Renaissancere reports q3 2022 net loss attributable to common shareholders of $825.3 million; operating loss attributable to common shareholders of $396.7 million.
Pembroke, bermuda--(business wire)--renaissancere holdings ltd. (nyse: rnr) (“renaissancere” or the “company”) today announced its financial results for the third quarter of 2022. net loss attributable to common shareholders per diluted common share: $(19.27) operating loss attributable to common shareholders per diluted common share*: $(9.27) underwriting loss $(683.1)m fee income $25.7m net investment income $157.8m change in book value per common share: (16.8)% change in tangible book value per common share plus change in accum. dividends*: (17.4)% * operating return on average common equity, operating income (loss) available (attributable) to common shareholders, operating income (loss) available (attributable) to common shareholders per diluted common share and change in tangible book value per common share plus change in accumulated dividends are non-gaap financial measures; see “comments on regulation g” for a reconciliation of non-gaap financial measures. kevin j. o’donnell, president and chief executive officer, said, “hurricane ian’s arrival in the final days of the quarter was both a stark reminder of our value proposition to our customers and a catalyst for change in the reinsurance marketplace. renaissancere’s strategic focus on reinsurance, strong capital and industry leadership uniquely situate us to drive transformative change during the upcoming renewal period. as a result, we are positioned to deliver an attractive return to our investors through materially increased underwriting profit, robust fee income and significantly higher investment income.” consolidated financial results consolidated highlights three months ended september 30, (in thousands, except per share amounts and percentages) 2022 2021 gross premiums written $ 2,220,661 $ 1,774,180 net premiums written 1,821,711 1,486,440 underwriting income (loss) (683,114 ) (678,825 ) combined ratio 138.7 % 145.1 % net income (loss) available (attributable) to common shareholders (825,344 ) (450,222 ) available (attributable) to common shareholders per diluted common share $ (19.27 ) $ (9.75 ) operating income (loss) (1) available (attributable) to common shareholders (396,674 ) (414,538 ) available (attributable) to common shareholders per diluted common share $ (9.27 ) $ (8.98 ) book value per common share $ 94.55 $ 128.91 change in book value per share (16.8 )% (7.5 )% tangible book value per common share plus accumulated dividends (1) $ 113.29 $ 146.40 change in tangible book value per common share plus change in accumulated dividends (1) (17.4 )% (7.6 )% return on average common equity - annualized (72.4 )% (28.4 )% operating return on average common equity - annualized (1) (34.8 )% (26.1 )% net negative impact net negative impact on underwriting result includes the sum of (1) net claims and claim expenses incurred, (2) assumed and ceded reinstatement premiums earned and (3) earned and lost profit commissions. net negative impact on net income (loss) available (attributable) to renaissancere common shareholders is the sum of (1) net negative impact on underwriting result and (2) redeemable noncontrolling interest, both before consideration of any related income tax benefit (expense). the company’s estimates of net negative impact are based on a review of our potential exposures, preliminary discussions with certain counterparties and actuarial modeling techniques. our actual net negative impact, both individually and in the aggregate, may vary from these estimates, perhaps materially. changes in these estimates will be recorded in the period in which they occur. meaningful uncertainty remains regarding the estimates and the nature and extent of the losses from these catastrophe events, driven by the magnitude and recent nature of each event, the geographic areas impacted by the events, relatively limited claims data received to date, the contingent nature of business interruption and other exposures, potential uncertainties relating to reinsurance recoveries and other factors inherent in loss estimation, among other things. weather-related large losses net negative impact on the consolidated financial statements three months ended september 30, 2022 hurricane ian other q3 2022 catastrophe events (1) aggregate losses (2) total q3 2022 weather-related large losses (3) (in thousands) net claims and claims expenses incurred $ (990,382 ) $ (152,418 ) $ (9,695 ) $ (1,152,495 ) assumed reinstatement premiums earned 221,799 14,105 9 235,913 ceded reinstatement premiums earned (57,733 ) (283 ) — (58,016 ) earned (lost) profit commissions (1,487 ) (1,285 ) (49 ) (2,821 ) net negative impact on underwriting result (827,803 ) (139,881 ) (9,735 ) (977,419 ) redeemable noncontrolling interest 288,383 40,621 — 329,004 net negative impact on net income (loss) available (attributable) to renaissancere common shareholders $ (539,420 ) $ (99,260 ) $ (9,735 ) $ (648,415 ) net negative impact on the segment underwriting results and consolidated combined ratio three months ended september 30, 2022 hurricane ian other q3 2022 catastrophe events (1) aggregate losses (2) total q3 2022 weather-related large losses (3) (in thousands, except percentages) net negative impact on property segment underwriting result $ (820,765 ) $ (137,881 ) $ (9,735 ) $ (968,381 ) net negative impact on casualty and specialty segment underwriting result (7,038 ) (2,000 ) — (9,038 ) net negative impact on underwriting result $ (827,803 ) $ (139,881 ) $ (9,735 ) $ (977,419 ) percentage point impact on consolidated combined ratio 47.7 7.7 0.6 57.2 three drivers of profit: underwriting, fee and investment income underwriting results - property segment: q3 2022 weather-related large losses contributed 123.0 percentage points to the combined ratio property segment three months ended september 30, q/q change (in thousands, except percentages) 2022 2021 gross premiums written $ 800,330 $ 773,692 3.4 % net premiums written 696,520 681,095 2.3 % underwriting income (loss) (722,599 ) (681,929 ) underwriting ratios net claims and claim expense ratio - current accident year 166.3 % 180.0 % (13.7) pts net claims and claim expense ratio - prior accident years (2.9 )% (17.9 )% 15.0 pts net claims and claim expense ratio - calendar year 163.4 % 162.1 % 1.3 pts underwriting expense ratio 22.6 % 21.4 % 1.2 pts combined ratio 186.0 % 183.5 % 2.5 pts gross premiums written increased by $26.6 million, or 3.4%, driven by growth of $55.9 million within the catastrophe class of business, partially offset by a reduction of $29.2 million within the other property class of business. – reinstatement premiums from the q3 2022 weather-related large losses were $234.0 million compared to $254.9 million of reinstatement premiums from the weather related large losses in the third quarter of 2021. net premiums written increased by $15.4 million, or 2.3%, driven by the increase in gross premiums written, slightly offset by an increase in ceded premiums written of $11.2 million. net claims and claim expense ratio - current accident year decreased 13.7 percentage points, primarily due to a lower impact from weather-related large losses. – q3 2022 weather-related large losses contributed 127.9 percentage points to the current accident year net claims and claim expense ratio, compared to the weather-related large losses in the third quarter of 2021, which contributed 143.1 percentage points to the current accident year net claims and claim expense ratio. net claims and claim expense ratio - prior accident years reflects net favorable development primarily from weather-related large losses in the 2017 to 2020 accident years. underwriting loss of $722.6 million in the property segment included a $968.4 million net negative impact from the q3 2022 weather-related large losses with significant impacts in both the catastrophe and other property classes of business. – combined ratio of 186.0% included 123.0 percentage points from the q3 2022 weather-related large losses. underwriting results - casualty and specialty segment: combined ratio of 95.7% and growth in net premiums written of 39.7% casualty and specialty segment three months ended september 30, q/q change (in thousands, except percentages) 2022 2021 gross premiums written $ 1,420,331 $ 1,000,488 42.0 % net premiums written 1,125,191 805,345 39.7 % underwriting income (loss) 39,485 3,104 underwriting ratios net claims and claim expense ratio - current accident year 65.0 % 69.0 % (4.0) pts net claims and claim expense ratio - prior accident years (0.8 )% (0.2 )% (0.6) pts net claims and claim expense ratio - calendar year 64.2 % 68.8 % (4.6) pts underwriting expense ratio 31.5 % 30.8 % 0.7 pts combined ratio 95.7 % 99.6 % (3.9) pts gross premiums written increased 42.0% across various lines of business, principally in the financial lines classes of business, which grew $237.0 million. net premiums written increased 39.7%, primarily driven by growth in the financial lines classes of business, consistent with the changes in gross premiums written. net claims and claim expense ratio - current accident year improved by 4.0 percentage points, primarily due to a lower impact from the q3 2022 weather-related large losses compared to the weather related large losses in the third quarter of 2021. net claims and claim expense ratio - prior accident year improved by 0.6 percentage points, reflecting higher favorable prior accident year loss development compared to the third quarter of 2021. underwriting expense ratio increased 0.7 percentage points, principally due to a 1.6 percentage point increase in the net acquisition expense ratio due to higher costs and changes in mix of business. this was largely offset by a 0.9 percentage point improvement in the operating expense ratio, driven by improved operating leverage. fee income: $25.7 million of fee income; management fees stable while performance fees impacted by q3 2022 weather-related large losses fee income three months ended september 30, q/q change (in thousands, except percentages) 2022 2021 total management fee income $ 24,989 $ 23,854 $ 1,135 total performance fee income (loss) (1) 739 4,481 (3,742 ) total fee income $ 25,728 $ 28,335 $ (2,607 ) management fee income was relatively stable in comparison to the third quarter of 2021, reflecting increased capital managed at davincire holdings ltd. (“davinci”), vermeer reinsurance ltd. (“vermeer”), renaissancere medici fund ltd. (“medici”), and fontana holdings l.p. and its subsidiaries, largely offset by reductions in the company’s structured reinsurance products. performance fee income was lower in the third quarter of 2022 compared to the third quarter of 2021, primarily due to the impact of the q3 2022 weather-related large losses. investment results: net investment income up $79.5 million; total investment result driven by net realized and unrealized losses, primarily in the fixed maturity investments portfolio investment results three months ended september 30, q/q change (in thousands, except percentages) 2022 2021 net investment income $ 157,793 $ 78,267 $ 79,526 net realized and unrealized gains (losses) on investments (641,500 ) (42,071 ) (599,429 ) total investment result $ (483,707 ) $ 36,196 $ (519,903 ) total investment return - annualized (8.9 )% 0.7 % (9.6) pts net investment income increased $79.5 million, primarily driven by higher investment yields from: – portfolio management to take advantage of rising interest rates and increase the book yield within the fixed maturity trading and short term investment portfolios, and – higher average invested assets and yields in private credit fund investments. net realized and unrealized losses on investments increased $599.4 million principally driven by: – net realized and unrealized losses on fixed maturity investments trading of $424.2 million as a result of the significant increase in interest rates on the fixed maturity portfolio, compared to net realized and unrealized losses of $29.4 million in the third quarter of 2021 resulting from a smaller increase in interest rates. – net realized and unrealized losses on catastrophe bonds of $127.0 million (primarily held in the medici portfolio, the majority of which is owned by third party investors), principally as a result of the impact of hurricane ian, compared to net realized and unrealized losses of $6.0 million in the third quarter of 2021. total investments were $20.9 billion at september 30, 2022 (december 31, 2021 - $21.4 billion). weighted average yield to maturity and duration on the company’s investment portfolio (which excludes investments that have no final maturity, yield to maturity or duration) was 5.1% and 2.5 years. other items of note net loss attributable to redeemable noncontrolling interests of $372.4 million was primarily driven by: – impact of the q3 2022 weather-related large losses on the performance of davinci, medici and vermeer; and – realized and unrealized losses on investments in the company’s joint ventures driven by the significant increase in interest rates. raised capital of $122.1 million in the third quarter of 2022 through vermeer and medici. share repurchases of 175.7 thousand common shares at an aggregate cost of $25.3 million and an average price of $144.07 per common share from july 1, 2022 through july 22, 2022. conference call details and additional information non-gaap financial measures and additional financial information this press release includes certain financial measures that are not calculated in accordance with generally accepted accounting principles in the u.s. (“gaap”) including “operating income (loss) available (attributable) to renaissancere common shareholders,” “operating income (loss) available (attributable) to renaissancere common shareholders per common share - diluted,” “operating return on average common equity - annualized,” “tangible book value per common share” and “tangible book value per common share plus accumulated dividends.” a reconciliation of such measures to the most comparable gaap figures in accordance with regulation g is presented in the attached supplemental financial data. please refer to the “investors - financial reports - financial supplements” section of the company’s website at www.renre.com for a copy of the financial supplement which includes additional information on the company’s financial performance. conference call information renaissancere will host a conference call on wednesday, november 2, 2022 at 11:00 a.m. et to discuss this release. live broadcast of the conference call will be available through the “investors - webcasts & presentations” section of the company’s website at www.renre.com. about renaissancere renaissancere is a global provider of reinsurance and insurance that specializes in matching well-structured risks with efficient sources of capital. the company provides property, casualty and specialty reinsurance and certain insurance solutions to customers, principally through intermediaries. established in 1993, renaissancere has offices in bermuda, australia, ireland, singapore, switzerland, the united kingdom and the united states. cautionary statement regarding forward-looking statements any forward-looking statements made in this press release reflect renaissancere’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the private securities litigation reform act of 1995. these statements are subject to numerous factors that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements, including the following: the company’s exposure to natural and non-natural catastrophic events and circumstances and the variance it may cause in the company’s financial results; the effect of climate change on the company’s business, including the trend towards increasingly frequent and severe climate events; the effectiveness of the company’s claims and claim expense reserving process; the effect of emerging claims and coverage issues; the historically cyclical nature of the (re)insurance industries; collection on claimed retrocessional coverage, and new retrocessional reinsurance being available on acceptable terms; the ability of the company’s ceding companies and delegated authority counterparties to accurately assess the risks they underwrite; the company’s ability to maintain its financial strength ratings; the performance of the company’s investment portfolio and financial market volatility; the effects of inflation; the highly competitive nature of the company’s industry, resulting in consolidation of competitors, customers and (re)insurance brokers, and the company’s reliance on a small and decreasing number of brokers; the impact of large non-recurring contracts and reinstatement premiums on the company’s financial results; the company’s ability to attract and retain key executives and employees; the effect of cybersecurity risks, including technology breaches or failure; the company’s ability to successfully implement its business strategies and initiatives, and the success of any of the company’s strategic investments or acquisitions, including its ability to manage its operations as its product and geographical diversity increases; the company’s exposure to credit loss from counterparties; the company’s need to make many estimates and judgments in the preparation of its financial statements; the company’s ability to effectively manage capital on behalf of investors in joint ventures or other entities it manages; changes to the accounting rules and regulatory systems applicable to the company’s business, including changes in bermuda laws or regulations or as a result of increased global regulation of the insurance and reinsurance industries; other political, regulatory or industry initiatives adversely impacting the company; the company’s ability to comply with covenants in its debt agreements; a contention by the u.s. internal revenue service that any of the company’s bermuda subsidiaries are subject to taxation in the u.s.; the effects of possible future tax reform legislation and regulations, including changes to the tax treatment of the company’s shareholders or investors in its joint ventures or other entities it manages; the company’s ability to determine any impairments taken on its investments; 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 the company’s potential reinsurance, insurance and investment exposures, or other effects that it may have; foreign currency exchange rate fluctuations; the company’s ability to raise capital if necessary; the company’s ability to comply with applicable sanctions and foreign corrupt practices laws; the company’s dependence on the ability of its operating subsidiaries to declare and pay dividends; aspects of the company’s corporate structure that may discourage third-party takeovers and other transactions; difficulties investors may have in serving process or enforcing judgments against the company in the u.s.; and other factors affecting future results disclosed in renaissancere’s filings with the sec, including its annual reports on form 10-k and quarterly reports on form 10-q. renaissancere holdings ltd. summary consolidated statements of operations (in thousands of united states dollars, except per share amounts and percentages) (unaudited) three months ended nine months ended september 30, 2022 september 30, 2021 september 30, 2022 september 30, 2021 revenues gross premiums written $ 2,220,661 $ 1,774,180 $ 7,628,264 $ 6,520,780 net premiums written $ 1,821,711 $ 1,486,440 $ 5,850,544 $ 4,822,815 decrease (increase) in unearned premiums (54,690 ) 19,825 (1,140,715 ) (969,924 ) net premiums earned 1,767,021 1,506,265 4,709,829 3,852,891 net investment income 157,793 78,267 348,695 238,996 net foreign exchange gains (losses) (1,383 ) (4,755 ) (67,690 ) (24,309 ) equity in earnings (losses) of other ventures 1,739 5,305 2,732 8,479 other income (loss) 2,834 1,692 4,950 4,449 net realized and unrealized gains (losses) on investments (641,500 ) (42,071 ) (1,968,624 ) (196,616 ) total revenues 1,286,504 1,544,703 3,029,892 3,883,890 expenses net claims and claim expenses incurred 1,967,931 1,798,045 3,515,903 3,185,117 acquisition expenses 417,644 328,048 1,155,389 880,872 operational expenses 64,560 58,997 204,987 172,511 corporate expenses 10,384 10,196 35,238 30,726 interest expense 12,101 11,919 35,951 35,664 total expenses 2,472,620 2,207,205 4,947,468 4,304,890 income (loss) before taxes (1,186,116 ) (662,502 ) (1,917,576 ) (421,000 ) income tax benefit (expense) (2,814 ) 23,630 64,427 29,284 net income (loss) (1,188,930 ) (638,872 ) (1,853,149 ) (391,716 ) net (income) loss attributable to redeemable noncontrolling interests 372,429 198,495 335,010 131,801 net income (loss) attributable to renaissancere (816,501 ) (440,377 ) (1,518,139 ) (259,915 ) dividends on preference shares (8,843 ) (9,845 ) (26,531 ) (24,423 ) net income (loss) available (attributable) to renaissancere common shareholders $ (825,344 ) $ (450,222 ) $ (1,544,670 ) $ (284,338 ) net income (loss) available (attributable) to renaissancere common shareholders per common share – basic $ (19.27 ) $ (9.75 ) $ (35.84 ) $ (5.94 ) net income (loss) available (attributable) to renaissancere common shareholders per common share – diluted $ (19.27 ) $ (9.75 ) $ (35.84 ) $ (5.94 ) operating (loss) income (attributable) available to renaissancere common shareholders per common share - diluted (1) $ (9.27 ) $ (8.98 ) $ (0.16 ) $ (2.77 ) average shares outstanding - basic 42,837 46,223 43,121 47,988 average shares outstanding - diluted 42,837 46,223 43,121 47,988 net claims and claim expense ratio 111.4 % 119.4 % 74.7 % 82.7 % underwriting expense ratio 27.3 % 25.7 % 28.9 % 27.3 % combined ratio 138.7 % 145.1 % 103.6 % 110.0 % return on average common equity - annualized (72.4 )% (28.4 )% (40.5 )% (5.8 )% operating return on average common equity - annualized (1) (34.8 )% (26.1 )% (0.2 )% (2.7 )% renaissancere holdings ltd. summary consolidated balance sheets (in thousands of united states dollars, except per share amounts) september 30, 2022 december 31, 2021 assets (unaudited) (audited) fixed maturity investments trading, at fair value $ 12,671,098 $ 13,507,131 short term investments, at fair value 4,935,960 5,298,385 equity investments trading, at fair value 950,393 546,016 other investments, at fair value 2,263,164 1,993,059 investments in other ventures, under equity method 72,535 98,068 total investments 20,893,150 21,442,659 cash and cash equivalents 1,204,241 1,859,019 premiums receivable 5,479,305 3,781,542 prepaid reinsurance premiums 1,233,551 854,722 reinsurance recoverable 4,969,244 4,268,669 accrued investment income 84,508 55,740 deferred acquisition costs and value of business acquired 1,181,156 849,160 receivable for investments sold 298,346 380,442 other assets 353,147 224,053 goodwill and other intangible assets 239,187 243,496 total assets $ 35,935,835 $ 33,959,502 liabilities, noncontrolling interests and shareholders’ equity liabilities reserve for claims and claim expenses $ 15,662,955 $ 13,294,630 unearned premiums 5,046,150 3,531,213 debt 1,169,917 1,168,353 reinsurance balances payable 4,158,610 3,860,963 payable for investments purchased 589,886 1,170,568 other liabilities 251,485 755,441 total liabilities 26,879,003 23,781,168 redeemable noncontrolling interests 4,174,960 3,554,053 shareholders’ equity preference shares 750,000 750,000 common shares 43,702 44,445 additional paid-in capital 465,565 608,121 accumulated other comprehensive income (loss) (16,773 ) (10,909 ) retained earnings 3,639,378 5,232,624 total shareholders’ equity attributable to renaissancere 4,881,872 6,624,281 total liabilities, noncontrolling interests and shareholders’ equity $ 35,935,835 $ 33,959,502 book value per common share $ 94.55 $ 132.17 renaissancere holdings ltd. supplemental financial data - segment information (in thousands of united states dollars, except percentages) (unaudited) three months ended september 30, 2022 property casualty and specialty other total gross premiums written $ 800,330 $ 1,420,331 $ — $ 2,220,661 net premiums written $ 696,520 $ 1,125,191 $ — $ 1,821,711 net premiums earned $ 839,817 $ 927,204 $ — $ 1,767,021 net claims and claim expenses incurred 1,372,583 595,348 — 1,967,931 acquisition expenses 141,675 275,969 — 417,644 operational expenses 48,158 16,402 — 64,560 underwriting income (loss) $ (722,599 ) $ 39,485 $ — (683,114 ) net investment income 157,793 157,793 net foreign exchange gains (losses) (1,383 ) (1,383 ) equity in earnings of other ventures 1,739 1,739 other income (loss) 2,834 2,834 net realized and unrealized gains (losses) on investments (641,500 ) (641,500 ) corporate expenses (10,384 ) (10,384 ) interest expense (12,101 ) (12,101 ) income (loss) before taxes and redeemable noncontrolling interests (1,186,116 ) income tax benefit (expense) (2,814 ) (2,814 ) net (income) loss attributable to redeemable noncontrolling interests 372,429 372,429 dividends on preference shares (8,843 ) (8,843 ) net income (loss) available (attributable) to renaissancere common shareholders $ (825,344 ) net claims and claim expenses incurred – current accident year $ 1,396,842 $ 602,995 $ — $ 1,999,837 net claims and claim expenses incurred – prior accident years (24,259 ) (7,647 ) — (31,906 ) net claims and claim expenses incurred – total $ 1,372,583 $ 595,348 $ — $ 1,967,931 net claims and claim expense ratio – current accident year 166.3 % 65.0 % 113.2 % net claims and claim expense ratio – prior accident years (2.9 )% (0.8 )% (1.8 )% net claims and claim expense ratio – calendar year 163.4 % 64.2 % 111.4 % underwriting expense ratio 22.6 % 31.5 % 27.3 % combined ratio 186.0 % 95.7 % 138.7 % three months ended september 30, 2021 property casualty and specialty other total gross premiums written $ 773,692 $ 1,000,488 $ — $ 1,774,180 net premiums written $ 681,095 $ 805,345 $ — $ 1,486,440 net premiums earned $ 816,376 $ 689,889 $ — $ 1,506,265 net claims and claim expenses incurred 1,323,678 474,367 — 1,798,045 acquisition expenses 134,179 193,869 — 328,048 operational expenses 40,448 18,549 — 58,997 underwriting income (loss) $ (681,929 ) $ 3,104 $ — (678,825 ) net investment income 78,267 78,267 net foreign exchange gains (losses) (4,755 ) (4,755 ) equity in earnings of other ventures 5,305 5,305 other income (loss) 1,692 1,692 net realized and unrealized gains (losses) on investments (42,071 ) (42,071 ) corporate expenses (10,196 ) (10,196 ) interest expense (11,919 ) (11,919 ) income (loss) before taxes and redeemable noncontrolling interests (662,502 ) income tax benefit (expense) 23,630 23,630 net (income) loss attributable to redeemable noncontrolling interests 198,495 198,495 dividends on preference shares (9,845 ) (9,845 ) net income (loss) available (attributable) to renaissancere common shareholders $ (450,222 ) net claims and claim expenses incurred – current accident year $ 1,469,613 $ 476,082 $ — $ 1,945,695 net claims and claim expenses incurred – prior accident years (145,935 ) (1,715 ) — (147,650 ) net claims and claim expenses incurred – total $ 1,323,678 $ 474,367 $ — $ 1,798,045 net claims and claim expense ratio – current accident year 180.0 % 69.0 % 129.2 % net claims and claim expense ratio – prior accident years (17.9 )% (0.2 )% (9.8 )% net claims and claim expense ratio – calendar year 162.1 % 68.8 % 119.4 % underwriting expense ratio 21.4 % 30.8 % 25.7 % combined ratio 183.5 % 99.6 % 145.1 % renaissancere holdings ltd. supplemental financial data - segment information (in thousands of united states dollars, except percentages) (unaudited) nine months ended september 30, 2022 property casualty and specialty other total gross premiums written $ 3,362,159 $ 4,266,105 $ — $ 7,628,264 net premiums written $ 2,474,661 $ 3,375,883 $ — $ 5,850,544 net premiums earned $ 2,081,989 $ 2,627,840 $ — $ 4,709,829 net claims and claim expenses incurred 1,804,268 1,711,635 — 3,515,903 acquisition expenses 406,338 749,051 — 1,155,389 operational expenses 144,717 60,270 — 204,987 underwriting income (loss) $ (273,334 ) $ 106,884 $ — (166,450 ) net investment income 348,695 348,695 net foreign exchange gain (loss) (67,690 ) (67,690 ) equity in earnings of other ventures 2,732 2,732 other income (loss) 4,950 4,950 net realized and unrealized gain (loss) on investments (1,968,624 ) (1,968,624 ) corporate expenses (35,238 ) (35,238 ) interest expense (35,951 ) (35,951 ) income (loss) before taxes and redeemable noncontrolling interests (1,917,576 ) income tax benefit (expense) 64,427 64,427 net (income) loss attributable to redeemable noncontrolling interests 335,010 335,010 dividends on preference shares (26,531 ) (26,531 ) net income (loss) available (attributable) to renaissancere common shareholders $ (1,544,670 ) net claims and claim expenses incurred – current accident year $ 1,880,337 $ 1,728,262 $ — $ 3,608,599 net claims and claim expenses incurred – prior accident years (76,069 ) (16,627 ) — (92,696 ) net claims and claim expenses incurred – total $ 1,804,268 $ 1,711,635 $ — $ 3,515,903 net claims and claim expense ratio – current accident year 90.3 % 65.8 % 76.6 % net claims and claim expense ratio – prior accident years (3.6 )% (0.7 )% (1.9 )% net claims and claim expense ratio – calendar year 86.7 % 65.1 % 74.7 % underwriting expense ratio 26.4 % 30.8 % 28.9 % combined ratio 113.1 % 95.9 % 103.6 % nine months ended september 30, 2021 property casualty and specialty other total gross premiums written $ 3,574,067 $ 2,946,713 $ — $ 6,520,780 net premiums written $ 2,492,890 $ 2,329,925 $ — $ 4,822,815 net premiums earned $ 1,981,939 $ 1,870,952 $ — $ 3,852,891 net claims and claim expenses incurred 1,919,660 1,265,457 — 3,185,117 acquisition expenses 356,171 524,701 — 880,872 operational expenses 114,710 57,801 — 172,511 underwriting income (loss) $ (408,602 ) $ 22,993 $ — (385,609 ) net investment income 238,996 238,996 net foreign exchange gain (loss) (24,309 ) (24,309 ) equity in earnings of other ventures 8,479 8,479 other income (loss) 4,449 4,449 net realized and unrealized gain (loss) on investments (196,616 ) (196,616 ) corporate expenses (30,726 ) (30,726 ) interest expense (35,664 ) (35,664 ) income (loss) before taxes and redeemable noncontrolling interests (421,000 ) income tax benefit (expense) 29,284 29,284 net (income) loss attributable to redeemable noncontrolling interests 131,801 131,801 dividends on preference shares (24,423 ) (24,423 ) net income (loss) available (attributable) to renaissancere common shareholders $ (284,338 ) net claims and claim expenses incurred – current accident year $ 2,121,740 $ 1,272,088 $ — $ 3,393,828 net claims and claim expenses incurred – prior accident years (202,080 ) (6,631 ) — (208,711 ) net claims and claim expenses incurred – total $ 1,919,660 $ 1,265,457 $ — $ 3,185,117 net claims and claim expense ratio – current accident year 107.1 % 68.0 % 88.1 % net claims and claim expense ratio – prior accident years (10.2 )% (0.4 )% (5.4 )% net claims and claim expense ratio – calendar year 96.9 % 67.6 % 82.7 % underwriting expense ratio 23.7 % 31.2 % 27.3 % combined ratio 120.6 % 98.8 % 110.0 % renaissancere holdings ltd. supplemental financial data - gross premiums written (in thousands of united states dollars) (unaudited) three months ended nine months ended september 30, 2022 september 30, 2021 september 30, 2022 september 30, 2021 property segment catastrophe $ 391,347 $ 335,493 $ 2,080,771 $ 2,227,941 other property 408,983 438,199 1,281,388 1,346,126 property segment gross premiums written $ 800,330 $ 773,692 $ 3,362,159 $ 3,574,067 casualty and specialty segment general casualty (1) $ 397,818 $ 346,754 $ 1,200,693 $ 976,610 professional liability (2) 380,125 329,848 1,378,645 950,607 financial lines (3) 365,863 128,586 844,447 359,147 other (4) 276,525 195,300 842,320 660,349 casualty and specialty segment gross premiums written $ 1,420,331 $ 1,000,488 $ 4,266,105 $ 2,946,713 (1) includes automobile liability, casualty clash, employer’s liability, umbrella or excess casualty, workers’ compensation and general liability. (2) includes directors and officers, medical malpractice, and professional indemnity. (3) includes financial guaranty, mortgage guaranty, political risk, surety and trade credit. (4) includes accident and health, agriculture, aviation, cyber, energy, marine, satellite and terrorism. lines of business such as regional multi-line and whole account may have characteristics of various other classes of business, and are allocated accordingly. renaissancere holdings ltd. supplemental financial data - total investment result (in thousands of united states dollars, except percentages) (unaudited) three months ended nine months ended september 30, 2022 september 30, 2021 september 30, 2022 september 30, 2021 fixed maturity investments trading $ 107,182 $ 56,825 $ 246,146 $ 179,268 short term investments 11,601 514 17,134 1,869 equity investments trading 6,120 1,823 13,390 4,940 other investments catastrophe bonds 25,748 17,184 63,343 48,333 other 11,258 7,571 23,704 20,711 cash and cash equivalents 1,386 (38 ) 1,250 223 163,295 83,879 364,967 255,344 investment expenses (5,502 ) (5,612 ) (16,272 ) (16,348 ) net investment income 157,793 78,267 348,695 238,996 net investment income return - annualized 3.2 % 1.4 % 2.3 % 1.5 % net realized gains (losses) on fixed maturity investments trading (213,493 ) 27,501 (621,799 ) 81,060 net unrealized gains (losses) on fixed maturity investments trading (210,665 ) (56,869 ) (824,662 ) (289,872 ) net realized and unrealized gains (losses) on investments-related derivatives (55,580 ) (2,056 ) (161,946 ) 3,476 net realized gains (losses) on equity investments trading 3,066 52,604 38,638 255,902 net unrealized gains (losses) on equity investments trading (46,301 ) (74,284 ) (222,074 ) (279,938 ) other investments net realized and unrealized gains (losses) on other investments - catastrophe bonds (126,992 ) (5,994 ) (159,913 ) (25,075 ) net realized and unrealized gains (losses) on other investments - other 8,465 17,027 (16,868 ) 57,831 net realized and unrealized gains (losses) on investments (641,500 ) (42,071 ) (1,968,624 ) (196,616 ) total investment result $ (483,707 ) $ 36,196 $ (1,619,929 ) $ 42,380 total investment return - annualized (8.9 )% 0.7 % (10.1 )% 0.3 % comments on regulation g in addition to the gaap financial measures set forth in this press release, the company has included certain non-gaap financial measures within the meaning of regulation g. the company has provided these financial measures in previous investor communications and the company’s management believes that these measures are important to investors and other interested persons, and that investors and such other persons benefit from having a consistent basis for comparison between quarters and for comparison with other companies within or outside the industry. these measures may not, however, be comparable to similarly titled measures used by companies within or outside of the insurance industry. investors are cautioned not to place undue reliance on these non-gaap measures in assessing the company’s overall financial performance. operating income (loss) available (attributable) to renaissancere common shareholders and operating return on average common equity - annualized the company uses “operating income (loss) available (attributable) to renaissancere common shareholders” as a measure to evaluate the underlying fundamentals of its operations and believes it to be a useful measure of its corporate performance. “operating income (loss) available (attributable) to renaissancere common shareholders” as used herein differs from “net income (loss) attributable to renaissancere common shareholders,” which the company believes is the most directly comparable gaap measure, by the exclusion of net realized and unrealized gains and losses on investments, excluding other investments - catastrophe bonds, net foreign exchange gains and losses, corporate expenses associated with the acquisition of tmr and the subsequent sale of renaissancere (uk) limited (“renaissancere uk”), the income tax expense or benefit associated with these adjustments and the portion of these adjustments attributable to the company’s redeemable noncontrolling interests. the company’s management believes that “operating income (loss) available (attributable) to renaissancere common shareholders” is useful to investors because it more accurately measures and predicts the company’s results of operations by removing the variability arising from: fluctuations in the fair value of the company’s fixed maturity investment portfolio, equity investments trading, other investments (excluding catastrophe bonds) and investments-related derivatives; fluctuations in foreign exchange rates; corporate expenses associated with the acquisition of tmr and the subsequent sale of renaissancere uk; the associated income tax expense or benefit of these adjustments; and the portion of these adjustments attributable to the company’s redeemable noncontrolling interests. the company also uses “operating income (loss) available (attributable) to renaissancere common shareholders” to calculate “operating income (loss) available (attributable) to renaissancere common shareholders per common share - diluted” and “operating return on average common equity - annualized.” the following table is a reconciliation of: (1) net income (loss) attributable to renaissancere common shareholders to “operating income (loss) available (attributable) to renaissancere common shareholders”; (2) net income (loss) attributable to renaissancere common shareholders per common share - diluted to “operating income (loss) available (attributable) to renaissancere common shareholders per common share - diluted”; and (3) return on average common equity - annualized to “operating return on average common equity - annualized.” comparative information for all prior periods has been updated to conform to the current methodology and presentation. three months ended nine months ended (in thousands of united states dollars, except per share amounts and percentages) september 30, 2022 september 30, 2021 september 30, 2022 september 30, 2021 net income (loss) available (attributable) to renaissancere common shareholders $ (825,344 ) $ (450,222 ) $ (1,544,670 ) $ (284,338 ) adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds 514,508 36,077 1,808,711 171,541 adjustment for net foreign exchange losses (gains) 1,383 4,755 67,690 24,309 adjustment for corporate expenses associated with the acquisition of tmr and the subsequent sale of renaissancere uk — — — 135 adjustment for income tax expense (benefit) (1) 7,269 286 (77,331 ) (7,893 ) adjustment for net income (loss) attributable to redeemable noncontrolling interests (2) (94,490 ) (5,434 ) (260,997 ) (35,847 ) operating income (loss) available (attributable) to renaissancere common shareholders $ (396,674 ) $ (414,538 ) $ (6,597 ) $ (132,093 ) net income (loss) available (attributable) to renaissancere common shareholders per common share - diluted $ (19.27 ) $ (9.75 ) $ (35.84 ) $ (5.94 ) adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds 12.01 0.78 41.95 3.57 adjustment for net foreign exchange losses (gains) 0.03 0.10 1.57 0.51 adjustment for corporate expenses associated with the acquisition of tmr and the subsequent sale of renaissancere uk — — — — adjustment for income tax expense (benefit) (1) 0.17 0.01 (1.79 ) (0.16 ) adjustment for net income (loss) attributable to redeemable noncontrolling interests (2) (2.21 ) (0.12 ) (6.05 ) (0.75 ) operating income (loss) available (attributable) to renaissancere common shareholders per common share - diluted $ (9.27 ) $ (8.98 ) $ (0.16 ) $ (2.77 ) return on average common equity - annualized (72.4 )% (28.4 )% (40.5 )% (5.8 )% adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds 45.2 % 2.3 % 47.3 % 3.5 % adjustment for net foreign exchange losses (gains) 0.1 % 0.3 % 1.8 % 0.5 % adjustment for corporate expenses associated with the acquisition of tmr and the subsequent sale of renaissancere uk — % — % — % — % adjustment for income tax expense (benefit) (1) 0.6 % — % (2.0 )% (0.2 )% adjustment for net income (loss) attributable to redeemable noncontrolling interests (2) (8.3 )% (0.3 )% (6.8 )% (0.7 )% operating return on average common equity - annualized (34.8 )% (26.1 )% (0.2 )% (2.7 )% tangible book value per common share and tangible book value per common share plus accumulated dividends the company has included in this press release “tangible book value per common share” and “tangible book value per common share plus accumulated dividends.” “tangible book value per common share” is defined as book value per common share excluding goodwill and intangible assets per share. “tangible book value per common share plus accumulated dividends” is defined as book value per common share excluding goodwill and intangible assets per share, plus accumulated dividends. the company’s management believes “tangible book value per common share” and “tangible book value per common share plus accumulated dividends” are useful to investors because they provide a more accurate measure of the realizable value of shareholder returns, excluding the impact of goodwill and intangible assets. the following table is a reconciliation of book value per common share to “tangible book value per common share” and “tangible book value per common share plus accumulated dividends.” september 30, 2022 june 30, 2022 march 31, 2022 december 31, 2021 september 30, 2021 book value per common share $ 94.55 $ 113.69 $ 121.44 $ 132.17 $ 128.91 adjustment for goodwill and other intangibles (1) (5.89 ) (5.90 ) (5.89 ) (5.90 ) (5.67 ) tangible book value per common share 88.66 107.79 115.55 126.27 123.24 adjustment for accumulated dividends 24.63 24.26 23.89 23.52 23.16 tangible book value per common share plus accumulated dividends $ 113.29 $ 132.05 $ 139.44 $ 149.79 $ 146.40 quarterly change in book value per common share (16.8 )% (6.4 )% (8.1 )% 2.5 % (7.5 )% quarterly change in tangible book value per common share plus change in accumulated dividends (17.4 )% (6.4 )% (8.2 )% 2.8 % (7.6 )% year to date change in book value per common share (28.5 )% (14.0 )% (8.1 )% (4.5 )% (6.9 )% year to date change in tangible book value per common share plus change in accumulated dividends (28.9 )% (14.0 )% (8.2 )% (4.0 )% (6.6 )%
