| RenaissanceRe Holdings Ltd. |
| Contents |
| Page | ||||
| Basis of Presentation | ||||
| Financial Highlights | ||||
| Statements of Operations | ||||
| a. | Summary Consolidated Statements of Operations | |||
| b. | Consolidated Segment Underwriting Results | |||
| c. | Segment Underwriting Results | |||
| d. | DaVinciRe Holdings Ltd. and Subsidiary Consolidated Statements of Operations | |||
| Balance Sheets | ||||
| a. | Summary Consolidated Balance Sheets | |||
| Investments | ||||
| a. | Investment Portfolio - Composition | |||
| b. | Investment Portfolio - Fixed Maturity Investments | |||
| c. | Investment Portfolio - Weighted Average Yield to Maturity and Credit Rating | |||
| d. | Total Investment Result | |||
| Loss Reserve Analysis | ||||
| a. | Reserves for Claims and Claim Expenses | |||
| b. | Paid to Incurred Analysis | |||
| Other Items | ||||
| a. | Fee Income | |||
| b. | Noncontrolling Interests | |||
| c. | Earnings per Share | |||
| d. | Ratings | |||
| Supplemental Information | ||||
| a. | Gross Premiums Written | |||
| b. | Property Segment Supplemental Underwriting Results | |||
| Comments on Regulation G | ||||
| RenaissanceRe Holdings Ltd. |
| Basis of Presentation |
RenaissanceRe Holdings Ltd. (the "Company" or "RenaissanceRe") is a global provider of reinsurance and insurance. The Company provides property, casualty and specialty reinsurance and certain insurance solutions to customers, principally through intermediaries. Established in 1993, the Company has offices in Bermuda, Australia, Ireland, Singapore, Switzerland, the United Kingdom and the United States.
On March 22, 2019, the Company's wholly owned subsidiary RenaissanceRe Specialty Holdings (UK) Limited completed its previously announced purchase of all the share capital of RenaissanceRe Europe AG (formerly known as Tokio Millennium Re AG), RenaissanceRe (UK) Limited (formerly known as Tokio Millennium Re (UK) Limited) and their subsidiaries (collectively, “TMR”). The operating activities of TMR from the acquisition date through March 31, 2019 were not material and, as a result, were not included in the Company's consolidated statements of operations for the three months ended March 31, 2019.
This financial supplement includes certain financial measures that are not calculated in accordance with generally accepted accounting principles in the U.S ("GAAP") including “operating income available to RenaissanceRe common shareholders,” “operating income available to RenaissanceRe common shareholders per common share - diluted,” “operating return on average common equity - annualized,” “tangible book value per common share,” “tangible book value per common share plus accumulated dividends," "retained investment result" and "retained fixed maturity and short term investments, at fair value." A reconciliation of such measures to the most comparable GAAP figures in accordance with Regulation G is presented in the attached supplemental financial data. See pages 19 through 23 for "Comments on Regulation G."
Cautionary Statement under “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995; Statements made in this financial supplement contain information about the Company's future business prospects. These statements may be considered “forward-looking.” These statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements. For further information regarding cautionary statements and factors affecting future results, please refer to RenaissanceRe Holdings Ltd.'s filings with the U.S. Securities and Exchange Commission, including its Annual Reports on Form 10-K and its Quarterly Reports on Form 10-Q.
All information contained herein is unaudited. Unless otherwise noted, amounts are in thousands of United States Dollars, except for share and per share amounts and ratio information. Certain prior period comparatives have been reclassified to conform to the current presentation. This supplement is being provided for informational purposes only. It should be read in conjunction with documents filed by RenaissanceRe with the U.S. Securities and Exchange Commission, including its Annual Reports on Form 10-K and its Quarterly Reports on Form 10-Q. Please refer to the Company's website at www.renre.com for further information about RenaissanceRe.
| i | ||
| RenaissanceRe Holdings Ltd. | |||||||||||||||||||
| Financial Highlights | |||||||||||||||||||
| Three months ended | |||||||||||||||||||
| March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||
| Highlights | |||||||||||||||||||
| Gross premiums written | $ | 2,025,721 | $ | 905,479 | $ | 861,068 | $ | 1,476,908 | $ | 1,564,295 | |||||||||
| Underwriting income (loss) | $ | 64,079 | $ | (65,157 | ) | $ | (3,368 | ) | $ | 170,833 | $ | 154,109 | |||||||
| Net investment income | $ | 99,473 | $ | 112,138 | $ | 111,387 | $ | 118,588 | $ | 82,094 | |||||||||
| Net realized and unrealized (losses) gains on investments | (110,707 | ) | 18,454 | 34,395 | 191,247 | 170,013 | |||||||||||||
| Total investment result | $ | (11,234 | ) | $ | 130,592 | $ | 145,782 | $ | 309,835 | $ | 252,107 | ||||||||
| Net (loss) income (attributable) available to RenaissanceRe common shareholders | $ | (81,974 | ) | $ | 33,773 | $ | 36,698 | $ | 367,854 | $ | 273,717 | ||||||||
| Operating income available to RenaissanceRe common shareholders (1) | $ | 33,410 | $ | 12,623 | $ | 32,681 | $ | 198,839 | $ | 153,608 | |||||||||
| Total investments | $ | 17,818,597 | $ | 17,368,789 | $ | 16,947,893 | $ | 16,388,316 | $ | 14,852,848 | |||||||||
| Total assets | $ | 27,465,519 | $ | 26,330,094 | $ | 25,644,210 | $ | 26,086,961 | $ | 24,559,600 | |||||||||
| Reserve for claims and claim expenses | $ | 9,406,707 | $ | 9,384,349 | $ | 8,602,437 | $ | 8,484,848 | $ | 8,391,484 | |||||||||
| Total shareholders' equity attributable to RenaissanceRe | $ | 5,683,526 | $ | 5,971,367 | $ | 5,951,235 | $ | 5,912,842 | $ | 5,554,033 | |||||||||
| Per share data | |||||||||||||||||||
| Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share - diluted | $ | (1.89 | ) | $ | 0.77 | $ | 0.83 | $ | 8.35 | $ | 6.43 | ||||||||
| Operating income available to RenaissanceRe common shareholders per common share - diluted (1) | $ | 0.76 | $ | 0.28 | $ | 0.73 | $ | 4.47 | $ | 3.59 | |||||||||
| Book value per common share | $ | 117.15 | $ | 120.53 | $ | 120.07 | $ | 119.17 | $ | 111.05 | |||||||||
| Tangible book value per common share (1) | $ | 110.69 | $ | 114.03 | $ | 113.52 | $ | 112.57 | $ | 104.39 | |||||||||
| Tangible book value per common share plus accumulated dividends (1) | $ | 131.72 | $ | 134.71 | $ | 133.86 | $ | 132.57 | $ | 124.05 | |||||||||
| Change in tangible book value per common share plus change in accumulated dividends (1) | (2.6 | )% | 0.7 | % | 1.1 | % | 8.2 | % | 7.0 | % | |||||||||
| Financial ratios | |||||||||||||||||||
| Combined ratio | 93.0 | % | 106.7 | % | 100.4 | % | 81.3 | % | 72.0 | % | |||||||||
| Return on average common equity - annualized | (6.3 | )% | 2.5 | % | 2.8 | % | 28.9 | % | 23.5 | % | |||||||||
| Operating return on average common equity - annualized (1) | 2.6 | % | 0.9 | % | 2.5 | % | 15.6 | % | 13.1 | % | |||||||||
| Total investment return - annualized | (0.1 | )% | 3.1 | % | 3.6 | % | 8.0 | % | 8.0 | % | |||||||||
| (1) | See "Comments on Regulation G" for a reconciliation of non-GAAP financial measures. |
| 1 | | |
| RenaissanceRe Holdings Ltd. | |||||||||||||||||||
| Summary Consolidated Statements of Operations | |||||||||||||||||||
| Three months ended | |||||||||||||||||||
| March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||
| Revenues | |||||||||||||||||||
| Gross premiums written | $ | 2,025,721 | $ | 905,479 | $ | 861,068 | $ | 1,476,908 | $ | 1,564,295 | |||||||||
| Net premiums written | $ | 1,269,808 | $ | 725,367 | $ | 704,130 | $ | 1,022,965 | $ | 929,031 | |||||||||
| (Increase) decrease in unearned premiums | (356,710 | ) | 244,758 | 202,618 | (111,463 | ) | (379,003 | ) | |||||||||||
| Net premiums earned | 913,098 | 970,125 | 906,748 | 911,502 | 550,028 | ||||||||||||||
| Net investment income | 99,473 | 112,138 | 111,387 | 118,588 | 82,094 | ||||||||||||||
| Net foreign exchange (losses) gains | (5,728 | ) | (1,126 | ) | (8,275 | ) | 9,309 | (2,846 | ) | ||||||||||
| Equity in earnings of other ventures | 4,564 | 5,874 | 5,877 | 6,812 | 4,661 | ||||||||||||||
| Other (loss) income | (4,436 | ) | (160 | ) | 1,016 | 922 | 3,171 | ||||||||||||
| Net realized and unrealized (losses) gains on investments | (110,707 | ) | 18,454 | 34,395 | 191,247 | 170,013 | |||||||||||||
| Total revenues | 896,264 | 1,105,305 | 1,051,148 | 1,238,380 | 807,121 | ||||||||||||||
| Expenses | |||||||||||||||||||
| Net claims and claim expenses incurred | 570,954 | 762,093 | 654,520 | 453,373 | 227,035 | ||||||||||||||
| Acquisition expenses | 210,604 | 208,618 | 202,181 | 227,482 | 123,951 | ||||||||||||||
| Operational expenses | 67,461 | 64,571 | 53,415 | 59,814 | 44,933 | ||||||||||||||
| Corporate expenses | 15,991 | 17,642 | 13,844 | 23,847 | 38,789 | ||||||||||||||
| Interest expense | 14,927 | 15,496 | 15,580 | 15,534 | 11,754 | ||||||||||||||
| Total expenses | 879,937 | 1,068,420 | 939,540 | 780,050 | 446,462 | ||||||||||||||
| Income before taxes | 16,327 | 36,885 | 111,608 | 458,330 | 360,659 | ||||||||||||||
| Income tax benefit (expense) | 8,846 | 3,455 | (3,664 | ) | (9,475 | ) | (7,531 | ) | |||||||||||
| Net income | 25,173 | 40,340 | 107,944 | 448,855 | 353,128 | ||||||||||||||
| Net (income) loss attributable to noncontrolling interests | (98,091 | ) | 2,622 | (62,057 | ) | (71,812 | ) | (70,222 | ) | ||||||||||
| Net (loss) income attributable to RenaissanceRe | (72,918 | ) | 42,962 | 45,887 | 377,043 | 282,906 | |||||||||||||
| Dividends on preference shares | (9,056 | ) | (9,189 | ) | (9,189 | ) | (9,189 | ) | (9,189 | ) | |||||||||
| Net (loss) income (attributable) available to RenaissanceRe common shareholders | $ | (81,974 | ) | $ | 33,773 | $ | 36,698 | $ | 367,854 | $ | 273,717 | ||||||||
| Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share - basic | $ | (1.89 | ) | $ | 0.77 | $ | 0.83 | $ | 8.36 | $ | 6.43 | ||||||||
| Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share - diluted | $ | (1.89 | ) | $ | 0.77 | $ | 0.83 | $ | 8.35 | $ | 6.43 | ||||||||
| Operating income available to RenaissanceRe common shareholders per common share - diluted (1) | $ | 0.76 | $ | 0.28 | $ | 0.73 | $ | 4.52 | $ | 3.59 | |||||||||
| Return on average common equity - annualized | (6.3 | )% | 2.5 | % | 2.8 | % | 28.9 | % | 23.5 | % | |||||||||
| Operating return on average common equity - annualized (1) | 2.6 | % | 0.9 | % | 2.5 | % | 15.6 | % | 13.1 | % | |||||||||
| (1) | See "Comments on Regulation G" for a reconciliation of non-GAAP financial measures. |
| 2 | | |
| RenaissanceRe Holdings Ltd. | |||||||||||||||
| Consolidated Segment Underwriting Results | |||||||||||||||
| Three months ended March 31, 2020 | |||||||||||||||
| Property | Casualty and Specialty | Other | Total | ||||||||||||
| Gross premiums written | $ | 1,220,526 | $ | 805,195 | $ | — | $ | 2,025,721 | |||||||
| Net premiums written | $ | 674,581 | $ | 595,227 | $ | — | $ | 1,269,808 | |||||||
| Net premiums earned | $ | 421,335 | $ | 491,763 | $ | — | $ | 913,098 | |||||||
| Net claims and claim expenses incurred | 144,852 | 426,209 | (107 | ) | 570,954 | ||||||||||
| Acquisition expenses | 85,351 | 125,253 | — | 210,604 | |||||||||||
| Operational expenses | 44,007 | 23,454 | — | 67,461 | |||||||||||
| Underwriting income (loss) | $ | 147,125 | $ | (83,153 | ) | $ | 107 | $ | 64,079 | ||||||
| Net claims and claim expenses incurred - current accident year | $ | 130,844 | $ | 426,210 | $ | — | $ | 557,054 | |||||||
| Net claims and claim expenses incurred - prior accident years | 14,008 | (1 | ) | (107 | ) | 13,900 | |||||||||
| Net claims and claim expenses incurred - total | $ | 144,852 | $ | 426,209 | $ | (107 | ) | $ | 570,954 | ||||||
| Net claims and claim expense ratio - current accident year | 31.1 | % | 86.7 | % | 61.0 | % | |||||||||
| Net claims and claim expense ratio - prior accident years | 3.3 | % | — | % | 1.5 | % | |||||||||
| Net claims and claim expense ratio - calendar year | 34.4 | % | 86.7 | % | 62.5 | % | |||||||||
| Underwriting expense ratio | 30.7 | % | 30.2 | % | 30.5 | % | |||||||||
| Combined ratio | 65.1 | % | 116.9 | % | 93.0 | % | |||||||||
| Three months ended March 31, 2019 | |||||||||||||||
| Property | Casualty and Specialty | Other | Total | ||||||||||||
| Gross premiums written | $ | 1,032,384 | $ | 531,911 | $ | — | $ | 1,564,295 | |||||||
| Net premiums written | $ | 564,230 | $ | 364,801 | $ | — | $ | 929,031 | |||||||
| Net premiums earned | $ | 290,745 | $ | 259,283 | $ | — | $ | 550,028 | |||||||
| Net claims and claim expenses incurred | 56,083 | 170,933 | 19 | 227,035 | |||||||||||
| Acquisition expenses | 53,739 | 70,212 | — | 123,951 | |||||||||||
| Operational expenses | 28,544 | 16,389 | — | 44,933 | |||||||||||
| Underwriting income (loss) | $ | 152,379 | $ | 1,749 | $ | (19 | ) | $ | 154,109 | ||||||
| Net claims and claim expenses incurred - current accident year | $ | 54,206 | $ | 177,135 | $ | — | $ | 231,341 | |||||||
| Net claims and claim expenses incurred - prior accident years | 1,877 | (6,202 | ) | 19 | (4,306 | ) | |||||||||
| Net claims and claim expenses incurred - total | $ | 56,083 | $ | 170,933 | $ | 19 | $ | 227,035 | |||||||
| Net claims and claim expense ratio - current accident year | 18.6 | % | 68.3 | % | 42.1 | % | |||||||||
| Net claims and claim expense ratio - prior accident years | 0.7 | % | (2.4 | )% | (0.8 | )% | |||||||||
| Net claims and claim expense ratio - calendar year | 19.3 | % | 65.9 | % | 41.3 | % | |||||||||
| Underwriting expense ratio | 28.3 | % | 33.4 | % | 30.7 | % | |||||||||
| Combined ratio | 47.6 | % | 99.3 | % | 72.0 | % | |||||||||
| 3 | | |
| RenaissanceRe Holdings Ltd. | |||||||||||||||||||
| Segment Underwriting Results | |||||||||||||||||||
| Three months ended | |||||||||||||||||||
| Property Segment | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | ||||||||||||||
| Gross premiums written | $ | 1,220,526 | $ | 245,001 | $ | 314,400 | $ | 839,200 | $ | 1,032,384 | |||||||||
| Net premiums written | $ | 674,581 | $ | 242,932 | $ | 302,982 | $ | 544,115 | $ | 564,230 | |||||||||
| Net premiums earned | $ | 421,335 | $ | 467,404 | $ | 444,332 | $ | 425,013 | $ | 290,745 | |||||||||
| Net claims and claim expenses incurred | 144,852 | 424,207 | 338,260 | 146,874 | 56,083 | ||||||||||||||
| Acquisition expenses | 85,351 | 90,790 | 79,521 | 89,711 | 53,739 | ||||||||||||||
| Operational expenses | 44,007 | 39,469 | 34,238 | 36,764 | 28,544 | ||||||||||||||
| Underwriting income (loss) | $ | 147,125 | $ | (87,062 | ) | $ | (7,687 | ) | $ | 151,664 | $ | 152,379 | |||||||
| Net claims and claim expenses incurred - current accident year | $ | 130,844 | $ | 432,160 | $ | 345,880 | $ | 136,111 | $ | 54,206 | |||||||||
| Net claims and claim expenses incurred - prior accident years | 14,008 | (7,953 | ) | (7,620 | ) | 10,763 | 1,877 | ||||||||||||
| Net claims and claim expenses incurred - total | $ | 144,852 | $ | 424,207 | $ | 338,260 | $ | 146,874 | $ | 56,083 | |||||||||
| Net claims and claim expense ratio - current accident year | 31.1 | % | 92.5 | % | 77.8 | % | 32.0 | % | 18.6 | % | |||||||||
| Net claims and claim expense ratio - prior accident years | 3.3 | % | (1.7 | )% | (1.7 | )% | 2.6 | % | 0.7 | % | |||||||||
| Net claims and claim expense ratio - calendar year | 34.4 | % | 90.8 | % | 76.1 | % | 34.6 | % | 19.3 | % | |||||||||
| Underwriting expense ratio | 30.7 | % | 27.8 | % | 25.6 | % | 29.7 | % | 28.3 | % | |||||||||
| Combined ratio | 65.1 | % | 118.6 | % | 101.7 | % | 64.3 | % | 47.6 | % | |||||||||
| Three months ended | |||||||||||||||||||
| Casualty and Specialty Segment | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | ||||||||||||||
| Gross premiums written | $ | 805,195 | $ | 660,478 | $ | 546,668 | $ | 637,708 | $ | 531,911 | |||||||||
| Net premiums written | $ | 595,227 | $ | 482,435 | $ | 401,148 | $ | 478,850 | $ | 364,801 | |||||||||
| Net premiums earned | $ | 491,763 | $ | 502,721 | $ | 462,416 | $ | 486,489 | $ | 259,283 | |||||||||
| Net claims and claim expenses incurred | 426,209 | 338,104 | 316,099 | 306,501 | 170,933 | ||||||||||||||
| Acquisition expenses | 125,253 | 117,849 | 122,654 | 137,963 | 70,212 | ||||||||||||||
| Operational expenses | 23,454 | 25,943 | 19,198 | 23,016 | 16,389 | ||||||||||||||
| Underwriting (loss) income | $ | (83,153 | ) | $ | 20,825 | $ | 4,465 | $ | 19,009 | $ | 1,749 | ||||||||
| Net claims and claim expenses incurred - current accident year | $ | 426,210 | $ | 342,268 | $ | 319,087 | $ | 317,029 | $ | 177,135 | |||||||||
| Net claims and claim expenses incurred - prior accident years | (1 | ) | (4,164 | ) | (2,988 | ) | (10,528 | ) | (6,202 | ) | |||||||||
| Net claims and claim expenses incurred - total | $ | 426,209 | $ | 338,104 | $ | 316,099 | $ | 306,501 | $ | 170,933 | |||||||||
| Net claims and claim expense ratio - current accident year | 86.7 | % | 68.1 | % | 69.0 | % | 65.2 | % | 68.3 | % | |||||||||
| Net claims and claim expense ratio - prior accident years | — | % | (0.8 | )% | (0.6 | )% | (2.2 | )% | (2.4 | )% | |||||||||
| Net claims and claim expense ratio - calendar year | 86.7 | % | 67.3 | % | 68.4 | % | 63.0 | % | 65.9 | % | |||||||||
| Underwriting expense ratio | 30.2 | % | 28.6 | % | 30.6 | % | 33.1 | % | 33.4 | % | |||||||||
| Combined ratio | 116.9 | % | 95.9 | % | 99.0 | % | 96.1 | % | 99.3 | % | |||||||||
| 4 | | |
| DaVinciRe Holdings Ltd. and Subsidiary | |||||||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||||||
| Three months ended | |||||||||||||||||||
| March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||
| Revenues | |||||||||||||||||||
| Gross premiums written | $ | 255,640 | $ | 15,566 | $ | 32,986 | $ | 206,052 | $ | 186,114 | |||||||||
| Net premiums written | $ | 241,641 | $ | 15,210 | $ | 30,605 | $ | 165,394 | $ | 167,919 | |||||||||
| (Increase) decrease in unearned premiums | (135,933 | ) | 90,674 | 63,671 | (78,769 | ) | (89,594 | ) | |||||||||||
| Net premiums earned | 105,708 | 105,884 | 94,276 | 86,625 | 78,325 | ||||||||||||||
| Net investment income | 15,087 | 13,506 | 13,813 | 13,597 | 12,823 | ||||||||||||||
| Net foreign exchange losses | (1,180 | ) | (399 | ) | (174 | ) | (936 | ) | (256 | ) | |||||||||
| Other income | — | — | — | 139 | 205 | ||||||||||||||
| Net realized and unrealized gains (losses) on investments | 18,529 | (1,307 | ) | 6,493 | 20,914 | 22,435 | |||||||||||||
| Total revenues | 138,144 | 117,684 | 114,408 | 120,339 | 113,532 | ||||||||||||||
| Expenses | |||||||||||||||||||
| Net claims and claim expenses incurred | (13,726 | ) | 135,397 | 45,325 | 10,986 | 3,663 | |||||||||||||
| Acquisition expenses | 30,112 | 1,313 | 15,762 | 21,211 | 16,966 | ||||||||||||||
| Operational and corporate expenses | 11,889 | 12,238 | 12,139 | 9,777 | 10,650 | ||||||||||||||
| Interest expense | 1,858 | 1,859 | 1,859 | 1,858 | 1,858 | ||||||||||||||
| Total expenses | 30,133 | 150,807 | 75,085 | 43,832 | 33,137 | ||||||||||||||
| Income (loss) before taxes | 108,011 | (33,123 | ) | 39,323 | 76,507 | 80,395 | |||||||||||||
| Income tax benefit (expense) | 2 | (6 | ) | (177 | ) | 243 | (142 | ) | |||||||||||
| Net income (loss) available (attributable) to DaVinciRe common shareholders | $ | 108,013 | $ | (33,129 | ) | $ | 39,146 | $ | 76,750 | $ | 80,253 | ||||||||
| Net claims and claim expenses incurred - current accident year | $ | 4,967 | $ | 113,743 | $ | 80,022 | $ | 5,623 | $ | 10,300 | |||||||||
| Net claims and claim expenses incurred - prior accident years | (18,693 | ) | 21,654 | (34,697 | ) | 5,363 | (6,637 | ) | |||||||||||
| Net claims and claim expenses incurred - total | $ | (13,726 | ) | $ | 135,397 | $ | 45,325 | $ | 10,986 | $ | 3,663 | ||||||||
| Net claims and claim expense ratio - current accident year | 4.7 | % | 107.4 | % | 84.9 | % | 6.5 | % | 13.2 | % | |||||||||
| Net claims and claim expense ratio - prior accident years | (17.7 | )% | 20.5 | % | (36.8 | )% | 6.2 | % | (8.5 | )% | |||||||||
| Net claims and claim expense ratio - calendar year | (13.0 | )% | 127.9 | % | 48.1 | % | 12.7 | % | 4.7 | % | |||||||||
| Underwriting expense ratio | 39.7 | % | 12.8 | % | 29.6 | % | 35.8 | % | 35.2 | % | |||||||||
| Combined ratio | 26.7 | % | 140.7 | % | 77.7 | % | 48.5 | % | 39.9 | % | |||||||||
| 5 | | |
| RenaissanceRe Holdings Ltd. | |||||||||||||||||||
| Summary Consolidated Balance Sheets | |||||||||||||||||||
| March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||
| Assets | |||||||||||||||||||
| Fixed maturity investments trading, at fair value | $ | 11,045,801 | $ | 11,171,655 | $ | 11,386,228 | $ | 10,479,666 | $ | 9,473,160 | |||||||||
| Short term investments, at fair value | 5,263,242 | 4,566,277 | 4,116,156 | 4,579,171 | 4,012,815 | ||||||||||||||
| Equity investments trading, at fair value | 360,444 | 436,931 | 379,422 | 273,646 | 389,937 | ||||||||||||||
| Other investments, at fair value | 1,058,714 | 1,087,377 | 962,109 | 955,437 | 878,373 | ||||||||||||||
| Investments in other ventures, under equity method | 90,396 | 106,549 | 103,978 | 100,396 | 98,563 | ||||||||||||||
| Total investments | 17,818,597 | 17,368,789 | 16,947,893 | 16,388,316 | 14,852,848 | ||||||||||||||
| Cash and cash equivalents | 896,216 | 1,379,068 | 871,251 | 670,626 | 1,021,275 | ||||||||||||||
| Premiums receivable | 3,105,441 | 2,599,896 | 2,799,954 | 3,140,688 | 2,753,098 | ||||||||||||||
| Prepaid reinsurance premiums | 1,151,926 | 767,781 | 972,047 | 1,158,534 | 1,086,027 | ||||||||||||||
| Reinsurance recoverable | 2,765,583 | 2,791,297 | 2,438,299 | 2,865,150 | 2,908,343 | ||||||||||||||
| Accrued investment income | 73,496 | 72,461 | 73,509 | 76,949 | 64,615 | ||||||||||||||
| Deferred acquisition costs and value of business acquired | 739,875 | 663,991 | 708,258 | 780,756 | 841,528 | ||||||||||||||
| Receivable for investments sold | 341,786 | 78,369 | 225,147 | 395,787 | 411,172 | ||||||||||||||
| Other assets | 312,523 | 346,216 | 344,593 | 344,938 | 353,543 | ||||||||||||||
| Goodwill and other intangibles | 260,076 | 262,226 | 263,259 | 265,217 | 267,151 | ||||||||||||||
| Total assets | $ | 27,465,519 | $ | 26,330,094 | $ | 25,644,210 | $ | 26,086,961 | $ | 24,559,600 | |||||||||
| Liabilities, Noncontrolling Interests and Shareholders' Equity | |||||||||||||||||||
| Liabilities | |||||||||||||||||||
| Reserve for claims and claim expenses | $ | 9,406,707 | $ | 9,384,349 | $ | 8,602,437 | $ | 8,484,848 | $ | 8,391,484 | |||||||||
| Unearned premiums | 3,245,914 | 2,530,975 | 2,967,535 | 3,362,520 | 3,188,678 | ||||||||||||||
| Debt | 1,134,695 | 1,384,105 | 1,383,498 | 1,382,890 | 1,191,499 | ||||||||||||||
| Reinsurance balances payable | 3,775,375 | 2,830,691 | 2,910,601 | 3,280,048 | 3,009,492 | ||||||||||||||
| Payable for investments purchased | 636,136 | 225,275 | 654,685 | 554,696 | 679,596 | ||||||||||||||
| Other liabilities | 351,320 | 932,024 | 395,186 | 396,651 | 435,418 | ||||||||||||||
| Total liabilities | 18,550,147 | 17,287,419 | 16,913,942 | 17,461,653 | 16,896,167 | ||||||||||||||
| Redeemable noncontrolling interest | 3,231,846 | 3,071,308 | 2,779,033 | 2,712,466 | 2,109,400 | ||||||||||||||
| Shareholders' Equity | |||||||||||||||||||
| Preference shares | 525,000 | 650,000 | 650,000 | 650,000 | 650,000 | ||||||||||||||
| Common shares | 44,034 | 44,148 | 44,152 | 44,162 | 44,159 | ||||||||||||||
| Additional paid-in capital | 502,608 | 568,277 | 560,166 | 552,210 | 543,889 | ||||||||||||||
| Accumulated other comprehensive (loss) income | (1,664 | ) | (1,939 | ) | 4,988 | (3,869 | ) | (1,470 | ) | ||||||||||
| Retained earnings | 4,613,548 | 4,710,881 | 4,691,929 | 4,670,339 | 4,317,455 | ||||||||||||||
| Total shareholders' equity attributable to RenaissanceRe | 5,683,526 | 5,971,367 | 5,951,235 | 5,912,842 | 5,554,033 | ||||||||||||||
| Total liabilities, noncontrolling interests and shareholders' equity | $ | 27,465,519 | $ | 26,330,094 | $ | 25,644,210 | $ | 26,086,961 | $ | 24,559,600 | |||||||||
| Book value per common share | $ | 117.15 | $ | 120.53 | $ | 120.07 | $ | 119.17 | $ | 111.05 | |||||||||
| 6 | | |
| RenaissanceRe Holdings Ltd. | ||||||||||||||||||||||||||||||||||
| Investment Portfolio - Composition | ||||||||||||||||||||||||||||||||||
| Type of Investment | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||||||||||||||||
| U.S. treasuries | $ | 3,915,130 | 22.0 | % | $ | 4,467,345 | 25.7 | % | $ | 4,314,006 | 25.4 | % | $ | 3,961,306 | 24.2 | % | $ | 3,097,089 | 20.9 | % | ||||||||||||||
| Agencies | 537,490 | 3.1 | % | 343,031 | 1.9 | % | 507,903 | 3.0 | % | 334,923 | 2.0 | % | 182,904 | 1.2 | % | |||||||||||||||||||
| Municipal | — | — | % | — | — | % | 1,629 | — | % | 2,859 | — | % | 256,967 | 1.7 | % | |||||||||||||||||||
| Non-U.S. government | 635,282 | 3.6 | % | 497,392 | 2.9 | % | 379,154 | 2.2 | % | 370,505 | 2.3 | % | 687,021 | 4.6 | % | |||||||||||||||||||
| Non-U.S. government-backed corporate | 283,577 | 1.6 | % | 321,356 | 1.9 | % | 263,170 | 1.6 | % | 207,668 | 1.3 | % | 286,331 | 1.9 | % | |||||||||||||||||||
| Corporate | 3,259,780 | 18.3 | % | 3,075,660 | 17.7 | % | 3,453,222 | 20.4 | % | 3,268,511 | 19.9 | % | 2,971,018 | 20.0 | % | |||||||||||||||||||
| Agency mortgage-backed | 1,056,272 | 5.9 | % | 1,148,499 | 6.6 | % | 1,248,722 | 7.4 | % | 1,167,735 | 7.1 | % | 955,616 | 6.4 | % | |||||||||||||||||||
| Non-agency mortgage-backed | 275,026 | 1.6 | % | 294,604 | 1.7 | % | 261,850 | 1.5 | % | 266,963 | 1.6 | % | 272,880 | 1.8 | % | |||||||||||||||||||
| Commercial mortgage-backed | 540,502 | 3.0 | % | 468,698 | 2.7 | % | 406,268 | 2.4 | % | 374,584 | 2.3 | % | 245,323 | 1.7 | % | |||||||||||||||||||
| Asset-backed | 542,742 | 3.1 | % | 555,070 | 3.2 | % | 550,304 | 3.3 | % | 524,612 | 3.2 | % | 518,011 | 3.5 | % | |||||||||||||||||||
| Total fixed maturity investments, at fair value | 11,045,801 | 62.2 | % | 11,171,655 | 64.3 | % | 11,386,228 | 67.2 | % | 10,479,666 | 63.9 | % | 9,473,160 | 63.7 | % | |||||||||||||||||||
| Short term investments, at fair value | 5,263,242 | 29.4 | % | 4,566,277 | 26.3 | % | 4,116,156 | 24.3 | % | 4,579,171 | 28.0 | % | 4,012,815 | 27.1 | % | |||||||||||||||||||
| Total consolidated fixed maturity and short term investments, at fair value | 16,309,043 | 91.6 | % | 15,737,932 | 90.6 | % | 15,502,384 | 91.5 | % | 15,058,837 | 91.9 | % | 13,485,975 | 90.8 | % | |||||||||||||||||||
| Equity investments trading, at fair value | 360,444 | 2.0 | % | 436,931 | 2.5 | % | 379,422 | 2.2 | % | 273,646 | 1.7 | % | 389,937 | 2.6 | % | |||||||||||||||||||
| Other investments, at fair value | 1,058,714 | 5.9 | % | 1,087,377 | 6.3 | % | 962,109 | 5.7 | % | 955,437 | 5.8 | % | 878,373 | 5.9 | % | |||||||||||||||||||
| Total managed investment portfolio | 17,728,201 | 99.5 | % | 17,262,240 | 99.4 | % | 16,843,915 | 99.4 | % | 16,287,920 | 99.4 | % | 14,754,285 | 99.3 | % | |||||||||||||||||||
| Investments in other ventures, under equity method | 90,396 | 0.5 | % | 106,549 | 0.6 | % | 103,978 | 0.6 | % | 100,396 | 0.6 | % | 98,563 | 0.7 | % | |||||||||||||||||||
| Total investments | $ | 17,818,597 | 100.0 | % | $ | 17,368,789 | 100.0 | % | $ | 16,947,893 | 100.0 | % | $ | 16,388,316 | 100.0 | % | $ | 14,852,848 | 100.0 | % | ||||||||||||||
| Managed fixed maturity and short term investments portfolio (1) | ||||||||||||||||||||||||||||||||||
| Total consolidated fixed maturity and short term investments, at fair value | $ | 16,309,043 | $ | 15,737,932 | $ | 15,502,384 | $ | 15,058,837 | $ | 13,485,975 | ||||||||||||||||||||||||
| Weighted average yield to maturity of fixed maturity and short term investments | 1.5 | % | 2.1 | % | 2.2 | % | 2.4 | % | 2.7 | % | ||||||||||||||||||||||||
| Average duration of fixed maturities and short term investments | 2.8 | 2.9 | 2.8 | 2.7 | 2.5 | |||||||||||||||||||||||||||||
| Retained fixed maturity and short term investments portfolio (2) | ||||||||||||||||||||||||||||||||||
| Retained fixed maturity and short term investments, at fair value | $ | 11,124,214 | $ | 11,154,174 | $ | 11,075,699 | $ | 10,787,618 | $ | 9,811,977 | ||||||||||||||||||||||||
| Weighted average yield to maturity of retained fixed maturity and short term investments | 1.9 | % | 2.2 | % | 2.3 | % | 2.5 | % | 2.8 | % | ||||||||||||||||||||||||
| Average duration of retained fixed maturities and short term investments | 3.5 | 3.6 | 3.5 | 3.1 | 3.0 | |||||||||||||||||||||||||||||
| (1) | Includes total consolidated fixed maturity and short term investments, at fair value, as presented on the Company's consolidated balance sheets. |
| (2) | Includes total consolidated fixed maturity and short term investments, at fair value, less the portion of fixed maturity and short term investments, at fair value attributable to redeemable noncontrolling interests, certain third party vehicles and joint ventures. See "Comments on Regulation G" for a reconciliation of non-GAAP financial measures. |
| 7 | | |
| RenaissanceRe Holdings Ltd. | ||||||||||||||||||||||||||||||||||
| Investment Portfolio - Fixed Maturity Investments | ||||||||||||||||||||||||||||||||||
| Credit Quality of Fixed Maturity Investments | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||||||||||||||||
| AAA | $ | 1,590,824 | 14.4 | % | $ | 1,338,265 | 12.0 | % | $ | 1,215,518 | 10.7 | % | $ | 1,121,450 | 10.7 | % | $ | 1,221,347 | 12.9 | % | ||||||||||||||
| AA | 6,212,689 | 56.3 | % | 6,677,219 | 59.8 | % | 6,699,860 | 58.8 | % | 6,073,777 | 58.0 | % | 5,302,980 | 56.0 | % | |||||||||||||||||||
| A | 1,491,504 | 13.5 | % | 1,453,212 | 13.0 | % | 1,671,934 | 14.7 | % | 1,548,705 | 14.8 | % | 1,385,193 | 14.6 | % | |||||||||||||||||||
| BBB | 915,375 | 8.3 | % | 874,730 | 7.8 | % | 967,928 | 8.5 | % | 898,740 | 8.6 | % | 758,720 | 8.0 | % | |||||||||||||||||||
| Non-investment grade and not rated | 835,409 | 7.5 | % | 828,229 | 7.4 | % | 830,988 | 7.3 | % | 836,994 | 7.9 | % | 804,920 | 8.5 | % | |||||||||||||||||||
| Total fixed maturity investments, at fair value | $ | 11,045,801 | 100.0 | % | $ | 11,171,655 | 100.0 | % | $ | 11,386,228 | 100.0 | % | $ | 10,479,666 | 100.0 | % | $ | 9,473,160 | 100.0 | % | ||||||||||||||
| Maturity Profile of Fixed Maturity Investments | ||||||||||||||||||||||||||||||||||
| Due in less than one year | $ | 723,397 | 6.5 | % | $ | 544,636 | 4.9 | % | $ | 603,806 | 5.3 | % | $ | 616,578 | 5.9 | % | $ | 744,030 | 7.8 | % | ||||||||||||||
| Due after one through five years | 5,039,456 | 45.7 | % | 5,522,769 | 49.4 | % | 5,893,946 | 51.8 | % | 5,176,183 | 49.4 | % | 5,301,425 | 56.0 | % | |||||||||||||||||||
| Due after five through ten years | 2,612,031 | 23.7 | % | 2,420,602 | 21.7 | % | 2,232,264 | 19.6 | % | 1,896,176 | 18.1 | % | 1,154,682 | 12.2 | % | |||||||||||||||||||
| Due after ten years | 256,375 | 2.3 | % | 216,777 | 1.9 | % | 189,068 | 1.7 | % | 456,835 | 4.3 | % | 281,193 | 3.0 | % | |||||||||||||||||||
| Mortgage-backed securities | 1,871,800 | 16.9 | % | 1,911,801 | 17.1 | % | 1,916,840 | 16.8 | % | 1,809,282 | 17.3 | % | 1,473,819 | 15.5 | % | |||||||||||||||||||
| Asset-backed securities | 542,742 | 4.9 | % | 555,070 | 5.0 | % | 550,304 | 4.8 | % | 524,612 | 5.0 | % | 518,011 | 5.5 | % | |||||||||||||||||||
| Total fixed maturity investments, at fair value | $ | 11,045,801 | 100.0 | % | $ | 11,171,655 | 100.0 | % | $ | 11,386,228 | 100.0 | % | $ | 10,479,666 | 100.0 | % | $ | 9,473,160 | 100.0 | % | ||||||||||||||
| 8 | | |
| RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||||||||||||||||
| Investment Portfolio - Weighted Average Yield to Maturity and Credit Rating | |||||||||||||||||||||||||||||||||||||
| Credit Rating (1) | |||||||||||||||||||||||||||||||||||||
| March 31, 2020 | Amortized Cost | Fair Value | % of Total Investment Portfolio | Weighted Average Yield to Maturity | AAA | AA | A | BBB | Non- Investment Grade | Not Rated | |||||||||||||||||||||||||||
| Short term investments | $ | 5,263,242 | $ | 5,263,242 | 29.4 | % | 0.5 | % | $ | 4,845,167 | $ | 408,920 | $ | 1,258 | $ | 4,870 | $ | 1,965 | $ | 1,062 | |||||||||||||||||
| 100.0 | % | 92.1 | % | 7.8 | % | — | % | 0.1 | % | — | % | — | % | ||||||||||||||||||||||||
| Fixed maturity investments | |||||||||||||||||||||||||||||||||||||
| U.S. treasuries | 3,713,475 | 3,915,130 | 22.0 | % | 0.4 | % | — | 3,915,130 | — | — | — | — | |||||||||||||||||||||||||
| Agencies | |||||||||||||||||||||||||||||||||||||
| Fannie Mae and Freddie Mac | 200,585 | 205,530 | 1.2 | % | 1.0 | % | — | 205,530 | — | — | — | — | |||||||||||||||||||||||||
| Other agencies | 323,842 | 331,960 | 1.9 | % | 1.0 | % | — | 331,960 | — | — | — | — | |||||||||||||||||||||||||
| Total agencies | 524,427 | 537,490 | 3.1 | % | 1.0 | % | — | 537,490 | — | — | — | — | |||||||||||||||||||||||||
| Non-U.S. government | 619,620 | 635,282 | 3.6 | % | 0.8 | % | 419,541 | 199,192 | 6,108 | 9,504 | 937 | — | |||||||||||||||||||||||||
| Non-U.S. government-backed corporate | 280,712 | 283,577 | 1.6 | % | 1.2 | % | 181,395 | 79,884 | 21,773 | 525 | — | — | |||||||||||||||||||||||||
| Corporate | 3,369,559 | 3,259,780 | 18.3 | % | 3.8 | % | 48,059 | 247,072 | 1,453,523 | 861,621 | 633,996 | 15,509 | |||||||||||||||||||||||||
| Mortgage-backed | |||||||||||||||||||||||||||||||||||||
| Residential mortgage-backed | |||||||||||||||||||||||||||||||||||||
| Agency securities | 1,022,760 | 1,056,272 | 5.9 | % | 1.4 | % | — | 1,056,272 | — | — | — | — | |||||||||||||||||||||||||
| Non-agency securities - Alt A | 229,184 | 211,511 | 1.2 | % | 6.3 | % | 42,467 | 5,850 | 1,754 | 7,040 | 125,232 | 29,168 | |||||||||||||||||||||||||
| Non-agency securities - Prime | 67,597 | 63,515 | 0.4 | % | 5.6 | % | 28,720 | 2,724 | 2,241 | 462 | 17,083 | 12,285 | |||||||||||||||||||||||||
| Total residential mortgage-backed | 1,319,541 | 1,331,298 | 7.5 | % | 2.4 | % | 71,187 | 1,064,846 | 3,995 | 7,502 | 142,315 | 41,453 | |||||||||||||||||||||||||
| Commercial mortgage-backed | 542,523 | 540,502 | 3.0 | % | 3.1 | % | 443,952 | 80,412 | 3,848 | 11,091 | 1,199 | — | |||||||||||||||||||||||||
| Total mortgage-backed | 1,862,064 | 1,871,800 | 10.5 | % | 2.6 | % | 515,139 | 1,145,258 | 7,843 | 18,593 | 143,514 | 41,453 | |||||||||||||||||||||||||
| Asset-backed | |||||||||||||||||||||||||||||||||||||
| Collateralized loan obligations | 507,903 | 478,923 | 2.7 | % | 4.7 | % | 367,468 | 88,663 | — | 22,792 | — | — | |||||||||||||||||||||||||
| Credit cards | 15,372 | 15,331 | 0.1 | % | 2.0 | % | 15,331 | — | — | — | — | — | |||||||||||||||||||||||||
| Auto loans | 38,371 | 38,403 | 0.2 | % | 2.3 | % | 38,403 | — | — | — | — | — | |||||||||||||||||||||||||
| Other | 10,169 | 10,085 | 0.1 | % | 3.8 | % | 5,488 | — | 2,257 | 2,340 | — | — | |||||||||||||||||||||||||
| Total asset-backed | 571,815 | 542,742 | 3.1 | % | 4.4 | % | 426,690 | 88,663 | 2,257 | 25,132 | — | — | |||||||||||||||||||||||||
| Total securitized assets | 2,433,879 | 2,414,542 | 13.6 | % | 3.0 | % | 941,829 | 1,233,921 | 10,100 | 43,725 | 143,514 | 41,453 | |||||||||||||||||||||||||
| Total fixed maturity investments | 10,941,672 | 11,045,801 | 62.2 | % | 2.0 | % | 1,590,824 | 6,212,689 | 1,491,504 | 915,375 | 778,447 | 56,962 | |||||||||||||||||||||||||
| 100.0 | % | 14.4 | % | 56.3 | % | 13.5 | % | 8.3 | % | 7.0 | % | 0.5 | % | ||||||||||||||||||||||||
| Weighted average yield to maturity of fixed maturity and short term investments | 1.5 | % | |||||||||||||||||||||||||||||||||||
| Equity investments trading | 360,444 | 2.0 | % | — | — | — | — | — | 360,444 | ||||||||||||||||||||||||||||
| 100.0 | % | — | % | — | % | — | % | — | % | — | % | 100.0 | % | ||||||||||||||||||||||||
| Other investments | |||||||||||||||||||||||||||||||||||||
| Catastrophe bonds | 786,531 | 4.4 | % | — | — | — | — | 786,531 | — | ||||||||||||||||||||||||||||
| Private equity investments | 240,277 | 1.3 | % | — | — | — | — | — | 240,277 | ||||||||||||||||||||||||||||
| Senior secured bank loan funds | 22,579 | 0.1 | % | — | — | — | — | — | 22,579 | ||||||||||||||||||||||||||||
| Hedge funds | 9,327 | 0.1 | % | — | — | — | — | — | 9,327 | ||||||||||||||||||||||||||||
| Total other investments | 1,058,714 | 5.9 | % | — | — | — | — | 786,531 | 272,183 | ||||||||||||||||||||||||||||
| 100.0 | % | — | % | — | % | — | % | — | % | 74.3 | % | 25.7 | % | ||||||||||||||||||||||||
| Investments in other ventures | 90,396 | 0.5 | % | — | — | — | — | — | 90,396 | ||||||||||||||||||||||||||||
| 100.0 | % | — | % | — | % | — | % | — | % | — | % | 100.0 | % | ||||||||||||||||||||||||
| Total investment portfolio | $ | 17,818,597 | 100.0 | % | $ | 6,435,991 | $ | 6,621,609 | $ | 1,492,762 | $ | 920,245 | $ | 1,566,943 | $ | 781,047 | |||||||||||||||||||||
| 100.0 | % | 36.0 | % | 37.2 | % | 8.4 | % | 5.2 | % | 8.8 | % | 4.4 | % | ||||||||||||||||||||||||
| (1) | The credit ratings included in this table are those assigned by Standard & Poor’s Corporation ("S&P"). When ratings provided by S&P were not available, ratings from other nationally recognized rating agencies were used. The Company has grouped short term investments with an A-1+ and A-1 short term issue credit rating as AAA, short term investments with an A-2 short term issue credit rating as AA and short term investments with an A-3 short term issue credit rating as A. |
| 9 | | |
| RenaissanceRe Holdings Ltd. | |||||||||||||||||||
| Total Investment Result | |||||||||||||||||||
| Three months ended | |||||||||||||||||||
| March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||
| Fixed maturity investments | $ | 73,338 | $ | 85,937 | $ | 82,977 | $ | 88,106 | $ | 61,483 | |||||||||
| Short term investments | 12,092 | 11,552 | 15,061 | 17,807 | 11,844 | ||||||||||||||
| Equity investments trading | 1,551 | 1,539 | 1,326 | 916 | 1,027 | ||||||||||||||
| Other investments | |||||||||||||||||||
| Catastrophe bonds | 14,139 | 12,870 | 12,812 | 11,781 | 8,691 | ||||||||||||||
| Other | 1,629 | 2,221 | 2,672 | 1,914 | 1,640 | ||||||||||||||
| Cash and cash equivalents | 1,504 | 1,875 | 1,978 | 2,306 | 1,517 | ||||||||||||||
| 104,253 | 115,994 | 116,826 | 122,830 | 86,202 | |||||||||||||||
| Investment expenses | (4,780 | ) | (3,856 | ) | (5,439 | ) | (4,242 | ) | (4,108 | ) | |||||||||
| Net investment income | 99,473 | 112,138 | 111,387 | 118,588 | 82,094 | ||||||||||||||
| Gross realized gains | 68,847 | 45,814 | 34,710 | 28,512 | 24,373 | ||||||||||||||
| Gross realized losses | (11,360 | ) | (8,380 | ) | (4,609 | ) | (7,217 | ) | (22,943 | ) | |||||||||
| Net realized gains on fixed maturity investments | 57,487 | 37,434 | 30,101 | 21,295 | 1,430 | ||||||||||||||
| Net unrealized (losses) gains on fixed maturity investments trading | (20,345 | ) | (72,956 | ) | 17,226 | 121,991 | 103,922 | ||||||||||||
| Net realized and unrealized gains (losses) on investments-related derivatives | 33,181 | (3,212 | ) | 11,134 | 37,173 | 13,796 | |||||||||||||
| Net realized (losses) gains on equity investments trading | (15,047 | ) | 396 | (72 | ) | 31,899 | (1,161 | ) | |||||||||||
| Net unrealized (losses) gains on equity investments trading | (105,937 | ) | 56,235 | (26,451 | ) | (18,355 | ) | 52,658 | |||||||||||
| Net realized and unrealized (losses) gains on other investments - catastrophe bonds | (14,352 | ) | (4,522 | ) | 9,242 | (11,902 | ) | (2,210 | ) | ||||||||||
| Net realized and unrealized (losses) gains on other investments - other | (45,694 | ) | 5,079 | (6,785 | ) | 9,146 | 1,578 | ||||||||||||
| Net realized and unrealized (losses) gains on investments | (110,707 | ) | 18,454 | 34,395 | 191,247 | 170,013 | |||||||||||||
| Total investment result | $ | (11,234 | ) | $ | 130,592 | $ | 145,782 | $ | 309,835 | $ | 252,107 | ||||||||
| Total investment return - annualized | (0.1 | )% | 3.1 | % | 3.6 | % | 8.0 | % | 8.0 | % | |||||||||
| Retained total investment result (1) | |||||||||||||||||||
| Retained net investment income | $ | 72,603 | $ | 87,739 | $ | 86,408 | $ | 95,400 | $ | 61,442 | |||||||||
| Retained net realized and unrealized (losses) gains on investments | (113,261 | ) | 21,751 | 21,764 | 183,357 | 154,328 | |||||||||||||
| Retained total investment result | $ | (40,658 | ) | $ | 109,490 | $ | 108,172 | $ | 278,757 | $ | 215,770 | ||||||||
| (1) | Includes total investment return, less the portion attributable to redeemable noncontrolling interests, certain third-party vehicles and joint ventures. See "Comments on Regulation G" for a reconciliation of non-GAAP financial measures. |
| 10 | | |
| RenaissanceRe Holdings Ltd. | |||||||||||||||
| Reserves for Claims and Claim Expenses | |||||||||||||||
| Case Reserves | Additional Case Reserves | IBNR | Total | ||||||||||||
| March 31, 2020 | |||||||||||||||
| Property | $ | 1,095,840 | $ | 1,707,754 | $ | 958,827 | $ | 3,762,421 | |||||||
| Casualty and Specialty | 1,644,402 | 105,505 | 3,894,049 | 5,643,956 | |||||||||||
| Other | 330 | — | — | 330 | |||||||||||
| Total | $ | 2,740,572 | $ | 1,813,259 | $ | 4,852,876 | $ | 9,406,707 | |||||||
| December 31, 2019 | |||||||||||||||
| Property | $ | 1,253,406 | $ | 1,631,223 | $ | 1,189,221 | $ | 4,073,850 | |||||||
| Casualty and Specialty | 1,596,426 | 129,720 | 3,583,913 | 5,310,059 | |||||||||||
| Other | 440 | — | — | 440 | |||||||||||
| Total | $ | 2,850,272 | $ | 1,760,943 | $ | 4,773,134 | $ | 9,384,349 | |||||||
| September 30, 2019 | |||||||||||||||
| Property | $ | 1,170,009 | $ | 1,493,600 | $ | 916,314 | $ | 3,579,923 | |||||||
| Casualty and Specialty | 1,475,505 | 151,555 | 3,389,344 | 5,016,404 | |||||||||||
| Other | 2,944 | — | 3,166 | 6,110 | |||||||||||
| Total | $ | 2,648,458 | $ | 1,645,155 | $ | 4,308,824 | $ | 8,602,437 | |||||||
| June 30, 2019 | |||||||||||||||
| Property | $ | 1,191,810 | $ | 1,635,595 | $ | 791,628 | $ | 3,619,033 | |||||||
| Casualty and Specialty | 1,450,805 | 128,701 | 3,280,133 | 4,859,639 | |||||||||||
| Other | 3,010 | — | 3,166 | 6,176 | |||||||||||
| Total | $ | 2,645,625 | $ | 1,764,296 | $ | 4,074,927 | $ | 8,484,848 | |||||||
| March 31, 2019 | |||||||||||||||
| Property | $ | 1,243,455 | $ | 1,598,283 | $ | 844,681 | $ | 3,686,419 | |||||||
| Casualty and Specialty | 1,454,164 | 121,165 | 3,125,166 | 4,700,495 | |||||||||||
| Other | 1,404 | — | 3,166 | 4,570 | |||||||||||
| Total (1) | $ | 2,699,023 | $ | 1,719,448 | $ | 3,973,013 | $ | 8,391,484 | |||||||
| (1) | Included in the Company’s reserves for claims and claim expenses balance at March 31, 2019 is $2.4 billion of gross reserves for claims and claim expenses, at fair value, acquired as a result of the acquisition of TMR. |
| 11 | | |
| RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||
| Paid to Incurred Analysis | |||||||||||||||||||||||
| Three months ended March 31, 2020 | Three months ended March 31, 2019 | ||||||||||||||||||||||
| Gross | Recoveries | Net | Gross | Recoveries | Net | ||||||||||||||||||
| Reserve for claims and claim expenses, beginning of period | $ | 9,384,349 | $ | 2,791,297 | $ | 6,593,052 | $ | 6,076,271 | $ | 2,372,221 | $ | 3,704,050 | |||||||||||
| Incurred claims and claim expenses | |||||||||||||||||||||||
| Current year | 790,010 | 232,956 | 557,054 | 300,561 | 69,220 | 231,341 | |||||||||||||||||
| Prior years | (42,295 | ) | (56,195 | ) | 13,900 | 37,558 | 41,864 | (4,306 | ) | ||||||||||||||
| Total incurred claims and claim expenses | 747,715 | 176,761 | 570,954 | 338,119 | 111,084 | 227,035 | |||||||||||||||||
| Paid claims and claim expenses | |||||||||||||||||||||||
| Current year | 34,310 | 3,109 | 31,201 | 9,339 | 1,190 | 8,149 | |||||||||||||||||
| Prior years | 635,378 | 199,092 | 436,286 | 403,340 | 103,220 | 300,120 | |||||||||||||||||
| Total paid claims and claim expenses | 669,688 | 202,201 | 467,487 | 412,679 | 104,410 | 308,269 | |||||||||||||||||
| Amounts acquired (1) | — | — | — | 2,388,210 | 529,435 | 1,858,775 | |||||||||||||||||
| Foreign exchange (2) | (55,669 | ) | (274 | ) | (55,395 | ) | 1,563 | 13 | 1,550 | ||||||||||||||
| Reserve for claims and claim expenses, end of period | $ | 9,406,707 | $ | 2,765,583 | $ | 6,641,124 | $ | 8,391,484 | $ | 2,908,343 | $ | 5,483,141 | |||||||||||
| (1) | Represents the fair value of TMR's reserves for claims and claim expenses, net of reinsurance recoverables, acquired at March 22, 2019. |
| (2) | Reflects the impact of the foreign exchange revaluation of net reserves denominated in non-U.S. dollars as at the balance sheet date. |
| 12 | | |
| RenaissanceRe Holdings Ltd. | |||||||||||||||||||||
| Fee Income | |||||||||||||||||||||
The table below reflects the total fee income earned through third-party capital management as well as various joint ventures and certain structured retrocession agreements to which the Company is a party. Joint ventures include DaVinciRe Holdings Ltd. ("DaVinciRe"), Top Layer Reinsurance Ltd., Vermeer Reinsurance Ltd. ("Vermeer") and certain entities investing in Langhorne Holdings LLC. Managed funds include RenaissanceRe Upsilon Fund Ltd. and RenaissanceRe Medici Fund Ltd. ("Medici"). Structured reinsurance products and other include certain other vehicles and reinsurance contracts which transfer risk to capital.
| Three months ended | |||||||||||||||||||
| March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||
| Management fee income | |||||||||||||||||||
| Joint ventures | $ | 11,781 | $ | 11,858 | $ | 11,434 | $ | 9,519 | $ | 9,735 | |||||||||
| Structured reinsurance products and other | 8,597 | 8,252 | 8,765 | 9,976 | 8,245 | ||||||||||||||
| Managed funds | 6,418 | 3,814 | 4,558 | 6,467 | 3,797 | ||||||||||||||
| Total management fee income | 26,796 | 23,924 | 24,757 | 25,962 | 21,777 | ||||||||||||||
| Performance fee income (loss) | |||||||||||||||||||
| Structured reinsurance products and other | 8,375 | (5,314 | ) | 275 | 8,541 | 4,191 | |||||||||||||
| Joint ventures | 7,828 | (3,374 | ) | 5,278 | 5,218 | 2,538 | |||||||||||||
| Managed funds | 2,363 | (2,036 | ) | 1,688 | 470 | 298 | |||||||||||||
| Total performance fee income (loss) (1) | 18,566 | (10,724 | ) | 7,241 | 14,229 | 7,027 | |||||||||||||
| Total fee income | $ | 45,362 | $ | 13,200 | $ | 31,998 | $ | 40,191 | $ | 28,804 | |||||||||
| (1) | Performance fees are based on the performance of the individual vehicles or products, and may be negative in a particular period if, for example, large losses occur, which can potentially result in no performance fees or the reversal of previously accrued performance fees. |
| 13 | | |
| RenaissanceRe Holdings Ltd. | |||||||||||||
| Noncontrolling Interests | |||||||||||||
The Company consolidates the results of certain of its joint ventures and managed capital vehicles, namely, DaVinciRe, Medici and Vermeer (collectively, the "Consolidated Vehicles"), in its consolidated statements of operations. Net (income) loss attributable to redeemable noncontrolling interests represents the portion of the (income) loss associated with the Company's Consolidated Vehicles included in the Company's consolidated statements of operations that is attributable to third-party investors in these Consolidated Vehicles. A negative number in the table below represents the allocation of net income earned by the Company's Consolidated Vehicles to third-party investors, with a corresponding decrease (increase) to the Company's net income (loss) attributable to RenaissanceRe. Conversely, a positive number in the table below represents the allocation of net losses incurred by the Company's Consolidated Vehicles to third-party investors, with a corresponding increase (decrease) to the Company's net (loss) income attributable to RenaissanceRe.
A summary of the redeemable noncontrolling interests on the Company's consolidated statements of operations is set forth below:
| Three months ended | |||||||||||||||||||
| March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||
| Redeemable noncontrolling interest - DaVinciRe | $ | (84,906 | ) | $ | 25,862 | $ | (30,558 | ) | $ | (59,855 | ) | $ | (62,533 | ) | |||||
| Redeemable noncontrolling interest - Medici | 4,678 | (6,363 | ) | (15,211 | ) | (1,704 | ) | (2,481 | ) | ||||||||||
| Redeemable noncontrolling interest - Vermeer | (17,863 | ) | (16,877 | ) | (16,288 | ) | (10,253 | ) | (5,208 | ) | |||||||||
| Net (income) loss attributable to redeemable noncontrolling interests | $ | (98,091 | ) | $ | 2,622 | $ | (62,057 | ) | $ | (71,812 | ) | $ | (70,222 | ) | |||||
A summary of the redeemable noncontrolling economic ownership of third parties in the Company's consolidated Consolidated Vehicles is set forth below:
| March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | ||||||||||
| DaVinciRe | 78.6 | % | 78.1 | % | 78.1 | % | 78.1 | % | 77.9 | % | ||||
| Medici | 88.8 | % | 87.9 | % | 86.3 | % | 86.1 | % | 82.9 | % | ||||
| Vermeer | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||
| 14 | | |
| RenaissanceRe Holdings Ltd. | |||||||||||||||||||
| Earnings per Share | |||||||||||||||||||
| Three months ended | |||||||||||||||||||
| (common shares in thousands) | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | ||||||||||||||
| Numerator: | |||||||||||||||||||
| Net (loss) income (attributable) available to RenaissanceRe common shareholders | $ | (81,974 | ) | $ | 33,773 | $ | 36,698 | $ | 367,854 | $ | 273,717 | ||||||||
| Amount allocated to participating common shareholders (1) | (146 | ) | (409 | ) | (446 | ) | (4,393 | ) | (3,121 | ) | |||||||||
| $ | (82,120 | ) | $ | 33,364 | $ | 36,252 | $ | 363,461 | $ | 270,596 | |||||||||
| Denominator: | |||||||||||||||||||
| Denominator for basic (loss) income per RenaissanceRe common share - | |||||||||||||||||||
| Weighted average common shares | 43,441 | 43,467 | 43,462 | 43,483 | 42,065 | ||||||||||||||
| Per common share equivalents of employee stock options and non-vested shares | — | 85 | 75 | 38 | 26 | ||||||||||||||
| Denominator for diluted (loss) income per RenaissanceRe common share - | |||||||||||||||||||
| Adjusted weighted average common shares and assumed conversions | 43,441 | 43,552 | 43,537 | 43,521 | 42,091 | ||||||||||||||
| Basic (loss) income per RenaissanceRe common share | $ | (1.89 | ) | $ | 0.77 | $ | 0.83 | $ | 8.36 | $ | 6.43 | ||||||||
| Diluted (loss) income per RenaissanceRe common share | $ | (1.89 | ) | $ | 0.77 | $ | 0.83 | $ | 8.35 | $ | 6.43 | ||||||||
| (1) | Represents earnings and dividends attributable to holders of unvested shares issued pursuant to the Company's stock compensation plans. |
| 15 | | |
| RenaissanceRe Holdings Ltd. | |||||||
| Ratings | |||||||
| A.M. Best (1) | S&P (2) | Moody's (3) | Fitch (4) | ||||
| Renaissance Reinsurance Ltd. | A+ | A+ | A1 | A+ | |||
| DaVinci Reinsurance Ltd. | A | A+ | A3 | — | |||
| Renaissance Reinsurance of Europe Unlimited Company | A+ | A+ | — | — | |||
| Renaissance Reinsurance U.S. Inc. | A+ | A+ | — | — | |||
| RenaissanceRe Europe AG | A+ | A+ | — | — | |||
| RenaissanceRe Specialty U.S. | A+ | A+ | — | — | |||
| Top Layer Reinsurance Ltd. | A+ | AA | — | — | |||
| Vermeer Reinsurance Ltd. | A | — | — | — | |||
| RenaissanceRe Syndicate 1458 | — | — | — | — | |||
| Lloyd's Overall Market Rating | A | A+ | — | AA- | |||
| RenaissanceRe | Very Strong | Very Strong | — | — | |||
Ratings as of May 4, 2020.
(1) The A.M. Best ratings for the Company's principal operating subsidiaries and joint ventures represent the insurer’s financial strength rating. The Lloyd’s Overall Market Rating represents RenaissanceRe Syndicate 1458’s financial strength rating. The A.M. Best rating for RenaissanceRe represents the Company’s Enterprise Risk Management (“ERM”) score.
(2) The S&P ratings for the Company's principal operating subsidiaries and joint ventures represent the insurer’s financial strength rating and the issuer’s long-term issuer credit rating. The Lloyd’s Overall Market Rating represents RenaissanceRe Syndicate 1458’s financial strength rating. The S&P rating for RenaissanceRe represents the rating on its ERM practices.
| (3) | The Moody’s ratings represent the insurer’s financial strength rating. |
| (4) | The Fitch rating for Renaissance Reinsurance represents the insurer’s financial strength rating. The Lloyd’s Overall Market Rating represents RenaissanceRe Syndicate 1458’s financial strength rating. |
| 16 | | |
| RenaissanceRe Holdings Ltd. | |||||||||||||||||||
| Gross Premiums Written | |||||||||||||||||||
| Three months ended | |||||||||||||||||||
| March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||
| Property Segment | |||||||||||||||||||
| Catastrophe | $ | 936,190 | $ | 44,824 | $ | 102,779 | $ | 602,656 | $ | 845,213 | |||||||||
| Other property | 284,336 | 200,177 | 211,621 | 236,544 | 187,171 | ||||||||||||||
| Property segment gross premiums written | $ | 1,220,526 | $ | 245,001 | $ | 314,400 | $ | 839,200 | $ | 1,032,384 | |||||||||
| Casualty and Specialty Segment | |||||||||||||||||||
| General casualty (1) | $ | 246,667 | $ | 197,338 | $ | 191,447 | $ | 258,357 | $ | 153,334 | |||||||||
| Professional liability (2) | 230,487 | 189,838 | 151,754 | 167,206 | 149,377 | ||||||||||||||
| Financial lines (3) | 147,079 | 126,983 | 111,459 | 91,202 | 127,356 | ||||||||||||||
| Other (4) | 180,962 | 146,319 | 92,008 | 120,943 | 101,844 | ||||||||||||||
| Casualty and Specialty segment gross premiums written | $ | 805,195 | $ | 660,478 | $ | 546,668 | $ | 637,708 | $ | 531,911 | |||||||||
| (1) | Includes automobile liability, casualty clash, employer’s liability, umbrella or excess casualty, workers’ compensation and general liability. |
| (2) | Includes directors and officers, medical malpractice, and professional indemnity. |
| (3) | Includes financial guaranty, mortgage guaranty, political risk, surety and trade credit. |
| (4) | Includes accident and health, agriculture, aviation, cyber, energy, marine, satellite and terrorism. Lines of business such as regional multi-line and whole account may have characteristics of various other classes of business, and are allocated accordingly. |
| 17 | | |
| RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||
| Property Segment Supplemental Underwriting Results | |||||||||||||||||||||||
| Three months ended March 31, 2020 | Three months ended March 31, 2019 | ||||||||||||||||||||||
| Catastrophe | Other Property | Total | Catastrophe | Other Property | Total | ||||||||||||||||||
| Gross premiums written | $ | 936,190 | $ | 284,336 | $ | 1,220,526 | $ | 845,213 | $ | 187,171 | $ | 1,032,384 | |||||||||||
| Net premiums written | $ | 477,457 | $ | 197,124 | $ | 674,581 | $ | 444,016 | $ | 120,214 | $ | 564,230 | |||||||||||
| Net premiums earned | $ | 220,655 | $ | 200,680 | $ | 421,335 | $ | 180,237 | $ | 110,508 | $ | 290,745 | |||||||||||
| Net claims and claim expenses incurred | (2,094 | ) | 146,946 | 144,852 | (13,994 | ) | 70,077 | 56,083 | |||||||||||||||
| Acquisition expenses | 28,707 | 56,644 | 85,351 | 24,327 | 29,412 | 53,739 | |||||||||||||||||
| Operational expenses | 35,545 | 8,462 | 44,007 | 23,612 | 4,932 | 28,544 | |||||||||||||||||
| Underwriting income (loss) | $ | 158,497 | $ | (11,372 | ) | $ | 147,125 | $ | 146,292 | $ | 6,087 | $ | 152,379 | ||||||||||
| Net claims and claim expenses incurred - current accident year | $ | 23,382 | $ | 107,462 | $ | 130,844 | $ | 3,490 | $ | 50,716 | $ | 54,206 | |||||||||||
| Net claims and claim expenses incurred - prior accident years | (25,476 | ) | 39,484 | 14,008 | (17,484 | ) | 19,361 | 1,877 | |||||||||||||||
| Net claims and claim expenses incurred - total | $ | (2,094 | ) | $ | 146,946 | $ | 144,852 | $ | (13,994 | ) | $ | 70,077 | $ | 56,083 | |||||||||
| Net claims and claim expense ratio - current accident year | 10.6 | % | 53.5 | % | 31.1 | % | 1.9 | % | 45.9 | % | 18.6 | % | |||||||||||
| Net claims and claim expense ratio - prior accident years | (11.5 | )% | 19.7 | % | 3.3 | % | (9.7 | )% | 17.5 | % | 0.7 | % | |||||||||||
| Net claims and claim expense ratio - calendar year | (0.9 | )% | 73.2 | % | 34.4 | % | (7.8 | )% | 63.4 | % | 19.3 | % | |||||||||||
| Underwriting expense ratio | 29.1 | % | 32.5 | % | 30.7 | % | 26.6 | % | 31.1 | % | 28.3 | % | |||||||||||
| Combined ratio | 28.2 | % | 105.7 | % | 65.1 | % | 18.8 | % | 94.5 | % | 47.6 | % | |||||||||||
| 18 | | |
| RenaissanceRe Holdings Ltd. |
| Comments on Regulation G |
In addition to the GAAP financial measures set forth in this Financial Supplement, the Company has included certain non-GAAP financial measures within the meaning of Regulation G. The Company has consistently provided these financial measures in previous investor communications and the Company's management believes that these measures are important to investors and other interested persons, and that investors and such other persons benefit from having a consistent basis for comparison between quarters and for comparison with other companies within the industry. These measures may not, however, be comparable to similarly titled measures used by companies outside of the insurance industry. Investors are cautioned not to place undue reliance on these non-GAAP measures in assessing the Company's overall financial performance.
Operating Income Available to RenaissanceRe Common Shareholders and Operating Return on Average Common Equity - Annualized
The Company uses “operating income available to RenaissanceRe common shareholders” as a measure to evaluate the underlying fundamentals of its operations and believes it to be a useful measure of its corporate performance. “Operating income available to RenaissanceRe common shareholders” as used herein differs from “net (loss) income (attributable) available to RenaissanceRe common shareholders,” which the Company believes is the most directly comparable GAAP measure, by the exclusion of net realized and unrealized gains and losses on investments, excluding net realized and unrealized gains and losses on other investments - catastrophe bonds, net foreign exchange gains and losses, transaction and integration expenses associated with the acquisition of TMR, the income tax expense or benefit associated with these adjustments and the portion of these adjustments attributable to the Company's redeemable noncontrolling interests." The Company's management believes that “operating income available to RenaissanceRe common shareholders” is useful to investors because it more accurately measures and predicts the Company's results of operations by removing the variability arising from: fluctuations in the fair value of the Company's fixed maturity investment portfolio, equity investments trading, other investments (excluding catastrophe bonds) and investments-related derivatives; fluctuations in foreign exchange rates; certain transaction and integration expenses associated with the acquisition of TMR; the associated income tax expense or benefit of these adjustments; and the portion of these adjustments attributable to Company's redeemable noncontrolling interests. The Company also uses “operating income available to RenaissanceRe common shareholders” to calculate “operating income available to RenaissanceRe common shareholders per common share - diluted” and “operating return on average common equity - annualized.” The following table is a reconciliation of: (1) net (loss) income (attributable) available to RenaissanceRe common shareholders to "operating income available to RenaissanceRe common shareholders"; (2) net (loss) income (attributable) available to RenaissanceRe common shareholders per common share - diluted to "operating income available to RenaissanceRe common shareholders per common share - diluted"; and (3) return on average common equity - annualized to "operating return on average common equity - annualized". Comparative information for all prior periods has been updated to conform to the current methodology and presentation.
| RenaissanceRe Holdings Ltd. |
| Comments on Regulation G |
| Three months ended | |||||||||||||||||||
| March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||
| Net (loss) income (attributable) available to RenaissanceRe common shareholders | $ | (81,974 | ) | $ | 33,773 | $ | 36,698 | $ | 367,854 | $ | 273,717 | ||||||||
| Adjustment for net realized and unrealized losses (gains) on investments, excluding net realized and unrealized losses (gains) on other investments - catastrophe bonds | 96,355 | (22,976 | ) | (25,153 | ) | (203,149 | ) | (172,223 | ) | ||||||||||
| Adjustment for net foreign exchange losses (gains) | 5,728 | 1,126 | 8,275 | (9,309 | ) | 2,846 | |||||||||||||
| Adjustment for transaction and integration expenses associated with the acquisition of TMR | 4,423 | 5,700 | 4,022 | 14,483 | 25,520 | ||||||||||||||
| Adjustment for income tax (benefit) expense (1) | (4,141 | ) | (3,707 | ) | 5,298 | 10,442 | 8,334 | ||||||||||||
| Adjustment for net income (loss) attributable to redeemable noncontrolling interests (2) | 13,019 | (1,293 | ) | 3,541 | 18,518 | 15,414 | |||||||||||||
| Operating income available to RenaissanceRe common shareholders | $ | 33,410 | $ | 12,623 | $ | 32,681 | $ | 198,839 | $ | 153,608 | |||||||||
| Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share - diluted | $ | (1.89 | ) | $ | 0.77 | $ | 0.83 | $ | 8.35 | $ | 6.43 | ||||||||
| Adjustment for net realized and unrealized losses (gains) on investments, excluding net realized and unrealized losses (gains) on other investments - catastrophe bonds | 2.22 | (0.53 | ) | (0.58 | ) | (4.67 | ) | (4.09 | ) | ||||||||||
| Adjustment for net foreign exchange losses (gains) | 0.13 | 0.03 | 0.19 | (0.21 | ) | 0.07 | |||||||||||||
| Adjustment for transaction and integration expenses associated with the acquisition of TMR | 0.10 | 0.13 | 0.09 | 0.33 | 0.61 | ||||||||||||||
| Adjustment for income tax (benefit) expense (1) | (0.10 | ) | (0.09 | ) | 0.12 | 0.24 | 0.20 | ||||||||||||
| Adjustment for net income (loss) attributable to redeemable noncontrolling interests (2) | 0.30 | (0.03 | ) | 0.08 | 0.43 | 0.37 | |||||||||||||
| Operating income available to RenaissanceRe common shareholders per common share - diluted | $ | 0.76 | $ | 0.28 | $ | 0.73 | $ | 4.47 | $ | 3.59 | |||||||||
| Return on average common equity - annualized | (6.3 | )% | 2.5 | % | 2.8 | % | 28.9 | % | 23.5 | % | |||||||||
| Adjustment for net realized and unrealized losses (gains) on investments, excluding net realized and unrealized losses (gains) on other investments - catastrophe bonds | 7.5 | % | (1.7 | )% | (1.9 | )% | (16.0 | )% | (14.8 | )% | |||||||||
| Adjustment for net foreign exchange losses (gains) | 0.4 | % | 0.1 | % | 0.6 | % | (0.7 | )% | 0.2 | % | |||||||||
| Adjustment for transaction and integration expenses associated with the acquisition of TMR | 0.3 | % | 0.4 | % | 0.3 | % | 1.1 | % | 2.2 | % | |||||||||
| Adjustment for income tax (benefit) expense (1) | (0.3 | )% | (0.3 | )% | 0.4 | % | 0.8 | % | 0.7 | % | |||||||||
| Adjustment for net income (loss) attributable to redeemable noncontrolling interests (2) | 1.0 | % | (0.1 | )% | 0.3 | % | 1.5 | % | 1.3 | % | |||||||||
| Operating return on average common equity - annualized | 2.6 | % | 0.9 | % | 2.5 | % | 15.6 | % | 13.1 | % | |||||||||
| (1) | Adjustment for income tax (benefit) expense represents the income tax benefit (expense) associated with the adjustments to net (loss) income (attributable) available to RenaissanceRe common shareholders. The income tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors. |
| (2) | Adjustment for net income (loss) attributable to redeemable noncontrolling interests represents the portion of these adjustments attributable to the Company's redeemable noncontrolling interests associated with the adjustments to net (loss) income (attributable) available to RenaissanceRe common shareholders, including the income tax impact of those adjustments. |
| 19 | | |
| RenaissanceRe Holdings Ltd. |
| Comments on Regulation G |
Tangible Book Value Per Common Share and Tangible Book Value Per Common Share Plus Accumulated Dividends
The Company has included in this Financial Supplement “tangible book value per common share” and “tangible book value per common share plus accumulated dividends.” “Tangible book value per common share” is defined as book value per common share excluding goodwill and intangible assets per share. “Tangible book value per common share plus accumulated dividends” is defined as book value per common share excluding goodwill and intangible assets per share, plus accumulated dividends. The Company's management believes “tangible book value per common share” and “tangible book value per common share plus accumulated dividends” are useful to investors because they provide a more accurate measure of the realizable value of shareholder returns, excluding the impact of goodwill and intangible assets. The following table is a reconciliation of book value per common share to "tangible book value per common share'" and "tangible book value per common share plus accumulated dividends."
| At | |||||||||||||||||||
| March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||
| Book value per common share | $ | 117.15 | $ | 120.53 | $ | 120.07 | $ | 119.17 | $ | 111.05 | |||||||||
| Adjustment for goodwill and other intangibles (1) | (6.46 | ) | (6.50 | ) | (6.55 | ) | (6.60 | ) | (6.66 | ) | |||||||||
| Tangible book value per common share | 110.69 | 114.03 | 113.52 | 112.57 | 104.39 | ||||||||||||||
| Adjustment for accumulated dividends | 21.03 | 20.68 | 20.34 | 20.00 | 19.66 | ||||||||||||||
| Tangible book value per common share plus accumulated dividends | $ | 131.72 | $ | 134.71 | $ | 133.86 | $ | 132.57 | $ | 124.05 | |||||||||
| Quarterly change in book value per common share | (2.8 | )% | 0.4 | % | 0.8 | % | 7.3 | % | 6.6 | % | |||||||||
| Quarterly change in tangible book value per common share plus change in accumulated dividends | (2.6 | )% | 0.7 | % | 1.1 | % | 8.2 | % | 7.0 | % | |||||||||
| Year to date change in book value per common share | (2.8 | )% | 15.7 | % | 15.3 | % | 14.4 | % | 6.6 | % | |||||||||
| Year to date change in tangible book value per common share plus change in accumulated dividends | (2.6 | )% | 17.9 | % | 17.1 | % | 15.7 | % | 7.0 | % | |||||||||
| (1) | At March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019, goodwill and other intangibles included $24.2 million, $24.9 million, $25.6 million, $26.3 million and $27.0 million, respectively, of goodwill and other intangibles included in investments in other ventures, under equity method. |
| 20 | | |
| RenaissanceRe Holdings Ltd. |
| Comments on Regulation G |
Retained Fixed Maturity and Short Term Investments, at Fair Value
The Company has included in this Financial Supplement “retained fixed maturity and short term investments, at fair value.” “Retained fixed maturity and short term investments, at fair value" is defined as total consolidated fixed maturity and short term investments, at fair value, less the portion of fixed maturity and short term investments, at fair value attributable to redeemable noncontrolling interests, certain third party vehicles and joint ventures. “Retained fixed maturity and short term investments, at fair value” differs from total consolidated fixed maturity and short term investments, at fair value, which the Company believes is the most directly comparable GAAP measure, due to the exclusion of fixed maturity and short term investments, at fair value, attributable to redeemable noncontrolling interests, certain third party vehicles and joint ventures. The Company's management believes “retained fixed maturity and short term investments, at fair value” is useful to investors and other interested parties because it provides a measure of the portion of the Company's fixed maturity and short term investments, at fair value, that impacts the investment result included in net (loss) income (attributable) available to RenaissanceRe common shareholders. The following table is a reconciliation of total consolidated fixed maturity and short term investments, at fair value, to “retained fixed maturity and short term investments, at fair value.”
| At | |||||||||||||||||||
| March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||
| Fixed maturity investments, at fair value | $ | 11,045,801 | $ | 11,171,655 | $ | 11,386,228 | $ | 10,479,666 | $ | 9,473,160 | |||||||||
| Short term investments, at fair value | 5,263,242 | 4,566,277 | 4,116,156 | 4,579,171 | 4,012,815 | ||||||||||||||
| Total consolidated fixed maturity and short term investments, at fair value | $ | 16,309,043 | $ | 15,737,932 | $ | 15,502,384 | $ | 15,058,837 | $ | 13,485,975 | |||||||||
| Adjustment for fixed maturity and short term investments attributable to redeemable noncontrolling interests, certain third-party vehicles and joint ventures | (5,184,829 | ) | (4,583,758 | ) | (4,426,685 | ) | (4,271,219 | ) | (3,673,998 | ) | |||||||||
| Retained fixed maturity and short term investments, at fair value | $ | 11,124,214 | $ | 11,154,174 | $ | 11,075,699 | $ | 10,787,618 | $ | 9,811,977 | |||||||||
| 21 | | |
| RenaissanceRe Holdings Ltd. |
| Comments on Regulation G |
Retained Total Investment Result
The Company has included in this Financial Supplement “retained total investment result.” “Retained total investment result" is defined as consolidated total investment result less the portion attributable to redeemable noncontrolling interests, certain third-party vehicles and joint ventures. “Retained total investment result” differs from consolidated total investment result, which the Company believes is the most directly comparable GAAP measure, due to the exclusion of the investment result attributable to redeemable noncontrolling interests, certain third-party vehicles and joint ventures. The Company's management believes “retained total investment result” is useful to investors and other interested parties because it provides a measure of the portion of the Company's investment result, that impacts the investment result included in net (loss) income (attributable) available to RenaissanceRe common shareholders. The following table is a reconciliation of consolidated total investment result to “retained total investment result.”
| Three months ended | |||||||||||||||||||
| March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||||
| Net investment income | $ | 99,473 | $ | 112,138 | 111,387 | $ | 118,588 | $ | 82,094 | ||||||||||
| Adjustment for net investment income attributable to redeemable noncontrolling interests, certain third-party vehicles and joint ventures | (26,870 | ) | (24,399 | ) | $ | (24,979 | ) | (23,188 | ) | (20,652 | ) | ||||||||
| Retained net investment income | 72,603 | 87,739 | 86,408 | 95,400 | 61,442 | ||||||||||||||
| Net realized and unrealized (losses) gains on investments | (110,707 | ) | 18,454 | 34,395 | 191,247 | 170,013 | |||||||||||||
| Adjustment for net realized and unrealized losses (gains) on investments attributable to redeemable noncontrolling interests, certain third-party vehicles and joint ventures | (2,554 | ) | 3,297 | (12,631 | ) | (7,890 | ) | (15,685 | ) | ||||||||||
| Retained net realized and unrealized gains on investments | (113,261 | ) | 21,751 | 21,764 | 183,357 | 154,328 | |||||||||||||
| Total investment result | (11,234 | ) | 130,592 | 145,782 | 309,835 | 252,107 | |||||||||||||
| Adjustment for investment result attributable to redeemable noncontrolling interests, certain third-party vehicles and joint ventures | (29,424 | ) | (21,102 | ) | (37,610 | ) | (31,078 | ) | (36,337 | ) | |||||||||
| Retained total investment result | $ | (40,658 | ) | $ | 109,490 | $ | 108,172 | $ | 278,757 | $ | 215,770 | ||||||||
| 22 | | |