RenaissanceRe Holdings Ltd. (NYSE: RNR) (the “Company” or
“RenaissanceRe”) today reported net income available to
RenaissanceRe common shareholders of $56.7 million, or $1.42 per
diluted common share, in the first quarter of 2018, compared to
$92.4 million, or $2.25 per diluted common share, in the first
quarter of 2017. Operating income available to RenaissanceRe common
shareholders was $135.2 million, or $3.40 per diluted common share,
in the first quarter of 2018, compared to $53.7 million, or $1.30
per diluted common share, in the first quarter of 2017. The Company
reported an annualized return on average common equity of 5.7% and
an annualized operating return on average common equity of 13.5% in
the first quarter of 2018, compared to 8.3% and 4.8%, respectively,
in the first quarter of 2017. Book value per common share increased
$0.57, or 0.6%, to $100.29, in the first quarter of 2018, compared
to a 0.8% increase in the first quarter of 2017. Tangible book
value per common share plus accumulated dividends increased $0.73,
or 0.8%, to $111.96 in the first quarter of 2018, compared to a
1.2% increase in the first quarter of 2017.
Kevin J. O'Donnell, CEO, commented: “I am pleased with our solid
results and very strong execution in the first quarter. We
delivered an annualized operating return on average common
equity of 13.5% for the quarter, highlighted by low
catastrophe activity, strong growth in premiums, prior year
favorable development and a continued increase in operating
efficiency. The January 1 renewal was successful, as we
increased both the size and efficiency of our portfolio of
risk. Moving into the mid-year renewals, we remain focused on
implementing our strategy in order to continue to build a diverse
and profitable book of business and maximize shareholder
value.”
FIRST QUARTER 2018
SUMMARY
- Gross premiums written increased by
$237.6 million, or 25.8%, to $1.2 billion, in the first quarter of
2018, compared to the first quarter of 2017, driven by increases of
$186.4 million in the Property segment and $51.1 million in the
Casualty and Specialty segment.
- Underwriting income of $129.6 million
and a combined ratio of 70.6% in the first quarter of 2018. The
Property segment generated underwriting income of $127.2 million
and a combined ratio of 43.5%. The Casualty and Specialty segment
generated underwriting income of $2.6 million and a combined ratio
of 98.8%.
- The Company’s portfolio of fixed
maturity and short term investments had a yield to maturity of 2.9%
at March 31, 2018.
Underwriting Results by Segment
Property Segment
Gross premiums written in the Property segment were $707.0
million in the first quarter of 2018, an increase of $186.4
million, or 35.8%, compared to $520.5 million in the first quarter
of 2017.
Gross premiums written in the catastrophe class of business were
$590.3 million in the first quarter of 2018, an increase of $175.9
million, or 42.4%, compared to the first quarter of 2017. The
increase in gross premiums written in the catastrophe class of
business was driven primarily by an improved rate environment
combined with expanded participation on existing transactions and
certain new transactions in the catastrophe excess of loss market.
Gross premiums written in the other property class of business were
$116.6 million in the first quarter of 2018, an increase of $10.5
million, or 9.9%, compared to the first quarter of 2017. The
increase in gross premiums written in the other property class of
business was primarily driven by growth across a number of the
Company’s underwriting platforms, both from existing relationships
and through new opportunities.
Ceded premiums written in the Property segment were $352.9
million in the first quarter of 2018, an increase of $122.2
million, or 53.0%, compared to $230.7 million in the first quarter
of 2017. The increase in ceded premiums written was principally due
to a significant portion of the increase in gross premiums written
in the catastrophe class of business noted above being subsequently
ceded to third-party investors in the Company’s managed joint
venture, Upsilon RFO.
The Property segment generated underwriting income of $127.2
million and a combined ratio of 43.5% in the first quarter of 2018,
compared to $91.4 million and 51.1%, respectively, in the first
quarter of 2017. Principally impacting the Property segment
underwriting result and combined ratio was favorable development on
prior accident years net claims and claim expenses of $27.6
million, or 12.2 percentage points, during the first quarter of
2018, compared to $0.9 million, or 0.5 percentage points, in the
first quarter of 2017, combined with an increase in net premiums
earned driven by the growth in net premiums written over the
trailing twelve months. The favorable development during the first
quarter of 2018 included $27.1 million of net decreases in the
estimated ultimate losses associated with Hurricanes Harvey, Irma
and Maria, the Mexico City Earthquake and the wildfires in
California during the fourth quarter of 2017, and was principally
within the other property class of business.
Casualty and Specialty Segment
Gross premiums written in the Casualty and Specialty segment
were $452.7 million in the first quarter of 2018, an increase of
$51.1 million, or 12.7%, compared to $401.6 million in the first
quarter of 2017. The $51.1 million increase was principally due to
selective growth from new and existing business within certain
classes of business where the Company found comparably attractive
risk-return attributes.
The Casualty and Specialty segment generated underwriting income
of $2.6 million and had a combined ratio of 98.8% in the first
quarter of 2018, compared to an underwriting loss of $49.3 million
and a combined ratio 127.5% in the first quarter of 2017. The
decrease in the Casualty and Specialty segment combined ratio in
the first quarter of 2018, compared to the first quarter of 2017,
was principally driven by a 20.8 percentage point decrease in the
Casualty and Specialty segment net claims and claim expenses ratio
principally as a result of favorable development on prior accident
years net claims and claim expenses compared to adverse development
during the first quarter of 2017, combined with a 7.9 percentage
point decrease in the underwriting expense ratio. The decrease in
the underwriting expense ratio was primarily driven by an increase
in net premiums earned while continuing to leverage the Casualty
and Specialty segment’s existing expense base.
During the first quarter of 2018, the Casualty and Specialty
segment experienced favorable development on prior accident years
net claims and claim expenses of $3.8 million, or 1.8 percentage
points, compared to $30.3 million, or 16.9 percentage points, of
adverse development on prior accident years net claims and claim
expenses in the first quarter of 2017. The favorable development
during the first quarter of 2018 was principally driven by reported
losses being lower than expected, compared to the first quarter of
2017 which experienced adverse development associated with the
decrease in the Ogden rate during that period.
Other Items
- 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 a loss of $25.7
million in the first quarter of 2018, compared to a gain of $97.7
million in the first quarter of 2017, a decrease of $123.4 million.
The decrease in the total investment result was principally due to
realized and unrealized losses on the Company’s fixed maturity
investment portfolio driven by an upward shift in the interest rate
yield curve during the first quarter of 2018, compared to less
pronounced yield curve impacts in the first quarter of 2017. In
addition, the Company’s equity investments trading portfolio
experienced minimal unrealized losses during the first quarter of
2018, compared to significant realized gains during the first
quarter of 2017.
- Effective January 1, 2018 and April 1,
2018, Upsilon RFO issued $600.5 million and $31.7 million,
respectively, of non-voting preference shares to investors,
including $75.0 million and $26.5 million, respectively, to the
Company. Effective April 1, 2018, the Company’s participation in
the risks assumed by Upsilon RFO was 16.9%.
This Press Release includes certain non-GAAP financial measures
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 “Investor Information - 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, May 2,
2018 at 10:00 a.m. ET to discuss this release. Live broadcast of
the conference call will be available through the “Investor
Information - Event Calendar” 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, 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 Company’s ability
to maintain its financial strength ratings; the effect of climate
change on the Company’s business; collection on claimed
retrocessional coverage, and new retrocessional reinsurance being
available on acceptable terms and providing the coverage that we
intended to obtain; 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 effect of emerging claims and coverage issues;
soft reinsurance underwriting market conditions; 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; 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 Company’s ability to retain key senior
officers and to attract or retain the executives and employees
necessary to manage its business; the performance of the Company’s
investment portfolio; losses that 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 the impairments taken on investments; the effect 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 effectively manage
capital on behalf of investors in joint ventures or other entities
it manages; foreign currency exchange rate fluctuations; 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 industry; 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; 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; aspects of the Company’s corporate structure that may
discourage third-party takeovers or other transactions; 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; 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; 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 March 31,
2018 March 31, 2017
Revenues Gross premiums written $ 1,159,652 $ 922,090
Net premiums written $ 663,044 $ 544,136 Increase in
unearned premiums (222,762 ) (178,091 ) Net premiums earned 440,282
366,045 Net investment income 56,476 54,325 Net foreign exchange
gains 3,757 8,165 Equity in earnings (losses) of other ventures 857
(1,507 ) Other (losses) income (1,242 ) 1,665 Net realized and
unrealized (losses) gains on investments (82,144 ) 43,373
Total revenues 417,986 472,066
Expenses
Net claims and claim expenses incurred 171,703 193,081 Acquisition
expenses 97,711 83,282 Operational expenses 41,272 47,283 Corporate
expenses 6,733 5,286 Interest expense 11,767 10,526
Total expenses 329,186 339,458 Income before
taxes 88,800 132,608 Income tax benefit (expense) 3,407 (334
)
Net income 92,207 132,274 Net income attributable to
noncontrolling interests (29,899 ) (34,327 )
Net income attributable to
RenaissanceRe
62,308 97,947 Dividends on preference shares (5,595 ) (5,595 )
Net income available to RenaissanceRe common shareholders $
56,713 $ 92,352 Net income available to
RenaissanceRe common shareholders per common share - basic $ 1.42 $
2.26 Net income available to RenaissanceRe common shareholders per
common share - diluted $ 1.42 $ 2.25 Operating income available to
RenaissanceRe common shareholders per common share - diluted (1) $
3.40 $ 1.30 Average shares outstanding - basic 39,552 40,408
Average shares outstanding - diluted 39,599 40,623 Net
claims and claim expense ratio 39.0 % 52.7 % Underwriting expense
ratio 31.6 % 35.7 % Combined ratio 70.6 % 88.4 % Return on
average common equity - annualized 5.7 % 8.3 % Operating return on
average common equity - annualized (1) 13.5 % 4.8 %
(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)
March 31,
2018 December 31, 2017 Assets
(Unaudited) (Audited) Fixed maturity investments trading, at fair
value $ 7,404,761 $ 7,426,555 Short term investments, at fair value
1,616,597 991,863 Equity investments trading, at fair value 387,462
388,254 Other investments, at fair value 692,652 594,793
Investments in other ventures, under equity method 120,232
101,974 Total investments 10,221,704 9,503,439 Cash and cash
equivalents 647,973 1,361,592 Premiums receivable 1,684,630
1,304,622 Prepaid reinsurance premiums 794,921 533,546 Reinsurance
recoverable 1,572,321 1,586,630 Accrued investment income 43,069
42,235 Deferred acquisition costs 477,010 426,551 Receivable for
investments sold 111,431 103,145 Other assets 127,571 121,226
Goodwill and other intangibles 241,572 243,145
Total
assets $ 15,922,202 $ 15,226,131
Liabilities,
Noncontrolling Interests and Shareholders’ Equity
Liabilities Reserve for claims and claim expenses $
4,912,727 $ 5,080,408 Unearned premiums 1,961,746 1,477,609 Debt
989,995 989,623 Reinsurance balances payable 1,758,948 989,090
Payable for investments purchased 306,664 208,749 Other liabilities
130,505 792,771
Total liabilities 10,060,585
9,538,250 Redeemable noncontrolling interest 1,425,364 1,296,506
Shareholders’ Equity Preference shares 400,000 400,000
Common shares 40,246 40,024 Additional paid-in capital 38,552
37,355 Accumulated other comprehensive income 194 224 Retained
earnings 3,957,261 3,913,772
Total shareholders’ equity
attributable to RenaissanceRe 4,436,253 4,391,375
Total liabilities, noncontrolling interests and shareholders’
equity $ 15,922,202 $ 15,226,131
Book value
per common share $ 100.29 $ 99.72
RenaissanceRe Holdings Ltd. Supplemental Financial Data -
Segment Information (in thousands of United States Dollars,
except percentages) (Unaudited)
Three months ended
March 31, 2018 Property Casualty and
Specialty Other Total
Gross premiums written $ 706,968 $ 452,684 $ —
$ 1,159,652 Net premiums written $ 354,077 $ 308,967
$ — $ 663,044 Net premiums earned $ 225,049 $
215,233 $ — $ 440,282 Net claims and claim expenses incurred 30,607
141,078 18 171,703 Acquisition expenses 40,721 56,990 — 97,711
Operational expenses 26,546 14,593 133 41,272
Underwriting income (loss) $ 127,175 $ 2,572 $
(151 ) 129,596 Net investment income 56,476 56,476 Net foreign
exchange gains 3,757 3,757 Equity in earnings of other ventures 857
857 Other loss (1,242 ) (1,242 ) Net realized and unrealized losses
on investments (82,144 ) (82,144 ) Corporate expenses (6,733 )
(6,733 ) Interest expense (11,767 ) (11,767 ) Income before taxes
and redeemable noncontrolling interests 88,800 Income tax benefit
3,407 3,407 Net income attributable to redeemable noncontrolling
interests (29,899 ) (29,899 ) Dividends on preference shares (5,595
) (5,595 ) Net income attributable to RenaissanceRe common
shareholders $ 56,713 Net claims and claim expenses
incurred – current accident year $ 58,169 $ 144,869 $ — $ 203,038
Net claims and claim expenses incurred – prior accident years
(27,562 ) (3,791 ) 18 (31,335 ) Net claims and claim
expenses incurred – total $ 30,607 $ 141,078 $ 18
$ 171,703 Net claims and claim expense ratio –
current accident year 25.8 % 67.3 % 46.1 % Net claims and claim
expense ratio – prior accident years (12.2 )% (1.8 )% (7.1 )% Net
claims and claim expense ratio – calendar year 13.6 % 65.5 % 39.0 %
Underwriting expense ratio 29.9 % 33.3 % 31.6 % Combined ratio 43.5
% 98.8 % 70.6 %
Three months ended March 31, 2017
Property Casualty and Specialty Other
Total Gross premiums written $ 520,529 $ 401,561
$ — $ 922,090 Net premiums written $ 289,871
$ 254,265 $ — $ 544,136 Net premiums
earned $ 186,988 $ 179,059 $ (2 ) $ 366,045 Net claims and claim
expenses incurred 38,838 154,571 (328 ) 193,081 Acquisition
expenses 29,103 54,179 — 83,282 Operational expenses 27,665
19,607 11 47,283 Underwriting income (loss) $
91,382 $ (49,298 ) $ 315 42,399 Net investment income
54,325 54,325 Net foreign exchange gains 8,165 8,165 Equity in
losses of other ventures (1,507 ) (1,507 ) Other income 1,665 1,665
Net realized and unrealized gains on investments 43,373 43,373
Corporate expenses (5,286 ) (5,286 ) Interest expense (10,526 )
(10,526 ) Income before taxes and noncontrolling interests 132,608
Income tax expense (334 ) (334 ) Net income attributable to
noncontrolling interests (34,327 ) (34,327 ) Dividends on
preference shares (5,595 ) (5,595 ) Net income available to
RenaissanceRe common shareholders $ 92,352 Net claims
and claim expenses incurred – current accident year $ 39,766 $
124,309 $ — $ 164,075 Net claims and claim expenses incurred –
prior accident years (928 ) 30,262 (328 ) 29,006 Net
claims and claim expenses incurred – total $ 38,838 $
154,571 $ (328 ) $ 193,081 Net claims and
claim expense ratio – current accident year 21.3 % 69.4 % 44.8 %
Net claims and claim expense ratio – prior accident years (0.5 )%
16.9 % 7.9 % Net claims and claim expense ratio – calendar year
20.8 % 86.3 % 52.7 % Underwriting expense ratio 30.3 % 41.2 % 35.7
% Combined ratio 51.1 % 127.5 % 88.4 %
RenaissanceRe Holdings Ltd. Supplemental Financial Data -
Gross Premiums Written (in thousands of United States Dollars)
(Unaudited)
Three months ended March
31, 2018 March 31, 2017
Property
Segment
Catastrophe $ 590,337 $ 414,424 Other property 116,631
106,105 Property segment gross premiums written $ 706,968 $
520,529
Casualty and
Specialty Segment
Professional liability (1) $ 157,113 $ 132,306 General casualty (2)
126,626 122,293 Financial lines (3) 93,267 85,143 Other (4) 75,678
61,819 Casualty and Specialty segment gross premiums written
$ 452,684 $ 401,561 (1) Includes directors and
officers, medical malpractice, and professional indemnity. (2)
Includes automobile liability, casualty clash, employer’s
liability, umbrella or excess casualty, workers’ compensation and
general liability (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)
(Unaudited)
Three months ended
March 31, 2018 March 31, 2017 Fixed
maturity investments $ 45,643 $ 43,419 Short term investments 5,304
1,724 Equity investments trading 698 811 Other investments Private
equity investments (434 ) 7,802 Other 8,023 4,072 Cash and cash
equivalents 565 189 59,799 58,017 Investment expenses
(3,323 ) (3,692 )
Net investment income 56,476 54,325
Gross realized gains 4,583 11,461 Gross realized
losses (25,853 ) (16,533 ) Net realized losses on fixed maturity
investments (21,270 ) (5,072 ) Net unrealized (losses) gains on
fixed maturity investments trading (55,372 ) 24,635 Net realized
and unrealized losses on investments-related derivatives (4,364 )
(56 ) Net realized gains on equity investments trading 234 20,915
Net unrealized (losses) gains on equity investments trading (1,372
) 2,951
Net realized and unrealized (losses) gains on
investments (82,144 ) 43,373
Total investment
result $ (25,668 ) $ 97,698
Total investment
return - annualized (1.0 )% 4.1 %
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.
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 available 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, and the associated
income tax expense or benefit, and the exclusion of the write-down
of a portion of the Company's deferred tax asset as a result of the
reduction in the U.S. corporate tax rate from 35% to 21% effective
January 1, 2018 pursuant to the Tax Bill, which was enacted on
December 22, 2017. 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, the associated income tax expense
or benefit of those fluctuations, and the non-recurring impact of
the write-down of a portion of the Company's deferred tax assets as
a result of the reduction in the U.S. corporate tax rate from 35%
to 21% effective January 1, 2018 pursuant to the Tax Cuts and Jobs
Act of 2017 (the “Tax Bill”), which was enacted on December 22,
2017. 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 available to RenaissanceRe common shareholders to operating
income available to RenaissanceRe common shareholders; 2) net
income available 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 (in thousands of United
States Dollars, except percentages)
March 31, 2018
March 31, 2017 Net income available to
RenaissanceRe common shareholders $ 56,713 $ 92,352 Adjustment for
net realized and unrealized losses (gains) on investments 82,144
(43,373 ) Adjustment for income tax (benefit) expense (1) (3,648 )
4,707 Operating income available to RenaissanceRe common
shareholders $ 135,209 $ 53,686 Net income
available to RenaissanceRe common shareholders per common share -
diluted $ 1.42 $ 2.25 Adjustment for net realized and unrealized
losses (gains) on investments 2.07 (1.07 ) Adjustment for income
tax (benefit) expense (1) (0.09 ) 0.12 Operating income
available to RenaissanceRe common shareholders per common share -
diluted $ 3.40 $ 1.30 Return on average common
equity - annualized 5.7 % 8.3 % Adjustment for net realized and
unrealized losses (gains) on investments 8.2 % (3.9 )% Adjustment
for income tax (benefit) expense (1) (0.4 )% 0.4 % Operating return
on average common equity - annualized 13.5 % 4.8 % (1)
Adjustment for income tax (benefit) expense represents the
income tax (benefit) expense associated with the adjustment for net
realized and unrealized losses (gains) on investments. The income
tax impact is estimated by applying the statutory rates of
applicable jurisdictions, after consideration of other relevant
factors.
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 March 31, 2018
December 31, 2017 September 30,
2017 June 30, 2017
March 31, 2017 Book value per common share $ 100.29 $
99.72 $ 100.00 $ 113.08 $ 109.37 Adjustment for goodwill and other
intangibles (1) (6.66 ) (6.49 ) (6.55 ) (6.56 ) (6.55 ) Tangible
book value per common share 93.63 93.23 93.45 106.52 102.82
Adjustment for accumulated dividends 18.33 18.00
17.68 17.36 17.04 Tangible book value per
common share plus accumulated dividends $ 111.96 $ 111.23
$ 111.13 $ 123.88 $ 119.86
Quarterly change in book value per common share 0.6 % (0.3 )% (11.6
)% 3.4 % 0.8 % Quarterly change in tangible book value per common
share plus change in accumulated dividends 0.8 % 0.1 % (12.0 )% 3.9
% 1.2 % (1) At March 31, 2018, December 31, 2017,
September 30, 2017, June 30, 2017 and March 31, 2017, goodwill and
other intangibles included $26.3 million, $16.7 million, $17.4
million, $18.1 million and $18.9 million, respectively, of goodwill
and other intangibles included in investments in other ventures,
under equity method.
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version on businesswire.com: https://www.businesswire.com/news/home/20180501006829/en/
INVESTORS:RenaissanceRe Holdings Ltd.Keith McCue,
441-239-4830Senior Vice President, Finance and Investor
RelationsorMEDIA:RenaissanceRe Holdings Ltd.Keil Gunther,
441-239-4932Vice President, Marketing & CommunicationsorKekst
and CompanyPeter Hill or Dawn Dover, 212-521-4800
RenaissanceRe (NYSE:RNR)
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RenaissanceRe (NYSE:RNR)
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