Bermuda-based RenaissanceRe has posted a strong set of second quarter results despite tough market conditions.
Net income hit $120.8 million in the second quarter of 2014, compared with $26.8 million in the second quarter of 2013. Operating income was $93.6 million for the quarter, compared with $96.4 million in the prior year quarter.
RenRe generated underwriting income of $99.7 million and a combined ratio of 61.7 percent in the second quarter of 2014, compared with $113.4 million and 61.2 percent in the second quarter of 2013, respectively.
Gross written premium (GWP) fell 27.3 percent to $511.5 million compared with $703.2 million in the prior year quarter. The reinsurer said the decrease was primarily driven by the company's catastrophe reinsurance segment, where GWP fell $188.8 million, or 32.7 percent, driven by the continued softening of market conditions.
Kevin O'Donnell, chief executive officer, said: "In the second quarter, we generated $120.8 million of net income, an annualised operating ROE of 11 percent and 3.5 percent growth in tangible book value per share, plus accumulated dividends. Our team executed well in tough market conditions and I am pleased with the book of business we constructed.
"We believe that over the long-term the proper assessment of risk and disciplined underwriting will continue to be key differentiators in our industry. Our strategy of matching well-structured risk with efficient capital across cycles has been the basis for our success for over two decades. We intend to continue this strategy going forward, providing customers and capital providers with a suite of innovative and flexible solutions along with industry-leading underwriting expertise and customer service."
RenaissanceRe, Second Quarter 2014 Results, Bermuda, Kevin O'Donnell