8 May 2019News

RenaissanceRe posts strong profits and 72% combined ratio in Q1

Bermuda-based reinsurer RenaissanceRe had a strong start to 2019 this quarter, having over tripled its profits and posting a combined ratio of 72 percent.

RenaissanceRe's net income in the first quarter of 2019 was $273.7 million, an increase of 382.7 percent from $56.7 million in the same period in 2018.

The Bermuda reinsurer’s combined ratio in the first quarter of 2019 was 72.0 percent, compared to 70.6 percent in the first quarter

RenRe's gross premiums written in the first quarter of 2019 increased by  $404.6 million year-on-year, or 34.9 percent, to $1.6 billion.

This was driven by an increase of $325.4 million in the property segment and an increase of $79.2 million in the casualty and specialty segment.

The property segment's gross premiums written were $1.0 billion in the first quarter of 2019, representing a 46.0 percent increase year-on-year.

Within the property segment, gross premiums written in the catastrophe class of business  were $845.2 million in the first quarter of 2019, an increase of $254.9 million, or 43.2 percent, compared to the first quarter of 2018. RenRe attributes this increase to expanded participation on existing transactions and certain new transactions.

“Our strong first quarter was distinguished by solid profits, material growth and strategic advancement. We achieved an annualized operating return on average common equity of 13.3 percent and growth in tangible book value per common share plus accumulated dividends of 7.0 percent,” said Kevin O’Donnell, president and CEO.

“At the same time, we grew our business materially by leveraging into an improving rate environment. The purchase of Tokio Millennium Re advanced our strategy, and we have moved from planning to execution on what we are optimistic will be a quick and successful integration.”