RenaissanceRe has reported that Q1 property catastrophe net premiums written grew by $214.7 million or 35.7%, as net income available to common shareholders increased to $564.1 million.
RenaissanceRe’s gross premiums written stood at $2.79 billion in Q1, while underwriting income jumped to $369,619 million, up from $200,278 million in Q1 of 2022.
The firm’s combined ratio also improved at 78.0%, compared to 86.5% in the same quarter last year.
Operating income available to common shareholders in Q1 of 2023 was $360.0 million.
RenaissanceRe also saw a 46.6% annualized return on average common equity and a 29.7% annualized operating return on average common equity.
The firm reported strong performance across all segments, with a Property combined ratio of 56.6% and a Casualty and Specialty combined ratio of 92.9%.
According to RenaissanceRe, the aforementioned growth in property catastrophe net premiums written was driven by significant rate increases, partially offset by a reduction in net reinstatement premiums of $44.8 million.
Fee income in Q1 of 2023 was $44.8 million, up 58% from Q1 of 2022. Meanwhile, a reported net investment income of $254.4 million marked a 203.9% growth compared to the previous year.
Kevin J. O’Donnell, President and Chief Executive Officer of RenaissanceRe, said, “We began the year with an excellent quarter, reporting an operating return on average common equity of 29.7% driven by strong underwriting results, growing Capital Partners fees, and increased net investment income.
“Looking forward, we expect these Three Drivers of Profit to continue to improve, driven by ongoing strong demand for our products, increased fees from our Capital Partners business and a favorable investment environment.
“We are confident that the attractive reinsurance market will persist, providing us with many opportunities to deploy additional capital as the year progresses.”
