Attached files
| file | filename |
|---|---|
| 8-K - RENAISSANCERE HOLDINGS LTD | rnrq120128-kcover.htm |
| EX-99.1 - COPY OF THE COMPANY'S EARNINGS RELEASE - RENAISSANCERE HOLDINGS LTD | rnrq12012earningsrelease.htm |
RenaissanceRe Holdings Ltd.
Contents
Page(s) | ||||
Basis of Presentation | i | |||
Financial Highlights | 1 | |||
Income Statements | ||||
a. | Summary Consolidated Statements of Operations | 2 | ||
b. | Consolidated Segment Underwriting Results | 3 | ||
c. | Reinsurance Segment - Unit Underwriting Results | 4 | ||
d. | Gross Premiums Written and Managed Premiums | 5 | ||
e. | DaVinciRe Holdings Ltd. and Subsidiary Consolidated Statements of Operations | 6 | ||
Balance Sheets | ||||
a. | Summary Consolidated Balance Sheets | 7 | ||
Investments | ||||
a. | Investment Portfolio - Composition | 8 | ||
b. | Summary of Other Investments | 9 | ||
c. | Investment Income (Loss) | 10 | ||
d. | Investment Portfolio - Effective Yield and Credit Rating | 11 | ||
e. | Investment Portfolio - Change in Portfolio Composition | 12 | ||
f. | Fixed Maturity Investments - Corporate Sector | 13 | ||
g. | Fixed Maturity and Short Term Investments - Corporate Top 10 Issuers by Fair Value | 13 | ||
Loss Reserve Analysis | ||||
a. | Reserves for Claims and Claim Expenses | 14 | ||
b. | Paid to Incurred Analysis | 15 | ||
Other Items | ||||
a. | Earnings (Loss) per Share | 16 | ||
b. | Equity in Earnings (Losses) of Other Ventures | 17 | ||
c. | Other (Loss) Income | 17 | ||
d. | Ratings | 18 | ||
Comments on Regulation G | 19-20 | |||
RenaissanceRe Holdings Ltd.
Basis of Presentation
This financial supplement includes certain non-GAAP financial measures including “operating income (loss) available (attributable) to RenaissanceRe common shareholders”, “operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted”, “operating return on average common equity - annualized”, “managed catastrophe premium”, “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. See pages 19 and 20 for Comments on Regulation G.
RenaissanceRe Holdings Ltd. is a global provider of reinsurance and insurance. The Company's business consists of three reportable segments: (1) Reinsurance, which includes catastrophe reinsurance, specialty reinsurance and certain property catastrophe and specialty joint ventures managed by Company's ventures unit, (2) Lloyd's, which includes reinsurance and insurance business written through RenaissanceRe Syndicate 1458 (“Syndicate 1458”), and (3) Insurance, which principally includes the Company's Bermuda-based insurance operations.
Cautionary Statement under “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995: Statements made in this 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.
All information contained herein is unaudited. Unless otherwise noted, dollar amounts are in thousands, except for share and per share amounts and ratio information. Certain prior period comparatives have been reclassified to conform to the current presentation. This supplement is being provided for informational purposes only. It should be read in conjunction with documents filed by RenaissanceRe Holdings Ltd. with the Securities and Exchange Commission, including its Annual Reports on Form 10-K and its Quarterly Reports on Form 10-Q. Please refer to the Company's website at www.renre.com for further information about RenaissanceRe Holdings Ltd.
i | | |
RenaissanceRe Holdings Ltd. | |||||||
Financial Highlights | |||||||
Three months ended | |||||||
March 31, 2012 | March 31, 2011 | ||||||
Highlights | |||||||
Gross premiums written | $ | 664,151 | $ | 610,505 | |||
Net premiums written | 492,575 | 452,575 | |||||
Net premiums earned | 278,665 | 305,541 | |||||
Net claims and claim expenses incurred | 15,552 | 628,537 | |||||
Underwriting income (loss) | 196,619 | (397,161 | ) | ||||
Net investment income | 66,971 | 60,281 | |||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders | 201,429 | (248,033 | ) | ||||
Net realized and unrealized gains (losses) on investments | 46,113 | (5,214 | ) | ||||
Net other-than-temporary impairments | (134 | ) | — | ||||
Operating income (loss) available (attributable) to RenaissanceRe common shareholders (1) | 155,450 | (242,861 | ) | ||||
Total assets | $ | 8,353,598 | $ | 8,015,100 | |||
Total shareholders' equity attributable to RenaissanceRe | $ | 3,794,565 | $ | 3,499,902 | |||
Per share data | |||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted | $ | 3.88 | $ | (4.69 | ) | ||
Operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted (1) | $ | 2.98 | $ | (4.59 | ) | ||
Dividends per common share | $ | 0.27 | $ | 0.26 | |||
Book value per common share | $ | 62.68 | $ | 57.01 | |||
Adjustment for goodwill and other intangibles (1) | (0.84 | ) | (0.99 | ) | |||
Tangible book value per common share (1) | 61.84 | 56.02 | |||||
Accumulated dividends per common share | 11.19 | 10.14 | |||||
Tangible book value per common share plus accumulated dividends (1) | $ | 73.03 | $ | 66.16 | |||
Financial ratios | |||||||
Net claims and claim expense ratio - current accident year | 25.6 | % | 228.0 | % | |||
Net claims and claim expense ratio - prior accident years | (20.0 | )% | (22.3 | )% | |||
Net claims and claim expense ratio - calendar year | 5.6 | % | 205.7 | % | |||
Underwriting expense ratio | 23.8 | % | 24.3 | % | |||
Combined ratio | 29.4 | % | 230.0 | % | |||
Operating return on average common equity - annualized (1) | 19.7 | % | (30.7 | )% | |||
(1) | See Comments on Regulation G for a reconciliation of non-GAAP financial measures. |
1 | | |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Summary Consolidated Statements of Operations | |||||||||||||||||||
Three months ended | |||||||||||||||||||
March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | |||||||||||||||
Revenues | |||||||||||||||||||
Gross premiums written | $ | 664,151 | $ | 42,970 | $ | 139,938 | $ | 641,563 | $ | 610,505 | |||||||||
Net premiums written | $ | 492,575 | $ | 29,193 | $ | 103,010 | $ | 427,995 | $ | 452,575 | |||||||||
(Increase) decrease in unearned premiums | (213,910 | ) | 169,916 | 126,214 | (210,820 | ) | (147,034 | ) | |||||||||||
Net premiums earned | 278,665 | 199,109 | 229,224 | 217,175 | 305,541 | ||||||||||||||
Net investment income (loss) | 66,971 | 52,331 | (27,940 | ) | 33,328 | 60,281 | |||||||||||||
Net foreign exchange (losses) gains | (1,460 | ) | (400 | ) | (2,650 | ) | (4,521 | ) | 660 | ||||||||||
Equity in earnings (losses) of other ventures | 5,470 | (22,702 | ) | 4,794 | 5,128 | (23,753 | ) | ||||||||||||
Other (loss) income | (39,094 | ) | (43,648 | ) | (2,015 | ) | (5,167 | ) | 50,145 | ||||||||||
Net realized and unrealized gains (losses) on investments | 46,113 | 23,920 | 16,983 | 34,979 | (5,214 | ) | |||||||||||||
Total other-than-temporary impairments | (161 | ) | (132 | ) | (498 | ) | — | — | |||||||||||
Portion recognized in other comprehensive income, before taxes | 27 | 29 | 49 | — | — | ||||||||||||||
Net other-than-temporary impairments | (134 | ) | (103 | ) | (449 | ) | — | — | |||||||||||
Total revenues | 356,531 | 208,507 | 217,947 | 280,922 | 387,660 | ||||||||||||||
Expenses | |||||||||||||||||||
Net claims and claim expenses incurred | 15,552 | 3,551 | 77,830 | 151,261 | 628,537 | ||||||||||||||
Acquisition expenses | 24,111 | 25,101 | 26,057 | 13,883 | 32,335 | ||||||||||||||
Operational expenses | 42,383 | 43,368 | 42,169 | 42,299 | 41,830 | ||||||||||||||
Corporate expenses | 4,811 | 8,607 | 3,582 | 4,011 | 2,064 | ||||||||||||||
Interest expense | 5,718 | 5,721 | 5,722 | 5,730 | 6,195 | ||||||||||||||
Total expenses | 92,575 | 86,348 | 155,360 | 217,184 | 710,961 | ||||||||||||||
Income (loss) from continuing operations before taxes | 263,956 | 122,159 | 62,587 | 63,738 | (323,301 | ) | |||||||||||||
Income tax benefit (expense) | 37 | (2,945 | ) | 1,435 | 1,773 | 52 | |||||||||||||
Income (loss) from continuing operations | 263,993 | 119,214 | 64,022 | 65,511 | (323,249 | ) | |||||||||||||
Loss from discontinued operations | (173 | ) | (3,305 | ) | (965 | ) | (10,094 | ) | (1,526 | ) | |||||||||
Net income (loss) | 263,820 | 115,909 | 63,057 | 55,417 | (324,775 | ) | |||||||||||||
Net (income) loss attributable to noncontrolling interests | (53,641 | ) | (25,388 | ) | (5,044 | ) | (21,903 | ) | 85,492 | ||||||||||
Net income (loss) attributable to RenaissanceRe | 210,179 | 90,521 | 58,013 | 33,514 | (239,283 | ) | |||||||||||||
Dividends on preference shares | (8,750 | ) | (8,750 | ) | (8,750 | ) | (8,750 | ) | (8,750 | ) | |||||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | 201,429 | $ | 81,771 | $ | 49,263 | $ | 24,764 | $ | (248,033 | ) | ||||||||
Income (loss) from continuing operations available (attributable) to RenaissanceRe common shareholders per common share - basic | $ | 3.93 | $ | 1.66 | $ | 0.98 | $ | 0.68 | $ | (4.66 | ) | ||||||||
Loss from discontinued operations attributable to RenaissanceRe common shareholders per common share - basic | — | (0.07 | ) | (0.02 | ) | (0.20 | ) | (0.03 | ) | ||||||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - basic | $ | 3.93 | $ | 1.59 | $ | 0.96 | $ | 0.48 | $ | (4.69 | ) | ||||||||
Income (loss) from continuing operations available (attributable) to RenaissanceRe common shareholders per common share - diluted | 3.88 | $ | 1.64 | $ | 0.97 | $ | 0.68 | $ | (4.66 | ) | |||||||||
Loss from discontinued operations attributable to RenaissanceRe common shareholders per common share - diluted | — | (0.06 | ) | (0.02 | ) | (0.20 | ) | (0.03 | ) | ||||||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted | $ | 3.88 | $ | 1.58 | $ | 0.95 | $ | 0.48 | $ | (4.69 | ) | ||||||||
Operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share (1) | $ | 2.98 | $ | 1.11 | $ | 0.62 | $ | (0.21 | ) | $ | (4.59 | ) | |||||||
Operating return on average common equity - annualized (1) | 19.7 | % | 7.7 | % | 4.4 | % | (1.4 | )% | (30.7 | )% | |||||||||
(1) | See Comments on Regulation G for a reconciliation of non-GAAP financial measures. |
2 | | |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Consolidated Segment Underwriting Results | |||||||||||||||||||
Three months ended March 31, 2012 | |||||||||||||||||||
Reinsurance | Lloyd's | Insurance | Eliminations (1) | Total | |||||||||||||||
Gross premiums written | $ | 609,762 | $ | 54,817 | $ | — | $ | (428 | ) | $ | 664,151 | ||||||||
Net premiums written | $ | 458,638 | $ | 33,937 | $ | — | $ | 492,575 | |||||||||||
Net premiums earned | $ | 253,818 | $ | 24,822 | $ | 25 | $ | 278,665 | |||||||||||
Net claims and claim expenses incurred | 8,324 | 9,001 | (1,773 | ) | 15,552 | ||||||||||||||
Acquisition expenses | 19,386 | 4,668 | 57 | 24,111 | |||||||||||||||
Operational expenses | 32,044 | 10,057 | 282 | 42,383 | |||||||||||||||
Underwriting income | $ | 194,064 | $ | 1,096 | $ | 1,459 | $ | 196,619 | |||||||||||
Net claims and claim expenses incurred - current accident year | $ | 55,144 | $ | 16,280 | $ | — | $ | 71,424 | |||||||||||
Net claims and claim expenses incurred - prior accident years | (46,820 | ) | (7,279 | ) | (1,773 | ) | (55,872 | ) | |||||||||||
Net claims and claim expenses incurred - total | $ | 8,324 | $ | 9,001 | $ | (1,773 | ) | $ | 15,552 | ||||||||||
Net claims and claim expense ratio - current accident year | 21.7 | % | 65.6 | % | — | % | 25.6 | % | |||||||||||
Net claims and claim expense ratio - prior accident years | (18.4 | )% | (29.3 | )% | (7,092.0 | )% | (20.0 | )% | |||||||||||
Net claims and claim expense ratio - calendar year | 3.3 | % | 36.3 | % | (7,092.0 | )% | 5.6 | % | |||||||||||
Underwriting expense ratio | 20.2 | % | 59.3 | % | 1,356.0 | % | 23.8 | % | |||||||||||
Combined ratio | 23.5 | % | 95.6 | % | (5,736.0 | )% | 29.4 | % | |||||||||||
Three months ended March 31, 2011 | |||||||||||||||||||
Reinsurance | Lloyd's | Insurance | Eliminations (1) | Total | |||||||||||||||
Gross premiums written | $ | 573,682 | $ | 36,620 | $ | 280 | $ | (77 | ) | $ | 610,505 | ||||||||
Net premiums written | $ | 423,566 | $ | 28,737 | $ | 272 | $ | 452,575 | |||||||||||
Net premiums earned | $ | 289,429 | $ | 15,674 | $ | 438 | $ | 305,541 | |||||||||||
Net claims and claim expenses incurred | 595,404 | 30,523 | 2,610 | 628,537 | |||||||||||||||
Acquisition expenses | 29,792 | 2,461 | 82 | 32,335 | |||||||||||||||
Operational expenses | 32,363 | 8,972 | 495 | 41,830 | |||||||||||||||
Underwriting loss | $ | (368,130 | ) | $ | (26,282 | ) | $ | (2,749 | ) | $ | (397,161 | ) | |||||||
Net claims and claim expenses incurred - current accident year | $ | 667,362 | $ | 29,326 | $ | 9 | $ | 696,697 | |||||||||||
Net claims and claim expenses incurred - prior accident years | (71,958 | ) | 1,197 | 2,601 | (68,160 | ) | |||||||||||||
Net claims and claim expenses incurred - total | $ | 595,404 | $ | 30,523 | $ | 2,610 | $ | 628,537 | |||||||||||
Net claims and claim expense ratio - current accident year | 230.6 | % | 187.1 | % | 2.1 | % | 228.0 | % | |||||||||||
Net claims and claim expense ratio - prior accident years | (24.9 | )% | 7.6 | % | 593.8 | % | (22.3 | )% | |||||||||||
Net claims and claim expense ratio - calendar year | 205.7 | % | 194.7 | % | 595.9 | % | 205.7 | % | |||||||||||
Underwriting expense ratio | 21.5 | % | 73.0 | % | 131.7 | % | 24.3 | % | |||||||||||
Combined ratio | 227.2 | % | 267.7 | % | 727.6 | % | 230.0 | % | |||||||||||
(1) Represents $0.4 million of gross premiums ceded from the Reinsurance segment to the Lloyd's segment for the three months ended March 31, 2012 (2011 - $0.1 million from the Reinsurance segment to the Lloyd's segment).
3 | | |
RenaissanceRe Holdings Ltd. | |||||||||||
Reinsurance Segment - Unit Underwriting Results | |||||||||||
Three months ended March 31, 2012 | |||||||||||
Catastrophe | Specialty | Total | |||||||||
Gross premiums written | $ | 509,240 | $ | 100,522 | $ | 609,762 | |||||
Net premiums written | $ | 362,252 | $ | 96,386 | $ | 458,638 | |||||
Net premiums earned | $ | 215,055 | $ | 38,763 | $ | 253,818 | |||||
Net claims and claim expenses incurred | (3,316 | ) | 11,640 | 8,324 | |||||||
Acquisition expenses | 14,317 | 5,069 | 19,386 | ||||||||
Operational expenses | 25,328 | 6,716 | 32,044 | ||||||||
Underwriting income | $ | 178,726 | $ | 15,338 | $ | 194,064 | |||||
Net claims and claim expenses incurred - current accident year | $ | 31,623 | $ | 23,521 | $ | 55,144 | |||||
Net claims and claim expenses incurred - prior accident years | (34,939 | ) | (11,881 | ) | (46,820 | ) | |||||
Net claims and claim expenses incurred - total | $ | (3,316 | ) | $ | 11,640 | $ | 8,324 | ||||
Net claims and claim expense ratio - current accident year | 14.7 | % | 60.7 | % | 21.7 | % | |||||
Net claims and claim expense ratio - prior accident years | (16.2 | )% | (30.7 | )% | (18.4 | )% | |||||
Net claims and claim expense ratio - calendar year | (1.5 | )% | 30.0 | % | 3.3 | % | |||||
Underwriting expense ratio | 18.4 | % | 30.4 | % | 20.2 | % | |||||
Combined ratio | 16.9 | % | 60.4 | % | 23.5 | % | |||||
Three months ended March 31, 2011 | |||||||||||
Catastrophe | Specialty | Total | |||||||||
Gross premiums written | $ | 498,678 | $ | 75,004 | $ | 573,682 | |||||
Net premiums written | $ | 352,637 | $ | 70,929 | $ | 423,566 | |||||
Net premiums earned | $ | 255,289 | $ | 34,140 | $ | 289,429 | |||||
Net claims and claim expenses incurred | 586,518 | 8,886 | 595,404 | ||||||||
Acquisition expenses | 23,613 | 6,179 | 29,792 | ||||||||
Operational expenses | 25,001 | 7,362 | 32,363 | ||||||||
Underwriting (loss) income | $ | (379,843 | ) | $ | 11,713 | $ | (368,130 | ) | |||
Net claims and claim expenses incurred - current accident year | $ | 606,227 | $ | 61,135 | $ | 667,362 | |||||
Net claims and claim expenses incurred - prior accident years | (19,709 | ) | (52,249 | ) | (71,958 | ) | |||||
Net claims and claim expenses incurred - total | $ | 586,518 | $ | 8,886 | $ | 595,404 | |||||
Net claims and claim expense ratio - current accident year | 237.5 | % | 179.1 | % | 230.6 | % | |||||
Net claims and claim expense ratio - prior accident years | (7.8 | )% | (153.1 | )% | (24.9 | )% | |||||
Net claims and claim expense ratio - calendar year | 229.7 | % | 26.0 | % | 205.7 | % | |||||
Underwriting expense ratio | 19.1 | % | 39.7 | % | 21.5 | % | |||||
Combined ratio | 248.8 | % | 65.7 | % | 227.2 | % | |||||
4 | | |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Gross Premiums Written and Managed Premiums | |||||||||||||||||||
Three months ended | |||||||||||||||||||
March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | |||||||||||||||
Reinsurance Segment | |||||||||||||||||||
Renaissance catastrophe premiums | $ | 330,427 | $ | (652 | ) | $ | 64,317 | $ | 366,929 | $ | 311,642 | ||||||||
Renaissance specialty premiums | 99,545 | 21,117 | 25,614 | 23,066 | 74,395 | ||||||||||||||
Total Renaissance premiums | 429,972 | 20,465 | 89,931 | 389,995 | 386,037 | ||||||||||||||
DaVinci catastrophe premiums | 178,813 | (1,193 | ) | 32,900 | 216,317 | 187,036 | |||||||||||||
DaVinci specialty premiums | 977 | 18 | (20 | ) | 1,092 | 609 | |||||||||||||
Total DaVinci premiums | 179,790 | (1,175 | ) | 32,880 | 217,409 | 187,645 | |||||||||||||
Total catastrophe unit premiums | 509,240 | (1,845 | ) | 97,217 | 583,246 | 498,678 | |||||||||||||
Total specialty unit premiums | 100,522 | 21,135 | 25,594 | 24,158 | 75,004 | ||||||||||||||
Total Reinsurance segment gross premiums written | $ | 609,762 | $ | 19,290 | $ | 122,811 | $ | 607,404 | $ | 573,682 | |||||||||
Lloyd's Segment | |||||||||||||||||||
Specialty | $ | 39,329 | $ | 22,570 | $ | 14,290 | $ | 17,546 | $ | 29,235 | |||||||||
Catastrophe | 15,488 | 1,141 | 2,837 | 16,580 | 7,385 | ||||||||||||||
Total Lloyd's segment gross premiums written | $ | 54,817 | $ | 23,711 | $ | 17,127 | $ | 34,126 | $ | 36,620 | |||||||||
Insurance Segment | |||||||||||||||||||
Commercial property | $ | — | $ | (31 | ) | $ | — | $ | 33 | $ | 280 | ||||||||
Total Insurance segment gross premiums written | $ | — | $ | (31 | ) | $ | — | $ | 33 | $ | 280 | ||||||||
Managed Premiums (1) | |||||||||||||||||||
Total catastrophe unit gross premiums written | $ | 509,240 | $ | (1,845 | ) | $ | 97,217 | $ | 583,246 | $ | 498,678 | ||||||||
Catastrophe premiums written on behalf of our joint venture, Top Layer Re (2) | 34,305 | 1,497 | 12,379 | 19,079 | 22,528 | ||||||||||||||
Catastrophe premiums written in the Lloyd's unit | 15,488 | 1,141 | 2,837 | 16,580 | 7,385 | ||||||||||||||
Total managed catastrophe premiums (1) | $ | 559,033 | $ | 793 | $ | 112,433 | $ | 618,905 | $ | 528,591 | |||||||||
(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.
5 | | |
DaVinciRe Holdings Ltd. and Subsidiary | |||||||||||||||||||
Consolidated Statements of Operations | |||||||||||||||||||
Three months ended | |||||||||||||||||||
March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | |||||||||||||||
Revenues | |||||||||||||||||||
Gross premiums written | $ | 179,790 | $ | (1,175 | ) | $ | 32,880 | $ | 217,409 | $ | 187,645 | ||||||||
Net premiums written | $ | 154,680 | $ | (3,264 | ) | $ | 22,673 | $ | 174,427 | $ | 167,982 | ||||||||
(Increase) decrease in unearned premiums | (59,543 | ) | 74,533 | 58,063 | (92,821 | ) | (51,160 | ) | |||||||||||
Net premiums earned | 95,137 | 71,269 | 80,736 | 81,606 | 116,822 | ||||||||||||||
Net investment income (loss) | 10,527 | 9,501 | (700 | ) | 6,189 | 6,974 | |||||||||||||
Net foreign exchange gains (losses) | 76 | (461 | ) | (1,194 | ) | (1,126 | ) | 875 | |||||||||||
Other (loss) income | (462 | ) | (799 | ) | (1,032 | ) | (230 | ) | 11,037 | ||||||||||
Net realized and unrealized gains (losses) on fixed maturity investments | 16,666 | 5,915 | (4,871 | ) | 10,339 | (753 | ) | ||||||||||||
Total revenues | 121,944 | 85,425 | 72,939 | 96,778 | 134,955 | ||||||||||||||
Expenses | |||||||||||||||||||
Net claims and claim expenses incurred | 1,924 | 12,566 | 35,332 | 61,911 | 284,281 | ||||||||||||||
Acquisition expenses | 24,099 | 16,450 | 14,916 | (11,905 | ) | (1,054 | ) | ||||||||||||
Operational and corporate expenses | 12,301 | 10,655 | 11,655 | 6,059 | 4,490 | ||||||||||||||
Interest expense | 2,040 | 1,936 | 1,873 | 1,907 | 469 | ||||||||||||||
Total expenses | 40,364 | 41,607 | 63,776 | 57,972 | 288,186 | ||||||||||||||
Net income (loss) | 81,580 | 43,818 | 9,163 | 38,806 | (153,231 | ) | |||||||||||||
Net (income) loss attributable to redeemable noncontrolling interest | (167 | ) | (91 | ) | (22 | ) | (81 | ) | 305 | ||||||||||
Net income (loss) available (attributable) to DaVinciRe common shareholders | $ | 81,413 | $ | 43,727 | $ | 9,141 | $ | 38,725 | $ | (152,926 | ) | ||||||||
Net claims and claim expenses incurred - current accident year | $ | 14,826 | $ | 24,413 | $ | 33,096 | $ | 66,248 | $ | 291,227 | |||||||||
Net claims and claim expenses incurred - prior accident years | (12,902 | ) | (11,847 | ) | 2,236 | (4,337 | ) | (6,946 | ) | ||||||||||
Net claims and claim expenses incurred - total | $ | 1,924 | $ | 12,566 | $ | 35,332 | $ | 61,911 | $ | 284,281 | |||||||||
Net claims and claim expense ratio - current accident year | 15.6 | % | 34.3 | % | 41.0 | % | 81.2 | % | 249.3 | % | |||||||||
Net claims and claim expense ratio - prior accident years | (13.6 | )% | (16.7 | )% | 2.8 | % | (5.3%) | (6.0%) | |||||||||||
Net claims and claim expense ratio - calendar year | 2.0 | % | 17.6 | % | 43.8 | % | 75.9 | % | 243.3 | % | |||||||||
Underwriting expense ratio | 38.3 | % | 38.1 | % | 32.9 | % | (7.2%) | 3.0 | % | ||||||||||
Combined ratio | 40.3 | % | 55.7 | % | 76.7 | % | 68.7 | % | 246.3 | % | |||||||||
6 | | |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Summary Consolidated Balance Sheets | |||||||||||||||||||
March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | |||||||||||||||
Assets | |||||||||||||||||||
Fixed maturity investments trading, at fair value | $ | 4,176,827 | $ | 4,291,465 | $ | 3,687,669 | $ | 3,864,205 | $ | 3,678,549 | |||||||||
Fixed maturity investments available for sale, at fair value | 125,292 | 142,052 | 149,969 | 202,769 | 232,320 | ||||||||||||||
Total fixed maturity investments, at fair value | 4,302,119 | 4,433,517 | 3,837,638 | 4,066,974 | 3,910,869 | ||||||||||||||
Short term investments, at fair value | 1,172,839 | 905,477 | 1,557,937 | 774,421 | 1,518,542 | ||||||||||||||
Equity investments trading, at fair value | 53,080 | 50,560 | 45,607 | 32,252 | 12,707 | ||||||||||||||
Other investments, at fair value | 806,782 | 748,984 | 736,757 | 839,643 | 782,325 | ||||||||||||||
Investments in other ventures, under equity method | 76,723 | 70,714 | 78,071 | 82,197 | 78,623 | ||||||||||||||
Total investments | 6,411,543 | 6,209,252 | 6,256,010 | 5,795,487 | 6,303,066 | ||||||||||||||
Cash and cash equivalents | 260,982 | 216,984 | 235,058 | 237,737 | 252,631 | ||||||||||||||
Premiums receivable | 703,932 | 471,878 | 695,163 | 933,519 | 574,547 | ||||||||||||||
Prepaid reinsurance premiums | 143,690 | 58,522 | 164,547 | 245,676 | 125,722 | ||||||||||||||
Reinsurance recoverable | 279,398 | 404,029 | 434,553 | 333,245 | 324,124 | ||||||||||||||
Accrued investment income | 30,782 | 33,523 | 34,237 | 36,266 | 33,580 | ||||||||||||||
Deferred acquisition costs | 71,162 | 43,721 | 71,225 | 90,858 | 56,656 | ||||||||||||||
Receivable for investments sold | 237,372 | 117,117 | 33,791 | 257,075 | 136,943 | ||||||||||||||
Other assets | 205,660 | 180,992 | 176,114 | 219,226 | 190,813 | ||||||||||||||
Goodwill and other intangibles | 9,077 | 8,894 | 14,230 | 14,383 | 14,537 | ||||||||||||||
Assets of discontinued operations held for sale | — | — | 2,481 | 2,868 | 2,481 | ||||||||||||||
Total assets | $ | 8,353,598 | $ | 7,744,912 | $ | 8,117,409 | $ | 8,166,340 | $ | 8,015,100 | |||||||||
Liabilities, Noncontrolling Interests and Shareholders' Equity | |||||||||||||||||||
Liabilities | |||||||||||||||||||
Reserve for claims and claim expenses | $ | 1,858,203 | $ | 1,992,354 | $ | 2,226,005 | $ | 2,170,728 | $ | 2,070,095 | |||||||||
Unearned premiums | 646,733 | 347,655 | 623,596 | 830,939 | 500,165 | ||||||||||||||
Debt | 351,999 | 353,620 | 349,224 | 349,201 | 549,178 | ||||||||||||||
Reinsurance balances payable | 285,207 | 256,883 | 317,627 | 403,152 | 256,663 | ||||||||||||||
Payable for investments purchased | 361,460 | 303,264 | 233,282 | 102,545 | 417,257 | ||||||||||||||
Other liabilities | 242,257 | 211,369 | 174,424 | 152,853 | 179,717 | ||||||||||||||
Liabilities of discontinued operations held for sale | 12,539 | 13,507 | 9,098 | 10,220 | 2,246 | ||||||||||||||
Total liabilities | 3,758,398 | 3,478,652 | 3,933,256 | 4,019,638 | 3,975,321 | ||||||||||||||
Redeemable noncontrolling interest - DaVinciRe | 796,743 | 657,727 | 633,112 | 628,001 | 536,717 | ||||||||||||||
Shareholders' Equity | |||||||||||||||||||
Preference shares | 550,000 | 550,000 | 550,000 | 550,000 | 550,000 | ||||||||||||||
Common shares | 51,765 | 51,543 | 51,787 | 51,753 | 51,742 | ||||||||||||||
Additional paid-in capital | 379 | — | 9,331 | 5,768 | — | ||||||||||||||
Accumulated other comprehensive income | 12,988 | 11,760 | 11,092 | 18,031 | 19,845 | ||||||||||||||
Retained earnings | 3,179,433 | 2,991,890 | 2,925,604 | 2,889,719 | 2,878,315 | ||||||||||||||
Total shareholders' equity attributable to RenaissanceRe | 3,794,565 | 3,605,193 | 3,547,814 | 3,515,271 | 3,499,902 | ||||||||||||||
Noncontrolling interest | 3,892 | 3,340 | 3,227 | 3,430 | 3,160 | ||||||||||||||
Total shareholders' equity | 3,798,457 | 3,608,533 | 3,551,041 | 3,518,701 | 3,503,062 | ||||||||||||||
Total liabilities, noncontrolling interests and shareholders' equity | $ | 8,353,598 | $ | 7,744,912 | $ | 8,117,409 | $ | 8,166,340 | $ | 8,015,100 | |||||||||
Book value per common share | $ | 62.68 | $ | 59.27 | $ | 57.89 | $ | 57.30 | $ | 57.01 | |||||||||
7 | | |
RenaissanceRe Holdings Ltd. | ||||||||||||||||||||||||||||||||||
Investment Portfolio - Composition | ||||||||||||||||||||||||||||||||||
March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | ||||||||||||||||||||||||||||||
TYPE OF INVESTMENT | ||||||||||||||||||||||||||||||||||
U.S. treasuries | $ | 1,309,243 | 20.4 | % | $ | 885,152 | 14.3 | % | $ | 428,865 | 6.9 | % | $ | 454,148 | 7.8 | % | $ | 522,006 | 8.3 | % | ||||||||||||||
Agencies | 343,575 | 5.4 | % | 158,561 | 2.6 | % | 127,063 | 2.0 | % | 189,765 | 3.3 | % | 278,501 | 4.4 | % | |||||||||||||||||||
Non-U.S. government (Sovereign debt) | 130,899 | 2.0 | % | 227,912 | 3.7 | % | 402,288 | 6.4 | % | 340,430 | 5.9 | % | 243,606 | 3.9 | % | |||||||||||||||||||
FDIC guaranteed corporate | 103,554 | 1.6 | % | 423,630 | 6.8 | % | 183,314 | 2.9 | % | 232,992 | 4.0 | % | 305,745 | 4.9 | % | |||||||||||||||||||
Non-U.S. government-backed corporate | 501,160 | 7.8 | % | 641,082 | 10.3 | % | 594,897 | 9.6 | % | 409,443 | 7.1 | % | 316,618 | 5.0 | % | |||||||||||||||||||
Corporate | 1,146,211 | 17.9 | % | 1,206,904 | 19.4 | % | 1,294,442 | 20.7 | % | 1,651,688 | 28.4 | % | 1,523,224 | 24.1 | % | |||||||||||||||||||
Agency mortgage-backed | 319,215 | 5.0 | % | 441,749 | 7.1 | % | 363,814 | 5.8 | % | 296,627 | 5.1 | % | 430,192 | 6.8 | % | |||||||||||||||||||
Non-agency mortgage-backed | 108,047 | 1.7 | % | 104,771 | 1.7 | % | 104,541 | 1.7 | % | 105,581 | 1.8 | % | 35,848 | 0.6 | % | |||||||||||||||||||
Commercial mortgage-backed | 329,343 | 5.1 | % | 325,729 | 5.2 | % | 318,805 | 5.1 | % | 340,610 | 5.9 | % | 213,809 | 3.4 | % | |||||||||||||||||||
Asset-backed | 10,872 | 0.2 | % | 18,027 | 0.3 | % | 19,609 | 0.3 | % | 45,690 | 0.8 | % | 41,320 | 0.7 | % | |||||||||||||||||||
Total fixed maturity investments, at fair value | 4,302,119 | 67.1 | % | 4,433,517 | 71.4 | % | 3,837,638 | 61.4 | % | 4,066,974 | 70.1 | % | 3,910,869 | 62.1 | % | |||||||||||||||||||
Short term investments, at fair value | 1,172,839 | 18.3 | % | 905,477 | 14.6 | % | 1,557,937 | 24.9 | % | 774,421 | 13.4 | % | 1,518,542 | 24.1 | % | |||||||||||||||||||
Equity investments trading, at fair value | 53,080 | 0.8 | % | 50,560 | 0.8 | % | 45,607 | 0.7 | % | 32,252 | 0.6 | % | 12,707 | 0.2 | % | |||||||||||||||||||
Other investments, at fair value | 806,782 | 12.6 | % | 748,984 | 12.1 | % | 736,757 | 11.8 | % | 839,643 | 14.5 | % | 782,325 | 12.4 | % | |||||||||||||||||||
Total managed investment portfolio | 6,334,820 | 98.8 | % | 6,138,538 | 98.9 | % | 6,177,939 | 98.8 | % | 5,713,290 | 98.6 | % | 6,224,443 | 98.8 | % | |||||||||||||||||||
Investments in other ventures, under equity method | 76,723 | 1.2 | % | 70,714 | 1.1 | % | 78,071 | 1.2 | % | 82,197 | 1.4 | % | 78,623 | 1.2 | % | |||||||||||||||||||
Total investments | $ | 6,411,543 | 100.0 | % | $ | 6,209,252 | 100.0 | % | $ | 6,256,010 | 100.0 | % | $ | 5,795,487 | 100.0 | % | $ | 6,303,066 | 100.0 | % | ||||||||||||||
CREDIT QUALITY OF FIXED MATURITY INVESTMENTS | ||||||||||||||||||||||||||||||||||
AAA | $ | 742,577 | 17.2 | % | $ | 1,023,890 | 23.1 | % | $ | 1,099,221 | 28.6 | % | $ | 2,197,397 | 54.1 | % | $ | 2,284,378 | 58.4 | % | ||||||||||||||
AA (1) | 2,459,756 | 57.2 | % | 2,244,016 | 50.6 | % | 1,607,177 | 41.9 | % | 481,789 | 11.8 | % | 457,769 | 11.7 | % | |||||||||||||||||||
A | 574,809 | 13.4 | % | 631,479 | 14.2 | % | 619,229 | 16.1 | % | 790,594 | 19.4 | % | 675,011 | 17.3 | % | |||||||||||||||||||
BBB | 272,616 | 6.3 | % | 335,002 | 7.6 | % | 329,213 | 8.6 | % | 398,354 | 9.8 | % | 347,766 | 8.9 | % | |||||||||||||||||||
Non-investment grade and not rated | 252,361 | 5.9 | % | 199,130 | 4.5 | % | 182,798 | 4.8 | % | 198,840 | 4.9 | % | 145,945 | 3.7 | % | |||||||||||||||||||
Total fixed maturity investments, at fair value | $ | 4,302,119 | 100.0 | % | $ | 4,433,517 | 100.0 | % | $ | 3,837,638 | 100.0 | % | $ | 4,066,974 | 100.0 | % | $ | 3,910,869 | 100.0 | % | ||||||||||||||
MATURITY PROFILE OF FIXED MATURITY INVESTMENTS | ||||||||||||||||||||||||||||||||||
Due in less than one year | $ | 386,259 | 9.0 | % | $ | 619,845 | 14.0 | % | $ | 168,557 | 4.4 | % | $ | 201,681 | 5.0 | % | $ | 208,422 | 5.3 | % | ||||||||||||||
Due after one through five years | 2,367,344 | 55.0 | % | 2,035,383 | 45.9 | % | 1,893,416 | 49.3 | % | 1,986,843 | 48.8 | % | 1,969,491 | 50.3 | % | |||||||||||||||||||
Due after five through ten years | 646,091 | 15.0 | % | 742,050 | 16.7 | % | 831,196 | 21.7 | % | 923,919 | 22.7 | % | 827,647 | 21.2 | % | |||||||||||||||||||
Due after ten years | 134,948 | 3.1 | % | 145,963 | 3.3 | % | 137,700 | 3.6 | % | 166,023 | 4.1 | % | 184,140 | 4.7 | % | |||||||||||||||||||
Mortgage-backed securities | 756,605 | 17.6 | % | 872,249 | 19.7 | % | 787,160 | 20.5 | % | 742,818 | 18.3 | % | 679,849 | 17.4 | % | |||||||||||||||||||
Asset-backed securities | 10,872 | 0.3 | % | 18,027 | 0.4 | % | 19,609 | 0.5 | % | 45,690 | 1.1 | % | 41,320 | 1.1 | % | |||||||||||||||||||
Total fixed maturity investments, at fair value | $ | 4,302,119 | 100.0 | % | $ | 4,433,517 | 100.0 | % | $ | 3,837,638 | 100.0 | % | $ | 4,066,974 | 100.0 | % | $ | 3,910,869 | 100.0 | % | ||||||||||||||
Weighted average effective yield of fixed maturities and short term investments | 1.6 | % | 1.9 | % | 2.0 | % | 2.4 | % | 2.1 | % | ||||||||||||||||||||||||
Average duration of fixed maturities and short term investments | 2.3 | 2.6 | 2.5 | 2.7 | 2.5 | |||||||||||||||||||||||||||||
(1) | Included in the AA rating category at March 31, 2012, December 31, 2011 and September 30, 2011 is $1,756.4 million, $1,467.3 million and $739.2 million, respectively, of U.S. treasuries, agencies and FDIC guaranteed corporate fixed maturity investments that were included in the AAA rating category in prior periods. |
8 | | |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Summary of Other Investments | |||||||||||||||||||
March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | |||||||||||||||
TYPE OF INVESTMENT | |||||||||||||||||||
Private equity partnerships | $ | 389,451 | $ | 367,909 | $ | 345,986 | $ | 363,688 | $ | 362,717 | |||||||||
Senior secured bank loan funds | 266,141 | 257,870 | 243,766 | 247,528 | 171,559 | ||||||||||||||
Catastrophe bonds | 95,827 | 70,999 | 85,800 | 93,805 | 107,570 | ||||||||||||||
Non-U.S. fixed income funds | 31,713 | 28,862 | 29,440 | 88,962 | 87,336 | ||||||||||||||
Hedge funds | 22,310 | 21,344 | 26,810 | 39,753 | 40,616 | ||||||||||||||
Miscellaneous other investments | 1,340 | 2,000 | 4,955 | 5,907 | 12,527 | ||||||||||||||
Total other investments, at fair value | $ | 806,782 | $ | 748,984 | $ | 736,757 | $ | 839,643 | $ | 782,325 | |||||||||
TYPE OF INVESTMENT | |||||||||||||||||||
Private equity partnerships | 48.2 | % | 49.1 | % | 47.0 | % | 43.3 | % | 46.3 | % | |||||||||
Senior secured bank loan funds | 33.0 | % | 34.4 | % | 33.1 | % | 29.5 | % | 21.9 | % | |||||||||
Catastrophe bonds | 11.9 | % | 9.5 | % | 11.6 | % | 11.2 | % | 13.8 | % | |||||||||
Non-U.S. fixed income funds | 3.9 | % | 3.9 | % | 4.0 | % | 10.6 | % | 11.2 | % | |||||||||
Hedge funds | 2.8 | % | 2.8 | % | 3.6 | % | 4.7 | % | 5.2 | % | |||||||||
Miscellaneous other investments | 0.2 | % | 0.3 | % | 0.7 | % | 0.7 | % | 1.6 | % | |||||||||
Total other investments, at fair value | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||
9 | | |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Investment Income (Loss) | |||||||||||||||||||
Three months ended | |||||||||||||||||||
March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | |||||||||||||||
Fixed maturity investments | $ | 26,333 | $ | 26,084 | $ | 11,435 | $ | 24,426 | $ | 27,913 | |||||||||
Short term investments | 500 | 357 | 281 | 433 | 595 | ||||||||||||||
Equity investments trading | 170 | 174 | 171 | 112 | 14 | ||||||||||||||
Other investments | |||||||||||||||||||
Hedge funds and private equity investments | 28,473 | 21,506 | (25,702 | ) | 8,230 | 23,507 | |||||||||||||
Other | 14,170 | 6,458 | (11,665 | ) | 2,838 | 10,827 | |||||||||||||
Cash and cash equivalents | 26 | 11 | 66 | 45 | 41 | ||||||||||||||
69,672 | 54,590 | (25,414 | ) | 36,084 | 62,897 | ||||||||||||||
Investment expenses | (2,701 | ) | (2,259 | ) | (2,526 | ) | (2,756 | ) | (2,616 | ) | |||||||||
Net investment income (loss) | 66,971 | 52,331 | (27,940 | ) | 33,328 | 60,281 | |||||||||||||
Gross realized gains | 36,286 | 15,312 | 38,054 | 15,430 | 10,562 | ||||||||||||||
Gross realized losses | (6,950 | ) | (7,787 | ) | (6,099 | ) | (4,156 | ) | (12,617 | ) | |||||||||
Net realized gains (losses) on fixed maturity investments | 29,336 | 7,525 | 31,955 | 11,274 | (2,055 | ) | |||||||||||||
Net unrealized gains (losses) on fixed maturity investments trading | 14,257 | 11,441 | (13,007 | ) | 24,728 | (3,758 | ) | ||||||||||||
Net unrealized gains (losses) on equity investments trading | 2,520 | 4,954 | (1,965 | ) | (1,023 | ) | 599 | ||||||||||||
Net realized and unrealized gains (losses) on investments | 46,113 | 23,920 | 16,983 | 34,979 | (5,214 | ) | |||||||||||||
Total other-than-temporary impairments | (161 | ) | (132 | ) | (498 | ) | — | — | |||||||||||
Portion recognized in other comprehensive income, before taxes | 27 | 29 | 49 | — | — | ||||||||||||||
Net other-than-temporary impairments | (134 | ) | (103 | ) | (449 | ) | — | — | |||||||||||
Change in net unrealized gains on fixed maturity investments available for sale | 778 | 697 | (7,171 | ) | (1,763 | ) | 252 | ||||||||||||
Total investment income (loss) | $ | 113,728 | $ | 76,845 | $ | (18,577 | ) | $ | 66,544 | $ | 55,319 | ||||||||
10 | | |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||||||||||||||||
Investment Portfolio - Effective Yield and Credit Rating | |||||||||||||||||||||||||||||||||||||
Credit Rating (1) | |||||||||||||||||||||||||||||||||||||
March 31, 2012 | Amortized Cost | Fair Value | % of Total Managed Investment Portfolio | Weighted Average Effective Yield | AAA | AA | A | BBB | Non- Investment Grade | Not Rated | |||||||||||||||||||||||||||
Short term investments | $ | 1,172,839 | $ | 1,172,839 | 18.5 | % | 0.2 | % | $ | 1,147,110 | $ | 21,325 | $ | 2,650 | $ | 1,745 | $ | 9 | $ | — | |||||||||||||||||
100.0 | % | 97.9 | % | 1.8 | % | 0.2 | % | 0.1 | % | — | % | — | % | ||||||||||||||||||||||||
Fixed maturity investments | |||||||||||||||||||||||||||||||||||||
U.S. treasuries | 1,311,150 | 1,309,243 | 20.7 | % | 0.6 | % | — | 1,309,243 | — | — | — | — | |||||||||||||||||||||||||
Agencies | |||||||||||||||||||||||||||||||||||||
Fannie Mae & Freddie Mac | 328,048 | 328,034 | 5.2 | % | 0.7 | % | — | 328,034 | — | — | — | — | |||||||||||||||||||||||||
Other agencies | 15,401 | 15,541 | 0.2 | % | 1.5 | % | — | 15,541 | — | — | — | — | |||||||||||||||||||||||||
Total agencies | 343,449 | 343,575 | 5.4 | % | 0.7 | % | — | 343,575 | — | — | — | — | |||||||||||||||||||||||||
Non-U.S. government (Sovereign debt) | 127,626 | 130,899 | 2.1 | % | 2.9 | % | 54,634 | 32,961 | 11,180 | 21,647 | 9,842 | 635 | |||||||||||||||||||||||||
FDIC guaranteed corporate | 103,306 | 103,554 | 1.6 | % | 0.2 | % | — | 103,554 | — | — | — | — | |||||||||||||||||||||||||
Non-U.S. government-backed corporate | 497,349 | 501,160 | 7.9 | % | 1.3 | % | 418,931 | 78,903 | 3,326 | — | — | — | |||||||||||||||||||||||||
Corporate | 1,112,793 | 1,146,211 | 18.2 | % | 3.7 | % | 12,376 | 206,104 | 485,511 | 249,190 | 181,495 | 11,535 | |||||||||||||||||||||||||
Mortgage-backed | |||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | |||||||||||||||||||||||||||||||||||||
Agency securities | 314,779 | 319,215 | 5.0 | % | 1.4 | % | — | 319,215 | — | — | — | — | |||||||||||||||||||||||||
Non-agency securities - Prime | 71,124 | 70,497 | 1.1 | % | 6.4 | % | 26,466 | 3,416 | 675 | 953 | 38,987 | — | |||||||||||||||||||||||||
Non-agency securities - Alt A | 35,709 | 37,550 | 0.6 | % | 6.7 | % | 19,500 | — | 7,357 | 826 | 9,867 | — | |||||||||||||||||||||||||
Total residential mortgage-backed | 421,612 | 427,262 | 6.7 | % | 2.7 | % | 45,966 | 322,631 | 8,032 | 1,779 | 48,854 | — | |||||||||||||||||||||||||
Commercial mortgage-backed | 315,127 | 329,343 | 5.2 | % | 2.7 | % | 201,090 | 61,493 | 66,760 | — | — | — | |||||||||||||||||||||||||
Total mortgage-backed | 736,739 | 756,605 | 11.9 | % | 2.7 | % | 247,056 | 384,124 | 74,792 | 1,779 | 48,854 | — | |||||||||||||||||||||||||
Asset-backed | |||||||||||||||||||||||||||||||||||||
Credit cards | 3,005 | 3,007 | — | % | 0.4 | % | 3,007 | — | — | — | — | — | |||||||||||||||||||||||||
Auto loans | 1,705 | 1,711 | — | % | 0.5 | % | 1,711 | — | — | — | — | — | |||||||||||||||||||||||||
Student loans | 1,300 | 1,292 | — | % | 1.6 | % | — | 1,292 | — | — | — | — | |||||||||||||||||||||||||
Other | 4,651 | 4,862 | 0.2 | % | 0.4 | % | 4,862 | — | — | — | — | — | |||||||||||||||||||||||||
Total asset-backed | 10,661 | 10,872 | 0.2 | % | 0.5 | % | 9,580 | 1,292 | — | — | — | — | |||||||||||||||||||||||||
Total securitized assets | 747,400 | 767,477 | 12.1 | % | 2.7 | % | 256,636 | 385,416 | 74,792 | 1,779 | 48,854 | — | |||||||||||||||||||||||||
Total fixed maturity investments | 4,243,073 | 4,302,119 | 68.0 | % | 1.9 | % | 742,577 | 2,459,756 | 574,809 | 272,616 | 240,191 | 12,170 | |||||||||||||||||||||||||
100.0 | % | 17.2 | % | 57.2 | % | 13.4 | % | 6.3 | % | 5.6 | % | 0.3 | % | ||||||||||||||||||||||||
Equity investments trading | 53,080 | 0.8 | % | — | — | — | — | — | 53,080 | ||||||||||||||||||||||||||||
100.0 | % | — | % | — | % | — | % | — | % | — | % | 100.0 | % | ||||||||||||||||||||||||
Other investments | |||||||||||||||||||||||||||||||||||||
Private equity partnerships | 389,451 | 6.1 | % | — | — | — | — | — | 389,451 | ||||||||||||||||||||||||||||
Senior secured bank loan funds | 266,141 | 4.2 | % | — | — | — | — | 266,141 | — | ||||||||||||||||||||||||||||
Catastrophe bonds | 95,827 | 1.5 | % | — | — | — | — | 95,827 | — | ||||||||||||||||||||||||||||
Non-U.S. fixed income funds | 31,713 | 0.5 | % | — | — | — | 31,713 | — | — | ||||||||||||||||||||||||||||
Hedge funds | 22,310 | 0.4 | % | — | — | — | — | — | 22,310 | ||||||||||||||||||||||||||||
Miscellaneous other investments | 1,340 | — | % | — | — | — | — | — | 1,340 | ||||||||||||||||||||||||||||
Total other investments | 806,782 | 12.7 | % | — | — | — | 31,713 | 361,968 | 413,101 | ||||||||||||||||||||||||||||
100.0 | % | — | % | — | % | — | % | 3.9 | % | 44.9 | % | 51.2 | % | ||||||||||||||||||||||||
Total managed investment portfolio | $ | 6,334,820 | 100.0 | % | $ | 1,889,687 | $ | 2,481,081 | $ | 577,459 | $ | 306,074 | $ | 602,168 | $ | 478,351 | |||||||||||||||||||||
100.0 | % | 29.8 | % | 39.2 | % | 9.1 | % | 4.8 | % | 9.5 | % | 7.6 | % | ||||||||||||||||||||||||
(1) | The credit ratings included in this table are those assigned by Standard & Poor’s Corporation ("S&P"). When ratings provided by S&P were not available, ratings from other nationally recognized rating agencies were used. The Company has grouped short term investments with an A-1+ and A-1 short term issue credit rating as AAA, short term investments with A-2 short term issue credit rating as AA and short term investments with an A-3 short term issue credit rating as A. |
11 | | |
RenaissanceRe Holdings Ltd. | ||||||||||||||||||||
Investment Portfolio - Change in Portfolio Composition | ||||||||||||||||||||
March 31, 2012 | December 31, 2011 | Change | ||||||||||||||||||
Fair Value | % of Total Managed Investment Portfolio | Fair Value | % of Total Managed Investment Portfolio | $ | % | |||||||||||||||
Short term investments | $ | 1,172,839 | 18.5 | % | $ | 905,477 | 14.8 | % | $ | 267,362 | 3.7 | % | ||||||||
Fixed maturity investments | ||||||||||||||||||||
U.S. treasuries | 1,309,243 | 20.7 | % | 885,152 | 14.5 | % | 424,091 | 6.2 | % | |||||||||||
Agencies | ||||||||||||||||||||
Fannie Mae & Freddie Mac | 328,034 | 5.2 | % | 143,562 | 2.3 | % | 184,472 | 2.9 | % | |||||||||||
Other agencies | 15,541 | 0.2 | % | 14,999 | 0.2 | % | 542 | — | % | |||||||||||
Total agencies | 343,575 | 5.4 | % | 158,561 | 2.5 | % | 185,014 | 2.9 | % | |||||||||||
Non-U.S. government (Sovereign debt) | 130,899 | 2.1 | % | 227,912 | 3.7 | % | (97,013 | ) | (1.6 | )% | ||||||||||
FDIC guaranteed corporate | 103,554 | 1.6 | % | 423,630 | 6.9 | % | (320,076 | ) | (5.3 | )% | ||||||||||
Non-U.S. government-backed corporate | 501,160 | 7.9 | % | 641,082 | 10.5 | % | (139,922 | ) | (2.6 | )% | ||||||||||
Corporate | 1,146,211 | 18.2 | % | 1,206,904 | 19.7 | % | (60,693 | ) | (1.5 | )% | ||||||||||
Mortgage-backed | ||||||||||||||||||||
Residential mortgage-backed | ||||||||||||||||||||
Agency securities | 319,215 | 5.0 | % | 441,749 | 7.2 | % | (122,534 | ) | (2.2 | )% | ||||||||||
Non-agency securities - Prime | 70,497 | 1.1 | % | 68,678 | 1.1 | % | 1,819 | — | % | |||||||||||
Non-agency securities - Alt A | 37,550 | 0.6 | % | 36,093 | 0.6 | % | 1,457 | — | % | |||||||||||
Total residential mortgage-backed | 427,262 | 6.7 | % | 546,520 | 8.9 | % | (119,258 | ) | (2.2 | )% | ||||||||||
Commercial mortgage-backed | 329,343 | 5.2 | % | 325,729 | 5.3 | % | 3,614 | (0.1 | )% | |||||||||||
Total mortgage-backed | 756,605 | 11.9 | % | 872,249 | 14.2 | % | (115,644 | ) | (2.3 | )% | ||||||||||
Asset-backed | ||||||||||||||||||||
Credit cards | 3,007 | — | % | 8,955 | 0.1 | % | (5,948 | ) | (0.1 | )% | ||||||||||
Auto | 1,711 | — | % | — | — | % | 1,711 | — | % | |||||||||||
Student loans | 1,292 | — | % | 1,287 | — | % | 5 | — | % | |||||||||||
Other | 4,862 | 0.2 | % | 7,785 | 0.1 | % | (2,923 | ) | 0.1 | % | ||||||||||
Total asset-backed | 10,872 | 0.2 | % | 18,027 | 0.2 | % | (7,155 | ) | — | % | ||||||||||
Total securitized assets | 767,477 | 12.1 | % | 890,276 | 14.4 | % | (122,799 | ) | (2.3 | )% | ||||||||||
Total fixed maturity investments | 4,302,119 | 68.0 | % | 4,433,517 | 72.2 | % | (131,398 | ) | (4.2 | )% | ||||||||||
Equity investments trading | 53,080 | 0.8 | % | 50,560 | 0.8 | % | 2,520 | — | % | |||||||||||
Other investments | ||||||||||||||||||||
Private equity partnerships | 389,451 | 6.1 | % | 367,909 | 6.0 | % | 21,542 | 0.1 | % | |||||||||||
Senior secured bank loan funds | 266,141 | 4.2 | % | 257,870 | 4.2 | % | 8,271 | — | % | |||||||||||
Catastrophe bonds | 95,827 | 1.5 | % | 70,999 | 1.2 | % | 24,828 | 0.3 | % | |||||||||||
Non-U.S. fixed income funds | 31,713 | 0.5 | % | 28,862 | 0.5 | % | 2,851 | — | % | |||||||||||
Hedge funds | 22,310 | 0.4 | % | 21,344 | 0.3 | % | 966 | 0.1 | % | |||||||||||
Miscellaneous other investments | 1,340 | — | % | 2,000 | — | % | (660 | ) | — | % | ||||||||||
Total other investments | 806,782 | 12.7 | % | 748,984 | 12.2 | % | 57,798 | 0.5 | % | |||||||||||
Total managed investment portfolio | $ | 6,334,820 | 100.0 | % | $ | 6,138,538 | 100.0 | % | $ | 196,282 | ||||||||||
12 | | |
RenaissanceRe Holdings Ltd. | ||||||||||||||||||||||||||||
Fixed Maturity Investments - Corporate Sector | ||||||||||||||||||||||||||||
March 31, 2012 | ||||||||||||||||||||||||||||
Sector | Total | AAA | AA | A | BBB | Non-Investment Grade | Not Rated | |||||||||||||||||||||
Financials | $ | 555,613 | $ | 7,302 | $ | 139,712 | $ | 309,070 | $ | 61,961 | $ | 26,921 | $ | 10,647 | ||||||||||||||
Industrial, utilities and energy | 202,005 | — | 16,872 | 63,220 | 74,051 | 47,862 | — | |||||||||||||||||||||
Communications and technology | 142,267 | 106 | 4,128 | 55,041 | 43,247 | 39,220 | 525 | |||||||||||||||||||||
Consumer | 111,398 | — | 12,777 | 27,415 | 35,971 | 35,131 | 104 | |||||||||||||||||||||
Basic materials | 59,486 | — | — | 14,011 | 29,332 | 15,892 | 251 | |||||||||||||||||||||
Health care | 54,823 | — | 25,353 | 10,536 | 2,577 | 16,349 | 8 | |||||||||||||||||||||
Other | 20,619 | 4,968 | 7,262 | 6,218 | 2,051 | 120 | — | |||||||||||||||||||||
Total corporate fixed maturity investments, at fair value (1) | $ | 1,146,211 | $ | 12,376 | $ | 206,104 | $ | 485,511 | $ | 249,190 | $ | 181,495 | $ | 11,535 | ||||||||||||||
Fixed Maturity and Short Term Investments - Corporate Top 10 Issuers by Fair Value | ||||||||||||||||||||||||||||
March 31, 2012 | ||||||||||||||||||||||||||||
Issuer | Total | Short term investments | Fixed maturity investments | |||||||||||||||||||||||||
JP Morgan Chase & Co. | $ | 58,131 | $ | 1,745 | $ | 56,386 | ||||||||||||||||||||||
Citigroup Inc. | 43,870 | — | 43,870 | |||||||||||||||||||||||||
General Electric Company | 45,166 | — | 45,166 | |||||||||||||||||||||||||
Bank of America Corp. | 32,699 | — | 32,699 | |||||||||||||||||||||||||
HSBC Holdings PLC | 31,943 | — | 31,943 | |||||||||||||||||||||||||
Morgan Stanley | 26,507 | — | 26,507 | |||||||||||||||||||||||||
Goldman Sachs Group Inc. | 24,955 | — | 24,955 | |||||||||||||||||||||||||
Credit Suisse Group AG | 23,222 | — | 23,222 | |||||||||||||||||||||||||
Lloyds Banking Group PLC | 18,780 | — | 18,780 | |||||||||||||||||||||||||
BP PLC | 15,984 | — | 15,984 | |||||||||||||||||||||||||
Total (2) | $ | 321,257 | $ | 1,745 | $ | 319,512 | ||||||||||||||||||||||
(1) | Excludes FDIC guaranteed and non-U.S. government-backed corporate fixed maturity investments, at fair value. |
(2) | Excludes FDIC guaranteed and non-U.S. government-backed corporate fixed maturity investments, repurchase agreements and commercial paper, at fair value. |
13 | | |
RenaissanceRe Holdings Ltd. | |||||||||||||||
Reserves for Claims and Claim Expenses | |||||||||||||||
Case Reserves | Additional Case Reserves | IBNR | Total | ||||||||||||
March 31, 2012 | |||||||||||||||
Catastrophe | $ | 633,228 | $ | 243,651 | $ | 350,708 | $ | 1,227,587 | |||||||
Specialty | 135,492 | 53,045 | 270,225 | 458,762 | |||||||||||
Total Reinsurance | 768,720 | 296,696 | 620,933 | 1,686,349 | |||||||||||
Lloyd's | 18,421 | 7,579 | 67,101 | 93,101 | |||||||||||
Insurance | 20,810 | 5,338 | 52,605 | 78,753 | |||||||||||
Total | $ | 807,951 | $ | 309,613 | $ | 740,639 | $ | 1,858,203 | |||||||
December 31, 2011 | |||||||||||||||
Catastrophe | $ | 681,771 | $ | 271,990 | $ | 388,147 | $ | 1,341,908 | |||||||
Specialty | 120,189 | 49,840 | 301,589 | 471,618 | |||||||||||
Total Reinsurance | 801,960 | 321,830 | 689,736 | 1,813,526 | |||||||||||
Lloyd's | 17,909 | 14,459 | 55,127 | 87,495 | |||||||||||
Insurance | 32,944 | 3,515 | 54,874 | 91,333 | |||||||||||
Total | $ | 852,813 | $ | 339,804 | $ | 799,737 | $ | 1,992,354 | |||||||
September 30, 2011 | |||||||||||||||
Catastrophe | $ | 497,889 | $ | 524,700 | $ | 539,723 | $ | 1,562,312 | |||||||
Specialty | 113,022 | 52,285 | 333,947 | 499,254 | |||||||||||
Total Reinsurance | 610,911 | 576,985 | 873,670 | 2,061,566 | |||||||||||
Lloyd's | 18,114 | 10,558 | 43,676 | 72,348 | |||||||||||
Insurance | 39,058 | 5,020 | 48,013 | 92,091 | |||||||||||
Total | $ | 668,083 | $ | 592,563 | $ | 965,359 | $ | 2,226,005 | |||||||
June 30, 2011 | |||||||||||||||
Catastrophe | $ | 406,522 | $ | 473,439 | $ | 630,651 | $ | 1,510,612 | |||||||
Specialty | 108,613 | 51,439 | 347,795 | 507,847 | |||||||||||
Total Reinsurance | 515,135 | 524,878 | 978,446 | 2,018,459 | |||||||||||
Lloyd's | 10,498 | 10,450 | 39,008 | 59,956 | |||||||||||
Insurance | 35,196 | 5,577 | 51,540 | 92,313 | |||||||||||
Total | $ | 560,829 | $ | 540,905 | $ | 1,068,994 | $ | 2,170,728 | |||||||
March 31, 2011 | |||||||||||||||
Catastrophe | $ | 156,246 | $ | 422,871 | $ | 838,360 | $ | 1,417,477 | |||||||
Specialty | 112,092 | 49,221 | 338,671 | 499,984 | |||||||||||
Total Reinsurance | 268,338 | 472,092 | 1,177,031 | 1,917,461 | |||||||||||
Lloyd's | 217 | 14,774 | 36,526 | 51,517 | |||||||||||
Insurance | 38,291 | 5,300 | 57,526 | 101,117 | |||||||||||
Total | $ | 306,846 | $ | 492,166 | $ | 1,271,083 | $ | 2,070,095 | |||||||
14 | | |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||||||
Paid to Incurred Analysis | |||||||||||||||||||||||
Three months ended March 31, 2012 | Three months ended March 31, 2011 | ||||||||||||||||||||||
Gross | Recoveries | Net | Gross | Recoveries | Net | ||||||||||||||||||
Reserve for losses and loss expenses, beginning of period | $ | 1,992,354 | $ | 404,029 | $ | 1,588,325 | $ | 1,257,843 | $ | 101,711 | $ | 1,156,132 | |||||||||||
Incurred losses and loss expenses | |||||||||||||||||||||||
Current year | 77,931 | 6,507 | 71,424 | 937,217 | 240,520 | 696,697 | |||||||||||||||||
Prior years | (62,649 | ) | (6,777 | ) | (55,872 | ) | (73,894 | ) | (5,734 | ) | (68,160 | ) | |||||||||||
Total incurred losses and loss expenses | 15,282 | (270 | ) | 15,552 | 863,323 | 234,786 | 628,537 | ||||||||||||||||
Paid losses and loss expenses | |||||||||||||||||||||||
Current year | 7,657 | — | 7,657 | 512 | — | 512 | |||||||||||||||||
Prior years | 141,776 | 124,361 | 17,415 | 50,559 | 12,373 | 38,186 | |||||||||||||||||
Total paid losses and loss expenses | 149,433 | 124,361 | 25,072 | 51,071 | 12,373 | 38,698 | |||||||||||||||||
Reserve for losses and loss expenses, end of period | $ | 1,858,203 | $ | 279,398 | $ | 1,578,805 | $ | 2,070,095 | $ | 324,124 | $ | 1,745,971 | |||||||||||
15 | | |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Earnings (Loss) per Share | |||||||||||||||||||
Three months ended | |||||||||||||||||||
(common shares in thousands) | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | ||||||||||||||
Numerator: | |||||||||||||||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | 201,429 | $ | 81,771 | $ | 49,263 | $ | 24,764 | $ | (248,033 | ) | ||||||||
Amount allocated to participating common shareholders (1) | (3,404 | ) | (1,433 | ) | (911 | ) | (461 | ) | 6,327 | ||||||||||
$ | 198,025 | $ | 80,338 | $ | 48,352 | $ | 24,303 | $ | (241,706 | ) | |||||||||
Denominator: | |||||||||||||||||||
Denominator for basic income (loss) per RenaissanceRe common share - | |||||||||||||||||||
Weighted average common shares | 50,377 | 50,501 | 50,501 | 50,493 | 51,504 | ||||||||||||||
Per common share equivalents of employee stock options and restricted shares | 604 | 359 | 472 | 557 | — | ||||||||||||||
Denominator for diluted income (loss) per RenaissanceRe common share - | |||||||||||||||||||
Adjusted weighted average common shares and assumed conversions (2) | 50,981 | 50,860 | 50,973 | 51,050 | 51,504 | ||||||||||||||
Basic income (loss) per RenaissanceRe common share | $ | 3.93 | $ | 1.59 | $ | 0.96 | $ | 0.48 | $ | (4.69 | ) | ||||||||
Diluted income (loss) per RenaissanceRe common share (2) | $ | 3.88 | $ | 1.58 | $ | 0.95 | $ | 0.48 | $ | (4.69 | ) | ||||||||
(1) | Represents earnings attributable to holders of unvested restricted shares issued under the Company's 2001 Stock Incentive Plan and Non-Employee Director Stock Incentive Plan. |
(2) | Earnings per share calculations use average common shares outstanding - basic, when in a net loss position, as required by FASB ASC Topic Earnings Per Share. |
16 | | |
RenaissanceRe Holdings Ltd. | |||||||||||||||||||
Equity in Earnings (Losses) of Other Ventures | |||||||||||||||||||
Three months ended | |||||||||||||||||||
March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | |||||||||||||||
Top Layer Re | $ | 4,737 | $ | (22,617 | ) | $ | 3,688 | $ | 3,967 | $ | (22,509 | ) | |||||||
Tower Hill Companies | 1,117 | (348 | ) | 2,504 | 1,216 | (449 | ) | ||||||||||||
Other | (384 | ) | 263 | (1,398 | ) | (55 | ) | (795 | ) | ||||||||||
Total equity in earnings (losses) of other ventures | $ | 5,470 | $ | (22,702 | ) | $ | 4,794 | $ | 5,128 | $ | (23,753 | ) | |||||||
Other (Loss) Income | |||||||||||||||||||
Three months ended | |||||||||||||||||||
March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | |||||||||||||||
Gain on sale of NBIC | $ | — | — | 4,836 | — | — | |||||||||||||
Mark-to-market on Platinum warrant | — | — | — | — | 2,975 | ||||||||||||||
Assumed and ceded reinsurance contracts accounted for at fair value or as deposits | (1,779 | ) | (2,381 | ) | (2,704 | ) | (1,022 | ) | 43,521 | ||||||||||
Weather and energy risk management operations | (35,463 | ) | (41,314 | ) | (3,232 | ) | (3,779 | ) | 3,295 | ||||||||||
Other items | (1,852 | ) | 47 | (915 | ) | (366 | ) | 354 | |||||||||||
Total other (loss) income | $ | (39,094 | ) | $ | (43,648 | ) | $ | (2,015 | ) | $ | (5,167 | ) | $ | 50,145 | |||||
17 | | |
RenaissanceRe Holdings Ltd. | |||||||
Ratings | |||||||
A.M. Best | S&P (4) | Moody's | Fitch | ||||
REINSURANCE SEGMENT (1) | |||||||
Renaissance Reinsurance | A+ | AA- | A1 | A+ | |||
DaVinci | A | A+ | A3 | — | |||
Top Layer Re | A+ | AA | — | — | |||
Renaissance Reinsurance of Europe | A+ | AA- | — | — | |||
LLOYD'S SEGMENT | |||||||
RenaissanceRe Syndicate 1458 | — | — | — | — | |||
Lloyd's Overall Market Rating (2) | A | A+ | — | A+ | |||
INSURANCE SEGMENT (1) | |||||||
Glencoe | A | A | — | — | |||
RENAISSANCERE (3) | — | Excellent | — | — | |||
(1) The A.M. Best, S&P, Moody's and Fitch ratings for the companies in the Reinsurance and Insurance segments reflect the insurer's financial strength rating.
(2) The A.M. Best, S&P and Fitch ratings for the Lloyd's Overall Market Rating represent its financial strength rating.
(3) The S&P rating for RenaissanceRe represents rating on its Enterprise Risk Management practices.
(4) The S&P ratings for the companies in the Reinsurance and Insurance segments reflect, in addition to the insurer's financial strength rating, the insurer's issuer credit rating.
18 | | |
RenaissanceRe Holdings Ltd.
Comments on Regulation G
In addition to the GAAP financial measures set forth in this Financial Supplement, the Company has included certain non-GAAP financial measures in this Financial Supplement within the meaning of Regulation G. The Company has consistently 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 (loss) available (attributable) 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 (loss) available (attributable) to RenaissanceRe common shareholders” as used herein differs from “net income (loss) available (attributable) 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 and discontinued operations. The Company's management believes that “operating income (loss) available (attributable) 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 (loss) available (attributable) to RenaissanceRe common shareholders” to calculate “operating income (loss) available (attributable) 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 (loss) available (attributable) to RenaissanceRe common shareholders to operating income (loss) available (attributable) to RenaissanceRe common shareholders; 2) net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted to operating income (loss) available (attributable) 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 | |||||||||||||||||||
March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | |||||||||||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | 201,429 | $ | 81,771 | $ | 49,263 | $ | 24,764 | $ | (248,033 | ) | ||||||||
Adjustment for net realized and unrealized (gains) losses on investments of continuing operations | (46,113 | ) | (23,920 | ) | (16,983 | ) | (34,979 | ) | 5,214 | ||||||||||
Adjustment for net other-than-temporary impairments of continuing operations | 134 | 103 | 449 | — | — | ||||||||||||||
Adjustment for net realized and unrealized gains on fixed maturity investments and net other-than-temporary impairments of discontinued operations | — | — | — | — | (42 | ) | |||||||||||||
Operating income (loss) available (attributable) to RenaissanceRe common shareholders | $ | 155,450 | $ | 57,954 | $ | 32,729 | $ | (10,215 | ) | $ | (242,861 | ) | |||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted | $ | 3.88 | $ | 1.58 | $ | 0.95 | $ | 0.48 | $ | (4.69 | ) | ||||||||
Adjustment for net realized and unrealized (gains) losses on investments of continuing operations | (0.90 | ) | (0.47 | ) | (0.34 | ) | (0.69 | ) | 0.10 | ||||||||||
Adjustment for net other-than-temporary impairments of continuing operations | — | — | 0.01 | — | — | ||||||||||||||
Adjustment for net realized and unrealized gains on fixed maturity investments and net other-than-temporary impairments of discontinued operations | — | — | — | — | — | ||||||||||||||
Operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted | $ | 2.98 | $ | 1.11 | $ | 0.62 | $ | (0.21 | ) | $ | (4.59 | ) | |||||||
Return on average common equity - annualized | 25.6 | % | 10.8 | % | 6.6 | % | 3.3 | % | (31.3%) | ||||||||||
Adjustment for net realized and unrealized (gains) losses on investments of continuing operations | (5.9 | )% | (3.1 | )% | (2.3%) | (4.7%) | 0.6 | % | |||||||||||
Adjustment for net other-than-temporary impairments of continuing operations | — | % | — | % | 0.1 | % | — | — | |||||||||||
Adjustment for net realized and unrealized (gains) losses on fixed maturity investments and net other-than-temporary impairments of discontinued operations | — | % | — | % | — | % | — | % | — | % | |||||||||
Operating return on average common equity - annualized | 19.7 | % | 7.7 | % | 4.4 | % | (1.4%) | (30.7%) | |||||||||||
19 | | |
RenaissanceRe Holdings Ltd.
Comments on Regulation G
The Company has also included in this Financial Supplement “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 Financial Supplement “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; “tangible book value per common share plus accumulated dividends” is defined as book value per common share excluding goodwill and intangible assets, 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. 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 | |||||||||||||||||||
March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | |||||||||||||||
Book value per common share | $ | 62.68 | $ | 59.27 | $ | 57.89 | $ | 57.30 | $ | 57.01 | |||||||||
Adjustment for goodwill and other intangibles (1) | (0.84 | ) | (0.82 | ) | (0.94 | ) | (0.96 | ) | (0.99 | ) | |||||||||
Tangible book value per common share | 61.84 | 58.45 | 56.95 | 56.34 | 56.02 | ||||||||||||||
Adjustment for accumulated dividends | 11.19 | 10.92 | 10.66 | 10.40 | 10.14 | ||||||||||||||
Tangible book value per common share plus accumulated dividends | $ | 73.03 | $ | 69.37 | $ | 67.61 | $ | 66.74 | $ | 66.16 | |||||||||
Quarter change in book value per common share | 5.8 | % | 2.4 | % | 1.0 | % | 0.5 | % | (8.9%) | ||||||||||
Quarter change in tangible book value per common share plus change in accumulated dividends | 6.3 | % | 3.1 | % | 1.5 | % | 1.0 | % | (7.1%) | ||||||||||
(1) | At March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 2011, goodwill and other intangibles included $34.5 million, $33.5 million, $34.2 million, $35.4 million and $36.8 million, respectively, of goodwill and other intangibles included in investments in other ventures, under equity method. |
20 | | |