Earnings call transcript Q1 2023

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Operator

Good morning. My name is Gretchen, and I will be your conference operator today. At this time, I would like to welcome everyone to the RenaissanceRe First Quarter 2023 Earnings Conference Call and Webcast. [Operator Instructions]

I will now turn the call over to Keith McCue, Senior Vice President of Finance and Investor Relations. ahead. go Please

Keith McCue

Good XXXX Gretchen. welcome RenaissanceRe's to Thank conference morning, call. quarter earnings first you, and

Joining to Qutub, and Chief and me O'Donnell, Financial Executive Kevin today Chief Officer; discuss our and Bob Officer. Executive President are Vice results President

matters. First, some housekeeping

include from Our materially important to may expectations shared today. statements. note discussion forward-looking It's actual that today results will the differ

Additional in and filings earnings release. our information in regarding the factors shaping these SEC outcomes can be found our

information to we and call, non-GAAP also non-GAAP GAAP found metrics be will other are financial available release Reconciliations today's During on at financial in and our present concerning which earnings may measures website measures. our renre.com. supplement,

And now over call the to I would turn to Kevin. like

Kevin O'Donnell

you joining and Thanks, Keith. everyone, Good today's for morning, thank call.

common the XX%. start of a strategy last result night, unrelenting a great consistent and is year year. drivers equity the differentiated of of our strong an we This on Last reported finish to This of three and profit. an annualized focus each follows equally operating is to on optimizing an performance average and return

diminished macroeconomic for forward, is strong performance. our constrained to reinsurance now be to advantages, reinsurance should industry due a Going tailwind The enjoys supply a volatility. several environment the including: appetite

third-party for This has years. also It is true for been true for capital several increasingly investors. equity

result, time, demand is reinsurance we a significant reinsurance same the influx to a have As see into increasing. yet At of traditional markets. capital

order losses. rates. supply-demand climate the returns. as of capital risk to in of is elevated Insurance of losses companies At change well risk-taking, efficient step reinsurance have their property reinsurance are fundamental, amplifying capital as the to insurance increases. frequently as competitive Consequently, reinsurance over seeking most in efficient. advantage change diminishes, an a stabilize strategies for cat in resulted and inflation concerns volatility its is their Persistent reduce supply imbalance This also most their form the

reasonably be believe and not will step We this dynamics change persistent. underlying see reverting these consequently do

Finally, and insurers tightened. the Reinsurers can diminishing market such have terms in reinsurance ways In experiencing terms cannot. non-property the use manage lines, to is cycle rates. D&O, primary conditions some and conditions market as

make As attractive of their reductions These and lower to helps with underlying underlying lines advantages reinsurance these to This taken can we keep relative reinsurance are cycle. I'd reinsurers, products. ceding offset foreseeable and together, price significant commissions. use insurance discussion of now to line a attractive manage the more relatively insurance growth than for future. the to like it how top move we to

to lines January reduced opportunities. one same At lines. we choosing where portfolio property-guided in our D&O market saw renewal, the the we specialty and other an property time, grow optimized best on improving we in the At

net a was there the movement written were the end premiums under So surface in lot of the up.

at magnitude cat of the positive at substantial business segments will and Bob seen taking is in to we E&S experiencing greater a one renewal the Property similar increases rate Other through growth is you walk each very detail additional June outcome X, of a phase. the property, high attractive far, those level. in what Property U.S. been for numbers And so a given which includes has from of cat. have amount likely. April

capital. paid for right cat now, exposure saw of business, that in risk because from are risk deploy this Property more is we we our our Despite where away did unit quarter, higher more We room as here, creating Property our per business. within are this this, pivoted choosing cat tolerances to we you getting and returning

discussed, I improved now our focus terms us off. the for discipline. example this keep of down underlying This achieve lines. are good of class traditional premiums leaned returns leveling helps net by mostly our business written our into attractive recent that, during an that For driven rates Casualty We underwriting and decreasing a and is the This softening. a rate despite D&O reduction as business business, excellent time were in this conditions

We managing this business think cycles is about the aspect Casualty proactively premiums long-tail in navigating business. of critical a its roughly due XX-year to nature,

XXXX in casualty this were to where XXXX XXXX, a cycle saw saw Alternatively, we the to into You period notoriously market a robustly management we from when Casualty. exposure very soft in XXXX to you underweight attractive grew market.

we year, is business, write from opportunity to the of other grew Last fairly that Specialty and robustly class specialty. mortgage seasoned had we Finally, years business which prior as credit includes had book the favorably. there an

business forward. reducing mortgage the Given the are that going potential year, we on write this risk for our we recession a

we Other and growth Specialty soften. our markets when our by ability to line manage lens. cycle cyber pleased view marine reinsurance markets I'm important demonstrates story, effectively Property It's and It as aggregate, In the this hard and appropriate into growth through we leading an reducing emphasis quarter. cat, grew as a robustly with different in almost as energy. such and is grew business this mostly to

Growth unmitigated for is sake growth an good. not

being to strong comments. us And concludes delivering the We my should thoughtful construction into portfolio that well continue and position profitability are demonstrating discipline. our this opening believe underwriting about That I future.

financial more but segment will performance the for provide on of detail performance our at call, first, Bob I focus on the will end the our quarter.

Bob Qutub

good morning, everyone. and Kevin, Thanks,

by the reporting $XXX million, driven year we net operating As of very with quarter, started a income of strong million. income $XXX Kevin discussed,

on a XX% relatively industry a catastrophe of in quarter second achieved common also row, backstop XX%, especially we of the against activity, reported combined ratio we U.S. in an high annualized For average equity the of the operating return

profit: three them increased our results with meaningfully each to previously momentum of we our drivers we in Investments, the quarter. have As contributing discussed with and seen of Underwriting, Fees you, behind

are to results a more in detail our takeaways I'd here few a I'll but moment, in discuss like key that highlight.

ratio strong mid-XXs Specialty and feel First, to of continued XXXX. continue with combined in about XX%. this combined Casualty and of positioning expect We great a its the performance business a ratio

Property catastrophe of The had reinstatement business XX% also XX% our for strong first particularly a or of XX% in a performed ratio in net combined cats, of premiums well, quarter growth ratio XX%. combined without written quarter a segment Second, class an Property with and achieving premiums. average of above

our we been into market. Third, strong risk capital capital with grow attractive to partners this business have match more to effectively employing

Fees income overall investment up from $XX and the for contribute was XXXX QX million. of $XX to consistent to significant up $XXX we in comparable printed million with a is continue XXXX. income net line from fee increase And the million, bottom retained income from the XX% XX% is our QX quarter. finally, quarter This

in result per increase was a of shareholder plus As in equity these the earnings, in accumulated share dividends The to we change added book $XXX value XX.X%. quarter. million common strong tangible

enter market important that will As the this we renewal we believe period, midyear very persist. attractive

continued strong are momentum a all We of in profits. opportunities and across of to advantage take anticipate three drivers capital position

moving quarter Now first our our and first results driver to profit of underwriting.

year. As was X%, a from I point last were ratio up net is while down total percentage which XX%, nine premiums premiums mentioned, improvement our X%. Gross written combined were written

mentioned a on net we've in the without bit we view is as written calls, growth to net both appropriate think higher. premiums the premium is lens previous And and reinstatement premiums, portfolio

longer to management, earlier time. on Kevin's on of over cycle Following it period consider is important a growth comments

than lines end across XXXX. more Over doubled the the the we growth segments. of have This provided $X.X billion access both three has years, with scale at written net attractive last to us premiums to

our to generate ability our businesses think we best an example This to capital of and excellent the manage is the cycle returns. that the quarter allocate will

Now Property moving segment. our on to

quarter, discussed seeing we we our the As focusing you opportunities. are last where we on best been growth with have Property catastrophe

results. our in out playing this see can You

premiums premium net for overall without reinstatement segment up written net While catastrophe XX%, were the up were Property XX%. premiums written Property

on XXXX. premiums supplement, see with were As reduction Other cat declined property exposed compared net XX you written business. reminder, down a catastrophe the XX%, QX of premiums page of financial reinstatement that to million $XX.X much by the can in Property

Property this the modestly Going and to second forward, quarter. expect other we premiums will net continue decline trend into earned expect

The of Property earthquake, quarter an impact loss on negative included Cats tornadoes Turkish results. XX%, a ratio consolidated million of of U.S. accident and Gabriel, XX%. net Auckland for ratio overall reported the cyclone a tropical segment $XX the with year had overall current floods our combined

even around current This by from net period Property XX for reported were these percentage our business events, same down XX% though last is cat ratio, loss points impact with is QX accident of from year, year a XX% QX Even up class industry the XX%. down catastrophe negative XXXX. losses over which

reflects to conditions. underwriting we and increased tightened This took actions rate, retentions terms increased and

some The other by attritional points Property mix. was business six impacted in of combined changes losses, ratio percentage large and losses of several XX%

forward, we in loss anticipate Going ratio the be low will XXs. the attritional

also catastrophe in XXXX there points quarter, was the by class large releases the in segment primarily events In development Property of Property favorable the percentage business. on of XXXX through driven cat XX

portfolio. Specialty and Casualty Moving now to our

quarter. Our of XX% some and decrease premiums the in we premium year, liability, strong this ratio we a in combined track D&O. a our record specifically in continued reflecting Gross and have that come return and Specialty significant not then, were off in line. Since Last meet written Casualty of deals professional net we reported developments did captured both down, for hurdles.

segment Net was risk-adjusted premiums an the This offset were and by $XXX up partially been where very for have million, decrease earned XX%. returns attractive. increase risk specialty

in of credit we premiums percentage and hover about There For earned minus. specialty and classes segment plus and quarterly or to $X the the Casualty of expect Casualty points net XXXX, business. around remainder was billion, Specialty to two related Specialty development the of favorable

reached million fee Moving by where driven increases income now in fees. and and our both partners businesses fee $XX to performance capital income management

our $XX a the XX% in continue were As joint income quarter, from grow million source ventures, provide to fees 'XX. of QX we and management steady up

Performance quarter fees earn similar cat we continue from quarter the forward, of the These of per were have XXXX. prior events and to fees up management to years absent $X tick fees of started of quarter. in a the million XXXX. fees deficit Large to we performance expect Going second this Losses, level expect out through

shared was Partners And the partners and mark-to-market million raised $XXX third-party we operating income of primarily income Capital net with in first $XXX capital $XXX of in was million amount and interests. this the of reflected noncontrolling quarter, joint in the Medici. team million Overall, as our redeemable ventures DaVinci our our gains. finally, in remainder

steady additional source which has now to capital provide surpassed end we quarter, of in income management continue an Medici, going million will a capital billion raised $X.X forward. the This April. fee in After $XXX the in of

Now moving $XXX Compared continues quarter. net income points X.X to income with contributor percentage year million where up a income to X.X%. a strong ago, to to net is investment to investment our investments to results retained return investment increasing be this net the

still moderate. investment expect momentum is we there growth, behind growth to net While

X.X% maturity quarter. of Our relatively retained yield is from last to flat

be retained second we quarter. rate income expect in million investment Subject net the movements, to interest to about $XXX

bond with to fixed to retained along This increased about $X.XX par unrealized $XXX in million quarter, accretion losses rates in Retained now declines returns $XXX of are share. investments per interest and equity million. mark-to-market gains led or our maturity

continue to to over this par to expect We time. accrete

to And the expenses, over investments reflects finally, increase in where to operating the in in turning operating years. flat. growth in business up expenses with expenses briefly remaining expense support ratio people several quarter our our about were operating The the last XX%

the expect forward, hold expense relatively to Going ratio operating we flat.

first results driven the of significant contributions three profit. Now in finally, we our reported each from drivers strong of by quarter,

year these benefit rate drivers taking terms anticipate and Property conditions. tightened and underwriting this to are increase will actions outperform the segment we expect from that We continue and our will to

will a continue to Specialty of consistent underwriting provide and Casualty stream income.

income continue to net with finally, to will bring will stable significant Partners business upside be contributor fee a from income And retained performance management results. our Capital investment fees. Our

I'll that, with now And to back over Kevin. turn it

Kevin O'Donnell

Thanks, Bob.

and I'll from rate Property our January improved terms extend and my on between segments. and usual, into divide to dynamics Casualty with As and positive deals. we significant renewing risk-adjusted Starting continue the conditions Property, first one achieve quarter increases comments

between has their deferred property the proceeded this X/X the XX% in As one we come budgeting expected this into rate allocate of with XX%. expected, Japan market The more although in as to of January already to XXXX, reinsurance processes. anticipate some demand as increases much to in even renewals enter spend from

good outcome. a is This

one to both gradual, and June more exposure our Given rate continue roughly see the And down. renewal, Japanese demand. long-term held movements of upcoming be to tend we Shifting nature flat. relationships, to overall, robust up we the

basis terms increases already at done consistent and January the with have enjoyed large several at favorable nonconcurrent these customers where deals conditions Many rate of deals we renewal. what one in found We experienced we were on with midyear economics.

seen have we favorable addition, not new persist. and to supply significant consequently marketing In expect conditions

from Touching state-run reducing briefly market, subsidized more fund. Many purchasing from on companies financially also the continue cautious increased reinsurance take are tax these risk Florida are the domestic available of constrained we and is reinsurance. approach. to a There

the market will closely, are depend watching changes view to our environment. we on but any this So rate

to it cat now quarter's above perspective, a well the industry of Moving was From quick events. summary an average.

exceed where damaged. unfortunately loss Some first large of in estimates Notable or of Northern buildings Syria, estimated quarter industry included a events $XX powerful earthquakes the and losses in Southeastern of badly an set and billion. were life XX,XXX was Turkey collapsed

range storms. with severe catastrophic New Gabriel are flooding Zealand QX active convective In loss estimates $X an U.S., billion. billions. Island, multiple rainfall the North was Typhoon impacted loss with from industry Industry damage and to billion the caused single-digit estimates record-breaking significant to and in the $X quarter

with loss largest The Tennessee coming of are estimated size. comments struck According last $XX XX from Consistent my we $X.X performed quarter, to the PCS, of of with an there loss $X.X billion, Texas estimates Kentucky. were this Kentucky, billion approaching is with events double and against almost average. and which billion industry well XX-year storms aggregate losses separate that

As events year negative these of a Bob $XX accident business current on ratio. million these cat loss had results mentioned, and with Property our reported even an our class back events, consolidated of XX% overall

Casualty Specialty. to now and Moving

this continues demonstrate to underlying segment healthy profitability. Overall,

we I are exceeding where rates managing As introductory cycle continue growing portfolio, focus attractive. are discussed loss lines rates the and and comments, in my Specialty trends optimizing areas in on our where less Casualty in to

casualty, moderate. in traditional rates Specifically, to continue

meet where this addressing hurdle and rates. pushing business not are does for commissions margin We our lower by ceding reducing expected

advantage a as transact able lines. us many these us to clients provides negotiations competitive in across portfolio being diverse appreciate Our with

and Specialty, market tariff. portfolio with marine and are lines, including many favorable we are the of the In conditions renewed, succeeded objectives. in growth has persisting and energy Most already business

cyber cyber attractive we the significant an While increases continues year, to our saw meets rate be risk that are last decelerating growth business from appetite.

Casualty Reinsurance recession are shaped three we continue our writing are to have positive, mortgage macroeconomic but profit. be had been reducing the and business a given new the and to contributor Specialty be to Overall, In defensive portfolio pricing made consistent it we current quarter our strong changes credit, conditions. segment optimize drivers that against some forward. and to of has we going and a

built briefly performance do From an potential losses and have future. we banking We to a considerable this this from discussion the of persist in business, and currently to I significant not the exposure events. size perspective, Shifting banking to momentum sector. the expect anticipate into underwriting

exposure D&O impact Shifting of While likely impacted, is could at closely. that the one limited. be business to And line Partners. time, this line we are Capital monitoring appears to potential this now

discussed, outperformance. this healthy significantly Bob very financial to quarter fees and were As contributed

while dislocated fees this widespread to well, opportunities raising continue Capital see that generating Following in us on to shareholders. for it successful low Partners year partner, capital a fatigue bring investor to very market benefit capital our grow to we material from continue expect to business despite we performing a is help space. Capital Partners Overall, and volatility

In a of favorable, opportunities continue All and what strong to as to start could Specialty in for RenRe. profit momentous Underwriting cat three lines. our well of year was performances. conclusion, Property be we drivers as prove an delivered conditions the and quarter further anticipate excellent be our it

to are contribute throughout volatility increasingly income our we and business board, fee is income. investment resilient the continues the attractive position Capital remainder to and Across the capture excellent increasing management as consistent of grow to opportunities year. an Net Partners to

for with it Thanks. And open we'll questions. that, up

Operator

[Operator Wells We'll take Elyse Fargo. our Greenspan, from first Instructions] question

Elyse Greenspan

believe also Ian past loss I'm year? a your Kevin, other during Hurricane My morning. exposure given guys within was could structure your just then if and first property upcoming how would hoping property And about the is be think -- you in mostly much repeat, and to rate season over book the we could XOL quota give seen Hi, tax us how changes you sense on thanks, I perhaps is if program have that could lower share. more given answer, question the good wind your

Kevin O'Donnell

So yes, thanks, Elyse.

property return going periods. will books we portfolio Your that, at that have have lot With we a wind proportional. reduced writing is increased are and relatively we in the season, but to the we've the flat exposure the correct, of of what we're renewals What other anticipate frequent tail currently is be is assessment of into the absolute dollar it more I after probably exposure sits, as will the percentage XXXX have smaller it shareholder equity. where a

we'll bit relatively So little a on gone basis, exposure shareholder basis. dollar more less a an risk have from absolute but

the attachment portfolio the reside and better balance that to it's risk below the managed We to regard a within a and to this risk pushing portfolio. balance our get We kind platform ultimately we With we're through in that insurance on believe sheet lot our haven't difficult increased higher that insurance a us time at finalized rates the Ultimately, of XXXX by will the point, bringing of at number retention to Ian, companies. because to point investors. like Ian that. the will of put for

would cat overall retentions. something convective events the that substantial. our be the exposure will severe expect attritional somewhat to to higher storms The due still buffered that I will large be remain losses and more will

and premium. We more significantly significantly have more rate will reinstatement

would process together of be the impact in less, pulling So I still financial measure. from something portfolios but the we're to Ian, think, that's the

Elyse Greenspan

my And on the is second segment. property then question other

that be results there XXs large current and that forward. mix the should losses loss mentioned going quarter the and guys attritional in the You impacted ratio

assuming when with terms for you assumption your you here? say from loss low costs are what XXs of So the in

Bob Qutub

now have that's talking the as cat-exposed been that we shift. what capital that is at property -- It's one. was over. shifted that other the reallocated take about, deployed, Kevin we've just the I'll And we've Thanks. mix Yes.

naturally see year from a under book, coming bit to we proportional XX%. percentage kind of looked which that of at stronger current higher a going you're loss just accident previously the So rate had

looking of down at where it's it But minus. the walk or to a just just kind quarter. code going we're of rough Now of you XX%, in give to over could XX%, plus it to ZIP around just XX% probably for be that orders

Elyse Greenspan

you. Thank

Operator

Autonomous. Ryan question next from from comes Tunis Our

Ryan Tunis

guys. Hi

So Kevin, that. figure cat quarter, active gave you $XX mentioned against a billion obviously, you an

context could Your very maybe the $XX you maybe market points cat of or that goes just quarter year of how million curious we about Yes, in that type perils? have put was of the in XX on a about types might with and I you guess how basis similar of loss done bps I'm and -- you only share. if think past at other XX we share should think market as look of

Kevin O'Donnell

Yes.

talk let bit the I little about think -- me a other property.

-- that small property as our have small exclusions. so in and naturally I losses portfolio with cat more ground-up restrictions on and higher proportional, other therefore, losses. most regard losses portfolio saw exposed like having reduction is other a in cats we largely convective think the to participation reasonably portfolio quarter. for to That to the of does reduce and storm will The shifted a severe is retention The

say and the would market. I risk the our exposed more efficiency share market the vehicles see reinsurance we'll of So is larger capital smaller Large likely companies market of forward. to transferring will increase just events, a share primary different because our smaller where to events, events that going have

Ryan Tunis

financial guess a there. risk risk you just about Recession go but the financial Got about it. I in to wasn't didn't different Like And guys, recall, if How Kevin thinking crisis? risk. do or book you XXXX, enormous systems it little or risk play? if tail and that type Lines, a inflation today, lead recession the are thinking have bit, Professional risk you that would social Great train I curious, that types for back losses exposure all of recession huge could into the then you a I'm how some evaluate at of and

Kevin O'Donnell

do financially different significant our a more the a landing do we stress, than in portfolio much more we group. in of did and correlation look it the at the the insurance -- the to landing tail the portfolio, to portfolio, book by economy. understand a diverse lot exposures reinsurance crisis We make much great only soft the looks business, hard for Obviously, financial casualty investment of written Yes. not lines that the across sure but impacts with

or portfolio. Social the inflation carefully that's is with recession without that managed within is something very real

So the lines XXXX, not can in as thoughtful business company how are I cutting the we've built. mortgage. We're we're portfolio same We different writing. think that back on were but good about we're very we about recession we the feel that affect of

D&O. reason like good banking feel the in the don't for quality investment specifically the issues, portfolios this with point, monitoring position should then we We occur. lines, the professional And and see high recession at we're concern. obviously, any But

Ryan Tunis

Thanks.

Operator

you. Thank

Our from next question of comes Shanker Bank America. from Josh

Josh Shanker

It's you. your little for partners. share with the minor thank noncontrolling Yes, a to tricky bit in us interest always model the

go premium midyear. the you're up As share in remainder earns unlearning go right of the year, through attending overall or for what writing, you're be Should what results down? the your

Bob Qutub

I'd Let and Bob. premium? the that I the you way to Josh, it's the look if answered correctly should our than... me midyear think through can expect see I question, net we I question And more technical it's one. it, question at premium how asked think see the probably if is, flow earned I When take a

Josh Shanker

and flow with how see partners? premium Bob, earned actually, the as firm-wide share Or to we shareholders' through both opposed the think, RenRe of RenRe should shareholders I experience net it the

Bob Qutub

that have set how versus us, our about the we with of Yes, risk comes we but a externally capture that that share that really we through. don't that interest in we talk some also And we same through know we it's allocation and mainly shared DV we and with depending go and do share we we where partners, benefit environment capital that allocation percentage it now. third-party the right DaVinci haven't that on XX% that. varies But DaVinci, our which is in around really into

Josh Shanker

or guess, more we're modeling. say I You can't less? directionally as

Bob Qutub

allocate but change and we or don't coming shareholders. at less cycle year, look up, that's every It it more the day we'll DaVinci every the or over time. to changes We

Josh Shanker

And... Okay.

Bob Qutub

I of rule But thumb, it's or about say half, would plus minus.

Josh Shanker

and you little that mentioned business biggest five the to understand out other in better. business flesh maybe components guess, talk mortgage good. the item for we list you specialty growth trying or line Can was a the premium? And that in about, of Can I four cyber. Just bit the

Kevin O'Donnell

Yes.

it's quite -- not going And very, we up, energy. much marine opportunities grew with rates very there. lot in have as even with we they saw cyber substantially So and a rate up been We adequacy still continue going quite attractive. as -- then of cyber we see the is

growing we're last been months So that's so. XX on about going cyber. in for And the really or

when an about it's would energy, that's -- in portfolio nothing the more else shifts then and particularly are specialty some So say I portfolio a we nothing broad think that other much cyber marine, those is and dominant as in lines, the the uptick portfolio, but two.

Josh Shanker

you Okay, much thank answers. very for the

Kevin O'Donnell

Yes, thanks.

Operator

take question next Jefferies. Yaron [Operator from Kinar Instructions] from We'll our

Yaron Kinar

and Thank morning. good you

we're some supply-demand the as the of was we saw components market of on into on the overall. sheet. impact value that and that seeing the book having an year last growth midyear Do renewals? reinsurance And see you marks of one recovery imbalance balance think I kind of year-to-date

Kevin O'Donnell

look provided rating were portfolios At lot credit a marks think of agencies marks. that flexibility. through some I lot of the the A this no, people the point, good

as constraining the as wasn't it So number looked like. what

that capture of really flow? flow is and not taking cash the go for ratios rates underwriting think thing to loss seeing look We're other yet higher either. as to people up, interest the going kind I watch are to

benefiting So I'd to the market portfolio. also say remaining enhanced from the and the par from the investment and within is return pull disciplined

Yaron Kinar

market than or I your Got in six maybe quite to your X/X three seems heading around into this it. and lean second to to midyear Are then with And raise And and any thinking updates those expected third-party that, expectations? robust. capital better capital line guess ago additional opposed to to capital more? much months pretty and my into tied as company opportunity willingness would be clearly, conditions question or you be, on

Kevin O'Donnell

Yes.

are XX,XXX lot renewals January the midyear So, feet, one looking the renewals. a at like

So we're we're what seeing we're not We're surprised there. surprised. but pleased, with not

people had the private market, into to we've the and where successfully also quite lines. deals put and relationship actually few a out us we're executing large doing for are think, We the I appreciate ability

to they at So preferred find early want us terms. with

surprising call, going -- step say in we I'd there's nothing to expect said the to continue as previous about said It's and is it. give we we a that So market change. market what we the expect the

we're a to rates. that degree adequacy we're once feel coming adequacy in comfortable with. up good level. getting off means more of So significantly And a getting that rate was all Florida, rate very reasonably at we particular,

be back to market So And pressure change I feel a that's have an going that, that's going before. step attractive traded where to don't us. for I see us to any we bringing down

rate adequacy. I discussion it So rate us to a our discussion to shift from the kind of think for like company change and thinking about is we're going

with 'XX midyear and portfolio achieved at certainly, we're and a we've enjoyed building at has through that believe very X/X, endure and change will we 'XX. one that margins, that the step And we strong

Yaron Kinar

Thank you.

Operator

Pablo from Singzon And our next question JPMorgan. comes from

Pablo Singzon

Hi, for Jimmy. thanks, I'm calling

stable But emphasizing higher like combined off. Casualty should this and ratio seems Property the shift just back rate like a lines? the just shift results? question brand A more the given to Specialty. the see began Do conditions to cat. volatility, generating low but just in Property increasing how trade-off And it between today, of broad in you lot cat So do start you volatility market

Bob Qutub

took you see more and from But me mean, in the I take one exposed jump business other the property, yes, like. we will cat can cat. I the property proportional shift, other Kevin the off, shift, Property he'd and that talked if in which into Let about in

you like the accident rate. little a loss current said, see bit you'll have behaviors, higher property So other will

that cat. the from Does of low more Property loss, will take and context lower you further we're about better extent, a the come you into volatility higher got the out we've I return volatility? structured put may that some And think broader have terms to through. referred how We the that retentions, level, mean actually I care to -- certain think conditions.

exposed Some that but large you'll losses. be will still disappear, of to

Pablo Singzon

if makes book was seize Still question, second sense. And your topic. XXXX? professional unrelated And increased you the introduced are on then hear where ceding broadly, flexibility there other the I stress given wondering to That primary are recognizing commissions. curious deal that just guess your loss just and on adjust your you've could or cash more loss lines line versus picks lines how I selling that to ceding? in picks

Kevin O'Donnell

are commissions, questions ceding there. you at most even Yes, than we're -- we the still I let success one lines, rate January the From think me at and asked commissions couple of a above In a renewals trend. we're midyear ceding did having perspective, professional pressing pushing -- renewal. commission we more firstly, ceding seeing

action is think taken targeted. that where We I that. believe that the still on we've seeing we've pressure we've that on written portfolio producing required D&O, with we're So increasing some the margin

comfortable is not environment the have macro we're initial we the in process on the part against for rates I portfolio that think about a increased -- above that portfolio. And we've period the stressed more with still we scenarios, the the at loss it. also thinking macro it's look picks trend, do of that with even And built. that of cede. do we're But more underwriting largely We from stressed recognize But benefiting the reduced time.

Pablo Singzon

the you right, thank for All answers.

Operator

[Operator Instructions] from Han Derek from next We'll KBW. take question our

Derek Han

morning, Thanks. guys. Good

loss for are property. the curious your attritional we and past you've nonrenewal. with It looks share attritional terms the in by if of you're the in know impacted Where contemplates making. Just portfolio? issues had of in a quota going changes I'm your past XX-ish just like back And losses. I ratio attritional was growth optimizing guidance kind the other to

Kevin O'Donnell

Yes.

opportunity extreme the was constructed. think optimizing which doing we're -- way to going in other property. in other using Property the the actually I into excess Property we're What seeing think we the I portfolio through exposure is any capital we're way cat, liked and its company property it margin coming cat in we're not is compared our capturing cat by having after

overall think as as a is as other property to optimization So I to of don't it to much the the an platform. fix it

property, other of on Bob other the is in property things two really touched think which doing there's the first I So we're size that reducing portfolio. we're

on room right, excess margin write for to cat because creates exposed can capital, be for cat Property that book. less what us then for cat. from Property cat we the do shifting we're that And XOL we to harvest Obviously, out dollar

think pieces pretty So us with. remediation portfolio providing pleased a I I don't that actually two those was as optimization flexibility. with are of against the it book

Derek Han

Okay. second then profitability Specialty. to starting and Casualty That's like is is on really show looks It helpful. question And up. my

easy XX comp loss accident you current improved pretty bps Your I ratio know year-over-year. a had year quarter-over-quarter.

there change, quarter-over-quarter over that just there Is we the should on a thinking anything else rate that Just in about? trend? is be

Bob Qutub

the wouldn't a you to we I the lot to -- wouldn't of mix It point It's change a Bob, on I this from pick reserving which didn't take that the a macro. on mid-XXs the point by a for X.X, takes. much in still that plus anything but anything combined best out ratio pretty point puts There's actuaries a question. basically, look on is I'll minus. book or And we historical is we're steady to standpoint, the performance that have it's take based at. been estimates the pointed -- linked-quarter of the basis, and have. the a loss and

Derek Han

very Got it, okay. Thank you much.

Operator

time. now any Kevin to over we And questions turn back or will additional further the have it I appears remarks. O'Donnell floor no closing at for this

Kevin O'Donnell

continue very execute participating be Thank to we work the Thanks the on business. the call. is quarter. all much. optimistic very and hard for about year proving lines across and of We're favorable We're of you to where a market what to today's proud strategy is

Operator

webcast. RenaissanceRe have line time, and at this day. concludes a disconnect earnings your call and XXXX This wonderful Please the quarter first

RenaissanceRe (RNR) 3 May 232023 Q1 Earnings call transcript