RenaissanceRe Holdings (RenRe) has reported net income of $69.4 million in the fourth quarter of 2016, a fall from the $92.2 million it reported in the fourth quarter of 2015. However, the Q4 figures take RenRe’s total 2016 net income to $480.6 million, up on the $408.8 million it made in 2015.
Gross premiums written came to $323.1 million, a decrease of $13.0 million, or 3.9 percent, in the fourth quarter of 2016, compared to the fourth quarter of 2015, with RenRe’s casualty and specialty segment experiencing a decrease of $21.5 million, or 7.4 percent, partially offset by an increase of $8.5 million, or 19.4 percent, in the property segment.
RenRe reported a combined ratio of 70.5 percent in the fourth quarter of 2016, a deterioration from 61.3 percent in the fourth quarter of 2015.
According to the company the increase in the combined ratio was driven by an increase in net claims and claim expenses and underwriting expenses, adding 7.0 and 2.2 percentage points to the combined ratio, respectively.
Included in net claims and claim expenses in the fourth quarter of 2016 was $60.1 million of net claims and claim expenses associated with Hurricane Matthew. The net negative impact of this event on the company's consolidated underwriting result was $51.0 million, adding 15.8 percentage points to the company's consolidated combined ratio.
Kevin O'Donnell, RenRe’s CEO, commented: "I am proud of how our team navigated the challenges of 2016 while building an attractive portfolio of risks and continuing to execute our strategy. We have strengthened our operating platforms globally, developed deeper relationships with more clients, brought more efficient capital solutions to market, and exercised underwriting discipline in building a diverse and profitable portfolio of risk."
RenRe, Results, Bermuda, North America, Kevin O'Donnell