||||||||||||||||||||||||||
Fannie Mae and Freddie Mac | 59,040 | 59,393 | 0.7 | % | 1.1 | % | — | 59,393 | — | — | — | — | |||||||||||||||||||||||||
Other agencies | 65,676 | 67,156 | 0.7 | % | 1.4 | % | — | 67,156 | — | — | — | — | |||||||||||||||||||||||||
Total agencies | 124,716 | 126,549 | 1.4 | % | 1.3 | % | — | 126,549 | — | — | — | — | |||||||||||||||||||||||||
Municipal | 546,102 | 561,456 | 6.2 | % | 1.6 | % | 140,946 | 303,244 | 90,833 | 26,433 | — | — | |||||||||||||||||||||||||
Non-U.S. government (Sovereign debt) | 318,499 | 313,699 | 3.5 | % | 1.0 | % | 205,509 | 81,205 | 18,687 | 8,298 | — | — | |||||||||||||||||||||||||
Non-U.S. government-backed corporate | 164,846 | 157,606 | 1.7 | % | 1.0 | % | 80,214 | 75,571 | — | 1,821 | — | — | |||||||||||||||||||||||||
Corporate | 1,823,646 | 1,840,407 | 20.5 | % | 3.7 | % | 44,804 | 122,081 | 537,323 | 469,021 | 645,882 | 21,296 | |||||||||||||||||||||||||
Mortgage-backed | |||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | |||||||||||||||||||||||||||||||||||||
Agency securities | 511,877 | 513,666 | 5.7 | % | 2.0 | % | — | 513,666 | — | — | — | — | |||||||||||||||||||||||||
Non-agency securities - Alt A | 182,006 | 183,518 | 2.0 | % | 5.5 | % | 6,259 | 17,850 | 7,281 | 13,152 | 132,354 | 6,622 | |||||||||||||||||||||||||
Non-agency securities - Prime | 72,731 | 74,989 | 0.8 | % | 4.4 | % | 1,357 | 8,589 | 2,453 | 5,639 | 53,923 | 3,028 | |||||||||||||||||||||||||
Total residential mortgage-backed | 766,614 | 772,173 | 8.5 | % | 3.1 | % | 7,616 | 540,105 | 9,734 | 18,791 | 186,277 | 9,650 | |||||||||||||||||||||||||
Commercial mortgage-backed | 493,873 | 503,475 | 5.6 | % | 2.8 | % | 384,295 | 102,907 | 13,139 | 3,134 | — | — | |||||||||||||||||||||||||
Total mortgage-backed | 1,260,487 | 1,275,648 | 14.1 | % | 3.0 | % | 391,911 | 643,012 | 22,873 | 21,925 | 186,277 | 9,650 | |||||||||||||||||||||||||
Asset-backed | |||||||||||||||||||||||||||||||||||||
Collateralized loan obligations | 88,094 | 88,023 | 1.0 | % | 2.4 | % | 82,070 | 5,953 | — | — | — | — | |||||||||||||||||||||||||
Credit cards | 32,290 | 32,836 | 0.4 | % | 1.2 | % | 32,836 | — | — | — | — | — | |||||||||||||||||||||||||
Auto loans | 21,238 | 21,383 | 0.2 | % | 1.3 | % | 21,183 | 200 | — | — | — | — | |||||||||||||||||||||||||
Student loans | 6,696 | 6,610 | 0.1 | % | 1.9 | % | 5,589 | 1,021 | — | — | — | — | |||||||||||||||||||||||||
Other | 1,284 | 1,295 | — | % | 2.3 | % | 1,295 | — | — | — | — | — | |||||||||||||||||||||||||
Total asset-backed | 149,602 | 150,147 | 1.7 | % | 1.9 | % | 142,973 | 7,174 | — | — | — | — | |||||||||||||||||||||||||
Total securitized assets | 1,410,089 | 1,425,795 | 15.8 | % | 2.9 | % | 534,884 | 650,186 | 22,873 | 21,925 | 186,277 | 9,650 | |||||||||||||||||||||||||
Total fixed maturity investments | 7,018,124 | 7,085,563 | 78.6 | % | 2.0 | % | 1,006,357 | 4,018,887 | 669,716 | 527,498 | 832,159 | 30,946 | |||||||||||||||||||||||||
100.0 | % | 14.2 | % | 56.7 | % | 9.5 | % | 7.5 | % | 11.7 | % | 0.4 | % | ||||||||||||||||||||||||
Equity investments trading | 301,298 | 3.4 | % | — | — | — | — | — | 301,298 | ||||||||||||||||||||||||||||
100.0 | % | — | % | — | % | — | % | — | % | — | % | 100.0 | % | ||||||||||||||||||||||||
Other investments | |||||||||||||||||||||||||||||||||||||
Catastrophe bonds | 275,553 | 3.1 | % | — | — | — | — | 275,553 | — | ||||||||||||||||||||||||||||
Private equity partnerships | 190,316 | 2.1 | % | — | — | — | — | — | 190,316 | ||||||||||||||||||||||||||||
Senior secured bank loan fund | 22,212 | 0.2 | % | — | — | — | — | — | 22,212 | ||||||||||||||||||||||||||||
Hedge funds | 1,621 | — | % | — | — | — | — | — | 1,621 | ||||||||||||||||||||||||||||
Total other investments | 489,702 | 5.4 | % | — | — | — | — | 275,553 | 214,149 | ||||||||||||||||||||||||||||
100.0 | % | — | % | — | % | — | % | — | % | 56.3 | % | 43.7 | % | ||||||||||||||||||||||||
Investments in other ventures | 133,448 | 1.5 | % | — | — | — | — | — | 133,448 | ||||||||||||||||||||||||||||
100.0 | % | — | % | — | % | — | % | — | % | — | % | 100.0 | % | ||||||||||||||||||||||||
Total investment portfolio | $ | 9,010,217 | 100.0 | % | $ | 1,993,135 | $ | 4,032,078 | $ | 669,716 | $ | 527,498 | $ | 1,107,712 | $ | 680,078 | |||||||||||||||||||||
100.0 | % | 22.1 | % | 44.8 | % | 7.4 | % | 5.9 | % | 12.3 | % | 7.5 | % |
(1) | The credit ratings included in this table are those assigned by Standard & Poor’s Corporation ("S&P"). When ratings provided by S&P were not available, ratings from other nationally recognized rating agencies were used. The Company has grouped short term investments with an A-1+ and A-1 short term issue credit rating as AAA, short term investments with A-2 short term issue credit rating as AA and short term investments with an A-3 short term issue credit rating as A. |
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RenaissanceRe Holdings Ltd. | ||||||||||||||||||||
Investment Portfolio - Change in Portfolio Composition | ||||||||||||||||||||
June 30, 2016 | December 31, 2015 | Change | ||||||||||||||||||
Fair Value | % of Total Managed Investment Portfolio | Fair Value | % of Total Managed Investment Portfolio | $ | % | |||||||||||||||
Short term investments | $ | 1,000,206 | 11.1 | % | $ | 1,208,401 | 13.4 | % | $ | (208,195 | ) | (2.3 | )% | |||||||
Fixed maturity investments | ||||||||||||||||||||
U.S. treasuries | 2,660,051 | 29.5 | % | 2,064,944 | 23.0 | % | 595,107 | 6.5 | % | |||||||||||
Agencies | ||||||||||||||||||||
Fannie Mae and Freddie Mac | 59,393 | 0.7 | % | 65,390 | 0.7 | % | (5,997 | ) | — | % | ||||||||||
Other agencies | 67,156 | 0.7 | % | 72,586 | 0.8 | % | (5,430 | ) | (0.1 | )% | ||||||||||
Total agencies | 126,549 | 1.4 | % | 137,976 | 1.5 | % | (11,427 | ) | (0.1 | )% | ||||||||||
Municipal | 561,456 | 6.2 | % | 583,282 | 6.5 | % | (21,826 | ) | (0.3 | )% | ||||||||||
Non-U.S. government (Sovereign debt) | 313,699 | 3.5 | % | 334,981 | 3.7 | % | (21,282 | ) | (0.2 | )% | ||||||||||
Non-U.S. government-backed corporate | 157,606 | 1.7 | % | 138,994 | 1.5 | % | 18,612 | 0.2 | % | |||||||||||
Corporate | 1,840,407 | 20.5 | % | 2,055,323 | 22.9 | % | (214,916 | ) | (2.4 | )% | ||||||||||
Mortgage-backed | ||||||||||||||||||||
Residential mortgage-backed | ||||||||||||||||||||
Agency securities | 513,666 | 5.7 | % | 504,518 | 5.6 | % | 9,148 | 0.1 | % | |||||||||||
Non-agency securities - Alt A | 183,518 | 2.0 | % | 178,843 | 2.0 | % | 4,675 | — | % | |||||||||||
Non-agency securities - Prime | 74,989 | 0.8 | % | 91,920 | 1.0 | % | (16,931 | ) | (0.2 | )% | ||||||||||
Total residential mortgage-backed | 772,173 | 8.5 | % | 775,281 | 8.6 | % | (3,108 | ) | (0.1 | )% | ||||||||||
Commercial mortgage-backed | 503,475 | 5.6 | % | 561,496 | 6.2 | % | (58,021 | ) | (0.6 | )% | ||||||||||
Total mortgage-backed | 1,275,648 | 14.1 | % | 1,336,777 | 14.8 | % | (61,129 | ) | (0.7 | )% | ||||||||||
Asset-backed | ||||||||||||||||||||
Collateralized loan obligations | 88,023 | 1.0 | % | 65,298 | 0.7 | % | 22,725 | 0.3 | % | |||||||||||
Credit cards | 32,836 | 0.4 | % | 31,320 | 0.3 | % | 1,516 | 0.1 | % | |||||||||||
Auto loans | 21,383 | 0.2 | % | 17,977 | 0.2 | % | 3,406 | — | % | |||||||||||
Student loans | 6,610 | 0.1 | % | 6,335 | 0.1 | % | 275 | — | % | |||||||||||
Other | 1,295 | — | % | 9,611 | 0.1 | % | (8,316 | ) | (0.1 | )% | ||||||||||
Total asset-backed | 150,147 | 1.7 | % | 130,541 | 1.4 | % | 19,606 | 0.3 | % | |||||||||||
Total securitized assets | 1,425,795 | 15.8 | % | 1,467,318 | 16.2 | % | (41,523 | ) | (0.4 | )% | ||||||||||
Total fixed maturity investments | 7,085,563 | 78.6 | % | 6,782,818 | 75.3 | % | 302,745 | 3.3 | % | |||||||||||
Equity investments trading | 301,298 | 3.4 | % | 393,877 | 4.4 | % | (92,579 | ) | (1.0 | )% | ||||||||||
Other investments | ||||||||||||||||||||
Catastrophe bonds | 275,553 | 3.1 | % | 241,253 | 2.7 | % | 34,300 | 0.4 | % | |||||||||||
Private equity partnerships | 190,316 | 2.1 | % | 214,848 | 2.4 | % | (24,532 | ) | (0.3 | )% | ||||||||||
Senior secured bank loan fund | 22,212 | 0.2 | % | 23,231 | 0.3 | % | (1,019 | ) | (0.1 | )% | ||||||||||
Hedge funds | 1,621 | — | % | 2,289 | — | % | (668 | ) | — | % | ||||||||||
Total other investments | 489,702 | 5.4 | % | 481,621 | 5.4 | % | 8,081 | — | % | |||||||||||
Investments in other ventures | 133,448 | 1.5 | % | 132,351 | 1.5 | % | 1,097 | — | % | |||||||||||
Total managed investment portfolio | $ | 9,010,217 | 100.0 | % | $ | 8,999,068 | 100.0 | % | $ | 11,149 |
15 | ![]() |
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Fixed Maturity and Short Term Investments - Corporate Top 10 Issuers by Fair Value | ||||||||||||||||||||
June 30, 2016 | ||||||||||||||||||||
Issuer | Total | Short term investments | Fixed maturity investments | |||||||||||||||||
JP Morgan Chase & Co. | $ | 43,241 | $ | — | $ | 43,241 | ||||||||||||||
Morgan Stanley | 39,133 | — | 39,133 | |||||||||||||||||
Goldman Sachs Group Inc. | 36,008 | — | 36,008 | |||||||||||||||||
Bank of America Corp. | 33,868 | — | 33,868 | |||||||||||||||||
HSBC Holdings PLC | 27,122 | — | 27,122 | |||||||||||||||||
Wells Fargo & Co. | 25,241 | — | 25,241 | |||||||||||||||||
Royal Bank of Canada | 21,893 | — | 21,893 | |||||||||||||||||
Credit Suisse Group AG | 20,276 | — | 20,276 | |||||||||||||||||
The Bank of Nova Scotia | 15,813 | — | 15,813 | |||||||||||||||||
Honda Motor Co., Ltd. | 15,472 | — | 15,472 | |||||||||||||||||
Total (1) | $ | 278,067 | $ | — | $ | 278,067 |
(1) | Excludes non-U.S. government-backed corporate fixed maturity investments, reverse repurchase agreements and commercial paper, at fair value. |
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Reserves for Claims and Claim Expenses | |||||||||||||||
Case Reserves | Additional Case Reserves | IBNR | Total | ||||||||||||
June 30, 2016 | |||||||||||||||
Catastrophe Reinsurance | $ | 210,686 | $ | 175,022 | $ | 183,196 | $ | 568,904 | |||||||
Specialty Reinsurance | 532,590 | 130,255 | 1,150,158 | 1,813,003 | |||||||||||
Lloyd's | 91,755 | 27,908 | 311,673 | 431,336 | |||||||||||
Other | 6,332 | — | 24,668 | 31,000 | |||||||||||
Total | $ | 841,363 | $ | 333,185 | $ | 1,669,695 | $ | 2,844,243 | |||||||
March 31, 2016 | |||||||||||||||
Catastrophe Reinsurance | $ | 229,357 | $ | 149,688 | $ | 176,094 | $ | 555,139 | |||||||
Specialty Reinsurance | 538,163 | 136,748 | 1,152,798 | 1,827,709 | |||||||||||
Lloyd's | 88,551 | 24,233 | 285,410 | 398,194 | |||||||||||
Other | 2,737 | — | 27,744 | 30,481 | |||||||||||
Total | $ | 858,808 | $ | 310,669 | $ | 1,642,046 | $ | 2,811,523 | |||||||
December 31, 2015 | |||||||||||||||
Catastrophe Reinsurance | $ | 237,345 | $ | 146,969 | $ | 179,947 | $ | 564,261 | |||||||
Specialty Reinsurance | 529,952 | 126,650 | 1,148,015 | 1,804,617 | |||||||||||
Lloyd's | 84,964 | 22,085 | 263,440 | 370,489 | |||||||||||
Other | 2,071 | — | 25,607 | 27,678 | |||||||||||
Total | $ | 854,332 | $ | 295,704 | $ | 1,617,009 | $ | 2,767,045 | |||||||
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 |
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Paid to Incurred Analysis | |||||||||||||||||||||||
Three months ended June 30, 2016 | Three months ended June 30, 2015 | ||||||||||||||||||||||
Gross | Recoveries | Net | Gross | Recoveries | Net | ||||||||||||||||||
Reserve for claims and claim expenses, beginning of period | $ | 2,811,523 | $ | 167,228 | $ | 2,644,295 | $ | 2,781,568 | $ | 82,696 | $ | 2,698,872 | |||||||||||
Incurred claims and claim expenses | |||||||||||||||||||||||
Current year | 251,390 | 54,385 | 197,005 | 253,649 | 51,229 | 202,420 | |||||||||||||||||
Prior years | (26,538 | ) | 2,717 | (29,255 | ) | (30,830 | ) | 2,246 | (33,076 | ) | |||||||||||||
Total incurred claims and claim expenses | 224,852 | 57,102 | 167,750 | 222,819 | 53,475 | 169,344 | |||||||||||||||||
Paid claims and claim expenses | |||||||||||||||||||||||
Current year | 10,220 | 640 | 9,580 | 36,657 | 33 | 36,624 | |||||||||||||||||
Prior years | 181,912 | 1,684 | 180,228 | 120,082 | (326 | ) | 120,408 | ||||||||||||||||
Total paid claims and claim expenses | 192,132 | 2,324 | 189,808 | 156,739 | (293 | ) | 157,032 | ||||||||||||||||
Reserve for claims and claim expenses, end of period | $ | 2,844,243 | $ | 222,006 | $ | 2,622,237 | $ | 2,847,648 | $ | 136,464 | $ | 2,711,184 | |||||||||||
Six months ended June 30, 2016 | Six months ended June 30, 2015 | ||||||||||||||||||||||
Gross | Recoveries | Net | Gross | Recoveries | Net | ||||||||||||||||||
Reserve for claims and claim expenses, beginning of period | $ | 2,767,045 | $ | 134,526 | $ | 2,632,519 | $ | 1,412,510 | $ | 66,694 | $ | 1,345,816 | |||||||||||
Incurred claims and claim expenses | |||||||||||||||||||||||
Current year | 405,728 | 80,514 | 325,214 | 365,088 | 63,670 | 301,418 | |||||||||||||||||
Prior years | (18,878 | ) | 11,981 | (30,859 | ) | (53,274 | ) | 1,947 | (55,221 | ) | |||||||||||||
Total incurred claims and claim expenses | 386,850 | 92,495 | 294,355 | 311,814 | 65,617 | 246,197 | |||||||||||||||||
Paid claims and claim expenses | |||||||||||||||||||||||
Current year | 11,740 | 670 | 11,070 | 50,530 | 33 | 50,497 | |||||||||||||||||
Prior years | 297,912 | 4,345 | 293,567 | 223,991 | (458 | ) | 224,449 | ||||||||||||||||
Total paid claims and claim expenses | 309,652 | 5,015 | 304,637 | 274,521 | (425 | ) | 274,946 | ||||||||||||||||
Amounts acquired (1) | — | — | — | 1,397,845 | 3,728 | 1,394,117 | |||||||||||||||||
Reserve for claims and claim expenses, end of period | $ | 2,844,243 | $ | 222,006 | $ | 2,622,237 | $ | 2,847,648 | $ | 136,464 | $ | 2,711,184 |
18 | ![]() |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Earnings per Share | |||||||||||||||||||
Three months ended | |||||||||||||||||||
(common shares in thousands) | June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | ||||||||||||||
Numerator: | |||||||||||||||||||
Net income available to RenaissanceRe common shareholders | $ | 136,325 | $ | 127,995 | $ | 92,206 | $ | 75,529 | $ | 73,233 | |||||||||
Amount allocated to participating common shareholders (1) | (1,561 | ) | (1,601 | ) | (1,076 | ) | (867 | ) | (819 | ) | |||||||||
$ | 134,764 | $ | 126,394 | $ | 91,130 | $ | 74,662 | $ | 72,414 | ||||||||||
Denominator: | |||||||||||||||||||
Denominator for basic income per RenaissanceRe common share - | |||||||||||||||||||
Weighted average common shares | 41,693 | 42,577 | 43,131 | 44,564 | 45,303 | ||||||||||||||
Per common share equivalents of employee stock options and restricted shares | 192 | 335 | 382 | 349 | 354 | ||||||||||||||
Denominator for diluted income per RenaissanceRe common share - | |||||||||||||||||||
Adjusted weighted average common shares and assumed conversions | 41,885 | 42,912 | 43,513 | 44,913 | 45,657 | ||||||||||||||
Basic income per RenaissanceRe common share | $ | 3.23 | $ | 2.97 | $ | 2.11 | $ | 1.68 | $ | 1.60 | |||||||||
Diluted income per RenaissanceRe common share | $ | 3.22 | $ | 2.95 | $ | 2.09 | $ | 1.66 | $ | 1.59 | |||||||||
Six months ended | |||||||||||||||||||
(common shares in thousands) | June 30, 2016 | June 30, 2015 | |||||||||||||||||
Numerator: | |||||||||||||||||||
Net income available to RenaissanceRe common shareholders | $ | 264,320 | $ | 241,076 | |||||||||||||||
Amount allocated to participating common shareholders (1) | (3,166 | ) | (2,781 | ) | |||||||||||||||
$ | 261,154 | $ | 238,295 | ||||||||||||||||
Denominator: | |||||||||||||||||||
Denominator for basic income per RenaissanceRe common share - | |||||||||||||||||||
Weighted average common shares | 42,135 | 42,467 | |||||||||||||||||
Per common share equivalents of employee stock options and restricted shares | 263 | 372 | |||||||||||||||||
Denominator for diluted income per RenaissanceRe common share - | |||||||||||||||||||
Adjusted weighted average common shares and assumed conversions | 42,398 | 42,839 | |||||||||||||||||
Basic income per RenaissanceRe common share | $ | 6.20 | $ | 5.61 | |||||||||||||||
Diluted income per RenaissanceRe common share | $ | 6.16 | $ | 5.56 |
(1) | Represents earnings attributable to holders of unvested restricted shares issued under the Company's 2001 Stock Incentive Plan, 2010 Performance-Based Equity Incentive Plan, 2016 Long-Term Incentive Plan and to the Company's non-employee directors. |
19 | ![]() |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Equity in Earnings of Other Ventures | |||||||||||||||||||
Three months ended | |||||||||||||||||||
June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | |||||||||||||||
Tower Hill Companies | $ | 3,846 | $ | 251 | $ | 1,676 | $ | 4,135 | $ | 4,294 | |||||||||
Top Layer Re | 2,265 | 2,403 | 1,498 | 1,738 | 2,174 | ||||||||||||||
Other | (89 | ) | (1,043 | ) | 122 | (143 | ) | (308 | ) | ||||||||||
Total equity in earnings of other ventures | $ | 6,022 | $ | 1,611 | $ | 3,296 | $ | 5,730 | $ | 6,160 | |||||||||
Six months ended | |||||||||||||||||||
June 30, 2016 | June 30, 2015 | ||||||||||||||||||
Top Layer Re | $ | 4,668 | $ | 4,790 | |||||||||||||||
Tower Hill Companies | 4,097 | 7,305 | |||||||||||||||||
Other | (1,132 | ) | (640 | ) | |||||||||||||||
Total equity in earnings of other ventures | $ | 7,633 | $ | 11,455 | |||||||||||||||
Other Income | |||||||||||||||||||
Three months ended | |||||||||||||||||||
June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | |||||||||||||||
Assumed and ceded reinsurance contracts accounted for at fair value or as deposits | $ | 3,492 | $ | 3,839 | $ | 8,306 | $ | 1,749 | $ | 1,162 | |||||||||
Other items | (838 | ) | 240 | (106 | ) | 557 | 265 | ||||||||||||
Total other income | $ | 2,654 | $ | 4,079 | $ | 8,200 | $ | 2,306 | $ | 1,427 | |||||||||
Six months ended | |||||||||||||||||||
June 30, 2016 | June 30, 2015 | ||||||||||||||||||
Assumed and ceded reinsurance contracts accounted for at fair value or as deposits | $ | 7,331 | $ | 2,479 | |||||||||||||||
Other items | (598 | ) | 487 | ||||||||||||||||
Total other income (loss) | $ | 6,733 | $ | 2,966 |
20 | ![]() |
RenaissanceRe Holdings Ltd. | |||||||
Ratings | |||||||
A.M. Best | S&P | Moody's | 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 | Six months ended | ||||||||||||||||||||||||||
June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | June 30, 2016 | June 30, 2015 | |||||||||||||||||||||
Net income available to RenaissanceRe common shareholders | $ | 136,325 | $ | 127,995 | $ | 92,206 | $ | 75,529 | $ | 73,233 | $ | 264,320 | $ | 241,076 | |||||||||||||
Adjustment for net realized and unrealized (gains) losses on investments | (69,772 | ) | (61,653 | ) | 42,817 | 41,138 | 26,712 | (131,425 | ) | (15,037 | ) | ||||||||||||||||
Operating income available to RenaissanceRe common shareholders | $ | 66,553 | $ | 66,342 | $ | 135,023 | $ | 116,667 | $ | 99,945 | $ | 132,895 | $ | 226,039 | |||||||||||||
Net income available to RenaissanceRe common shareholders per common share - diluted | $ | 3.22 | $ | 2.95 | $ | 2.09 | $ | 1.66 | $ | 1.59 | $ | 6.16 | $ | 5.56 | |||||||||||||
Adjustment for net realized and unrealized (gains) losses on investments | (1.67 | ) | (1.44 | ) | 0.98 | 0.92 | 0.59 | (3.10 | ) | (0.35 | ) | ||||||||||||||||
Operating income available to RenaissanceRe common shareholders per common share - diluted | $ | 1.55 | $ | 1.51 | $ | 3.07 | $ | 2.58 | $ | 2.18 | $ | 3.06 | $ | 5.21 | |||||||||||||
Return on average common equity - annualized | 12.6 | % | 11.8 | % | 8.5 | % | 6.9 | % | 6.6 | % | 12.2 | % | 11.8 | % | |||||||||||||
Adjustment for net realized and unrealized (gains) losses on investments | (6.5 | )% | (5.7 | )% | 4.0 | % | 3.8 | % | 2.5 | % | (6.1 | )% | (0.8 | )% | |||||||||||||
Operating return on average common equity - annualized | 6.1 | % | 6.1 | % | 12.5 | % | 10.7 | % | 9.1 | % | 6.1 | % | 11.0 | % |
22 | ![]() |
At | |||||||||||||||||||
June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | |||||||||||||||
Book value per common share | $ | 103.70 | $ | 101.19 | $ | 99.13 | $ | 97.41 | $ | 96.43 | |||||||||
Adjustment for goodwill and other intangibles (1) | (6.73 | ) | (6.59 | ) | (6.59 | ) | (6.65 | ) | (6.51 | ) | |||||||||
Tangible book value per common share | 96.97 | 94.60 | 92.54 | 90.76 | 89.92 | ||||||||||||||
Adjustment for accumulated dividends | 16.10 | 15.79 | 15.48 | 15.18 | 14.88 | ||||||||||||||
Tangible book value per common share plus accumulated dividends | $ | 113.07 | $ | 110.39 | $ | 108.02 | $ | 105.94 | $ | 104.80 | |||||||||
Quarterly change in book value per common share | 2.5 | % | 2.1 | % | 1.8 | % | 1.0 | % | 1.3 | % | |||||||||
Quarterly change in tangible book value per common share plus change in accumulated dividends | 2.8 | % | 2.6 | % | 2.3 | % | 1.3 | % | 1.9 | % | |||||||||
Year to date change in book value per common share | 4.6 | % | 7.0 | % | |||||||||||||||
Year to date change in tangible book value per common share plus change in accumulated dividends | 5.5 | % | 1.4 | % |
(1) | At June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015 and June 30, 2015, goodwill and other intangibles included $21.4 million, $22.3 million, $23.2 million, $22.9 million and $23.5 million, respectively, of goodwill and other intangibles included in investments in other ventures, under equity method. |
23 | ![]() |
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