2 November 2016 Insurance

RenaissanceRe almost doubles its profit in Q3

Bermuda-based reinsurer RenaissanceRe almost doubled its net income in the third quarter of 2016 in comparison with the same period of 2015.

Furthermore, most of RenaissanceRe’s lines of business experienced growth, only partially offset by its catastrophe reinsurance segment, which shrank on the back of what the company called challenging market conditions.

RenaissanceRe's net income for the three-month period ending September 30 was $146.8 million, compared to $75.5 million for same period last year.

The reinsurer’s gross premiums written for the third quarter were $430.1 million, an increase of 16.4 percent year-over-year.

The company's specialty reinsurance and Lloyd's segment experienced increases of $56.5 million, or 26.4 percent, and $18.4 million, or 25 percent, respectively, partially offset by a decrease in its catastrophe reinsurance segment of $14.3 million, or 17.5 percent.

Kevin O'Donnell, CEO, said: "We reported $146.8 million of net income and 3.9 percent growth in tangible book value per share plus accumulated dividends for the quarter.

“Our results benefited from a low level of insured catastrophe activity, favourable reserve development and mark-to-market investment gains. For the first nine months of the year, we have generated $411.1 million of net income and grown tangible book value per share by 9.5 percent, after adjusting for dividends, while also returning almost $350 million of capital to our shareholders through share repurchases and dividends."

"We continue to see select opportunities for disciplined organic growth within our casualty and specialty franchise. Given where we are in the reinsurance cycle, we are executing our gross to net strategy, trading underwriting risk for fee income, and protecting our balance sheet for the long term. We continue to focus on deepening our customer relationships and look forward to meeting their needs during the upcoming renewal period."

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