Annual Net Income Available to Common
Shareholders of $712.0 million, or $16.29 Per Diluted Common Share;
Operating Income Available to Common Shareholders of $402.9
million, or $9.13 Per Diluted Common Share
RenaissanceRe Holdings Ltd. (NYSE: RNR) (the “Company” or
“RenaissanceRe”) today reported net income available to
RenaissanceRe common shareholders of $33.8 million, or $0.77 per
diluted common share, in the fourth quarter of 2019, compared to a
net loss attributable to RenaissanceRe common shareholders of $83.9
million, or $2.10 per diluted common share, in the fourth quarter
of 2018. Operating income available to RenaissanceRe common
shareholders was $23.0 million, or $0.52 per diluted common share,
in the fourth quarter of 2019, compared to $4.8 million, or $0.11
per diluted common share, in the fourth quarter of 2018. The
Company reported an annualized return on average common equity of
2.5% and an annualized operating return on average common equity of
1.7% in the fourth quarter of 2019, compared to negative 7.8% and
positive 0.4%, respectively, in the fourth quarter of 2018. Book
value per common share increased $0.46, or 0.4%, to $120.53 in the
fourth quarter of 2019, compared to a 1.0% decrease in the fourth
quarter of 2018. Tangible book value per common share plus
accumulated dividends increased $0.85, or 0.7%, to $134.71 in the
fourth quarter of 2019, compared to a 0.4% decrease in the fourth
quarter of 2018.
For 2019, the Company reported net income available to
RenaissanceRe common shareholders of $712.0 million, or $16.29 per
diluted common share, compared to $197.3 million, or $4.91 per
diluted common share, in 2018. Operating income available to
RenaissanceRe common shareholders was $402.9 million, or $9.13 per
diluted common share, in 2019, compared to $349.0 million, or $8.73
per diluted common share, in 2018. The Company reported a return on
average common equity of 14.1% and an operating return on average
common equity of 8.0% in 2019, compared to 4.7% and 8.4%,
respectively, in 2018. Book value per common share increased
$16.40, or 15.7%, in 2019, to $120.53, compared to a 4.4% increase
in 2018. Tangible book value per common share plus accumulated
dividends increased $17.54, or 17.9%, to $134.71 in 2019, compared
to a 6.4% increase in 2018.
Kevin J. O’Donnell, President and Chief Executive Officer of
RenaissanceRe, commented: “I am pleased with our performance this
year as we materially grew tangible book value per share plus
accumulated dividends and earned a robust operating return on
equity. We successfully executed our strategy by organically
growing our business while efficiently integrating Tokio Millennium
Re. Looking forward, I am excited about our opportunities to build
a bigger and more attractive portfolio and am confident in our
ability to continue delivering long-term value.”
Fourth Quarter of 2019 Summary
- During the fourth quarter of 2019, Typhoon Hagibis and losses
associated with aggregate loss contracts (the “2019 Aggregate
Losses”) resulted in a net negative impact to net income available
to RenaissanceRe common shareholders of $193.3 million. In
addition, the Company reallocated certain losses from Hurricane
Dorian and Typhoon Faxai (collectively, the “Q3 2019 Catastrophe
Events”) to 2019 Aggregate Losses, which had no net impact on the
Company’s net income available to RenaissanceRe common
shareholders.
- Gross premiums written increased by $357.7 million, or 65.3%,
to $905.5 million, in the fourth quarter of 2019 compared to the
fourth quarter of 2018, driven by an increase of $312.6 million in
the Casualty and Specialty segment and an increase of $45.1 million
in the Property segment. Included in gross premiums written in the
fourth quarter of 2019 was $30.2 million of reinstatement premiums
written primarily associated with Typhoon Hagibis. Included in the
gross premiums written in the fourth quarter of 2018 was $102.5
million of reinstatement premiums written primarily associated with
the wildfires in California during the fourth quarter of 2018 (the
“Q4 2018 California Wildfires”) and Hurricane Michael
(collectively, the “Q4 2018 Catastrophe Events”).
- Underwriting loss of $65.2 million and a combined ratio of
106.7% in the fourth quarter of 2019, compared to an underwriting
loss of $82.3 million and a combined ratio of 114.3% in the fourth
quarter of 2018. The Property segment incurred an underwriting loss
of $87.1 million and had a combined ratio of 118.6% in the fourth
quarter of 2019. The Casualty and Specialty segment generated
underwriting income of $20.8 million and had a combined ratio of
95.9% in the fourth quarter of 2019. The Company’s underwriting
results in the fourth quarter of 2019 were principally impacted by
Typhoon Hagibis and the 2019 Aggregate Losses, which had a net
negative impact on the underwriting result of $237.0 million and
added 25.0 percentage points to the combined ratio.
- Total investment result was a gain of $130.6 million in the
fourth quarter of 2019, generating an annualized total investment
return of 3.1%.
- Over $300 million of capital raised in the fourth quarter of
2019 through the Company’s managed joint ventures and third-party
capital vehicles, including Vermeer Reinsurance Ltd. (“Vermeer”),
Upsilon RFO Re Ltd. (“Upsilon RFO”) and RenaissanceRe Medici Fund
Ltd (“Medici”).
Net Negative Impact
Net negative impact includes the sum of estimates of net claims
and claim expenses incurred, earned reinstatement premiums assumed
and ceded, lost profit commissions and redeemable noncontrolling
interest. The Company’s estimates of net negative impact are based
on a review of its potential exposures, preliminary discussions
with certain counterparties and catastrophe modeling techniques.
The Company’s actual net negative impact, both individually and in
the aggregate, may vary from these estimates, perhaps materially.
Changes in these estimates will be recorded in the period in which
they occur.
Meaningful uncertainty regarding the estimates and the nature
and extent of the losses from these events remains, driven by the
magnitude and recent occurrence of each event, the geographic areas
in which the events occurred, relatively limited claims data
received to date, the contingent nature of business interruption
and other exposures, potential uncertainties relating to
reinsurance recoveries and other factors inherent in loss
estimation, among other things.
The financial data in the table below provides additional
information detailing the net negative impact on the Company’s
consolidated financial statements in the fourth quarter of 2019
resulting from Typhoon Hagibis, the 2019 Aggregate Losses and a
reallocation of certain losses from the Q3 2019 Catastrophe Events
to 2019 Aggregate Losses.
During the fourth quarter of 2019, the Company announced a
preliminary estimated net negative impact on net income available
to RenaissanceRe common shareholders of losses from Typhoon Hagibis
of approximately $175 million on its fourth quarter 2019 results of
operations. The Company's estimated net negative impact from
Typhoon Hagibis remains consistent with this initial estimate and
is allocated between the Typhoon Hagibis column and the 2019
Aggregate Loss column in the table below.
During the third quarter of 2019, the Company’s initial estimate
of the net negative impact of the Q3 2019 Catastrophe Events
included loss estimates associated with aggregate loss contracts.
Certain of those contracts have been reallocated to 2019 Aggregate
Losses, with a comparable change reflected as a reduction to the Q3
2019 Catastrophe Events in the table below.
Three months
ended December 31, 2019
Typhoon Hagibis
2019 Aggregate Losses
Reallocation of certain losses
from the Q3 2019 Catastrophe Events to 2019 Aggregate
Losses
Total
(in thousands, except percentages)
(Increase) decrease in net claims and
claims expenses incurred
$
(199,305
)
$
(97,591
)
$
21,723
$
(275,173
)
Assumed reinstatement premiums earned
28,829
183
1,158
30,170
Ceded reinstatement premiums earned
(219
)
—
(92
)
(311
)
Lost (earned) profit commissions
7,509
1,740
(935
)
8,314
Net (negative) positive impact on
underwriting result
(163,186
)
(95,668
)
21,854
(237,000
)
Redeemable noncontrolling interest -
DaVinciRe
35,078
12,932
(4,317
)
43,693
Net (negative) positive impact on net
income available to RenaissanceRe common shareholders
$
(128,108
)
$
(82,736
)
$
17,537
$
(193,307
)
Percentage point impact on consolidated
combined ratio
17.1
9.8
(2.3
)
25.0
Net (negative) positive impact on Property
segment underwriting result
$
(161,654
)
$
(95,668
)
$
21,854
$
(235,468
)
Net (negative) positive impact on Casualty
and Specialty segment underwriting result
(1,532
)
—
—
(1,532
)
Net (negative) positive impact on
underwriting result
$
(163,186
)
$
(95,668
)
$
21,854
$
(237,000
)
Acquisition of Tokio Millennium Re
On March 22, 2019, the Company completed its acquisition of
Tokio Millennium Re AG (now known as RenaissanceRe Europe AG),
Tokio Millennium Re (UK) Limited (now known as RenaissanceRe (UK)
Limited) and their subsidiaries (collectively, “TMR”). The Company
accounted for the acquisition of TMR under the acquisition method
of accounting in accordance with Financial Accounting Standards
Board Accounting Standards Codification Topic Business
Combinations. The operating activities of TMR are included in the
Company’s consolidated statements of operations from March 22,
2019, and comparisons of the Company’s results of operations for
the fourth quarter and full year of 2019 to the fourth quarter and
full year of 2018 should be viewed in that context. In addition,
the results of operations for the fourth quarter and full year of
2019 may not be reflective of the ultimate ongoing business of the
combined entities.
Underwriting Results by Segment
Property Segment
Gross premiums written in the Property segment were $245.0
million in the fourth quarter of 2019, an increase of $45.1
million, or 22.6%, compared to $199.9 million in the fourth quarter
of 2018.
Gross premiums written in the catastrophe class of business were
$44.8 million in the fourth quarter of 2019, a decrease of $64.1
million, or 58.9%, compared to the fourth quarter of 2018. In the
fourth quarter of 2019, gross premiums written in the catastrophe
class of business included $29.5 million of reinstatement premiums
primarily associated with Typhoon Hagibis, compared to the fourth
quarter of 2018, which included $102.8 million of reinstatement
premiums associated with the Q4 2018 Catastrophe Events.
Gross premiums written in the other property class of business
were $200.2 million in the fourth quarter of 2019, an increase of
$109.2 million, or 120.0%, compared to the fourth quarter of 2018.
The increase in gross premiums written in the other property class
of business was primarily driven by growth from existing
relationships, new opportunities across a number of the Company’s
underwriting platforms and business acquired in connection with the
acquisition of TMR.
Ceded premiums written in the Property segment were $2.1 million
in the fourth quarter of 2019, a decrease of $27.2 million, or
92.9%, compared to the fourth quarter of 2018. The decrease in
ceded premiums written in the fourth quarter of 2019 was
principally due to $26.0 million of ceded reinstatement premiums
written in the fourth quarter of 2018 associated with Q4 2018
Catastrophe Events which did not reoccur in the fourth quarter of
2019.
The Property segment incurred an underwriting loss of $87.1
million and had a combined ratio of 118.6% in the fourth quarter of
2019, compared to an underwriting loss of $35.0 million and a
combined ratio of 110.6% in the fourth quarter of 2018. The
Property segment underwriting result and combined ratio in the
fourth quarter of 2019 were principally impacted by Typhoon Hagibis
and the 2019 Aggregate Losses, which resulted in a net negative
impact on the Property segment underwriting result of $235.5
million and added 52.5 percentage points to the Property segment
combined ratio.
In comparison, the fourth quarter of 2018 was impacted by the Q4
2018 Catastrophe Events and changes in certain losses associated
with aggregate loss contracts in 2018 (the “2018 Aggregate
Losses”), which resulted in a net negative impact on the
underwriting result of $205.7 million and added 74.1 percentage
points to the Property segment combined ratio. In addition, the
underwriting results in the fourth quarter of 2018 were positively
impacted by changes in the estimates of the net negative impact of
the wildfires in California during the third quarter of 2018 (the
“Q3 2018 California Wildfires”), Typhoons Jebi, Mangkhut and Trami,
and Hurricane Florence (collectively, the “Q3 2018 Catastrophe
Events”) and Hurricanes Harvey, Irma and Maria, the Mexico City
Earthquake, the wildfires in California during the fourth quarter
of 2017 and certain losses associated with aggregate loss contracts
(collectively, the “2017 Large Loss Events”) of $55.2 million and
$24.8 million, respectively, reducing the Property segment combined
ratio by 17.7 and 7.9 percentage points, respectively.
Casualty and Specialty Segment
Gross premiums written in the Casualty and Specialty segment
were $660.5 million in the fourth quarter of 2019, an increase of
$312.6 million, or 89.9%, compared to the fourth quarter of 2018.
The increase was due to growth from new and existing business
opportunities written in the current and prior periods across
various classes of business within the segment, and business
acquired in connection with the acquisition of TMR.
The Casualty and Specialty segment generated underwriting income
of $20.8 million and had a combined ratio of 95.9% in the fourth
quarter of 2019, compared to an underwriting loss of $47.4 million
and a combined ratio of 119.3% in the fourth quarter of 2018. The
improvement in the Casualty and Specialty segment combined ratio
was driven by a decrease of 14.8 percentage points in the net
claims and claim expense ratio, principally the result of lower
current accident year losses in the fourth quarter of 2019 compared
to the fourth quarter of 2018, which included loss estimates for
liability exposures associated with the Q4 2018 California
Wildfires. The Casualty and Specialty segment also experienced an
8.6 percentage point decrease in the underwriting expense ratio in
the fourth quarter of 2019 compared to the fourth quarter of 2018,
resulting from a decrease in both the acquisition expense ratio and
the operating expense ratio. The acquisition ratio decreased in the
fourth quarter of 2019 compared to the fourth quarter of 2018
primarily as a result of the effects of purchase accounting
amortization related to the acquisition of TMR and changes in
estimated commissions. The operating expense ratio decreased 3.6
percentage points due to improved operating leverage from the
business acquired in connection with the acquisition of TMR.
Other Items
- The Company’s total investment result, which includes the sum
of net investment income and net realized and unrealized gains on
investments, was a gain of $130.6 million in the fourth quarter of
2019, compared to a loss of $35.3 million in the fourth quarter of
2018, an improvement of $165.9 million. The improvement in the
total investment result was principally due to higher returns on
the Company’s equity investments trading, private equity
investments and catastrophe bonds, partially offset by lower
returns on its portfolio of fixed maturity investments trading.
Also driving the investment result for the fourth quarter of 2019
were higher average invested assets primarily resulting from the
acquisition of TMR, combined with capital raised during 2019 in
certain of the Company’s consolidated third-party capital vehicles,
including DaVinciRe Holdings Ltd. (“DaVinciRe”), Upsilon RFO,
Vermeer and Medici, and the subsequent investment of those funds as
part of the Company’s consolidated investment portfolio.
- Net loss attributable to redeemable noncontrolling interests in
the fourth quarter of 2019 was $2.6 million compared to $49.3
million in the fourth quarter of 2018. The change was primarily
driven by improved performance from DaVinciRe in the fourth quarter
of 2019, compared to the fourth quarter of 2018, which was
negatively impacted by significant losses in DaVinciRe associated
with Hurricane Michael, the Q4 2018 California Wildfires and
changes in the 2018 Aggregate Losses. In addition, the fourth
quarter of 2019 included net income attributable to Vermeer and
improved performance in Medici.
- In the fourth quarter of 2019, total fee income increased by
$4.6 million, to $13.2 million, compared to $8.6 million in the
fourth quarter of 2018, primarily driven by an increase in the
dollar value of capital being managed combined with improved
underlying performance.
FULL YEAR 2019 SUMMARY
- Gross premiums written increased by $1.5 billion, or 45.2%, to
$4.8 billion, in 2019, compared to 2018, driven by increases of
$670.1 million in the Property segment and $827.3 million in the
Casualty and Specialty segment. The increase was primarily driven
by expanded participation on existing transactions, certain new
transactions, rate improvements, and the impact of the acquisition
of TMR.
- Underwriting income of $256.4 million and a combined ratio of
92.3% in 2019, compared to underwriting income of $244.9 million
and a combined ratio of 87.6% in 2018. Underwriting income was
comprised of $209.3 million in the Property segment and $46.0
million in the Casualty and Specialty segment. Impacting the
underwriting result for 2019 were Typhoon Hagibis, the Q3 2019
Catastrophe Events and 2019 Aggregate Losses (collectively, the
“2019 Large Loss Events”), which had a net negative impact on the
Company’s underwriting result of $418.9 million and added 12.9
percentage points to the combined ratio.
- Net income available to RenaissanceRe common shareholders of
$712.0 million in 2019 included total net negative impact on the
Company’s net income available to RenaissanceRe common shareholders
of $348.2 million from the 2019 Large Loss Events.
- Total investment result was a gain of $838.3 million in 2019,
generating an annualized total investment return of 5.2%. The
Company’s portfolio of fixed maturity and short term investments
had a yield to maturity of 2.1% at December 31, 2019, contributing
$423.8 million of net investment income included in the total
investment result in 2019.
- Over $1.5 billion of capital raised in 2019 through the
Company’s managed joint ventures and third-party capital vehicles,
DaVinciRe, Upsilon RFO, Vermeer and Medici, including $175 million
from the Company. In addition, effective January 1, 2020, the
Company raised over $625 million of capital through Upsilon RFO and
Medici, including over $100 million from the Company.
Net Negative Impact
The financial data below provides additional information
detailing the net negative impact on the Company’s consolidated
financial statements in 2019 resulting from the 2019 Large Loss
Events, including Typhoon Hagibis, the Q3 2019 Catastrophe Events
and the 2019 Aggregate Losses.
Year ended
December 31, 2019
Typhoon Hagibis
Q3 2019 Catastrophe
Events
2019 Aggregate Losses
Total 2019 Large Loss
Events
(in thousands, except percentages)
Net claims and claims expenses
incurred
$
(199,305
)
$
(187,188
)
$
(97,591
)
$
(484,084
)
Assumed reinstatement premiums earned
28,829
24,596
183
53,608
Ceded reinstatement premiums earned
(219
)
(574
)
—
(793
)
Lost profit commissions
7,509
3,100
1,740
12,349
Net negative impact on underwriting
result
(163,186
)
(160,066
)
(95,668
)
(418,920
)
Redeemable noncontrolling interest -
DaVinciRe
35,078
22,677
12,932
70,687
Net negative impact on net income
available to RenaissanceRe common shareholders
$
(128,108
)
$
(137,389
)
$
(82,736
)
$
(348,233
)
Percentage point impact on consolidated
combined ratio
5.0
4.9
2.8
12.9
Net negative impact on Property segment
underwriting result
$
(161,654
)
$
(157,064
)
$
(95,668
)
$
(414,386
)
Net negative impact on Casualty and
Specialty segment underwriting result
(1,532
)
(3,002
)
—
(4,534
)
Net negative impact on underwriting
result
$
(163,186
)
$
(160,066
)
$
(95,668
)
$
(418,920
)
Underwriting Results by Segment
Property Segment
In 2019, gross premiums written in the Property segment
increased by $670.1 million, or 38.1%, to $2.4 billion, compared to
$1.8 billion in 2018.
Gross premiums written in the catastrophe class of business were
$1.6 billion in 2019, an increase of $246.1 million, or 18.2%,
compared to 2018. Impacting the catastrophe class of business in
2019 were expanded participation on existing transactions, certain
new transactions, rate improvements, and the acquisition of
TMR.
Gross premiums written in the other property class of business
were $835.5 million in 2019, an increase of $423.9 million, or
103.0%, compared to 2018. The increase in gross premiums written in
the other property class of business was primarily driven by growth
across the Company’s underwriting platforms, both from existing
relationships and through new opportunities the Company believes
have comparably attractive risk-return attributes, rate
improvements, and business acquired in connection with the
acquisition of TMR.
The Company’s Property segment generated underwriting income of
$209.3 million in 2019, compared to $262.1 million in 2018, a
decrease of $52.8 million. In 2019, the Property segment generated
a net claims and claim expense ratio of 59.3%, an underwriting
expense ratio of 27.8% and a combined ratio of 87.1%, compared to
47.4%, 27.7% and 75.1%, respectively, in 2018.
Principally impacting the Property segment underwriting result
and combined ratio in 2019 were the 2019 Large Loss Events, which
resulted in a net negative impact on the Property segment
underwriting result of $414.4 million and a corresponding increase
in the Property segment combined ratio of 26.7 percentage points.
In comparison, 2018 was impacted by the Q3 2018 Catastrophe Events,
the Q4 2018 Catastrophe Events, and the 2018 Aggregate Losses
(collectively, the “2018 Large Loss Events”). The 2018 Large Loss
Events resulted in a net negative impact on the underwriting result
of $338.7 million, and a corresponding increase in the Property
segment combined ratio of 37.4 percentage points. This was
partially offset by a net positive impact on the underwriting
result associated with changes in the estimates of the net negative
impact on the underwriting result of the 2017 Large Loss Events of
$145.7 million, and a corresponding decrease in the combined ratio
of 14.0 percentage points.
Casualty and Specialty Segment
In 2019, gross premiums written in the Casualty and Specialty
segment increased by $827.3 million, or 53.4%, to $2.4 billion,
compared to $1.5 billion in 2018. The increase was principally due
to growth from new and existing business opportunities written in
the current and prior periods across various classes of business
within the segment and business acquired in connection with the
acquisition of TMR.
The Company’s Casualty and Specialty segment generated
underwriting income of $46.0 million in 2019, compared to an
underwriting loss of $17.0 million in 2018. In 2019, the Casualty
and Specialty segment generated a net claims and claim expense
ratio of 66.1%, an underwriting expense ratio of 31.2% and a
combined ratio of 97.3%, compared to 67.3%, 34.5% and 101.8%,
respectively, in 2018.
The decrease in the Company’s Casualty and Specialty segment’s
combined ratio was primarily driven by an improved underwriting
expense ratio as well as the overall decrease in the net claims and
claim expense ratio. The decrease in the Casualty and Specialty
segment net claims and claim expense ratio was principally due to
lower current accident year losses, which reduced the net claims
and claim expense ratio by 5.1 percentage points in 2019, compared
to 2018, which was adversely impacted by liability exposures
associated with the Q3 2018 California Wildfires and the Q4 2018
California Wildfires. The underwriting expense ratio in the
Casualty and Specialty segment decreased 3.3 percentage points, to
31.2%, in 2019, compared to 34.5% in 2018, primarily due to a
decrease in the operating expense ratio as a result of improved
operating leverage.
Other Items
- Net income attributable to redeemable noncontrolling interests
in 2019 was $201.5 million, compared to $41.6 million in 2018, an
increase of $159.9 million, principally due to improved performance
from DaVinciRe and the addition of net income attributable to
Vermeer in 2019, compared to 2018, which was negatively impacted by
significant losses in DaVinciRe associated with Hurricane Michael,
the Q4 2018 California Wildfires and changes in the 2018 Aggregate
Losses.
- In 2019, total fee income increased by $24.3 million, to $114.2
million, compared to $89.9 million in 2018, primarily driven by an
increase in the dollar value of capital being managed and improved
underlying performance.
- The Company’s total investment result, which includes the sum
of net investment income and net realized and unrealized gains and
losses on investments, was $838.3 million in 2019, compared to
$86.8 million in 2018, an increase of $751.5 million. The increase
was primarily driven by net realized and unrealized gains on
investments of $414.5 million in 2019, compared to net realized and
unrealized losses on investments of $175.1 million in 2018. The net
realized and unrealized gains on investments in 2019 were driven by
net realized and unrealized gains on the fixed maturity investments
portfolio, equity investments trading and investment-related
derivatives. Additionally, higher net investment income was
generated from the Company’s portfolio of fixed maturity
investments trading, short term investments, private equity
investments and catastrophe bonds. Also driving the investment
result for 2019 were higher average invested assets primarily
resulting from the acquisition of TMR, combined with capital raised
during 2019 in certain of the Company’s consolidated third-party
capital vehicles, including DaVinciRe, Upsilon RFO, Vermeer and
Medici, and the subsequent investment of those funds as part of the
Company’s consolidated investment portfolio.
- During 2019, the Company recorded $49.7 million of corporate
expenses associated with the acquisition of TMR, which includes
compensation-related costs, integration-related costs and
transaction-related costs.
- On April 2, 2019, the Company issued $400.0 million of its
3.600% Senior Notes due April 15, 2029. A portion of the net
proceeds were used to repay, in full, $200.0 million outstanding
under the Company’s revolving credit facility, which was drawn on
March 20, 2019 in connection with the acquisition of TMR. The
remainder of the net proceeds will be used for general corporate
purposes.
- On February 4, 2020, the Company’s wholly-owned subsidiary,
RenaissanceRe Specialty Holdings (UK) Limited, entered into an
agreement to sell its wholly owned subsidiary, RenaissanceRe (UK)
Limited, a UK run-off company, to an investment vehicle managed by
AXA Liabilities Managers, an affiliate of AXA XL. The sale is
expected to close in 2020 and is subject to regulatory
approval.
This Press Release includes certain financial measures that are
not calculated in accordance with generally accepted accounting
principles in the U.S. (“GAAP”) including “operating income
available to RenaissanceRe common shareholders,” “operating income
available to RenaissanceRe common shareholders per common share -
diluted,” “operating return on average common equity - annualized,”
“tangible book value per common share” and “tangible book value per
common share plus accumulated dividends.” A reconciliation of such
measures to the most comparable GAAP figures in accordance with
Regulation G is presented in the attached supplemental financial
data.
Please refer to the “Investors - Financial Reports - Financial
Supplements” section of the Company’s website at www.renre.com for a copy of the Financial
Supplement which includes additional information on the Company’s
financial performance.
RenaissanceRe will host a conference call on Wednesday, February
5, 2020 at 10:30 a.m. ET to discuss this release. Live broadcast of
the conference call will be available through the “Investors -
Webcasts & Presentations” section of the Company’s website at
www.renre.com.
About RenaissanceRe
RenaissanceRe is a global provider of reinsurance and insurance
that specializes in matching well-structured risks with efficient
sources of capital. The Company provides property, casualty and
specialty reinsurance and certain insurance solutions to customers,
principally through intermediaries. Established in 1993, the
Company has offices in Bermuda, Australia, Ireland, Singapore,
Switzerland, the United Kingdom and the United States.
Cautionary Statement Regarding Forward-Looking
Statements
Any forward-looking statements made in this Press Release
reflect RenaissanceRe’s current views with respect to future events
and financial performance and are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
These statements are subject to numerous factors that could cause
actual results to differ materially from those set forth in or
implied by such forward-looking statements, including the
following: the frequency and severity of catastrophic and other
events that the Company covers; the effectiveness of the Company’s
claims and claim expense reserving process; the effect of climate
change on the Company’s business, including the trend towards
increasingly frequent and severe climate events; the Company’s
ability to maintain its financial strength ratings; the effect of
emerging claims and coverage issues; collection on claimed
retrocessional coverage, and new retrocessional reinsurance being
available on acceptable terms and providing the coverage that we
intended to obtain; the Company’s reliance on a small and
decreasing number of reinsurance brokers and other distribution
services for the preponderance of its revenue; the Company’s
exposure to credit loss from counterparties in the normal course of
business; the effect of continued challenging economic conditions
throughout the world; soft reinsurance underwriting market
conditions; the performance of the Company’s investment portfolio;
a contention by the Internal Revenue Service that Renaissance
Reinsurance Ltd., or any of the Company’s other Bermuda
subsidiaries, is subject to taxation in the U.S.; the effects of
U.S. tax reform legislation and possible future tax reform
legislation and regulations, including changes to the tax treatment
of the Company’s shareholders or investors in the Company’s joint
ventures or other entities the Company manages; the success of any
of the Company’s strategic investments or acquisitions, including
the Company’s ability to manage its operations as its product and
geographical diversity increases; the Company’s ability to retain
key senior officers and to attract or retain the executives and
employees necessary to manage its business; the Company’s ability
to effectively manage capital on behalf of investors in joint
ventures or other entities it manages; foreign currency exchange
rate fluctuations; changes in the method for determining LIBOR and
the potential replacement of LIBOR; losses the Company could face
from terrorism, political unrest or war; the effect of
cybersecurity risks, including technology breaches or failure, on
the Company’s business; the Company’s ability to successfully
implement its business strategies and initiatives; the Company’s
ability to determine any impairments taken on investments; the
effects of inflation; the ability of the Company’s ceding companies
and delegated authority counterparties to accurately assess the
risks they underwrite; the effect of operational risks, including
system or human failures; the Company’s ability to raise capital if
necessary; the Company’s ability to comply with covenants in its
debt agreements; changes to the regulatory systems under which the
Company operates, including as a result of increased global
regulation of the insurance and reinsurance industries; changes in
Bermuda laws and regulations and the political environment in
Bermuda; the Company’s dependence on the ability of its operating
subsidiaries to declare and pay dividends; aspects of the Company’s
corporate structure that may discourage third-party takeovers and
other transactions; difficulties investors may have in servicing
process or enforcing judgments against the Company in the U.S.; the
cyclical nature of the reinsurance and insurance industries;
adverse legislative developments that reduce the size of the
private markets the Company serves or impede their future growth;
consolidation of competitors, customers and insurance and
reinsurance brokers; the effect on the Company’s business of the
highly competitive nature of its industry, including the effect of
new entrants to, competing products for and consolidation in the
(re)insurance industry; other political, regulatory or industry
initiatives adversely impacting the Company; the Company’s ability
to comply with applicable sanctions and foreign corrupt practices
laws; increasing barriers to free trade and the free flow of
capital; international restrictions on the writing of reinsurance
by foreign companies and government intervention in the natural
catastrophe market; the effect of Organisation for Economic
Co-operation and Development or European Union (“EU”) measures to
increase the Company’s taxes and reporting requirements; the effect
of the vote by the U.K. to leave the EU; changes in regulatory
regimes and accounting rules that may impact financial results
irrespective of business operations; the Company’s need to make
many estimates and judgments in the preparation of its financial
statements; risks that the ongoing integration of TMR disrupts or
distracts from current plans and operations; the Company’s ability
to recognize the benefits of the acquisition of TMR; and other
factors affecting future results disclosed in RenaissanceRe’s
filings with the Securities and Exchange Commission, including its
Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.
RenaissanceRe Holdings
Ltd.
Summary Consolidated
Statements of Operations
(in thousands of United States
Dollars, except per share amounts and percentages)
(Unaudited)
Three months ended
Twelve months ended
December 31, 2019
December 31, 2018
December 31, 2019
December 31, 2018
Revenues
Gross premiums written
$
905,479
$
547,755
$
4,807,750
$
3,310,427
Net premiums written
$
725,367
$
411,094
$
3,381,493
$
2,131,902
Decrease (increase) in unearned
premiums
244,758
163,519
(43,090
)
(155,773
)
Net premiums earned
970,125
574,613
3,338,403
1,976,129
Net investment income
112,695
53,338
423,833
261,866
Net foreign exchange losses
(1,126
)
(932
)
(2,938
)
(12,428
)
Equity in earnings of other ventures
5,874
4,143
23,224
18,474
Other (loss) income
(160
)
5,489
4,949
5,969
Net realized and unrealized gains (losses)
on investments
17,897
(88,654
)
414,483
(175,069
)
Total revenues
1,105,305
547,997
4,201,954
2,074,941
Expenses
Net claims and claim expenses incurred
762,093
477,638
2,097,021
1,120,018
Acquisition expenses
208,618
120,465
762,232
432,989
Operational expenses
64,571
58,859
222,733
178,267
Corporate expenses
17,642
12,108
94,122
33,983
Interest expense
15,496
11,765
58,364
47,069
Total expenses
1,068,420
680,835
3,234,472
1,812,326
Income (loss) before taxes
36,885
(132,838
)
967,482
262,615
Income tax benefit (expense)
3,455
8,852
(17,215
)
6,302
Net income (loss)
40,340
(123,986
)
950,267
268,917
Net loss (income) attributable to
noncontrolling interests
2,622
49,269
(201,469
)
(41,553
)
Net income (loss) attributable to
RenaissanceRe
42,962
(74,717
)
748,798
227,364
Dividends on preference shares
(9,189
)
(9,189
)
(36,756
)
(30,088
)
Net income (loss) available
(attributable) to RenaissanceRe common shareholders
$
33,773
$
(83,906
)
$
712,042
$
197,276
Net income (loss) available (attributable)
to RenaissanceRe common shareholders per common share - basic
$
0.77
$
(2.10
)
$
16.32
$
4.91
Net income (loss) available (attributable)
to RenaissanceRe common shareholders per common share - diluted
$
0.77
$
(2.10
)
$
16.29
$
4.91
Operating income (loss) available
(attributable) to RenaissanceRe common shareholders per common
share - diluted (1)
$
0.52
$
0.11
$
9.13
$
8.73
Average shares outstanding - basic
43,467
40,111
43,119
39,732
Average shares outstanding - diluted
43,552
40,111
43,175
39,755
Net claims and claim expense ratio
78.6
%
83.1
%
62.8
%
56.7
%
Underwriting expense ratio
28.1
%
31.2
%
29.5
%
30.9
%
Combined ratio
106.7
%
114.3
%
92.3
%
87.6
%
Return on average common equity -
annualized
2.5
%
(7.8
)%
14.1
%
4.7
%
Operating return on average common equity
- annualized (1)
1.7
%
0.4
%
8.0
%
8.4
%
(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)
December 31, 2019
December 31, 2018
Assets
(Unaudited)
(Audited)
Fixed maturity investments trading, at
fair value
$
11,171,655
$
8,088,870
Short term investments, at fair value
4,566,277
2,586,520
Equity investments trading, at fair
value
436,931
310,252
Other investments, at fair value
1,087,377
784,933
Investments in other ventures, under
equity method
106,549
115,172
Total investments
17,368,789
11,885,747
Cash and cash equivalents
1,379,068
1,107,922
Premiums receivable
2,599,896
1,537,188
Prepaid reinsurance premiums
767,781
616,185
Reinsurance recoverable
2,791,297
2,372,221
Accrued investment income
72,461
51,311
Deferred acquisition costs and value of
business acquired
663,991
476,661
Receivable for investments sold
78,369
256,416
Other assets
346,216
135,127
Goodwill and other intangibles
262,226
237,418
Total assets
$
26,330,094
$
18,676,196
Liabilities, Noncontrolling Interests
and Shareholders’ Equity
Liabilities
Reserve for claims and claim expenses
$
9,384,349
$
6,076,271
Unearned premiums
2,530,975
1,716,021
Debt
1,384,105
991,127
Reinsurance balances payable
2,830,691
1,902,056
Payable for investments purchased
225,275
380,332
Other liabilities
932,024
513,609
Total liabilities
17,287,419
11,579,416
Redeemable noncontrolling interest
3,071,308
2,051,700
Shareholders’ Equity
Preference shares
650,000
650,000
Common shares
44,148
42,207
Additional paid-in capital
568,277
296,099
Accumulated other comprehensive loss
(1,939
)
(1,433
)
Retained earnings
4,710,881
4,058,207
Total shareholders’ equity attributable
to RenaissanceRe
5,971,367
5,045,080
Total liabilities, noncontrolling
interests and shareholders’ equity
$
26,330,094
$
18,676,196
Book value per common share
$
120.53
$
104.13
RenaissanceRe Holdings
Ltd.
Supplemental Financial Data -
Segment Information
(in thousands of United States
Dollars, except percentages)
(Unaudited)
Three months ended December
31, 2019
Property
Casualty and Specialty
Other
Total
Gross premiums written
$
245,001
$
660,478
$
—
$
905,479
Net premiums written
$
242,932
$
482,435
$
—
$
725,367
Net premiums earned
$
467,404
$
502,721
$
—
$
970,125
Net claims and claim expenses incurred
424,207
338,104
(218
)
762,093
Acquisition expenses
90,790
117,849
(21
)
208,618
Operational expenses
39,469
25,943
(841
)
64,571
Underwriting (loss) income
$
(87,062
)
$
20,825
$
1,080
(65,157
)
Net investment income
112,695
112,695
Net foreign exchange losses
(1,126
)
(1,126
)
Equity in earnings of other ventures
5,874
5,874
Other loss
(160
)
(160
)
Net realized and unrealized gains on
investments
17,897
17,897
Corporate expenses
(17,642
)
(17,642
)
Interest expense
(15,496
)
(15,496
)
Income before taxes and redeemable
noncontrolling interests
36,885
Income tax benefit
3,455
3,455
Net loss attributable to redeemable
noncontrolling interests
2,622
2,622
Dividends on preference shares
(9,189
)
(9,189
)
Net income available to RenaissanceRe
common shareholders
$
33,773
Net claims and claim expenses incurred –
current accident year
$
432,160
$
342,268
$
—
$
774,428
Net claims and claim expenses incurred –
prior accident years
(7,953
)
(4,164
)
(218
)
(12,335
)
Net claims and claim expenses incurred –
total
$
424,207
$
338,104
$
(218
)
$
762,093
Net claims and claim expense ratio –
current accident year
92.5
%
68.1
%
79.8
%
Net claims and claim expense ratio – prior
accident years
(1.7
)%
(0.8
)%
(1.2
)%
Net claims and claim expense ratio –
calendar year
90.8
%
67.3
%
78.6
%
Underwriting expense ratio
27.8
%
28.6
%
28.1
%
Combined ratio
118.6
%
95.9
%
106.7
%
Three months ended December
31, 2018
Property
Casualty and Specialty
Other
Total
Gross premiums written
$
199,918
$
347,837
$
—
$
547,755
Net premiums written
$
170,647
$
240,447
$
—
$
411,094
Net premiums earned
$
328,585
$
246,027
$
1
$
574,613
Net claims and claim expenses incurred
275,700
202,047
(109
)
477,638
Acquisition expenses
50,817
69,650
(2
)
120,465
Operational expenses
37,021
21,762
76
58,859
Underwriting (loss) income
$
(34,953
)
$
(47,432
)
$
36
(82,349
)
Net investment income
53,338
53,338
Net foreign exchange losses
(932
)
(932
)
Equity in earnings of other ventures
4,143
4,143
Other income
5,489
5,489
Net realized and unrealized losses on
investments
(88,654
)
(88,654
)
Corporate expenses
(12,108
)
(12,108
)
Interest expense
(11,765
)
(11,765
)
Loss before taxes and redeemable
noncontrolling interests
(132,838
)
Income tax benefit
8,852
8,852
Net loss attributable to redeemable
noncontrolling interests
49,269
49,269
Dividends on preference shares
(9,189
)
(9,189
)
Net loss attributable to RenaissanceRe
common shareholders
$
(83,906
)
Net claims and claim expenses incurred –
current accident year
$
324,118
$
227,289
$
—
$
551,407
Net claims and claim expenses incurred –
prior accident years
(48,418
)
(25,242
)
(109
)
(73,769
)
Net claims and claim expenses incurred –
total
$
275,700
$
202,047
$
(109
)
$
477,638
Net claims and claim expense ratio –
current accident year
98.6
%
92.4
%
96.0
%
Net claims and claim expense ratio – prior
accident years
(14.7
)%
(10.3
)%
(12.9
)%
Net claims and claim expense ratio –
calendar year
83.9
%
82.1
%
83.1
%
Underwriting expense ratio
26.7
%
37.2
%
31.2
%
Combined ratio
110.6
%
119.3
%
114.3
%
RenaissanceRe Holdings
Ltd.
Supplemental Financial Data -
Segment Information
(in thousands of United States
Dollars, except percentages)
(Unaudited)
Year ended December 31,
2019
Property
Casualty and Specialty
Other
Total
Gross premiums written
$
2,430,985
$
2,376,765
$
—
$
4,807,750
Net premiums written
$
1,654,259
$
1,727,234
$
—
$
3,381,493
Net premiums earned
$
1,627,494
$
1,710,909
$
—
$
3,338,403
Net claims and claim expenses incurred
965,424
1,131,637
(40
)
2,097,021
Acquisition expenses
313,761
448,678
(207
)
762,232
Operational expenses
139,015
84,546
(828
)
222,733
Underwriting income
$
209,294
$
46,048
$
1,075
256,417
Net investment income
423,833
423,833
Net foreign exchange losses
(2,938
)
(2,938
)
Equity in earnings of other ventures
23,224
23,224
Other income
4,949
4,949
Net realized and unrealized gains on
investments
414,483
414,483
Corporate expenses
(94,122
)
(94,122
)
Interest expense
(58,364
)
(58,364
)
Income before taxes and redeemable
noncontrolling interests
967,482
Income tax expense
(17,215
)
(17,215
)
Net income attributable to redeemable
noncontrolling interests
(201,469
)
(201,469
)
Dividends on preference shares
(36,756
)
(36,756
)
Net income attributable to RenaissanceRe
common shareholders
$
712,042
Net claims and claim expenses incurred –
current accident year
$
968,357
$
1,155,519
$
—
$
2,123,876
Net claims and claim expenses incurred –
prior accident years
(2,933
)
(23,882
)
(40
)
(26,855
)
Net claims and claim expenses incurred –
total
$
965,424
$
1,131,637
$
(40
)
$
2,097,021
Net claims and claim expense ratio –
current accident year
59.5
%
67.5
%
63.6
%
Net claims and claim expense ratio – prior
accident years
(0.2
)%
(1.4
)%
(0.8
)%
Net claims and claim expense ratio –
calendar year
59.3
%
66.1
%
62.8
%
Underwriting expense ratio
27.8
%
31.2
%
29.5
%
Combined ratio
87.1
%
97.3
%
92.3
%
Year ended December 31,
2018
Property
Casualty and Specialty
Other
Total
Gross premiums written
$
1,760,926
$
1,549,501
$
—
$
3,310,427
Net premiums written
$
1,055,188
$
1,076,714
$
—
$
2,131,902
Net premiums earned
$
1,050,831
$
925,298
$
—
$
1,976,129
Net claims and claim expenses incurred
497,895
622,320
(197
)
1,120,018
Acquisition expenses
177,912
255,079
(2
)
432,989
Operational expenses
112,954
64,883
430
178,267
Underwriting income (loss)
$
262,070
$
(16,984
)
$
(231
)
244,855
Net investment income
261,866
261,866
Net foreign exchange losses
(12,428
)
(12,428
)
Equity in earnings of other ventures
18,474
18,474
Other income
5,969
5,969
Net realized and unrealized losses on
investments
(175,069
)
(175,069
)
Corporate expenses
(33,983
)
(33,983
)
Interest expense
(47,069
)
(47,069
)
Income before taxes and redeemable
noncontrolling interests
262,615
Income tax benefit
6,302
6,302
Net income attributable to redeemable
noncontrolling interests
(41,553
)
(41,553
)
Dividends on preference shares
(30,088
)
(30,088
)
Net income available to RenaissanceRe
common shareholders
$
197,276
Net claims and claim expenses incurred –
current accident year
$
719,185
$
671,582
$
—
$
1,390,767
Net claims and claim expenses incurred –
prior accident years
(221,290
)
(49,262
)
(197
)
(270,749
)
Net claims and claim expenses incurred –
total
$
497,895
$
622,320
$
(197
)
$
1,120,018
Net claims and claim expense ratio –
current accident year
68.4
%
72.6
%
70.4
%
Net claims and claim expense ratio – prior
accident years
(21.0
)%
(5.3
)%
(13.7
)%
Net claims and claim expense ratio –
calendar year
47.4
%
67.3
%
56.7
%
Underwriting expense ratio
27.7
%
34.5
%
30.9
%
Combined ratio
75.1
%
101.8
%
87.6
%
RenaissanceRe Holdings
Ltd.
Supplemental Financial Data -
Gross Premiums Written
(in thousands of United States
Dollars)
(Unaudited)
Three months ended
Twelve months ended
December 31, 2019
December 31, 2018
December 31, 2019
December 31, 2018
Property Segment
Catastrophe
$
44,824
$
108,937
$
1,595,472
$
1,349,324
Other property
200,177
90,981
835,513
411,602
Property segment gross premiums
written
$
245,001
$
199,918
$
2,430,985
$
1,760,926
Casualty and Specialty Segment
General casualty (1)
$
197,338
$
75,797
$
807,901
$
453,097
Professional liability (2)
189,838
119,391
650,750
485,851
Financial lines (3)
126,983
102,167
457,000
352,902
Other (4)
146,319
50,482
461,114
257,651
Casualty and Specialty segment gross
premiums written
$
660,478
$
347,837
$
2,376,765
$
1,549,501
(1)
Includes automobile liability, casualty
clash, employer’s liability, umbrella or excess casualty, workers’
compensation and general liability.
(2)
Includes directors and officers, medical
malpractice, and professional indemnity.
(3)
Includes financial guaranty, mortgage
guaranty, political risk, surety and trade credit.
(4)
Includes accident and health, agriculture,
aviation, cyber, energy, marine, satellite and terrorism. Lines of
business such as regional multi-line and whole account may have
characteristics of various other classes of business, and are
allocated accordingly.
RenaissanceRe Holdings
Ltd.
Supplemental Financial Data -
Total Investment Result
(in thousands of United States
Dollars, except percentages)
(Unaudited)
Three months ended
Twelve months ended
December 31, 2019
December 31, 2018
December 31, 2019
December 31, 2018
Fixed maturity investments
$
85,937
$
60,189
$
318,503
$
211,973
Short term investments
11,552
11,231
56,264
33,571
Equity investments trading
1,539
1,383
4,808
4,474
Other investments
Private equity investments
6,815
(11,672
)
14,981
477
Other
8,833
(4,871
)
39,246
22,475
Cash and cash equivalents
1,875
1,102
7,676
3,810
116,551
57,362
441,478
276,780
Investment expenses
(3,856
)
(4,024
)
(17,645
)
(14,914
)
Net investment income
112,695
53,338
423,833
261,866
Gross realized gains
45,814
6,339
133,409
21,284
Gross realized losses
(8,380
)
(23,399
)
(43,149
)
(91,098
)
Net realized gains (losses) on fixed
maturity investments
37,434
(17,060
)
90,260
(69,814
)
Net unrealized (losses) gains on fixed
maturity investments trading
(72,956
)
16,212
170,183
(57,310
)
Net realized and unrealized (losses) gains
on investments-related derivatives
(3,212
)
(8,021
)
58,891
(8,784
)
Net realized gains on equity investments
trading
396
5,898
31,062
27,739
Net unrealized gains (losses) on equity
investments trading
56,235
(85,683
)
64,087
(66,900
)
Net realized and unrealized gains
(losses) on investments
17,897
(88,654
)
414,483
(175,069
)
Total investment result
$
130,592
$
(35,316
)
$
838,316
$
86,797
Total investment return -
annualized
3.1
%
(1.2
)%
5.2
%
0.8
%
Comments on Regulation G
In addition to the GAAP financial measures set forth in this
Press Release, the Company has included certain non-GAAP financial
measures within the meaning of Regulation G. The Company has
provided these financial measures in previous investor
communications and the Company’s management believes that these
measures are important to investors and other interested persons,
and that investors and such other persons benefit from having a
consistent basis for comparison between quarters and for comparison
with other companies within the industry. These measures may not,
however, be comparable to similarly titled measures used by
companies outside of the insurance industry. Investors are
cautioned not to place undue reliance on these non-GAAP measures in
assessing the Company’s overall financial performance.
Operating Income Available to RenaissanceRe Common
Shareholders and Operating Return on Average Common Equity -
Annualized
The Company uses “operating income available to RenaissanceRe
common shareholders” as a measure to evaluate the underlying
fundamentals of its operations and believes it to be a useful
measure of its corporate performance. “Operating income available
to RenaissanceRe common shareholders” as used herein differs from
“net income (loss) available (attributable) to RenaissanceRe common
shareholders,” which the Company believes is the most directly
comparable GAAP measure, by the exclusion of net realized and
unrealized gains and losses on investments attributable to
RenaissanceRe common shareholders, transaction and integration
expenses associated with the acquisition of TMR and the income tax
expense or benefit associated with these exclusions to “net income
(loss) available (attributable) to RenaissanceRe common
shareholders." The Company’s management believes that “operating
income available to RenaissanceRe common shareholders” is useful to
investors because it more accurately measures and predicts the
Company’s results of operations by removing the variability arising
from: fluctuations in the Company’s fixed maturity investment
portfolio, equity investments trading and investments-related
derivatives; certain transaction and integration expenses
associated with the acquisition of TMR; and the associated income
tax expense or benefit of these adjustments. The Company also uses
“operating income available to RenaissanceRe common shareholders”
to calculate “operating income available to RenaissanceRe common
shareholders per common share - diluted” and “operating return on
average common equity - annualized.” The following is a
reconciliation of: (1) net income (loss) available (attributable)
to RenaissanceRe common shareholders to operating income available
to RenaissanceRe common shareholders; (2) net income (loss)
available (attributable) to RenaissanceRe common shareholders per
common share - diluted to operating income available to
RenaissanceRe common shareholders per common share - diluted; and
(3) return on average common equity - annualized to operating
return on average common equity - annualized:
Three months ended
Twelve months ended
(in thousands of United States Dollars,
except per share amounts and percentages)
December 31, 2019
December 31, 2018
December 31, 2019
December 31, 2018
Net income (loss) available (attributable)
to RenaissanceRe common shareholders
$
33,773
$
(83,906
)
$
712,042
$
197,276
Adjustment for net realized and unrealized
(gains) losses on investments attributable to RenaissanceRe common
shareholders (1)
(18,188
)
88,987
(379,453
)
154,205
Adjustment for transaction and integration
expenses associated with the acquisition of TMR
5,700
3,296
49,725
3,296
Adjustment for income tax expense
(benefit) (2)
1,728
(3,580
)
20,597
(5,750
)
Operating income available to
RenaissanceRe common shareholders
$
23,013
$
4,797
$
402,911
$
349,027
Net income (loss) available (attributable)
to RenaissanceRe common shareholders per common share - diluted
$
0.77
$
(2.10
)
$
16.29
$
4.91
Adjustment for net realized and unrealized
(gains) losses on investments attributable to RenaissanceRe common
shareholders (1)
(0.42
)
2.22
(8.79
)
3.88
Adjustment for transaction and integration
expenses associated with the acquisition of TMR
0.13
0.08
1.15
0.08
Adjustment for income tax expense
(benefit) (2)
0.04
(0.09
)
0.48
(0.14
)
Operating income available to
RenaissanceRe common shareholders per common share - diluted
$
0.52
$
0.11
$
9.13
$
8.73
Return on average common equity -
annualized
2.5
%
(7.8
)%
14.1
%
4.7
%
Adjustment for net realized and unrealized
(gains) losses on investments attributable to RenaissanceRe common
shareholders (1)
(1.3
)%
8.2
%
(7.5
)%
3.7
%
Adjustment for transaction and integration
expenses associated with the acquisition of TMR
0.4
%
0.3
%
1.0
%
0.1
%
Adjustment for income tax expense
(benefit) (2)
0.1
%
(0.3
)%
0.4
%
(0.1
)%
Operating return on average common equity
- annualized
1.7
%
0.4
%
8.0
%
8.4
%
(1)
Adjustment for net realized and unrealized
(gains) losses on investments attributable to RenaissanceRe common
shareholders represents: net realized and unrealized gains (losses)
on investments as set forth in the Company's consolidated statement
of operations less net realized and unrealized gains (losses)
attributable to redeemable noncontrolling interests, which is
included in net loss (income) attributable to redeemable
noncontrolling interests in the Company's consolidated statement of
operations. Comparative information for all prior periods has been
updated to conform to the current methodology and presentation.
(2)
Adjustment for income tax expense
(benefit) represents the income tax expense (benefit) associated
with the adjustments to net income available to RenaissanceRe
common shareholders. The income tax impact is estimated by applying
the statutory rates of applicable jurisdictions, after
consideration of other relevant factors.
Tangible Book Value Per Common Share and Tangible Book Value
Per Common Share Plus Accumulated Dividends
The Company has included in this Press Release “tangible book
value per common share” and “tangible book value per common share
plus accumulated dividends.” “Tangible book value per common share”
is defined as book value per common share excluding goodwill and
intangible assets per share. “Tangible book value per common share
plus accumulated dividends” is defined as book value per common
share excluding goodwill and intangible assets per share, plus
accumulated dividends. The Company’s management believes “tangible
book value per common share” and “tangible book value per common
share plus accumulated dividends” are useful to investors because
they provide a more accurate measure of the realizable value of
shareholder returns, excluding the impact of goodwill and
intangible assets. The following is a reconciliation of book value
per common share to tangible book value per common share and
tangible book value per common share plus accumulated
dividends:
At
December 31, 2019
September 30, 2019
June 30, 2019
March 31, 2019
December 31, 2018
Book value per common share
$
120.53
$
120.07
$
119.17
$
111.05
$
104.13
Adjustment for goodwill and other
intangibles (1)
(6.50
)
(6.55
)
(6.60
)
(6.66
)
(6.28
)
Tangible book value per common share
114.03
113.52
112.57
104.39
97.85
Adjustment for accumulated dividends
20.68
20.34
20.00
19.66
19.32
Tangible book value per common share plus
accumulated dividends
$
134.71
$
133.86
$
132.57
$
124.05
$
117.17
Quarterly change in book value per common
share
0.4
%
0.8
%
7.3
%
6.6
%
(1.0
)%
Quarterly change in tangible book value
per common share plus change in accumulated dividends
0.7
%
1.1
%
8.2
%
7.0
%
(0.4
)%
Year to date change in book value per
common share
15.7
%
15.3
%
14.4
%
6.6
%
4.4
%
Year to date change in tangible book value
per common share plus change in accumulated dividends
17.9
%
17.1
%
15.7
%
7.0
%
6.4
%
(1)
At December 31, 2019, September 30, 2019,
June 30, 2019, March 31, 2019 and December 31, 2018, goodwill and
other intangibles included $24.9 million, $25.6 million, $26.3
million, $27.0 million and $27.7 million, respectively, of goodwill
and other intangibles included in investments in other ventures,
under equity method.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200204006053/en/
INVESTOR: Keith McCue Senior Vice President, Finance
& Investor Relations RenaissanceRe Holdings Ltd. (441)
239-4830
MEDIA: Keil Gunther Vice President, Marketing &
Communications RenaissanceRe Holdings Ltd. (441) 239-4932 or Kekst
CNC Dawn Dover (212) 521-4800
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