RNR - Earnings call transcript Q1 2018 | RenaissanceRe Holdings Ltd.

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Operator

Good morning. My name is Kelly and I will be your conference operator today. At this time, I would like to welcome everyone to the RenaissanceRe First Quarter 2018 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator now call will to turn I over the Mr. And Hill. Peter Mr. may Hill your conference. you begin

Peter Hill

market Good Kelly. our results after quarterly XXXX joining thank first financial issued the release. Yesterday, call. Thanks conference and quarter morning you we our closed, all for

accessed can Xnd. The archived available didn’t an call be at on If about of replay Today’s the available numbers audio (XXX)-XXX-XXXX passcode we’ll section you replay by get will June (XXX)-XXX-XXXX one. with is be dialing X:XX is on or copy, provide RenaissanceRe’s The will Time through Xnd. call from midnight to of both Information June and +X-(XXX)-XXX-XXXX. sure you a the website today p.m. There Investor and please need through you me make for will www.renre.com on through Eastern be XXXXXXXX. midnight call

am Before contain actual statements and may we caution discussed. begin, discussion differ those I that today’s forward-looking from may obliged results to materially

the would Additional results are can we Chief us turn Financial Vice today’s discuss factors President filings Qutub, be to Kevin? Bob call direct O'Donnell, Kevin. to I you. and information President which to and SEC RenaissanceRe’s shaping Officer. Executive Kevin and to regarding now Executive in like With found outcomes Officer; the Chief these over

Kevin O'Donnell

we’re then had to to our we platforms, an morning across rather a expanding the the thank quarter over book with culmination performance your desirable of Last facilitated released questions. I’ll that years Good net of speak tools overview We first market three quarter. to grow about take our call. developing and but accomplished new we Bob and partnerships, pleased I’m of night come able go more preparation to well call you our executed preparation, and was strong finally was back and the on not on easy the segments This focusing earnings, an businesses. we report our and to Casualty will gross access Specialty Peter. Property superiors. risk into the I’ll Thanks What for joining creating financial open today’s the materially. our and sharpening and for results quarter, relentlessly

this it aggressively. Our and strategy understood team pursued

reported the per book first growth For quarter, accumulated and of per in X.X%. of book X.X% share value we value growth evidence share intangible plus

the January January level We quarter, average of common the well reported equity X.X% return where also XX.X%. equity higher activity on the return and low and a targeted renewals were strong solid are for into premium by will July we Xst during financials. depth and year at The the annualized renewals and announced heading discuss on and the after strategy. with I events, the greater the updates value you portfolio we renewals June Bob Consistent quarter. Xst confident the the however I’m on first our did April with that following a and both earned had net annualized an development. that catastrophe clear can successful executed we constructed repurchase following driven improved during favorable approach cat key prior over XXXX in shareholder We X we’ve and shares not top to any reported results and renewal generate an operating up quarter long-term.

the into both our and April so to the in past, January discussed first to do business able and we’ve at we priorities As deploy capital renewals.

reality market higher the competition been returns industry know, recognize years. increased volatility. and several lower the you of must for has insurance As earnings experiencing The

our business, At to made by acquiring investment I many operating into RenRe. implementing in these the and diversifying and gross-to-net that we As growing leverage letter conditions my decision to strategic our underwriting, aggressively Lloyds We ago. strategy syndicate. discuss recent market transform Casualty we anticipated fundamentally shareholders, increased Platinum years Re, time,

the Over and corporate shareholder XX% operating written gross equity we expenses while and increasing our years, have only doubled keeping premiums, nearly essentially past five flat.

and efficiency, reducing the quarter, environment. expect In grow while few going although to addition, additional will lower challenging in forward. business, that the line support the we hopefully relative while This increased our prior phase comparable This year to to our us operational due the improve first In at base we the flat a same keeping quarter. expansion. we’re expenses we so should grow our continue top the expansion the of rate We need improved a on over is expense to the I’m on that efficiency. call shareholder financials. going value opportunities first the to quarter the more call, to add, continue in provide to with we’re a at later is the but to the Bob to deliver seeing potentially take look pleased leverage investment versus details significantly turn I’ll operating versus over our shareholder XXXX period. allowed equity in prior I

Bob Qutub

and good everyone. Kevin, Thanks, morning

Kevin pleased duration. market renewals January this in strategy April at and environment a given dynamics. We portfolio based we believe performance is with the widening interest As rate our and and we confident portfolio given remained the noted, dealt the well short current positioned risk our are our investment quarter in

to business to managed, we owned well our other Our well advantage opportunities. balance finally, ability our underwriting and sheet and capitalized, take are to us continue demonstrate And allowing leverage of take managed then financial I’ll overview through performance like activities. expense the results, to capital for At I’d of investment based. quarter. portfolio an and our our segment discuss time, you both this

per income net million million common XX, March $X.XX or common share. the -- share per operating diluted per $XX diluted of XXXX, of and income For $XXX reported $X.XX or common quarter we ended

X.X% our was for annualized operating ROE Our the and ROE XX.X%. quarter was annualized

value income increased our quarter quarter, and Underwriting accumulated per XX%. of increased X.X%. the During $XXX book we share the share book and value a including reported combined X.X% ratio dividends million our by for tangible was per

we and can our I quarterly you on release financial found results, our on issued details supplement, earnings night would our website. to additional last refer be For which and

Let me with shift our the results now followed segment. beginning to segment by Property segment Casualty

up in segment the first our business premiums Property We've $XXX the to million of XXXX, the written meaningful advantage we to were quarter of a raised over and first portion renewed gross opportunities capital of deploy line take us compared XXXX, good to During opportunities. third $XXX Upsilon catastrophe quarter allow capital. party of quarter of million our saw of first in to these

cat combination a number increase expanded in driven was XXXX. of new a premiums and quarter class of and first our -- business This of to quarter, rate compared growth increases relationships. million were written of an result, the the customer As catastrophe $XXX gross in of by a XX%

of partners, comparative conditions, class platforms. which business an Given these our quarter, continued vehicle half grow where the third-party we’re to by on continue for premiums primarily on gross to and million increased over Upsilon market Property execute our XX% joint of XXXX, meaningful to premiums of A of business, allowing Ceded growth. to underwriting meaningfully related net $XXX the the venture, Upsilon the $XXX $XXX were million the written driven of written also us growth that of ceded this in to portion capital written book XXXX. the In gross ceded increase our in X/X premium to XX% over million, our growth through property just segment premiums managed first compared written across accounted our able quarter first quarter of our in to to to the strategy. written gross its were

of first claims year a the ratio compared $XX quarter expenses of underwriting percentage in Property claim segment income accident and million of in XX% net underwriting quarter, XX% $XXX both results in million combined on and segment comparative Our million was development ratio generated impacting combined our of of Property the $XX underwriting favorable a points. income to prior the and of

our time offset reported This of increases some received driven related X between the million Within the the favorable cedes. or included large net of was events the percentage of quarter. partially of million was us split development to of Property cat catastrophe in $XX other passage points percentage other related information $XX claims our this XX by attritional The certain property versus to-date property during XXXX and business favorable development property to class or and from to segment, by reserve net and points. XX%

As communicated anniversary analyze to we a and to plan our and dive information events you cat in large continue the property events receive last perform to within to XXXX XXXX these associated quarter, approaches. as related with deep the segment mid

were our Now the to up XX% quarter Casualty relative our moving first of written XXXX. the in of to quarter premiums first gross XXXX on segment,

premium high the excluding professional line line increase points after single-digit. and general related five casualty in primarily percentage approximately top businesses, to mid the of to was totaling However, adjustments

XX in during and of combined first to in this million during was XX in points segments compared period. $XX largely adverse in was in of in leverage, was decrease of an earned, points decrease on percentage decrease point while point $X growth Casualty reserve XXXX with number combine selective net We the and Casualty quarter. casualty ratio. the continuing premiums that a continue development we’re a decrease casualty the new of XX.X% quarter QX, positively XXXX, of underwriting the percentage disciplined or was loss XXX% ratio to an X recorded of the improvement quarter to ratio the $X expense market a XXXX. expense be of million compared attributable of driven to This the able of pleased mainly X by or ratio and the generated first combined segment segment the ratio percentage million XXXX base. in the deals to underwriting of ratio in existing underwriting claims compared expense a favorable an the income to result compared impacting the the rate $XX increase as execute combined This segments development quarter our The net quarter, first million primarily and Also claims of segment impacted in

pleased continued improved that Speaking flat our we organization. expense to operating across base efficiencies keep have overall of expenses, the we relatively thereby achieving are

quarter have operating adjustments of made corporate those during the and the first we of nature expenses. align XXXX of to addition, expenses our reporting some In better minor with

return quarter result million, investment investments. reported negative In resulting negative we to a X%. XXXX, total first of of total the Turning an annualized of $XX

maturity yields of yield our the million during average investment $XX increases of Our income included X.X% quarter portfolio our quarter investment. million interest higher maturity from We offsetting curve December from $XX investment and upward shift and total yield first of at the This first This investment curve in the less basis realized of net impacting driven recent in was period. a largely by and XXXX, result maturity largely The this fixed is an unrealized XXXX. rate fixed the the from Partially to impact assets maturity benefited of March of XXXX. increase investment our pronounced compares XXXX. was of and losses XX, stemming portfolios. portfolios XX investment short-term impact fixed short-term an points XX, and during interest

overall rate, of interest duration to portfolio conservative last portfolios credit fixed investment of and duration to XX% and investment short-term with and consistent quarter years. is credit investments degree respect maturity allocated X.X liquidity a with with and of maturity The Our our high fixed short-term remains modest risk exposure. with

on moving structured capital April We large the deploy renewals. our we’re catastrophe activities, following XXXX. to and the to risks of January management events Now well against capital

of the and joint expectations balance ventures midyear as Our enter into well renewals capital and sheet capitalized we continued remain deployment.

repurchase result, management reiterate recent common my our XXXX. a far comments not first to of not calls, in And have from capital thus has share changed. the As we any

and underwriting we successfully and management foremost to more put first to capital work hurdles. we decisions capital need pleased return business making And and renewals. capital the look we during January to were and are to our We’re opportunities that risk able deploy April

to for look season, back work to And the the midyear turn as capital opportunities approach during that, leverage relationships would into we our call I renewals. the l to deploy with are we continue and the wind our Florida to will customer with Kevin. like upcoming to customers ready as We business superior

Kevin O'Donnell

quarter the between Casualty our Thanks last portion with the Property grew with comparable gross and substantial I’ll this quarter we the overall comments cat Starting property segment written over of XX% venture. Property, our Property my grew in property year. joint Upsilon XX% define Bob. in segment. segment

Xst, a flexible The raised capital us. year due in to rate strategy and take last we Upsilon to discussed, good to remainder approach Xst we opportunity, the where better execute of of The mix from and we a late capital. at When to grow business. new we’re growth quickly. see at As was of January January order to advantage chose our in growth customers possible able opportunities came with

deployed Upsilon primarily including increases from assessments a to in business. and rate XX% ability and ILS capital This property Medici performance quarter by result leverage also the the of new growth through and capital sources written diverse premiums maximizing market. also great the our grew Our combination Gross over platform. comparable provided the European other was Fibonacci, of our the into and

noted, rate solid we at Xst increases end at the previously of experienced our January albeit expectations. As lower

and I on Rates most while flat programs rates loss XX%. in up X%. was was and last April Japan rates Xst. other XX% with were business, the XX% other XX% non-loss X%, continues on affected As up averaging retro a rates U.S. call major and effective to cat discussed flat to U.S. up the between X% loss were to The both affected property the XX% XX%. important quarter, up between programs an to on up component up cat were focus international of were at Japanese international portfolio. flat market property to On

Although Florida which capital other the for customers peak is The currently the lease. grow seek due signs being region, dominated renewals the by was longstanding as and U.S. pricing our risk in order renewals, to incumbency this increased capital this the Japan Xst outside more were adjusted U.S. ample We to able in cat with one flat. for however desirable regions third-party to team early our In deployed risk. and there are viewed zone the is Florida Unfortunately, is of about and market our important. June U.S. market. deep as book aggressively indicate Japanese busy share renewals continues the supply is relationships with demand was year, Japan

the an to new increases at us in assertively risk able We to part addition, In opportunities that first continues adjusted. Florida. expect anticipate important do likely rate near significant we to lead quarter. Xst, not we January be demand June midyear expect hope reason factors not to grew do single-digit but we some to These to at grow be at rate to the why anywhere us. of market so is in be Florida so do Xst. the This did for see

substantial a claims ago. aftermath now as disasters five Hurricane in role support in to did once our did of our market the said, it in always rapidly plays line last they bottom than much We our we That portfolio Florida significantly customers not will and just be there even with years pay Irma. Consequently, less rate profitability natural the as affect as year changes did. Florida do

events XXXX from the additional information our assess to continue catastrophe We we as customers. received

property than example, As In I other business. see have each before, our unique. event discussed for to is Harvey, risk Hurricane we more losses catastrophic experienced expected in currently

Rico, Puerto just to it’s lower determine this indicative the conditions ground. Irma possible wildfires Similarly, as in Maria, the Hurricane the Maria given developing discussed our haven’t on estimate. materialized consequently losses actual quickly is expected. and lowered the of Bob to expected. commercial emerged As losses. of size as anticipated Hurricane reported impact But due early as and yet continuing expected these haven’t however, It and are its as California the losses have been risk we not too losses on

U.S. very hurricanes are with of We general fortunate in decades to catastrophes experience in have and particular.

proprietary tools We have loss pros our development estimation own and loss curves.

of recent in into losses settling provided the estimating superior loss development claims years our Hurricane importantly, More and Irma. us experience insight

for experience better not situation of the expenses. event with of with relatively reopen events, really high levels with again, California Once the This proprietary by experiencing loss tail insurers models our California potential similar the into of and us that fires surprised Northern adjustment the recognizing we example, provided and impact insight tools is wildfires. were claims a loss estimate. our For a number these large are consequently comfortable or

the by since recently paper months the time subsidiary, underwriting amounts WeatherPredict losses. contributed consistent going of losses High building with XXXX resulted time serve separation very of in fuel event the analyzing into Our to drought conditions the in and then of distinct combustible while conflagration that heavy was advantage most high the conditions land, This at them combined efforts. capital the the nature provide also the to estimating on XXXX rains our historic this XXXX forward. structures at overwhelming fire and wild two Combination extremely conditions fire. quickly historic in wildfires, density resulted wildfires improving interface followed of led These large ability winds in the courses our the customers of wildfires wood a losses. and first insight the same in for to spread and urban compiled while it of white deep

versus premiums number probably overstates we to our gross this segment, Moving however. Casualty the This XX% grew how were believe up actually book much comparable quarter.

As out. somewhere to book premium closer adjustments once X% are backed out, grew Bob pointed the

forward, from growth hard business while business new growth new absent there some looking in we our already create we're improvement the should to this opportunities, but not do Going expect be market. in segment in books, on significant

of segment, year. this a For the our busy Casualty period is

Just July Xst. renews Xst of book March over between XX% and the

favorable renewal, Casualty market reinsurance During the and reinsurance the some adjustments terms exhibited conditions. January in

to bigger question have been casualty. loss can notably be most line as high will discipline. such more expiring In at addition, is programs increase Underlying willingness April modestly in the over less support to insurance whether reinsurance which rates severity continue reduced capacity Xst, rising in excess At exercised relatively and terms. business. of of trends, lines there market The and ahead rates say

continues trends among navigate and customers of on headlines decreasing These current make awareness that We business help our market the business recent direct impact developments order rates overtime. visibility had be in to increased competition. attractive the PMI good them reinsurance divisions environment. We more have despite Mortgage raising assumed. competitive mortgage could to and of low into we loss

However levels, we attached due the risks. and the the to of structures

leader such going this franchise and shared manage order risks Ultimately, most our portfolio components. achieve our our business segment, than recognize reinsurance to within forward. three faster way, classes the and market has improve to product continue to maintain the as expect are and goal our strategy mortgage We to to continue goal to credit the Casualty Across classes. for in this we is of profitable

best-in-class business. strengthening optimize expertise, tools of and our extend First, leadership portfolio to creating

focus an to relationships. in U.S. classes continuing portfolio. And risk. raised as unit, Re Second, solutions and right led customer to us of from most on of The Interventions Fibonacci right This profitable position third, solutions $XX the to portfolio our for at Fibonacci a the notes targeting time. innovative overweight match in actively allows covering the such customers. we managing February the efficient risk the us facilitate bespoke capital right million

is remain our today’s activity, prior In of critical flexible ILS conclusion, it year Our market. ventures of we strong. and a uniqueness structure up unit and customers. our access us value. with meet the Coming needs as our shareholder development. critical in of rated catastrophe The the capital capacity this midyear first maximizing to strategy renewals, and and to provides low is focused execution premiums on of component was to to and implementing Thanks strategy the our growth the continued favorable quarter

against leveraging sources build right always, with has all and short our capital. to Thank superiors Overall, knowing I to will impact and rates will superior portfolio, and our and have platforms the of capital, on benefit long-term. our to it continue interest on we’ll relationships, team over relentlessly optimally investment over but Rising had management questions. construct selection. you by deliver a our customer three look We to that we’ll forward book term less superior of turn focus our portfolios that, risk superior to value XXXX the shareholder our ability strategy

Operator

from from Stanley. Our the of Morgan [Operator Pan Instructions] line comes Kai question first

open. is line Your

Kai Pan

my First, X is June question on the renewals.

is My at account understanding impacted single-digit that renewals. loss be in X Your rate there’ll increases. June more guided Florida

increase it differently? average weighted seems than the like which better see X, but So implied you the be should price January

Kevin O'Donnell

one portfolio portfolio reasons constructing renewal, X/X, be point looking we’re were rate the so have at greatest which change we the one is Florida market view in based will discovery how is take too is X/X. But of Right XXXX, change of risk a price the there of working we at supply have think the about right we compared Florida lot thinking the expectation the day, I We would the looking is now, think opportunity to for leverage we on our Florida which on end at still we've the rate for way them that now, shape saw in at more the place. the in time. that the muted we the out. will constructed of think there on reason we a at what

Kai Pan

premium then growth to And back probably cat. in your quarter first

your years So, to rate At this XXXX. going act was level? I reporting back maybe and cat then if front back declining attractive. years pricing rate don’t time, different which think What feel to that given just you single-digit to back two underwriting increase in single simplistically last were mid the that effectively and they now X, is ago probably Jan to you only because actually on probably have where two digit high rate the been

Kevin O'Donnell

what the and I return at X:X from one basis, think think market on greatest. rate in of a of is but the to where portfolio larger growth level about building portfolio we changes we retro the at it using is our and Upsilon the to look vehicle had perspective, way pricing both So, were net components the gross common within was this

construct within little knowing at about is people different programs to way comments But certainly business different how what look differently. back is it it. So, of that at to is year think and market look what net to about and made basis it’s of a macro layers equates thinking that we kind lines the really I what portfolio the one on

Kai Pan

given to net If will repeat, of like You or were less premium don’t sort so more you disclose losses? have XXXX PMLs, increases. your

Kevin O'Donnell

So, season. of I we When have our what better our the complete think is to renewals get that’s to as likely the closer occur we Florida next and conversation to wind for through, gone a book have portfolio. as we also with the really to construction

like So rather look think we than XXXX. about what XXXX-XXXX,

it’s a Because would and to Florida way coming we too say, early the will have we’re meaningful tell. on I So structuring renewal positioned. new up be working our portfolios still

Operator

And your next of Elyse the Greenspan question from Wells comes Fargo. from line

is open. line Your

Elyse Greenspan

My get that could renewals. the quarter away that first I how you’re cover. on a the Is of you a based see to the of we’re then think I mentioned about some the a bit rates wanted came question, rate? just also or last stronger you And renewal little couple guys bit up more question thinking here. I for I the what had case midyear color your you renewals. call, still multiyear market questions mean guess won’t On and midyear you midyear from that still that lead be Is there? potentially little to second guess just my is had

actually the Given since well at if year renewals? come the expectations. of that X/X be of back surprised, down rates as midyear capital Would short amount last as the you that fell fact were

Kevin O'Donnell

here. of So, couple questions

through start me them. of and kind with move Let cover the I’m multiyear then

of spread, kind covers multiyear each the are and there deals three-year year. they staggered often are So

mute how like to from have just and not It’s to move be for ’XX reduction, lot going my our is ’XX a that is renewing renewals. it’s not July level think, will rate look amount not I will Florida a ’XX profitability. market is would have With rate ’XX there to to the in within seeking which the achievable. change multiyear look renew. to there how or might it’s perspective June I layers the adjusted changes, kind of much deployed ultimately a that a not. do capacity of But and main price, in might of to is going but as comments think demand, and kind risk With price be Florida having lot level I’ve I increase meaningful say thesis definitely will the like renewals, outstrip what be we’ll my regard or our and of the for elements be highlighted deals that’s

Elyse Greenspan

terms capital of a capital conserved following of losses take then -- guys stronger X/X. the And advantage in you to

As we weaker the think Xst. January than potentially being about midyear renewals

position one level you sitting How about into lower fall next At now. does and equation and M&A? that point, the do even at short You think know you guys capital midyear depending rates are the January? loss its to strong go on more maybe then to a continue upon

Kevin O'Donnell

Sure.

not clear one be think what I to we expectations. expected. our is in thing the are rates lower Rates below the end of

your So, below expectations the of more were that probably we think market range had, they within are but they expected. what the I that comments

that our well. there more of this precise strategy inorganic able and in we'll year. to there absolutely capital that. to Florida we first do ability where deploy will is performance portfolios net returns. spot continues And so, as We become to want pleased and a into portfolios, we make perspective how our absolutely far market to as or we forms great that objective organically, each I an capital the further feel regard we’re think are capital we’re our and regard opportunities take is I into to great we we'll those our if the a at With structuring do if us opportunities finish M&A, in season. a more viable, combination unique the our getting year, deploy a position unless we good with were to to to whether renewals this from And as as wind we’re to think like financial to access have data pull think I capital risk in were that With for look at going years capital, over many build so

Operator

question next from your from Kumar Amit Buckingham the comes Research line And of Group.

Your open. line is

Amit Kumar

that the you Were to reinsurance questions, bit to business. that were that more? you not Few just based clear on pricing And on the first question extend? suggest what to back wasn't do the position, impact comments decline to you still market suggest. you I to trying the gaining your on made a Maybe goes mortgage trying expand

Kevin O'Donnell

Sure.

are than down that rates seeing. quarter than and time that, mean, think FICO really was the So, layering We caps there portfolio looking rate within that making at mortgage score that But of we’re those DDI, and originated structuring to and seeing or of we’re there metric. LTV, financial good getting something we've not. had pressure of that expected of we’re we it’s our the price first is is no in for in cyclical profile was a like it the obviously we’re that that The is being adequacy in think between earned a factors these XXXX we what other I rates and risk. access we’ve spending book, different which premium we but much on could the XXXX, and pricing still market, risk more observed XXXX, rate sure is metrics. sort that written, that the the we reflected of importantly large insurance move mortgage lot now and any business be against think, we’re good in that making start mortgage sure normal it although

Amit Kumar

Or of was I how Is had view guess in opportunistic during as Catalina I market the more capital. question versus you should that investments? that there schools other further is I investment how guess you’ve consolidation? The Obviously, old to previous the the on we an would back made view and Langhorne. going discussion

Kevin O'Donnell

our reinsurance I a us opportunities Langhorne an ventures Catalina we for don’t in acquisition also there to there and them book have what is different than we’ve live Catalina, partner see with historically done is book. With to anything with is conjunction where in right runoff programs or group. of

So, over that many we partnering of them approach again with partnership partner ability it to sort find something Re, and unique the Life of to we that company. is the with into people our a be done and build against little bit might structures. different a Langhorne, capital with it for runoff lots years, leader being years

done that is we’ve that again years. think I many something for

the at way happened come in capital. shift we’re same the any is together It's to there those deploying see wouldn’t just I time. two So, opportunities

but have a looked may it’s it more process a us. for normal like So shift,

Amit Kumar

the final just And question.

your I such as figure I numbers or from versus pockets marketplace pricing Going pricing et just should growth any the this trying everyone growth. discussion, other Upsilon is Or fair Is the that of you we do versus different favorably more position guess on discussion? guess profile to And that competitors? retro or here they is back traditional someone say to as hence question out to because other the Kai market benefit else reinsurance. cetera, and the to vehicle it take view

Kevin O'Donnell

forecast I in be. I Yes, we And to forma as to pro we to that to that the data then building ways. think the working tuning going adding writing think constantly have ability buying mentioned, use we into portfolios are we’re more where unique several market and is our One those. the precision and on is we’re

to, us we for capital think capital and this third-party our net something to, is and typical opportunity we goes to have what deploy good risk unique. then the objectives goes to replicate. for were to is the the then And to excess where is ability out figure capital structure the that the return need And what capital. that what that the tools think experience how to ability portfolios I

leveraging unique like, this I to industry leading build cat what think feel portfolios in a we’re that. I position and into at X/X is, said you So are

Operator

the And of comes UBS. your next of from line Meredith question Brian

open. is line Your

Brian Meredith

questions here. quick of Couple

business. know growing here First corporate forward? that base going noticed about a about should kind that you've think factoring in talked about I bit one, we the expenses How the in X% I your little quarter G&A year-over-year. investing expense And here of

Kevin O'Donnell

we that operating Brian, out I’ve to a expenses. comments leverage the continue of in my the is, pointed of couple things on focus platform to keeping and growth try

to We invest the forward. we have but that we generally as the in that’s some leverage a forward we the percentage, continue the out but did how going of leverage platform. going it's it expect maintaining But and balance seen in have through profitability see We that’s some to a reductions lot between have there. overwrite,

Brian Meredith

So the on was that number? down X%, there unusual anything

Kevin O'Donnell

up some you’ll leveraging can managing corporate see segments. and And platforms you the what over costs But between that we just were growth I we went And core in a the a the see reevaluation revaluation down the versus in growth bit. X%, bring on in focus The goes did corporate like continue year Down to it. down as little an did some. the just which have overwrite site that operating of the operational increase did we the continue slightly it do to side, or course balancing of growth. said that

Brian Meredith

talked at your in what’s general up And on Should your portfolio marketplace? kind short-term on I yield income mean, looking the in deals have move that fixed see your I given happened saw I of of thought, question, then the investment portfolio. kind with would investments next of we kind just book nicely.

Kevin O'Donnell

said of the in movement term the there. see comments, out shorter that's in Brian. been we short The obviously, I right curve As go that’s up, the end did more

up to continue what saying. We with been expect to rates the go shorter term fed has

with years, be move duration the able to X.X With to of expect that overtime. we

feel we a been So, in position, reflected. it’s we’re good

the go yield. X.X%, up is money seen which You’ve new the slightly yield

as the on that. portfolio, So, we a duration of see to continues our fed some given end should advances shorter the rate

Operator

Shields from And comes line your KBW. from of the next question Meyer

is Your line open.

Meyer Shields

about return Kevin, back the much aggregate pressure I to are than seeing they how to can anticipating catastrophe to worse feels where how Property access we’re Hi, years, you’re your of now? that compared five like -- from comments if Longer-term, want get sort capacity. sorry.

Kevin O’Donnell

comments about I to Florida. with So, think my regard talking you’re

likely So, recognized where look and is that deploy believe and be most I’ll at of our We in going market. premium put we party perspective, third you in when capital obviously about the to risk of our looking in is Florida is Florida land X% now. to

does portfolio party where the Atlanta us strong we’re domestic a our water as have capital ability I third way our Florida, the a appetite on from construct to So, diversified from building in portfolio but Hurricane exercise still risk, think peak a is bit it to market.

Meyer Shields

Okay. And catastrophe expect second capital alternative in question not again taking and a line? few year preferring non outlook, we what catastrophe of terms should

Kevin O’Donnell

to third and to have entered that ago, will more front try ways capital the long-term party There party have can is I hedge the on security closer of argue think come I move the Casualty And get conversion found capital But of that this risk. would sense of type the nature to all thought us in, substantial would we business insurance stuff third down model. this with developed. the there party to seen with are think lines come years and our looked business concerns and is capital across of into lines. us to where horizontally capital drill XX approach third fewer different one that Casualty other I other lines. pure we’ve come vehicles at be have to to it is, is do there for optical for take those that to think longer for structures but into other opportunities associated

Operator

of question next comes Pan Stanley. Your the Kai from from Morgan line

is line Your open.

Kai Pan

above but I Thank you XXX%. XX points year-over-year, ratio, for The a the combined ratio business. Specialty still improved and the on follow it's the combined have up. question Casualty underlying

business get for I So, how long as to probability and now will just take desired business it what’s there? for your that matures level wonder that

Kevin O'Donnell

are that up greenfields mentioned, we of seeing the there more moving hazardous believe casualty some We're I the in rates market. within particularly classes. As that

to I the is stay trends. to ahead think whether some it’s at a of underlying as question

for the period. some as I think for I a rate year we return book over what XX over of where book does that need now, are XX think sustainable enhancement of years and

built the risk market better think to have there. into the constructed we it's access restructure can book, great to way ceded, I where some over -- leverage we’ve a poised and years, we the the we

But that be book see So, where to going knowing to say have adequacy is in greater for to wouldn’t pressure we’re is rate want that degree overtime. I to the business, you're today of some rate what through it’s I would move times to manage average. seeing there what that, going to a XX-year back

Operator

to And back closing turn remarks. this there questions the Mr. at no for time. call over I'll further O'Donnell are

Kevin O'Donnell

Thanks today’s you we Thank to call in for again. couple time. our all participating months look forward call. And a in

Operator

concludes today’s conference call. this And

You may now disconnect.

RenaissanceRe (RNR) 2 May 182018 Q1 Earnings call transcript