RenRe boosts profits despite more competition
RenaissanceRe reported a 15 percent increase in net income in 2013 making $665.7 million compared with $566 million in 2012, despite the market becoming increasingly competitive.
An increase in gross written premiums of $53.8 million to $1.6 billion in 2013 compared with $1.55 billion in 2012 was driven by continued growth within the company's specialty reinsurance and Lloyd's segments.
Net written premiums reached $1.2 billion compared with $1.1 billion in 2012 and the company’s combined ratio for 2013 was 43.8 percent compared with 57.8 percent in 2012.
The results were heavily influenced by a decrease to 27.3 percent in the company's ownership in DaVinciRe, resulting in an increase in the portion of DaVinciRe's net income attributable to non-controlling interests. Some $151.1 million in 2013, compared with $148 million in 2012 of net income attributable to redeemable non-controlling interests was primarily due to the decrease.
Kevin O'Donnell, CEO, said: “I am pleased to report strong financial performance for the year, with $665.7 million of net income, a 19.4 percent operating ROE and 19.7 percent growth in tangible book value per common share plus the change in accumulated dividends.
“Although the most recent renewal was particularly competitive, our seasoned team was able to react quickly, access desirable business, and build an attractive portfolio of risks for our wholly owned and joint venture balance sheets. We enter 2014 with a strong balance sheet, some of the highest ratings in the industry, and a flexible operating platform from which to serve our clients and partners.”
