RenRe reports good growth but a fall in profits for 2015
RenaissanceRe (RenRe) has seen a fall in its profits in 2015, to $408.8 million, compared with $510.3 million in 2014.
The Bermuda-based reinsurer did see gross premiums written increase by 29.7 percent in 2015, compared to 2014, to $2 billion however. RenRe said this increase was principally driven by increases in the company’s specialty reinsurance and Lloyd’s segments.
Gross premiums written in the specialty reinsurance and Lloyd’s segments increased $419.4 million or 121 percent, and $107.1 million or 39.7 percent, respectively, from 2014 to 2015, partially offset by the catastrophe reinsurance segment which experienced a decrease of $65.3 million, or 7 percent.
RenRe also saw its combined ratio dramatically increase to 64.7 percent in 2015, compared to 50.2 percent in 2014.
Kevin O'Donnell, chief executive officer, RenRe, said: "I am pleased to report $135 million of operating income, an annualised operating return on equity (ROE) of 12.5 percent and 2.3 percent growth in tangible book value per share plus accumulated dividends for the quarter. In a year in which we acquired and fully integrated Platinum, we generated solid operating income of $477.7 million for the year and delivered an operating ROE of 11.4 percent."
O’Donnell also said RenRe’s underwriting team executed well during the most recent renewal period, as pressure on pricing from abundant capacity persisted.
“We maintained discipline, coming off business that did not meet our return hurdles, buying more reinsurance protection, while also building an attractive portfolio of risks,” he said.
“We are a bigger, stronger company today, than a year ago, and have the management team, global operating platforms and risk management expertise to serve our clients, third party capital providers and shareholders well in the years ahead."
