RenaissanceRe returns to profit in Q3 figures
Bermuda-based reinsurer RenaissanceRe Holdings (RenRe) reported net income available to its common shareholders of $32.7 million in the third quarter of 2018, compared to a net loss of $504.8 million in the same period a year ago.
The company experienced a net negative impact of $151.9 million from catastrophe events such as Typhoons Jebi, Mangkut and Trami, Hurricane Florence and the wildfires in California during the third quarter of 2018.
RenRe reported an underwriting loss of $29.0 million and a combined ratio of 105.5 percent in the third quarter of 2018, compared to an underwriting loss of $793.2 million and a combined ratio of 244.8 percent in the third quarter of 2017.
Gross premiums written decreased by 2.3 percent year on year to $625.7 million, in the third quarter of 2018 driven by a decrease of $24.0 million in the property segment.
RenRe has also revealed that it is acquiring Tokio Millennium Re (TMR) for approximately $1.5 billion, consisting of $1.22 billion of cash and $250 million of RenaissanceRe common shares.
CEO Kevin O’Donnell said: “Once again this quarter, our industry experienced multiple large catastrophic events around the world. It is a strong testament to our strategy that we were able to support our customers by promptly paying their claims while still recording positive net and operating income, as well as growth in tangible book value per share plus accumulated dividends.
"Our track record of sourcing large, one of a kind opportunities to provide bespoke solutions to key customers remains unparalleled in the industry. We remain confident in our strategy and our ability to deliver long-term shareholder value,” O’Donnell added.
