RNR - Earnings call transcript Q4 2024 | RenaissanceRe Holdings Ltd.

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Operator

Good morning. My name is Katie, and I'll be your conference operator today. At this time, I would like to welcome everyone to the RenaissanceRe Fourth Quarter and Year-End 2024 Earnings Conference Call and Webcast. [Operator Instructions]. I would now like to turn the call over to Keith McCue, Senior Vice President of Finance and Investor Relations. Please go ahead.

Keith McCue

Katie. you, Thank welcome Earnings and Fourth and Quarter Good Call. to XXXX Conference Year-end morning, RenaissanceRe's

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

First, some housekeeping matters.

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

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

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

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

Kevin O'Donnell

wildfires. Keith. and joining morning, by by our for in impact sympathies Thanks, to the begin wildfires perspective they of my on provide to today's ameliorating the some community. role call. California the Los and you have impacted today everyone, damage want to comments, that I significant extending At caused the Good Angeles everyone the will our end of thank I the

had full 'XX our to important now Moving performance year financial a results. year across We strong metrics. most our

share. billion adding per as casualty investment catastrophe over demonstrates tangible we our This year trend. losses delivered In per $XX share ratio. underwriting, which third-party plus management. primary and XX%. $X.XX in drivers $X.X a million, this in income as accumulated and billion, income $XXX ] combined or Capital value billion income exceeded with capital adjusted an exceeded retained in $XXX Partners, was billion our XX.X% book leadership in X of $X.X investments, of industry persistent income In Our Operating was metric, dividends down $X.X grew income profit. by shy by [ Breaking fee well was

over continued all year a began of second the including since the XXXX, at in depth the share. management, our an of to repurchasing shares was But will per our you active Repurchases price regarding the $XXX purchased of Bob performance. of greater quarter of $XXX we year. additional million quarter we proud speak during in results $XXX little average have shares with quarter. our An accomplishment overall, XXXX, capital and million of our the share our for fourth I'm

results in Moving now XXXX. strategic to address our

as financial Our achievements were equally is returns. our impressive

outstanding. multiple allowed the and Validus our partnership enter was as our or across become and Of the efficiencies reinsurers most was and Validus with world career. start substantially of the in retained AIG during From capital flourish. to In execution combined portfolio. the has platform met course, We underwriting all expectations significant our accelerated summary, strategy We finish, of of exceeded generated entities We prominent. result one markets fully us operations. our in our into to the transaction best a team continues my Validus the to measures, largest one the

on comment our Specialty Casualty segment. briefly the to like performance I'd now, Shifting of and

however, one-off adjusted drivers few collapse combined lines. is of are There the in Baltimore trend of which loss few this general we including year a elevated The year, bridge ratio year losses. the XX% largest For ago. liability the XX%, the an from up a a and reported increase, is of earlier driver,

up strengthening this reserves. job have done year and We prior a general good liability with keeping trend

performing well of quarter of -- given At This with lines reserves. favorable our are casualty the comfortable note some any is others portfolio. year. and for a our and under benefits a specialty we and I result, Casualty are one are should development that had Specialty the time, segment remain As has some both underperforming. diversified lines the

falls category liability the underperforming General an now. of right line into

and our rate we XXXX and last second the we that claims of customers quarter, closely regarding As its is with management. and observations engaged the trend. underwriting industry in shared improving discussed I believe

In forecast. And our been progress addition, to that increases have has an accelerated they rate extent underlying believe overall, exceeded I encouraging.

January continued our That our of proactive said, book. management general at X, we liability

have We where reduced programs exposure we saw trends. greater a loss on to

our part rate. next We be over expect small. several of be changes will earned years That in impact these overall and be the by the will increased relatively spread to will premium offset

expected. were depth, found to to as our for should some want January is the single still one will cat of to on which the renewals cat important they keep property with reinsurance few in over years, touch the in about XXXX. briefly remain outlook our keep but property step greater for high top mind attractive, grow, X rates best. cat portfolio opportunities that line change rates down It's and flat. past and I renewals the in We Property proceeded David address digits. premium our

claims, otherwise disrupted. before remarks. to the provide the level more over hand Finally, will our rapidly I affected The to strategic we hope of reduce component had his is detail the -- homes paying this catastrophic. wildfires protecting destruction many lives the the truly wildfires. important have An our people of address By have communities. I about of or who California impact call wanted lost David event is in areas Bob, to in the of purpose their

key However, a few I would to like observations. provide

is peril, this both loss, for in to the event period. respect dollar wildfire especially with of terms but a absolute return tail First,

steepen magnitude to better of severe the loss implies models While in our our both will our vendor frequency need return tail the as the in the reflect models of as period, to curve well well higher models performed events. that a assessment this of

and natural Second, are more catastrophe becoming larger losses frequent.

equally driver change human Of true, is this. is is however, growing course, climate to contributing that behavior It one also of losses.

impact was building X.X% approximately a California We of land materials as negative that the combustible insured loss dense will loss. currently to with practices. wildfires example, be management interface wildfire the wildlife was estimate in contributor For aggregate urban our pretax major California

we billion. is net This the $XX wildfires, million market $XXX of could So that variation. estimate loss uncertainty preliminary. to negative pretax to cause of a expect And impact recency due market the material subject based would a of meaningful on

There including factors including are component large market additional have The elevated other high likely damage of geographic broad of living similar loss, across is on in values. the character level smoke numerous for demand relatively a exasperated The to search areas, housing expense The the of prevalence the of temporary fine the properties. and a of cost competition by art damaged replacement to size influence impacted values area. a to contributing scheduled coverages. properties located the of

Fund. Assessments recruitment offset from the potential and California for by plan for the fair recoveries California potential Wildfire subrogation the future finally,

the These factors market loss down. billion estimated to up can insured or shift cause $XX

As potential the around our market impact our exposure from and them develops, levels The a sensitivity California at loss expect We X.X%. reinsurance. wildfires and remains expect tested for different impact supply to would scale. are industry the our net we industry loss negative vary accordingly. at should We demand negative losses affect

increased catastrophe quarter The our be elevated impacted. third will are demand loss create our losses. for consecutive catastrophe the programs of first of products. will property quarter Most This XXXX U.S. of

rates our providing do increase. the property protection order have need the states We to we even the continue to In capital firm however, that appetite and to catastrophe so, or and clearly like clients have remain need. California

loss ago, much change, risk. in underwent our of to with rates the customers relevance terms protection continue, of time, The adequate to the explained At Since the Two magnitude would of reinsurance. to the change. to benefit and paying as we sheet nature value allow a our loss that pricing a step and industry our is California balance wildfires the years provide market paid tail protection anticipate this is of which at the against consistent discussion of California providing wild was reinsurance there I were continue event, step the the been that the The the step protect I the demonstrate the once value us conditions. believe this change not growing, appropriately approach has again and customers. appropriate example level, if of good regarding the we to of we is this protection.

turn initial Bob performance it our before a over provides in for Dave more concludes I'll our segments. to financial now the detailed comments. renewal the to discuss quarter That my on update

Robert Qutub

value of and prior cat of the everyone. from Thanks, a had not Building opening good equity Kevin, billion, $X.X accumulated highest We common change book Kevin's XXXX in by dividends we income the remarks, on on and XX.X%. return per year. share low a in operating operating was morning, year an tangible is grew with plus year. XX% average our history which strong

diversified underwriting our Against In returns. provided losses exceeded billion. was fact, $XXX this and backdrop, industry resilient portfolio superior

because our profit of to more Fees all for These strong In XXXX. drivers than X contributed income to tend be able income addition, results operating profit us we're net drivers our stable, achieve of relatively year. for total well the outperformed. positioning of investment operating half and

to fourth more end a time $XXX but with to quarter on income solid that to I equity $X.X The billion. a this average over annual to common outlook, my we most start the would spend achieved I was and quarter. put on and of plan XX%. X our we year. return annualized of in discussing perspective, today and doubled delivered than fourth base the million years on operating like a results results of comments has To operating common these equity few

or income combined result X% equity with quarter. mark-to-market Fee million of a was million common net drivers income underwriting investment million, XX%. million of $XXX investment with on profit, $XXX X and investment of XX%. an As negative loss X% income reported we was net of annualized $XXX return adjusted income million, for our of was a the average up $XX ratio $XXX portfolio, Across retained an up of losses in our

highlight these a related are results. few to specific to There items

XX% points a events, we from Hurricane the a reported of XX in large quarter. segment percentage Milton. from impact XX property reflected point combined This fourth ratio including percentage First, adjusted

we Hurricane results. $XXX quarter million our As a in overall negative event, reminder, net Milton a fourth and a is impact reported

the addition, segment positively of impacted Property favorable was development. points XX In by

an in loss ratios driven Second, and and specific casualty activity quarter. business. was by the in combined adjusted XXX% we reported elevated ratio This our Specialty of loss some Casualty

expect to this average. the continue mid- time an in from to to XXs adjusted volatility on expect and on upper in We ratio combined time business

leading help investment in retained an up maturity drove similar to higher in net million maintain investment last treasury and from retained quarter to yield perspective, yield $XXX should XXXX. This our X.X% losses. moved the at in yields levels Third, income quarter. from mark-to-market to X.X%

benefit duration Given portfolio, relatively these quickly low we can yields. from our higher

management. moving now capital to And finally,

platform. our significant $XXX call, last the the this we mentioned million. balance purchased onto additional last capital of in liquidity January, freed fourth as Validus quarter, As we million. shareholders, we some In we the year worth $XXX worth shares excess repurchasing up In returned capital brought to business we and shares

So million the at average in XXXX, to per since buying we've million we time of since worth we last shares have $XXX we repurchased you. back repurchased short, And $XXX our in $XXX share. shares began an price talked

consistent in managing remain capital. our to approach our We export

First, Even deploy shareholders. our and California desirable it and opportunities; capital flexibility to our return we underwriting into significant us opportunity. plan second, strong with liquidity and wildfires, after position to provides is the and the excess

believe anticipate at to demand XXXX. demand in We attractive this that will for valuations. As we repurchasers Kevin underwrite increase reinsurance also able while being mentioned,

Turning year. our for now to results the

net in financial the of income the XXXX. Fees promises $X.X was of XX% and flat As investment from although the higher XX%. up on million, Kevin Underwriting $X.X with level acquisition a income investment year, billion, billion Vales from were was losses. catastrophic discussed, $XXX prior delivered income retained $X.X up billion, with we

discussion and Validus. now of and where successful $XX were in XX.X%. incremental now results, written XX% a almost to $XX.X been of written XX% casualty make up some adjusted Growth the premiums portfolios adjusted XX%, reported Property and our starting gross billion, These ratio ratio by year on capture the our to and premiums Moving driven for where the able returns Net grew was the a reported combined XX% greatest opportunities. our adjusted XX% combined was the to for risk-adjusted we underwriting, ratio with a billion, were combined year property up XXXX ratio. the catastrophe by book. and gross combined XX% have was we lines specialty integration strongest,

of events. accident where delivered and catastrophe year XX segment Shifting XX% to property with gross net written were Property now XX.X%. prior in written premiums XX% catastrophe our current and property ratio development from year of starting of a the reflected excellent up an were combined and results This premiums favorable loss with XX%. up adjusted points XXXX We ratio

Our property most point in loss and impact Milton. Helene XX a with percentage being current large included a from year hurricanes catastrophe the events impactful results year

written other the Moving written net first premiums and property XX% XX%. In premiums were to earned now were where up premiums of net XX%. were quarter, million. earned up gross $X.X approximately expect $XXX we premiums Net up billion,

This was loss loss Milton. of For XX being events of the year, most impact ratio year the point ratio combined for XX reflected points include the with XX%. accident current the year XX% year results current in a large from other Hurricane The adjusted percentage development. favorable property a and percentage significant

to Next loss expect quarter, continue we attritional low the in XXs. an ratio

$X.X In XX%, and up segment, we expect billion. net were net gross Casualty of $X.X where premiums Specialty In Casualty about quarter, earned XX%. our and premiums earned first the respectively. to and were net and billion, premiums now written XX% up XXXX, Specialty Turning

and The to ratio Casualty XX% as the was in trends accident in combined we reflect liability. initial year adjusted current year up general our ticked Our ratio through Specialty loss prudently ratios XXXX. increased loss

specialty XXs. casualty to and filing in mid- upper forward, expect ratio adjustment we Going a the

for We and profit, now growth up both impacted income business of run performance million, losses and fees with less as management vehicles, fees some the events. dipped partner to quarter fee in Moving management by in time. from wildfires, over Management -- were Hurricane $XXX fees offset in due generated million million capital expect million XXXX partners in will growth around fees than also Fontana. prior that Performance first fourth a $XXX strong of XX% a the fees. performance years our $XX the our development. up fee driver slightly second compared and per year largely up we This to our $XX million, quarter. will from were our be of XX% were XXXX $XXX generally California were because catastrophic where rate to recapture fees XX%, to Milton, in across QX but third-party included by vehicles. of the quarter at this capital result difference were strong but around Performance due recapture partially DaVinci

next expect to ahead the to of down impact be fees significantly Looking quarter, we given performance wildfires. the

net average our XX% but was investment $X this investment of in year. volatility driver over average at profit, mark-to-market $XX There year. to significant -- retained 'XX the December X.X%. the compared to billion, Moving yield up for our about grew to investment where now overall, $X.X investments our treasury third quarter-to-quarter, our maturity by flat flat yields was our to retained billion income Similarly, retained -- assets relatively was from year stayed billion,

we million income quarter up continue years. to and from a level We X.X $XXX consistent our the Yields quarter of relatively in the income have held in however, the at expect increased quarter. duration, in year XXXX. X.X and providing well, investment at in to increased first ending years Retained million fourth have has $XXX portfolio every over investment year, net starting this

the be flat Next net the quarter, that quarter. we investment anticipate will fourth retained about income to

expense headcount. $XXX moving with to At and fourth been up an X.X% our Corporate was the $XX These which to was than performance-related from million flat Next, from quarter, to was $XX fourth expect ratio driven off. In expenses relatively expenses XXXX. this operating to expense year-over-year expenses higher increased where year, ratio of with corporate were hold compensation Validus, the operating flat million The X.X% to operating transaction are we flat expenses excluded by for related expenses. to compared average quarter which XXXX, income. of expenses transaction-related $XX tapering the this relates transaction-related have XXXX average. million, were at million, expenses relatively

transaction-related significant We expecting are not XXXX. in expenses

Finally, an tax. on update

tax. OECD have XX% global we Bermuda the income previously As has response minimum XXXX discussed, government in a to implemented in starting the corporate tax

accruing on own begin will Bermuda sheet We first the of our XXXX. quarter in this balance for tax

This we deferred provided at tax As million. valued Bermuda currently adjustment asset is economic legislation. for to a the transition in are a reminder, related $XXX carrying transaction

rules. In additional would XXXX, the guidance released a States implemented to Mostly recent guidance potential developments. an by the effect. these be member additional to order any January Further, related This tax global need and uncertainty before it executive the countries has United minimum to adopted takes OECD regime. minimum tax from introduced impacts monitoring new

also on Bermuda XXXX, in to from However, and able our we benefit we'll be a will benefit or near the in tax sheet be DTA expense the accruing term. balance

results profit. the with attractive the income. our conclusion, income in all income from fee for year across of will net X finally, drivers persistent strong off And from believe momentum excellent investment delivered contributions and quarter, an persist portfolio fourth that X and capping our solid investment we -- diversified We underwriting with drivers

Our to at continue the at for summary, In attractive value repurchasing while opportunities position our an to we strong valuations. capital capture generating shareholders. position us excellent are same should enable in shares time, emerging underwriting

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

David Marra

Thanks, Bob, morning, and good everyone.

are this thoughts in by month. all Los with the wildfires Angeles those Our affected

paying team that have clients this impacted begin for Our so as history costliest as claims entire California well in rebuild natural is insured through loss their people and communities. catastrophe and quickly helping top wildfires the a are manage They likely can to lives. understand perils. X

loss our to have prepared our customers the are absorb portion deploy support strength catastrophes. the capacity and these as capital to market We additional to reacts of in and this to liquidity

new pressure an rates to customers. reinsurance, expect upward our support and to capacity forward, catastrophe Looking improving on deploy we property with market opportunities for

this quarters, catastrophe and renew most X impacted. last likely this expecting the of catastrophes new Kevin about the now billion market as increase demand $XX next spoke X our and review We billion aggregate in for remainder the the of the loss reinsurance XX% purchase we property Kevin demand needs already mentioned, wildfires. were are over coming a backup about companies the year. California year. U.S. to expect $XX of to months As We for covers accounts have industry seen their now X large loss estimate in our

the this different portion expect to come areas. a reinsurance from We of few

some and a that insurers. may towers. will the loss allow catastrophe First, exhaust and could wildfires typically separate peril the some for wildfire of covered X retentions fires The happen, California of language towers exceed is excess events. many to insurers nationwide as players treaty treat California Should

-- X so, do need to However, able they would they were to take retentions.

Second, cover treaties many related California last run the the insurer of reinsurance to assessments fair plant, resort. state

fine Third, losses, share there ceded market quota from market impact to finally, both to our This to the losses and the will or some could specialty large and high-value treaties. cat fee liability collectibles third-party through reinsurance property through and commercial homes book. risk arts. per be market And properties be from the will other losses

and together As with prices event, deploy be the closely upcoming with have every renewals, if additional are we ready catastrophe assume. teams our but what learned. we will capacity, to large models risk the our commensurate At working to update only reflect underwriting are sciences we to will risk

a X moving renewals. discussion and Now performance to January underwriting XXXX our of

solutions through of first We accomplished As aim experienced as on Kevin I'm segments play, market presents a product had call challenges market X successful us the explained, differentiate lines. our to communicate and our provide which bring and an about means and of outstanding capacity role ourselves January team lead of and leadership across that the the and expertise our for delivery in and I'm we to partnership pricing significant XXXX. year, be our proud appetite capacity, we clients consistent approach. risk finding ahead we we an culminated and and quotes ensure focused begin Bob opportunities excited clients' clearly what team risk the our This and we renewal.

we support portfolio of ability In doing a our across their deepened an partner RenaissanceRe We in into and to coordination Validus Being partnerships so, more to our XX% this. attractive clients a level underwriting stand in underwriting portfolios. underwriting XXXX, our planning our do combined true clients high us market. In requires retaining teams. than apart our rewarded through the grow and

if differentiated maintained the did also reduced conversations strong property in about casualty We key at leadership renewal clients, our lines, catastrophe deepened X, and and hurdles. with ourselves on our they XXXX not our trend specialty January our and capacity We meet deployed credit casualty achieved goals. position programs

We appetite oversubscribed, followed risk many and advance level we in consistency. a effectively and our specialty. well signings were targeted communicated achieved renewal through property, of our high of casualty In with markets across cases, but

to expected diversified attractive As profitability portfolio in an market leads that from a underwriting construct profit, and drivers result, earnings were we able our offers X the of shareholders

on comments property few a specifically. Providing

and we terms rate held January attractive As less. premium We X, the programs, the cat accounts, for X down rate end increased experienced targeted in similarly more is also demand over with were top Retentions of property around of written we we at our placements. those layers top layers on result stable. bottom And saw we held should gross at X%, some expected and conditions years. reductions a last constructed that competition which but down portfolio and attractive flat have decreases. to lines and grew despite Overall,

expect strong rate growth our I portfolio increase a and events the catastrophe earlier, As property opportunities environment. mentioned recent across we that will

position this are access the XXXX through to recent business a renewal. and preferential attractive We at most we in like did

and at January with Casualty starting of specialty, Moving renewed and where X. portfolio our about Specialty X/X

$X.X We specialty The established conditions. favorable continues about lead to are enjoy an year-over-year to market billion. grown lines to XX% specialty having market and underlying

declining. choose we the signings we renewal, did but competition rates at We cyber, marginally. favorable has in shrink lines While where off rates and increased with our been are performance held achieved to saw strong, January X

specialty which credit, attractive. turning Now similar remains to to

to achieved programs business and growth key this some have our X/X. for on target continue appetite We at

to generality made needs spoke we the exposure portfolio, about on January their inflation. that to the where in bar. up we our improving At in the the rate by quarter increases business market. loss some majority and this challenges progress reduced casualty. treaties renewal, defense with to plaintiffs although of kept the Moving There greatest. loss is claims improve Kevin U.S. X and to good line an Insurers accelerating against handling is broad aggressive recognition keep inflation

are insurers future continue claims. year in while underwriting profitability will should which on years a positive optimistic the also XXXX, We prior effect have improve of to benefiting

business cycle. over As be a needs Casualty to XX-year managed discussed, we've

While we in to potential small generate volatility is quarter, every and aim current profit from accident range and loss an the underwriting Casualty a This year experience. loss. of reported we quarter ratio within our was this Specialty, that we may

stable Our trends trends of prior other liability ratio loss general credit. and accident favorable in have year was The offset energy, liability, acceleration been business, professional this lines as by in marine quarter. cyber such

profit it also value in good like considerable Now but loss profit. more generates more the flow take volatile different to to on today's profiles distinct financial our largest produces underwriting the of contribution our to and however, from our to important Property from underwriting years from the some substantial income reserves. our it Specialty, income results investment of smaller well is income Each other diversified a Casualty market explain moment is volatile, of hand, content. portfolio the as predictable the and of and and Its it generates fee drivers conditions, ways have organization. generating in less as partner equally I is due contributes capital. a segments profitability risk a how and more X to overall volatility underwriting would to in contribute but

approach. underwriting and reserves diversification important critical the to our equally in portfolio loss portfolio in is to management Diversification

Some within and risks year. are manifest the event-based

apply through to establish with we trends process longer inwards and system. portfolio, Some only to that reserves duration consider known once and claims net construct the seed our adverse manage court with arise. mix the We work reserving they when mix resilient are reinsurance, our are this if

contributor underwriting in classes XXXX, robust both beneficial portfolio substantial This allowing reserves process more general us course Our XXXX. has market quarterly the to been provided and specialty are needed also certain management, especially stability the and over trends to operating year. the the years diversification with segment the casualty on remain liability and of and has soft basis increasing experienced ROE reserving years in reserves, when diversification and a like

increased continue, in trends we reflect comfortable margins, any In position. classes, we years recently, liability, positive one in our seeing favorable More loss loss Even are trends I'm years accelerating and cyber in liability the other not recent with professional such recent have general overconcentration trends. credit. to and we business, line our reserve and casualty do however, in if of specialty current an as

book. will up some movement a certainly of lines the this diversified of different part but We experience all managing and the is down within nature business or underwriting

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

Kevin O'Donnell

Thanks.

X up our summing delivered So our of financial each our profit. prepared XXXX, comments, our drivers outstanding. We and was both through strategic of to shareholders performance in profitability excellent

remain In our attractive. retained addition, we rates reinsurance completed integration of and Validus the combined Overall, portfolio.

and Our investment remain returns fee-generating business our remains elevated. healthy

to expect continue over shareholder course we a the of outstanding value delivering As XXXX. result,

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

Operator

Instructions]. [Operator

question Greenspan come first Elyse from will Our Wells Fargo. with

Elyse Greenspan

question fourth higher is over casualty rate and trended combined The quarter. combined on specialty. ratio ratio, first the My adjusted in XXX%

the So you spend on the clients with for high were guide quarter, business. more last said taking on time XXs. remember action mid- doesn't forward I your If outlook that you why guys change to based just I and discussions you hold to the up want to

be So specialty QX forward? NGL to want want does conservative to going it more make more with understand whether booking the I you casualty just weaker of

Kevin O'Donnell

Thanks, Yes. Elyse.

year casualty we our year Ultimately, profitable favorable and had if XX%. look had development. the XX% So we a in at the between specialty, we and for ratio loss quarter,

your side, really coming If been the time. of we've period focused about GL attention I GL XX% the of lately. we said some we've on done trend on the has think look question for XX% where a using is at been line, which to of is most what I

in the onto the thinking platform. So about with we bring business way that. in it's which feel pretty And we comfortable

about thinking to really well. where So us as think reserves requires to underwriting are the the go back about

avoid best with From the lines seen the within trying GL, targeting be to have what the biggest the are to said problematic. we believe within the sublines seen market has NGL, accounts perspective, where we or we an unerring where we're

in So we've our and -- we cash underweight casualty several excess auto, been portfolio years reduced ago. our sorry,

good the balance So where the about we've of within and the I'm the the discipline I way that and of proud portfolio the casualty when we're feel the risk we portfolio and the I Dave, reserves. about portfolio combination which I in that of underwriting guidance the the had risk construction we've is, if think of assuming, comfortable have, can... with in portfolio. managed the

David Marra

future. rates that that that rate that. to we're improving, just then to and differentiator, in improvements for can lot everything X/X, optimistic we information will and their But engage and on lead come adds the through we've comfort business booking. are a on what portfolio did they're to the the reflect underwriting the I claims take is way getting that customers, seeing are with very where more to we mean At what we'll a we've how to in to will managing with definitely way they're each they're managing reserved and side the I wait lead will seeing, and time, but made decisions we got that they're for add season we're improvements, class. before claims Yes. the that which the we

Elyse Greenspan

And then cat. property on my follow-up is

next right, David, cat and guys, loss months your X most renews over of U.S. is XX% property book You you said the impacted.

renewals California of to impacted is Florida pricing to of this Some business 'XX impact I right, do think X/X for be nationwide, 'XX? 'XX, in your, right? a new most trying it right, to 'XX, combination of Or X/X be more does fires, during renewal? a it this just But is. where will going you're the company sense thought, I is guess, of both? be get right, during might would you specific, with some So I'm

Kevin O'Donnell

Yes. Elyse, California large The this and to that enough this is -- specifics will nationwide David. event -- specifics. California impact some the is

a of a the accounts Nationwide the all X/X. The renewal in second numbers exposed we California of specifics. embedded mix pure quarter That's Florida, relatively U.S. small only is and gave, renewals portion

loss those the impacted. are of most come will So to and quarter be second in

that the we'll high into that second still around saw, at competition expect renewals. level. we the better will we a X/X trading do saw reverse, drove quarter And going think We we that that so opportunities see rates the rate and down,

Operator

Josh Shanker next Our will come Bank of America. from with question

Joshua Shanker

casualty because thank pick when immediately know your call. lot investors are Yes, they you one took charge they're be that higher you. that loss And couple on there the a questions charge in at this guess cash, this of large Obviously, a competitors I days of it's will in target. preannounced ago. suspicious looking of a

large You you be get there were There want losses this that around. now, it it going about give so you unique as I losses remarks any your volatility? said be that attention that versus to quarter given right help know at But the about previous can losses is in of call. in run every rate the And in to talking it's quarter individual don't habit will move volatile. the to the is on is might investors that detail there what understand that the

David Marra

the with in it, start what -- of some I'll seeing are David. about we're are we outcomes that run. is that. of and classes this business movement of the process think The in that we between the way really Hi, we

construct of the buy classes we create the the our best different across the customers First, segments and And within segments. across most expected return. portfolio to

several monitor to our about our in the have going that news, reserving picks, and we how normal We we'll we've clients When we in. take on things just all emerge book initial We process, book. the we'll of business. the bad -- different good That's quicker, where run talked reserving comes news classes. news. course don't set

see side what just well. seeing outcome in us seeing process we're in In or outcomes and are on the gives underwriting that the the are that good a the movements going as see nothing where necessarily that we're doesn't we about the of out to the more mean are the domain we're that market book. that So representation of that public concern process of and we any

Kevin O'Donnell

was specialty, that Dave think said to some the quarter what with small. everything I question the I signal and that you're and noise think, There things in at but agree came is relatively the noise. is asking they're Josh, I through casualty what is with due airlines X/X,

using seeing trend. GL XX% What the said We're a depending our subclass on what are been think you as we we when have already from to about giving rates signal and within at we're we think is I XX% XX%. market. the

the we casualty seeing about and above it said response historically So we're be the think dialogue XX years. market the trend. We've market over

the if as the continues companies think as market rate in should that rates long the trend, getting are that above expect about challenge, to you but the trend, should So above a are improve. period fact casualty that the primary is one market continue of

current the as think primary last year. you managing them about are one to making that and to that we and through. highly year, portfolio, on better prior management both the the we're the enhancement that is applying about they discussed that they're book that So that affects clients getting with rate flow seeing sure we claim and focused things of on We're year talked the continues

is the rate where for a positive is trend, which So signal the sign sending market up, is trend we're is that up above rate is. and is

Joshua Shanker

casualty comes Well, when other have thank at overall. they reported release or longer it's In it are bunch everybody X like seen bivalent releases the negligible, And but and it tail in I'm basis, out you other and curious, I reserve we've reserves companies and there. tail years. GAAP specialty year a reserve with us are were basis that just there your of competitors big a shorter looks you in movements. for on specialty, think the of of to in comfort set of the that. the sort were portfolio slightly and the all the position favorable quarter, And fortify

longer-tailed year reserves Or a proceeding few lines? book [ offset whole, as by see think reserve the look of fortifying tail In has gets fortification a obviously, releases it, there we'll really you you reserves, at I cash as terms of a filed, have guys ago? been -- a when been ] been case the but reserve shorter we the fee the on has

Kevin O'Donnell

and good Yes. It's provide question, transparent a a have it provided will transparency is and something support. the for piece schedule

to we be to We've retail lines, platform, favorable not in moving to answer that segments. obviously, we're one development yes. your that other. report is many to that, question, reserve in provide. So specialty we a just That of had lot is a we're clear, there's casualty. added The of With the and remaining Reinsurance the say we've transparency but the to

or within We XX reserving classes casualty have specialty. XX

that One risks you the balance and short manage some development, either development. adverse diversification At of class the tail, get the favorable long time, which are coming of in a given of right a in. one types may you quarter in class portfolio any exposure like is the in other having having to a need tail right of that be ways or on is trend,

We a GL, feel problem seeing about and pool which is we're we property, overall optimistic specialty class, comfortable, development. a that's reserve perspective, we at and a decision abundantly the the casualty feel place looking which is to from favorable a the we're different added From right reserve promos from overall, Dave? lot things is that. think we're been we've seeing the have like a job is overall had But to in to where segment, about. feel our a and of in

David Marra

trends and remarks, Casualty of as reiterate, to the Specialty my just in segment I most classes we're seeing favorable said Yes, business. within other even prepared from

shorter of specialty which which and credit. tail. of liability, kind is is medium tail medium lines professional So Cyber, more tail and the

I is was describing. that what all So consistent with

Operator

Zaremski next Our come question BMO. Mike will with from

Michael Zaremski

casualty the I but on want moving it. to stock to sorry back go this, is specialty, to belabor

I saying a from of you're just companies do. bit the feel explaining they're saying counterintuitive. some and other what it, I'm So are wrong different saying maybe things not like

-- on yet. So pack

is also but loss pricing saying I and been not you're basis. the it on [ you're rostic improving at you're you're environment you're higher ] loss saying a to picking worse -- you've at unlike also others, trend pick. reserve So XX% just And a a handling is prospective think XX% taking charges, improving, and claims changing

be but or if why you for taking adding reserves hope I saying sense, it that to to are you class? prospectively, why are So turning are better? would And be worse things going not margins the makes charges some

Kevin O'Donnell

Yes.

to confused feel way need quite what Sorry basically what confusing that feel asking When that recognition don't is we're the put question because have said we of presenting continue. you're we in we you're And current in up year. think think I rates the this I we and why did I a confident. asking, that is, about is

there about the is thinking So current year, uncertainty.

affirmative concern to loss ratio of So we the to make behavior seeing need because we're that today the we're persists. adding buffer a sure

prior that snapshot if observing uncertainty the feel have, prudent We behavior the recognizing today. of we're think to think want on right at world exhibit an only But the just markets that the uncertainty, a year behavior is worse. because for in it's us the need we I that, recognizing So extrapolation to come and to favorable. to there continue that that's that there's we're market back in look for that, the the -- think that is starting our continue if getting and comfortable Ultimately, needs at point we underwriting. we to on that think large going current of the volatility will be that to now, we in disciplined we'll the reflect

Michael Zaremski

Okay.

property. some well. development, as biggest materially. gears prior fade a to Kevin. ones I'm see year guessing for time, the And typically in big but a in as prepared might kind on year releases, probably very releases this this the but of well. are on of of have Switching remarks, typically, basis We is the That specifically, and excellent. guilty long forward Consensus margins Okay. helps, touched I'm the this you one And we

is the a others benefit this and get Ren don't trend. if So

be wanted the releases you So of quarters this I the would helpful. Just don't last know add any quarter unique? to color color any if Or with very couple

Robert Qutub

our off start that try context and Let process. on me you kind giving of

events occur, which give us insured values. these have information, we As will on total

else impact given that on it's what fire matter, the in wind, that reflect have based on would events, or be some reflect whether flood, that models outcome. will anything our models We

We also on. have our seeds and go from conversations information active that

degrees get the over our time, estimates degrees best of or of And But estimates reflect uncertainty. better. uncertainty our So what is also best our it estimate. best reflect

events So the we each look is think and at unfolding see about what reserving large process process. through as on how We these and our annually it. you approaching go cat quarter a we

is see There an see in a can obviously, that is as outcome some adverse a you what it you there's mix being but so lot positive. refinement. more, as And there,

Michael Zaremski

on just that a then. follow-up quick And as

using of Is California So I its been you [ other wildfires $XX are when we to for guess that widened billion our sources are sort has on $XX take conservatism. booking. Has Ren kind conservative and historically being of closer is at out? billion a very Like ]. the margin see that that example, of loss

kind conservative, you've degree Just so naturally you're just a assuming of seeing but is RenainssanceRe been saying there greater versus being your recently we're conservatism of historical?

Kevin O'Donnell

Yes.

and let specifically macro on So the wildfire. in then way that me a answer

on has changed. a nothing So macro perspective,

very assessment, control, the there, limited a come to ground-up against been check We up loss is. affected most access We through under by account, event. talk process. are We clients. [ process. get It's assessment. We at information. have because There's We account look believe a what model as this our is good and fires go the make exposure we it is an ]. largely a reporting recent with Cos we're the The market share ZIP a but the this reason loss to

specific so have this occurred earlier a greater to access the to larger up has the far. little lack it primary that we the that, tested in you With for as We the have that they're with which market wanted this that we lifted we the billion been the specific week, has that settlement. think provide access information. to to of with modeling is estimate see we have sensitivity this. a because should I that more information done. for do bit just of a think though We make company believe And us reasonable of for $XX but an or tool loss date. given smaller We increasing variability tolerance loss assessment, losses to do a begin is

split a down with go sensitivity a if about We it's bottom-up little a didn't as stayed is So did bit, analysis. a But in tested slip little we we share. up we it market at or X.X%. bit

limited probability nothing what is is would event, question your to complications this and a But from the changed. being there of the normally the the produce because $XX greater access of recency in of we than of billion has California. variability answer the it So

Operator

line will next come question KBW. Shields of from at the Our Meyer

Meyer Shields

Just a couple of very quick questions.

back Kevin, this how question some some I acknowledged reserves accident that back, general far like for needed does is guess a the you years go? far First, liability older How strengthening. of that

Kevin O'Donnell

I of would that the like soft the there's has say 'XX, way kind it. let's market 'XX, 'XX about probably divide market to it something traditionally thought into years, the that. which were

For we us, did, we protections acquired. that with portfolios relatively we years small. the had within the And our then portfolio the transactions market is that substantial for soft

and probably has would say, XX% to talking focus from 'XX about too is green reserves, been our 'XX added to when where XX% talk about. to we've the that's I I'm So with the where going forward,

were you more 'XX, that. like specific, 'XX, probably getting 'XX, it's 'XX, if something So

Meyer Shields

writing renewals. Okay. efforts. was Perfect. you for rate to appetite That's hoping was the I hear. aggregate X/X changes what loss-impacted I RenRe's hoping and accounts on could on comment just And

David Marra

David. Yes. is Hi, Meyer, this

market, pushed the led started the flat. as rates of So But into that got more talked which would competition, we some come process, increased pressure. about, at X/X, going I was point renewal out process, rates more rates there earlier Think to under to in supply down. the were

fewer the of there X/Xs far accounts they of wasn't differentiation because loss So were much are impacted. loss-impacted

time, it of the and you the Helene which a of was lot X/X think that Many domestics. the are in at second were accounts If impacted those Milton events about that Florida nature quarter. losses of

points. couple So there be the the step more at covers attach Post that but all out wasn't used in to The are change, differentiation. the much aggregate placed much a scale change. they step remote as attachment pre are there,

volatility would step don't case been pre the the they So the change. have provide that

think them getting and out that are level. at right attach for we're do work those a on they as we as of the capital there. there We return long So right handful those the

Kevin O'Donnell

aggregates. They're That in at years not problems been the were long of structured And same aggregates. X back aggregates They're company for have a large time. them many the ago.

Meyer Shields

Okay.

I follow in January, if how can. be we early to on up that worried given should Just loss? a that, got billion $XX we

David Marra

So the with because season, with have portfolio we'll wind to not we'll about at risk think that, that we good out that the portfolio It's and something mind. in we transparency and something structure how mind. look in figure when that's into that us appetite our we concerns stretch into

Kevin O'Donnell

wind the If -- great we about going are It actually one loss more is losses dynamics. be We're it opportunities in potentially a contracts into will for strong we'll create us. we're those season, supply-demand with to would may -- talked and move can very transparency, -- confidence those the the market that's supply that more others the is into capital which of to going it have position. controlled, things able for reduce

Operator

Brian Meredith with UBS.

question. next our have You

Brian Meredith

just going stuff follow and programs from a to my up to Just on, there, maybe loss the exposed non-California question Florida have renewal you call it, think understand perspective? impact this. Do is an like that

Kevin O'Donnell

Florida is going to go Milton. because of up

but there, So we're Florida. of for the player a smaller optimism degree

quarter. a quarter backups, top-end first none to I reduction, of reversal where second got Are it going more the they comes the be really talking flat that there And to we're cover. of we've what their the do looking so is now. is this clients at buying think right Part we're to and are. understanding capacity of up we're they need needs saying

got a change. we're clients we're to an that have bring solve a but strong opportunity to problems, put going about to to rating environment are from going margin of at our to and capacity that we're more So we solve in going learn capacity will rates lot what level require But losses we've to looking how up. is suffered with the their

Brian Meredith

your in also. other Do DaVinci or how ones? Makes some again and kind I'm of your a more second, Maybe backup stuff of to all come can then you capital obviously for sense. all that need to I'm to JVs works going just covers go out us the And raise a probably to and pretty you Got but curious, like assuming with you. there? demand through loss, explain that's meaningful

Kevin O'Donnell

know, capitalized, other of well vehicles you our as all They're than Yes. are most rated. upsell,

top We come may already with to had a dividend So layer no dividend Vermeer position. them the DaVinci into very into capital back. a not the have issue balance capital strong about is there's would but impacted. We're talking the in DaVinci. our deployment is have back redeployed year. sheet,

because have Upsilon the of is the largely is retro probably largely much good didn't coverage. in Fontana is Medici the -- doing place. not unaffected it's property because wildfire fine obviously protecting portfolio.

have when had in right good So a the we We've way in 'XX. go position we really access. suffered had And through deals that it, across market, you going strong structured, should back never pretty we're challenges shape capital I the good look from. the be others and ILS now, in the if are

Operator

Our Evercore today question next will David ISI. Motemaden from at come

David Motemaden

Casualty leave just question I'll it Specialty. at one on just and

which in years recent sounds is I to new. some general recognize accident started development it the casualty, reserve So believe guys you have like adverse on

guys So had I on off 'XX. 'XX. because accident hoping picks And just that curves had through expressed was I years I in confirm confidence you you quarter, you think think development some year could moving and 'XX not your last dropped your accident

or resulted the of I'm how how are in quarter recent So that adverse confident the years. we more you've should the what like just potential wondering in you to closed book happened starting think that? on on about guys this that you And sort recognize

Robert Qutub

the Thanks question. Let for me try.

year. about earlier say about and accident see that offsets if unpack what to about you we there, volatility back, Kevin actually see and increased the you're try has our look from think was the you're me tail. trade-offs clarify you some Let those current that noise liability and what can going coming are what schedule we've I it the That's see going commented in that here had shorter accident between general and said from current out the but and to year mentioned, has Ps talked latter that years

been not in that's So is year. the that in being prior, the the current down And focus all seeing. we've this reflected

that's talking puts takes XX not XX diversified quarter. goes this you're something and about. that's a that happened This of across to on business, that's or it. So was going different the see portfolio classes with balance David of And

David Motemaden

I'll the and guess was Okay. specialty. Got on at through but the then adverse releases to I K it. I 'XX and just total come guess for on looking, K look 'XX, and prior last in that's least out. year, see I casualty 'XX I

So that casualty. does not break general out specifically

would be So detail guys on helpful. provide That any of could sort you that?

David Marra

up What going the on see we're talking we Ps are to claims-based which coming you'll in is sheet schedule to that in U.S. break have that the that what have. see we and you're balance reserves there, out the takes out, our occurrence in which that puts will

Operator

Alex Scott at Barclays.

Unknown Analyst

out in sort the NCI. vehicles little had to and comes trying versus the retaining wildfire I you're one is the put First of the always the business the in how it's way see it tricky outside in And loss moves particular, just around loss. that California the a gross color understand to more estimated and from you if could affects to what's

to help actual what could so and how expected total you loss -- us If to the in what P&L should translates forth? we and think through see the expect it

Robert Qutub

kind with let that it industry view we the based at, loss on give that values what said earlier on we insured our starts of Yes, understand. but you me that I a that's look mechanical

And would we'll loss go gross that it. out seeded, have to down for and now ceded. premiums So number would we We'll adjust of we come that that reduce so comes into it other costs it will it. the that a reinstatement reflect by

of do the piece you'll have take the follow into Then where current share, which gross, the year is might from see the you'll have we And not on from we'll loss. reconciliation, we get goes ceded gross to impact, that through but out reinstatement you see they that premiums. DaVinci it basis based that what of down see, on a then accident that's a necessarily would NCI what loss that happy comes on our managed So what the ultimately their then net for that with out underwriting we underwriting that to is and you a of party. series NCI show nets ceded about piece through comes that managed, third the them, a and down XX% , that's mechanical That's to our share also supplemental. ultimately steps that in that the within of take It the offline. net we it goes and in very out it down

and out see you we the that K. you'll release, can of at look table in net You negative see in put our our that that kind when

Unknown Analyst

it. Got

helpful. performance and And a like developed bit had I Okay. follow-up point. That's on is more the this the question just piece the specifically Tokyo at the of reserve comfort of Millennium

could still So ADC any I is. any recall interested provide where showing movement? And in if of the if that's Tokyo kind you -- can't

So if you that. on update could us

Robert Qutub

Yes.

really haven't We specifically. talked

we're ] X.X years on but it, capacity that. [ have into We

to it. lot develop. of is on we're have developed. still we contract. largely that a But still comfortable So where left that with There's room we some still are And left some small

Kevin O'Donnell

good And this is is news at point. largely developed book the that

in still room have force. we So contracts

relationship great a with have We Tokyo.

Operator

the that I'm to for morning. for turn or any final Mr. that closing our floor our question And have, O'Donnell session remarks was sir. this you to happy back additional

Kevin O'Donnell

where we've recognize that So the on with the proud and of done And market. wildfire, you time best uncertainty loss Obviously, a it. event. the I with we We your portfolio, a to to think work the there's performance understand year. up the specialty are joining our had in come thank and last it's we for difficult way from appreciate today's call. perspective, We questions signals from from being aromatize casualty lot that an from perspective, done said the structuring of underearning we've we the development on We've the trend. I and are. And a had with practical on a transparency that From used the absorbed good portfolio, in portfolio. lens a on factor there's investors, we have very We've reserving feel a right this. things we comfortable are others. good

forward being With we first thank like today's to quarter. talking you to the you for after on that, of look the we'd to call. And close

Operator

teleconference, for today's and this conclude your thank Ladies gentlemen, participation. you we all and does

your You lines. may now disconnect

RenaissanceRe (RNR) 29 Jan 252024 Q4 Earnings call transcript