Bermudian RenaissanceRe Holdings Ltd. (RenRe) has reported underwriting income of $541 million with a combined ratio of 77.9% in its first quarter 2024 results, as the reinsurer’s premiums swelled as a result of the renewal of business acquired in its takeover of Validus.
RenRe explains that Q1 2024 was the first full quarter that reflected the results of Validus following the completion of the acquisition last year.
Group-wide, RenRe has today reported Q1 2024 gross premiums written (GPW) of almost $4 billion, up 43% on the $2.8 billion seen a year earlier. Net premiums written (NPW) grew from $2.3 billion to $3.2 billion, and net premiums earned increased from $1.7 billion last year to over $2.4 billion in Q1 2024.
Within the firm’s property segment, GPW rose by a significant 44.9% to almost $1.9 billion, driven by a $412.5 million increase in catastrophe, which the firm attributes to “the renewal of business acquired in the Validus Acquisition, in conjunction with the retention of legacy lines, at the January 1, 2024 renewal.”
The firm’s other property book grew by more than $173 million in the quarter, again driven by the Validus acquisition and also organic growth in both cat and non-cat exposed business.
Property NPW increased 37% year-on-year to $1.4 billion, while net premiums earned rose by more than 36% to $936 million.
The property segment’s underwriting result increased from $299 million to over $534 million in Q1 2024, as the combined ratio strengthened by 13.7 percentage points to a very solid 42.9%. This improvement was supported by a 12.6 percentage point improvement in the net claims and claim expense ratio to 26.6%, driven by a lower impact from large loss events in the quarter.
In RenRe’s casualty and specialty segment, the Validus acquisition also had an impact on premiums, with GPW up more than 41% to $2.1 billion, with notable growth of $392.4 million in the other specialty line of business. The segment’s NPW increased by almost 45% to $1.8 billion, as net premiums earned rose more than 51% to $1.5 billion.
While the book has grown, the underwriting result came down from $70.9 million in Q1 2023 to $6.3 million in Q1 2024 with a combined ratio of 99.6%, some 6.7 percentage points higher than the 92.9% reported last year.
The higher combined ratio is a result of a higher net claims and claim expense ratio, which increased by 3.2 percentage points, with the Baltimore Bridge Collapse in the first quarter of 2024 adding 4.2 points.
Despite the dip in underwriting income in the casualty and specialty segment, Group-wide, RenRe has reported underwriting income of $541 million for Q1 2024, which is much improved on the $370 million reported in the prior year quarter.
In terms of fee income, growth was strong at 86.6% to $83.6 million, driven by an increase in management fee income to $56.1 million, and a rise in performance fee income to $28 million.
On the asset side of the balance sheet, RenRe has reported Q1 2024 net investment income of $391 million compared with $254 million a year earlier, although the total investment result came down by $357 million to $177 million as a result of net realized and unrealized losses on investments of $214 million.
All in all, the Bermuda-based reinsurer has achieved net income of $365 million for the first quarter of 2024, compared with $564 million a year earlier.
“We are pleased to deliver another exceptional quarter, characterized by strong profitability, substantial growth and persistent tailwinds behind our Three Drivers of Profit. The successful renewal of the RenaissanceRe and Validus portfolio is deepening our partnerships with our customers while broadening our access to attractive risk. This combined underwriting portfolio, along with growing fee and net investment income, should continue to drive significant value for our shareholders,” said Kevin J. O’Donnell, President and Chief Executive Officer.
