Bermuda-based reinsurer RenaissanceRe Holdings Ltd. (RenRe) has announced a combined ratio (CR) of 80.3% for Q2 2023, with underwriting income of $352 million, a slight improvement on the $316 million reported a year earlier.
Compared year-over-year, the CR increased slightly from 78.3% in Q2 2022, as an improvement in the casualty & specialty segment CR to 93.2% was more than offset by a deterioration in the property combined ratio to 63% from 57.6%.
Nevertheless, the underwriting result across the company improved by roughly $36 million year-on-year.
Group-wide, gross premiums written (GPW) increased from $2.5 billion to roughly $2.7 billion, as net premiums written (NPW) rose from $1.9 billion to $2.2 billion in Q2 2023.
On the asset side of the balance sheet, the total investment result improved by a significant $616.8 million to almost $70 million, compared with an investment loss of $547 million in Q2 2022.
As a result of the improved investment performance and still robust underwriting result, RenRe has reported net income of $191 million for Q2 2023, compared with a net loss of $325 million a year earlier.
In the property segment, the company saw a rise in GPW for Q2 by $184.3 million, or 15.1% to $1.4 billion. This was driven by the $198.5 million increase in the catastrophe class of business on the back of rate improvements. The property segment’s underwriting result improved from $264 million to $281 million.
In the casualty and specialty part of the business, GPW rose by just 0.2% to $1.25 billion, reflecting proactive cycle management. The segment’s underwriting result increased from $52 million to $70 million.
Across the group, RenRe recorded a $44.6 million net negative impact on net income from large losses, or a 4.2 percentage point impact on the combined ratio. Events included the earthquakes in Turkey and Syria, Cyclone Gabrielle and flooding in New Zealand, and numerous wind events in the U.S.
Kevin J. O’Donnell, President and Chief Executive Officer, said, “RenaissanceRe delivered a strong quarter, distinguished by a 28.8% operating return on average common equity with robust underwriting income and record fee and net investment income. In addition, we accelerated our strategy by agreeing to purchase Validus Re, which brings us a large, diversified business in a favorable reinsurance market. In aggregate, our accomplishments this quarter demonstrate the effectiveness of our strategy and strengthen our foundation for delivery of shareholder value.”