Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 19, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-14428 | |
Entity Registrant Name | RENAISSANCERE HOLDINGS LTD | |
Entity Incorporation, State or Country Code | D0 | |
Entity Tax Identification Number | 98-0141974 | |
Entity Address, Address Line One | Renaissance House | |
Entity Address, Address Line Two | 12 Crow Lane | |
Entity Address, City or Town | Pembroke | |
Entity Address, Country | BM | |
Entity Address, Postal Zip Code | HM 19 | |
City Area Code | 441 | |
Local Phone Number | 295-4513 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 47,105,389 | |
Entity Central Index Key | 0000913144 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common shares | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Shares, Par Value $1.00 per share | |
Trading Symbol | RNR | |
Security Exchange Name | NYSE | |
Series E 5.375% Preference Shares, Par Value $1.00 per share | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Series E 5.375% Preference Shares, Par Value $1.00 per share | |
Trading Symbol | RNR PRE | |
Security Exchange Name | NYSE | |
Depositary Shares, each representing a 1/1,000th interest in a Series F 5. | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/1,000th interest in a Series F 5.750% Preference Share, Par Value $1.00 per share | |
Trading Symbol | RNR PRF | |
Security Exchange Name | NYSE | |
Depositary Shares, each representing a 1/1,000th interest in a Series G 4 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/1,000th interest in a Series G 4.20% Preference Share, Par Value $1.00 per share | |
Trading Symbol | RNR PRG | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Fixed maturity investments trading, at fair value – amortized cost $13,303,855 at June 30, 2021 (December 31, 2020 – $13,155,035) | $ 13,418,389 | $ 13,506,503 |
Short term investments, at fair value | 4,392,652 | 4,993,735 |
Equity investments trading, at fair value | 577,090 | 702,617 |
Other investments, at fair value | 1,585,036 | 1,256,948 |
Investments in other ventures, under equity method | 91,938 | 98,373 |
Total investments | 20,065,105 | 20,558,176 |
Cash and cash equivalents | 1,789,756 | 1,736,813 |
Premiums receivable | 4,481,492 | 2,894,631 |
Prepaid reinsurance premiums | 1,361,041 | 823,582 |
Reinsurance recoverable | 3,187,638 | 2,926,010 |
Accrued investment income | 56,804 | 66,743 |
Deferred acquisition costs and value of business acquired | 883,926 | 633,521 |
Receivable for investments sold | 457,458 | 568,293 |
Other assets | 196,959 | 363,170 |
Goodwill and other intangible assets | 246,576 | 249,641 |
Total assets | 32,726,755 | 30,820,580 |
Liabilities | ||
Reserve for claims and claim expenses | 10,944,742 | 10,381,138 |
Unearned premiums | 4,284,260 | 2,763,599 |
Debt | 1,137,304 | 1,136,265 |
Reinsurance balances payable | 4,489,841 | 3,488,352 |
Payable for investments purchased | 795,185 | 1,132,538 |
Other liabilities | 201,398 | 970,121 |
Total liabilities | 21,852,730 | 19,872,013 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 3,656,419 | 3,388,319 |
Shareholders’ Equity | ||
Preference shares: $1.00 par value – 11,010,000 shares issued and outstanding at June 30, 2021 (December 31, 2020 – 11,010,000) | 525,000 | 525,000 |
Common shares: $1.00 par value – 48,025,898 shares issued and outstanding at June 30, 2021 (December 31, 2020 – 50,810,618) | 48,026 | 50,811 |
Additional paid-in capital | 1,153,881 | 1,623,206 |
Accumulated other comprehensive loss | (14,061) | (12,642) |
Retained earnings | 5,504,760 | 5,373,873 |
Total shareholders’ equity attributable to RenaissanceRe | 7,217,606 | 7,560,248 |
Total liabilities, noncontrolling interests and shareholders’ equity | $ 32,726,755 | $ 30,820,580 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Fixed maturity investments trading, amortized cost | $ 13,303,855 | $ 13,155,035 |
Preference shares, par value (in dollars per share) | $ 1 | $ 1 |
Preference shares, shares issued (In shares) | 11,010,000 | 11,010,000 |
Preference shares, shares outstanding (in shares) | 11,010,000 | 11,010,000 |
Common shares, par value (In dollars per share) | $ 1 | $ 1 |
Common shares, shares issued (In shares) | 48,025,898 | 50,810,618 |
Common shares, shares outstanding (In shares) | 48,025,898 | 50,810,618 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues | ||||
Gross premiums written | $ 2,094,158 | $ 1,701,872 | $ 4,746,600 | $ 3,727,593 |
Net premiums written | 1,512,292 | 1,180,803 | 3,336,375 | 2,450,611 |
Increase in unearned premiums | (319,502) | (170,707) | (989,749) | (527,417) |
Net premiums earned | 1,192,790 | 1,010,096 | 2,346,626 | 1,923,194 |
Net investment income | 80,925 | 89,305 | 160,729 | 188,778 |
Net foreign exchange gains (losses) | 3,234 | (7,195) | (19,554) | (12,923) |
Equity in earnings of other ventures | 8,732 | 9,041 | 3,174 | 13,605 |
Other income (loss) | 586 | (1,201) | 2,757 | (5,637) |
Net realized and unrealized gains (losses) on investments | 191,018 | 448,390 | (154,545) | 337,683 |
Total revenues | 1,477,285 | 1,548,436 | 2,339,187 | 2,444,700 |
Expenses | ||||
Net claims and claim expenses incurred | 520,021 | 510,272 | 1,387,072 | 1,081,226 |
Acquisition expenses | 285,590 | 233,610 | 552,824 | 444,214 |
Operational expenses | 58,203 | 49,077 | 113,514 | 116,538 |
Corporate expenses | 10,125 | 11,898 | 20,530 | 27,889 |
Interest expense | 11,833 | 11,842 | 23,745 | 26,769 |
Total expenses | 885,772 | 816,699 | 2,097,685 | 1,696,636 |
Income before taxes | 591,513 | 731,737 | 241,502 | 748,064 |
Income tax (expense) benefit | (13,862) | (29,875) | 5,654 | (21,029) |
Net income | 577,651 | 701,862 | 247,156 | 727,035 |
Net income attributable to redeemable noncontrolling interests | (113,544) | (118,728) | (66,694) | (216,819) |
Net income available to RenaissanceRe | 464,107 | 583,134 | 180,462 | 510,216 |
Dividends on preference shares | (7,289) | (7,289) | (14,578) | (16,345) |
Net income available to RenaissanceRe common shareholders | $ 456,818 | $ 575,845 | $ 165,884 | $ 493,871 |
Net income available to RenaissanceRe common shareholders per common share – basic (in dollars per share) | $ 9.36 | $ 12.64 | $ 3.36 | $ 11.04 |
Net income available to RenaissanceRe common shareholders per common share – diluted (in dollars per share) | 9.35 | 12.63 | 3.35 | 11.02 |
Dividends per common share (in dollars per share) | $ 0.36 | $ 0.35 | $ 0.72 | $ 0.70 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Comprehensive income | ||||
Net income | $ 577,651 | $ 701,862 | $ 247,156 | $ 727,035 |
Change in net unrealized losses on investments, net of tax | (1,022) | (1,488) | (2,833) | (2,145) |
Foreign currency translation adjustments, net of tax | (657) | 86 | 1,414 | 1,018 |
Comprehensive income | 575,972 | 700,460 | 245,737 | 725,908 |
Net income attributable to redeemable noncontrolling interests | (113,544) | (118,728) | (66,694) | (216,819) |
Comprehensive income attributable to redeemable noncontrolling interests | (113,544) | (118,728) | (66,694) | (216,819) |
Comprehensive income available to RenaissanceRe | $ 462,428 | $ 581,732 | $ 179,043 | $ 509,089 |
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 | Retained earnings |
Beginning balance at Dec. 31, 2019 | $ 650,000 | $ 44,148 | $ 568,277 | $ (1,939) | $ 4,710,881 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Repurchase of shares | (125,000) | (406) | (62,215) | |||
Issuance of shares | 6,777 | 1,088,772 | ||||
Issuance of restricted stock awards | 292 | 8,257 | ||||
Change in redeemable noncontrolling interests | (353) | |||||
Change in net unrealized losses on investments, net of tax | $ (2,145) | (2,145) | ||||
Foreign currency translation adjustments, net of tax | 1,018 | 1,018 | ||||
Net income | 727,035 | |||||
Net income attributable to redeemable noncontrolling interests | (216,819) | (216,819) | ||||
Dividends on common shares | (33,100) | (33,063) | ||||
Dividends on preference shares | (16,345) | (16,345) | ||||
Ending balance at Jun. 30, 2020 | 7,347,172 | 525,000 | 50,811 | 1,602,738 | (3,066) | 5,171,689 |
Beginning balance at Mar. 31, 2020 | 525,000 | 44,034 | 502,608 | (1,664) | 4,613,548 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Repurchase of shares | 0 | 0 | 0 | |||
Issuance of shares | 6,777 | 1,088,772 | ||||
Issuance of restricted stock awards | 0 | 11,362 | ||||
Change in redeemable noncontrolling interests | (4) | |||||
Change in net unrealized losses on investments, net of tax | (1,488) | (1,488) | ||||
Foreign currency translation adjustments, net of tax | 86 | 86 | ||||
Net income | 701,862 | |||||
Net income attributable to redeemable noncontrolling interests | (118,728) | (118,728) | ||||
Dividends on common shares | (17,704) | |||||
Dividends on preference shares | (7,289) | (7,289) | ||||
Ending balance at Jun. 30, 2020 | 7,347,172 | 525,000 | 50,811 | 1,602,738 | (3,066) | 5,171,689 |
Beginning balance at Dec. 31, 2020 | 7,560,248 | 525,000 | 50,811 | 1,623,206 | (12,642) | 5,373,873 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Repurchase of shares | 0 | (3,020) | (477,640) | |||
Issuance of shares | 0 | 0 | ||||
Issuance of restricted stock awards | 235 | 11,005 | ||||
Change in redeemable noncontrolling interests | (2,690) | |||||
Change in net unrealized losses on investments, net of tax | (2,833) | (2,833) | ||||
Foreign currency translation adjustments, net of tax | 1,414 | 1,414 | ||||
Net income | 247,156 | |||||
Net income attributable to redeemable noncontrolling interests | (66,694) | (66,694) | ||||
Dividends on common shares | (35,000) | (34,997) | ||||
Dividends on preference shares | (14,578) | (14,578) | ||||
Ending balance at Jun. 30, 2021 | 7,217,606 | 525,000 | 48,026 | 1,153,881 | (14,061) | 5,504,760 |
Beginning balance at Mar. 31, 2021 | 525,000 | 49,970 | 1,450,627 | (12,382) | 5,065,122 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Repurchase of shares | 0 | (1,944) | (307,071) | |||
Issuance of shares | 0 | 0 | ||||
Issuance of restricted stock awards | 0 | 11,150 | ||||
Change in redeemable noncontrolling interests | (825) | |||||
Change in net unrealized losses on investments, net of tax | (1,022) | (1,022) | ||||
Foreign currency translation adjustments, net of tax | (657) | (657) | ||||
Net income | 577,651 | |||||
Net income attributable to redeemable noncontrolling interests | (113,544) | (113,544) | ||||
Dividends on common shares | (17,180) | |||||
Dividends on preference shares | (7,289) | (7,289) | ||||
Ending balance at Jun. 30, 2021 | $ 7,217,606 | $ 525,000 | $ 48,026 | $ 1,153,881 | $ (14,061) | $ 5,504,760 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows provided by operating activities | ||
Net income | $ 247,156 | $ 727,035 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Amortization, accretion and depreciation | (7,927) | (8,526) |
Equity in undistributed earnings of other ventures | 15,848 | 1,388 |
Net realized and unrealized losses (gains) on investments | 160,077 | (337,683) |
Change in: | ||
Premiums receivable | (1,586,861) | (920,069) |
Prepaid reinsurance premiums | (537,459) | (498,422) |
Reinsurance recoverable | (261,628) | 16,939 |
Deferred acquisition costs and value of business acquired | (250,405) | (70,295) |
Reserve for claims and claim expenses | 563,604 | (18,880) |
Unearned premiums | 1,520,661 | 1,018,666 |
Reinsurance balances payable | 1,001,489 | 1,263,336 |
Other | (529,386) | (316,524) |
Net cash provided by operating activities | 335,169 | 856,965 |
Cash flows provided by (used in) investing activities | ||
Proceeds from sales and maturities of fixed maturity investments trading | 8,921,362 | 8,340,351 |
Purchases of fixed maturity investments trading | (9,251,778) | (8,949,454) |
Net sales (purchases) of equity investments trading | 123,242 | (45,008) |
Net sales (purchases) of short term investments | 624,792 | (990,604) |
Net purchases of other investments | (286,511) | (90,010) |
Net purchases of investments in other ventures | (15,342) | (1,994) |
Return of investment from investment in other ventures | 2,622 | 9,157 |
Net cash provided by (used in) investing activities | 118,387 | (1,727,562) |
Cash flows (used in) provided by financing activities | ||
Dividends paid – RenaissanceRe common shares | (34,997) | (33,063) |
Dividends paid – preference shares | (14,578) | (16,345) |
RenaissanceRe common share issuance, net of expenses | 0 | 1,095,549 |
RenaissanceRe common share repurchases | (480,660) | (62,621) |
Repayment of debt | 0 | (250,000) |
Redemption of 6.08% Series C preference shares | 0 | (125,000) |
Net third-party redeemable noncontrolling interest share transactions | 140,439 | 79,283 |
Taxes paid on withholding shares | (9,897) | (10,243) |
Net cash (used in) provided by financing activities | (399,693) | 677,560 |
Effect of exchange rate changes on foreign currency cash | (920) | (187) |
Net increase (decrease) in cash and cash equivalents | 52,943 | (193,224) |
Cash and cash equivalents, beginning of period | 1,736,813 | 1,379,068 |
Cash and cash equivalents, end of period | $ 1,789,756 | $ 1,185,844 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) | 6 Months Ended |
Jun. 30, 2021 | |
Series C Preference Shares | |
Dividend rate, percentage | 6.08% |
Organization
Organization | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | ORGANIZATION This report on Form 10-Q should be read in conjunction with RenaissanceRe’s Annual Report on Form 10-K (“Form 10-K”) for the fiscal year ended December 31, 2020. RenaissanceRe was formed under the laws of Bermuda on June 7, 1993. Together with its wholly owned and majority-owned subsidiaries, joint ventures and managed funds, the Company provides property, casualty and specialty reinsurance and certain insurance solutions to its customers. • Renaissance Reinsurance Ltd. (“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. 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 Syndicate 1458 (“Syndicate 1458”) is the Company’s Lloyd’s syndicate. RenaissanceRe Corporate Capital (UK) Limited, a wholly owned subsidiary of RenaissanceRe, is Syndicate 1458’s sole corporate member. RenaissanceRe Syndicate Management Ltd., a wholly owned subsidiary of RenaissanceRe, is the managing agent for Syndicate 1458. • RenaissanceRe Europe AG (“RREAG”), a Swiss-domiciled reinsurance company, which has branches in Australia, Bermuda, the U.K. and the U.S., provides property, casualty and specialty reinsurance coverages to insurers and reinsurers on a worldwide basis. • RenaissanceRe Specialty U.S. Ltd., a Bermuda-domiciled insurer, which operates subject to U.S. federal income tax. • DaVinci Reinsurance Ltd. (“DaVinci”), a wholly-owned subsidiary of DaVinciRe Holdings Ltd. (“DaVinciRe”), is a managed joint venture formed by the Company to principally write property catastrophe reinsurance and certain casualty and specialty reinsurance lines of business on a global basis. • Top Layer Reinsurance Ltd. is a managed joint venture formed by the Company to write high excess non-U.S. property catastrophe reinsurance. • RenaissanceRe Underwriting Managers U.S. LLC, is licensed as a reinsurance intermediary broker in the State of Connecticut and underwrites specialty treaty reinsurance solutions on both a quota share and excess of loss basis on behalf of affiliates. • Renaissance Underwriting Managers, Ltd. (“RUM”), a wholly owned subsidiary of RenaissanceRe, acts as exclusive underwriting manager for certain of our joint ventures or managed funds in return for fee-based income and profit participation. • RenaissanceRe Fund Management Ltd. (“RFM”) is a wholly-owned Bermuda exempted company and acts as the exclusive investment fund manager for several of the Company’s joint ventures or managed funds, in return for a management fee, a performance based incentive fee, or both. RFM is registered as an Exempt Reporting Adviser with the Securities and Exchange Commission and serves as the investment adviser to third-party investors in the various private investment partnerships and insurance-related investment products offered by the Company. • RenaissanceRe Medici Fund Ltd. (“Medici”) is an exempted company, incorporated under the laws of Bermuda and registered as an institutional fund. Medici invests, primarily on behalf of third-party investors, in various instruments that have returns primarily tied to property catastrophe risk. • Upsilon RFO Re Ltd., formerly known as Upsilon Reinsurance II Ltd. (“Upsilon RFO”), a Bermuda domiciled collateralized insurer, is a managed fund formed by the Company principally to provide additional capacity to the worldwide aggregate and per-occurrence primary and retrocessional property catastrophe excess of loss market. • RenaissanceRe Upsilon Fund Ltd., an exempted Bermuda segregated accounts company registered as a Class A Professional Fund provides a fund structure through which third-party investors can invest in reinsurance risk managed by the Company. • Vermeer Reinsurance Ltd. (“Vermeer”), an exempted Bermuda reinsurer, provides capacity focused on risk remote layers in the U.S. property catastrophe market. The Company maintains a majority voting control of Vermeer, while Stichting Pensioenfonds Zorg en Welzijn (“PFZW”), a pension fund represented by PGGM Vermogensbeheer B.V., a Dutch pension fund manager, retains economic benefits. • Mona Lisa Re Ltd. (“Mona Lisa Re”), a Bermuda domiciled SPI, provides reinsurance capacity to subsidiaries of RenaissanceRe, namely Renaissance Reinsurance and DaVinci, through reinsurance agreements which are collateralized and funded by Mona Lisa Re through the issuance of one or more series of principal-at-risk variable rate notes. • Fibonacci Reinsurance Ltd. ("Fibonacci Re"), a Bermuda-domiciled special purpose insurer (“SPI”), provides collateralized capacity to Renaissance Reinsurance and its affiliates. Fibonacci Re raises capital from third-party investors and the Company, via private placements of participating notes which are listed on the Bermuda Stock Exchange. • The Company and Reinsurance Group of America, Incorporated are engaged in an initiative (“Langhorne”) to source third-party capital to support reinsurers targeting large in-force life and annuity blocks. Langhorne Holdings LLC (“Langhorne Holdings”) was incorporated to own and manage certain reinsurance entities within Langhorne. Langhorne Partners LLC (“Langhorne Partners”) is the general partner for Langhorne and manages the third-parties investing in Langhorne Holdings. • Following the acquisition of Tokio Millennium Re AG and certain associated entities and subsidiaries (collectively, “TMR”) on March 22, 2019, the Company managed Shima Reinsurance Ltd. (“Shima Re”), Norwood Re Ltd. (“Norwood Re”) and Blizzard Re Ltd. (“Blizzard,” together with Shima Re and Norwood Re, the “TMR managed third-party capital vehicles”), which provided third-party investors with access to reinsurance risk. The TMR managed third-party capital vehicles no longer write new business. The Company ceased providing management services to Blizzard effective November 1, 2020, and to Shima Re and Norwood Re effective December 1, 2020. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
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, 2020, except as described below. BASIS OF PRESENTATION These consolidated financial statements have been prepared on the basis of accounting principles generally accepted in the U.S. (“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 recoverable and premiums receivable, including provisions for reinsurance recoverable and premiums receivable to reflect expected credit losses; estimates of written and earned premiums; fair value, including the fair value of investments, financial instruments and derivatives; impairment charges; deferred acquisition costs and the value of business acquired and the Company’s deferred tax valuation allowance. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes |
Investments
Investments | 6 Months Ended |
Jun. 30, 2021 | |
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 $ 6,327,895 $ 4,960,409 Agencies 325,051 368,032 Non-U.S. government 508,320 491,531 Non-U.S. government-backed corporate 396,966 338,014 Corporate 3,387,433 4,261,025 Agency mortgage-backed 703,757 1,113,792 Non-agency mortgage-backed 260,432 291,444 Commercial mortgage-backed 588,262 791,272 Asset-backed 920,273 890,984 Total fixed maturity investments trading $ 13,418,389 $ 13,506,503 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, 2021 Amortized Fair Value Due in less than one year $ 361,912 $ 365,154 Due after one through five years 6,135,329 6,191,724 Due after five through ten years 4,041,811 4,060,205 Due after ten years 318,245 328,582 Mortgage-backed 1,528,338 1,552,451 Asset-backed 918,220 920,273 Total $ 13,303,855 $ 13,418,389 Equity Investments Trading The following table summarizes the fair value of equity investments trading: June 30, December 31, Financials $ 227,257 $ 452,765 Communications and technology 93,458 119,592 Consumer 58,699 44,477 Industrial, utilities and energy 32,891 43,380 Healthcare 32,041 35,140 Basic materials 6,051 7,263 Exchange traded funds 126,693 — Total $ 577,090 $ 702,617 Pledged Investments At June 30, 2021, $8.6 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, 2020 - $8.1 billion). Of this amount, $2.0 billion is on deposit with, or in trust accounts for the benefit of, U.S. state regulatory authorities (December 31, 2020 - $2.5 billion). Reverse Repurchase Agreements At June 30, 2021, the Company held $77.8 million (December 31, 2020 - $126.5 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 $ 59,510 $ 69,943 $ 122,443 $ 143,281 Short term investments 782 6,049 1,355 18,141 Equity investments 1,626 1,666 3,117 3,217 Other investments Catastrophe bonds 16,681 13,519 31,149 27,658 Other 9,339 1,107 13,140 2,736 Cash and cash equivalents 159 837 261 2,341 88,097 93,121 171,465 197,374 Investment expenses (7,172) (3,816) (10,736) (8,596) Net investment income $ 80,925 $ 89,305 $ 160,729 $ 188,778 Net Realized and Unrealized Gains (Losses) on Investments Net realized and unrealized gains (losses) on investments are as follows: Three months ended Six months ended June 30, June 30, June 30, June 30, Net realized gains on fixed maturity investments trading $ 33,161 $ 105,849 $ 53,559 $ 163,336 Net unrealized gains (losses) on fixed maturity investments trading 64,015 197,678 (233,003) 177,333 Net realized and unrealized gains (losses) on fixed maturity investments trading 97,176 303,527 (179,444) 340,669 Net realized and unrealized (losses) gains on investments-related derivatives (9,329) 24,372 5,532 57,553 Net realized gains (losses) on equity investments trading 93,411 422 203,298 (14,625) Net unrealized (losses) gains on equity investments trading (27,845) 107,896 (205,654) 1,959 Net realized and unrealized gains (losses) on equity investments trading 65,566 108,318 (2,356) (12,666) Net realized and unrealized gains (losses) on other investments - catastrophe bonds 2 4,452 (19,081) (9,900) Net realized and unrealized gains (losses) on other investments - other 37,603 7,721 40,804 (37,973) Net realized and unrealized gains (losses) on investments $ 191,018 $ 448,390 $ (154,545) $ 337,683 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
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 as 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 at the measurement date. 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, 2021 Total Quoted Significant Significant Fixed maturity investments U.S. treasuries $ 6,327,895 $ 6,327,895 $ — $ — Agencies 325,051 — 325,051 — Non-U.S. government 508,320 — 508,320 — Non-U.S. government-backed corporate 396,966 — 396,966 — Corporate 3,387,433 — 3,387,433 — Agency mortgage-backed 703,757 — 703,757 — Non-agency mortgage-backed 260,432 — 260,432 — Commercial mortgage-backed 588,262 — 588,262 — Asset-backed 920,273 — 920,273 — Total fixed maturity investments 13,418,389 6,327,895 7,090,494 — Short term investments 4,392,652 — 4,392,652 — Equity investments trading 577,090 577,090 — — Other investments Catastrophe bonds 1,026,397 — 1,026,397 — Private equity investments 81,344 — — 81,344 1,107,741 — 1,026,397 81,344 Fund investments (1) 477,295 Total other investments 1,585,036 — 1,026,397 81,344 Other assets and (liabilities) Assumed and ceded (re)insurance contracts (2) (6,193) — — (6,193) Derivative assets (3) 9,465 837 8,628 — Derivative liabilities (3) (15,630) (1,281) (14,349) — Total other assets and (liabilities) (12,358) (444) (5,721) (6,193) $ 19,960,809 $ 6,904,541 $ 12,503,822 $ 75,151 (1) Fund investments, which are comprised of private equity and private credit funds, senior secured bank loan funds and hedge funds, are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient and 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, 2021 was $Nil of other assets and $6.2 million of other liabilities. (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, 2020 Total Quoted Significant Significant Fixed maturity investments U.S. treasuries $ 4,960,409 $ 4,960,409 $ — $ — Agencies 368,032 — 368,032 — Non-U.S. government 491,531 — 491,531 — Non-U.S. government-backed corporate 338,014 — 338,014 — Corporate 4,261,025 — 4,261,025 — Agency mortgage-backed 1,113,792 — 1,113,792 — Non-agency mortgage-backed 291,444 — 291,444 — Commercial mortgage-backed 791,272 — 791,272 — Asset-backed 890,984 — 890,984 — Total fixed maturity investments 13,506,503 4,960,409 8,546,094 — Short term investments 4,993,735 — 4,993,735 — Equity investments trading 702,617 702,617 — — Other investments Catastrophe bonds 881,290 — 881,290 — Private equity investments 79,807 — — 79,807 961,097 — 881,290 79,807 Fund investments (1) 295,851 Total other investments 1,256,948 — 881,290 79,807 Other assets and (liabilities) Assumed and ceded (re)insurance contracts (2) (6,211) — — (6,211) Derivative assets (3) 45,233 156 45,077 — Derivative liabilities (3) (22,360) (567) (21,793) — Total other assets and (liabilities) 16,662 (411) 23,284 (6,211) $ 20,476,465 $ 5,662,615 $ 14,444,403 $ 73,596 (1) Fund investments, which are comprised of private equity and private credit funds, senior secured bank loan funds and hedge funds, are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient and 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, 2020 was $1.4 million of other assets and $7.6 million of other liabilities. (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, 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 and 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, 2021, the Company’s U.S. treasuries fixed maturity investments were primarily priced by pricing services and had a weighted average yield to maturity of 0.7% and a weighted average credit quality of AA (December 31, 2020 - 0.4% 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, 2021, the Company’s agency fixed maturity investments had a weighted average yield to maturity of 1.1% and a weighted average credit quality of AA (December 31, 2020 - 0.9% 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. Non-U.S. Government Level 2 - At June 30, 2021, the Company’s non-U.S. government fixed maturity investments had a weighted average yield to maturity of 0.8% and a weighted average credit quality of AA (December 31, 2020 - 0.5% 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, 2021, the Company’s non-U.S. government-backed corporate fixed maturity investments had a weighted average yield to maturity of 1.3% and a weighted average credit quality of AA (December 31, 2020 - 1.0% and AA, respectively). Non-U.S. government-backed corporate 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 quality 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, 2021, the Company’s corporate fixed maturity investments principally consisted of U.S. and international corporations and had a weighted average yield to maturity of 2.4% and a weighted average credit quality of BBB (December 31, 2020 - 2.2% 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, 2021, the Company’s agency mortgage-backed fixed maturity investments included agency residential mortgage-backed securities with a weighted average yield to maturity of 1.2%, a weighted average credit quality of AA and a weighted average life of 3.5 years (December 31, 2020 - 1.0%, AA and 3.8 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 - At June 30, 2021, the Company’s non-agency mortgage-backed fixed maturity investments had a weighted average yield to maturity of 2.6%, a weighted average credit quality of non-investment grade and a weighted average life of 5.6 years (December 31, 2020 - 3.0%, non-investment grade and 5.2 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, 2021, the Company’s commercial mortgage-backed fixed maturity investments had a weighted average yield to maturity of 1.6%, a weighted average credit quality of AA, and a weighted average life of 4.2 years (December 31, 2020 - 1.5%, AAA and 5.0 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, 2021, the Company’s asset-backed fixed maturity investments had a weighted average yield to maturity of 1.7%, a weighted average credit quality of AA and a weighted average life of 4.6 years (December 31, 2020 - 1.8%, AA and 3.2 years, respectively). The underlying collateral for the Company’s asset-backed fixed maturity investments primarily consists of collateralized loan obligations 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, 2021, the Company’s short term investments had a weighted average yield to maturity of 0.0% and a weighted average credit quality of AAA (December 31, 2020 - 0.1% 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 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, 2021 Fair Value Valuation Technique Unobservable Low High Weighted Average or Actual Other investments Private equity investment $ 81,344 Internal valuation model Discount rate n/a n/a 9.0% Liquidity discount n/a n/a 15.0 % Total other investments 81,344 Other assets and (liabilities) Assumed and ceded (re)insurance contracts (6,193) Internal valuation model Net undiscounted cash flows n/a n/a $ 13,233 Expected loss ratio n/a n/a 20.0 % Discount rate n/a n/a 0.9 % Total other assets and (liabilities) (6,193) Total assets and (liabilities) measured at fair value on a recurring basis using Level 3 inputs $ 75,151 At December 31, 2020 Fair Value Valuation Technique Unobservable Inputs Low High Weighted Average or Actual Private equity investment $ 79,807 Internal valuation model Discount rate n/a n/a 9.0 % Liquidity discount n/a n/a 15.0 % Total other investments 79,807 Other assets and (liabilities) Assumed and ceded (re)insurance contracts (6,211) Internal valuation model Net undiscounted cash flows n/a n/a $ 12,514 Expected loss ratio n/a n/a 24.0 % Discount rate n/a n/a 0.4 % Total other assets and (liabilities) (6,211) Total other assets and (liabilities) measured at fair value on a recurring basis using Level 3 inputs $ 73,596 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 Other assets Total Balance - April 1, 2021 $ 75,874 $ (6,421) $ 69,453 Total realized and unrealized gains (losses) Included in net realized and unrealized gains (losses) on investments 1,415 — 1,415 Included in other income (loss) — 440 440 Total foreign exchange gains 1 — 1 Purchases 5,000 (212) 4,788 Sales (946) — (946) Settlements — — — Balance - June 30, 2021 $ 81,344 $ (6,193) $ 75,151 Other Other assets Total Balance - January 1, 2021 $ 79,807 $ (6,211) $ 73,596 Total realized and unrealized gains (losses) Included in net realized and unrealized gains (losses) on investments (2,521) — (2,521) Included in other income (loss) — 536 536 Total foreign exchange gains 4 — 4 Purchases 5,000 (518) 4,482 Sales (946) — (946) Settlements — — — Balance - June 30, 2021 $ 81,344 $ (6,193) $ 75,151 Other Other assets and (liabilities) Total Balance - April 1, 2020 $ 72,620 $ 1,223 $ 73,843 Total realized and unrealized losses Included in net realized and unrealized gains on investments (380) — (380) Included in other income (loss) — (1,713) (1,713) Purchases — (482) (482) Sales (790) — (790) Settlements — (5,739) (5,739) Balance - June 30, 2020 $ 71,450 $ (6,711) $ 64,739 Other Other assets and (liabilities) Total Balance - January 1, 2020 $ 74,634 $ 4,731 $ 79,365 Total realized and unrealized losses Included in net realized and unrealized gains on investments (14,536) — (14,536) Included in other income (loss) — (4,610) (4,610) Total foreign exchange losses (21) — (21) Purchases 20,962 (1,093) 19,869 Sales (9,589) — (9,589) Settlements — (5,739) (5,739) Balance - June 30, 2020 $ 71,450 $ (6,711) $ 64,739 Other Investments Private Equity Investments Level 3 - At June 30, 2021, the Company’s other investments included $81.3 million of private equity investments which are recorded at fair value, with the fair value obtained through the use of internal valuation models. The Company measured the fair value of these investments using multiples of net tangible book value of the underlying entity. The significant unobservable inputs used in the fair value measurement of these investments are liquidity discount rates applied to each of the net tangible book value multiples used in the internal valuation models, and discount rates applied to the expected cash flows of the underlying entity in various scenarios. These unobservable inputs in isolation can cause significant increases or decreases in fair value. Generally, an increase in the liquidity discount rate or discount rates would result in a decrease in the fair value of these private equity investments. Other Assets and Liabilities Assumed and Ceded (Re)insurance Contracts Level 3 - At June 30, 2021, the Company had a $6.2 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, 2021 were debt obligations of $1.1 billion (December 31, 2020 - $1.1 billion). At June 30, 2021, the fair value of the Company’s debt obligations was $1.2 billion (December 31, 2020 – $1.3 billion). 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. Refer to “Note 7. Debt and Credit Facilities” for additional information related to 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 $ 1,585,036 $ 1,256,948 Other assets $ 4,418 $ 8,982 Other liabilities $ 10,611 $ 15,193 Included in net realized and unrealized gains (losses) on investments for the three and six months ended June 30, 2021 were net unrealized gains of $41.9 million and $26.0 million, respectively, related to the changes in fair value of other investments (2020 – net unrealized gains of $15.6 million and losses of $44.5 million, 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, 2021 Fair Value Unfunded Redemption Frequency Redemption Redemption Private equity and private credit funds $ 453,675 $ 1,186,194 See below See below See below Senior secured bank loan funds 12,251 7,818 See below See below See below Hedge funds 11,369 — See below See below See below Total other investments measured using net asset valuations $ 477,295 $ 1,194,012 Private Equity Funds and Private Credit Funds The Company’s investments in private equity funds and private credit funds include alternative asset limited partnerships (or similar corporate structures) that invest in certain private equity and private credit asset classes including U.S. and global leveraged buyouts, U.S. direct lending, secondaries, 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 fund investments in advance of dissolution of the applicable limited partnerships. 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 fund. 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, 2021, the Company had $12.3 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 At June 30, 2021, the Company had $11.4 million of investments in hedge funds that are primarily focused on global credit opportunities which are generally redeemable at the option of the Company. |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2021 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [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 $ 259,712 $ 177,562 $ 484,851 $ 325,254 Assumed 1,834,446 1,524,310 4,261,749 3,402,339 Ceded (581,866) (521,069) (1,410,225) (1,276,982) Net premiums written $ 1,512,292 $ 1,180,803 $ 3,336,375 $ 2,450,611 Premiums earned Direct $ 188,414 $ 138,327 $ 350,503 $ 272,556 Assumed 1,455,002 1,281,357 2,871,648 2,431,090 Ceded (450,626) (409,588) (875,525) (780,452) Net premiums earned $ 1,192,790 $ 1,010,096 $ 2,346,626 $ 1,923,194 Claims and claim expenses Gross claims and claim expenses incurred $ 666,106 $ 647,226 $ 1,916,352 $ 1,394,941 Claims and claim expenses recovered (146,085) (136,954) (529,280) (313,715) Net claims and claim expenses incurred $ 520,021 $ 510,272 $ 1,387,072 $ 1,081,226 In assessing an allowance for reinsurance assets, which includes premiums receivable and reinsurance recoverable, the Company considers historical information, financial strength of reinsurers, collateralization amounts, and ratings to determine the appropriateness of the allowance. In assessing future default for reinsurance assets, the Company evaluates the provision for current expected credit losses under the probability of default and loss given default method. The Company utilizes its internal capital and risk models, which use counterparty ratings from major rating agencies, and assesses the current market conditions for the likelihood of default. The Company updates its internal capital and risk models for counterparty ratings and current market conditions on a periodic basis. Historically, the Company has not experienced material credit losses from reinsurance assets. Premiums receivable reflect premiums written based on contract and policy terms and include estimates based on information received from both insureds and ceding companies and our own judgment. Consequently, premiums receivable include premiums reported by the ceding companies, supplemented by our estimates of premiums that are written but not reported. Due to the nature of reinsurance, ceding companies routinely report and remit premiums to us subsequent to the contract coverage period, although the time lag involved in the process of reporting and collecting premiums is typically shorter than the lag in reporting losses. At June 30, 2021, the Company’s premiums receivable balance was $4.5 billion (December 31, 2020 - $2.9 billion). Of the Company’s premiums receivable balance as of June 30, 2021, the majority are receivable from highly rated counterparties and Lloyd’s syndicates. The provision for current expected credit losses on the Company’s premiums receivable was $3.7 million at June 30, 2021 (December 31, 2020 - $6.0 million). The following table provides a roll forward of the provision for current expected credit losses of the Company’s premiums receivable: Three months ended June 30, 2021 Six months ended June 30, 2021 Beginning balance $ 3,782 $ 5,961 Provision for allowance (57) (2,236) Ending balance $ 3,725 $ 3,725 Reinsurance recoverable reflects amounts due from reinsurers based on the claim liabilities associated with the reinsured policy. The Company accrues amounts that are due from assuming companies based on estimated ultimate losses applicable to the contracts. At June 30, 2021, the Company’s reinsurance recoverable balance was $3.2 billion (December 31, 2020 - $2.9 billion). Of the Company’s reinsurance recoverable balance at June 30, 2021, 45.0% is fully collateralized by our reinsurers, 53.8% 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, 2020 - 45.2%, 53.4% and 1.4%, respectively). The reinsurers with the three largest balances accounted for 13.6%, 10.1% and 5.7%, respectively, of the Company’s reinsurance recoverable balance at June 30, 2021 (December 31, 2020 - 15.3%, 10.8% and 6.7%, respectively). The provision for current expected credit losses was $7.0 million at June 30, 2021 (December 31, 2020 - $6.3 million). The three largest company-specific components of the provision for current expected credit losses represented 22.4%, 11.9% and 9.9%, respectively, of the Company’s total provision for current expected credit losses at June 30, 2021 (December 31, 2020 - 13.2%, 13.0% and 6.7%, respectively). The following table provides a roll forward of the provision for current expected credit losses of the Company’s reinsurance recoverable: Three months ended June 30, 2021 Six months ended June 30, 2021 Beginning balance $ 6,605 $ 6,334 Provision for allowance 419 690 Ending balance $ 7,024 $ 7,024 |
Reserve for Claims and Claim Ex
Reserve for Claims and Claim Expenses | 6 Months Ended |
Jun. 30, 2021 | |
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 Company’s reserving committee, which includes members of the Company’s senior management, reviews, discusses, and assesses the reasonableness and adequacy of the reserving estimates included in our unaudited financial statements. 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, 2021 Case Additional IBNR Total Property $ 1,383,754 $ 1,513,549 $ 1,773,492 $ 4,670,795 Casualty and Specialty 1,727,051 133,041 4,413,855 6,273,947 Total $ 3,110,805 $ 1,646,590 $ 6,187,347 $ 10,944,742 At December 31, 2020 Property $ 1,127,909 $ 1,617,003 $ 1,627,541 $ 4,372,453 Casualty and Specialty 1,651,150 133,843 4,223,692 6,008,685 Total $ 2,779,059 $ 1,750,846 $ 5,851,233 $ 10,381,138 Activity in the liability for unpaid claims and claim expenses is summarized as follows: Six months ended June 30 2021 2020 Reserve for claims and claim expenses, net of reinsurance recoverable, as of beginning of period $ 7,455,128 $ 6,593,052 Net incurred related to: Current year 1,448,133 1,082,732 Prior years (61,061) (1,506) Total net incurred 1,387,072 1,081,226 Net paid related to: Current year 65,278 61,625 Prior years 995,826 1,007,916 Total net paid 1,061,104 1,069,541 Foreign exchange (1) (23,992) (13,626) Reserve for claims and claim expenses, net of reinsurance recoverable, as of end of period 7,757,104 6,591,111 Reinsurance recoverable as of end of period 3,187,638 2,774,358 Reserve for claims and claim expenses as of end of period $ 10,944,742 $ 9,365,469 (1) Reflects the impact of the foreign exchange revaluation of the net reserve for claims and claim expenses denominated in non-U.S. dollars as at the balance sheet date. 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 recoverable, as well as changes to loss related premiums such as reinstatement premiums and redeemable noncontrolling interest, 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 net development by segment of its liability for unpaid claims and claim expenses: Six months ended June 30 2021 2020 (Favorable) adverse development (Favorable) adverse development Property $ (56,145) $ 7,293 Casualty and Specialty (4,916) (8,799) Total net (favorable) adverse development of prior accident years net claims and claim expenses $ (61,061) $ (1,506) Changes to prior year estimated claims reserves increased net income by $61.1 million during the six months ended June 30, 2021 (2020 - increased net income by $1.5 million), excluding the consideration of changes in reinstatement, adjustment or other premium items, profit commissions, redeemable noncontrolling interests - DaVinciRe and Vermeer, and income tax. Property Segment The following tables detail the development of the Company’s liability for net 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 2021 (Favorable) adverse development Catastrophe net claims and claim expenses Large catastrophe events 2020 Large Loss Events $ 16,932 2019 Large Loss Events (1,424) 2018 Large Loss Events (37,910) 2017 Large Loss Events (5,708) Other (2,993) Total large catastrophe events (31,103) Small catastrophe events and attritional loss movements Other small catastrophe events and attritional loss movements (25,042) Total small catastrophe events and attritional loss movements (25,042) Total catastrophe and attritional net claims and claim expenses (56,145) Total net favorable development of prior accident years net claims and claim expenses $ (56,145) The net favorable development of prior accident years net claims and claim expenses within the Company’s Property segment for the six months ended June 30, 2021 of $56.1 million included net favorable development on prior accident years net claims and claim expenses associated with the following large catastrophe events: • $37.9 million associated with Typhoons Jebi, Mangkhut and Trami, Hurricane Florence, the wildfires in California during the third and fourth quarters of 2018, Hurricane Michael and certain losses associated with aggregate loss contracts (collectively, the ”2018 Large Loss Events”); • $5.7 million associated with Hurricanes Harvey, Irma and Maria, the Mexico City Earthquake, the wildfires in California during the fourth quarter of 2017 and certain losses associated with aggregate loss contracts (collectively, the “2017 Large Loss Events”); and partially offset by • $16.9 million of net adverse development associated with Hurricanes Laura, Sally, Delta, Zeta and Eta, the California, Oregon and Washington wildfires and losses associated with aggregate loss contracts (collectively, the “2020 Large Loss Events”). Six months ended June 30 2020 (Favorable) adverse development Catastrophe net claims and claim expenses Large catastrophe events 2019 Large Loss Events $ (19,940) 2018 Large Loss Events (12,306) 2017 Large Loss Events (3,825) Other 7,004 Total large catastrophe events (29,067) Small catastrophe events and attritional loss movements Other small catastrophe events and attritional loss movements 36,360 Total small catastrophe events and attritional loss movements 36,360 Total net adverse development of prior accident years net claims and claim expenses $ 7,293 The net adverse development of prior accident years net claims and claim expenses within the Company’s Property segment in the six months ended June 30, 2020 of $7.3 million included net adverse development of $43.4 million primarily within the Company’s other property class of business and principally driven by higher than expected attritional losses related to lines of business where the Company principally estimates net claims and claim expenses using traditional actuarial methods, combined with the impact of certain of the Company’s whole account ceded protections. Partially offsetting this adverse development was favorable development on prior accident years net claims and claim expenses associated with the following large catastrophe events: • $19.9 million associated with Hurricane Dorian and Typhoon Faxai, Typhoon Hagibis and losses associated with aggregate loss contracts (collectively, the 2019 Large Loss Events); • $12.3 million associated with the 2018 Large Loss Events; and • $3.8 million associated with the 2017 Large Loss Events. 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 2021 2020 Favorable development Favorable development Actuarial methods - actual reported claims less than expected claims $ (4,916) $ (8,799) Total net favorable development of prior accident years net claims and claim expenses $ (4,916) $ (8,799) The net favorable development of prior accident years net claims and claim expenses within the Company’s Casualty and Specialty segment of $4.9 million in the six months ended June 30, 2021 was due to reported losses generally coming in lower than expected on attritional net claims and claim expenses, principally within our specialty lines of business. The net favorable development of prior accident years net claims and claim expenses within the Company’s Casualty and Specialty segment of $8.8 million in the six months ended June 30, 2020 was due to reported losses generally coming in better than expected on attritional net claims and claim expenses. |
Debt and Credit Facilities
Debt and Credit Facilities | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | DEBT AND CREDIT FACILITIES 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, 2020. Debt Obligations A summary of the Company’s debt obligations on its consolidated balance sheets is set forth below: June 30, 2021 December 31, 2020 Fair Value Carrying Value Fair Value Carrying Value 3.600% Senior Notes due 2029 $ 441,516 $ 392,846 $ 453,932 $ 392,391 3.450% Senior Notes due 2027 328,047 297,033 329,661 296,787 3.700% Senior Notes due 2025 310,776 298,612 315,273 298,428 4.750% Senior Notes due 2025 (DaVinciRe) (1) 164,826 148,813 162,203 148,659 Total debt $ 1,245,165 $ 1,137,304 $ 1,261,069 $ 1,136,265 (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, 2021 Issued or Drawn Revolving Credit Facility (1) $ — Bilateral Letter of Credit Facilities Secured 386,571 Unsecured 379,343 Funds at Lloyd’s Letter of Credit Facility 225,000 $ 990,914 (1) At June 30, 2021, no amounts were issued or drawn under this facility. |
Noncontrolling Interests
Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2021 | |
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, 2020 Redeemable noncontrolling interest - DaVinciRe $ 1,642,656 $ 1,560,693 Redeemable noncontrolling interest - Medici 880,320 717,999 Redeemable noncontrolling interest - Vermeer 1,133,443 1,109,627 Redeemable noncontrolling interests $ 3,656,419 $ 3,388,319 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 $ 84,266 $ 88,374 $ 44,332 $ 173,280 Redeemable noncontrolling interest - Medici 11,989 13,151 (1,454) 8,473 Redeemable noncontrolling interest - Vermeer 17,289 17,203 23,816 35,066 Net income attributable to redeemable noncontrolling interests $ 113,544 $ 118,728 $ 66,694 $ 216,819 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 and all significant intercompany transactions have been eliminated. 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 28.7% at June 30, 2021 (December 31, 2020 - 21.4%). 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. 2021 During the six months ended June 30, 2021, DaVinciRe completed an equity capital raise of $250.0 million, comprised of $150.9 million from third-party investors and $99.1 million from RenaissanceRe. In addition, RenaissanceRe sold an aggregate of $40.0 million of its shares in DaVinciRe to third-party investors and purchased an aggregate of $156.7 million of shares from third-party investors. The Company’s noncontrolling economic ownership in DaVinciRe subsequent to these transactions was 28.7%. 2020 Effective January 1, 2020, the Company sold an aggregate of $10.0 million of its shares in DaVinciRe to an existing third-party investor. The Company’s noncontrolling economic ownership in DaVinciRe subsequent to this transaction was 21.4%. 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 $ 1,555,714 $ 1,533,085 $ 1,560,693 $ 1,435,581 Redemption of shares from redeemable noncontrolling interest, net of adjustments 2,676 (159) (153,295) 2,448 Sale of shares to redeemable noncontrolling interests — — 190,926 9,991 Net income attributable to redeemable noncontrolling interest 84,266 88,374 44,332 173,280 Ending balance $ 1,642,656 $ 1,621,300 $ 1,642,656 $ 1,621,300 Redeemable Noncontrolling Interest - Medici 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. 2021 During the six months ended June 30, 2021, third-party investors subscribed for $171.5 million and redeemed $7.7 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 13.4% at June 30, 2021. 2020 During the six months ended June 30, 2020, third-party investors subscribed for $90.8 million and redeemed $49.2 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 11.4% at June 30, 2020. 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 $ 737,702 $ 677,283 $ 717,999 $ 632,112 Redemption of shares from redeemable noncontrolling interest, net of adjustments (46) (44,474) (7,745) (49,238) Sale of shares to redeemable noncontrolling interests 130,675 36,158 171,520 90,771 Net income (loss) attributable to redeemable noncontrolling interest 11,989 13,151 (1,454) 8,473 Ending balance $ 880,320 $ 682,118 $ 880,320 $ 682,118 Redeemable Noncontrolling Interest – Vermeer RenaissanceRe owns 100% of the voting non-participating shares of Vermeer, while the sole third-party investor, PFZW, owns 100% of the non-voting participating shares of Vermeer and retains all of the economic benefits. Vermeer is managed by RUM in return for a management fee. The Company has concluded that Vermeer is a VIE as it has voting rights that are not proportional to its participating rights, and the Company is the primary beneficiary of Vermeer. As a result, the Company consolidates Vermeer and all significant inter-company transactions have been eliminated. As PFZW owns all of the economics of Vermeer, all of Vermeer’s earnings are allocated to PFZW in the consolidated statement of operations as net income attributable to redeemable noncontrolling interests. The Company has not provided any financial or other support to Vermeer that it was not contractually required to provide. The activity in redeemable noncontrolling interest – Vermeer is detailed in the table below: Three months ended Six months ended June 30, June 30, June 30, June 30, Beginning balance $ 1,116,154 $ 1,021,478 $ 1,109,627 $ 1,003,615 Sale of shares to redeemable noncontrolling interest — 45,000 — 45,000 Net income attributable to redeemable noncontrolling interest 17,289 17,203 23,816 35,066 Ending balance $ 1,133,443 $ 1,083,681 $ 1,133,443 $ 1,083,681 |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | VARIABLE INTEREST ENTITIES Upsilon RFO RenaissanceRe indirectly owns a portion of the participating non-voting preference shares of Upsilon RFO and all of Upsilon RFO’s voting Class A shares. The shareholders (other than the voting Class A shareholder) participate in all of the profits or losses of Upsilon RFO while their shares remain outstanding. The shareholders (other than the voting 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. 2021 During the six months ended June 30, 2021, $544.6 million of Upsilon RFO non-voting preference shares were issued to existing investors, including $32.3 million to the Company. Also during the six months ended June 30, 2021 and following the release of collateral that was previously held by cedants associated with prior years’ contracts, Upsilon RFO returned $276.0 million of capital to its investors, including $24.9 million to the Company. At June 30, 2021, the Company’s participation in the risks assumed by Upsilon RFO was 12.3%. At June 30, 2021, the Company’s consolidated balance sheet included total assets and total liabilities of Upsilon RFO of $4.1 billion and $4.1 billion, respectively (December 31, 2020 - $3.8 billion and $3.8 billion, respectively). Of the total assets and liabilities, a net amount of $0.3 billion is attributable to the Company, and $2.1 billion is attributable to third-party investors. 2020 During the six months ended June 30, 2020, $802.0 million of Upsilon RFO non-voting preference shares were issued to existing investors, including $95.4 million to the Company. In addition, during the six months ended June 30, 2020 and following the release of collateral that was previously held by cedants associated with prior years’ contracts, Upsilon RFO returned $302.0 million of capital to its investors, including $61.6 million to the Company. At June 30, 2020, the Company’s participation in the risks assumed by Upsilon RFO was 13.9%. Vermeer Vermeer provides capacity focused on risk remote layers in the U.S. property catastrophe market. See “Note 8. Noncontrolling Interests” for additional information regarding Vermeer. At June 30, 2021, the Company’s consolidated balance sheet included total assets and total liabilities of Vermeer of $1.2 billion and $76.1 million, respectively (December 31, 2020 - $1.1 billion and $36.7 million, respectively). In addition, the Company’s consolidated balance sheet included redeemable noncontrolling interests associated with Vermeer of $1.1 billion at June 30, 2021 (December 31, 2020 - $1.1 billion). Mona Lisa Re Ltd. Mona Lisa Re provides reinsurance capacity to subsidiaries of RenaissanceRe through reinsurance agreements which are 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 are 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 is not the primary beneficiary of Mona Lisa Re as it does not have the power over the activities that most significantly impact the economic performance of Mona Lisa Re, in accordance with the accounting guidance. As a result, the financial position and results of operations of Mona Lisa Re are not consolidated by the Company. 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 , and the fair value of the principal-at-risk variable rate notes owned by the Company. Other than its investment in the principal-at-risk variable rate notes of Mona Lisa Re, the Company has not provided financial or other support to Mona Lisa Re that it was not contractually required to provide. Renaissance Reinsurance and DaVinci have together entered into ceded reinsurance contracts with Mona Lisa Re with ceded premiums written of $25.4 million and $6.3 million, respectively, during the six months ended June 30, 2021 (2020 - $24.3 million and $6.7 million, respectively). In addition, Renaissance Reinsurance and DaVinci recognized ceded premiums earned related to the ceded reinsurance contracts with Mona Lisa Re of $12.6 million and $3.1 million, respectively, during the six months ended June 30, 2021 (2020 - $12.1 million and $3.4 million, respectively). Effective January 10, 2020, Mona Lisa Re issued two series of principal-at-risk variable rate notes to investors for a total principal amount of $400.0 million. Effective June 29, 2021, Mona Lisa Re issued a series of principal-at-risk variable rate notes to investors for a total principal amount $250.0 million. At June 30, 2021, the total assets and total liabilities of Mona Lisa Re were $668.9 million and $668.9 million, respectively (December 31, 2020 - $400.3 million and $400.3 million, respectively). The fair value of the Company’s investment in the principal-at-risk variable rate notes of Mona Lisa Re is included in other investments. Net of third-party investors, the fair value of the Company’s investment in Mona Lisa Re was $5.8 million at June 30, 2021 (December 31, 2020 - $3.7 million). Fibonacci Re Fibonacci Re provides collateralized capacity to Renaissance Reinsurance and its affiliates. 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 are recorded in the Company’s consolidated financial statements are 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. Renaissance Reinsurance had no outstanding balances with Fibonacci Re as of June 30, 2021 and December 31, 2020, and there was no material impact on the Company’s consolidated statements of operations for the three and six months ended June 30, 2021 and June 30, 2020. Langhorne The Company and Reinsurance Group of America, Incorporated formed 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, 2021 the Company has invested $2.2 million in Langhorne Holdings (December 31, 2020 - $2.0 million), a company that owns and manages certain reinsurance entities within Langhorne. In addition, as of June 30, 2021 the Company has invested $0.1 million in Langhorne Partners (December 31, 2020 - $0.1 million), 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 absolute investment in Langhorne will increase, perhaps materially, as in-force life and annuity blocks of businesses are written. The Company expects its absolute and relative ownership in Langhorne Partners to remain stable. 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. Shima Re Shima Re was acquired on March 22, 2019 in connection with the acquisition of TMR. Shima Re is a Bermuda domiciled Class 3 insurer. Shima Re is registered as a segregated accounts company and provides third-party investors with access to reinsurance risk. The maximum remaining exposure of each segregated account is fully collateralized and is funded by cash or investments as prescribed by the participant thereto. Shima Re no longer writes new business and the last in-force contract written by Shima Re expired on December 31, 2019. The Company ceased providing management services to Shima Re effective December 1, 2020. Shima Re is considered a VIE as it has voting rights that are not proportional to its participating rights. The Company evaluated its relationship with Shima Re and concluded it is not the primary beneficiary of any segregated account, as it does not have power over the activities that most significantly impact the economic performance of any segregated account. As a result, the Company does not consolidate the financial position or results of operations of Shima Re or its segregated accounts. The Company has not provided any financial or other support to any segregated account of Shima Re that it was not contractually required to provide. Norwood Re Until December 1, 2020, Norwood Re was managed by a subsidiary of RREAG that the Company acquired in the acquisition of TMR. Norwood Re is a Bermuda domiciled SPI registered as a segregated accounts company formed to provide solutions for reinsurance-linked asset investors. Norwood Re is wholly owned by the Norwood Re Purpose Trust. Risks assumed by the segregated accounts of Norwood Re are fronted by or ceded from only one cedant - RREAG and/or its insurance affiliates. The obligations of each segregated account are funded through the issuance of non-voting preference shares to third-party investors. The maximum exposure of each segregated account is fully collateralized and is funded by cash and term deposits or investments as prescribed by the participant thereto. Norwood Re no longer writes new business, and the last in-force contract written by Norwood Re expired on June 30, 2020. The Company ceased providing management services to Norwood Re effective December 1, 2020. Norwood Re is considered a VIE as it has voting rights that are not proportional to its participating rights. The Company evaluated its relationship with Norwood Re and concluded it is not the primary beneficiary of Norwood Re and its segregated accounts, as it does not have power over the activities that most significantly impact the economic performance of Norwood Re and its segregated accounts. As a result, the Company does not consolidate the financial position or results of operations of Norwood Re and its segregated accounts. The Company has not provided any financial or other support to Norwood Re that it was not contractually required to provide. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY Common Shares On June 5, 2020, the Company issued 6,325,000 of its common shares in an underwritten public offering at a public offering price of $166.00 per share. Concurrently with the public offering, the Company raised $75.0 million through the issuance of 451,807 of its common shares at a price of $166.00 per share to State Farm Mutual Automobile Insurance Company, one of the Company’s existing stockholders, in a private placement. The total net proceeds from the offerings were $1.1 billion. Series C 6.08% Preference Shares Redemption The Series C 6.08% Preference Shares were redeemed on March 26, 2020 for $125.0 million plus accrued and unpaid dividends thereon. Following the redemption, no Series C 6.08% Preference Shares remain outstanding. Dividends The Board of Directors of RenaissanceRe declared dividends of $0.36 per common share, payable to common shareholders of record on March 15, 2021 and June 15, 2021, and the Company paid the dividends on March 31, 2021 and June 30, 2021, respectively. The Board of Directors approved the payment of quarterly dividends on the Series C 6.08% Preference Shares, Series E 5.375% Preference Shares and 5.750% Series F 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 was 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), and was paid prior to the redemption in full of the Series C 6.08% shares on March 26, 2020. 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). The amount of the dividend on the 5.750% Series F Preference Shares is an amount per share equal to 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). During the six months ended June 30, 2021, the Company paid $14.6 million in preference share dividends (2020 - $16.3 million) and $35.0 million in common share dividends (2020 - $33.1 million). 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 May 7, 2021, 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, 2021, the Company repurchased 3,019,603 common shares in open market transactions at an aggregate cost of $480.7 million and an average price of $159.18 per common share. At June 30, 2021, $300.5 million remained available for repurchase under the share repurchase program. Refer to Note 15. “Subsequent Events” for additional information related to common share repurchases, and our recent preference share offering and related redemption, subsequent to June 30, 2021. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
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 $ 456,818 $ 575,845 $ 165,884 $ 493,871 Amount allocated to participating common shareholders (1) (5,809) (7,593) (1,864) (6,153) Net income available to RenaissanceRe common shareholders $ 451,009 $ 568,252 $ 164,020 $ 487,718 Denominator: Denominator for basic loss per RenaissanceRe common share - weighted average common shares 48,163 44,939 48,871 44,190 Per common share equivalents of employee stock options and non-vested shares 63 64 69 63 Denominator for diluted loss per RenaissanceRe common share - adjusted weighted average common shares and assumed conversions 48,226 45,003 48,940 44,253 Net income available to RenaissanceRe common shareholders per common share – basic $ 9.36 $ 12.64 $ 3.36 $ 11.04 Net income available to RenaissanceRe common shareholders per common share – diluted $ 9.35 $ 12.63 $ 3.35 $ 11.02 (1) Represents earnings and dividends attributable to holders of unvested shares issued pursuant to the Company's stock compensation plans. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2021 | |
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 and managed funds, 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 and managed funds. 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 certain expenses related to acquisitions and disposals. 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, 2021 Property Casualty and Specialty Other Total Gross premiums written $ 1,183,556 $ 910,602 $ — $ 2,094,158 Net premiums written $ 803,335 $ 708,957 $ — $ 1,512,292 Net premiums earned $ 560,397 $ 632,393 $ — $ 1,192,790 Net claims and claim expenses incurred 97,150 422,871 — 520,021 Acquisition expenses 109,238 176,352 — 285,590 Operational expenses 38,887 19,316 — 58,203 Underwriting income $ 315,122 $ 13,854 $ — 328,976 Net investment income 80,925 80,925 Net foreign exchange gains 3,234 3,234 Equity in earnings of other ventures 8,732 8,732 Other income 586 586 Net realized and unrealized gains on investments 191,018 191,018 Corporate expenses (10,125) (10,125) Interest expense (11,833) (11,833) Income before taxes and redeemable noncontrolling interests 591,513 Income tax expense (13,862) (13,862) Net income attributable to redeemable noncontrolling interests (113,544) (113,544) Dividends on preference shares (7,289) (7,289) Net income available to RenaissanceRe common shareholders $ 456,818 Net claims and claim expenses incurred – current accident year $ 148,133 $ 423,917 $ — $ 572,050 Net claims and claim expenses incurred – prior accident years (50,983) (1,046) — (52,029) Net claims and claim expenses incurred – total $ 97,150 $ 422,871 $ — $ 520,021 Net claims and claim expense ratio – current accident year 26.4 % 67.0 % 48.0 % Net claims and claim expense ratio – prior accident years (9.1) % (0.1) % (4.4) % Net claims and claim expense ratio – calendar year 17.3 % 66.9 % 43.6 % Underwriting expense ratio 26.5 % 30.9 % 28.8 % Combined ratio 43.8 % 97.8 % 72.4 % Six months ended June 30, 2021 Property Casualty and Specialty Other Total Gross premiums written $ 2,800,375 $ 1,946,225 $ — $ 4,746,600 Net premiums written $ 1,811,795 $ 1,524,580 $ — $ 3,336,375 Net premiums earned $ 1,165,563 $ 1,181,063 $ — $ 2,346,626 Net claims and claim expenses incurred 595,982 791,090 — 1,387,072 Acquisition expenses 221,992 330,832 — 552,824 Operational expenses 74,262 39,252 — 113,514 Underwriting income $ 273,327 $ 19,889 $ — 293,216 Net investment income 160,729 160,729 Net foreign exchange losses (19,554) (19,554) Equity in earnings of other ventures 3,174 3,174 Other income 2,757 2,757 Net realized and unrealized losses on investments (154,545) (154,545) Corporate expenses (20,530) (20,530) Interest expense (23,745) (23,745) Income before taxes and redeemable noncontrolling interests 241,502 Income tax benefit 5,654 5,654 Net income attributable to redeemable noncontrolling interests (66,694) (66,694) Dividends on preference shares (14,578) (14,578) Net income available to RenaissanceRe common shareholders $ 165,884 Net claims and claim expenses incurred – current accident year $ 652,127 $ 796,006 $ — $ 1,448,133 Net claims and claim expenses incurred – prior accident years (56,145) (4,916) — (61,061) Net claims and claim expenses incurred – total $ 595,982 $ 791,090 $ — $ 1,387,072 Net claims and claim expense ratio – current accident year 55.9 % 67.4 % 61.7 % Net claims and claim expense ratio – prior accident years (4.8) % (0.4) % (2.6) % Net claims and claim expense ratio – calendar year 51.1 % 67.0 % 59.1 % Underwriting expense ratio 25.4 % 31.3 % 28.4 % Combined ratio 76.5 % 98.3 % 87.5 % Three months ended June 30, 2020 Property Casualty and Specialty Other Total Gross premiums written $ 1,042,536 $ 659,336 $ — $ 1,701,872 Net premiums written $ 704,138 $ 476,665 $ — $ 1,180,803 Net premiums earned $ 491,116 $ 518,980 $ — $ 1,010,096 Net claims and claim expenses incurred 164,006 346,266 — 510,272 Acquisition expenses 94,773 138,837 — 233,610 Operational expenses 31,655 17,422 — 49,077 Underwriting income $ 200,682 $ 16,455 $ — 217,137 Net investment income 89,305 89,305 Net foreign exchange losses (7,195) (7,195) Equity in earnings of other ventures 9,041 9,041 Other loss (1,201) (1,201) Net realized and unrealized gains on investments 448,390 448,390 Corporate expenses (11,898) (11,898) Interest expense (11,842) (11,842) Income before taxes and redeemable noncontrolling interests 731,737 Income tax expense (29,875) (29,875) Net income attributable to redeemable noncontrolling interests (118,728) (118,728) Dividends on preference shares (7,289) (7,289) Net income available to RenaissanceRe common shareholders $ 575,845 Net claims and claim expenses incurred – current accident year $ 170,614 $ 355,064 $ — $ 525,678 Net claims and claim expenses incurred – prior accident years (6,608) (8,798) — (15,406) Net claims and claim expenses incurred – total $ 164,006 $ 346,266 $ — $ 510,272 Net claims and claim expense ratio – current accident year 34.7 % 68.4 % 52.0 % Net claims and claim expense ratio – prior accident years (1.3) % (1.7) % (1.5) % Net claims and claim expense ratio – calendar year 33.4 % 66.7 % 50.5 % Underwriting expense ratio 25.7 % 30.1 % 28.0 % Combined ratio 59.1 % 96.8 % 78.5 % Six months ended June 30, 2020 Property Casualty and Specialty Other Total Gross premiums written $ 2,263,062 $ 1,464,531 $ — $ 3,727,593 Net premiums written $ 1,378,719 $ 1,071,892 $ — $ 2,450,611 Net premiums earned $ 912,451 $ 1,010,743 $ — $ 1,923,194 Net claims and claim expenses incurred 308,751 772,475 — 1,081,226 Acquisition expenses 180,124 264,090 — 444,214 Operational expenses 75,662 40,876 — 116,538 Underwriting income (loss) $ 347,914 $ (66,698) $ — 281,216 Net investment income 188,778 188,778 Net foreign exchange losses (12,923) (12,923) Equity in earnings of other ventures 13,605 13,605 Other loss (5,637) (5,637) Net realized and unrealized gains on investments 337,683 337,683 Corporate expenses (27,889) (27,889) Interest expense (26,769) (26,769) Income before taxes and redeemable noncontrolling interests 748,064 Income tax expense (21,029) (21,029) Net income attributable to redeemable noncontrolling interests (216,819) (216,819) Dividends on preference shares (16,345) (16,345) Net income available to RenaissanceRe common shareholders $ 493,871 Net claims and claim expenses incurred – current accident year $ 301,458 $ 781,274 $ — $ 1,082,732 Net claims and claim expenses incurred – prior accident years 7,293 (8,799) — (1,506) Net claims and claim expenses incurred – total $ 308,751 $ 772,475 $ — $ 1,081,226 Net claims and claim expense ratio – current accident year 33.0 % 77.3 % 56.3 % Net claims and claim expense ratio – prior accident years 0.8 % (0.9) % (0.1) % Net claims and claim expense ratio – calendar year 33.8 % 76.4 % 56.2 % Underwriting expense ratio 28.1 % 30.2 % 29.2 % Combined ratio 61.9 % 106.6 % 85.4 % |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2021 | |
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 to assume risk. 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, 2021 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 Derivative instruments not designated as hedges Interest rate futures $ 837 $ — $ 837 Other assets $ — $ 837 Interest rate swaps 21 — 21 Other assets — 21 Foreign currency forward contracts (1) 4,089 — 4,089 Other assets — 4,089 Foreign currency forward contracts (2) 1,355 — 1,355 Other assets — 1,355 Credit default swaps 95 — 95 Other assets — 95 Total return swaps 327 — 327 Other assets — 327 Total derivative instruments not designated as hedges 6,724 — 6,724 — 6,724 Derivative instruments designated as hedges Foreign currency forward contracts (3) 3,312 571 2,741 Other assets — 2,741 Total $ 10,036 $ 571 $ 9,465 $ — $ 9,465 Derivative Liabilities At June 30, 2021 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 Derivative instruments not designated as hedges Interest rate futures $ 1,281 $ — $ 1,281 Other liabilities $ 1,281 $ — Foreign currency forward contracts (1) 10,185 1,497 8,688 Other liabilities — 8,688 Foreign currency forward contracts (2) 5,296 — 5,296 Other liabilities — 5,296 Total derivative instruments not designated as hedges 16,762 1,497 15,265 1,281 13,984 Derivative instruments designated as hedges Foreign currency forward contracts (3) 365 — 365 Other liabilities — 365 Total $ 17,127 $ 1,497 $ 15,630 $ 1,281 $ 14,349 (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. (3) Contracts designated as hedges of net investments in foreign operations. Derivative Assets At December 31, 2020 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 Derivative instruments not designated as hedges Interest rate futures $ 1,019 $ 863 $ 156 Other assets $ — $ 156 Interest rate swaps 22 — 22 Other assets — 22 Foreign currency forward contracts (1) 23,055 184 22,871 Other assets — 22,871 Foreign currency forward contracts (2) 2,232 69 2,163 Other assets — 2,163 Credit default swaps 68 — 68 Other assets — 68 Total derivative instruments not designated as hedges 26,396 1,116 25,280 — 25,280 Derivative instruments designated as hedges Foreign currency forward contracts (3) 19,953 — 19,953 Other assets — 19,953 Total $ 46,349 $ 1,116 $ 45,233 $ — $ 45,233 Derivative Liabilities At December 31, 2020 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 Derivative instruments not designated as hedges Interest rate futures $ 1,430 $ 863 $ 567 Other liabilities $ 567 $ — Foreign currency forward contracts (1) 12,791 — 12,791 Other liabilities — 12,791 Foreign currency forward contracts (2) 3,919 69 3,850 Other liabilities 1,053 2,797 Total derivative instruments not designated as hedges 18,140 932 17,208 1,620 15,588 Derivative instruments designated as hedges Foreign currency forward contracts (3) 5,152 — 5,152 Other liabilities — 5,152 Total $ 23,292 $ 932 $ 22,360 $ 1,620 $ 20,740 (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. (3) Contracts designated as hedges of net investments in foreign operations. 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) Amount of gain (loss) recognized on Three months ended June 30 2021 2020 Derivative instruments not designated as hedges Interest rate futures Net realized and unrealized gains (losses) on investments $ (11,295) $ 2,557 Interest rate swaps Net realized and unrealized gains (losses) on investments (78) 502 Foreign currency forward contracts (1) Net foreign exchange gains (losses) 240 6,908 Foreign currency forward contracts (2) Net foreign exchange gains (losses) (1,840) (7,613) Credit default swaps Net realized and unrealized gains (losses) on investments 1,169 1,974 Total return swaps Net realized and unrealized gains (losses) on investments 875 14,151 Equity futures Net realized and unrealized gains (losses) on investments — 5,188 Total derivative instruments not designated as hedges (10,929) 23,667 Derivative instruments designated as hedges Foreign currency forward contracts (3) Accumulated other comprehensive loss 2,437 (8,694) Total derivative instruments designated as hedges 2,437 (8,694) Total $ (8,492) $ 14,973 Location of gain (loss) Amount of gain (loss) recognized on Six months ended June 30 2021 2020 Derivative instruments not designated as hedges Interest rate futures Net realized and unrealized gains (losses) on investments $ 4,212 $ 90,563 Interest rate swaps Net realized and unrealized gains (losses) on investments (979) 2,609 Foreign currency forward contracts (1) Net foreign exchange gains (losses) (3,401) 6,578 Foreign currency forward contracts (2) Net foreign exchange gains (losses) (6,901) (1,213) Credit default swaps Net realized and unrealized gains (losses) on investments 1,424 (2,923) Total return swaps Net realized and unrealized gains (losses) on investments 875 (6,986) Equity futures Net realized and unrealized gains (losses) on investments — (25,710) Total derivative instruments not designated as hedges (4,770) 62,918 Derivative instruments designated as hedges Foreign currency forward contracts (3) Accumulated other comprehensive loss 348 2,150 Total derivative instruments designated as hedges 348 2,150 Total $ (4,422) $ 65,068 (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. (3) Contracts designated as hedges of net investments in foreign 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, 2021. Derivative Instruments Not Designated as Hedges 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, 2021, the Company had $1.5 billion of notional long positions and $0.7 billion of notional short positions of primarily Eurodollar and U.S. treasury futures contracts (December 31, 2020 - $2.0 billion and $1.0 billion, 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, 2021, the Company had $39.0 million (December 31, 2020 - $23.5 million) of notional positions receiving a fixed rate denominated in U.S. dollar swap contracts. 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 and Non-investments Operations Related Foreign Currency Contracts The Company's foreign currency policy with regard to its underwriting operations is generally to enter into foreign currency forward and option contracts for notional values that approximate the foreign currency liabilities, including claims and claim expense reserves and reinsurance balances payable, net of any cash, investments and receivables held in the respective foreign currency. The Company's use of foreign currency forward and option contracts is intended 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 Company may determine not to match a portion of its projected underwriting related assets or liabilities with underlying foreign currency exposure with investments in the same currencies, which would increase its exposure to foreign currency fluctuations and potentially increase the impact and volatility of foreign exchange gains and losses on its results of 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, 2021, the Company had outstanding underwriting related foreign currency contracts of $707.6 million in notional long positions and $309.8 million in notional short positions, denominated in U.S. dollars (December 31, 2020 - $661.4 million and $504.2 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, 2021, the Company had outstanding investment portfolio related foreign currency contracts of $273.0 million in notional long positions and $108.6 million in notional short positions, denominated in U.S. dollars (December 31, 2020 - $269.5 million and $117.5 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. Credit Default Swaps The fair value of the Company’s credit default swaps is determined using industry valuation models, broker bid indications or internal pricing valuation techniques. The fair value of these credit default swaps 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, 2021, the Company had outstanding credit default swaps of $50.5 million in notional positions to hedge credit risk and $59.1 million in notional positions to assume credit risk, denominated in U.S. dollars (December 31, 2020 - $Nil and $96.8 million, respectively). Total Return Swaps From time to time, the Company uses total return swaps as a means to manage spread duration and credit exposure in its investment portfolio. The fair value of the Company’s total return swaps is determined using broker-dealer bid quotations, market-based prices from pricing vendors or valuation models. At June 30, 2021, the Company had $50.0 million of notional long positions denominated in U.S. dollars (December 31, 2020 - $Nil). Equity Derivatives Equity Futures From time to time, the Company uses equity derivatives in its investment portfolio to either assume equity risk or hedge its equity exposure. The fair value of the Company’s equity futures is determined using market-based prices from pricing vendors. At June 30, 2021 and December 31, 2020, the Company had no outstanding equity futures, respectively. Derivative Instruments Designated as Hedges of Net Investments in Foreign Operations Foreign Currency Derivatives Hedges of Net Investments in Foreign Operations Certain of the Company’s subsidiaries use non-U.S. dollar functional currencies. The Company, from time to time, enters into foreign exchange forwards to hedge currencies, which currently includes the Australian dollar and Euro net investment in foreign operations, on an after-tax basis, from changes in the exchange rate between the U.S. dollar and these currencies. The Company utilizes foreign exchange forward contracts to hedge the fair value of its net investment in a foreign operation. The Company has entered into foreign exchange forward contracts that were formally designated as hedges of its investment in subsidiaries with non-U.S. dollar functional currencies. There was no ineffectiveness in these transactions. The table below provides a summary of derivative instruments designated as hedges of net investments in foreign operations, including the weighted average U.S. dollar equivalent of foreign denominated net (liabilities) assets that were hedged and the resulting derivative (losses) gains that are recorded in foreign currency translation adjustments, net of tax, within accumulated other comprehensive loss on the Company’s consolidated statements of changes in shareholders’ equity: Three months ended Six months ended June 30, June 30, June 30, June 30, Weighted average of U.S. dollar equivalent of foreign denominated net (liabilities) assets $ 58,876 $ 74,451 $ (48,790) $ 77,683 Derivative gains (losses) (1) $ 2,437 $ (8,694) $ 348 $ 2,150 (1) Derivative gains (losses) from derivative instruments designated as hedges of the net investment in a foreign operation are recorded in foreign currency translation adjustments, net of tax, within accumulated other comprehensive loss on the Company’s consolidated statements of changes in shareholders’ equity. |
Commitments, Contingencies and
Commitments, Contingencies and Other Items | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Other Items | COMMITMENTS, CONTINGENCIES AND OTHER ITEMS There are no material changes from the commitments, contingencies and other items previously disclosed in the Company’s Form 10-K for the year ended December 31, 2020. 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. 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. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Subsequent to June 30, 2021 and through the period ended July 19, 2021, we repurchased 920 thousand common shares at an aggregate cost of $137.5 million and an average price of $149.57 per common share. On July 12, 2021, the Company issued 20,000,000 Depositary Shares, each of which represents a 1/1,000th interest in a share of the Company’s 4.20% Series G Preference Shares, $1.00 par value and $25,000 liquidation preference per share (equivalent to $25.00 per Depositary Share), for gross aggregate proceeds of $500.0 million. The net proceeds from this offering will be used to redeem all of the outstanding 5.375% Series E Preference Shares, and the remainder will be used for general corporate purposes. On July 12, 2021, the Company announced the redemption of all 11,000,000 of its outstanding 5.375% Series E Preference Shares. The 5.375% Series E Preference Shares are anticipated to be redeemed on August 11, 2021 for $275.0 million plus accrued and unpaid dividends thereon. Following the redemption, no 5.375% Series E Preference Shares will remain outstanding. In July 2021, Northwestern Europe experienced severe flooding which has caused widespread damage. The Company is in the preliminary stage of assessing the impact of this event on the Company’s financial results for the third quarter of 2021. It is difficult at this time to provide an accurate estimate of the financial impact of this event, including as a result of the preliminary nature of the information available and provided thus far by industry participants, the magnitude and recent occurrence of the event, and other factors. The estimated losses for this event will be reported in the Company's third quarter of 2021 financial results. |
Significant Accounting Polici_2
Significant Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2021 | |
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 U.S. (“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 recoverable and premiums receivable, including provisions for reinsurance recoverable and premiums receivable to reflect expected credit losses; estimates of written and earned premiums; fair value, including the fair value of investments, financial instruments and derivatives; impairment charges; deferred acquisition costs and the value of business acquired and the Company’s deferred tax valuation allowance. |
Recently Adopted Accounting Pronouncements | RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments [Abstract] | |
Schedule of Fair Value of Fixed Maturity and Equity Investments Trading | The following table summarizes the fair value of fixed maturity investments trading: June 30, December 31, U.S. treasuries $ 6,327,895 $ 4,960,409 Agencies 325,051 368,032 Non-U.S. government 508,320 491,531 Non-U.S. government-backed corporate 396,966 338,014 Corporate 3,387,433 4,261,025 Agency mortgage-backed 703,757 1,113,792 Non-agency mortgage-backed 260,432 291,444 Commercial mortgage-backed 588,262 791,272 Asset-backed 920,273 890,984 Total fixed maturity investments trading $ 13,418,389 $ 13,506,503 The following table summarizes the fair value of equity investments trading: June 30, December 31, Financials $ 227,257 $ 452,765 Communications and technology 93,458 119,592 Consumer 58,699 44,477 Industrial, utilities and energy 32,891 43,380 Healthcare 32,041 35,140 Basic materials 6,051 7,263 Exchange traded funds 126,693 — Total $ 577,090 $ 702,617 |
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, 2021 Amortized Fair Value Due in less than one year $ 361,912 $ 365,154 Due after one through five years 6,135,329 6,191,724 Due after five through ten years 4,041,811 4,060,205 Due after ten years 318,245 328,582 Mortgage-backed 1,528,338 1,552,451 Asset-backed 918,220 920,273 Total $ 13,303,855 $ 13,418,389 |
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 $ 59,510 $ 69,943 $ 122,443 $ 143,281 Short term investments 782 6,049 1,355 18,141 Equity investments 1,626 1,666 3,117 3,217 Other investments Catastrophe bonds 16,681 13,519 31,149 27,658 Other 9,339 1,107 13,140 2,736 Cash and cash equivalents 159 837 261 2,341 88,097 93,121 171,465 197,374 Investment expenses (7,172) (3,816) (10,736) (8,596) Net investment income $ 80,925 $ 89,305 $ 160,729 $ 188,778 |
Schedule of Net Realized and Unrealized Gains (Losses) | Net realized and unrealized gains (losses) on investments are as follows: Three months ended Six months ended June 30, June 30, June 30, June 30, Net realized gains on fixed maturity investments trading $ 33,161 $ 105,849 $ 53,559 $ 163,336 Net unrealized gains (losses) on fixed maturity investments trading 64,015 197,678 (233,003) 177,333 Net realized and unrealized gains (losses) on fixed maturity investments trading 97,176 303,527 (179,444) 340,669 Net realized and unrealized (losses) gains on investments-related derivatives (9,329) 24,372 5,532 57,553 Net realized gains (losses) on equity investments trading 93,411 422 203,298 (14,625) Net unrealized (losses) gains on equity investments trading (27,845) 107,896 (205,654) 1,959 Net realized and unrealized gains (losses) on equity investments trading 65,566 108,318 (2,356) (12,666) Net realized and unrealized gains (losses) on other investments - catastrophe bonds 2 4,452 (19,081) (9,900) Net realized and unrealized gains (losses) on other investments - other 37,603 7,721 40,804 (37,973) Net realized and unrealized gains (losses) on investments $ 191,018 $ 448,390 $ (154,545) $ 337,683 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 Total Quoted Significant Significant Fixed maturity investments U.S. treasuries $ 6,327,895 $ 6,327,895 $ — $ — Agencies 325,051 — 325,051 — Non-U.S. government 508,320 — 508,320 — Non-U.S. government-backed corporate 396,966 — 396,966 — Corporate 3,387,433 — 3,387,433 — Agency mortgage-backed 703,757 — 703,757 — Non-agency mortgage-backed 260,432 — 260,432 — Commercial mortgage-backed 588,262 — 588,262 — Asset-backed 920,273 — 920,273 — Total fixed maturity investments 13,418,389 6,327,895 7,090,494 — Short term investments 4,392,652 — 4,392,652 — Equity investments trading 577,090 577,090 — — Other investments Catastrophe bonds 1,026,397 — 1,026,397 — Private equity investments 81,344 — — 81,344 1,107,741 — 1,026,397 81,344 Fund investments (1) 477,295 Total other investments 1,585,036 — 1,026,397 81,344 Other assets and (liabilities) Assumed and ceded (re)insurance contracts (2) (6,193) — — (6,193) Derivative assets (3) 9,465 837 8,628 — Derivative liabilities (3) (15,630) (1,281) (14,349) — Total other assets and (liabilities) (12,358) (444) (5,721) (6,193) $ 19,960,809 $ 6,904,541 $ 12,503,822 $ 75,151 (1) Fund investments, which are comprised of private equity and private credit funds, senior secured bank loan funds and hedge funds, are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient and 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, 2021 was $Nil of other assets and $6.2 million of other liabilities. (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, 2020 Total Quoted Significant Significant Fixed maturity investments U.S. treasuries $ 4,960,409 $ 4,960,409 $ — $ — Agencies 368,032 — 368,032 — Non-U.S. government 491,531 — 491,531 — Non-U.S. government-backed corporate 338,014 — 338,014 — Corporate 4,261,025 — 4,261,025 — Agency mortgage-backed 1,113,792 — 1,113,792 — Non-agency mortgage-backed 291,444 — 291,444 — Commercial mortgage-backed 791,272 — 791,272 — Asset-backed 890,984 — 890,984 — Total fixed maturity investments 13,506,503 4,960,409 8,546,094 — Short term investments 4,993,735 — 4,993,735 — Equity investments trading 702,617 702,617 — — Other investments Catastrophe bonds 881,290 — 881,290 — Private equity investments 79,807 — — 79,807 961,097 — 881,290 79,807 Fund investments (1) 295,851 Total other investments 1,256,948 — 881,290 79,807 Other assets and (liabilities) Assumed and ceded (re)insurance contracts (2) (6,211) — — (6,211) Derivative assets (3) 45,233 156 45,077 — Derivative liabilities (3) (22,360) (567) (21,793) — Total other assets and (liabilities) 16,662 (411) 23,284 (6,211) $ 20,476,465 $ 5,662,615 $ 14,444,403 $ 73,596 (1) Fund investments, which are comprised of private equity and private credit funds, senior secured bank loan funds and hedge funds, are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient and 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, 2020 was $1.4 million of other assets and $7.6 million of other liabilities. (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 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, 2021 Fair Value Valuation Technique Unobservable Low High Weighted Average or Actual Other investments Private equity investment $ 81,344 Internal valuation model Discount rate n/a n/a 9.0% Liquidity discount n/a n/a 15.0 % Total other investments 81,344 Other assets and (liabilities) Assumed and ceded (re)insurance contracts (6,193) Internal valuation model Net undiscounted cash flows n/a n/a $ 13,233 Expected loss ratio n/a n/a 20.0 % Discount rate n/a n/a 0.9 % Total other assets and (liabilities) (6,193) Total assets and (liabilities) measured at fair value on a recurring basis using Level 3 inputs $ 75,151 At December 31, 2020 Fair Value Valuation Technique Unobservable Inputs Low High Weighted Average or Actual Private equity investment $ 79,807 Internal valuation model Discount rate n/a n/a 9.0 % Liquidity discount n/a n/a 15.0 % Total other investments 79,807 Other assets and (liabilities) Assumed and ceded (re)insurance contracts (6,211) Internal valuation model Net undiscounted cash flows n/a n/a $ 12,514 Expected loss ratio n/a n/a 24.0 % Discount rate n/a n/a 0.4 % Total other assets and (liabilities) (6,211) Total other assets and (liabilities) measured at fair value on a recurring basis using Level 3 inputs $ 73,596 |
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 Other assets Total Balance - April 1, 2021 $ 75,874 $ (6,421) $ 69,453 Total realized and unrealized gains (losses) Included in net realized and unrealized gains (losses) on investments 1,415 — 1,415 Included in other income (loss) — 440 440 Total foreign exchange gains 1 — 1 Purchases 5,000 (212) 4,788 Sales (946) — (946) Settlements — — — Balance - June 30, 2021 $ 81,344 $ (6,193) $ 75,151 Other Other assets Total Balance - January 1, 2021 $ 79,807 $ (6,211) $ 73,596 Total realized and unrealized gains (losses) Included in net realized and unrealized gains (losses) on investments (2,521) — (2,521) Included in other income (loss) — 536 536 Total foreign exchange gains 4 — 4 Purchases 5,000 (518) 4,482 Sales (946) — (946) Settlements — — — Balance - June 30, 2021 $ 81,344 $ (6,193) $ 75,151 Other Other assets and (liabilities) Total Balance - April 1, 2020 $ 72,620 $ 1,223 $ 73,843 Total realized and unrealized losses Included in net realized and unrealized gains on investments (380) — (380) Included in other income (loss) — (1,713) (1,713) Purchases — (482) (482) Sales (790) — (790) Settlements — (5,739) (5,739) Balance - June 30, 2020 $ 71,450 $ (6,711) $ 64,739 Other Other assets and (liabilities) Total Balance - January 1, 2020 $ 74,634 $ 4,731 $ 79,365 Total realized and unrealized losses Included in net realized and unrealized gains on investments (14,536) — (14,536) Included in other income (loss) — (4,610) (4,610) Total foreign exchange losses (21) — (21) Purchases 20,962 (1,093) 19,869 Sales (9,589) — (9,589) Settlements — (5,739) (5,739) Balance - June 30, 2020 $ 71,450 $ (6,711) $ 64,739 |
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 Other assets Total Balance - April 1, 2021 $ 75,874 $ (6,421) $ 69,453 Total realized and unrealized gains (losses) Included in net realized and unrealized gains (losses) on investments 1,415 — 1,415 Included in other income (loss) — 440 440 Total foreign exchange gains 1 — 1 Purchases 5,000 (212) 4,788 Sales (946) — (946) Settlements — — — Balance - June 30, 2021 $ 81,344 $ (6,193) $ 75,151 Other Other assets Total Balance - January 1, 2021 $ 79,807 $ (6,211) $ 73,596 Total realized and unrealized gains (losses) Included in net realized and unrealized gains (losses) on investments (2,521) — (2,521) Included in other income (loss) — 536 536 Total foreign exchange gains 4 — 4 Purchases 5,000 (518) 4,482 Sales (946) — (946) Settlements — — — Balance - June 30, 2021 $ 81,344 $ (6,193) $ 75,151 Other Other assets and (liabilities) Total Balance - April 1, 2020 $ 72,620 $ 1,223 $ 73,843 Total realized and unrealized losses Included in net realized and unrealized gains on investments (380) — (380) Included in other income (loss) — (1,713) (1,713) Purchases — (482) (482) Sales (790) — (790) Settlements — (5,739) (5,739) Balance - June 30, 2020 $ 71,450 $ (6,711) $ 64,739 Other Other assets and (liabilities) Total Balance - January 1, 2020 $ 74,634 $ 4,731 $ 79,365 Total realized and unrealized losses Included in net realized and unrealized gains on investments (14,536) — (14,536) Included in other income (loss) — (4,610) (4,610) Total foreign exchange losses (21) — (21) Purchases 20,962 (1,093) 19,869 Sales (9,589) — (9,589) Settlements — (5,739) (5,739) Balance - June 30, 2020 $ 71,450 $ (6,711) $ 64,739 |
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 $ 1,585,036 $ 1,256,948 Other assets $ 4,418 $ 8,982 Other liabilities $ 10,611 $ 15,193 |
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, 2021 Fair Value Unfunded Redemption Frequency Redemption Redemption Private equity and private credit funds $ 453,675 $ 1,186,194 See below See below See below Senior secured bank loan funds 12,251 7,818 See below See below See below Hedge funds 11,369 — See below See below See below Total other investments measured using net asset valuations $ 477,295 $ 1,194,012 |
Reinsurance (Tables)
Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Schedule of 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 $ 259,712 $ 177,562 $ 484,851 $ 325,254 Assumed 1,834,446 1,524,310 4,261,749 3,402,339 Ceded (581,866) (521,069) (1,410,225) (1,276,982) Net premiums written $ 1,512,292 $ 1,180,803 $ 3,336,375 $ 2,450,611 Premiums earned Direct $ 188,414 $ 138,327 $ 350,503 $ 272,556 Assumed 1,455,002 1,281,357 2,871,648 2,431,090 Ceded (450,626) (409,588) (875,525) (780,452) Net premiums earned $ 1,192,790 $ 1,010,096 $ 2,346,626 $ 1,923,194 Claims and claim expenses Gross claims and claim expenses incurred $ 666,106 $ 647,226 $ 1,916,352 $ 1,394,941 Claims and claim expenses recovered (146,085) (136,954) (529,280) (313,715) Net claims and claim expenses incurred $ 520,021 $ 510,272 $ 1,387,072 $ 1,081,226 |
Schedule of Activity in the Allowance Recorded Against Premium Receivables | The following table provides a roll forward of the provision for current expected credit losses of the Company’s premiums receivable: Three months ended June 30, 2021 Six months ended June 30, 2021 Beginning balance $ 3,782 $ 5,961 Provision for allowance (57) (2,236) Ending balance $ 3,725 $ 3,725 |
Schedule of Activity in the Allowance Recorded Against Reinsurance Recoverable | The following table provides a roll forward of the provision for current expected credit losses of the Company’s reinsurance recoverable: Three months ended June 30, 2021 Six months ended June 30, 2021 Beginning balance $ 6,605 $ 6,334 Provision for allowance 419 690 Ending balance $ 7,024 $ 7,024 |
Reserve for Claims and Claim _2
Reserve for Claims and Claim Expenses (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Insurance Loss Reserves [Abstract] | |
Schedule of Liability for Unpaid Claims and Claim Expenses | 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, 2021 Case Additional IBNR Total Property $ 1,383,754 $ 1,513,549 $ 1,773,492 $ 4,670,795 Casualty and Specialty 1,727,051 133,041 4,413,855 6,273,947 Total $ 3,110,805 $ 1,646,590 $ 6,187,347 $ 10,944,742 At December 31, 2020 Property $ 1,127,909 $ 1,617,003 $ 1,627,541 $ 4,372,453 Casualty and Specialty 1,651,150 133,843 4,223,692 6,008,685 Total $ 2,779,059 $ 1,750,846 $ 5,851,233 $ 10,381,138 Activity in the liability for unpaid claims and claim expenses is summarized as follows: Six months ended June 30 2021 2020 Reserve for claims and claim expenses, net of reinsurance recoverable, as of beginning of period $ 7,455,128 $ 6,593,052 Net incurred related to: Current year 1,448,133 1,082,732 Prior years (61,061) (1,506) Total net incurred 1,387,072 1,081,226 Net paid related to: Current year 65,278 61,625 Prior years 995,826 1,007,916 Total net paid 1,061,104 1,069,541 Foreign exchange (1) (23,992) (13,626) Reserve for claims and claim expenses, net of reinsurance recoverable, as of end of period 7,757,104 6,591,111 Reinsurance recoverable as of end of period 3,187,638 2,774,358 Reserve for claims and claim expenses as of end of period $ 10,944,742 $ 9,365,469 (1) Reflects the impact of the foreign exchange revaluation of the net reserve for claims and claim expenses denominated in non-U.S. dollars as at the balance sheet date. The following table details the Company’s prior year net development by segment of its liability for unpaid claims and claim expenses: Six months ended June 30 2021 2020 (Favorable) adverse development (Favorable) adverse development Property $ (56,145) $ 7,293 Casualty and Specialty (4,916) (8,799) Total net (favorable) adverse development of prior accident years net claims and claim expenses $ (61,061) $ (1,506) The following tables detail the development of the Company’s liability for net 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 2021 (Favorable) adverse development Catastrophe net claims and claim expenses Large catastrophe events 2020 Large Loss Events $ 16,932 2019 Large Loss Events (1,424) 2018 Large Loss Events (37,910) 2017 Large Loss Events (5,708) Other (2,993) Total large catastrophe events (31,103) Small catastrophe events and attritional loss movements Other small catastrophe events and attritional loss movements (25,042) Total small catastrophe events and attritional loss movements (25,042) Total catastrophe and attritional net claims and claim expenses (56,145) Total net favorable development of prior accident years net claims and claim expenses $ (56,145) Six months ended June 30 2020 (Favorable) adverse development Catastrophe net claims and claim expenses Large catastrophe events 2019 Large Loss Events $ (19,940) 2018 Large Loss Events (12,306) 2017 Large Loss Events (3,825) Other 7,004 Total large catastrophe events (29,067) Small catastrophe events and attritional loss movements Other small catastrophe events and attritional loss movements 36,360 Total small catastrophe events and attritional loss movements 36,360 Total net adverse development of prior accident years net claims and claim expenses $ 7,293 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 2021 2020 Favorable development Favorable development Actuarial methods - actual reported claims less than expected claims $ (4,916) $ (8,799) Total net favorable development of prior accident years net claims and claim expenses $ (4,916) $ (8,799) |
Debt and Credit Facilities (Tab
Debt and Credit Facilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 December 31, 2020 Fair Value Carrying Value Fair Value Carrying Value 3.600% Senior Notes due 2029 $ 441,516 $ 392,846 $ 453,932 $ 392,391 3.450% Senior Notes due 2027 328,047 297,033 329,661 296,787 3.700% Senior Notes due 2025 310,776 298,612 315,273 298,428 4.750% Senior Notes due 2025 (DaVinciRe) (1) 164,826 148,813 162,203 148,659 Total debt $ 1,245,165 $ 1,137,304 $ 1,261,069 $ 1,136,265 (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, 2021 Issued or Drawn Revolving Credit Facility (1) $ — Bilateral Letter of Credit Facilities Secured 386,571 Unsecured 379,343 Funds at Lloyd’s Letter of Credit Facility 225,000 $ 990,914 (1) At June 30, 2021, no amounts were issued or drawn under this facility. |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest [Abstract] | |
Schedule of Redeemable Noncontrolling Interest | A summary of the Company’s redeemable noncontrolling interests on its consolidated balance sheets is set forth below: June 30, December 31, 2020 Redeemable noncontrolling interest - DaVinciRe $ 1,642,656 $ 1,560,693 Redeemable noncontrolling interest - Medici 880,320 717,999 Redeemable noncontrolling interest - Vermeer 1,133,443 1,109,627 Redeemable noncontrolling interests $ 3,656,419 $ 3,388,319 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 $ 84,266 $ 88,374 $ 44,332 $ 173,280 Redeemable noncontrolling interest - Medici 11,989 13,151 (1,454) 8,473 Redeemable noncontrolling interest - Vermeer 17,289 17,203 23,816 35,066 Net income attributable to redeemable noncontrolling interests $ 113,544 $ 118,728 $ 66,694 $ 216,819 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 $ 1,555,714 $ 1,533,085 $ 1,560,693 $ 1,435,581 Redemption of shares from redeemable noncontrolling interest, net of adjustments 2,676 (159) (153,295) 2,448 Sale of shares to redeemable noncontrolling interests — — 190,926 9,991 Net income attributable to redeemable noncontrolling interest 84,266 88,374 44,332 173,280 Ending balance $ 1,642,656 $ 1,621,300 $ 1,642,656 $ 1,621,300 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 $ 737,702 $ 677,283 $ 717,999 $ 632,112 Redemption of shares from redeemable noncontrolling interest, net of adjustments (46) (44,474) (7,745) (49,238) Sale of shares to redeemable noncontrolling interests 130,675 36,158 171,520 90,771 Net income (loss) attributable to redeemable noncontrolling interest 11,989 13,151 (1,454) 8,473 Ending balance $ 880,320 $ 682,118 $ 880,320 $ 682,118 The activity in redeemable noncontrolling interest – Vermeer is detailed in the table below: Three months ended Six months ended June 30, June 30, June 30, June 30, Beginning balance $ 1,116,154 $ 1,021,478 $ 1,109,627 $ 1,003,615 Sale of shares to redeemable noncontrolling interest — 45,000 — 45,000 Net income attributable to redeemable noncontrolling interest 17,289 17,203 23,816 35,066 Ending balance $ 1,133,443 $ 1,083,681 $ 1,133,443 $ 1,083,681 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 $ 456,818 $ 575,845 $ 165,884 $ 493,871 Amount allocated to participating common shareholders (1) (5,809) (7,593) (1,864) (6,153) Net income available to RenaissanceRe common shareholders $ 451,009 $ 568,252 $ 164,020 $ 487,718 Denominator: Denominator for basic loss per RenaissanceRe common share - weighted average common shares 48,163 44,939 48,871 44,190 Per common share equivalents of employee stock options and non-vested shares 63 64 69 63 Denominator for diluted loss per RenaissanceRe common share - adjusted weighted average common shares and assumed conversions 48,226 45,003 48,940 44,253 Net income available to RenaissanceRe common shareholders per common share – basic $ 9.36 $ 12.64 $ 3.36 $ 11.04 Net income available to RenaissanceRe common shareholders per common share – diluted $ 9.35 $ 12.63 $ 3.35 $ 11.02 (1) Represents earnings and dividends attributable to holders of unvested shares issued pursuant to the Company's stock compensation plans. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 Property Casualty and Specialty Other Total Gross premiums written $ 1,183,556 $ 910,602 $ — $ 2,094,158 Net premiums written $ 803,335 $ 708,957 $ — $ 1,512,292 Net premiums earned $ 560,397 $ 632,393 $ — $ 1,192,790 Net claims and claim expenses incurred 97,150 422,871 — 520,021 Acquisition expenses 109,238 176,352 — 285,590 Operational expenses 38,887 19,316 — 58,203 Underwriting income $ 315,122 $ 13,854 $ — 328,976 Net investment income 80,925 80,925 Net foreign exchange gains 3,234 3,234 Equity in earnings of other ventures 8,732 8,732 Other income 586 586 Net realized and unrealized gains on investments 191,018 191,018 Corporate expenses (10,125) (10,125) Interest expense (11,833) (11,833) Income before taxes and redeemable noncontrolling interests 591,513 Income tax expense (13,862) (13,862) Net income attributable to redeemable noncontrolling interests (113,544) (113,544) Dividends on preference shares (7,289) (7,289) Net income available to RenaissanceRe common shareholders $ 456,818 Net claims and claim expenses incurred – current accident year $ 148,133 $ 423,917 $ — $ 572,050 Net claims and claim expenses incurred – prior accident years (50,983) (1,046) — (52,029) Net claims and claim expenses incurred – total $ 97,150 $ 422,871 $ — $ 520,021 Net claims and claim expense ratio – current accident year 26.4 % 67.0 % 48.0 % Net claims and claim expense ratio – prior accident years (9.1) % (0.1) % (4.4) % Net claims and claim expense ratio – calendar year 17.3 % 66.9 % 43.6 % Underwriting expense ratio 26.5 % 30.9 % 28.8 % Combined ratio 43.8 % 97.8 % 72.4 % Six months ended June 30, 2021 Property Casualty and Specialty Other Total Gross premiums written $ 2,800,375 $ 1,946,225 $ — $ 4,746,600 Net premiums written $ 1,811,795 $ 1,524,580 $ — $ 3,336,375 Net premiums earned $ 1,165,563 $ 1,181,063 $ — $ 2,346,626 Net claims and claim expenses incurred 595,982 791,090 — 1,387,072 Acquisition expenses 221,992 330,832 — 552,824 Operational expenses 74,262 39,252 — 113,514 Underwriting income $ 273,327 $ 19,889 $ — 293,216 Net investment income 160,729 160,729 Net foreign exchange losses (19,554) (19,554) Equity in earnings of other ventures 3,174 3,174 Other income 2,757 2,757 Net realized and unrealized losses on investments (154,545) (154,545) Corporate expenses (20,530) (20,530) Interest expense (23,745) (23,745) Income before taxes and redeemable noncontrolling interests 241,502 Income tax benefit 5,654 5,654 Net income attributable to redeemable noncontrolling interests (66,694) (66,694) Dividends on preference shares (14,578) (14,578) Net income available to RenaissanceRe common shareholders $ 165,884 Net claims and claim expenses incurred – current accident year $ 652,127 $ 796,006 $ — $ 1,448,133 Net claims and claim expenses incurred – prior accident years (56,145) (4,916) — (61,061) Net claims and claim expenses incurred – total $ 595,982 $ 791,090 $ — $ 1,387,072 Net claims and claim expense ratio – current accident year 55.9 % 67.4 % 61.7 % Net claims and claim expense ratio – prior accident years (4.8) % (0.4) % (2.6) % Net claims and claim expense ratio – calendar year 51.1 % 67.0 % 59.1 % Underwriting expense ratio 25.4 % 31.3 % 28.4 % Combined ratio 76.5 % 98.3 % 87.5 % Three months ended June 30, 2020 Property Casualty and Specialty Other Total Gross premiums written $ 1,042,536 $ 659,336 $ — $ 1,701,872 Net premiums written $ 704,138 $ 476,665 $ — $ 1,180,803 Net premiums earned $ 491,116 $ 518,980 $ — $ 1,010,096 Net claims and claim expenses incurred 164,006 346,266 — 510,272 Acquisition expenses 94,773 138,837 — 233,610 Operational expenses 31,655 17,422 — 49,077 Underwriting income $ 200,682 $ 16,455 $ — 217,137 Net investment income 89,305 89,305 Net foreign exchange losses (7,195) (7,195) Equity in earnings of other ventures 9,041 9,041 Other loss (1,201) (1,201) Net realized and unrealized gains on investments 448,390 448,390 Corporate expenses (11,898) (11,898) Interest expense (11,842) (11,842) Income before taxes and redeemable noncontrolling interests 731,737 Income tax expense (29,875) (29,875) Net income attributable to redeemable noncontrolling interests (118,728) (118,728) Dividends on preference shares (7,289) (7,289) Net income available to RenaissanceRe common shareholders $ 575,845 Net claims and claim expenses incurred – current accident year $ 170,614 $ 355,064 $ — $ 525,678 Net claims and claim expenses incurred – prior accident years (6,608) (8,798) — (15,406) Net claims and claim expenses incurred – total $ 164,006 $ 346,266 $ — $ 510,272 Net claims and claim expense ratio – current accident year 34.7 % 68.4 % 52.0 % Net claims and claim expense ratio – prior accident years (1.3) % (1.7) % (1.5) % Net claims and claim expense ratio – calendar year 33.4 % 66.7 % 50.5 % Underwriting expense ratio 25.7 % 30.1 % 28.0 % Combined ratio 59.1 % 96.8 % 78.5 % Six months ended June 30, 2020 Property Casualty and Specialty Other Total Gross premiums written $ 2,263,062 $ 1,464,531 $ — $ 3,727,593 Net premiums written $ 1,378,719 $ 1,071,892 $ — $ 2,450,611 Net premiums earned $ 912,451 $ 1,010,743 $ — $ 1,923,194 Net claims and claim expenses incurred 308,751 772,475 — 1,081,226 Acquisition expenses 180,124 264,090 — 444,214 Operational expenses 75,662 40,876 — 116,538 Underwriting income (loss) $ 347,914 $ (66,698) $ — 281,216 Net investment income 188,778 188,778 Net foreign exchange losses (12,923) (12,923) Equity in earnings of other ventures 13,605 13,605 Other loss (5,637) (5,637) Net realized and unrealized gains on investments 337,683 337,683 Corporate expenses (27,889) (27,889) Interest expense (26,769) (26,769) Income before taxes and redeemable noncontrolling interests 748,064 Income tax expense (21,029) (21,029) Net income attributable to redeemable noncontrolling interests (216,819) (216,819) Dividends on preference shares (16,345) (16,345) Net income available to RenaissanceRe common shareholders $ 493,871 Net claims and claim expenses incurred – current accident year $ 301,458 $ 781,274 $ — $ 1,082,732 Net claims and claim expenses incurred – prior accident years 7,293 (8,799) — (1,506) Net claims and claim expenses incurred – total $ 308,751 $ 772,475 $ — $ 1,081,226 Net claims and claim expense ratio – current accident year 33.0 % 77.3 % 56.3 % Net claims and claim expense ratio – prior accident years 0.8 % (0.9) % (0.1) % Net claims and claim expense ratio – calendar year 33.8 % 76.4 % 56.2 % Underwriting expense ratio 28.1 % 30.2 % 29.2 % Combined ratio 61.9 % 106.6 % 85.4 % |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 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 Derivative instruments not designated as hedges Interest rate futures $ 837 $ — $ 837 Other assets $ — $ 837 Interest rate swaps 21 — 21 Other assets — 21 Foreign currency forward contracts (1) 4,089 — 4,089 Other assets — 4,089 Foreign currency forward contracts (2) 1,355 — 1,355 Other assets — 1,355 Credit default swaps 95 — 95 Other assets — 95 Total return swaps 327 — 327 Other assets — 327 Total derivative instruments not designated as hedges 6,724 — 6,724 — 6,724 Derivative instruments designated as hedges Foreign currency forward contracts (3) 3,312 571 2,741 Other assets — 2,741 Total $ 10,036 $ 571 $ 9,465 $ — $ 9,465 Derivative Liabilities At June 30, 2021 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 Derivative instruments not designated as hedges Interest rate futures $ 1,281 $ — $ 1,281 Other liabilities $ 1,281 $ — Foreign currency forward contracts (1) 10,185 1,497 8,688 Other liabilities — 8,688 Foreign currency forward contracts (2) 5,296 — 5,296 Other liabilities — 5,296 Total derivative instruments not designated as hedges 16,762 1,497 15,265 1,281 13,984 Derivative instruments designated as hedges Foreign currency forward contracts (3) 365 — 365 Other liabilities — 365 Total $ 17,127 $ 1,497 $ 15,630 $ 1,281 $ 14,349 (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. (3) Contracts designated as hedges of net investments in foreign operations. Derivative Assets At December 31, 2020 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 Derivative instruments not designated as hedges Interest rate futures $ 1,019 $ 863 $ 156 Other assets $ — $ 156 Interest rate swaps 22 — 22 Other assets — 22 Foreign currency forward contracts (1) 23,055 184 22,871 Other assets — 22,871 Foreign currency forward contracts (2) 2,232 69 2,163 Other assets — 2,163 Credit default swaps 68 — 68 Other assets — 68 Total derivative instruments not designated as hedges 26,396 1,116 25,280 — 25,280 Derivative instruments designated as hedges Foreign currency forward contracts (3) 19,953 — 19,953 Other assets — 19,953 Total $ 46,349 $ 1,116 $ 45,233 $ — $ 45,233 Derivative Liabilities At December 31, 2020 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 Derivative instruments not designated as hedges Interest rate futures $ 1,430 $ 863 $ 567 Other liabilities $ 567 $ — Foreign currency forward contracts (1) 12,791 — 12,791 Other liabilities — 12,791 Foreign currency forward contracts (2) 3,919 69 3,850 Other liabilities 1,053 2,797 Total derivative instruments not designated as hedges 18,140 932 17,208 1,620 15,588 Derivative instruments designated as hedges Foreign currency forward contracts (3) 5,152 — 5,152 Other liabilities — 5,152 Total $ 23,292 $ 932 $ 22,360 $ 1,620 $ 20,740 (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. (3) Contracts designated as hedges of net investments in foreign 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) Amount of gain (loss) recognized on Three months ended June 30 2021 2020 Derivative instruments not designated as hedges Interest rate futures Net realized and unrealized gains (losses) on investments $ (11,295) $ 2,557 Interest rate swaps Net realized and unrealized gains (losses) on investments (78) 502 Foreign currency forward contracts (1) Net foreign exchange gains (losses) 240 6,908 Foreign currency forward contracts (2) Net foreign exchange gains (losses) (1,840) (7,613) Credit default swaps Net realized and unrealized gains (losses) on investments 1,169 1,974 Total return swaps Net realized and unrealized gains (losses) on investments 875 14,151 Equity futures Net realized and unrealized gains (losses) on investments — 5,188 Total derivative instruments not designated as hedges (10,929) 23,667 Derivative instruments designated as hedges Foreign currency forward contracts (3) Accumulated other comprehensive loss 2,437 (8,694) Total derivative instruments designated as hedges 2,437 (8,694) Total $ (8,492) $ 14,973 Location of gain (loss) Amount of gain (loss) recognized on Six months ended June 30 2021 2020 Derivative instruments not designated as hedges Interest rate futures Net realized and unrealized gains (losses) on investments $ 4,212 $ 90,563 Interest rate swaps Net realized and unrealized gains (losses) on investments (979) 2,609 Foreign currency forward contracts (1) Net foreign exchange gains (losses) (3,401) 6,578 Foreign currency forward contracts (2) Net foreign exchange gains (losses) (6,901) (1,213) Credit default swaps Net realized and unrealized gains (losses) on investments 1,424 (2,923) Total return swaps Net realized and unrealized gains (losses) on investments 875 (6,986) Equity futures Net realized and unrealized gains (losses) on investments — (25,710) Total derivative instruments not designated as hedges (4,770) 62,918 Derivative instruments designated as hedges Foreign currency forward contracts (3) Accumulated other comprehensive loss 348 2,150 Total derivative instruments designated as hedges 348 2,150 Total $ (4,422) $ 65,068 (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. (3) Contracts designated as hedges of net investments in foreign operations. |
Schedule of Derivative Instruments Designated as Hedges of a Net Investment in a Foreign Operation | The table below provides a summary of derivative instruments designated as hedges of net investments in foreign operations, including the weighted average U.S. dollar equivalent of foreign denominated net (liabilities) assets that were hedged and the resulting derivative (losses) gains that are recorded in foreign currency translation adjustments, net of tax, within accumulated other comprehensive loss on the Company’s consolidated statements of changes in shareholders’ equity: Three months ended Six months ended June 30, June 30, June 30, June 30, Weighted average of U.S. dollar equivalent of foreign denominated net (liabilities) assets $ 58,876 $ 74,451 $ (48,790) $ 77,683 Derivative gains (losses) (1) $ 2,437 $ (8,694) $ 348 $ 2,150 (1) Derivative gains (losses) from derivative instruments designated as hedges of the net investment in a foreign operation are recorded in foreign currency translation adjustments, net of tax, within accumulated other comprehensive loss on the Company’s consolidated statements of changes in shareholders’ equity. |
Investments (Schedule of Fair V
Investments (Schedule of Fair Value of Fixed Maturity Investments Trading) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of Investments [Line Items] | ||
Total fixed maturity investments trading | $ 13,418,389 | $ 13,506,503 |
U.S. treasuries | ||
Schedule of Investments [Line Items] | ||
Total fixed maturity investments trading | 6,327,895 | 4,960,409 |
Agencies | ||
Schedule of Investments [Line Items] | ||
Total fixed maturity investments trading | 325,051 | 368,032 |
Non-U.S. government | ||
Schedule of Investments [Line Items] | ||
Total fixed maturity investments trading | 508,320 | 491,531 |
Non-U.S. government-backed corporate | ||
Schedule of Investments [Line Items] | ||
Total fixed maturity investments trading | 396,966 | 338,014 |
Corporate | ||
Schedule of Investments [Line Items] | ||
Total fixed maturity investments trading | 3,387,433 | 4,261,025 |
Agency mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Total fixed maturity investments trading | 703,757 | 1,113,792 |
Non-agency mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Total fixed maturity investments trading | 260,432 | 291,444 |
Commercial mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Total fixed maturity investments trading | 588,262 | 791,272 |
Asset-backed | ||
Schedule of Investments [Line Items] | ||
Total fixed maturity investments trading | $ 920,273 | $ 890,984 |
Investments (Schedule of Contra
Investments (Schedule of Contractual Maturities of Fixed Maturity Investments) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Due in less than one year | $ 361,912 | |
Due after one through five years | 6,135,329 | |
Due after five through ten years | 4,041,811 | |
Due after ten years | 318,245 | |
Amortized Cost | 13,303,855 | $ 13,155,035 |
Fair Value | ||
Due in less than one year | 365,154 | |
Due after one through five years | 6,191,724 | |
Due after five through ten years | 4,060,205 | |
Due after ten years | 328,582 | |
Fixed maturity investments | 13,418,389 | 13,506,503 |
Mortgage-backed | ||
Amortized Cost | ||
Amortized Cost | 1,528,338 | |
Fair Value | ||
Fixed maturity investments | 1,552,451 | |
Asset-backed | ||
Amortized Cost | ||
Amortized Cost | 918,220 | |
Fair Value | ||
Fixed maturity investments | $ 920,273 | $ 890,984 |
Investments (Schedule of Fair_2
Investments (Schedule of Fair Value of Equity Investments Trading) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity investments trading | $ 577,090 | $ 702,617 |
Financials | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity investments trading | 227,257 | 452,765 |
Communications and technology | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity investments trading | 93,458 | 119,592 |
Consumer | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity investments trading | 58,699 | 44,477 |
Industrial, utilities and energy | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity investments trading | 32,891 | 43,380 |
Healthcare | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity investments trading | 32,041 | 35,140 |
Basic materials | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity investments trading | 6,051 | 7,263 |
Exchange traded funds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity investments trading | $ 126,693 | $ 0 |
Investments (Pledged Investment
Investments (Pledged Investments) (Details) - USD ($) $ in Billions | Jun. 30, 2021 | Dec. 31, 2020 |
Investments [Abstract] | ||
Cash and investments at fair value on deposit with, or in trust accounts for the benefit of various counterparties | $ 8.6 | $ 8.1 |
Cash and investments at fair value on deposit with, or in trust accounts for the benefit of U.S. state regulatory authorities | $ 2 | $ 2.5 |
Investments (Reverse Purchase A
Investments (Reverse Purchase Agreements) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||
Value of reverse repurchase agreements | $ 77.8 | $ 126.5 |
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, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Investment income before investment expenses | $ 88,097 | $ 93,121 | $ 171,465 | $ 197,374 |
Investment expenses | (7,172) | (3,816) | (10,736) | (8,596) |
Net investment income | 80,925 | 89,305 | 160,729 | 188,778 |
Fixed maturity investments | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Investment income before investment expenses | 59,510 | 69,943 | 122,443 | 143,281 |
Short term investments | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Investment income before investment expenses | 782 | 6,049 | 1,355 | 18,141 |
Equity investments | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Investment income before investment expenses | 1,626 | 1,666 | 3,117 | 3,217 |
Catastrophe bonds | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Investment income before investment expenses | 16,681 | 13,519 | 31,149 | 27,658 |
Other | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Investment income before investment expenses | 9,339 | 1,107 | 13,140 | 2,736 |
Cash and cash equivalents | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Investment income before investment expenses | $ 159 | $ 837 | $ 261 | $ 2,341 |
Investments (Schedule of Net Re
Investments (Schedule of Net Realized and Unrealized Gains (Losses) on Investments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Gain (Loss) on Securities [Line Items] | ||||
Net realized and unrealized gains (losses) on investments | $ 191,018 | $ 448,390 | $ (154,545) | $ 337,683 |
Fixed maturity investments | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized gains on fixed maturity investments trading | 33,161 | 105,849 | 53,559 | 163,336 |
Net unrealized gains (losses) on fixed maturity investments trading | 64,015 | 197,678 | (233,003) | 177,333 |
Net realized and unrealized gains (losses) on fixed maturity investments trading | 97,176 | 303,527 | (179,444) | 340,669 |
Derivatives | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized and unrealized (losses) gains on investments-related derivatives | (9,329) | 24,372 | 5,532 | 57,553 |
Equity investments | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized gains (losses) on equity investments trading | 93,411 | 422 | 203,298 | (14,625) |
Net unrealized (losses) gains on equity investments trading | (27,845) | 107,896 | (205,654) | 1,959 |
Net realized and unrealized gains (losses) on equity investments trading | 65,566 | 108,318 | (2,356) | (12,666) |
Catastrophe bonds | Other investments | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized and unrealized gains (losses) on other investments | 2 | 4,452 | (19,081) | (9,900) |
Other | Other investments | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized and unrealized gains (losses) on other investments | $ 37,603 | $ 7,721 | $ 40,804 | $ (37,973) |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | $ 13,418,389,000 | $ 13,506,503,000 |
Short term investments | 4,392,652,000 | 4,993,735,000 |
Equity investments trading | 577,090,000 | 702,617,000 |
Other investments | 1,585,036,000 | 1,256,948,000 |
Derivative assets | 9,465,000 | 45,233,000 |
Derivative liabilities | (15,630,000) | (22,360,000) |
Other assets | 4,418,000 | 8,982,000 |
Other liabilities | (10,611,000) | (15,193,000) |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 13,418,389,000 | 13,506,503,000 |
Short term investments | 4,392,652,000 | 4,993,735,000 |
Equity investments trading | 577,090,000 | 702,617,000 |
Other investments | 1,585,036,000 | 1,256,948,000 |
Assumed and ceded (re)insurance contracts | (6,193,000) | (6,211,000) |
Derivative assets | 9,465,000 | 45,233,000 |
Derivative liabilities | (15,630,000) | (22,360,000) |
Other assets | 16,662,000 | |
Other liabilities | (12,358,000) | |
Total assets and (liabilities) measured at fair value on a recurring basis using Level 3 inputs | 19,960,809,000 | 20,476,465,000 |
Fair Value, Inputs, Level 1, 2 and 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 1,107,741,000 | 961,097,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 6,327,895,000 | 4,960,409,000 |
Short term investments | 0 | 0 |
Equity investments trading | 577,090,000 | 702,617,000 |
Other investments | 0 | 0 |
Assumed and ceded (re)insurance contracts | 0 | 0 |
Derivative assets | 837,000 | 156,000 |
Derivative liabilities | (1,281,000) | (567,000) |
Other liabilities | (444,000) | (411,000) |
Total assets and (liabilities) measured at fair value on a recurring basis using Level 3 inputs | 6,904,541,000 | 5,662,615,000 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 7,090,494,000 | 8,546,094,000 |
Short term investments | 4,392,652,000 | 4,993,735,000 |
Equity investments trading | 0 | 0 |
Other investments | 1,026,397,000 | 881,290,000 |
Assumed and ceded (re)insurance contracts | 0 | 0 |
Derivative assets | 8,628,000 | 45,077,000 |
Derivative liabilities | (14,349,000) | (21,793,000) |
Other assets | 23,284,000 | |
Other liabilities | (5,721,000) | |
Total assets and (liabilities) measured at fair value on a recurring basis using Level 3 inputs | 12,503,822,000 | 14,444,403,000 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
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 | 81,344,000 | 79,807,000 |
Assumed and ceded (re)insurance contracts | (6,193,000) | (6,211,000) |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Other liabilities | (6,193,000) | (6,211,000) |
Total assets and (liabilities) measured at fair value on a recurring basis using Level 3 inputs | 75,151,000 | 73,596,000 |
Significant Unobservable Inputs (Level 3) | Other assets | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assumed and ceded (re)insurance contracts | 0 | (1,400,000) |
Significant Unobservable Inputs (Level 3) | Other liabilities | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assumed and ceded (re)insurance contracts | (6,200,000) | 7,600,000 |
U.S. treasuries | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 6,327,895,000 | 4,960,409,000 |
U.S. treasuries | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 6,327,895,000 | 4,960,409,000 |
U.S. treasuries | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
U.S. treasuries | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Agencies | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 325,051,000 | 368,032,000 |
Agencies | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Agencies | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 325,051,000 | 368,032,000 |
Agencies | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Non-U.S. government | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 508,320,000 | 491,531,000 |
Non-U.S. government | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Non-U.S. government | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 508,320,000 | 491,531,000 |
Non-U.S. government | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Non-U.S. government-backed corporate | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 396,966,000 | 338,014,000 |
Non-U.S. government-backed corporate | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Non-U.S. government-backed corporate | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 396,966,000 | 338,014,000 |
Non-U.S. government-backed corporate | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Corporate | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 3,387,433,000 | 4,261,025,000 |
Corporate | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Corporate | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 3,387,433,000 | 4,261,025,000 |
Corporate | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Agency mortgage-backed | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 703,757,000 | 1,113,792,000 |
Agency mortgage-backed | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Agency mortgage-backed | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 703,757,000 | 1,113,792,000 |
Agency mortgage-backed | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Non-agency mortgage-backed | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 260,432,000 | 291,444,000 |
Non-agency mortgage-backed | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Non-agency mortgage-backed | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 260,432,000 | 291,444,000 |
Non-agency mortgage-backed | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Commercial mortgage-backed | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 588,262,000 | 791,272,000 |
Commercial mortgage-backed | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Commercial mortgage-backed | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 588,262,000 | 791,272,000 |
Commercial mortgage-backed | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Asset-backed | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 920,273,000 | 890,984,000 |
Asset-backed | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Asset-backed | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 920,273,000 | 890,984,000 |
Asset-backed | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity investments | 0 | 0 |
Catastrophe bonds | Fair Value, Inputs, Level 1, 2 and 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 1,026,397,000 | 881,290,000 |
Catastrophe bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Catastrophe bonds | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 1,026,397,000 | 881,290,000 |
Catastrophe bonds | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Private equity and private credit funds | Fair Value, Inputs, Level 1, 2 and 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 81,344,000 | 79,807,000 |
Private equity and private credit funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Private equity and private credit funds | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Private equity and private credit funds | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | 81,344,000 | 79,807,000 |
Fund investments | Fair Value Measured at Net Asset Value Per Share | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments | $ 477,295,000 | $ 295,851,000 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Other investments | $ 1,585,036 | $ 1,585,036 | $ 1,256,948 | ||
Other liabilities | 10,611 | 10,611 | 15,193 | ||
Other assets | 4,418 | 4,418 | 8,982 | ||
Debt | 1,137,304 | 1,137,304 | 1,136,265 | ||
Long-term debt, fair value | 1,200,000 | 1,200,000 | 1,300,000 | ||
Net investment income | Other investments | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Net unrealized gains (losses) recognized in earnings | 41,900 | $ 15,600 | 26,000 | $ (44,500) | |
Fair Value, Measurements, Recurring | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Other investments | 1,585,036 | 1,585,036 | 1,256,948 | ||
Other liabilities | 12,358 | 12,358 | |||
Other assets | 16,662 | ||||
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Other investments | 81,344 | 81,344 | 79,807 | ||
Other liabilities | 6,193 | 6,193 | 6,211 | ||
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Private equity investments | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Other investments | 81,344 | 81,344 | 79,807 | ||
Significant Unobservable Inputs (Level 3) | Internal valuation model | Fair Value, Measurements, Recurring | Assumed and ceded (re)insurance contracts, group two | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Other liabilities | 6,193 | 6,193 | 6,211 | ||
Significant Unobservable Inputs (Level 3) | Internal valuation model | Fair Value, Measurements, Recurring | Private equity investments | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Other investments | 81,344 | 81,344 | $ 79,807 | ||
Fair Value Measured at Net Asset Value Per Share | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Miscellaneous other investments | $ 477,295 | $ 477,295 | |||
U.S. treasuries | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 0.70% | 0.70% | 0.40% | ||
Agencies | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 1.10% | 1.10% | 0.90% | ||
Non-U.S. government | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 0.80% | 0.80% | 0.50% | ||
Non-U.S. government-backed corporate | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 1.30% | 1.30% | 1.00% | ||
Corporate | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 2.40% | 2.40% | 2.20% | ||
Agency mortgage-backed | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 1.20% | 1.20% | 1.00% | ||
Weighted average life | 3 years 6 months | 3 years 9 months 18 days | |||
Non-agency prime residential mortgage-backed | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 2.60% | 2.60% | 3.00% | ||
Weighted average life | 5 years 7 months 6 days | 5 years 2 months 12 days | |||
Commercial mortgage-backed | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 1.60% | 1.60% | 1.50% | ||
Weighted average life | 4 years 2 months 12 days | 5 years | |||
Asset-backed | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 1.70% | 1.70% | 1.80% | ||
Weighted average life | 4 years 7 months 6 days | 3 years 2 months 12 days | |||
Short term investments | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Weighted average effective yield | 0.00% | 0.00% | 0.10% | ||
Private equity investments | Minimum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Liquidation period for fund assets | 7 years | ||||
Private equity investments | Maximum | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Liquidation period for fund assets | 10 years | ||||
Private equity investments | Fair Value Measured at Net Asset Value Per Share | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Miscellaneous other investments | $ 453,675 | $ 453,675 | |||
Senior secured bank loan funds | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Miscellaneous other investments | 12,300 | $ 12,300 | |||
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 | ||||
Senior secured bank loan funds | Fair Value Measured at Net Asset Value Per Share | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Miscellaneous other investments | 12,251 | $ 12,251 | |||
Hedge funds | Fair Value Measured at Net Asset Value Per Share | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Miscellaneous other investments | $ 11,369 | $ 11,369 |
Fair Value Measurements (Quanti
Fair Value Measurements (Quantitative Information Used as Level 3 Inputs) (Details) $ in Thousands | Jun. 30, 2021USD ($)$ / shares | Dec. 31, 2020USD ($)$ / shares |
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Other investments | $ 1,585,036 | $ 1,256,948 |
Other liabilities | (10,611) | (15,193) |
Assumed and ceded (re)insurance contracts | 4,418 | 8,982 |
Fair Value, Measurements, Recurring | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Other investments | 1,585,036 | 1,256,948 |
Other liabilities | (12,358) | |
Assumed and ceded (re)insurance contracts | 16,662 | |
Total assets and (liabilities) measured at fair value on a recurring basis using Level 3 inputs | 19,960,809 | 20,476,465 |
Fair Value, Measurements, Recurring | Assumed and ceded (re)insurance contracts | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Other liabilities | (6,193) | (6,211) |
Fair Value, Measurements, Recurring | Fair Value (Level 3) | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Other investments | 81,344 | 79,807 |
Other liabilities | (6,193) | (6,211) |
Total assets and (liabilities) measured at fair value on a recurring basis using Level 3 inputs | 75,151 | 73,596 |
Fair Value, Measurements, Recurring | Internal valuation model | Fair Value (Level 3) | Assumed and ceded (re)insurance contracts, group two | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Other liabilities | (6,193) | (6,211) |
Fair Value, Measurements, Recurring | Private equity and private credit funds | Fair Value (Level 3) | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Other investments | 81,344 | 79,807 |
Fair Value, Measurements, Recurring | Private equity and private credit funds | Internal valuation model | Fair Value (Level 3) | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Other investments | $ 81,344 | $ 79,807 |
Discount rate | Fair Value, Measurements, Recurring | Internal valuation model | Fair Value (Level 3) | Assumed and ceded (re)insurance contracts, group two | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Significant observable and unobservable inputs (in dollars per share) | 0.004 | |
Discount rate | Fair Value, Measurements, Recurring | Internal valuation model | Fair Value (Level 3) | Weighted Average or Actual | Assumed and ceded (re)insurance contracts, group two | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Significant observable and unobservable inputs (in dollars per share) | 0.009 | |
Discount rate | Fair Value, Measurements, Recurring | Private equity and private credit funds | Internal valuation model | Fair Value (Level 3) | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Significant observable and unobservable inputs (in dollars per share) | $ / shares | 0.090 | |
Discount rate | Fair Value, Measurements, Recurring | Private equity and private credit funds | Internal valuation model | Fair Value (Level 3) | Weighted Average or Actual | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Significant observable and unobservable inputs (in dollars per share) | $ / shares | 0.090 | |
Liquidity discount | Fair Value, Measurements, Recurring | Private equity and private credit funds | Internal valuation model | Fair Value (Level 3) | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Significant observable and unobservable inputs (in dollars per share) | $ / shares | 0.150 | |
Liquidity discount | Fair Value, Measurements, Recurring | Private equity and private credit funds | Internal valuation model | Fair Value (Level 3) | Weighted Average or Actual | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Significant observable and unobservable inputs (in dollars per share) | $ / shares | 0.150 | |
Net undiscounted cash flows | Fair Value, Measurements, Recurring | Internal valuation model | Fair Value (Level 3) | Assumed and ceded (re)insurance contracts, group two | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Significant observable and unobservable inputs (in dollars per share) | 12,514,000 | |
Net undiscounted cash flows | Fair Value, Measurements, Recurring | Internal valuation model | Fair Value (Level 3) | Weighted Average or Actual | Assumed and ceded (re)insurance contracts, group two | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Significant observable and unobservable inputs (in dollars per share) | 13,233,000 | |
Expected loss ratio | Fair Value, Measurements, Recurring | Internal valuation model | Fair Value (Level 3) | Assumed and ceded (re)insurance contracts, group two | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Significant observable and unobservable inputs (in dollars per share) | 0.240 | |
Expected loss ratio | Fair Value, Measurements, Recurring | Internal valuation model | Fair Value (Level 3) | Weighted Average or Actual | Assumed and ceded (re)insurance contracts, group two | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Significant observable and unobservable inputs (in dollars per share) | 0.200 |
Fair Value Measurements (Asse_2
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Level 3 Inputs) (Details) - Fair Value (Level 3) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of the period | $ 69,453 | $ 73,843 | $ 73,596 | $ 79,365 |
Total realized and unrealized losses | ||||
Total foreign exchange gains | 1 | 4 | (21) | |
Purchases | 4,788 | (482) | 4,482 | 19,869 |
Sales | (946) | (790) | (946) | (9,589) |
Settlements | 0 | (5,739) | 0 | (5,739) |
Balance at end of the period | 75,151 | 64,739 | 75,151 | 64,739 |
Net realized and unrealized gains (losses) on investments | ||||
Total realized and unrealized losses | ||||
Included in other income (loss) | 1,415 | (380) | (2,521) | (14,536) |
Other income (loss) | ||||
Total realized and unrealized losses | ||||
Included in other income (loss) | 440 | (1,713) | 536 | (4,610) |
Other investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of the period | 75,874 | 72,620 | 79,807 | 74,634 |
Total realized and unrealized losses | ||||
Total foreign exchange gains | 1 | 4 | (21) | |
Purchases | 5,000 | 0 | 5,000 | 20,962 |
Sales | (946) | (790) | (946) | (9,589) |
Settlements | 0 | 0 | 0 | 0 |
Balance at end of the period | 81,344 | 71,450 | 81,344 | 71,450 |
Other investments | Net realized and unrealized gains (losses) on investments | ||||
Total realized and unrealized losses | ||||
Included in other income (loss) | 1,415 | (380) | (2,521) | (14,536) |
Other investments | Other income (loss) | ||||
Total realized and unrealized losses | ||||
Included in other income (loss) | 0 | 0 | 0 | 0 |
Other assets and (liabilities) | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning of the period | (6,421) | 1,223 | (6,211) | 4,731 |
Total realized and unrealized losses | ||||
Total foreign exchange gains | 0 | 0 | 0 | |
Purchases | (212) | (482) | (518) | (1,093) |
Sales | 0 | 0 | 0 | 0 |
Settlements | 0 | (5,739) | 0 | (5,739) |
Balance at end of the period | (6,193) | (6,711) | (6,193) | (6,711) |
Other assets and (liabilities) | Net realized and unrealized gains (losses) on investments | ||||
Total realized and unrealized losses | ||||
Included in other income (loss) | 0 | 0 | 0 | 0 |
Other assets and (liabilities) | Other income (loss) | ||||
Total realized and unrealized losses | ||||
Included in other income (loss) | $ 440 | $ (1,713) | $ 536 | $ (4,610) |
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, 2021 | Dec. 31, 2020 |
Fair Value Disclosures [Abstract] | ||
Other investments | $ 1,585,036 | $ 1,256,948 |
Other assets | 4,418 | 8,982 |
Other liabilities | $ 10,611 | $ 15,193 |
Fair Value Measurements (Compan
Fair Value Measurements (Company's Portfolio of Other Investments Measured Using Net Asset Valuations) (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Senior secured bank loan funds | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Fair Value | $ 12,300 |
Fair Value Measured at Net Asset Value Per Share | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Fair Value | 477,295 |
Unfunded Commitments | 1,194,012 |
Fair Value Measured at Net Asset Value Per Share | Private equity and private credit funds | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Fair Value | 453,675 |
Unfunded Commitments | 1,186,194 |
Fair Value Measured at Net Asset Value Per Share | Senior secured bank loan funds | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Fair Value | 12,251 |
Unfunded Commitments | 7,818 |
Fair Value Measured at Net Asset Value Per Share | Hedge funds | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Fair Value | 11,369 |
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, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Premiums written | ||||
Direct | $ 259,712 | $ 177,562 | $ 484,851 | $ 325,254 |
Assumed | 1,834,446 | 1,524,310 | 4,261,749 | 3,402,339 |
Ceded | (581,866) | (521,069) | (1,410,225) | (1,276,982) |
Net premiums written | 1,512,292 | 1,180,803 | 3,336,375 | 2,450,611 |
Premiums earned | ||||
Direct | 188,414 | 138,327 | 350,503 | 272,556 |
Assumed | 1,455,002 | 1,281,357 | 2,871,648 | 2,431,090 |
Ceded | (450,626) | (409,588) | (875,525) | (780,452) |
Net premiums earned | 1,192,790 | 1,010,096 | 2,346,626 | 1,923,194 |
Claims and claim expenses | ||||
Gross claims and claim expenses incurred | 666,106 | 647,226 | 1,916,352 | 1,394,941 |
Claims and claim expenses recovered | (146,085) | (136,954) | (529,280) | (313,715) |
Net claims and claim expenses incurred | $ 520,021 | $ 510,272 | $ 1,387,072 | $ 1,081,226 |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | |
Ceded Credit Risk [Line Items] | |||
Premiums receivable | $ 4,481,492 | $ 2,894,631 | |
Premium receivable, allowance for credit loss | 3,725 | 5,961 | $ 3,782 |
Reinsurance recoverable | 3,200,000 | 2,900,000 | |
Reinsurance recoverable, allowance for credit loss | $ 7,024 | $ 6,334 | $ 6,605 |
Reinsurer Concentration Risk | Reinsurance recoverable | Customer One | |||
Ceded Credit Risk [Line Items] | |||
Concentration risk, percentage | 13.60% | 15.30% | |
Reinsurer Concentration Risk | Reinsurance recoverable | Customer Two | |||
Ceded Credit Risk [Line Items] | |||
Concentration risk, percentage | 10.10% | 10.80% | |
Reinsurer Concentration Risk | Reinsurance recoverable | Customer Three | |||
Ceded Credit Risk [Line Items] | |||
Concentration risk, percentage | 5.70% | 6.70% | |
Customer Concentration Risk | Allowance for reinsurance recoverable | Customer One | |||
Ceded Credit Risk [Line Items] | |||
Concentration risk, percentage | 22.40% | 13.20% | |
Customer Concentration Risk | Allowance for reinsurance recoverable | Customer Two | |||
Ceded Credit Risk [Line Items] | |||
Concentration risk, percentage | 11.90% | 13.00% | |
Customer Concentration Risk | Allowance for reinsurance recoverable | Customer Three | |||
Ceded Credit Risk [Line Items] | |||
Concentration risk, percentage | 9.90% | 6.70% | |
Ceded Credit Risk, Secured | Reinsurer Concentration Risk | Reinsurance recoverable | |||
Ceded Credit Risk [Line Items] | |||
Concentration risk, percentage | 45.00% | 45.20% | |
Ceded Credit Risk, Unsecured | Reinsurer Concentration Risk | Reinsurance recoverable | Standard & Poor's, A- Rating | |||
Ceded Credit Risk [Line Items] | |||
Concentration risk, percentage | 53.80% | 53.40% | |
Ceded Credit Risk, Unsecured | Reinsurer Concentration Risk | Reinsurance recoverable | Standard & Poor's, BBB Rating | |||
Ceded Credit Risk [Line Items] | |||
Concentration risk, percentage | 1.20% | 1.40% |
Reinsurance (Schedule of Activi
Reinsurance (Schedule of Activity in the Allowance Recorded Against Premium Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Premium Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 3,782 | $ 5,961 |
Provision for allowance | (57) | (2,236) |
Ending balance | $ 3,725 | $ 3,725 |
Reinsurance (Schedule of Acti_2
Reinsurance (Schedule of Activity in the Allowance Recorded Against Reinsurance Recoverables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 6,605 | $ 6,334 |
Provision for allowance | 419 | 690 |
Ending balance | $ 7,024 | $ 7,024 |
Reserve for Claims and Claim _3
Reserve for Claims and Claim Expenses (Claims and Claim Expense Reserves by Segment) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Case Reserves | $ 3,110,805 | $ 2,779,059 | |
Additional Case Reserves | 1,646,590 | 1,750,846 | |
IBNR | 6,187,347 | 5,851,233 | |
Gross reserve for claims and claim expenses | 10,944,742 | 10,381,138 | $ 9,365,469 |
Property | Operating Segments | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Case Reserves | 1,383,754 | 1,127,909 | |
Additional Case Reserves | 1,513,549 | 1,617,003 | |
IBNR | 1,773,492 | 1,627,541 | |
Gross reserve for claims and claim expenses | 4,670,795 | 4,372,453 | |
Casualty and Specialty | Operating Segments | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Case Reserves | 1,727,051 | 1,651,150 | |
Additional Case Reserves | 133,041 | 133,843 | |
IBNR | 4,413,855 | 4,223,692 | |
Gross reserve for claims and claim expenses | $ 6,273,947 | $ 6,008,685 |
Reserve for Claims and Claim _4
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, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||
Reserve for claims and claim expenses, net of reinsurance recoverable, as of beginning of period | $ 7,455,128 | $ 6,593,052 | |||
Net incurred related to: | |||||
Current year | $ 572,050 | $ 525,678 | 1,448,133 | 1,082,732 | |
Prior years | (52,029) | (15,406) | (61,061) | (1,506) | |
Total net incurred | 520,021 | 510,272 | 1,387,072 | 1,081,226 | |
Net paid related to: | |||||
Current year | 65,278 | 61,625 | |||
Prior years | 995,826 | 1,007,916 | |||
Total net paid | 1,061,104 | 1,069,541 | |||
Foreign exchange | (23,992) | (13,626) | |||
Reserve for claims and claim expenses, net of reinsurance recoverable, as of end of period | 7,757,104 | 6,591,111 | 7,757,104 | 6,591,111 | |
Reinsurance recoverable | 3,187,638 | 2,774,358 | 3,187,638 | 2,774,358 | $ 2,926,010 |
Reserve for claims and claim expenses as of end of period | $ 10,944,742 | $ 9,365,469 | $ 10,944,742 | $ 9,365,469 |
Reserve for Claims and Claim _5
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, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | $ (52,029) | $ (15,406) | $ (61,061) | $ (1,506) |
Property | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (56,145) | 7,293 | ||
Property | Actuarial methods - actual reported claims less than expected claims | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | 43,400 | |||
Property | Large and Small Catastrophe Events and Attritional Loss Movements | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (56,145) | |||
Property | Large catastrophe events | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (31,103) | (29,067) | ||
Property | 2020 Large Loss Events | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | 16,932 | |||
Property | 2019 Large Loss Events | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (1,424) | (19,940) | ||
Property | 2018 Large Loss Events | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (37,910) | (12,306) | ||
Property | 2017 Large Loss Events | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (5,708) | (3,825) | ||
Property | Other | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (2,993) | 7,004 | ||
Property | Small catastrophe events and attritional loss movements | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (25,042) | 36,360 | ||
Property | Other small catastrophe events and attritional loss movements | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (25,042) | 36,360 | ||
Property | Operating Segments | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (50,983) | (6,608) | (56,145) | 7,293 |
Casualty and Specialty | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (4,916) | (8,799) | ||
Casualty and Specialty | Actuarial methods - actual reported claims less than expected claims | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (4,916) | (8,799) | ||
Casualty and Specialty | Operating Segments | ||||
Liability for Catastrophe Claims [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | $ (1,046) | $ (8,798) | $ (4,916) | $ (8,799) |
Debt and Credit Facilities (Sum
Debt and Credit Facilities (Summary of Debt Obligations) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,200,000 | $ 1,300,000 |
Fair Value | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,245,165 | 1,261,069 |
Carrying Value | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,137,304 | 1,136,265 |
3.600% Senior Notes due 2029 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.60% | |
3.450% Senior Notes due 2027 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.45% | |
3.700% Senior Notes due 2025 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.70% | |
4.750% Senior Notes due 2025 (DaVinciRe) | DaVinciRe Holdings Ltd. | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.75% | |
Senior Notes | 3.600% Senior Notes due 2029 | RenaissanceRe Finance, Inc. | Fair Value | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 441,516 | 453,932 |
Senior Notes | 3.600% Senior Notes due 2029 | RenaissanceRe Finance, Inc. | Carrying Value | ||
Debt Instrument [Line Items] | ||
Long-term debt | 392,846 | 392,391 |
Senior Notes | 3.450% Senior Notes due 2027 | RenaissanceRe Finance, Inc. | Fair Value | ||
Debt Instrument [Line Items] | ||
Long-term debt | 328,047 | 329,661 |
Senior Notes | 3.450% Senior Notes due 2027 | RenaissanceRe Finance, Inc. | Carrying Value | ||
Debt Instrument [Line Items] | ||
Long-term debt | 297,033 | 296,787 |
Senior Notes | 3.700% Senior Notes due 2025 | RenaissanceRe Finance, Inc. | Fair Value | ||
Debt Instrument [Line Items] | ||
Long-term debt | 310,776 | 315,273 |
Senior Notes | 3.700% Senior Notes due 2025 | RenaissanceRe Finance, Inc. | Carrying Value | ||
Debt Instrument [Line Items] | ||
Long-term debt | 298,612 | 298,428 |
Senior Notes | 4.750% Senior Notes due 2025 (DaVinciRe) | DaVinciRe Holdings Ltd. | Fair Value | ||
Debt Instrument [Line Items] | ||
Long-term debt | 164,826 | 162,203 |
Senior Notes | 4.750% Senior Notes due 2025 (DaVinciRe) | DaVinciRe Holdings Ltd. | Carrying Value | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 148,813 | $ 148,659 |
Debt and Credit Facilities (Sch
Debt and Credit Facilities (Schedule of Credit Facilities) (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Line of Credit Facility [Line Items] | |
Credit facilities outstanding | $ 990,914 |
RenaissanceRe Revolving Credit Facility | Line of Credit | |
Line of Credit Facility [Line Items] | |
Credit facilities outstanding | 0 |
Letter of Credit | Funds at Lloyd’s Letter of Credit Facility | Line of Credit | |
Line of Credit Facility [Line Items] | |
Credit facilities outstanding | 225,000 |
Letter of Credit | Secured Bilateral Facility | Line of Credit | |
Line of Credit Facility [Line Items] | |
Credit facilities outstanding | 386,571 |
Letter of Credit | Unsecured Bilateral Facility | Line of Credit | |
Line of Credit Facility [Line Items] | |
Credit facilities outstanding | $ 379,343 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Redeemable Noncontrolling Interest [Line Items] | |||||||||
Redeemable noncontrolling interests | $ 3,656,419 | $ 3,656,419 | $ 3,388,319 | ||||||
Net income attributable to redeemable noncontrolling interests | $ 113,544 | $ 118,728 | 66,694 | $ 216,819 | |||||
DaVinci Reinsurance Ltd. | |||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||
Sale of shares to redeemable noncontrolling interests | 40,000 | ||||||||
Aggregate sale of shares | $ 10,000 | ||||||||
Third-Party Investors | |||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||
Redemption of shares from redeemable noncontrolling interest | $ 156,700 | ||||||||
DaVinci Reinsurance Ltd. | |||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||
Parent company ownership in redeemable noncontrolling interest | 21.40% | 28.70% | 28.70% | 21.40% | |||||
Medici | |||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||
Parent company ownership in redeemable noncontrolling interest | 13.40% | 11.40% | 13.40% | 11.40% | |||||
DaVinciRe Holdings Ltd. | |||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||
Redeemable noncontrolling interests | $ 1,642,656 | $ 1,621,300 | $ 1,642,656 | $ 1,621,300 | $ 1,555,714 | $ 1,560,693 | $ 1,533,085 | $ 1,435,581 | |
Net income attributable to redeemable noncontrolling interests | 84,266 | 88,374 | 44,332 | 173,280 | |||||
Sale of shares to redeemable noncontrolling interests | 250,000 | ||||||||
Redemption of shares from redeemable noncontrolling interest | $ (2,676) | 159 | 153,295 | (2,448) | |||||
DaVinciRe Holdings Ltd. | Third-Party Investors | |||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||
Sale of shares to redeemable noncontrolling interests | 150,900 | ||||||||
DaVinciRe Holdings Ltd. | RenaissanceRe Holdings Ltd. | |||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||
Sale of shares to redeemable noncontrolling interests | $ 99,100 | ||||||||
DaVinciRe Holdings Ltd. | Maximum | |||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||
Share repurchase requests, limit | 25.00% | 25.00% | |||||||
Medici | |||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||
Redeemable noncontrolling interests | $ 880,320 | 682,118 | $ 880,320 | 682,118 | 737,702 | 717,999 | 677,283 | 632,112 | |
Net income attributable to redeemable noncontrolling interests | 11,989 | 13,151 | (1,454) | 8,473 | |||||
Sale of shares to redeemable noncontrolling interests | 130,675 | 36,158 | 171,520 | 90,771 | |||||
Redemption of shares from redeemable noncontrolling interest | $ 46 | 44,474 | $ 7,745 | 49,238 | |||||
Redemption provision, notice period | 30 days | ||||||||
Medici | Vermeer Reinsurance Ltd. | Voting, Non-participating Shares | |||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||
Parent company ownership in redeemable noncontrolling interest | 100.00% | 100.00% | |||||||
Vermeer Reinsurance Ltd. | |||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||
Redeemable noncontrolling interests | $ 1,133,443 | 1,083,681 | $ 1,133,443 | 1,083,681 | $ 1,116,154 | $ 1,109,627 | $ 1,021,478 | $ 1,003,615 | |
Net income attributable to redeemable noncontrolling interests | 17,289 | 17,203 | 23,816 | 35,066 | |||||
Sale of shares to redeemable noncontrolling interests | $ 0 | $ 45,000 | $ 0 | $ 45,000 | |||||
PFZW | Vermeer Reinsurance Ltd. | Participating, Non-voting Common Shares | |||||||||
Redeemable Noncontrolling Interest [Line Items] | |||||||||
Parent company ownership in redeemable noncontrolling interest | 100.00% | 100.00% |
Noncontrolling Interests (Sched
Noncontrolling Interests (Schedule of Redeemable Noncontrolling Interest) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Activity in redeemable noncontrolling interest | ||||
Beginning balance | $ 3,388,319 | |||
Net income (loss) attributable to redeemable noncontrolling interest | $ 113,544 | $ 118,728 | 66,694 | $ 216,819 |
Ending balance | 3,656,419 | 3,656,419 | ||
DaVinciRe Holdings Ltd. | ||||
Activity in redeemable noncontrolling interest | ||||
Beginning balance | 1,555,714 | 1,533,085 | 1,560,693 | 1,435,581 |
Redemption of shares from redeemable noncontrolling interest, net of adjustments | 2,676 | (159) | (153,295) | 2,448 |
Sale of shares to redeemable noncontrolling interests | 250,000 | |||
Net income (loss) attributable to redeemable noncontrolling interest | 84,266 | 88,374 | 44,332 | 173,280 |
Ending balance | 1,642,656 | 1,621,300 | 1,642,656 | 1,621,300 |
DaVinciRe Holdings Ltd. | Third-Party Investors And RenaissanceRe | ||||
Activity in redeemable noncontrolling interest | ||||
Sale of shares to redeemable noncontrolling interests | 0 | 0 | 190,926 | 9,991 |
Medici | ||||
Activity in redeemable noncontrolling interest | ||||
Beginning balance | 737,702 | 677,283 | 717,999 | 632,112 |
Redemption of shares from redeemable noncontrolling interest, net of adjustments | (46) | (44,474) | (7,745) | (49,238) |
Sale of shares to redeemable noncontrolling interests | 130,675 | 36,158 | 171,520 | 90,771 |
Net income (loss) attributable to redeemable noncontrolling interest | 11,989 | 13,151 | (1,454) | 8,473 |
Ending balance | 880,320 | 682,118 | 880,320 | 682,118 |
Vermeer Reinsurance Ltd. | ||||
Activity in redeemable noncontrolling interest | ||||
Beginning balance | 1,116,154 | 1,021,478 | 1,109,627 | 1,003,615 |
Sale of shares to redeemable noncontrolling interests | 0 | 45,000 | 0 | 45,000 |
Net income (loss) attributable to redeemable noncontrolling interest | 17,289 | 17,203 | 23,816 | 35,066 |
Ending balance | $ 1,133,443 | $ 1,083,681 | $ 1,133,443 | $ 1,083,681 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 29, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Jan. 10, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | ||||||||||
Assets | $ 32,726,755 | $ 32,726,755 | $ 30,820,580 | |||||||
Liabilities | 21,852,730 | 21,852,730 | 19,872,013 | |||||||
Redeemable noncontrolling interests | 3,656,419 | 3,656,419 | 3,388,319 | |||||||
Ceded premiums written | 581,866 | $ 521,069 | 1,410,225 | $ 1,276,982 | ||||||
Ceded premiums earned | 450,626 | 409,588 | 875,525 | 780,452 | ||||||
Investments in other ventures, under equity method | 91,938 | 91,938 | 98,373 | |||||||
Upsilon RFO Re Ltd. | Variable Interest Entity, Primary Beneficiary | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Assets | 4,100,000 | 4,100,000 | 3,800,000 | |||||||
Liabilities | 4,100,000 | 4,100,000 | 3,800,000 | |||||||
Net assets | 300,000 | 300,000 | ||||||||
Upsilon RFO Re Ltd. | Third party investor | Variable Interest Entity, Primary Beneficiary | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Payments of capital distribution | 276,000 | 302,000 | ||||||||
Net assets | 2,100,000 | 2,100,000 | ||||||||
Upsilon RFO Re Ltd. | Third party investor | Non-Voting Preference Shares | Variable Interest Entity, Primary Beneficiary | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Contributions to subsidiaries | 544,600 | 802,000 | ||||||||
Upsilon RFO Re Ltd. | RenaissanceRe Holdings Ltd. | Variable Interest Entity, Primary Beneficiary | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Payments of capital distribution | $ 24,900 | $ 61,600 | ||||||||
Variable interest entity, ownership percentage | 12.30% | 13.90% | ||||||||
Upsilon RFO Re Ltd. | RenaissanceRe Holdings Ltd. | Non-Voting Preference Shares | Variable Interest Entity, Primary Beneficiary | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Contributions to subsidiaries | $ 32,300 | $ 95,400 | ||||||||
Vermeer Reinsurance Ltd. | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Redeemable noncontrolling interests | 1,133,443 | $ 1,083,681 | 1,133,443 | 1,083,681 | $ 1,116,154 | 1,109,627 | $ 1,021,478 | $ 1,003,615 | ||
Vermeer Reinsurance Ltd. | Variable Interest Entity, Primary Beneficiary | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Assets | 1,200,000 | 1,200,000 | 1,100,000 | |||||||
Liabilities | 76,100 | 76,100 | 36,700 | |||||||
Redeemable noncontrolling interests | 1,100,000 | 1,100,000 | 1,100,000 | |||||||
Mona Lisa Re | Variable Interest Entity, Not Primary Beneficiary | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Assets | 668,900 | 668,900 | 400,300 | |||||||
Liabilities | 668,900 | 668,900 | 400,300 | |||||||
Face amount | $ 250,000 | $ 400,000 | ||||||||
Mona Lisa Re | Other investments | Variable Interest Entity, Not Primary Beneficiary | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Investment in participating notes | 5,800 | 5,800 | 3,700 | |||||||
Mona Lisa Re | Renaissance Reinsurance Ltd. | Variable Interest Entity, Not Primary Beneficiary | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Ceded premiums written | 25,400 | 24,300 | ||||||||
Ceded premiums earned | 12,600 | 12,100 | ||||||||
Mona Lisa Re | DaVinci Reinsurance Ltd. | Variable Interest Entity, Not Primary Beneficiary | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Ceded premiums written | 6,300 | 6,700 | ||||||||
Ceded premiums earned | 3,100 | $ 3,400 | ||||||||
Langhorne Holdings LLC | Variable Interest Entity, Not Primary Beneficiary | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Investments in other ventures, under equity method | 2,200 | 2,200 | 2,000 | |||||||
Langhorne Partners | Variable Interest Entity, Not Primary Beneficiary | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Investments in other ventures, under equity method | $ 100 | $ 100 | $ 100 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) | Jun. 30, 2021 | Jun. 15, 2021 | Mar. 31, 2021 | Mar. 15, 2021 | Jun. 05, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | May 07, 2021 | Dec. 31, 2020 | Mar. 26, 2020 |
Class of Stock [Line Items] | ||||||||||||
Preference shares, shares outstanding (in shares) | 11,010,000 | 11,010,000 | 11,010,000 | 11,010,000 | ||||||||
Dividends per common share (in dollars per share) | $ 0.36 | $ 0.35 | $ 0.72 | $ 0.70 | ||||||||
Dividends paid per common share (in dollars per share) | $ 0.36 | $ 0.36 | ||||||||||
Dividends declared and paid, preference shares | $ 7,289,000 | $ 7,289,000 | $ 14,578,000 | $ 16,345,000 | ||||||||
Dividends declared and paid, common shares | $ 35,000,000 | $ 33,100,000 | ||||||||||
Common Shares | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Proceeds from issuance | $ 1,100,000,000 | |||||||||||
Dividends per common share (in dollars per share) | $ 0.36 | $ 0.36 | ||||||||||
Share repurchase program, authorized amount | $ 500,000,000 | |||||||||||
Share repurchase program, shares repurchased (in shares) | 3,019,603 | |||||||||||
Repurchase of shares | $ (480,700,000) | |||||||||||
Share repurchase program, price per share (in dollars per share) | $ 159.18 | |||||||||||
Share repurchase program, remaining authorized aggregate amount | $ 300,500,000 | $ 300,500,000 | $ 300,500,000 | |||||||||
Common Shares | Underwritten Follow-On Offering | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Shares issued (in shares) | 6,325,000 | |||||||||||
Price of shares issued (in dollars per share) | $ 166 | |||||||||||
Common Shares | Private Placement | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Shares issued (in shares) | 451,807 | |||||||||||
Proceeds from issuance | $ 75,000,000 | |||||||||||
Series C Preference Shares | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Dividend rate, percentage | 6.08% | |||||||||||
Preference shares redemption value | $ 125,000,000 | |||||||||||
Preference shares, shares outstanding (in shares) | 0 | 0 | 0 | |||||||||
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 | |||||||||
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 | |||||||||
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 |
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, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Numerator: | ||||
Net income available to RenaissanceRe common shareholders | $ 456,818 | $ 575,845 | $ 165,884 | $ 493,871 |
Amount allocated to participating common shareholders | (5,809) | (7,593) | (1,864) | (6,153) |
Net income available to RenaissanceRe common shareholders | $ 451,009 | $ 568,252 | $ 164,020 | $ 487,718 |
Denominator: | ||||
Denominator for basic loss per RenaissanceRe common share - weighted average common shares | 48,163 | 44,939 | 48,871 | 44,190 |
Per common share equivalents of employee stock options and non-vested shares | 63 | 64 | 69 | 63 |
Denominator for diluted loss per RenaissanceRe common share - adjusted weighted average common shares and assumed conversions | 48,226 | 45,003 | 48,940 | 44,253 |
Net income available to RenaissanceRe common shareholders per common share – basic (in dollars per share) | $ 9.36 | $ 12.64 | $ 3.36 | $ 11.04 |
Net income available to RenaissanceRe common shareholders per common share – diluted (in dollars per share) | $ 9.35 | $ 12.63 | $ 3.35 | $ 11.02 |
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, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 2,094,158 | $ 1,701,872 | $ 4,746,600 | $ 3,727,593 |
Net premiums written | 1,512,292 | 1,180,803 | 3,336,375 | 2,450,611 |
Net premiums earned | 1,192,790 | 1,010,096 | 2,346,626 | 1,923,194 |
Net claims and claim expenses incurred | 520,021 | 510,272 | 1,387,072 | 1,081,226 |
Acquisition expenses | 285,590 | 233,610 | 552,824 | 444,214 |
Operational expenses | 58,203 | 49,077 | 113,514 | 116,538 |
Underwriting income | 328,976 | 217,137 | 293,216 | 281,216 |
Net investment income | 80,925 | 89,305 | 160,729 | 188,778 |
Net foreign exchange gains (losses) | 3,234 | (7,195) | (19,554) | (12,923) |
Equity in earnings of other ventures | 8,732 | 9,041 | 3,174 | 13,605 |
Other income (loss) | 586 | (1,201) | 2,757 | (5,637) |
Net realized and unrealized gains (losses) on investments | 191,018 | 448,390 | (154,545) | 337,683 |
Corporate expenses | (10,125) | (11,898) | (20,530) | (27,889) |
Interest expense | (11,833) | (11,842) | (23,745) | (26,769) |
Income before taxes | 591,513 | 731,737 | 241,502 | 748,064 |
Income tax (expense) benefit | (13,862) | (29,875) | 5,654 | (21,029) |
Net income attributable to redeemable noncontrolling interests | (113,544) | (118,728) | (66,694) | (216,819) |
Dividends on preference shares | (7,289) | (7,289) | (14,578) | (16,345) |
Net income available to RenaissanceRe common shareholders | 456,818 | 575,845 | 165,884 | 493,871 |
Net claims and claim expenses incurred – current accident year | 572,050 | 525,678 | 1,448,133 | 1,082,732 |
Net claims and claim expenses incurred – prior accident years | (52,029) | (15,406) | (61,061) | (1,506) |
Total net incurred | $ 520,021 | $ 510,272 | $ 1,387,072 | $ 1,081,226 |
Net claims and claim expense ratio – current accident year | 48.00% | 52.00% | 61.70% | 56.30% |
Net claims and claim expense ratio – prior accident years | (4.40%) | (1.50%) | (2.60%) | (0.10%) |
Net claims and claim expense ratio – calendar year | 43.60% | 50.50% | 59.10% | 56.20% |
Underwriting expense ratio | 28.80% | 28.00% | 28.40% | 29.20% |
Combined ratio | 72.40% | 78.50% | 87.50% | 85.40% |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 0 | $ 0 | $ 0 | $ 0 |
Net premiums written | 0 | 0 | 0 | 0 |
Net premiums earned | 0 | 0 | 0 | 0 |
Net claims and claim expenses incurred | 0 | 0 | 0 | 0 |
Acquisition expenses | 0 | 0 | 0 | 0 |
Operational expenses | 0 | 0 | 0 | 0 |
Underwriting income | 0 | 0 | 0 | 0 |
Net investment income | 80,925 | 89,305 | 160,729 | 188,778 |
Net foreign exchange gains (losses) | 3,234 | (7,195) | (19,554) | (12,923) |
Equity in earnings of other ventures | 8,732 | 9,041 | 3,174 | 13,605 |
Other income (loss) | 586 | (1,201) | 2,757 | (5,637) |
Net realized and unrealized gains (losses) on investments | 191,018 | 448,390 | (154,545) | 337,683 |
Corporate expenses | (10,125) | (11,898) | (20,530) | (27,889) |
Interest expense | (11,833) | (11,842) | (23,745) | (26,769) |
Income tax (expense) benefit | (13,862) | (29,875) | 5,654 | (21,029) |
Net income attributable to redeemable noncontrolling interests | (113,544) | (118,728) | (66,694) | (216,819) |
Dividends on preference shares | (7,289) | (7,289) | (14,578) | (16,345) |
Net claims and claim expenses incurred – current accident year | 0 | 0 | 0 | 0 |
Net claims and claim expenses incurred – prior accident years | 0 | 0 | 0 | 0 |
Total net incurred | 0 | 0 | 0 | 0 |
Property | ||||
Segment Reporting Information [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | (56,145) | 7,293 | ||
Property | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | 1,183,556 | 1,042,536 | 2,800,375 | 2,263,062 |
Net premiums written | 803,335 | 704,138 | 1,811,795 | 1,378,719 |
Net premiums earned | 560,397 | 491,116 | 1,165,563 | 912,451 |
Net claims and claim expenses incurred | 97,150 | 164,006 | 595,982 | 308,751 |
Acquisition expenses | 109,238 | 94,773 | 221,992 | 180,124 |
Operational expenses | 38,887 | 31,655 | 74,262 | 75,662 |
Underwriting income | 315,122 | 200,682 | 273,327 | 347,914 |
Net claims and claim expenses incurred – current accident year | 148,133 | 170,614 | 652,127 | 301,458 |
Net claims and claim expenses incurred – prior accident years | (50,983) | (6,608) | (56,145) | 7,293 |
Total net incurred | $ 97,150 | $ 164,006 | $ 595,982 | $ 308,751 |
Net claims and claim expense ratio – current accident year | 26.40% | 34.70% | 55.90% | 33.00% |
Net claims and claim expense ratio – prior accident years | (9.10%) | (1.30%) | (4.80%) | 0.80% |
Net claims and claim expense ratio – calendar year | 17.30% | 33.40% | 51.10% | 33.80% |
Underwriting expense ratio | 26.50% | 25.70% | 25.40% | 28.10% |
Combined ratio | 43.80% | 59.10% | 76.50% | 61.90% |
Casualty and Specialty | ||||
Segment Reporting Information [Line Items] | ||||
Net claims and claim expenses incurred – prior accident years | $ (4,916) | $ (8,799) | ||
Casualty and Specialty | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 910,602 | $ 659,336 | 1,946,225 | 1,464,531 |
Net premiums written | 708,957 | 476,665 | 1,524,580 | 1,071,892 |
Net premiums earned | 632,393 | 518,980 | 1,181,063 | 1,010,743 |
Net claims and claim expenses incurred | 422,871 | 346,266 | 791,090 | 772,475 |
Acquisition expenses | 176,352 | 138,837 | 330,832 | 264,090 |
Operational expenses | 19,316 | 17,422 | 39,252 | 40,876 |
Underwriting income | 13,854 | 16,455 | 19,889 | (66,698) |
Net claims and claim expenses incurred – current accident year | 423,917 | 355,064 | 796,006 | 781,274 |
Net claims and claim expenses incurred – prior accident years | (1,046) | (8,798) | (4,916) | (8,799) |
Total net incurred | $ 422,871 | $ 346,266 | $ 791,090 | $ 772,475 |
Net claims and claim expense ratio – current accident year | 67.00% | 68.40% | 67.40% | 77.30% |
Net claims and claim expense ratio – prior accident years | (0.10%) | (1.70%) | (0.40%) | (0.90%) |
Net claims and claim expense ratio – calendar year | 66.90% | 66.70% | 67.00% | 76.40% |
Underwriting expense ratio | 30.90% | 30.10% | 31.30% | 30.20% |
Combined ratio | 97.80% | 96.80% | 98.30% | 106.60% |
Derivative Instruments (Consoli
Derivative Instruments (Consolidated Balance Sheets and Fair Value of the Principal Derivative Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Derivative Assets | ||
Gross Amounts of Recognized Assets | $ 10,036 | $ 46,349 |
Gross Amounts Offset in the Balance Sheet | 571 | 1,116 |
Net Amounts of Assets Presented in the Balance Sheet | 9,465 | 45,233 |
Collateral | 0 | 0 |
Net Amount | 9,465 | 45,233 |
Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 17,127 | 23,292 |
Gross Amounts Offset in the Balance Sheet | 1,497 | 932 |
Net Amounts of Liabilities Presented in the Balance Sheet | 15,630 | 22,360 |
Collateral Pledged | 1,281 | 1,620 |
Net Amount | 14,349 | 20,740 |
Not Designated as Hedging Instrument | Other assets | ||
Derivative Assets | ||
Gross Amounts of Recognized Assets | 6,724 | 26,396 |
Gross Amounts Offset in the Balance Sheet | 0 | 1,116 |
Net Amounts of Assets Presented in the Balance Sheet | 6,724 | 25,280 |
Collateral | 0 | 0 |
Net Amount | 6,724 | 25,280 |
Not Designated as Hedging Instrument | Other assets | Interest rate futures | ||
Derivative Assets | ||
Gross Amounts of Recognized Assets | 837 | 1,019 |
Gross Amounts Offset in the Balance Sheet | 0 | 863 |
Net Amounts of Assets Presented in the Balance Sheet | 837 | 156 |
Collateral | 0 | 0 |
Net Amount | 837 | 156 |
Not Designated as Hedging Instrument | Other assets | Interest rate swaps | ||
Derivative Assets | ||
Gross Amounts of Recognized Assets | 21 | 22 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented in the Balance Sheet | 21 | 22 |
Collateral | 0 | 0 |
Net Amount | 21 | 22 |
Not Designated as Hedging Instrument | Other assets | Foreign currency forward contracts, underwriting and non-investment operations | ||
Derivative Assets | ||
Gross Amounts of Recognized Assets | 4,089 | 23,055 |
Gross Amounts Offset in the Balance Sheet | 0 | 184 |
Net Amounts of Assets Presented in the Balance Sheet | 4,089 | 22,871 |
Collateral | 0 | 0 |
Net Amount | 4,089 | 22,871 |
Not Designated as Hedging Instrument | Other assets | Foreign currency forward contracts, investment operations | ||
Derivative Assets | ||
Gross Amounts of Recognized Assets | 1,355 | 2,232 |
Gross Amounts Offset in the Balance Sheet | 0 | 69 |
Net Amounts of Assets Presented in the Balance Sheet | 1,355 | 2,163 |
Collateral | 0 | 0 |
Net Amount | 1,355 | 2,163 |
Not Designated as Hedging Instrument | Other assets | Credit default swaps | ||
Derivative Assets | ||
Gross Amounts of Recognized Assets | 95 | 68 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented in the Balance Sheet | 95 | 68 |
Collateral | 0 | 0 |
Net Amount | 95 | 68 |
Not Designated as Hedging Instrument | Other assets | Total return swaps | ||
Derivative Assets | ||
Gross Amounts of Recognized Assets | 327 | |
Gross Amounts Offset in the Balance Sheet | 0 | |
Net Amounts of Assets Presented in the Balance Sheet | 327 | |
Collateral | 0 | |
Net Amount | 327 | |
Not Designated as Hedging Instrument | Other liabilities | ||
Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 16,762 | 18,140 |
Gross Amounts Offset in the Balance Sheet | 1,497 | 932 |
Net Amounts of Liabilities Presented in the Balance Sheet | 15,265 | 17,208 |
Collateral Pledged | 1,281 | 1,620 |
Net Amount | 13,984 | 15,588 |
Not Designated as Hedging Instrument | Other liabilities | Interest rate futures | ||
Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 1,281 | 1,430 |
Gross Amounts Offset in the Balance Sheet | 0 | 863 |
Net Amounts of Liabilities Presented in the Balance Sheet | 1,281 | 567 |
Collateral Pledged | 1,281 | 567 |
Net Amount | 0 | 0 |
Not Designated as Hedging Instrument | Other liabilities | Foreign currency forward contracts, underwriting and non-investment operations | ||
Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 10,185 | 12,791 |
Gross Amounts Offset in the Balance Sheet | 1,497 | 0 |
Net Amounts of Liabilities Presented in the Balance Sheet | 8,688 | 12,791 |
Collateral Pledged | 0 | 0 |
Net Amount | 8,688 | 12,791 |
Not Designated as Hedging Instrument | Other liabilities | Foreign currency forward contracts, investment operations | ||
Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 5,296 | 3,919 |
Gross Amounts Offset in the Balance Sheet | 0 | 69 |
Net Amounts of Liabilities Presented in the Balance Sheet | 5,296 | 3,850 |
Collateral Pledged | 0 | 1,053 |
Net Amount | 5,296 | 2,797 |
Designated as Hedging Instrument | Other assets | Foreign currency forward contracts, investment operations | ||
Derivative Assets | ||
Gross Amounts of Recognized Assets | 3,312 | 19,953 |
Gross Amounts Offset in the Balance Sheet | 571 | 0 |
Net Amounts of Assets Presented in the Balance Sheet | 2,741 | 19,953 |
Collateral | 0 | 0 |
Net Amount | 2,741 | 19,953 |
Designated as Hedging Instrument | Other liabilities | Foreign currency forward contracts, investment operations | ||
Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 365 | 5,152 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented in the Balance Sheet | 365 | 5,152 |
Collateral Pledged | 0 | 0 |
Net Amount | $ 365 | $ 5,152 |
Derivative Instruments (Gain (L
Derivative Instruments (Gain (Loss) Recognized in the Consolidated Statements of Operations Related to its Derivative Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized on derivatives | $ (8,492) | $ 14,973 | $ (4,422) | $ 65,068 |
Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized on derivatives | (10,929) | 23,667 | (4,770) | 62,918 |
Not Designated as Hedging Instrument | Net realized and unrealized gains (losses) on investments | Interest rate futures | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized on derivatives | (11,295) | 2,557 | 4,212 | 90,563 |
Not Designated as Hedging Instrument | Net realized and unrealized gains (losses) on investments | Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized on derivatives | (78) | 502 | (979) | 2,609 |
Not Designated as Hedging Instrument | Net realized and unrealized gains (losses) on investments | Credit default swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized on derivatives | 1,169 | 1,974 | 1,424 | (2,923) |
Not Designated as Hedging Instrument | Net realized and unrealized gains (losses) on investments | Total return swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized on derivatives | 875 | 14,151 | 875 | (6,986) |
Not Designated as Hedging Instrument | Net realized and unrealized gains (losses) on investments | Equity futures | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized on derivatives | 0 | 5,188 | 0 | (25,710) |
Not Designated as Hedging Instrument | Net foreign exchange gains (losses) | Foreign currency forward contracts, underwriting and non-investment operations | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized on derivatives | 240 | 6,908 | (3,401) | 6,578 |
Not Designated as Hedging Instrument | Net foreign exchange gains (losses) | Foreign currency forward contracts, investment operations | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized on derivatives | (1,840) | (7,613) | (6,901) | (1,213) |
Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized on derivatives | 2,437 | (8,694) | 348 | 2,150 |
Designated as Hedging Instrument | Foreign currency forward contracts, investment operations | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | $ 2,437 | $ (8,694) | $ 348 | $ 2,150 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - Not Designated as Hedging Instrument - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Interest rate futures | Long | ||
Derivative [Line Items] | ||
Notional amount | $ 1,500,000,000 | $ 2,000,000,000 |
Interest rate futures | Short | ||
Derivative [Line Items] | ||
Notional amount | 700,000,000 | 1,000,000,000 |
Interest rate swaps | US Dollars | Receiving a Fixed Rate | ||
Derivative [Line Items] | ||
Notional amount | 39,000,000 | 23,500,000 |
Foreign currency forward contracts, underwriting and non-investment operations | Long | ||
Derivative [Line Items] | ||
Notional amount | 707,600,000 | 661,400,000 |
Foreign currency forward contracts, underwriting and non-investment operations | Short | ||
Derivative [Line Items] | ||
Notional amount | 309,800,000 | 504,200,000 |
Foreign currency forward contracts, investment operations | Long | ||
Derivative [Line Items] | ||
Notional amount | 273,000,000 | 269,500,000 |
Foreign currency forward contracts, investment operations | Short | ||
Derivative [Line Items] | ||
Notional amount | 108,600,000 | 117,500,000 |
Credit default swaps | Long | ||
Derivative [Line Items] | ||
Notional amount | 50,500,000 | 0 |
Credit default swaps | Short | ||
Derivative [Line Items] | ||
Notional amount | 59,100,000 | 96,800,000 |
Total return swaps | Long | ||
Derivative [Line Items] | ||
Notional amount | 50,000,000 | 0 |
Equity futures | ||
Derivative [Line Items] | ||
Notional amount | $ 0 | $ 0 |
Derivative Instruments (Derivat
Derivative Instruments (Derivative Instruments Designated as Hedges of a Net Investment in a Foreign Operation) (Details) - Foreign Exchange Forward - Designated as Hedging Instrument - Net Investment Hedging - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Weighted average of U.S. dollar equivalent of foreign denominated net (liabilities) assets | $ 58,876 | $ 74,451 | $ (48,790) | $ 77,683 |
Derivative gains (losses) | $ 2,437 | $ (8,694) | $ 348 | $ 2,150 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 12, 2021 | Jun. 05, 2020 | Jul. 19, 2021 | Jun. 30, 2021 | Aug. 11, 2021 | Dec. 31, 2020 |
Subsequent Event [Line Items] | ||||||
Preference shares, par value (in dollars per share) | $ 1 | $ 1 | ||||
Preference shares, shares outstanding (in shares) | 11,010,000 | 11,010,000 | ||||
Common Shares | ||||||
Subsequent Event [Line Items] | ||||||
Share repurchase program, shares repurchased (in shares) | 3,019,603 | |||||
Repurchase of shares | $ 480.7 | |||||
Share repurchase program, price per share (in dollars per share) | $ 159.18 | |||||
Proceeds from issuance | $ 1,100 | |||||
Series G Preferred Stock | ||||||
Subsequent Event [Line Items] | ||||||
Dividend rate, percentage | 4.20% | |||||
Series E Preference Shares | ||||||
Subsequent Event [Line Items] | ||||||
Dividend rate, percentage | 5.375% | |||||
Liquidation preference per annum (in dollars per share) | $ 1.34375 | |||||
Series E Preference Shares | Forecast | ||||||
Subsequent Event [Line Items] | ||||||
Preference shares, shares outstanding (in shares) | 0 | |||||
Preference shares redemption value | $ 275 | |||||
Subsequent Event | Common Shares | ||||||
Subsequent Event [Line Items] | ||||||
Share repurchase program, shares repurchased (in shares) | 920,000 | |||||
Repurchase of shares | $ 137.5 | |||||
Share repurchase program, price per share (in dollars per share) | $ 149.57 | |||||
Subsequent Event | Depositary Shares, each representing a 1/1,000th interest in a Series G 4 | ||||||
Subsequent Event [Line Items] | ||||||
Shares issued (in shares) | 20,000,000 | |||||
Liquidation preference per annum (in dollars per share) | $ 25 | |||||
Proceeds from issuance | $ 500 | |||||
Subsequent Event | Series G Preferred Stock | ||||||
Subsequent Event [Line Items] | ||||||
Preference shares, par value (in dollars per share) | $ 1 | |||||
Liquidation preference per annum (in dollars per share) | $ 25,000 | |||||
Subsequent Event | Series E Preference Shares | ||||||
Subsequent Event [Line Items] | ||||||
Preference shares, shares outstanding (in shares) | 11,000,000 |