RENAISSANCERE HOLDINGS LTD - FORM 8-K - EX-99.2 - COPY OF THE COMPANY'S FINANCIAL SUPPLEMENT

Attached files

file	filename
8-K - 8-K - RENAISSANCERE HOLDINGS LTD	rnrq220148-kcover.htm
EX-99.1 - COPY OF THE COMPANY'S EARNINGS RELEASE - RENAISSANCERE HOLDINGS LTD	rnrq22014earningsrelease.htm

RenaissanceRe Holdings Ltd.

Contents



		Page(s)

Basis of Presentation		i

Financial Highlights		1

Income Statements
a.	Summary Consolidated Statements of Operations	2 - 3
b.	Consolidated Segment Underwriting Results	4 - 5
c.	Gross Premiums Written and Managed Premiums	6 - 7
d.	DaVinciRe Holdings Ltd. and Subsidiary Consolidated Statements of Operations	8 - 9

Balance Sheets
a.	Summary Consolidated Balance Sheets	10

Investments
a.	Investment Portfolio - Composition	11
b.	Summary of Other Investments	12
c.	Total Investment Result	13
d.	Investment Portfolio - Effective Yield and Credit Rating	14
e.	Investment Portfolio - Change in Portfolio Composition	15
f.	Fixed Maturity Investments - Corporate Sector	16
g.	Fixed Maturity and Short Term Investments - Corporate Top 10 Issuers by Fair Value	16

Loss Reserve Analysis
a.	Reserves for Claims and Claim Expenses	17
b.	Paid to Incurred Analysis	18

Other Items
a.	Earnings per Share	19
b.	Equity in Earnings of Other Ventures	20
c.	Other (Loss) Income	20
d.	Ratings	21

Comments on Regulation G		22 - 23

RenaissanceRe Holdings Ltd.

Basis of Presentation

This financial supplement 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 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 22 and 23 for Comments on Regulation G.

RenaissanceRe Holdings Ltd. is a global provider of reinsurance and insurance. The Company has the following 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 (“Syndicate 1458”).

During the third quarter of 2013, the Company made the strategic decision to divest its U.S.-based weather and weather-related energy risk management unit, which principally included RenRe Commodity Advisors LLC, Renaissance Trading Ltd. and RenRe Energy Advisors Ltd. (collectively referred to as "REAL"), in order to focus on the business encompassed within the Company's Catastrophe Reinsurance, Specialty Reinsurance and Lloyd's segments and its other businesses. REAL offered certain derivative-based risk management products primarily to address weather and energy risk and engaged in hedging and trading activities related to those transactions. On August 30, 2013, RenaissanceRe entered into a sale agreement with a subsidiary of Munich-American Holding Corporation ("Munich") to sell REAL and, on October 1, 2013, RenaissanceRe completed the sale of REAL to Munich. In the third quarter of 2013, the Company classified the assets and liabilities associated with this transaction as held for sale and the financial results are reflected in the Company's consolidated financial statements as “discontinued operations.” Except as explicitly described as held for sale or as discontinued operations, and unless otherwise noted, all discussions and amounts presented herein relate to the Company's continuing operations. All prior periods presented have been reclassified to conform to this form of presentation.

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 U.S. 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						Six months ended
	June 30, 2014			June 30, 2013			June 30, 2014			June 30, 2013
Highlights
Gross premiums written	$	511,540		$	703,223		$	1,216,800		$	1,338,641
Net premiums written	346,407			559,109			796,754			995,922
Net premiums earned	260,416			291,889			546,950			563,144
Net claims and claim expenses incurred	81,388			103,962			140,303			131,213
Acquisition expenses	33,477			31,767			67,177			56,776
Operating expenses	45,841			42,789			88,465			88,775
Underwriting income	$	99,710		$	113,371		$	251,005		$	286,380

Net investment income	$	34,541		$	26,163		$	73,489		$	69,365
Net realized and unrealized gains (losses) on investments	27,128			(69,529		)	42,055			(55,260		)
Change in net unrealized gains on fixed maturity investments available for sale	(96		)	(1,239		)	(261		)	(7,306		)
Total investment result	$	61,573		$	(44,605	)	$	115,283		$	6,799

Net income available to RenaissanceRe common shareholders	$	120,752		$	26,806		$	271,755		$	217,280
Operating income available to RenaissanceRe common shareholders (1)	$	93,624		$	96,350		$	229,700		$	272,553

Total assets	$	8,515,625		$	8,467,383		$	8,515,625		$	8,467,383
Total shareholders' equity attributable to RenaissanceRe	$	3,835,941		$	3,568,297		$	3,835,941		$	3,568,297

Per share data
Net income available to RenaissanceRe common shareholders per common share - diluted	$	2.95		$	0.60		$	6.52		$	4.83
Operating income available to RenaissanceRe common shareholders per common share - diluted (1)	$	2.28		$	2.17		$	5.50		$	6.08
Dividends per common share	$	0.29		$	0.28		$	0.58		$	0.56
Book value per common share	$	84.79		$	71.38		$	84.79		$	71.38
Tangible book value per common share (1)	$	83.93		$	70.53		$	83.93		$	70.53
Tangible book value per common share plus accumulated dividends (1)	$	97.63		$	83.09		$	97.63		$	83.09
Change in tangible book value per common share plus change in accumulated dividends (1)	3.5		%	0.8		%	6.4		%	5.7		%

Financial ratios
Net claims and claim expense ratio - current accident year	37.8		%	44.8		%	31.8		%	34.7		%
Net claims and claim expense ratio - prior accident years	(6.5		)%	(9.2		)%	(6.1		)%	(11.4		)%
Net claims and claim expense ratio - calendar year	31.3		%	35.6		%	25.7		%	23.3		%
Underwriting expense ratio	30.4		%	25.6		%	28.4		%	25.9		%
Combined ratio	61.7		%	61.2		%	54.1		%	49.2		%
Operating return on average common equity - annualized (1)	11.0		%	12.2		%	13.4		%	17.3		%
Total investment return - annualized	3.7		%	(2.8		)%	3.4		%	0.2		%


(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
	June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013
Revenues
Gross premiums written	$	511,540		$	705,260		$	84,122		$	182,649		$	703,223
Net premiums written	$	346,407		$	450,347		$	80,784		$	127,241		$	559,109
(Increase) decrease in unearned premiums	(85,991		)	(163,813		)	175,981			167,476			(267,220		)
Net premiums earned	260,416			286,534			256,765			294,717			291,889
Net investment income	34,541			38,948			78,732			59,931			26,163
Net foreign exchange gains (losses)	2,392			(1,061		)	1,747			488			(932		)
Equity in earnings of other ventures	7,232			4,199			6,274			7,313			3,772
Other (loss) income	(535		)	62			(173		)	651			(1,128		)
Net realized and unrealized gains (losses) on investments	27,128			14,927			61,864			28,472			(69,529		)
Total revenues	331,174			343,609			405,209			391,572			250,235
Expenses
Net claims and claim expenses incurred	81,388			58,915			(20,854		)	60,928			103,962
Acquisition expenses	33,477			33,700			31,026			37,699			31,767
Operational expenses	45,841			42,624			57,658			44,672			42,789
Corporate expenses	3,954			4,545			3,304			4,307			21,529
Interest expense	4,292			4,293			4,297			4,298			4,300
Total expenses	168,952			144,077			75,431			151,904			204,347
Income from continuing operations before taxes	162,222			199,532			329,778			239,668			45,888
Income tax benefit (expense)	204			(166		)	(1,336		)	(223		)	(11		)
Income from continuing operations	162,426			199,366			328,442			239,445			45,877
(Loss) income from discontinued operations	—			—			—			(9,779		)	2,427
Net income	162,426			199,366			328,442			229,666			48,304
Net income attributable to noncontrolling interests	(36,078		)	(42,768		)	(54,191		)	(44,331		)	(14,015		)
Net income attributable to RenaissanceRe	126,348			156,598			274,251			185,335			34,289
Dividends on preference shares	(5,596		)	(5,595		)	(5,595		)	(5,595		)	(7,483		)
Net income available to RenaissanceRe common shareholders	$	120,752		$	151,003		$	268,656		$	179,740		$	26,806
Income from continuing operations available to RenaissanceRe common shareholders per common share - basic	$	3.00		$	3.61		$	6.14		$	4.32		$	0.55
(Loss) income from discontinued operations (attributable) available to RenaissanceRe common shareholders per common share - basic	—			—			—			(0.23		)	0.06
Net income available to RenaissanceRe common shareholders per common share - basic	$	3.00		$	3.61		$	6.14		$	4.09		$	0.61
Income from continuing operations available to RenaissanceRe common shareholders per common share - diluted	2.95			3.56			6.05			4.23			0.55
(Loss) income from discontinued operations (attributable) available to RenaissanceRe common shareholders per common share - diluted	—			—			—			(0.22		)	0.05
Net income available to RenaissanceRe common shareholders per common share - diluted	$	2.95		$	3.56		$	6.05		$	4.01		$	0.60
Operating income available to RenaissanceRe common shareholders per common share - diluted (1)	$	2.28		$	3.20		$	4.64		$	3.36		$	2.17
Operating return on average common equity - annualized (1)	11.0		%	15.9		%	24.3		%	18.7		%	12.2		%


(1)	See Comments on Regulation G for a reconciliation of non-GAAP financial measures.



	2



RenaissanceRe Holdings Ltd.
Summary Consolidated Statements of Operations

	Six months ended
	June 30, 2014			June 30, 2013
Revenues
Gross premiums written	$	1,216,800		$	1,338,641
Net premiums written	$	796,754		$	995,922
Increase in unearned premiums	(249,804		)	(432,778		)
Net premiums earned	546,950			563,144
Net investment income	73,489			69,365
Net foreign exchange gains (losses)	1,331			(318		)
Equity in earnings of other ventures	11,431			9,607
Other loss	(473		)	(2,837		)
Net realized and unrealized gains (losses) on investments	42,055			(55,260		)
Total revenues	674,783			583,701
Expenses
Net claims and claim expenses incurred	140,303			131,213
Acquisition expenses	67,177			56,776
Operational expenses	88,465			88,775
Corporate expenses	8,499			26,011
Interest expense	8,585			9,334
Total expenses	313,029			312,109
Income from continuing operations before taxes	361,754			271,592
Income tax benefit (expense)	38			(133		)
Income from continuing operations	361,792			271,459
Income from discontinued operations	—			12,201
Net income	361,792			283,660
Net income attributable to noncontrolling interests	(78,846		)	(52,622		)
Net income attributable to RenaissanceRe	282,946			231,038
Dividends on preference shares	(11,191		)	(13,758		)
Net income available to RenaissanceRe common shareholders	$	271,755		$	217,280
Income from continuing operations available to RenaissanceRe common shareholders per common share - basic	$	6.62		$	4.65
Income from discontinued operations available to RenaissanceRe common shareholders per common share - basic	—			0.28
Net income available to RenaissanceRe common shareholders per common share - basic	$	6.62		$	4.93
Income from continuing operations available to RenaissanceRe common shareholders per common share - diluted	6.52			4.55
Income from discontinued operations available to RenaissanceRe common shareholders per common share - diluted	—			0.28
Net income available to RenaissanceRe common shareholders per common share - diluted	$	6.52		$	4.83
Operating income available to RenaissanceRe common shareholders per common share - diluted (1)	$	5.50		$	6.08
Operating return on average common equity - annualized (1)	13.4		%	17.3		%


(1)	See Comments on Regulation G for a reconciliation of non-GAAP financial measures.



	3



RenaissanceRe Holdings Ltd.
Consolidated Segment Underwriting Results

	Three months ended June 30, 2014
	Catastrophe Reinsurance			Specialty Reinsurance			Lloyd's			Other			Total
Gross premiums written	$	388,083		$	51,554		$	71,903		$	—		$	511,540
Net premiums written	$	233,698		$	46,254		$	66,452		$	3		$	346,407
Net premiums earned	$	159,152		$	53,588		$	47,672		$	4		$	260,416
Net claims and claim expenses incurred	36,730			20,075			25,111			(528		)	81,388
Acquisition expenses	17,806			11,699			10,122			(6,150		)	33,477
Operational expenses	22,200			10,514			13,058			69			45,841
Underwriting income (loss)	$	82,416		$	11,300		$	(619	)	$	6,613		$	99,710

Net claims and claim expenses incurred - current accident year	$	38,473		$	25,443		$	34,555		$	—		$	98,471
Net claims and claim expenses incurred - prior accident years	(1,743		)	(5,368		)	(9,444		)	(528		)	(17,083		)
Net claims and claim expenses incurred - total	$	36,730		$	20,075		$	25,111		$	(528	)	$	81,388

Net claims and claim expense ratio - current accident year	24.2		%	47.5		%	72.5		%	—		%	37.8		%
Net claims and claim expense ratio - prior accident years	(1.1		)%	(10.0		)%	(19.8		)%	(13,200.0		)%	(6.5		)%
Net claims and claim expense ratio - calendar year	23.1		%	37.5		%	52.7		%	(13,200.0		)%	31.3		%
Underwriting expense ratio	25.1		%	41.4		%	48.6		%	(152,025.0		)%	30.4		%
Combined ratio	48.2		%	78.9		%	101.3		%	(165,225.0		)%	61.7		%

	Three months ended June 30, 2013
	Catastrophe Reinsurance			Specialty Reinsurance			Lloyd's			Other			Total
Gross premiums written (1)	$	576,903		$	58,539		$	68,769		$	(988	)	$	703,223
Net premiums written	$	436,852		$	57,348		$	64,643		$	266		$	559,109
Net premiums earned	$	200,483		$	49,206		$	41,933		$	267		$	291,889
Net claims and claim expenses incurred	52,915			25,511			25,536			—			103,962
Acquisition expenses	14,197			9,009			8,484			77			31,767
Operational expenses	23,599			7,595			11,456			139			42,789
Underwriting income (loss)	$	109,772		$	7,091		$	(3,543	)	$	51		$	113,371

Net claims and claim expenses incurred - current accident year	$	71,369		$	30,903		$	28,517		$	—		$	130,789
Net claims and claim expenses incurred - prior accident years	(18,454		)	(5,392		)	(2,981		)	—			(26,827		)
Net claims and claim expenses incurred - total	$	52,915		$	25,511		$	25,536		$	—		$	103,962

Net claims and claim expense ratio - current accident year	35.6		%	62.8		%	68.0		%	—		%	44.8		%
Net claims and claim expense ratio - prior accident years	(9.2		)%	(11.0		)%	(7.1		)%	—		%	(9.2		)%
Net claims and claim expense ratio - calendar year	26.4		%	51.8		%	60.9		%	—		%	35.6		%
Underwriting expense ratio	18.8		%	33.8		%	47.5		%	80.9		%	25.6		%
Combined ratio	45.2		%	85.6		%	108.4		%	80.9		%	61.2		%

(1) Included in gross premiums written in the Other category is the elimination of inter-segment gross premiums written of $1.0 million.



	4



RenaissanceRe Holdings Ltd.
Consolidated Segment Underwriting Results

	Six months ended June 30, 2014
	Catastrophe Reinsurance			Specialty Reinsurance			Lloyd's			Other			Total
Gross premiums written	$	855,794		$	205,844		$	155,162		$	—		$	1,216,800
Net premiums written	$	493,187		$	171,743		$	131,821		$	3		$	796,754
Net premiums earned	$	323,736		$	123,218		$	99,969		$	27		$	546,950
Net claims and claim expenses incurred	43,185			46,156			51,392			(430		)	140,303
Acquisition expenses	24,932			28,246			20,689			(6,690		)	67,177
Operational expenses	42,619			20,620			25,091			135			88,465
Underwriting income	$	213,000		$	28,196		$	2,797		$	7,012		$	251,005

Net claims and claim expenses incurred - current accident year	$	51,002		$	67,365		$	55,712		$	—		$	174,079
Net claims and claim expenses incurred - prior accident years	(7,817		)	(21,209		)	(4,320		)	(430		)	(33,776		)
Net claims and claim expenses incurred - total	$	43,185		$	46,156		$	51,392		$	(430	)	$	140,303

Net claims and claim expense ratio - current accident year	15.8		%	54.7		%	55.7		%	—		%	31.8		%
Net claims and claim expense ratio - prior accident years	(2.5		)%	(17.2		)%	(4.3		)%	(1,592.6		)%	(6.1		)%
Net claims and claim expense ratio - calendar year	13.3		%	37.5		%	51.4		%	(1,592.6		)%	25.7		%
Underwriting expense ratio	20.9		%	39.6		%	45.8		%	(24,277.8		)%	28.4		%
Combined ratio	34.2		%	77.1		%	97.2		%	(25,870.4		)%	54.1		%

	Six months ended June 30, 2013
	Catastrophe Reinsurance			Specialty Reinsurance			Lloyd's			Other			Total
Gross premiums written (1)	$	1,055,699		$	140,869		$	143,061		$	(988	)	$	1,338,641
Net premiums written	$	742,205		$	132,867		$	120,567		$	283		$	995,922
Net premiums earned	$	387,134		$	96,015		$	79,712		$	283		$	563,144
Net claims and claim expenses incurred	55,623			36,203			40,064			(677		)	131,213
Acquisition expenses	23,817			17,448			15,400			111			56,776
Operational expenses	49,714			15,155			23,634			272			88,775
Underwriting income	$	257,980		$	27,209		$	614		$	577		$	286,380

Net claims and claim expenses incurred - current accident year	$	92,545		$	56,756		$	46,388		$	—		$	195,689
Net claims and claim expenses incurred - prior accident years	(36,922		)	(20,553		)	(6,324		)	(677		)	(64,476		)
Net claims and claim expenses incurred - total	$	55,623		$	36,203		$	40,064		$	(677	)	$	131,213

Net claims and claim expense ratio - current accident year	23.9		%	59.1		%	58.2		%	—		%	34.7		%
Net claims and claim expense ratio - prior accident years	(9.5		)%	(21.4		)%	(7.9		)%	(239.2		)%	(11.4		)%
Net claims and claim expense ratio - calendar year	14.4		%	37.7		%	50.3		%	(239.2		)%	23.3		%
Underwriting expense ratio	19.0		%	34.0		%	48.9		%	135.3		%	25.9		%
Combined ratio	33.4		%	71.7		%	99.2		%	(103.9		)%	49.2		%

(1) Included in gross premiums written in the Other category is the elimination of inter-segment gross premiums written of $1.0 million.



	5



RenaissanceRe Holdings Ltd.
Gross Premiums Written and Managed Premiums

	Three months ended
	June 30, 2014		March 31, 2014			December 31, 2013			September 30, 2013		June 30, 2013
Catastrophe Reinsurance Segment
Renaissance catastrophe premiums	$	240,137	$	322,748		$	(4,041	)	$	55,849	$	368,077
DaVinci catastrophe premiums	147,946		144,963			(13,818		)	26,690		208,826
Total Catastrophe Reinsurance segment gross premiums written	$	388,083	$	467,711		$	(17,859	)	$	82,539	$	576,903

Specialty Reinsurance Segment
Renaissance specialty premiums	$	50,001	$	153,994		$	58,014		$	60,156	$	56,567
DaVinci specialty premiums	1,553		296			450			—		1,972
Total Specialty Reinsurance segment gross premiums written	$	51,554	$	154,290		$	58,464		$	60,156	$	58,539

Lloyd's Segment
Specialty	$	45,238	$	61,704		$	43,154		$	36,545	$	53,207
Catastrophe	26,665		21,555			363			3,409		15,562
Total Lloyd's segment gross premiums written	$	71,903	$	83,259		$	43,517		$	39,954	$	68,769

Managed Premiums (1)
Total Catastrophe Reinsurance segment gross premiums written	$	388,083	$	467,711		$	(17,859	)	$	82,539	$	576,903
Catastrophe premiums written on behalf of our joint venture, Top Layer Re (2)	23,110		14,115			3,694			1,963		25,682
Catastrophe premiums written in the Lloyd's segment	26,665		21,555			363			3,409		15,562
Catastrophe premiums written by the Company in its Catastrophe Reinsurance segment and ceded to Top Layer Re	—		(7,355		)	—			—		—
Total managed catastrophe premiums (1)	$	437,858	$	496,026		$	(13,802	)	$	87,911	$	618,147


(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.



	6



RenaissanceRe Holdings Ltd.
Gross Premiums Written and Managed Premiums

	Six months ended
	June 30, 2014			June 30, 2013
Catastrophe Reinsurance Segment
Renaissance catastrophe premiums	$	562,885		$	678,079
DaVinci catastrophe premiums	292,909			377,620
Total Catastrophe Reinsurance segment gross premiums written	$	855,794		$	1,055,699

Specialty Reinsurance Segment
Renaissance specialty premiums	$	203,995		$	138,184
DaVinci specialty premiums	1,849			2,685
Total Specialty Reinsurance segment gross premiums written	$	205,844		$	140,869

Lloyd's Segment
Specialty	$	106,942		$	108,964
Catastrophe	48,220			34,097
Total Lloyd's segment gross premiums written	$	155,162		$	143,061

Managed Premiums (1)
Total Catastrophe Reinsurance segment gross premiums written	$	855,794		$	1,055,699
Catastrophe premiums written on behalf of our joint venture, Top Layer Re (2)	37,225			58,064
Catastrophe premiums written in the Lloyd's segment	48,220			34,097
Catastrophe premiums written by the Company in its Catastrophe Reinsurance segment and ceded to Top Layer Re	(7,355		)	—
Total managed catastrophe premiums (1)	$	933,884		$	1,147,860


(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.



	7



DaVinciRe Holdings Ltd. and Subsidiary
Consolidated Statements of Operations

	Three months ended
	June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013
Revenues
Gross premiums written	$	149,499		$	145,259		$	(13,368	)	$	26,690		$	210,798
Net premiums written	$	126,810		$	118,930		$	(15,415	)	$	14,302		$	203,698
(Increase) decrease in unearned premiums	(52,440		)	(41,068		)	88,096			73,078			(107,972		)
Net premiums earned	74,370			77,862			72,681			87,380			95,726
Net investment income	6,875			7,054			7,164			7,263			6,283
Net foreign exchange gains (losses)	1,674			376			145			(380		)	526
Other loss	—			—			—			—			(169		)
Net realized and unrealized gains (losses) on investments	6,628			2,540			1,942			8,708			(24,529		)
Total revenues	89,547			87,832			81,932			102,971			77,837
Expenses
Net claims and claim expenses incurred	14,218			1,220			(28,625		)	3,999			27,283
Acquisition expenses	17,507			20,878			26,108			22,708			18,926
Operational and corporate expenses	8,335			8,803			9,392			9,967			9,812
Interest expense	933			937			937			943			946
Total expenses	40,993			31,838			7,812			37,617			56,967
Income before taxes	48,554			55,994			74,120			65,354			20,870
Income tax expense	(2		)	—			—			—			—
Net income	48,552			55,994			74,120			65,354			20,870
Net income attributable to redeemable noncontrolling interest	(99		)	(114		)	(150		)	(133		)	(43		)
Net income available to DaVinciRe common shareholders	$	48,453		$	55,880		$	73,970		$	65,221		$	20,827

Net claims and claim expenses incurred - current accident year	$	19,370		$	5,106		$	(4,023	)	$	8,438		$	34,523
Net claims and claim expenses incurred - prior accident years	(5,152		)	(3,886		)	(24,602		)	(4,439		)	(7,240		)
Net claims and claim expenses incurred - total	$	14,218		$	1,220		$	(28,625	)	$	3,999		$	27,283

Net claims and claim expense ratio - current accident year	26.0		%	6.6		%	(5.5		)%	9.7		%	36.1		%
Net claims and claim expense ratio - prior accident years	(6.9		)%	(5.0		)%	(33.9		)%	(5.1		)%	(7.6		)%
Net claims and claim expense ratio - calendar year	19.1		%	1.6		%	(39.4		)%	4.6		%	28.5		%
Underwriting expense ratio	34.8		%	38.1		%	48.9		%	37.4		%	30.0		%
Combined ratio	53.9		%	39.7		%	9.5		%	42.0		%	58.5		%



	8



DaVinciRe Holdings Ltd. and Subsidiary
Consolidated Statements of Operations

	Six months ended
	June 30, 2014			June 30, 2013
Revenues
Gross premiums written	$	294,758		$	380,305
Net premiums written	$	245,740		$	341,220
(Increase) decrease in unearned premiums	(93,508		)	(153,878		)
Net premiums earned	152,232			187,342
Net investment income	13,929			13,964
Net foreign exchange gains (losses)	2,050			656
Other loss	—			(717		)
Net realized and unrealized gains (losses) on investments	9,168			(26,247		)
Total revenues	177,379			174,998
Expenses
Net claims and claim expenses incurred	15,438			30,993
Acquisition expenses	38,385			43,200
Operational and corporate expenses	17,138			20,212
Interest expense	1,870			1,898
Total expenses	72,831			96,303
Income before taxes	104,548			78,695
Income tax expense	(2		)	—
Net income	104,546			78,695
Net income attributable to redeemable noncontrolling interest	(213		)	(161		)
Net income available to DaVinciRe common shareholders	$	104,333		$	78,534

Net claims and claim expenses incurred - current accident year	$	24,476		$	44,806
Net claims and claim expenses incurred - prior accident years	(9,038		)	(13,813		)
Net claims and claim expenses incurred - total	$	15,438		$	30,993

Net claims and claim expense ratio - current accident year	16.1		%	23.9		%
Net claims and claim expense ratio - prior accident years	(6.0		)%	(7.4		)%
Net claims and claim expense ratio - calendar year	10.1		%	16.5		%
Underwriting expense ratio	36.5		%	33.9		%
Combined ratio	46.6		%	50.4		%



	9



RenaissanceRe Holdings Ltd.
Summary Consolidated Balance Sheets

	June 30, 2014		March 31, 2014		December 31, 2013		September 30, 2013		June 30, 2013
Assets
Fixed maturity investments trading, at fair value	$	4,841,609	$	4,587,412	$	4,809,036	$	4,751,237	$	4,366,080
Fixed maturity investments available for sale, at fair value	29,219		30,205		34,241		38,530		40,785
Total fixed maturity investments, at fair value	4,870,828		4,617,617		4,843,277		4,789,767		4,406,865
Short term investments, at fair value	957,698		977,778		1,044,779		925,329		924,843
Equity investments trading, at fair value	254,408		245,267		254,776		113,986		108,620
Other investments, at fair value	513,614		576,099		573,264		500,770		629,396
Investments in other ventures, under equity method	110,354		106,332		105,616		97,660		93,049
Total investments	6,706,902		6,523,093		6,821,712		6,427,512		6,162,773
Cash and cash equivalents	294,457		327,163		408,032		266,350		234,906
Premiums receivable	837,116		668,788		474,087		735,937		954,142
Prepaid reinsurance premiums	267,963		207,752		66,132		166,340		214,804
Reinsurance recoverable	85,115		98,962		101,025		149,201		175,103
Accrued investment income	28,019		27,351		34,065		26,887		26,658
Deferred acquisition costs	140,765		121,890		81,684		103,844		125,682
Receivable for investments sold	58,205		84,396		75,845		240,191		311,783
Other assets	89,076		96,251		108,438		113,159		102,413
Goodwill and other intangibles	8,007		8,059		8,111		8,978		8,282
Assets of discontinued operations held for sale	—		—		—		115,556		150,837
Total assets	$	8,515,625	$	8,163,705	$	8,179,131	$	8,353,955	$	8,467,383
Liabilities, Noncontrolling Interests and Shareholders' Equity
Liabilities
Reserve for claims and claim expenses	$	1,552,618	$	1,532,883	$	1,563,730	$	1,683,709	$	1,710,408
Unearned premiums	929,523		783,321		477,888		754,077		970,017
Debt	249,476		249,453		249,430		249,407		249,385
Reinsurance balances payable	558,185		468,644		293,022		358,988		387,425
Payable for investments purchased	201,340		179,519		193,221		407,788		463,923
Other liabilities	164,650		200,626		397,596		183,362		169,559
Liabilities of discontinued operations held for sale	—		—		—		56,275		47,553
Total liabilities	3,655,792		3,414,446		3,174,887		3,693,606		3,998,270
Redeemable noncontrolling interest	1,023,892		986,981		1,099,860		945,915		897,123
Shareholders' Equity
Preference shares	400,000		400,000		400,000		400,000		400,000
Common shares	40,523		40,856		43,646		44,391		44,385
Accumulated other comprehensive income	3,918		3,963		4,131		4,566		4,909
Retained earnings	3,391,500		3,317,459		3,456,607		3,261,757		3,119,003
Total shareholders' equity attributable to RenaissanceRe	3,835,941		3,762,278		3,904,384		3,710,714		3,568,297
Noncontrolling interest	—		—		—		3,720		3,693
Total shareholders' equity	3,835,941		3,762,278		3,904,384		3,714,434		3,571,990
Total liabilities, noncontrolling interests and shareholders' equity	$	8,515,625	$	8,163,705	$	8,179,131	$	8,353,955	$	8,467,383

Book value per common share	$	84.79	$	82.30	$	80.29	$	74.58	$	71.38



	10



RenaissanceRe Holdings Ltd.
Investment Portfolio - Composition

	June 30, 2014					March 31, 2014					December 31, 2013					September 30, 2013					June 30, 2013
TYPE OF INVESTMENT
U.S. treasuries	$	1,706,929		25.5	%	$	1,539,995		23.6	%	$	1,352,413		19.8	%	$	1,322,367		20.5	%	$	1,195,182		19.4	%
Agencies	121,650			1.8	%	134,461			2.1	%	186,050			2.7	%	197,047			3.1	%	227,017			3.7	%
Non-U.S. government (Sovereign debt)	271,495			4.0	%	298,080			4.6	%	334,580			4.9	%	353,810			5.5	%	265,033			4.3	%
Non-U.S. government-backed corporate	163,911			2.4	%	220,727			3.4	%	237,479			3.5	%	229,687			3.6	%	238,254			3.9	%
Corporate	1,580,038			23.6	%	1,495,481			22.9	%	1,803,415			26.4	%	1,687,118			26.2	%	1,500,576			24.3	%
Agency mortgage-backed	326,304			4.9	%	300,448			4.6	%	341,908			5.0	%	436,024			6.8	%	435,233			7.1	%
Non-agency mortgage-backed	265,340			3.9	%	265,372			4.0	%	257,938			3.8	%	246,163			3.8	%	233,468			3.8	%
Commercial mortgage-backed	400,288			6.0	%	344,590			5.3	%	314,236			4.6	%	302,803			4.7	%	298,996			4.8	%
Asset-backed	34,873			0.5	%	18,463			0.3	%	15,258			0.2	%	14,748			0.3	%	13,106			0.2	%
Total fixed maturity investments, at fair value	4,870,828			72.6	%	4,617,617			70.8	%	4,843,277			70.9	%	4,789,767			74.5	%	4,406,865			71.5	%
Short term investments, at fair value	957,698			14.3	%	977,778			15.0	%	1,044,779			15.3	%	925,329			14.4	%	924,843			15.0	%
Equity investments trading, at fair value	254,408			3.8	%	245,267			3.8	%	254,776			3.7	%	113,986			1.8	%	108,620			1.8	%
Other investments, at fair value	513,614			7.6	%	576,099			8.8	%	573,264			8.5	%	500,770			7.8	%	629,396			10.2	%
Total managed investment portfolio	6,596,548			98.3	%	6,416,761			98.4	%	6,716,096			98.5	%	6,329,852			98.5	%	6,069,724			98.5	%
Investments in other ventures, under equity method	110,354			1.7	%	106,332			1.6	%	105,616			1.6	%	97,660			1.5	%	93,049			1.5	%
Total investments	$	6,706,902		100.0	%	$	6,523,093		100.0	%	$	6,821,712		100.0	%	$	6,427,512		100.0	%	$	6,162,773		100.0	%
CREDIT QUALITY OF FIXED MATURITY INVESTMENTS
AAA	$	608,811		12.5	%	$	643,735		14.0	%	$	638,049		13.2	%	$	648,065		13.5	%	$	616,559		14.0	%
AA	2,573,467			52.8	%	2,370,814			51.3	%	2,414,857			49.8	%	2,463,789			51.4	%	2,308,313			52.4	%
A	705,334			14.5	%	646,095			14.0	%	836,425			17.3	%	778,552			16.3	%	732,659			16.6	%
BBB	401,664			8.2	%	367,622			8.0	%	383,508			7.9	%	330,481			6.9	%	296,386			6.7	%
Non-investment grade and not rated	581,552			12.0	%	589,351			12.7	%	570,438			11.8	%	568,880			11.9	%	452,948			10.3	%
Total fixed maturity investments, at fair value	$	4,870,828		100.0	%	$	4,617,617		100.0	%	$	4,843,277		100.0	%	$	4,789,767		100.0	%	$	4,406,865		100.0	%
MATURITY PROFILE OF FIXED MATURITY INVESTMENTS
Due in less than one year	$	100,765		2.1	%	$	119,599		2.6	%	$	160,760		3.3	%	$	166,583		3.5	%	$	200,706		4.6	%
Due after one through five years	3,080,879			63.2	%	2,963,494			64.2	%	3,118,799			64.4	%	2,877,644			60.1	%	2,578,703			58.5	%
Due after five through ten years	529,811			10.9	%	504,919			10.9	%	551,007			11.4	%	630,582			13.2	%	530,724			12.0	%
Due after ten years	132,568			2.7	%	100,732			2.2	%	83,371			1.7	%	115,220			2.4	%	115,929			2.6	%
Mortgage-backed securities	991,932			20.4	%	910,410			19.7	%	914,082			18.9	%	984,990			20.5	%	967,697			22.0	%
Asset-backed securities	34,873			0.7	%	18,463			0.4	%	15,258			0.3	%	14,748			0.3	%	13,106			0.3	%
Total fixed maturity investments, at fair value	$	4,870,828		100.0	%	$	4,617,617		100.0	%	$	4,843,277		100.0	%	$	4,789,767		100.0	%	$	4,406,865		100.0	%

Weighted average effective yield of fixed maturity and short term investments	1.5		%			1.6		%			1.7		%			1.7		%			1.8		%
Average duration of fixed maturities and short term investments	2.2					2.2					2.1					2.1					2.4



	11



RenaissanceRe Holdings Ltd.
Summary of Other Investments

	June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013
TYPE OF INVESTMENT
Private equity partnerships	$	314,983		$	325,711		$	322,391		$	327,245		$	335,732
Catastrophe bonds	179,465			233,321			229,016			102,141			81,042
Senior secured bank loan funds	15,976			13,656			18,048			19,395			178,040
Hedge funds	3,190			3,411			3,809			4,022			4,683
Miscellaneous other investments	—			—			—			47,967			29,899
Total other investments, at fair value	$	513,614		$	576,099		$	573,264		$	500,770		$	629,396

TYPE OF INVESTMENT
Private equity partnerships	61.4		%	56.5		%	56.2		%	65.3		%	53.3		%
Catastrophe bonds	34.9		%	40.5		%	40.0		%	20.4		%	12.9		%
Senior secured bank loan funds	3.1		%	2.4		%	3.1		%	3.9		%	28.3		%
Hedge funds	0.6		%	0.6		%	0.7		%	0.8		%	0.7		%
Miscellaneous other investments	—		%	—		%	—		%	9.6		%	4.8		%
Total other investments, at fair value	100.0		%	100.0		%	100.0		%	100.0		%	100.0		%



	12



RenaissanceRe Holdings Ltd.
Total Investment Result

	Three months ended															Six months ended
	June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013			June 30, 2014			June 30, 2013
Fixed maturity investments	$	26,372		$	23,860		$	24,759		$	24,423		$	22,839		$	50,232		$	46,725
Short term investments	286			190			380			563			426			476			755
Equity investments trading	779			796			1,245			706			344			1,575			344
Other investments
Hedge funds and private equity investments	8,340			12,317			14,514			14,179			2,237			20,657			17,117
Other	1,483			4,528			40,818			22,735			3,144			6,011			10,139
Cash and cash equivalents	93			91			83			47			9			184			61
	37,353			41,782			81,799			62,653			28,999			79,135			75,141
Investment expenses	(2,812		)	(2,834		)	(3,067		)	(2,722		)	(2,836		)	(5,646		)	(5,776		)
Net investment income	34,541			38,948			78,732			59,931			26,163			73,489			69,365

Gross realized gains	12,166			13,467			12,055			8,813			17,548			25,633			51,624
Gross realized losses	(2,587		)	(5,564		)	(8,810		)	(22,241		)	(14,601		)	(8,151		)	(19,155		)
Net realized gains (losses) on fixed maturity investments	9,579			7,903			3,245			(13,428		)	2,947			17,482			32,469
Net unrealized gains (losses) on fixed maturity investments trading	29,918			27,882			(2,489		)	33,405			(95,680		)	57,800			(118,743		)
Net realized and unrealized (losses) gains on investments-related derivatives	(6,884		)	(10,899		)	6,570			3,557			20,510			(17,783		)	20,931
Net realized gains (losses) on equity investments trading	5,134			(79		)	8,455			560			74			5,055			17,635
Net unrealized (losses) gains on equity investments trading	(10,619		)	(9,880		)	46,083			4,378			2,620			(20,499		)	(7,552		)
Net realized and unrealized gains (losses) on investments	27,128			14,927			61,864			28,472			(69,529		)	42,055			(55,260		)
Change in net unrealized gains on fixed maturity investments available for sale	(96		)	(165		)	(471		)	(252		)	(1,239		)	(261		)	(7,306		)
Total investment result	$	61,573		$	53,710		$	140,125		$	88,151		$	(44,605	)	$	115,283		$	6,799

Total investment return - annualized	3.7		%	3.2		%	8.6		%	5.7		%	(2.8		)%	3.4		%	0.2		%



	13



RenaissanceRe Holdings Ltd.
Investment Portfolio - Effective Yield and Credit Rating
										Credit Rating (1)
June 30, 2014	Amortized Cost		Fair Value			% of Total Investment Portfolio		Weighted Average Effective Yield		AAA			AA			A			BBB			Non- Investment Grade			Not Rated
Short term investments	$	957,698	$	957,698		14.3	%	0.1	%	$	937,692		$	19,429		$	231		$	—		$	346		$	—
			100.0		%					97.9		%	2.1		%	—		%	—		%	—		%	—		%
Fixed maturity investments
U.S. treasuries	1,704,381		1,706,929			25.5	%	0.9	%	—			1,706,929			—			—			—			—
Agencies
Fannie Mae & Freddie Mac	100,818		100,807			1.5	%	1.4	%	—			100,807			—			—			—			—
Other agencies	20,800		20,843			0.3	%	1.5	%	—			20,843			—			—			—			—
Total agencies	121,618		121,650			1.8	%	1.4	%	—			121,650			—			—			—			—
Non-U.S. government (Sovereign debt)	267,499		271,495			4.0	%	1.2	%	170,258			70,509			11,796			18,697			235			—
Non-U.S. government-backed corporate	158,417		163,911			2.4	%	1.3	%	113,810			42,173			6,300			1,029			599			—
Corporate	1,528,264		1,580,038			23.6	%	2.7	%	22,091			179,397			635,029			348,930			351,866			42,725
Mortgage-backed
Residential mortgage-backed
Agency securities	325,367		326,304			4.9	%	2.2	%	—			326,304			—			—			—			—
Non-agency securities - Alt A	137,493		149,537			2.2	%	4.0	%	5,783			6,127			23,120			11,749			85,689			17,069
Non-agency securities - Prime	108,839		115,803			1.7	%	3.2	%	10,054			5,206			7,174			10,000			75,501			7,868
Total residential mortgage-backed	571,699		591,644			8.8	%	2.8	%	15,837			337,637			30,294			21,749			161,190			24,937
Commercial mortgage-backed	393,719		400,288			6.0	%	2.0	%	254,123			114,446			20,460			11,259			—			—
Total mortgage-backed	965,418		991,932			14.8	%	2.5	%	269,960			452,083			50,754			33,008			161,190			24,937
Asset-backed
Student loans	12,865		12,934			0.2	%	0.7	%	12,208			726			—			—			—			—
Auto loans	9,764		9,827			0.1	%	0.9	%	9,827			—			—			—			—			—
Credit cards	4,760		4,926			0.1	%	2.1	%	4,926			—			—			—			—			—
Other	7,006		7,186			0.1	%	2.5	%	5,731			—			1,455			—			—			—
Total asset-backed	34,395		34,873			0.5	%	1.3	%	32,692			726			1,455			—			—			—
Total securitized assets	999,813		1,026,805			15.3	%	2.5	%	302,652			452,809			52,209			33,008			161,190			24,937
Total fixed maturity investments	4,779,992		4,870,828			72.6	%	1.8	%	608,811			2,573,467			705,334			401,664			513,890			67,662
			100.0		%					12.5		%	52.8		%	14.5		%	8.2		%	10.6		%	1.4		%
Equity investments trading			254,408			3.8	%			—			—			—			—			—			254,408
			100.0		%					—		%	—		%	—		%	—		%	—		%	100.0		%
Other investments
Private equity partnerships			314,983			4.7	%			—			—			—			—			—			314,983
Catastrophe bonds			179,465			2.7	%			—			—			—			—			179,465			—
Senior secured bank loan funds			15,976			0.2	%			—			—			—			—			—			15,976
Hedge funds			3,190			—	%			—			—			—			—			—			3,190
Total other investments			513,614			7.6	%			—			—			—			—			179,465			334,149
			100.0		%					—		%	—		%	—		%	—		%	34.9		%	65.1		%
Investments in other ventures			110,354			1.7	%			—			—			—			—			—			110,354
			100.0		%					—		%	—		%	—		%	—		%	—		%	100.0		%
Total investment portfolio			$	6,706,902		100.0	%			$	1,546,503		$	2,592,896		$	705,565		$	401,664		$	693,701		$	766,573
			100.0		%					23.1		%	38.7		%	10.5		%	6.0		%	10.3		%	11.4		%

(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.



	14



RenaissanceRe Holdings Ltd.
Investment Portfolio - Change in Portfolio Composition

	June 30, 2014				December 31, 2013				Change
	Fair Value		% of Total Managed Investment Portfolio		Fair Value		% of Total Managed Investment Portfolio		$			%
Short term investments	$	957,698	14.3	%	$	1,044,779	15.3	%	$	(87,081	)	(1.0	)%
Fixed maturity investments
U.S. treasuries	1,706,929		25.5	%	1,352,413		19.8	%	354,516			5.7	%
Agencies
Fannie Mae & Freddie Mac	100,807		1.5	%	182,738		2.7	%	(81,931		)	(1.2	)%
Other agencies	20,843		0.3	%	3,312		—	%	17,531			0.3	%
Total agencies	121,650		1.8	%	186,050		2.7	%	(64,400		)	(0.9	)%
Non-U.S. government (Sovereign debt)	271,495		4.0	%	334,580		4.9	%	(63,085		)	(0.9	)%
Non-U.S. government-backed corporate	163,911		2.4	%	237,479		3.5	%	(73,568		)	(1.1	)%
Corporate	1,580,038		23.6	%	1,803,415		26.4	%	(223,377		)	(2.8	)%
Mortgage-backed
Residential mortgage-backed
Agency securities	326,304		4.9	%	341,908		5.0	%	(15,604		)	(0.1	)%
Non-agency securities - Alt A	149,537		2.2	%	136,734		2.0	%	12,803			0.2	%
Non-agency securities - Prime	115,803		1.7	%	121,204		1.8	%	(5,401		)	(0.1	)%
Total residential mortgage-backed	591,644		8.8	%	599,846		8.8	%	(8,202		)	—	%
Commercial mortgage-backed	400,288		6.0	%	314,236		4.6	%	86,052			1.4	%
Total mortgage-backed	991,932		14.8	%	914,082		13.4	%	77,850			1.4	%
Asset-backed
Student loans	12,934		0.2	%	2,947		—	%	9,987			0.2	%
Auto loans	9,827		0.1	%	3,109		—	%	6,718			0.1	%
Credit cards	4,926		0.1	%	4,385		0.1	%	541			—	%
Other	7,186		0.1	%	4,817		0.1	%	2,369			—	%
Total asset-backed	34,873		0.5	%	15,258		0.2	%	19,615			0.3	%
Total securitized assets	1,026,805		15.3	%	929,340		13.6	%	97,465			1.7	%
Total fixed maturity investments	4,870,828		72.6	%	4,843,277		70.9	%	27,551			1.7	%
Equity investments trading	254,408		3.8	%	254,776		3.7	%	(368		)	0.1	%
Other investments
Private equity partnerships	314,983		4.7	%	322,391		4.7	%	(7,408		)	—	%
Catastrophe bonds	179,465		2.7	%	229,016		3.4	%	(49,551		)	(0.7	)%
Senior secured bank loan funds	15,976		0.2	%	18,048		0.3	%	(2,072		)	(0.1	)%
Hedge funds	3,190		—	%	3,809		0.1	%	(619		)	(0.1	)%
Total other investments	513,614		7.6	%	573,264		8.5	%	(59,650		)	(0.9	)%
Investments in other ventures	110,354		1.7	%	105,616		1.5	%	4,738			0.2	%
Total managed investment portfolio	$	6,706,902	100.0	%	$	6,821,712	100.0	%	$	(114,810	)



	15



RenaissanceRe Holdings Ltd.
Fixed Maturity Investments - Corporate Sector

	June 30, 2014
Sector	Total		AAA		AA		A		BBB		Non-Investment Grade		Not Rated
Financials	$	666,034	$	19,163	$	99,866	$	396,754	$	89,451	$	24,482	$	36,318
Industrial, utilities and energy	372,632		2,060		29,739		125,643		123,626		90,030		1,534
Communications and technology	217,085		—		14,195		51,552		57,043		91,622		2,673
Consumer	162,824		—		5,818		23,012		33,400		99,084		1,510
Health care	91,476		—		23,669		22,753		19,234		25,820		—
Basic materials	57,206		—		—		10,704		26,176		19,636		690
Other	12,781		868		6,110		4,611		—		1,192		—
Total corporate fixed maturity investments, at fair value (1)	$	1,580,038	$	22,091	$	179,397	$	635,029	$	348,930	$	351,866	$	42,725

Fixed Maturity and Short Term Investments - Corporate Top 10 Issuers by Fair Value

	June 30, 2014
Issuer	Total		Short term investments		Fixed maturity investments
Bank of America Corp.	$	55,983	$	—	$	55,983
Goldman Sachs Group Inc.	50,671		—		50,671
JP Morgan Chase & Co.	45,165		—		45,165
Morgan Stanley	32,188		—		32,188
Citigroup Inc.	29,145		—		29,145
General Electric Company	28,378		—		28,378
HSBC Holdings PLC	25,121		—		25,121
Ford Motor Co.	21,689		—		21,689
Wells Fargo & Co.	18,069		—		18,069
Verizon Communications Inc.	17,818		—		17,818
Total (2)	$	324,227	$	—	$	324,227


(1)	Excludes non-U.S. government-backed corporate fixed maturity investments, at fair value.


(2)	Excludes non-U.S. government-backed corporate fixed maturity investments, reverse repurchase agreements and commercial paper, at fair value.



	16



RenaissanceRe Holdings Ltd.
Reserves for Claims and Claim Expenses

	Case Reserves		Additional Case Reserves		IBNR		Total
June 30, 2014
Catastrophe Reinsurance	$	327,537	$	201,716	$	191,059	$	720,312
Specialty Reinsurance	100,033		89,949		340,106		530,088
Lloyd's	48,242		19,763		184,120		252,125
Other	9,505		2,323		38,265		50,093
Total	$	485,317	$	313,751	$	753,550	$	1,552,618

March 31, 2014
Catastrophe Reinsurance	$	350,606	$	183,216	$	184,685	$	718,507
Specialty Reinsurance	111,914		85,568		325,468		522,950
Lloyd's	47,137		17,560		171,492		236,189
Other	14,358		2,324		38,555		55,237
Total	$	524,015	$	288,668	$	720,200	$	1,532,883

December 31, 2013
Catastrophe Reinsurance	$	430,166	$	177,518	$	173,303	$	780,987
Specialty Reinsurance	113,188		81,251		311,829		506,268
Lloyd's	45,355		14,265		158,747		218,367
Other	14,915		2,324		40,869		58,108
Total	$	603,624	$	275,358	$	684,748	$	1,563,730

September 30, 2013
Catastrophe Reinsurance	$	465,221	$	247,282	$	211,040	$	923,543
Specialty Reinsurance	112,003		82,795		306,792		501,590
Lloyd's	39,316		11,518		148,149		198,983
Other	17,846		2,214		39,533		59,593
Total	$	634,386	$	343,809	$	705,514	$	1,683,709

June 30, 2013
Catastrophe Reinsurance	$	502,756	$	264,712	$	214,308	$	981,776
Specialty Reinsurance	105,868		89,695		295,221		490,784
Lloyd's	31,984		13,476		134,782		180,242
Other	15,103		2,642		39,861		57,606
Total	$	655,711	$	370,525	$	684,172	$	1,710,408



	17



RenaissanceRe Holdings Ltd.
Paid to Incurred Analysis

	Three months ended June 30, 2014								Three months ended June 30, 2013
	Gross			Recoveries		Net			Gross			Recoveries			Net
Reserve for losses and loss expenses, beginning of period	$	1,532,883		$	98,962	$	1,433,921		$	1,755,783		$	162,948		$	1,592,835
Incurred losses and loss expenses
Current year	113,964			15,493		98,471			146,544			15,755			130,789
Prior years	(16,900		)	183		(17,083		)	(29,549		)	(2,722		)	(26,827		)
Total incurred losses and loss expenses	97,064			15,676		81,388			116,995			13,033			103,962
Paid losses and loss expenses
Current year	725			12		713			21,990			—			21,990
Prior years	76,604			29,511		47,093			140,380			878			139,502
Total paid losses and loss expenses	77,329			29,523		47,806			162,370			878			161,492
Reserve for losses and loss expenses, end of period	$	1,552,618		$	85,115	$	1,467,503		$	1,710,408		$	175,103		$	1,535,305

	Six months ended June 30, 2014								Six months ended June 30, 2013
	Gross			Recoveries		Net			Gross			Recoveries			Net
Reserve for losses and loss expenses, beginning of period	$	1,563,730		$	101,025	$	1,462,705		$	1,879,377		$	192,512		$	1,686,865
Incurred losses and loss expenses
Current year	193,890			19,811		174,079			216,538			20,849			195,689
Prior years	(28,676		)	5,100		(33,776		)	(65,545		)	(1,069		)	(64,476		)
Total incurred losses and loss expenses	165,214			24,911		140,303			150,993			19,780			131,213
Paid losses and loss expenses
Current year	1,777			12		1,765			23,129			—			23,129
Prior years	174,549			40,809		133,740			296,833			37,189			259,644
Total paid losses and loss expenses	176,326			40,821		135,505			319,962			37,189			282,773
Reserve for losses and loss expenses, end of period	$	1,552,618		$	85,115	$	1,467,503		$	1,710,408		$	175,103		$	1,535,305



	18



RenaissanceRe Holdings Ltd.
Earnings per Share

	Three months ended
(common shares in thousands)	June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013
Numerator:
Net income available to RenaissanceRe common shareholders	$	120,752		$	151,003		$	268,656		$	179,740		$	26,806
Amount allocated to participating common shareholders (1)	(1,557		)	(2,031		)	(3,709		)	(2,539		)	(376		)
	$	119,195		$	148,972		$	264,947		$	177,201		$	26,430
Denominator:
Denominator for basic income per RenaissanceRe common share -
Weighted average common shares	39,736			41,238			43,160			43,330			43,372
Per common share equivalents of employee stock options and restricted shares	659			665			609			805			871
Denominator for diluted income per RenaissanceRe common share -
Adjusted weighted average common shares and assumed conversions	40,395			41,903			43,769			44,135			44,243

Basic income per RenaissanceRe common share	$	3.00		$	3.61		$	6.14		$	4.09		$	0.61
Diluted income per RenaissanceRe common share	$	2.95		$	3.56		$	6.05		$	4.01		$	0.60

	Six months ended
(common shares in thousands)	June 30, 2014			June 30, 2013
Numerator:
Net income available to RenaissanceRe common shareholders	$	271,755		$	217,280
Amount allocated to participating common shareholders (1)	(3,577		)	(3,174		)
	$	268,178		$	214,106
Denominator:
Denominator for basic income per RenaissanceRe common share -
Weighted average common shares	40,487			43,453
Per common share equivalents of employee stock options and restricted shares	662			850
Denominator for diluted income per RenaissanceRe common share -
Adjusted weighted average common shares and assumed conversions	41,149			44,303

Basic income per RenaissanceRe common share	$	6.62		$	4.93
Diluted income per RenaissanceRe common share (2)	$	6.52		$	4.83


(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.



	19



RenaissanceRe Holdings Ltd.
Equity in Earnings of Other Ventures

	Three months ended
	June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013
Tower Hill Companies	$	5,202		$	1,986		$	2,989		$	3,885		$	1,815
Top Layer Re	2,494			2,445			3,374			3,608			2,728
Other	(464		)	(232		)	(89		)	(180		)	(771		)
Total equity in earnings of other ventures	$	7,232		$	4,199		$	6,274		$	7,313		$	3,772

	Six months ended
	June 30, 2014			June 30, 2013
Tower Hill Companies	$	7,188		$	3,396
Top Layer Re	4,939			6,854
Other	(696		)	(643		)
Total equity in earnings of other ventures	$	11,431		$	9,607

Other (Loss) Income

	Three months ended
	June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013
Assumed and ceded reinsurance contracts accounted for at fair value or as deposits	$	17		$	21		$	26		$	30		$	(642	)
Other items	(552		)	41			(199		)	621			(486		)
Total other (loss) income	$	(535	)	$	62		$	(173	)	$	651		$	(1,128	)

	Six months ended
	June 30, 2014			June 30, 2013
Assumed and ceded reinsurance contracts accounted for at fair value or as deposits	$	38		$	(2,573	)
Other items	(511		)	(264		)
Total other loss	$	(473	)	$	(2,837	)



	20



RenaissanceRe Holdings Ltd.
Ratings

	A.M. Best	S&P	Moody's	Fitch

Renaissance Reinsurance (1)	A+	AA-	A1	A+
DaVinci (1)	A	AA-	A3	—
RenaissanceRe Specialty Risks (1)	A	A+	—	—
RenaissanceRe Specialty U.S. (1)	A	—	—	—
Renaissance Reinsurance of Europe (1)	A+	AA-	—	—
Top Layer Re (1)	A+	AA	—	—

Syndicate 1458	—	—	—	—
Lloyd's Overall Market Rating (2)	A	A+	—	AA-

RenaissanceRe (3)	—	Very Strong	—	—

(1) The A.M. Best, S&P, Moody's and Fitch ratings for these companies reflect the insurer's financial strength rating and in addition to the insurer's financial strength rating, the S&P ratings reflect the insurer's issuer credit 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.



	21

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 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															Six months ended
	June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013			June 30, 2014			June 30, 2013
Net income available to RenaissanceRe common shareholders	$	120,752		$	151,003		$	268,656		$	179,740		$	26,806		$	271,755		$	217,280
Adjustment for net realized and unrealized (gains) losses on investments from continuing operations	(27,128		)	(14,927		)	(61,864		)	(28,472		)	69,529			(42,055		)	55,260
Adjustment for net realized and unrealized losses on investments from discontinued operations	—			—			—			5			15			—			13
Operating income available to RenaissanceRe common shareholders	$	93,624		$	136,076		$	206,792		$	151,273		$	96,350		$	229,700		$	272,553

Net income available to RenaissanceRe common shareholders per common share - diluted	$	2.95		$	3.56		$	6.05		$	4.01		$	0.60		$	6.52		$	4.83
Adjustment for net realized and unrealized (gains) losses on investments from continuing operations	(0.67		)	(0.36		)	(1.41		)	(0.65		)	1.57			(1.02		)	1.25
Adjustment for net realized and unrealized losses on investments from discontinued operations	—			—			—			—			—			—			—
Operating income available to RenaissanceRe common shareholders per common share - diluted	$	2.28		$	3.20		$	4.64		$	3.36		$	2.17		$	5.50		$	6.08

Return on average common equity - annualized	14.2		%	17.6		%	31.5		%	22.2		%	3.4		%	15.8		%	13.8		%
Adjustment for net realized and unrealized (gains) losses on investments from continuing operations	(3.2		)%	(1.7		)%	(7.3		)%	(3.5		)%	8.8		%	(2.4		)%	3.5		%
Adjustment for net realized and unrealized losses on investments from discontinued operations	—		%	—		%	—		%	—		%	—		%	—		%	—		%
Operating return on average common equity - annualized	11.0		%	15.9		%	24.3		%	18.7		%	12.2		%	13.4		%	17.3		%



	22

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 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 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 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
	June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013
Book value per common share	$	84.79		$	82.30		$	80.29		$	74.58		$	71.38
Adjustment for goodwill and other intangibles (1)	(0.86		)	(0.89		)	(0.85		)	(0.84		)	(0.85		)
Tangible book value per common share	83.93			81.41			79.44			73.74			70.53
Adjustment for accumulated dividends	13.70			13.41			13.12			12.84			12.56
Tangible book value per common share plus accumulated dividends	$	97.63		$	94.82		$	92.56		$	86.58		$	83.09

Quarterly change in book value per common share	3.0		%	2.5		%	7.7		%	4.5		%	0.4		%
Quarterly change in tangible book value per common share plus change in accumulated dividends	3.5		%	2.8		%	8.1		%	4.9		%	0.8		%
Annual change in book value per common share	5.6		%										4.8		%
Annual change in tangible book value per common share plus change in accumulated dividends	6.4		%										5.7		%


(1)	At June 30, 2014, March 31, 2014, December 31, 2013, September 30, 2013 and June 30, 2013, goodwill and other intangibles included $27.0 million, $28.3 million, $29.2 million, $28.5 million and $29.3 million, respectively, of goodwill and other intangibles included in investments in other ventures, under equity method.



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RENAISSANCERE HOLDINGS LTD - FORM 8-K - EX-99.2 - COPY OF THE COMPANY'S FINANCIAL SUPPLEMENT - July 29, 2014

Attached files

RENAISSANCERE HOLDINGS LTD Reports