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Dec 31, 2020

RenaissanceRe Q4 2020 Earnings Report

RenaissanceRe reported net income and an operating loss for Q4 2020, impacted by weather-related losses and COVID-19 losses.

Key Takeaways

RenaissanceRe reported a net income available to common shareholders of $189.8 million, or $3.74 per diluted common share, in the fourth quarter of 2020. However, the operating loss attributable to common shareholders was $77.1 million, or $1.59 per diluted common share, during the same period. The results were significantly impacted by weather-related large losses and losses related to the COVID-19 pandemic.

Net income available to common shareholders was $189.8 million, or $3.74 per diluted common share.

Operating loss attributable to common shareholders was $77.1 million, or $1.59 per diluted common share.

Gross premiums written increased by 3.3% to $935.5 million.

Underwriting loss was $151.7 million with a combined ratio of 114.7%.

Total Revenue
$1.4B
Previous year: $1.11B
+26.2%
EPS
-$1.59
Previous year: $0.52
-405.8%
Combined Ratio
114.7%
Previous year: 106.7%
+7.5%
Book value per share
$138
Previous year: $121
+14.9%
ROAE
10.9%
Previous year: 2.5%
+336.0%
Gross Profit
$182M
Previous year: $371M
-51.0%
Cash and Equivalents
$1.74B
Previous year: $1.38B
+25.9%
Total Assets
$30.8B
Previous year: $26.3B
+17.1%

RenaissanceRe

RenaissanceRe

Forward Guidance

RenaissanceRe is focused on executing its strategy into an attractive reinsurance market and anticipates further opportunities to improve over the course of the year.

Positive Outlook

  • Larger and more efficient book of business at the January 1 renewal.
  • Increased expected profitability.
  • Anticipation of further opportunities to improve over the course of the year.

Challenges Ahead

  • Net negative impact on net income available to RenaissanceRe common shareholders of $166.1 million resulting from the Q4 2020 Weather-Related Large Losses.
  • Net negative impact on net income available to RenaissanceRe common shareholders of $172.7 million from losses related to the COVID-19 pandemic.
  • Underwriting loss of $151.7 million and a combined ratio of 114.7%.
  • The Property segment incurred an underwriting loss of $130.0 million and had a combined ratio of 125.6%.
  • The Casualty and Specialty segment incurred an underwriting loss of $21.4 million and had a combined ratio of 104.1%.