RenRe reports Q4 loss, improvements in renewals
Bermuda-based RenaissanceRe Holdings reported a net loss attributable to shareholders of $3.5 million for the fourth quarter of 2017 but claims “strong execution at the January 1 renewals”.
The combined ratio deteriorated to 102.5 percent in the fourth quarter of 2017 from 70.5 percent in the same period a year earlier.
During the fourth quarter of 2017, the wildfires in California resulted in an underwriting loss of $154.4 million and added 37.6 percentage points to the company’s combined ratio. Also affecting the underwriting result during the period was a $53.5 million net positive impact reflecting changes to the initial estimate of underwriting losses associated with hurricanes Harvey, Irma and Maria and the Mexico City earthquake which occurred in the third quarter of 2017. This was partially offset by $49.6 million of underwriting losses associated with aggregate loss contracts.
As a result of the reduction in the US corporate tax rate from 35 percent to 21 percent effective Jan. 1, 2018, the company wrote down a portion of its US deferred tax asset during the fourth quarter of 2017, increasing its net loss attributable to RenaissanceRe common shareholders by $36.7 million.
At the same time, gross premiums written grew 26.2 percent year on year to $407.8 million in the fourth quarter of 2017.
For the full year of 2017, the company reported a net loss attributable to shareholders of $244.8 million compared to net income of $480.6 million in 2016. Gross premiums written increased to $2.80 billion from $2.37 billion over the period. The combined ratio deteriorated to 137.9 percent from 72.5 percent.
“In 2017, we experienced solid growth across our segments, while performing well in the face of the year’s catastrophe losses and benefiting from our gross-to-net strategy,” said CEO Kevin O'Donnell. “We ended the year on a positive note, with strong execution at the January 1 renewals allowing us to construct a more attractive portfolio. Looking forward, I am confident that we will see continued opportunities to grow in 2018 while maintaining underwriting discipline and maximizing shareholder value.”
Join us at Intelligent Automation in Insurance - London 2018. Book by Feb 28th and you could save £300.
More of today's news
Re/insurers boost insurtech investments
Allianz acquires renewal portfolio from Liberty Mutual US
London Market simplifies claims handling
Volante unveils Nordic-focused MGA with QBE hire
XL Catlin taps Everest National exec for US excess casualty
AmTrust partners with Israeli tech startups
