RenRe profit rises to $575.8m

  • RenRe CEO Kevin O'Donnell

A strong second quarter performance by RenaissanceRe Holdings Ltd helped the reinsurer increase its net income to $575.8 million, or $12.63 per common share, compared to $367.9 million for the same period in 2019.

It also raised more than $1 billion in capital through the issuing of more than six million additional shares.

The Bermudian-based company said the raised capital will be used for general corporate purposes “which may include expanding existing business lines, entering new business lines, forming new joint ventures, or acquiring books of business from other companies”.

Kevin O’Donnell, president and chief executive officer of RenaissanceRe, said: “We demonstrated market leadership in both our property and casualty and specialty segments, constructing a larger and more efficient portfolio through disciplined and focused underwriting.

“While Covid-19 continues to present unprecedented economic and societal challenges, we feel confident with our portfolio and raised over $1 billion of new common equity in anticipation of future opportunities that we believe will deliver long-term value for our shareholders.”

RenRe’s operating income was $190.1 million, or $4.06 per share, compared to $198.8 million, or $4.47 per share, in the second quarter last year.

Book value per common share increased $17.12, or 14.6 per cent, to $134.27 in the second quarter.

The reinsurer’s gross premiums written increased by $225 million, or 15.2 per cent, to $1.7 billion. Its combined ratio improved to 78.5 per cent, from 81.3 per cent a year ago.