RenRe rides rate hikes and retro cuts to 55% gain in property cat
RenaissanceRe rode rate increases and reduced retro to a 55% or $273 million increase in net written premiums in property catastrophe during the second quarter, the group's preliminary earnings statement showed.
The gain came part and parcel of a $256.7 million, or 28.9%, overall increase in property segment net written premiums.
Other property classes shrank fractionally, RenaissanceRe said, citing "nonrenewal of certain catastrophe exposed quota share programmes that did not meet the Company’s return hurdles."
A bump in Q2 losses kept that revenue gain from fully trickling through to profits. Large loss events added 11.5 points to the current year loss and claims expense ratio, partially offset by lower current year attritional and net favourable prior period development.
Underwriting income in the segment rose a mere 6.3% following a 5.4 percentage point rise in the combined ratio, a still healthy 63%.
Growth in the slightly smaller casualty and specialty segment proved slower: 0.2% year on year at the level of gross written premiums and 7.7% at the level of net premiums written.
Management called the stall in gross premiums "proactive cycle management" with growth in some specialty class of business largely offset by a decrease in professional liability. Net written premiums only managed growth on reduced cessions.
With net investment income nearly tripling to $292.7 million, with $174.9 million in earnings from non-controlling interests in its ILS vehicles and a big boost in ILS fee income, the group bottom line s$191.0 million in net profits for Q2 2023.
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