RenRe reports Q1 losses amid severe weather and market volatility

RenaissanceRe reported increased losses in the first quarter of 2021, which it blamed on a number of factors, including severe winter storms in the US, volatile capital markets and the expansion of its underwriting portfolio.

RenRe reported a net loss of $290.9 million in Q1. In the first three months of 2020 it had made a smaller loss of $82 million.

It reported gross written premiums of $2.65 billion for Q1 2021, an increase on the $2.02 billion reported the previous year. Its combined ratio, however, expanded to 103.1 percent in the first three months of 2021, compared with 93 percent in the same period the previous year.

Kevin O’Donnell, RenRe’s president and chief executive officer, noted that the re/insurer had materially grown its underwriting portfolio during the quarter, while also returning capital to shareholders and enduring winter storms such as Uri and volatile capital markets.

“Going forward, we anticipate additional opportunities to grow into a broadly improving market by matching desirable risk with efficient capital, both on our wholly owned balance sheets and in our industry-leading RenaissanceRe Capital Partners business,” he said. “Together with improved yields in our investment portfolio, this diligent execution of our strategy will further contribute to shareholder value creation.”