Bermuda-based reinsurer RenaissanceRe Holdings Ltd. (RenRe) produced underwriting profit of $588.8 million in the first quarter of 2026, a significant improvement on the prior year’s $770.6 million loss, as gross premiums written (GPW) fell by approximately 17% year-on-year to $3.5 billion.
RenRe has started 2026 strongly with solid contributions from each of its Three Drivers of Profit. The improved Group-wide underwriting result is reflected in a combined ratio of 73% for Q1’26, compared with 128.3% in Q1’25, driven in part by a comparatively lower impact from large losses in the quarter.
Group-wide, net premiums written (NPW) decreased to $2.7 billion from $3.4 billion, while net premiums earned (NPE) decreased to $2.2 billion from $2.7 billion.
Net income for Q1’26 hit $284.6 million, an increase on the prior year’s $161.2 million, as operating income rose to $590.5 million from a loss of $69.8 million last year.
In the reinsurer’s Property segment, GPW fell 20% to $1.7 billion, driven by a 23% decrease in the catastrophe class as Q1’25 included $338.4 million of reinstatement premiums, primarily related to the California wildfires. The GPW dip also includes a decrease of $36.4 million in the other property class, primarily due to rate decreases in catastrophe-exposed business. Property NPW fell by 26% to $1.3 billion in Q1’26, while NPE decreased by 28% to $900.8 million.
During the quarter, RenRe booked net favorable development of $62.6 million in the catastrophe class, and net favorable development of $98.1 million in the other property class.
The Property unit’s underwriting result improved to a profit of $593.9 million in Q1’26, compared with a loss of $607.2 million a year earlier. The combined ratio strengthened by 114.6 pts to 34.1% in Q1’26.
Within the company’s Casualty and Specialty division, GPW decreased 13% year-on-year to $1.8 billion, as NPW fell by 19% to $1.4 billion, and NPE decreased 13% to $1.3 billion. RenRe highlights decreases in general casualty and other specialty classes.
The Casualty and Specialty segment’s underwriting loss narrowed to $5.1 million in Q1’26 compared with $163.4 million in Q1’25, as the combined ratio improved by 10.7 pts to 100.4%.
Alongside the stronger underwriting performance in the quarter, fee income increased by more than $63 million to $94.1 million in Q1’26 from $30.5 million in Q1’25, and included $72.2 million of fee income recorded in net income attributable to redeemable noncontrolling interests.
On the asset side of the balance sheet, net investment income increased 3.7% year-on-year to $420.5 million, although net realized and unrealized losses of $421.9 million, primarily from increased treasury yields and equity losses, resulted in a total investment result of $19.1 million, down on the prior year’s $756.1 million.
During the opening quarter of 2026, RenRe raised third party capital of $61.4 million, including $46 million in Medici and $15.4 million in Medici UCITS.
Kevin J. O’Donnell, President and Chief Executive Officer, commented: “We started the year with a strong quarter, with significant contributions across each of our Three Drivers of Profit. We generated $284.5 million in net income available to common shareholders and $590.5 million in operating income available to common shareholders, and delivered an annualized return on average common equity of 10.5% and annualized operating return on average common equity of 21.8%. This strong performance was anchored by underwriting, where we delivered a low combined ratio of 73.0%, reflecting the strength of our underwriting decisions, deliberate portfolio construction and a disciplined reserving approach.
“We continue to shape the underwriting portfolio to deliver superior returns for our shareholders. In a competitive, but still attractive environment, we successfully deployed additional limit into our highest margin business, property catastrophe.
“Fee and investment income together contributed to a durable and diversified earnings base, with stable management fees, elevated performance fees, and investment income remaining near peak levels. During the quarter, we took advantage of investment market volatility to opportunistically reposition our investment portfolio, reducing our gold position, increasing allocations to investment-grade credit, and extending duration by half a year to further benefit from still attractive interest rate levels.
“We also repurchased $352.5 million of shares during the quarter at an attractive premium to book value, reflecting our confidence in the intrinsic value of the franchise and our commitment to disciplined capital management. Taken together, these results reflect the strength and diversification of our platform and position us to continue compounding book value per common share over the long term.”
