RenaissanceRe net loss deteriorates to $394m
RenaissanceRe has reported a net loss attributable to common shareholders of just over $394 million for the first quarter of 2022, which is 36% ($103 million) bigger than its loss in Q1 2021 of $291 million.
Its gross written premium (GWP) increased however, by 11% to $2.9 billion from $2.7 billion. It grew its net premiums written by $341 million, or 18.7%, which was driven by growth in casualty and specialty net premiums written of $459.4 million, or 56.3%.
Its combined ratio also improved, by nearly 17 percentage points to 86.5% from 103.1%. The latest figure included an impact of 7 percentage points from the Q1 2022 weather-related large losses and 1.8 percentage points related to the Russia-Ukraine war.
Kevin O’Donnell, RenRe president and CEO, said the company had delivered a “solid double digit” operating return while generating profits in both underwriting segments.
“We would like to recognise the great human tragedy of the ongoing Russia-Ukraine war and hope for rapid cessation of hostilities and peace in the region. There were also numerous natural catastrophes this quarter and we would like to extend our sympathies to all those impacted. Our purpose is to protect communities and enable prosperity and these events reinforce the importance of our role in helping our stakeholders manage many different forms of volatility.
“For our shareholders, we delivered a solid double digit operating return while generating profits in both underwriting segments. Our balance sheet is strong and all three of our drivers of profit should benefit from improving market conditions: our underwriting from material rate increases across most lines as well as continuing growth in our casualty and specialty segment; our fee income business from the launch of our ground-breaking casualty and specialty joint venture Fontana; and our investment income from rising interest rates. We believe that all of these factors will make our financial results increasingly resilient to natural catastrophe volatility and produce superior returns for our shareholders.”
