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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%.
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%.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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