Platinum acquisition drives growth at RenRe’s
Bermuda-based RenaissanceRe reported a 29.4 percent jump in profits for the second quarter of 2015, driven by its acquisition of Platinum Underwriters.
Its gross written premiums (GWP) hiked to $662 million in the second quarter of 2015, a 29.4 percent increase compared with the $511.5 million in the second quarter of 2014.
This was mainly driven by RenRe’s specialty reinsurance and Lloyd’s segments which posted increases of 210.4 percent and 62.2 percent, respectively.
In the speciality reinsurance segment GWP increased to $160 million in the second quarter of 2015, compared with $108.5 million in the same period of the prior year.
RenRe attributed this positive result to increases across nearly all of its business lines, most notably its casualty and property lines, as well as the acquisition of Platinum Underwriters.
The re/insurer’s Lloyd’s segment reported GWP of $116.6 million in the quarter, compared with $71.9 million in the prior year quarter, driven by Syndicate 1458 continuing to grow organically in the Lloyd’s marketplace.
However, RenRe’s profits dropped to $73.2 million in the second quarter of 2015, compared with $120.8 million in the second quarter of 2014, while its combined ratio deteriorated to 75.2 percent in the quarter, compared with 61.7 percent in the same period of the prior year.
Kevin O'Donnell, chief executive officer, said: "I am pleased to report $99.9 million of operating income, an operating ROE of 9.1 percent and 1.9 percent growth in tangible book value per share plus accumulated dividends for the quarter.
“Each of our segments executed well during the quarter and we expanded our underwriting capabilities to support our clients, despite the competitive market conditions.
“Our integration of Platinum has gone well. We are operating as one company with a consistent and united approach to the market. We remain committed to our goal of generating superior returns for our shareholders and third party capital providers over the long term by continuing to be market leaders in matching desirable risk with efficient capital,” he added.
