Strong GWP growth at RenRe
Kevin J O’Donnell, president & CEO, RenaissanceRe
RenaissanceRe has reported $210.9 million net income for the fourth quarter of 2021, compared with $189.8 million for the same period last year. Its gross written premium grew by $1.3 billion, up more than a third (34.9%), led by a 48% increase in casualty GWP.
Its combined ratio for the period was 79.4%, against 114.7% in the third quarter of 2020.
Despite the strong finish, weather-related large losses of $962.1 million in the quarter prevented it from seeing a profit for the full year. It recorded a loss of $73.4 million for 2021, against a net income of $731.5m in 2020. Its combined ratio also worsened slightly, to 102.1% from 101.9% in 2020. GWP for 2021 was up strongly, however, to $7.8bn from $5.8bn the previous year.
“The fourth quarter was a solid finish to a difficult year,” said Kevin J O’Donnell, president and chief executive officer. “We reported a return on average common equity of over 14% for the quarter driven by record profitability in our casualty and specialty segment and strong results in our property segment.
“For the full year, we earned a modest operating profit despite catastrophe losses of nearly $1 billion. At the same time, we exercised leadership in the market, growing net premiums written by 45% while simultaneously returning over $1 billion in capital to shareholders.
“At the January 2022 renewal, our Capital Partners team once again led the industry, raising $500 million in DaVinci to grow in an improving environment and further optimise our property segment. In addition, we continued to expand our casualty and specialty business in an attractive market, and as a result, have built a stronger, more diversified and efficient underwriting portfolio that I am confident will produce superior returns for our shareholders in 2022.”
RenRe, Q4, Profits, Catastrophe, Insurance, Reinsurance, Kevin J O’Donnell, Bermuda