RenaissanceRe Holdings Ltd.

Contents

Page

Basis of Presentation

i

Financial Highlights

1

Summary Consolidated Financial Statements

a.

Consolidated Statements of Operations

3

b.

Consolidated Balance Sheets

4

Underwriting and Reserves

a.

Consolidated Segment Underwriting Results

5

b.

Consolidated and Segment Underwriting Results - Five Quarter Trend

7

c.

Property Segment - Catastrophe and Other Property Underwriting Results

10

d.

Gross Premiums Written

12

e.

Net Premiums Written

13

f.

Net Premiums Earned

14

g.

Reserves for Claims and Claim Expenses

15

h.

Paid to Incurred Analysis

16

Managed Joint Ventures and Fee Income

a. Fee Income

17

b.

Fee income - Five Quarter Trend

18

c.

Noncontrolling Interests

19

d.

DaVinciRe Holdings Ltd. and Subsidiary Consolidated Statements of Operations

21

Investments

a.

Total Investment Result

22

b.

Investments Composition

24

c.

Managed Investments - Credit Rating

25

d.

Retained Investments - Credit Rating

26

Other Items

a.

Earnings per Share

27

Comments on Non-GAAP Financial Measures

28

RenaissanceRe Holdings Ltd.

Basis of Presentation

RenaissanceRe Holdings Ltd. (the "Company" or "RenaissanceRe") is a global provider of reinsurance and insurance that specializes in matching well-structured risks with efficient sources of capital. The Company provides property, casualty and specialty reinsurance and certain insurance solutions to customers, principally through intermediaries. Established in 1993, the Company has offices in Bermuda, Australia, Ireland, Singapore, Switzerland, the United Kingdom and the United States.

This financial supplement includes certain financial measures that are not calculated in accordance with generally accepted accounting principles in the U.S. ("GAAP") including "operating income (loss) available (attributable) to RenaissanceRe common shareholders," "operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted," "operating return on average common equity - annualized," "tangible book value per common share," "tangible book value per common share plus accumulated dividends," "retained total investment result," "retained investments, at fair value," "retained investments, unrealized gain (loss)" and "operating (income) loss attributable to redeemable noncontrolling interests." A reconciliation of such measures to the most comparable GAAP figures is presented in the attached supplemental financial data. See pages 28 through 35 for "Comments on Non-GAAP Financial Measures."

All information contained herein is unaudited. Unless otherwise noted, amounts are in thousands of United States Dollars, except for share and per share amounts and ratio information. Certain prior period comparatives have been reclassified to conform to the current presentation. This supplement is being provided for informational purposes only. It should be read in conjunction with documents filed by RenaissanceRe with the U.S. Securities and Exchange Commission, including its Annual Reports on Form 10- K and its Quarterly Reports on Form 10-Q. Please refer to the Company's website at www.renre.comfor further information about RenaissanceRe.

Cautionary Statement Regarding Forward-Looking Statements

Any forward-looking statements made in this Financial Supplement reflect RenaissanceRe's current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company may also make forward-looking statements with respect to its business and industry, such as those relating to its strategy and management objectives, plans and expectations regarding its response and ability to adapt to changing economic conditions, market standing and product volumes, estimates of net negative impact and insured losses from loss events, among other things. These statements are subject to numerous factors that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements, including the following: the risk that the pending acquisition of certain direct and indirect subsidiaries of American International Group, Inc, including Validus Holdings, Ltd., Validus Specialty, LLC, and Validus Reinsurance, Ltd. (together with the other transactions contemplated thereby, the "Validus Acquisition") may not be completed within the expected timeframe or at all; the risk that regulatory agencies in certain jurisdictions may impose onerous

i

conditions following the Validus Acquisition; difficulties in integrating the acquired business; risk that the due diligence process that the Company undertook in connection with the Validus Acquisition may not have revealed all facts that may be relevant in connection with the Validus Acquisition; the Company's ability to manage the growth of the acquired business' operations successfully following the Validus Acquisition; that historical financial statements of Validus Reinsurance Ltd. are not representative of the future financial position, future results of operations or future cash flows of Validus Reinsurance Ltd. following the Validus Acquisition; risks from the Company's increased debt obligations as a result of the Validus Acquisition; the Company's dilutive impact on the Company's shareholders from the issuance of common shares to AIG in connection with the Validus Acquisition; the Company's exposure to natural and non-natural catastrophic events and circumstances and the variance it may cause in the Company's financial results; the effect of climate change on the Company's business, including the trend towards increasingly frequent and severe climate events; the effectiveness of the Company's claims and claim expense reserving process; the effect of emerging claims and coverage issues; the performance of the Company's investment portfolio and financial market volatility; the effects of inflation; the ability of the Company's ceding companies and delegated authority counterparties to accurately assess the risks they underwrite; the Company's ability to maintain its financial strength ratings; the highly competitive nature of the Company's industry and its reliance on a small number of brokers; collection on claimed retrocessional coverage, and new retrocessional reinsurance being available on acceptable terms or at all; the historically cyclical nature of the (re)insurance industries; the Company's ability to attract and retain key executives and employees; the Company's ability to successfully implement its business strategies and initiatives; the Company's exposure to credit loss from counterparties; the Company's need to make many estimates and judgments in the preparation of its financial statements; the Company's ability to effectively manage capital on behalf of investors in joint ventures or other entities it manages; changes to the accounting rules and regulatory systems applicable to the Company's business, including changes in Bermuda and U.S. laws and regulations; other political, regulatory or industry initiatives adversely impacting the Company; the Company's ability to comply with covenants in its debt agreements; the effect of adverse economic factors, including changes in prevailing interest rates and recession or the perception that recession may occur; the effect of cybersecurity risks, including technology breaches or failure; a contention by the U.S. Internal Revenue Service that any of the Company's Bermuda subsidiaries are subject to taxation in the U.S.; the effects of possible future tax reform legislation and regulations in the jurisdictions in which the Company operates; the Company's ability to determine any impairments taken on its investments; the Company's ability to raise capital on acceptable terms, including through debt instruments, the capital markets, and third party investments in the Company's joint ventures and managed funds; the Company's ability to comply with applicable sanctions and foreign corrupt practices laws; the Company's dependence on the ability of its operating subsidiaries to declare and pay dividends; and other factors affecting future results disclosed in RenaissanceRe's filings with the SEC, including its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.

ii

RenaissanceRe Holdings Ltd.

Financial Highlights

Three months ended

Six months ended

June 30,

June 30,

June 30,

June 30,

2023

2022

2023

2022

Net income (loss) available (attributable) to RenaissanceRe common shareholders

$

191,025

$

(324,913)

$

755,087

$

(719,326)

Operating income (loss) available (attributable) to RenaissanceRe common shareholders (1)

$

407,435

$

238,132

$

767,443

$

390,077

Underwriting income

Gross premiums written

$

2,651,621

$

2,464,639

$

5,441,882

$

5,407,603

Net premiums written

2,195,803

1,863,616

4,459,506

4,028,833

Underwriting income (loss)

351,015

316,386

720,634

516,664

Net claims and claim expense ratio:

Current accident year

54.0 %

51.4 %

53.9 %

54.7 %

Prior accident years

(1.8)%

(2.9)%

(3.9)%

(2.1)%

Calendar year

52.2 %

48.5 %

50.0 %

52.6 %

Acquisition expense ratio

23.6 %

24.8 %

24.6 %

25.0 %

Operating expense ratio

4.5 %

5.0 %

4.6 %

4.8 %

Combined ratio

80.3 %

78.3 %

79.2 %

82.4 %

Fee income

Management fee income

$

43,439

$

30,707

$

84,344

$

57,929

Performance fee income

13,242

3,548

17,109

4,675

Total fee income

$

56,681

$

34,255

$

101,453

$

62,604

Investment results - managed

Net investment income

$

292,662

$

107,211

$

547,040

$

190,902

Net realized and unrealized gains (losses) on investments

(222,781)

(654,107)

56,670

(1,327,124)

Total investment result

$

69,881

$

(546,896)

$

603,710

$

(1,136,222)

Total investment return - annualized

1.6 %

(10.1)%

5.5 %

(10.5)%

Investment results - retained (1)

Net investment income

$

189,315

$

74,983

$

357,324

$

137,658

Net realized and unrealized gains (losses) on investments

(209,683)

(576,071)

15,864

(1,160,694)

Total investment result

$

(20,368)

$

(501,088)

$

373,188

$

(1,023,036)

Total investment return - annualized

(0.4)%

(13.6)%

4.9 %

(13.9)%

(1) See "Comments on Non-GAAP Financial Measures" for a reconciliation of non-GAAP financial measures.

1

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

RenaissanceRe Holdings Ltd. published this content on 25 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 July 2023 20:38:22 UTC.