EX-99.1 2 rnrearningsrelease2021q3.htm EX-99.1 Document


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RenaissanceRe Reports Net Loss Attributable to Common Shareholders of $450.2 Million; Operating Loss Attributable to Common Shareholders of $414.5 Million in the Third Quarter of 2021.
•Hurricane Ida, severe flooding in Northwestern Europe, and aggregate losses associated with these and other events contributed to a $726.8 million net negative impact on net loss attributable to common shareholders.
•Strong growth in gross premiums written of $631.1 million, or 55.2%, across both segments; included $254.9 million of reinstatement premiums associated with the Q3 2021 Weather-Related Large Losses in the Property segment, which accounted for approximately one-third of the overall growth.
•Repurchased $223.8 million of common shares in the third quarter; aggregate of $704.5 million of common shares repurchased in the first three quarters of 2021; and an additional $75.3 million of common shares repurchased from October 1, 2021 through October 21, 2021.
Pembroke, Bermuda, October 25, 2021 -- RenaissanceRe Holdings Ltd. (NYSE: RNR) (“RenaissanceRe” or the “Company”) today announced its financial results for the three months ended September 30, 2021.
Net Loss Attributable to Common Shareholders per Diluted Common Share: $(9.75)
Operating Loss Attributable to Common Shareholders per Diluted Common Share*: $(8.98)
Underwriting Loss
$(678.8)M
Fee Income
$28.3M
Net Investment Income
$78.3M
Change in Book Value per Common Share: (7.5)%
Change in Tangible Book Value per Common Share Plus Change in Accum. Dividends*: (7.6)%
*Annualized Operating Return on Average Common Equity, Operating (Loss) Income (Attributable) Available to Common Shareholders, Operating (Loss) Income (Attributable) Available 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, “This was another active season for natural catastrophes and while our results for the third quarter reflect this volatility, we have maintained a robust capital position and our business fundamentals remain strong. As we look forward to 2022, our fortress balance sheet provides us with great flexibility to create value for shareholders. We believe we will have ample capacity to renew existing risk and underwrite new opportunities if sufficiently profitable, but are equally motivated to return excess capital to shareholders at what we consider very attractive multiples.”
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Consolidated Financial Results - Third Quarter

Consolidated Highlights

Three months ended September 30,
(in thousands, except per share amounts and percentages)20212020
Gross premiums written
$1,774,180$1,143,058
Underwriting loss(678,825)(206,072)
Combined ratio
145.1 %120.6 %
Net (Loss) income
(Attributable) available to common shareholders
(450,222)47,799
(Attributable) available to common shareholders per diluted common share
$(9.75)$0.94
Operating (Loss) (1)
(Attributable) to common shareholders
(414,538)(131,724)
(Attributable) to common shareholders per diluted common share
$(8.98)$(2.64)
Book value per common share
$128.91$135.13
Change in book value per share
(7.5)%0.6 %
Tangible book value per common share plus accumulated dividends (1)
$146.40$151.33
Change in tangible book value per common share plus change in accumulated dividends (1)
(7.6)%1.0%
Return on average common equity - annualized
(28.4)%2.8%
Operating return on average common equity - annualized (1)
(26.1)%(7.7)%
(1)See “Comments on Regulation G” for a reconciliation of non-GAAP financial measures.
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Net Negative Impact of the Q3 2021 Weather-Related Large Losses
Net negative impact on underwriting result includes the sum of (1) net claims and claim expenses incurred, (2) assumed and ceded reinstatement premiums earned and (3) earned and lost profit commissions. Net negative impact on net income (loss) available (attributable) to RenaissanceRe common shareholders is the sum of (1) net negative impact on underwriting result and (2) redeemable noncontrolling interest.
Net negative impact on the consolidated financial statements
Three months ended September 30, 2021Hurricane IdaEuropean Floods
Other 2021 Catastrophe Events (1)
Aggregate Losses (2)
Total Q3 2021 Weather-Related Large Losses (3)
(in thousands)
Net claims and claims expenses incurred$(784,016)$(388,771)$(33,951)$(65,008)$(1,271,746)
Assumed reinstatement premiums earned157,671 93,914 3,269 — 254,854 
Ceded reinstatement premiums earned(23,318)(16,690)— — (40,008)
Earned profit commissions— 8,075 — — 8,075 
Net negative impact on underwriting result(649,663)(303,472)(30,682)(65,008)(1,048,825)
Redeemable noncontrolling interest211,217 95,078 3,371 12,371 322,037 
Net negative impact on net loss attributable to RenaissanceRe common shareholders$(438,446)$(208,394)$(27,311)$(52,637)$(726,788)
Net negative impact on the segment underwriting results and consolidated combined ratio
Three months ended September 30, 2021Hurricane IdaEuropean Floods
Other 2021 Catastrophe Events (1)
Aggregate Losses (2)
Total Q3 2021 Weather-Related Large Losses (3)
(in thousands, except percentages)
Net negative impact on Property segment underwriting result$(630,868)$(298,156)$(30,682)$(65,008)$(1,024,714)
Net negative impact on Casualty and Specialty segment underwriting result(18,795)(5,316)— — (24,111)
Net negative impact on underwriting result$(649,663)$(303,472)$(30,682)$(65,008)$(1,048,825)
Percentage point impact on consolidated combined ratio43.0 18.8 2.0 4.3 73.8 
(1)“Other 2021 Catastrophe Events” includes the hailstorm in Europe in late June 2021 and the wildfires in California during the third quarter of 2021.
(2)“Aggregate Losses” includes loss estimates associated with certain aggregate loss contracts triggered during 2021 as a result of weather-related catastrophe events.
(3)“Q3 2021 Weather-Related Large Losses” includes Hurricane Ida, the European Floods, Other 2021 Catastrophe Events and the Aggregate Losses described above.
Estimates of net negative impact are based on a review of potential exposures, preliminary discussions with certain counterparties and actuarial modeling techniques. 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 losses from 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.

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Three Drivers of Profit: Underwriting, Fee and Investment Income
Underwriting Results - Property Segment: Q3 2021 Weather-Related Large Losses contributed 140.5 percentage points to the combined ratio
Property Segment
Three months ended September 30,
Q/Q Change
(in thousands, except percentages)20212020
Gross premiums written
$773,692$427,76580.9%
Underwriting loss
(681,929)(206,625)
Underwriting Ratios
Net claims and claim expense ratio - current accident year
180.0 %121.9 %58.1 pts
Net claims and claim expense ratio - prior accident years
(17.9)%(7.5)%(10.4)pts
Net claims and claim expense ratio - calendar year
162.1 %114.4 %47.7 pts
Underwriting expense ratio
21.4 %25.6 %(4.2)pts
Combined ratio
183.5 %140.0 %43.5 pts
•Gross premiums written increased 80.9%, driven by:
–$254.9 million (property catastrophe - $246.6 million, other property - $8.3 million) of reinstatement premiums associated with the Q3 2021 Weather-Related Large Losses, compared to $52.9 million (all within property catastrophe) of reinstatement premiums in the third quarter of 2020.
–Growth in the other property class of business of $190.1 million, or 76.6%, principally as a result of rate improvements driving growth in new and existing business, notably within catastrophe exposed U.S. property excess and surplus lines.
–Property catastrophe class of business gross premiums written increased by $155.8 million, or 86.7%, primarily due to the reinstatement premiums discussed above associated with the Q3 2021 Weather-Related Large Losses. Excluding the impact of the reinstatement premiums in each of the respective periods, gross premiums written in the property catastrophe class of business declined. The decline was largely driven by the non-recurrence of certain bespoke deals written in the third quarter of 2020, and movement in other reinstatement premiums, primarily related to favorable development on prior year losses in the third quarter of 2021.
•Ceded premiums written were $92.6 million, an increase of $43.5 million, or 88.8%. This increase was primarily driven by ceded reinstatement premiums earned of $40.0 million from the Q3 2021 Weather-Related Large Losses.
•The net claims and claim expense ratio for prior accident years reflected net favorable development of 28.3% for property catastrophe and 5.3% for other property in the quarter, primarily related to the 2017 to 2019 accident years.
•Underwriting expense ratio decreased 4.2 percentage points, driven by an improvement of 2.7 percentage points in the acquisition expense ratio primarily from reinstatement premiums associated with the Q3 2021 Weather-Related Large Losses.
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•Underwriting loss of $681.9 million and a combined ratio of 183.5%, primarily driven by the Q3 2021 Weather-Related Large Losses which had a $1.0 billion net negative impact on the Property segment underwriting result and added 140.5 percentage points to the combined ratio.
Underwriting Results - Casualty and Specialty Segment: Grew gross premiums written by 39.9% and reported a combined ratio of 99.6%
Casualty and Specialty Segment

Three months ended September 30,
Q/Q Change
(in thousands, except percentages)
20212020
Gross premiums written
$1,000,488$715,29339.9%
Underwriting income
3,104553
Underwriting Ratios
Net claims and claim expense ratio - current accident year
69.0 %75.7 %(6.7)pts
Net claims and claim expense ratio - prior accident years
(0.2)%(3.1)%2.9 pts
Net claims and claim expense ratio - calendar year
68.8 %72.6 %(3.8)pts
Underwriting expense ratio
30.8 %27.3 %3.5 pts
Combined ratio
99.6 %99.9 %(0.3)pts
•Gross premiums written increased 39.9%, primarily driven by growth in the professional liability, general casualty and other specialty lines of business. This growth was principally driven by increases in new and existing business written in the current and prior periods, combined with rate improvements.
•Net claims and claim expense ratio decreased 3.8 percentage points principally as a result of lower current accident year losses in the third quarter of 2021 as compared to the third quarter of 2020.
–Included in the current accident year net claims and claim expense ratio is 3.5 percentage points related to the Q3 2021 Weather-Related Large Losses.
•The underwriting expense ratio increased 3.5 percentage points driven by an increase in the net acquisition expense ratio, partially offset by a decrease in the operating expense ratio driven by improved operating leverage.
–Increase of 4.0 percentage points in the net acquisition expense ratio principally due to reduced profit commissions in the Company’s mortgage guaranty book in the third quarter of 2020.



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Fee Income: $28.3 million of fee income; impacted by weather-related large losses in 2021 and favorable development on prior year events
Fee Income

Three months ended September 30,
Q/Q Change
(in thousands, except percentages)
20212020
Total management fee income
$23,854 $30,465 $(6,611)
Total performance fee income (loss) (1)
4,481 (12,081)16,562 
Total fee income
$28,335 $18,384 $9,951 
(1)Performance fees are based on the performance of the individual vehicles or products, and may be negative in a particular period if, for example, large losses occur, which can potentially result in no performance fees or the reversal of previously accrued performance fees.
•Total fee income increased $10.0 million due to higher performance fee income in the third quarter of 2021, partially offset by lower management fee income.
–Lower management fee income in the third quarter of 2021 was primarily due to a deferral of management fees related to DaVinciRe Holdings Ltd. as a result of the Q3 2021 Weather-Related Large Losses.
–Higher performance fee income in the third quarter of 2021 resulted from favorable development on prior year events and a lower amount of performance fees available to be reversed in the third quarter of 2021 as compared to the third quarter of 2020.
Investment Results: Performance primarily driven by net realized and unrealized losses in fixed maturity and equity trading portfolios
Investment Results

Three months ended September 30,
Q/Q Change
(in thousands, except percentages)
20212020
Net investment income$78,267$83,543$(5,276)
Net realized and unrealized (losses) gains on investments(42,071)224,208(266,279)
Total investment result
36,196307,751(271,555)
Total investment return - annualized
0.7 %6.2 %(5.5)pts
•Total investment result decreased $271.6 million, when compared to the third quarter of 2020, due to the difference in net realized and unrealized (losses) gains on investments, principally within the fixed maturity and equity investments portfolios.
–Net realized and unrealized losses in the third quarter of 2021 were driven by increasing yields on medium to longer duration U.S. treasuries, an increase in credit spreads in certain fixed maturity investments, and net realized and unrealized losses in equity investments principally in the Company’s strategic investment portfolio.
–Net realized and unrealized gains in the third quarter of 2020 were favorably impacted by the recovery in the financial markets following the disruption associated with the COVID-19 pandemic.
•Managed fixed maturity and short-term investment weighted average yield to maturity was 1.1% and average duration was 3.0 years on total consolidated fixed maturity and short-term investments at fair value of $18.5 billion at September 30, 2021.
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Other Items of Note
•Net loss attributable to redeemable noncontrolling interests was $198.5 million compared to net income attributable to redeemable noncontrolling interests of $19.3 million in the third quarter of 2020, reflecting the impact of the Q3 2021 Weather-Related Large Losses across the Company’s consolidated joint ventures and managed funds in the third quarter of 2021.
•Income tax benefit of $23.6 million compared to $8.2 million in the third quarter of 2020. The increase in income tax benefit is primarily driven by underwriting losses in the Company’s taxable jurisdictions and unrealized investment losses in the Company’s U.S. based operations.
•Net foreign exchange losses of $4.8 million compared to a $17.4 million net foreign exchange gain in the third quarter of 2020. The net foreign exchange loss is primarily driven by losses attributable to third-party investors in RenaissanceRe Medici Fund Ltd. and miscellaneous foreign exchange losses generated by underwriting activities.
•Corporate expenses decreased $37.9 million to $10.2 million, primarily due to the loss on sale of RenaissanceRe UK recorded in the third quarter of 2020.
•Raised gross proceeds of $500.0 million in July 2021 through the issuance of 20,000,000 Depositary Shares, each of which represents a 1/1,000th interest in a share of the Company’s 4.20% Series G Preference Shares, $1.00 par value and $25,000 liquidation preference per share (equivalent to $25.00 per Depositary Share).
•Redeemed all 11,000,000 outstanding 5.375% Series E Preference Shares on August 11, 2021 for $275.0 million plus accrued and unpaid dividends thereon.
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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 (loss) income (attributable) available to RenaissanceRe common shareholders,” “operating (loss) income (attributable) available 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 Tuesday, October 26, 2021 at 10:00 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 frequency and severity of catastrophic and other events the Company covers; the effectiveness of the Company’s claims and claim expense reserving process; the effect of climate change on the Company’s business, including the trend towards increasingly frequent and severe climate events; the highly competitive nature of the Company’s industry, resulting in consolidation of competitors, customers and insurance and reinsurance brokers, and the Company’s reliance on a small and decreasing number of brokers; the Company’s ability to maintain its financial strength ratings; the effect of emerging claims and coverage issues; collection on claimed retrocessional coverage, and new retrocessional reinsurance being available on acceptable terms; 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; the Company’s exposure to credit loss from counterparties; the effect of continued challenging economic conditions throughout the world; the performance of the Company’s investment portfolio and financial market volatility; 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 U.S. tax reform legislation, Organisation for Economic Co-operation and Development or European Union measures and 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 effect of cybersecurity risks, including technology breaches or failure; the
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effects of inflation; 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 ability to attract and retain key executives and employees; the Company’s ability to effectively manage capital on behalf of investors in joint ventures or other entities it manages; foreign currency exchange rate fluctuations; soft reinsurance underwriting market conditions; losses the Company could face from terrorism, political unrest or war; the Company’s ability to determine any impairments taken on its investments; the ability of the Company’s ceding companies and delegated authority counterparties to accurately assess the risks they underwrite; the effect of operational risks, including system or human failures; the Company’s ability to raise capital if necessary; the Company’s ability to comply with covenants in its debt agreements; 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; 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.; the cyclical nature of the reinsurance and insurance industries; adverse legislative developments that reduce the size of the private markets the Company serves or impede their future growth and other political, regulatory or industry initiatives adversely impacting the Company; the Company’s ability to comply with applicable sanctions and foreign corrupt practices laws; the Company’s need to make many estimates and judgments in the preparation of its financial statements; and other factors affecting future results disclosed in RenaissanceRe’s filings with the SEC, including its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Prospectus Supplement dated July 7, 2021.

INVESTOR CONTACT:
RenaissanceRe Holdings Ltd.
Keith McCue
Senior Vice President, Finance & Investor Relations
(441) 239-4830
MEDIA CONTACT:
RenaissanceRe Holdings Ltd.
Keil Gunther
Senior Vice President, Head of Global Marketing & Client Communication
(441) 239-4932
or
Kekst CNC
Dawn Dover
(212) 521-4800


9

RenaissanceRe Holdings Ltd.
Summary Consolidated Statements of Operations
(in thousands of United States Dollars, except per share amounts and percentages)
(Unaudited)
Three months endedNine months ended
September 30,
2021		September 30,
2020		September 30,
2021		September 30,
2020
Revenues
Gross premiums written$1,774,180 $1,143,058 $6,520,780 $4,870,651 
Net premiums written$1,486,440 $899,411 $4,822,815 $3,350,022 
Decrease (increase) in unearned premiums19,825 100,772 (969,924)(426,645)
Net premiums earned1,506,265 1,000,183 3,852,891 2,923,377 
Net investment income78,267 83,543 238,996 272,321 
Net foreign exchange (losses) gains(4,755)17,426 (24,309)4,503 
Equity in earnings of other ventures5,305 5,457 8,479 19,062 
Other income (loss)1,692 1,476 4,449 (4,161)
Net realized and unrealized (losses) gains on investments(42,071)224,208 (196,616)561,891 
Total revenues
1,544,703 1,332,293 3,883,890 3,776,993 
Expenses
Net claims and claim expenses incurred1,798,045 942,030 3,185,117 2,023,256 
Acquisition expenses328,048 215,180 880,872 659,394 
Operational expenses58,997 49,045 172,511 165,583 
Corporate expenses10,196 48,050 30,726 75,939 
Interest expense11,919 11,843 35,664 38,612 
Total expenses
2,207,205 1,266,148 4,304,890 2,962,784 
(Loss) income before taxes(662,502)66,145 (421,000)814,209 
Income tax benefit (expense)23,630 8,244 29,284 (12,785)
Net (loss) income(638,872)74,389 (391,716)801,424 
Net loss (income) attributable to redeemable noncontrolling interests198,495 (19,301)131,801 (236,120)
Net (loss) income attributable to RenaissanceRe(440,377)55,088 (259,915)565,304 
Dividends on preference shares(9,845)(7,289)(24,423)(23,634)
Net (loss) income (attributable) available to RenaissanceRe common shareholders$(450,222)$47,799 $(284,338)$541,670 
Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share – basic$(9.75)$0.94 $(5.94)$11.60 
Net (loss) income (attributable) available to RenaissanceRe common shareholders per common share – diluted$(9.75)$0.94 $(5.94)$11.58 
Operating (loss) income (attributable) available to RenaissanceRe common shareholders per common share - diluted (1)
$(8.98)$(2.64)$(2.77)$1.84 
Average shares outstanding - basic
46,223 50,009 47,988 46,130 
Average shares outstanding - diluted
46,223 50,094 47,988 46,200 
Net claims and claim expense ratio
119.4 %94.2 %82.7 %69.2 %
Underwriting expense ratio
25.7 %26.4 %27.3 %28.2 %
Combined ratio
145.1 %120.6 %110.0 %97.4 %
Return on average common equity - annualized
(28.4)%2.8 %(5.8)%12.0 %
Operating return on average common equity - annualized (1)
(26.1)%(7.7)%(2.7)%2.0 %
(1)     See Comments on Regulation G for a reconciliation of non-GAAP financial measures.
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RenaissanceRe Holdings Ltd.
Summary Consolidated Balance Sheets
(in thousands of United States Dollars, except per share amounts)
September 30,
2021		December 31,
2020
Assets(Unaudited)(Audited)
Fixed maturity investments trading, at fair value$13,839,248 $13,506,503 
Short term investments, at fair value4,667,273 4,993,735 
Equity investments trading, at fair value527,839 702,617 
Other investments, at fair value1,738,737 1,256,948 
Investments in other ventures, under equity method93,344 98,373 
Total investments20,866,441 20,558,176 
Cash and cash equivalents1,440,734 1,736,813 
Premiums receivable4,141,899 2,894,631 
Prepaid reinsurance premiums1,137,556 823,582 
Reinsurance recoverable4,192,758 2,926,010 
Accrued investment income55,620 66,743 
Deferred acquisition costs and value of business acquired893,265 633,521 
Receivable for investments sold322,553 568,293 
Other assets240,491 363,170 
Goodwill and other intangible assets245,015 249,641 
Total assets$33,536,332 $30,820,580 
Liabilities, Noncontrolling Interests and Shareholders’ Equity
Liabilities
Reserve for claims and claim expenses$13,233,244 $10,381,138 
Unearned premiums4,039,546 2,763,599 
Debt1,137,829 1,136,265 
Reinsurance balances payable3,964,137 3,488,352 
Payable for investments purchased718,099 1,132,538 
Other liabilities235,665 970,121 
Total liabilities23,328,520 19,872,013 
Redeemable noncontrolling interests3,458,298 3,388,319 
Shareholders’ Equity
Preference shares750,000 525,000 
Common shares46,540 50,811 
Additional paid-in capital927,862 1,623,206 
Accumulated other comprehensive loss(12,709)(12,642)
Retained earnings5,037,821 5,373,873 
Total shareholders’ equity attributable to RenaissanceRe6,749,514 7,560,248 
Total liabilities, noncontrolling interests and shareholders’ equity$33,536,332 $30,820,580 
Book value per common share$128.91 $138.46 


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RenaissanceRe Holdings Ltd.
Supplemental Financial Data - Segment Information
(in thousands of United States Dollars, except percentages)
(Unaudited)
Three months ended September 30, 2021
PropertyCasualty and SpecialtyOtherTotal
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 $— $1,506,265 
Net claims and claim expenses incurred1,323,678 474,367 — 1,798,045 
Acquisition expenses134,179 193,869 — 328,048 
Operational expenses40,448 18,549 — 58,997 
Underwriting (loss) income$(681,929)$3,104 $— (678,825)
Net investment income78,267 78,267 
Net foreign exchange loss(4,755)(4,755)
Equity in earnings of other ventures5,305 5,305 
Other income1,692 1,692 
Net realized and unrealized loss on investments(42,071)(42,071)
Corporate expenses(10,196)(10,196)
Interest expense(11,919)(11,919)
Loss before taxes and redeemable noncontrolling interests(662,502)
Income tax benefit23,630 23,630 
Net loss attributable to redeemable noncontrolling interests198,495 198,495 
Dividends on preference shares(9,845)(9,845)
Net loss attributable to RenaissanceRe common shareholders$(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 year180.0 %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 year162.1 %68.8 %119.4 %
Underwriting expense ratio21.4 %30.8 %25.7 %
Combined ratio183.5 %99.6 %145.1 %
Three months ended September 30, 2020
PropertyCasualty and SpecialtyOtherTotal
Gross premiums written$427,765 $715,293 $— $1,143,058 
Net premiums written$378,708 $520,703 $— $899,411 
Net premiums earned$516,623 $483,560 $— $1,000,183 
Net claims and claim expenses incurred590,978 351,052 — 942,030 
Acquisition expenses98,545 116,636 — 215,180 
Operational expenses33,725 15,319 — 49,045 
Underwriting (loss) income$(206,625)$553 $— (206,072)
Net investment income83,543 83,543 
Net foreign exchange gains17,426 17,426 
Equity in earnings of other ventures5,457 5,457 
Other income1,476 1,476 
Net realized and unrealized gains on investments224,208 224,208 
Corporate expenses(48,050)(48,050)
Interest expense(11,843)(11,843)
Income before taxes and redeemable noncontrolling interests66,145 
Income tax benefit8,244 8,244 
Net income attributable to redeemable noncontrolling interests(19,301)(19,301)
Dividends on preference shares(7,289)(7,289)
Net income available to RenaissanceRe common shareholders$47,799 
Net claims and claim expenses incurred – current accident year$629,827 $366,080 $— $995,907 
Net claims and claim expenses incurred – prior accident years(38,849)(15,028)— (53,877)
Net claims and claim expenses incurred – total$590,978 $351,052 $— $942,030 
Net claims and claim expense ratio – current accident year121.9 %75.7 %99.6 %
Net claims and claim expense ratio – prior accident years(7.5)%(3.1)%(5.4)%
Net claims and claim expense ratio – calendar year114.4 %72.6 %94.2 %
Underwriting expense ratio25.6 %27.3 %26.4 %
Combined ratio140.0 %99.9 %120.6 %
12

RenaissanceRe Holdings Ltd.
Supplemental Financial Data - Segment Information
(in thousands of United States Dollars, except percentages)
(Unaudited)
Nine months ended September 30, 2021
PropertyCasualty and SpecialtyOtherTotal
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 $— $3,852,891 
Net claims and claim expenses incurred1,919,660 1,265,457 — 3,185,117 
Acquisition expenses356,171 524,701 — 880,872 
Operational expenses114,710 57,801 — 172,511 
Underwriting (loss) income$(408,602)$22,993 $— (385,609)
Net investment income238,996 238,996 
Net foreign exchange losses(24,309)(24,309)
Equity in earnings of other ventures8,479 8,479 
Other income4,449 4,449 
Net realized and unrealized losses on investments(196,616)(196,616)
Corporate expenses(30,726)(30,726)
Interest expense(35,664)(35,664)
Loss before taxes and redeemable noncontrolling interests(421,000)
Income tax benefit29,284 29,284 
Net loss attributable to redeemable noncontrolling interests131,801 131,801 
Dividends on preference shares(24,423)(24,423)
Net loss attributable to RenaissanceRe common shareholders$(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 year107.1 %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 year96.9 %67.6 %82.7 %
Underwriting expense ratio23.7 %31.2 %27.3 %
Combined ratio120.6 %98.8 %110.0 %
Nine months ended September 30, 2020
PropertyCasualty and SpecialtyOtherTotal
Gross premiums written$2,690,827 $2,179,824 $— $4,870,651 
Net premiums written$1,757,427 $1,592,595 $— $3,350,022 
Net premiums earned$1,429,074 $1,494,303 $— $2,923,377 
Net claims and claim expenses incurred899,729 1,123,527 — 2,023,256 
Acquisition expenses278,668 380,726 — 659,394 
Operational expenses109,388 56,195 — 165,583 
Underwriting income (loss)$141,289 $(66,145)$— 75,144 
Net investment income272,321 272,321 
Net foreign exchange gains4,503 4,503 
Equity in earnings of other ventures19,062 19,062 
Other loss(4,161)(4,161)
Net realized and unrealized gains on investments561,891 561,891 
Corporate expenses(75,939)(75,939)
Interest expense(38,612)(38,612)
Income before taxes and redeemable noncontrolling interests814,209 
Income tax expense(12,785)(12,785)
Net income attributable to redeemable noncontrolling interests(236,120)(236,120)
Dividends on preference shares(23,634)(23,634)
Net income available to RenaissanceRe common shareholders$541,670 
Net claims and claim expenses incurred – current accident year$931,285 $1,147,354 $— $2,078,639 
Net claims and claim expenses incurred – prior accident years(31,556)(23,827)— (55,383)
Net claims and claim expenses incurred – total$899,729 $1,123,527 $— $2,023,256 
Net claims and claim expense ratio – current accident year65.2 %76.8 %71.1 %
Net claims and claim expense ratio – prior accident years(2.2)%(1.6)%(1.9)%
Net claims and claim expense ratio – calendar year63.0 %75.2 %69.2 %
Underwriting expense ratio27.1 %29.2 %28.2 %
Combined ratio90.1 %104.4 %97.4 %
13

RenaissanceRe Holdings Ltd.
Supplemental Financial Data - Gross Premiums Written
(in thousands of United States Dollars)
(Unaudited)
Three months endedNine months ended
September 30,
2021		September 30,
2020		September 30,
2021		September 30,
2020
Property Segment
Catastrophe$335,493 $179,689 $2,227,941 $1,827,665 
Other property438,199 248,076 1,346,126 863,162 
Property segment gross premiums written
$773,692 $427,765 $3,574,067 $2,690,827 
Casualty and Specialty Segment
General casualty (1)
$346,754 $260,265 $976,610 $713,598 
Professional liability (2)
329,848 175,459 950,607 628,683 
Financial lines (3)
128,586 143,455 359,147 392,169 
Other (4)
195,300 136,114 660,349 445,374 
Casualty and Specialty segment gross premiums written
$1,000,488 $715,293 $2,946,713 $2,179,824 
(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.
14

RenaissanceRe Holdings Ltd.
Supplemental Financial Data - Total Investment Result
(in thousands of United States Dollars, except percentages)
(Unaudited)
Three months endedNine months ended
September 30,
2021		September 30,
2020		September 30,
2021		September 30,
2020
Fixed maturity investments trading$56,825 $68,022 $179,268 $211,303 
Short term investments514 1,611 1,869 19,752 
Equity investments trading1,823 1,559 4,940 4,776 
Other investments
Catastrophe bonds17,184 13,626 48,333 41,284 
Other7,571 2,598 20,711 5,334 
Cash and cash equivalents(38)441 223 2,782 
83,879 87,857 255,344 285,231 
Investment expenses(5,612)(4,314)(16,348)(12,910)
Net investment income78,267 83,543 238,996 272,321 
Net realized and unrealized (losses) gains on:
Fixed maturity investments trading, net of investments-related derivatives (1)
(31,424)78,348 (205,336)502,280 
Equity investments trading, net of investments-related derivatives (1)
(21,680)119,622 (24,036)81,246 
Other investments
Catastrophe bonds(5,994)12,611 (25,075)2,711 
Other17,027 13,627 57,831 (24,346)
Net realized and unrealized (losses) gains on investments(42,071)224,208 (196,616)561,891 
Total investment result$36,196 $307,751 $42,380 $834,212 
Total investment return - annualized0.7 %6.2 %0.3 %5.8 %
(1)    Net realized and unrealized (losses) gains on fixed maturity investments trading includes the impacts of interest rate futures, interest rate swaps, credit default swaps and total return swaps. Net realized and unrealized (losses) gains on equity investments trading includes the impact of equity futures.
15

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 the industry. These measures may not, however, be comparable to similarly titled measures used by companies 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 (Loss) Income (Attributable) Available to RenaissanceRe Common Shareholders and Operating Return on Average Common Equity - Annualized
The Company uses “operating (loss) income (attributable) available 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 (loss) income (attributable) available to RenaissanceRe common shareholders” as used herein differs from “net (loss) income 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 (loss) income (attributable) available 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 (loss) income (attributable) available to RenaissanceRe common shareholders” to calculate “operating (loss) income (attributable) available 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 (loss) income attributable to RenaissanceRe common shareholders to “operating (loss) income (attributable) available to RenaissanceRe common shareholders”; (2) net (loss) income attributable to RenaissanceRe common shareholders per common share - diluted to “operating (loss) income (attributable) available 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.
16

Three months endedNine months ended
(in thousands of United States Dollars, except per share amounts and percentages)September 30,
2021		September 30,
2020		September 30,
2021		September 30,
2020
Net (loss) income (attributable) available to RenaissanceRe common shareholders$(450,222)$47,799 $(284,338)$541,670 
Adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds36,077 (211,597)171,541 (559,180)
Adjustment for net foreign exchange losses (gains)4,755 (17,426)24,309 (4,503)
Adjustment for corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe UK— 33,916 135 40,618 
Adjustment for income tax expense (benefit) (1)
286 5,058 (7,893)22,140 
Adjustment for net (loss) income attributable to redeemable noncontrolling interests (2)
(5,434)10,526 (35,847)51,017 
Operating (loss) income (attributable) available to RenaissanceRe common shareholders$(414,538)$(131,724)$(132,093)$91,762 
Net income available to RenaissanceRe common shareholders per common share - diluted$(9.75)$0.94 $(5.94)$11.58 
Adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds0.78 (4.22)3.57 (12.10)
Adjustment for net foreign exchange losses (gains)0.10 (0.35)0.51 (0.10)
Adjustment for corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe UK— 0.68 — 0.88 
Adjustment for income tax expense (benefit) (1)
0.01 0.10 (0.16)0.48 
Adjustment for net (loss) income attributable to redeemable noncontrolling interests (2)
(0.12)0.21 (0.75)1.10 
Operating (loss) income (attributable) available to RenaissanceRe common shareholders per common share - diluted$(8.98)$(2.64)$(2.77)$1.84 
Return on average common equity - annualized(28.4)%2.8 %(5.8)%12.0 %
Adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds2.3 %(12.4)%3.5 %(12.4)%
Adjustment for net foreign exchange losses (gains)0.3 %(1.0)%0.5 %(0.1)%
Adjustment for corporate expenses associated with the acquisition of TMR and the subsequent sale of RenaissanceRe UK— %2.0 %— %0.9 %
Adjustment for income tax expense (benefit) (1)
— %0.3 %(0.2)%0.5 %
Adjustment for net (loss) income attributable to redeemable noncontrolling interests (2)
(0.3)%0.6 %(0.7)%1.1 %
Operating return on average common equity - annualized
(26.1)%(7.7)%(2.7)%2.0 %
(1)    Adjustment for income tax expense (benefit) represents the income tax (expense) benefit associated with the adjustments to net income available to RenaissanceRe common shareholders. The income tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors.
(2)    Represents the portion of these adjustments that are attributable to the Company's redeemable noncontrolling interests, including the income tax impact of those adjustments.
17

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,
2021		June 30,
2021		March 31,
2021		December 31,
2020		September 30,
2020
Book value per common share
$128.91 $139.35 $131.15 $138.46 $135.13 
Adjustment for goodwill and other intangibles (1)
(5.67)(5.60)(5.42)(5.37)(5.53)
Tangible book value per common share
123.24 133.75 125.73 133.09 129.60 
Adjustment for accumulated dividends
23.16 22.80 22.44 22.08 21.73 
Tangible book value per common share plus accumulated dividends
$146.40 $156.55 $148.17 $155.17 $151.33 
Quarterly change in book value per common share
(7.5)%6.3 %(5.3)%2.5 %0.6 %
Quarterly change in tangible book value per common share plus change in accumulated dividends
(7.6)%6.7 %(5.3)%3.0 %1.0 %
Year to date change in book value per common share(6.9)%0.6 %(5.3)%14.9 %12.1 %
Year to date change in tangible book value per common share plus change in accumulated dividends
(6.6)%1.0 %(5.3)%17.9 %14.6 %
(1)     At September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and September 30, 2020, goodwill and other intangibles included $19.0 million, $22.4 million, $22.7 million, $23.0 million, and $23.2 million, respectively, of goodwill and other intangibles included in investments in other ventures, under equity method.



18