RenaissanceRe Holdings Ltd. (NYSE:RNR) today reported net income
available to RenaissanceRe common shareholders of $170.8 million, or
$4.42 per diluted common share, in the fourth quarter of 2014, compared
to $268.7 million, or $6.05, respectively, in the fourth quarter of
2013. Operating income available to RenaissanceRe common shareholders
was $140.3 million, or $3.62 per diluted common share, for the fourth
quarter of 2014, compared to $206.8 million, or $4.64, respectively, in
the fourth quarter of 2013. The Company reported an annualized return on
average common equity of 20.1% and an annualized operating return on
average common equity of 16.5% in the fourth quarter of 2014, compared
to 31.5% and 24.3%, respectively, in the fourth quarter of 2013. Book
value per common share increased $4.37, or 5.1%, in the fourth quarter
of 2014 to $90.15, compared to a 7.7% increase in the fourth quarter of
2013. Tangible book value per common share plus accumulated dividends
increased 5.5% in the fourth quarter of 2014, compared to an 8.1%
increase in the fourth quarter of 2013.
For 2014, the Company reported net income available to RenaissanceRe
common shareholders of $510.3 million, or $12.60 per diluted common
share, compared to $665.7 million, or $14.87 per diluted common share in
2013. Operating income available to RenaissanceRe common shareholders
was $468.9 million, or $11.56 per diluted common share in 2014, compared
to $630.6 million, or $14.08 per diluted common share in 2013. The
Company reported a return on average common equity of 14.9% and an
operating return on average common equity of 13.7% in 2014, compared to
20.5% and 19.4%, respectively, in 2013. Book value per common share
increased $9.86, or 12.3%, in 2014 to $90.15, compared to a 17.8%
increase in 2013. Tangible book value per common share plus accumulated
dividends increased 13.9% in 2014, compared to a 19.7% increase in 2013.
Kevin J. O'Donnell, CEO, commented: "I am pleased with RenaissanceRe’s
performance, both for the fourth quarter and for the full year. We
achieved solid growth in tangible book value per share plus accumulated
dividends of 5.5% for the quarter and 13.9% for the year, while
demonstrating discipline and objectivity about the risk we assumed and
the pricing required. Our underwriting team executed extremely well
during the most recent renewal period, as pressure on pricing from
abundant capacity persisted."
Mr. O'Donnell continued: "Over the past few years, we have steadily
developed the spectrum of products, platforms and scale we offer, in
anticipation of the evolving needs of our customers. The acquisition of
Platinum Underwriters Holdings, Ltd. will accelerate our efforts,
broadening our client and broker base and our capital flexibility. The
preparation for the integration of the two entities is on track and we
are looking forward to welcoming our new team members."
FOURTH QUARTER 2014 HIGHLIGHTS
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The Company generated underwriting income of $173.5 million and a
combined ratio of 32.3% in the fourth quarter of 2014, compared to
$188.9 million and 26.4%, respectively, in the fourth quarter of 2013.
Underwriting income in the fourth quarter of 2014 was driven by a
relatively light catastrophe loss quarter and $84.7 million of
favorable development on prior accident years net claims and claims
expenses, principally in the Company’s Catastrophe and Specialty
Reinsurance segments.
-
Gross premiums written of $132.8 million increased $48.7 million, or
57.8%, in the fourth quarter of 2014, compared to the fourth quarter
of 2013, with the Company’s Catastrophe Reinsurance, Specialty
Reinsurance and Lloyd’s segments experiencing increases of $27.8
million, $13.4 million and $7.1 million, respectively, as discussed
below.
-
The Company’s total investment result in the fourth quarter of 2014
was $56.1 million, which includes the sum of net investment income,
net realized and unrealized gains on investments and the change in net
unrealized gains on fixed maturity investments available for sale,
compared to $140.1 million in the fourth quarter of 2013. The total
investment result was primarily driven by lower returns in the
Company’s portfolios of private equity and public equity investments,
each principally driven by weaker returns in the public equity markets
during the fourth quarter of 2014, compared to the fourth quarter of
2013.
-
During the fourth quarter of 2014, the Company repurchased an
aggregate of 358 thousand common shares in open market transactions at
an aggregate cost of $35.7 million and at an average share price of
$99.54.
Underwriting Results by Segment
Catastrophe Reinsurance Segment
Gross premiums written in the Catastrophe Reinsurance segment were $9.9
million in the fourth quarter of 2014, an increase of $27.8 million
compared to the fourth quarter of 2013. Gross premiums written in the
fourth quarter of 2013 were impacted by $33.9 million of net negative
reinstatement premiums written due to net reductions in net claims and
claim expenses and related reinstatement premiums with respect to a
number of large loss events, compared to $3.9 million in the fourth
quarter of 2014. Excluding the impact of the net negative reinstatement
premiums written in the fourth quarters of 2014 and 2013, gross premiums
written in the Catastrophe Reinsurance segment were $13.8 million in the
fourth quarter of 2014, a $2.2 million decrease, compared to $16.0
million the fourth quarter of 2013.
Managed catastrophe premiums decreased $1.1 million, or 5.5%, to $19.1
million in the fourth quarter of 2014, compared to $20.2 million in the
fourth quarter of 2013, net of $4.0 million and $34.0 million of net
negative reinstatement premiums written in the fourth quarter of 2014
and 2013, respectively.
The Catastrophe Reinsurance segment generated underwriting income of
$133.0 million and a combined ratio of negative 2.0% in the fourth
quarter of 2014, compared to $171.6 million and negative 12.8% in the
fourth quarter of 2013, respectively. The $38.7 million decrease in
underwriting income in the fourth quarter of 2014, compared to the
fourth quarter of 2013, was driven by a $21.8 million decrease in net
premiums earned, primarily driven by lower gross premiums written during
the preceding twelve months as a result of the continued softening of
market conditions and the Company’s underwriting discipline given
prevailing terms and conditions, a $12.2 million increase in current
accident year net claims and claim expenses and an $11.6 million
decrease in favorable development on prior accident years net claims and
claim expenses.
The Catastrophe Reinsurance segment experienced $47.4 million of
favorable development on prior accident years net claims and claim
expenses in the fourth quarter of 2014, compared to $59.0 million in the
fourth quarter of 2013. The favorable development on prior accident
years net claims and claim expenses in the fourth quarter of 2014 was
principally driven by net reductions to estimated ultimate losses from
Storm Sandy, a number of U.S. wind and thunderstorm events, the 2011
Thailand Floods, Hurricane Irene, the 2013 Eastern European Floods and
the Tohoku Earthquake, which experienced favorable development of $20.1
million, $11.4 million, $9.3 million, $4.5 million, $4.5 million and
$3.5 million, respectively, partially offset by adverse development of
$17.0 million on the 2010 New Zealand Earthquake.
Specialty Reinsurance Segment
Gross premiums written in the Specialty Reinsurance segment were $71.9
million in the fourth quarter of 2014, an increase of $13.4 million, or
23.0%, compared to the fourth quarter of 2013, driven primarily by
increases in certain casualty related lines of business.
The Specialty Reinsurance segment generated underwriting income of $26.9
million and a combined ratio of 59.8% in the fourth quarter of 2014,
compared to $23.0 million and 58.3% in the fourth quarter of 2013,
respectively. The $3.8 million increase in underwriting income in the
fourth quarter of 2014, compared to the fourth quarter of 2013, was
driven by an $11.6 million increase in net premiums earned as a result
of the increase in gross premiums written, noted above, and a $9.2
million increase in favorable development on prior accident year net
claims and claim expenses, partially offset by a $6.2 million increase
in current accident year net claims and claim expenses and a $10.7
million increase in underwriting expenses. The increase in current
accident year net claims and claim expenses was principally due to a
higher level of attritional losses primarily as a result of the increase
in net premiums earned. The Specialty Reinsurance segment experienced
$20.0 million of favorable development on prior years reserves in the
fourth quarter of 2014, compared to $10.9 million in the fourth quarter
of 2013, due to a reduction in estimated ultimate losses with respect to
potential exposure to LIBOR related claims from prior accident years of
$10.5 million, with the remainder driven by better than expected claims
emergence.
The underwriting expense ratio in the Specialty Reinsurance segment
increased 10.2 percentage points to 44.0% in the fourth quarter of 2014,
compared to 33.8% in the fourth quarter of 2013, primarily due to the
relative increase in the percentage of quota share reinsurance premiums,
compared to excess of loss reinsurance premiums, as a percentage of
gross premiums written within the Specialty Reinsurance segment, as
quota share reinsurance typically carries a higher acquisition expense
ratio compared to excess of loss reinsurance premiums, as well as an
increase in operational expenses due to the continued expansion of the
Company’s Specialty Reinsurance segment.
Lloyd’s Segment
Gross premiums written in the Lloyd’s segment were $50.6 million in the
fourth quarter of 2014, an increase of $7.1 million, or 16.4%, compared
to the fourth quarter of 2013, primarily due to Syndicate 1458
continuing to grow organically in the Lloyd’s marketplace, principally
in its property and casualty lines of business, notwithstanding
challenging market conditions.
The Lloyd’s segment generated underwriting income of $8.3 million and a
combined ratio of 85.9% in the fourth quarter of 2014, compared to an
underwriting loss of $3.1 million and a combined ratio of 106.3% in the
fourth quarter of 2013. Impacting underwriting income in the fourth
quarter of 2014 was a $9.7 million increase in net premiums earned and a
$4.0 million decrease in net claims and claim expenses, as discussed
below, partially offset by a $3.1 million increase in acquisition
expenses. The increases in net premiums earned and acquisition expenses
were primarily the result of the increase in gross premiums written
noted above. Also impacting acquisition expenses was the increased
proportion of quota share and delegated authority business written,
which generally carry higher acquisition expenses, compared to
non-proportional business.
The $4.0 million decrease in net claims and claim expenses was
principally due to favorable development of prior accident years net
claims and claim expenses of $12.1 million during the fourth quarter of
2014, compared to $5.2 million of favorable development on prior
accident years net claims and claim expenses in the fourth quarter of
2013, partially offset by a $2.8 million increase in attritional net
claims and claim expenses as a result of the increase in net premiums
earned, noted above.
Other Items
-
Net income attributable to noncontrolling interests in the fourth
quarter of 2014 was $44.2 million and decreased from $54.2 million in
the fourth quarter of 2013, principally due to a decrease in the
profitability of DaVinciRe Holdings Ltd. (“DaVinciRe”), partially
offset by a decrease in the Company’s ownership in DaVinciRe to 23.4%
at December 31, 2014, compared to 27.3% at December 31, 2013.
-
During January 2015, DaVinciRe redeemed a portion of its outstanding
shares from certain existing DaVinciRe shareholders, including the
Company. The net redemption as a result of these transactions was
$225.0 million. The Company’s noncontrolling economic ownership in
DaVinciRe subsequent to these transactions was 26.3%, effective
January 1, 2015.
-
Corporate expenses increased $7.3 million to $10.6 million in the
fourth quarter of 2014, compared to $3.3 million in the fourth quarter
of 2013, primarily due to $6.7 million of expenses associated with the
proposed merger with Platinum Underwriters Holdings, Ltd. (“Platinum”)
announced on November 24, 2014.
-
Effective November 13, 2014, the Company formed RenaissanceRe Upsilon
Fund Ltd. (“Upsilon Fund”), a Bermuda limited segregated cell company.
Upsilon Fund was incorporated to provide a fund structure through
which third party investors can invest in reinsurance risk managed by
the Company. Upsilon Fund raised capital effective January 1, 2015 and
will underwrite reinsurance and retrocessional coverage on a
collateralized basis and invest in insurance-linked securities.
Upsilon Fund will be managed by affiliates of RenaissanceRe and is a
continuation of business written through predecessor entities since
2012.
FULL YEAR 2014 HIGHLIGHTS
-
The Company generated underwriting income of $529.4 million and a
combined ratio of 50.2% in 2014, compared to $626.7 million and 43.8%
in 2013. The decrease in underwriting income was primarily driven by a
$52.2 million decrease in net premiums earned due to a combination of
lower gross premiums written during the preceding twelve months and an
increase in ceded premiums written principally within the Company’s
Catastrophe Reinsurance segment, a $19.0 million increase in
acquisition expenses principally within the Company’s Specialty
Reinsurance segment, and a $26.5 million increase in current accident
year net claims and claim expenses. The increase in acquisition
expenses and current accident year net claims and claim expenses was
principally driven by the growth in the Company’s Specialty
Reinsurance and Lloyd’s segments.
-
Gross premiums written of $1,550.6 million decreased $54.8 million, or
3.4%, in 2014, compared to 2013, with the decrease principally driven
by the Company’s Catastrophe Reinsurance segment which experienced a
decrease of $186.4 million or 16.6%, partially offset by increases in
the Company’s Specialty Reinsurance and Lloyd’s segments’ gross
premiums written of $87.1 million or 33.6%, and $43.1 million or
19.0%, respectively.
-
The Company incurred current accident year net claims and claim
expenses of $341.7 million and a current accident year net claims and
claim expense ratio of 32.2% in 2014, compared to $315.2 million and
28.3% in 2013, respectively, driven by relatively light catastrophe
losses during each respective year. In addition, the Company incurred
favorable development on prior accident years net claims and claim
expenses of $143.8 million in 2014, compared to $144.0 million in
2013, as discussed below.
-
The Company’s total investment result was $164.9 million in 2014,
which includes the sum of net investment income, net realized and
unrealized gains on investments, and the change in net unrealized
gains on fixed maturity investments available for sale, compared to
$235.1 million in 2013, a decrease of $70.2 million. The decrease in
the total investment result was primarily driven by the Company’s
investment in Essent Group Ltd., which resulted in $6.7 million of net
realized and unrealized gains in 2014, compared to $92.4 million of
net unrealized gains in 2013, a decrease of $85.7 million.
-
During 2014, the Company repurchased an aggregate of 5.4 million
common shares in open market transactions at an aggregate cost of
$514.2 million and at an average share price of $96.04.
Underwriting Results by Segment
Catastrophe Reinsurance Segment
Gross premiums written in the Catastrophe Reinsurance segment decreased
by $186.4 million, or 16.6%, to $934.0 million in 2014, compared to
$1,120.4 million in 2013, primarily driven by the continued softening of
market conditions, including reduced risk-adjusted pricing for the
January and June renewals, the Company’s underwriting discipline given
prevailing terms and conditions, and reduced participation on certain
quota share deals. Excluding the impact of $3.9 million and $24.1
million of net negative reinstatement premiums written in 2014 and 2013,
respectively, both due to net reductions in net claims and claim
expenses and related reinstatement premiums with respect to a number of
large loss events, gross premiums written in the Catastrophe Reinsurance
segment decreased $206.6 million, or 18.1%.
For 2014, managed catastrophe premiums, net of negative reinstatement
premiums written of $4.0 million and $24.2 million in 2014 and 2013,
respectively, totaled $1,028.6 million, a decrease of $217.6 million, or
17.5%, compared to 2013.
The Catastrophe Reinsurance segment generated underwriting income of
$450.1 million and a combined ratio of 23.8% in 2014, compared to $558.5
million and 22.8%, respectively, in 2013. The $108.4 million decrease in
underwriting income in the Catastrophe Reinsurance segment in 2014,
compared to 2013, was primarily driven by a $132.9 million decrease in
net premiums earned as a result of the decrease in gross premiums
written, as discussed above, combined with an increase of $25.1 million
in ceded premiums written. The $25.1 million increase in ceded premiums
written in the Catastrophe Reinsurance segment was primarily the result
of additional purchases of retrocessional reinsurance, including
coverage specific to U.S. windstorms in the State of Florida, given the
softening retrocessional marketplace in 2014, compared to 2013.
The Company’s Catastrophe Reinsurance segment experienced a relatively
low level of insured catastrophe loss activity in 2014, resulting in
current accident year net claims and claim expenses of $67.3 million,
compared to $109.9 million in 2013, primarily attributable to a number
of relatively small U.S. wind and thunderstorm events.
During 2014, the Company experienced $65.5 million of favorable
development on prior year reserves within its Catastrophe Reinsurance
segment, compared to $102.0 million in 2013. The favorable development
in 2014 was principally comprised of favorable development of $20.1
million, $13.9 million, $9.3 million, $7.6 million, $6.7 million and
$6.6 million related to Storm Sandy, the 2011 April and May U.S.
Tornadoes, the 2011 Thailand Floods, the 2013 Eastern European Floods, a
2013 U.S. wind and thunderstorm event and the 2008 Hurricanes (Gustav
and Ike), offset by adverse development of $24.7 million related to the
2010 New Zealand Earthquake, each principally the result of changes in
estimated ultimate losses for each respective event, with the remainder
due to net favorable development on a number of other events.
Specialty Reinsurance Segment
Gross premiums written in the Specialty Reinsurance segment were $346.6
million in 2014, an increase of $87.1 million, or 33.6%, compared to
2013, driven primarily by increases in certain financial liability and
casualty related lines of business. The Company’s specialty reinsurance
premiums are prone to significant volatility as this business can be
influenced by a small number of relatively large transactions.
The Company’s Specialty Reinsurance segment generated underwriting
income of $60.7 million and a combined ratio of 76.0% in 2014, compared
to $73.8 million and 65.6%, respectively, in 2013. The $13.0 million
decrease in the Company’s Specialty Reinsurance segment’s underwriting
income during 2014, compared to 2013, was principally driven by a $43.1
million increase in current accident year net claims and claim expenses
and a $31.0 million increase in underwriting expenses, partially offset
by a $39.2 million increase in net premiums earned due to the increase
in gross premiums written, as noted above. The $43.1 million increase in
current accident year net claims and claim expenses was principally
driven by attritional losses arising from the increase in net premiums
earned during 2014, compared to 2013. The $31.0 million increase in
underwriting expenses was primarily driven by the increase in net
premiums earned, combined with the relative increase in the percentage
of quota share reinsurance, compared to excess of loss reinsurance, as a
percentage of gross premiums written within the Specialty Reinsurance
segment, as quota share reinsurance typically carries a higher
acquisition expense ratio, compared to excess of loss reinsurance
premiums. In addition, operational expenses in the Company’s Specialty
Reinsurance segment have increased to support the growth in this segment.
The favorable development of $55.9 million in 2014, compared to $34.1
million in 2013, was primarily driven by reported claims coming in lower
than expected on prior accident years events, as a result of the
application of the Company’s formulaic actuarial reserving methodology,
and a $10.5 million reduction in estimated ultimate losses with respect
to potential exposure to LIBOR related claims from prior accident years.
Lloyd’s Segment
Gross premiums written in the Company’s Lloyd’s segment increased $43.1
million, or 19.0%, to $269.7 million in 2014, compared to $226.5 million
in 2013, primarily due to Syndicate 1458 continuing to grow organically
in the Lloyd’s marketplace, principally in its property and casualty
lines of business, notwithstanding challenging market conditions.
The Company’s Lloyd’s segment generated underwriting income of $5.8
million and a combined ratio of 97.3% in 2014, compared to an
underwriting loss of $5.0 million and a combined ratio of 102.9% in
2013. Impacting the underwriting result in the Lloyd’s segment was a
$41.6 million increase in net premiums earned principally driven by the
increase in gross premiums written, noted above, partially offset by a
$26.1 million increase in current accident year net claims and claim
expenses, and a $12.7 million increase in underwriting expenses, each as
discussed below.
The Company’s Lloyd’s segment experienced current accident year net
claims and claim expenses of $130.1 million and a current accident year
net claims and claim expense ratio of 59.8% in 2014, compared to $103.9
million and 59.1% in 2013, respectively, with the $26.1 million increase
in current accident year net claims and claim expenses principally due
to attritional loss activity driven by the increase in net premiums
earned noted above.
The Company’s Lloyd’s segment incurred underwriting expenses of $98.0
million and an underwriting expense ratio of 45.0% in 2014, compared to
$85.4 million and 48.5% in 2013, respectively, with the $12.7 million
increase in underwriting expenses primarily driven by increased
acquisition expenses as a result of the increased proportion of quota
share and delegated authority business written, which generally carry
higher acquisition expenses, compared to non-proportional business.
Operating expenses of $51.1 million in 2014 were relatively flat
compared to $50.5 million in 2013.
The favorable development of prior accident years net claims and claim
expenses within the Company’s Lloyd’s segment was $16.2 million and $8.3
million during 2014 and 2013, respectively. The favorable development on
prior accident years net claims and claim expenses during 2014 and 2013
within the Company’s Lloyd’s segment was principally due to reported
claims activity coming in lower than expected on prior accident years
events and 2014 was also impacted by a $4.1 million reduction in the
estimated ultimate loss related to Storm Sandy.
Other Items
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Net income attributable to noncontrolling interests in 2014 was $153.5
million, an increase from $151.1 million in 2013, principally due to a
decrease in the Company’s ownership in DaVinciRe to 23.4% at
December 31, 2014, compared to 27.3% at December 31, 2013, partially
offset by a decrease in the profitability of DaVinciRe.
-
Corporate expenses decreased $10.6 million to $23.0 million in 2014,
compared to $33.6 million in 2013, primarily due to costs associated
with senior management transitions in 2013 that did not reoccur in
2014, partially offset by $6.7 million of expenses associated with the
proposed merger with Platinum incurred during the fourth quarter of
2014.
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,
February 4, 2015 at 9:00 am (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 three reportable segments:
(1) Catastrophe Reinsurance, which includes catastrophe reinsurance and
certain property catastrophe joint ventures managed by the Company’s
ventures unit; (2) Specialty Reinsurance, which includes specialty
reinsurance and certain specialty joint ventures managed by the
Company’s ventures unit; and (3) Lloyd’s, which includes reinsurance and
insurance business written through RenaissanceRe Syndicate 1458.
Important Information for Investors and Shareholders
This communication relates in part to a proposed merger between
RenaissanceRe and Platinum that is the subject of a registration
statement on Form S-4 filed with the U.S. Securities and Exchange
Commission (the “SEC”) on December 19, 2014 and declared effective on
January 15, 2015, and the definitive proxy statement/prospectus filed
with the SEC on January 30, 2015, which provide details of the proposed
merger and the attendant benefits and risks. This communication is not a
substitute for the definitive proxy statement/prospectus or any other
document that RenaissanceRe or Platinum may file with the SEC or that
Platinum may send to its shareholders in connection with the proposed
merger. Investors and Platinum security holders are urged to read the
registration statement on Form S-4 and the definitive proxy
statement/prospectus, and all other relevant documents filed with the
SEC or sent to Platinum shareholders as they become available because
they will contain important information about the proposed merger. All
documents, when filed, will be available free of charge at the SEC’s
website (www.sec.gov).
You may also obtain documents filed by RenaissanceRe with the SEC by
contacting RenaissanceRe’s Legal Department at RenaissanceRe Holdings
Ltd., Renaissance House, 12 Crow Lane, Pembroke HM 19 Bermuda, or via
e-mail at investorrelations@renre.com;
and you may obtain copies of documents filed by Platinum with the SEC by
contacting Platinum’s Legal Department at Platinum Underwriters
Holdings, Ltd., Waterloo House, 100 Pitts Bay Road, Pembroke, Bermuda
HM08, or visiting Platinum’s website at www.platinumre.com.
This communication does not constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of any
vote or approval.
RenaissanceRe, Platinum and their respective directors and executive
officers may be deemed to be participants in any solicitation of proxies
in connection with the proposed merger. Information about
RenaissanceRe’s directors and executive officers is available in
RenaissanceRe’s proxy statement dated April 10, 2014 for its 2014 Annual
General Meeting of Shareholders and its Form 8-K filed November 14,
2014. Information about Platinum’s directors and executive officers is
available in Platinum’s proxy statement dated March 21, 2014 for its
2014 Annual General Meeting of Shareholders and in the definitive proxy
statement/prospectus. Other information regarding the participants in
the proxy solicitation and a description of their direct and indirect
interests, by security holdings or otherwise, is contained in the
definitive proxy statement/prospectus and other relevant materials filed
with the SEC. Investors should read the definitive proxy
statement/prospectus carefully before making any voting or investment
decisions.
Cautionary Statement Regarding Forward Looking Statements
Any forward-looking statements made in this Press Release reflect
RenaissanceRe’s current views with respect to future events and
financial performance and are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
These statements are subject to numerous factors that could cause actual
results to differ materially from those set forth in or implied by such
forward-looking statements, including the following: the occurrence of
any event, change or other circumstances that could give rise to the
termination of the merger agreement; the inability to obtain Platinum’s
shareholder approval or the failure to satisfy other conditions to
completion of the merger, including receipt of regulatory approvals;
risks that the proposed transaction disrupts each company’s current
plans and operations; the ability to retain key personnel; the ability
to recognize the benefits of the merger; the amount of the costs, fees,
expenses and charges related to the merger; the frequency and severity
of catastrophic and other events; uncertainties in the companies’
reserving processes; the lowering or loss of any of the financial
strength, claims paying or enterprise wide risk management ratings of
either company or their respective subsidiaries or joint ventures; risks
associated with appropriately modeling, pricing for, and contractually
addressing new or potential factors in loss emergence; risks that the
companies might be bound to policyholder obligations beyond their
underwriting intent; risks due to the companies’ reliance on a small and
decreasing number of reinsurance brokers and other distribution
services; risks relating to operating in a highly competitive
environment; risks relating to deteriorating market conditions; the risk
that the companies’ customers may fail to make premium payments due to
them; the risk of failures of the companies’ reinsurers, brokers or
other counterparties to honor their obligations to the companies; a
contention by the Internal Revenue Service that Renaissance Reinsurance
Ltd., Platinum Underwriters Bermuda, Ltd. or any of the companies’ other
Bermuda, or non-U.S., subsidiaries, is subject to U.S. taxation; other
risks relating to potential adverse tax developments; risks relating to
adverse legislative developments; risks associated with the companies’
investment portfolios; changes in economic conditions or inflation; and
other factors affecting future results disclosed in RenaissanceRe’s
filings with the SEC, including its Annual Reports on Form 10-K and
Quarterly Reports on Form 10-Q and the definitive proxy
statement/prospectus.
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RenaissanceRe Holdings Ltd.
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Summary Consolidated Statements of Operations
|
(in thousands of United States Dollars, except per share amounts and
percentages)
|
(Unaudited)
|
|
|
Three months ended
|
|
Twelve months ended
|
|
|
December 31, 2014
|
|
December 31, 2013
|
|
December 31, 2014
|
|
December 31, 2013
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross premiums written
|
|
$
|
132,780
|
|
|
$
|
84,122
|
|
|
$
|
1,550,572
|
|
|
$
|
1,605,412
|
|
Net premiums written
|
|
$
|
111,769
|
|
|
$
|
80,784
|
|
|
$
|
1,068,236
|
|
|
$
|
1,203,947
|
|
Decrease (increase) in unearned premiums
|
|
144,718
|
|
|
175,981
|
|
|
(5,820
|
)
|
|
(89,321
|
)
|
Net premiums earned
|
|
256,487
|
|
|
256,765
|
|
|
1,062,416
|
|
|
1,114,626
|
|
Net investment income
|
|
25,886
|
|
|
78,732
|
|
|
124,316
|
|
|
208,028
|
|
Net foreign exchange (losses) gains
|
|
(107
|
)
|
|
1,747
|
|
|
6,260
|
|
|
1,917
|
|
Equity in earnings of other ventures
|
|
4,838
|
|
|
6,274
|
|
|
26,075
|
|
|
23,194
|
|
Other income (loss)
|
|
1,219
|
|
|
(173
|
)
|
|
(423
|
)
|
|
(2,359
|
)
|
Net realized and unrealized gains on investments
|
|
30,475
|
|
|
61,864
|
|
|
41,433
|
|
|
35,076
|
|
Total revenues
|
|
318,798
|
|
|
405,209
|
|
|
1,260,077
|
|
|
1,380,482
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expenses incurred
|
|
(12,003
|
)
|
|
(20,854
|
)
|
|
197,947
|
|
|
171,287
|
|
Acquisition expenses
|
|
39,749
|
|
|
31,026
|
|
|
144,476
|
|
|
125,501
|
|
Operational expenses
|
|
55,202
|
|
|
57,658
|
|
|
190,639
|
|
|
191,105
|
|
Corporate expenses
|
|
10,583
|
|
|
3,304
|
|
|
22,987
|
|
|
33,622
|
|
Interest expense
|
|
4,289
|
|
|
4,297
|
|
|
17,164
|
|
|
17,929
|
|
Total expenses
|
|
97,820
|
|
|
75,431
|
|
|
573,213
|
|
|
539,444
|
|
Income from continuing operations before taxes
|
|
220,978
|
|
|
329,778
|
|
|
686,864
|
|
|
841,038
|
|
Income tax expense
|
|
(401
|
)
|
|
(1,336
|
)
|
|
(608
|
)
|
|
(1,692
|
)
|
Income from continuing operations
|
|
220,577
|
|
|
328,442
|
|
|
686,256
|
|
|
839,346
|
|
Income from discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,422
|
|
Net income
|
|
220,577
|
|
|
328,442
|
|
|
686,256
|
|
|
841,768
|
|
Net income attributable to noncontrolling interests
|
|
(44,215
|
)
|
|
(54,191
|
)
|
|
(153,538
|
)
|
|
(151,144
|
)
|
Net income available to RenaissanceRe
|
|
176,362
|
|
|
274,251
|
|
|
532,718
|
|
|
690,624
|
|
Dividends on preference shares
|
|
(5,595
|
)
|
|
(5,595
|
)
|
|
(22,381
|
)
|
|
(24,948
|
)
|
Net income available to RenaissanceRe common shareholders
|
|
$
|
170,767
|
|
|
$
|
268,656
|
|
|
$
|
510,337
|
|
|
$
|
665,676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations available to RenaissanceRe common
shareholders per common share - basic
|
|
$
|
4.46
|
|
|
$
|
6.14
|
|
|
$
|
12.77
|
|
|
$
|
15.08
|
|
Income from discontinued operations available to RenaissanceRe
common shareholders per common share - basic
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.06
|
|
Net income available to RenaissanceRe common shareholders per common
share - basic
|
|
$
|
4.46
|
|
|
$
|
6.14
|
|
|
$
|
12.77
|
|
|
$
|
15.14
|
|
Income from continuing operations available to RenaissanceRe common
shareholders per common share - diluted
|
|
$
|
4.42
|
|
|
$
|
6.05
|
|
|
$
|
12.60
|
|
|
$
|
14.82
|
|
Income from discontinued operations available to RenaissanceRe
common shareholders per common share - diluted
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.05
|
|
Net income available to RenaissanceRe common shareholders per common
share - diluted
|
|
$
|
4.42
|
|
|
$
|
6.05
|
|
|
$
|
12.60
|
|
|
$
|
14.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding - basic
|
|
37,752
|
|
|
43,160
|
|
|
39,425
|
|
|
43,349
|
|
Average shares outstanding - diluted
|
|
38,145
|
|
|
43,769
|
|
|
39,968
|
|
|
44,128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expense ratio
|
|
(4.7
|
)%
|
|
(8.1
|
)%
|
|
18.6
|
%
|
|
15.4
|
%
|
Underwriting expense ratio
|
|
37.0
|
%
|
|
34.5
|
%
|
|
31.6
|
%
|
|
28.4
|
%
|
Combined ratio
|
|
32.3
|
%
|
|
26.4
|
%
|
|
50.2
|
%
|
|
43.8
|
%
|
Operating income available to RenaissanceRe common shareholders per
common share - diluted (1)
|
|
$
|
3.62
|
|
|
$
|
4.64
|
|
|
$
|
11.56
|
|
|
$
|
14.08
|
|
Operating return on average common equity - annualized (1)
|
|
16.5
|
%
|
|
24.3
|
%
|
|
13.7
|
%
|
|
19.4
|
%
|
(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)
|
|
|
|
|
|
|
|
|
December 31, 2014
|
|
December 31, 2013
|
Assets
|
|
(Unaudited)
|
|
(Audited)
|
Fixed maturity investments trading, at fair value
|
|
$
|
4,756,685
|
|
|
$
|
4,809,036
|
Fixed maturity investments available for sale, at fair value
|
|
26,885
|
|
|
34,241
|
Total fixed maturity investments, at fair value
|
|
4,783,570
|
|
|
4,843,277
|
Short term investments, at fair value
|
|
1,013,222
|
|
|
1,044,779
|
Equity investments trading, at fair value
|
|
322,098
|
|
|
254,776
|
Other investments, at fair value
|
|
504,147
|
|
|
573,264
|
Investments in other ventures, under equity method
|
|
120,713
|
|
|
105,616
|
Total investments
|
|
6,743,750
|
|
|
6,821,712
|
Cash and cash equivalents
|
|
525,584
|
|
|
408,032
|
Premiums receivable
|
|
440,007
|
|
|
474,087
|
Prepaid reinsurance premiums
|
|
94,810
|
|
|
66,132
|
Reinsurance recoverable
|
|
66,694
|
|
|
101,025
|
Accrued investment income
|
|
26,509
|
|
|
34,065
|
Deferred acquisition costs
|
|
110,059
|
|
|
81,684
|
Receivable for investments sold
|
|
52,390
|
|
|
75,845
|
Other assets
|
|
135,845
|
|
|
108,438
|
Goodwill and other intangibles
|
|
7,902
|
|
|
8,111
|
Total assets
|
|
$
|
8,203,550
|
|
|
$
|
8,179,131
|
Liabilities, Noncontrolling Interests and Shareholders’ Equity
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Reserve for claims and claim expenses
|
|
$
|
1,412,510
|
|
|
$
|
1,563,730
|
Unearned premiums
|
|
512,386
|
|
|
477,888
|
Debt
|
|
249,522
|
|
|
249,430
|
Reinsurance balances payable
|
|
454,580
|
|
|
293,022
|
Payable for investments purchased
|
|
203,021
|
|
|
193,221
|
Other liabilities
|
|
374,108
|
|
|
397,596
|
Total liabilities
|
|
3,206,127
|
|
|
3,174,887
|
Redeemable noncontrolling interest
|
|
1,131,708
|
|
|
1,099,860
|
Shareholders’ Equity
|
|
|
|
|
|
Preference shares
|
|
400,000
|
|
|
400,000
|
Common shares
|
|
38,442
|
|
|
43,646
|
Accumulated other comprehensive income
|
|
3,416
|
|
|
4,131
|
Retained earnings
|
|
3,423,857
|
|
|
3,456,607
|
Total shareholders’ equity attributable to RenaissanceRe
|
|
3,865,715
|
|
|
3,904,384
|
Total liabilities, noncontrolling interests and shareholders’
equity
|
|
$
|
8,203,550
|
|
|
$
|
8,179,131
|
|
|
|
|
|
|
Book value per common share
|
|
$
|
90.15
|
|
|
$
|
80.29
|
|
|
|
|
|
|
|
|
RenaissanceRe Holdings Ltd.
|
Supplemental Financial Data - Segment Information
|
(in thousands of United States Dollars, except percentages)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, 2014
|
|
|
Catastrophe
Reinsurance
|
|
Specialty
Reinsurance
|
|
Lloyd’s
|
|
Other
|
|
Total
|
Gross premiums written (1)
|
|
$
|
9,923
|
|
|
$
|
71,911
|
|
|
$
|
50,637
|
|
|
$
|
309
|
|
|
$
|
132,780
|
|
Net premiums written
|
|
$
|
6,614
|
|
|
$
|
62,233
|
|
|
$
|
42,581
|
|
|
$
|
341
|
|
|
$
|
111,769
|
|
Net premiums earned
|
|
$
|
130,390
|
|
|
$
|
66,846
|
|
|
$
|
58,909
|
|
|
$
|
342
|
|
|
$
|
256,487
|
|
Net claims and claim expenses incurred
|
|
(40,762
|
)
|
|
10,587
|
|
|
23,406
|
|
|
(5,234
|
)
|
|
(12,003
|
)
|
Acquisition expenses
|
|
9,098
|
|
|
16,884
|
|
|
13,624
|
|
|
143
|
|
|
39,749
|
|
Operational expenses
|
|
29,078
|
|
|
12,516
|
|
|
13,549
|
|
|
59
|
|
|
55,202
|
|
Underwriting income
|
|
$
|
132,976
|
|
|
$
|
26,859
|
|
|
$
|
8,330
|
|
|
$
|
5,374
|
|
|
173,539
|
|
Net investment income
|
|
|
|
|
|
|
|
|
|
|
25,886
|
|
|
25,886
|
|
Net foreign exchange losses
|
|
|
|
|
|
|
|
|
|
|
(107
|
)
|
|
(107
|
)
|
Equity in earnings of other ventures
|
|
|
|
|
|
|
|
|
|
|
4,838
|
|
|
4,838
|
|
Other income
|
|
|
|
|
|
|
|
|
|
|
1,219
|
|
|
1,219
|
|
Net realized and unrealized gains on investments
|
|
|
|
|
|
|
|
|
|
|
30,475
|
|
|
30,475
|
|
Corporate expenses
|
|
|
|
|
|
|
|
|
|
|
(10,583
|
)
|
|
(10,583
|
)
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
(4,289
|
)
|
|
(4,289
|
)
|
Income before taxes and noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
220,978
|
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
(401
|
)
|
|
(401
|
)
|
Net income attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
(44,215
|
)
|
|
(44,215
|
)
|
Dividends on preference shares
|
|
|
|
|
|
|
|
|
|
|
(5,595
|
)
|
|
(5,595
|
)
|
Net income available to RenaissanceRe common shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
170,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expenses incurred – current accident year
|
|
$
|
6,605
|
|
|
$
|
30,602
|
|
|
$
|
35,472
|
|
|
$
|
—
|
|
|
$
|
72,679
|
|
Net claims and claim expenses incurred – prior accident years
|
|
(47,367
|
)
|
|
(20,015
|
)
|
|
(12,066
|
)
|
|
(5,234
|
)
|
|
(84,682
|
)
|
Net claims and claim expenses incurred – total
|
|
$
|
(40,762
|
)
|
|
$
|
10,587
|
|
|
$
|
23,406
|
|
|
$
|
(5,234
|
)
|
|
$
|
(12,003
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expense ratio – current accident year
|
|
5.1
|
%
|
|
45.8
|
%
|
|
60.2
|
%
|
|
—
|
%
|
|
28.3
|
%
|
Net claims and claim expense ratio – prior accident years
|
|
(36.4
|
)%
|
|
(30.0
|
)%
|
|
(20.5
|
)%
|
|
(1,530.4
|
)%
|
|
(33.0
|
)%
|
Net claims and claim expense ratio – calendar year
|
|
(31.3
|
)%
|
|
15.8
|
%
|
|
39.7
|
%
|
|
(1,530.4
|
)%
|
|
(4.7
|
)%
|
Underwriting expense ratio
|
|
29.3
|
%
|
|
44.0
|
%
|
|
46.2
|
%
|
|
59.1
|
%
|
|
37.0
|
%
|
Combined ratio
|
|
(2.0
|
)%
|
|
59.8
|
%
|
|
85.9
|
%
|
|
(1,471.3
|
)%
|
|
32.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, 2013
|
|
|
Catastrophe
Reinsurance
|
|
Specialty
Reinsurance
|
|
Lloyd’s
|
|
Other
|
|
Total
|
Gross premiums written
|
|
$
|
(17,859
|
)
|
|
$
|
58,464
|
|
|
$
|
43,517
|
|
|
$
|
—
|
|
|
$
|
84,122
|
|
Net premiums written
|
|
$
|
(21,507
|
)
|
|
$
|
59,978
|
|
|
$
|
42,116
|
|
|
$
|
197
|
|
|
$
|
80,784
|
|
Net premiums earned
|
|
$
|
152,155
|
|
|
$
|
55,246
|
|
|
$
|
49,167
|
|
|
$
|
197
|
|
|
$
|
256,765
|
|
Net claims and claim expenses incurred
|
|
(64,612
|
)
|
|
13,513
|
|
|
27,454
|
|
|
2,791
|
|
|
(20,854
|
)
|
Acquisition expenses
|
|
11,295
|
|
|
9,399
|
|
|
10,485
|
|
|
(153
|
)
|
|
31,026
|
|
Operational expenses
|
|
33,843
|
|
|
9,322
|
|
|
14,347
|
|
|
146
|
|
|
57,658
|
|
Underwriting income (loss)
|
|
$
|
171,629
|
|
|
$
|
23,012
|
|
|
$
|
(3,119
|
)
|
|
$
|
(2,587
|
)
|
|
188,935
|
|
Net investment income
|
|
|
|
|
|
|
|
|
|
|
78,732
|
|
|
78,732
|
|
Net foreign exchange gains
|
|
|
|
|
|
|
|
|
|
|
1,747
|
|
|
1,747
|
|
Equity in earnings of other ventures
|
|
|
|
|
|
|
|
|
|
|
6,274
|
|
|
6,274
|
|
Other loss
|
|
|
|
|
|
|
|
|
|
|
(173
|
)
|
|
(173
|
)
|
Net realized and unrealized gains on investments
|
|
|
|
|
|
|
|
|
|
|
61,864
|
|
|
61,864
|
|
Corporate expenses
|
|
|
|
|
|
|
|
|
|
|
(3,304
|
)
|
|
(3,304
|
)
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
(4,297
|
)
|
|
(4,297
|
)
|
Income before taxes and noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
329,778
|
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
(1,336
|
)
|
|
(1,336
|
)
|
Net income attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
(54,191
|
)
|
|
(54,191
|
)
|
Dividends on preference shares
|
|
|
|
|
|
|
|
|
|
|
(5,595
|
)
|
|
(5,595
|
)
|
Net income available to RenaissanceRe common shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
268,656
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expenses incurred – current accident year
|
|
$
|
(5,641
|
)
|
|
$
|
24,364
|
|
|
$
|
32,675
|
|
|
$
|
—
|
|
|
$
|
51,398
|
|
Net claims and claim expenses incurred – prior accident years
|
|
(58,971
|
)
|
|
(10,851
|
)
|
|
(5,221
|
)
|
|
2,791
|
|
|
(72,252
|
)
|
Net claims and claim expenses incurred – total
|
|
$
|
(64,612
|
)
|
|
$
|
13,513
|
|
|
$
|
27,454
|
|
|
$
|
2,791
|
|
|
$
|
(20,854
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expense ratio – current accident year
|
|
(3.7
|
)%
|
|
44.1
|
%
|
|
66.5
|
%
|
|
—
|
%
|
|
20.0
|
%
|
Net claims and claim expense ratio – prior accident years
|
|
(38.8
|
)%
|
|
(19.6
|
)%
|
|
(10.7
|
)%
|
|
1,416.8
|
%
|
|
(28.1
|
)%
|
Net claims and claim expense ratio – calendar year
|
|
(42.5
|
)%
|
|
24.5
|
%
|
|
55.8
|
%
|
|
1,416.8
|
%
|
|
(8.1
|
)%
|
Underwriting expense ratio
|
|
29.7
|
%
|
|
33.8
|
%
|
|
50.5
|
%
|
|
(3.6
|
)%
|
|
34.5
|
%
|
Combined ratio
|
|
(12.8
|
)%
|
|
58.3
|
%
|
|
106.3
|
%
|
|
1,413.2
|
%
|
|
26.4
|
%
|
(1) Included in gross premiums written in the Other category is the
elimination of inter-segment gross premiums written of $0.3 million for
the three months ended December 31, 2014.
RenaissanceRe Holdings Ltd.
|
Supplemental Financial Data - Segment Information
|
(in thousands of United States Dollars, except percentages)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended December 31, 2014
|
|
|
Catastrophe
Reinsurance
|
|
Specialty
Reinsurance
|
|
Lloyd’s
|
|
Other
|
|
Total
|
Gross premiums written (1)
|
|
$
|
933,969
|
|
|
$
|
346,638
|
|
|
$
|
269,656
|
|
|
$
|
309
|
|
|
$
|
1,550,572
|
|
Net premiums written
|
|
$
|
541,608
|
|
|
$
|
295,855
|
|
|
$
|
230,429
|
|
|
$
|
344
|
|
|
$
|
1,068,236
|
|
Net premiums earned
|
|
$
|
590,845
|
|
|
$
|
253,537
|
|
|
$
|
217,666
|
|
|
$
|
368
|
|
|
$
|
1,062,416
|
|
Net claims and claim expenses incurred
|
|
1,757
|
|
|
88,502
|
|
|
113,825
|
|
|
(6,137
|
)
|
|
197,947
|
|
Acquisition expenses
|
|
43,161
|
|
|
60,936
|
|
|
46,927
|
|
|
(6,548
|
)
|
|
144,476
|
|
Operational expenses
|
|
95,851
|
|
|
43,370
|
|
|
51,115
|
|
|
303
|
|
|
190,639
|
|
Underwriting income
|
|
$
|
450,076
|
|
|
$
|
60,729
|
|
|
$
|
5,799
|
|
|
$
|
12,750
|
|
|
529,354
|
|
Net investment income
|
|
|
|
|
|
|
|
|
|
|
124,316
|
|
|
124,316
|
|
Net foreign exchange gains
|
|
|
|
|
|
|
|
|
|
|
6,260
|
|
|
6,260
|
|
Equity in earnings of other ventures
|
|
|
|
|
|
|
|
|
|
|
26,075
|
|
|
26,075
|
|
Other loss
|
|
|
|
|
|
|
|
|
|
|
(423
|
)
|
|
(423
|
)
|
Net realized and unrealized gains on investments
|
|
|
|
|
|
|
|
|
|
|
41,433
|
|
|
41,433
|
|
Corporate expenses
|
|
|
|
|
|
|
|
|
|
|
(22,987
|
)
|
|
(22,987
|
)
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
(17,164
|
)
|
|
(17,164
|
)
|
Income before taxes and noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
686,864
|
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
(608
|
)
|
|
(608
|
)
|
Net income attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
(153,538
|
)
|
|
(153,538
|
)
|
Dividends on preference shares
|
|
|
|
|
|
|
|
|
|
|
(22,381
|
)
|
|
(22,381
|
)
|
Net income available to RenaissanceRe common shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
510,337
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expenses incurred – current accident year
|
|
$
|
67,268
|
|
|
$
|
144,411
|
|
|
$
|
130,066
|
|
|
$
|
—
|
|
|
$
|
341,745
|
|
Net claims and claim expenses incurred – prior accident years
|
|
(65,511
|
)
|
|
(55,909
|
)
|
|
(16,241
|
)
|
|
(6,137
|
)
|
|
(143,798
|
)
|
Net claims and claim expenses incurred – total
|
|
$
|
1,757
|
|
|
$
|
88,502
|
|
|
$
|
113,825
|
|
|
$
|
(6,137
|
)
|
|
$
|
197,947
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expense ratio – current accident year
|
|
11.4
|
%
|
|
57.0
|
%
|
|
59.8
|
%
|
|
—
|
%
|
|
32.2
|
%
|
Net claims and claim expense ratio – prior accident years
|
|
(11.1
|
)%
|
|
(22.1
|
)%
|
|
(7.5
|
)%
|
|
(1,667.7
|
)%
|
|
(13.6
|
)%
|
Net claims and claim expense ratio – calendar year
|
|
0.3
|
%
|
|
34.9
|
%
|
|
52.3
|
%
|
|
(1,667.7
|
)%
|
|
18.6
|
%
|
Underwriting expense ratio
|
|
23.5
|
%
|
|
41.1
|
%
|
|
45.0
|
%
|
|
(1,697.0
|
)%
|
|
31.6
|
%
|
Combined ratio
|
|
23.8
|
%
|
|
76.0
|
%
|
|
97.3
|
%
|
|
(3,364.7
|
)%
|
|
50.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended December 31, 2013
|
|
|
Catastrophe
Reinsurance
|
|
Specialty
Reinsurance
|
|
Lloyd’s
|
|
Other
|
|
Total
|
Gross premiums written (1)
|
|
$
|
1,120,379
|
|
|
$
|
259,489
|
|
|
$
|
226,532
|
|
|
$
|
(988
|
)
|
|
$
|
1,605,412
|
|
Net premiums written
|
|
$
|
753,078
|
|
|
$
|
248,562
|
|
|
$
|
201,697
|
|
|
$
|
610
|
|
|
$
|
1,203,947
|
|
Net premiums earned
|
|
$
|
723,705
|
|
|
$
|
214,306
|
|
|
$
|
176,029
|
|
|
$
|
586
|
|
|
$
|
1,114,626
|
|
Net claims and claim expenses incurred
|
|
7,908
|
|
|
67,236
|
|
|
95,693
|
|
|
450
|
|
|
171,287
|
|
Acquisition expenses
|
|
49,161
|
|
|
41,538
|
|
|
34,823
|
|
|
(21
|
)
|
|
125,501
|
|
Operational expenses
|
|
108,130
|
|
|
31,780
|
|
|
50,540
|
|
|
655
|
|
|
191,105
|
|
Underwriting income (loss)
|
|
$
|
558,506
|
|
|
$
|
73,752
|
|
|
$
|
(5,027
|
)
|
|
$
|
(498
|
)
|
|
626,733
|
|
Net investment income
|
|
|
|
|
|
|
|
|
|
|
208,028
|
|
|
208,028
|
|
Net foreign exchange gains
|
|
|
|
|
|
|
|
|
|
|
1,917
|
|
|
1,917
|
|
Equity in earnings of other ventures
|
|
|
|
|
|
|
|
|
|
|
23,194
|
|
|
23,194
|
|
Other loss
|
|
|
|
|
|
|
|
|
|
|
(2,359
|
)
|
|
(2,359
|
)
|
Net realized and unrealized gains on investments
|
|
|
|
|
|
|
|
|
|
|
35,076
|
|
|
35,076
|
|
Corporate expenses
|
|
|
|
|
|
|
|
|
|
|
(33,622
|
)
|
|
(33,622
|
)
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
(17,929
|
)
|
|
(17,929
|
)
|
Income from continuing operations before taxes and noncontrolling
interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
841,038
|
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
(1,692
|
)
|
|
(1,692
|
)
|
Income from discontinued operations
|
|
|
|
|
|
|
|
|
|
|
2,422
|
|
|
2,422
|
|
Net income attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
(151,144
|
)
|
|
(151,144
|
)
|
Dividends on preference shares
|
|
|
|
|
|
|
|
|
|
|
(24,948
|
)
|
|
(24,948
|
)
|
Net income available to RenaissanceRe common shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
665,676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expenses incurred – current accident year
|
|
$
|
109,945
|
|
|
$
|
101,347
|
|
|
$
|
103,949
|
|
|
$
|
—
|
|
|
$
|
315,241
|
|
Net claims and claim expenses incurred – prior accident years
|
|
(102,037
|
)
|
|
(34,111
|
)
|
|
(8,256
|
)
|
|
450
|
|
|
(143,954
|
)
|
Net claims and claim expenses incurred – total
|
|
$
|
7,908
|
|
|
$
|
67,236
|
|
|
$
|
95,693
|
|
|
$
|
450
|
|
|
$
|
171,287
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net claims and claim expense ratio – current accident year
|
|
15.2
|
%
|
|
47.3
|
%
|
|
59.1
|
%
|
|
—
|
%
|
|
28.3
|
%
|
Net claims and claim expense ratio – prior accident years
|
|
(14.1
|
)%
|
|
(15.9
|
)%
|
|
(4.7
|
)%
|
|
76.8
|
%
|
|
(12.9
|
)%
|
Net claims and claim expense ratio – calendar year
|
|
1.1
|
%
|
|
31.4
|
%
|
|
54.4
|
%
|
|
76.8
|
%
|
|
15.4
|
%
|
Underwriting expense ratio
|
|
21.7
|
%
|
|
34.2
|
%
|
|
48.5
|
%
|
|
108.2
|
%
|
|
28.4
|
%
|
Combined ratio
|
|
22.8
|
%
|
|
65.6
|
%
|
|
102.9
|
%
|
|
185.0
|
%
|
|
43.8
|
%
|
(1) Included in gross premiums written in the Other category is the
elimination of inter-segment gross premiums written of $0.3 million for
the twelve months ended December 31, 2014 (2013 - $(1.0) million).
RenaissanceRe Holdings Ltd.
|
Supplemental Financial Data - Gross Premiums Written and Managed
Premiums
|
(in thousands of United States Dollars)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Twelve months ended
|
|
|
December 31, 2014
|
|
December 31, 2013
|
|
December 31, 2014
|
|
December 31, 2013
|
Catastrophe Reinsurance Segment
|
|
|
|
|
|
|
|
|
|
|
|
Renaissance catastrophe premiums
|
|
$
|
10,569
|
|
|
$
|
(4,041
|
)
|
|
$
|
622,934
|
|
|
$
|
729,887
|
DaVinci catastrophe premiums
|
|
(646
|
)
|
|
(13,818
|
)
|
|
311,035
|
|
|
390,492
|
Total Catastrophe Reinsurance segment gross premiums written
|
|
$
|
9,923
|
|
|
$
|
(17,859
|
)
|
|
$
|
933,969
|
|
|
$
|
1,120,379
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Reinsurance Segment
|
|
|
|
|
|
|
|
|
|
|
|
Renaissance specialty premiums
|
|
$
|
71,897
|
|
|
$
|
58,014
|
|
|
$
|
344,591
|
|
|
$
|
256,354
|
DaVinci specialty premiums
|
|
14
|
|
|
450
|
|
|
2,047
|
|
|
3,135
|
Total Specialty Reinsurance segment gross premiums written
|
|
$
|
71,911
|
|
|
$
|
58,464
|
|
|
$
|
346,638
|
|
|
$
|
259,489
|
|
|
|
|
|
|
|
|
|
|
|
|
Lloyd’s Segment
|
|
|
|
|
|
|
|
|
|
|
|
Specialty
|
|
$
|
48,652
|
|
|
$
|
43,154
|
|
|
$
|
214,290
|
|
|
$
|
188,663
|
Catastrophe
|
|
1,985
|
|
|
363
|
|
|
55,366
|
|
|
37,869
|
Total Lloyd’s segment gross premiums written
|
|
$
|
50,637
|
|
|
$
|
43,517
|
|
|
$
|
269,656
|
|
|
$
|
226,532
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed Premiums (1)
|
|
|
|
|
|
|
|
|
|
|
|
Total Catastrophe Reinsurance segment gross premiums written
|
|
$
|
9,923
|
|
|
$
|
(17,859
|
)
|
|
$
|
933,969
|
|
|
$
|
1,120,379
|
Catastrophe premiums written on behalf of the Company’s joint
venture, Top Layer Re (2)
|
|
3,162
|
|
|
3,694
|
|
|
42,556
|
|
|
63,721
|
Catastrophe premiums written in the Lloyd’s segment
|
|
1,985
|
|
|
363
|
|
|
55,366
|
|
|
37,869
|
Catastrophe premiums written by the Company in its Catastrophe
Reinsurance segment and ceded to Top Layer Re
|
|
—
|
|
|
—
|
|
|
(7,355
|
)
|
|
—
|
Total managed catastrophe premiums (1)
|
|
$
|
15,070
|
|
|
$
|
(13,802
|
)
|
|
$
|
1,024,536
|
|
|
$
|
1,221,969
|
(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
|
|
Twelve months ended
|
|
|
December 31, 2014
|
|
December 31, 2013
|
|
December 31, 2014
|
|
December 31, 2013
|
Fixed maturity investments
|
|
$
|
26,104
|
|
|
$
|
24,759
|
|
|
$
|
100,855
|
|
|
$
|
95,907
|
|
Short term investments
|
|
217
|
|
|
380
|
|
|
944
|
|
|
1,698
|
|
Equity investments trading
|
|
1,139
|
|
|
1,245
|
|
|
3,450
|
|
|
2,295
|
|
Other investments
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedge funds and private equity investments
|
|
1,530
|
|
|
14,514
|
|
|
18,867
|
|
|
45,810
|
|
Other
|
|
(414
|
)
|
|
40,818
|
|
|
11,144
|
|
|
73,692
|
|
Cash and cash equivalents
|
|
95
|
|
|
83
|
|
|
395
|
|
|
191
|
|
|
|
28,671
|
|
|
81,799
|
|
|
135,655
|
|
|
219,593
|
|
Investment expenses
|
|
(2,785
|
)
|
|
(3,067
|
)
|
|
(11,339
|
)
|
|
(11,565
|
)
|
Net investment income
|
|
25,886
|
|
|
78,732
|
|
|
124,316
|
|
|
208,028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross realized gains
|
|
11,973
|
|
|
12,055
|
|
|
45,568
|
|
|
72,492
|
|
Gross realized losses
|
|
(3,997
|
)
|
|
(8,810
|
)
|
|
(14,868
|
)
|
|
(50,206
|
)
|
Net realized gains on fixed maturity investments
|
|
7,976
|
|
|
3,245
|
|
|
30,700
|
|
|
22,286
|
|
Net unrealized (losses) gains on fixed maturity investments trading
|
|
(1,520
|
)
|
|
(2,489
|
)
|
|
19,680
|
|
|
(87,827
|
)
|
Net realized and unrealized (losses) gains on investments-related
derivatives
|
|
(11,280
|
)
|
|
6,570
|
|
|
(30,931
|
)
|
|
31,058
|
|
Net realized gains on equity investments trading
|
|
2,330
|
|
|
8,455
|
|
|
10,908
|
|
|
26,650
|
|
Net unrealized gains on equity investments trading
|
|
32,969
|
|
|
46,083
|
|
|
11,076
|
|
|
42,909
|
|
Net realized and unrealized gains on investments
|
|
30,475
|
|
|
61,864
|
|
|
41,433
|
|
|
35,076
|
|
Change in net unrealized gains on fixed maturity investments
available for sale
|
|
(292
|
)
|
|
(252
|
)
|
|
(855
|
)
|
|
(8,029
|
)
|
Total investment result
|
|
$
|
56,069
|
|
|
$
|
140,125
|
|
|
$
|
164,894
|
|
|
$
|
235,075
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investment return - annualized
|
|
3.3
|
%
|
|
8.6
|
%
|
|
2.4
|
%
|
|
3.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 and net other-than-temporary impairments. 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
|
|
Twelve months ended
|
(in thousands of United States Dollars, except percentages)
|
|
December 31, 2014
|
|
December 31, 2013
|
|
December 31, 2014
|
|
December 31, 2013
|
Net income available to RenaissanceRe common shareholders
|
|
$
|
170,767
|
|
|
$
|
268,656
|
|
|
$
|
510,337
|
|
|
$
|
665,676
|
|
Adjustment for net realized and unrealized gains on investments from
continuing operations
|
|
(30,475
|
)
|
|
(61,864
|
)
|
|
(41,433
|
)
|
|
(35,076
|
)
|
Adjustment for net realized and unrealized losses on investments
from discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
Operating income available to RenaissanceRe common shareholders
|
|
$
|
140,292
|
|
|
$
|
206,792
|
|
|
$
|
468,904
|
|
|
$
|
630,618
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to RenaissanceRe common shareholders per common
share - diluted
|
|
$
|
4.42
|
|
|
$
|
6.05
|
|
|
$
|
12.60
|
|
|
$
|
14.87
|
|
Adjustment for net realized and unrealized gains on investments from
continuing operations
|
|
(0.80
|
)
|
|
(1.41
|
)
|
|
(1.04
|
)
|
|
(0.79
|
)
|
Adjustment for net realized and unrealized losses on investments
from discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Operating income available to RenaissanceRe common shareholders per
common share - diluted
|
|
$
|
3.62
|
|
|
$
|
4.64
|
|
|
$
|
11.56
|
|
|
$
|
14.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average common equity - annualized
|
|
20.1
|
%
|
|
31.5
|
%
|
|
14.9
|
%
|
|
20.5
|
%
|
Adjustment for net realized and unrealized gains on investments from
continuing operations
|
|
(3.6
|
)%
|
|
(7.3
|
)%
|
|
(1.2
|
)%
|
|
(1.1
|
)%
|
Adjustment for net realized and unrealized losses on investments
from discontinued operations
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Operating return on average common equity - annualized
|
|
16.5
|
%
|
|
24.3
|
%
|
|
13.7
|
%
|
|
19.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company has also included in this Press Release “managed catastrophe
premiums”. “Managed catastrophe premiums” is defined as gross
catastrophe premiums written by the Company and its related joint
ventures. “Managed catastrophe premiums” differs from total Catastrophe
Reinsurance segment 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 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
|
|
|
December 31, 2014
|
|
September 30, 2014
|
|
June 30, 2014
|
|
March 31, 2014
|
|
December 31, 2013
|
Book value per common share
|
|
$
|
90.15
|
|
|
$
|
85.78
|
|
|
$
|
84.79
|
|
|
$
|
82.30
|
|
|
$
|
80.29
|
|
Adjustment for goodwill and other intangibles (1)
|
|
(0.86
|
)
|
|
(0.88
|
)
|
|
(0.86
|
)
|
|
(0.89
|
)
|
|
(0.85
|
)
|
Tangible book value per common share
|
|
89.29
|
|
|
84.90
|
|
|
83.93
|
|
|
81.41
|
|
|
79.44
|
|
Adjustment for accumulated dividends
|
|
14.28
|
|
|
13.99
|
|
|
13.70
|
|
|
13.41
|
|
|
13.12
|
|
Tangible book value per common share plus accumulated dividends
|
|
$
|
103.57
|
|
|
$
|
98.89
|
|
|
$
|
97.63
|
|
|
$
|
94.82
|
|
|
$
|
92.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly change in book value per common share
|
|
5.1
|
%
|
|
1.2
|
%
|
|
3.0
|
%
|
|
2.5
|
%
|
|
7.7
|
%
|
Quarterly change in tangible book value per common share plus change
in accumulated dividends
|
|
5.5
|
%
|
|
1.5
|
%
|
|
3.5
|
%
|
|
2.8
|
%
|
|
8.1
|
%
|
Year to date change in book value per common share
|
|
12.3
|
%
|
|
|
|
|
|
|
|
|
|
|
17.8
|
%
|
Year to date change in tangible book value per common share plus
change in accumulated dividends
|
|
13.9
|
%
|
|
|
|
|
|
|
|
|
|
|
19.7
|
%
|
(1) At December 31, 2014, September 30, 2014, June 30, 2014, March 31,
2014 and December 31, 2013, goodwill and other intangibles included
$25.3 million, $26.1 million, $27.0 million, $28.3 million and $29.2
million, respectively, of goodwill and other intangibles included in
investments in other ventures, under equity method.
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