RenaissanceRe Q3 profit plunges as combined ratio worsens to 79.7%

Reinsurance group RenaissanceRe’s third-quarter net income tumbled to $161.4 million compared with $906.7 million in Q3 2025, driven by lower investment returns and lower underwriting profitability due to large losses and softening premiums.

Gross premiums written fell to $2.1 billion in Q3 compared with £2.3 billion a year ago amid softening reinsurance renewal pricing (down 14% to 19% year-on-year, depending on segment).

The combined ratio deteriorated to 79.7% in the third quarter compared with 68.4% in Q3 last year.

By segment, property gross premiums written shrank by 14.3% to $628.8 million, driven by rate reductions across both catastrophe and other property classes, compared with $733.3 million in Q3 2025.

Property combined ratio worsened dramatically year-on-year to 32.4% compared with 15.5% a year ago, due to higher current accident year net losses and lower net favourable development from prior accident years.

Casualty and specialty gross premiums written worsened by 7.2% to $1.48 billion, principally due to writing less business, compared with $1.6 billion a year ago.

And the casualty and specialty combined ratio rose unfavourably to 110.6% compared with 101.4% in Q3 2025 and 103.3% in Q2 2026, primarily due to the losses from the Middle East war and the Ras Laffan Explosion.

Q3 group underwriting income shrank to $426.1 million compared with $770.2 million a year ago.

Nevertheless, president and CEO Kevin J O’Donnell (pictured) maintained that the reinsurer had delivered “another strong quarter”. Stock market anticipation was muted with shares down 2.9% ahead of the Q3 results being released.

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