RNR - Earnings call transcript Q2 2024 | RenaissanceRe Holdings Ltd.

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Operator

Good morning. My name is Ashley, and I will be your conference operator today. At this time, I would like to welcome everyone to the RenaissanceRe Second 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. Please go ahead.

Keith McCue

Ashley. you, Thank welcome and second earnings quarter Good to call. conference morning, RenaissanceRe's

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

First, matters. housekeeping some

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

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

on we Kevin? present earnings website metrics our measures I'd now During Kevin. will today's turn at to concerning be Reconciliations may financial release GAAP and call, call renre.com. And other non-GAAP our information over to also to available like non-GAAP financial in measures. the supplement, found and are which

Kevin O'Donnell

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

I Officer, the welcome begin to our my I Underwriting comments, call. Chief Before to want Marra, David

he will and I Going covered, commentary Welcome, increased to his performance forward David. previously provide participation. segment detailed forward, I look that the more on

Turning results. to annualized increased almost reported am X/X. the the Notably, return that has by to on of to this operating identical operating last equity average XX%. We on common an average QX equity delivered common again return quarter. RenaissanceRe once is but report equity I excellent pleased quarter year,

most several to that have by the this We last continues with and over Validus years, scale diversification shareholders reward superior significantly of Re changed the are greater scale acquiring the our and returns. proud company

exciting to we believe these this year It be of a in into execution. superior is strategy, are the we our confident I persist. and over and trust XXXX, forward, remainder Looking reinsurer, returns can time our an and

delivering each several we believe As do across you our today, continue of drivers and can us for reasons. results of that X profit we are to hear discuss will so

XXXX becoming stable. reinsurance and new to by reset are them limits led are to remain adjusting will is the rate are First, protections. increasing strength we companies the experiencing confident attractive. currently rates. increasingly their rates market the Primary We add continue market property to market property allows This that in reinsurance pricing to reinsurance The continue.

year, renewals. present demand $XX for not property of cat at but Over did bonds, beginning estimate the and limits increased This about we Supply U.S., preceding this the met in the new accelerated reinsurance ultimately demand that has was demand catastrophe the the it. by billion. midyear into year exceed excluding

driving proven than anticipated have likely And At rate been X remain with The investment same decades. from of over our the will to benefiting to sticky. Second, returns shareholders. are increased and of casualty increased time, be compelling even portfolio book largely past portfolio yield specialty interest the investment benefiting cuts our higher and and rates combination continues they have most grow. leverage,

Capital fee-generating our well. Partners business Third, is performing

separates offerings, underwriting and We attractive us have aligns of strategy and from attract to franchise. our several the structures continues from This talent managers. Capital exceptional Partners of to all which access our capital other third-party benefit provide

Our are we Capital Re more ability future so performance is portfolio customers, excited offerings the attractive Validus improves to our the generate to our our so. One acquisition. for Partners and our doing reason fees enhances about business of optimize

we against initial pleased relevant Validus portfolio people am I the expectations an underwriting and We achieved has point, underwriting, objectives From most at report of that capital. book believe most renewed have every this metric. outperformed important the our and to we Validus perspective,

both We segments. the successfully our underwriting deepened our objectives combined met partnerships retained book, and customers across with

business we past, underwriting there discussed or understood have very the and Re we otherwise. surprises, Validus well were As the in no

and teams the employees systems are systems. Validus we integrated and Operationally, schedule level operations since into people substantial been organization. have and have on at been contributions have are underwriting making retained back-office key integrating Legacy a talent. our closing, fully we fully perspective, of our From every integrated our for

leverage to modeling. been From proprietary In into -- augment the of systems able analysis addition, balance management have and Validus and we balance sheet. tools already deal several merged to our a we RenaissanceRe main on sheets, Validus year. and merge perspective, remain the have substantial X shareholders. the and X have we freed of of by have already to capital into sheets considerable deploy with the dry the onto balance powder RenaissanceRe with to provides track Validus company. holding Together end at capital business the return sheet a liquidity to balance the portfolio these renewing This us remaining actions We

regarding From my success of Validus, this to our fully but little landing integrate in into most underwriting work a important perspective, Bob will order insights and we portfolio successfully deal. but was be on provide it Dave the couldn't happier to do milestone. say, Validus, execution the additional we still to the have suffice

remains midyear detail. David renewals, in discuss the Overall, attractive in and seen most to portfolio This the conditions now we results greater the of we my career with property which unchanged. favorable our terms I've with one that pleased constructed. were Shifting risk will relatively rates and and markets

appropriately with of remains of appropriate I chain value which we the in state being All believe for level paid insurance to of is the is delighted and which positioned say, attractively the the it. risk assumes are market,

main to highlight enhanced would and risk we this To our turning Before season want help into like frame points. to wind how resilience to have discussion, shaped spend we going Bob, minute loss. the how our a to discussing X I I

dollar absolute to up, portfolio. due of addition First, grown largely our the Hurricane, have Southeast the on exposure we to Validus as risk is an basis,

percentage our events on exposure are larger our the taking relative a shaped to the equity to risk however, reduced to reducing to of small we And we further curve, basis; third, loss. events. Second, compared steepen portfolio we

risk our At by we grew deploying deliver that income so statement. alpha capital reducing the most statement. The our active equity Capital was the risk portfolio's the events albeit reduced returns decrease risk We forecast. exposure to time, to percentage because and into grew relative more to lower, larger and strong distribution income and to using of outcomes first considering flexible shaping our than of when events. We we the so curve overall X time, smaller points of the portfolio equity expertise, including this even are the substantially, to market the The At shifted reduced our than risk entire balance attractive relative on a compared added tools proprietary less we hurricane sheet, risk our same substantially capital to our basis. which were platform, to the risk, Partners. straightforward. less the our This the elevated -- complicated element same rates base can did one

full you portfolio benefit loss shareholders the returns one hurricane and over resilient execute we I and we this to most of of actions RenRe in These started to believe XXXX. grew at because into I the portfolios on as exposure positioned constructed that were optimized have strong outcomes. your a reduced distribution strategy here market, uniquely since

our my be David, provide a the an right Bob if now by a followed update financial will on you discuss performance remarks. This time to segment good opening the it's for performance. have who short, our reinsurer. concludes will quarter, tools, In

Robert Qutub

Thanks, everyone. Kevin, and good morning,

average $XXX across operating of Operating producing income XX%. All equity on of aspects sources drivers million and profit are sustainable business. excellent of results This quarter, all strong, annualized our return delivered was was common X we income. our

net all and up were earnings Underwriting year retained XX%. from of was XXXX. million, across profit of income our $XXX million, These EPS, the drivers XX% $XX quarter, up a XX% X $XX.XX from ago. was $XXX was are up investment increasing in XX% this operating share million, reflected up second quarter income which per These

shareholders. I in explained, superior Kevin we in moment. detail will on continue we our believe X persist, first, profit capital touch of want momentum drivers for will behind returns discuss our earnings I a to As generate management. that more will But to the and our

profits have several we to last the excess of business. been quarters, consistently what generating require grow in the Over we

free multiples. the we quarter, repurchased the shares. this more find shares our the are at starting to of integration to $XXX Since We now are in first common capital. a our We we attractive very of of point million current where end up balance excess

As we an on season. eye hurricane keeping we are look forward,

believe our leading we with as This, will mentioned, can desirable ability consistent, capture while that shares deliver we attractive However, strong long valuations. with to at combined term. Kevin efficient attractive opportunities match continuing risk that returns repurchase the we over to underwriting means capital

with second up our and or to of profit now quarter XX% starting written where year-to-date. were gross first our premiums underwriting, results Turning XX% driver

billion for and Net the We of property and XX%, specialty million, combined businesses for Year-to-date, have premiums year-to-date. combined were year. XX%. an underwriting have was ratio and was the up ratio the written XX% have over XX% respectively, adjusted for in adjusted returns and XX% quarter income $XXX attractive $X income seen catastrophe of grown our classes of XX%. quarter these with Underwriting we risk-adjusted and by generated

catastrophe to additional XX% relates net gross premiums and property starting purchase the difference use Moving up retro the segment vehicle. to increased where XX%. up and and with were were our catastrophe now written of by Property written our premiums by of Upsilon This

current impact points joint Taiwan and basis, of severe by accounting I million a were ventures, ratio. driven and quarter, activity was net our tell about property in by was effect favorable and about point up about XX%; years. The Year-to-date, ratio storm combined net development, retain overall had X acquisition property on points, XX a catastrophe-adjusted earthquake percentage or accident including was by XX% purchase by you, $XXX to this. gross catastrophe impact So predominantly XX%. 'XX adjustments gives of loss from let which Events XX the as on through think this the accident the The percentage our grew up convective gross. The year written our percentage written gross-to-net 'XX premiums. premiums reinstatement the included XX%. me ratio Year-to-date grew U.S. premiums ratio expense same the however,

premiums Validus XX% Property quarter due up portfolio. gross up $XXX premiums of were similar now earned Other property net the XX% net to million. to were written where to premiums written at by were the Moving addition first the Other and by

earn our net million we through. to $XXX we be the expect made property to quarter, about book earned of property premiums as to other Next continue in XXXX other reductions

continue non-cat -- a earthquake. Property in has was Taiwan impact well, Current due and and The total convective XX%. severe an X ratio low been The consistently year current some Overall, storms events. other performing XX% ratio higher loss ratio was percentage see combined XXs. Other accident expected adjusted accident year year we from and U.S. the current losses the loss the than to were attritional this also to property quarter book loss and ratio point contained

opportunities, to gross in and some where now is written and XX%, by specialty the and up reductions to earned professional billion, be liability. renewal the net were Casualty premiums Casualty addition our Specialty Specialty third expecting This by net Moving billion. about Validus earned $X.X XX% offset In driven portfolio respectively. premiums of are quarter, to we premiums XX%. growth and in were up net incremental $X.X portfolio, largely the

favorable ratio percentage ratio cyber, our a books. XX.X%. Specialty point Casualty transactional was The specific adjusted and credit This from accident X.X our year within books. credit losses was from included X which development, professional This The X.X loss and liability current included of combined liability and percentage impact stemmed XX.X%. points

to a Specialty $XX underwriting $XX Note reflects accounting which Casualty adjustments. purchase the and that due income reported million reduction of million,

casualty We ratio combined to mid-XXs specialty-adjusted a average. on continue expect and

to income now $XX up the driving daVinci where million, a Management and in business, were better-than-expected to growth $XX in were was favorable quarter. XX%, in comparable development million $XX our quarter Capital the fees fee up million, income results. fee Fontana. due Partners from Performance XX% fees largely Moving with

to third large us. be fees continue million, the $XX loss to stable quarter, we fees should management absent the million income a for expect source These range and event. any performance in be remain in around of $XX And of

now investments. Moving to

losses last larger year ago. which income the rates. a rates. quarter increased quarter, was asset up investment upside XX% had largely up million, was the driven from from by of million base, it net mark-to-market benefiting by $XX We driven quarter from This retained a and from X% is $XXX higher retained in treasury For interest first

are or fixed unrealized maturity losses $X.XX $XXX our Overall, per million retained investments share. in

The to from X.X%. Our quarter, we return retained retained increased X.X X.X% to years. and stable maturity kept investment X.X% yield income have duration retained last at net was

remain Rates income the about of are portfolio quarter, maturity future very flat. to we to the end the attractive. should a on consistent rate retain have bit, generate quarters be in to expected, rates the continue treasury Since investment net net third Even investment quarter income cuts fixed expect moderated portfolio our for as our and if ahead.

compared to was first quarter expenses, the turning year from finally, where which operating ratio expense flat And X.X%, down to is ago. the a but

we discussed ratio I've the to expect flat relatively in stay As the past, expense XXXX. through operating

This will which $XX were contains from continue year. the off through to Validus million taper $XX million. expenses Corporate acquisition, the

income. As a reminder, are expenses excluded these from transaction-related operating

this continues X again Underwriting of from were income source of our a income. net and second performance a was and in significant the half, rose of the be first row significant contributions each And income in stable, and conclusion, billion profit, quarter a strong quarter surpassed for fees drivers $X for management $XX million to with investment

excellent persist XXXX can superior an And remainder for that into to look continue and value. forward, year superior we of the returns believe this in and as position delivering are shareholder we we these

the I'll that, David. turn call with over to now And

David Marra

Thanks, morning, good and Bob, everyone.

Kevin discussed, over on has our attractive business the last the team X and rates the terms combined and underwriting retaining years. As focused have Validus seen we persistently been conditions at in RenaissanceRe

the this risks continuing delivering us excellent brokers clients achieved of goal, larger diversified our have With Validus portfolio, now while an premium produce well-diversified from position while complete, the puts side. deepening on to superior portfolio billion in-force we $X with our the This biggest incremental to help renewals returns of partnerships underwriting clients. manage their and in majority over

conditions a performance we focus attractive capturing our our process. preserve and This within Importantly, to portfolio exercising discipline as I our and with on will remain Property on size, provide more Even construction nimble superior market shareholders. constant arise is and opportunities as needed they returns at Casualty larger for quarterly morning, segments. a context

we Starting successful had Property renewal. a midyear with where

premiums supply not to renewing combined the which This As significant Validus is demand, largest the efficient year-to-date. it. us match new We and the Property the XX% gross success into market. RenaissanceRe written is contributor this did exceed grow Kevin and reflects most growth have by discussed, grown to our portfolio but was demand high Validus for retained there Catastrophe portfolio, and way

cat some U.S. also book. We incremental new in from growth business achieved our

between X/X year-to-date The Our indicative more RenaissanceRe achieved. than QX success Reported is in retaining Validus overall than the QX because portfolio the premium was consistent the heavily QX. portfolio skewed we lower Validus and in growth QX is of to inception written is gross growth book. the figure

stable maintained reinsurance adequacy believe strong level rate we X% down down and property have since X, of We that rate X%, was attractive. overall with conditions at to bottom have that Terms held. market highly the In rate the flat we about about and the catastrophe the driving that top. January estimate have of retentions XX% and we aggregate, programs at been remains XXXX, for and been by

underlying to grow Looking as reinsurance continue forward inflation conditions to respond demand market of and we to will cedents prevailing values. insured to budgets their XXXX, expect adjust

be While towers. filter end top programs, of also most down of the at through this it demand will will

this in underwrite position reasons. are several superior a demand additional We for to

and our at enables net top, This to while flexible First, portfolio. and managed with platform balance single capital providing the us end source of capacity low a middle owned our us optimize to large towers, retained that of clients allowing value sheets. deploy

the which first durability call and our and expertise Second, clients brokers. and risk for us our partnerships, of makes strength the market

moving Other to Now Property.

from highest events approached loss Taiwan. drove events in since a U.S. billion, the storms the severe the in a there and mentioned, first several magnitude that half are earthquake U.S. $XX As second in XXXX. X.X% PCS Bob including this convective ratio, higher quarter Losses

is in on attachment we our higher portfolio and the While impacted these points the the Property primary weather due space. in to rates achieved market, XXXX the nonpeak muted effect events Catastrophe

losses, right the As capital-intensive cover earnings of construct we chain. provide while events. risk severe event companies these the working have part that By discussed, now right capital large, fund and of level portfolios reinsurers their we believe insurance to resides for the with more are to

elevated conservative very and The profitable and rates quarter the the several has positioning. Property business was portfolio due been quarters well to Other last for for performing

cat-driven business to for increases rate Property While attractive. continue we risks moderated bit, the find have a Other

book combined of portfolio. within Casualty with maintaining and profit; status to from deeper access portfolio profit to the The moving degree meaningful a and our with high and Now enjoy reserves the partnerships contributions of while risks diversifying lead X natural We each returns RenaissanceRe-Validus net diversification generated larger to catastrophes, position which Specialty. of drivers fee first-call in us provides best income The a investment market the business by clients, with ensure a portfolio segment. and the low market. with stronger correlation Fontana income to provides from underwriting of will

part when to Specialty mix and balance the a when best our participations risk of important within and and An to underwriter cycle, to Casualty knowing is vision in the we portfolio at of fulfilling Each of business reward. and achieve the our continually reduce. grow manage being point best is and different

data loss as We the and and see year the also our any exposure. information to one well We cycle. different entire on this and claims forward-looking at select points between market to in gather risks participations trends as use development scale in

or season. quickly ratio reserving we lower our Even risk process, on more, prudent were some when structured was recognize to the news bad attractive. Specifically, we and and due in good is to book return the business which though This is XXXX our cases, most reserving increasing until news Casualty did in XXXX significantly. rates by grew defer loss XX% not our

likely to In social emergence court following continue. believe and would volatile that particular, was patterns during closures that be claims inflation we COVID

still years, business our these built actuarial data from so early loss is clients recent developing for aggregate up and expectations. and the judgment. and claims needs individual but they data, from market are Our time what season, to picks more book It within far, are independent are

addition we adverse adept reserves reserving in overweighted our use more development with of to and In made covers. years have exposed about favorable years prudent total of net cycle to casualty our management has towards XXXX. reserve our pool resulted market XXXX to of the process, X% This the soft being

deteriorating recently, business portion in professional meaningful of decreasing a More amount. by D&O environment by a to our liability responded rate we this

some continue Currently, recent We programs, accelerating. liability. is In up with inflation see rates increases in have general on loss been to keeping rate years, trends.

We are the between pricing to best profitability constructing we to order and incorporating the this portfolio into maintain our ensure risks differentiating are in in future.

focus although towards book increasingly we X/X is from forward, continue the risk-adjusted best conditions Validus growth Looking returns. relatively significant the the quiet second is period, of holding positive trends from our terms seeing portfolio. where and renewal are and with Specialty quarter Credit Within the Specialty, and emanating

In and performance. Demand position. Credit, to volumes, been mortgage has reinsurance line healthy in see attractive, origination we deals with underlying lead we for our protecting at successful but remain have continue lower declined

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

Kevin O'Donnell

persist that, will an And industry-leading us -- at David. net with we'll while open environment the deepening retained solid and shareholder and to quarter shares portfolios income. risk are We industry leading Thanks, attractive We Validus allow investment driven current it we which objectives. at pace. fee repurchased And successfully grow partnerships up excellent will by had value for RenaissanceRe our financially confident customers. return of questions. balance midyear our combined We continue lastly, portfolio, and underwriting strong multiples. shaped delivered and We optimally another underwriting the to into an our at renewals XXXX, with favorable

Operator

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

Elyse Greenspan

premium question a My on first question growth. is

company, of are understand struggle more you Ren the book have You guys far just that there, well out Could so are year, us the Validus a we both the last understand from to at this in outside when reported that some that the growth on what From seeing guys help like as color you're businesses. of us good you business. I you some provide both the disclosures look in year? growth bit businesses little in emphasized think that seeing of legacy in some the Validus to information growth as you

Kevin O'Donnell

start, some the commentary that I'll give I'll then as Yes. Dave of ask to We're proud and we've achieved. growth well.

to back to growth with from billion go upside. $X.X increased you If expectations X/X, for billion $X we the

the that, written A more than have from We $X lot highlighted, Dave billion. Validus as of acquisition. comes

think rather a I at than a look quarter. way is the basis we that growth simplest from year-to-date

numbers, billion which growth So percentages, very $X-plus of additional premium. you're the year-to-date they're reflect at if looking strong that

portfolio book Dave, was I think our quarterly the want little with X/X little to portfolio I bit quicker a touch that, misleading second own came And quarter little on a what much a number just more you weighted than to the to Validus know, more. is a compared because if a book. portfolio does. don't the bit

David Marra

out we line lines of portfolio. Yes, every got exactly. some able add beyond grew, Vales wanted demand as the We pretty much to that. we that And were the to incremental then

the fully The some supportive So growth. and is we're Validus in that's very results. market very also and partnership of with portfolio showing up happy RenaissanceRe of additional business, incorporating their larger the the

Elyse Greenspan

Specialty Casualty reserve the seeing now I charges a stemming it social called your in is on is points follow-up inflation, much we're and VOBA and Bob didn't lot companies. of move lot my that ex ratio uncertainty that book, right [ of from then for with right? combined accident Yet really adjust economic X.X the like a year Specialty Casualty segment. there out, ] primary And year-over-year seems If

look just on the that loss are VOBA. just to how at I'm and moved the haven't How into you -- you much picks understand that the year-over-year your noise we highlighted factored trying numbers ex that's being

David Marra

came And and subsets that The as nothing this major normal kick claims some on might volatility. ratio it's that to see led and quarter we are Bob of couple the the Elyse, of business. current one. year is are mentioned that trend. Yes. that I'll David. volatility we this loss elevating a claims classes, it It's in our in which expect accident off

are into we've type and we some Those Overall, umbrella talked we're liability. by the confident to our ahead expectations stay trend trend. of monitoring general about, driven still our observed auto we our losses that several areas by years, We're them. same increasing coming years renewals to of the in according we're and into in for some trends casualty pricing those sure there. of current make are numbers layers, developing auto losses, future watching driven localized, we are reportedly Like

Elyse Greenspan

And then one. quick the return one quarter? the called really business, million Did professional some that margin on any $XX Specialty The lines a premium have of in as out of impact Casualty sort. of guys you

Robert Qutub

No, it's not. It's all negligible. I mean, what to actually these are and will normal attaching. have adjustments professional adjustments underwrite you for based across or I'd off happen It's we is swings of risk you which of like go estimates The nominal. that large we minimal. There when back one is negative client the the businesses, impact Elyse, tend adjustment, growth. liabilities, lines underwriting what except very it changes in on margin trend, large to but have is saw on a was question, in think

quarter optics It's the just doesn't year. of underwriting year whereas last this of change course the this it this There the the affects fourth written year gross you'll written the the doesn't last margin. with under and that a recognized line it and is quota different. top our was recognized gross over how the difference year. risk, comparability they basis. It see It control Validus' the until was share It change written, quarter control a on over you get year we'll year-over-year on it was year. and and premium into under comment Your recognize all in the in

Operator

with We'll take from our America. Shanker next Bank question of Josh

Joshua Shanker

Bridge hearing going other had is bit disaster, and to deteriorated Schnepf and like didn't what ratio getting but this a in David's I'd to in Baltimore more ratio comments accident you there? current about segment about just little bit in loss there loss the dig given the for talk year we Casualty quarter. underwriters a loss or What's trends at recent George many in obviously years? the conservatism the XQ, items worse the the we're then little margins have on And

Robert Qutub

$XX in address and the and if million try about $X that you you me and first my quarter, of Josh. That's heard in In of $XX versus numbers was was bridge, to for the amortization million. Let acknowledge ratio show back underwriting included one, And show differential. why was cash-on-cash to me casualty comments, purchase over the why want adjusted go million in that's combined it's that's there while accounting prepared really million income, it an we $XX you $XX.X refer to of mid-XXs. both in talk those we the million

you to I you So and premium. through ratio and number. adjusted at That's net back of look look would billion earned $X.X against the probably go combined the can how get that

Joshua Shanker

And so out to given going purchase have it's year that function situation in now, X from that accounting step goes a difference?

Robert Qutub

of the continue we'll fourth that. It to next down step half But quarter. significantly by quarter will each than of year, come off indeed, less probably

Joshua Shanker

do Okay. And then... math. I'll that, try and

Robert Qutub

Mainly acquisition in ratio. the

Joshua Shanker

loss the mistaken given the were no elevated specifically expectations, relative and whatnot. quarter ratio ratio, casualty that cats loss the to about about impression? that what feels in I So there Am

David Marra

this Josh, is David.

of of Bob are major that points like mentioned. a right couple were and of classes. there the fall in one-off couple You're claims a our that subsets It's

more inherently reported. just claims volatility there's X were So there.

booked the in we current those So year.

the and curve current books indicative in the small shifts business. in year can then are expect event-like relatively there's has single volatility ratio. is in this These loss we think of to time would It and just curves. that of in important time changes our trend. changed of one there's happen And from things losses our of None I losses the is

Joshua Shanker

a disclosure covers, on always triggered was maybe And that large number appreciated. business on was be was side, any I then was that quarter. one this Property color more of a And Any Okay. the would there the event bit of things aggregate business I that couple away what covers aggregate of where from of the how a I moving writing it your is you is given thought ago? appetite was for years. suppose. couple Can and the it talk about was well-priced over market surprised last years

David Marra

will but Josh, aggregate on There aggregate for provide the some appetite This market that comment level attach are There's is covers catastrophic the very little I David. levels, covers. at can that. in will earnings that proper that market caps those storms existent the convective things in days. smaller we're in to that these severe not the really seeing the are the in and happen protection the quarter, other that respond happened

Joshua Shanker

But they yes? in have in existed and you quarter, this losses your them

Kevin O'Donnell

No.

loss the and component something market. was what is events, called comes quarter deals that in think not not low those earthquake prior I really that, -- out 'XX of market for but elevated significant written aggregate from it PCS -- what are the the in mentioned, it's we not a the we in coming from an as and was Taiwan Dave

Joshua Shanker

seems like release... It the in press

Kevin O'Donnell

I No. know.

So regionals it's in as but some They exposing would traditional same of companies prior the and are smallish in not what component structured appropriately retentions the be narrow of -- from to level geographic tend reinsurers an the was their market more aggregates much XXXX. aggregate aggregates, not 'XX. the the have but These that are or -- that were low more that -- program, aggregate narrow appropriate they're to be to the Midwest are footprint.

Operator

our Tunis next Ryan take with question We'll Research. Anonymous from

Ryan Tunis

Specialty. Just a question, I guess, on

of more over time more specialty the of is and have X plus, there's I XX the with different scenario favorable is that and the been normal quarters, say look the had past to the X current kind the of XX. X the been you'd you we've There's accident Specialty like that types that at over XX it kind of Is losses quarters. have expect? kind year X that the of if on So loss fair type of ratio XX where over-earn

David Marra

with volatility year, range the Ryan, of think year portfolio. come some diversification the noted and The some that in happen the the is and ups David. range in that always current concerns downs be you some I some not range the of prior losses There note is normal this is that something -- quarter, can that us.

Ryan Tunis

And as much it evolving? it's now mean, read for into is it. mean, out. Got coming on the issuance But changes this the like you're type as Kevin. environment not texture I Or pretty I cat has little some guess to then I'm disciplined more what are sure a Maybe competitive the just in bond in capital yes, of that been quarter. capital seeing how of of composition? the it you there's been? bit terms seeing Or just I a still lot right market?

Kevin O'Donnell

we're is market. into what in capital lot capital billion So the of into comments, my that But we happy the deploy the the coming $XX -- mentioned limit We've purchased. new a I industry. always of saw to created also

a be that's the what balanced coming between demand market pretty looking the we're is of amount to deployed market. seeing capital So to and that's the

on the and the pricing things happened like reset trend think we're the And 'XX persistent pricing. new the trading negative So but reset I that financial in back touch important is to not of in the any in level, think a one we're on is the 'XX -- I around market, market. to

demand dynamics. we watch I equilibrium. cat in state and And particularly -- supply of always I relatively a think good think, market, it's it's the property in

Ryan Tunis

margin, was what And change your was any said that by you was prepared on in unchanged. guess, the that? are were what relatively sorry, If anything -- incremental? meaning that there I you conditions remarks If and there terms

Kevin O'Donnell

that? you want touch do to Dave, on

David Marra

important removed thing most I focused that the be that continue construct and held. And retention that's losses. is thing portfolio the are mean, is allows piece Yes, most the on. the the mean to from the important to attritional that us definitely. I we're retentions

Operator

from Morgan take Huang Stanley. Bob We'll with our next question

Jian Huang

on little gears would bit are A deeper expecting the just shares season. much It can peak lot folks of so that really on maybe a this a to of of hurricane to ahead you I'm the of hurricane bit active feels season. right going unusual I that. buy for little fairly a little a -- But repurchase shift you repurchase. thank the opening all, if first dig remark

hurricane approach curious not here. on after season? your wait until the Why Just tactical

just given level a of the And sheet? comfort color your the little so around Maybe balance we you're continuous and kind the doing have should repurchase repurchase. as around a of bit you tactics this strategy on the more just interpret far,

Robert Qutub

had point I'll my Bob. of to Point has and significantly. is of to comments. capital There's I base that you this profitable back that results increased highlight drivers prepared X couple a you -- is we've our quarters back tried

capital. had we've that to the ability deploy So

feel about. So return ROE, still -- which XX% and great generate I

liquidity been and the with freeing bringing of that Validus integration have up We up some capital. includes

go and to And seen so back buy attractive capital. some we've opportunities the

to of attractive with shares in I being to and have luxury able back that the my As Kevin was we said buy about closing ability talked into section that comments grow the David value. markets in good also at

Jian Huang

Okay.

there's no... really So

Robert Qutub

nothing's changed And in our process. capital allocation

Jian Huang

Okay. for all No, I really That's actually appreciate that. me.

Operator

our Kinar with from Yaron next Jefferies. take question We'll

Yaron Kinar

for for to may book. it was maybe a in I like be what seasonality And Validus figure wanted given out to the difficult as growth the organic realize second. back outsiders go I us different growth to

think that comments maybe tail we us think apples-to-apples growth an to risk? after I slowdown considerable organic in that so, to does opportunity wondering, seeing of of more way a going I'm you if in the about And about to and you're moving [indiscernible], higher can a maybe offer But are comparison tie Property? your and

Kevin O'Donnell

across question, that design Yaron. look try building on a way portfolio it full The part our outcomes. a we about the our at we distribution basis in kind certainly big sheets we think we the returns and for on the structured Thanks set has Yes. portfolio our Capital to Growth this way balance forma risk then of management, and best partner used of year. a is the pro played of the seated. way that the

for lot the So not I that's built there's would say in we've our how a changed portfolio. appetite

one create. the disciplined Validus between the to organic the between overlap say of of would prior There's and been like to very we've the portfolio think we the reasons acquisition. portfolio and That's we wrote what a that I RenRe heavy so Your likely inorganic, much. question wrote what size

premium we ability the So and it a more always way But what of wrote that we Validus billion land as organic it's I because Validus that could changes portfolio. about say growth to is cleaner categorize talk would legacy wrote. legacy our there's to attributing largely it across to $X-plus RenRe think what

Yaron Kinar

maybe me the let curious, -- given to Okay. just Casualty am and I Specialty. shifting And then reframe this.

related You we some particularly the favorable more GL. pressure said, did That years emerge 'XX mention accident accident are years. that auto and the reserve being seeing anything industry through recent weighting then for for more for 'XX, is

you talk about accident develop? years those how can maybe you're seeing So

David Marra

still Like are but green within my our in said to comments, the we developing the lift are prepared continue to David. I those season, years is expectations, This far. that's and need so accident in they good sign

to our construct commercial want the we When that resilient the overall we portfolio bar. have like and there are avoid that risks to think the portfolio that are in the to really of to One, we ensure several things inflation, auto things crosshairs like about. construct it's most plaintiff

highest best. have use our also We of then on when like weighted we management, order the cycle return is the portion in talked risk about to risk

to didn't used loss in We areas depends adverse order our reserving manage take going some were lower potentially rates overall That and significantly in an also to resilient have environment. recognized just process. pool is up which pointed risk inflationary even We've early, expected in a bad more leads would of ratio. an loss picks to development the down covers though and news we stronger reserves,

Yaron Kinar

auto-related green. through not true And much, seen so years for GL maybe well. as you when they and and That's accident just you've develop any to 'XX 'XX really reserves clarify, say the are

David Marra

really write commercial We auto. don't

subset but Commercial So it's general a liability, liability. of more be don't... would auto we

Yaron Kinar

through Right. thinking yes, excess I was liability. just

Operator

take with Brian next will UBS. from our We Meredith question

Brian Meredith

quickly. just clarify I'd

in So you XXXX any adverse didn't through Casualty and have Specialty? quarter this development on XXXX

Robert Qutub

was be always the puts read portfolio, but and really have and to going anything into, going to Brian. there's takes. across puts I significant We're takes to nothing mean that

Brian Meredith

the And of they those would happened. that It's I on appreciate losses, typically that of that. write? your just you curious, to just you of calling Casualty curious I'm loss losses of couple expectations? when business out kind in I'm guys think I and clarify kind the just Specialty, then want the I the types of be

is Or these the that force as fairly are write? that got bit will Specialty have you understand to in just something little Casualty regularly. the unusual trying these more you've I'm [indiscernible] business and that to business a why

Kevin O'Donnell

Yes. It's a question. good

not. losses, always whether actuarial there's the and comes portfolios. think in, These kind an whether small or in are they're loss judgment it's as in relatively of contemplated I curve a when weird to

the outside of built initially the how thinking So really it. these about curves those, development for we something growth, extraordinary when and were

have decided attritional. And portfolio above we these So the they traditional would were if and don't book consider been a the losses attritional. to I would say that just them absorbed more unusual. bigger I within

Brian Meredith

that What's Validus weighted of kind third that heavily And third impact quarter. one quick happened the think Will on sense. you That the quarter? going third happen kind quarter of Validus quarter? the have the just David, renewals follow-up. Is more in makes to I mentioned an second in impacted toward less? the way growth

David Marra

reference book is with Yes, to renewed. especially pretty much the XXX% property cat,

in written percentage So we that the for the annual. premium growth proxy that see is closest

Operator

next Shields our KBW. take from We'll with Meyer question

Meyer Shields

with way a Validus? sort of Just in that. follow-up on you gross difference accounting written the differences any Is on have the there of legacy that quantifying based premium

Robert Qutub

the quarter, about it But example, quarter. that. adjustment first started than made on lot reflect we a into the for we when that correction first have would was accounting biggest in we side in purchase shown on -- fourth The haven't the the have we that was shown. higher would quarter that No, talked and then Validus

Meyer Shields

enough. Fair Okay.

Robert Qutub

about is, loss in, come quota think is about they shares written the renewal excess over -- it lumped that If it a quarter in those from -- shares side. in you slower whereas all that comes of into loss quota written It's use the standpoint, it's in time, of the similar think on excess the written period.

Meyer Shields

about question, made for way of of you compared and I different guess, getting of in Kevin, just expectations, to We're a was But looking premium I production a that. Right. lot some in moving... ballparking comments terms questions second things

Kevin O'Donnell

One always done thing our the accounting, way that's I'd we it. changed say we've haven't

Meyer Shields

lower-layer moving impactful in that I potential of maybe this how risks comments little understand. approach is No, on expected deeper premiums to some to your away about returns maybe is and completely I there new hoping that the go was terms implemented. a of as are from

Kevin O'Donnell

about part the the is This premium?

Meyer Shields

Yes.

not year? move as you premiums year this the those that some to approach, had in mean change So away risks, last from are I going manifest presumably, we

Kevin O'Donnell

Yes.

to then level of start our and kind the execution. they'll industry -- there's at So

Dave more prices of the losses substantially those is more commented, emerge. because have to retentions buffer Both cover and 'XX, premium for remote, pretty we increase. statement a income As and increased provide to when risk

to balance ceded with by had there's more We we Our broadly balance regard risk came this to vehicles, we pro to comes of year. a portfolio And lower the that events, then shaping compared events. originally first that's upsized market forma. curve And premium. sheets we greater us targeted Upsilon smaller if risk steepening. partner we and different again, as really the mean ceded deployed through That from using so then, in what have was where our to so share between our our a in which highlighted, steepen optimized larger I degree will

than the balance statement from equity So of percentage income the a sheet, are exposure will basis. a share have but both percent down market lower

Operator

We will Citigroup. from question our Charles with Lederer take next

Charles Lederer

diversified to in down So third-party as starting reinsurers some there. and earnings the capital? layer change of X/X Specialty, appetite Property maybe Can one business large might given at in to you talk insurance your media may broker the that and market recently book noted being the that and on lower protection you're willing discussed write be more whether well, provide in whether seeing effectively in

Kevin O'Donnell

Yes.

think would I have like lower buyers to retention.

perspective, always, there's So opportunity from something there. an a sell brokerage to

-- there market the disciplined. sold, be market if the I lower will are think layers

an shift levels in overall to So about I'm were available XXXX. particularly not that retention concerned the

them. there's but potentially about retention programs. home seeing our a if actively seeing I And opportunity vehicles buy happy have than wouldn't brokers some point, add downs as opportunity And it is. on the anything? better Dave, say to We're for sheets. think I that balance growth for be you we different look for where they an this There's also have that there. at rather own we're conversations where would that an the always might

David Marra

I agree. No.

will the to continue we happen. to and layers, come the top of demand as play across I that new to expect We're spectrum. able think most

have network we position to we're suits us. and our So optimize the that tower layers top throughout then capital for as the able

Charles Lederer

Got it. different question. And guess, I

it's as this. percentage we you at noncontrolling began anything there's or you the I sub seems at was underlying look been that lowest if what's Can the of since the if kind like notable? that's about driving disclosed of talk interest operating a Just it you that disclosing that in level, income, think that operating

Kevin O'Donnell

a always little comes tricky. a That's

through. back has to sessions a our to some with third-party don't the particularly come us question that? do little on this or technical think we're our risk sharing bit kind wrestle with to capital partners, daVinci. of That's of of for we doing you I why But kind a

Operator

our take will next We BMO. question Mike from Zaremski with

Michael Zaremski

Back teens think demand to the labor inflation. about increases, still we lines, U.S. example, the a gave just guess commentary current I you the there's for limit. of on personal inflationary for in environment lot on

talking So it of from an makes 'XX. about sense you're viewpoint remains kind in outlook that demand healthy

denominator of believe. we growth expect those maybe give And to $XX do the pace historical? or dynamics said went the you so when in potentially the increase in us the up like actual you some around demand U.S. think billion, I by demand about 'XX perspective You what demand versus Can actually was?

Kevin O'Donnell

Sure.

than market cover back seesaw they do So been the to have I demand purchase to of desire purchase wallet more to -- where coming think bit had a they able a has been it. hasn't

been through more as top being primary desire and coming on very limit. market, layer their executing particularly on It's people are think constructive to for I rates the premier. purchase we're seeing us with

would issuance -- just say cat-bond limits U.S. elevated that $XXX for -- around as the cat right the seen property $XXX above You've market billion. just in also probably I well.

it's So growth rate that. what's something probably XX% like or -- a

Michael Zaremski

it. Got

guidance that. bit describe again switching And -- this the next despite, a up But down up you can yields I quarter. question, on but gave to this flat, hope being a guidance gave giving if believe, about retained be I flat. the investment for to you quarter. income maybe went is gears at And you wasn't just going look since caused And talked guys quarter, you're you flattish know relatively you can It investment it what That's last fair something maybe it Okay. I I income. helpful. call

Robert Qutub

Thanks.

grown and we million about achieve on more $XX with to million cover $XX investment duration able same. a were but prepared I have I change, the higher mix rates, -- $XX little the that plus the stayed The levels of in to retained my asset comments. portfolio tried think the million, bit

Michael Zaremski

it. Got

you side So that it's didn't the guide... asset

Robert Qutub

[indiscernible].

Operator

our take TD from Kligerman question with next We'll Securities. Andrew

Andrew Kligerman

Quick follow-up on on Casualty. interesting earlier was It an question Brian's response.

small losses types planes limits You you said there of little paid were texture a in out that the weird Any those you give claims? the on on chance portfolios. relatively could and

Kevin O'Donnell

Yes.

give detailed sense. trying is I to think of understanding and we're business an makes more probably is how the performing. that's What

And for that portfolio. up at some that big trying relatively was then If really homogenous, who and come and GL, category. build are creative in in come are there's of There's look lines you one products up to that our there there's casualty people them portfolios. transactions

provide an come was them business up working a with to we market to to develop It way emerging us see with some where broadly. were capacity for if the would more

very an to the portfolio and small loss make and we a unfortunate we So see types and market if looking can of the in pie for an coverages. that loss were area additional reinsurance some sell unique bigger

Andrew Kligerman

maybe kind limits. Any and way get of broadly in range have more to to you maybe limits any the that a of topic. writing -- the portfolio, And broad and of such but sense way average you're casualty a Okay.

David Marra

that is take I'll David. one. This

A lot share. professional of that liability quota casualty liability. So we general of spread broad is and write a business across

then we million So we risks. out million puts limit, a XX% insurer have $X on if have an of $XX of their and each that,

we're down of building that said, as highest lot that and in both Kevin portfolio a like we that to have constructing up our bottom this, decisions, we one. top and seeing when gets or then then we're on risk placing it had groups then up, I those of all up -- look aggregated all It's when the return view entire our risk risk. into market, bets and can make and portfolio at that then order the in a homogenous tracked mean the our be on

a class and the and we it's how So it's limit, about time. structure within less about over portfolio any more X

Operator

question Evercore. David next our Motemaden take from We'll with

David Motemaden

made how given loss and a just book to have activity on could the was been you expected just just be within closely Any I to learn. environment would in Casualty little the and working interesting on with you you've changes portfolios? up distortions the the bit stay actual guys elaborate those hoping cedents to

Kevin O'Donnell

great versus underwriting process, it's do in track a expected. and we It's question, Definitely. day-to-day what our we of actual part

able against and develop advantage is we think then that an have then We see of over, benchmark clients' company also data only really about to market our over are picking how have an view. and whole entire we to market. collate say, between and we our And the insurance own scaling may data piece participations their the an access data, essential risks. time It that is that independent

the of things part commercial process. the the like like And have underwriting recent -- up avoiding shift as we've constant that's a that portfolio things rates in and made that's in shown auto, as reductions reduced, a that

David Motemaden

maybe management you season? Is a if then spoke And that willing returns take of value color wind ahead on percentage Southeast would lastly, are not helpful. about why of percentage lower it. talk Could be Got just that that basis. just having risk on but a of active some to you're active equity up a dollar equity you more of higher basis about just so around a wind solid? potentially Or

Kevin O'Donnell

Yes.

had. do actually it that in some the we across what think more the of of get we're set the full distribution success than was We trying anticipated is -- of I to had returns outcomes. best we retro purchasing

steeper to So I thoughts think into but our able to an a in a were going a wind active would leverage the into little be hurt that this we income of which didn't bit looking curve, it statement that, at season. on of what's season, protected small piece an think active kind more

to the transparently the curve But across book distribution. we're it and really it returns to that the was using how and see that writing ability at look can hedge about things we're our shift the

elevated a the the is portfolio of piece and to enhance pieces, to it's expected it, big small way a shape was returns. it So very frequency it

can question we I earlier to Actually, NCI. think from Charlie's regarding the come back

Robert Qutub

same to our the nothing's to. JV match is our of We the relationship think NCI. vehicles. in in which I subscribed the still Charlie, capital that, going the principles Yes, Look, risk back have with changed with any we that

look in million. the went joint Actually, at year-over-year profitability they've increased increased, accretes from seen when partners see the to the that $XXX -- NCI catastrophe has you environment. our like, million the DaVinci, for benefited example, that actually quarter. from to actually low in million you we've We've venture $XXX DaVinci's million $XX And supplemental, by like to can $XXX year-over-year seen from

So the reflected value well as has ventures as well. joint proposition you've our as for our in what seen results been

Operator

over there And additional closing time. further this at questions are for I'll no or O'Donnell to Kevin the any remarks. floor back turn

Kevin O'Donnell

excitement today's Thank performance. for the what call. strong you we and came opportunities portfolio for continued Hopefully, for enthusiasm that joining our is create the across and

you you for speaking next joining So to quarter. look the to call, thank forward we and

Operator

Call your XXXX day. concludes RenaissanceRe and Quarter time, Webcast. Thank the have Second this Please you at and disconnect and a Earnings lines wonderful this

RenaissanceRe (RNR) 25 Jul 242024 Q2 Earnings call transcript