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Dec 31, 2024

RenaissanceRe Q4 2024 Earnings Report

Reported a net loss and operating income, driven by investment losses and hurricane impact, but demonstrated resilience through strong underwriting performance and fee income.

Key Takeaways

RenaissanceRe reported a net loss of $198.5 million for Q4 2024, influenced by mark-to-market losses and the impact of Hurricane Milton. However, the company achieved an operating income of $406.9 million, supported by underwriting income and fee income growth.

Reported a net loss attributable to common shareholders of $198.5 million, or $(3.95) per diluted common share.

Achieved operating income available to common shareholders of $406.9 million, or $8.06 per diluted common share.

Combined ratio of 91.7% and adjusted combined ratio of 89.4%.

Net investment income increased to $428.8 million, up 13.8% from Q4 2023.

Total Revenue
$2.29B
Previous year: $3.24B
-29.2%
EPS
$8.06
Previous year: $11.8
-31.5%
Combined Ratio
91.7%
Previous year: 76%
+20.7%
ROAE
-7.8%
Previous year: 83.5%
-109.3%
Gross Profit
$209M
Previous year: $3.21B
-93.5%
Cash and Equivalents
$1.68B
Previous year: $1.88B
-10.7%
Free Cash Flow
$779M
Total Assets
$50.7B
Previous year: $42.7B
+18.6%

RenaissanceRe

RenaissanceRe

Forward Guidance

RenaissanceRe anticipates leveraging its strong capital and liquidity to capitalize on emerging opportunities, enhance its market leadership, and deliver superior shareholder value.

Positive Outlook

  • Strong capital and liquidity positions will allow capture of additional opportunities.
  • Long-term partnership approach rewarded with preferential signings.
  • Attractive underwriting book retained.
  • Demonstrated relevance to customers through rapid claim payments.
  • Delivered another strong year with growth in tangible book value per share plus change in accumulated dividends.

Challenges Ahead

  • California wildfires are expected to have a pre-tax net negative impact of approximately $750 million in Q1 2025.
  • Preliminary assessment of the impact from the California wildfires is based on initial industry insured loss estimates and market share analysis.
  • Difficult to provide an accurate estimate of the financial impact of the California wildfires due to the preliminary nature of the information.
  • Net realized and unrealized losses on investments increased by $1.2 billion.
  • Hurricane Milton had a net negative impact of $270.5 million on net income.