RenaissanceRe Holdings Ltd. (NYSE:RNR) today reported net income
available to RenaissanceRe common shareholders of $179.7 million or
$4.01 per diluted common share in the third quarter of 2013, compared to
$180.7 million or $3.62 per diluted common share in the third quarter of
2012. Operating income available to RenaissanceRe common shareholders
was $151.3 million, or $3.36 per diluted common share for the third
quarter of 2013, compared to $104.4 million or $2.07, respectively, in
the third quarter of 2012. The Company reported an annualized return on
average common equity of 22.2% and an annualized operating return on
average common equity of 18.7% in the third quarter of 2013, compared to
22.0% and 12.7%, respectively, in the third quarter of 2012. Book value
per common share increased $3.20, or 4.5%, in the third quarter of 2013
to $74.58, compared to a 4.8% increase in the third quarter of 2012.
Tangible book value per common share plus accumulated dividends
increased $3.49, or 4.9%, in the third quarter of 2013, compared to a
5.3% increase in the third quarter of 2012.
Kevin J. O'Donnell, CEO, commented: "For the third quarter of 2013, we
reported an increase in our tangible book value per share, plus
accumulated dividends of 4.9% and an annualized operating return on
equity of 18.7%. Our results reflect a combination of strong
underwriting performance, driven in part by light catastrophe loss
activity, and solid investment results."
Mr. O'Donnell continued: "Our results were helped in no small part by
our decision earlier in the year to adjust our portfolio, in an
increasingly competitive environment. As we approach the next major
renewal season, our flexible capital structure, multiple underwriting
platforms and proven access to the capital markets position us well to
serve the needs of our clients. Going forward, our ability to be
responsive long term partners to our clients and investors while
remaining disciplined underwriters will be a differentiator in our
business."
DISCONTINUED OPERATIONS
On August 30, 2013, the Company entered into a purchase agreement with a
subsidiary of Munich-American Holding Corporation ("Munich") to sell its
U.S.-based weather and weather-related energy risk management unit
("REAL") and, on October 1, 2013, the Company closed the sale of REAL.
The Company has classified the assets and liabilities associated with
this transaction as held for sale and the financial results are
reflected in the Company's consolidated financial statements as
“discontinued operations.” Except as explicitly described as held for
sale or as discontinued operations, and unless otherwise noted, all
discussions and amounts presented herein relate to the Company's
continuing operations. All prior periods presented have been
reclassified to conform to this form of presentation.
THIRD QUARTER 2013 HIGHLIGHTS (1)
-
Underwriting income of $151.4 million and a combined ratio of 48.6%,
compared to $122.6 million and 53.3%, respectively. The increase in
underwriting income was primarily driven by a $32.1 million increase
in net premiums earned due to growth in gross premiums written
principally in the Company's specialty unit and Lloyd's segment,
combined with a $12.3 million decrease in net claims and claim
expenses, driven by a relatively light loss quarter, partially offset
by a $13.3 million increase in acquisition expenses primarily due to
the Company's specialty unit.
-
Total investment gains of $88.2 million, which includes the sum of net
investment income, net realized and unrealized gains (losses) on
investments and net other-than-temporary impairments, compared to
gains of $122.8 million. Although positive returns were generated in
the Company's fixed maturity investment portfolio during the third
quarter of 2013, the decrease when compared to the third quarter of
2012 was primarily driven by significant credit spread tightening
during the third quarter of 2012. Offsetting this decrease was a $13.8
million increase in net investment income from other investments
principally driven by improved returns in the Company's private equity
investments and an $18.1 million increase in the fair value of the
Company's investment in Essent Group Ltd. (“Essent”), which is
included in other investments.
Underwriting Results by Segment (1)
Reinsurance Segment
Gross premiums written in the Reinsurance segment were $142.7 million,
an increase of $35.1 million, or 32.6%, comprised of:
-
a $22.2 million, or 58.6% increase in the Company's specialty unit to
$60.2 million, compared to $37.9 million, primarily due to higher
quota share premiums in RenaissanceRe Specialty Risks Ltd.
("RenaissanceRe Specialty"); and
-
a $12.8 million, or 18.4% increase in the Company's catastrophe unit.
Managed catastrophe premiums, net of reinstatement premiums written,
totaled $87.9 million, an increase of $18.0 million, or 25.7% for the
third quarter of 2013.
For the the first nine months of 2013, managed catastrophe premiums, net
of reinstatement premiums written, totaled $1,225.9 million, a decrease
of $62.4 million, or 4.8%, principally due to reduced risk-adjusted
pricing in the Florida market as a whole and the non-renewal of a number
of contracts during the January and June renewals. Gross premiums
written in the specialty unit for the first nine months of 2013 were
$201.0 million, an increase of $25.3 million, or 14.4%, principally due
to a number of new contracts and higher renewal rates in certain lines
of business within the specialty unit. The Company's premiums are prone
to significant volatility due to the timing of contract inception and
also due to the business being characterized by a relatively small
number of relatively large transactions.
The Reinsurance segment generated underwriting income of $152.4 million
and a combined ratio of 38.4%, compared to $134.2 million and 41.8%,
respectively. The $18.3 million increase in underwriting income was
driven by a $17.1 million increase in net premiums earned and a
relatively light catastrophe loss quarter resulting in a $21.2 million
decrease in current accident year net claims and claim expenses,
partially offset by a $10.5 million increase in acquisition expenses and
an $8.6 million decrease in favorable development on prior accident
years net claims and claim expenses. The increase in acquisition
expenses is primarily attributable to the specialty unit, which
experienced growth in lines of business written through RenaissanceRe
Specialty that carry a relatively higher acquisition expense ratio.
The Reinsurance segment experienced $8.9 million of favorable
development on prior years reserves, compared to $17.4 million,
including $6.1 million and $2.7 million of favorable development in the
catastrophe and specialty units, respectively. Favorable development on
prior years reserves within the catastrophe unit was primarily due to
$4.7 million of favorable development related to a reduction in the
expected ultimate net loss for the 2008 Hurricanes, Gustav and Ike, as
reported claims came in better than expected. The $2.7 million of prior
accident years favorable development in the specialty unit was
principally due to reported claims coming in better than expected.
Lloyd's Segment
Gross premiums written in the Lloyd's segment were $40.0 million, an
increase of $11.2 million, or 39.1%, primarily due to continued organic
growth within the segment. The Lloyd's segment incurred an underwriting
loss of $2.5 million and a combined ratio of 105.3%, compared to an
underwriting loss of $11.5 million and a combined ratio of 135.6%,
respectively. The decrease in the underwriting loss in the Lloyd's
segment reflects the increase in net earned premiums due to the growth
in gross premiums written noted above.
Other Items (1)
-
The operating results of REAL, have been classified as discontinued
operations in the statements of operations and resulted in a loss of
$9.8 million, compared to a loss of $0.2 million. The $9.8 million
loss from discontinued operations includes an $8.8 million loss on the
sale of REAL and a $1.0 net loss from the operations of REAL in the
third quarter of 2013.
-
Included in net investment income in the third quarter of 2013 is
$18.1 million resulting from an increase in the fair value of the
Company’s investment in Essent, reflecting the Company's estimate of
the fair value of its investment in the common shares of Essent of
$48.0 million at September 30, 2013. On October 31, 2013, Essent began
publicly trading on the New York Stock Exchange ("NYSE") and the
Company currently holds 5,032,575 common shares of Essent. As of the
close of business on November 4, 2013, Essent's common shares were
priced at $22.01 per share on the NYSE. The Company has agreed,
subject to certain exceptions, not to dispose of or hedge any of the
shares of Essent it holds prior to April 28, 2014.
-
During the third quarter of 2013, the Company repurchased 224 thousand
common shares in open market transactions at an aggregate cost of
$18.9 million and at an average share price of $84.41.
-
Subsequent to September 30, 2013 and through the period ended
November 4, 2013, the Company has not repurchased any additional
common shares.
-
Net income attributable to noncontrolling interests of $44.3 million
decreased from $51.1 million, primarily impacted by a decrease in
profitability of DaVinciRe, primarily driven by lower investment
income. The Company's ownership percentage in DaVinciRe was 32.9% at
September 30, 2013, compared to 31.5% at September 30, 2012.
This Press Release includes certain non-GAAP financial measures
including “operating income available to RenaissanceRe common
shareholders,” “operating income available to RenaissanceRe common
shareholders per common share - diluted,” “operating return on average
common equity - annualized,” “managed catastrophe premiums,” "tangible
book value per common share" and "tangible book value per common share
plus accumulated dividends." A reconciliation of such measures to the
most comparable GAAP figures in accordance with Regulation G is
presented in the attached supplemental financial data.
Please refer to the “Investor Information - Financial Reports -
Financial Supplements” section of the Company's website at www.renre.com
for a copy of the Financial Supplement which includes additional
information on the Company's financial performance.
RenaissanceRe Holdings Ltd. will host a conference call on Wednesday,
November 6, 2013 at 10:00 a.m. (ET) to discuss this release. Live
broadcast of the conference call will be available through the “Investor
Information - Company Webcasts” section of RenaissanceRe's website at www.renre.com.
RenaissanceRe Holdings Ltd. is a global provider of reinsurance and
insurance. The Company's business consists of two reportable segments:
(i) Reinsurance, which includes catastrophe reinsurance, specialty
reinsurance and certain property catastrophe and specialty joint
ventures managed by the Company's ventures unit, and (ii) Lloyd's, which
includes reinsurance and insurance business written through Syndicate
1458.
Cautionary Statement under “Safe Harbor” Provisions of the Private
Securities Litigation Reform Act of 1995: Statements made in this
earnings release contain information about the Company's future business
prospects. These statements may be considered “forward-looking.” These
statements are subject to risks and uncertainties that could cause
actual results to differ materially from those set forth in or implied
by such forward-looking statements. For further information regarding
cautionary statements and factors affecting future results, please refer
to RenaissanceRe Holdings Ltd.'s filings with the Securities and
Exchange Commission, including its Annual Reports on Form 10-K and its
Quarterly Reports on Form 10-Q.
(1) All comparisons are with the third quarter of 2012 unless
specifically stated.
RenaissanceRe Holdings Ltd.
|
Summary Consolidated Statements of Operations
|
(in thousands of United States Dollars, except per share amounts and
percentages)
|
(Unaudited)
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Revenues
|
|
|
|
|
|
|
|
|
Gross premiums written
|
|
$
|
182,649
|
|
|
$
|
136,359
|
|
|
$
|
1,521,290
|
|
|
$
|
1,467,846
|
|
Net premiums written
|
|
$
|
127,241
|
|
|
$
|
105,035
|
|
|
$
|
1,123,163
|
|
|
$
|
1,025,240
|
|
Decrease (increase) in unearned premiums
|
|
167,476
|
|
|
157,588
|
|
|
(265,302
|
)
|
|
(239,536
|
)
|
Net premiums earned
|
|
294,717
|
|
|
262,623
|
|
|
857,861
|
|
|
785,704
|
|
Net investment income
|
|
59,931
|
|
|
46,135
|
|
|
129,296
|
|
|
126,725
|
|
Net foreign exchange gains
|
|
488
|
|
|
3,187
|
|
|
170
|
|
|
3,468
|
|
Equity in earnings of other ventures
|
|
7,313
|
|
|
4,310
|
|
|
16,920
|
|
|
16,626
|
|
Other income (loss)
|
|
651
|
|
|
(1,053
|
)
|
|
(2,186
|
)
|
|
730
|
|
Net realized and unrealized gains (losses) on investments
|
|
28,472
|
|
|
75,297
|
|
|
(26,788
|
)
|
|
150,982
|
|
Total other-than-temporary impairments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(395
|
)
|
Portion recognized in other comprehensive income, before taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52
|
|
Net other-than-temporary impairments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(343
|
)
|
Total revenues
|
|
391,572
|
|
|
390,499
|
|
|
975,273
|
|
|
1,083,892
|
|
Expenses
|
|
|
|
|
|
|
|
|
Net claims and claim expenses incurred
|
|
60,928
|
|
|
73,215
|
|
|
192,141
|
|
|
138,318
|
|
Acquisition expenses
|
|
37,699
|
|
|
24,438
|
|
|
94,475
|
|
|
74,157
|
|
Operational expenses
|
|
44,672
|
|
|
42,356
|
|
|
133,447
|
|
|
126,055
|
|
Corporate expenses
|
|
4,307
|
|
|
3,796
|
|
|
30,318
|
|
|
12,567
|
|
Interest expense
|
|
4,298
|
|
|
5,891
|
|
|
13,632
|
|
|
17,325
|
|
Total expenses
|
|
151,904
|
|
|
149,696
|
|
|
464,013
|
|
|
368,422
|
|
Income from continuing operations before taxes
|
|
239,668
|
|
|
240,803
|
|
|
511,260
|
|
|
715,470
|
|
Income tax expense
|
|
(223
|
)
|
|
(144
|
)
|
|
(356
|
)
|
|
(1,008
|
)
|
Income from continuing operations
|
|
239,445
|
|
|
240,659
|
|
|
510,904
|
|
|
714,462
|
|
(Loss) income from discontinued operations
|
|
(9,779
|
)
|
|
(166
|
)
|
|
2,422
|
|
|
(25,505
|
)
|
Net income
|
|
229,666
|
|
|
240,493
|
|
|
513,326
|
|
|
688,957
|
|
Net income attributable to noncontrolling interests
|
|
(44,331
|
)
|
|
(51,083
|
)
|
|
(96,953
|
)
|
|
(138,348
|
)
|
Net income available to RenaissanceRe
|
|
185,335
|
|
|
189,410
|
|
|
416,373
|
|
|
550,609
|
|
Dividends on preference shares
|
|
(5,595
|
)
|
|
(8,750
|
)
|
|
(19,353
|
)
|
|
(26,250
|
)
|
Net income available to RenaissanceRe common shareholders
|
|
$
|
179,740
|
|
|
$
|
180,660
|
|
|
$
|
397,020
|
|
|
$
|
524,359
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations available to RenaissanceRe common
shareholders per common share - basic
|
|
$
|
4.32
|
|
|
$
|
3.67
|
|
|
$
|
8.95
|
|
|
$
|
10.89
|
|
(Loss) income from discontinued operations available to
RenaissanceRe common shareholders per common share - basic
|
|
(0.23
|
)
|
|
—
|
|
|
0.06
|
|
|
(0.51
|
)
|
Net income available to RenaissanceRe common shareholders per common
share - basic
|
|
$
|
4.09
|
|
|
$
|
3.67
|
|
|
$
|
9.01
|
|
|
$
|
10.38
|
|
Income from continuing operations available to RenaissanceRe common
shareholders per common share - diluted
|
|
$
|
4.23
|
|
|
$
|
3.62
|
|
|
$
|
8.79
|
|
|
$
|
10.75
|
|
(Loss) income from discontinued operations available to
RenaissanceRe common shareholders per common share - diluted
|
|
(0.22
|
)
|
|
—
|
|
|
0.05
|
|
|
(0.51
|
)
|
Net income available to RenaissanceRe common shareholders per common
share - diluted
|
|
$
|
4.01
|
|
|
$
|
3.62
|
|
|
$
|
8.84
|
|
|
$
|
10.24
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding - basic
|
|
43,330
|
|
|
48,394
|
|
|
43,412
|
|
|
49,683
|
|
Average shares outstanding - diluted
|
|
44,135
|
|
|
49,119
|
|
|
44,247
|
|
|
50,370
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expense ratio
|
|
20.7
|
%
|
|
27.9
|
%
|
|
22.4
|
%
|
|
17.6
|
%
|
Underwriting expense ratio
|
|
27.9
|
%
|
|
25.4
|
%
|
|
26.6
|
%
|
|
25.5
|
%
|
Combined ratio
|
|
48.6
|
%
|
|
53.3
|
%
|
|
49.0
|
%
|
|
43.1
|
%
|
Operating income available to RenaissanceRe common shareholders per
common share - diluted (1)
|
|
$
|
3.36
|
|
|
$
|
2.07
|
|
|
$
|
9.45
|
|
|
$
|
7.21
|
|
Operating return on average common equity - annualized (1)
|
|
18.7
|
%
|
|
12.7
|
%
|
|
17.7
|
%
|
|
15.4
|
%
|
(1) See Comments on Regulation G for a reconciliation of non-GAAP
financial measures.
|
|
RenaissanceRe Holdings Ltd.
|
Summary Consolidated Balance Sheets
|
(in thousands of United States Dollars, except per share amounts)
|
|
|
|
September 30,
|
|
December 31,
|
|
|
2013
|
|
2012
|
Assets
|
|
|
|
|
Fixed maturity investments trading, at fair value
|
|
$
|
4,751,237
|
|
|
$
|
4,660,168
|
|
Fixed maturity investments available for sale, at fair value
|
|
38,530
|
|
|
83,442
|
|
Total fixed maturity investments, at fair value
|
|
4,789,767
|
|
|
4,743,610
|
|
Short term investments, at fair value
|
|
925,329
|
|
|
821,163
|
|
Equity investments trading, at fair value
|
|
113,986
|
|
|
58,186
|
|
Other investments, at fair value
|
|
500,770
|
|
|
644,711
|
|
Investments in other ventures, under equity method
|
|
97,660
|
|
|
87,724
|
|
Total investments
|
|
6,427,512
|
|
|
6,355,394
|
|
Cash and cash equivalents
|
|
266,350
|
|
|
304,145
|
|
Premiums receivable
|
|
735,937
|
|
|
491,365
|
|
Prepaid reinsurance premiums
|
|
166,340
|
|
|
77,082
|
|
Reinsurance recoverable
|
|
149,201
|
|
|
192,512
|
|
Accrued investment income
|
|
26,887
|
|
|
33,478
|
|
Deferred acquisition costs
|
|
103,844
|
|
|
52,622
|
|
Receivable for investments sold
|
|
240,191
|
|
|
168,673
|
|
Other assets
|
|
113,159
|
|
|
110,777
|
|
Goodwill and other intangibles
|
|
8,978
|
|
|
8,486
|
|
Assets of discontinued operations held for sale
|
|
115,556
|
|
|
134,094
|
|
Total assets
|
|
$
|
8,353,955
|
|
|
$
|
7,928,628
|
|
Liabilities, Noncontrolling Interests and Shareholders' Equity
|
|
|
|
|
Liabilities
|
|
|
|
|
Reserve for claims and claim expenses
|
|
$
|
1,683,709
|
|
|
$
|
1,879,377
|
|
Unearned premiums
|
|
754,077
|
|
|
399,517
|
|
Debt
|
|
249,407
|
|
|
349,339
|
|
Reinsurance balances payable
|
|
358,988
|
|
|
290,419
|
|
Payable for investments purchased
|
|
407,788
|
|
|
278,787
|
|
Other liabilities
|
|
183,362
|
|
|
198,434
|
|
Liabilities of discontinued operations held for sale
|
|
56,275
|
|
|
57,440
|
|
Total liabilities
|
|
3,693,606
|
|
|
3,453,313
|
|
Redeemable noncontrolling interest
|
|
945,915
|
|
|
968,259
|
|
Shareholders' Equity
|
|
|
|
|
Preference shares
|
|
400,000
|
|
|
400,000
|
|
Common shares
|
|
44,391
|
|
|
45,542
|
|
Accumulated other comprehensive income
|
|
4,566
|
|
|
13,622
|
|
Retained earnings
|
|
3,261,757
|
|
|
3,043,901
|
|
Total shareholders' equity attributable to RenaissanceRe
|
|
3,710,714
|
|
|
3,503,065
|
|
Noncontrolling interest
|
|
3,720
|
|
|
3,991
|
|
Total shareholders' equity
|
|
3,714,434
|
|
|
3,507,056
|
|
Total liabilities, noncontrolling interests and shareholders'
equity
|
|
$
|
8,353,955
|
|
|
$
|
7,928,628
|
|
|
|
|
|
|
Book value per common share
|
|
$
|
74.58
|
|
|
$
|
68.14
|
|
|
RenaissanceRe Holdings Ltd.
|
Supplemental Financial Data - Segment Information
|
(in thousands of United States Dollars, except percentages)
|
(Unaudited)
|
|
|
|
Three months ended September 30, 2013
|
|
|
Reinsurance
|
|
Lloyd’s
|
|
Other
|
|
Total
|
Gross premiums written
|
|
$
|
142,695
|
|
|
$
|
39,954
|
|
|
$
|
—
|
|
|
$
|
182,649
|
|
Net premiums written
|
|
$
|
88,097
|
|
|
$
|
39,014
|
|
|
$
|
130
|
|
|
$
|
127,241
|
|
Net premiums earned
|
|
$
|
247,461
|
|
|
$
|
47,150
|
|
|
$
|
106
|
|
|
$
|
294,717
|
|
Net claims and claim expenses incurred
|
|
34,417
|
|
|
28,175
|
|
|
(1,664
|
)
|
|
60,928
|
|
Acquisition expenses
|
|
28,740
|
|
|
8,938
|
|
|
21
|
|
|
37,699
|
|
Operational expenses
|
|
31,876
|
|
|
12,559
|
|
|
237
|
|
|
44,672
|
|
Underwriting income
|
|
$
|
152,428
|
|
|
$
|
(2,522
|
)
|
|
$
|
1,512
|
|
|
151,418
|
|
Net investment income
|
|
|
|
|
|
59,931
|
|
|
59,931
|
|
Net foreign exchange gains
|
|
|
|
|
|
488
|
|
|
488
|
|
Equity in earnings of other ventures
|
|
|
|
|
|
7,313
|
|
|
7,313
|
|
Other income
|
|
|
|
|
|
651
|
|
|
651
|
|
Net realized and unrealized gains on investments
|
|
|
|
|
|
28,472
|
|
|
28,472
|
|
Corporate expenses
|
|
|
|
|
|
(4,307
|
)
|
|
(4,307
|
)
|
Interest expense
|
|
|
|
|
|
(4,298
|
)
|
|
(4,298
|
)
|
Income from continuing operations before taxes
|
|
|
|
|
|
|
|
239,668
|
|
Income tax expense
|
|
|
|
|
|
(223
|
)
|
|
(223
|
)
|
Loss from discontinued operations
|
|
|
|
|
|
(9,779
|
)
|
|
(9,779
|
)
|
Net income attributable to noncontrolling interests
|
|
|
|
|
|
(44,331
|
)
|
|
(44,331
|
)
|
Dividends on preference shares
|
|
|
|
|
|
(5,595
|
)
|
|
(5,595
|
)
|
Net income available to RenaissanceRe common shareholders
|
|
|
|
|
|
|
|
$
|
179,740
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expenses incurred – current accident year
|
|
$
|
43,268
|
|
|
$
|
24,886
|
|
|
$
|
—
|
|
|
$
|
68,154
|
|
Net claims and claim expenses incurred – prior accident years
|
|
(8,851
|
)
|
|
3,289
|
|
|
(1,664
|
)
|
|
(7,226
|
)
|
Net claims and claim expenses incurred – total
|
|
$
|
34,417
|
|
|
$
|
28,175
|
|
|
$
|
(1,664
|
)
|
|
$
|
60,928
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expense ratio – current accident year
|
|
17.5
|
%
|
|
52.8
|
%
|
|
—
|
%
|
|
23.1
|
%
|
Net claims and claim expense ratio – prior accident years
|
|
(3.6
|
)%
|
|
7.0
|
%
|
|
(1,569.8
|
)%
|
|
(2.4
|
)%
|
Net claims and claim expense ratio – calendar year
|
|
13.9
|
%
|
|
59.8
|
%
|
|
(1,569.8
|
)%
|
|
20.7
|
%
|
Underwriting expense ratio
|
|
24.5
|
%
|
|
45.5
|
%
|
|
243.4
|
%
|
|
27.9
|
%
|
Combined ratio
|
|
38.4
|
%
|
|
105.3
|
%
|
|
(1,326.4
|
)%
|
|
48.6
|
%
|
|
|
|
|
Three months ended September 30, 2012
|
|
|
Reinsurance
|
|
Lloyd’s
|
|
Other
|
|
Total
|
Gross premiums written
|
|
$
|
107,637
|
|
|
$
|
28,722
|
|
|
$
|
—
|
|
|
$
|
136,359
|
|
Net premiums written
|
|
$
|
78,164
|
|
|
$
|
26,982
|
|
|
$
|
(111
|
)
|
|
$
|
105,035
|
|
Net premiums earned
|
|
$
|
230,359
|
|
|
$
|
32,375
|
|
|
$
|
(111
|
)
|
|
$
|
262,623
|
|
Net claims and claim expenses incurred
|
|
47,080
|
|
|
26,331
|
|
|
(196
|
)
|
|
73,215
|
|
Acquisition expenses
|
|
18,258
|
|
|
6,051
|
|
|
129
|
|
|
24,438
|
|
Operational expenses
|
|
30,856
|
|
|
11,532
|
|
|
(32
|
)
|
|
42,356
|
|
Underwriting income (loss)
|
|
$
|
134,165
|
|
|
$
|
(11,539
|
)
|
|
$
|
(12
|
)
|
|
122,614
|
|
Net investment income
|
|
|
|
|
|
46,135
|
|
|
46,135
|
|
Net foreign exchange gains
|
|
|
|
|
|
3,187
|
|
|
3,187
|
|
Equity in earnings of other ventures
|
|
|
|
|
|
4,310
|
|
|
4,310
|
|
Other loss
|
|
|
|
|
|
(1,053
|
)
|
|
(1,053
|
)
|
Net realized and unrealized gains on investments
|
|
|
|
|
|
75,297
|
|
|
75,297
|
|
Corporate expenses
|
|
|
|
|
|
(3,796
|
)
|
|
(3,796
|
)
|
Interest expense
|
|
|
|
|
|
(5,891
|
)
|
|
(5,891
|
)
|
Income from continuing operations before taxes
|
|
|
|
|
|
|
|
240,803
|
|
Income tax benefit
|
|
|
|
|
|
(144
|
)
|
|
(144
|
)
|
Loss from discontinued operations
|
|
|
|
|
|
(166
|
)
|
|
(166
|
)
|
Net income attributable to noncontrolling interests
|
|
|
|
|
|
(51,083
|
)
|
|
(51,083
|
)
|
Dividends on preference shares
|
|
|
|
|
|
(8,750
|
)
|
|
(8,750
|
)
|
Net income available to RenaissanceRe common shareholders
|
|
|
|
|
|
|
|
$
|
180,660
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expenses incurred – current accident year
|
|
$
|
64,488
|
|
|
$
|
29,051
|
|
|
$
|
—
|
|
|
$
|
93,539
|
|
Net claims and claim expenses incurred – prior accident years
|
|
(17,408
|
)
|
|
(2,720
|
)
|
|
(196
|
)
|
|
(20,324
|
)
|
Net claims and claim expenses incurred – total
|
|
$
|
47,080
|
|
|
$
|
26,331
|
|
|
$
|
(196
|
)
|
|
$
|
73,215
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expense ratio – current accident year
|
|
28.0
|
%
|
|
89.7
|
%
|
|
—
|
%
|
|
35.6
|
%
|
Net claims and claim expense ratio – prior accident years
|
|
(7.6
|
)%
|
|
(8.4
|
)%
|
|
176.6
|
%
|
|
(7.7
|
)%
|
Net claims and claim expense ratio – calendar year
|
|
20.4
|
%
|
|
81.3
|
%
|
|
176.6
|
%
|
|
27.9
|
%
|
Underwriting expense ratio
|
|
21.4
|
%
|
|
54.3
|
%
|
|
(87.4
|
)%
|
|
25.4
|
%
|
Combined ratio
|
|
41.8
|
%
|
|
135.6
|
%
|
|
89.2
|
%
|
|
53.3
|
%
|
|
RenaissanceRe Holdings Ltd.
|
Supplemental Financial Data - Segment Information
|
(in thousands of United States Dollars, except percentages)
|
(Unaudited)
|
|
|
|
Nine months ended September 30, 2013
|
|
|
Reinsurance
|
|
Lloyd’s
|
|
Other
|
|
Eliminations (1)
|
|
Total
|
Gross premiums written
|
|
$
|
1,339,263
|
|
|
$
|
183,015
|
|
|
$
|
—
|
|
|
$
|
(988
|
)
|
|
$
|
1,521,290
|
|
Net premiums written
|
|
$
|
963,169
|
|
|
$
|
159,581
|
|
|
$
|
413
|
|
|
|
|
$
|
1,123,163
|
|
Net premiums earned
|
|
$
|
730,610
|
|
|
$
|
126,862
|
|
|
$
|
389
|
|
|
|
|
$
|
857,861
|
|
Net claims and claim expenses incurred
|
|
126,243
|
|
|
68,239
|
|
|
(2,341
|
)
|
|
|
|
192,141
|
|
Acquisition expenses
|
|
70,005
|
|
|
24,338
|
|
|
132
|
|
|
|
|
94,475
|
|
Operational expenses
|
|
96,745
|
|
|
36,193
|
|
|
509
|
|
|
|
|
133,447
|
|
Underwriting income
|
|
$
|
437,617
|
|
|
$
|
(1,908
|
)
|
|
$
|
2,089
|
|
|
|
|
437,798
|
|
Net investment income
|
|
|
|
|
|
129,296
|
|
|
|
|
129,296
|
|
Net foreign exchange gains
|
|
|
|
|
|
170
|
|
|
|
|
170
|
|
Equity in earnings of other ventures
|
|
|
|
|
|
16,920
|
|
|
|
|
16,920
|
|
Other loss
|
|
|
|
|
|
(2,186
|
)
|
|
|
|
(2,186
|
)
|
Net realized and unrealized losses on investments
|
|
|
|
|
|
(26,788
|
)
|
|
|
|
(26,788
|
)
|
Corporate expenses
|
|
|
|
|
|
(30,318
|
)
|
|
|
|
(30,318
|
)
|
Interest expense
|
|
|
|
|
|
(13,632
|
)
|
|
|
|
(13,632
|
)
|
Income from continuing operations before taxes
|
|
|
|
|
|
|
|
|
|
511,260
|
|
Income tax expense
|
|
|
|
|
|
(356
|
)
|
|
|
|
(356
|
)
|
Income from discontinued operations
|
|
|
|
|
|
2,422
|
|
|
|
|
2,422
|
|
Net income attributable to noncontrolling interests
|
|
|
|
|
|
(96,953
|
)
|
|
|
|
(96,953
|
)
|
Dividends on preference shares
|
|
|
|
|
|
(19,353
|
)
|
|
|
|
(19,353
|
)
|
Net income available to RenaissanceRe common shareholders
|
|
|
|
|
|
|
|
|
|
$
|
397,020
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expenses incurred – current accident year
|
|
$
|
192,569
|
|
|
$
|
71,274
|
|
|
$
|
—
|
|
|
|
|
$
|
263,843
|
|
Net claims and claim expenses incurred – prior accident years
|
|
(66,326
|
)
|
|
(3,035
|
)
|
|
(2,341
|
)
|
|
|
|
(71,702
|
)
|
Net claims and claim expenses incurred – total
|
|
$
|
126,243
|
|
|
$
|
68,239
|
|
|
$
|
(2,341
|
)
|
|
|
|
$
|
192,141
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expense ratio – current accident year
|
|
26.4
|
%
|
|
56.2
|
%
|
|
—
|
%
|
|
|
|
30.8
|
%
|
Net claims and claim expense ratio – prior accident years
|
|
(9.1
|
)%
|
|
(2.4
|
)%
|
|
(601.8
|
)%
|
|
|
|
(8.4
|
)%
|
Net claims and claim expense ratio – calendar year
|
|
17.3
|
%
|
|
53.8
|
%
|
|
(601.8
|
)%
|
|
|
|
22.4
|
%
|
Underwriting expense ratio
|
|
22.8
|
%
|
|
47.7
|
%
|
|
164.8
|
%
|
|
|
|
26.6
|
%
|
Combined ratio
|
|
40.1
|
%
|
|
101.5
|
%
|
|
(437.0
|
)%
|
|
|
|
49.0
|
%
|
|
|
|
|
Nine months ended September 30, 2012
|
|
|
Reinsurance
|
|
Lloyd’s
|
|
Other
|
|
Eliminations (1)
|
|
Total
|
Gross premiums written
|
|
$
|
1,334,438
|
|
|
$
|
133,836
|
|
|
$
|
—
|
|
|
$
|
(428
|
)
|
|
$
|
1,467,846
|
|
Net premiums written
|
|
$
|
916,171
|
|
|
$
|
109,429
|
|
|
$
|
(360
|
)
|
|
|
|
$
|
1,025,240
|
|
Net premiums earned
|
|
$
|
698,473
|
|
|
$
|
87,566
|
|
|
$
|
(335
|
)
|
|
|
|
$
|
785,704
|
|
Net claims and claim expenses incurred
|
|
90,892
|
|
|
50,292
|
|
|
(2,866
|
)
|
|
|
|
138,318
|
|
Acquisition expenses
|
|
57,742
|
|
|
16,229
|
|
|
186
|
|
|
|
|
74,157
|
|
Operational expenses
|
|
93,246
|
|
|
32,395
|
|
|
414
|
|
|
|
|
126,055
|
|
Underwriting income (loss)
|
|
$
|
456,593
|
|
|
$
|
(11,350
|
)
|
|
$
|
1,931
|
|
|
|
|
447,174
|
|
Net investment income
|
|
|
|
|
|
126,725
|
|
|
|
|
126,725
|
|
Net foreign exchange gains
|
|
|
|
|
|
3,468
|
|
|
|
|
3,468
|
|
Equity in earnings of other ventures
|
|
|
|
|
|
16,626
|
|
|
|
|
16,626
|
|
Other income
|
|
|
|
|
|
730
|
|
|
|
|
730
|
|
Net realized and unrealized gains on investments
|
|
|
|
|
|
150,982
|
|
|
|
|
150,982
|
|
Net other-than-temporary impairments
|
|
|
|
|
|
(343
|
)
|
|
|
|
(343
|
)
|
Corporate expenses
|
|
|
|
|
|
(12,567
|
)
|
|
|
|
(12,567
|
)
|
Interest expense
|
|
|
|
|
|
(17,325
|
)
|
|
|
|
(17,325
|
)
|
Income from continuing operations before taxes
|
|
|
|
|
|
|
|
|
|
715,470
|
|
Income tax expense
|
|
|
|
|
|
(1,008
|
)
|
|
|
|
(1,008
|
)
|
Income from discontinued operations
|
|
|
|
|
|
(25,505
|
)
|
|
|
|
(25,505
|
)
|
Net income attributable to noncontrolling interests
|
|
|
|
|
|
(138,348
|
)
|
|
|
|
(138,348
|
)
|
Dividends on preference shares
|
|
|
|
|
|
(26,250
|
)
|
|
|
|
(26,250
|
)
|
Net income available to RenaissanceRe common shareholders
|
|
|
|
|
|
|
|
|
|
$
|
524,359
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expenses incurred – current accident year
|
|
$
|
196,263
|
|
|
$
|
63,697
|
|
|
$
|
—
|
|
|
|
|
$
|
259,960
|
|
Net claims and claim expenses incurred – prior accident years
|
|
(105,371
|
)
|
|
(13,405
|
)
|
|
(2,866
|
)
|
|
|
|
(121,642
|
)
|
Net claims and claim expenses incurred – total
|
|
$
|
90,892
|
|
|
$
|
50,292
|
|
|
$
|
(2,866
|
)
|
|
|
|
$
|
138,318
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expense ratio – current accident year
|
|
28.1
|
%
|
|
72.7
|
%
|
|
—
|
%
|
|
|
|
33.1
|
%
|
Net claims and claim expense ratio – prior accident years
|
|
(15.1
|
)%
|
|
(15.3
|
)%
|
|
855.5
|
%
|
|
|
|
(15.5
|
)%
|
Net claims and claim expense ratio – calendar year
|
|
13.0
|
%
|
|
57.4
|
%
|
|
855.5
|
%
|
|
|
|
17.6
|
%
|
Underwriting expense ratio
|
|
21.6
|
%
|
|
55.6
|
%
|
|
(179.1
|
)%
|
|
|
|
25.5
|
%
|
Combined ratio
|
|
34.6
|
%
|
|
113.0
|
%
|
|
676.4
|
%
|
|
|
|
43.1
|
%
|
(1)
|
|
Represents $1.0 million of gross premiums ceded from the Lloyd's
segment to the Reinsurance segment for the nine months ended
September 30, 2013 (2012 - $0.4 million).
|
|
RenaissanceRe Holdings Ltd.
|
Supplemental Financial Data - Gross Premiums Written and Managed
Premiums
|
(in thousands of United States Dollars)
|
(Unaudited)
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Reinsurance Segment
|
|
|
|
|
|
|
|
|
Renaissance catastrophe premiums
|
|
$
|
55,849
|
|
|
$
|
44,699
|
|
|
$
|
733,928
|
|
|
$
|
720,220
|
|
Renaissance specialty premiums
|
|
60,156
|
|
|
37,932
|
|
|
198,340
|
|
|
173,255
|
|
Total Renaissance premiums
|
|
116,005
|
|
|
82,631
|
|
|
932,268
|
|
|
893,475
|
|
DaVinci catastrophe premiums
|
|
26,690
|
|
|
25,006
|
|
|
404,310
|
|
|
438,463
|
|
DaVinci specialty premiums
|
|
—
|
|
|
—
|
|
|
2,685
|
|
|
2,500
|
|
Total DaVinci premiums
|
|
26,690
|
|
|
25,006
|
|
|
406,995
|
|
|
440,963
|
|
Total catastrophe unit premiums
|
|
82,539
|
|
|
69,705
|
|
|
1,138,238
|
|
|
1,158,683
|
|
Total specialty unit premiums
|
|
60,156
|
|
|
37,932
|
|
|
201,025
|
|
|
175,755
|
|
Total Reinsurance segment gross premiums written
|
|
$
|
142,695
|
|
|
$
|
107,637
|
|
|
$
|
1,339,263
|
|
|
$
|
1,334,438
|
|
|
|
|
|
|
|
|
|
|
Lloyd's Segment
|
|
|
|
|
|
|
|
|
Specialty
|
|
$
|
36,545
|
|
|
$
|
26,455
|
|
|
$
|
145,509
|
|
|
$
|
98,709
|
|
Catastrophe
|
|
3,409
|
|
|
2,267
|
|
|
37,506
|
|
|
35,127
|
|
Total Lloyd's segment gross premiums written
|
|
$
|
39,954
|
|
|
$
|
28,722
|
|
|
$
|
183,015
|
|
|
$
|
133,836
|
|
|
|
|
|
|
|
|
|
|
Managed Premiums (1)
|
|
|
|
|
|
|
|
|
Total catastrophe unit gross premiums written
|
|
$
|
82,539
|
|
|
$
|
69,705
|
|
|
$
|
1,138,238
|
|
|
$
|
1,158,683
|
|
Catastrophe premiums written on behalf of the Company's joint
venture, Top Layer Re (2)
|
|
1,963
|
|
|
5,382
|
|
|
60,027
|
|
|
70,867
|
|
Catastrophe premiums written in the Lloyd's segment
|
|
3,409
|
|
|
2,267
|
|
|
37,506
|
|
|
35,127
|
|
Total managed catastrophe premiums (1)
|
|
$
|
87,911
|
|
|
$
|
77,354
|
|
|
$
|
1,235,771
|
|
|
$
|
1,264,677
|
|
(1) See Comments on Regulation G for a reconciliation of non-GAAP
financial measures.
|
(2) Top Layer Re is accounted for under the equity method of
accounting.
|
|
RenaissanceRe Holdings Ltd.
|
Supplemental Financial Data - Total Investment Result
|
(in thousands of United States Dollars)
|
(Unaudited)
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Fixed maturity investments
|
|
$
|
24,423
|
|
|
$
|
25,741
|
|
|
$
|
71,148
|
|
|
$
|
75,934
|
|
Short term investments
|
|
563
|
|
|
236
|
|
|
1,318
|
|
|
1,006
|
|
Equity investments trading
|
|
706
|
|
|
181
|
|
|
1,050
|
|
|
532
|
|
Other investments
|
|
|
|
|
|
|
|
|
Hedge funds and private equity investments
|
|
14,179
|
|
|
10,383
|
|
|
31,296
|
|
|
28,443
|
|
Other
|
|
22,735
|
|
|
12,735
|
|
|
32,874
|
|
|
29,295
|
|
Cash and cash equivalents
|
|
47
|
|
|
63
|
|
|
108
|
|
|
143
|
|
|
|
62,653
|
|
|
49,339
|
|
|
137,794
|
|
|
135,353
|
|
Investment expenses
|
|
(2,722
|
)
|
|
(3,204
|
)
|
|
(8,498
|
)
|
|
(8,628
|
)
|
Net investment income
|
|
59,931
|
|
|
46,135
|
|
|
129,296
|
|
|
126,725
|
|
|
|
|
|
|
|
|
|
|
Gross realized gains
|
|
8,813
|
|
|
19,891
|
|
|
60,437
|
|
|
75,635
|
|
Gross realized losses
|
|
(22,241
|
)
|
|
(2,811
|
)
|
|
(41,396
|
)
|
|
(13,055
|
)
|
Net realized (losses) gains on fixed maturity investments
|
|
(13,428
|
)
|
|
17,080
|
|
|
19,041
|
|
|
62,580
|
|
Net unrealized gains (losses) on fixed maturity investments trading
|
|
33,405
|
|
|
56,936
|
|
|
(85,338
|
)
|
|
83,735
|
|
Net realized and unrealized gains (losses) on investments-related
derivatives
|
|
3,557
|
|
|
(955
|
)
|
|
24,488
|
|
|
(2,390
|
)
|
Net realized gains on equity investments trading
|
|
560
|
|
|
—
|
|
|
18,195
|
|
|
—
|
|
Net unrealized gains (losses) on equity investments trading
|
|
4,378
|
|
|
2,236
|
|
|
(3,174
|
)
|
|
7,057
|
|
Net realized and unrealized gains (losses) on investments
|
|
28,472
|
|
|
75,297
|
|
|
(26,788
|
)
|
|
150,982
|
|
Total other-than-temporary impairments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(395
|
)
|
Portion recognized in other comprehensive income, before taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52
|
|
Net other-than-temporary impairments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(343
|
)
|
Change in net unrealized gains on fixed maturity investments
available for sale
|
|
(252
|
)
|
|
1,326
|
|
|
(7,558
|
)
|
|
1,398
|
|
Total investment result
|
|
$
|
88,151
|
|
|
$
|
122,758
|
|
|
$
|
94,950
|
|
|
$
|
278,762
|
|
|
Comments on Regulation G
In addition to the GAAP financial measures set forth in this Press
Release, the Company has included certain non-GAAP financial measures in
this Press Release within the meaning of Regulation G. The Company has
provided these financial measurements in previous investor
communications and the Company's management believes that these
measurements are important to investors and other interested persons,
and that investors and such other persons benefit from having a
consistent basis for comparison between quarters and for the comparison
with other companies within the industry. These measures may not,
however, be comparable to similarly titled measures used by companies
outside of the insurance industry. Investors are cautioned not to place
undue reliance on these non-GAAP measures in assessing the Company's
overall financial performance.
The Company uses “operating income available to RenaissanceRe common
shareholders” as a measure to evaluate the underlying fundamentals of
its operations and believes it to be a useful measure of its corporate
performance. “Operating income available to RenaissanceRe common
shareholders” as used herein differs from “net income available to
RenaissanceRe common shareholders,” which the Company believes is the
most directly comparable GAAP measure, by the exclusion of net realized
and unrealized gains and losses on investments from continuing and
discontinued operations, net other-than-temporary impairments from
continuing operations, and commencing in 2013, also excludes net
realized and unrealized gains and losses on investments-related
derivatives. Prior to 2013, investments-related derivative net realized
and unrealized gains and losses were included in net investment income
and were also included in the calculation of operating income available
to RenaissanceRe common shareholders and related measures. The Company's
management believes that “operating income available to RenaissanceRe
common shareholders” is useful to investors because it more accurately
measures and predicts the Company's results of operations by removing
the variability arising from fluctuations in the Company's fixed
maturity investment portfolio and equity investments trading. The
Company also uses “operating income available to RenaissanceRe common
shareholders” to calculate “operating income available to RenaissanceRe
common shareholders per common share - diluted” and “operating return on
average common equity - annualized”. The following is a reconciliation
of: 1) net income available to RenaissanceRe common shareholders to
operating income available to RenaissanceRe common shareholders; 2) net
income available to RenaissanceRe common shareholders per common share -
diluted to operating income available to RenaissanceRe common
shareholders per common share - diluted; and 3) return on average common
equity - annualized to operating return on average common equity -
annualized:
|
|
Three months ended
|
|
Nine months ended
|
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
(in thousands of United States Dollars, except percentages)
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Net income available to RenaissanceRe common shareholders
|
|
$
|
179,740
|
|
|
$
|
180,660
|
|
|
$
|
397,020
|
|
|
$
|
524,359
|
|
Adjustment for net realized and unrealized (gains) losses on
investments from continuing operations
|
|
(28,472
|
)
|
|
(75,297
|
)
|
|
26,788
|
|
|
(150,982
|
)
|
Adjustment for net realized and unrealized (gains) losses on
investments from discontinued operations
|
|
5
|
|
|
(6
|
)
|
|
18
|
|
|
(2
|
)
|
Adjustment for investments-related derivative net realized and
unrealized (gains) losses included in operating income prior to 2013
|
|
—
|
|
|
(955
|
)
|
|
—
|
|
|
(2,390
|
)
|
Adjustment for net other-than-temporary impairments from continuing
operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
343
|
|
Operating income available to RenaissanceRe common shareholders
|
|
$
|
151,273
|
|
|
$
|
104,402
|
|
|
$
|
423,826
|
|
|
$
|
371,328
|
|
|
|
|
|
|
|
|
|
|
Net income available to RenaissanceRe common shareholders per common
share - diluted
|
|
$
|
4.01
|
|
|
$
|
3.62
|
|
|
$
|
8.84
|
|
|
$
|
10.24
|
|
Adjustment for net realized and unrealized (gains) losses on
investments from continuing operations
|
|
(0.65
|
)
|
|
(1.53
|
)
|
|
0.61
|
|
|
(3.00
|
)
|
Adjustment for net realized and unrealized (gains) losses on
investments from discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Adjustment for investments-related derivative net realized and
unrealized (gains) losses included in operating income prior to 2013
|
|
—
|
|
|
(0.02
|
)
|
|
—
|
|
|
(0.04
|
)
|
Adjustment for net other-than-temporary impairments from continuing
operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
Operating income available to RenaissanceRe common shareholders per
common share - diluted
|
|
$
|
3.36
|
|
|
$
|
2.07
|
|
|
$
|
9.45
|
|
|
$
|
7.21
|
|
|
|
|
|
|
|
|
|
|
Return on average common equity - annualized
|
|
22.2
|
%
|
|
22.0
|
%
|
|
16.6
|
%
|
|
21.7
|
%
|
Adjustment for net realized and unrealized (gains) losses on
investments from continuing operations
|
|
(3.5
|
)%
|
|
(9.2
|
)%
|
|
1.1
|
%
|
|
(6.2
|
)%
|
Adjustment for net realized and unrealized (gains) losses on
investments from discontinued operations
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Adjustment for investments-related derivative net realized and
unrealized (gains) losses included in operating income prior to 2013
|
|
—
|
%
|
|
(0.1
|
)%
|
|
—
|
%
|
|
(0.1
|
)%
|
Adjustment for net other-than-temporary impairments from continuing
operations
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Operating return on average common equity - annualized
|
|
18.7
|
%
|
|
12.7
|
%
|
|
17.7
|
%
|
|
15.4
|
%
|
|
The Company has also included in this Press Release “managed catastrophe
premiums”. “Managed catastrophe premiums” is defined as gross
catastrophe premiums written by Renaissance Reinsurance and its related
joint ventures. “Managed catastrophe premiums” differs from total
catastrophe unit gross premiums written, which the Company believes is
the most directly comparable GAAP measure, due to the inclusion of
catastrophe premiums written on behalf of the Company's joint venture
Top Layer Re, which is accounted for under the equity method of
accounting and the inclusion of catastrophe premiums written on behalf
of the Company's Lloyd's segment. The Company's management believes
“managed catastrophe premiums” is useful to investors and other
interested parties because it provides a measure of total catastrophe
premiums, as applicable, assumed by the Company through its consolidated
subsidiaries and related joint ventures.
The Company has also included in this Press Release “tangible book value
per common share” and “tangible book value per common share plus
accumulated dividends”. “Tangible book value per common share” is
defined as book value per common share excluding goodwill and intangible
assets per share. "Tangible book value per common share plus accumulated
dividends” is defined as book value per common share excluding goodwill
and intangible assets per share, plus accumulated dividends. “Tangible
book value per common share” differs from book value per common share,
which the Company believes is the most directly comparable GAAP measure,
due to the exclusion of goodwill and intangible assets per share. The
Company's management believes “tangible book value per common share” and
“tangible book value per common share plus accumulated dividends” are
useful to investors because they provide a more accurate measure of the
realizable value of shareholder returns, excluding the impact of
goodwill and intangible assets. The following is a reconciliation of
book value per common share to tangible book value per common share and
tangible book value per common share plus accumulated dividends:
|
|
At
|
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
|
2013
|
|
2013
|
|
2013
|
|
2012
|
|
2012
|
Book value per common share
|
|
$
|
74.58
|
|
|
$
|
71.38
|
|
|
$
|
71.07
|
|
|
$
|
68.14
|
|
|
$
|
68.20
|
|
Adjustment for goodwill and other intangibles (1)
|
|
(0.84
|
)
|
|
(0.85
|
)
|
|
(0.85
|
)
|
|
(0.86
|
)
|
|
(0.85
|
)
|
Tangible book value per common share
|
|
73.74
|
|
|
70.53
|
|
|
70.22
|
|
|
67.28
|
|
|
67.35
|
|
Adjustment for accumulated dividends
|
|
12.84
|
|
|
12.56
|
|
|
12.28
|
|
|
12.00
|
|
|
11.73
|
|
Tangible book value per common share plus accumulated dividends
|
|
$
|
86.58
|
|
|
$
|
83.09
|
|
|
$
|
82.50
|
|
|
$
|
79.28
|
|
|
$
|
79.08
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly change in book value per common share
|
|
4.5
|
%
|
|
0.4
|
%
|
|
4.3
|
%
|
|
(0.1
|
)%
|
|
4.8
|
%
|
Quarterly change in tangible book value per common share plus change
in accumulated dividends
|
|
4.9
|
%
|
|
0.8
|
%
|
|
4.8
|
%
|
|
0.3
|
%
|
|
5.3
|
%
|
Year to date change in book value per common share
|
|
9.5
|
%
|
|
|
|
|
|
|
|
15.1
|
%
|
Year to date change in tangible book value per common share plus
change in accumulated dividends
|
|
10.9
|
%
|
|
|
|
|
|
|
|
16.6
|
%
|
(1)
|
|
At September 30, 2013, June 30, 2013, March 31, 2013, December 31,
2012 and September 30, 2012, goodwill and other intangibles included
$28.5 million, $29.3 million, $29.3 million, $30.4 million and $32.2
million, respectively, of goodwill and other intangibles included in
investments in other ventures, under equity method.
|
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