RenaissanceRe posts $161 million loss
RenaissanceRe reported a third-quarter net loss attributable to common shareholders of $161.4 million, compared with a $907.7 million profit a year earlier, as investment losses outweighed underwriting earnings.
The Bermuda-based reinsurer recorded $879.8 million in net realized and unrealized investment losses, primarily driven by losses on fixed maturity-related investments as market yields increased.
Operating income available to common shareholders, a non-GAAP measure, declined to $512.6 million from $733.7 million, generating an annualized operating return on average common equity of 18.9%.
Gross premiums written fell 9.5% to $2.10 billion, while net premiums written declined 19.1% to $1.67 billion. Underwriting income fell to $426.1 million from $770.2 million, and the combined ratio increased to 79.7% from 68.4%.
The property segment generated $560.6 million in underwriting income, with a 32.4% combined ratio, supported by $265 million in favorable prior-year reserve development. Gross premiums written declined 14.3% to $628.8 million, reflecting rate reductions across catastrophe and other property business.
The casualty and specialty segment posted a $134.5 million underwriting loss, compared with a $21.3 million loss a year earlier. Its combined ratio increased to 110.6% from 101.4%. Large loss events added 10.5 percentage points to the ratio, primarily reflecting the Middle East war and an operational explosion at a liquefied natural gas facility in Ras Laffan, Qatar.
Across both segments, those events and an earthquake in Colombia reduced underwriting results by $191.4 million and earnings attributable to common shareholders by $111.5 million.
Fee income declined to $81.7 million from $101.8 million, while net investment income edged up to $440.9 million from $438.4 million.
RenaissanceRe repurchased $310.1 million of common shares during the quarter and another $143.8 million through October 23. Book value per common share ended September at $259.61, down 1.9% during the quarter.
