istock-493838816-2
iStock/ Oko_SwanOmurphy
30 January 2019News

O’Donnell takes positives as RenRe posts strong growth in 2018 but profits dip

RenaissanceRe’s gross written premiums jumped by nearly 20 percent in 2018 – but its profits dipped mainly on the back of high levels of claims from the record-breaking wildfires in California for a second consecutive year.

The company’s gross written premiums leaped by $512.9 million (18.3 percent) in 2018 to reach $3.3 billion, compared with $2.8 billion in 2017. The bulk of this increase was driven by a $320.5 million rise in property premiums, plus a $192.4 million increase in its casualty and specialty insurance segments.

But its net profit fell to $197.3 million last year compared with $244.8 million in 2017. It attributed this drop to the negative impact of large loss events costing some $86.4 million.

Its combined ratio improved to 87.6 percent in 2018 compared with 137.9 percent the year before. Its underwriting income was $244.9 million last year, a big improvement on the underwriting loss of $651.5 million it posted in 2017.

Kevin O’Donnell, president and chief executive officer of RenaissanceRe, said: “Once again in 2018, we benefited from our industry leading ability to construct efficient portfolios of risk through superior underwriting and the application of our gross-to-net strategy.

“In the quarter, we reported positive operating income, while rapidly paying claims to customers facing significant losses from Category 4 Hurricane Michael and a second consecutive year of record-breaking wildfires in California.

“For the year, we outperformed on multiple metrics, posting a strong operating ROE, delivering robust top line growth, and executing effectively on a number of key initiatives, including the formation of our latest innovative joint venture, Vermeer and our pending acquisition of Tokio Millennium Re. Looking ahead, at the recent January 1 renewal we laid the foundation for a successful 2019 and ongoing shareholder value creation.”

Get all the latest re/insurance industry news with our daily newsletter -  sign up here.

More of today's news

Energy firm cleared of Tubbs fire files for bankruptcy 

Swiss Re prepares for post-Brexit world with new capital markets unit

WR Berkley shrinks reinsurance as it “de-emphasizes less attractive opportunities”

QBE merges Asia operations in optimisation push

AXIS Re taps Gen Re VP for Canadian underwriting business

Lloyd's appoints former US Senator John Sununu to council 

RFIB hires new reinsurance CEO for Asian expansion

Download our survey inforgraphic: 'The Impact of Automation on Commercial Lines'

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk


More on this story

News
29 January 2019   Reinsurance Group of America (RGA) enjoyed strong growth in 2018 on the back of what its CEO said was its growing diversity from its global operating platform; its net profit fell compared with the year before, but this was because of one-off tax boost in 2017.
Insurance
8 February 2019   Bermuda-based RenaissanceRe Holdings (RenRe) has appointed Cythnia Trudell to serve as an independent director of the company, following the retirement of Edward Zore.