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Mar 31, 2020
RenaissanceRe Q1 2020 Earnings Report
RenaissanceRe experienced a net loss due to the impact of COVID-19 and investment losses, but gross premiums written increased.
Key Takeaways
RenaissanceRe reported a net loss attributable to common shareholders of $82.0 million, or $1.89 per diluted common share, in the first quarter of 2020. The financial performance was negatively impacted by COVID-19 and investment losses, but the company remains well capitalized with ample liquidity.
Net loss attributable to RenaissanceRe common shareholders was $82.0 million, or $1.89 per diluted common share.
Operating income available to common shareholders was $33.4 million, or $0.76 per diluted common share.
Gross premiums written increased by $461.4 million, or 29.5%, to $2.0 billion.
The Casualty and Specialty segment incurred an underwriting loss of $83.2 million, impacted by COVID-19 related claims.
Forward Guidance
RenaissanceRe is continuing to evaluate the impact of COVID-19 on its business and to estimate all of the Company’s potential reinsurance, insurance or investment exposures, or any other effects that the COVID-19 pandemic may have on its results of operations or financial condition. The Company expects losses to emerge over time as the full impact of the pandemic and its effects on the global economy are realized.
Challenges Ahead
- A longer or more severe recession, or high unemployment levels will increase the probability of losses.
- Potential legislative, regulatory and judicial actions are also causing significant uncertainty with respect to policy coverage and other issues.
- Actual losses may vary materially from this initial estimate.
- Volatility in global financial markets and a continued slowdown in global economic conditions, have adversely affected, and may continue to adversely affect, the Company’s investment portfolio.
- These conditions may also negatively impact the Company’s ability to access liquidity and capital markets financing.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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