RNR - Earnings call transcript Q1 2024 | RenaissanceRe Holdings Ltd.

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Operator

Good morning. My name is Savanna, and I will be your conference operator today. At this time, I would like to welcome everyone to the RenaissanceRe First Quarter 2024 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 Earnings Savanna. welcome RenaissanceRe's to Thank Call. morning, Quarter Conference First you, and

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

matters. housekeeping some First,

that differ today discussion our statements, transaction. and from of results forward-looking important business shared the It's and today. Validus may new Our including include actual to expectations the note operations materially will for updated results following expectations

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

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

now Kevin. to call like Kevin? to And turn the over I'd

Kevin O'Donnell

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

we the strongest This X year. time in momentum in common equally operating reported on our finish return following Last great annualized year build each average the last to underwriting a drivers of to is strong at on investment an and has night, and are however, my XX%. well, return the profiles our having I've Individually, X one career. aligned an fee of of performing resulted equity all of income profit, same seen start

in successfully Validus year, by and best was XXXX a the companies about conditions. Last strategy accelerated about we change delivered then Re. of acquiring our XXXX in If advancing market, the strategy, pricing We our step reinsurance execution. one reinsurance terms is

milestones. X benefits our primary XXXX, goal For the to reap of year's last strategic is

reinforcing to the our are financial aggregate, highly results our accretive As and in milestones quarter, line. reflected in for these bottom mutually

we focused that a success, through highly however, delivering execution. be RenRe combined portfolio, will on renewals. remain on process the Validus To begin, ongoing depends strong Continued mid-year

written are we of $XX $X track will If Validus so, our combined premiums. doing retain portfolio the at premium. ultimately on to in successful least remain exceed gross billion in We billion

favorable Given must the be reinsurance acquisition, systems much to process must customers. than Employees portfolio. be to achieved and integrated, the we must of underwriting on however, synergies success more shareholders. seamless the depends be environment, just this Validus remain expect to retaining and accretive very this highly The our

we focusing are excellent we progress. amount Consequently, substantial effort are and of integration, on a making

fee designated shareholders. Our and ever is business business partners has efficiencies the It acquisition another it This larger grow. partner as the mutually balance capital over sheet year is continues as brings or where and on it will business to reinforcing. the been to area also and significant our we the our Validus the income than balance for generates realized place substantial capital to Validus our on it course platform. sheet. of efficiency is bring This renewed portfolio the This we successfully capital to be owned

we and what us time, environment We're on investing the float portfolio Validus attractive also brought investment rate at be growing returns. interest best it increasingly additional an are at in continues in substantial focused to our decades. opportune

attention liquidity Our been positions forecast. seen. are season the elevated positioned to season enter hurricane overall strong as and lot aggregate, outperform. In capital I we have a ever hurricane of particularly this as There's year's on

[indiscernible] of reports focused part are important X variables on spend this to of many year minutes forecasting models. are the just want discussing I a So few perspective. our the that

La the Oscillation. temperatures, Nina El The and the Southern Nino first elevated is is second sea surface

that Basin season. than regard will at of Much XXXX first, this They already With wind levels. forecast now likely can sea the temperatures the year. surface Atlantic earlier above warmer between most change suggests average Atlantic persist. and the hit or tropical anomalous to highs warmth this record across The remain long-range

We have surface seen sea before. temperatures elevated

it While is Atlantic will model to this formation have, assess tropical of significant heat per to the our catalyst pointing level incremental cyclone is difficult activity.

we The limits second La cyclone formation late driving These Nino or for tropical activity, Atlantic general, us shear on lower Nino XXXX, are Oscillation. Nina Nina Nina benefited In and conditions to Nina conditions stronger return enhancing tropical forecasts has which likely fall. conditions, that the which El increased formations. than In a from summer La El promote the is in early formation. long-range Nino typically has influence El development. are thunderstorm of suppressing and cyclone wind Southern shifting results La during on La both suggest

and sea drying said, in the effect wind a other dust African are variables factors formation. system. the Many complex in La just as conditions Nina and of shear That influence surface temperatures heightened X important such

Additionally, steering automatically storms more mean or landfalls landfalls as occurrences populated are do densely more in important areas. not

rely losses formations. we by different need simultaneously for pay We Ultimately, cover do not loss before variants material a hurricane major storms. us. conditions a caused hurricane becomes to land beyond weather falling Many

Given a this, portfolio tail against to of resilient a designed outcomes. we deliver potential performance spectrum that's wide constructed have

have superior superior superiors These relations. core customer Over management superior that values underpin capital important outcomes. often discussed leading value: the X we and the X we to everything we years, risk do, selection,

transfer accordingly. hurricane price Rather, elevated multiyear a it a the clients. manage First, not possibility over our is we we an to season risk and period of risk

regardless our forecast coverage and For a value of of of provision pricing the consistent key our customers, proposition. is component

some of I've An to incumbency there is consistency. is As in important the incumbency. discussed aspect value past,

spectrum across despite reinsurance. leading significant ensuring forecast the Our and consistency our in full years, the position role first casualty bought plays as property it a over market of a reinsurer call

seasonal Already, that and against seen of hurricanes, and have frequencies model before. the forecast stressed elevated major a have for both forecast our minor elevated constructed portfolios incorporates have we we Second, us.

But are returns our drivers underwriting, expect, profit, given would positive. of under model. strongly gross-to-net our diversified are one As strongly and these disciplined proactive this returns strategy lower X expected still

well summary, underwritten. In our is portfolio

sheets, balance right position. the on we capital excellent and is are in risk Our

to for loyalty. with their we us partners, on us reward rely customers Our long-term continue and consistent

opening discuss for performance on my more provide detail the the first, at quarter. performance comments. the financial concludes of I'll end our our segment Bob call, but That will

Robert Qutub

driven good by with another in $XXX and income million, across results were $XXX million on returns XX%, started up return quarter with of income operating investment Thanks, of quarter million, XX% fees excellent morning, $XX Kevin, X average annualized XX%. all profit net with operating up equity superior million, common and The everyone. XX%. of the income drivers up strong and of an of $XXX the We of retained underwriting year

that to by retained $XXX represents share book Over to Year-to-date, we time, in mark-to-market we we our our million higher partially per value plus investment term, by on expect strong accumulated in benefiting were losses Near have offset in accrete earnings principal rates new par. tangible dividends are metrics, change losses from X%. back grown investments. portfolio. these This

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

First, net you up was Validus written as are of results. billion, premiums were in XX% from X-month financial Kevin up and $X.X this mentioned, year. last quarter, million, $XXX Overall, QX full income our XX% seeing a benefit underwriting

with ratio catastrophe This results reported bridge adjusting overall impact other we the for catastrophes, property purchase will a included underwriting from was XX% and and percentage quarter ratio the or accounting. for of excellent after Second, with of in Baltimore of which The a quarters. combined XX% moment. discuss low impact a points collapse, casualty property specialty combined X adjusted was having I an XX%, which strong

was And $XX performance. and ventures the income third, in fee million of growth solid back strong on joint our

support million healthy a retained And year. of which should a net $XXX around interest for investment the income consensus longer income was finally, higher the net strong investment for is rate environment, rest building

a rewarding us shareholders activity. secure increasingly platform several resilient to while making with returns In sources summary, we of have built income, with powerful our distinct catastrophe

now we phenomenally of underwriting. moving our first the results quarter successful X/X Now to portfolio retain and and a first combined our according discussed, RenaissanceRe renewal Validus as we to And and profit plan. driver had

a were ceded reported XX%, our less with strong of protection book were across decision written combined as written of segments. up part some We well an catastrophe premiums in overall as our to results growth As ratio timing purchase property with gross-to-net gross result, robust XX%. Net up strategy adjusted both additional slightly some our XX% reflects this at differences. as premium

our business onto Validus portfolio were where written Specialty XX% premiums and incorporated and platform. we now up Casualty net the gross as our Moving and to XX%, respectively,

Casualty As billion. In the while quarter, earned specialty to and explain, billion, growing discipline the we by were reducing Specialty be exposures underwriting we by also $X.X as second professional as Kevin are such driven will premiums areas expecting net $X.X exercised about XX%, earned Validus. up into in premiums such areas liability. Net to attractive

from is we an to a negative bridge the our of and combined of ratio combined bridge for This adjusting ratio consolidated contained we quarter, The an million. X on continue the points Casualty XX%, Casualty overall Specialty which reported average, On Specialty purchase mid-XXs percentage collapse. impact after $XX had and for impact net accounting. results expect adjusted Baltimore

development. combined and reported and to losses mainly adjustments. combined to Moving of by year. we and and had an reflecting percentage up driven points, attractive driven written an $XXX Property XX% up XX%, million of purchase excellent catastrophe where of net terms starting seeded by by with were of strong Property impact ratio written ratio Property percentage favorable premiums quarter last catastrophe at by up The the growth about premiums XX%. and catastrophe acquisition in were portfolio was about renewal Property our expense conditions. adjusted business compared QX segment low with XX% the rates points by We XX XX% Gross of X or accounting

other written by up Validus other next and million. written we continued by XX% to to premiums in In addition expect QX XXXX through. earned million, we be were Net $XXX reductions were property, premiums property earned where about the the now mainly quarter, of by XX%, and The premiums $XXX were up Moving to portfolio. our driven up gross made property premiums in earn other XX%. book net

an in the excellent and property attritional Other XX printed ratio XX% percentage development, quarter about combined points predominantly favorable from of adjusted with losses. results of

year current property which from X ratio was bridge loss impact a collapse. XX%, Baltimore other accident percentage point the included The

to loss forward, low continue we attritional expect Going another ratio XXs. property in

from fees expect including development million, in driven quarter. $XX the large by our Capital strong in venture joint to QX increased and XX% Partners income now $XX in reached the $XX fees our XX% $XX events. were million, where favorable 'XX, million, from capital we around and fee around any the $XX absent In vehicles. fees performance second up Moving joint impact fee reflecting Management Performance business, of growth performance, million, of loss up comparable quarter. were venture of income quarter, management fees the million

a stand from year where Moving Treasury consistently now unrealized million, in million in up was leading to year a investments, the rates retained quarter. investment have from ago. the income fixed at through Overall, XX% to maturity $X.XX losses $XXX investments and per or QX up share. our million retained net mark-to-market $XXX X% ticked $XXX losses retained up

this to expect over We to time. accrete par

than flat higher to of income yield year. at retained which of our maturity Our in slightly net is QX this investment X.X%, was relatively X.X% return

We from net markets have expect rates should net current investment support the the treasury to income be income Financial will ahead. persist levels, to quarters stable quarter. the in strong retained quarter, which duration to contributions around kept continue and compared in second are expecting investment flat first relatively

to briefly turning expenses. Now

We synergies acquisition. Validus significant achieved already from the have

ticked expenses due down have increased ratio expense operating acquisition, to our year-over-year absolute While to X.X%. the operating

expense operating through stay ratio We the relatively expect to XXXX. flat

total remain start to to taper Validus are elevated about expenses expenses acquisition. income from transaction-related $XX off million operating million related $XX next Corporate of and the These the with should quarter. excluded

Now finishing management. with capital

renewals midyear a position. capital strong with the into heading are very We

have capital, approach we RenaissanceRe of management. a stewards the As capital and in we consistent discussed disciplined to in long of history remain has past, being our

it the owned optimizing Our renewing partners' our wholly is primary and capital by onto balance focus Validus sheet. business

deploy As opportunities the for integration, capital. complete best we will continue the looking we to

of income significantly a portfolio underlying and and source growth top of by And income investment successful from highly was drivers in Underwriting were our strong, continues to we of X X/X substantial performance. strong income Validus each conclusion, line performance had renewal. with net significant quarter both Management another significant driven shareholders. following related up for another our be and to fees contributions excellent year, a And growth excellent finally, profit. stable

to with And over back Kevin. call I'll turn that, the

Kevin O'Donnell

Thanks, Bob.

the usual, quarter between our segments. with magnitude As X.X and began Property. Casualty Property comments divide a my in Japan. We I'll Starting with earthquake

is to to low. this was density resilient region, the industry one earthquakes strongest in While of recorded the infrastructure, low due reinsurance population the its and impact

influence significant on not result, earthquake renewals a have There X/X is today. As reinsurance and orderly to renewed sufficient meet did generally an capacity the in a programs manner.

at in Rates our relationships strong to were tend be combined we're rates, renewing successful in in low. have X%. lines which Japan, Japan flat and online down to We

a does either such or So not small price bottom shift impact line. significantly top in

midyear team we underwriting working have places. and Our is already large renewals on the several completed

for additional primary growing for reforms regulatory seeing come helped variety the market and has with rates the takeouts reinsurance particularly in should are demand the confidence have recent stabilize This underlying in state-run more attractive resort, a Florida, reinsurance. driven drive market. insurer citizens factors, significant first, last of a that by We from market, to additional demand including: higher of resulted which

cat the where the provided of assist $X.X end Florida free billion the second, And to cat wrap the or below layer, of property reinsurance fund. reinsurance policyholders

decade their and to reducing been a due inflation have We social to issues. almost domestics performance for financial Florida exposure

believe cautious. we better market we a Although in remain is place, the much

most to be will on applying strategy build. the underwriting part, the our Validus our focus For

be market rate other growing have property, In the substantially continues have to although moderate. increases been XXXX. started attractive, to since Rates

of other selective property is portfolio. we that risk assume. we continue That year our the will through the of in the return increase expect profile Validus we this Although to that primarily the growth slowing, like said, be renewal of rate

Francis Touching Key Baltimore. collapse on the Scott now briefly in Bridge

had impact both segments. and Bob an Casualty discussed, and this our As Property, on Specialty

is will been opportunities in in and a forward, Going us for have other likely in loss this result already to markets, additional which attractive. minute, specialty I outline marine

Specialty. and to X/X Trends and continues Casualty Specialty. Casualty continued from healthy segment now demonstrate this for to profitability. Overall, underlying Moving generally

strong view the are market is discipline. we Our in underwriting keeping is casualty that with demonstrate trends, cedents, loss general and line who supporting

on some reductions offset in to for an in reduce rates year second provides to for commissions cases. positions Additionally, row rate lines are underlying reducing long-term like and we Ceding D&O, the profitability. are continue D&O certain where the a programs and This best declining.

our managing portfolio We are accordingly.

specialty In the Specialty, a quarter, and provided within leadership acquisition market last lines. us position with as Validus we discussed diversification large broad

Baltimore expect and market We a specialty recent will an that attractive rate aviation well bridge the incidences dislocation further environment. as drive collapse as

the more net by reinsurers, reducing in most seeing will in exposure our here. continue manage to example, classes portfolio Cyber, areas. competition We and from is increased growing our attractive challenging and for are reducing we

experience largely are surety declined, XXXX, In After has combined Mortgage we our found credit significant origination our private difficult increases. opportunities rate market some business, have but volume share. we maintaining a within continues to attractive insurance. mortgage

mortgage a us our book our remains mortgage brought Validus large While relative to equity, consistent. risk

maintaining Our apparent quarter. shifts attractive agility leaning and into the in most this discipline the with premium lines is

makes XXXX specialty QX It our of premium liability In up premium. professional made made to XX%. up reduced Casualty has XXXX, of QX XX% in gross up XX% now and Specialty our Conversely, XX%.

and a kept our opportunities. I portfolio into at ride book, XX% have credit shape our and ongoing flat respectively. best We activities general our of relatively mentioned casualty changes XX% highlight to these to and the

around retro structures pricing to flat. we're was our saw with We and X/X, we discipline additional and primarily pricing secure to capacity. now purchases. long-term continued retro At partners, traded able relatively Shifting

renew position portfolio RenaissanceRe we and liquidity and limit That balance is sheet, capital portfolio. retro additional purchase is renewal next overall to improves the disorder. for be our that to it limit we it able our only The and that Validus incorporated As purchase provides our June, strong various said, will we flexibility, significant our into we retro major expect we will the us if programs. in program on

capital to now partners. Shifting

well, financial healthy is As to capital to this Overall, performing to and outperformance. expect continue contributed we and were grow. it partners Bob quarter discussed, fees significantly

contribute to ability We all continue our and we position an support net in partners a income. was terms Interest Rates with it are be continue capital And excellent to X confident strong grow an contributing of RenaissanceRe rates in quarter. conditions continues drivers to In Validus started profit, our finally, 'XX favorable, to and results. build meaningfully income. attractive strong conclusion, and and to fee investment substantial and portfolio.

And it turn for with over Thanks. that, questions. I'll

Operator

first will Greenspan Wells question [Operator now from Fargo. Elyse with Instructions] our take We

Elyse Greenspan

in premium. get number? get there comments, first upside renewals to Kevin, want want in quarter? expectation at and be there, right, could a to on right, the the your QX, just some had the to of a I just are you Validus renew I billion saw to you renewals you growth of how the post the you -- based reaffirmed, $X the the least that sense versus base, on your sense were that introductory

Kevin O'Donnell

is bit commentary the was we it say $X which Yes. October Thanks, [indiscernible] billion, with a declared I looks $X.X the from of billion as same we would first expectations upside. our exactly potential what before, $X keep billion our our When increase Elyse. the did like. we'd portfolio based of on to for

that April into things July original June, the are basically up within up our renewals that the in So increase forecast. we how framing we're set of seeing expectations in and going

this point. I So anything change at wouldn't

Elyse Greenspan

then on my is second And question Florida.

your remarks, for your sense begin need give As what positive us you follow-up X/X of do in to see a become prepared to to Florida, on and think more state, where I just just less you or to the a renewals? And cautious increase about the can guess exposure? Florida then prices to trending you to are Kevin, when be

Kevin O'Donnell

So yes. for No, you thank that.

we I Vermeer very some layers. to Florida we'll has think think out. top for see sufficient of in appetite that capital elevated capacity -- that. mostly at write sort of It's Vermeer put an demand well, certainly to

years, several I away from our national would have the wind have the we the we've accounts, Florida larger I to as mentioned. that accounts portfolio and last with the that written, exposure we say RenRe, Southeast over and scale For already with biased

of and is regardless grow expectation. Dave? for Florida. the capacity and shift to we conditions expectations our put think rate, terms, in and that's into there's out portfolio would enhanced significant our beyond say I us not if overwhelming but we have opportunity pricing meaningfully changes that to unlikely market, to continue would I

David Marra

We on I'll Florida is discipline demand this bit color David. the good that. do the Elyse, space. in from of growth add a market in good expect and

that also single-digit X/X going more just growth that. have growth we high the that mentioned, sort not the it's At of As saw Kevin X/X, Florida, renewals expect exposure. get would about in We demand demand in it's percentages. we than nationwide into

with are already be some So up locked trending programs being to of might it XX% those in XX% now.

optimistic So to portfolio create good of cautiously it as but we're about ability we have. approaching a the we're profitable risk,

Elyse Greenspan

then you And do piece, kind just flat the be you price expect? expect of would to What down? price

David Marra

We for around legal big levels those since following reforms, there's the The dynamics still and will potential think are with the of in Florida. positive the a storms cap. high quite always strong we've is frequency seen unproven intensive, risk There's things trade that XXXX. but capital still

to we they've will things similar trade So since for what traded think XXXX.

Operator

from Our KBW. Shields next question comes Meyer with

Meyer Shields

you I that whether the was transferring or the RenaissanceRe. renewal expected meant hoping book indication declines? could Validus tell couldn't was of clarify Florida an to by I what you or growth

Kevin O'Donnell

very we're is looking we one, at equal is X. What one, to it RenRe is taking Validus simply, want

some book Validus there's Florida. wrote. book domestics in we'll like that down in renew and that We our expect we the There's that So the diversification portfolio. the some overlap wrote they with they

anything the be independent to to roughly portfolio than will the mean highlight equal combined X didn't I So other portfolios.

Meyer Shields

Okay. right. All

-- and where sources I hoping an you we loss while were update inflation could opinion Can view reserving are? talking get I casualty between overthought of the when was a about I I trends. the or that guess, that know actuary goes probably X back social Sorry, of, on And those pricing it update delta one. you little

Kevin O'Donnell

I'll to it Yes. then and turn I'll Dave. over start,

expect, to most We into take price have specialty into benefit of you would been, our casualty of portfolio. as slow our the and portfolio

our there loss still So remains pricing gap ratios. relatively reserving a between consistent and

news. relatively mentioned slow I as on calls, to think other recognize good we're were also, we

I'll pretty we detail. it turn developing, immediately -- that when it's over So Dave and before news. But about lag I substantial so good recognize news, think accept curves more how to the for think we'll are we

David Marra

Yes.

is think recognizes is of good the important, and stable to X/X Kevin lead we seeing which we're a said bad at they're that I level. covering stronger an general that the losses the increasing reserving in more trends, side, still where the process, elevated What have does early in and like and and pool more seasoning still news, liability because decreasing it's are market news loss it rates D&Os reserves.

is So maximize to over we our goal long we and D&O. are the back best make when we scaling construct the portfolios in term, portfolio sure the

Now the right some and to provides tweak but percentages. are construction offset adjusting that, ceding portfolio commissions it's resolve that to still those

Operator

Autonomous comes question Research. next Tunis from with Our Ryan

Ryan Tunis

loss. First question, the I Bridge just Baltimore on guess,

reserve it about? type also are guess, is not much figure write, the verticality wanted Just is out, of trying be up terms guess you that marine what to but how the retro I'm I sure in sense better reinsurance coming get there you of give And is you're a there thinking type in So you pick? loss I anything from? it of rather -- just came how kind Or loss I'm could where with, that just us you guess, like reinsurance? of to I responding, is curious traditional can contract contracts of what how

Kevin O'Donnell

Yes.

it it segments. let most I Dave in happened loss, got the do on the we want think to lot I'll reason presence, and talking of highlight I'll a The quarter. start, across It's this. bridge X is it's

bit So to a We transparency. of early sense. think it give want of little a recognizing makes you I lot

it's We also marine happened. largest ever that's the think loss

the about that sized but a I think We to the with we're So our fed also more I'll to thinking. think little loss, over talk coverages. over into bit turn Dave it don't

David Marra

are space, that also retro. which assumed combined then and assume separate liability, X through covers do segments. reinsured, And marine booked asked retro. that and We often about write we liability way. then in why gets excess we some are a property. marine In marine in energy it X it's of play coverages energy that's The marine where whether And Yes. the most traditional loss that you into and in

We the also specialty is our then to buy the piece and overall some That's on property share account. is piece portfolio. limit our where quota And assumed. retro other exposure that property risk being in

Kevin O'Donnell

little We some And I think people property is mentioned, you for to is regard think your bit the to with scope there easier verticality the get to more into sort we expectation that this the But pulled which casualty, the and of contemplated reserve. already think a is where don't significant we known. is in runaway there's better around. beyond that hands the coverage, a be

Ryan Tunis

then Bob, That's that. just asking guess I for savings, -- expense helpful. anything And or one specific for for not without asking guidance like

are Just easy these safe any in estate, curious, to are stuff storm like identified. XQ have some numbers? that that to or you've that the it real whatever, like those sure is Is stuff kind minor of things of I'm whatever Or assume that 'XX? there of been the for identified sales of rest -- come

Robert Qutub

owning. the in of thanks, X quarter, months fourth We the of in those some got Yes, first Ryan.

So we the got easier of some upfront. ones

transition these that as of You're will carry the we integration. going lot to a see quarter are first do costs into

a I the down X off said, by to amount taper gone by over quarters XXXX. it's and As next to going QX nominal

probably quarter. So expected was $X next be million this $XX decline. see $X million to million It to a less quarter,

Ryan Tunis

estate onetimers, maybe to or clarify, about costs, just Sorry, like like core something I'm that. real not like the talking

Robert Qutub

okay. estate, real The

that not to we're So rephrase. that, unused and going costs let the The like use. the we've estate me charges space real taken on

operating use income are What our that integration. spaces going go through and away. of those in you're you're income. up A consultants transition will the is the of is now see to of onetime what operating costs So seeing be now come would that people those lot recurring outside

I my corporate expenses. referred comments. million So that's That's prepared the in in that the to $XX

Operator

question next Shanker Joshua comes Our Bank of America. from with

Joshua Shanker

going part was a the renew? I'm frame and organic that get of the to want this, anyway. you way organic to book nowhere Is ask RenRe at with what to the Validus [indiscernible] I'll growth proper growth the but there within

Kevin O'Donnell

not it We're way. Yes. that at looking

there's Validus with early kind the mentioned a of portfolio. overlap on, heavy we As

I think shares get announced said portfolio. time could to the at is is, we that what the we the quota acquisition XX% close we with

underwriting. underwriters with we quality the and with the very the from very So are We're people quality of happy happy Validus. of the the

We X have accounts beyond grown X on plus X. equals the

some we're for the that X specialty. not And We about but area organic growth is accounts, -- shared to on it's us had think combined a plus basis X. The assigning great have difficult plus most X probably we've equals shrunken we've accounts. too grown of between the success, within

So when we're looking amount clients our target have at we and it, brokers want, and loyal the us. enormously that to been helpful we

look So it not up, put of we're we number we the proud that at between the we're when growth, breaking but and out organic combined.

Joshua Shanker

they Ian performance last Make feel moment. can sense, was to about sheet The the the bit as the of wanting is really the or rates rises exposure your pass and your Hurricane about a not how on time you of $XXX I But people volatility understand. tested that's balance of determine balance been talk how run began remarks sheet probably shareholders. Kevin, and at risk billion talking billion the hurricane sheet billion that against tested losses levels thing one loss foreseen? in the disaster, about the their $XXX not the little disaster.Can change not balance $XXX terms partners' to its amount major you RenRe's

Kevin O'Donnell

Yes.

So to is the appropriately. RenRe fact clients. going we risk that means it manage that load -- we'll actually risk said holding The wouldn't to we're I transfer and

resilient think to are order to we we we sure I to losses. portfolios, in need make that about construct how think

support we what kind tail, is continue to further move for sure our what as we concerns that to the means think making in do. from and integral loss available into the are income of about you day you you're statement to after moving If balance that concerns clients. the That's sheet

with you portfolios consistent as a historically. done together, larger of RenaissanceRe take is our of If losses share X percent what relatively now, right equity the has

the up put risk amount levered portfolio because sheet. we of not have that taking, we we're So Validus the our balance onto

a I much our to which events are can sheet. that we've largest of types historically said, happen, across on resilience the where equally resilient stronger are each when we generate areas So about been. That in the balance think compared of we environment

and stronger we and much income income stronger have have fee income. specialty We much stronger investment much

the the All particularly bolsters in of from come of book that book, in that cat can any impact event the the tail. cat

Obviously, feel I that tail will felt back when losses we've our there's at a historically the different it's than constructed But tail portfolio, So there risk we how in would me built against make nothing about portfolios. suffer look risks. how we event. materially well

Joshua Shanker

are risk the about a -- make are clients, there all that's seen passing we not the increases not proportionality, to in of on the risk amount we they're to passing clients but risk versus transfer to not loss Is not I mean on before of been correction passing way, to also the some begin And the you the risk transferred? risk. that's as the levels yet the RenRe sense amount can on been

Kevin O'Donnell

-- what is the which to asking exposure we property you're have cat like So our think you're portfolio. an biggest describing event well, I an portfolio, XOL is

grow, limits purchased. from companies. Once revert to the So are they the primary to the event the towers as losses will exhausted continues back that

the a your continues loss loss lower that we to So loss asking out continues beyond grow, the become purchased. tap is overall percentage the the to you're and Is the tower of question participation escalate I in think as the question? as

Joshua Shanker

Yes, the I've point that's generally asking. been

disclosure in that us You environment? loss don't larger RenRe how understand PML give trying to

Kevin O'Donnell

the increase size primary back reduces with reverts company. and loss to Yes. as it The the slope the of our of

Operator

question comes Jefferies. Yaron from with Next Kinar

Yaron Kinar

when go of that is you I the casualty want on Kevin, wanted and that, just to feel market with generally keeping speaking, loss at little comments, -- year accident to liability. year-over-year. trends. initial I accident think -- see market how look the 'XX I the there, 'XX for saw up square a XX-K strengthening year pick bit we I to loss up we with your for another We back the saw triangles that substantially

I data your So just drivers comment? the do square extra there? other those points side or how it on prudence with Is

Robert Qutub

changes the or of that you that. you're What start go more is you're benefit Thanks with the we recent will terms business years, K. and you'll actuaries, at in the ahead What see years see me of the we'll Let in triangles come seeing Yaron. true up. some the looking for And the in. since as earlier short-tail go the those through and question,

how as our prior get the information. to But movement some curves very we respect in to we far always have. years, going with feel in we we're you're As more reserves, comfortable see that with about as development the estimates

Kevin O'Donnell

To give bit a little context. of

that on on 'XX. I rightfully I and think to pool round the I of is about pool. focus which it $XX been have, X% years so. think billion. When than a 'XX focus most and our basis, that's about reserves, When that XXXX lot of of numbers majority reserves probably about we to get down think the of there's that is years the reserves overall on our reserve break The net attention, a less what we are is prior, which

the to and So we more that that we grow casualty decided years. are 'XX think those because have fact forward. and to reserve we've not the to substantially balance issues But emerge are issues 'XX there 'XX of will that significant us, our the in

We have on protections years. those substantial

there always I that balance reserve very a of I and have industry, health when of think the in think pool feel we're the comfortable I I we that mentioned, in about the Bob as reserve positioned think movements, years. specific significantly across as the better are the about health we So a portfolio have, than company. pool, But the the and

Yaron Kinar

recent But those then whatnot. trends? keeping still And regards just and your 'XX, not accident up loss pick, the not it. we given XXXX, then picks and 'XX, look lockdowns loss loss with and ceding loss Got you're with picks your but is at year with as comfortable just maybe COVID to more very 'XX,

Kevin O'Donnell

ours. to ours. feel I about speak great I'll

Yaron Kinar

second just commentary an active And my season. going the the back Okay. to around question, expectations of hurricane

day, So an any hurricane I on the season your ultimately, active look I does client think to risk, at your you're just dynamic the given I appetite or potentially But not returns. end the play clients, with understand side. for to of depress going guess, point, pass years hurricane

given So cat does into year? factor property ultimate that growing appetite not any in into

Kevin O'Donnell

Yes.

to asking forecast incumbency, at expected reduced value When expected thank we the elevated is is what I clarification the and those tried of consistent the So value of you we coverage That our are of business -- for portfolio. client the look book through think when value higher provide touch forecasts. for and on a there. or about we

we portfolios. question taking how the absolutely we we're think that second do we're we our think and that about about growth and Your objectives have. about We how managing we're is how do risk the and think portfolios risk portfolios, the shaping the how the

have many I comment about that we we in who be The have to But bar us have. want not think the a not for that to be trusted us things be into a for because renewal to growth deploy when people, the in continue that. would mentioned a book a trade, that that earlier, trade, We we expectations transfer of high growth, partner. will the Florida of would to would contemplation

folds transfer availability our our it construction, So it but don't with to capacity into absolutely of partners. portfolio we

Operator

Brian Our next question from UBS. Meredith will with come

Brian Meredith

of here questions couple A for you.

the your the and First, to going property. how views kind cat line in see another But was you case? other cat were shift your growth property. Kevin, organic to property of reinsurance much is I away actual on area? still to from know previously, what's the Or intentions Hard capacity the change that other

Kevin O'Donnell

still case. That's the

I the think excess property writing property getting cat. portfolio we're to compared still other by return

we're there. So focused

excess loss comes We income through less attritional portfolio points also obviously, loss in cat distribution new book, with the book. is cat in in with the statement, like of which coming where the that -- attachment the the there's from the

would I consistent. say other relatively is So our on property strategy

and trumps exposed there's for balance, other property there particularly still opportunity rate monitoring We opportunity. opportunity good cat think the that us. closely, But portfolio. cat have are We on property good the and

Brian Meredith

last some has to losses, then the think we've a going the at accommodate little little we towers that about competition happening? some market that's that bit maybe because And What do with second people high do like the Great. very And kind -- it to for year. demand direction? more heard you Or in question problem Is are marketplace? seeing a to seems was a continue in of end? to attritional more that down bit move in moving the

Kevin O'Donnell

more at the on [indiscernible]. the Dave, more who's let high, definitely competition but I'll There's

David Marra

Yes. demand increased also is competition at the the The high and the end. high end at

core been ], nice balancing cost challenge in a where they've want is expensive The just There there interest protection where been there and from here is around would to clients buying have will held of less each bought the for demand. be partners has but on a and been XXXX I There [ have think below them too effect buy it. those have other. XXXX. edges, that be something that So few that protection or earnings some retentions to more most the the into

Brian Meredith

one ratio Got This it and just in that Bob. looked I guess, is of in kind in [ the ratio of you. And quickly. reinsurance? Is squeeze Or it's post-sales I more, for casualty ] there? at acquisition I pretty can more of high. cat, still new acquisition up is kind the kind expense [ ]

Robert Qutub

casualty, property a with over cost That increase What's the the driving driving That's of ratios acquisition largely thing accounting. next overall. had come the same is question. points into the lot thing book, in a taper the what's will Same purchase property. it. off lot for The Thanks X we year.

Operator

Our question with from BMO. Mike Zaremski next comes

Michael Zaremski

think the share goes? answer, equation just of how 'XX capital a thinking excellent but if to on Validus moving there's after despite guess meaningful of depending profitability season or lot given with that's repurchases digestion parts that the I a not know the want until wind Okay. we just -- given part I should Validus, and I potentially of management,

Robert Qutub

Kevin to really that we're balance the now, integration. on in got Yes. major renewing the is We've large a capital for focus those prepared is that question. comments. good focus we're consolidating that. on the on in Mike, focused referring address that to. tried leave The that Thanks, was major Right platforms. I X does one, to position, right what those, is but because And now capital sheets second stranded

of So to midyear Kevin renewals. referred is end the focused on back we're onto to, importantly, midyear those towards the have our the and capital balance sheets as But books. hoping deploying at more organically year, we're

returns into was back of I looking to optimize capital. we And what on that's kind where So as could that. the

Michael Zaremski

Okay. just -- That's curious, of sense. questions so makes about Follow-up, casualty. lots

probably I bake kind kind just what view? but and [indiscernible] loss maybe conservative your of has of inflationary are of do -- simply decide history folks question, giving on agreements you portfolio, think think able they're how long quota I in ratio to and know share are the the a social that? of to their RenRe the booking naive of I'm a of those mostly aspects how reserving. But that most with assuming own you? kind actuaries So their Or kind you're you clients use

David Marra

the a quota about the David. on but is share. This it of question I'll reserving on quota -- first the lot is share,

are support clients we what So and paying end taking a and losses. our up proportion of writing

completely an book. separate what from our clients have view. actuaries independent Our It's

categories but into that the deterioration back lot that clients so that less seen -- social some most to layers. and seeing a creeping we exposure an we're that's that's we've of up where rates the What area where inflation we're social have And few D&O far inflation unrelated. avoided there's have a to there. exposure, is that inflation, trend to. General with commercial side. portfolio And are fairly and we has different little a have And the intense class very liability with cutting is And social in losses monitor so is is but auto the keeping have continue the are elevated of that. umbrella historically

portfolio average very market. as the approach we're not so in take a that the inflation to the manage as exposed to we So social proactive

Operator

Lederer Our question Citigroup. from from Charlie next comes

Charles Lederer

across Maybe on in maybe just noise XQ casualty question. share the Can border lot we a some the have you of a post on industry? saw how lab changed follow-up color that trends the road

David Marra

-- Could you mean what trends? clarification, just you road do by border

Charles Lederer

like cedents? -- movements know have [indiscernible] I have guys claim some that been from above actual them but your a you margin maybe, yes. like

David Marra

Yes.

see I mean. Okay. what you

our period, cedents and of been where So are cedents claim case we or our 'XX how as mostly we from to much are their a as we that XXXX that's individual is for IBNR significant IBNR increasing for level, progression, they're the claims, get the up cedents judge individual putting where there lot It's of losses then more a discussed. levels. booking XXXX there reserves, reserves from But trends information about settlements. activity judgment their not the all own our reflective our independent of own healthy meaning is an which has progression

Charles Lederer

expenses. of And just the you XQ level kind we it. know, flat Got you levels the that then on I 'XX off lower operating year. 'XX said saw? mean or the Did other follow-up a of Bob, for off of

Robert Qutub

the Charlie, expenses, you're expenses, operating One not time that corporate Just the right? versus [indiscernible]? sure, make about is talking to

Charles Lederer

ratio. X.X the Yes,

Robert Qutub

elevate the ongoing The and was as the just a cost a within higher. Casualty combined proportionately obviously casualty ratio bit did Yes. from result integrations Validus. property of coming

coming you casualty But So quarter. some in see of you the on in of early through will in side. bit last a now, saw off on, from higher coming terms these going costs. But the an right down the property. casualty side we're and elevated can through little how increase cost we a match allocated It's

it is was XX%, quarter, casualty XX%, quarter. down XX% last think I this

now. that for at looking of kind So

Charles Lederer

one Okay. just guess And I quickly.

was amortization Is that of quarter? the the for from guide? expected the a XX% guide the Validus think deal. intangibles in It in the came little still lighter I we 'XX than in

Robert Qutub

I the last -- of first months year. mean -- started It started last X amortization Yes. the

he and to into on guide UBS, of this then longer next the them tried will tail I intangibles by be too, that the longer lived stay to in the first bulk out of year of while. they will question a was year quarter from into going start year this some the and for course are as Brian, taper asked a So over to when off of the

Operator

from comes David question Motemaden next Evercore ISI. Our with

David Motemaden

million development? reserve $X.X into some dig development lines segment, just favorable casualty the pieces in among specialty you moving behind the the the of could and Hoping of the

Robert Qutub

David, good -- a that's that's No, question. Yes.

accounting We have the does prior -- year. the go purchase through

year development related about there And basically to through that. coming prior so had X points

you development. so level favorable repressed will a of see And

$XX about $XX think million. So million,

David Motemaden

was that, of what development? million, million favorable $XX driving And it. Got $XX the

Robert Qutub

$XX But years. the we go our adjustment That's accounting prior that million coming across development through on is as against purchase million that it. goes the or $XX

or would closer development $XX I been pre-purchase So favorable about million $XX think million. to have accounting

David Motemaden

And casualty the up Understood. on think this just side. I reserves the on sticking came

still 'XX, that guys mean those have years. to? it think Could year much referring came that and by through accident up on protections substantial earlier you elaborate protection you I just you 'XX how what on you're

Kevin O'Donnell

Yes.

I was So trying to highlight things several that. that on there's

one from in book is our those So was years. substantially smaller written a perspective

really it were growth year prior look the at overall made, to protected specialty, reserves, acquisitions that started of you brought which If The casualty increase in our by we've materially ADCs, 'XX. which it. years we we've discussed prior before, additional buffers the both for have syndicate Tokyo And additionally, for then that and for purchased for the protections Validus, 'XX. we which to

captured within earlier. which So reduces limit net all of the also I the that there's highlighted which X% significant in coverage, amount, was in those,

David Motemaden

we any that? size Got of the there how is on Tokyo way on Marine protection it. ADC, And the left is can much

Kevin O'Donnell

not individual There's an about contract a we're limit left. to counter No. party. talk going with And

Operator

I or for This conclude like Kevin session. would to conference remarks. additional any the to question-and-answer O'Donnell will today's turn now closing back

Kevin O'Donnell

our forward to quarter. call thank look again. the results Thanks had everybody. we've pleased Well, this We're you, year and next with

Operator

And Quarter have Please concludes this First XXXX and Call Earnings this day. at RenaissanceRe the and time, Webcast. line a disconnect wonderful your

RenaissanceRe (RNR) 1 May 242024 Q1 Earnings call transcript