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Mar 31, 2021
RenaissanceRe Q1 2021 Earnings Report
Reported a net loss attributable to common shareholders and experienced impact from Winter Storm Uri.
Key Takeaways
RenaissanceRe reported a net loss attributable to common shareholders of $290.9 million for the first quarter of 2021, impacted by Winter Storm Uri and volatile capital markets. However, the company grew gross premiums written by 30.9% and repurchased 1.1 million common shares.
Grew gross premiums written by 30.9%, with 32.5% growth in the Property segment and 28.6% in the Casualty and Specialty segment.
Major winter storms in February 2021, referred to as Winter Storm Uri, caused widespread damage in the U.S., predominately in Texas, and had a $179.8 million net negative impact on net loss attributable to common shareholders, primarily in the Property segment.
Repurchased 1.1 million common shares at an average price of $159.47 per common share in the first quarter, with additional repurchases of 330 thousand common shares from April 1, 2021 through April 23, 2021 at an average price of $167.62 per common share.
Utilized flexible platform to broaden access to risk and match with efficient capital, growing premiums on a gross and net basis
RenaissanceRe
RenaissanceRe
Forward Guidance
RenaissanceRe anticipates additional opportunities to grow into a broadly improving market by matching desirable risk with efficient capital, both on our wholly owned balance sheets and in our industry-leading RenaissanceRe Capital Partners business. Together with improved yields in our investment portfolio, this diligent execution of our strategy will further contribute to shareholder value creation.
Positive Outlook
- Expanded participation on multiple casualty and specialty lines, benefiting from underlying rate increases and anticipated improvement in underwriting margins.
- Grew catastrophe-exposed U.S. property excess and surplus lines in the other property class of business.
- Took a disciplined approach at the January 1 and April 1 property catastrophe renewals, expanding participation predominately with existing customers at improved rates.
- Rebranded ventures unit as RenaissanceRe Capital Partners, reflecting partnership approach and strong alignment with third-party investors.
Challenges Ahead
- The uncertainty of the continuing and future impact of the COVID-19 pandemic, including measures taken in response thereto and the effect of legislative, regulatory and judicial influences on our financial performance and our ability to conduct our business
- The frequency and severity of catastrophic and other events the Company covers
- The effectiveness of the Company’s claims and claim expense reserving process
- The effect of climate change on the Company’s business, including the trend towards increasingly frequent and severe climate events
- The Company’s ability to maintain its financial strength ratings