Bermuda-based RenaissanceRe (RenRe) has posted a fall in its profits for 2015.
The reinsurer reported a net income of $408.8 million for last year, compared with $510.3 million in 2014.
RenRe did see gross premiums written increase by 29.7 percent in 2015, compared to 2014, however to $2 billion. This increase was mainly driven by increases in its specialty reinsurance and Lloyd’s segments, according to the reinsurer
Gross premiums written in the specialty reinsurance and Lloyd’s segments increased $419.4 million or 121 percent, and $107.1 million or 39.7 percent, respectively, from 2014 to 2015, partially offset by the catastrophe reinsurance segment which experienced a decrease of $65.3 million, or 7 percent.
RenRe’s combined ratio also dramatically increased to 64.7 percent in 2015, compared to 50.2 percent in 2014.
"I am pleased to report $135 million of operating income, an annualised operating return on equity (ROE) of 12.5 percent and 2.3 percent growth in tangible book value per share plus accumulated dividends for the quarter,” said Kevin O'Donnell, chief executive officer, RenRe.
“In a year in which we acquired and fully integrated Platinum, we generated solid operating income of $477.7 million for the year and delivered an operating return on equity (ROE) of 11.4 percent."
O’Donnell also said RenRe’s underwriting team executed well during the most recent renewal period, as pressure on pricing from abundant capacity persisted.
“We maintained discipline, coming off business that did not meet our return hurdles, buying more reinsurance protection, while also building an attractive portfolio of risks,” he said.
“We are a bigger, stronger company today, than a year ago, and have the management team, global operating platforms and risk management expertise to serve our clients, third party capital providers and shareholders well in the years ahead."
RenaissanceRe, Full year 2015 Results, Kevin O'Donnell, Bermuda