RenRe posts Q2 net loss of $325m

RenaissanceRe Holdings recorded a net loss of $325 million in the second quarter of 2022, down from a profit of $457 million in Q2 2021.

Although net investment income rose by more than $26 million to $107 million thanks to higher investment yields, RenRe had net realised and unrealised losses on investments of more than $654 million on the increase in interest rates and downward pressure on the equity market.

However, underwriting income was healthy, at $316 million, and only slightly down from the prior year figure of $329 million.

The combined ratio was 78.3%, up from 72.4% in Q2 2021.

Gross written premium (GWP) was $2.5 billion, up from $2.1 billion a year earlier.

“We reported a strong quarter, with continuing top line growth and solid operating profitability demonstrating the power of our diversified platform,” Kevin O’Donnell, the company’s president and chief executive officer, said.

“Our financial results were driven by strong performance across both underwriting segments, a significant increase in net investment income and an expanding Capital Partners business. We are pleased with our 18.4% annualized operating return on average common equity during the quarter, and are confident that our consistent strategy, leadership in a strengthening market and robust capital position will enable us to continue maximizing shareholder value.”