RenaissanceRe delivers 73% combined ratio in Q1 on improved underwriting performance
Reinsurance group RenaissanceRe reported a significantly improved combined ratio of 73.0% in Q1 2026, down from 128.3% a year earlier, as stronger underwriting performance and a more disciplined book of business drove results ahead of analyst expectations.
The massive CoR improvement was driven by RenaissanceRe’s property segment, which boasted a combined ratio of 34.1% as catastrophe losses remained low.
President and CEO Kevin J O’Donnell (pictured) said that the low combined ratio reflected the strength of its underwriting, portfolio construction and disciplined reserving approach.
However, Q1 gross premiums written fell to $3.48 billion compared with $4.16 billion in the prior year quarter, partially due to the absence of large “reinstatement premiums” over the California wildfires which boosted Q1 2025 and some softening in catastrophe-exposed business rates. A reinstatement premium restores insurer coverage after a client exhausts its claim limit.
RenaissanceRe also earned $588.8 million in underwriting profit in the first quarter, compared with a $770.6 million loss in the same quarter last year.
O’Donnell said: “We started the year with a strong quarter, with significant contributions across each of our three drivers of profit. We generated $284.5 million in net income available to common shareholders and $590.5 million in operating income available to common shareholders, and delivered an annualised return on average common equity of 10.5% and annualised operating return on average common equity of 21.8%.”
Gross premiums written decreased by $423.4 million (-19.9%) in its property segment, driven by a decrease of $387.0 million (-23.2%) in its catastrophe class. Excluding reinstatement premiums from the California wildfires, GPW in the catastrophe class decreased by $42.8 million (-3.2%).
The decrease of $36.4 million in the other property class, primarily due to rate decreases in catastrophe-exposed business.
RenaissanceRe dramatically improved its property segment combined ratio to 34.1% compared with 148.7% in Q1 2025, primarily due to lower current accident year net losses.
Casualty and specialty GPW decreased by $253.2 million (-12.5%) to $1.78 billion, primarily driven by decreases in the general casualty and other specialty classes.
However, casualty/specialty combined ratio clawed its way back to 100.4% compared with 111.1% in Q1 2025, again due to the lower impact of large loss events reflected in net claims and claim expense ratio plus the lower underwriting expense ratio.
The market has responded positively to RenaissanceRe writing less business but more profitable business. Its stock has gained approximately 10% year-to-date, outperforming the broader S&P 500 as investors reward the company's shift toward high-margin operating income.
Did you get value from this story? Sign up to our free newsletters and get stories like this sent straight to your inbox.
