Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 20, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | RENAISSANCERE HOLDINGS LTD. | |
Trading Symbol | RNR | |
Entity Central Index Key | 913,144 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding (in shares) | 40,263,226 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Fixed maturity investments trading, at fair value – amortized cost $7,499,997 at June 30, 2018 (December 31, 2017 – $7,434,870) | $ 7,420,778 | $ 7,426,555 |
Short term investments, at fair value | 2,031,943 | 991,863 |
Equity investments trading, at fair value | 432,804 | 388,254 |
Other investments, at fair value | 713,200 | 594,793 |
Investments in other ventures, under equity method | 111,935 | 101,974 |
Total investments | 10,710,660 | 9,503,439 |
Cash and cash equivalents | 548,472 | 1,361,592 |
Premiums receivable | 1,959,647 | 1,304,622 |
Prepaid reinsurance premiums | 925,501 | 533,546 |
Reinsurance recoverable | 1,454,991 | 1,586,630 |
Accrued investment income | 44,810 | 42,235 |
Deferred acquisition costs | 511,155 | 426,551 |
Receivable for investments sold | 505,907 | 103,145 |
Other assets | 122,048 | 121,226 |
Goodwill and other intangible assets | 240,187 | 243,145 |
Total assets | 17,023,378 | 15,226,131 |
Liabilities | ||
Reserve for claims and claim expenses | 4,702,345 | 5,080,408 |
Unearned premiums | 2,267,450 | 1,477,609 |
Debt | 990,371 | 989,623 |
Reinsurance balances payable | 2,085,034 | 989,090 |
Payable for investments purchased | 490,589 | 208,749 |
Other liabilities | 134,100 | 792,771 |
Total liabilities | 10,669,889 | 9,538,250 |
Commitments and Contingencies | ||
Redeemable noncontrolling interests | 1,493,428 | 1,296,506 |
Shareholders’ Equity | ||
Preference shares: $1.00 par value – 16,010,000 shares issued and outstanding at June 30, 2018 (December 31, 2017 – 16,000,000) | 650,000 | 400,000 |
Common shares: $1.00 par value – 40,263,226 shares issued and outstanding at June 30, 2018 (December 31, 2017 – 40,023,789) | 40,263 | 40,024 |
Additional paid-in capital | 35,094 | 37,355 |
Accumulated other comprehensive (loss) income | (1,101) | 224 |
Retained earnings | 4,135,805 | 3,913,772 |
Total shareholders’ equity attributable to RenaissanceRe | 4,860,061 | 4,391,375 |
Total liabilities, noncontrolling interests and shareholders’ equity | $ 17,023,378 | $ 15,226,131 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Fixed maturity investments trading, amortized cost | $ 7,499,997 | $ 7,434,870 |
Preference shares, par value (In dollars per share) | $ 1 | $ 1 |
Preference shares, shares issued (In shares) | 16,010,000 | 16,000,000 |
Preference shares, shares outstanding (In shares) | 16,010,000 | 16,000,000 |
Common shares, par value (In dollars per share) | $ 1 | $ 1 |
Common shares, Shares issued (In shares) | 40,263,226 | 40,023,789 |
Common shares, shares outstanding (In shares) | 40,263,226 | 40,023,789 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues | ||||
Gross premiums written | $ 977,343 | $ 827,415 | $ 2,136,995 | $ 1,749,505 |
Net premiums written | 604,509 | 555,745 | 1,267,553 | 1,099,881 |
Increase in unearned premiums | (175,124) | (173,480) | (397,886) | (351,571) |
Net premiums earned | 429,385 | 382,265 | 869,667 | 748,310 |
Net investment income | 71,356 | 54,163 | 127,832 | 108,488 |
Net foreign exchange (losses) gains | (10,687) | 3,109 | (6,930) | 11,274 |
Equity in earnings of other ventures | 5,826 | 5,543 | 6,683 | 4,036 |
Other income (loss) | 1,225 | 2,392 | (17) | 4,057 |
Net realized and unrealized (losses) gains on investments | (17,901) | 58,113 | (100,045) | 101,486 |
Total revenues | 479,204 | 505,585 | 897,190 | 977,651 |
Expenses | ||||
Net claims and claim expenses incurred | 60,167 | 142,587 | 231,870 | 335,668 |
Acquisition expenses | 105,052 | 88,251 | 202,763 | 171,533 |
Operational expenses | 37,543 | 41,766 | 78,815 | 89,049 |
Corporate expenses | 8,301 | 4,636 | 15,034 | 9,922 |
Interest expense | 11,768 | 10,091 | 23,535 | 20,617 |
Total expenses | 222,831 | 287,331 | 552,017 | 626,789 |
Income before taxes | 256,373 | 218,254 | 345,173 | 350,862 |
Income tax expense | (4,506) | (3,904) | (1,099) | (4,238) |
Net income | 251,867 | 214,350 | 344,074 | 346,624 |
Net income attributable to redeemable noncontrolling interests | (54,483) | (37,612) | (84,382) | (71,939) |
Net income attributable to RenaissanceRe | 197,384 | 176,738 | 259,692 | 274,685 |
Dividends on preference shares | (5,596) | (5,596) | (11,191) | (11,191) |
Net income available to RenaissanceRe common shareholders | $ 191,788 | $ 171,142 | $ 248,501 | $ 263,494 |
Net income available to RenaissanceRe common shareholders per common share – basic (in dollars per share) | $ 4.78 | $ 4.25 | $ 6.21 | $ 6.50 |
Net income available to RenaissanceRe common shareholders per common share – diluted (in dollars per share) | 4.78 | 4.24 | 6.21 | 6.47 |
Dividends declared per common share (in dollars per share) | $ 0.33 | $ 0.32 | $ 0.66 | $ 0.64 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Comprehensive income | ||||
Net income | $ 251,867 | $ 214,350 | $ 344,074 | $ 346,624 |
Change in net unrealized gains on investments | (1,295) | 219 | (1,325) | (1,272) |
Comprehensive income | 250,572 | 214,569 | 342,749 | 345,352 |
Net income attributable to redeemable noncontrolling interests | (54,483) | (37,612) | (84,382) | (71,939) |
Comprehensive income attributable to redeemable noncontrolling interests | (54,483) | (37,612) | (84,382) | (71,939) |
Comprehensive income attributable to RenaissanceRe | $ 196,089 | $ 176,957 | $ 258,367 | $ 273,413 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Preference shares | Common shares | Additional paid-in capital | Accumulated other comprehensive (loss) income | Retained earnings |
Beginning balance at Dec. 31, 2016 | $ 400,000 | $ 41,187 | $ 216,558 | $ 1,133 | $ 4,207,699 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of shares | 0 | |||||
Repurchase of shares | (1,052) | (148,608) | ||||
Offering expenses | 0 | |||||
Exercise of options and issuance of restricted stock awards | 147 | (61) | ||||
Change in redeemable noncontrolling interests | (306) | |||||
Change in net unrealized gains on investments | (1,272) | |||||
Cumulative effect of adoption of ASU 2016-09 (Note 2) | 2,213 | |||||
Net income | $ 274,685 | 346,624 | ||||
Net income attributable to redeemable noncontrolling interests | (71,939) | (71,939) | ||||
Dividends on common shares | (25,877) | |||||
Dividends on preference shares | (11,191) | (11,191) | ||||
Ending balance at Jun. 30, 2017 | 4,955,255 | 400,000 | 40,282 | 67,583 | (139) | 4,447,529 |
Beginning balance at Dec. 31, 2017 | 4,391,375 | 400,000 | 40,024 | 37,355 | 224 | 3,913,772 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of shares | 250,000 | |||||
Repurchase of shares | 0 | 0 | ||||
Offering expenses | (8,498) | |||||
Exercise of options and issuance of restricted stock awards | 239 | 5,910 | ||||
Change in redeemable noncontrolling interests | 327 | |||||
Change in net unrealized gains on investments | (1,325) | |||||
Cumulative effect of adoption of ASU 2016-09 (Note 2) | 0 | |||||
Net income | 259,692 | 344,074 | ||||
Net income attributable to redeemable noncontrolling interests | (84,382) | (84,382) | ||||
Dividends on common shares | (26,468) | |||||
Dividends on preference shares | (11,191) | (11,191) | ||||
Ending balance at Jun. 30, 2018 | $ 4,860,061 | $ 650,000 | $ 40,263 | $ 35,094 | $ (1,101) | $ 4,135,805 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows provided by operating activities | ||
Net income | $ 344,074 | $ 346,624 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Amortization, accretion and depreciation | 24,741 | 11,499 |
Equity in undistributed earnings of other ventures | (7,262) | 20,304 |
Net realized and unrealized losses (gains) on investments | 100,045 | (101,486) |
Net unrealized gains included in net investment income | (8,714) | (12,491) |
Change in: | ||
Premiums receivable | (655,025) | (546,510) |
Prepaid reinsurance premiums | (391,955) | (264,062) |
Reinsurance recoverable | 131,639 | (91,022) |
Deferred acquisition costs | (84,604) | (94,781) |
Reserve for claims and claim expenses | (378,063) | 141,512 |
Unearned premiums | 789,841 | 615,633 |
Reinsurance balances payable | 1,095,944 | 378,511 |
Other | (611,550) | (82,708) |
Net cash provided by operating activities | 349,111 | 321,023 |
Cash flows (used in) provided by investing activities | ||
Proceeds from sales and maturities of fixed maturity investments trading | 4,813,208 | 5,163,972 |
Purchases of fixed maturity investments trading | (5,014,011) | (5,451,362) |
Net (purchases) sales of equity investments trading | (34,298) | 46,305 |
Net (purchases) sales of short term investments | (1,062,422) | 276,075 |
Net (purchases) sales of other investments | (111,921) | 2,551 |
Net purchases of investments in other ventures | (20,952) | 0 |
Return of investment from investment in other ventures | 8,464 | 20,000 |
Net cash (used in) provided by investing activities | (1,421,932) | 57,541 |
Cash flows provided by (used in) financing activities | ||
Dividends paid – RenaissanceRe common shares | (26,468) | (25,877) |
Dividends paid – preference shares | (11,191) | (11,191) |
RenaissanceRe common share repurchases | 0 | (145,940) |
Issuance of debt, net of expenses | 0 | 295,866 |
Repayment of debt | 0 | (250,000) |
Issuance of preference shares, net of expenses | 242,371 | 0 |
Net third party redeemable noncontrolling interest share transactions | 64,534 | (33,655) |
Taxes paid on withholding shares | (7,044) | (11,251) |
Net cash provided by (used in) financing activities | 262,202 | (182,048) |
Effect of exchange rate changes on foreign currency cash | (2,501) | 5,477 |
Net (decrease) increase in cash and cash equivalents | (813,120) | 201,993 |
Cash and cash equivalents, beginning of period | 1,361,592 | 421,157 |
Cash and cash equivalents, end of period | $ 548,472 | $ 623,150 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | ORGANIZATION This report on Form 10-Q should be read in conjunction with the RenaissanceRe’s Annual Report on Form 10-K (“Form 10-K”) for the fiscal year ended December 31, 2017 . RenaissanceRe was formed under the laws of Bermuda on June 7, 1993. Together with its wholly owned and majority-owned subsidiaries and DaVinciRe (as defined below), the Company provides property, casualty and specialty reinsurance and certain insurance solutions to its customers. • Renaissance Reinsurance, a Bermuda-domiciled reinsurance company, is the Company’s principal reinsurance subsidiary and provides property, casualty and specialty reinsurance coverages to insurers and reinsurers on a worldwide basis. • Renaissance Reinsurance U.S. Inc. (“Renaissance Reinsurance U.S.”) is a reinsurance company domiciled in the state of Maryland that provides property, casualty and specialty reinsurance coverages to insurers and reinsurers, primarily in the Americas. • RenaissanceRe Underwriting Managers U.S. LLC, a specialty reinsurance agency domiciled in the state of Connecticut, provides specialty treaty reinsurance solutions on both a quota share and excess of loss basis; and writes business on behalf of RenaissanceRe Specialty U.S. Ltd. (“RenaissanceRe Specialty U.S.”), a Bermuda-domiciled reinsurer, which operates subject to U.S. federal income tax, and RenaissanceRe Syndicate 1458 (“Syndicate 1458”). • Syndicate 1458 is the Company’s Lloyd’s syndicate. RenaissanceRe Corporate Capital (UK) Limited (“RenaissanceRe CCL”), a wholly owned subsidiary of RenaissanceRe, is Syndicate 1458’s sole corporate member and RenaissanceRe Syndicate Management Ltd. (“RSML”), a wholly owned subsidiary of RenaissanceRe, is the managing agent for Syndicate 1458. • The Company also manages property, casualty and specialty reinsurance business written on behalf of joint ventures, which principally include Top Layer Reinsurance Ltd. (“Top Layer Re”), recorded under the equity method of accounting, and DaVinci Reinsurance Ltd. (“DaVinci”). Because the Company owns a noncontrolling equity interest in, but controls a majority of the outstanding voting power of DaVinci’s parent, DaVinciRe Holdings Ltd. (“DaVinciRe”), the results of DaVinci and DaVinciRe are consolidated in the Company’s financial statements and all significant intercompany transactions have been eliminated. Redeemable noncontrolling interest - DaVinciRe represents the interests of external parties with respect to the net income and shareholders’ equity of DaVinciRe. Renaissance Underwriting Managers, Ltd. (“RUM”), a wholly owned subsidiary of RenaissanceRe, acts as exclusive underwriting manager for these joint ventures in return for fee-based income and profit participation. • RenaissanceRe Medici Fund Ltd. (“Medici”) is an exempted fund, incorporated under the laws of Bermuda. Medici’s objective is to seek to invest substantially all of its assets in various insurance based investment instruments that have returns primarily tied to property catastrophe risk. Third-party investors have subscribed for a portion of the participating, non-voting common shares of Medici. Because the Company owns a noncontrolling equity interest in, but controls a majority of the outstanding voting power of Medici’s parent, RenaissanceRe Fund Holdings Ltd. (“Fund Holdings”), the results of Medici and Fund Holdings are consolidated in the Company’s financial statements and all significant inter-company transactions have been eliminated. Redeemable noncontrolling interest - Medici represents the interests of external parties with respect to the net income and shareholders’ equity of Medici. • Upsilon RFO Re Ltd., formerly known as Upsilon Reinsurance II Ltd. (“Upsilon RFO”), a Bermuda domiciled special purpose insurer (“SPI”), is a managed joint venture formed by the Company to provide additional capacity to the worldwide aggregate and per-occurrence primary and retrocessional property catastrophe excess of loss market. Upsilon RFO is considered a variable interest entity (“VIE”) and the Company is considered the primary beneficiary. As a result, Upsilon RFO is consolidated by the Company and all significant inter-company transactions have been eliminated. • RenaissanceRe Upsilon Fund Ltd. (“Upsilon Fund”), an exempted Bermuda segregated accounts company, was formed by the Company to provide a fund structure through which third-party investors can invest in reinsurance risk managed by the Company. As a segregated accounts company, Upsilon Fund is permitted to establish segregated accounts to invest in and hold identified pools of assets and liabilities. Each pool of assets and liabilities in each segregated account is structured to be ring-fenced from any claims from the creditors of Upsilon Fund’s general account and from the creditors of other segregated accounts within Upsilon Fund. Third-party investors purchase redeemable, non-voting preference shares linked to specific segregated accounts of Upsilon Fund and own 100% of these shares. Upsilon Fund is an investment company and is considered a VIE. The Company is not considered the primary beneficiary of Upsilon Fund and, as a result, the Company does not consolidate the financial position and results of operations of Upsilon Fund. • Effective November 7, 2016, Fibonacci Reinsurance Ltd. ("Fibonacci Re"), a Bermuda-domiciled SPI, was formed to provide collateralized capacity to Renaissance Reinsurance and its affiliates. Fibonacci Re raised capital from third-party investors and the Company, via private placements of participating notes which are listed on the Bermuda Stock Exchange. Fibonacci Re is considered a VIE. The Company is not considered the primary beneficiary of Fibonacci Re and, as a result, the Company does not consolidate the financial position and results of operations of Fibonacci Re. • Effective December 22, 2017, the Company and Reinsurance Group of America, Incorporated closed an initiative (“Langhorne”) to source third party capital to support reinsurers targeting large in-force life and annuity blocks. Langhorne Holdings LLC (“Langhorne Holdings”) is a company that owns and manages certain reinsurance entities within Langhorne. Langhorne Partners LLC (“Langhorne Partners”) is the general partner for Langhorne and the entity which manages the third-party investors investing into Langhorne Holdings. The Company concluded that Langhorne Holdings meets the definition of a VIE. The Company is not the primary beneficiary of Langhorne Holdings and as a result, the Company does not consolidate the financial position or results of operations of Langhorne Holdings. The Company concluded that Langhorne Partners is not a VIE. The Company will account for its investments in Langhorne Holdings and Langhorne Partners under the equity method of accounting, one quarter in arrears. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES There have been no material changes to the Company’s significant accounting policies as described in its Form 10-K for the year ended December 31, 2017 , except as noted below. BASIS OF PRESENTATION These consolidated financial statements have been prepared on the basis of accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in conformity with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, these unaudited consolidated financial statements reflect all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the Company’s financial position and results of operations as at the end of and for the periods presented. All significant intercompany accounts and transactions have been eliminated from these statements. Certain comparative information has been reclassified to conform to the current presentation. Because of the seasonality of the Company’s business, the results of operations and cash flows for any interim period will not necessarily be indicative of the results of operations and cash flows for the full fiscal year or subsequent quarters. USE OF ESTIMATES IN FINANCIAL STATEMENTS The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported and disclosed amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. The major estimates reflected in the Company’s consolidated financial statements include, but are not limited to, the reserve for claims and claim expenses; reinsurance recoverables, including allowances for reinsurance recoverables deemed uncollectible; estimates of written and earned premiums; fair value, including the fair value of investments, financial instruments and derivatives; impairment charges; and the Company’s deferred tax valuation allowance. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS Revenue from Contracts with Customers In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 provides comprehensive guidance on the recognition of revenue from customers arising from the transfer of goods and services. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also provides guidance on accounting for certain contract costs and will also require new disclosures. ASU 2014-09 was to be effective for public business entities in annual and interim periods beginning after December 15, 2016, however in July 2015, the FASB decided to defer by one year the effective dates of ASU 2014-09, and as a result, ASU 2014-09 is effective for public business entities in annual and interim periods beginning after December 15, 2017. ASU 2014-09 notably excludes the accounting for insurance contracts, leases, financial instruments and guarantees. The Company’s implementation efforts primarily focused on other income and operational expenses on its consolidated statements of operations. The adoption of ASU 2014-09 did not have a material impact on the Company’s consolidated statements of operations and financial position. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting or those that result in the consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, simplifies the impairment assessment of equity investments without readily determinable values by requiring a qualitative assessment to identify impairment, eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost, requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation in other comprehensive income of the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the organization has elected to measure the liabilities in accordance with the fair value option, requires the separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and clarifies that the reporting organization should evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the organization’s other deferred tax assets. ASU 2016-01 is effective for public business entities in annual and interim periods beginning after December 15, 2017. The adoption of ASU 2016-01 did not have a material impact on the Company’s consolidated statements of operations and financial position. Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 clarifies the classification of receipts and payments in the statement of cash flows. ASU 2016-15 provides guidance related to (1) settlement and payment of zero coupon debt instruments, (2) contingent consideration, (3) proceeds from settlement of insurance claims, (4) proceeds from settlement of corporate and bank owned life insurance policies, (5) distributions from equity method investees, (6) cash receipts from beneficial interests obtained by a transferor, and (7) general guidelines for cash receipts and payments that have more than one aspect of classification. ASU 2016-15 is effective for public business entities for annual periods beginning after December 15, 2017, and interim periods within those fiscal years. The adoption of ASU 2016-15 resulted in the reclassification of $20.0 million of cash inflows from cash flows provided by operating activities, to cash flows used in investing activities for the six months ended June 30, 2017 . This amount related to a return of investment associated with the Company’s investment in Top Layer Reinsurance Ltd, recorded under the equity method of accounting. Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 was issued to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and the classification of taxes paid on the statements of cash flows. ASU 2016-09 became effective for the Company in annual and interim periods beginning after December 15, 2016. The cumulative effect of the adoption of ASU 2016-09 was a $2.2 million increase to opening retained earnings as of January 1, 2017. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). ASU 2016-02 requires lessees to recognize lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous guidance. ASU 2016-02 is effective for public business entities for annual and interim periods beginning after December 15, 2018. Early application is permitted. The Company is currently evaluating the impact of this guidance; however, it is not expected to have a material impact on the Company’s consolidated statements of operations and financial position. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 modifies the recognition of credit losses by replacing the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 is applicable to financial assets such as loans, debt securities, trade receivables, off-balance sheet credit exposures, reinsurance receivables, and other financial assets that have the contractual right to receive cash. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. The Company's invested assets are measured at fair value through net income, and therefore those invested assets would not be impacted by the adoption of ASU 2016-13. The Company has other financial assets, such as reinsurance recoverables, that could be impacted by the adoption of ASU 2016-13. ASU 2016-13 is effective for public business entities that are SEC filers for annual and interim periods beginning after December 15, 2019. The Company is currently evaluating the impact of this guidance; however, it is not expected to have a material impact on the Company’s consolidated statements of operations and financial position. Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB issued ASU No. 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”). ASU 2016-16 requires entities to recognize the income tax consequences of intra-entity transfers of assets other than inventory when the transfers occur; this is a change from current guidance which prohibits the recognition of current and deferred income taxes until the underlying assets have been sold to outside entities. ASU 2016-16 is effective for public business entities for annual and interim periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of this guidance; however, it is not expected to have a material impact on the Company’s consolidated statements of operations and financial position. Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). Among other things, ASU 2017-04 requires the following: (1) the elimination of step two of the goodwill impairment test; entities will no longer utilize the implied fair value of their assets and liabilities for purposes of testing goodwill for impairment, (2) the quantitative portion of the goodwill impairment test will be performed by comparing the fair value of a reporting unit with its carrying amount; an impairment charge is to be recognized for the excess of carrying amount over fair value, but only to the extent of the amount of goodwill allocated to that reporting unit, and (3) foreign currency translation adjustments are not to be allocated to a reporting unit from an entity’s accumulated other comprehensive income; the reporting unit’s carrying amount should include only the currently translated balances of the assets and liabilities assigned to the reporting unit. ASU 2017-04 is effective for public business entities that are SEC filers for annual periods, or any interim goodwill impairment tests in annual periods, beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact of this guidance; however, it is not expected to have a material impact on the Company’s consolidated statements of operations and financial position. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2018 | |
Investments [Abstract] | |
Investments | INVESTMENTS Fixed Maturity Investments Trading The following table summarizes the fair value of fixed maturity investments trading: June 30, December 31, U.S. treasuries $ 2,968,855 $ 3,168,763 Agencies 55,199 47,646 Municipal 6,164 509,802 Non-U.S. government (Sovereign debt) 298,811 287,660 Non-U.S. government-backed corporate 185,640 163,651 Corporate 2,280,080 2,063,459 Agency mortgage-backed 762,077 500,456 Non-agency mortgage-backed 300,311 300,331 Commercial mortgage-backed 248,590 202,062 Asset-backed 315,051 182,725 Total fixed maturity investments trading $ 7,420,778 $ 7,426,555 Contractual maturities of fixed maturity investments trading are described in the following table. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2018 Amortized Cost Fair Value Due in less than one year $ 385,371 $ 383,353 Due after one through five years 4,482,713 4,421,536 Due after five through ten years 917,280 904,070 Due after ten years 88,229 85,790 Mortgage-backed 1,310,933 1,310,978 Asset-backed 315,471 315,051 Total $ 7,499,997 $ 7,420,778 Equity Investments Trading The following table summarizes the fair value of equity investments trading: June 30, December 31, Financials $ 293,779 $ 253,543 Communications and technology 55,100 49,526 Industrial, utilities and energy 33,097 34,325 Consumer 24,678 24,779 Healthcare 21,960 21,364 Basic materials 4,190 4,717 Total $ 432,804 $ 388,254 Pledged Investments At June 30, 2018 , $4.9 billion of cash and investments at fair value were on deposit with, or in trust accounts for the benefit of, various counterparties, including with respect to the Company’s letter of credit facilities ( December 31, 2017 - $4.4 billion ). Of this amount, $1.7 billion is on deposit with, or in trust accounts for the benefit of, U.S. state regulatory authorities ( December 31, 2017 - $1.7 billion ). Reverse Repurchase Agreements At June 30, 2018 , the Company held $91.8 million ( December 31, 2017 - $30.0 million ) of reverse repurchase agreements. These loans are fully collateralized, are generally outstanding for a short period of time and are presented on a gross basis as part of short term investments on the Company’s consolidated balance sheets. The required collateral for these loans typically includes high-quality, readily marketable instruments at a minimum amount of 102% of the loan principal. Upon maturity, the Company receives principal and interest income. Net Investment Income The components of net investment income are as follows: Three months ended Six months ended June 30, June 30, June 30, June 30, Fixed maturity investments $ 50,416 $ 44,356 $ 96,059 $ 87,775 Short term investments 7,633 2,981 12,937 4,705 Equity investments 1,490 889 2,188 1,700 Other investments Private equity investments 3,860 6,611 3,426 14,413 Other 10,658 2,899 18,681 6,971 Cash and cash equivalents 1,039 295 1,604 484 75,096 58,031 134,895 116,048 Investment expenses (3,740 ) (3,868 ) (7,063 ) (7,560 ) Net investment income $ 71,356 $ 54,163 $ 127,832 $ 108,488 Net Realized and Unrealized (Losses) Gains on Investments Net realized and unrealized (losses) gains on investments are as follows: Three months ended Six months ended June 30, June 30, June 30, June 30, Gross realized gains $ 5,133 $ 15,249 $ 9,716 $ 26,710 Gross realized losses (26,519 ) (7,243 ) (52,372 ) (23,776 ) Net realized (losses) gains on fixed maturity investments (21,386 ) 8,006 (42,656 ) 2,934 Net unrealized (losses) gains on fixed maturity investments trading (9,420 ) 18,760 (64,792 ) 43,395 Net realized and unrealized gains (losses) on investments-related derivatives 1,038 (268 ) (3,326 ) (324 ) Net realized gains on equity investments trading sold during the period 348 15,146 582 36,061 Net unrealized gains on equity investments trading still held at reporting date 11,519 16,469 10,147 19,420 Net realized and unrealized gains on equity investments trading 11,867 31,615 10,729 55,481 Net realized and unrealized (losses) gains on investments $ (17,901 ) $ 58,113 $ (100,045 ) $ 101,486 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The use of fair value to measure certain assets and liabilities with resulting unrealized gains or losses is pervasive within the Company’s consolidated financial statements. Fair value is defined under accounting guidance currently applicable to the Company to be the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between open market participants at the measurement date. The Company recognizes the change in unrealized gains and losses arising from changes in fair value in its consolidated statements of operations. FASB ASC Topic Fair Value Measurements and Disclosures prescribes a fair value hierarchy that prioritizes the inputs to the respective valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to valuation techniques that use at least one significant input that is unobservable (Level 3). The three levels of the fair value hierarchy are described below: • Fair values determined by Level 1 inputs utilize unadjusted quoted prices obtained from active markets for identical assets or liabilities for which the Company has access. The fair value is determined by multiplying the quoted price by the quantity held by the Company; • Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals, broker quotes and certain pricing indices; and • Level 3 inputs are based all or in part on significant unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In these cases, significant management assumptions can be used to establish management’s best estimate of the assumptions used by other market participants in determining the fair value of the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement of the asset or liability. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and the Company considers factors specific to the asset or liability. In order to determine if a market is active or inactive for a security, the Company considers a number of factors, including, but not limited to, the spread between what a seller is asking for a security and what a buyer is bidding for the same security, the volume of trading activity for the security in question, the price of the security compared to its par value (for fixed maturity investments), and other factors that may be indicative of market activity. There have been no material changes in the Company’s valuation techniques, nor have there been any transfers between Level 1 and Level 2, or Level 2 and Level 3 during the period represented by these consolidated financial statements. Below is a summary of the assets and liabilities that are measured at fair value on a recurring basis and also represents the carrying amount on the Company’s consolidated balance sheets: At June 30, 2018 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fixed maturity investments U.S. treasuries $ 2,968,855 $ 2,968,855 $ — $ — Agencies 55,199 — 55,199 — Municipal 6,164 — 6,164 — Non-U.S. government (Sovereign debt) 298,811 — 298,811 — Non-U.S. government-backed corporate 185,640 — 185,640 — Corporate 2,280,080 — 2,280,080 — Agency mortgage-backed 762,077 — 762,077 — Non-agency mortgage-backed 300,311 — 300,311 — Commercial mortgage-backed 248,590 — 248,590 — Asset-backed 315,051 — 315,051 — Total fixed maturity investments 7,420,778 2,968,855 4,451,923 — Short term investments 2,031,943 — 2,031,943 — Equity investments trading 432,804 432,804 — — Other investments Catastrophe bonds 501,025 — 501,025 — Private equity partnerships (1) 186,200 — — — Senior secured bank loan funds (1) 14,414 — — — Hedge funds (1) 11,561 — — — Total other investments 713,200 — 501,025 — Other assets and (liabilities) Assumed and ceded (re)insurance contracts (2) (2,018 ) — — (2,018 ) Derivatives (3) (2,161 ) (95 ) (2,066 ) — Total other assets and (liabilities) (4,179 ) (95 ) (2,066 ) (2,018 ) $ 10,594,546 $ 3,401,564 $ 6,982,825 $ (2,018 ) (1) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. (2) Included in assumed and ceded (re)insurance contracts at June 30, 2018 was $2.5 million and $4.5 million of other assets and other liabilities, respectively. (3) See “Note 13 . Derivative Instruments” for additional information related to the fair value by type of contract, of derivatives entered into by the Company. At December 31, 2017 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fixed maturity investments U.S. treasuries $ 3,168,763 $ 3,168,763 $ — $ — Agencies 47,646 — 47,646 — Municipal 509,802 — 509,802 — Non-U.S. government (Sovereign debt) 287,660 — 287,660 — Non-U.S. government-backed corporate 163,651 — 163,651 — Corporate 2,063,459 — 2,063,459 — Agency mortgage-backed 500,456 — 500,456 — Non-agency mortgage-backed 300,331 — 300,331 — Commercial mortgage-backed 202,062 — 202,062 — Asset-backed 182,725 — 182,725 — Total fixed maturity investments 7,426,555 3,168,763 4,257,792 — Short term investments 991,863 — 991,863 — Equity investments trading 388,254 388,254 — — Other investments Catastrophe bonds 380,475 — 380,475 — Private equity partnerships (1) 196,220 — — — Senior secured bank loan funds (1) 17,574 — — — Hedge funds (1) 524 — — — Total other investments 594,793 — 380,475 — Other assets and (liabilities) Assumed and ceded (re)insurance contracts (2) (2,952 ) — — (2,952 ) Derivatives (3) 4,636 (45 ) 4,681 — Total other assets and (liabilities) 1,684 (45 ) 4,681 (2,952 ) $ 9,403,149 $ 3,556,972 $ 5,634,811 $ (2,952 ) (1) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. (2) Included in assumed and ceded (re)insurance contracts at December 31, 2017 was $2.5 million and $5.5 million of other assets and other liabilities, respectively. (3) See “Note 13 . Derivative Instruments” for additional information related to the fair value by type of contract, of derivatives entered into by the Company. Level 1 and Level 2 Assets and Liabilities Measured at Fair Value Fixed Maturity Investments Fixed maturity investments included in Level 1 consist of the Company’s investments in U.S. treasuries. Fixed maturity investments included in Level 2 are agencies, municipal, non-U.S. government, non-U.S. government-backed corporate, corporate, agency mortgage-backed, non-agency mortgage-backed, commercial mortgage-backed and asset-backed. The Company’s fixed maturity investments are primarily priced using pricing services, such as index providers and pricing vendors, as well as broker quotations. In general, the pricing vendors provide pricing for a high volume of liquid securities that are actively traded. For securities that do not trade on an exchange, the pricing services generally utilize market data and other observable inputs in matrix pricing models to determine month end prices. Observable inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, bids, offers, reference data and industry and economic events. Index pricing generally relies on market traders as the primary source for pricing; however, models are also utilized to provide prices for all index eligible securities. The models use a variety of observable inputs such as benchmark yields, transactional data, dealer runs, broker-dealer quotes and corporate actions. Prices are generally verified using third-party data. Securities which are priced by an index provider are generally included in the index. In general, broker-dealers value securities through their trading desks based on observable inputs. The methodologies include mapping securities based on trade data, bids or offers, observed spreads, and performance on newly issued securities. Broker-dealers also determine valuations by observing secondary trading of similar securities. Prices obtained from broker quotations are considered non-binding, however they are based on observable inputs and by observing secondary trading of similar securities obtained from active, non-distressed markets. The Company considers these broker quotations to be Level 2 inputs as they are corroborated with other market observable inputs. The techniques generally used to determine the fair value of the Company’s fixed maturity investments are detailed below by asset class. U.S. treasuries Level 1 - At June 30, 2018 , the Company’s U.S. treasuries fixed maturity investments were primarily priced by pricing services and had a weighted average yield to maturity of 2.6% and a weighted average credit quality of AA ( December 31, 2017 - 1.9% and AA, respectively). When pricing these securities, the pricing services utilize daily data from many real time market sources, including active broker dealers. Certain data sources are regularly reviewed for accuracy to attempt to ensure the most reliable price source is used for each issue and maturity date. Agencies Level 2 - At June 30, 2018 , the Company’s agency fixed maturity investments had a weighted average yield to maturity of 2.7% and a weighted average credit quality of AA ( December 31, 2017 - 2.1% and AA, respectively). The issuers of the Company’s agency fixed maturity investments primarily consist of the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and other agencies. Fixed maturity investments included in agencies are primarily priced by pricing services. When evaluating these securities, the pricing services gather information from market sources and integrate other observations from markets and sector news. Evaluations are updated by obtaining broker dealer quotes and other market information including actual trade volumes, when available. The fair value of each security is individually computed using analytical models which incorporate option adjusted spreads and other daily interest rate data. Municipal Level 2 - At June 30, 2018 , the Company’s municipal fixed maturity investments had a weighted average yield to maturity of 3.8% and a weighted average credit quality of A ( December 31, 2017 - 2.2% and AA, respectively). The Company’s municipal fixed maturity investments are primarily priced by pricing services. When evaluating these securities, the pricing services gather information regarding the security from third-party sources such as trustees, paying agents or issuers. Evaluations are updated by obtaining broker dealer quotes and other market information including actual trade volumes, when available. The pricing services also consider the specific terms and conditions of the securities, including any specific features which may influence risk. In certain instances, securities are individually evaluated using a spread over widely accepted market benchmarks. Non-U.S. government (Sovereign debt) Level 2 - At June 30, 2018 , the Company’s non-U.S. government fixed maturity investments had a weighted average yield to maturity of 2.6% and a weighted average credit quality of AAA ( December 31, 2017 - 2.0% and AAA, respectively). The issuers of securities in this sector are non-U.S. governments and their respective agencies as well as supranational organizations. Securities held in these sectors are primarily priced by pricing services that employ proprietary discounted cash flow models to value the securities. Key quantitative inputs for these models are daily observed benchmark curves for treasury, swap and high issuance credits. The pricing services then apply a credit spread for each security which is developed by in-depth and real time market analysis. For securities in which trade volume is low, the pricing services utilize data from more frequently traded securities with similar attributes. These models may also be supplemented by daily market and credit research for international markets. Non-U.S. government-backed corporate Level 2 - At June 30, 2018 , the Company’s non-U.S. government-backed corporate fixed maturity investments had a weighted average yield to maturity of 3.0% and a weighted average credit quality of AA ( December 31, 2017 - 2.3% and AA, respectively). Non-U.S. government-backed fixed maturity investments are primarily priced by pricing services that employ proprietary discounted cash flow models to value the securities. Key quantitative inputs for these models are daily observed benchmark curves for treasury, swap and high issuance credits. The pricing services then apply a credit spread to the respective curve for each security which is developed by in-depth and real time market analysis. For securities in which trade volume is low, the pricing services utilize data from more frequently traded securities with similar attributes. These models may also be supplemented by daily market and credit research for international markets. Corporate Level 2 - At June 30, 2018 , the Company’s corporate fixed maturity investments principally consisted of U.S. and international corporations and had a weighted average yield to maturity of 4.3% and a weighted average credit quality of BBB ( December 31, 2017 - 3.8% and BBB, respectively). The Company’s corporate fixed maturity investments are primarily priced by pricing services. When evaluating these securities, the pricing services gather information from market sources regarding the issuer of the security and obtain credit data, as well as other observations, from markets and sector news. Evaluations are updated by obtaining broker dealer quotes and other market information including actual trade volumes, when available. The pricing services also consider the specific terms and conditions of the securities, including any specific features which may influence risk. In certain instances, securities are individually evaluated using a spread which is added to the U.S. treasury curve or a security specific swap curve as appropriate. Agency mortgage-backed Level 2 - At June 30, 2018 , the Company’s agency mortgage-backed fixed maturity investments included agency residential mortgage-backed securities with a weighted average yield to maturity of 3.4% , a weighted average credit quality of AA and a weighted average life of 7.7 years ( December 31, 2017 - 3.0% , AA and 6.4 years, respectively). The Company’s agency mortgage-backed fixed maturity investments are primarily priced by pricing services using a mortgage pool specific model which utilizes daily inputs from the active to be announced market which is very liquid, as well as the U.S. treasury market. The model also utilizes additional information, such as the weighted average maturity, weighted average coupon and other available pool level data which is provided by the sponsoring agency. Valuations are also corroborated with daily active market quotes. Non-agency mortgage-backed Level 2 - The Company’s non-agency mortgage-backed fixed maturity investments include non-agency prime, non-agency Alt-A and other non-agency residential mortgage-backed securities. At June 30, 2018 , the Company’s non-agency prime residential mortgage-backed fixed maturity investments had a weighted average yield to maturity of 4.1% , a weighted average credit quality of non-investment grade, and a weighted average life of 5.4 years ( December 31, 2017 - 3.7% , BBB and 5.1 years, respectively). The Company’s non-agency Alt-A fixed maturity investments held at June 30, 2018 had a weighted average yield to maturity of 3.8% , a weighted average credit quality of non-investment grade and a weighted average life of 6.2 years ( December 31, 2017 - 3.7% , non-investment grade and 6.2 years, respectively). Securities held in these sectors are primarily priced by pricing services using an option adjusted spread model or other relevant models, which principally utilize inputs including benchmark yields, available trade information or broker quotes, and issuer spreads. The pricing services also review collateral prepayment speeds, loss severity and delinquencies among other collateral performance indicators for the securities valuation, when applicable. Commercial mortgage-backed Level 2 - At June 30, 2018 , the Company’s commercial mortgage-backed fixed maturity investments had a weighted average yield to maturity of 3.5% , a weighted average credit quality of AAA, and a weighted average life of 4.5 years ( December 31, 2017 - 2.9% , AAA and 4.5 years, respectively). Securities held in these sectors are primarily priced by pricing services. The pricing services apply dealer quotes and other available trade information such as bids and offers, prepayment speeds which may be adjusted for the underlying collateral or current price data, the U.S. treasury curve and swap curve as well as cash settlement. The pricing services discount the expected cash flows for each security held in this sector using a spread adjusted benchmark yield based on the characteristics of the security. Asset-backed Level 2 - At June 30, 2018 , the Company’s asset-backed fixed maturity investments had a weighted average yield to maturity of 3.6% , a weighted average credit quality of AAA and a weighted average life of 3.1 years ( December 31, 2017 - 2.8% , AAA and 3.0 years, respectively). The underlying collateral for the Company’s asset-backed fixed maturity investments primarily consists of bank loans, student loans, credit card receivables, auto loans and other receivables. Securities held in these sectors are primarily priced by pricing services. The pricing services apply dealer quotes and other available trade information such as bids and offers, prepayment speeds which may be adjusted for the underlying collateral or current price data, the U.S. treasury curve and swap curve as well as cash settlement. The pricing services determine the expected cash flows for each security held in this sector using historical prepayment and default projections for the underlying collateral and current market data. In addition, a spread is applied to the relevant benchmark and used to discount the cash flows noted above to determine the fair value of the securities held in this sector. Short Term Investments Level 2 - At June 30, 2018 , the Company’s short term investments had a weighted average yield to maturity of 1.6% and a weighted average credit quality of AAA ( December 31, 2017 - 1.4% and AAA, respectively). The fair value of the Company’s portfolio of short term investments is generally determined using amortized cost which approximates fair value and, in certain cases, in a manner similar to the Company’s fixed maturity investments noted above. Equity Investments, Classified as Trading Level 1 - The fair value of the Company’s portfolio of equity investments, classified as trading is primarily priced by pricing services, reflecting the closing price quoted for the final trading day of the period. When pricing these securities, the pricing services utilize daily data from many real time market sources, including applicable securities exchanges. All data sources are regularly reviewed for accuracy to attempt to ensure the most reliable price source was used for each security. Other investments Catastrophe bonds Level 2 - The Company’s other investments include investments in catastrophe bonds which are recorded at fair value based on broker or underwriter bid indications. Other assets and liabilities Derivatives Level 1 and Level 2 - Other assets and liabilities include certain derivatives entered into by the Company. The fair value of these transactions includes certain exchange traded futures contracts which are considered Level 1, and foreign currency contracts and certain credit derivatives, determined using standard industry valuation models and considered Level 2, as the inputs to the valuation model are based on observable market inputs. For credit derivatives, these inputs include credit spreads, credit ratings of the underlying referenced security, the risk free rate and the contract term. For foreign currency contracts, these inputs include spot rates and interest rate curves. Level 3 Assets and Liabilities Measured at Fair Value Below is a summary of quantitative information regarding the significant observable and unobservable inputs (Level 3) used in determining the fair value of assets and liabilities measured at fair value on a recurring basis: At June 30, 2018 Fair Value (Level 3) Valuation Technique Unobservable (U) and Observable (O) Inputs Low High Weighted Average or Actual Other assets and (liabilities) Assumed and ceded (re)insurance contracts $ 935 Internal valuation model Bond price (O) $ 101.38 $ 110.93 $ 106.64 Liquidity discount (U) n/a n/a 1.3 % Assumed and ceded (re)insurance contracts (2,953 ) Internal valuation model Net undiscounted cash flows (U) n/a n/a $ 4,815 Expected loss ratio (U) n/a n/a 18.7 % Net acquisition expense ratio (O) n/a n/a 13.8 % Contract period (O) 2.0 years 4.7 years 4.1 years Discount rate (U) n/a n/a 2.7 % Total other assets and (liabilities) $ (2,018 ) Below is a reconciliation of the beginning and ending balances, for the periods shown, of assets and liabilities measured at fair value on a recurring basis using Level 3 inputs. Interest and dividend income are included in net investment income and are excluded from the reconciliation. Other assets and (liabilities) Balance - January 1, 2018 $ (2,952 ) Total realized and unrealized gains Included in other income (loss) 645 Purchases 289 Balance - June 30, 2018 $ (2,018 ) Other assets and (liabilities) Balance - January 1, 2017 $ (13,004 ) Total realized and unrealized gains Included in other income (loss) 3,390 Purchases 112 Balance - June 30, 2017 $ (9,502 ) Other assets and liabilities Assumed and ceded (re)insurance contracts Level 3 - At June 30, 2018 , the Company had a $0.9 million net asset related to an assumed reinsurance contract accounted for at fair value, with the fair value obtained through the use of an internal valuation model. The inputs to the internal valuation model are principally based on indicative pricing obtained from independent brokers and pricing vendors for similarly structured marketable securities. The most significant unobservable inputs include prices for similar marketable securities and a liquidity premium. The Company considers the prices for similar securities to be unobservable, as there is little, if any market activity for these similar assets. In addition, the Company has estimated a liquidity premium that would be required if the Company attempted to effectively exit its position by executing a short sale of these securities. Generally, an increase in the prices for similar marketable securities or a decrease in the liquidity premium would result in an increase in the expected profit and ultimate fair value of this assumed reinsurance contract. Level 3 - At June 30, 2018 , the Company had a $3.0 million net liability related to assumed and ceded (re)insurance contracts accounted for at fair value, with the fair value obtained through the use of an internal valuation model. The inputs to the internal valuation model are principally based on proprietary data as observable market inputs are generally not available. The most significant unobservable inputs include the assumed and ceded expected net cash flows related to the contracts, including the expected premium, acquisition expenses and losses; the expected loss ratio and the relevant discount rate used to present value the net cash flows. The contract period and acquisition expense ratio are considered an observable input as each is defined in the contract. Generally, an increase in the net expected cash flows and expected term of the contract and a decrease in the discount rate, expected loss ratio or acquisition expense ratio, would result in an increase in the expected profit and ultimate fair value of these assumed and ceded (re)insurance contracts. Financial Instruments Disclosed, But Not Carried, at Fair Value The Company uses various financial instruments in the normal course of its business. The Company’s insurance contracts are excluded from the fair value of financial instruments accounting guidance, unless the Company elects the fair value option, and therefore, are not included in the amounts discussed herein. The carrying values of cash and cash equivalents, accrued investment income, receivables for investments sold, certain other assets, payables for investments purchased, certain other liabilities, and other financial instruments not included herein approximated their fair values. Debt Included on the Company’s consolidated balance sheet at June 30, 2018 were debt obligations of $990.4 million ( December 31, 2017 - $989.6 million ). At June 30, 2018 , the fair value of the Company’s debt obligations was $987.4 million ( December 31, 2017 – $1,018.2 million ). The fair value of the Company’s debt obligations is determined using indicative market pricing obtained from third-party service providers, which the Company considers Level 2 in the fair value hierarchy. There have been no changes during the period in the Company’s valuation technique used to determine the fair value of the Company’s debt obligations. The Fair Value Option for Financial Assets and Financial Liabilities The Company has elected to account for certain financial assets and financial liabilities at fair value using the guidance under FASB ASC Topic Financial Instruments as the Company believes it represents the most meaningful measurement basis for these assets and liabilities. Below is a summary of the balances the Company has elected to account for at fair value: June 30, December 31, Other investments $ 713,200 $ 594,793 Other assets $ 2,488 $ 2,542 Other liabilities $ 4,506 $ 5,494 Included in net investment income for the three and six months ended June 30, 2018 were net unrealized gains of $7.2 million and $8.7 million , respectively, related to the changes in fair value of other investments ( 2017 – gains of $5.6 million and $12.5 million , respectively). Included in other income for the three and six months ended June 30, 2018 were net unrealized gains of $Nil and $Nil , respectively, related to the changes in the fair value of other assets and liabilities ( 2017 - $Nil and $Nil , respectively). Measuring the Fair Value of Other Investments Using Net Asset Valuations The table below shows the Company’s portfolio of other investments measured using net asset valuations as a practical expedient: At June 30, 2018 Fair Value Unfunded Redemption Frequency Redemption Redemption Private equity partnerships $ 186,200 $ 421,299 See below See below See below Senior secured bank loan funds 14,414 23,811 See below See below See below Hedge funds 11,561 — See below See below See below Total other investments measured using net asset valuations $ 212,175 $ 445,110 Private equity partnerships – The Company’s investments in private equity partnerships included alternative asset limited partnerships (or similar corporate structures) that invest in certain private equity asset classes, including U.S. and global leveraged buyouts, mezzanine investments, distressed securities, real estate, and oil, gas and power. The Company generally has no right to redeem its interest in any of these private equity partnerships in advance of dissolution of the applicable private equity partnership. Instead, the nature of these investments is that distributions are received by the Company in connection with the liquidation of the underlying assets of the respective private equity partnership. It is estimated that the majority of the underlying assets of the limited partnerships would liquidate over 7 to 10 years from inception of the respective limited partnership. Senior secured bank loan funds – At June 30, 2018 , the Company had $14.4 million invested in closed end funds which invest primarily in loans. The Company has no right to redeem its investment in these funds. It is estimated that the majority of the underlying assets in these closed end funds would begin to liquidate over 4 to 5 years from inception of the applicable fund. Hedge funds – The Company invests in hedge funds that pursue multiple strategies. At June 30, 2018 , the Company had $11.6 million of investments in hedge funds that pursue multiple strategies. This included an investment of $11.2 million in a fund primarily focused on global credit opportunities which is redeemable at the option of the shareholder. The remainder of the Company’s hedge fund investments consisted of so called “side pocket” investments which are not redeemable at the option of the shareholder. |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2018 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |
Reinsurance | REINSURANCE The Company purchases reinsurance and other protection to manage its risk portfolio and to reduce its exposure to large losses. The Company currently has in place contracts that provide for recovery of a portion of certain claims and claim expenses, generally in excess of various retentions or on a proportional basis. In addition to loss recoveries, certain of the Company’s ceded reinsurance contracts provide for payments of additional premiums, for reinstatement premiums and for lost no-claims bonuses, which are incurred when losses are ceded to the respective reinsurance contracts. The Company remains liable to the extent that any reinsurer fails to meet its obligations. The following table sets forth the effect of reinsurance and retrocessional activity on premiums written and earned and on net claims and claim expenses incurred: Three months ended Six months ended June 30, June 30, June 30, June 30, Premiums written Direct $ 90,573 $ 67,805 $ 175,740 $ 141,213 Assumed 886,770 759,610 1,961,255 1,608,292 Ceded (372,834 ) (271,670 ) (869,442 ) (649,624 ) Net premiums written $ 604,509 $ 555,745 $ 1,267,553 $ 1,099,881 Premiums earned Direct $ 69,904 $ 56,357 $ 139,936 $ 114,525 Assumed 601,735 520,347 1,207,218 1,019,346 Ceded (242,254 ) (194,439 ) (477,487 ) (385,561 ) Net premiums earned $ 429,385 $ 382,265 $ 869,667 $ 748,310 Claims and claim expenses Gross claims and claim expenses incurred $ 76,945 $ 189,903 $ 302,687 $ 441,707 Claims and claim expenses recovered (16,778 ) (47,316 ) (70,817 ) (106,039 ) Net claims and claim expenses incurred $ 60,167 $ 142,587 $ 231,870 $ 335,668 At June 30, 2018 , the Company’s reinsurance recoverable balance was $1.5 billion ( December 31, 2017 - $1.6 billion ). Of this amount, 48.2% is fully collateralized by our reinsurers, 50.6% is recoverable from reinsurers rated A- or higher by major rating agencies and 1.2% is recoverable from reinsurers rated lower than A- by major rating agencies ( December 31, 2017 - 54.5% , 44.5% and 1.0% , respectively). The reinsurers with the three largest balances accounted for 10.0% , 9.4% and 7.4% , respectively, of the Company’s reinsurance recoverable balance at June 30, 2018 ( December 31, 2017 - 10.4% , 7.5% and 7.3% , respectively). The valuation allowance recorded against reinsurance recoverable was $7.8 million at June 30, 2018 ( December 31, 2017 - $7.0 million ). The three largest company-specific components of the valuation allowance represented 16.0% , 15.6% and 14.4% , respectively, of the Company’s total valuation allowance at June 30, 2018 ( December 31, 2017 - 11.1% , 9.2% and 8.4% , respectively). |
Reserve for Claims and Claim Ex
Reserve for Claims and Claim Expenses | 6 Months Ended |
Jun. 30, 2018 | |
Insurance Loss Reserves [Abstract] | |
Reserve for Claims and Claim Expenses | RESERVE FOR CLAIMS AND CLAIM EXPENSES The Company believes the most significant accounting judgment made by management is its estimate of claims and claim expense reserves. Claims and claim expense reserves represent estimates, including actuarial and statistical projections at a given point in time, of the ultimate settlement and administration costs for unpaid claims and claim expenses arising from the insurance and reinsurance contracts the Company sells. The Company establishes its claims and claim expense reserves by taking claims reported to the Company by insureds and ceding companies, but which have not yet been paid (“case reserves”), adding estimates for the anticipated cost of claims incurred but not yet reported to the Company, or incurred but not enough reported to the Company (collectively referred to as “IBNR”) and, if deemed necessary, adding costs for additional case reserves which represent the Company’s estimates for claims related to specific contracts previously reported to the Company which it believes may not be adequately estimated by the client as of that date, or adequately covered in the application of IBNR. The following table summarizes the Company’s claims and claim expense reserves by segment, allocated between case reserves, additional case reserves and IBNR: At June 30, 2018 Case Reserves Additional Case Reserves IBNR Total Property $ 631,642 $ 766,450 $ 568,642 $ 1,966,734 Casualty and Specialty 750,149 105,066 1,871,468 2,726,683 Other 4,433 — 4,495 8,928 Total $ 1,386,224 $ 871,516 $ 2,444,605 $ 4,702,345 At December 31, 2017 Property $ 696,285 $ 896,522 $ 893,583 $ 2,486,390 Casualty and Specialty 689,962 124,923 1,760,607 2,575,492 Other 6,605 — 11,921 18,526 Total $ 1,392,852 $ 1,021,445 $ 2,666,111 $ 5,080,408 Activity in the liability for unpaid claims and claim expenses is summarized as follows: Six months ended June 30, 2018 2017 Net reserves as of January 1 $ 3,493,778 $ 2,568,730 Net incurred related to: Current year 419,434 351,766 Prior years (187,564 ) (16,098 ) Total net incurred 231,870 335,668 Net paid related to: Current year 23,902 19,885 Prior years 445,790 285,046 Total net paid 469,692 304,931 Foreign exchange (8,602 ) 19,753 Net reserves as of June 30 3,247,354 2,619,220 Reinsurance recoverable as of June 30 1,454,991 370,586 Gross reserves as of June 30 $ 4,702,345 $ 2,989,806 Prior Year Development of the Reserve for Net Claims and Claim Expenses The Company’s estimates of claims and claim expense reserves are not precise in that, among other things, they are based on predictions of future developments and estimates of future trends and other variable factors. Some, but not all, of the Company’s reserves are further subject to the uncertainty inherent in actuarial methodologies and estimates. Because a reserve estimate is simply an insurer’s estimate at a point in time of its ultimate liability, and because there are numerous factors that affect reserves and claims payments that cannot be determined with certainty in advance, the Company’s ultimate payments will vary, perhaps materially, from its estimates of reserves. If the Company determines in a subsequent period that adjustments to its previously established reserves are appropriate, such adjustments are recorded in the period in which they are identified. On a net basis, the Company’s cumulative favorable or unfavorable development is generally reduced by offsetting changes in its reinsurance recoverables, as well as changes to loss related premiums such as reinstatement premiums and redeemable noncontrolling interest for changes in claims and claim expenses that impact DaVinciRe, all of which generally move in the opposite direction to changes in the Company’s ultimate claims and claim expenses. The following table details the Company’s prior year development by segment of its liability for unpaid claims and claim expenses: Six months ended June 30, 2018 2017 (Favorable) adverse development (Favorable) adverse development Property $ (170,707 ) $ (24,800 ) Casualty and Specialty (16,787 ) 9,257 Other (70 ) (555 ) Total favorable development of prior accident years net claims and claim expenses $ (187,564 ) $ (16,098 ) Changes to prior year estimated claims reserves increased the Company’s net income by $187.6 million during the six months ended June 30, 2018 , ( 2017 - increased the Company’s net income by $16.1 million ), excluding the consideration of changes in reinstatement, adjustment or other premium changes, profit commissions, redeemable noncontrolling interest - DaVinciRe and income tax. Property Segment The following tables detail the development of the Company’s liability for unpaid claims and claim expenses for its Property segment, allocated between large and small catastrophe net claims and claim expenses and attritional net claims and claim expenses, included in the other line item: Six months ended June 30, 2018 (Favorable) adverse development Catastrophe net claims and claim expenses Large catastrophe events 2017 Catastrophe Events $ (156,213 ) Total large catastrophe events (156,213 ) Small catastrophe events Other 23,453 Total small catastrophe events 23,453 Total catastrophe net claims and claim expenses (132,760 ) Attritional net claims and claim expenses Actuarial methods - actual reported claims less than expected claims (32,265 ) Actuarial assumption changes (5,682 ) Total attritional net claims and claim expenses (37,947 ) Total net favorable development of prior accident years net claims and claim expenses $ (170,707 ) The net favorable development of prior accident years net claims and claim expenses within the Company’s Property segment in the six months ended June 30, 2018 of $170.7 million was comprised of net favorable development of $156.2 million related to large catastrophe events and net adverse development of $23.5 million related to small catastrophe events. Included in net favorable development of prior accident years net claims and claim expenses from large events was $156.2 million of net decreases in the estimated ultimate losses associated with Hurricanes Harvey, Irma and Maria, the Mexico City Earthquake, and the Q4 2017 California Wildfires (collectively, the “ 2017 Catastrophe Events ”). The Company’s Property segment also experienced net adverse development of $23.5 million associated with a number of other small catastrophe events. In addition, the Company’s Property segment experienced $37.9 million of net favorable development primarily driven by reported losses generally coming in lower than expected on attritional net claims and claim expenses and certain assumption changes within the other property class of business. Six months ended June 30, 2017 (Favorable) adverse development Catastrophe net claims and claim expenses Large catastrophe events New Zealand Earthquake (2011) $ 5,807 New Zealand Earthquake (2010) 4,061 April and May U.S. Tornadoes (2011) (4,153 ) Other (3,864 ) Total large catastrophe events 1,851 Small catastrophe events Fort McMurray Wildfire (2016) (5,848 ) Tianjin Explosion (2015) (4,896 ) U.S. PCS 13/14 Wind and Thunderstorm (2013) (3,906 ) Other (12,844 ) Total small catastrophe events (27,494 ) Total catastrophe net claims and claim expenses (25,643 ) Actuarial assumption changes 843 Total net favorable development of prior accident years net claims and claim expenses $ (24,800 ) The net favorable development of prior accident years net claims and claim expenses within the Company’s Property segment in the six months ended June 30, 2017 of $24.8 million was principally comprised of net adverse development of $1.9 million related to large catastrophe events, net favorable development of $27.5 million related to small catastrophe events and $0.8 million of adverse development associated with actuarial assumption changes. Included in net adverse development of prior accident years net claims and claim expenses from large events was adverse development of $5.8 million related to the 2011 New Zealand Earthquake and $4.1 million related to the 2010 New Zealand Earthquake due to increases in the estimated expected losses associated with these events. Partially offsetting these events was favorable development of $4.2 million and $3.9 million related to the 2011 April and May U.S. Tornadoes and a number of other events, respectively, due to reductions in the estimated ultimate losses associated with these events. Included in net favorable development of prior accident years net claims and claims expenses from small events was a reduction in the estimated ultimate losses associated with the 2016 Fort McMurray Wildfire of $5.8 million , the 2015 Tianjin Explosion of $4.9 million and certain 2013 U.S. wind and thunderstorm events of $3.9 million . In addition, the Company’s Property segment experienced net favorable development of $12.8 million associated with a number of other small catastrophe events related to lines of business where the Company principally estimates net claims and claim expenses using traditional actuarial methods. Casualty and Specialty Segment The following table details the development of the Company’s liability for unpaid claims and claim expenses for its Casualty and Specialty segment: Six months ended June 30, 2018 2017 (Favorable) adverse development (Favorable) adverse development Actuarial methods $ (9,001 ) $ (21,762 ) Ogden Rate change — 33,481 Actuarial assumption changes (7,786 ) (2,462 ) Total (favorable) adverse development of prior accident years net claims and claim expenses $ (16,787 ) $ 9,257 The net favorable development of prior accident years net claims and claim expenses within the Company’s Casualty and Specialty segment in the six months ended June 30, 2018 of $16.8 million was driven by reported losses generally coming in lower than expected on attritional net claims and claim expenses and certain assumption changes across a number of lines of business. The net adverse development of prior accident years net claims and claim expenses within the Company’s Casualty and Specialty segment in the six months ended June 30, 2017 of $9.3 million was driven by $33.5 million of adverse development associated with the change in the discount rate used to calculate lump sum awards in U.K. bodily injury cases (the “Ogden Rate”), from 2.5% , to minus 0.75% . Notwithstanding the impact of the Ogden Rate change, the Company experienced $21.8 million of net favorable development in the six months ended June 30, 2017 related to actual reported losses coming in lower than expected on attritional net claims and claim expenses across a number of lines of business and $2.5 million of net favorable development associated with actuarial assumption changes. |
Debt and Credit Facilities
Debt and Credit Facilities | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | DEBT AND CREDIT FACILITIES Except as noted below, there have been no material changes to the Company’s debt obligations and credit facilities as described in its Form 10-K for the year ended December 31, 2017 . Debt Obligations A summary of the Company’s debt obligations on its consolidated balance sheets is set forth below: June 30, 2018 December 31, 2017 Fair Value Carrying Value Fair Value Carrying Value 3.450% Senior Notes due 2027 $ 283,725 $ 295,549 $ 294,654 $ 295,303 3.700% Senior Notes due 2025 294,573 297,501 302,781 297,318 5.750% Senior Notes due 2020 258,750 249,436 263,750 249,272 4.750% Senior Notes due 2025 (DaVinciRe) (1) 150,387 147,885 157,050 147,730 $ 987,435 $ 990,371 $ 1,018,235 $ 989,623 (1) RenaissanceRe owns a noncontrolling economic interest in its joint venture DaVinciRe. Because RenaissanceRe controls a majority of DaVinciRe’s outstanding voting rights, the consolidated financial statements of DaVinciRe are included in the consolidated financial statements of RenaissanceRe. However, RenaissanceRe does not guarantee or provide credit support for DaVinciRe and RenaissanceRe’s financial exposure to DaVinciRe is limited to its investment in DaVinciRe’s shares and counterparty credit risk arising from reinsurance transactions. Credit Facilities The outstanding amounts issued or drawn under each of the Company’s significant credit facilities is set forth below: At June 30, 2018 Issued or Drawn RenaissanceRe Revolving Credit Facility (1) $ — Uncommitted Standby Letter of Credit Facility with Wells Fargo 93,475 Bilateral Letter of Credit Facility with Citibank Europe 180,779 Renaissance Reinsurance FAL Facility 180,000 Total credit facilities in U.S. dollars $ 454,254 Specialty Risks FAL Facility (1) £ — Total credit facilities in pound sterling £ — (1) At June 30, 2018, no amounts were issued or drawn under these facilities. National Australia Bank Limited Standby Letter of Credit Agreement Effective as of March 23, 2018, the Company terminated the Standby Letter of Credit Agreement, dated as of May 19, 2015, among National Australia Bank Limited (“NAB”) and Renaissance Reinsurance, RenaissanceRe Specialty Risks Ltd., DaVinci and Platinum Underwriters Bermuda, Ltd. (collectively, the “NAB Facility Applicants”) (the “NAB Standby Letter of Credit Agreement”). The NAB Standby Letter of Credit Agreement provided for a secured, uncommitted facility under which letters of credit were issued from time to time for the respective accounts of the NAB Facility Applicants in multiple currencies. RenaissanceRe unconditionally guaranteed the payment obligations of the NAB Facility Applicants, other than DaVinci. |
Noncontrolling Interests
Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2018 | |
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | NONCONTROLLING INTERESTS A summary of the Company’s redeemable noncontrolling interests on its consolidated balance sheets is set forth below: June 30, December 31, 2017 Redeemable noncontrolling interest - DaVinciRe $ 1,082,425 $ 1,011,659 Redeemable noncontrolling interest - Medici 411,003 284,847 Redeemable noncontrolling interests $ 1,493,428 $ 1,296,506 A summary of the Company’s redeemable noncontrolling interests on its consolidated statements of operations is set forth below: Three months ended Six months ended June 30, June 30, June 30, June 30, Redeemable noncontrolling interest - DaVinciRe $ 50,252 $ 36,432 $ 71,205 $ 68,341 Redeemable noncontrolling interest - Medici 4,231 1,180 13,177 3,598 Net income attributable to redeemable noncontrolling interests $ 54,483 $ 37,612 $ 84,382 $ 71,939 Redeemable Noncontrolling Interest – DaVinciRe RenaissanceRe owns a noncontrolling economic interest in DaVinciRe; however, because RenaissanceRe controls a majority of DaVinciRe’s outstanding voting rights, the consolidated financial statements of DaVinciRe are included in the consolidated financial statements of the Company. The portion of DaVinciRe’s earnings owned by third parties is recorded in the consolidated statements of operations as net income attributable to redeemable noncontrolling interests. The Company’s noncontrolling economic ownership in DaVinciRe was 22.1% at June 30, 2018 ( December 31, 2017 - 22.1% ). DaVinciRe shareholders are party to a shareholders agreement which provides DaVinciRe shareholders, excluding RenaissanceRe, with certain redemption rights that enable each shareholder to notify DaVinciRe of such shareholder’s desire for DaVinciRe to repurchase up to half of such shareholder’s initial aggregate number of shares held, subject to certain limitations, such as limiting the aggregate of all share repurchase requests to 25% of DaVinciRe’s capital in any given year and satisfying all applicable regulatory requirements. If total shareholder requests exceed 25% of DaVinciRe’s capital, the number of shares repurchased will be reduced among the requesting shareholders pro-rata, based on the amounts desired to be repurchased. Shareholders desiring to have DaVinci repurchase their shares must notify DaVinciRe before March 1 of each year. The repurchase price will be based on GAAP book value as of the end of the year in which the shareholder notice is given, and the repurchase will be effective as of January 1 of the following year. The repurchase price is generally subject to a true-up for potential development on outstanding loss reserves after settlement of all claims relating to the applicable years. 2017 During January 2017, DaVinciRe redeemed $75.0 million of its outstanding shares from certain existing DaVinciRe shareholders, including RenaissanceRe. In connection with the redemption, DaVinciRe retained a $7.5 million holdback. In addition, RenaissanceRe sold an aggregate of $24.0 million of its shares in DaVinciRe to an existing shareholder and a new shareholder. The Company’s noncontrolling economic ownership in DaVinciRe subsequent to these transactions was 22.6% , effective January 1, 2017. During July 2017, RenaissanceRe purchased $12.0 million of DaVinciRe’s outstanding shares from an existing third-party shareholder. The Company’s noncontrolling economic ownership in DaVinciRe subsequent to these transactions was 23.5% , effective July 1, 2017. Effective October 1, 2017, DaVinciRe completed an equity capital raise of $248.6 million from third-party investors and RenaissanceRe. In addition, RenaissanceRe sold an aggregate of $49.7 million of its shares in DaVinciRe to third-party investors. The Company’s noncontrolling economic ownership in DaVinciRe subsequent to these transactions was 22.1% , effective October 1, 2017. The Company expects its noncontrolling economic ownership in DaVinciRe to fluctuate over time. The activity in redeemable noncontrolling interest – DaVinciRe is detailed in the table below: Three months ended Six months ended June 30, June 30, June 30, June 30, Beginning balance $ 1,032,543 $ 986,646 $ 1,011,659 $ 994,458 Redemption of shares from redeemable noncontrolling interest, net of adjustments (370 ) (3,160 ) (439 ) (66,802 ) Sale of shares to redeemable noncontrolling interests — — — 23,921 Net income attributable to redeemable noncontrolling interest 50,252 36,432 71,205 68,341 Ending balance $ 1,082,425 $ 1,019,918 $ 1,082,425 $ 1,019,918 Redeemable Noncontrolling Interest - RenaissanceRe Medici Fund Ltd. (“Medici”) Medici is an exempted company incorporated under the laws of Bermuda and its objective is to seek to invest substantially all of its assets in various insurance-based investment instruments that have returns primarily tied to property catastrophe risk. RenaissanceRe owns a noncontrolling economic interest in Medici; however, because RenaissanceRe controls all of Medici’s outstanding voting rights, the financial statements of Medici are included in the consolidated financial statements of the Company. The portion of Medici’s earnings owned by third parties is recorded in the consolidated statements of operations as net income attributable to redeemable noncontrolling interests. Any shareholder may redeem all or any portion of its shares as of the last day of any calendar month, upon at least 30 calendar days’ prior irrevocable written notice to Medici. 2017 During 2017, third-party investors subscribed for $149.2 million and redeemed $48.0 million of the participating, non-voting common shares of Medici. As a result of these net subscriptions, the Company’s noncontrolling economic ownership in Medici was 26.8% , effective at December 31, 2017. 2018 During the six months ended June 30, 2018 , third-party investors subscribed for $156.5 million and redeemed $43.5 million of the participating, non-voting common shares of Medici. As a result of these net subscriptions, the Company’s noncontrolling economic ownership in Medici was 16.8% at June 30, 2018 . The Company expects its noncontrolling economic ownership in Medici to fluctuate over time. The activity in redeemable noncontrolling interest – Medici is detailed in the table below: Three months ended Six months ended June 30, June 30, June 30, June 30, Beginning balance $ 392,821 $ 201,345 $ 284,847 $ 181,136 Redemption of shares from redeemable noncontrolling interest, net of adjustments (42,792 ) (15,285 ) (43,503 ) (25,910 ) Sale of shares to redeemable noncontrolling interests 56,743 34,925 156,482 63,341 Net income attributable to redeemable noncontrolling interest 4,231 1,180 13,177 3,598 Ending balance $ 411,003 $ 222,165 $ 411,003 $ 222,165 |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | VARIABLE INTEREST ENTITIES Upsilon RFO Upsilon RFO is a managed joint venture and a Bermuda domiciled SPI that was formed by the Company to provide additional capacity to the worldwide aggregate and per-occurrence retrocessional property catastrophe excess of loss market. The shareholders (other than the Class A shareholder) participate in substantially all of the profits or losses of Upsilon RFO while their shares remain outstanding. The shareholders (other than the Class A shareholder) indemnify Upsilon RFO against losses relating to insurance risk and therefore these shares have been accounted for as prospective reinsurance under FASB ASC Topic Financial Services - Insurance . Upsilon RFO is considered a VIE as it has insufficient equity capital to finance its activities without additional financial support. The Company is the primary beneficiary of Upsilon RFO as it has the power over the activities that most significantly impact the economic performance of Upsilon RFO and has the obligation to absorb expected losses and the right to receive expected benefits that could be significant to Upsilon RFO, in accordance with the accounting guidance. As a result, the Company consolidates Upsilon RFO and all significant inter-company transactions have been eliminated. Other than its equity investment in Upsilon RFO, the Company has not provided financial or other support to Upsilon RFO that it was not contractually required to provide. 2017 During 2017, Upsilon RFO returned $84.3 million of capital to its investors, including $33.0 million to the Company. In addition, during 2017, $180.6 million of Upsilon RFO non-voting preference shares were issued to existing investors therein, including $27.2 million to the Company, and an existing third-party investor purchased $7.5 million of Upsilon RFO non-voting preference shares from the Company. At December 31, 2017, the Company’s participation in the risks assumed by Upsilon RFO was 20.8% . 2018 During the six months ended June 30, 2018 , $805.9 million of Upsilon RFO non-voting preference shares were issued to existing investors, including $107.8 million to the Company. At June 30, 2018 , the Company’s participation in the risks assumed by Upsilon RFO was 14.6% . Amounts received by the Company prior to December 31, 2017 were included in other liabilities on the Company’s consolidated balance sheet at December 31, 2017, and were also included in other operating cash flows on the Company’s consolidated statements of cash flows for the year ended December 31, 2017. During the six months ended June 30, 2018 , in connection with the issuance of the non-voting preference shares of Upsilon RFO, other liabilities were reduced by this amount, and reinsurance balances payable were increased by an offsetting amount, with corresponding impacts to other operating cash flows and the change in reinsurance balances payable on the Company consolidated statements of cash flows for the six months ended June 30, 2018 . At June 30, 2018 , the Company’s consolidated balance sheet included total assets and total liabilities of Upsilon RFO of $1.5 billion and $1.5 billion , respectively ( December 31, 2017 - $1.2 billion and $1.2 billion , respectively). Mona Lisa Re Ltd. (“Mona Lisa Re”) Mona Lisa Re is licensed as a Bermuda domiciled special purpose insurer to provide reinsurance capacity to subsidiaries of RenaissanceRe, namely Renaissance Reinsurance and DaVinci, through reinsurance agreements which will be collateralized and funded by Mona Lisa Re through the issuance of one or more series of principal-at-risk variable rate notes to third-party investors. Upon issuance of a series of notes by Mona Lisa Re, all of the proceeds from the issuance were deposited into collateral accounts, separated by series, to fund any potential obligation under the reinsurance agreements entered into with Renaissance Reinsurance and/or DaVinci underlying such series of notes. The outstanding principal amount of each series of notes generally will be returned to holders of such notes upon the expiration of the risk period underlying such notes, unless an event occurs which causes a loss under the applicable series of notes, in which case the amount returned will be reduced by such noteholder’s pro rata share of such loss, as specified in the applicable governing documents of such notes. In addition, holders of such notes are generally entitled to interest payments, payable quarterly, as determined by the applicable governing documents of each series of notes. The Company concluded that Mona Lisa Re meets the definition of a VIE as it does not have sufficient equity capital to finance its activities. The Company evaluated its relationship with Mona Lisa Re and concluded it does not have a variable interest in Mona Lisa Re. As a result, the financial position and results of operations of Mona Lisa Re are not consolidated by the Company. The Company has not provided financial or other support to Mona Lisa Re that it was not contractually required to provide. At June 30, 2018 , the total assets and total liabilities of Mona Lisa Re were $25.4 million and $25.4 million , respectively ( December 31, 2017 - $25.9 million and $25.9 million , respectively). Effective July 6, 2018 , all remaining outstanding series of notes issued by Mona Lisa Re were redeemed and the proceeds were returned to the holders of such notes. The only transactions related to Mona Lisa Re that are recorded in the Company’s consolidated financial statements are the ceded reinsurance agreements entered into by Renaissance Reinsurance and DaVinci which are accounted for as prospective reinsurance under FASB ASC Topic Financial Services - Insurance. Renaissance Reinsurance and DaVinci have together entered into ceded reinsurance contracts with Mona Lisa Re with gross premiums ceded of $0.2 million and $0.2 million , respectively, during the six months ended June 30, 2018 ( 2017 - $0.1 million and $37 thousand , respectively). In addition, Renaissance Reinsurance and DaVinci recognized ceded premiums earned related to the ceded reinsurance contracts with Mona Lisa Re of $0.2 million and $0.2 million , respectively, during the six months ended June 30, 2018 ( 2017 - $3.6 million and $2.5 million , respectively). Fibonacci Re Effective November 7, 2016 , Fibonacci Re, a Bermuda-domiciled SPI, was formed to provide collateralized capacity to Renaissance Reinsurance and its affiliates. Upon issuance of a series of notes by Fibonacci Re, all of the proceeds from the issuance are deposited into collateral accounts, separated by series, to fund any potential obligation under the reinsurance agreements entered into with Renaissance Reinsurance underlying such series of notes. The outstanding principal amount of each series of notes generally is expected to be returned to holders of such notes upon the expiration of the risk period underlying such notes, unless an event occurs which causes a loss under the applicable series of notes, in which case the amount returned is expected to be reduced by such noteholder’s pro rata share of such loss, as specified in the applicable governing documents of such notes. In addition, holders of such notes are generally entitled to interest payments, payable quarterly, as determined by the applicable governing documents of each series of notes. RUM receives an origination and structuring fee in connection with the formation and operation of Fibonacci Re. The Company concluded that Fibonacci Re meets the definition of a VIE as it does not have sufficient equity capital to finance its activities. The Company evaluated its relationship with Fibonacci Re and concluded it is not the primary beneficiary of Fibonacci Re as it does not have power over the activities that most significantly impact the economic performance of Fibonacci Re. As a result, the Company does not consolidate the financial position or results of operations of Fibonacci Re. The only transactions related to Fibonacci Re that will be recorded in the Company’s consolidated financial statements will be the ceded reinsurance agreements entered into by Renaissance Reinsurance that are accounted for as prospective reinsurance under FASB ASC Topic Financial Services - Insurance, and the fair value of the participating notes owned by the Company. Other than its investment in the participating notes of Fibonacci Re, the Company has not provided financial or other support to Fibonacci Re that it was not contractually required to provide. The fair value of the Company’s investment in the participating notes of Fibonacci Re is included in other investments. Net of third-party investors, the fair value of the Company’s investment in Fibonacci Re was $6.9 million at June 30, 2018 ( December 31, 2017 - $14.1 million ). Renaissance Reinsurance entered into ceded reinsurance contracts with Fibonacci Re with ceded premiums of $9.1 million and ceded premiums earned of $3.1 million during the six months ended June 30, 2018 ( 2017 - $9.4 million and $3.8 million , respectively). Langhorne Effective December 22, 2017, the Company and Reinsurance Group of America, Incorporated closed Langhorne, an initiative to source third party capital to support reinsurers targeting large in-force life and annuity blocks. In connection with Langhorne, as of June 30, 2018 the Company has invested $1.3 million in Langhorne Holdings ( December 31, 2017 - $0.6 million ), a company that owns and manages certain reinsurance entities within Langhorne. In addition, as of June 30, 2018 the Company has invested $0.1 million in Langhorne Partners ( December 31, 2017 - $Nil ), the general partner for Langhorne and the entity which manages the third-party investors investing into Langhorne Holdings. The Company concluded that Langhorne Holdings meets the definition of a VIE as the voting rights are not proportional with the obligations to absorb losses and rights to receive residual returns. The Company evaluated its relationship with Langhorne Holdings and concluded it is not the primary beneficiary of Langhorne Holdings, as it does not have power over the activities that most significantly impact the economic performance of Langhorne Holdings. As a result, the Company does not consolidate the financial position or results of operations of Langhorne Holdings. The Company separately evaluated Langhorne Partners and concluded that it was not a VIE. The Company accounts for its investments in Langhorne Holdings and Langhorne Partners under the equity method of accounting, one quarter in arrears. The Company anticipates that its investment in Langhorne will increase, perhaps materially, as in-force life and annuity blocks of businesses are written. Other than its current and committed future equity investment in Langhorne, the Company has not provided financial or other support to Langhorne that it was not contractually required to provide. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY Dividends The Board of Directors of RenaissanceRe declared a dividend of $0.33 per common share to common shareholders of record on March 15, 2018 and June 15, 2018 , respectively, and RenaissanceRe paid the dividend to common shareholders on March 29, 2018 and June 29, 2018, respectively. The Board of Directors approved the payment of quarterly dividends on the Series C 6.08% Preference Shares and Series E 5.375% Preference Shares to preference shareholders of record in the amounts and on the quarterly record dates and dividend payment dates set forth in the prospectus supplement and Certificate of Designation for the applicable series of preference shares, unless and until further action is taken by the Board of Directors. The dividend payment dates for the preference shares will be the first day of March, June, September and December of each year (or if this date is not a business day, on the business day immediately following this date). The record dates for the preference share dividends are one day prior to the dividend payment dates. The amount of the dividend on the Series C 6.08% Preference Shares is an amount per share equal to 6.08% of the liquidation preference per annum (the equivalent to $1.52 per share per annum, or $0.38 per share per quarter). The amount of the dividend on the Series E 5.375% Preference Shares is an amount per share equal to 5.375% of the liquidation preference per annum (the equivalent to $1.34375 per share per annum, or $0.3359375 per share per quarter). During the six months ended June 30, 2018 , the Company paid $11.2 million in preference share dividends ( 2017 - $11.2 million ) and $26.5 million in common share dividends ( 2017 - $25.9 million ). Preference Shares In June 2018, the Company issued 10,000 shares of its 5.750% Series F Preference Shares, $1.00 par value and liquidation preference $25,000 per share (equivalent to 10,000,000 Depositary Shares, each of which represents a 1/1,000th interest in a 5.750% Series F Preference Share). The 5.750% Series F Preference Shares have no stated maturity date and may be redeemed at a redemption price of $25,000 per share (equivalent to $25.00 per Depositary Share), plus declared and unpaid dividends, at RenaissanceRe’s option on or after June 30, 2023, provided that no redemption may occur prior to June 30, 2028 unless certain redemption requirements are met. In certain circumstances, such as a change in tax law or a capital disqualification event, the Company may redeem the 5.750% Series F Preference Shares prior to June 30, 2023. In addition, the Company may redeem the 5.750% Series F Preference Shares prior to June 30, 2023 at a redemption price of $26,000 per share (equivalent to $26.00 per Depositary Share), plus accrued and unpaid dividends, in certain circumstances where the 5.750% Series F Preference Shares are entitled to vote on an amalgamation, consolidation, merger or other similar corporate transaction, or change in Bermuda law. Dividends on the 5.750% Series F Preference Shares are payable on a non-cumulative basis, only when, as and if declared by the Board of Directors, at an annual rate of 5.750% of the liquidation preference per annum (the equivalent to $1,437.50 per 5.750% Series F Preference Share per annum, or $359.375 per 5.750% Series F Preference Share per quarter, or $1.4375 per Depositary Share per annum, or $0.359375 per Depositary Share per quarter). Unless certain dividend payments are made on the 5.750% Series F Preference Shares, RenaissanceRe will be restricted from paying any dividends on and repurchasing its common shares. Share Repurchases The Company’s share repurchase program may be effected from time to time, depending on market conditions and other factors, through open market purchases and privately negotiated transactions. On November 10, 2017 , RenaissanceRe’s Board of Directors approved a renewal of its authorized share repurchase program for an aggregate amount of up to $500.0 million . Unless terminated earlier by RenaissanceRe’s Board of Directors, the program will expire when the Company has repurchased the full value of the common shares authorized. The Company’s decision to repurchase common shares will depend on, among other matters, the market price of the common shares and the capital requirements of the Company. During the six months ended June 30, 2018 , the Company’s did no t repurchase any of its common shares. At June 30, 2018 , $500.0 million remained available for repurchase under the share repurchase program. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per common share: Three months ended Six months ended (common shares in thousands) June 30, June 30, June 30, June 30, Numerator: Net income available to RenaissanceRe common shareholders $ 191,788 $ 171,142 $ 248,501 $ 263,494 Amount allocated to participating common shareholders (1) (2,174 ) (1,585 ) (2,583 ) (2,526 ) Net income allocated to RenaissanceRe common shareholders $ 189,614 $ 169,557 $ 245,918 $ 260,968 Denominator: Denominator for basic income per RenaissanceRe common share - weighted average common shares 39,641 39,937 39,597 40,172 Per common share equivalents of employee stock options and restricted shares 13 87 25 152 Denominator for diluted income per RenaissanceRe common share - adjusted weighted average common shares and assumed conversions 39,654 40,024 39,622 40,324 Net income available to RenaissanceRe common shareholders per common share – basic $ 4.78 $ 4.25 $ 6.21 $ 6.50 Net income available to RenaissanceRe common shareholders per common share – diluted $ 4.78 $ 4.24 $ 6.21 $ 6.47 (1) Represents earnings attributable to holders of unvested restricted shares issued pursuant to 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. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment Reporting | SEGMENT REPORTING The Company’s reportable segments are defined as follows: (1) Property, which is comprised of catastrophe and other property reinsurance and insurance written on behalf of the Company’s operating subsidiaries and certain joint ventures managed by the Company’s ventures unit, and (2) Casualty and Specialty, which is comprised of casualty and specialty reinsurance and insurance written on behalf of the Company’s operating subsidiaries and certain joint ventures managed by the Company’s ventures unit. In addition to its reportable segments, the Company has an Other category, which primarily includes its strategic investments, investments unit, corporate expenses, capital servicing costs, noncontrolling interests and the remnants of its former Bermuda-based insurance operations. The Company’s Property segment is managed by the Chief Underwriting Officer - Property and the Casualty and Specialty segment is managed by the Chief Underwriting Officer - Casualty and Specialty, each of whom operate under the direction of the Company’s Group Chief Underwriting Officer, who in turn reports to the Company’s President and Chief Executive Officer. The Company does not manage its assets by segment; accordingly, net investment income and total assets are not allocated to the segments. A summary of the significant components of the Company’s revenues and expenses by segment is as follows: Three months ended June 30, 2018 Property Casualty and Specialty Other Total Gross premiums written $ 552,627 $ 424,716 $ — $ 977,343 Net premiums written $ 297,832 $ 306,677 $ — $ 604,509 Net premiums earned $ 204,138 $ 225,247 $ — $ 429,385 Net claims and claim expenses incurred (74,269 ) 134,524 (88 ) 60,167 Acquisition expenses 40,850 64,201 1 105,052 Operational expenses 23,810 13,552 181 37,543 Underwriting income (loss) $ 213,747 $ 12,970 $ (94 ) 226,623 Net investment income 71,356 71,356 Net foreign exchange losses (10,687 ) (10,687 ) Equity in earnings of other ventures 5,826 5,826 Other income 1,225 1,225 Net realized and unrealized losses on investments (17,901 ) (17,901 ) Corporate expenses (8,301 ) (8,301 ) Interest expense (11,768 ) (11,768 ) Income before taxes 256,373 Income tax expense (4,506 ) (4,506 ) Net income attributable to redeemable noncontrolling interests (54,483 ) (54,483 ) Dividends on preference shares (5,596 ) (5,596 ) Net income available to RenaissanceRe common shareholders $ 191,788 Net claims and claim expenses incurred – current accident year $ 68,876 $ 147,520 $ — $ 216,396 Net claims and claim expenses incurred – prior accident years (143,145 ) (12,996 ) (88 ) (156,229 ) Net claims and claim expenses incurred – total $ (74,269 ) $ 134,524 $ (88 ) $ 60,167 Net claims and claim expense ratio – current accident year 33.7 % 65.5 % 50.4 % Net claims and claim expense ratio – prior accident years (70.1 )% (5.8 )% (36.4 )% Net claims and claim expense ratio – calendar year (36.4 )% 59.7 % 14.0 % Underwriting expense ratio 31.7 % 34.5 % 33.2 % Combined ratio (4.7 )% 94.2 % 47.2 % Six months ended June 30, 2018 Property Casualty and Specialty Other Total Gross premiums written $ 1,259,595 $ 877,400 $ — $ 2,136,995 Net premiums written $ 651,909 $ 615,644 $ — $ 1,267,553 Net premiums earned $ 429,187 $ 440,480 $ — $ 869,667 Net claims and claim expenses incurred (43,662 ) 275,602 (70 ) 231,870 Acquisition expenses 81,571 121,191 1 202,763 Operational expenses 50,356 28,145 314 78,815 Underwriting income (loss) $ 340,922 $ 15,542 $ (245 ) 356,219 Net investment income 127,832 127,832 Net foreign exchange losses (6,930 ) (6,930 ) Equity in earnings of other ventures 6,683 6,683 Other loss (17 ) (17 ) Net realized and unrealized losses on investments (100,045 ) (100,045 ) Corporate expenses (15,034 ) (15,034 ) Interest expense (23,535 ) (23,535 ) Income before taxes 345,173 Income tax expense (1,099 ) (1,099 ) Net income attributable to redeemable noncontrolling interests (84,382 ) (84,382 ) Dividends on preference shares (11,191 ) (11,191 ) Net income available to RenaissanceRe common shareholders $ 248,501 Net claims and claim expenses incurred – current accident year $ 127,045 $ 292,389 $ — $ 419,434 Net claims and claim expenses incurred – prior accident years (170,707 ) (16,787 ) (70 ) (187,564 ) Net claims and claim expenses incurred – total $ (43,662 ) $ 275,602 $ (70 ) $ 231,870 Net claims and claim expense ratio – current accident year 29.6 % 66.4 % 48.2 % Net claims and claim expense ratio – prior accident years (39.8 )% (3.8 )% (21.5 )% Net claims and claim expense ratio – calendar year (10.2 )% 62.6 % 26.7 % Underwriting expense ratio 30.8 % 33.9 % 32.3 % Combined ratio 20.6 % 96.5 % 59.0 % Three months ended June 30, 2017 Property Casualty and Specialty Other Total Gross premiums written $ 499,347 $ 328,068 $ — $ 827,415 Net premiums written $ 336,464 $ 219,281 $ — $ 555,745 Net premiums earned $ 192,198 $ 190,065 $ 2 $ 382,265 Net claims and claim expenses incurred 33,017 109,797 (227 ) 142,587 Acquisition expenses 28,500 59,752 (1 ) 88,251 Operational expenses 24,053 17,712 1 41,766 Underwriting income $ 106,628 $ 2,804 $ 229 109,661 Net investment income 54,163 54,163 Net foreign exchange gains 3,109 3,109 Equity in earnings of other ventures 5,543 5,543 Other income 2,392 2,392 Net realized and unrealized gains on investments 58,113 58,113 Corporate expenses (4,636 ) (4,636 ) Interest expense (10,091 ) (10,091 ) Income before taxes and noncontrolling interests 218,254 Income tax expense (3,904 ) (3,904 ) Net income attributable to noncontrolling interests (37,612 ) (37,612 ) Dividends on preference shares (5,596 ) (5,596 ) Net income available to RenaissanceRe common shareholders $ 171,142 Net claims and claim expenses incurred – current accident year $ 56,889 $ 130,802 $ — $ 187,691 Net claims and claim expenses incurred – prior accident years (23,872 ) (21,005 ) (227 ) (45,104 ) Net claims and claim expenses incurred – total $ 33,017 $ 109,797 $ (227 ) $ 142,587 Net claims and claim expense ratio – current accident year 29.6 % 68.8 % 49.1 % Net claims and claim expense ratio – prior accident years (12.4 )% (11.0 )% (11.8 )% Net claims and claim expense ratio – calendar year 17.2 % 57.8 % 37.3 % Underwriting expense ratio 27.3 % 40.7 % 34.0 % Combined ratio 44.5 % 98.5 % 71.3 % Six months ended June 30, 2017 Property Casualty and Specialty Other Total Gross premiums written $ 1,019,876 $ 729,629 $ — $ 1,749,505 Net premiums written $ 626,335 $ 473,546 $ — $ 1,099,881 Net premiums earned $ 379,186 $ 369,124 $ — $ 748,310 Net claims and claim expenses incurred 71,855 264,368 (555 ) 335,668 Acquisition expenses 57,603 113,931 (1 ) 171,533 Operational expenses 51,718 37,319 12 89,049 Underwriting income (loss) $ 198,010 $ (46,494 ) $ 544 152,060 Net investment income 108,488 108,488 Net foreign exchange gains 11,274 11,274 Equity in losses of other ventures 4,036 4,036 Other income 4,057 4,057 Net realized and unrealized gains on investments 101,486 101,486 Corporate expenses (9,922 ) (9,922 ) Interest expense (20,617 ) (20,617 ) Income before taxes and noncontrolling interests 350,862 Income tax expense (4,238 ) (4,238 ) Net income attributable to noncontrolling interests (71,939 ) (71,939 ) Dividends on preference shares (11,191 ) (11,191 ) Net income available to RenaissanceRe common shareholders $ 263,494 Net claims and claim expenses incurred – current accident year $ 96,655 $ 255,111 $ — $ 351,766 Net claims and claim expenses incurred – prior accident years (24,800 ) 9,257 (555 ) (16,098 ) Net claims and claim expenses incurred – total $ 71,855 $ 264,368 $ (555 ) $ 335,668 Net claims and claim expense ratio – current accident year 25.5 % 69.1 % 47.0 % Net claims and claim expense ratio – prior accident years (6.6 )% 2.5 % (2.1 )% Net claims and claim expense ratio – calendar year 18.9 % 71.6 % 44.9 % Underwriting expense ratio 28.9 % 41.0 % 34.8 % Combined ratio 47.8 % 112.6 % 79.7 % |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Summary of Derivative Instruments [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS From time to time, the Company may enter into derivative instruments such as futures, options, swaps, forward contracts and other derivative contracts primarily to manage its foreign currency exposure, obtain exposure to a particular financial market, for yield enhancement, or for trading and speculation. The Company’s derivative instruments can be exchange traded or over-the-counter, with over-the-counter derivatives generally traded under International Swaps and Derivatives Association master agreements, which establish the terms of the transactions entered into with the Company’s derivative counterparties. In the event a party becomes insolvent or otherwise defaults on its obligations, a master agreement generally permits the non-defaulting party to accelerate and terminate all outstanding transactions and net the transactions’ marked-to-market values so that a single sum in a single currency will be owed by, or owed to, the non-defaulting party. Effectively, this contractual close-out netting reduces credit exposure from gross to net exposure. Where the Company has entered into master netting agreements with counterparties, or the Company has the legal and contractual right to offset positions, the derivative positions are generally netted by counterparty and are reported accordingly in other assets and other liabilities. The tables below show the gross and net amounts of recognized derivative assets and liabilities at fair value, including the location on the consolidated balance sheets of the Company’s principal derivative instruments: Derivative Assets At June 30, 2018 Gross Amounts of Recognized Assets Gross Amounts Offset in the Balance Sheet Net Amounts of Assets Presented in the Balance Sheet Balance Sheet Location Collateral Net Amount Interest rate futures $ 81 81 $ — Other assets $ — $ — Interest rate swaps 573 — 573 Other assets — 573 Foreign currency forward contracts (1) 6,687 — 6,687 Other assets — 6,687 Foreign currency forward contracts (2) 1,759 5 1,754 Other assets — 1,754 Credit default swaps 462 — 462 Other assets — 462 Total $ 9,562 $ 86 $ 9,476 $ — $ 9,476 Derivative Liabilities At June 30, 2018 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Balance Sheet Net Amounts of Liabilities Presented in the Balance Sheet Balance Sheet Location Collateral Pledged Net Amount Interest rate futures $ 176 81 $ 95 Other liabilities $ 95 $ — Foreign currency forward contracts (1) 13,100 2,146 10,954 Other liabilities — 10,954 Foreign currency forward contracts (2) 593 5 588 Other liabilities — 588 Total $ 13,869 $ 2,232 $ 11,637 $ 95 $ 11,542 (1) Contracts used to manage foreign currency risks in underwriting and non-investment operations. (2) Contracts used to manage foreign currency risks in investment operations. Derivative Assets At December 31, 2017 Gross Amounts of Recognized Assets Gross Amounts Offset in the Balance Sheet Net Amounts of Assets Presented in the Balance Sheet Balance Sheet Location Collateral Net Amount Interest rate futures $ 684 524 $ 160 Other assets $ — $ 160 Interest rate swaps 424 — 424 Other assets — 424 Foreign currency forward contracts (1) 3,865 358 3,507 Other assets — 3,507 Foreign currency forward contracts (2) 39 11 28 Other assets — 28 Credit default swaps 1,518 — 1,518 Other assets — 1,518 Total $ 6,530 $ 893 $ 5,637 $ — $ 5,637 Derivative Liabilities At December 31, 2017 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Balance Sheet Net Amounts of Liabilities Presented in the Balance Sheet Balance Sheet Location Collateral Pledged Net Amount Interest rate futures $ 729 524 $ 205 Other liabilities $ 205 $ — Foreign currency forward contracts (1) 670 — 670 Other liabilities — 670 Foreign currency forward contracts (2) 115 11 104 Other liabilities — 104 Credit default swaps 22 — 22 Other liabilities 22 — Total $ 1,536 $ 535 $ 1,001 $ 227 $ 774 (1) Contracts used to manage foreign currency risks in underwriting and non-investment operations. (2) Contracts used to manage foreign currency risks in investment operations. Refer to “Note 3 . Investments” for information on reverse repurchase agreements. The location and amount of the gain (loss) recognized in the Company’s consolidated statements of operations related to its principal derivative instruments are shown in the following table: Location of gain (loss) recognized on derivatives Amount of gain (loss) recognized on derivatives Three months ended June 30, 2018 2017 Interest rate futures Net realized and unrealized (losses) gains on investments $ (87 ) $ (890 ) Interest rate swaps Net realized and unrealized (losses) gains on investments 241 — Foreign currency forward contracts (1) Net foreign exchange (losses) gains (6,374 ) 5,223 Foreign currency forward contracts (2) Net foreign exchange (losses) gains 1,343 (267 ) Credit default swaps Net realized and unrealized (losses) gains on investments 884 622 Total $ (3,993 ) $ 4,688 Location of gain (loss) recognized on derivatives Amount of gain (loss) recognized on derivatives Six months ended June 30, 2018 2017 Interest rate futures Net realized and unrealized (losses) gains on investments $ (2,424 ) $ (1,048 ) Interest rate swaps Net realized and unrealized (losses) gains on investments 135 — Foreign currency forward contracts (1) Net foreign exchange (losses) gains 369 6,283 Foreign currency forward contracts (2) Net foreign exchange (losses) gains 652 (900 ) Credit default swaps Net realized and unrealized (losses) gains on investments (1,037 ) 724 Total $ (2,305 ) $ 5,059 (1) Contracts used to manage foreign currency risks in underwriting and non-investment operations. (2) Contracts used to manage foreign currency risks in investment operations. The Company is not aware of the existence of any credit-risk related contingent features that it believes would be triggered in its derivative instruments that are in a net liability position at June 30, 2018 . Interest Rate Derivatives The Company uses interest rate futures and swaps within its portfolio of fixed maturity investments to manage its exposure to interest rate risk, which may result in increasing or decreasing its exposure to this risk. Interest Rate Futures The fair value of interest rate futures is determined using exchange traded prices. At June 30, 2018 , the Company had $1.1 billion of notional long positions and $398.6 million of notional short positions of primarily Eurodollar, U.S. treasury and non-U.S. dollar futures contracts ( December 31, 2017 - $1.5 billion and $801.1 million , respectively). Interest Rate Swaps The fair value of interest rate swaps is determined using the relevant exchange traded price where available or a discounted cash flow model based on the terms of the contract and inputs, including, where applicable, observable yield curves. At June 30, 2018 , the Company had $38.8 million of notional positions paying a fixed rate and $25.5 million receiving a fixed rate denominated in U.S. dollars ( December 31, 2017 - $40.3 million and $Nil , respectively). Foreign Currency Derivatives The Company’s functional currency is the U.S. dollar. The Company writes a portion of its business in currencies other than U.S. dollars and may, from time to time, experience foreign exchange gains and losses in the Company’s consolidated financial statements. All changes in exchange rates, with the exception of non-monetary assets and liabilities, are recognized in the Company’s consolidated statements of operations. Underwriting Operations Related Foreign Currency Contracts The Company’s foreign currency policy with regard to its underwriting operations is generally to hold foreign currency assets, including cash, investments and receivables that approximate the foreign currency liabilities, including claims and claim expense reserves and reinsurance balances payable. When necessary, the Company may use foreign currency forward and option contracts to minimize the effect of fluctuating foreign currencies on the value of non-U.S. dollar denominated assets and liabilities associated with its underwriting operations. The fair value of the Company’s underwriting operations related foreign currency contracts is determined using indicative pricing obtained from counterparties or broker quotes. At June 30, 2018 , the Company had outstanding underwriting related foreign currency contracts of $401.2 million in notional long positions and $513.4 million in notional short positions, denominated in U.S. dollars ( December 31, 2017 - $215.4 million and $44.2 million , respectively). Investment Portfolio Related Foreign Currency Forward Contracts The Company’s investment operations are exposed to currency fluctuations through its investments in non-U.S. dollar fixed maturity investments, short term investments and other investments. From time to time, the Company may employ foreign currency forward contracts in its investment portfolio to either assume foreign currency risk or to economically hedge its exposure to currency fluctuations from these investments. The fair value of the Company’s investment portfolio related foreign currency forward contracts is determined using an interpolated rate based on closing forward market rates. At June 30, 2018 , the Company had outstanding investment portfolio related foreign currency contracts of $91.8 million in notional long positions and $49.4 million in notional short positions, denominated in U.S. dollars ( December 31, 2017 - $16.6 million and $5.1 million , respectively). Credit Derivatives The Company’s exposure to credit risk is primarily due to its fixed maturity investments, short term investments, premiums receivable and reinsurance recoverable. From time to time, the Company may purchase credit derivatives to hedge its exposures in the insurance industry, and to assist in managing the credit risk associated with ceded reinsurance. The Company also employs credit derivatives in its investment portfolio to either assume credit risk or hedge its credit exposure. The fair value of credit derivatives is determined using industry valuation models, broker bid indications or internal pricing valuation techniques. The fair value of these credit derivatives can change based on a variety of factors including changes in credit spreads, default rates and recovery rates, the correlation of credit risk between the referenced credit and the counterparty, and market rate inputs such as interest rates. At June 30, 2018 , the Company had outstanding credit derivatives of $1.0 million in notional positions to hedge credit risk and $99.6 million in notional positions to assume credit risk, denominated in U.S. dollars ( December 31, 2017 - $1.0 million and $18.8 million , respectively). |
Commitments, Contingencies and
Commitments, Contingencies and Other Items | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Other Items | COMMITMENTS, CONTINGENCIES AND OTHER ITEMS There are no material changes from the commitments and contingencies previously disclosed in the Company’s Form 10-K for the year ended December 31, 2017 . Legal Proceedings The Company and its subsidiaries are subject to lawsuits and regulatory actions in the normal course of business that do not arise from or directly relate to claims on reinsurance treaties or contracts or direct surplus lines insurance policies. In the Company’s industry, business litigation may involve allegations of underwriting or claims-handling errors or misconduct, disputes relating to the scope of, or compliance with, the terms of delegated underwriting agreements, employment claims, regulatory actions or disputes arising from the Company’s business ventures. The Company’s operating subsidiaries are subject to claims litigation involving, among other things, disputed interpretations of policy coverages. Generally, the Company’s direct surplus lines insurance operations are subject to greater frequency and diversity of claims and claims-related litigation than its reinsurance operations and, in some jurisdictions, may be subject to direct actions by allegedly injured persons or entities seeking damages from policyholders. These lawsuits, involving or arising out of claims on policies issued by the Company’s subsidiaries which are typical to the insurance industry in general and in the normal course of business, are considered in its loss and loss expense reserves. In addition, the Company may from time to time engage in litigation or arbitration related to its claims for payment in respect of ceded reinsurance, including disputes that challenge the Company’s ability to enforce its underwriting intent. Such matters could result, directly or indirectly, in providers of protection not meeting their obligations to the Company or not doing so on a timely basis. The Company may also be subject to other disputes from time to time, relating to operational or other matters distinct from insurance or reinsurance claims. Any litigation or arbitration, or regulatory process, contains an element of uncertainty, and the value of an exposure or a gain contingency related to a dispute is difficult to estimate accordingly. Currently, the Company believes that no individual litigation or arbitration to which it is presently a party is likely to have a material adverse effect on its financial condition, business or operations. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information Provided in Connection with Outstanding Debt of Subsidiaries | 6 Months Ended |
Jun. 30, 2018 | |
Condensed Consolidating Financial Information Provided In Connection With Outstanding Debt Of Subsidiaries [Abstract] | |
Condensed Consolidating Financial Information Provided in Connection with Outstanding Debt of Subsidiaries | CONDENSED CONSOLIDATING FINANCIAL INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT OF SUBSIDIARIES The following tables present condensed consolidating balance sheets at June 30, 2018 and December 31, 2017 , condensed consolidating statements of operations and condensed consolidating statements of comprehensive income for the three and six months ended June 30, 2018 and 2017 , and condensed consolidating statements of cash flows for the six months ended June 30, 2018 . Each of RenRe North America Holdings Inc. and RenaissanceRe Finance, Inc. is a 100% owned subsidiary of RenaissanceRe. On June 1, 2017, the notes issued by Platinum Underwriters Finance, Inc. (“Platinum Finance”) matured and the Company repaid the aggregate principal amount plus applicable accrued interest in full. Platinum Finance was subsequently dissolved on November 30, 2017. Prior to the liquidation of Platinum Finance, it was a 100% owned subsidiary of RenaissanceRe. For additional information related to the terms of the Company’s outstanding debt securities, see “Note 9. Debt and Credit Facilities” in the “Notes to Consolidated Financial Statements” in the Company’s Form 10-K for the year ended December 31, 2017 and “Note 7 . Debt and Credit Facilities” in the “Notes to Consolidated Financial Statements” included herein. Condensed Consolidating Balance Sheet at June 30, 2018 RenaissanceRe RenRe North RenaissanceRe Finance, Inc. (Subsidiary Issuer) Other Consolidating RenaissanceRe Assets Total investments $ 99,651 $ 114,609 $ 16,683 $ 10,479,717 $ — $ 10,710,660 Cash and cash equivalents 2,502 12 4,745 541,213 — 548,472 Investments in subsidiaries 4,289,987 54,479 1,159,014 — (5,503,480 ) — Due from subsidiaries and affiliates 139,503 91,891 — — (231,394 ) — Premiums receivable — — — 1,959,647 — 1,959,647 Prepaid reinsurance premiums — — — 925,501 — 925,501 Reinsurance recoverable — — — 1,454,991 — 1,454,991 Accrued investment income 406 318 71 44,015 — 44,810 Deferred acquisition costs — — — 511,155 — 511,155 Receivable for investments sold 195,242 68 — 310,597 — 505,907 Other assets 444,328 20,798 433,500 83,597 (860,175 ) 122,048 Goodwill and other intangible assets 122,644 — — 117,543 — 240,187 Total assets $ 5,294,263 $ 282,175 $ 1,614,013 $ 16,427,976 $ (6,595,049 ) $ 17,023,378 Liabilities, Noncontrolling Interests and Shareholders’ Equity Liabilities Reserve for claims and claim expenses $ — $ — $ — $ 4,702,345 $ — $ 4,702,345 Unearned premiums — — — 2,267,450 — 2,267,450 Debt 417,000 — 842,486 147,885 (417,000 ) 990,371 Amounts due to subsidiaries and affiliates 5,276 104 114,127 — (119,507 ) — Reinsurance balances payable — — — 2,085,034 — 2,085,034 Payable for investments purchased — 32 — 490,557 — 490,589 Other liabilities 11,926 694 13,945 120,523 (12,988 ) 134,100 Total liabilities 434,202 830 970,558 9,813,794 (549,495 ) 10,669,889 Redeemable noncontrolling interests — — — 1,493,428 — 1,493,428 Shareholders’ Equity Total shareholders’ equity 4,860,061 281,345 643,455 5,120,754 (6,045,554 ) 4,860,061 Total liabilities, noncontrolling interests and shareholders’ equity $ 5,294,263 $ 282,175 $ 1,614,013 $ 16,427,976 $ (6,595,049 ) $ 17,023,378 (1) Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. (2) Includes Parent Guarantor, Subsidiary Guarantor and Subsidiary Issuer consolidating adjustments. Condensed Consolidating Balance Sheet at December 31, 2017 RenaissanceRe Holdings Ltd. (Parent Guarantor) RenRe North RenaissanceRe Finance, Inc. (Subsidiary Issuer) Other RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) Consolidating Adjustments (2) RenaissanceRe Consolidated Assets Total investments $ 225,266 $ 129,732 $ 31,255 $ 9,117,186 $ — $ 9,503,439 Cash and cash equivalents 14,656 139 1,469 1,345,328 — 1,361,592 Investments in subsidiaries 4,105,760 36,140 1,141,733 — (5,283,633 ) — Due from subsidiaries and affiliates 4,602 91,891 — — (96,493 ) — Premiums receivable — — — 1,304,622 — 1,304,622 Prepaid reinsurance premiums — — — 533,546 — 533,546 Reinsurance recoverable — — — 1,586,630 — 1,586,630 Accrued investment income 405 428 82 41,320 — 42,235 Deferred acquisition costs — — — 426,551 — 426,551 Receivable for investments sold 135 51 8 102,951 — 103,145 Other assets 433,468 21,342 430,481 76,703 (840,768 ) 121,226 Goodwill and other intangible assets 124,960 — — 118,185 — 243,145 Total assets $ 4,909,252 $ 279,723 $ 1,605,028 $ 14,653,022 $ (6,220,894 ) $ 15,226,131 Liabilities, Redeemable Noncontrolling Interest and Shareholders’ Equity Liabilities Reserve for claims and claim expenses $ — $ — $ — $ 5,080,408 $ — $ 5,080,408 Unearned premiums — — — 1,477,609 — 1,477,609 Debt 417,000 — 841,892 147,731 (417,000 ) 989,623 Amounts due to subsidiaries and affiliates 82,579 54 92,794 — (175,427 ) — Reinsurance balances payable — — — 989,090 — 989,090 Payable for investments purchased — — — 208,749 — 208,749 Other liabilities 18,298 1,053 14,117 764,432 (5,129 ) 792,771 Total liabilities 517,877 1,107 948,803 8,668,019 (597,556 ) 9,538,250 Redeemable noncontrolling interests — — — 1,296,506 — 1,296,506 Shareholders’ Equity Total shareholders’ equity 4,391,375 278,616 656,225 4,688,497 (5,623,338 ) 4,391,375 Total liabilities, redeemable noncontrolling interest and shareholders’ equity $ 4,909,252 $ 279,723 $ 1,605,028 $ 14,653,022 $ (6,220,894 ) $ 15,226,131 (1) Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. (2) Includes Parent Guarantor and Subsidiary Issuer consolidating adjustments. Condensed Consolidating Statement of Operations for RenaissanceRe RenRe North RenaissanceRe Finance, Inc. (Subsidiary Issuer) Other Consolidating RenaissanceRe Revenues Net premiums earned $ — $ — $ — $ 429,385 $ — $ 429,385 Net investment income 5,927 577 1,206 71,257 (7,611 ) 71,356 Net foreign exchange losses (1 ) — — (10,686 ) — (10,687 ) Equity in earnings of other ventures — — 544 5,282 — 5,826 Other income — — — 1,225 — 1,225 Net realized and unrealized gains (losses) on investments 16 1,713 (67 ) (19,563 ) — (17,901 ) Total revenues 5,942 2,290 1,683 476,900 (7,611 ) 479,204 Expenses Net claims and claim expenses incurred — — — 60,167 — 60,167 Acquisition expenses — — — 105,052 — 105,052 Operational expenses 2,668 21 8,174 33,106 (6,426 ) 37,543 Corporate expenses 5,036 — 7 3,258 — 8,301 Interest expense 1,108 — 9,254 2,514 (1,108 ) 11,768 Total expenses 8,812 21 17,435 204,097 (7,534 ) 222,831 (Loss) income before equity in net income (loss) of subsidiaries and taxes (2,870 ) 2,269 (15,752 ) 272,803 (77 ) 256,373 Equity in net income (loss) of subsidiaries 202,525 716 21,152 — (224,393 ) — Income before taxes 199,655 2,985 5,400 272,803 (224,470 ) 256,373 Income tax (expense) benefit (2,271 ) (468 ) 2,022 (3,789 ) — (4,506 ) Net income 197,384 2,517 7,422 269,014 (224,470 ) 251,867 Net income attributable to redeemable noncontrolling interests — — — (54,483 ) — (54,483 ) Net income attributable to RenaissanceRe 197,384 2,517 7,422 214,531 (224,470 ) 197,384 Dividends on preference shares (5,596 ) — — — — (5,596 ) Net income available to RenaissanceRe common shareholders $ 191,788 $ 2,517 $ 7,422 $ 214,531 $ (224,470 ) $ 191,788 (1) Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. (2) Includes Parent Guarantor and Subsidiary Issuer consolidating adjustments. Condensed Consolidating Statement of Comprehensive Income for the three months ended June 30, 2018 RenaissanceRe RenRe North RenaissanceRe Finance, Inc. (Subsidiary Issuer) Other Consolidating RenaissanceRe Comprehensive income Net income $ 197,384 $ 2,517 $ 7,422 $ 269,014 $ (224,470 ) $ 251,867 Change in net unrealized gains on investments — — — (1,295 ) — (1,295 ) Comprehensive income 197,384 2,517 7,422 267,719 (224,470 ) 250,572 Net income attributable to redeemable noncontrolling interests — — — (54,483 ) — (54,483 ) Comprehensive income attributable to redeemable noncontrolling interests — — — (54,483 ) — (54,483 ) Comprehensive income available to RenaissanceRe $ 197,384 $ 2,517 $ 7,422 $ 213,236 $ (224,470 ) $ 196,089 (1) Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. (2) Includes Parent Guarantor and Subsidiary Issuer consolidating adjustments. Condensed Consolidating Statement of Operations for RenaissanceRe RenRe North RenaissanceRe Finance, Inc. (Subsidiary Issuer) Other Consolidating RenaissanceRe Revenues Net premiums earned $ — $ — $ — $ 869,667 $ — $ 869,667 Net investment income 11,962 1,090 2,440 127,562 (15,222 ) 127,832 Net foreign exchange losses (4 ) — — (6,942 ) — (6,930 ) Equity in earnings of other ventures — — 1,755 4,928 — 6,683 Other loss — — — (17 ) — (17 ) Net realized and unrealized (losses) gains on investments (645 ) 427 (326 ) (99,501 ) — (100,045 ) Total revenues 11,313 1,517 3,869 895,697 (15,222 ) 897,190 Expenses Net claims and claim expenses incurred — — — 231,870 — 231,870 Acquisition expenses — — — 202,763 — 202,763 Operational expenses 3,981 31 19,244 71,039 (15,480 ) 78,815 Corporate expenses 8,720 — 7 6,307 — 15,034 Interest expense 2,216 — 18,506 5,029 (2,216 ) 23,535 Total expenses 14,917 31 37,757 517,008 (17,696 ) 552,017 (Loss) income before equity in net income of subsidiaries and taxes (3,604 ) 1,486 (33,888 ) 378,689 2,474 345,173 Equity in net income of subsidiaries 264,951 1,550 17,339 — (283,840 ) — Income (loss) before taxes 261,347 3,036 (16,549 ) 378,689 (281,366 ) 345,173 Income tax (expense) benefit (1,655 ) (247 ) 3,837 (3,034 ) — (1,099 ) Net income (loss) 259,692 2,789 (12,712 ) 375,655 (281,366 ) 344,074 Net income attributable to redeemable noncontrolling interests — — — (84,382 ) — (84,382 ) Net income (loss) attributable to RenaissanceRe 259,692 2,789 (12,712 ) 291,273 (281,366 ) 259,692 Dividends on preference shares (11,191 ) — — — — (11,191 ) Net income (loss) available (attributable) to RenaissanceRe common shareholders $ 248,501 $ 2,789 $ (12,712 ) $ 291,273 $ (281,366 ) $ 248,501 (1) Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. (2) Includes Parent Guarantor, Subsidiary Guarantor and Subsidiary Issuer consolidating adjustments. Condensed Consolidating Statement of Comprehensive Income (Loss) for the six months ended June 30, 2018 RenaissanceRe RenRe North RenaissanceRe Finance, Inc. (Subsidiary Issuer) Other Consolidating RenaissanceRe Comprehensive income (loss) Net income (loss) $ 259,692 $ 2,789 $ (12,712 ) $ 375,655 $ (281,366 ) $ 344,074 Change in net unrealized gains on investments — — — (1,325 ) — (1,325 ) Comprehensive income (loss) 259,692 2,789 (12,712 ) 374,330 (281,366 ) 342,749 Net income attributable to redeemable noncontrolling interests — — — (84,382 ) — (84,382 ) Comprehensive income attributable to noncontrolling interests — — — (84,382 ) — (84,382 ) Comprehensive income (loss) attributable to RenaissanceRe $ 259,692 $ 2,789 $ (12,712 ) $ 289,948 $ (281,366 ) $ 258,367 (1) Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. (2) Includes Parent Guarantor, Subsidiary Guarantor and Subsidiary Issuer consolidating adjustments. Condensed Consolidating Statement of Operations for RenaissanceRe RenRe North Platinum Underwriters Finance, Inc. (Subsidiary Issuer) RenaissanceRe Finance, Inc. (Subsidiary Issuer) Other Consolidating RenaissanceRe Revenues Net premiums earned $ — $ — $ — $ — $ 382,265 $ — $ 382,265 Net investment income 5,284 466 535 239 53,891 (6,252 ) 54,163 Net foreign exchange (losses) gains (1 ) — — — 3,110 — 3,109 Equity in (losses) earnings of other ventures — — — 302 5,241 — 5,543 Other income — — — — 2,392 — 2,392 Net realized and unrealized (losses) gains on investments (8 ) 1,421 191 (242 ) 56,751 — 58,113 Total revenues 5,275 1,887 726 299 503,650 (6,252 ) 505,585 Expenses Net claims and claim expenses incurred — — — — 142,587 — 142,587 Acquisition expenses — — — — 88,251 — 88,251 Operational expenses 3,190 16 35 6,647 36,402 (4,524 ) 41,766 Corporate expenses 4,798 — — — (162 ) — 4,636 Interest expense 141 — 985 6,601 2,505 (141 ) 10,091 Total expenses 8,129 16 1,020 13,248 269,583 (4,665 ) 287,331 (Loss) income before equity in net income of subsidiaries and taxes (2,854 ) 1,871 (294 ) (12,949 ) 234,067 (1,587 ) 218,254 Equity in net income of subsidiaries 178,746 1,220 18,185 20,438 — (218,589 ) — Income before taxes 175,892 3,091 17,891 7,489 234,067 (220,176 ) 218,254 Income tax benefit (expense) 846 (584 ) 104 2,902 (7,172 ) — (3,904 ) Net income 176,738 2,507 17,995 10,391 226,895 (220,176 ) 214,350 Net income attributable to redeemable noncontrolling interests — — — — (37,612 ) — (37,612 ) Net income attributable to RenaissanceRe 176,738 2,507 17,995 10,391 189,283 (220,176 ) 176,738 Dividends on preference shares (5,596 ) — — — — — (5,596 ) Net income available to RenaissanceRe common shareholders $ 171,142 $ 2,507 $ 17,995 $ 10,391 $ 189,283 $ (220,176 ) $ 171,142 (1) Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. (2) Includes Parent Guarantor and Subsidiary Issuer consolidating adjustments. Condensed Consolidating Statement of Comprehensive Income for the three months ended June 30, 2017 RenaissanceRe RenRe North Platinum Underwriters Finance, Inc. (Subsidiary Issuer) RenaissanceRe Finance, Inc. (Subsidiary Issuer) Other Consolidating RenaissanceRe Comprehensive income Net income $ 176,738 $ 2,507 $ 17,995 $ 10,391 $ 226,895 $ (220,176 ) $ 214,350 Change in net unrealized gains on investments — — — — 219 — 219 Comprehensive income 176,738 2,507 17,995 10,391 227,114 (220,176 ) 214,569 Net income attributable to redeemable noncontrolling interests — — — — (37,612 ) — (37,612 ) Comprehensive income attributable to redeemable noncontrolling interests — — — — (37,612 ) — (37,612 ) Comprehensive income attributable to RenaissanceRe $ 176,738 $ 2,507 $ 17,995 $ 10,391 $ 189,502 $ (220,176 ) $ 176,957 (1) Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. (2) Includes Parent Guarantor and Subsidiary Issuer consolidating adjustments. Condensed Consolidating Statement of Operations for the six months ended June 30, 2017 RenaissanceRe RenRe North Inc. Platinum Underwriters Finance, Inc. (Subsidiary Issuer) RenaissanceRe Finance, Inc. (Subsidiary Issuer) Other Consolidating RenaissanceRe Revenues Net premiums earned $ — $ — $ — $ — $ 748,310 $ — $ 748,310 Net investment income 10,741 892 1,376 508 107,474 (12,503 ) 108,488 Net foreign exchange (losses) gains (1 ) — — — 11,275 — 11,274 Equity in earnings of other ventures — — — (450 ) 4,486 — 4,036 Other (loss) income (1 ) — — — 4,058 — 4,057 Net realized and unrealized gains (losses) on investments 45 4,342 4,916 (268 ) 92,451 — 101,486 Total revenues 10,784 5,234 6,292 (210 ) 968,054 (12,503 ) 977,651 Expenses Net claims and claim expenses incurred — — — — 335,668 — 335,668 Acquisition expenses — — — — 171,533 — 171,533 Operational expenses 6,488 40 85 14,626 78,460 (10,650 ) 89,049 Corporate expenses 10,006 — — — (84 ) — 9,922 Interest expense 281 — 2,461 13,143 5,013 (281 ) 20,617 Total expenses 16,775 40 2,546 27,769 590,590 (10,931 ) 626,789 (Loss) income before equity in net income of subsidiaries and taxes (5,991 ) 5,194 3,746 (27,979 ) 377,464 (1,572 ) 350,862 Equity in net income of subsidiaries 280,099 2,306 28,028 36,936 — (347,369 ) — Income before taxes 274,108 7,500 31,774 8,957 377,464 (348,941 ) 350,862 Income tax benefit (expense) 577 (1,682 ) (1,204 ) 5,974 (7,903 ) — (4,238 ) Net income 274,685 5,818 30,570 14,931 369,561 (348,941 ) 346,624 Net income attributable to redeemable noncontrolling interests — — — — (71,939 ) — (71,939 ) Net income attributable to RenaissanceRe 274,685 5,818 30,570 14,931 297,622 (348,941 ) 274,685 Dividends on preference shares (11,191 ) — — — — — (11,191 ) Net income available to RenaissanceRe common shareholders $ 263,494 $ 5,818 $ 30,570 $ 14,931 $ 297,622 $ (348,941 ) $ 263,494 (1) Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. (2) Includes Parent Guarantor and Subsidiary Issuer consolidating adjustments. Condensed Consolidating Statement of Comprehensive Income for the six months ended June 30, 2017 RenaissanceRe RenRe North Inc. Platinum Underwriters Finance, Inc. (Subsidiary Issuer) RenaissanceRe Finance, Inc. (Subsidiary Issuer) Other Consolidating RenaissanceRe Comprehensive income Net income $ 274,685 $ 5,818 $ 30,570 $ 14,931 $ 369,561 $ (348,941 ) $ 346,624 Change in net unrealized gains on investments — — — — (1,272 ) — (1,272 ) Comprehensive income 274,685 5,818 30,570 14,931 368,289 (348,941 ) 345,352 Net income attributable to redeemable noncontrolling interests — — — — (71,939 ) — (71,939 ) Comprehensive income attributable to redeemable noncontrolling interests — — — — (71,939 ) — (71,939 ) Comprehensive income available to RenaissanceRe $ 274,685 $ 5,818 $ 30,570 $ 14,931 $ 296,350 $ (348,941 ) $ 273,413 (1) Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. (2) Includes Parent Guarantor and Subsidiary Issuer consolidating adjustments. Condensed Consolidating Statement of Cash Flows for the six months ended June 30, 2018 RenaissanceRe RenRe North RenaissanceRe Finance, Inc. (Subsidiary Issuer) Other RenaissanceRe Consolidated Cash flows (used in) provided by operating activities Net cash (used in) provided by operating activities $ (7,183 ) $ 1,213 $ (32,605 ) $ 387,686 $ 349,111 Cash flows (used in) provided by investing activities Proceeds from sales and maturities of fixed maturity investments trading 120,555 62,334 35,946 4,594,373 4,813,208 Purchases of fixed maturity investments trading (246,764 ) (46,047 ) (16,397 ) (4,704,803 ) (5,014,011 ) Net purchases of equity investments trading — (675 ) — (33,623 ) (34,298 ) Net sales (purchases) of short term investments 56,048 (154 ) (5,001 ) (1,113,315 ) (1,062,422 ) Net purchases of other investments — — — (111,921 ) (111,921 ) Net purchases of investments in other ventures — — — (20,952 ) (20,952 ) Return of investment from investments in other ventures — — — 8,464 8,464 Dividends and return of capital from subsidiaries 278,864 — — (278,864 ) — Contributions to subsidiaries (250,238 ) (16,848 ) — 267,086 — Due (from) to subsidiary (161,104 ) 50 21,333 139,721 — Net cash (used in) provided by investing activities (202,639 ) (1,340 ) 35,881 (1,253,834 ) (1,421,932 ) Cash flows provided by financing activities Dividends paid – RenaissanceRe common shares (26,468 ) — — — (26,468 ) Dividends paid – preference shares (11,191 ) — — — (11,191 ) Issuance of preference shares, net of expenses 242,371 — — — 242,371 Net third party redeemable noncontrolling interest share transactions — — — 64,534 64,534 Taxes paid on withholding shares (7,044 ) — — — (7,044 ) Net cash provided by financing activities 197,668 — — 64,534 262,202 Effect of exchange rate changes on foreign currency cash — — — (2,501 ) (2,501 ) Net (decrease) increase in cash and cash equivalents (12,154 ) (127 ) 3,276 (804,115 ) (813,120 ) Cash and cash equivalents, beginning of period 14,656 139 1,469 1,345,328 1,361,592 Cash and cash equivalents, end of period $ 2,502 $ 12 $ 4,745 $ 541,213 $ 548,472 (1) Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. Condensed Consolidating Statement of Cash Flows for the six months ended June 30, 2017 RenaissanceRe RenRe North Inc. Platinum Underwriters Finance, Inc. (Subsidiary Issuer) RenaissanceRe Finance, Inc. (Subsidiary Issuer) Other RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) RenaissanceRe Consolidated Cash flows (used in) provided by operating activities Net cash (used in) provided by operating activities $ (11,924 ) $ (8,931 ) $ (5,017 ) $ (27,713 ) $ 374,608 $ 321,023 Cash flows provided by (used in) investing activities Proceeds from sales and maturities of fixed maturity investments trading 53,654 46,475 289,741 15,449 4,758,653 5,163,972 Purchases of fixed maturity investments trading (105,523 ) (45,174 ) (143,991 ) (265,787 ) (4,890,887 ) (5,451,362 ) Net (purchases) sales of equity investments trading — (89 ) 85,324 — (38,930 ) 46,305 Net sales (purchases) of short term investments 298,768 (1,351 ) 41,299 (28,934 ) (33,707 ) 276,075 Net sales of other investments — — — — 2,551 2,551 Return of investment from investment in other ventures — — — — 20,000 20,000 Dividends and return of capital from subsidiaries 167,111 9,175 — 17,975 (194,261 ) — Contributions to subsidiaries (200,000 ) — — (9,175 ) 209,175 — Due (from) to subsidiaries (12,477 ) 9 (41 ) 1,278 11,231 — Net cash provided by (used in) investing activities 201,533 9,045 272,332 (269,194 ) (156,175 ) 57,541 Cash flows used in financing activities Dividends paid – RenaissanceRe common shares (25,877 ) — — — — (25,877 ) Dividends paid – preference shares (11,191 ) — — — — (11,191 ) RenaissanceRe common share repurchases (145,940 ) — — — — (145,940 ) Net repayment of debt — — (250,000 ) — — (250,000 ) Net issuance of debt — — — 295,866 — 295,866 Net third party redeemable noncontrolling interest share transactions — — — — (33,655 ) (33,655 ) Taxes paid on withholding shares (11,251 ) — — — — (11,251 ) Net cash used in financing activities (194,259 ) — (250,000 ) 295,866 (33,655 ) (182,048 ) Effect of exchange rate changes on foreign currency cash — — — — 5,477 5,477 Net (decrease) increase in cash and cash equivalents (4,650 ) 114 17,315 (1,041 ) 190,255 201,993 Cash and cash equivalents, beginning of period 7,067 162 6,671 9,397 397,860 421,157 Cash and cash equivalents, end of period $ 2,417 $ 276 $ 23,986 $ 8,356 $ 588,115 $ 623,150 (1) Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. |
Significant Accounting Polici23
Significant Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION These consolidated financial statements have been prepared on the basis of accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in conformity with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, these unaudited consolidated financial statements reflect all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the Company’s financial position and results of operations as at the end of and for the periods presented. All significant intercompany accounts and transactions have been eliminated from these statements. Certain comparative information has been reclassified to conform to the current presentation. Because of the seasonality of the Company’s business, the results of operations and cash flows for any interim period will not necessarily be indicative of the results of operations and cash flows for the full fiscal year or subsequent quarters. |
Use of Estimates in Financial Statements | USE OF ESTIMATES IN FINANCIAL STATEMENTS The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported and disclosed amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. The major estimates reflected in the Company’s consolidated financial statements include, but are not limited to, the reserve for claims and claim expenses; reinsurance recoverables, including allowances for reinsurance recoverables deemed uncollectible; estimates of written and earned premiums; fair value, including the fair value of investments, financial instruments and derivatives; impairment charges; and the Company’s deferred tax valuation allowance. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted | RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS Revenue from Contracts with Customers In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 provides comprehensive guidance on the recognition of revenue from customers arising from the transfer of goods and services. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also provides guidance on accounting for certain contract costs and will also require new disclosures. ASU 2014-09 was to be effective for public business entities in annual and interim periods beginning after December 15, 2016, however in July 2015, the FASB decided to defer by one year the effective dates of ASU 2014-09, and as a result, ASU 2014-09 is effective for public business entities in annual and interim periods beginning after December 15, 2017. ASU 2014-09 notably excludes the accounting for insurance contracts, leases, financial instruments and guarantees. The Company’s implementation efforts primarily focused on other income and operational expenses on its consolidated statements of operations. The adoption of ASU 2014-09 did not have a material impact on the Company’s consolidated statements of operations and financial position. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting or those that result in the consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, simplifies the impairment assessment of equity investments without readily determinable values by requiring a qualitative assessment to identify impairment, eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost, requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation in other comprehensive income of the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the organization has elected to measure the liabilities in accordance with the fair value option, requires the separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and clarifies that the reporting organization should evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the organization’s other deferred tax assets. ASU 2016-01 is effective for public business entities in annual and interim periods beginning after December 15, 2017. The adoption of ASU 2016-01 did not have a material impact on the Company’s consolidated statements of operations and financial position. Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 clarifies the classification of receipts and payments in the statement of cash flows. ASU 2016-15 provides guidance related to (1) settlement and payment of zero coupon debt instruments, (2) contingent consideration, (3) proceeds from settlement of insurance claims, (4) proceeds from settlement of corporate and bank owned life insurance policies, (5) distributions from equity method investees, (6) cash receipts from beneficial interests obtained by a transferor, and (7) general guidelines for cash receipts and payments that have more than one aspect of classification. ASU 2016-15 is effective for public business entities for annual periods beginning after December 15, 2017, and interim periods within those fiscal years. The adoption of ASU 2016-15 resulted in the reclassification of $20.0 million of cash inflows from cash flows provided by operating activities, to cash flows used in investing activities for the six months ended June 30, 2017 . This amount related to a return of investment associated with the Company’s investment in Top Layer Reinsurance Ltd, recorded under the equity method of accounting. Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 was issued to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and the classification of taxes paid on the statements of cash flows. ASU 2016-09 became effective for the Company in annual and interim periods beginning after December 15, 2016. The cumulative effect of the adoption of ASU 2016-09 was a $2.2 million increase to opening retained earnings as of January 1, 2017. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). ASU 2016-02 requires lessees to recognize lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous guidance. ASU 2016-02 is effective for public business entities for annual and interim periods beginning after December 15, 2018. Early application is permitted. The Company is currently evaluating the impact of this guidance; however, it is not expected to have a material impact on the Company’s consolidated statements of operations and financial position. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 modifies the recognition of credit losses by replacing the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 is applicable to financial assets such as loans, debt securities, trade receivables, off-balance sheet credit exposures, reinsurance receivables, and other financial assets that have the contractual right to receive cash. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. The Company's invested assets are measured at fair value through net income, and therefore those invested assets would not be impacted by the adoption of ASU 2016-13. The Company has other financial assets, such as reinsurance recoverables, that could be impacted by the adoption of ASU 2016-13. ASU 2016-13 is effective for public business entities that are SEC filers for annual and interim periods beginning after December 15, 2019. The Company is currently evaluating the impact of this guidance; however, it is not expected to have a material impact on the Company’s consolidated statements of operations and financial position. Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB issued ASU No. 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”). ASU 2016-16 requires entities to recognize the income tax consequences of intra-entity transfers of assets other than inventory when the transfers occur; this is a change from current guidance which prohibits the recognition of current and deferred income taxes until the underlying assets have been sold to outside entities. ASU 2016-16 is effective for public business entities for annual and interim periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of this guidance; however, it is not expected to have a material impact on the Company’s consolidated statements of operations and financial position. Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). Among other things, ASU 2017-04 requires the following: (1) the elimination of step two of the goodwill impairment test; entities will no longer utilize the implied fair value of their assets and liabilities for purposes of testing goodwill for impairment, (2) the quantitative portion of the goodwill impairment test will be performed by comparing the fair value of a reporting unit with its carrying amount; an impairment charge is to be recognized for the excess of carrying amount over fair value, but only to the extent of the amount of goodwill allocated to that reporting unit, and (3) foreign currency translation adjustments are not to be allocated to a reporting unit from an entity’s accumulated other comprehensive income; the reporting unit’s carrying amount should include only the currently translated balances of the assets and liabilities assigned to the reporting unit. ASU 2017-04 is effective for public business entities that are SEC filers for annual periods, or any interim goodwill impairment tests in annual periods, beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact of this guidance; however, it is not expected to have a material impact on the Company’s consolidated statements of operations and financial position. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments [Abstract] | |
Schedule of Fair Value of Fixed Maturity Investments Trading | The following table summarizes the fair value of fixed maturity investments trading: June 30, December 31, U.S. treasuries $ 2,968,855 $ 3,168,763 Agencies 55,199 47,646 Municipal 6,164 509,802 Non-U.S. government (Sovereign debt) 298,811 287,660 Non-U.S. government-backed corporate 185,640 163,651 Corporate 2,280,080 2,063,459 Agency mortgage-backed 762,077 500,456 Non-agency mortgage-backed 300,311 300,331 Commercial mortgage-backed 248,590 202,062 Asset-backed 315,051 182,725 Total fixed maturity investments trading $ 7,420,778 $ 7,426,555 |
Schedule of Contractual Maturities of Fixed Maturity Investments | Contractual maturities of fixed maturity investments trading are described in the following table. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2018 Amortized Cost Fair Value Due in less than one year $ 385,371 $ 383,353 Due after one through five years 4,482,713 4,421,536 Due after five through ten years 917,280 904,070 Due after ten years 88,229 85,790 Mortgage-backed 1,310,933 1,310,978 Asset-backed 315,471 315,051 Total $ 7,499,997 $ 7,420,778 |
Schedule of Fair Value of Equity Investments Trading | The following table summarizes the fair value of equity investments trading: June 30, December 31, Financials $ 293,779 $ 253,543 Communications and technology 55,100 49,526 Industrial, utilities and energy 33,097 34,325 Consumer 24,678 24,779 Healthcare 21,960 21,364 Basic materials 4,190 4,717 Total $ 432,804 $ 388,254 |
Schedule of Net Investment Income | The components of net investment income are as follows: Three months ended Six months ended June 30, June 30, June 30, June 30, Fixed maturity investments $ 50,416 $ 44,356 $ 96,059 $ 87,775 Short term investments 7,633 2,981 12,937 4,705 Equity investments 1,490 889 2,188 1,700 Other investments Private equity investments 3,860 6,611 3,426 14,413 Other 10,658 2,899 18,681 6,971 Cash and cash equivalents 1,039 295 1,604 484 75,096 58,031 134,895 116,048 Investment expenses (3,740 ) (3,868 ) (7,063 ) (7,560 ) Net investment income $ 71,356 $ 54,163 $ 127,832 $ 108,488 |
Schedule of Net Realized and Unrealized (Losses) Gains on Investments | Net realized and unrealized (losses) gains on investments are as follows: Three months ended Six months ended June 30, June 30, June 30, June 30, Gross realized gains $ 5,133 $ 15,249 $ 9,716 $ 26,710 Gross realized losses (26,519 ) (7,243 ) (52,372 ) (23,776 ) Net realized (losses) gains on fixed maturity investments (21,386 ) 8,006 (42,656 ) 2,934 Net unrealized (losses) gains on fixed maturity investments trading (9,420 ) 18,760 (64,792 ) 43,395 Net realized and unrealized gains (losses) on investments-related derivatives 1,038 (268 ) (3,326 ) (324 ) Net realized gains on equity investments trading sold during the period 348 15,146 582 36,061 Net unrealized gains on equity investments trading still held at reporting date 11,519 16,469 10,147 19,420 Net realized and unrealized gains on equity investments trading 11,867 31,615 10,729 55,481 Net realized and unrealized (losses) gains on investments $ (17,901 ) $ 58,113 $ (100,045 ) $ 101,486 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Below is a summary of the assets and liabilities that are measured at fair value on a recurring basis and also represents the carrying amount on the Company’s consolidated balance sheets: At June 30, 2018 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fixed maturity investments U.S. treasuries $ 2,968,855 $ 2,968,855 $ — $ — Agencies 55,199 — 55,199 — Municipal 6,164 — 6,164 — Non-U.S. government (Sovereign debt) 298,811 — 298,811 — Non-U.S. government-backed corporate 185,640 — 185,640 — Corporate 2,280,080 — 2,280,080 — Agency mortgage-backed 762,077 — 762,077 — Non-agency mortgage-backed 300,311 — 300,311 — Commercial mortgage-backed 248,590 — 248,590 — Asset-backed 315,051 — 315,051 — Total fixed maturity investments 7,420,778 2,968,855 4,451,923 — Short term investments 2,031,943 — 2,031,943 — Equity investments trading 432,804 432,804 — — Other investments Catastrophe bonds 501,025 — 501,025 — Private equity partnerships (1) 186,200 — — — Senior secured bank loan funds (1) 14,414 — — — Hedge funds (1) 11,561 — — — Total other investments 713,200 — 501,025 — Other assets and (liabilities) Assumed and ceded (re)insurance contracts (2) (2,018 ) — — (2,018 ) Derivatives (3) (2,161 ) (95 ) (2,066 ) — Total other assets and (liabilities) (4,179 ) (95 ) (2,066 ) (2,018 ) $ 10,594,546 $ 3,401,564 $ 6,982,825 $ (2,018 ) (1) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. (2) Included in assumed and ceded (re)insurance contracts at June 30, 2018 was $2.5 million and $4.5 million of other assets and other liabilities, respectively. (3) See “Note 13 . Derivative Instruments” for additional information related to the fair value by type of contract, of derivatives entered into by the Company. At December 31, 2017 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fixed maturity investments U.S. treasuries $ 3,168,763 $ 3,168,763 $ — $ — Agencies 47,646 — 47,646 — Municipal 509,802 — 509,802 — Non-U.S. government (Sovereign debt) 287,660 — 287,660 — Non-U.S. government-backed corporate 163,651 — 163,651 — Corporate 2,063,459 — 2,063,459 — Agency mortgage-backed 500,456 — 500,456 — Non-agency mortgage-backed 300,331 — 300,331 — Commercial mortgage-backed 202,062 — 202,062 — Asset-backed 182,725 — 182,725 — Total fixed maturity investments 7,426,555 3,168,763 4,257,792 — Short term investments 991,863 — 991,863 — Equity investments trading 388,254 388,254 — — Other investments Catastrophe bonds 380,475 — 380,475 — Private equity partnerships (1) 196,220 — — — Senior secured bank loan funds (1) 17,574 — — — Hedge funds (1) 524 — — — Total other investments 594,793 — 380,475 — Other assets and (liabilities) Assumed and ceded (re)insurance contracts (2) (2,952 ) — — (2,952 ) Derivatives (3) 4,636 (45 ) 4,681 — Total other assets and (liabilities) 1,684 (45 ) 4,681 (2,952 ) $ 9,403,149 $ 3,556,972 $ 5,634,811 $ (2,952 ) (1) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. (2) Included in assumed and ceded (re)insurance contracts at December 31, 2017 was $2.5 million and $5.5 million of other assets and other liabilities, respectively. (3) See “Note 13 . Derivative Instruments” for additional information related to the fair value by type of contract, of derivatives entered into by the Company. |
Schedule of Quantitative Information Used as Level 3 Inputs | Below is a summary of quantitative information regarding the significant observable and unobservable inputs (Level 3) used in determining the fair value of assets and liabilities measured at fair value on a recurring basis: At June 30, 2018 Fair Value (Level 3) Valuation Technique Unobservable (U) and Observable (O) Inputs Low High Weighted Average or Actual Other assets and (liabilities) Assumed and ceded (re)insurance contracts $ 935 Internal valuation model Bond price (O) $ 101.38 $ 110.93 $ 106.64 Liquidity discount (U) n/a n/a 1.3 % Assumed and ceded (re)insurance contracts (2,953 ) Internal valuation model Net undiscounted cash flows (U) n/a n/a $ 4,815 Expected loss ratio (U) n/a n/a 18.7 % Net acquisition expense ratio (O) n/a n/a 13.8 % Contract period (O) 2.0 years 4.7 years 4.1 years Discount rate (U) n/a n/a 2.7 % Total other assets and (liabilities) $ (2,018 ) |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Level 3 Inputs | Below is a reconciliation of the beginning and ending balances, for the periods shown, of assets and liabilities measured at fair value on a recurring basis using Level 3 inputs. Interest and dividend income are included in net investment income and are excluded from the reconciliation. Other assets and (liabilities) Balance - January 1, 2018 $ (2,952 ) Total realized and unrealized gains Included in other income (loss) 645 Purchases 289 Balance - June 30, 2018 $ (2,018 ) Other assets and (liabilities) Balance - January 1, 2017 $ (13,004 ) Total realized and unrealized gains Included in other income (loss) 3,390 Purchases 112 Balance - June 30, 2017 $ (9,502 ) |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Level 3 Inputs | Below is a reconciliation of the beginning and ending balances, for the periods shown, of assets and liabilities measured at fair value on a recurring basis using Level 3 inputs. Interest and dividend income are included in net investment income and are excluded from the reconciliation. Other assets and (liabilities) Balance - January 1, 2018 $ (2,952 ) Total realized and unrealized gains Included in other income (loss) 645 Purchases 289 Balance - June 30, 2018 $ (2,018 ) Other assets and (liabilities) Balance - January 1, 2017 $ (13,004 ) Total realized and unrealized gains Included in other income (loss) 3,390 Purchases 112 Balance - June 30, 2017 $ (9,502 ) |
Schedule of Balances Elected to Account for at Fair Value | Below is a summary of the balances the Company has elected to account for at fair value: June 30, December 31, Other investments $ 713,200 $ 594,793 Other assets $ 2,488 $ 2,542 Other liabilities $ 4,506 $ 5,494 |
Schedule of Other Investments Measured Using Net Asset Valuations | The table below shows the Company’s portfolio of other investments measured using net asset valuations as a practical expedient: At June 30, 2018 Fair Value Unfunded Redemption Frequency Redemption Redemption Private equity partnerships $ 186,200 $ 421,299 See below See below See below Senior secured bank loan funds 14,414 23,811 See below See below See below Hedge funds 11,561 — See below See below See below Total other investments measured using net asset valuations $ 212,175 $ 445,110 |
Reinsurance (Tables)
Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |
Effect of Reinsurance and Retrocessional Activity on Premiums Written and Earned and on Net Claims and Claim Expenses Incurred | The following table sets forth the effect of reinsurance and retrocessional activity on premiums written and earned and on net claims and claim expenses incurred: Three months ended Six months ended June 30, June 30, June 30, June 30, Premiums written Direct $ 90,573 $ 67,805 $ 175,740 $ 141,213 Assumed 886,770 759,610 1,961,255 1,608,292 Ceded (372,834 ) (271,670 ) (869,442 ) (649,624 ) Net premiums written $ 604,509 $ 555,745 $ 1,267,553 $ 1,099,881 Premiums earned Direct $ 69,904 $ 56,357 $ 139,936 $ 114,525 Assumed 601,735 520,347 1,207,218 1,019,346 Ceded (242,254 ) (194,439 ) (477,487 ) (385,561 ) Net premiums earned $ 429,385 $ 382,265 $ 869,667 $ 748,310 Claims and claim expenses Gross claims and claim expenses incurred $ 76,945 $ 189,903 $ 302,687 $ 441,707 Claims and claim expenses recovered (16,778 ) (47,316 ) (70,817 ) (106,039 ) Net claims and claim expenses incurred $ 60,167 $ 142,587 $ 231,870 $ 335,668 |
Reserve for Claims and Claim 27
Reserve for Claims and Claim Expenses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Insurance Loss Reserves [Abstract] | |
Schedule of Liability for Unpaid Claims and Claim Expenses | The following table details the development of the Company’s liability for unpaid claims and claim expenses for its Casualty and Specialty segment: Six months ended June 30, 2018 2017 (Favorable) adverse development (Favorable) adverse development Actuarial methods $ (9,001 ) $ (21,762 ) Ogden Rate change — 33,481 Actuarial assumption changes (7,786 ) (2,462 ) Total (favorable) adverse development of prior accident years net claims and claim expenses $ (16,787 ) $ 9,257 The following table summarizes the Company’s claims and claim expense reserves by segment, allocated between case reserves, additional case reserves and IBNR: At June 30, 2018 Case Reserves Additional Case Reserves IBNR Total Property $ 631,642 $ 766,450 $ 568,642 $ 1,966,734 Casualty and Specialty 750,149 105,066 1,871,468 2,726,683 Other 4,433 — 4,495 8,928 Total $ 1,386,224 $ 871,516 $ 2,444,605 $ 4,702,345 At December 31, 2017 Property $ 696,285 $ 896,522 $ 893,583 $ 2,486,390 Casualty and Specialty 689,962 124,923 1,760,607 2,575,492 Other 6,605 — 11,921 18,526 Total $ 1,392,852 $ 1,021,445 $ 2,666,111 $ 5,080,408 Activity in the liability for unpaid claims and claim expenses is summarized as follows: Six months ended June 30, 2018 2017 Net reserves as of January 1 $ 3,493,778 $ 2,568,730 Net incurred related to: Current year 419,434 351,766 Prior years (187,564 ) (16,098 ) Total net incurred 231,870 335,668 Net paid related to: Current year 23,902 19,885 Prior years 445,790 285,046 Total net paid 469,692 304,931 Foreign exchange (8,602 ) 19,753 Net reserves as of June 30 3,247,354 2,619,220 Reinsurance recoverable as of June 30 1,454,991 370,586 Gross reserves as of June 30 $ 4,702,345 $ 2,989,806 The following tables detail the development of the Company’s liability for unpaid claims and claim expenses for its Property segment, allocated between large and small catastrophe net claims and claim expenses and attritional net claims and claim expenses, included in the other line item: Six months ended June 30, 2018 (Favorable) adverse development Catastrophe net claims and claim expenses Large catastrophe events 2017 Catastrophe Events $ (156,213 ) Total large catastrophe events (156,213 ) Small catastrophe events Other 23,453 Total small catastrophe events 23,453 Total catastrophe net claims and claim expenses (132,760 ) Attritional net claims and claim expenses Actuarial methods - actual reported claims less than expected claims (32,265 ) Actuarial assumption changes (5,682 ) Total attritional net claims and claim expenses (37,947 ) Total net favorable development of prior accident years net claims and claim expenses $ (170,707 ) The following table details the Company’s prior year development by segment of its liability for unpaid claims and claim expenses: Six months ended June 30, 2018 2017 (Favorable) adverse development (Favorable) adverse development Property $ (170,707 ) $ (24,800 ) Casualty and Specialty (16,787 ) 9,257 Other (70 ) (555 ) Total favorable development of prior accident years net claims and claim expenses $ (187,564 ) $ (16,098 ) Six months ended June 30, 2017 (Favorable) adverse development Catastrophe net claims and claim expenses Large catastrophe events New Zealand Earthquake (2011) $ 5,807 New Zealand Earthquake (2010) 4,061 April and May U.S. Tornadoes (2011) (4,153 ) Other (3,864 ) Total large catastrophe events 1,851 Small catastrophe events Fort McMurray Wildfire (2016) (5,848 ) Tianjin Explosion (2015) (4,896 ) U.S. PCS 13/14 Wind and Thunderstorm (2013) (3,906 ) Other (12,844 ) Total small catastrophe events (27,494 ) Total catastrophe net claims and claim expenses (25,643 ) Actuarial assumption changes 843 Total net favorable development of prior accident years net claims and claim expenses $ (24,800 ) |
Debt and Credit Facilities (Tab
Debt and Credit Facilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | A summary of the Company’s debt obligations on its consolidated balance sheets is set forth below: June 30, 2018 December 31, 2017 Fair Value Carrying Value Fair Value Carrying Value 3.450% Senior Notes due 2027 $ 283,725 $ 295,549 $ 294,654 $ 295,303 3.700% Senior Notes due 2025 294,573 297,501 302,781 297,318 5.750% Senior Notes due 2020 258,750 249,436 263,750 249,272 4.750% Senior Notes due 2025 (DaVinciRe) (1) 150,387 147,885 157,050 147,730 $ 987,435 $ 990,371 $ 1,018,235 $ 989,623 (1) RenaissanceRe owns a noncontrolling economic interest in its joint venture DaVinciRe. Because RenaissanceRe controls a majority of DaVinciRe’s outstanding voting rights, the consolidated financial statements of DaVinciRe are included in the consolidated financial statements of RenaissanceRe. However, RenaissanceRe does not guarantee or provide credit support for DaVinciRe and RenaissanceRe’s financial exposure to DaVinciRe is limited to its investment in DaVinciRe’s shares and counterparty credit risk arising from reinsurance transactions. |
Schedule of Line of Credit Facilities | The outstanding amounts issued or drawn under each of the Company’s significant credit facilities is set forth below: At June 30, 2018 Issued or Drawn RenaissanceRe Revolving Credit Facility (1) $ — Uncommitted Standby Letter of Credit Facility with Wells Fargo 93,475 Bilateral Letter of Credit Facility with Citibank Europe 180,779 Renaissance Reinsurance FAL Facility 180,000 Total credit facilities in U.S. dollars $ 454,254 Specialty Risks FAL Facility (1) £ — Total credit facilities in pound sterling £ — (1) At June 30, 2018, no amounts were issued or drawn under these facilities. |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest [Abstract] | |
Schedule of Redeemable Noncontrolling Interest | The activity in redeemable noncontrolling interest – Medici is detailed in the table below: Three months ended Six months ended June 30, June 30, June 30, June 30, Beginning balance $ 392,821 $ 201,345 $ 284,847 $ 181,136 Redemption of shares from redeemable noncontrolling interest, net of adjustments (42,792 ) (15,285 ) (43,503 ) (25,910 ) Sale of shares to redeemable noncontrolling interests 56,743 34,925 156,482 63,341 Net income attributable to redeemable noncontrolling interest 4,231 1,180 13,177 3,598 Ending balance $ 411,003 $ 222,165 $ 411,003 $ 222,165 The activity in redeemable noncontrolling interest – DaVinciRe is detailed in the table below: Three months ended Six months ended June 30, June 30, June 30, June 30, Beginning balance $ 1,032,543 $ 986,646 $ 1,011,659 $ 994,458 Redemption of shares from redeemable noncontrolling interest, net of adjustments (370 ) (3,160 ) (439 ) (66,802 ) Sale of shares to redeemable noncontrolling interests — — — 23,921 Net income attributable to redeemable noncontrolling interest 50,252 36,432 71,205 68,341 Ending balance $ 1,082,425 $ 1,019,918 $ 1,082,425 $ 1,019,918 A summary of the Company’s redeemable noncontrolling interests on its consolidated balance sheets is set forth below: June 30, December 31, 2017 Redeemable noncontrolling interest - DaVinciRe $ 1,082,425 $ 1,011,659 Redeemable noncontrolling interest - Medici 411,003 284,847 Redeemable noncontrolling interests $ 1,493,428 $ 1,296,506 A summary of the Company’s redeemable noncontrolling interests on its consolidated statements of operations is set forth below: Three months ended Six months ended June 30, June 30, June 30, June 30, Redeemable noncontrolling interest - DaVinciRe $ 50,252 $ 36,432 $ 71,205 $ 68,341 Redeemable noncontrolling interest - Medici 4,231 1,180 13,177 3,598 Net income attributable to redeemable noncontrolling interests $ 54,483 $ 37,612 $ 84,382 $ 71,939 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Common Share | The following table sets forth the computation of basic and diluted earnings per common share: Three months ended Six months ended (common shares in thousands) June 30, June 30, June 30, June 30, Numerator: Net income available to RenaissanceRe common shareholders $ 191,788 $ 171,142 $ 248,501 $ 263,494 Amount allocated to participating common shareholders (1) (2,174 ) (1,585 ) (2,583 ) (2,526 ) Net income allocated to RenaissanceRe common shareholders $ 189,614 $ 169,557 $ 245,918 $ 260,968 Denominator: Denominator for basic income per RenaissanceRe common share - weighted average common shares 39,641 39,937 39,597 40,172 Per common share equivalents of employee stock options and restricted shares 13 87 25 152 Denominator for diluted income per RenaissanceRe common share - adjusted weighted average common shares and assumed conversions 39,654 40,024 39,622 40,324 Net income available to RenaissanceRe common shareholders per common share – basic $ 4.78 $ 4.25 $ 6.21 $ 6.50 Net income available to RenaissanceRe common shareholders per common share – diluted $ 4.78 $ 4.24 $ 6.21 $ 6.47 (1) Represents earnings attributable to holders of unvested restricted shares issued pursuant to 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. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Schedule of Significant Components of the Company's Revenues and Expenses by Segment | A summary of the significant components of the Company’s revenues and expenses by segment is as follows: Three months ended June 30, 2018 Property Casualty and Specialty Other Total Gross premiums written $ 552,627 $ 424,716 $ — $ 977,343 Net premiums written $ 297,832 $ 306,677 $ — $ 604,509 Net premiums earned $ 204,138 $ 225,247 $ — $ 429,385 Net claims and claim expenses incurred (74,269 ) 134,524 (88 ) 60,167 Acquisition expenses 40,850 64,201 1 105,052 Operational expenses 23,810 13,552 181 37,543 Underwriting income (loss) $ 213,747 $ 12,970 $ (94 ) 226,623 Net investment income 71,356 71,356 Net foreign exchange losses (10,687 ) (10,687 ) Equity in earnings of other ventures 5,826 5,826 Other income 1,225 1,225 Net realized and unrealized losses on investments (17,901 ) (17,901 ) Corporate expenses (8,301 ) (8,301 ) Interest expense (11,768 ) (11,768 ) Income before taxes 256,373 Income tax expense (4,506 ) (4,506 ) Net income attributable to redeemable noncontrolling interests (54,483 ) (54,483 ) Dividends on preference shares (5,596 ) (5,596 ) Net income available to RenaissanceRe common shareholders $ 191,788 Net claims and claim expenses incurred – current accident year $ 68,876 $ 147,520 $ — $ 216,396 Net claims and claim expenses incurred – prior accident years (143,145 ) (12,996 ) (88 ) (156,229 ) Net claims and claim expenses incurred – total $ (74,269 ) $ 134,524 $ (88 ) $ 60,167 Net claims and claim expense ratio – current accident year 33.7 % 65.5 % 50.4 % Net claims and claim expense ratio – prior accident years (70.1 )% (5.8 )% (36.4 )% Net claims and claim expense ratio – calendar year (36.4 )% 59.7 % 14.0 % Underwriting expense ratio 31.7 % 34.5 % 33.2 % Combined ratio (4.7 )% 94.2 % 47.2 % Six months ended June 30, 2018 Property Casualty and Specialty Other Total Gross premiums written $ 1,259,595 $ 877,400 $ — $ 2,136,995 Net premiums written $ 651,909 $ 615,644 $ — $ 1,267,553 Net premiums earned $ 429,187 $ 440,480 $ — $ 869,667 Net claims and claim expenses incurred (43,662 ) 275,602 (70 ) 231,870 Acquisition expenses 81,571 121,191 1 202,763 Operational expenses 50,356 28,145 314 78,815 Underwriting income (loss) $ 340,922 $ 15,542 $ (245 ) 356,219 Net investment income 127,832 127,832 Net foreign exchange losses (6,930 ) (6,930 ) Equity in earnings of other ventures 6,683 6,683 Other loss (17 ) (17 ) Net realized and unrealized losses on investments (100,045 ) (100,045 ) Corporate expenses (15,034 ) (15,034 ) Interest expense (23,535 ) (23,535 ) Income before taxes 345,173 Income tax expense (1,099 ) (1,099 ) Net income attributable to redeemable noncontrolling interests (84,382 ) (84,382 ) Dividends on preference shares (11,191 ) (11,191 ) Net income available to RenaissanceRe common shareholders $ 248,501 Net claims and claim expenses incurred – current accident year $ 127,045 $ 292,389 $ — $ 419,434 Net claims and claim expenses incurred – prior accident years (170,707 ) (16,787 ) (70 ) (187,564 ) Net claims and claim expenses incurred – total $ (43,662 ) $ 275,602 $ (70 ) $ 231,870 Net claims and claim expense ratio – current accident year 29.6 % 66.4 % 48.2 % Net claims and claim expense ratio – prior accident years (39.8 )% (3.8 )% (21.5 )% Net claims and claim expense ratio – calendar year (10.2 )% 62.6 % 26.7 % Underwriting expense ratio 30.8 % 33.9 % 32.3 % Combined ratio 20.6 % 96.5 % 59.0 % Three months ended June 30, 2017 Property Casualty and Specialty Other Total Gross premiums written $ 499,347 $ 328,068 $ — $ 827,415 Net premiums written $ 336,464 $ 219,281 $ — $ 555,745 Net premiums earned $ 192,198 $ 190,065 $ 2 $ 382,265 Net claims and claim expenses incurred 33,017 109,797 (227 ) 142,587 Acquisition expenses 28,500 59,752 (1 ) 88,251 Operational expenses 24,053 17,712 1 41,766 Underwriting income $ 106,628 $ 2,804 $ 229 109,661 Net investment income 54,163 54,163 Net foreign exchange gains 3,109 3,109 Equity in earnings of other ventures 5,543 5,543 Other income 2,392 2,392 Net realized and unrealized gains on investments 58,113 58,113 Corporate expenses (4,636 ) (4,636 ) Interest expense (10,091 ) (10,091 ) Income before taxes and noncontrolling interests 218,254 Income tax expense (3,904 ) (3,904 ) Net income attributable to noncontrolling interests (37,612 ) (37,612 ) Dividends on preference shares (5,596 ) (5,596 ) Net income available to RenaissanceRe common shareholders $ 171,142 Net claims and claim expenses incurred – current accident year $ 56,889 $ 130,802 $ — $ 187,691 Net claims and claim expenses incurred – prior accident years (23,872 ) (21,005 ) (227 ) (45,104 ) Net claims and claim expenses incurred – total $ 33,017 $ 109,797 $ (227 ) $ 142,587 Net claims and claim expense ratio – current accident year 29.6 % 68.8 % 49.1 % Net claims and claim expense ratio – prior accident years (12.4 )% (11.0 )% (11.8 )% Net claims and claim expense ratio – calendar year 17.2 % 57.8 % 37.3 % Underwriting expense ratio 27.3 % 40.7 % 34.0 % Combined ratio 44.5 % 98.5 % 71.3 % Six months ended June 30, 2017 Property Casualty and Specialty Other Total Gross premiums written $ 1,019,876 $ 729,629 $ — $ 1,749,505 Net premiums written $ 626,335 $ 473,546 $ — $ 1,099,881 Net premiums earned $ 379,186 $ 369,124 $ — $ 748,310 Net claims and claim expenses incurred 71,855 264,368 (555 ) 335,668 Acquisition expenses 57,603 113,931 (1 ) 171,533 Operational expenses 51,718 37,319 12 89,049 Underwriting income (loss) $ 198,010 $ (46,494 ) $ 544 152,060 Net investment income 108,488 108,488 Net foreign exchange gains 11,274 11,274 Equity in losses of other ventures 4,036 4,036 Other income 4,057 4,057 Net realized and unrealized gains on investments 101,486 101,486 Corporate expenses (9,922 ) (9,922 ) Interest expense (20,617 ) (20,617 ) Income before taxes and noncontrolling interests 350,862 Income tax expense (4,238 ) (4,238 ) Net income attributable to noncontrolling interests (71,939 ) (71,939 ) Dividends on preference shares (11,191 ) (11,191 ) Net income available to RenaissanceRe common shareholders $ 263,494 Net claims and claim expenses incurred – current accident year $ 96,655 $ 255,111 $ — $ 351,766 Net claims and claim expenses incurred – prior accident years (24,800 ) 9,257 (555 ) (16,098 ) Net claims and claim expenses incurred – total $ 71,855 $ 264,368 $ (555 ) $ 335,668 Net claims and claim expense ratio – current accident year 25.5 % 69.1 % 47.0 % Net claims and claim expense ratio – prior accident years (6.6 )% 2.5 % (2.1 )% Net claims and claim expense ratio – calendar year 18.9 % 71.6 % 44.9 % Underwriting expense ratio 28.9 % 41.0 % 34.8 % Combined ratio 47.8 % 112.6 % 79.7 % |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Summary of Derivative Instruments [Abstract] | |
Schedule of Location on Consolidated Balance Sheets and Fair Value of Principal Derivative Instruments | The tables below show the gross and net amounts of recognized derivative assets and liabilities at fair value, including the location on the consolidated balance sheets of the Company’s principal derivative instruments: Derivative Assets At June 30, 2018 Gross Amounts of Recognized Assets Gross Amounts Offset in the Balance Sheet Net Amounts of Assets Presented in the Balance Sheet Balance Sheet Location Collateral Net Amount Interest rate futures $ 81 81 $ — Other assets $ — $ — Interest rate swaps 573 — 573 Other assets — 573 Foreign currency forward contracts (1) 6,687 — 6,687 Other assets — 6,687 Foreign currency forward contracts (2) 1,759 5 1,754 Other assets — 1,754 Credit default swaps 462 — 462 Other assets — 462 Total $ 9,562 $ 86 $ 9,476 $ — $ 9,476 Derivative Liabilities At June 30, 2018 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Balance Sheet Net Amounts of Liabilities Presented in the Balance Sheet Balance Sheet Location Collateral Pledged Net Amount Interest rate futures $ 176 81 $ 95 Other liabilities $ 95 $ — Foreign currency forward contracts (1) 13,100 2,146 10,954 Other liabilities — 10,954 Foreign currency forward contracts (2) 593 5 588 Other liabilities — 588 Total $ 13,869 $ 2,232 $ 11,637 $ 95 $ 11,542 (1) Contracts used to manage foreign currency risks in underwriting and non-investment operations. (2) Contracts used to manage foreign currency risks in investment operations. Derivative Assets At December 31, 2017 Gross Amounts of Recognized Assets Gross Amounts Offset in the Balance Sheet Net Amounts of Assets Presented in the Balance Sheet Balance Sheet Location Collateral Net Amount Interest rate futures $ 684 524 $ 160 Other assets $ — $ 160 Interest rate swaps 424 — 424 Other assets — 424 Foreign currency forward contracts (1) 3,865 358 3,507 Other assets — 3,507 Foreign currency forward contracts (2) 39 11 28 Other assets — 28 Credit default swaps 1,518 — 1,518 Other assets — 1,518 Total $ 6,530 $ 893 $ 5,637 $ — $ 5,637 Derivative Liabilities At December 31, 2017 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Balance Sheet Net Amounts of Liabilities Presented in the Balance Sheet Balance Sheet Location Collateral Pledged Net Amount Interest rate futures $ 729 524 $ 205 Other liabilities $ 205 $ — Foreign currency forward contracts (1) 670 — 670 Other liabilities — 670 Foreign currency forward contracts (2) 115 11 104 Other liabilities — 104 Credit default swaps 22 — 22 Other liabilities 22 — Total $ 1,536 $ 535 $ 1,001 $ 227 $ 774 (1) Contracts used to manage foreign currency risks in underwriting and non-investment operations. (2) Contracts used to manage foreign currency risks in investment operations. |
Schedule of Gain (Loss) Recognized in Consolidated Statements of Operations Related to Principal Derivative Instruments | The location and amount of the gain (loss) recognized in the Company’s consolidated statements of operations related to its principal derivative instruments are shown in the following table: Location of gain (loss) recognized on derivatives Amount of gain (loss) recognized on derivatives Three months ended June 30, 2018 2017 Interest rate futures Net realized and unrealized (losses) gains on investments $ (87 ) $ (890 ) Interest rate swaps Net realized and unrealized (losses) gains on investments 241 — Foreign currency forward contracts (1) Net foreign exchange (losses) gains (6,374 ) 5,223 Foreign currency forward contracts (2) Net foreign exchange (losses) gains 1,343 (267 ) Credit default swaps Net realized and unrealized (losses) gains on investments 884 622 Total $ (3,993 ) $ 4,688 Location of gain (loss) recognized on derivatives Amount of gain (loss) recognized on derivatives Six months ended June 30, 2018 2017 Interest rate futures Net realized and unrealized (losses) gains on investments $ (2,424 ) $ (1,048 ) Interest rate swaps Net realized and unrealized (losses) gains on investments 135 — Foreign currency forward contracts (1) Net foreign exchange (losses) gains 369 6,283 Foreign currency forward contracts (2) Net foreign exchange (losses) gains 652 (900 ) Credit default swaps Net realized and unrealized (losses) gains on investments (1,037 ) 724 Total $ (2,305 ) $ 5,059 (1) Contracts used to manage foreign currency risks in underwriting and non-investment operations. (2) Contracts used to manage foreign currency risks in investment operations. |
Condensed Consolidating Finan33
Condensed Consolidating Financial Information Provided in Connection with Outstanding Debt of Subsidiaries (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Condensed Consolidating Financial Information Provided In Connection With Outstanding Debt Of Subsidiaries [Abstract] | |
Condensed Consolidating Balance Sheets | (1) Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. (2) Includes Parent Guarantor, Subsidiary Guarantor and Subsidiary Issuer consolidating adjustments. Condensed Consolidating Balance Sheet at December 31, 2017 RenaissanceRe Holdings Ltd. (Parent Guarantor) RenRe North RenaissanceRe Finance, Inc. (Subsidiary Issuer) Other RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) Consolidating Adjustments (2) RenaissanceRe Consolidated Assets Total investments $ 225,266 $ 129,732 $ 31,255 $ 9,117,186 $ — $ 9,503,439 Cash and cash equivalents 14,656 139 1,469 1,345,328 — 1,361,592 Investments in subsidiaries 4,105,760 36,140 1,141,733 — (5,283,633 ) — Due from subsidiaries and affiliates 4,602 91,891 — — (96,493 ) — Premiums receivable — — — 1,304,622 — 1,304,622 Prepaid reinsurance premiums — — — 533,546 — 533,546 Reinsurance recoverable — — — 1,586,630 — 1,586,630 Accrued investment income 405 428 82 41,320 — 42,235 Deferred acquisition costs — — — 426,551 — 426,551 Receivable for investments sold 135 51 8 102,951 — 103,145 Other assets 433,468 21,342 430,481 76,703 (840,768 ) 121,226 Goodwill and other intangible assets 124,960 — — 118,185 — 243,145 Total assets $ 4,909,252 $ 279,723 $ 1,605,028 $ 14,653,022 $ (6,220,894 ) $ 15,226,131 Liabilities, Redeemable Noncontrolling Interest and Shareholders’ Equity Liabilities Reserve for claims and claim expenses $ — $ — $ — $ 5,080,408 $ — $ 5,080,408 Unearned premiums — — — 1,477,609 — 1,477,609 Debt 417,000 — 841,892 147,731 (417,000 ) 989,623 Amounts due to subsidiaries and affiliates 82,579 54 92,794 — (175,427 ) — Reinsurance balances payable — — — 989,090 — 989,090 Payable for investments purchased — — — 208,749 — 208,749 Other liabilities 18,298 1,053 14,117 764,432 (5,129 ) 792,771 Total liabilities 517,877 1,107 948,803 8,668,019 (597,556 ) 9,538,250 Redeemable noncontrolling interests — — — 1,296,506 — 1,296,506 Shareholders’ Equity Total shareholders’ equity 4,391,375 278,616 656,225 4,688,497 (5,623,338 ) 4,391,375 Total liabilities, redeemable noncontrolling interest and shareholders’ equity $ 4,909,252 $ 279,723 $ 1,605,028 $ 14,653,022 $ (6,220,894 ) $ 15,226,131 (1) Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. (2) Includes Parent Guarantor and Subsidiary Issuer consolidating adjustments. |
Condensed Consolidating Statements of Operations | Condensed Consolidating Statement of Operations for the six months ended June 30, 2017 RenaissanceRe RenRe North Inc. Platinum Underwriters Finance, Inc. (Subsidiary Issuer) RenaissanceRe Finance, Inc. (Subsidiary Issuer) Other Consolidating RenaissanceRe Revenues Net premiums earned $ — $ — $ — $ — $ 748,310 $ — $ 748,310 Net investment income 10,741 892 1,376 508 107,474 (12,503 ) 108,488 Net foreign exchange (losses) gains (1 ) — — — 11,275 — 11,274 Equity in earnings of other ventures — — — (450 ) 4,486 — 4,036 Other (loss) income (1 ) — — — 4,058 — 4,057 Net realized and unrealized gains (losses) on investments 45 4,342 4,916 (268 ) 92,451 — 101,486 Total revenues 10,784 5,234 6,292 (210 ) 968,054 (12,503 ) 977,651 Expenses Net claims and claim expenses incurred — — — — 335,668 — 335,668 Acquisition expenses — — — — 171,533 — 171,533 Operational expenses 6,488 40 85 14,626 78,460 (10,650 ) 89,049 Corporate expenses 10,006 — — — (84 ) — 9,922 Interest expense 281 — 2,461 13,143 5,013 (281 ) 20,617 Total expenses 16,775 40 2,546 27,769 590,590 (10,931 ) 626,789 (Loss) income before equity in net income of subsidiaries and taxes (5,991 ) 5,194 3,746 (27,979 ) 377,464 (1,572 ) 350,862 Equity in net income of subsidiaries 280,099 2,306 28,028 36,936 — (347,369 ) — Income before taxes 274,108 7,500 31,774 8,957 377,464 (348,941 ) 350,862 Income tax benefit (expense) 577 (1,682 ) (1,204 ) 5,974 (7,903 ) — (4,238 ) Net income 274,685 5,818 30,570 14,931 369,561 (348,941 ) 346,624 Net income attributable to redeemable noncontrolling interests — — — — (71,939 ) — (71,939 ) Net income attributable to RenaissanceRe 274,685 5,818 30,570 14,931 297,622 (348,941 ) 274,685 Dividends on preference shares (11,191 ) — — — — — (11,191 ) Net income available to RenaissanceRe common shareholders $ 263,494 $ 5,818 $ 30,570 $ 14,931 $ 297,622 $ (348,941 ) $ 263,494 (1) Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. (2) Includes Parent Guarantor and Subsidiary Issuer consolidating adjustments. Condensed Consolidating Statement of Operations for RenaissanceRe RenRe North RenaissanceRe Finance, Inc. (Subsidiary Issuer) Other Consolidating RenaissanceRe Revenues Net premiums earned $ — $ — $ — $ 869,667 $ — $ 869,667 Net investment income 11,962 1,090 2,440 127,562 (15,222 ) 127,832 Net foreign exchange losses (4 ) — — (6,942 ) — (6,930 ) Equity in earnings of other ventures — — 1,755 4,928 — 6,683 Other loss — — — (17 ) — (17 ) Net realized and unrealized (losses) gains on investments (645 ) 427 (326 ) (99,501 ) — (100,045 ) Total revenues 11,313 1,517 3,869 895,697 (15,222 ) 897,190 Expenses Net claims and claim expenses incurred — — — 231,870 — 231,870 Acquisition expenses — — — 202,763 — 202,763 Operational expenses 3,981 31 19,244 71,039 (15,480 ) 78,815 Corporate expenses 8,720 — 7 6,307 — 15,034 Interest expense 2,216 — 18,506 5,029 (2,216 ) 23,535 Total expenses 14,917 31 37,757 517,008 (17,696 ) 552,017 (Loss) income before equity in net income of subsidiaries and taxes (3,604 ) 1,486 (33,888 ) 378,689 2,474 345,173 Equity in net income of subsidiaries 264,951 1,550 17,339 — (283,840 ) — Income (loss) before taxes 261,347 3,036 (16,549 ) 378,689 (281,366 ) 345,173 Income tax (expense) benefit (1,655 ) (247 ) 3,837 (3,034 ) — (1,099 ) Net income (loss) 259,692 2,789 (12,712 ) 375,655 (281,366 ) 344,074 Net income attributable to redeemable noncontrolling interests — — — (84,382 ) — (84,382 ) Net income (loss) attributable to RenaissanceRe 259,692 2,789 (12,712 ) 291,273 (281,366 ) 259,692 Dividends on preference shares (11,191 ) — — — — (11,191 ) Net income (loss) available (attributable) to RenaissanceRe common shareholders $ 248,501 $ 2,789 $ (12,712 ) $ 291,273 $ (281,366 ) $ 248,501 (1) Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. (2) Includes Parent Guarantor, Subsidiary Guarantor and Subsidiary Issuer consolidating adjustments. |
Condensed Consolidating Statement of Comprehensive Income (Loss) | Condensed Consolidating Statement of Comprehensive Income for the six months ended June 30, 2017 RenaissanceRe RenRe North Inc. Platinum Underwriters Finance, Inc. (Subsidiary Issuer) RenaissanceRe Finance, Inc. (Subsidiary Issuer) Other Consolidating RenaissanceRe Comprehensive income Net income $ 274,685 $ 5,818 $ 30,570 $ 14,931 $ 369,561 $ (348,941 ) $ 346,624 Change in net unrealized gains on investments — — — — (1,272 ) — (1,272 ) Comprehensive income 274,685 5,818 30,570 14,931 368,289 (348,941 ) 345,352 Net income attributable to redeemable noncontrolling interests — — — — (71,939 ) — (71,939 ) Comprehensive income attributable to redeemable noncontrolling interests — — — — (71,939 ) — (71,939 ) Comprehensive income available to RenaissanceRe $ 274,685 $ 5,818 $ 30,570 $ 14,931 $ 296,350 $ (348,941 ) $ 273,413 (1) Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. (2) Includes Parent Guarantor and Subsidiary Issuer consolidating adjustments. Condensed Consolidating Statement of Comprehensive Income (Loss) for the six months ended June 30, 2018 RenaissanceRe RenRe North RenaissanceRe Finance, Inc. (Subsidiary Issuer) Other Consolidating RenaissanceRe Comprehensive income (loss) Net income (loss) $ 259,692 $ 2,789 $ (12,712 ) $ 375,655 $ (281,366 ) $ 344,074 Change in net unrealized gains on investments — — — (1,325 ) — (1,325 ) Comprehensive income (loss) 259,692 2,789 (12,712 ) 374,330 (281,366 ) 342,749 Net income attributable to redeemable noncontrolling interests — — — (84,382 ) — (84,382 ) Comprehensive income attributable to noncontrolling interests — — — (84,382 ) — (84,382 ) Comprehensive income (loss) attributable to RenaissanceRe $ 259,692 $ 2,789 $ (12,712 ) $ 289,948 $ (281,366 ) $ 258,367 (1) Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. (2) Includes Parent Guarantor, Subsidiary Guarantor and Subsidiary Issuer consolidating adjustments. |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statement of Cash Flows for the six months ended June 30, 2018 RenaissanceRe RenRe North RenaissanceRe Finance, Inc. (Subsidiary Issuer) Other RenaissanceRe Consolidated Cash flows (used in) provided by operating activities Net cash (used in) provided by operating activities $ (7,183 ) $ 1,213 $ (32,605 ) $ 387,686 $ 349,111 Cash flows (used in) provided by investing activities Proceeds from sales and maturities of fixed maturity investments trading 120,555 62,334 35,946 4,594,373 4,813,208 Purchases of fixed maturity investments trading (246,764 ) (46,047 ) (16,397 ) (4,704,803 ) (5,014,011 ) Net purchases of equity investments trading — (675 ) — (33,623 ) (34,298 ) Net sales (purchases) of short term investments 56,048 (154 ) (5,001 ) (1,113,315 ) (1,062,422 ) Net purchases of other investments — — — (111,921 ) (111,921 ) Net purchases of investments in other ventures — — — (20,952 ) (20,952 ) Return of investment from investments in other ventures — — — 8,464 8,464 Dividends and return of capital from subsidiaries 278,864 — — (278,864 ) — Contributions to subsidiaries (250,238 ) (16,848 ) — 267,086 — Due (from) to subsidiary (161,104 ) 50 21,333 139,721 — Net cash (used in) provided by investing activities (202,639 ) (1,340 ) 35,881 (1,253,834 ) (1,421,932 ) Cash flows provided by financing activities Dividends paid – RenaissanceRe common shares (26,468 ) — — — (26,468 ) Dividends paid – preference shares (11,191 ) — — — (11,191 ) Issuance of preference shares, net of expenses 242,371 — — — 242,371 Net third party redeemable noncontrolling interest share transactions — — — 64,534 64,534 Taxes paid on withholding shares (7,044 ) — — — (7,044 ) Net cash provided by financing activities 197,668 — — 64,534 262,202 Effect of exchange rate changes on foreign currency cash — — — (2,501 ) (2,501 ) Net (decrease) increase in cash and cash equivalents (12,154 ) (127 ) 3,276 (804,115 ) (813,120 ) Cash and cash equivalents, beginning of period 14,656 139 1,469 1,345,328 1,361,592 Cash and cash equivalents, end of period $ 2,502 $ 12 $ 4,745 $ 541,213 $ 548,472 (1) Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. Condensed Consolidating Statement of Cash Flows for the six months ended June 30, 2017 RenaissanceRe RenRe North Inc. Platinum Underwriters Finance, Inc. (Subsidiary Issuer) RenaissanceRe Finance, Inc. (Subsidiary Issuer) Other RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) RenaissanceRe Consolidated Cash flows (used in) provided by operating activities Net cash (used in) provided by operating activities $ (11,924 ) $ (8,931 ) $ (5,017 ) $ (27,713 ) $ 374,608 $ 321,023 Cash flows provided by (used in) investing activities Proceeds from sales and maturities of fixed maturity investments trading 53,654 46,475 289,741 15,449 4,758,653 5,163,972 Purchases of fixed maturity investments trading (105,523 ) (45,174 ) (143,991 ) (265,787 ) (4,890,887 ) (5,451,362 ) Net (purchases) sales of equity investments trading — (89 ) 85,324 — (38,930 ) 46,305 Net sales (purchases) of short term investments 298,768 (1,351 ) 41,299 (28,934 ) (33,707 ) 276,075 Net sales of other investments — — — — 2,551 2,551 Return of investment from investment in other ventures — — — — 20,000 20,000 Dividends and return of capital from subsidiaries 167,111 9,175 — 17,975 (194,261 ) — Contributions to subsidiaries (200,000 ) — — (9,175 ) 209,175 — Due (from) to subsidiaries (12,477 ) 9 (41 ) 1,278 11,231 — Net cash provided by (used in) investing activities 201,533 9,045 272,332 (269,194 ) (156,175 ) 57,541 Cash flows used in financing activities Dividends paid – RenaissanceRe common shares (25,877 ) — — — — (25,877 ) Dividends paid – preference shares (11,191 ) — — — — (11,191 ) RenaissanceRe common share repurchases (145,940 ) — — — — (145,940 ) Net repayment of debt — — (250,000 ) — — (250,000 ) Net issuance of debt — — — 295,866 — 295,866 Net third party redeemable noncontrolling interest share transactions — — — — (33,655 ) (33,655 ) Taxes paid on withholding shares (11,251 ) — — — — (11,251 ) Net cash used in financing activities (194,259 ) — (250,000 ) 295,866 (33,655 ) (182,048 ) Effect of exchange rate changes on foreign currency cash — — — — 5,477 5,477 Net (decrease) increase in cash and cash equivalents (4,650 ) 114 17,315 (1,041 ) 190,255 201,993 Cash and cash equivalents, beginning of period 7,067 162 6,671 9,397 397,860 421,157 Cash and cash equivalents, end of period $ 2,417 $ 276 $ 23,986 $ 8,356 $ 588,115 $ 623,150 (1) Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations. |
Organization (Details)
Organization (Details) | Nov. 13, 2014 |
RenaissanceRe Upsilon Fund Ltd. | Variable Interest Entity, Not Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
Percent of segregated funds owned by third party investors | 100.00% |
Significant Accounting Polici35
Significant Accounting Policies Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Decrease in cash inflows from cash flows provided by operating activities | $ (349,111) | $ (321,023) | ||
Increase in cash flows used in investing activities | $ 1,421,932 | $ (57,541) | ||
Accounting Standards Update 2016-15 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Decrease in cash inflows from cash flows provided by operating activities | $ 20,000 | |||
Increase in cash flows used in investing activities | $ 20,000 | |||
Cumulative effect of adoption of ASU 2016-09 | Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of new accounting principle in period of adoption | $ 2,200 |
Investments (Schedule of Fair V
Investments (Schedule of Fair Value of Fixed Maturity Investments Trading) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Investment [Line Items] | ||
Total fixed maturity investments trading | $ 7,420,778 | $ 7,426,555 |
U.S. treasuries | ||
Investment [Line Items] | ||
Total fixed maturity investments trading | 2,968,855 | 3,168,763 |
Agencies | ||
Investment [Line Items] | ||
Total fixed maturity investments trading | 55,199 | 47,646 |
Municipal | ||
Investment [Line Items] | ||
Total fixed maturity investments trading | 6,164 | 509,802 |
Non-U.S. government (Sovereign debt) | ||
Investment [Line Items] | ||
Total fixed maturity investments trading | 298,811 | 287,660 |
Non-U.S. government-backed corporate | ||
Investment [Line Items] | ||
Total fixed maturity investments trading | 185,640 | 163,651 |
Corporate | ||
Investment [Line Items] | ||
Total fixed maturity investments trading | 2,280,080 | 2,063,459 |
Agency mortgage-backed | ||
Investment [Line Items] | ||
Total fixed maturity investments trading | 762,077 | 500,456 |
Non-agency mortgage-backed | ||
Investment [Line Items] | ||
Total fixed maturity investments trading | 300,311 | 300,331 |
Commercial mortgage-backed | ||
Investment [Line Items] | ||
Total fixed maturity investments trading | 248,590 | 202,062 |
Asset-backed | ||
Investment [Line Items] | ||
Total fixed maturity investments trading | $ 315,051 | $ 182,725 |
Investments (Schedule of Contra
Investments (Schedule of Contractual Maturities of Fixed Maturity Investments) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Trading Securities [Abstract] | ||
Amortized Cost, Due in less than one year | $ 385,371 | |
Amortized Cost, Due after one through five years | 4,482,713 | |
Amortized Cost, Due after five through ten years | 917,280 | |
Amortized Cost, Due after ten years | 88,229 | |
Amortized Cost | 7,499,997 | $ 7,434,870 |
Fair Value, Due in less than one year | 383,353 | |
Fair Value, Due after one through five years | 4,421,536 | |
Fair Value, Due after five through ten years | 904,070 | |
Fair Value, Due after ten years | 85,790 | |
Fair Value | 7,420,778 | $ 7,426,555 |
Mortgage-backed | ||
Trading Securities [Abstract] | ||
Amortized Cost | 1,310,933 | |
Fair Value | 1,310,978 | |
Asset-backed | ||
Trading Securities [Abstract] | ||
Amortized Cost | 315,471 | |
Fair Value | $ 315,051 |
Investments (Schedule of Fair38
Investments (Schedule of Fair Value of Equity Investments Trading) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Equity investments trading | $ 432,804 | $ 388,254 |
Financials | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Equity investments trading | 293,779 | 253,543 |
Communications and technology | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Equity investments trading | 55,100 | 49,526 |
Industrial, utilities and energy | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Equity investments trading | 33,097 | 34,325 |
Consumer | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Equity investments trading | 24,678 | 24,779 |
Healthcare | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Equity investments trading | 21,960 | 21,364 |
Basic materials | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Equity investments trading | $ 4,190 | $ 4,717 |
Investments (Pledged Investment
Investments (Pledged Investments) (Details) - USD ($) $ in Billions | Jun. 30, 2018 | Dec. 31, 2017 |
Investments [Abstract] | ||
Cash and investments at fair value on deposit with, or in trust accounts for the benefit of various counterparties | $ 4.9 | $ 4.4 |
Cash and investments at fair value on deposit with, or in trust accounts for the benefit of U.S. state regulatory authorities | $ 1.7 | $ 1.7 |
Investments (Reverse Purchase A
Investments (Reverse Purchase Agreements) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Value of reverse repurchase agreements | $ 91.8 | $ 30 |
Minimum required collateral for reverse repurchase agreements, expressed as a percentage of loan principal | 102.00% |
Investments (Schedule of Net In
Investments (Schedule of Net Investment Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Investment income before investment expenses | $ 75,096 | $ 58,031 | $ 134,895 | $ 116,048 |
Investment expenses | (3,740) | (3,868) | (7,063) | (7,560) |
Net investment income | 71,356 | 54,163 | 127,832 | 108,488 |
Fixed maturity investments | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Investment income before investment expenses | 50,416 | 44,356 | 96,059 | 87,775 |
Short term investments | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Investment income before investment expenses | 7,633 | 2,981 | 12,937 | 4,705 |
Equity investments | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Investment income before investment expenses | 1,490 | 889 | 2,188 | 1,700 |
Private equity investments | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Investment income before investment expenses | 3,860 | 6,611 | 3,426 | 14,413 |
Other | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Investment income before investment expenses | 10,658 | 2,899 | 18,681 | 6,971 |
Cash and cash equivalents | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Investment income before investment expenses | $ 1,039 | $ 295 | $ 1,604 | $ 484 |
Investments (Schedule of Net Re
Investments (Schedule of Net Realized and Unrealized (Losses) Gains on Investments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Gain (Loss) on Investments [Line Items] | ||||
Net realized and unrealized (losses) gains on investments | $ (17,901) | $ 58,113 | $ (100,045) | $ 101,486 |
Fixed maturity investments | ||||
Gain (Loss) on Investments [Line Items] | ||||
Gross realized gains | 5,133 | 15,249 | 9,716 | 26,710 |
Gross realized losses | (26,519) | (7,243) | (52,372) | (23,776) |
Net realized (losses) gains on fixed maturity investments | (21,386) | 8,006 | (42,656) | 2,934 |
Net unrealized (losses) gains on fixed maturity investments trading | (9,420) | 18,760 | (64,792) | 43,395 |
Derivatives | ||||
Gain (Loss) on Investments [Line Items] | ||||
Net realized and unrealized gains (losses) on investments-related derivatives | 1,038 | (268) | (3,326) | (324) |
Equity investments | ||||
Gain (Loss) on Investments [Line Items] | ||||
Net unrealized gains (losses) on investments trading | 11,519 | 16,469 | 10,147 | 19,420 |
Net realized (losses) gains on fixed maturity investments | 348 | 15,146 | 582 | 36,061 |
Net realized and unrealized gains on equity investments trading | $ 11,867 | $ 31,615 | $ 10,729 | $ 55,481 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity investments trading | $ 432,804 | $ 388,254 |
Other investments | 713,200 | 594,793 |
Other (liabilities) | (4,506) | (5,494) |
Other assets, fair value | 2,488 | 2,542 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 7,420,778 | 7,426,555 |
Short term investments | 2,031,943 | 991,863 |
Equity investments trading | 432,804 | 388,254 |
Other investments | 713,200 | 594,793 |
Other (liabilities) | (4,179) | |
Total assets and liabilities measured on recurring basis | 10,594,546 | 9,403,149 |
Other assets, fair value | 1,684 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 2,968,855 | 3,168,763 |
Short term investments | 0 | 0 |
Equity investments trading | 432,804 | 388,254 |
Other investments | 0 | 0 |
Other (liabilities) | (95) | (45) |
Total assets and liabilities measured on recurring basis | 3,401,564 | 3,556,972 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 4,451,923 | 4,257,792 |
Short term investments | 2,031,943 | 991,863 |
Equity investments trading | 0 | 0 |
Other investments | 501,025 | 380,475 |
Other (liabilities) | (2,066) | |
Total assets and liabilities measured on recurring basis | 6,982,825 | 5,634,811 |
Other assets, fair value | 4,681 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Short term investments | 0 | 0 |
Equity investments trading | 0 | 0 |
Other investments | 0 | 0 |
Other (liabilities) | (2,018) | (2,952) |
Total assets and liabilities measured on recurring basis | (2,018) | (2,952) |
Fair Value, Measurements, Recurring | U.S. treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 2,968,855 | 3,168,763 |
Fair Value, Measurements, Recurring | U.S. treasuries | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 2,968,855 | 3,168,763 |
Fair Value, Measurements, Recurring | U.S. treasuries | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Fair Value, Measurements, Recurring | U.S. treasuries | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Fair Value, Measurements, Recurring | Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 55,199 | 47,646 |
Fair Value, Measurements, Recurring | Agencies | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Fair Value, Measurements, Recurring | Agencies | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 55,199 | 47,646 |
Fair Value, Measurements, Recurring | Agencies | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Fair Value, Measurements, Recurring | Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 6,164 | 509,802 |
Fair Value, Measurements, Recurring | Municipal | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Fair Value, Measurements, Recurring | Municipal | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 6,164 | 509,802 |
Fair Value, Measurements, Recurring | Municipal | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Fair Value, Measurements, Recurring | Non-U.S. government (Sovereign debt) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 298,811 | 287,660 |
Fair Value, Measurements, Recurring | Non-U.S. government (Sovereign debt) | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Fair Value, Measurements, Recurring | Non-U.S. government (Sovereign debt) | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 298,811 | 287,660 |
Fair Value, Measurements, Recurring | Non-U.S. government (Sovereign debt) | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Fair Value, Measurements, Recurring | Non-U.S. government-backed corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 185,640 | 163,651 |
Fair Value, Measurements, Recurring | Non-U.S. government-backed corporate | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Fair Value, Measurements, Recurring | Non-U.S. government-backed corporate | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 185,640 | 163,651 |
Fair Value, Measurements, Recurring | Non-U.S. government-backed corporate | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Fair Value, Measurements, Recurring | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 2,280,080 | 2,063,459 |
Fair Value, Measurements, Recurring | Corporate | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Fair Value, Measurements, Recurring | Corporate | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 2,280,080 | 2,063,459 |
Fair Value, Measurements, Recurring | Corporate | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Fair Value, Measurements, Recurring | Agency mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 762,077 | 500,456 |
Fair Value, Measurements, Recurring | Agency mortgage-backed | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Fair Value, Measurements, Recurring | Agency mortgage-backed | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 762,077 | 500,456 |
Fair Value, Measurements, Recurring | Agency mortgage-backed | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Fair Value, Measurements, Recurring | Non-agency mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 300,311 | 300,331 |
Fair Value, Measurements, Recurring | Non-agency mortgage-backed | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Fair Value, Measurements, Recurring | Non-agency mortgage-backed | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 300,311 | 300,331 |
Fair Value, Measurements, Recurring | Non-agency mortgage-backed | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Fair Value, Measurements, Recurring | Commercial mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 248,590 | 202,062 |
Fair Value, Measurements, Recurring | Commercial mortgage-backed | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Fair Value, Measurements, Recurring | Commercial mortgage-backed | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 248,590 | 202,062 |
Fair Value, Measurements, Recurring | Commercial mortgage-backed | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Fair Value, Measurements, Recurring | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 315,051 | 182,725 |
Fair Value, Measurements, Recurring | Asset-backed | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Fair Value, Measurements, Recurring | Asset-backed | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 315,051 | 182,725 |
Fair Value, Measurements, Recurring | Asset-backed | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Fair Value, Measurements, Recurring | Catastrophe bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 501,025 | 380,475 |
Fair Value, Measurements, Recurring | Catastrophe bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value, Measurements, Recurring | Catastrophe bonds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 501,025 | 380,475 |
Fair Value, Measurements, Recurring | Catastrophe bonds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value, Measurements, Recurring | Private equity partnerships | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 186,200 | 196,220 |
Fair Value, Measurements, Recurring | Private equity partnerships | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value, Measurements, Recurring | Private equity partnerships | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value, Measurements, Recurring | Private equity partnerships | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value, Measurements, Recurring | Senior secured bank loan funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 14,414 | 17,574 |
Fair Value, Measurements, Recurring | Senior secured bank loan funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value, Measurements, Recurring | Senior secured bank loan funds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value, Measurements, Recurring | Senior secured bank loan funds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value, Measurements, Recurring | Hedge funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 11,561 | 524 |
Fair Value, Measurements, Recurring | Hedge funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value, Measurements, Recurring | Hedge funds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value, Measurements, Recurring | Hedge funds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value, Measurements, Recurring | Assumed and ceded (re)insurance contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other (liabilities) | (2,018) | (2,952) |
Fair Value, Measurements, Recurring | Assumed and ceded (re)insurance contracts | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other (liabilities) | 0 | 0 |
Fair Value, Measurements, Recurring | Assumed and ceded (re)insurance contracts | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other (liabilities) | 0 | 0 |
Fair Value, Measurements, Recurring | Assumed and ceded (re)insurance contracts | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other (liabilities) | (2,018) | (2,952) |
Fair Value, Measurements, Recurring | Assumed and ceded (re)insurance contracts | Significant Unobservable Inputs (Level 3) | Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets, fair value | 2,500 | 2,500 |
Fair Value, Measurements, Recurring | Assumed and ceded (re)insurance contracts | Significant Unobservable Inputs (Level 3) | Other liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other (liabilities) | (4,500) | (5,500) |
Fair Value, Measurements, Recurring | Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other (liabilities) | (2,161) | |
Other assets, fair value | 4,636 | |
Fair Value, Measurements, Recurring | Derivatives | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other (liabilities) | (95) | (45) |
Fair Value, Measurements, Recurring | Derivatives | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other (liabilities) | (2,066) | |
Other assets, fair value | 4,681 | |
Fair Value, Measurements, Recurring | Derivatives | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other (liabilities) | $ 0 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Debt | $ 990,371,000 | $ 990,371,000 | $ 989,623,000 | ||
Long-term debt, fair value | 987,400,000 | 987,400,000 | 1,000,000,000 | ||
Net unrealized (losses) gains recognized in earnings | 8,714,000 | $ 12,491,000 | |||
Investment balance | 212,175,000 | 212,175,000 | |||
Net investment income | Other Investments | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Net unrealized (losses) gains recognized in earnings | 7,200,000 | $ 5,600,000 | 8,700,000 | 12,500,000 | |
Other income (loss) | Other assets and (liabilities) | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Net unrealized (losses) gains recognized in earnings | 0 | $ 0 | 0 | $ 0 | |
Senior Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Debt | 990,371,000 | 990,371,000 | 989,623,000 | ||
Long-term debt, fair value | 987,435,000 | 987,435,000 | $ 1,018,235,000 | ||
Significant Unobservable Inputs (Level 3) | Internal valuation model | Assumed reinsurance contract | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Assets, fair value | 935,000 | 935,000 | |||
Significant Unobservable Inputs (Level 3) | Internal valuation model | Assumed and ceded (re)insurance contract | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Liabilities, fair value | $ 2,953,000 | $ 2,953,000 | |||
U.S. treasuries | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 2.60% | 2.60% | 1.90% | ||
Agencies | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 2.70% | 2.70% | 2.10% | ||
Municipal | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 3.80% | 3.80% | 2.20% | ||
Non-U.S. government (Sovereign debt) | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 2.60% | 2.60% | 2.00% | ||
Non-U.S. government-backed corporate | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 3.00% | 3.00% | 2.30% | ||
Corporate | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 4.30% | 4.30% | 3.80% | ||
Agency mortgage-backed | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 3.40% | 3.40% | 3.00% | ||
Weighted average life | 7 years 8 months 12 days | 6 years 4 months 24 days | |||
Non-agency prime residential mortgage-backed | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 4.10% | 4.10% | 3.70% | ||
Weighted average life | 5 years 4 months 24 days | 5 years 1 month 6 days | |||
Alt-A non-agency mortgage-backed | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 3.80% | 3.80% | 3.70% | ||
Weighted average life | 6 years 2 months 12 days | 6 years 2 months 12 days | |||
Commercial mortgage-backed | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 3.50% | 3.50% | 2.90% | ||
Weighted average life | 4 years 6 months | 4 years 6 months | |||
Asset-backed | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 3.60% | 3.60% | 2.80% | ||
Weighted average life | 3 years 1 month 6 days | 3 years | |||
Short term investments | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 1.60% | 1.60% | 1.40% | ||
Private equity partnerships | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Investment balance | $ 186,200,000 | $ 186,200,000 | |||
Private equity partnerships | Minimum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Liquidation period for fund assets | 7 years | ||||
Private equity partnerships | Maximum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Liquidation period for fund assets | 10 years | ||||
Senior secured bank loan funds | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Investment in closed end fund | 14,400,000 | $ 14,400,000 | |||
Investment balance | 14,414,000 | $ 14,414,000 | |||
Senior secured bank loan funds | Minimum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Liquidation period for fund assets | 4 years | ||||
Senior secured bank loan funds | Maximum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Liquidation period for fund assets | 5 years | ||||
Hedge funds | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Investment balance | 11,561,000 | $ 11,561,000 | |||
Hedge funds redeemable at option of shareholder | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Investment balance | $ 11,200,000 | $ 11,200,000 |
Fair Value Measurements (Quanti
Fair Value Measurements (Quantitative Information Used as Level 3 Inputs) (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Total other assets and (liabilities) | $ 2,488 | $ 2,542 |
Internal valuation model | Fair Value (Level 3) | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Total other assets and (liabilities) | 2,018 | |
Assumed and ceded (re)insurance contracts, group one | Internal valuation model | Fair Value (Level 3) | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Other assets | $ 935 | |
Assumed and ceded (re)insurance contracts, group one | Internal valuation model | Fair Value (Level 3) | Low | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Bond price (in dollars per share) | $ 101.38 | |
Assumed and ceded (re)insurance contracts, group one | Internal valuation model | Fair Value (Level 3) | High | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Bond price (in dollars per share) | 110.93 | |
Assumed and ceded (re)insurance contracts, group one | Internal valuation model | Fair Value (Level 3) | Weighted Average or Actual | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Bond price (in dollars per share) | $ 106.64 | |
Liquidity discount | 1.30% | |
Assumed and ceded (re)insurance contracts, group two | Internal valuation model | Fair Value (Level 3) | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Other (liabilities) | $ (2,953) | |
Assumed and ceded (re)insurance contracts, group two | Internal valuation model | Fair Value (Level 3) | Low | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Contract period | 2 years | |
Assumed and ceded (re)insurance contracts, group two | Internal valuation model | Fair Value (Level 3) | High | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Contract period | 4 years 8 months 12 days | |
Assumed and ceded (re)insurance contracts, group two | Internal valuation model | Fair Value (Level 3) | Weighted Average or Actual | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Net undiscounted cash flows | $ 4,815 | |
Expected loss ratio | 18.70% | |
Net acquisition expense ratio | 13.80% | |
Contract period | 4 years 1 month 6 days | |
Discount rate | 2.70% |
Fair Value Measurements (Asse46
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Level 3 Inputs) (Details) - Other assets and (liabilities) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of the period | $ (2,952) | $ (13,004) |
Total realized and unrealized gains | ||
Purchases | 289 | 112 |
Balance at end of the period | (2,018) | (9,502) |
Other income (loss) | ||
Total realized and unrealized gains | ||
Included in other income (loss) | $ 645 | $ 3,390 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of the Balances Company Has Elected to Account For at Fair Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Other investments | $ 713,200 | $ 594,793 |
Other assets | 2,488 | 2,542 |
Other liabilities | $ 4,506 | $ 5,494 |
Fair Value Measurements (Compan
Fair Value Measurements (Company's Portfolio of Other Investments Measured Using Net Asset Valuations) (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Fair Value | $ 212,175 |
Unfunded Commitments | 445,110 |
Private equity partnerships | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Fair Value | 186,200 |
Unfunded Commitments | 421,299 |
Senior secured bank loan funds | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Fair Value | 14,414 |
Unfunded Commitments | 23,811 |
Hedge funds | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Fair Value | 11,561 |
Unfunded Commitments | $ 0 |
Reinsurance (Effect of Reinsura
Reinsurance (Effect of Reinsurance and Retrocessional Activity on Premiums Written and Earned and on Net Claims and Claim Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Premiums written | ||||
Direct | $ 90,573 | $ 67,805 | $ 175,740 | $ 141,213 |
Assumed | 886,770 | 759,610 | 1,961,255 | 1,608,292 |
Ceded | (372,834) | (271,670) | (869,442) | (649,624) |
Net premiums written | 604,509 | 555,745 | 1,267,553 | 1,099,881 |
Premiums earned | ||||
Direct | 69,904 | 56,357 | 139,936 | 114,525 |
Assumed | 601,735 | 520,347 | 1,207,218 | 1,019,346 |
Ceded | (242,254) | (194,439) | (477,487) | (385,561) |
Net premiums earned | 429,385 | 382,265 | 869,667 | 748,310 |
Claims and claim expenses | ||||
Gross claims and claim expenses incurred | 76,945 | 189,903 | 302,687 | 441,707 |
Claims and claim expenses recovered | (16,778) | (47,316) | (70,817) | (106,039) |
Net claims and claim expenses incurred | $ 60,167 | $ 142,587 | $ 231,870 | $ 335,668 |
Reserve for Claims and Claim 50
Reserve for Claims and Claim Expenses (Claims and Claim Expense Reserves by Segment) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Case Reserves | $ 1,386,224 | $ 1,392,852 | |
Additional Case Reserves | 871,516 | 1,021,445 | |
IBNR | 2,444,605 | 2,666,111 | |
Net reserve for claims and claim expenses | 4,702,345 | 5,080,408 | $ 2,989,806 |
Other | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Case Reserves | 4,433 | 6,605 | |
Additional Case Reserves | 0 | 0 | |
IBNR | 4,495 | 11,921 | |
Net reserve for claims and claim expenses | 8,928 | 18,526 | |
Property | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Case Reserves | 631,642 | 696,285 | |
Additional Case Reserves | 766,450 | 896,522 | |
IBNR | 568,642 | 893,583 | |
Net reserve for claims and claim expenses | 1,966,734 | 2,486,390 | |
Casualty and Specialty | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Case Reserves | 750,149 | 689,962 | |
Additional Case Reserves | 105,066 | 124,923 | |
IBNR | 1,871,468 | 1,760,607 | |
Net reserve for claims and claim expenses | $ 2,726,683 | $ 2,575,492 |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverable | $ 1,454,991 | $ 370,586 | $ 1,586,630 |
Allowance for reinsurance recoverable | |||
Ceded Credit Risk [Line Items] | |||
Valuation allowances and reserves balance | $ 7,800 | $ 7,000 | |
Customer Concentration Risk, Customer One | Reinsurance recoverable | |||
Ceded Credit Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | 10.40% | |
Customer Concentration Risk, Customer One | Allowance for reinsurance recoverable | |||
Ceded Credit Risk [Line Items] | |||
Concentration risk, percentage | 16.00% | 11.10% | |
Customer Concentration Risk, Customer Two | Reinsurance recoverable | |||
Ceded Credit Risk [Line Items] | |||
Concentration risk, percentage | 9.40% | 7.50% | |
Customer Concentration Risk, Customer Two | Allowance for reinsurance recoverable | |||
Ceded Credit Risk [Line Items] | |||
Concentration risk, percentage | 15.60% | 9.20% | |
Customer Concentration Risk, Customer Three | Reinsurance recoverable | |||
Ceded Credit Risk [Line Items] | |||
Concentration risk, percentage | 7.40% | 7.30% | |
Customer Concentration Risk, Customer Three | Allowance for reinsurance recoverable | |||
Ceded Credit Risk [Line Items] | |||
Concentration risk, percentage | 14.40% | 8.40% | |
Ceded Credit Risk, Secured | Reinsurer Concentration Risk | Reinsurance recoverable | |||
Ceded Credit Risk [Line Items] | |||
Concentration risk, percentage | 48.20% | 54.50% | |
Ceded Credit Risk, Unsecured | Reinsurer Concentration Risk | Reinsurance recoverable | Standard & Poor's, A- Rating | |||
Ceded Credit Risk [Line Items] | |||
Concentration risk, percentage | 50.60% | 44.50% | |
Ceded Credit Risk, Unsecured | Reinsurer Concentration Risk | Reinsurance recoverable | Standard & Poor's, BBB Rating | |||
Ceded Credit Risk [Line Items] | |||
Concentration risk, percentage | 1.20% | 1.00% |
Reserve for Claims and Claim 52
Reserve for Claims and Claim Expenses (Schedule of Liability for Unpaid Claims and Claims Adjustment Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Net reserves as of January 1 | $ 3,493,778 | $ 2,568,730 | ||
Net incurred related to: | ||||
Current year | $ 216,396 | $ 187,691 | 419,434 | 351,766 |
Prior years | (156,229) | (45,104) | (187,564) | (16,098) |
Total net incurred | 60,167 | 142,587 | 231,870 | 335,668 |
Net paid related to: | ||||
Current year | 23,902 | 19,885 | ||
Prior years | 445,790 | 285,046 | ||
Total net paid | 469,692 | 304,931 | ||
Foreign exchange | (8,602) | 19,753 | ||
Net reserves as of June 30 | 3,247,354 | 2,619,220 | 3,247,354 | 2,619,220 |
Reinsurance recoverable as of June 30 | 1,454,991 | 370,586 | 1,454,991 | 370,586 |
Gross reserves as of June 30 | $ 4,702,345 | $ 2,989,806 | $ 4,702,345 | $ 2,989,806 |
Reserve for Claims and Claim 53
Reserve for Claims and Claim Expenses (Prior Year Development of the Reserve for Net Claims and Claim Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | $ (156,229) | $ (45,104) | $ (187,564) | $ (16,098) |
Ogden Rate | Maximum | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Discount rate | 2.50% | |||
Ogden Rate | Minimum | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Discount rate | (0.75%) | |||
Other | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | $ (88) | $ (227) | (70) | $ (555) |
Property | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (170,707) | (24,800) | ||
Property | Actuarial methods | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (32,265) | |||
Property | Actuarial assumption changes | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (5,682) | 843 | ||
Property | Attritional net claims and claim expenses | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (37,947) | |||
Property | Large and Small Catastrophe Events | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (132,760) | (25,643) | ||
Property | Large catastrophe events | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (156,213) | 1,851 | ||
Property | 2017 Catastrophe Events | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (156,213) | |||
Property | Other | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (3,864) | |||
Property | New Zealand Earthquake (2011) | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | 5,807 | |||
Property | New Zealand Earthquake (2010) | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | 4,061 | |||
Property | April and May U.S. Tornadoes (2011) | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (4,153) | |||
Property | Small catastrophe events | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | 23,453 | (27,494) | ||
Property | Fort McMurray Wildfire (2016) | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (5,848) | |||
Property | Tianjin Explosion (2015) | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (4,896) | |||
Property | U.S. PCS 13/14 Wind and Thunderstorm (2013) | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (3,906) | |||
Property | Other | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | 23,453 | (12,844) | ||
Casualty and Specialty | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (16,787) | 9,257 | ||
Casualty and Specialty | Actuarial methods | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (9,001) | (21,762) | ||
Casualty and Specialty | Actuarial assumption changes | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (7,786) | (2,462) | ||
Casualty and Specialty | Ogden Rate change | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | $ 0 | $ 33,481 |
Debt and Credit Facilities (Sum
Debt and Credit Facilities (Summary of Debt Obligations) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Fair Value | $ 987,400 | $ 1,000,000 |
Carrying Value | $ 990,371 | 989,623 |
3.450% Senior Notes due 2027 | ||
Debt Instrument [Line Items] | ||
Debt instrument, Interest rate | 3.45% | |
3.700% Senior Notes due 2025 | ||
Debt Instrument [Line Items] | ||
Debt instrument, Interest rate | 3.70% | |
5.750% Senior Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Debt instrument, Interest rate | 5.75% | |
4.750% Senior Notes due 2025 (DaVinciRe) | ||
Debt Instrument [Line Items] | ||
Debt instrument, Interest rate | 4.75% | |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Fair Value | $ 987,435 | 1,018,235 |
Carrying Value | 990,371 | 989,623 |
Senior Notes | 3.450% Senior Notes due 2027 | RenaissanceRe Finance, Inc. | ||
Debt Instrument [Line Items] | ||
Fair Value | 283,725 | 294,654 |
Carrying Value | 295,549 | 295,303 |
Senior Notes | 3.700% Senior Notes due 2025 | ||
Debt Instrument [Line Items] | ||
Fair Value | 294,573 | 302,781 |
Carrying Value | 297,501 | 297,318 |
Senior Notes | 5.750% Senior Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Fair Value | 258,750 | 263,750 |
Carrying Value | 249,436 | 249,272 |
Senior Notes | 4.750% Senior Notes due 2025 (DaVinciRe) | DaVinciRe Holdings Ltd. | ||
Debt Instrument [Line Items] | ||
Fair Value | 150,387 | 157,050 |
Carrying Value | $ 147,885 | $ 147,730 |
Debt and Credit Facilities (Sch
Debt and Credit Facilities (Schedule of Credit Facilities) (Details) - Jun. 30, 2018 £ in Thousands, $ in Thousands | USD ($) | GBP (£) |
Line of Credit Facility [Line Items] | ||
Credit facilities outstanding | $ 454,254 | £ 0 |
Renaissance Reinsurance FAL Facility | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Credit facilities outstanding | 180,000 | |
Specialty Risks FAL Facility (1) | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Credit facilities outstanding | £ | £ 0 | |
Wells Fargo | Uncommitted Standby Letter of Credit Facility | Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Credit facilities outstanding | 93,475 | |
Citibank Europe PLC | Bilateral Facility | Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Credit facilities outstanding | 180,779 | |
Revolving Credit Facility | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Credit facilities outstanding | $ 0 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) $ in Thousands | Oct. 01, 2017 | Jul. 31, 2017 | Jan. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Mar. 31, 2018 | Jul. 01, 2017 | Mar. 31, 2017 | Jan. 01, 2017 | Dec. 31, 2016 |
Redeemable Noncontrolling Interest [Line Items] | |||||||||||||
Redeemable noncontrolling interests | $ 1,493,428 | $ 1,493,428 | $ 1,296,506 | ||||||||||
Net income attributable to redeemable noncontrolling interests | 54,483 | $ 37,612 | 84,382 | $ 71,939 | |||||||||
DaVinciRe Holdings Ltd. | |||||||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||||||
Redeemable noncontrolling interests | 1,082,425 | 1,019,918 | 1,082,425 | 1,019,918 | $ 1,011,659 | $ 1,032,543 | $ 986,646 | $ 994,458 | |||||
Net income attributable to redeemable noncontrolling interests | $ 50,252 | 36,432 | $ 71,205 | 68,341 | |||||||||
Parent company ownership in redeemable noncontrolling interest | 22.10% | 22.10% | 22.10% | 22.10% | 23.50% | 22.60% | |||||||
Redeemable noncontrolling interest, net redemptions | $ 75,000 | ||||||||||||
Redeemable noncontrolling interest, reserve holdback | 7,500 | ||||||||||||
Noncontrolling interest, change from purchase or sale of interests | $ 49,700 | $ 12,000 | $ 24,000 | ||||||||||
Issuance of equity to third party investors | $ 248,600 | ||||||||||||
Sale of shares to redeemable noncontrolling interest | $ 0 | 0 | $ 0 | 23,921 | |||||||||
Redemption of shares from redeemable noncontrolling interest | $ 370 | 3,160 | $ 439 | 66,802 | |||||||||
DaVinciRe Holdings Ltd. | Maximum | |||||||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||||||
Share repurchase requests, limit | 25.00% | 25.00% | |||||||||||
RenaissanceRe Medici Fund Ltd. | |||||||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||||||
Redeemable noncontrolling interests | $ 411,003 | 222,165 | $ 411,003 | 222,165 | $ 284,847 | $ 392,821 | $ 201,345 | $ 181,136 | |||||
Net income attributable to redeemable noncontrolling interests | $ 4,231 | 1,180 | $ 13,177 | 3,598 | |||||||||
Parent company ownership in redeemable noncontrolling interest | 16.80% | 16.80% | 26.80% | ||||||||||
Redemption provision, notice period | 30 days | ||||||||||||
Sale of shares to redeemable noncontrolling interest | $ 56,743 | 34,925 | $ 156,482 | 63,341 | $ 149,200 | ||||||||
Redemption of shares from redeemable noncontrolling interest | $ 42,792 | $ 15,285 | $ 43,503 | $ 25,910 | $ 48,000 |
Noncontrolling Interests (Sched
Noncontrolling Interests (Schedule of Redeemable Noncontrolling Interest) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Activity in redeemable noncontrolling interest | |||||
Beginning balance | $ 1,296,506 | ||||
Net income attributable to redeemable noncontrolling interest | $ 54,483 | $ 37,612 | 84,382 | $ 71,939 | |
Ending balance | 1,493,428 | 1,493,428 | $ 1,296,506 | ||
DaVinciRe Holdings Ltd. | |||||
Activity in redeemable noncontrolling interest | |||||
Beginning balance | 1,032,543 | 986,646 | 1,011,659 | 994,458 | 994,458 |
Redemption of shares from redeemable noncontrolling interest, net of adjustments | (370) | (3,160) | (439) | (66,802) | |
Sale of shares to redeemable noncontrolling interests | 0 | 0 | 0 | 23,921 | |
Net income attributable to redeemable noncontrolling interest | 50,252 | 36,432 | 71,205 | 68,341 | |
Ending balance | 1,082,425 | 1,019,918 | 1,082,425 | 1,019,918 | 1,011,659 |
RenaissanceRe Medici Fund Ltd. | |||||
Activity in redeemable noncontrolling interest | |||||
Beginning balance | 392,821 | 201,345 | 284,847 | 181,136 | 181,136 |
Redemption of shares from redeemable noncontrolling interest, net of adjustments | (42,792) | (15,285) | (43,503) | (25,910) | (48,000) |
Sale of shares to redeemable noncontrolling interests | 56,743 | 34,925 | 156,482 | 63,341 | 149,200 |
Net income attributable to redeemable noncontrolling interest | 4,231 | 1,180 | 13,177 | 3,598 | |
Ending balance | $ 411,003 | $ 222,165 | $ 411,003 | $ 222,165 | $ 284,847 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | |||||
Assets | $ 17,023,378,000 | $ 17,023,378,000 | $ 15,226,131,000 | ||
Liabilities | 10,669,889,000 | 10,669,889,000 | 9,538,250,000 | ||
Ceded premiums written | 372,834,000 | $ 271,670,000 | 869,442,000 | $ 649,624,000 | |
Ceded premiums earned | 242,254,000 | $ 194,439,000 | 477,487,000 | 385,561,000 | |
Investments in other ventures, under equity method | 111,935,000 | 111,935,000 | 101,974,000 | ||
Upsilon RFO Re Ltd. | Variable Interest Entity, Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Return of capital | 84,300,000 | ||||
Assets | 1,500,000,000 | 1,500,000,000 | 1,200,000,000 | ||
Liabilities | 1,500,000,000 | 1,500,000,000 | 1,200,000,000 | ||
Upsilon RFO Re Ltd. | Variable Interest Entity, Primary Beneficiary | Non-Voting Preference Shares | |||||
Variable Interest Entity [Line Items] | |||||
Issuance of equity to third party investors | 180,600,000 | ||||
Contributions to subsidiaries | $ 107,800,000 | 27,200,000 | |||
Upsilon RFO Re Ltd. | Variable Interest Entity, Primary Beneficiary | RenaissanceRe Holdings Ltd. | |||||
Variable Interest Entity [Line Items] | |||||
Return of capital | $ 33,000,000 | ||||
Variable interest entity, ownership percentage | 14.60% | 20.80% | |||
Upsilon RFO Re Ltd. | Variable Interest Entity, Primary Beneficiary | Third party investor | Non-Voting Preference Shares | |||||
Variable Interest Entity [Line Items] | |||||
Contributions to subsidiaries | $ 805,900,000 | $ 7,500,000 | |||
Renaissance Reinsurance Ltd. | Variable Interest Entity, Primary Beneficiary | Fibonacci Reinsurance Ltd. | |||||
Variable Interest Entity [Line Items] | |||||
Ceded premiums written | 9,100,000 | 9,400,000 | |||
Ceded premiums earned | 3,100,000 | 3,800,000 | |||
Mona Lisa Re Ltd | Variable Interest Entity, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Assets | 25,400,000 | 25,400,000 | 25,900,000 | ||
Liabilities | 25,400,000 | 25,400,000 | 25,900,000 | ||
Mona Lisa Re Ltd | Variable Interest Entity, Not Primary Beneficiary | Renaissance Reinsurance Ltd. | |||||
Variable Interest Entity [Line Items] | |||||
Ceded premiums written | 200,000 | 100,000 | |||
Ceded premiums earned | 200,000 | 3,600,000 | |||
Mona Lisa Re Ltd | Variable Interest Entity, Not Primary Beneficiary | DaVinci Reinsurance Ltd. | |||||
Variable Interest Entity [Line Items] | |||||
Ceded premiums written | 200,000 | 37,000 | |||
Ceded premiums earned | 200,000 | $ 2,500,000 | |||
Fibonacci Reinsurance Ltd. | Variable Interest Entity, Primary Beneficiary | Other Investments | |||||
Variable Interest Entity [Line Items] | |||||
Investment in participating notes | 6,900,000 | 6,900,000 | 14,100,000 | ||
Langhorne Holdings LLC | Variable Interest Entity, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Investments in other ventures, under equity method | 1,300,000 | 1,300,000 | 600,000 | ||
Langhorne Partners | |||||
Variable Interest Entity [Line Items] | |||||
Investments in other ventures, under equity method | $ 100,000 | $ 100,000 | |||
Langhorne Partners | Variable Interest Entity, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Investments in other ventures, under equity method | $ 0 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) | Jun. 29, 2018 | Jun. 15, 2018 | Mar. 29, 2018 | Mar. 15, 2018 | Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Nov. 10, 2017 |
Class of Stock [Line Items] | |||||||||||
Dividends declared per common share (in dollars per share) | $ 0.33 | $ 0.33 | $ 0.32 | $ 0.66 | $ 0.64 | ||||||
Dividends paid per common share (in dollars per share) | $ 0.33 | $ 0.33 | |||||||||
Dividends declared and paid, preference shares | $ 5,596,000 | $ 5,596,000 | $ 11,191,000 | $ 11,191,000 | |||||||
Shares issued (In shares) | 16,010,000 | 16,010,000 | 16,010,000 | 16,000,000 | |||||||
Par value (In dollars per share) | $ 1 | $ 1 | $ 1 | $ 1 | |||||||
Retained Earnings | |||||||||||
Class of Stock [Line Items] | |||||||||||
Dividends declared and paid, preference shares | $ 11,191,000 | 11,191,000 | |||||||||
Dividends declared and paid, common shares | $ 26,468,000 | $ 25,877,000 | |||||||||
Common Shares | |||||||||||
Class of Stock [Line Items] | |||||||||||
Dividends declared per common share (in dollars per share) | $ 0.33 | ||||||||||
Share repurchase program, authorized amount | $ 500,000,000 | ||||||||||
Share repurchase program, shares repurchased (in shares) | 0 | ||||||||||
Share repurchase program, remaining authorized aggregate amount | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | ||||||||
Series C Preference Shares | |||||||||||
Class of Stock [Line Items] | |||||||||||
Dividend rate, percentage | 6.08% | ||||||||||
Liquidation preference per annum (in dollars per share) | $ 1.52 | $ 1.52 | $ 1.52 | ||||||||
Liquidation preference quarterly (in dollars per share) | 0.38 | 0.38 | $ 0.38 | ||||||||
Series E Preference Shares | |||||||||||
Class of Stock [Line Items] | |||||||||||
Dividend rate, percentage | 5.375% | ||||||||||
Liquidation preference per annum (in dollars per share) | 1.34375 | 1.34375 | $ 1.34375 | ||||||||
Liquidation preference quarterly (in dollars per share) | 0.3359375 | 0.3359375 | 0.3359375 | ||||||||
Depositary Shares | |||||||||||
Class of Stock [Line Items] | |||||||||||
Liquidation preference per annum (in dollars per share) | 1.4375 | 1.4375 | 1.4375 | ||||||||
Liquidation preference quarterly (in dollars per share) | $ 0.359375 | $ 0.359375 | $ 0.359375 | ||||||||
Shares issued (In shares) | 10,000,000 | 10,000,000 | 10,000,000 | ||||||||
Redemption price per share (in dollars per share) | $ 25 | $ 25 | $ 25 | ||||||||
Percentage interest in underlying shares | 0.10% | 0.10% | 0.10% | ||||||||
Depositary Shares | Prior To June 30, 2023 | |||||||||||
Class of Stock [Line Items] | |||||||||||
Redemption price per share (in dollars per share) | $ 26 | $ 26 | $ 26 | ||||||||
Series F Preference Shares | |||||||||||
Class of Stock [Line Items] | |||||||||||
Dividend rate, percentage | 5.75% | ||||||||||
Liquidation preference per annum (in dollars per share) | $ 1,437.50 | 1,437.50 | 1,437.50 | ||||||||
Liquidation preference quarterly (in dollars per share) | $ 359.375 | $ 359.375 | $ 359.375 | ||||||||
Shares issued (In shares) | 10,000 | 10,000 | 10,000 | ||||||||
Par value (In dollars per share) | $ 1 | $ 1 | $ 1 | ||||||||
Liquidation preference (in dollars per share) | 25,000 | 25,000 | 25,000 | ||||||||
Redemption price per share (in dollars per share) | 25,000 | 25,000 | 25,000 | ||||||||
Series F Preference Shares | Prior To June 30, 2023 | |||||||||||
Class of Stock [Line Items] | |||||||||||
Redemption price per share (in dollars per share) | $ 26,000 | $ 26,000 | $ 26,000 |
Earnings Per Share (Computation
Earnings Per Share (Computation of Basic and Diluted Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator: | ||||
Net income available to RenaissanceRe common shareholders | $ 191,788 | $ 171,142 | $ 248,501 | $ 263,494 |
Amount allocated to participating common shareholders | (2,174) | (1,585) | (2,583) | (2,526) |
Net income allocated to RenaissanceRe common shareholders | $ 189,614 | $ 169,557 | $ 245,918 | $ 260,968 |
Denominator: | ||||
Denominator for basic income per RenaissanceRe common share - weighted average common shares (in shares) | 39,641 | 39,937 | 39,597 | 40,172 |
Per common share equivalents of employee stock options and restricted shares (in shares) | 13 | 87 | 25 | 152 |
Denominator for diluted income per RenaissanceRe common share - adjusted weighted average common shares and assumed conversions (in shares) | 39,654 | 40,024 | 39,622 | 40,324 |
Net income available to RenaissanceRe common shareholders per common share – basic (in dollars per share) | $ 4.78 | $ 4.25 | $ 6.21 | $ 6.50 |
Net income available to RenaissanceRe common shareholders per common share – diluted (in dollars per share) | $ 4.78 | $ 4.24 | $ 6.21 | $ 6.47 |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Significant Components of the Company's Revenues and Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 977,343 | $ 827,415 | $ 2,136,995 | $ 1,749,505 |
Net premiums written | 604,509 | 555,745 | 1,267,553 | 1,099,881 |
Net premiums earned | 429,385 | 382,265 | 869,667 | 748,310 |
Net claims and claim expenses incurred | 60,167 | 142,587 | 231,870 | 335,668 |
Acquisition expenses | 105,052 | 88,251 | 202,763 | 171,533 |
Operational expenses | 37,543 | 41,766 | 78,815 | 89,049 |
Underwriting income (loss) | 226,623 | 109,661 | 356,219 | 152,060 |
Net investment income | 71,356 | 54,163 | 127,832 | 108,488 |
Net foreign exchange (losses) gains | (10,687) | 3,109 | (6,930) | 11,274 |
Equity in earnings (losses) of other ventures | 5,826 | 5,543 | 6,683 | 4,036 |
Other income (loss) | 1,225 | 2,392 | (17) | 4,057 |
Net realized and unrealized (losses) gains on investments | (17,901) | 58,113 | (100,045) | 101,486 |
Corporate expenses | (8,301) | (4,636) | (15,034) | (9,922) |
Interest expense | (11,768) | (10,091) | (23,535) | (20,617) |
Income before taxes | 256,373 | 218,254 | 345,173 | 350,862 |
Income tax expense | (4,506) | (3,904) | (1,099) | (4,238) |
Net (income) loss attributable to redeemable noncontrolling interests | (54,483) | (37,612) | (84,382) | (71,939) |
Dividends on preference shares | (5,596) | (5,596) | (11,191) | (11,191) |
Net income available to RenaissanceRe common shareholders | 191,788 | 171,142 | 248,501 | 263,494 |
Net claims and claim expenses incurred – current accident year | 216,396 | 187,691 | 419,434 | 351,766 |
Net claims and claim expenses incurred – prior accident years | (156,229) | (45,104) | (187,564) | (16,098) |
Total net incurred | $ 60,167 | $ 142,587 | $ 231,870 | $ 335,668 |
Net claims and claim expense ratio – current accident year | 50.40% | 49.10% | 48.20% | 47.00% |
Net claims and claim expense ratio – prior accident years | (36.40%) | (11.80%) | (21.50%) | (2.10%) |
Net claims and claim expense ratio – calendar year | 14.00% | 37.30% | 26.70% | 44.90% |
Underwriting expense ratio | 33.20% | 34.00% | 32.30% | 34.80% |
Combined ratio | 47.20% | 71.30% | 59.00% | 79.70% |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 0 | $ 0 | $ 0 | $ 0 |
Net premiums written | 0 | 0 | 0 | 0 |
Net premiums earned | 0 | 2 | 0 | 0 |
Net claims and claim expenses incurred | (88) | (227) | (70) | (555) |
Acquisition expenses | 1 | (1) | 1 | (1) |
Operational expenses | 181 | 1 | 314 | 12 |
Underwriting income (loss) | (94) | 229 | (245) | 544 |
Net investment income | 71,356 | 54,163 | 127,832 | 108,488 |
Net foreign exchange (losses) gains | (10,687) | 3,109 | (6,930) | 11,274 |
Equity in earnings (losses) of other ventures | 5,826 | 5,543 | 6,683 | 4,036 |
Other income (loss) | 1,225 | 2,392 | (17) | 4,057 |
Net realized and unrealized (losses) gains on investments | (17,901) | 58,113 | (100,045) | 101,486 |
Corporate expenses | (8,301) | (4,636) | (15,034) | (9,922) |
Interest expense | (11,768) | (10,091) | (23,535) | (20,617) |
Income tax expense | (4,506) | (3,904) | (1,099) | (4,238) |
Net (income) loss attributable to redeemable noncontrolling interests | (54,483) | (37,612) | (84,382) | (71,939) |
Dividends on preference shares | (5,596) | (5,596) | (11,191) | (11,191) |
Net claims and claim expenses incurred – current accident year | 0 | 0 | 0 | 0 |
Net claims and claim expenses incurred – prior accident years | (88) | (227) | (70) | (555) |
Total net incurred | (88) | (227) | (70) | (555) |
Property | ||||
Segment Reporting Information [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (170,707) | (24,800) | ||
Property | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | 552,627 | 499,347 | 1,259,595 | 1,019,876 |
Net premiums written | 297,832 | 336,464 | 651,909 | 626,335 |
Net premiums earned | 204,138 | 192,198 | 429,187 | 379,186 |
Net claims and claim expenses incurred | (74,269) | 33,017 | (43,662) | 71,855 |
Acquisition expenses | 40,850 | 28,500 | 81,571 | 57,603 |
Operational expenses | 23,810 | 24,053 | 50,356 | 51,718 |
Underwriting income (loss) | 213,747 | 106,628 | 340,922 | 198,010 |
Net claims and claim expenses incurred – current accident year | 68,876 | 56,889 | 127,045 | 96,655 |
Net claims and claim expenses incurred – prior accident years | (143,145) | (23,872) | (170,707) | (24,800) |
Total net incurred | $ (74,269) | $ 33,017 | $ (43,662) | $ 71,855 |
Net claims and claim expense ratio – current accident year | 33.70% | 29.60% | 29.60% | 25.50% |
Net claims and claim expense ratio – prior accident years | (70.10%) | (12.40%) | (39.80%) | (6.60%) |
Net claims and claim expense ratio – calendar year | (36.40%) | 17.20% | (10.20%) | 18.90% |
Underwriting expense ratio | 31.70% | 27.30% | 30.80% | 28.90% |
Combined ratio | (4.70%) | 44.50% | 20.60% | 47.80% |
Casualty and Specialty | ||||
Segment Reporting Information [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | $ (16,787) | $ 9,257 | ||
Casualty and Specialty | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 424,716 | $ 328,068 | 877,400 | 729,629 |
Net premiums written | 306,677 | 219,281 | 615,644 | 473,546 |
Net premiums earned | 225,247 | 190,065 | 440,480 | 369,124 |
Net claims and claim expenses incurred | 134,524 | 109,797 | 275,602 | 264,368 |
Acquisition expenses | 64,201 | 59,752 | 121,191 | 113,931 |
Operational expenses | 13,552 | 17,712 | 28,145 | 37,319 |
Underwriting income (loss) | 12,970 | 2,804 | 15,542 | (46,494) |
Net claims and claim expenses incurred – current accident year | 147,520 | 130,802 | 292,389 | 255,111 |
Net claims and claim expenses incurred – prior accident years | (12,996) | (21,005) | (16,787) | 9,257 |
Total net incurred | $ 134,524 | $ 109,797 | $ 275,602 | $ 264,368 |
Net claims and claim expense ratio – current accident year | 65.50% | 68.80% | 66.40% | 69.10% |
Net claims and claim expense ratio – prior accident years | (5.80%) | (11.00%) | (3.80%) | 2.50% |
Net claims and claim expense ratio – calendar year | 59.70% | 57.80% | 62.60% | 71.60% |
Underwriting expense ratio | 34.50% | 40.70% | 33.90% | 41.00% |
Combined ratio | 94.20% | 98.50% | 96.50% | 112.60% |
Derivative Instruments (Consoli
Derivative Instruments (Consolidated Balance Sheets and Fair Value of the Principal Derivative Instruments) (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Other assets | ||
Derivative Assets | ||
Gross Amounts of Recognized Assets | $ 9,562 | $ 6,530 |
Gross Amounts Offset in the Balance Sheet | 86 | 893 |
Net Amounts of Assets Presented in the Balance Sheet | 9,476 | 5,637 |
Collateral | 0 | 0 |
Net Amount | 9,476 | 5,637 |
Other assets | Interest rate futures | ||
Derivative Assets | ||
Gross Amounts of Recognized Assets | 81 | 684 |
Gross Amounts Offset in the Balance Sheet | 81 | 524 |
Net Amounts of Assets Presented in the Balance Sheet | 0 | 160 |
Collateral | 0 | 0 |
Net Amount | 0 | 160 |
Other assets | Interest rate swaps | ||
Derivative Assets | ||
Gross Amounts of Recognized Assets | 573 | 424 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented in the Balance Sheet | 573 | 424 |
Collateral | 0 | 0 |
Net Amount | 573 | 424 |
Other assets | Foreign currency forward contracts, underwriting and non-investment operations | ||
Derivative Assets | ||
Gross Amounts of Recognized Assets | 6,687 | 3,865 |
Gross Amounts Offset in the Balance Sheet | 0 | 358 |
Net Amounts of Assets Presented in the Balance Sheet | 6,687 | 3,507 |
Collateral | 0 | 0 |
Net Amount | 6,687 | 3,507 |
Other assets | Foreign currency forward contracts, investment operations | ||
Derivative Assets | ||
Gross Amounts of Recognized Assets | 1,759 | 39 |
Gross Amounts Offset in the Balance Sheet | 5 | 11 |
Net Amounts of Assets Presented in the Balance Sheet | 1,754 | 28 |
Collateral | 0 | 0 |
Net Amount | 1,754 | 28 |
Other assets | Credit default swaps | ||
Derivative Assets | ||
Gross Amounts of Recognized Assets | 462 | 1,518 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented in the Balance Sheet | 462 | 1,518 |
Collateral | 0 | 0 |
Net Amount | 462 | 1,518 |
Other liabilities | ||
Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 13,869 | 1,536 |
Gross Amounts Offset in the Balance Sheet | 2,232 | 535 |
Net Amounts of Liabilities Presented in the Balance Sheet | 11,637 | 1,001 |
Collateral Pledged | 95 | 227 |
Net Amount | 11,542 | 774 |
Other liabilities | Interest rate futures | ||
Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 176 | 729 |
Gross Amounts Offset in the Balance Sheet | 81 | 524 |
Net Amounts of Liabilities Presented in the Balance Sheet | 95 | 205 |
Collateral Pledged | 95 | 205 |
Net Amount | 0 | 0 |
Other liabilities | Foreign currency forward contracts, underwriting and non-investment operations | ||
Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 13,100 | 670 |
Gross Amounts Offset in the Balance Sheet | 2,146 | 0 |
Net Amounts of Liabilities Presented in the Balance Sheet | 10,954 | 670 |
Collateral Pledged | 0 | 0 |
Net Amount | 10,954 | 670 |
Other liabilities | Foreign currency forward contracts, investment operations | ||
Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 593 | 115 |
Gross Amounts Offset in the Balance Sheet | 5 | 11 |
Net Amounts of Liabilities Presented in the Balance Sheet | 588 | 104 |
Collateral Pledged | 0 | 0 |
Net Amount | $ 588 | 104 |
Other liabilities | Credit default swaps | ||
Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 22 | |
Gross Amounts Offset in the Balance Sheet | 0 | |
Net Amounts of Liabilities Presented in the Balance Sheet | 22 | |
Collateral Pledged | 22 | |
Net Amount | $ 0 |
Derivative Instruments (Gain (L
Derivative Instruments (Gain (Loss) Recognized in the Consolidated Statements of Operations Related to its Derivative Instruments) (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized on derivatives | $ (3,993) | $ 4,688 | $ (2,305) | $ 5,059 |
Net realized and unrealized (losses) gains on investments | Interest rate futures | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized on derivatives | (87) | (890) | (2,424) | (1,048) |
Net realized and unrealized (losses) gains on investments | Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized on derivatives | 241 | 0 | 135 | 0 |
Net realized and unrealized (losses) gains on investments | Credit default swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized on derivatives | 884 | 622 | (1,037) | 724 |
Net foreign exchange (losses) gains | Foreign currency forward contracts, underwriting and non-investment operations | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized on derivatives | (6,374) | 5,223 | 369 | 6,283 |
Net foreign exchange (losses) gains | Foreign currency forward contracts, investment operations | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized on derivatives | $ 1,343 | $ (267) | $ 652 | $ (900) |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - Not Designated as Hedging Instrument - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Interest rate futures | Long | ||
Derivative [Line Items] | ||
Notional amount | $ 1,100,000,000 | $ 1,500,000,000 |
Interest rate futures | Short | ||
Derivative [Line Items] | ||
Notional amount | 398,600,000 | 801,100,000 |
Interest rate swaps | US Dollars | Paying a Fixed Rate | ||
Derivative [Line Items] | ||
Notional amount | 38,800,000 | 40,300,000 |
Interest rate swaps | US Dollars | Receiving a Fixed Rate | ||
Derivative [Line Items] | ||
Notional amount | 25,500,000 | 0 |
Foreign currency forward contracts, underwriting and non-investment operations | Long | ||
Derivative [Line Items] | ||
Notional amount | 401,200,000 | 215,400,000 |
Foreign currency forward contracts, underwriting and non-investment operations | Short | ||
Derivative [Line Items] | ||
Notional amount | 513,400,000 | 44,200,000 |
Foreign currency forward contracts, investment operations | Long | ||
Derivative [Line Items] | ||
Notional amount | 91,800,000 | 16,600,000 |
Foreign currency forward contracts, investment operations | Short | ||
Derivative [Line Items] | ||
Notional amount | 49,400,000 | 5,100,000 |
Credit default swaps | Long | ||
Derivative [Line Items] | ||
Notional amount | 1,000,000 | 1,000,000 |
Credit default swaps | Short | ||
Derivative [Line Items] | ||
Notional amount | $ 99,600,000 | $ 18,800,000 |
Condensed Consolidating Finan65
Condensed Consolidating Financial Information Provided in Connection with Outstanding Debt of Subsidiaries (Condensed Consolidating Balance Sheet) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Assets | ||||
Total investments | $ 10,710,660 | $ 9,503,439 | ||
Cash and cash equivalents | 548,472 | 1,361,592 | $ 623,150 | $ 421,157 |
Investments in subsidiaries | 0 | 0 | ||
Due from subsidiaries and affiliates | 0 | 0 | ||
Premiums receivable | 1,959,647 | 1,304,622 | ||
Prepaid reinsurance premiums | 925,501 | 533,546 | ||
Reinsurance recoverable | 1,454,991 | 1,586,630 | 370,586 | |
Accrued investment income | 44,810 | 42,235 | ||
Deferred acquisition costs | 511,155 | 426,551 | ||
Receivable for investments sold | 505,907 | 103,145 | ||
Other assets | 122,048 | 121,226 | ||
Goodwill and other intangible assets | 240,187 | 243,145 | ||
Total assets | 17,023,378 | 15,226,131 | ||
Liabilities | ||||
Reserve for claims and claim expenses | 4,702,345 | 5,080,408 | 2,989,806 | |
Unearned premiums | 2,267,450 | 1,477,609 | ||
Debt | 990,371 | 989,623 | ||
Amounts due to subsidiaries and affiliates | 0 | 0 | ||
Reinsurance balances payable | 2,085,034 | 989,090 | ||
Payable for investments purchased | 490,589 | 208,749 | ||
Other liabilities | 134,100 | 792,771 | ||
Total liabilities | 10,669,889 | 9,538,250 | ||
Redeemable noncontrolling interests | 1,493,428 | 1,296,506 | ||
Shareholders’ Equity | ||||
Total shareholders’ equity | 4,860,061 | 4,391,375 | 4,955,255 | |
Total liabilities, noncontrolling interests and shareholders’ equity | 17,023,378 | 15,226,131 | ||
Reportable Legal Entities | RenRe North America Holdings Inc. (Subsidiary Issuer) | ||||
Assets | ||||
Total investments | 114,609 | 129,732 | ||
Cash and cash equivalents | 12 | 139 | 276 | 162 |
Investments in subsidiaries | 54,479 | 36,140 | ||
Due from subsidiaries and affiliates | 91,891 | 91,891 | ||
Premiums receivable | 0 | 0 | ||
Prepaid reinsurance premiums | 0 | 0 | ||
Reinsurance recoverable | 0 | 0 | ||
Accrued investment income | 318 | 428 | ||
Deferred acquisition costs | 0 | 0 | ||
Receivable for investments sold | 68 | 51 | ||
Other assets | 20,798 | 21,342 | ||
Goodwill and other intangible assets | 0 | 0 | ||
Total assets | 282,175 | 279,723 | ||
Liabilities | ||||
Reserve for claims and claim expenses | 0 | 0 | ||
Unearned premiums | 0 | 0 | ||
Debt | 0 | 0 | ||
Amounts due to subsidiaries and affiliates | 104 | 54 | ||
Reinsurance balances payable | 0 | 0 | ||
Payable for investments purchased | 32 | 0 | ||
Other liabilities | 694 | 1,053 | ||
Total liabilities | 830 | 1,107 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Shareholders’ Equity | ||||
Total shareholders’ equity | 281,345 | 278,616 | ||
Total liabilities, noncontrolling interests and shareholders’ equity | 282,175 | 279,723 | ||
Reportable Legal Entities | RenaissanceRe Finance, Inc. (Subsidiary Issuer) | ||||
Assets | ||||
Total investments | 16,683 | 31,255 | ||
Cash and cash equivalents | 4,745 | 1,469 | 8,356 | 9,397 |
Investments in subsidiaries | 1,159,014 | 1,141,733 | ||
Due from subsidiaries and affiliates | 0 | 0 | ||
Premiums receivable | 0 | 0 | ||
Prepaid reinsurance premiums | 0 | 0 | ||
Reinsurance recoverable | 0 | 0 | ||
Accrued investment income | 71 | 82 | ||
Deferred acquisition costs | 0 | 0 | ||
Receivable for investments sold | 0 | 8 | ||
Other assets | 433,500 | 430,481 | ||
Goodwill and other intangible assets | 0 | 0 | ||
Total assets | 1,614,013 | 1,605,028 | ||
Liabilities | ||||
Reserve for claims and claim expenses | 0 | 0 | ||
Unearned premiums | 0 | 0 | ||
Debt | 842,486 | 841,892 | ||
Amounts due to subsidiaries and affiliates | 114,127 | 92,794 | ||
Reinsurance balances payable | 0 | 0 | ||
Payable for investments purchased | 0 | 0 | ||
Other liabilities | 13,945 | 14,117 | ||
Total liabilities | 970,558 | 948,803 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Shareholders’ Equity | ||||
Total shareholders’ equity | 643,455 | 656,225 | ||
Total liabilities, noncontrolling interests and shareholders’ equity | 1,614,013 | 1,605,028 | ||
Reportable Legal Entities | RenaissanceRe Holdings Ltd. (Parent Guarantor) | ||||
Assets | ||||
Total investments | 99,651 | 225,266 | ||
Cash and cash equivalents | 2,502 | 14,656 | 2,417 | 7,067 |
Investments in subsidiaries | 4,289,987 | 4,105,760 | ||
Due from subsidiaries and affiliates | 139,503 | 4,602 | ||
Premiums receivable | 0 | 0 | ||
Prepaid reinsurance premiums | 0 | 0 | ||
Reinsurance recoverable | 0 | 0 | ||
Accrued investment income | 406 | 405 | ||
Deferred acquisition costs | 0 | 0 | ||
Receivable for investments sold | 195,242 | 135 | ||
Other assets | 444,328 | 433,468 | ||
Goodwill and other intangible assets | 122,644 | 124,960 | ||
Total assets | 5,294,263 | 4,909,252 | ||
Liabilities | ||||
Reserve for claims and claim expenses | 0 | 0 | ||
Unearned premiums | 0 | 0 | ||
Debt | 417,000 | 417,000 | ||
Amounts due to subsidiaries and affiliates | 5,276 | 82,579 | ||
Reinsurance balances payable | 0 | 0 | ||
Payable for investments purchased | 0 | 0 | ||
Other liabilities | 11,926 | 18,298 | ||
Total liabilities | 434,202 | 517,877 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Shareholders’ Equity | ||||
Total shareholders’ equity | 4,860,061 | 4,391,375 | ||
Total liabilities, noncontrolling interests and shareholders’ equity | 5,294,263 | 4,909,252 | ||
Reportable Legal Entities | Other RenaissanceRe Holdings Ltd. Subsidiaries And Eliminations (Non-Guarantor Subsidiaries) | ||||
Assets | ||||
Total investments | 10,479,717 | 9,117,186 | ||
Cash and cash equivalents | 541,213 | 1,345,328 | $ 588,115 | $ 397,860 |
Investments in subsidiaries | 0 | 0 | ||
Due from subsidiaries and affiliates | 0 | 0 | ||
Premiums receivable | 1,959,647 | 1,304,622 | ||
Prepaid reinsurance premiums | 925,501 | 533,546 | ||
Reinsurance recoverable | 1,454,991 | 1,586,630 | ||
Accrued investment income | 44,015 | 41,320 | ||
Deferred acquisition costs | 511,155 | 426,551 | ||
Receivable for investments sold | 310,597 | 102,951 | ||
Other assets | 83,597 | 76,703 | ||
Goodwill and other intangible assets | 117,543 | 118,185 | ||
Total assets | 16,427,976 | 14,653,022 | ||
Liabilities | ||||
Reserve for claims and claim expenses | 4,702,345 | 5,080,408 | ||
Unearned premiums | 2,267,450 | 1,477,609 | ||
Debt | 147,885 | 147,731 | ||
Amounts due to subsidiaries and affiliates | 0 | 0 | ||
Reinsurance balances payable | 2,085,034 | 989,090 | ||
Payable for investments purchased | 490,557 | 208,749 | ||
Other liabilities | 120,523 | 764,432 | ||
Total liabilities | 9,813,794 | 8,668,019 | ||
Redeemable noncontrolling interests | 1,493,428 | 1,296,506 | ||
Shareholders’ Equity | ||||
Total shareholders’ equity | 5,120,754 | 4,688,497 | ||
Total liabilities, noncontrolling interests and shareholders’ equity | 16,427,976 | 14,653,022 | ||
Consolidating Adjustments | ||||
Assets | ||||
Total investments | 0 | 0 | ||
Cash and cash equivalents | 0 | 0 | ||
Investments in subsidiaries | (5,503,480) | (5,283,633) | ||
Due from subsidiaries and affiliates | (231,394) | (96,493) | ||
Premiums receivable | 0 | 0 | ||
Prepaid reinsurance premiums | 0 | 0 | ||
Reinsurance recoverable | 0 | 0 | ||
Accrued investment income | 0 | 0 | ||
Deferred acquisition costs | 0 | 0 | ||
Receivable for investments sold | 0 | 0 | ||
Other assets | (860,175) | (840,768) | ||
Goodwill and other intangible assets | 0 | 0 | ||
Total assets | (6,595,049) | (6,220,894) | ||
Liabilities | ||||
Reserve for claims and claim expenses | 0 | 0 | ||
Unearned premiums | 0 | 0 | ||
Debt | (417,000) | (417,000) | ||
Amounts due to subsidiaries and affiliates | (119,507) | (175,427) | ||
Reinsurance balances payable | 0 | 0 | ||
Payable for investments purchased | 0 | 0 | ||
Other liabilities | (12,988) | (5,129) | ||
Total liabilities | (549,495) | (597,556) | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Shareholders’ Equity | ||||
Total shareholders’ equity | (6,045,554) | (5,623,338) | ||
Total liabilities, noncontrolling interests and shareholders’ equity | $ (6,595,049) | $ (6,220,894) |
Condensed Consolidating Finan66
Condensed Consolidating Financial Information Provided in Connection with Outstanding Debt of Subsidiaries (Condensed Consolidating Statement of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues | ||||
Net premiums earned | $ 429,385 | $ 382,265 | $ 869,667 | $ 748,310 |
Net investment income | 71,356 | 54,163 | 127,832 | 108,488 |
Net foreign exchange (losses) gains | (10,687) | 3,109 | (6,930) | 11,274 |
Equity in earnings of other ventures | 5,826 | 5,543 | 6,683 | 4,036 |
Other income (loss) | 1,225 | 2,392 | (17) | 4,057 |
Net realized and unrealized (losses) gains on investments | (17,901) | 58,113 | (100,045) | 101,486 |
Total revenues | 479,204 | 505,585 | 897,190 | 977,651 |
Expenses | ||||
Net claims and claim expenses incurred | 60,167 | 142,587 | 231,870 | 335,668 |
Acquisition expenses | 105,052 | 88,251 | 202,763 | 171,533 |
Operational expenses | 37,543 | 41,766 | 78,815 | 89,049 |
Corporate expenses | 8,301 | 4,636 | 15,034 | 9,922 |
Interest expense | 11,768 | 10,091 | 23,535 | 20,617 |
Total expenses | 222,831 | 287,331 | 552,017 | 626,789 |
(Loss) income before equity in net income (loss) of subsidiaries and taxes | 256,373 | 218,254 | 345,173 | 350,862 |
Equity in net income (loss) of subsidiaries | 0 | 0 | 0 | 0 |
Income before taxes | 256,373 | 218,254 | 345,173 | 350,862 |
Income tax expense | (4,506) | (3,904) | (1,099) | (4,238) |
Net income | 251,867 | 214,350 | 344,074 | 346,624 |
Net (income) loss attributable to redeemable noncontrolling interests | (54,483) | (37,612) | (84,382) | (71,939) |
Net income attributable to RenaissanceRe | 197,384 | 176,738 | 259,692 | 274,685 |
Dividends on preference shares | (5,596) | (5,596) | (11,191) | (11,191) |
Net income available to RenaissanceRe common shareholders | 191,788 | 171,142 | 248,501 | 263,494 |
Reportable Legal Entities | RenRe North America Holdings Inc. (Subsidiary Issuer) | ||||
Revenues | ||||
Net premiums earned | 0 | 0 | 0 | 0 |
Net investment income | 577 | 466 | 1,090 | 892 |
Net foreign exchange (losses) gains | 0 | 0 | 0 | 0 |
Equity in earnings of other ventures | 0 | 0 | 0 | 0 |
Other income (loss) | 0 | 0 | 0 | 0 |
Net realized and unrealized (losses) gains on investments | 1,713 | 1,421 | 427 | 4,342 |
Total revenues | 2,290 | 1,887 | 1,517 | 5,234 |
Expenses | ||||
Net claims and claim expenses incurred | 0 | 0 | 0 | 0 |
Acquisition expenses | 0 | 0 | 0 | 0 |
Operational expenses | 21 | 16 | 31 | 40 |
Corporate expenses | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Total expenses | 21 | 16 | 31 | 40 |
(Loss) income before equity in net income (loss) of subsidiaries and taxes | 2,269 | 1,871 | 1,486 | 5,194 |
Equity in net income (loss) of subsidiaries | 716 | 1,220 | 1,550 | 2,306 |
Income before taxes | 2,985 | 3,091 | 3,036 | 7,500 |
Income tax expense | (468) | (584) | (247) | (1,682) |
Net income | 2,517 | 2,507 | 2,789 | 5,818 |
Net (income) loss attributable to redeemable noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to RenaissanceRe | 2,517 | 2,507 | 2,789 | 5,818 |
Dividends on preference shares | 0 | 0 | 0 | 0 |
Net income available to RenaissanceRe common shareholders | 2,517 | 2,507 | 2,789 | 5,818 |
Reportable Legal Entities | Platinum Underwriters Finance, Inc. (Subsidiary Issuer) | ||||
Revenues | ||||
Net premiums earned | 0 | 0 | ||
Net investment income | 535 | 1,376 | ||
Net foreign exchange (losses) gains | 0 | 0 | ||
Equity in earnings of other ventures | 0 | 0 | ||
Other income (loss) | 0 | 0 | ||
Net realized and unrealized (losses) gains on investments | 191 | 4,916 | ||
Total revenues | 726 | 6,292 | ||
Expenses | ||||
Net claims and claim expenses incurred | 0 | 0 | ||
Acquisition expenses | 0 | 0 | ||
Operational expenses | 35 | 85 | ||
Corporate expenses | 0 | 0 | ||
Interest expense | 985 | 2,461 | ||
Total expenses | 1,020 | 2,546 | ||
(Loss) income before equity in net income (loss) of subsidiaries and taxes | (294) | 3,746 | ||
Equity in net income (loss) of subsidiaries | 18,185 | 28,028 | ||
Income before taxes | 17,891 | 31,774 | ||
Income tax expense | 104 | (1,204) | ||
Net income | 17,995 | 30,570 | ||
Net (income) loss attributable to redeemable noncontrolling interests | 0 | 0 | ||
Net income attributable to RenaissanceRe | 17,995 | 30,570 | ||
Dividends on preference shares | 0 | 0 | ||
Net income available to RenaissanceRe common shareholders | 17,995 | 30,570 | ||
Reportable Legal Entities | RenaissanceRe Finance, Inc. (Subsidiary Issuer) | ||||
Revenues | ||||
Net premiums earned | 0 | 0 | 0 | 0 |
Net investment income | 1,206 | 239 | 2,440 | 508 |
Net foreign exchange (losses) gains | 0 | 0 | 0 | 0 |
Equity in earnings of other ventures | 544 | 302 | 1,755 | (450) |
Other income (loss) | 0 | 0 | 0 | 0 |
Net realized and unrealized (losses) gains on investments | (67) | (242) | (326) | (268) |
Total revenues | 1,683 | 299 | 3,869 | (210) |
Expenses | ||||
Net claims and claim expenses incurred | 0 | 0 | 0 | 0 |
Acquisition expenses | 0 | 0 | 0 | 0 |
Operational expenses | 8,174 | 6,647 | 19,244 | 14,626 |
Corporate expenses | 7 | 0 | 7 | 0 |
Interest expense | 9,254 | 6,601 | 18,506 | 13,143 |
Total expenses | 17,435 | 13,248 | 37,757 | 27,769 |
(Loss) income before equity in net income (loss) of subsidiaries and taxes | (15,752) | (12,949) | (33,888) | (27,979) |
Equity in net income (loss) of subsidiaries | 21,152 | 20,438 | 17,339 | 36,936 |
Income before taxes | 5,400 | 7,489 | (16,549) | 8,957 |
Income tax expense | 2,022 | 2,902 | 3,837 | 5,974 |
Net income | 7,422 | 10,391 | (12,712) | 14,931 |
Net (income) loss attributable to redeemable noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to RenaissanceRe | 7,422 | 10,391 | (12,712) | 14,931 |
Dividends on preference shares | 0 | 0 | 0 | 0 |
Net income available to RenaissanceRe common shareholders | 7,422 | 10,391 | (12,712) | 14,931 |
Reportable Legal Entities | RenaissanceRe Holdings Ltd. (Parent Guarantor) | ||||
Revenues | ||||
Net premiums earned | 0 | 0 | 0 | 0 |
Net investment income | 5,927 | 5,284 | 11,962 | 10,741 |
Net foreign exchange (losses) gains | (1) | (1) | (4) | (1) |
Equity in earnings of other ventures | 0 | 0 | 0 | 0 |
Other income (loss) | 0 | 0 | 0 | (1) |
Net realized and unrealized (losses) gains on investments | 16 | (8) | (645) | 45 |
Total revenues | 5,942 | 5,275 | 11,313 | 10,784 |
Expenses | ||||
Net claims and claim expenses incurred | 0 | 0 | 0 | 0 |
Acquisition expenses | 0 | 0 | 0 | 0 |
Operational expenses | 2,668 | 3,190 | 3,981 | 6,488 |
Corporate expenses | 5,036 | 4,798 | 8,720 | 10,006 |
Interest expense | 1,108 | 141 | 2,216 | 281 |
Total expenses | 8,812 | 8,129 | 14,917 | 16,775 |
(Loss) income before equity in net income (loss) of subsidiaries and taxes | (2,870) | (2,854) | (3,604) | (5,991) |
Equity in net income (loss) of subsidiaries | 202,525 | 178,746 | 264,951 | 280,099 |
Income before taxes | 199,655 | 175,892 | 261,347 | 274,108 |
Income tax expense | (2,271) | 846 | (1,655) | 577 |
Net income | 197,384 | 176,738 | 259,692 | 274,685 |
Net (income) loss attributable to redeemable noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to RenaissanceRe | 197,384 | 176,738 | 259,692 | 274,685 |
Dividends on preference shares | (5,596) | (5,596) | (11,191) | (11,191) |
Net income available to RenaissanceRe common shareholders | 191,788 | 171,142 | 248,501 | 263,494 |
Reportable Legal Entities | Other RenaissanceRe Holdings Ltd. Subsidiaries And Eliminations (Non-Guarantor Subsidiaries) | ||||
Revenues | ||||
Net premiums earned | 429,385 | 382,265 | 869,667 | 748,310 |
Net investment income | 71,257 | 53,891 | 127,562 | 107,474 |
Net foreign exchange (losses) gains | (10,686) | 3,110 | (6,942) | 11,275 |
Equity in earnings of other ventures | 5,282 | 5,241 | 4,928 | 4,486 |
Other income (loss) | 1,225 | 2,392 | (17) | 4,058 |
Net realized and unrealized (losses) gains on investments | (19,563) | 56,751 | (99,501) | 92,451 |
Total revenues | 476,900 | 503,650 | 895,697 | 968,054 |
Expenses | ||||
Net claims and claim expenses incurred | 60,167 | 142,587 | 231,870 | 335,668 |
Acquisition expenses | 105,052 | 88,251 | 202,763 | 171,533 |
Operational expenses | 33,106 | 36,402 | 71,039 | 78,460 |
Corporate expenses | 3,258 | (162) | 6,307 | (84) |
Interest expense | 2,514 | 2,505 | 5,029 | 5,013 |
Total expenses | 204,097 | 269,583 | 517,008 | 590,590 |
(Loss) income before equity in net income (loss) of subsidiaries and taxes | 272,803 | 234,067 | 378,689 | 377,464 |
Equity in net income (loss) of subsidiaries | 0 | 0 | 0 | 0 |
Income before taxes | 272,803 | 234,067 | 378,689 | 377,464 |
Income tax expense | (3,789) | (7,172) | (3,034) | (7,903) |
Net income | 269,014 | 226,895 | 375,655 | 369,561 |
Net (income) loss attributable to redeemable noncontrolling interests | (54,483) | (37,612) | (84,382) | (71,939) |
Net income attributable to RenaissanceRe | 214,531 | 189,283 | 291,273 | 297,622 |
Dividends on preference shares | 0 | 0 | 0 | 0 |
Net income available to RenaissanceRe common shareholders | 214,531 | 189,283 | 291,273 | 297,622 |
Consolidating Adjustments | ||||
Revenues | ||||
Net premiums earned | 0 | 0 | 0 | 0 |
Net investment income | (7,611) | (6,252) | (15,222) | (12,503) |
Net foreign exchange (losses) gains | 0 | 0 | 0 | 0 |
Equity in earnings of other ventures | 0 | 0 | 0 | 0 |
Other income (loss) | 0 | 0 | 0 | 0 |
Net realized and unrealized (losses) gains on investments | 0 | 0 | 0 | 0 |
Total revenues | (7,611) | (6,252) | (15,222) | (12,503) |
Expenses | ||||
Net claims and claim expenses incurred | 0 | 0 | 0 | 0 |
Acquisition expenses | 0 | 0 | 0 | 0 |
Operational expenses | (6,426) | (4,524) | (15,480) | (10,650) |
Corporate expenses | 0 | 0 | 0 | 0 |
Interest expense | (1,108) | (141) | (2,216) | (281) |
Total expenses | (7,534) | (4,665) | (17,696) | (10,931) |
(Loss) income before equity in net income (loss) of subsidiaries and taxes | (77) | (1,587) | 2,474 | (1,572) |
Equity in net income (loss) of subsidiaries | (224,393) | (218,589) | (283,840) | (347,369) |
Income before taxes | (224,470) | (220,176) | (281,366) | (348,941) |
Income tax expense | 0 | 0 | 0 | 0 |
Net income | (224,470) | (220,176) | (281,366) | (348,941) |
Net (income) loss attributable to redeemable noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to RenaissanceRe | (224,470) | (220,176) | (281,366) | (348,941) |
Dividends on preference shares | 0 | 0 | 0 | 0 |
Net income available to RenaissanceRe common shareholders | $ (224,470) | $ (220,176) | $ (281,366) | $ (348,941) |
Condensed Consolidating Finan67
Condensed Consolidating Financial Information Provided in Connection with Outstanding Debt of Subsidiaries (Condensed Consolidating Statement of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net (loss) income | $ 251,867 | $ 214,350 | $ 344,074 | $ 346,624 |
Change in net unrealized gains on investments | (1,295) | 219 | (1,325) | (1,272) |
Comprehensive income | 250,572 | 214,569 | 342,749 | 345,352 |
Net income (loss) attributable to redeemable noncontrolling interests | (54,483) | (37,612) | (84,382) | (71,939) |
Comprehensive loss attributable to redeemable noncontrolling interests | (54,483) | (37,612) | (84,382) | (71,939) |
Comprehensive income attributable to RenaissanceRe | 196,089 | 176,957 | 258,367 | 273,413 |
Reportable Legal Entities | RenRe North America Holdings Inc. (Subsidiary Issuer) | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net (loss) income | 2,517 | 2,507 | 2,789 | 5,818 |
Change in net unrealized gains on investments | 0 | 0 | 0 | 0 |
Comprehensive income | 2,517 | 2,507 | 2,789 | 5,818 |
Net income (loss) attributable to redeemable noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive loss attributable to redeemable noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to RenaissanceRe | 2,517 | 2,507 | 2,789 | 5,818 |
Reportable Legal Entities | Platinum Underwriters Finance, Inc. (Subsidiary Issuer) | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net (loss) income | 17,995 | 30,570 | ||
Change in net unrealized gains on investments | 0 | 0 | ||
Comprehensive income | 17,995 | 30,570 | ||
Net income (loss) attributable to redeemable noncontrolling interests | 0 | 0 | ||
Comprehensive loss attributable to redeemable noncontrolling interests | 0 | 0 | ||
Comprehensive income attributable to RenaissanceRe | 17,995 | 30,570 | ||
Reportable Legal Entities | RenaissanceRe Finance, Inc. (Subsidiary Issuer) | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net (loss) income | 7,422 | 10,391 | (12,712) | 14,931 |
Change in net unrealized gains on investments | 0 | 0 | 0 | 0 |
Comprehensive income | 7,422 | 10,391 | (12,712) | 14,931 |
Net income (loss) attributable to redeemable noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive loss attributable to redeemable noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to RenaissanceRe | 7,422 | 10,391 | (12,712) | 14,931 |
Reportable Legal Entities | RenaissanceRe Holdings Ltd. (Parent Guarantor) | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net (loss) income | 197,384 | 176,738 | 259,692 | 274,685 |
Change in net unrealized gains on investments | 0 | 0 | 0 | 0 |
Comprehensive income | 197,384 | 176,738 | 259,692 | 274,685 |
Net income (loss) attributable to redeemable noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive loss attributable to redeemable noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to RenaissanceRe | 197,384 | 176,738 | 259,692 | 274,685 |
Reportable Legal Entities | Other RenaissanceRe Holdings Ltd. Subsidiaries And Eliminations (Non-Guarantor Subsidiaries) | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net (loss) income | 269,014 | 226,895 | 375,655 | 369,561 |
Change in net unrealized gains on investments | (1,295) | 219 | (1,325) | (1,272) |
Comprehensive income | 267,719 | 227,114 | 374,330 | 368,289 |
Net income (loss) attributable to redeemable noncontrolling interests | (54,483) | (37,612) | (84,382) | (71,939) |
Comprehensive loss attributable to redeemable noncontrolling interests | (54,483) | (37,612) | (84,382) | (71,939) |
Comprehensive income attributable to RenaissanceRe | 213,236 | 189,502 | 289,948 | 296,350 |
Consolidating Adjustments | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net (loss) income | (224,470) | (220,176) | (281,366) | (348,941) |
Change in net unrealized gains on investments | 0 | 0 | 0 | 0 |
Comprehensive income | (224,470) | (220,176) | (281,366) | (348,941) |
Net income (loss) attributable to redeemable noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive loss attributable to redeemable noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to RenaissanceRe | $ (224,470) | $ (220,176) | $ (281,366) | $ (348,941) |
Condensed Consolidating Finan68
Condensed Consolidating Financial Information Provided in Connection with Outstanding Debt of Subsidiaries (Condensed Consolidating Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows (used in) provided by operating activities | ||
Net cash (used in) provided by operating activities | $ 349,111 | $ 321,023 |
Cash flows (used in) provided by investing activities | ||
Proceeds from sales and maturities of fixed maturity investments trading | 4,813,208 | 5,163,972 |
Purchases of fixed maturity investments trading | (5,014,011) | (5,451,362) |
Net purchases of equity investments trading | (34,298) | 46,305 |
Net (purchases) sales of short term investments | (1,062,422) | 276,075 |
Net purchases of other investments | (111,921) | 2,551 |
Net purchases of investments in other ventures | (20,952) | 0 |
Return of investment from investment in other ventures | 8,464 | 20,000 |
Dividends and return of capital from subsidiaries | 0 | 0 |
Contributions to subsidiaries | 0 | 0 |
Due (from) to subsidiary | 0 | 0 |
Net cash (used in) provided by investing activities | (1,421,932) | 57,541 |
Cash flows provided by (used in) financing activities | ||
Dividends paid – RenaissanceRe common shares | (26,468) | (25,877) |
Dividends paid – preference shares | (11,191) | (11,191) |
Issuance of preference shares, net of expenses | 242,371 | 0 |
RenaissanceRe common share repurchases | 0 | (145,940) |
Net repayment of debt | (250,000) | |
Net issuance of debt | 0 | 295,866 |
Net third party redeemable noncontrolling interest share transactions | 64,534 | (33,655) |
Taxes paid on withholding shares | (7,044) | (11,251) |
Net cash provided by (used in) financing activities | 262,202 | (182,048) |
Effect of exchange rate changes on foreign currency cash | (2,501) | 5,477 |
Net (decrease) increase in cash and cash equivalents | (813,120) | 201,993 |
Cash and cash equivalents, beginning of period | 1,361,592 | 421,157 |
Cash and cash equivalents, end of period | 548,472 | 623,150 |
Reportable Legal Entities | RenRe North America Holdings Inc. (Subsidiary Issuer) | ||
Cash flows (used in) provided by operating activities | ||
Net cash (used in) provided by operating activities | 1,213 | (8,931) |
Cash flows (used in) provided by investing activities | ||
Proceeds from sales and maturities of fixed maturity investments trading | 62,334 | 46,475 |
Purchases of fixed maturity investments trading | (46,047) | (45,174) |
Net purchases of equity investments trading | (675) | (89) |
Net (purchases) sales of short term investments | (154) | (1,351) |
Net purchases of other investments | 0 | 0 |
Net purchases of investments in other ventures | 0 | |
Return of investment from investment in other ventures | 0 | 0 |
Dividends and return of capital from subsidiaries | 0 | 9,175 |
Contributions to subsidiaries | (16,848) | 0 |
Due (from) to subsidiary | 50 | 9 |
Net cash (used in) provided by investing activities | (1,340) | 9,045 |
Cash flows provided by (used in) financing activities | ||
Dividends paid – RenaissanceRe common shares | 0 | 0 |
Dividends paid – preference shares | 0 | 0 |
Issuance of preference shares, net of expenses | 0 | |
RenaissanceRe common share repurchases | 0 | |
Net repayment of debt | 0 | |
Net issuance of debt | 0 | |
Net third party redeemable noncontrolling interest share transactions | 0 | 0 |
Taxes paid on withholding shares | 0 | 0 |
Net cash provided by (used in) financing activities | 0 | 0 |
Effect of exchange rate changes on foreign currency cash | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | (127) | 114 |
Cash and cash equivalents, beginning of period | 139 | 162 |
Cash and cash equivalents, end of period | 12 | 276 |
Reportable Legal Entities | Platinum Underwriters Finance, Inc. (Subsidiary Issuer) | ||
Cash flows (used in) provided by operating activities | ||
Net cash (used in) provided by operating activities | (5,017) | |
Cash flows (used in) provided by investing activities | ||
Proceeds from sales and maturities of fixed maturity investments trading | 289,741 | |
Purchases of fixed maturity investments trading | (143,991) | |
Net purchases of equity investments trading | 85,324 | |
Net (purchases) sales of short term investments | 41,299 | |
Net purchases of other investments | 0 | |
Return of investment from investment in other ventures | 0 | |
Dividends and return of capital from subsidiaries | 0 | |
Contributions to subsidiaries | 0 | |
Due (from) to subsidiary | (41) | |
Net cash (used in) provided by investing activities | 272,332 | |
Cash flows provided by (used in) financing activities | ||
Dividends paid – RenaissanceRe common shares | 0 | |
Dividends paid – preference shares | 0 | |
RenaissanceRe common share repurchases | 0 | |
Net repayment of debt | (250,000) | |
Net issuance of debt | 0 | |
Net third party redeemable noncontrolling interest share transactions | 0 | |
Taxes paid on withholding shares | 0 | |
Net cash provided by (used in) financing activities | (250,000) | |
Effect of exchange rate changes on foreign currency cash | 0 | |
Net (decrease) increase in cash and cash equivalents | 17,315 | |
Cash and cash equivalents, beginning of period | 6,671 | |
Cash and cash equivalents, end of period | 23,986 | |
Reportable Legal Entities | RenaissanceRe Finance, Inc. (Subsidiary Issuer) | ||
Cash flows (used in) provided by operating activities | ||
Net cash (used in) provided by operating activities | (32,605) | (27,713) |
Cash flows (used in) provided by investing activities | ||
Proceeds from sales and maturities of fixed maturity investments trading | 35,946 | 15,449 |
Purchases of fixed maturity investments trading | (16,397) | (265,787) |
Net purchases of equity investments trading | 0 | 0 |
Net (purchases) sales of short term investments | (5,001) | (28,934) |
Net purchases of other investments | 0 | 0 |
Net purchases of investments in other ventures | 0 | |
Return of investment from investment in other ventures | 0 | 0 |
Dividends and return of capital from subsidiaries | 0 | 17,975 |
Contributions to subsidiaries | 0 | (9,175) |
Due (from) to subsidiary | 21,333 | 1,278 |
Net cash (used in) provided by investing activities | 35,881 | (269,194) |
Cash flows provided by (used in) financing activities | ||
Dividends paid – RenaissanceRe common shares | 0 | 0 |
Dividends paid – preference shares | 0 | 0 |
Issuance of preference shares, net of expenses | 0 | |
RenaissanceRe common share repurchases | 0 | |
Net repayment of debt | 0 | |
Net issuance of debt | 295,866 | |
Net third party redeemable noncontrolling interest share transactions | 0 | 0 |
Taxes paid on withholding shares | 0 | 0 |
Net cash provided by (used in) financing activities | 0 | 295,866 |
Effect of exchange rate changes on foreign currency cash | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | 3,276 | (1,041) |
Cash and cash equivalents, beginning of period | 1,469 | 9,397 |
Cash and cash equivalents, end of period | 4,745 | 8,356 |
Reportable Legal Entities | RenaissanceRe Holdings Ltd. (Parent Guarantor) | ||
Cash flows (used in) provided by operating activities | ||
Net cash (used in) provided by operating activities | (7,183) | (11,924) |
Cash flows (used in) provided by investing activities | ||
Proceeds from sales and maturities of fixed maturity investments trading | 120,555 | 53,654 |
Purchases of fixed maturity investments trading | (246,764) | (105,523) |
Net purchases of equity investments trading | 0 | 0 |
Net (purchases) sales of short term investments | 56,048 | 298,768 |
Net purchases of other investments | 0 | 0 |
Net purchases of investments in other ventures | 0 | |
Return of investment from investment in other ventures | 0 | 0 |
Dividends and return of capital from subsidiaries | 278,864 | 167,111 |
Contributions to subsidiaries | (250,238) | (200,000) |
Due (from) to subsidiary | (161,104) | (12,477) |
Net cash (used in) provided by investing activities | (202,639) | 201,533 |
Cash flows provided by (used in) financing activities | ||
Dividends paid – RenaissanceRe common shares | (26,468) | (25,877) |
Dividends paid – preference shares | (11,191) | (11,191) |
Issuance of preference shares, net of expenses | 242,371 | |
RenaissanceRe common share repurchases | (145,940) | |
Net repayment of debt | 0 | |
Net issuance of debt | 0 | |
Net third party redeemable noncontrolling interest share transactions | 0 | 0 |
Taxes paid on withholding shares | (7,044) | (11,251) |
Net cash provided by (used in) financing activities | 197,668 | (194,259) |
Effect of exchange rate changes on foreign currency cash | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | (12,154) | (4,650) |
Cash and cash equivalents, beginning of period | 14,656 | 7,067 |
Cash and cash equivalents, end of period | 2,502 | 2,417 |
Reportable Legal Entities | Other RenaissanceRe Holdings Ltd. Subsidiaries And Eliminations (Non-Guarantor Subsidiaries) | ||
Cash flows (used in) provided by operating activities | ||
Net cash (used in) provided by operating activities | 387,686 | 374,608 |
Cash flows (used in) provided by investing activities | ||
Proceeds from sales and maturities of fixed maturity investments trading | 4,594,373 | 4,758,653 |
Purchases of fixed maturity investments trading | (4,704,803) | (4,890,887) |
Net purchases of equity investments trading | (33,623) | (38,930) |
Net (purchases) sales of short term investments | (1,113,315) | (33,707) |
Net purchases of other investments | (111,921) | 2,551 |
Net purchases of investments in other ventures | (20,952) | |
Return of investment from investment in other ventures | 8,464 | 20,000 |
Dividends and return of capital from subsidiaries | (278,864) | (194,261) |
Contributions to subsidiaries | 267,086 | 209,175 |
Due (from) to subsidiary | 139,721 | 11,231 |
Net cash (used in) provided by investing activities | (1,253,834) | (156,175) |
Cash flows provided by (used in) financing activities | ||
Dividends paid – RenaissanceRe common shares | 0 | 0 |
Dividends paid – preference shares | 0 | 0 |
Issuance of preference shares, net of expenses | 0 | |
RenaissanceRe common share repurchases | 0 | |
Net repayment of debt | 0 | |
Net issuance of debt | 0 | |
Net third party redeemable noncontrolling interest share transactions | 64,534 | (33,655) |
Taxes paid on withholding shares | 0 | 0 |
Net cash provided by (used in) financing activities | 64,534 | (33,655) |
Effect of exchange rate changes on foreign currency cash | (2,501) | 5,477 |
Net (decrease) increase in cash and cash equivalents | (804,115) | 190,255 |
Cash and cash equivalents, beginning of period | 1,345,328 | 397,860 |
Cash and cash equivalents, end of period | $ 541,213 | $ 588,115 |