RenRe raises $250m in additional capital, posts 'strong' Q2 results

Bermuda-based RenaissanceRe reduced its corporate expenses and delivered a "strong" set of results in the second quarter of 2020. The company revealed an additional capital raise of over $250 million through its managed joint ventures and third-party capital vehicles.

Net profit for the quarter increased to $575.8 million from $367.9 million in the prior-year quarter. For the first half of 2020, the reinsurer delivered a profit of $493.87 million, down from $641.57 million a year ago.

Gross premiums written in the quarter was $1.7 billion, an increase of $225 million versus the corresponding period for 2019 ($1.47 billion). It was driven by an increase of $203.3 million in the property segment and an increase of $21.6 million in the casualty and specialty segment. For the first half of 2020, RenRe reported gross premiums written of $3.7 billion, compared with $3.04 billion in H1 2019.

The combined ratio improved to 78.5 percent in Q2. In the same period of 2019 its combined ratio was 81.3 percent.

Earlier in June, the reinsurer raised fresh capital by selling its ordinary shares through a public offering. The total net proceeds from the offerings were $1.1 billion, which it plans to use for general corporate purposes, including 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: “I am proud of our team’s performance in the second quarter, where we delivered strong financial results and accomplished several strategic goals. 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.”