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Mar 31, 2023

RenaissanceRe Q1 2023 Earnings Report

Reported strong Q1 2023 results driven by underwriting performance, capital partners fees, and investment income.

Key Takeaways

RenaissanceRe reported a net income available to common shareholders of $564.1 million for Q1 2023, with an annualized return on average common equity of 46.6%. The company saw strong performance in both its Property and Casualty and Specialty segments, with combined ratios of 56.6% and 92.9%, respectively. Net investment income grew by 203.9% compared to Q1 2022, and the company raised $621.2 million of third-party capital.

Net income available to common shareholders was $564.1 million.

Annualized return on average common equity was 46.6% and annualized operating return on average common equity was 29.7%.

Property combined ratio was 56.6% and Casualty and Specialty combined ratio was 92.9%.

Net investment income increased by 203.9% compared to Q1 2022.

Total Revenue
$2.21B
Previous year: $876M
+151.6%
EPS
$8.16
Previous year: $3.5
+133.1%
Combined Ratio
78%
Previous year: 86.5%
-9.8%
Gross Profit
$2.2B
Previous year: $883M
+148.7%
Cash and Equivalents
$1.06B
Previous year: $1.56B
-31.9%
Total Assets
$38.3B
Previous year: $34.8B
+9.8%

RenaissanceRe

RenaissanceRe

Forward Guidance

The company expects its three drivers of profit - underwriting, fees, and investment income - to continue to improve. They anticipate strong demand for their products, increased fees from the Capital Partners business, and a favorable investment environment. The company is confident that the attractive reinsurance market will persist, providing opportunities to deploy additional capital.

Positive Outlook

  • Ongoing strong demand for products.
  • Increased fees from Capital Partners business.
  • Favorable investment environment.
  • Attractive reinsurance market expected to persist.
  • Opportunities to deploy additional capital.