|
Bermuda
|
98-0141974
|
(State or Other Jurisdiction of
Incorporation or Organization)
|
(I.R.S. Employer
Identification Number)
|
Title of each class
|
Trading
symbol
|
Name of each exchange on which registered
|
Common Shares, Par Value $1.00 per share
|
RNR
|
New York Stock Exchange
|
Series C 6.08% Preference Shares, Par Value $1.00 per share
|
RNR PRC
|
New York Stock Exchange
|
Series E 5.375% Preference Shares, Par Value $1.00 per share
|
RNR PRE
|
New York Stock Exchange
|
Depositary Shares, each representing a 1/1,000th interest in a Series F 5.750% Preference Share, Par Value $1.00 per share
|
RNR PRF
|
New York Stock Exchange
|
|
|
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Page
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ITEM 1.
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ITEM 2.
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ITEM 3.
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ITEM 4.
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ITEM 1.
|
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ITEM 1A.
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ITEM 2.
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ITEM 3.
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ITEM 4.
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ITEM 5.
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ITEM 6.
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•
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the frequency and severity of catastrophic and other events we cover;
|
•
|
the effectiveness of our claims and claim expense reserving process;
|
•
|
our ability to maintain our financial strength ratings;
|
•
|
the effect of climate change on our business, including the trend towards increasingly frequent and severe climate events;
|
•
|
collection on claimed retrocessional coverage, and new retrocessional reinsurance being available on acceptable terms and providing the coverage that we intended to obtain;
|
•
|
the effect of emerging claims and coverage issues;
|
•
|
the effects of United States (“U.S.”) tax reform legislation and possible future tax reform legislation and regulations, including changes to the tax treatment of our shareholders or investors in our joint ventures or other entities we manage;
|
•
|
soft reinsurance underwriting market conditions;
|
•
|
our reliance on a small and decreasing number of reinsurance brokers and other distribution services for the preponderance of our revenue;
|
•
|
our exposure to credit loss from counterparties in the normal course of business;
|
•
|
the effect of continued challenging economic conditions throughout the world;
|
•
|
a contention by the Internal Revenue Service (the “IRS”) that Renaissance Reinsurance Ltd. (“Renaissance Reinsurance”), or any of our other Bermuda subsidiaries, is subject to taxation in the U.S.;
|
•
|
the success of any of our strategic investments or acquisitions, including our ability to manage our operations as our product and geographical diversity increases;
|
•
|
our ability to retain our key senior officers and to attract or retain the executives and employees necessary to manage our business;
|
•
|
the performance of our investment portfolio;
|
•
|
losses we could face from terrorism, political unrest or war;
|
•
|
the effect of cybersecurity risks, including technology breaches or failure, on our business;
|
•
|
our ability to successfully implement our business strategies and initiatives;
|
•
|
our ability to determine the impairments taken on our investments;
|
•
|
the effects of inflation;
|
•
|
the ability of our ceding companies and delegated authority counterparties to accurately assess the risks they underwrite;
|
•
|
the effect of operational risks, including system or human failures;
|
•
|
our ability to effectively manage capital on behalf of investors in joint ventures or other entities we manage;
|
•
|
foreign currency exchange rate fluctuations;
|
•
|
our ability to raise capital if necessary;
|
•
|
our ability to comply with covenants in our debt agreements;
|
•
|
changes to the regulatory systems under which we operate, including as a result of increased global regulation of the insurance and reinsurance industries;
|
•
|
changes in Bermuda laws and regulations and the political environment in Bermuda;
|
•
|
our dependence on the ability of our operating subsidiaries to declare and pay dividends;
|
•
|
aspects of our corporate structure that may discourage third-party takeovers and other transactions;
|
•
|
the cyclical nature of the reinsurance and insurance industries;
|
•
|
adverse legislative developments that reduce the size of the private markets we serve or impede their future growth;
|
•
|
consolidation of competitors, customers and insurance and reinsurance brokers;
|
•
|
the effect on our business of the highly competitive nature of our industry, including the effect of new entrants to, competing products for and consolidation in the (re)insurance industry;
|
•
|
other political, regulatory or industry initiatives adversely impacting us;
|
•
|
increasing barriers to free trade and the free flow of capital;
|
•
|
our ability to comply with applicable sanctions and foreign corrupt practices laws;
|
•
|
international restrictions on the writing of reinsurance by foreign companies and government intervention in the natural catastrophe market;
|
•
|
the effect of Organisation for Economic Co-operation and Development (the “OECD”) or European Union (“EU”) measures to increase our taxes and reporting requirements;
|
•
|
the effect of the vote by the United Kingdom (the “U.K.”) to leave the EU;
|
•
|
changes in regulatory regimes and accounting rules that may impact financial results irrespective of business operations;
|
•
|
our need to make many estimates and judgments in the preparation of our financial statements;
|
•
|
risks that the ongoing integration of the TMR Group Entities (as defined herein) disrupts or distracts from current plans and operations; and
|
•
|
our ability to recognize the benefits of the TMR Stock Purchase (as defined herein).
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
Assets
|
(Unaudited)
|
|
(Audited)
|
||||
Fixed maturity investments trading, at fair value – amortized cost $10,324,318 at June 30, 2019 (December 31, 2018 – $8,163,962)
|
$
|
10,479,666
|
|
|
$
|
8,088,870
|
|
Short term investments, at fair value
|
4,579,171
|
|
|
2,586,520
|
|
||
Equity investments trading, at fair value
|
273,646
|
|
|
310,252
|
|
||
Other investments, at fair value
|
955,437
|
|
|
784,933
|
|
||
Investments in other ventures, under equity method
|
100,396
|
|
|
115,172
|
|
||
Total investments
|
16,388,316
|
|
|
11,885,747
|
|
||
Cash and cash equivalents
|
670,626
|
|
|
1,107,922
|
|
||
Premiums receivable
|
3,140,688
|
|
|
1,537,188
|
|
||
Prepaid reinsurance premiums
|
1,158,534
|
|
|
616,185
|
|
||
Reinsurance recoverable
|
2,865,150
|
|
|
2,372,221
|
|
||
Accrued investment income
|
76,949
|
|
|
51,311
|
|
||
Deferred acquisition costs and value of business acquired
|
780,756
|
|
|
476,661
|
|
||
Receivable for investments sold
|
395,787
|
|
|
256,416
|
|
||
Other assets
|
344,938
|
|
|
135,127
|
|
||
Goodwill and other intangible assets
|
265,217
|
|
|
237,418
|
|
||
Total assets
|
$
|
26,086,961
|
|
|
$
|
18,676,196
|
|
Liabilities, Noncontrolling Interests and Shareholders’ Equity
|
|
|
|
||||
Liabilities
|
|
|
|
||||
Reserve for claims and claim expenses
|
$
|
8,484,848
|
|
|
$
|
6,076,271
|
|
Unearned premiums
|
3,362,520
|
|
|
1,716,021
|
|
||
Debt
|
1,382,890
|
|
|
991,127
|
|
||
Reinsurance balances payable
|
3,280,048
|
|
|
1,902,056
|
|
||
Payable for investments purchased
|
554,696
|
|
|
380,332
|
|
||
Other liabilities
|
396,651
|
|
|
513,609
|
|
||
Total liabilities
|
17,461,653
|
|
|
11,579,416
|
|
||
Commitments and Contingencies
|
|
|
|
|
|
||
Redeemable noncontrolling interests
|
2,712,466
|
|
|
2,051,700
|
|
||
Shareholders’ Equity
|
|
|
|
||||
Preference shares: $1.00 par value – 16,010,000 shares issued and outstanding at June 30, 2019 (December 31, 2018 – 16,010,000)
|
650,000
|
|
|
650,000
|
|
||
Common shares: $1.00 par value – 44,162,192 shares issued and outstanding at June 30, 2019 (December 31, 2018 – 42,207,390)
|
44,162
|
|
|
42,207
|
|
||
Additional paid-in capital
|
552,210
|
|
|
296,099
|
|
||
Accumulated other comprehensive loss
|
(3,869
|
)
|
|
(1,433
|
)
|
||
Retained earnings
|
4,670,339
|
|
|
4,058,207
|
|
||
Total shareholders’ equity attributable to RenaissanceRe
|
5,912,842
|
|
|
5,045,080
|
|
||
Total liabilities, noncontrolling interests and shareholders’ equity
|
$
|
26,086,961
|
|
|
$
|
18,676,196
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Gross premiums written
|
$
|
1,476,908
|
|
|
$
|
977,343
|
|
|
$
|
3,041,203
|
|
|
$
|
2,136,995
|
|
Net premiums written
|
$
|
1,022,965
|
|
|
$
|
604,509
|
|
|
$
|
1,951,996
|
|
|
$
|
1,267,553
|
|
Increase in unearned premiums
|
(111,463
|
)
|
|
(175,124
|
)
|
|
(490,466
|
)
|
|
(397,886
|
)
|
||||
Net premiums earned
|
911,502
|
|
|
429,385
|
|
|
1,461,530
|
|
|
869,667
|
|
||||
Net investment income
|
115,832
|
|
|
71,356
|
|
|
197,294
|
|
|
127,832
|
|
||||
Net foreign exchange gains (losses)
|
9,309
|
|
|
(10,687
|
)
|
|
6,463
|
|
|
(6,930
|
)
|
||||
Equity in earnings of other ventures
|
6,812
|
|
|
5,826
|
|
|
11,473
|
|
|
6,683
|
|
||||
Other income (loss)
|
922
|
|
|
1,225
|
|
|
4,093
|
|
|
(17
|
)
|
||||
Net realized and unrealized gains (losses) on investments
|
194,003
|
|
|
(17,901
|
)
|
|
364,648
|
|
|
(100,045
|
)
|
||||
Total revenues
|
1,238,380
|
|
|
479,204
|
|
|
2,045,501
|
|
|
897,190
|
|
||||
Expenses
|
|
|
|
|
|
|
|
||||||||
Net claims and claim expenses incurred
|
453,373
|
|
|
60,167
|
|
|
680,408
|
|
|
231,870
|
|
||||
Acquisition expenses
|
227,482
|
|
|
105,052
|
|
|
351,433
|
|
|
202,763
|
|
||||
Operational expenses
|
59,814
|
|
|
37,543
|
|
|
104,747
|
|
|
78,815
|
|
||||
Corporate expenses
|
23,847
|
|
|
8,301
|
|
|
62,636
|
|
|
15,034
|
|
||||
Interest expense
|
15,534
|
|
|
11,768
|
|
|
27,288
|
|
|
23,535
|
|
||||
Total expenses
|
780,050
|
|
|
222,831
|
|
|
1,226,512
|
|
|
552,017
|
|
||||
Income before taxes
|
458,330
|
|
|
256,373
|
|
|
818,989
|
|
|
345,173
|
|
||||
Income tax expense
|
(9,475
|
)
|
|
(4,506
|
)
|
|
(17,006
|
)
|
|
(1,099
|
)
|
||||
Net income
|
448,855
|
|
|
251,867
|
|
|
801,983
|
|
|
344,074
|
|
||||
Net income attributable to redeemable noncontrolling interests
|
(71,812
|
)
|
|
(54,483
|
)
|
|
(142,034
|
)
|
|
(84,382
|
)
|
||||
Net income attributable to RenaissanceRe
|
377,043
|
|
|
197,384
|
|
|
659,949
|
|
|
259,692
|
|
||||
Dividends on preference shares
|
(9,189
|
)
|
|
(5,596
|
)
|
|
(18,378
|
)
|
|
(11,191
|
)
|
||||
Net income available to RenaissanceRe common shareholders
|
$
|
367,854
|
|
|
$
|
191,788
|
|
|
$
|
641,571
|
|
|
$
|
248,501
|
|
Net income available to RenaissanceRe common shareholders per common share – basic
|
$
|
8.36
|
|
|
$
|
4.78
|
|
|
$
|
14.82
|
|
|
$
|
6.21
|
|
Net income available to RenaissanceRe common shareholders per common share – diluted
|
$
|
8.35
|
|
|
$
|
4.78
|
|
|
$
|
14.81
|
|
|
$
|
6.21
|
|
Dividends per common share
|
$
|
0.34
|
|
|
$
|
0.33
|
|
|
$
|
0.68
|
|
|
$
|
0.66
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
||||||||
Comprehensive income
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
448,855
|
|
|
$
|
251,867
|
|
|
$
|
801,983
|
|
|
$
|
344,074
|
|
Change in net unrealized gains on investments, net of tax
|
1,309
|
|
|
(1,295
|
)
|
|
1,272
|
|
|
(1,325
|
)
|
||||
Foreign currency translation adjustments, net of tax
|
(3,708
|
)
|
|
—
|
|
|
(3,708
|
)
|
|
—
|
|
||||
Comprehensive income
|
446,456
|
|
|
250,572
|
|
|
799,547
|
|
|
342,749
|
|
||||
Net income attributable to redeemable noncontrolling interests
|
(71,812
|
)
|
|
(54,483
|
)
|
|
(142,034
|
)
|
|
(84,382
|
)
|
||||
Comprehensive income attributable to redeemable noncontrolling interests
|
(71,812
|
)
|
|
(54,483
|
)
|
|
(142,034
|
)
|
|
(84,382
|
)
|
||||
Comprehensive income attributable to RenaissanceRe
|
$
|
374,644
|
|
|
$
|
196,089
|
|
|
$
|
657,513
|
|
|
$
|
258,367
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
June 30,
2019 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
||||||||
Preference shares
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
$
|
650,000
|
|
|
$
|
400,000
|
|
|
$
|
650,000
|
|
|
$
|
400,000
|
|
Issuance of shares
|
—
|
|
|
250,000
|
|
|
—
|
|
|
250,000
|
|
||||
Ending balance
|
650,000
|
|
|
650,000
|
|
|
650,000
|
|
|
650,000
|
|
||||
Common shares
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
44,159
|
|
|
40,246
|
|
|
42,207
|
|
|
40,024
|
|
||||
Issuance of shares
|
—
|
|
|
—
|
|
|
1,739
|
|
|
—
|
|
||||
Exercise of options and issuance of restricted stock awards
|
3
|
|
|
17
|
|
|
216
|
|
|
239
|
|
||||
Ending balance
|
44,162
|
|
|
40,263
|
|
|
44,162
|
|
|
40,263
|
|
||||
Additional paid-in capital
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
543,889
|
|
|
38,552
|
|
|
296,099
|
|
|
37,355
|
|
||||
Issuance of shares
|
—
|
|
|
—
|
|
|
248,259
|
|
|
—
|
|
||||
Offering expenses
|
—
|
|
|
(8,498
|
)
|
|
—
|
|
|
(8,498
|
)
|
||||
Change in redeemable noncontrolling interests
|
(213
|
)
|
|
271
|
|
|
(216
|
)
|
|
327
|
|
||||
Exercise of options and issuance of restricted stock awards
|
8,534
|
|
|
4,769
|
|
|
8,068
|
|
|
5,910
|
|
||||
Ending balance
|
552,210
|
|
|
35,094
|
|
|
552,210
|
|
|
35,094
|
|
||||
Accumulated other comprehensive loss
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
(1,470
|
)
|
|
194
|
|
|
(1,433
|
)
|
|
224
|
|
||||
Change in net unrealized gains on investments, net of tax
|
1,309
|
|
|
(1,295
|
)
|
|
1,272
|
|
|
(1,325
|
)
|
||||
Foreign currency translation adjustments, net of tax
|
(3,708
|
)
|
|
—
|
|
|
(3,708
|
)
|
|
—
|
|
||||
Ending balance
|
(3,869
|
)
|
|
(1,101
|
)
|
|
(3,869
|
)
|
|
(1,101
|
)
|
||||
Retained earnings
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
4,317,455
|
|
|
3,957,261
|
|
|
4,058,207
|
|
|
3,913,772
|
|
||||
Net income
|
448,855
|
|
|
251,867
|
|
|
801,983
|
|
|
344,074
|
|
||||
Net income attributable to redeemable noncontrolling interests
|
(71,812
|
)
|
|
(54,483
|
)
|
|
(142,034
|
)
|
|
(84,382
|
)
|
||||
Dividends on common shares
|
(14,970
|
)
|
|
(13,244
|
)
|
|
(29,439
|
)
|
|
(26,468
|
)
|
||||
Dividends on preference shares
|
(9,189
|
)
|
|
(5,596
|
)
|
|
(18,378
|
)
|
|
(11,191
|
)
|
||||
Ending balance
|
4,670,339
|
|
|
4,135,805
|
|
|
4,670,339
|
|
|
4,135,805
|
|
||||
Total shareholders’ equity
|
$
|
5,912,842
|
|
|
$
|
4,860,061
|
|
|
$
|
5,912,842
|
|
|
$
|
4,860,061
|
|
|
Six months ended
|
||||||
|
June 30,
2019 |
|
June 30,
2018 |
||||
Cash flows provided by operating activities
|
|
|
|
||||
Net income
|
$
|
801,983
|
|
|
$
|
344,074
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
||||
Amortization, accretion and depreciation
|
(16,529
|
)
|
|
24,741
|
|
||
Equity in undistributed earnings of other ventures
|
5,380
|
|
|
(7,262
|
)
|
||
Net realized and unrealized (gains) losses on investments
|
(364,648
|
)
|
|
100,045
|
|
||
Net unrealized gains included in net investment income
|
(2,181
|
)
|
|
(8,714
|
)
|
||
Change in:
|
|
|
|
||||
Premiums receivable
|
(965,765
|
)
|
|
(655,025
|
)
|
||
Prepaid reinsurance premiums
|
(402,551
|
)
|
|
(391,955
|
)
|
||
Reinsurance recoverable
|
55,812
|
|
|
131,639
|
|
||
Deferred acquisition costs
|
1,911
|
|
|
(84,604
|
)
|
||
Reserve for claims and claim expenses
|
1,061
|
|
|
(378,063
|
)
|
||
Unearned premiums
|
882,888
|
|
|
789,841
|
|
||
Reinsurance balances payable
|
1,107,889
|
|
|
1,095,944
|
|
||
Other
|
(321,281
|
)
|
|
(611,550
|
)
|
||
Net cash provided by operating activities
|
783,969
|
|
|
349,111
|
|
||
Cash flows used in investing activities
|
|
|
|
||||
Proceeds from sales and maturities of fixed maturity investments trading
|
9,405,348
|
|
|
4,813,208
|
|
||
Purchases of fixed maturity investments trading
|
(9,230,000
|
)
|
|
(5,014,011
|
)
|
||
Net sales (purchases) of equity investments trading
|
125,597
|
|
|
(34,298
|
)
|
||
Net purchases of short term investments
|
(1,972,717
|
)
|
|
(1,062,422
|
)
|
||
Net purchases of other investments
|
(133,889
|
)
|
|
(111,921
|
)
|
||
Net purchases of investments in other ventures
|
(2,249
|
)
|
|
(20,952
|
)
|
||
Return of investment from investment in other ventures
|
11,250
|
|
|
8,464
|
|
||
Net purchase of other assets
|
(4,108
|
)
|
|
—
|
|
||
Net purchase of the TMR Group Entities
|
(276,206
|
)
|
|
—
|
|
||
Net cash used in investing activities
|
(2,076,974
|
)
|
|
(1,421,932
|
)
|
||
Cash flows provided by financing activities
|
|
|
|
||||
Dividends paid – RenaissanceRe common shares
|
(29,439
|
)
|
|
(26,468
|
)
|
||
Dividends paid – preference shares
|
(18,378
|
)
|
|
(11,191
|
)
|
||
Issuance of debt, net of expenses
|
396,411
|
|
|
—
|
|
||
Issuance of preference shares, net of expenses
|
—
|
|
|
242,371
|
|
||
Net third party redeemable noncontrolling interest share transactions
|
514,732
|
|
|
64,534
|
|
||
Taxes paid on withholding shares
|
(7,083
|
)
|
|
(7,044
|
)
|
||
Net cash provided by financing activities
|
856,243
|
|
|
262,202
|
|
||
Effect of exchange rate changes on foreign currency cash
|
(534
|
)
|
|
(2,501
|
)
|
||
Net decrease in cash and cash equivalents
|
(437,296
|
)
|
|
(813,120
|
)
|
||
Cash and cash equivalents, beginning of period
|
1,107,922
|
|
|
1,361,592
|
|
||
Cash and cash equivalents, end of period
|
$
|
670,626
|
|
|
$
|
548,472
|
|
•
|
On March 22, 2019, the Company’s wholly owned subsidiary, RenaissanceRe Specialty Holdings (UK) Limited, completed its previously announced purchase of all of the share capital of Tokio Millennium Re AG (now known as RenaissanceRe Europe AG) (“RenaissanceRe Europe”), Tokio Millennium Re (UK) Limited (now known as RenaissanceRe (UK) Limited) (“RenaissanceRe UK”), and their respective subsidiaries (collectively, the “TMR Group Entities”) pursuant to a Stock Purchase Agreement by and among the Company, Tokio Marine & Nichido Fire Insurance Co. Ltd. (“Tokio”) and, with respect to certain sections only, Tokio Marine Holdings, Inc. entered into on October 30, 2018 (the “TMR Stock Purchase Agreement”) (the “TMR Stock Purchase”). See “Note 3. Acquisition of Tokio Millennium Re” for additional information regarding the TMR Stock Purchase.
|
•
|
Renaissance Reinsurance, a Bermuda-domiciled reinsurance company, is the Company’s principal reinsurance subsidiary and provides property, casualty and specialty reinsurance coverages to insurers and reinsurers on a worldwide basis.
|
•
|
Renaissance Reinsurance U.S. Inc. (“Renaissance Reinsurance U.S.”) is a reinsurance company domiciled in the state of Maryland that provides property, casualty and specialty reinsurance coverages to insurers and reinsurers, primarily in the Americas.
|
•
|
RenaissanceRe Underwriting Managers U.S. LLC, a specialty reinsurance agency domiciled in the state of Connecticut, provides specialty treaty reinsurance solutions on both a quota share and excess of loss basis; and writes business on behalf of RenaissanceRe Specialty U.S. Ltd. (“RenaissanceRe Specialty U.S.”), a Bermuda-domiciled reinsurer, which operates subject to U.S. federal income tax, and RenaissanceRe Syndicate 1458 (“Syndicate 1458”).
|
•
|
Syndicate 1458 is the Company’s Lloyd’s syndicate. RenaissanceRe Corporate Capital (UK) Limited (“RenaissanceRe CCL”), a wholly owned subsidiary of RenaissanceRe, is Syndicate 1458’s sole corporate member and RenaissanceRe Syndicate Management Ltd. (“RSML”), a wholly owned subsidiary of RenaissanceRe, is the managing agent for Syndicate 1458.
|
•
|
RenaissanceRe Europe, a Swiss-domiciled reinsurance company, provides property, casualty and specialty reinsurance coverages to insurers and reinsurers on a worldwide basis.
|
•
|
RenaissanceRe UK, a U.K.-domiciled reinsurance company in run-off, provided property, casualty and specialty reinsurance coverages on a worldwide basis. RenaissanceRe UK was placed into run-off effective July 1, 2015, from which date all new and renewal business was written by the U.K. branch of RenaissanceRe Europe.
|
•
|
The Company also manages property, casualty and specialty reinsurance business written on behalf of joint ventures, which include Top Layer Reinsurance Ltd. (“Top Layer Re”), recorded under the equity method of accounting, and DaVinci Reinsurance Ltd. (“DaVinci”). Because the Company owns a noncontrolling equity interest in, but controls a majority of the outstanding voting power of DaVinci’s parent, DaVinciRe Holdings Ltd. (“DaVinciRe”), the results of DaVinci and DaVinciRe are consolidated in the Company’s consolidated financial statements and all significant intercompany transactions have been eliminated. Redeemable noncontrolling interest - DaVinciRe represents the interests of external parties with respect to the net income and shareholders’ equity of DaVinciRe. Renaissance Underwriting Managers, Ltd. (“RUM”), a wholly owned subsidiary of RenaissanceRe,
|
•
|
RenaissanceRe Medici Fund Ltd. (“Medici”) is an exempted fund, incorporated under the laws of Bermuda. Medici’s objective is to seek to invest substantially all of its assets in various insurance based investment instruments that have returns primarily tied to property catastrophe risk. Third-party investors have subscribed for a portion of the participating, non-voting common shares of Medici. Because the Company owns a noncontrolling equity interest in, but controls a majority of the outstanding voting power of Medici’s parent, RenaissanceRe Fund Holdings Ltd. (“Fund Holdings”), the results of Medici and Fund Holdings are consolidated in the Company’s consolidated financial statements and all significant inter-company transactions have been eliminated. Redeemable noncontrolling interest - Medici represents the interests of external parties with respect to the net income and shareholders’ equity of Medici.
|
•
|
Upsilon RFO Re Ltd., formerly known as Upsilon Reinsurance II Ltd. (“Upsilon RFO”), a Bermuda domiciled special purpose insurer (“SPI”), is a managed joint venture formed by the Company primarily to provide additional capacity to the worldwide aggregate and per-occurrence primary and retrocessional property catastrophe excess of loss market. Upsilon RFO is considered a variable interest entity (“VIE”) and the Company is considered the primary beneficiary. As a result, Upsilon RFO is consolidated by the Company and all significant inter-company transactions have been eliminated.
|
•
|
RenaissanceRe Upsilon Fund Ltd. (“Upsilon Fund”), an exempted Bermuda segregated accounts company, was formed by the Company to provide a fund structure through which third-party investors can invest in reinsurance risk managed by the Company. As a segregated accounts company, Upsilon Fund is permitted to establish segregated accounts to invest in and hold identified pools of assets and liabilities. Each pool of assets and liabilities in each segregated account is structured to be ring-fenced from any claims from the creditors of Upsilon Fund’s general account and from the creditors of other segregated accounts within Upsilon Fund. Third-party investors purchase redeemable, non-voting preference shares linked to specific segregated accounts of Upsilon Fund and own 100% of these shares. Upsilon Fund is an investment company and is considered a VIE. The Company is not considered the primary beneficiary of Upsilon Fund and, as a result, the Company does not consolidate the financial position and results of operations of Upsilon Fund.
|
•
|
Fibonacci Reinsurance Ltd. ("Fibonacci Re"), a Bermuda-domiciled SPI, was formed to provide collateralized capacity to Renaissance Reinsurance and its affiliates. Fibonacci Re raises capital from third-party investors and the Company, via private placements of participating notes which are listed on the Bermuda Stock Exchange. Fibonacci Re is considered a VIE. The Company is not considered the primary beneficiary of Fibonacci Re and, as a result, the Company does not consolidate the financial position and results of operations of Fibonacci Re.
|
•
|
Effective December 17, 2018, the Company formed Vermeer Reinsurance Ltd. (“Vermeer”), an exempted Bermuda reinsurer, with PGGM, a Dutch pension fund manager. Vermeer provides capacity focused on risk remote layers in the U.S. property catastrophe market. Vermeer is managed by RUM in return for a management fee. The Company maintains a majority voting control of Vermeer, while PGGM retains economic benefits. Vermeer is considered a VIE, as it has voting rights that are not proportional to its participating rights and the Company is the primary beneficiary. As a result, the Company consolidates Vermeer and all significant inter-company transactions have been eliminated. The Company does not currently expect its voting or economic interest in Vermeer to fluctuate.
|
•
|
Effective December 22, 2017, the Company and Reinsurance Group of America, Incorporated closed an initiative (“Langhorne”) to source third party capital to support reinsurers targeting large in-force life and annuity blocks. Langhorne Holdings LLC (“Langhorne Holdings”) is a company that owns and manages certain reinsurance entities within Langhorne. Langhorne Partners LLC (“Langhorne Partners”) is the general partner for Langhorne and the entity which manages the third-party investors investing into Langhorne Holdings. The Company concluded that Langhorne Holdings meets the definition of a VIE. The Company is not the primary beneficiary of Langhorne Holdings and as a result, the Company does not consolidate the financial position or results of operations of Langhorne Holdings. The Company concluded that Langhorne Partners is not a VIE. The Company will account
|
•
|
In connection with the acquisition of the TMR Group Entities, the Company manages Shima Reinsurance Ltd. (“Shima Re”), Norwood Re Ltd. (“Norwood Re”) and Blizzard Re Ltd. (“Blizzard Re”) (together, the “TMR third-party capital vehicles”), which provide third-party investors with access to reinsurance risk formerly managed by the TMR Group Entities. During the second quarter of 2019, some of their legacy portfolios of in-force and expired contracts were transferred to other stop loss reinsurance providers.
|
|
|
|
|
|
|||||
|
|
Three months ended June 30, 2019
|
|
Six months ended June 30, 2019
|
|
||||
|
Compensation-related costs
|
$
|
9,187
|
|
|
$
|
15,861
|
|
|
|
Transaction-related costs
|
1,946
|
|
|
14,838
|
|
|
||
|
Integration-related costs
|
3,355
|
|
|
9,304
|
|
|
||
|
Total corporate expenses associated with the acquisition of the TMR Group Entities
|
$
|
14,488
|
|
|
$
|
40,003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Special Dividend
|
|
|
|
|
||||
|
Special Dividend paid to common shareholders of Tokio and holders of Tokio equity awards
|
|
|
$
|
500,000
|
|
|
||
|
RenaissanceRe common shares
|
|
|
|
|
||||
|
Common shares issued by RenaissanceRe to Tokio
|
1,739,071
|
|
|
|
|
|||
|
Common share price of RenaissanceRe (1)
|
$
|
143.75
|
|
|
|
|
||
|
Market value of RenaissanceRe common shares issued by RenaissanceRe to Tokio
|
|
|
249,998
|
|
|
|||
|
Cash consideration
|
|
|
|
|
||||
|
Cash consideration paid by RenaissanceRe as acquisition consideration
|
|
|
813,595
|
|
|
|||
|
Total purchase price
|
|
|
1,563,593
|
|
|
|||
|
Less: Special Dividend paid to Tokio
|
|
|
(500,000
|
)
|
|
|||
|
Net purchase price
|
|
|
$
|
1,063,593
|
|
|
||
|
|
|
|
|
|
(1)
|
RenaissanceRe common share price is based on the 30-day trailing volume weighted average price of $143.7539 as of market close on March 15, 2019, which approximates fair value.
|
|
|
|
|
||
|
Shareholders’ equity of the TMR Group Entities at March 22, 2019
|
$
|
1,032,961
|
|
|
|
Adjustments for fair value, by applicable balance sheet caption:
|
|
|
||
|
Net deferred acquisition costs and value of business acquired
|
(56,788
|
)
|
|
|
|
Net reserve for claims and claim expenses
|
67,782
|
|
|
|
|
Goodwill and intangible assets at March 22, 2019 of the TMR Group Entities
|
(6,569
|
)
|
|
|
|
Total adjustments for fair value by applicable balance sheet caption before tax impact
|
4,425
|
|
|
|
|
Other assets - net deferred tax liability related to fair value adjustments and value of business acquired
|
(2,606
|
)
|
|
|
|
Total adjustments for fair value by applicable balance sheet caption, net of tax
|
1,819
|
|
|
|
|
Adjustments for fair value of the identifiable intangible assets:
|
|
|
||
|
Identifiable indefinite lived intangible assets (insurance licenses)
|
6,800
|
|
|
|
|
Identifiable finite lived intangible assets (top broker relationships and renewal rights)
|
11,200
|
|
|
|
|
Identifiable intangible assets before tax impact
|
18,000
|
|
|
|
|
Other assets - deferred tax liability on identifiable intangible assets
|
(2,281
|
)
|
|
|
|
Total adjustments for fair value of the identifiable intangible assets and value of business acquired, net of tax
|
15,719
|
|
|
|
|
Total adjustments for fair value by applicable balance sheet caption, identifiable intangible assets and value of business acquired, net of tax
|
17,538
|
|
|
|
|
Shareholders’ equity of the TMR Group Entities at fair value
|
1,050,499
|
|
|
|
|
Total net purchase price paid by RenaissanceRe
|
1,063,593
|
|
|
|
|
Excess purchase price over the fair value of net assets acquired assigned to goodwill
|
$
|
13,094
|
|
|
|
|
|
|
•
|
Net deferred acquisition costs and value of business acquired (“VOBA”) - to reflect the elimination of the TMR Group Entities’ net deferred acquisition costs, partially offset by the establishment of the value of business acquired asset, which represents the present value of the expected underwriting profit within the unearned premiums liability, net of reinsurance, less costs to service the related policies and a risk premium. The adjustment for VOBA will be amortized to acquisition expenses over approximately two years, as the contracts for business in-force as of the acquisition date expire. VOBA at March 22, 2019 was $287.6 million;
|
•
|
Reserve for claims and claim expenses - to reflect a decrease related to the present value of the net unpaid claims and claim expenses based on the estimated payout pattern, partially offset by an increase in net claims and claim expenses related to the estimated market based risk margin. The risk margin represents the estimated cost of capital required by a market participant to assume the net claims and claim expenses. This will be amortized using the projected discount and risk margin patterns of the net claims and claims expenses as of the acquisition date;
|
•
|
Identifiable indefinite lived and finite lived intangible assets - to establish the fair value of identifiable intangible assets related to the acquisition of the TMR Group Entities described in detail below; and
|
•
|
Other assets - to reflect the net deferred tax liability on identifiable intangible assets.
|
|
|
|
|
|
|
||
|
|
Amount
|
|
Economic Useful Life
|
|
||
|
Top broker relationships
|
$
|
10,000
|
|
|
10.0 years
|
|
|
Renewal rights
|
1,200
|
|
|
15.0 years
|
|
|
|
Insurance licenses
|
6,800
|
|
|
Indefinite
|
|
|
|
Gross identifiable intangible assets related to the acquisition of the TMR Group Entities, at March 22, 2019
|
18,000
|
|
|
|
|
|
|
Accumulated amortization (from March 22, 2019 through June 30, 2019)
|
270
|
|
|
|
|
|
|
Net identifiable intangible assets related to the acquisition of the TMR Group Entities at June 30, 2019
|
$
|
17,730
|
|
|
|
|
|
|
|
|
|
|
•
|
Top broker relationships - the value of the TMR Group Entities’ relationships with their top four brokers (Marsh & McLennan Companies, Inc., Aon plc, Willis Group Holdings Public Limited Company and Jardine Lloyd Thompson Group plc.) after taking into consideration the expectation of the renewal of these relationships and the associated expenses. These will be amortized on a straight-line basis over the economic useful life as of the acquisition date;
|
•
|
Renewal rights - the value of policy renewal rights after taking into consideration written premium on assumed retention ratios and the insurance cash flows and the associated equity cash flows from these renewal policies over the expected life of the renewals. These will be amortized on a straight-line basis over the economic useful life as of the acquisition date; and
|
•
|
Insurance licenses - the value of insurance licenses acquired which provide the ability to write reinsurance in all 50 states of the U.S. and the District of Columbia.
|
|
|
|
|
|
|||||
|
|
Three months ended June 30, 2019
|
|
Six months ended June 30, 2019
|
|
||||
|
Total revenues
|
$
|
416,830
|
|
|
$
|
416,830
|
|
|
|
Net income available to RenaissanceRe common shareholders (1)
|
$
|
90,915
|
|
|
$
|
65,396
|
|
|
|
|
|
|
|
(1)
|
Includes $14.5 million and $40.0 million of corporate expenses associated with the acquisition of the TMR Group Entities for the three and six months ended June 30, 2019, respectively. The Company recorded $25.5 million of corporate expenses associated with the acquisition of the TMR Group Entities for the three months ended March 31, 2019.
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Three months ended
|
|
Six months ended
|
|
||||||||||||
|
|
June 30, 2019
|
|
June 30, 2018
|
|
June 30, 2019
|
|
June 30, 2018
|
|
||||||||
|
Total revenues
|
$
|
1,238,380
|
|
|
$
|
822,840
|
|
|
$
|
2,386,526
|
|
|
$
|
1,548,109
|
|
|
|
Net income available to RenaissanceRe common shareholders
|
$
|
367,854
|
|
|
$
|
222,936
|
|
|
$
|
698,248
|
|
|
$
|
250,541
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
June 30,
2019 |
|
December 31,
2018 |
|
||||
|
U.S. treasuries
|
$
|
3,961,306
|
|
|
$
|
3,331,411
|
|
|
|
Agencies
|
334,923
|
|
|
174,883
|
|
|
||
|
Municipal
|
2,859
|
|
|
6,854
|
|
|
||
|
Non-U.S. government
|
370,505
|
|
|
279,818
|
|
|
||
|
Non-U.S. government-backed corporate
|
207,668
|
|
|
160,063
|
|
|
||
|
Corporate
|
3,268,511
|
|
|
2,450,244
|
|
|
||
|
Agency mortgage-backed
|
1,167,735
|
|
|
817,880
|
|
|
||
|
Non-agency mortgage-backed
|
266,963
|
|
|
278,680
|
|
|
||
|
Commercial mortgage-backed
|
374,584
|
|
|
282,294
|
|
|
||
|
Asset-backed
|
524,612
|
|
|
306,743
|
|
|
||
|
Total fixed maturity investments trading
|
$
|
10,479,666
|
|
|
$
|
8,088,870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
June 30, 2019
|
Amortized
Cost
|
|
Fair Value
|
|
||||
|
Due in less than one year
|
$
|
618,766
|
|
|
$
|
616,578
|
|
|
|
Due after one through five years
|
5,104,023
|
|
|
5,176,183
|
|
|
||
|
Due after five through ten years
|
1,841,585
|
|
|
1,896,176
|
|
|
||
|
Due after ten years
|
450,065
|
|
|
456,835
|
|
|
||
|
Mortgage-backed
|
1,785,109
|
|
|
1,809,282
|
|
|
||
|
Asset-backed
|
524,770
|
|
|
524,612
|
|
|
||
|
Total
|
$
|
10,324,318
|
|
|
$
|
10,479,666
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
June 30,
2019 |
|
December 31,
2018 |
|
||||
|
Financials
|
$
|
211,756
|
|
|
$
|
200,357
|
|
|
|
Communications and technology
|
24,621
|
|
|
42,333
|
|
|
||
|
Industrial, utilities and energy
|
13,486
|
|
|
24,520
|
|
|
||
|
Consumer
|
11,811
|
|
|
20,639
|
|
|
||
|
Healthcare
|
9,791
|
|
|
18,925
|
|
|
||
|
Basic materials
|
2,181
|
|
|
3,478
|
|
|
||
|
Total
|
$
|
273,646
|
|
|
$
|
310,252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three months ended
|
|
Six months ended
|
|
||||||||||||
|
|
June 30,
2019 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
|
||||||||
|
Fixed maturity investments
|
$
|
88,106
|
|
|
$
|
50,416
|
|
|
$
|
149,589
|
|
|
$
|
96,059
|
|
|
|
Short term investments
|
17,807
|
|
|
7,633
|
|
|
29,651
|
|
|
12,937
|
|
|
||||
|
Equity investments
|
916
|
|
|
1,490
|
|
|
1,943
|
|
|
2,188
|
|
|
||||
|
Other investments
|
|
|
|
|
|
|
|
|
||||||||
|
Private equity investments
|
10,309
|
|
|
3,860
|
|
|
12,763
|
|
|
3,426
|
|
|
||||
|
Other
|
630
|
|
|
10,658
|
|
|
7,875
|
|
|
18,681
|
|
|
||||
|
Cash and cash equivalents
|
2,306
|
|
|
1,039
|
|
|
3,823
|
|
|
1,604
|
|
|
||||
|
|
120,074
|
|
|
75,096
|
|
|
205,644
|
|
|
134,895
|
|
|
||||
|
Investment expenses
|
(4,242
|
)
|
|
(3,740
|
)
|
|
(8,350
|
)
|
|
(7,063
|
)
|
|
||||
|
Net investment income
|
$
|
115,832
|
|
|
$
|
71,356
|
|
|
$
|
197,294
|
|
|
$
|
127,832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three months ended
|
|
Six months ended
|
|
||||||||||||
|
|
June 30,
2019 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
|
||||||||
|
Gross realized gains
|
$
|
28,512
|
|
|
$
|
5,133
|
|
|
$
|
52,885
|
|
|
$
|
9,716
|
|
|
|
Gross realized losses
|
(7,217
|
)
|
|
(26,519
|
)
|
|
(30,160
|
)
|
|
(52,372
|
)
|
|
||||
|
Net realized gains (losses) on fixed maturity investments
|
21,295
|
|
|
(21,386
|
)
|
|
22,725
|
|
|
(42,656
|
)
|
|
||||
|
Net unrealized gains (losses) on fixed maturity investments trading
|
121,991
|
|
|
(9,420
|
)
|
|
225,913
|
|
|
(64,792
|
)
|
|
||||
|
Net realized and unrealized gains (losses) on investments-related derivatives
|
37,173
|
|
|
1,038
|
|
|
50,969
|
|
|
(3,326
|
)
|
|
||||
|
Net realized gains on equity investments trading sold during the period
|
31,899
|
|
|
348
|
|
|
30,738
|
|
|
582
|
|
|
||||
|
Net unrealized (losses) gains on equity investments trading still held at reporting date
|
(18,355
|
)
|
|
11,519
|
|
|
34,303
|
|
|
10,147
|
|
|
||||
|
Net realized and unrealized gains on equity investments trading
|
13,544
|
|
|
11,867
|
|
|
65,041
|
|
|
10,729
|
|
|
||||
|
Net realized and unrealized gains (losses) on investments
|
$
|
194,003
|
|
|
$
|
(17,901
|
)
|
|
$
|
364,648
|
|
|
$
|
(100,045
|
)
|
|
|
|
|
|
|
|
|
|
|
|
•
|
Fair values determined by Level 1 inputs utilize unadjusted quoted prices obtained from active markets for identical assets or liabilities for which the Company has access. The fair value is determined by multiplying the quoted price by the quantity held by the Company;
|
•
|
Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals, broker quotes and certain pricing indices; and
|
•
|
Level 3 inputs are based all or in part on significant unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In these cases, significant management assumptions can be used to establish management’s best estimate of the assumptions used by other market participants in determining the fair value of the asset or liability.
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
At June 30, 2019
|
Total
|
|
Quoted
Prices in Active
Markets for
Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
||||||||
|
Fixed maturity investments
|
|
|
|
|
|
|
|
|
||||||||
|
U.S. treasuries
|
$
|
3,961,306
|
|
|
$
|
3,961,306
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Agencies
|
334,923
|
|
|
—
|
|
|
334,923
|
|
|
—
|
|
|
||||
|
Municipal
|
2,859
|
|
|
—
|
|
|
2,859
|
|
|
—
|
|
|
||||
|
Non-U.S. government
|
370,505
|
|
|
—
|
|
|
370,505
|
|
|
—
|
|
|
||||
|
Non-U.S. government-backed corporate
|
207,668
|
|
|
—
|
|
|
207,668
|
|
|
—
|
|
|
||||
|
Corporate
|
3,268,511
|
|
|
—
|
|
|
3,268,511
|
|
|
—
|
|
|
||||
|
Agency mortgage-backed
|
1,167,735
|
|
|
—
|
|
|
1,167,735
|
|
|
—
|
|
|
||||
|
Non-agency mortgage-backed
|
266,963
|
|
|
—
|
|
|
266,963
|
|
|
—
|
|
|
||||
|
Commercial mortgage-backed
|
374,584
|
|
|
—
|
|
|
374,584
|
|
|
—
|
|
|
||||
|
Asset-backed
|
524,612
|
|
|
—
|
|
|
524,612
|
|
|
—
|
|
|
||||
|
Total fixed maturity investments
|
10,479,666
|
|
|
3,961,306
|
|
|
6,518,360
|
|
|
—
|
|
|
||||
|
Short term investments
|
4,579,171
|
|
|
—
|
|
|
4,579,171
|
|
|
—
|
|
|
||||
|
Equity investments trading
|
273,646
|
|
|
273,646
|
|
|
—
|
|
|
—
|
|
|
||||
|
Other investments
|
|
|
|
|
|
|
|
|
||||||||
|
Catastrophe bonds
|
652,668
|
|
|
—
|
|
|
652,668
|
|
|
—
|
|
|
||||
|
Private equity investments (1)
|
270,246
|
|
|
—
|
|
|
—
|
|
|
74,810
|
|
|
||||
|
Senior secured bank loan funds (1)
|
20,591
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
|
Hedge funds (1)
|
11,932
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
|
Total other investments
|
955,437
|
|
|
—
|
|
|
652,668
|
|
|
74,810
|
|
|
||||
|
Other assets and (liabilities)
|
|
|
|
|
|
|
|
|
||||||||
|
Assumed and ceded (re)insurance contracts (2)
|
7,942
|
|
|
—
|
|
|
—
|
|
|
7,942
|
|
|
||||
|
Derivatives (3)
|
554
|
|
|
(207
|
)
|
|
761
|
|
|
—
|
|
|
||||
|
Total other assets and (liabilities)
|
8,496
|
|
|
(207
|
)
|
|
761
|
|
|
7,942
|
|
|
||||
|
|
$
|
16,296,416
|
|
|
$
|
4,234,745
|
|
|
$
|
11,750,960
|
|
|
$
|
82,752
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet.
|
(2)
|
Included in assumed and ceded (re)insurance contracts at June 30, 2019 was $42.4 million of other assets and $34.4 million of other liabilities.
|
(3)
|
See “Note 14. Derivative Instruments” for additional information related to the fair value by type of contract, of derivatives entered into by the Company.
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
At December 31, 2018
|
Total
|
|
Quoted
Prices in Active
Markets for
Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
||||||||
|
Fixed maturity investments
|
|
|
|
|
|
|
|
|
||||||||
|
U.S. treasuries
|
$
|
3,331,411
|
|
|
$
|
3,331,411
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Agencies
|
174,883
|
|
|
—
|
|
|
174,883
|
|
|
—
|
|
|
||||
|
Municipal
|
6,854
|
|
|
—
|
|
|
6,854
|
|
|
—
|
|
|
||||
|
Non-U.S. government
|
279,818
|
|
|
—
|
|
|
279,818
|
|
|
—
|
|
|
||||
|
Non-U.S. government-backed corporate
|
160,063
|
|
|
—
|
|
|
160,063
|
|
|
—
|
|
|
||||
|
Corporate
|
2,450,244
|
|
|
—
|
|
|
2,450,244
|
|
|
—
|
|
|
||||
|
Agency mortgage-backed
|
817,880
|
|
|
—
|
|
|
817,880
|
|
|
—
|
|
|
||||
|
Non-agency mortgage-backed
|
278,680
|
|
|
—
|
|
|
278,680
|
|
|
—
|
|
|
||||
|
Commercial mortgage-backed
|
282,294
|
|
|
—
|
|
|
282,294
|
|
|
—
|
|
|
||||
|
Asset-backed
|
306,743
|
|
|
—
|
|
|
306,743
|
|
|
—
|
|
|
||||
|
Total fixed maturity investments
|
8,088,870
|
|
|
3,331,411
|
|
|
4,757,459
|
|
|
—
|
|
|
||||
|
Short term investments
|
2,586,520
|
|
|
—
|
|
|
2,586,520
|
|
|
—
|
|
|
||||
|
Equity investments trading
|
310,252
|
|
|
310,252
|
|
|
—
|
|
|
—
|
|
|
||||
|
Other investments
|
|
|
|
|
|
|
|
|
||||||||
|
Catastrophe bonds
|
516,571
|
|
|
—
|
|
|
516,571
|
|
|
—
|
|
|
||||
|
Private equity investments (1)
|
242,647
|
|
|
—
|
|
|
—
|
|
|
54,545
|
|
|
||||
|
Senior secured bank loan funds (1)
|
14,482
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
|
Hedge funds (1)
|
11,233
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
|
Total other investments
|
784,933
|
|
|
—
|
|
|
516,571
|
|
|
54,545
|
|
|
||||
|
Other assets and (liabilities)
|
|
|
|
|
|
|
|
|
||||||||
|
Assumed and ceded (re)insurance contracts (2)
|
(8,359
|
)
|
|
—
|
|
|
—
|
|
|
(8,359
|
)
|
|
||||
|
Derivatives (3)
|
12,399
|
|
|
484
|
|
|
11,915
|
|
|
—
|
|
|
||||
|
Total other assets and (liabilities)
|
4,040
|
|
|
484
|
|
|
11,915
|
|
|
(8,359
|
)
|
|
||||
|
|
$
|
11,774,615
|
|
|
$
|
3,642,147
|
|
|
$
|
7,872,465
|
|
|
$
|
46,186
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet.
|
(2)
|
Included in assumed and ceded (re)insurance contracts at December 31, 2018 was $5.0 million of other assets and $13.3 million of other liabilities.
|
(3)
|
See “Note 14. Derivative Instruments” for additional information related to the fair value by type of contract, of derivatives entered into by the Company.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
At June 30, 2019
|
Fair Value
(Level 3)
|
|
Valuation Technique
|
|
Unobservable
Inputs |
|
Low
|
|
High
|
|
Weighted Average or Actual
|
|
||||||||
|
Other investments
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Private equity investment
|
$
|
10,401
|
|
|
External valuation model
|
|
Indicative pricing
|
|
$
|
—
|
|
|
$
|
104.58
|
|
|
$
|
104.01
|
|
|
|
Private equity investments
|
64,409
|
|
|
Internal valuation model
|
|
Liquidity discount
|
|
n/a
|
|
|
n/a
|
|
|
12.5
|
%
|
|
||||
|
Total other investments
|
74,810
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Other assets and (liabilities)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Assumed and ceded (re)insurance contracts
|
382
|
|
|
Internal valuation model
|
|
Bond price
|
|
$
|
100.50
|
|
|
$
|
106.35
|
|
|
$
|
103.73
|
|
|
|
|
|
|
|
|
|
Liquidity discount
|
|
n/a
|
|
|
n/a
|
|
|
1.3
|
%
|
|
|||||
|
Assumed and ceded (re)insurance contracts
|
(9,396
|
)
|
|
Internal valuation model
|
|
Net undiscounted cash flows
|
|
n/a
|
|
|
n/a
|
|
|
$
|
10,628
|
|
|
|||
|
|
|
|
|
|
Expected loss ratio
|
|
n/a
|
|
|
n/a
|
|
|
37.1
|
%
|
|
|||||
|
|
|
|
|
|
Discount rate
|
|
n/a
|
|
|
n/a
|
|
|
1.8
|
%
|
|
|||||
|
Assumed and ceded (re)insurance contracts
|
16,956
|
|
|
Internal valuation model
|
|
Expected loss ratio
|
|
n/a
|
|
|
n/a
|
|
|
0.0
|
%
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Total other assets and (liabilities)
|
7,942
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Total other assets and (liabilities) measured at fair value on a recurring basis using Level 3 inputs
|
$
|
82,752
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Other
investments
|
|
Other assets
and
(liabilities)
|
|
Total
|
|
||||||
|
Balance - April 1, 2019
|
$
|
63,695
|
|
|
$
|
11,827
|
|
|
$
|
75,522
|
|
|
|
Total realized and unrealized gains (losses)
|
|
|
|
|
|
|
||||||
|
Included in other income (loss)
|
3,493
|
|
|
(935
|
)
|
|
2,558
|
|
|
|||
|
Total foreign exchange losses
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
|
|||
|
Purchases
|
7,629
|
|
|
(2,950
|
)
|
|
4,679
|
|
|
|||
|
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
|||
|
Settlements
|
—
|
|
|
—
|
|
|
—
|
|
|
|||
|
Balance - June 30, 2019
|
$
|
74,810
|
|
|
$
|
7,942
|
|
|
$
|
82,752
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
Other
investments
|
|
Other assets
and
(liabilities)
|
|
Total
|
|
||||||
|
Balance - January 1, 2019
|
$
|
54,545
|
|
|
$
|
(8,359
|
)
|
|
$
|
46,186
|
|
|
|
Total realized and unrealized gains (losses)
|
|
|
|
|
|
|
||||||
|
Included in other income (loss)
|
2,382
|
|
|
158
|
|
|
2,540
|
|
|
|||
|
Total foreign exchange losses
|
(8
|
)
|
|
—
|
|
|
(8
|
)
|
|
|||
|
Purchases
|
17,891
|
|
|
(3,847
|
)
|
|
14,044
|
|
|
|||
|
Settlements
|
—
|
|
|
20
|
|
|
20
|
|
|
|||
|
Amounts acquired (1)
|
—
|
|
|
19,970
|
|
|
19,970
|
|
|
|||
|
Balance - June 30, 2019
|
$
|
74,810
|
|
|
$
|
7,942
|
|
|
$
|
82,752
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Represents the fair value of the other assets acquired from the TMR Group Entities, measured at fair value on a recurring basis using Level 3 inputs at March 22, 2019. See “Note 3. Acquisition of Tokio Millennium Re” for additional information related to the acquisition of the TMR Group Entities.
|
|
|
|
|
||
|
|
Other assets and (liabilities)
|
|
||
|
Balance - April 1, 2018
|
$
|
(2,780
|
)
|
|
|
Total realized and unrealized gains
|
|
|
||
|
Included in other income (loss)
|
439
|
|
|
|
|
Purchases
|
323
|
|
|
|
|
Balance - June 30, 2018
|
$
|
(2,018
|
)
|
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
Other assets and (liabilities)
|
|
||
|
Balance - January 1, 2018
|
$
|
(2,952
|
)
|
|
|
Total realized and unrealized gains
|
|
|
||
|
Included in other income (loss)
|
645
|
|
|
|
|
Purchases
|
289
|
|
|
|
|
Balance - June 30, 2018
|
$
|
(2,018
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
June 30,
2019 |
|
December 31,
2018 |
|
||||
|
Other investments
|
$
|
955,437
|
|
|
$
|
784,933
|
|
|
|
Other assets
|
$
|
42,372
|
|
|
$
|
4,968
|
|
|
|
Other liabilities
|
$
|
34,430
|
|
|
$
|
13,327
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
At June 30, 2019
|
Fair Value
|
|
Unfunded
Commitments |
|
Redemption Frequency
|
|
Redemption
Notice Period (Minimum Days) |
|
Redemption
Notice Period (Maximum Days) |
|
||||
|
Private equity investments
|
$
|
195,436
|
|
|
$
|
372,916
|
|
|
See below
|
|
See below
|
|
See below
|
|
|
Senior secured bank loan funds
|
20,591
|
|
|
11,977
|
|
|
See below
|
|
See below
|
|
See below
|
|
||
|
Hedge funds
|
11,932
|
|
|
—
|
|
|
See below
|
|
See below
|
|
See below
|
|
||
|
Total other investments measured using net asset valuations
|
$
|
227,959
|
|
|
$
|
384,893
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three months ended
|
|
Six months ended
|
|
||||||||||||
|
|
June 30,
2019 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
|
||||||||
|
Premiums written
|
|
|
|
|
|
|
|
|
||||||||
|
Direct
|
$
|
99,538
|
|
|
$
|
90,573
|
|
|
$
|
210,506
|
|
|
$
|
175,740
|
|
|
|
Assumed
|
1,377,370
|
|
|
886,770
|
|
|
2,830,697
|
|
|
1,961,255
|
|
|
||||
|
Ceded
|
(453,943
|
)
|
|
(372,834
|
)
|
|
(1,089,207
|
)
|
|
(869,442
|
)
|
|
||||
|
Net premiums written
|
$
|
1,022,965
|
|
|
$
|
604,509
|
|
|
$
|
1,951,996
|
|
|
$
|
1,267,553
|
|
|
|
Premiums earned
|
|
|
|
|
|
|
|
|
||||||||
|
Direct
|
$
|
90,638
|
|
|
$
|
69,904
|
|
|
$
|
180,452
|
|
|
$
|
139,936
|
|
|
|
Assumed
|
1,202,144
|
|
|
601,735
|
|
|
1,967,577
|
|
|
1,207,218
|
|
|
||||
|
Ceded
|
(381,280
|
)
|
|
(242,255
|
)
|
|
(686,499
|
)
|
|
(477,487
|
)
|
|
||||
|
Net premiums earned
|
$
|
911,502
|
|
|
$
|
429,385
|
|
|
$
|
1,461,530
|
|
|
$
|
869,667
|
|
|
|
Claims and claim expenses
|
|
|
|
|
|
|
|
|
||||||||
|
Gross claims and claim expenses incurred
|
$
|
752,056
|
|
|
$
|
76,945
|
|
|
$
|
1,090,175
|
|
|
$
|
302,687
|
|
|
|
Claims and claim expenses recovered
|
(298,683
|
)
|
|
(16,778
|
)
|
|
(409,767
|
)
|
|
(70,817
|
)
|
|
||||
|
Net claims and claim expenses incurred
|
$
|
453,373
|
|
|
$
|
60,167
|
|
|
$
|
680,408
|
|
|
$
|
231,870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
At June 30, 2019
|
Case
Reserves
|
|
Additional
Case Reserves
|
|
IBNR
|
|
Total
|
|
||||||||
|
Property
|
$
|
1,191,810
|
|
|
$
|
1,635,595
|
|
|
$
|
791,628
|
|
|
$
|
3,619,033
|
|
|
|
Casualty and Specialty
|
1,450,805
|
|
|
128,701
|
|
|
3,280,133
|
|
|
4,859,639
|
|
|
||||
|
Other
|
3,010
|
|
|
—
|
|
|
3,166
|
|
|
6,176
|
|
|
||||
|
Total
|
$
|
2,645,625
|
|
|
$
|
1,764,296
|
|
|
$
|
4,074,927
|
|
|
$
|
8,484,848
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
At December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
|
Property
|
$
|
690,718
|
|
|
$
|
1,308,307
|
|
|
$
|
1,087,229
|
|
|
$
|
3,086,254
|
|
|
|
Casualty and Specialty
|
771,537
|
|
|
116,877
|
|
|
2,096,979
|
|
|
2,985,393
|
|
|
||||
|
Other
|
1,458
|
|
|
—
|
|
|
3,166
|
|
|
4,624
|
|
|
||||
|
Total
|
$
|
1,463,713
|
|
|
$
|
1,425,184
|
|
|
$
|
3,187,374
|
|
|
$
|
6,076,271
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Six months ended June 30,
|
2019
|
|
2018
|
|
||||
|
Net reserves as of beginning of period
|
$
|
3,704,050
|
|
|
$
|
3,493,778
|
|
|
|
Net incurred related to:
|
|
|
|
|
||||
|
Current year
|
684,481
|
|
|
419,434
|
|
|
||
|
Prior years
|
(4,073
|
)
|
|
(187,564
|
)
|
|
||
|
Total net incurred
|
680,408
|
|
|
231,870
|
|
|
||
|
Net paid related to:
|
|
|
|
|
||||
|
Current year
|
52,332
|
|
|
23,902
|
|
|
||
|
Prior years
|
570,561
|
|
|
445,790
|
|
|
||
|
Total net paid
|
622,893
|
|
|
469,692
|
|
|
||
|
Amounts acquired (1)
|
1,858,775
|
|
|
—
|
|
|
||
|
Foreign exchange
|
(642
|
)
|
|
(8,602
|
)
|
|
||
|
Net reserves as of end of period
|
5,619,698
|
|
|
3,247,354
|
|
|
||
|
Reinsurance recoverable as of end of period
|
2,865,150
|
|
|
1,454,991
|
|
|
||
|
Gross reserves as of end of period
|
$
|
8,484,848
|
|
|
$
|
4,702,345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Six months ended June 30,
|
2019
|
|
2018
|
|
||||
|
|
(Favorable) adverse development
|
|
(Favorable) adverse development
|
|
||||
|
Property
|
$
|
12,640
|
|
|
$
|
(170,707
|
)
|
|
|
Casualty and Specialty
|
(16,730
|
)
|
|
(16,787
|
)
|
|
||
|
Other
|
17
|
|
|
(70
|
)
|
|
||
|
Total net favorable development of prior accident years net claims and claim expenses
|
$
|
(4,073
|
)
|
|
$
|
(187,564
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Six months ended June 30,
|
2019
|
|
||
|
|
(Favorable) adverse development
|
|
||
|
Catastrophe net claims and claim expenses
|
|
|
||
|
Large catastrophe events
|
|
|
||
|
2017 Large Loss Events
|
$
|
(56,234
|
)
|
|
|
New Zealand Earthquake (2011)
|
(7,485
|
)
|
|
|
|
Tohoku Earthquake and Tsunami (2011)
|
(4,693
|
)
|
|
|
|
New Zealand Earthquake (2010)
|
25,865
|
|
|
|
|
2018 Large Loss Events
|
52,132
|
|
|
|
|
Other
|
(12,275
|
)
|
|
|
|
Total large catastrophe events
|
(2,690
|
)
|
|
|
|
Small catastrophe events and attritional loss movements
|
|
|
||
|
Other small catastrophe events and attritional loss movements
|
9,521
|
|
|
|
|
Total small catastrophe events and attritional loss movements
|
9,521
|
|
|
|
|
Total catastrophe and attritional net claims and claim expenses
|
6,831
|
|
|
|
|
Actuarial assumption changes
|
5,809
|
|
|
|
|
Total net adverse development of prior accident years net claims and claim expenses
|
$
|
12,640
|
|
|
|
|
|
|
|
|
|
|
||
|
Six months ended June 30,
|
2018
|
|
||
|
|
(Favorable) adverse development
|
|
||
|
Catastrophe net claims and claim expenses
|
|
|
||
|
Large catastrophe events
|
|
|
||
|
2017 Large Loss Events
|
$
|
(156,213
|
)
|
|
|
Total large catastrophe events
|
(156,213
|
)
|
|
|
|
Small catastrophe events and attritional loss movements
|
|
|
||
|
Other small catastrophe events and attritional loss movements
|
(8,812
|
)
|
|
|
|
Total small catastrophe events and attritional loss movements
|
(8,812
|
)
|
|
|
|
Total catastrophe and attritional net claims and claim expenses
|
(165,025
|
)
|
|
|
|
Actuarial assumption changes
|
(5,682
|
)
|
|
|
|
Total net favorable development of prior accident years net claims and claim expenses
|
$
|
(170,707
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Six months ended June 30,
|
2019
|
|
2018
|
|
||||
|
|
(Favorable) adverse development
|
|
(Favorable) adverse development
|
|
||||
|
Actuarial methods
|
$
|
(28,850
|
)
|
|
$
|
(9,001
|
)
|
|
|
Actuarial assumption changes
|
12,120
|
|
|
(7,786
|
)
|
|
||
|
Total net favorable development of prior accident years net claims and claim expenses
|
$
|
(16,730
|
)
|
|
$
|
(16,787
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
June 30, 2019
|
|
December 31, 2018
|
|
||||||||||||
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
||||||||
|
3.600% Senior Notes due 2029
|
$
|
409,760
|
|
|
$
|
391,016
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
3.450% Senior Notes due 2027
|
304,620
|
|
|
296,043
|
|
|
283,680
|
|
|
295,797
|
|
|
||||
|
3.700% Senior Notes due 2025
|
311,763
|
|
|
297,871
|
|
|
292,557
|
|
|
297,688
|
|
|
||||
|
5.750% Senior Notes due 2020
|
255,650
|
|
|
249,766
|
|
|
255,938
|
|
|
249,602
|
|
|
||||
|
4.750% Senior Notes due 2025 (DaVinciRe) (1)
|
150,225
|
|
|
148,194
|
|
|
142,539
|
|
|
148,040
|
|
|
||||
|
Total debt
|
$
|
1,432,018
|
|
|
$
|
1,382,890
|
|
|
$
|
974,714
|
|
|
$
|
991,127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
At June 30, 2019
|
Issued or Drawn
|
|
||
|
RenaissanceRe Revolving Credit Facility (1)
|
$
|
—
|
|
|
|
Uncommitted Standby Letter of Credit Facility with Wells Fargo
|
32,009
|
|
|
|
|
Secured Letter of Credit Facility with Citibank Europe
|
238,267
|
|
|
|
|
Renaissance Reinsurance FAL Facility
|
255,000
|
|
|
|
|
Mizuho Letters of Credit (2)
|
188,873
|
|
|
|
|
Mitsubishi Letters of Credit (2)
|
154,521
|
|
|
|
|
Credit Suisse Letter of Credit Facility
|
111,052
|
|
|
|
|
Uncommitted, Unsecured Letter of Credit Facility with Citibank Europe
|
221,909
|
|
|
|
|
Total credit facilities in U.S. dollars
|
$
|
1,201,631
|
|
|
|
|
|
|
||
|
Specialty Risks FAL Facility (1)
|
£
|
—
|
|
|
|
Total credit facilities in pound sterling
|
£
|
—
|
|
|
|
|
|
|
(1)
|
At June 30, 2019, no amounts were issued or drawn under these facilities.
|
(2)
|
These letters of credit were transferred to the Company in connection with the acquisition of the TMR Group Entities. See below under “TMR Group Entities Letters of Credit” for additional information and “Note 3. Acquisition of Tokio Millennium Re” for additional information related to the acquisition of the TMR Group Entities.
|
|
|
|
|
|
|
||||
|
|
June 30,
2019 |
|
December 31, 2018
|
|
||||
|
Redeemable noncontrolling interest - DaVinciRe
|
$
|
1,431,101
|
|
|
$
|
1,034,946
|
|
|
|
Redeemable noncontrolling interest - Medici
|
515,915
|
|
|
416,765
|
|
|
||
|
Redeemable noncontrolling interest - Vermeer
|
765,450
|
|
|
599,989
|
|
|
||
|
Redeemable noncontrolling interests
|
$
|
2,712,466
|
|
|
$
|
2,051,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three months ended
|
|
Six months ended
|
|
||||||||||||
|
|
June 30,
2019 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
|
||||||||
|
Redeemable noncontrolling interest - DaVinciRe
|
$
|
59,855
|
|
|
$
|
50,252
|
|
|
$
|
122,388
|
|
|
$
|
71,205
|
|
|
|
Redeemable noncontrolling interest - Medici
|
1,704
|
|
|
4,231
|
|
|
4,185
|
|
|
13,177
|
|
|
||||
|
Redeemable noncontrolling interest - Vermeer
|
10,253
|
|
|
—
|
|
|
15,461
|
|
|
—
|
|
|
||||
|
Net income attributable to redeemable noncontrolling interests
|
$
|
71,812
|
|
|
$
|
54,483
|
|
|
$
|
142,034
|
|
|
$
|
84,382
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three months ended
|
|
Six months ended
|
|
||||||||||||
|
|
June 30,
2019 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
|
||||||||
|
Beginning balance
|
$
|
1,097,245
|
|
|
$
|
1,032,543
|
|
|
$
|
1,034,946
|
|
|
$
|
1,011,659
|
|
|
|
Redemption of shares from redeemable noncontrolling interest, net of adjustments
|
(698
|
)
|
|
(370
|
)
|
|
(932
|
)
|
|
(439
|
)
|
|
||||
|
Sale of shares to redeemable noncontrolling interests
|
274,699
|
|
|
—
|
|
|
274,699
|
|
|
—
|
|
|
||||
|
Net income attributable to redeemable noncontrolling interest
|
59,855
|
|
|
50,252
|
|
|
122,388
|
|
|
71,205
|
|
|
||||
|
Ending balance
|
$
|
1,431,101
|
|
|
$
|
1,082,425
|
|
|
$
|
1,431,101
|
|
|
$
|
1,082,425
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three months ended
|
|
Six months ended
|
|
||||||||||||
|
|
June 30,
2019 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
|
||||||||
|
Beginning balance
|
$
|
406,958
|
|
|
$
|
392,821
|
|
|
$
|
416,765
|
|
|
$
|
284,847
|
|
|
|
Redemption of shares from redeemable noncontrolling interest, net of adjustments
|
(21,556
|
)
|
|
(42,792
|
)
|
|
(37,440
|
)
|
|
(43,503
|
)
|
|
||||
|
Sale of shares to redeemable noncontrolling interests
|
128,809
|
|
|
56,743
|
|
|
132,405
|
|
|
156,482
|
|
|
||||
|
Net income attributable to redeemable noncontrolling interest
|
1,704
|
|
|
4,231
|
|
|
4,185
|
|
|
13,177
|
|
|
||||
|
Ending balance
|
$
|
515,915
|
|
|
$
|
411,003
|
|
|
$
|
515,915
|
|
|
$
|
411,003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three months ended
|
|
Six months ended
|
|
||||||||||||
|
|
June 30,
2019 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
|
||||||||
|
Beginning balance
|
$
|
605,197
|
|
|
$
|
—
|
|
|
$
|
599,989
|
|
|
$
|
—
|
|
|
|
Sale of shares to redeemable noncontrolling interest
|
150,000
|
|
|
—
|
|
|
150,000
|
|
|
—
|
|
|
||||
|
Net income attributable to redeemable noncontrolling interest
|
10,253
|
|
|
—
|
|
|
15,461
|
|
|
—
|
|
|
||||
|
Ending balance
|
$
|
765,450
|
|
|
$
|
—
|
|
|
$
|
765,450
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three months ended
|
|
Six months ended
|
|
||||||||||||
|
(common shares in thousands)
|
June 30,
2019 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
|
||||||||
|
Numerator:
|
|
|
|
|
|
|
|
|
||||||||
|
Net income available to RenaissanceRe common shareholders
|
$
|
367,854
|
|
|
$
|
191,788
|
|
|
$
|
641,571
|
|
|
$
|
248,501
|
|
|
|
Amount allocated to participating common shareholders (1)
|
(4,393
|
)
|
|
(2,174
|
)
|
|
(7,483
|
)
|
|
(2,583
|
)
|
|
||||
|
Net income allocated to RenaissanceRe common shareholders
|
$
|
363,461
|
|
|
$
|
189,614
|
|
|
$
|
634,088
|
|
|
$
|
245,918
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
||||||||
|
Denominator for basic income per RenaissanceRe common share - weighted average common shares
|
43,483
|
|
|
39,641
|
|
|
42,774
|
|
|
39,597
|
|
|
||||
|
Per common share equivalents of employee stock options and restricted shares
|
38
|
|
|
13
|
|
|
32
|
|
|
25
|
|
|
||||
|
Denominator for diluted income per RenaissanceRe common share - adjusted weighted average common shares and assumed conversions
|
43,521
|
|
|
39,654
|
|
|
42,806
|
|
|
39,622
|
|
|
||||
|
Net income available to RenaissanceRe common shareholders per common share – basic
|
$
|
8.36
|
|
|
$
|
4.78
|
|
|
$
|
14.82
|
|
|
$
|
6.21
|
|
|
|
Net income available to RenaissanceRe common shareholders per common share – diluted
|
$
|
8.35
|
|
|
$
|
4.78
|
|
|
$
|
14.81
|
|
|
$
|
6.21
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Represents earnings attributable to holders of unvested restricted shares issued pursuant to the Company’s 2001 Stock Incentive Plan, 2016 Long-Term Incentive Plan and to the Company’s non-employee directors.
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Three months ended June 30, 2019
|
Property
|
|
Casualty and Specialty
|
|
Other
|
|
Total
|
|
||||||||
|
Gross premiums written
|
$
|
839,200
|
|
|
$
|
637,708
|
|
|
$
|
—
|
|
|
$
|
1,476,908
|
|
|
|
Net premiums written
|
$
|
544,115
|
|
|
$
|
478,850
|
|
|
$
|
—
|
|
|
$
|
1,022,965
|
|
|
|
Net premiums earned
|
$
|
425,013
|
|
|
$
|
486,489
|
|
|
$
|
—
|
|
|
$
|
911,502
|
|
|
|
Net claims and claim expenses incurred
|
146,874
|
|
|
306,501
|
|
|
(2
|
)
|
|
453,373
|
|
|
||||
|
Acquisition expenses
|
89,711
|
|
|
137,963
|
|
|
(192
|
)
|
|
227,482
|
|
|
||||
|
Operational expenses
|
36,764
|
|
|
23,016
|
|
|
34
|
|
|
59,814
|
|
|
||||
|
Underwriting income (loss)
|
$
|
151,664
|
|
|
$
|
19,009
|
|
|
$
|
160
|
|
|
170,833
|
|
|
|
|
Net investment income
|
|
|
|
|
115,832
|
|
|
115,832
|
|
|
||||||
|
Net foreign exchange gains
|
|
|
|
|
9,309
|
|
|
9,309
|
|
|
||||||
|
Equity in earnings of other ventures
|
|
|
|
|
6,812
|
|
|
6,812
|
|
|
||||||
|
Other income
|
|
|
|
|
922
|
|
|
922
|
|
|
||||||
|
Net realized and unrealized gains on investments
|
|
|
|
|
194,003
|
|
|
194,003
|
|
|
||||||
|
Corporate expenses
|
|
|
|
|
(23,847
|
)
|
|
(23,847
|
)
|
|
||||||
|
Interest expense
|
|
|
|
|
(15,534
|
)
|
|
(15,534
|
)
|
|
||||||
|
Income before taxes and redeemable noncontrolling interests
|
|
|
|
|
|
|
458,330
|
|
|
|||||||
|
Income tax expense
|
|
|
|
|
(9,475
|
)
|
|
(9,475
|
)
|
|
||||||
|
Net income attributable to redeemable noncontrolling interests
|
|
|
|
|
(71,812
|
)
|
|
(71,812
|
)
|
|
||||||
|
Dividends on preference shares
|
|
|
|
|
(9,189
|
)
|
|
(9,189
|
)
|
|
||||||
|
Net income available to RenaissanceRe common shareholders
|
|
|
|
|
|
|
$
|
367,854
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net claims and claim expenses incurred – current accident year
|
$
|
136,111
|
|
|
$
|
317,029
|
|
|
$
|
—
|
|
|
$
|
453,140
|
|
|
|
Net claims and claim expenses incurred – prior accident years
|
10,763
|
|
|
(10,528
|
)
|
|
(2
|
)
|
|
233
|
|
|
||||
|
Net claims and claim expenses incurred – total
|
$
|
146,874
|
|
|
$
|
306,501
|
|
|
$
|
(2
|
)
|
|
$
|
453,373
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net claims and claim expense ratio – current accident year
|
32.0
|
%
|
|
65.2
|
%
|
|
|
|
49.7
|
%
|
|
|||||
|
Net claims and claim expense ratio – prior accident years
|
2.6
|
%
|
|
(2.2
|
)%
|
|
|
|
—
|
%
|
|
|||||
|
Net claims and claim expense ratio – calendar year
|
34.6
|
%
|
|
63.0
|
%
|
|
|
|
49.7
|
%
|
|
|||||
|
Underwriting expense ratio
|
29.7
|
%
|
|
33.1
|
%
|
|
|
|
31.6
|
%
|
|
|||||
|
Combined ratio
|
64.3
|
%
|
|
96.1
|
%
|
|
|
|
81.3
|
%
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Six months ended June 30, 2019
|
Property
|
|
Casualty and Specialty
|
|
Other
|
|
Total
|
|
||||||||
|
Gross premiums written
|
$
|
1,871,584
|
|
|
$
|
1,169,619
|
|
|
$
|
—
|
|
|
$
|
3,041,203
|
|
|
|
Net premiums written
|
$
|
1,108,345
|
|
|
$
|
843,651
|
|
|
$
|
—
|
|
|
$
|
1,951,996
|
|
|
|
Net premiums earned
|
$
|
715,758
|
|
|
$
|
745,772
|
|
|
$
|
—
|
|
|
$
|
1,461,530
|
|
|
|
Net claims and claim expenses incurred
|
202,957
|
|
|
477,434
|
|
|
17
|
|
|
680,408
|
|
|
||||
|
Acquisition expenses
|
143,450
|
|
|
208,175
|
|
|
(192
|
)
|
|
351,433
|
|
|
||||
|
Operational expenses
|
65,308
|
|
|
39,405
|
|
|
34
|
|
|
104,747
|
|
|
||||
|
Underwriting income (loss)
|
$
|
304,043
|
|
|
$
|
20,758
|
|
|
$
|
141
|
|
|
324,942
|
|
|
|
|
Net investment income
|
|
|
|
|
197,294
|
|
|
197,294
|
|
|
||||||
|
Net foreign exchange gains
|
|
|
|
|
6,463
|
|
|
6,463
|
|
|
||||||
|
Equity in earnings of other ventures
|
|
|
|
|
11,473
|
|
|
11,473
|
|
|
||||||
|
Other income
|
|
|
|
|
4,093
|
|
|
4,093
|
|
|
||||||
|
Net realized and unrealized gains on investments
|
|
|
|
|
364,648
|
|
|
364,648
|
|
|
||||||
|
Corporate expenses
|
|
|
|
|
(62,636
|
)
|
|
(62,636
|
)
|
|
||||||
|
Interest expense
|
|
|
|
|
(27,288
|
)
|
|
(27,288
|
)
|
|
||||||
|
Income before taxes and redeemable noncontrolling interests
|
|
|
|
|
|
|
818,989
|
|
|
|||||||
|
Income tax expense
|
|
|
|
|
(17,006
|
)
|
|
(17,006
|
)
|
|
||||||
|
Net income attributable to redeemable noncontrolling interests
|
|
|
|
|
(142,034
|
)
|
|
(142,034
|
)
|
|
||||||
|
Dividends on preference shares
|
|
|
|
|
(18,378
|
)
|
|
(18,378
|
)
|
|
||||||
|
Net income available to RenaissanceRe common shareholders
|
|
|
|
|
|
|
$
|
641,571
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net claims and claim expenses incurred – current accident year
|
$
|
190,317
|
|
|
$
|
494,164
|
|
|
$
|
—
|
|
|
$
|
684,481
|
|
|
|
Net claims and claim expenses incurred – prior accident years
|
12,640
|
|
|
(16,730
|
)
|
|
17
|
|
|
(4,073
|
)
|
|
||||
|
Net claims and claim expenses incurred – total
|
$
|
202,957
|
|
|
$
|
477,434
|
|
|
$
|
17
|
|
|
$
|
680,408
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net claims and claim expense ratio – current accident year
|
26.6
|
%
|
|
66.3
|
%
|
|
|
|
46.8
|
%
|
|
|||||
|
Net claims and claim expense ratio – prior accident years
|
1.8
|
%
|
|
(2.3
|
)%
|
|
|
|
(0.2
|
)%
|
|
|||||
|
Net claims and claim expense ratio – calendar year
|
28.4
|
%
|
|
64.0
|
%
|
|
|
|
46.6
|
%
|
|
|||||
|
Underwriting expense ratio
|
29.1
|
%
|
|
33.2
|
%
|
|
|
|
31.2
|
%
|
|
|||||
|
Combined ratio
|
57.5
|
%
|
|
97.2
|
%
|
|
|
|
77.8
|
%
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Three months ended June 30, 2018
|
Property
|
|
Casualty and Specialty
|
|
Other
|
|
Total
|
|
||||||||
|
Gross premiums written
|
$
|
552,627
|
|
|
$
|
424,716
|
|
|
$
|
—
|
|
|
$
|
977,343
|
|
|
|
Net premiums written
|
$
|
297,832
|
|
|
$
|
306,677
|
|
|
$
|
—
|
|
|
$
|
604,509
|
|
|
|
Net premiums earned
|
$
|
204,138
|
|
|
$
|
225,247
|
|
|
$
|
—
|
|
|
$
|
429,385
|
|
|
|
Net claims and claim expenses incurred
|
(74,269
|
)
|
|
134,524
|
|
|
(88
|
)
|
|
60,167
|
|
|
||||
|
Acquisition expenses
|
40,850
|
|
|
64,201
|
|
|
1
|
|
|
105,052
|
|
|
||||
|
Operational expenses
|
23,810
|
|
|
13,552
|
|
|
181
|
|
|
37,543
|
|
|
||||
|
Underwriting income (loss)
|
$
|
213,747
|
|
|
$
|
12,970
|
|
|
$
|
(94
|
)
|
|
226,623
|
|
|
|
|
Net investment income
|
|
|
|
|
71,356
|
|
|
71,356
|
|
|
||||||
|
Net foreign exchange losses
|
|
|
|
|
(10,687
|
)
|
|
(10,687
|
)
|
|
||||||
|
Equity in earnings of other ventures
|
|
|
|
|
5,826
|
|
|
5,826
|
|
|
||||||
|
Other income
|
|
|
|
|
1,225
|
|
|
1,225
|
|
|
||||||
|
Net realized and unrealized losses on investments
|
|
|
|
|
(17,901
|
)
|
|
(17,901
|
)
|
|
||||||
|
Corporate expenses
|
|
|
|
|
(8,301
|
)
|
|
(8,301
|
)
|
|
||||||
|
Interest expense
|
|
|
|
|
(11,768
|
)
|
|
(11,768
|
)
|
|
||||||
|
Income before taxes and redeemable noncontrolling interests
|
|
|
|
|
|
|
256,373
|
|
|
|||||||
|
Income tax expense
|
|
|
|
|
(4,506
|
)
|
|
(4,506
|
)
|
|
||||||
|
Net income attributable to redeemable noncontrolling interests
|
|
|
|
|
(54,483
|
)
|
|
(54,483
|
)
|
|
||||||
|
Dividends on preference shares
|
|
|
|
|
(5,596
|
)
|
|
(5,596
|
)
|
|
||||||
|
Net income available to RenaissanceRe common shareholders
|
|
|
|
|
|
|
$
|
191,788
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net claims and claim expenses incurred – current accident year
|
$
|
68,876
|
|
|
$
|
147,520
|
|
|
$
|
—
|
|
|
$
|
216,396
|
|
|
|
Net claims and claim expenses incurred – prior accident years
|
(143,145
|
)
|
|
(12,996
|
)
|
|
(88
|
)
|
|
(156,229
|
)
|
|
||||
|
Net claims and claim expenses incurred – total
|
$
|
(74,269
|
)
|
|
$
|
134,524
|
|
|
$
|
(88
|
)
|
|
$
|
60,167
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net claims and claim expense ratio – current accident year
|
33.7
|
%
|
|
65.5
|
%
|
|
|
|
50.4
|
%
|
|
|||||
|
Net claims and claim expense ratio – prior accident years
|
(70.1
|
)%
|
|
(5.8
|
)%
|
|
|
|
(36.4
|
)%
|
|
|||||
|
Net claims and claim expense ratio – calendar year
|
(36.4
|
)%
|
|
59.7
|
%
|
|
|
|
14.0
|
%
|
|
|||||
|
Underwriting expense ratio
|
31.7
|
%
|
|
34.5
|
%
|
|
|
|
33.2
|
%
|
|
|||||
|
Combined ratio
|
(4.7
|
)%
|
|
94.2
|
%
|
|
|
|
47.2
|
%
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Six months ended June 30, 2018
|
Property
|
|
Casualty and Specialty
|
|
Other
|
|
Total
|
|
||||||||
|
Gross premiums written
|
$
|
1,259,595
|
|
|
$
|
877,400
|
|
|
$
|
—
|
|
|
$
|
2,136,995
|
|
|
|
Net premiums written
|
$
|
651,909
|
|
|
$
|
615,644
|
|
|
$
|
—
|
|
|
$
|
1,267,553
|
|
|
|
Net premiums earned
|
$
|
429,187
|
|
|
$
|
440,480
|
|
|
$
|
—
|
|
|
$
|
869,667
|
|
|
|
Net claims and claim expenses incurred
|
(43,662
|
)
|
|
275,602
|
|
|
(70
|
)
|
|
231,870
|
|
|
||||
|
Acquisition expenses
|
81,571
|
|
|
121,191
|
|
|
1
|
|
|
202,763
|
|
|
||||
|
Operational expenses
|
50,356
|
|
|
28,145
|
|
|
314
|
|
|
78,815
|
|
|
||||
|
Underwriting income (loss)
|
$
|
340,922
|
|
|
$
|
15,542
|
|
|
$
|
(245
|
)
|
|
356,219
|
|
|
|
|
Net investment income
|
|
|
|
|
127,832
|
|
|
127,832
|
|
|
||||||
|
Net foreign exchange losses
|
|
|
|
|
(6,930
|
)
|
|
(6,930
|
)
|
|
||||||
|
Equity in earnings of other ventures
|
|
|
|
|
6,683
|
|
|
6,683
|
|
|
||||||
|
Other loss
|
|
|
|
|
(17
|
)
|
|
(17
|
)
|
|
||||||
|
Net realized and unrealized losses on investments
|
|
|
|
|
(100,045
|
)
|
|
(100,045
|
)
|
|
||||||
|
Corporate expenses
|
|
|
|
|
(15,034
|
)
|
|
(15,034
|
)
|
|
||||||
|
Interest expense
|
|
|
|
|
(23,535
|
)
|
|
(23,535
|
)
|
|
||||||
|
Income before taxes and redeemable noncontrolling interests
|
|
|
|
|
|
|
345,173
|
|
|
|||||||
|
Income tax expense
|
|
|
|
|
(1,099
|
)
|
|
(1,099
|
)
|
|
||||||
|
Net income attributable to redeemable noncontrolling interests
|
|
|
|
|
(84,382
|
)
|
|
(84,382
|
)
|
|
||||||
|
Dividends on preference shares
|
|
|
|
|
(11,191
|
)
|
|
(11,191
|
)
|
|
||||||
|
Net income available to RenaissanceRe common shareholders
|
|
|
|
|
|
|
$
|
248,501
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net claims and claim expenses incurred – current accident year
|
$
|
127,045
|
|
|
$
|
292,389
|
|
|
$
|
—
|
|
|
$
|
419,434
|
|
|
|
Net claims and claim expenses incurred – prior accident years
|
(170,707
|
)
|
|
(16,787
|
)
|
|
(70
|
)
|
|
(187,564
|
)
|
|
||||
|
Net claims and claim expenses incurred – total
|
$
|
(43,662
|
)
|
|
$
|
275,602
|
|
|
$
|
(70
|
)
|
|
$
|
231,870
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net claims and claim expense ratio – current accident year
|
29.6
|
%
|
|
66.4
|
%
|
|
|
|
48.2
|
%
|
|
|||||
|
Net claims and claim expense ratio – prior accident years
|
(39.8
|
)%
|
|
(3.8
|
)%
|
|
|
|
(21.5
|
)%
|
|
|||||
|
Net claims and claim expense ratio – calendar year
|
(10.2
|
)%
|
|
62.6
|
%
|
|
|
|
26.7
|
%
|
|
|||||
|
Underwriting expense ratio
|
30.8
|
%
|
|
33.9
|
%
|
|
|
|
32.3
|
%
|
|
|||||
|
Combined ratio
|
20.6
|
%
|
|
96.5
|
%
|
|
|
|
59.0
|
%
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Derivative Assets
|
|
||||||||||||||||||||
|
At June 30, 2019
|
Gross Amounts of Recognized Assets
|
|
Gross Amounts Offset in the Balance Sheet
|
|
Net Amounts of Assets Presented in the Balance Sheet
|
|
Balance Sheet Location
|
|
Collateral
|
|
Net Amount
|
|
||||||||||
|
Derivative instruments not designated as hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Interest rate futures
|
$
|
87
|
|
|
$
|
85
|
|
|
$
|
2
|
|
|
Other assets
|
|
$
|
—
|
|
|
$
|
2
|
|
|
|
Interest rate swaps
|
8
|
|
|
—
|
|
|
8
|
|
|
Other assets
|
|
—
|
|
|
8
|
|
|
|||||
|
Foreign currency forward contracts (1)
|
4,980
|
|
|
379
|
|
|
4,601
|
|
|
Other assets
|
|
—
|
|
|
4,601
|
|
|
|||||
|
Foreign currency forward contracts (2)
|
199
|
|
|
199
|
|
|
—
|
|
|
Other assets
|
|
—
|
|
|
—
|
|
|
|||||
|
Credit default swaps
|
115
|
|
|
—
|
|
|
115
|
|
|
Other assets
|
|
—
|
|
|
115
|
|
|
|||||
|
Total return swaps
|
6,550
|
|
|
—
|
|
|
6,550
|
|
|
Other assets
|
|
—
|
|
|
6,550
|
|
|
|||||
|
Equity futures
|
3
|
|
|
—
|
|
|
3
|
|
|
Other assets
|
|
—
|
|
|
3
|
|
|
|||||
|
Total
|
$
|
11,942
|
|
|
$
|
663
|
|
|
$
|
11,279
|
|
|
|
|
$
|
—
|
|
|
$
|
11,279
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Derivative Liabilities
|
|
||||||||||||||||||||
|
At June 30, 2019
|
Gross Amounts of Recognized Liabilities
|
|
Gross Amounts Offset in the Balance Sheet
|
|
Net Amounts of Liabilities Presented in the Balance Sheet
|
|
Balance Sheet Location
|
|
Collateral Pledged
|
|
Net Amount
|
|
||||||||||
|
Derivative instruments not designated as hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Interest rate futures
|
$
|
294
|
|
|
$
|
85
|
|
|
$
|
209
|
|
|
Other liabilities
|
|
$
|
205
|
|
|
$
|
4
|
|
|
|
Interest rate swaps
|
26
|
|
|
—
|
|
|
26
|
|
|
Other liabilities
|
|
26
|
|
|
—
|
|
|
|||||
|
Foreign currency forward contracts (1)
|
8,857
|
|
|
—
|
|
|
8,857
|
|
|
Other liabilities
|
|
—
|
|
|
8,857
|
|
|
|||||
|
Foreign currency forward contracts (2)
|
453
|
|
|
199
|
|
|
254
|
|
|
Other liabilities
|
|
—
|
|
|
254
|
|
|
|||||
|
Total derivative instruments not designated as hedges
|
9,630
|
|
|
284
|
|
|
9,346
|
|
|
|
|
231
|
|
|
9,115
|
|
|
|||||
|
Derivative instruments designated as hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Foreign currency forward contracts (3)
|
1,379
|
|
|
—
|
|
|
1,379
|
|
|
Other liabilities
|
|
—
|
|
|
1,379
|
|
|
|||||
|
Total
|
$
|
11,009
|
|
|
$
|
284
|
|
|
$
|
10,725
|
|
|
|
|
$
|
231
|
|
|
$
|
10,494
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Contracts used to manage foreign currency risks in underwriting and non-investment operations.
|
(2)
|
Contracts used to manage foreign currency risks in investment operations.
|
(3)
|
Contracts designated as hedges of a net investment in a foreign operation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Derivative Assets
|
|
||||||||||||||||||||
|
At December 31, 2018
|
Gross Amounts of Recognized Assets
|
|
Gross Amounts Offset in the Balance Sheet
|
|
Net Amounts of Assets Presented in the Balance Sheet
|
|
Balance Sheet Location
|
|
Collateral
|
|
Net Amount
|
|
||||||||||
|
Derivative instruments not designated as hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Interest rate futures
|
$
|
971
|
|
|
636
|
|
|
$
|
335
|
|
|
Other assets
|
|
$
|
—
|
|
|
$
|
335
|
|
|
|
|
Interest rate swaps
|
860
|
|
|
—
|
|
|
860
|
|
|
Other assets
|
|
—
|
|
|
860
|
|
|
|||||
|
Foreign currency forward contracts (1)
|
16,459
|
|
|
2,260
|
|
|
14,199
|
|
|
Other assets
|
|
—
|
|
|
14,199
|
|
|
|||||
|
Foreign currency forward contracts (2)
|
3,194
|
|
|
71
|
|
|
3,123
|
|
|
Other assets
|
|
—
|
|
|
3,123
|
|
|
|||||
|
Equity futures
|
1,390
|
|
|
977
|
|
|
413
|
|
|
Other assets
|
|
—
|
|
|
413
|
|
|
|||||
|
Total
|
$
|
22,874
|
|
|
$
|
3,944
|
|
|
$
|
18,930
|
|
|
|
|
$
|
—
|
|
|
$
|
18,930
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Derivative Liabilities
|
|
||||||||||||||||||||
|
At December 31, 2018
|
Gross Amounts of Recognized Liabilities
|
|
Gross Amounts Offset in the Balance Sheet
|
|
Net Amounts of Liabilities Presented in the Balance Sheet
|
|
Balance Sheet Location
|
|
Collateral Pledged
|
|
Net Amount
|
|
||||||||||
|
Derivative instruments not designated as hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Interest rate futures
|
$
|
910
|
|
|
636
|
|
|
$
|
273
|
|
|
Other liabilities
|
|
$
|
273
|
|
|
$
|
—
|
|
|
|
|
Interest rate swaps
|
506
|
|
|
—
|
|
|
506
|
|
|
Other liabilities
|
|
254
|
|
|
252
|
|
|
|||||
|
Foreign currency forward contracts (1)
|
4,154
|
|
|
—
|
|
|
4,154
|
|
|
Other liabilities
|
|
—
|
|
|
4,154
|
|
|
|||||
|
Foreign currency forward contracts (2)
|
72
|
|
|
71
|
|
|
1
|
|
|
Other liabilities
|
|
—
|
|
|
1
|
|
|
|||||
|
Credit default swaps
|
1,606
|
|
|
—
|
|
|
1,606
|
|
|
Other liabilities
|
|
1,605
|
|
|
1
|
|
|
|||||
|
Equity futures
|
977
|
|
|
977
|
|
|
—
|
|
|
Other liabilities
|
|
—
|
|
|
—
|
|
|
|||||
|
Total
|
$
|
8,225
|
|
|
$
|
1,684
|
|
|
$
|
6,540
|
|
|
|
|
$
|
2,132
|
|
|
$
|
4,408
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Contracts used to manage foreign currency risks in underwriting and non-investment operations.
|
(2)
|
Contracts used to manage foreign currency risks in investment operations.
|
|
|
|
|
|
|
|
||||
|
|
Location of gain (loss)
recognized on derivatives
|
Amount of gain (loss) recognized on
derivatives
|
|
||||||
|
Three months ended June 30,
|
|
2019
|
|
2018
|
|
||||
|
Derivative instruments not designated as hedges
|
|
|
|
|
|
||||
|
Interest rate futures
|
Net realized and unrealized gains (losses) on investments
|
$
|
23,077
|
|
|
$
|
(115
|
)
|
|
|
Interest rate swaps
|
Net realized and unrealized gains (losses) on investments
|
835
|
|
|
241
|
|
|
||
|
Foreign currency forward contracts (1)
|
Net foreign exchange gains (losses)
|
(11,616
|
)
|
|
(6,374
|
)
|
|
||
|
Foreign currency forward contracts (2)
|
Net foreign exchange gains (losses)
|
590
|
|
|
1,343
|
|
|
||
|
Credit default swaps
|
Net realized and unrealized gains (losses) on investments
|
1,046
|
|
|
884
|
|
|
||
|
Total return swaps
|
Net realized and unrealized gains (losses) on investments
|
4,501
|
|
|
—
|
|
|
||
|
Equity futures
|
Net realized and unrealized gains (losses) on investments
|
7,714
|
|
|
28
|
|
|
||
|
Total derivative instruments not designated as hedges
|
|
26,147
|
|
|
(3,993
|
)
|
|
||
|
Derivative instruments designated as hedges
|
|
|
|
|
|
||||
|
Foreign currency forward contracts (3)
|
Accumulated other comprehensive loss
|
844
|
|
|
—
|
|
|
||
|
Total
|
|
$
|
26,991
|
|
|
$
|
(3,993
|
)
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
|
|
Location of gain (loss)
recognized on derivatives
|
Amount of gain (loss) recognized on
derivatives
|
|
||||||
|
Six months ended June 30,
|
|
2019
|
|
2018
|
|
||||
|
Derivative instruments not designated as hedges
|
|
|
|
|
|
||||
|
Interest rate futures
|
Net realized and unrealized gains (losses) on investments
|
$
|
29,307
|
|
|
$
|
(2,439
|
)
|
|
|
Interest rate swaps
|
Net realized and unrealized gains (losses) on investments
|
1,184
|
|
|
135
|
|
|
||
|
Foreign currency forward contracts (1)
|
Net foreign exchange gains (losses)
|
(7,174
|
)
|
|
369
|
|
|
||
|
Foreign currency forward contracts (2)
|
Net foreign exchange gains (losses)
|
(2,281
|
)
|
|
652
|
|
|
||
|
Credit default swaps
|
Net realized and unrealized gains (losses) on investments
|
5,456
|
|
|
(1,037
|
)
|
|
||
|
Total return swaps
|
Net realized and unrealized gains (losses) on investments
|
5,035
|
|
|
—
|
|
|
||
|
Equity futures
|
Net realized and unrealized gains (losses) on investments
|
9,987
|
|
|
15
|
|
|
||
|
Total derivative instruments not designated as hedges
|
|
41,514
|
|
|
(2,305
|
)
|
|
||
|
Derivative instruments designated as hedges
|
|
|
|
|
|
||||
|
Foreign currency forward contracts (3)
|
Accumulated other comprehensive loss
|
844
|
|
|
—
|
|
|
||
|
Total
|
|
$
|
42,358
|
|
|
$
|
(2,305
|
)
|
|
|
|
|
|
|
|
|
(1)
|
Contracts used to manage foreign currency risks in underwriting and non-investment operations.
|
(2)
|
Contracts used to manage foreign currency risks in investment operations.
|
(3)
|
Contracts designated as hedges of a net investment in a foreign operation.
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three months ended
|
|
Six months ended
|
|
||||||||||||
|
|
June 30,
2019 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
|
||||||||
|
Weighted average of U.S. dollar equivalent of foreign denominated net assets
|
$
|
80,037
|
|
|
$
|
—
|
|
|
$
|
80,037
|
|
|
$
|
—
|
|
|
|
Derivative gains (1)
|
$
|
844
|
|
|
$
|
—
|
|
|
$
|
844
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Derivative gains from derivative instruments designated as hedges of the net investment in a foreign operation are recorded in foreign currency translation adjustments, net of tax, within accumulated other comprehensive loss on the Company’s consolidated statements of changes in shareholders’ equity.
|
|
|
|
|
|
|
||||
|
|
Future minimum lease payments
|
|
||||||
|
|
Operating leases
|
|
Finance leases
|
|
||||
|
2019 (remaining)
|
$
|
3,935
|
|
|
$
|
1,665
|
|
|
|
2020
|
5,439
|
|
|
3,336
|
|
|
||
|
2021
|
4,962
|
|
|
3,336
|
|
|
||
|
2022
|
4,235
|
|
|
3,336
|
|
|
||
|
2023
|
1,569
|
|
|
2,830
|
|
|
||
|
2024
|
86
|
|
|
2,661
|
|
|
||
|
After 2024
|
211
|
|
|
10,129
|
|
|
||
|
Future minimum lease payments under existing leases
|
$
|
20,437
|
|
|
$
|
27,293
|
|
|
|
|
|
|
|
|
Condensed Consolidating Balance Sheet at June 30, 2019
|
RenaissanceRe
Holdings Ltd. (Parent Guarantor) |
|
RenRe North
America Holdings Inc. (Subsidiary Issuer) |
|
RenaissanceRe Finance Inc. (Subsidiary Issuer)
|
|
Other
RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) |
|
Consolidating
Adjustments (2) |
|
RenaissanceRe
Consolidated |
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total investments
|
$
|
69,829
|
|
|
$
|
116,814
|
|
|
$
|
7,977
|
|
|
$
|
16,193,696
|
|
|
$
|
—
|
|
|
$
|
16,388,316
|
|
Cash and cash equivalents
|
5,196
|
|
|
3,676
|
|
|
4,456
|
|
|
657,298
|
|
|
—
|
|
|
670,626
|
|
||||||
Investments in subsidiaries
|
5,613,992
|
|
|
61,282
|
|
|
1,278,129
|
|
|
—
|
|
|
(6,953,403
|
)
|
|
—
|
|
||||||
Due from subsidiaries and affiliates
|
17,983
|
|
|
101,579
|
|
|
—
|
|
|
—
|
|
|
(119,562
|
)
|
|
—
|
|
||||||
Premiums receivable
|
—
|
|
|
—
|
|
|
—
|
|
|
3,140,688
|
|
|
—
|
|
|
3,140,688
|
|
||||||
Prepaid reinsurance premiums
|
—
|
|
|
—
|
|
|
—
|
|
|
1,158,534
|
|
|
—
|
|
|
1,158,534
|
|
||||||
Reinsurance recoverable
|
—
|
|
|
—
|
|
|
—
|
|
|
2,865,150
|
|
|
—
|
|
|
2,865,150
|
|
||||||
Accrued investment income
|
(153
|
)
|
|
258
|
|
|
5
|
|
|
76,839
|
|
|
—
|
|
|
76,949
|
|
||||||
Deferred acquisition costs
|
—
|
|
|
—
|
|
|
—
|
|
|
780,756
|
|
|
—
|
|
|
780,756
|
|
||||||
Receivable for investments sold
|
83
|
|
|
7
|
|
|
—
|
|
|
395,697
|
|
|
—
|
|
|
395,787
|
|
||||||
Other assets
|
805,017
|
|
|
14,172
|
|
|
317,709
|
|
|
(1,871,207
|
)
|
|
1,079,247
|
|
|
344,938
|
|
||||||
Goodwill and other intangible assets
|
118,344
|
|
|
—
|
|
|
—
|
|
|
146,873
|
|
|
—
|
|
|
265,217
|
|
||||||
Total assets
|
$
|
6,630,291
|
|
|
$
|
297,788
|
|
|
$
|
1,608,276
|
|
|
$
|
23,544,324
|
|
|
$
|
(5,993,718
|
)
|
|
$
|
26,086,961
|
|
Liabilities, Noncontrolling Interests and Shareholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reserve for claims and claim expenses
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,484,848
|
|
|
$
|
—
|
|
|
$
|
8,484,848
|
|
Unearned premiums
|
—
|
|
|
—
|
|
|
—
|
|
|
3,362,520
|
|
|
—
|
|
|
3,362,520
|
|
||||||
Debt
|
691,016
|
|
|
—
|
|
|
843,680
|
|
|
148,194
|
|
|
(300,000
|
)
|
|
1,382,890
|
|
||||||
Amounts due to subsidiaries and affiliates
|
2,312
|
|
|
68
|
|
|
109,583
|
|
|
—
|
|
|
(111,963
|
)
|
|
—
|
|
||||||
Reinsurance balances payable
|
—
|
|
|
—
|
|
|
—
|
|
|
3,280,048
|
|
|
—
|
|
|
3,280,048
|
|
||||||
Payable for investments purchased
|
—
|
|
|
36
|
|
|
—
|
|
|
554,660
|
|
|
—
|
|
|
554,696
|
|
||||||
Other liabilities
|
24,121
|
|
|
308
|
|
|
14,036
|
|
|
368,521
|
|
|
(10,335
|
)
|
|
396,651
|
|
||||||
Total liabilities
|
717,449
|
|
|
412
|
|
|
967,299
|
|
|
16,198,791
|
|
|
(422,298
|
)
|
|
17,461,653
|
|
||||||
Redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
2,712,466
|
|
|
—
|
|
|
2,712,466
|
|
||||||
Shareholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total shareholders’ equity
|
5,912,842
|
|
|
297,376
|
|
|
640,977
|
|
|
4,633,067
|
|
|
(5,571,420
|
)
|
|
5,912,842
|
|
||||||
Total liabilities, noncontrolling interests and shareholders’ equity
|
$
|
6,630,291
|
|
|
$
|
297,788
|
|
|
$
|
1,608,276
|
|
|
$
|
23,544,324
|
|
|
$
|
(5,993,718
|
)
|
|
$
|
26,086,961
|
|
(1)
|
Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations.
|
(2)
|
Includes Parent Guarantor, Subsidiary Guarantor and Subsidiary Issuer consolidating adjustments.
|
Condensed Consolidating Balance Sheet at December 31, 2018
|
RenaissanceRe
Holdings Ltd.
(Parent
Guarantor)
|
|
RenRe North
America Holdings Inc. (Subsidiary Issuer) |
|
RenaissanceRe Finance Inc. (Subsidiary Issuer)
|
|
Other
RenaissanceRe
Holdings Ltd.
Subsidiaries and
Eliminations
(Non-guarantor
Subsidiaries)
(1)
|
|
Consolidating
Adjustments
(2)
|
|
RenaissanceRe
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total investments
|
$
|
313,360
|
|
|
$
|
77,842
|
|
|
$
|
28,885
|
|
|
$
|
11,465,660
|
|
|
$
|
—
|
|
|
$
|
11,885,747
|
|
Cash and cash equivalents
|
3,534
|
|
|
3,350
|
|
|
9,604
|
|
|
1,091,434
|
|
|
—
|
|
|
1,107,922
|
|
||||||
Investments in subsidiaries
|
4,414,475
|
|
|
58,458
|
|
|
1,215,663
|
|
|
—
|
|
|
(5,688,596
|
)
|
|
—
|
|
||||||
Due from subsidiaries and affiliates
|
57,039
|
|
|
101,579
|
|
|
—
|
|
|
—
|
|
|
(158,618
|
)
|
|
—
|
|
||||||
Premiums receivable
|
—
|
|
|
—
|
|
|
—
|
|
|
1,537,188
|
|
|
—
|
|
|
1,537,188
|
|
||||||
Prepaid reinsurance premiums
|
—
|
|
|
—
|
|
|
—
|
|
|
616,185
|
|
|
—
|
|
|
616,185
|
|
||||||
Reinsurance recoverable
|
—
|
|
|
—
|
|
|
—
|
|
|
2,372,221
|
|
|
—
|
|
|
2,372,221
|
|
||||||
Accrued investment income
|
1,046
|
|
|
310
|
|
|
127
|
|
|
49,828
|
|
|
—
|
|
|
51,311
|
|
||||||
Deferred acquisition costs
|
—
|
|
|
—
|
|
|
—
|
|
|
476,661
|
|
|
—
|
|
|
476,661
|
|
||||||
Receivable for investments sold
|
203
|
|
|
23,885
|
|
|
—
|
|
|
232,328
|
|
|
—
|
|
|
256,416
|
|
||||||
Other assets
|
458,842
|
|
|
22,571
|
|
|
313,636
|
|
|
(1,403,636
|
)
|
|
743,714
|
|
|
135,127
|
|
||||||
Goodwill and other intangible assets
|
120,476
|
|
|
—
|
|
|
—
|
|
|
116,942
|
|
|
—
|
|
|
237,418
|
|
||||||
Total assets
|
$
|
5,368,975
|
|
|
$
|
287,995
|
|
|
$
|
1,567,915
|
|
|
$
|
16,554,811
|
|
|
$
|
(5,103,500
|
)
|
|
$
|
18,676,196
|
|
Liabilities, Redeemable Noncontrolling Interest and Shareholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reserve for claims and claim expenses
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,076,271
|
|
|
$
|
—
|
|
|
$
|
6,076,271
|
|
Unearned premiums
|
—
|
|
|
—
|
|
|
—
|
|
|
1,716,021
|
|
|
—
|
|
|
1,716,021
|
|
||||||
Debt
|
300,000
|
|
|
—
|
|
|
843,086
|
|
|
148,041
|
|
|
(300,000
|
)
|
|
991,127
|
|
||||||
Amounts due to subsidiaries and affiliates
|
6,453
|
|
|
217
|
|
|
102,243
|
|
|
—
|
|
|
(108,913
|
)
|
|
—
|
|
||||||
Reinsurance balances payable
|
—
|
|
|
—
|
|
|
—
|
|
|
1,902,056
|
|
|
—
|
|
|
1,902,056
|
|
||||||
Payable for investments purchased
|
—
|
|
|
24
|
|
|
—
|
|
|
380,308
|
|
|
—
|
|
|
380,332
|
|
||||||
Other liabilities
|
17,442
|
|
|
5,362
|
|
|
13,918
|
|
|
482,422
|
|
|
(5,535
|
)
|
|
513,609
|
|
||||||
Total liabilities
|
323,895
|
|
|
5,603
|
|
|
959,247
|
|
|
10,705,119
|
|
|
(414,448
|
)
|
|
11,579,416
|
|
||||||
Redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
2,051,700
|
|
|
—
|
|
|
2,051,700
|
|
||||||
Shareholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total shareholders’ equity
|
5,045,080
|
|
|
282,392
|
|
|
608,668
|
|
|
3,797,992
|
|
|
(4,689,052
|
)
|
|
5,045,080
|
|
||||||
Total liabilities, redeemable noncontrolling interest and shareholders’ equity
|
$
|
5,368,975
|
|
|
$
|
287,995
|
|
|
$
|
1,567,915
|
|
|
$
|
16,554,811
|
|
|
$
|
(5,103,500
|
)
|
|
$
|
18,676,196
|
|
(1)
|
Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations.
|
(2)
|
Includes Parent Guarantor and Subsidiary Issuer consolidating adjustments.
|
Condensed Consolidating Statement of Operations for
the three months ended June 30, 2019 |
RenaissanceRe
Holdings Ltd. (Parent Guarantor) |
|
RenRe North
America Holdings Inc. (Subsidiary Issuer) |
|
RenaissanceRe Finance Inc. (Subsidiary Issuer)
|
|
Other
RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) |
|
Consolidating
Adjustments (2) |
|
RenaissanceRe
Consolidated |
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net premiums earned
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
911,502
|
|
|
$
|
—
|
|
|
$
|
911,502
|
|
Net investment income
|
10,676
|
|
|
524
|
|
|
2,017
|
|
|
114,964
|
|
|
(12,349
|
)
|
|
115,832
|
|
||||||
Net foreign exchange (losses) gains
|
(6,059
|
)
|
|
—
|
|
|
—
|
|
|
15,368
|
|
|
—
|
|
|
9,309
|
|
||||||
Equity in earnings of other ventures
|
—
|
|
|
—
|
|
|
652
|
|
|
6,160
|
|
|
—
|
|
|
6,812
|
|
||||||
Other income
|
—
|
|
|
—
|
|
|
—
|
|
|
922
|
|
|
—
|
|
|
922
|
|
||||||
Net realized and unrealized gains on investments
|
4,516
|
|
|
6,063
|
|
|
102
|
|
|
183,322
|
|
|
—
|
|
|
194,003
|
|
||||||
Total revenues
|
9,133
|
|
|
6,587
|
|
|
2,771
|
|
|
1,232,238
|
|
|
(12,349
|
)
|
|
1,238,380
|
|
||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net claims and claim expenses incurred
|
—
|
|
|
—
|
|
|
—
|
|
|
453,373
|
|
|
—
|
|
|
453,373
|
|
||||||
Acquisition expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
227,482
|
|
|
—
|
|
|
227,482
|
|
||||||
Operational expenses
|
2,135
|
|
|
16
|
|
|
8,607
|
|
|
21,190
|
|
|
27,866
|
|
|
59,814
|
|
||||||
Corporate expenses
|
3,842
|
|
|
—
|
|
|
9
|
|
|
18,084
|
|
|
1,912
|
|
|
23,847
|
|
||||||
Interest expense
|
5,693
|
|
|
—
|
|
|
9,254
|
|
|
587
|
|
|
—
|
|
|
15,534
|
|
||||||
Total expenses
|
11,670
|
|
|
16
|
|
|
17,870
|
|
|
720,716
|
|
|
29,778
|
|
|
780,050
|
|
||||||
(Loss) income before equity in net income of subsidiaries and taxes
|
(2,537
|
)
|
|
6,571
|
|
|
(15,099
|
)
|
|
511,522
|
|
|
(42,127
|
)
|
|
458,330
|
|
||||||
Equity in net income of subsidiaries
|
378,726
|
|
|
1,717
|
|
|
28,655
|
|
|
—
|
|
|
(409,098
|
)
|
|
—
|
|
||||||
Income before taxes
|
376,189
|
|
|
8,288
|
|
|
13,556
|
|
|
511,522
|
|
|
(451,225
|
)
|
|
458,330
|
|
||||||
Income tax benefit (expense)
|
854
|
|
|
(1,348
|
)
|
|
1,732
|
|
|
(10,713
|
)
|
|
—
|
|
|
(9,475
|
)
|
||||||
Net income
|
377,043
|
|
|
6,940
|
|
|
15,288
|
|
|
500,809
|
|
|
(451,225
|
)
|
|
448,855
|
|
||||||
Net income attributable to redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(71,812
|
)
|
|
—
|
|
|
(71,812
|
)
|
||||||
Net income attributable to RenaissanceRe
|
377,043
|
|
|
6,940
|
|
|
15,288
|
|
|
428,997
|
|
|
(451,225
|
)
|
|
377,043
|
|
||||||
Dividends on preference shares
|
(9,189
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,189
|
)
|
||||||
Net income available attributable to RenaissanceRe common shareholders
|
$
|
367,854
|
|
|
$
|
6,940
|
|
|
$
|
15,288
|
|
|
$
|
428,997
|
|
|
$
|
(451,225
|
)
|
|
$
|
367,854
|
|
(1)
|
Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations.
|
(2)
|
Includes Parent Guarantor and Subsidiary Issuer consolidating adjustments.
|
Condensed Consolidating Statement of Comprehensive Income for the three months ended June 30, 2019
|
RenaissanceRe
Holdings Ltd. (Parent Guarantor) |
|
RenRe North
America Holdings Inc. (Subsidiary Issuer) |
|
RenaissanceRe Finance, Inc. (Subsidiary Issuer)
|
|
Other
RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) |
|
Consolidating
Adjustments (2) |
|
RenaissanceRe
Consolidated |
||||||||||||
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
$
|
377,043
|
|
|
$
|
6,940
|
|
|
$
|
15,288
|
|
|
$
|
500,809
|
|
|
$
|
(451,225
|
)
|
|
$
|
448,855
|
|
Change in net unrealized gains on investments
|
—
|
|
|
—
|
|
|
—
|
|
|
1,309
|
|
|
—
|
|
|
1,309
|
|
||||||
Foreign currency translation adjustments, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,708
|
)
|
|
—
|
|
|
(3,708
|
)
|
||||||
Comprehensive income
|
377,043
|
|
|
6,940
|
|
|
15,288
|
|
|
498,410
|
|
|
(451,225
|
)
|
|
446,456
|
|
||||||
Net income attributable to redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(71,812
|
)
|
|
—
|
|
|
(71,812
|
)
|
||||||
Comprehensive income attributable to redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(71,812
|
)
|
|
—
|
|
|
(71,812
|
)
|
||||||
Comprehensive income attributable to RenaissanceRe
|
$
|
377,043
|
|
|
$
|
6,940
|
|
|
$
|
15,288
|
|
|
$
|
426,598
|
|
|
$
|
(451,225
|
)
|
|
$
|
374,644
|
|
(1)
|
Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations.
|
(2)
|
Includes Parent Guarantor and Subsidiary Issuer consolidating adjustments.
|
Condensed Consolidating Statement of Operations for
the six months ended June 30, 2019 |
RenaissanceRe
Holdings Ltd. (Parent Guarantor) |
|
RenRe North
America Holdings Inc. (Subsidiary Issuer) |
|
RenaissanceRe Finance Inc. (Subsidiary Issuer)
|
|
Other
RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) |
|
Consolidating
Adjustments (2) |
|
RenaissanceRe
Consolidated |
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net premiums earned
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,461,530
|
|
|
$
|
—
|
|
|
$
|
1,461,530
|
|
Net investment income
|
18,953
|
|
|
1,119
|
|
|
4,077
|
|
|
194,296
|
|
|
(21,151
|
)
|
|
197,294
|
|
||||||
Net foreign exchange (losses) gains
|
(6,060
|
)
|
|
—
|
|
|
—
|
|
|
12,523
|
|
|
—
|
|
|
6,463
|
|
||||||
Equity in earnings of other ventures
|
—
|
|
|
—
|
|
|
1,617
|
|
|
9,856
|
|
|
—
|
|
|
11,473
|
|
||||||
Other income
|
—
|
|
|
—
|
|
|
—
|
|
|
4,093
|
|
|
—
|
|
|
4,093
|
|
||||||
Net realized and unrealized gains on investments
|
5,518
|
|
|
14,222
|
|
|
211
|
|
|
344,697
|
|
|
—
|
|
|
364,648
|
|
||||||
Total revenues
|
18,411
|
|
|
15,341
|
|
|
5,905
|
|
|
2,026,995
|
|
|
(21,151
|
)
|
|
2,045,501
|
|
||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net claims and claim expenses incurred
|
—
|
|
|
—
|
|
|
—
|
|
|
680,408
|
|
|
—
|
|
|
680,408
|
|
||||||
Acquisition expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
351,433
|
|
|
—
|
|
|
351,433
|
|
||||||
Operational expenses
|
2,604
|
|
|
27
|
|
|
20,940
|
|
|
63,799
|
|
|
17,377
|
|
|
104,747
|
|
||||||
Corporate expenses
|
42,670
|
|
|
—
|
|
|
9
|
|
|
16,162
|
|
|
3,795
|
|
|
62,636
|
|
||||||
Interest expense
|
7,576
|
|
|
—
|
|
|
18,506
|
|
|
1,206
|
|
|
—
|
|
|
27,288
|
|
||||||
Total expenses
|
52,850
|
|
|
27
|
|
|
39,455
|
|
|
1,113,008
|
|
|
21,172
|
|
|
1,226,512
|
|
||||||
(Loss) income before equity in net income of subsidiaries and taxes
|
(34,439
|
)
|
|
15,314
|
|
|
(33,550
|
)
|
|
913,987
|
|
|
(42,323
|
)
|
|
818,989
|
|
||||||
Equity in net income of subsidiaries
|
693,613
|
|
|
2,545
|
|
|
62,187
|
|
|
—
|
|
|
(758,345
|
)
|
|
—
|
|
||||||
Income before taxes
|
659,174
|
|
|
17,859
|
|
|
28,637
|
|
|
913,987
|
|
|
(800,668
|
)
|
|
818,989
|
|
||||||
Income tax benefit (expense)
|
775
|
|
|
(3,153
|
)
|
|
3,394
|
|
|
(18,022
|
)
|
|
—
|
|
|
(17,006
|
)
|
||||||
Net income
|
659,949
|
|
|
14,706
|
|
|
32,031
|
|
|
895,965
|
|
|
(800,668
|
)
|
|
801,983
|
|
||||||
Net income attributable to redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(142,034
|
)
|
|
—
|
|
|
(142,034
|
)
|
||||||
Net income attributable to RenaissanceRe
|
659,949
|
|
|
14,706
|
|
|
32,031
|
|
|
753,931
|
|
|
(800,668
|
)
|
|
659,949
|
|
||||||
Dividends on preference shares
|
(18,378
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18,378
|
)
|
||||||
Net income available to RenaissanceRe common shareholders
|
$
|
641,571
|
|
|
$
|
14,706
|
|
|
$
|
32,031
|
|
|
$
|
753,931
|
|
|
$
|
(800,668
|
)
|
|
$
|
641,571
|
|
(1)
|
Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations.
|
(2)
|
Includes Parent Guarantor, Subsidiary Guarantor and Subsidiary Issuer consolidating adjustments.
|
Condensed Consolidating Statement of Comprehensive Income for the six months ended June 30, 2019
|
RenaissanceRe
Holdings Ltd. (Parent Guarantor) |
|
RenRe North
America Holdings Inc. (Subsidiary Issuer) |
|
RenaissanceRe Finance Inc. (Subsidiary Issuer)
|
|
Other
RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) |
|
Consolidating
Adjustments (2) |
|
RenaissanceRe
Consolidated |
||||||||||||
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
$
|
659,949
|
|
|
$
|
14,706
|
|
|
$
|
32,031
|
|
|
$
|
895,965
|
|
|
$
|
(800,668
|
)
|
|
$
|
801,983
|
|
Change in net unrealized gains on investments
|
—
|
|
|
—
|
|
|
—
|
|
|
1,272
|
|
|
—
|
|
|
1,272
|
|
||||||
Foreign currency translation adjustments, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,708
|
)
|
|
—
|
|
|
(3,708
|
)
|
||||||
Comprehensive income
|
659,949
|
|
|
14,706
|
|
|
32,031
|
|
|
893,529
|
|
|
(800,668
|
)
|
|
799,547
|
|
||||||
Net income attributable to redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(142,034
|
)
|
|
—
|
|
|
(142,034
|
)
|
||||||
Comprehensive income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(142,034
|
)
|
|
—
|
|
|
(142,034
|
)
|
||||||
Comprehensive income attributable to RenaissanceRe
|
$
|
659,949
|
|
|
$
|
14,706
|
|
|
$
|
32,031
|
|
|
$
|
751,495
|
|
|
$
|
(800,668
|
)
|
|
$
|
657,513
|
|
(1)
|
Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations.
|
(2)
|
Includes Parent Guarantor, Subsidiary Guarantor and Subsidiary Issuer consolidating adjustments.
|
Condensed Consolidating Statement of Operations for
the three months ended June 30, 2018 |
RenaissanceRe
Holdings Ltd. (Parent Guarantor) |
|
RenRe North
America Holdings Inc. (Subsidiary Issuer) |
|
RenaissanceRe Finance Inc. (Subsidiary Issuer)
|
|
Other
RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) |
|
Consolidating
Adjustments (2) |
|
RenaissanceRe
Consolidated |
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net premiums earned
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
429,385
|
|
|
$
|
—
|
|
|
$
|
429,385
|
|
Net investment income
|
5,927
|
|
|
577
|
|
|
1,206
|
|
|
71,257
|
|
|
(7,611
|
)
|
|
71,356
|
|
||||||
Net foreign exchange (losses) gains
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(10,686
|
)
|
|
—
|
|
|
(10,687
|
)
|
||||||
Equity in earnings of other ventures
|
—
|
|
|
—
|
|
|
544
|
|
|
5,282
|
|
|
—
|
|
|
5,826
|
|
||||||
Other income
|
—
|
|
|
—
|
|
|
—
|
|
|
1,225
|
|
|
—
|
|
|
1,225
|
|
||||||
Net realized and unrealized gains (losses) on investments
|
16
|
|
|
1,713
|
|
|
(67
|
)
|
|
(19,563
|
)
|
|
—
|
|
|
(17,901
|
)
|
||||||
Total revenues
|
5,942
|
|
|
2,290
|
|
|
1,683
|
|
|
476,900
|
|
|
(7,611
|
)
|
|
479,204
|
|
||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net claims and claim expenses incurred
|
—
|
|
|
—
|
|
|
—
|
|
|
60,167
|
|
|
—
|
|
|
60,167
|
|
||||||
Acquisition expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
105,052
|
|
|
—
|
|
|
105,052
|
|
||||||
Operational expenses
|
2,668
|
|
|
21
|
|
|
8,174
|
|
|
33,106
|
|
|
(6,426
|
)
|
|
37,543
|
|
||||||
Corporate expenses
|
5,036
|
|
|
—
|
|
|
7
|
|
|
3,258
|
|
|
—
|
|
|
8,301
|
|
||||||
Interest expense
|
1,108
|
|
|
—
|
|
|
9,254
|
|
|
2,514
|
|
|
(1,108
|
)
|
|
11,768
|
|
||||||
Total expenses
|
8,812
|
|
|
21
|
|
|
17,435
|
|
|
204,097
|
|
|
(7,534
|
)
|
|
222,831
|
|
||||||
(Loss) income before equity in net income of subsidiaries and taxes
|
(2,870
|
)
|
|
2,269
|
|
|
(15,752
|
)
|
|
272,803
|
|
|
(77
|
)
|
|
256,373
|
|
||||||
Equity in net income of subsidiaries
|
202,525
|
|
|
716
|
|
|
21,152
|
|
|
—
|
|
|
(224,393
|
)
|
|
—
|
|
||||||
Income before taxes
|
199,655
|
|
|
2,985
|
|
|
5,400
|
|
|
272,803
|
|
|
(224,470
|
)
|
|
256,373
|
|
||||||
Income tax benefit (expense)
|
(2,271
|
)
|
|
(468
|
)
|
|
2,022
|
|
|
(3,789
|
)
|
|
—
|
|
|
(4,506
|
)
|
||||||
Net income
|
197,384
|
|
|
2,517
|
|
|
7,422
|
|
|
269,014
|
|
|
(224,470
|
)
|
|
251,867
|
|
||||||
Net income attributable to redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(54,483
|
)
|
|
—
|
|
|
(54,483
|
)
|
||||||
Net income attributable to RenaissanceRe
|
197,384
|
|
|
2,517
|
|
|
7,422
|
|
|
214,531
|
|
|
(224,470
|
)
|
|
197,384
|
|
||||||
Dividends on preference shares
|
(5,596
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,596
|
)
|
||||||
Net income available to RenaissanceRe common shareholders
|
$
|
191,788
|
|
|
$
|
2,517
|
|
|
$
|
7,422
|
|
|
$
|
214,531
|
|
|
$
|
(224,470
|
)
|
|
$
|
191,788
|
|
(1)
|
Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations.
|
(2)
|
Includes Parent Guarantor and Subsidiary Issuer consolidating adjustments.
|
Condensed Consolidating Statement of Comprehensive Income for the three months ended June 30, 2018
|
RenaissanceRe
Holdings Ltd. (Parent Guarantor) |
|
RenRe North
America Holdings Inc. (Subsidiary Issuer) |
|
RenaissanceRe Finance Inc. (Subsidiary Issuer)
|
|
Other
RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) |
|
Consolidating
Adjustments (2) |
|
RenaissanceRe
Consolidated |
||||||||||||
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
$
|
197,384
|
|
|
$
|
2,517
|
|
|
$
|
7,422
|
|
|
$
|
269,014
|
|
|
$
|
(224,470
|
)
|
|
$
|
251,867
|
|
Change in net unrealized gains on investments
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,295
|
)
|
|
—
|
|
|
(1,295
|
)
|
||||||
Comprehensive income
|
197,384
|
|
|
2,517
|
|
|
7,422
|
|
|
267,719
|
|
|
(224,470
|
)
|
|
250,572
|
|
||||||
Net income attributable to redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(54,483
|
)
|
|
—
|
|
|
(54,483
|
)
|
||||||
Comprehensive income attributable to redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(54,483
|
)
|
|
—
|
|
|
(54,483
|
)
|
||||||
Comprehensive income attributable to RenaissanceRe
|
$
|
197,384
|
|
|
$
|
2,517
|
|
|
$
|
7,422
|
|
|
$
|
213,236
|
|
|
$
|
(224,470
|
)
|
|
$
|
196,089
|
|
(1)
|
Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations.
|
(2)
|
Includes Parent Guarantor and Subsidiary Issuer consolidating adjustments.
|
Condensed Consolidating Statement of Operations for the six months ended June 30, 2018
|
RenaissanceRe
Holdings Ltd. (Parent Guarantor) |
|
RenRe
North
America Holdings
Inc.
(Subsidiary Issuer) |
|
RenaissanceRe
Finance Inc.
(Subsidiary
Issuer)
|
|
Other
RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) |
|
Consolidating
Adjustments (2) |
|
RenaissanceRe
Consolidated |
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net premiums earned
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
869,667
|
|
|
$
|
—
|
|
|
$
|
869,667
|
|
Net investment income
|
11,962
|
|
|
1,090
|
|
|
2,440
|
|
|
127,562
|
|
|
(15,222
|
)
|
|
127,832
|
|
||||||
Net foreign exchange losses
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(6,926
|
)
|
|
—
|
|
|
(6,930
|
)
|
||||||
Equity in earnings of other ventures
|
—
|
|
|
—
|
|
|
1,755
|
|
|
4,928
|
|
|
—
|
|
|
6,683
|
|
||||||
Other loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
(17
|
)
|
||||||
Net realized and unrealized (losses) gains on investments
|
(645
|
)
|
|
427
|
|
|
(326
|
)
|
|
(99,501
|
)
|
|
—
|
|
|
(100,045
|
)
|
||||||
Total revenues
|
11,313
|
|
|
1,517
|
|
|
3,869
|
|
|
895,713
|
|
|
(15,222
|
)
|
|
897,190
|
|
||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net claims and claim expenses incurred
|
—
|
|
|
—
|
|
|
—
|
|
|
231,870
|
|
|
—
|
|
|
231,870
|
|
||||||
Acquisition expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
202,763
|
|
|
—
|
|
|
202,763
|
|
||||||
Operational expenses
|
3,981
|
|
|
31
|
|
|
19,244
|
|
|
71,039
|
|
|
(15,480
|
)
|
|
78,815
|
|
||||||
Corporate expenses
|
8,720
|
|
|
—
|
|
|
7
|
|
|
6,307
|
|
|
—
|
|
|
15,034
|
|
||||||
Interest expense
|
2,216
|
|
|
—
|
|
|
18,506
|
|
|
5,029
|
|
|
(2,216
|
)
|
|
23,535
|
|
||||||
Total expenses
|
14,917
|
|
|
31
|
|
|
37,757
|
|
|
517,008
|
|
|
(17,696
|
)
|
|
552,017
|
|
||||||
(Loss) income before equity in net income of subsidiaries and taxes
|
(3,604
|
)
|
|
1,486
|
|
|
(33,888
|
)
|
|
378,705
|
|
|
2,474
|
|
|
345,173
|
|
||||||
Equity in net income of subsidiaries
|
264,951
|
|
|
1,550
|
|
|
17,339
|
|
|
—
|
|
|
(283,840
|
)
|
|
—
|
|
||||||
Income (loss) before taxes
|
261,347
|
|
|
3,036
|
|
|
(16,549
|
)
|
|
378,705
|
|
|
(281,366
|
)
|
|
345,173
|
|
||||||
Income tax (expense) benefit
|
(1,655
|
)
|
|
(247
|
)
|
|
3,837
|
|
|
(3,034
|
)
|
|
—
|
|
|
(1,099
|
)
|
||||||
Net income (loss)
|
259,692
|
|
|
2,789
|
|
|
(12,712
|
)
|
|
375,671
|
|
|
(281,366
|
)
|
|
344,074
|
|
||||||
Net income attributable to redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(84,382
|
)
|
|
—
|
|
|
(84,382
|
)
|
||||||
Net income (loss) attributable to RenaissanceRe
|
259,692
|
|
|
2,789
|
|
|
(12,712
|
)
|
|
291,289
|
|
|
(281,366
|
)
|
|
259,692
|
|
||||||
Dividends on preference shares
|
(11,191
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,191
|
)
|
||||||
Net income (loss) available (attributable) to RenaissanceRe common shareholders
|
$
|
248,501
|
|
|
$
|
2,789
|
|
|
$
|
(12,712
|
)
|
|
$
|
291,289
|
|
|
$
|
(281,366
|
)
|
|
$
|
248,501
|
|
(1)
|
Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations.
|
(2)
|
Includes Parent Guarantor and Subsidiary Issuer consolidating adjustments.
|
Condensed Consolidating Statement of Comprehensive Income (Loss) for the six months ended June 30, 2018
|
RenaissanceRe
Holdings Ltd. (Parent Guarantor) |
|
RenRe
North
America Holdings
Inc.
(Subsidiary Issuer) |
|
RenaissanceRe
Finance Inc.
(Subsidiary
Issuer)
|
|
Other
RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) |
|
Consolidating
Adjustments (2) |
|
RenaissanceRe
Consolidated |
||||||||||||
Comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss)
|
$
|
259,692
|
|
|
$
|
2,789
|
|
|
$
|
(12,712
|
)
|
|
$
|
375,671
|
|
|
$
|
(281,366
|
)
|
|
$
|
344,074
|
|
Change in net unrealized gains on investments
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,325
|
)
|
|
—
|
|
|
(1,325
|
)
|
||||||
Comprehensive income (loss)
|
259,692
|
|
|
2,789
|
|
|
(12,712
|
)
|
|
374,346
|
|
|
(281,366
|
)
|
|
342,749
|
|
||||||
Net income attributable to redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(84,382
|
)
|
|
—
|
|
|
(84,382
|
)
|
||||||
Comprehensive income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(84,382
|
)
|
|
—
|
|
|
(84,382
|
)
|
||||||
Comprehensive income (loss) attributable to RenaissanceRe
|
$
|
259,692
|
|
|
$
|
2,789
|
|
|
$
|
(12,712
|
)
|
|
$
|
289,964
|
|
|
$
|
(281,366
|
)
|
|
$
|
258,367
|
|
(1)
|
Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations.
|
(2)
|
Includes Parent Guarantor and Subsidiary Issuer consolidating adjustments.
|
Condensed Consolidating Statement of Cash Flows for the six months ended June 30, 2019
|
RenaissanceRe
Holdings Ltd. (Parent Guarantor) |
|
RenRe North
America Holdings Inc. (Subsidiary Issuer) |
|
RenaissanceRe Finance Inc. (Subsidiary Issuer)
|
|
Other
RenaissanceRe Holdings Ltd. Subsidiaries and Eliminations (Non-guarantor Subsidiaries) (1) |
|
RenaissanceRe
Consolidated
|
||||||||||
Cash flows (used in) provided by operating activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash (used in) provided by operating activities
|
$
|
(359,699
|
)
|
|
$
|
2,691
|
|
|
$
|
(33,592
|
)
|
|
$
|
1,174,569
|
|
|
$
|
783,969
|
|
Cash flows provided by (used in) investing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from sales and maturities of fixed maturity investments trading
|
277,030
|
|
|
15,655
|
|
|
43,746
|
|
|
9,068,917
|
|
|
9,405,348
|
|
|||||
Purchases of fixed maturity investments trading
|
(36,905
|
)
|
|
(15,726
|
)
|
|
(14,098
|
)
|
|
(9,163,271
|
)
|
|
(9,230,000
|
)
|
|||||
Net (purchases) sales of equity investments trading
|
—
|
|
|
(2,450
|
)
|
|
—
|
|
|
128,047
|
|
|
125,597
|
|
|||||
Net sales (purchases) of short term investments
|
4,212
|
|
|
305
|
|
|
(8,544
|
)
|
|
(1,968,690
|
)
|
|
(1,972,717
|
)
|
|||||
Net purchases of other investments
|
—
|
|
|
—
|
|
|
—
|
|
|
(133,889
|
)
|
|
(133,889
|
)
|
|||||
Net purchases of investments in other ventures
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,249
|
)
|
|
(2,249
|
)
|
|||||
Return of investment from investments in other ventures
|
—
|
|
|
—
|
|
|
—
|
|
|
11,250
|
|
|
11,250
|
|
|||||
Net purchases of other assets
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,108
|
)
|
|
(4,108
|
)
|
|||||
Dividends and return of capital from subsidiaries
|
587,264
|
|
|
—
|
|
|
—
|
|
|
(587,264
|
)
|
|
—
|
|
|||||
Contributions to subsidiaries
|
(850,807
|
)
|
|
—
|
|
|
—
|
|
|
850,807
|
|
|
—
|
|
|||||
Due (from) to subsidiary
|
39,056
|
|
|
(149
|
)
|
|
7,340
|
|
|
(46,247
|
)
|
|
—
|
|
|||||
Net purchase of the TMR Group Entities
|
—
|
|
|
—
|
|
|
—
|
|
|
(276,206
|
)
|
|
(276,206
|
)
|
|||||
Net cash provided by (used in) investing activities
|
19,850
|
|
|
(2,365
|
)
|
|
28,444
|
|
|
(2,122,903
|
)
|
|
(2,076,974
|
)
|
|||||
Cash flows provided by financing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividends paid – RenaissanceRe common shares
|
(29,439
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(29,439
|
)
|
|||||
Dividends paid – preference shares
|
(18,378
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18,378
|
)
|
|||||
Issuance of debt, net of expenses
|
396,411
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
396,411
|
|
|||||
Net third party redeemable noncontrolling interest share transactions
|
—
|
|
|
—
|
|
|
—
|
|
|
514,732
|
|
|
514,732
|
|
|||||
Taxes paid on withholding shares
|
(7,083
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,083
|
)
|
|||||
Net cash provided by financing activities
|
341,511
|
|
|
—
|
|
|
—
|
|
|
514,732
|
|
|
856,243
|
|
|||||
Effect of exchange rate changes on foreign currency cash
|
—
|
|
|
—
|
|
|
—
|
|
|
(534
|
)
|
|
(534
|
)
|
|||||
Net increase (decrease) in cash and cash equivalents
|
1,662
|
|
|
326
|
|
|
(5,148
|
)
|
|
(434,136
|
)
|
|
(437,296
|
)
|
|||||
Cash and cash equivalents, beginning of period
|
3,534
|
|
|
3,350
|
|
|
9,604
|
|
|
1,091,434
|
|
|
1,107,922
|
|
|||||
Cash and cash equivalents, end of period
|
$
|
5,196
|
|
|
$
|
3,676
|
|
|
$
|
4,456
|
|
|
$
|
657,298
|
|
|
$
|
670,626
|
|
(1)
|
Includes all other subsidiaries of RenaissanceRe Holdings Ltd. and eliminations.
|
Condensed Consolidating Statement of Cash Flows for the six months ended June 30, 2018
|
RenaissanceRe
Holdings Ltd. (Parent Guarantor) |
|
RenRe
North
America Holdings
Inc.
(Subsidiary Issuer) |
|
RenaissanceRe
Finance Inc.
(Subsidiary
Issuer)
|
|
Other
RenaissanceRe
Holdings Ltd.
Subsidiaries
and
Eliminations
(Non-guarantor
Subsidiaries)
(1)
|
|
RenaissanceRe
Consolidated
|
||||||||||
Cash flows (used in) provided by operating activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash (used in) provided by operating activities
|
$
|
(7,183
|
)
|
|
$
|
1,213
|
|
|
$
|
(32,605
|
)
|
|
$
|
387,686
|
|
|
$
|
349,111
|
|
Cash flows (used in) provided by investing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from sales and maturities of fixed maturity investments trading
|
120,555
|
|
|
62,334
|
|
|
35,946
|
|
|
4,594,373
|
|
|
4,813,208
|
|
|||||
Purchases of fixed maturity investments trading
|
(246,764
|
)
|
|
(46,047
|
)
|
|
(16,397
|
)
|
|
(4,704,803
|
)
|
|
(5,014,011
|
)
|
|||||
Net purchases of equity investments trading
|
—
|
|
|
(675
|
)
|
|
—
|
|
|
(33,623
|
)
|
|
(34,298
|
)
|
|||||
Net sales (purchases) of short term investments
|
56,048
|
|
|
(154
|
)
|
|
(5,001
|
)
|
|
(1,113,315
|
)
|
|
(1,062,422
|
)
|
|||||
Net purchases of other investments
|
—
|
|
|
—
|
|
|
—
|
|
|
(111,921
|
)
|
|
(111,921
|
)
|
|||||
Net purchases of investments in other ventures
|
—
|
|
|
—
|
|
|
—
|
|
|
(20,952
|
)
|
|
(20,952
|
)
|
|||||
Return of investment from investment in other ventures
|
—
|
|
|
—
|
|
|
—
|
|
|
8,464
|
|
|
8,464
|
|
|||||
Dividends and return of capital from subsidiaries
|
278,864
|
|
|
—
|
|
|
—
|
|
|
(278,864
|
)
|
|
—
|
|
|||||
Contributions to subsidiaries
|
(250,238
|
)
|
|
(16,848
|
)
|
|
—
|
|
|
267,086
|
|
|
—
|
|
|||||
Due (from) to subsidiaries
|
(161,104
|
)
|
|
50
|
|
|
21,333
|
|
|
139,721
|
|
|
—
|
|
|||||
Net cash (used in) provided by investing activities
|
(202,639
|
)
|
|
(1,340
|
)
|
|
35,881
|
|
|
(1,253,834
|
)
|
|
(1,421,932
|
)
|
|||||
Cash flows provided by financing activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividends paid – RenaissanceRe common shares
|
(26,468
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(26,468
|
)
|
|||||
Dividends paid – preference shares
|
(11,191
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,191
|
)
|
|||||
Issuance of preference shares, net of expenses
|
242,371
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
242,371
|
|
|||||
Net third party redeemable noncontrolling interest share transactions
|
—
|
|
|
—
|
|
|
—
|
|
|
64,534
|
|
|
64,534
|
|
|||||
Taxes paid on withholding shares
|
(7,044
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,044
|
)
|
|||||
Net cash provided by financing activities
|
197,668
|
|
|
—
|
|
|
—
|
|
|
64,534
|
|
|
262,202
|
|
|||||
Effect of exchange rate changes on foreign currency cash
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,501
|
)
|
|
(2,501
|
)
|
|||||
Net (decrease) increase in cash and cash equivalents
|
(12,154
|
)
|
|
(127
|
)
|
|
3,276
|
|
|
(804,115
|
)
|
|
(813,120
|
)
|
|||||
Cash and cash equivalents, beginning of period
|
14,656
|
|
|
139
|
|
|
1,469
|
|
|
1,345,328
|
|
|
1,361,592
|
|
|||||
Cash and cash equivalents, end of period
|
$
|
2,502
|
|
|
$
|
12
|
|
|
$
|
4,745
|
|
|
$
|
541,213
|
|
|
$
|
548,472
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
||||||
|
Three months ended June 30,
|
2019
|
|
2018
|
|
Change
|
|
||||||
|
(in thousands, except per share amounts and percentages)
|
|
|
|
|
|
|
||||||
|
Statement of operations highlights
|
|
|
|
|
|
|
||||||
|
Gross premiums written
|
$
|
1,476,908
|
|
|
$
|
977,343
|
|
|
$
|
499,565
|
|
|
|
Net premiums written
|
$
|
1,022,965
|
|
|
$
|
604,509
|
|
|
$
|
418,456
|
|
|
|
Net premiums earned
|
$
|
911,502
|
|
|
$
|
429,385
|
|
|
$
|
482,117
|
|
|
|
Net claims and claim expenses incurred
|
453,373
|
|
|
60,167
|
|
|
393,206
|
|
|
|||
|
Acquisition expenses
|
227,482
|
|
|
105,052
|
|
|
122,430
|
|
|
|||
|
Operational expenses
|
59,814
|
|
|
37,543
|
|
|
22,271
|
|
|
|||
|
Underwriting income
|
$
|
170,833
|
|
|
$
|
226,623
|
|
|
$
|
(55,790
|
)
|
|
|
|
|
|
|
|
|
|
||||||
|
Net investment income
|
$
|
115,832
|
|
|
$
|
71,356
|
|
|
$
|
44,476
|
|
|
|
Net realized and unrealized gains (losses) on investments
|
194,003
|
|
|
(17,901
|
)
|
|
211,904
|
|
|
|||
|
Total investment result
|
$
|
309,835
|
|
|
$
|
53,455
|
|
|
$
|
256,380
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net income
|
$
|
448,855
|
|
|
$
|
251,867
|
|
|
$
|
196,988
|
|
|
|
Net income available to RenaissanceRe common shareholders
|
$
|
367,854
|
|
|
$
|
191,788
|
|
|
$
|
176,066
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net income available to RenaissanceRe common shareholders per common share – diluted
|
$
|
8.35
|
|
|
$
|
4.78
|
|
|
$
|
3.57
|
|
|
|
Dividends per common share
|
$
|
0.34
|
|
|
$
|
0.33
|
|
|
$
|
0.01
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Key ratios
|
|
|
|
|
|
|
||||||
|
Net claims and claim expense ratio – current accident year
|
49.7
|
%
|
|
50.4
|
%
|
|
(0.7
|
)%
|
|
|||
|
Net claims and claim expense ratio – prior accident years
|
—
|
%
|
|
(36.4
|
)%
|
|
36.4
|
%
|
|
|||
|
Net claims and claim expense ratio – calendar year
|
49.7
|
%
|
|
14.0
|
%
|
|
35.7
|
%
|
|
|||
|
Underwriting expense ratio
|
31.6
|
%
|
|
33.2
|
%
|
|
(1.6
|
)%
|
|
|||
|
Combined ratio
|
81.3
|
%
|
|
47.2
|
%
|
|
34.1
|
%
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Return on average common equity - annualized
|
28.9
|
%
|
|
18.6
|
%
|
|
10.3
|
%
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Book value
|
June 30,
2019 |
|
March 31,
2019 |
|
Change
|
|
||||||
|
Book value per common share
|
$
|
119.17
|
|
|
$
|
111.05
|
|
|
$
|
8.12
|
|
|
|
Accumulated dividends per common share
|
20.00
|
|
|
19.66
|
|
|
0.34
|
|
|
|||
|
Book value per common share plus accumulated dividends
|
$
|
139.17
|
|
|
$
|
130.71
|
|
|
$
|
8.46
|
|
|
|
Change in book value per common share plus change in accumulated dividends
|
7.6
|
%
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
•
|
TMR Group Entities - The second quarter of 2019 is the first quarter that reflects the results of the TMR Group Entities in our results of operations. As such, our results of operations for the second quarter of 2019, compared to the second quarter of 2018, should be viewed in that context.
|
•
|
Underwriting Results - we generated underwriting income of $170.8 million and a combined ratio of 81.3% in the second quarter of 2019, compared to $226.6 million and 47.2%, respectively, in the second quarter of 2018. Our underwriting income in the second quarter of 2019 was primarily driven by our Property segment, which generated underwriting income of $151.7 million and a combined ratio of 64.3%. Our Casualty and Specialty segment generated underwriting income of $19.0 million and a combined ratio of 96.1%. Additionally, the business acquired in connection with the TMR Group Entities positively impacted the underwriting results for the second quarter of 2019. In comparison, our underwriting income in the second quarter of 2018 included underwriting income of $213.7 million in our Property segment and underwriting income of $13.0 million in our Casualty and Specialty segment.
|
•
|
Gross Premiums Written - our gross premiums written increased by $499.6 million, or 51.1%, to $1.5 billion, in the second quarter of 2019, compared to the second quarter of 2018, with an increase of $286.6 million in the Property segment and an increase of $213.0 million in the Casualty and Specialty segment, driven by expanded participation on existing transactions and certain new transactions, rate improvements and the impact of the acquisition of the TMR Group Entities. Our gross premiums written are discussed in additional detail below in “Underwriting Results by Segment”;
|
•
|
Investment Results - our total investment result, which includes the sum of net investment income and net realized and unrealized gains and losses on investments, was a gain of $309.8 million in the second quarter of 2019, compared to a gain of $53.5 million in the second quarter of 2018, an increase of $256.4 million. The increase in the total investment result was principally due to significant net realized and unrealized gains from the Company’s fixed maturity, public equity and investments-related derivative portfolios, combined with higher net investment income primarily driven by the Company’s fixed maturity, short term and private equity investments. Also driving the investment result for the second quarter of 2019 was higher average invested assets, primarily resulting from the acquisition of the TMR Group Entities combined with capital raised in certain of our consolidated third-party capital vehicles, and the subsequent investment of those funds as part of our consolidated investment portfolio; and
|
•
|
Net Income Attributable to Redeemable Noncontrolling Interests - our net income attributable to redeemable noncontrolling interests was $71.8 million in the second quarter of 2019, compared to $54.5 million in the second quarter of 2018. The increase was primarily driven by the results of operations of Vermeer being included in net income attributable to redeemable noncontrolling interests in the second quarter of 2019, combined with DaVinciRe generating higher underwriting income and higher total investment results.
|
|
|
|
|
||
|
Three months ended June 30, 2018
|
Change in Estimates of the 2017 Large Loss Events (1)
|
|
||
|
(in thousands, except percentages)
|
|
|
||
|
Decrease in net claims and claims expenses incurred
|
$
|
128,626
|
|
|
|
Assumed reinstatement premiums earned
|
(32,266
|
)
|
|
|
|
Ceded reinstatement premiums earned
|
2,180
|
|
|
|
|
Lost profit commissions
|
(6,577
|
)
|
|
|
|
Net positive impact on underwriting result
|
91,963
|
|
|
|
|
Redeemable noncontrolling interest - DaVinciRe
|
(15,263
|
)
|
|
|
|
Net positive impact on net income available to RenaissanceRe common shareholders
|
$
|
76,700
|
|
|
|
Percentage point impact on consolidated combined ratio
|
(23.5
|
)
|
|
|
|
|
|
|
||
|
Net positive impact on Property segment underwriting result
|
$
|
86,136
|
|
|
|
Net positive impact on Casualty and Specialty segment underwriting result
|
5,827
|
|
|
|
|
Net positive impact on underwriting result
|
$
|
91,963
|
|
|
|
|
|
|
(1)
|
An initial estimate of the net negative impact of the 2017 Large Loss Events was recorded in our consolidated financial statements during 2017. The amounts noted in the table above reflect changes in the estimates of the net negative impact of 2017 Large Loss Events recorded in the second quarter of 2018.
|
|
|
|
|
|
|
|
|
||||||
|
Three months ended June 30,
|
2019
|
|
2018
|
|
Change
|
|
||||||
|
(in thousands, except percentages)
|
|
|
|
|
|
|
||||||
|
Gross premiums written
|
$
|
839,200
|
|
|
$
|
552,627
|
|
|
$
|
286,573
|
|
|
|
Net premiums written
|
$
|
544,115
|
|
|
$
|
297,832
|
|
|
$
|
246,283
|
|
|
|
Net premiums earned
|
$
|
425,013
|
|
|
$
|
204,138
|
|
|
$
|
220,875
|
|
|
|
Net claims and claim expenses incurred (recovered)
|
146,874
|
|
|
(74,269
|
)
|
|
221,143
|
|
|
|||
|
Acquisition expenses
|
89,711
|
|
|
40,850
|
|
|
48,861
|
|
|
|||
|
Operational expenses
|
36,764
|
|
|
23,810
|
|
|
12,954
|
|
|
|||
|
Underwriting income
|
$
|
151,664
|
|
|
$
|
213,747
|
|
|
$
|
(62,083
|
)
|
|
|
|
|
|
|
|
|
|
||||||
|
Net claims and claim expenses incurred – current accident year
|
$
|
136,111
|
|
|
$
|
68,876
|
|
|
$
|
67,235
|
|
|
|
Net claims and claim expenses incurred – prior accident years
|
10,763
|
|
|
(143,145
|
)
|
|
153,908
|
|
|
|||
|
Net claims and claim expenses incurred – total
|
$
|
146,874
|
|
|
$
|
(74,269
|
)
|
|
$
|
221,143
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net claims and claim expense ratio – current accident year
|
32.0
|
%
|
|
33.7
|
%
|
|
(1.7
|
)%
|
|
|||
|
Net claims and claim expense ratio – prior accident years
|
2.6
|
%
|
|
(70.1
|
)%
|
|
72.7
|
%
|
|
|||
|
Net claims and claim expense ratio – calendar year
|
34.6
|
%
|
|
(36.4
|
)%
|
|
71.0
|
%
|
|
|||
|
Underwriting expense ratio
|
29.7
|
%
|
|
31.7
|
%
|
|
(2.0
|
)%
|
|
|||
|
Combined ratio
|
64.3
|
%
|
|
(4.7
|
)%
|
|
69.0
|
%
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Three months ended June 30,
|
2019
|
|
2018
|
|
Change
|
|
||||||
|
(in thousands)
|
|
|
|
|
|
|
||||||
|
Ceded premiums written - Property
|
$
|
295,085
|
|
|
$
|
254,795
|
|
|
$
|
40,290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Three months ended June 30,
|
2019
|
|
2018
|
|
Change
|
|
||||||
|
(in thousands, except percentages)
|
|
|
|
|
|
|
||||||
|
Gross premiums written
|
$
|
637,708
|
|
|
$
|
424,716
|
|
|
$
|
212,992
|
|
|
|
Net premiums written
|
$
|
478,850
|
|
|
$
|
306,677
|
|
|
$
|
172,173
|
|
|
|
Net premiums earned
|
$
|
486,489
|
|
|
$
|
225,247
|
|
|
$
|
261,242
|
|
|
|
Net claims and claim expenses incurred
|
306,501
|
|
|
134,524
|
|
|
171,977
|
|
|
|||
|
Acquisition expenses
|
137,963
|
|
|
64,201
|
|
|
73,762
|
|
|
|||
|
Operational expenses
|
23,016
|
|
|
13,552
|
|
|
9,464
|
|
|
|||
|
Underwriting income
|
$
|
19,009
|
|
|
$
|
12,970
|
|
|
$
|
6,039
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net claims and claim expenses incurred – current accident year
|
$
|
317,029
|
|
|
$
|
147,520
|
|
|
$
|
169,509
|
|
|
|
Net claims and claim expenses incurred – prior accident years
|
(10,528
|
)
|
|
(12,996
|
)
|
|
2,468
|
|
|
|||
|
Net claims and claim expenses incurred – total
|
$
|
306,501
|
|
|
$
|
134,524
|
|
|
$
|
171,977
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net claims and claim expense ratio – current accident year
|
65.2
|
%
|
|
65.5
|
%
|
|
(0.3
|
)%
|
|
|||
|
Net claims and claim expense ratio – prior accident years
|
(2.2
|
)%
|
|
(5.8
|
)%
|
|
3.6
|
%
|
|
|||
|
Net claims and claim expense ratio – calendar year
|
63.0
|
%
|
|
59.7
|
%
|
|
3.3
|
%
|
|
|||
|
Underwriting expense ratio
|
33.1
|
%
|
|
34.5
|
%
|
|
(1.4
|
)%
|
|
|||
|
Combined ratio
|
96.1
|
%
|
|
94.2
|
%
|
|
1.9
|
%
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Three months ended June 30,
|
2019
|
|
2018
|
|
Change
|
|
||||||
|
(in thousands)
|
|
|
|
|
|
|
||||||
|
Ceded premiums written - Casualty and Specialty
|
$
|
158,858
|
|
|
$
|
118,039
|
|
|
$
|
40,819
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Three months ended June 30,
|
2019
|
|
2018
|
|
Change
|
|
||||||
|
(in thousands)
|
|
|
|
|
|
|
||||||
|
Management fee income
|
|
|
|
|
|
|
||||||
|
Joint ventures
|
$
|
9,519
|
|
|
$
|
7,125
|
|
|
$
|
2,394
|
|
|
|
Managed funds
|
6,467
|
|
|
2,745
|
|
|
3,722
|
|
|
|||
|
Structured reinsurance products and other
|
9,976
|
|
|
7,958
|
|
|
2,018
|
|
|
|||
|
Total management fee income
|
25,962
|
|
|
17,828
|
|
|
8,134
|
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Performance fee income
|
|
|
|
|
|
|
||||||
|
Joint ventures
|
5,218
|
|
|
6,869
|
|
|
(1,651
|
)
|
|
|||
|
Managed funds
|
470
|
|
|
1,175
|
|
|
(705
|
)
|
|
|||
|
Structured reinsurance products and other
|
8,541
|
|
|
6,802
|
|
|
1,739
|
|
|
|||
|
Total performance fee income (1)
|
14,229
|
|
|
14,846
|
|
|
(617
|
)
|
|
|||
|
Total fee income
|
$
|
40,191
|
|
|
$
|
32,674
|
|
|
$
|
7,517
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Performance fees are based on the performance of the individual vehicles and/or products, and could be negative in any given quarter when large losses occur, which can result in the reversal of previously accrued performance fees.
|
|
|
|
|
|
|
|
|
||||||
|
Three months ended June 30,
|
2019
|
|
2018
|
|
Change
|
|
||||||
|
(in thousands)
|
|
|
|
|
|
|
||||||
|
Fixed maturity investments
|
$
|
88,106
|
|
|
$
|
50,416
|
|
|
$
|
37,690
|
|
|
|
Short term investments
|
17,807
|
|
|
7,633
|
|
|
10,174
|
|
|
|||
|
Equity investments trading
|
916
|
|
|
1,490
|
|
|
(574
|
)
|
|
|||
|
Other investments
|
|
|
|
|
|
|
||||||
|
Private equity investments
|
10,309
|
|
|
3,860
|
|
|
6,449
|
|
|
|||
|
Other
|
630
|
|
|
10,658
|
|
|
(10,028
|
)
|
|
|||
|
Cash and cash equivalents
|
2,306
|
|
|
1,039
|
|
|
1,267
|
|
|
|||
|
|
120,074
|
|
|
75,096
|
|
|
44,978
|
|
|
|||
|
Investment expenses
|
(4,242
|
)
|
|
(3,740
|
)
|
|
(502
|
)
|
|
|||
|
Net investment income
|
$
|
115,832
|
|
|
$
|
71,356
|
|
|
$
|
44,476
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Three months ended June 30,
|
2019
|
|
2018
|
|
Change
|
|
||||||
|
(in thousands)
|
|
|
|
|
|
|
||||||
|
Gross realized gains
|
$
|
28,512
|
|
|
$
|
5,133
|
|
|
$
|
23,379
|
|
|
|
Gross realized losses
|
(7,217
|
)
|
|
(26,519
|
)
|
|
19,302
|
|
|
|||
|
Net realized gains (losses) on fixed maturity investments
|
21,295
|
|
|
(21,386
|
)
|
|
42,681
|
|
|
|||
|
Net unrealized gains (losses) on fixed maturity investments trading
|
121,991
|
|
|
(9,420
|
)
|
|
131,411
|
|
|
|||
|
Net realized and unrealized gains on investments-related derivatives
|
37,173
|
|
|
1,038
|
|
|
36,135
|
|
|
|||
|
Net realized gains on equity investments trading
|
31,899
|
|
|
348
|
|
|
31,551
|
|
|
|||
|
Net unrealized (losses) gains on equity investments trading
|
(18,355
|
)
|
|
11,519
|
|
|
(29,874
|
)
|
|
|||
|
Net realized and unrealized gains (losses) on investments
|
$
|
194,003
|
|
|
$
|
(17,901
|
)
|
|
$
|
211,904
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Three months ended June 30,
|
2019
|
|
2018
|
|
Change
|
|
||||||
|
(in thousands)
|
|
|
|
|
|
|
||||||
|
Net foreign exchange gains (losses)
|
$
|
9,309
|
|
|
$
|
(10,687
|
)
|
|
$
|
19,996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Three months ended June 30,
|
2019
|
|
2018
|
|
Change
|
|
||||||
|
(in thousands)
|
|
|
|
|
|
|
||||||
|
Tower Hill Companies
|
$
|
3,953
|
|
|
$
|
4,555
|
|
|
$
|
(602
|
)
|
|
|
Top Layer Re
|
2,342
|
|
|
1,999
|
|
|
343
|
|
|
|||
|
Other
|
517
|
|
|
(728
|
)
|
|
1,245
|
|
|
|||
|
Total equity in earnings of other ventures
|
$
|
6,812
|
|
|
$
|
5,826
|
|
|
$
|
986
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Three months ended June 30,
|
2019
|
|
2018
|
|
Change
|
|
||||||
|
(in thousands)
|
|
|
|
|
|
|
||||||
|
Assumed and ceded reinsurance contracts accounted for as derivatives and deposits
|
$
|
759
|
|
|
$
|
787
|
|
|
$
|
(28
|
)
|
|
|
Other items
|
163
|
|
|
438
|
|
|
(275
|
)
|
|
|||
|
Total other income
|
$
|
922
|
|
|
$
|
1,225
|
|
|
$
|
(303
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Three months ended June 30,
|
2019
|
|
2018
|
|
Change
|
|
||||||
|
(in thousands)
|
|
|
|
|
|
|
||||||
|
Corporate expenses
|
$
|
23,847
|
|
|
$
|
8,301
|
|
|
$
|
15,546
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Three months ended June 30,
|
2019
|
|
2018
|
|
Change
|
|
||||||
|
(in thousands)
|
|
|
|
|
|
|
||||||
|
Income tax expense
|
$
|
(9,475
|
)
|
|
$
|
(4,506
|
)
|
|
$
|
(4,969
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Three months ended June 30,
|
2019
|
|
2018
|
|
Change
|
|
||||||
|
(in thousands)
|
|
|
|
|
|
|
||||||
|
Net income attributable to redeemable noncontrolling interests
|
$
|
(71,812
|
)
|
|
$
|
(54,483
|
)
|
|
$
|
(17,329
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Six months ended June 30,
|
2019
|
|
2018
|
|
Change
|
|
||||||
|
(in thousands, except per share amounts and percentages)
|
|
|
|
|
|
|
||||||
|
Statement of operations highlights
|
|
|
|
|
|
|
||||||
|
Gross premiums written
|
$
|
3,041,203
|
|
|
$
|
2,136,995
|
|
|
$
|
904,208
|
|
|
|
Net premiums written
|
$
|
1,951,996
|
|
|
$
|
1,267,553
|
|
|
$
|
684,443
|
|
|
|
Net premiums earned
|
$
|
1,461,530
|
|
|
$
|
869,667
|
|
|
$
|
591,863
|
|
|
|
Net claims and claim expenses incurred
|
680,408
|
|
|
231,870
|
|
|
448,538
|
|
|
|||
|
Acquisition expenses
|
351,433
|
|
|
202,763
|
|
|
148,670
|
|
|
|||
|
Operational expenses
|
104,747
|
|
|
78,815
|
|
|
25,932
|
|
|
|||
|
Underwriting income
|
$
|
324,942
|
|
|
$
|
356,219
|
|
|
$
|
(31,277
|
)
|
|
|
|
|
|
|
|
|
|
||||||
|
Net investment income
|
$
|
197,294
|
|
|
$
|
127,832
|
|
|
$
|
69,462
|
|
|
|
Net realized and unrealized gains (losses) on investments
|
364,648
|
|
|
(100,045
|
)
|
|
464,693
|
|
|
|||
|
Total investment result
|
$
|
561,942
|
|
|
$
|
27,787
|
|
|
$
|
534,155
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net income
|
$
|
801,983
|
|
|
$
|
344,074
|
|
|
$
|
457,909
|
|
|
|
Net income available to RenaissanceRe common shareholders
|
$
|
641,571
|
|
|
$
|
248,501
|
|
|
$
|
393,070
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net income available to RenaissanceRe common shareholders per common share – diluted
|
$
|
14.81
|
|
|
$
|
6.21
|
|
|
$
|
8.60
|
|
|
|
Dividends per common share
|
$
|
0.68
|
|
|
$
|
0.66
|
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Key ratios
|
|
|
|
|
|
|
||||||
|
Net claims and claim expense ratio – current accident year
|
46.8
|
%
|
|
48.2
|
%
|
|
(1.4
|
)%
|
|
|||
|
Net claims and claim expense ratio – prior accident years
|
(0.2
|
)%
|
|
(21.5
|
)%
|
|
21.3
|
%
|
|
|||
|
Net claims and claim expense ratio – calendar year
|
46.6
|
%
|
|
26.7
|
%
|
|
19.9
|
%
|
|
|||
|
Underwriting expense ratio
|
31.2
|
%
|
|
32.3
|
%
|
|
(1.1
|
)%
|
|
|||
|
Combined ratio
|
77.8
|
%
|
|
59.0
|
%
|
|
18.8
|
%
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Return on average common equity - annualized
|
26.4
|
%
|
|
12.2
|
%
|
|
14.2
|
%
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Book value
|
June 30,
2019 |
|
December 31,
2018 |
|
Change
|
|
||||||
|
Book value per common share
|
$
|
119.17
|
|
|
$
|
104.13
|
|
|
$
|
15.04
|
|
|
|
Accumulated dividends per common share
|
20.00
|
|
|
19.32
|
|
|
0.68
|
|
|
|||
|
Book value per common share plus accumulated dividends
|
$
|
139.17
|
|
|
$
|
123.45
|
|
|
$
|
15.72
|
|
|
|
Change in book value per common share plus change in accumulated dividends
|
15.1
|
%
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
•
|
TMR Group Entities - The second quarter of 2019 is the first quarter that reflects the results of the TMR Group Entities in our results of operations. As such, our results of operations for the six months ended June 30, 2019, compared to the six months ended June 30, 2018, should be viewed in that context.
|
•
|
Underwriting Results - we generated underwriting income of $324.9 million and had a combined ratio of 77.8% in the six months ended June 30, 2019, compared to underwriting income of $356.2 million and a combined ratio of 59.0%, in the six months ended June 30, 2018. Our underwriting income in the six months ended June 30, 2019 was comprised of $304.0 million of underwriting income in our Property segment and $20.8 million of underwriting income in our Casualty and Specialty segment. In comparison, our underwriting income in the six months ended June 30, 2018 was comprised of our Property segment, which generated underwriting income of $340.9 million, and our Casualty and Specialty segment, which generated underwriting income of $15.5 million. During the six months ended June 30, 2018, our underwriting results were positively impacted by a decrease in the estimate of the net negative impact of the 2017 Large Loss Events resulting in a net positive impact on the underwriting result of $125.8 million, and a corresponding reduction in the combined ratio of 15.2 percentage points, principally within our Property segment. Our underwriting results are discussed in additional detail below in “Underwriting Results by Segment”;
|
•
|
Gross Premiums Written - our gross premiums written increased by $904.2 million, or 42.3%, to $3.0 billion, in the six months ended June 30, 2019, compared to the six months ended June 30, 2018, with an increase of $612.0 million in the Property segment and an increase of $292.2 million in the Casualty and Specialty segment, driven by expanded participation on existing transactions and certain new transactions, rate improvements and the impact of the acquisition of the TMR Group Entities. Our gross premiums written are discussed in additional detail below in “Underwriting Results by Segment”;
|
•
|
Investment Results - our total investment result, which includes the sum of net investment income and net realized and unrealized gains and losses on investments, was a gain of $561.9 million in the six months ended June 30, 2019, compared to a gain of $27.8 million in the six months ended June 30, 2018, an increase of $534.2 million. Impacting the investment results were significant net realized and unrealized gains on our fixed maturity, equity and investment-related derivative portfolios, primarily driven by higher average invested assets and the impact of interest rate decreases during the six months ended June 30, 2019; and
|
•
|
Net Income Attributable to Redeemable Noncontrolling Interests - our net income attributable to redeemable noncontrolling interests was $142.0 million in the six months ended June 30, 2019, compared to $84.4 million in the six months ended June 30, 2018. The increase was primarily driven by the results of operations of Vermeer being included in net income attributable to redeemable noncontrolling interests in the six months ended June 30, 2019, combined with DaVinciRe generating higher underwriting income and higher total investment results.
|
|
|
|
|
||
|
Six months ended June 30, 2018
|
Change in Estimates of the 2017 Large Loss Events (1)
|
|
||
|
(in thousands, except percentages)
|
|
|
||
|
Decrease in net claims and claims expenses incurred
|
$
|
156,186
|
|
|
|
Assumed reinstatement premiums earned
|
(26,207
|
)
|
|
|
|
Ceded reinstatement premiums earned
|
2,397
|
|
|
|
|
Lost profit commissions
|
(6,577
|
)
|
|
|
|
Net positive impact on underwriting result
|
125,799
|
|
|
|
|
Redeemable noncontrolling interest - DaVinciRe
|
(17,284
|
)
|
|
|
|
Net positive impact on net income available to RenaissanceRe common shareholders
|
$
|
108,515
|
|
|
|
Percentage point impact on consolidated combined ratio
|
(15.2
|
)
|
|
|
|
|
|
|
||
|
Net positive impact on Property segment underwriting result
|
$
|
119,378
|
|
|
|
Net positive impact on Casualty and Specialty segment underwriting result
|
6,421
|
|
|
|
|
Net positive impact on underwriting result
|
$
|
125,799
|
|
|
|
|
|
|
(1)
|
An initial estimate of the net negative impact of the 2017 Large Loss Events was recorded in our consolidated financial statements during 2017. The amounts noted in the table above reflect changes in the estimates of the net negative impact of the 2017 Large Loss Events recorded in the six months ended June 30, 2018.
|
|
|
|
|
|
|
|
|
||||||
|
Six months ended June 30,
|
2019
|
|
2018
|
|
Change
|
|
||||||
|
(in thousands, except percentages)
|
|
|
|
|
|
|
||||||
|
Gross premiums written
|
$
|
1,871,584
|
|
|
$
|
1,259,595
|
|
|
$
|
611,989
|
|
|
|
Net premiums written
|
$
|
1,108,345
|
|
|
$
|
651,909
|
|
|
$
|
456,436
|
|
|
|
Net premiums earned
|
$
|
715,758
|
|
|
$
|
429,187
|
|
|
$
|
286,571
|
|
|
|
Net claims and claim expenses incurred (recovered)
|
202,957
|
|
|
(43,662
|
)
|
|
246,619
|
|
|
|||
|
Acquisition expenses
|
143,450
|
|
|
81,571
|
|
|
61,879
|
|
|
|||
|
Operational expenses
|
65,308
|
|
|
50,356
|
|
|
14,952
|
|
|
|||
|
Underwriting income
|
$
|
304,043
|
|
|
$
|
340,922
|
|
|
$
|
(36,879
|
)
|
|
|
|
|
|
|
|
|
|
||||||
|
Net claims and claim expenses incurred – current accident year
|
$
|
190,317
|
|
|
$
|
127,045
|
|
|
$
|
63,272
|
|
|
|
Net claims and claim expenses incurred – prior accident years
|
12,640
|
|
|
(170,707
|
)
|
|
183,347
|
|
|
|||
|
Net claims and claim expenses incurred – total
|
$
|
202,957
|
|
|
$
|
(43,662
|
)
|
|
$
|
246,619
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net claims and claim expense ratio – current accident year
|
26.6
|
%
|
|
29.6
|
%
|
|
(3.0
|
)%
|
|
|||
|
Net claims and claim expense ratio – prior accident years
|
1.8
|
%
|
|
(39.8
|
)%
|
|
41.6
|
%
|
|
|||
|
Net claims and claim expense ratio – calendar year
|
28.4
|
%
|
|
(10.2
|
)%
|
|
38.6
|
%
|
|
|||
|
Underwriting expense ratio
|
29.1
|
%
|
|
30.8
|
%
|
|
(1.7
|
)%
|
|
|||
|
Combined ratio
|
57.5
|
%
|
|
20.6
|
%
|
|
36.9
|
%
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Six months ended June 30,
|
2019
|
|
2018
|
|
Change
|
|
||||||
|
(in thousands)
|
|
|
|
|
|
|
||||||
|
Ceded premiums written - Property
|
$
|
763,239
|
|
|
$
|
607,686
|
|
|
$
|
155,553
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Six months ended June 30,
|
2019
|
|
2018
|
|
Change
|
|
||||||
|
(in thousands, except percentages)
|
|
|
|
|
|
|
||||||
|
Gross premiums written
|
$
|
1,169,619
|
|
|
$
|
877,400
|
|
|
$
|
292,219
|
|
|
|
Net premiums written
|
$
|
843,651
|
|
|
$
|
615,644
|
|
|
$
|
228,007
|
|
|
|
Net premiums earned
|
$
|
745,772
|
|
|
$
|
440,480
|
|
|
$
|
305,292
|
|
|
|
Net claims and claim expenses incurred
|
477,434
|
|
|
275,602
|
|
|
201,832
|
|
|
|||
|
Acquisition expenses
|
208,175
|
|
|
121,191
|
|
|
86,984
|
|
|
|||
|
Operational expenses
|
39,405
|
|
|
28,145
|
|
|
11,260
|
|
|
|||
|
Underwriting income
|
$
|
20,758
|
|
|
$
|
15,542
|
|
|
$
|
5,216
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net claims and claim expenses incurred – current accident year
|
$
|
494,164
|
|
|
$
|
292,389
|
|
|
$
|
201,775
|
|
|
|
Net claims and claim expenses incurred – prior accident years
|
(16,730
|
)
|
|
(16,787
|
)
|
|
57
|
|
|
|||
|
Net claims and claim expenses incurred – total
|
$
|
477,434
|
|
|
$
|
275,602
|
|
|
$
|
201,832
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net claims and claim expense ratio – current accident year
|
66.3
|
%
|
|
66.4
|
%
|
|
(0.1
|
)%
|
|
|||
|
Net claims and claim expense ratio – prior accident years
|
(2.3
|
)%
|
|
(3.8
|
)%
|
|
1.5
|
%
|
|
|||
|
Net claims and claim expense ratio – calendar year
|
64.0
|
%
|
|
62.6
|
%
|
|
1.4
|
%
|
|
|||
|
Underwriting expense ratio
|
33.2
|
%
|
|
33.9
|
%
|
|
(0.7
|
)%
|
|
|||
|
Combined ratio
|
97.2
|
%
|
|
96.5
|
%
|
|
0.7
|
%
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Six months ended June 30,
|
2019
|
|
2018
|
|
Change
|
|
||||||
|
(in thousands)
|
|
|
|
|
|
|
||||||
|
Ceded premiums written - Casualty and Specialty
|
$
|
325,968
|
|
|
$
|
261,756
|
|
|
$
|
64,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Six months ended June 30,
|
2019
|
|
2018
|
|
Change
|
|
||||||
|
(in thousands)
|
|
|
|
|
|
|
||||||
|
Management fee income
|
|
|
|
|
|
|
||||||
|
Joint ventures
|
$
|
19,254
|
|
|
$
|
13,494
|
|
|
$
|
5,760
|
|
|
|
Managed funds
|
10,264
|
|
|
5,151
|
|
|
5,113
|
|
|
|||
|
Structured reinsurance products and other
|
18,221
|
|
|
16,569
|
|
|
1,652
|
|
|
|||
|
Total management fee income
|
47,739
|
|
|
35,214
|
|
|
12,525
|
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Performance fee income
|
|
|
|
|
|
|
||||||
|
Joint ventures
|
7,756
|
|
|
11,047
|
|
|
(3,291
|
)
|
|
|||
|
Managed funds
|
768
|
|
|
1,953
|
|
|
(1,185
|
)
|
|
|||
|
Structured reinsurance products and other
|
12,732
|
|
|
10,168
|
|
|
2,564
|
|
|
|||
|
Total performance fee income (1)
|
21,256
|
|
|
23,168
|
|
|
(1,912
|
)
|
|
|||
|
Total fee income
|
$
|
68,995
|
|
|
$
|
58,382
|
|
|
$
|
10,613
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Six months ended June 30,
|
2019
|
|
2018
|
|
Change
|
|
||||||
|
(in thousands)
|
|
|
|
|
|
|
||||||
|
Fixed maturity investments
|
$
|
149,589
|
|
|
$
|
96,059
|
|
|
$
|
53,530
|
|
|
|
Short term investments
|
29,651
|
|
|
12,937
|
|
|
16,714
|
|
|
|||
|
Equity investments trading
|
1,943
|
|
|
2,188
|
|
|
(245
|
)
|
|
|||
|
Other investments
|
|
|
|
|
|
|
||||||
|
Private equity investments
|
12,763
|
|
|
3,426
|
|
|
9,337
|
|
|
|||
|
Other
|
7,875
|
|
|
18,681
|
|
|
(10,806
|
)
|
|
|||
|
Cash and cash equivalents
|
3,823
|
|
|
1,604
|
|
|
2,219
|
|
|
|||
|
|
205,644
|
|
|
134,895
|
|
|
70,749
|
|
|
|||
|
Investment expenses
|
(8,350
|
)
|
|
(7,063
|
)
|
|
(1,287
|
)
|
|
|||
|
Net investment income
|
$
|
197,294
|
|
|
$
|
127,832
|
|
|
$
|
69,462
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Six months ended June 30,
|
2019
|
|
2018
|
|
Change
|
|
||||||
|
(in thousands)
|
|
|
|
|
|
|
||||||
|
Gross realized gains
|
$
|
52,885
|
|
|
$
|
9,716
|
|
|
$
|
43,169
|
|
|
|
Gross realized losses
|
(30,160
|
)
|
|
(52,372
|
)
|
|
22,212
|
|
|
|||
|
Net realized gains (losses) on fixed maturity investments
|
22,725
|
|
|
(42,656
|
)
|
|
65,381
|
|
|
|||
|
Net unrealized gains (losses) on fixed maturity investments trading
|
225,913
|
|
|
(64,792
|
)
|
|
290,705
|
|
|
|||
|
Net realized and unrealized gains (losses) on investments-related derivatives
|
50,969
|
|
|
(3,326
|
)
|
|
54,295
|
|
|
|||
|
Net realized gains on equity investments trading
|
30,738
|
|
|
582
|
|
|
30,156
|
|
|
|||
|
Net unrealized gains on equity investments trading
|
34,303
|
|
|
10,147
|
|
|
24,156
|
|
|
|||
|
Net realized and unrealized gains (losses) on investments
|
$
|
364,648
|
|
|
$
|
(100,045
|
)
|
|
$
|
464,693
|
|
|
|
|
|
|
|
|
|
|
•
|
net realized and unrealized gains on our fixed maturity investments trading of $248.6 million in the six months ended June 30, 2019, compared to net realized and unrealized losses of $107.4 million in the six months ended June 30, 2018, an increase of $356.1 million, principally driven by a downward shift in the interest rate yield curve during the six months ended June 30, 2019, compared to an upward shift in the yield curve in the six months ended June 30, 2018;
|
•
|
net realized and unrealized gains on our investment-related derivatives of $51.0 million in the six months ended June 30, 2019, compared to losses of $3.3 million in the six months ended June 30, 2018, an increase of $54.3 million, principally driven by the interest rate activity noted above; and
|
•
|
net realized and unrealized gains on equity investments trading of $65.0 million in the six months ended June 30, 2019, compared to $10.7 million in the six months ended June 30, 2018, an increase of $54.3 million, principally driven by higher returns on certain of our larger equity positions during the six months ended June 30, 2019.
|
|
|
|
|
|
|
|
|
||||||
|
Six months ended June 30,
|
2019
|
|
2018
|
|
Change
|
|
||||||
|
(in thousands)
|
|
|
|
|
|
|
||||||
|
Net foreign exchange gains (losses)
|
$
|
6,463
|
|
|
$
|
(6,930
|
)
|
|
$
|
13,393
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Six months ended June 30,
|
2019
|
|
2018
|
|
Change
|
|
||||||
|
(in thousands)
|
|
|
|
|
|
|
||||||
|
Top Layer Re
|
$
|
4,607
|
|
|
$
|
4,032
|
|
|
$
|
575
|
|
|
|
Tower Hill Companies
|
4,454
|
|
|
3,645
|
|
|
809
|
|
|
|||
|
Other
|
2,412
|
|
|
(994
|
)
|
|
3,406
|
|
|
|||
|
Total equity in earnings of other ventures
|
$
|
11,473
|
|
|
$
|
6,683
|
|
|
$
|
4,790
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Six months ended June 30,
|
2019
|
|
2018
|
|
Change
|
|
||||||
|
(in thousands)
|
|
|
|
|
|
|
||||||
|
Assumed and ceded reinsurance contracts accounted for as derivatives and deposits
|
$
|
3,865
|
|
|
$
|
(736
|
)
|
|
4,601
|
|
|
|
|
Other
|
228
|
|
|
719
|
|
|
(491
|
)
|
|
|||
|
Total other income (loss)
|
$
|
4,093
|
|
|
$
|
(17
|
)
|
|
$
|
4,110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Six months ended June 30,
|
2019
|
|
2018
|
|
Change
|
|
||||||
|
(in thousands)
|
|
|
|
|
|
|
||||||
|
Corporate expenses
|
$
|
62,636
|
|
|
$
|
15,034
|
|
|
$
|
47,602
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Six months ended June 30,
|
2019
|
|
2018
|
|
Change
|
|
||||||
|
(in thousands)
|
|
|
|
|
|
|
||||||
|
Income tax expense
|
$
|
(17,006
|
)
|
|
$
|
(1,099
|
)
|
|
$
|
(15,907
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Six months ended June 30,
|
2019
|
|
2018
|
|
Change
|
|
||||||
|
(in thousands)
|
|
|
|
|
|
|
||||||
|
Net income attributable to redeemable noncontrolling interests
|
$
|
(142,034
|
)
|
|
$
|
(84,382
|
)
|
|
$
|
(57,652
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Six months ended June 30,
|
2019
|
|
2018
|
|
||||
|
(in thousands)
|
|
|
|
|
||||
|
Net cash provided by operating activities
|
$
|
783,969
|
|
|
$
|
349,111
|
|
|
|
Net cash used in investing activities
|
(2,076,974
|
)
|
|
(1,421,932
|
)
|
|
||
|
Net cash provided by financing activities
|
856,243
|
|
|
262,202
|
|
|
||
|
Effect of exchange rate changes on foreign currency cash
|
(534
|
)
|
|
(2,501
|
)
|
|
||
|
Net decrease in cash and cash equivalents
|
(437,296
|
)
|
|
(813,120
|
)
|
|
||
|
Cash and cash equivalents, beginning of period
|
1,107,922
|
|
|
1,361,592
|
|
|
||
|
Cash and cash equivalents, end of period
|
$
|
670,626
|
|
|
$
|
548,472
|
|
|
|
|
|
|
|
|
•
|
an increase in reinsurance balances payable of $1.1 billion principally driven by the issuance of non-voting preference shares to investors in Upsilon RFO, which are accounted for as prospective reinsurance and included in reinsurance balances payable on our consolidated balance sheet. See “Note 10. Variable Interest Entities” in our “Notes to the Consolidated Financial Statements” for additional information related to Upsilon RFO’s non-voting preference shares;
|
•
|
an increase in unearned premiums of $882.9 million due the growth in gross premiums written across both our Property and Casualty and Specialty segments, combined with the timing of the January and June renewals; partially offset by
|
•
|
increases in premiums receivable of $965.8 million due to the timing of receipts of our gross premiums written;
|
•
|
an increase of $402.6 million in our prepaid reinsurance premiums due to ceded premiums written associated with the January and June renewals;
|
•
|
a decrease in other operating cash flows of $321.3 million primarily reflecting subscriptions received in advance of the issuance of Upsilon RFO’s non-voting preference shares effective January 1, 2019, which were recorded in other liabilities at December 31, 2018. During the first six months of 2019, in connection with the issuance of the non-voting preference shares of Upsilon RFO, other liabilities were reduced by the subscriptions received in advance, and reinsurance balances payable were increased by an offsetting amount, with corresponding impacts to other operating cash flows and the change in reinsurance balances payable, as noted above, on our consolidated statements of cash flows for the first six months of 2019. See “Note 10. Variable Interest Entities” in our “Notes to the Consolidated Financial Statements” for additional information related to Upsilon RFO’s non-voting preference shares; and
|
•
|
net realized and unrealized gains on investments of $364.6 million principally due to improved performances from our fixed maturity, public equity and investments-related derivative portfolios.
|
•
|
net inflows of $396.4 million associated with the April 2, 2019 issuance of $400.0 million of our 3.600% Senior Notes due April 15, 2029;
|
•
|
net inflows of $514.7 million related to a net contribution of capital from third-party shareholders, principally in DaVinciRe, Medici, Vermeer and Upsilon RFO; partially offset by
|
•
|
dividends paid on our common and preference shares of $29.4 million and $18.4 million, respectively.
|
•
|
an increase in reinsurance balances payable of $1.1 billion principally driven by the issuance of non-voting preference shares to investors in Upsilon RFO, following capital being deployed in the vehicle, which are accounted for as prospective reinsurance and included in reinsurance balances payable on our consolidated balance sheet. See “Note 10. Variable Interest Entities” for additional information related to Upsilon RFO’s non-voting preference shares;
|
•
|
an increase in unearned premiums of $789.8 million due to the timing of renewals;
|
•
|
net realized and unrealized losses on investments of $100.0 million principally related to our portfolio of fixed maturity investments which experienced an upward shift in the interest rate yield curve during the six months ended June 30, 2018; partially offset by
|
•
|
increases in premiums receivable and deferred acquisition costs of $655.0 million and $84.6 million, respectively, due to the timing of payments of our gross premiums written and amortization of deferred acquisition costs, respectively;
|
•
|
a decrease in other operating cash flows of $611.6 million primarily reflecting subscriptions received in advance of the issuance of Upsilon RFO’s non-voting preference shares effective January 1, 2018, which were recorded in other liabilities at December 31, 2017. During the six months ended June 30, 2018, in connection with the issuance of the non-voting preference shares of Upsilon RFO, other liabilities were reduced by the subscriptions received in advance, and reinsurance balances payable were increased by an offsetting amount, with corresponding impacts to other operating cash flows and the change in reinsurance balances payable on our consolidated statements of cash flows for the six months ended June 30, 2018, as discussed above. See “Note 10. Variable Interest Entities” for additional information related to Upsilon RFO’s non-voting preference shares;
|
•
|
an increase of $392.0 million in our prepaid reinsurance premiums due to ceded premiums written associated renewals in the six months ended June 30, 2018; and
|
•
|
a decrease in our reserve for claims and claim expenses of $378.1 million as a result of claims and claims expenses incurred of $302.7 million during the six months ended June 30, 2018, more than offset by claims payments of $672.1 million, largely associated with the 2017 Large Loss Events.
|
•
|
net inflows of $242.4 million associated with the issuance of $250.0 million of Depositary Shares (each representing a 1/1000th interest in a share of our 5.750% Series F Preference Shares), net of underwriting discount;
|
•
|
net inflows of $64.5 million related to a net contribution of capital from third-party shareholders, principally in Medici; partially offset by
|
•
|
dividends paid on our common and preference shares of $26.5 million and $11.2 million, respectively.
|
|
|
|
|
|
|
|
|
||||||
|
|
At June 30, 2019
|
|
At December 31, 2018
|
|
Change
|
|
||||||
|
(in thousands)
|
|
|
|
|
|
|
||||||
|
Common shareholders’ equity
|
$
|
5,262,842
|
|
|
$
|
4,395,080
|
|
|
$
|
867,762
|
|
|
|
Preference shares
|
650,000
|
|
|
650,000
|
|
|
—
|
|
|
|||
|
Total shareholders’ equity attributable to RenaissanceRe
|
5,912,842
|
|
|
5,045,080
|
|
|
867,762
|
|
|
|||
|
3.600% Senior Notes due 2029
|
391,016
|
|
|
—
|
|
|
391,016
|
|
|
|||
|
3.450% Senior Notes due 2027
|
296,043
|
|
|
295,797
|
|
|
246
|
|
|
|||
|
3.700% Senior Notes due 2025
|
297,871
|
|
|
297,688
|
|
|
183
|
|
|
|||
|
5.750% Senior Notes due 2020
|
249,766
|
|
|
249,602
|
|
|
164
|
|
|
|||
|
4.750% Senior Notes due 2025 (DaVinciRe) (1)
|
148,194
|
|
|
148,040
|
|
|
154
|
|
|
|||
|
Total debt
|
$
|
1,382,890
|
|
|
$
|
991,127
|
|
|
$
|
391,763
|
|
|
|
Total shareholders’ equity attributable to RenaissanceRe and debt
|
$
|
7,295,732
|
|
|
$
|
6,036,207
|
|
|
$
|
1,259,525
|
|
|
|
|
|
|
|
|
|
|
•
|
our comprehensive income attributable to RenaissanceRe of $657.5 million;
|
•
|
the issuance of 1,739,071 of our common shares to Tokio in connection with the TMR Stock Purchase; and partially offset by
|
•
|
$29.4 million and $18.4 million of dividends on our common and preference shares, respectively.
|
|
|
|
|
||
|
At June 30, 2019
|
Issued or Drawn
|
|
||
|
RenaissanceRe Revolving Credit Facility (1)
|
$
|
—
|
|
|
|
Uncommitted Standby Letter of Credit Facility with Wells Fargo
|
32,009
|
|
|
|
|
Secured Letter of Credit Facility with Citibank Europe
|
238,267
|
|
|
|
|
Renaissance Reinsurance FAL Facility
|
255,000
|
|
|
|
|
Mizuho Letters of Credit (2)
|
188,873
|
|
|
|
|
Mitsubishi Letters of Credit (2)
|
154,521
|
|
|
|
|
Credit Suisse Letter of Credit Facility
|
111,052
|
|
|
|
|
Uncommitted, Unsecured Letter of Credit Facility with Citibank Europe
|
221,909
|
|
|
|
|
Total credit facilities in U.S. dollars
|
$
|
1,201,631
|
|
|
|
|
|
|
||
|
Specialty Risks FAL Facility (1)
|
£
|
—
|
|
|
|
Total credit facilities in pound sterling
|
£
|
—
|
|
|
|
|
|
|
(1)
|
At June 30, 2019, no amounts were issued or drawn under these facilities.
|
(2)
|
These letters of credit were transferred to us in connection with the acquisition of the TMR Group Entities. See “Note 3. Acquisition of Tokio Millennium Re” in our “Notes to the Consolidated Financial Statements” for additional information related to the acquisition of the TMR Group Entities.
|
|
|
|
|
|
|
|
|
|
|
|
|
A.M. Best
|
|
S&P
|
|
Moody’s
|
|
Fitch
|
|
|
|
|
|
|
|
|
|
|
|
|
Renaissance Reinsurance Ltd. (1)
|
A+
|
|
A+
|
|
A1
|
|
A+
|
|
|
DaVinci Reinsurance Ltd. (1)
|
A
|
|
A+
|
|
A3
|
|
—
|
|
|
Renaissance Reinsurance of Europe Unlimited Company (1)
|
A+
|
|
A+
|
|
—
|
|
—
|
|
|
Renaissance Reinsurance U.S. Inc. (1)
|
A+
|
|
A+
|
|
—
|
|
—
|
|
|
RenaissanceRe Europe AG (1)
|
A+
|
|
A+
|
|
—
|
|
—
|
|
|
RenaissanceRe Specialty U.S. (1)
|
A+
|
|
A+
|
|
—
|
|
—
|
|
|
RenaissanceRe (UK) Limited
|
—
|
|
A+
|
|
—
|
|
—
|
|
|
Top Layer Reinsurance Ltd. (1)
|
A+
|
|
AA
|
|
—
|
|
—
|
|
|
Vermeer Reinsurance Ltd. (1)
|
A
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
RenaissanceRe Syndicate 1458
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Lloyd's Overall Market Rating (2)
|
A
|
|
A+
|
|
—
|
|
AA-
|
|
|
|
|
|
|
|
|
|
|
|
|
RenaissanceRe (3)
|
Very Strong
|
|
Very Strong
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
June 30, 2019
|
|
December 31, 2018
|
|
Change
|
|
||||||||||||
|
(in thousands, except percentages)
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
U.S. treasuries
|
$
|
3,961,306
|
|
|
24.2
|
%
|
|
$
|
3,331,411
|
|
|
28.0
|
%
|
|
$
|
629,895
|
|
|
|
Agencies
|
334,923
|
|
|
2.0
|
%
|
|
174,883
|
|
|
1.5
|
%
|
|
160,040
|
|
|
|||
|
Municipal
|
2,859
|
|
|
—
|
%
|
|
6,854
|
|
|
0.1
|
%
|
|
(3,995
|
)
|
|
|||
|
Non-U.S. government
|
370,505
|
|
|
2.3
|
%
|
|
279,818
|
|
|
2.4
|
%
|
|
90,687
|
|
|
|||
|
Non-U.S. government-backed corporate
|
207,668
|
|
|
1.3
|
%
|
|
160,063
|
|
|
1.3
|
%
|
|
47,605
|
|
|
|||
|
Corporate
|
3,268,511
|
|
|
19.9
|
%
|
|
2,450,244
|
|
|
20.6
|
%
|
|
818,267
|
|
|
|||
|
Agency mortgage-backed
|
1,167,735
|
|
|
7.1
|
%
|
|
817,880
|
|
|
6.8
|
%
|
|
349,855
|
|
|
|||
|
Non-agency mortgage-backed
|
266,963
|
|
|
1.6
|
%
|
|
278,680
|
|
|
2.4
|
%
|
|
(11,717
|
)
|
|
|||
|
Commercial mortgage-backed
|
374,584
|
|
|
2.3
|
%
|
|
282,294
|
|
|
2.4
|
%
|
|
92,290
|
|
|
|||
|
Asset-backed
|
524,612
|
|
|
3.2
|
%
|
|
306,743
|
|
|
2.6
|
%
|
|
217,869
|
|
|
|||
|
Total fixed maturity investments, at fair value
|
10,479,666
|
|
|
63.9
|
%
|
|
8,088,870
|
|
|
68.1
|
%
|
|
2,390,796
|
|
|
|||
|
Short term investments, at fair value
|
4,579,171
|
|
|
28.0
|
%
|
|
2,586,520
|
|
|
21.8
|
%
|
|
1,992,651
|
|
|
|||
|
Equity investments trading, at fair value
|
273,646
|
|
|
1.7
|
%
|
|
310,252
|
|
|
2.6
|
%
|
|
(36,606
|
)
|
|
|||
|
Other investments, at fair value
|
955,437
|
|
|
5.8
|
%
|
|
784,933
|
|
|
6.5
|
%
|
|
170,504
|
|
|
|||
|
Total managed investment portfolio
|
16,287,920
|
|
|
99.4
|
%
|
|
11,770,575
|
|
|
99.0
|
%
|
|
4,517,345
|
|
|
|||
|
Investments in other ventures, under equity method
|
100,396
|
|
|
0.6
|
%
|
|
115,172
|
|
|
1.0
|
%
|
|
(14,776
|
)
|
|
|||
|
Total investments
|
$
|
16,388,316
|
|
|
100.0
|
%
|
|
$
|
11,885,747
|
|
|
100.0
|
%
|
|
$
|
4,502,569
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
June 30,
2019 |
|
December 31,
2018 |
|
Change
|
|
||||||
|
(in thousands)
|
|
|
|
|
|
|
||||||
|
Catastrophe bonds
|
$
|
652,668
|
|
|
$
|
516,571
|
|
|
$
|
136,097
|
|
|
|
Private equity investments
|
270,246
|
|
|
242,647
|
|
|
27,599
|
|
|
|||
|
Senior secured bank loan funds
|
20,591
|
|
|
14,482
|
|
|
6,109
|
|
|
|||
|
Hedge funds
|
11,932
|
|
|
11,233
|
|
|
699
|
|
|
|||
|
Total other investments
|
$
|
955,437
|
|
|
$
|
784,933
|
|
|
$
|
170,504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
Total shares purchased
|
|
Other shares purchased
|
|
Shares purchased under publicly announced repurchase program
|
|
Dollar maximum amount still available under repurchase program
|
|
|||||||||||||||||
|
|
Shares
purchased
|
|
Average
price per
share
|
|
Shares
purchased
|
|
Average
price per
share
|
|
Shares
purchased
|
|
Average
price per
share
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
|||||||||||
|
Beginning dollar amount available to be repurchased
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
500,000
|
|
|
|||||||||
|
April 1 - 30, 2019
|
69
|
|
|
$
|
146.10
|
|
|
69
|
|
|
$
|
146.10
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
|
|
May 1 - 31, 2019
|
587
|
|
|
$
|
166.19
|
|
|
587
|
|
|
$
|
166.19
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
|
|
June 1 - 30, 2019
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
|
|
Total
|
656
|
|
|
$
|
164.08
|
|
|
656
|
|
|
$
|
164.08
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
500,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.1
|
10.2
|
10.3
|
101.INS
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
(1)
|
Incorporated by reference to RenaissanceRe Holdings Ltd.’s Current Report on Form 8-K, filed with the Commission on June 24, 2019.
|
Date: July 24, 2019
|
/s/ Robert Qutub
|
Date: July 24, 2019
|
/s/ James C. Fraser
|
By:
|
/s/ Aditya K. Dutt
|
Name:
|
Aditya K. Dutt
|
Title:
|
Authorized Person
|
By:
|
/s/ Robert Qutub
|
Name:
|
Robert Qutub
|
Title:
|
Executive Vice President & Chief Financial Officer
|
By:
|
/s/ Aditya K. Dutt
|
Name:
|
Aditya K. Dutt
|
Title:
|
Senior Vice President & Treasurer
|
By:
|
/s/ Aditya K. Dutt
|
Name:
|
Aditya K. Dutt
|
Title:
|
Senior Vice President & Treasurer
|
By:
|
/s/ Aditya K. Dutt
|
Name:
|
James Conway
|
Title:
|
Senior Vice President, General Counsel & Secretary
|
By:
|
/s/ Robert Qutub
|
Name:
|
Robert Qutub
|
Title:
|
Chief Financial Officer
|
By:
|
/s/ Robert Qutub
|
Name:
|
Robert Qutub
|
Title:
|
Chief Financial Officer
|
By:
|
/s/ William R. Goley
|
Name:
|
William R. Goley
|
Title:
|
Managing Director
|
By:
|
/s/ John Modin
|
Name:
|
John Modin
|
Title:
|
Vice President & Managing Director
|
By:
|
/s/ Debra Basler
|
Name:
|
Debra Basler
|
Title:
|
Managing Director
|
By:
|
/s/ Karla K. Maloof
|
Name:
|
Karla K. Maloof
|
Title:
|
MD, Head of Insurance - Americas
|
By:
|
/s/ Daniel Hartmannn
|
Name:
|
Daniel Hartmannn
|
Title:
|
Vice President, Financial Institutions Group
|
By:
|
/s/ Tim Stephens
|
Name:
|
Tim Stephens
|
Title:
|
Authorized Signatory
|
By:
|
/s/ Michael Peireri
|
Name:
|
Michael Peireri
|
Title:
|
Director
|
(1)
|
Citibank Europe plc (“Bank”);
|
(2)
|
Renaissance Reinsurance Ltd.;
|
(3)
|
DaVinci Reinsurance Ltd.;
|
(4)
|
RenaissanceRe Specialty U.S. Ltd.;
|
(5)
|
Renaissance Reinsurance of Europe; and
|
(6)
|
Renaissance Reinsurance U.S. Inc. (formerly Platinum Underwriters Reinsurance, Inc.). (collectively, parties (2), (3), (4), (5), and (6) shall be known as the “Existing Companies”); and
|
(7)
|
RenaissanceRe Europe AG (party (7) shall be known as the “Acceding Company”).
|
1.
|
Background
|
2.
|
Effective Date
|
3.
|
Accession
|
(i)
|
An accession letter to the Facility Fee Letter;
|
(ii)
|
Each document listed in Clause 3 of the Facility Letter; and
|
(iii)
|
Any other document required to be delivered in connection with such Facility Documents (such Facility Documents and additional document(s), collectively the “Transaction Documents.”
|
4.
|
Costs and expenses
|
5.
|
Affirmation and acceptance
|
6.
|
Continuation of Security
|
(a)
|
notwithstanding the amendments made to the Committed Facility Letter pursuant to this deed,
|
(i)
|
the Amended and Restated Pledge Agreement dated 25 November 2014 between Renaissance Reinsurance Ltd. and Bank, as amended by Letter of Amendment dated 22 November 2016, (the “RRL Pledge Agreement”) and any security granted under it continues in full force and effect;
|
(ii)
|
the Amended and Restated Pledge Agreement dated 25 November 2014 between DaVinci Reinsurance Ltd. and Bank, as amended by Letter of Amendment dated 22 November 2016, (the “DaVinci Pledge Agreement”) and any security granted under it continues in full force and effect;
|
(iii)
|
the Amended and Restated Pledge Agreement dated 25 November 2014 between RenaissanceRe Specialty U.S. Ltd. and Bank, as amended by Letter of Amendment dated 22 November 2016, (the “RSUS Pledge Agreement”) and any security granted under it continues in full force and effect;
|
(iv)
|
the Amended and Restated Pledge Agreement dated 25 November 2014 between Renaissance Reinsurance of Europe and Bank, as amended by Letter of Amendment dated 22 November 2016, (the “ROE Pledge Agreement”) and any security granted under it continues in full force and effect;
|
(v)
|
the Pledge Agreement dated 31 March 2015 between Renaissance Reinsurance U.S. Inc. (formerly Platinum Underwriters Reinsurance Inc.) and Bank, as amended by Letter of Amendment dated 22 November 2016, (the “RRUS Pledge Agreement”) and any security granted under it continues in full force and effect;
|
(vi)
|
the Pledge Agreement dated the date hereof between RenaissanceRe Europe AG and Bank (the “RREAG Pledge Agreement”), and any security granted under it continues in full force and effect;
|
(vii)
|
the RRL Pledge Agreement, ROE Pledge Agreement, DaVinci Pledge Agreement, RRUS Pledge Agreement, RSUS Pledge Agreement and RREAG Pledge Agreement, collectively, the “Pledge Agreements”;
|
(viii)
|
the Amended and Restated Account Control Agreement dated 25 November 2014 between Renaissance Reinsurance Ltd., Citibank Europe plc and The Bank of New York Mellon, as amended by Letter of Amendment dated 22 November 2016, (the “RRL Control Agreement”) and any security granted under it continues in full force and effect;
|
(ix)
|
the Amended and Restated Account Control Agreement dated 25 November 2014 between DaVinci Reinsurance Ltd., Citibank Europe plc and The Bank of New York Mellon, as amended by Letter of Amendment dated 22 Nov ember 2016, (the “DaVinci Control Agreement”) and any security granted under it continues in full force and effect;
|
(x)
|
the Amended and Restated Account Control Agreement dated 25 November 2014 between RenaissanceRe Specialty U.S. Ltd., Citibank Europe plc and The Bank of New York Mellon, as amended by Letter of Amendment dated 22 November 2016, (the “RSUS Control Agreement”) and any security granted under it continues in full force and effect;
|
(xi)
|
the Amended and Restated Account Control Agreement dated 25 November 2014 between Renaissance Reinsurance of Europe, Citibank Europe plc and The Bank of New York Mellon, as amended by Letter of Amendment dated 22 November 2016, (the “ROE Control Agreement”) and any security granted under it continues in full force and effect;
|
(xii)
|
the Account Control Agreement dated 31 March 2015 between Renaissance Reinsurance U.S. Inc. (formerly Platinum Underwriters Reinsurance Inc.), Citibank Europe plc and The Bank of New York Mellon, as amended by Letter of Amendment dated 22 November 2016, (the “RRUS Control Agreement”) and any security granted under it continues in full force and effect;
|
(xiii)
|
the Account Control Agreement dated the date hereof between RenaissanceRe Europe AG, Citibank Europe plc and The Bank of New York Mellon (the “RREAG Control Agreement”), and any security granted under it continues in full force and effect; and
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(xiv)
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the RRL Control Agreement, ROE Control Agreement, DaVinci Control Agreement, RRUS Control Agreement, RSUS Control Agreement and RREAG Control Agreement, collectively, the “Control Agreements”,
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7.
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Counterparts
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8.
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Third party rights
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9.
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Governing law
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EXECUTED AS A DEED BY RENAISSANCE REINSURANCE LTD.
acting by an officer
In the presence of
EXECUTED AS A DEED BY DAVINCI REINSURANCE LTD.
acting by an officer
In the presence of
EXECUTED AS A DEED BY RENAISSANCERE SPECIALITY U.S. LTD.
acting by an officer
In the presence of
EXECUTED AS A DEED BY RENAISSANCE REINSURANCE OF EUROPE
acting by a director
In the presence of
EXECUTED AS A DEED BY RENAISSANCE REINSURANCE U.S. INC.
acting by an officer
In the presence of
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Signed /s/ Aditya K. Dutt
Name Aditya K. Dutt
Title Senior Vice President & Treasurer
Signature of Witness /s/ Phelecia Barnett
Name of Witness Phelecia Barnett
Address 12 Crow Lane, Pembroke, HM 19, Bermuda
Signed /s/ Aditya K. Dutt
Name Aditya K. Dutt
Title Treasurer
Signature of Witness /s/ Phelecia Barnett
Name of Witness Phelecia Barnett
Address 12 Crow Lane, Pembroke, HM 19, Bermuda
Signed /s/ Aditya K. Dutt
Name Aditya K. Dutt
Title Senior Vice President & Treasurer
Signature of Witness /s/ Phelecia Barnett
Name of Witness Phelecia Barnett
Address 12 Crow Lane, Pembroke, HM 19, Bermuda
Signed /s/ Ian Branagan
Name Ian Branagan
Title Director
Signature of Witness /s/ Clare McKinlay
Name of Witness Clair McKinlay
Address 18th Floor, 125 Old Broad Street, London, EC2N 1AR, UK
Signed /s/ James Conway
Name James Conway
Title Senior Vice President, General Counsel &
Secretary
Signature of Witness /s/ Molly E. Gardner
Name of Witness Molly E. Gardner
Address 140 Broadway, Suite 4200, New York, NY, 10005, USA
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1.
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I have reviewed this Form 10-Q of RenaissanceRe Holdings Ltd.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a.
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b.
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c.
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d.
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial
reporting; and |
5.
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The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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a.
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b.
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date:
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July 24, 2019
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/s/ Kevin J. O'Donnell
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Kevin J. O'Donnell
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Chief Executive Officer
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1.
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I have reviewed this Form 10-Q of RenaissanceRe Holdings Ltd.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d.
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial
reporting; and |
5.
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The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date:
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July 24, 2019
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/s/ Robert Qutub
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Robert Qutub
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Chief Financial Officer
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/s/ Kevin J. O'Donnell
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Kevin J. O'Donnell
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Chief Executive Officer
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July 24, 2019
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/s/ Robert Qutub
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Robert Qutub
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Chief Financial Officer
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July 24, 2019
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