Validus acquisition pays off for RenaissanceRe
RenaissanceRe's renewal of the Validus portfolio it bought last year helped to drive gross written premiums up by 43% in the first quarter, the company said.
However, the Bermuda-based re/insurer reported a 35% decline in net income as net realised and unrealised losses swung from a $279 million gain to a $213 million loss.
The company reported a drop in net income from $564 million to $364.8 million despite gross written premiums rising from $2.8 billion to $3.99 billion.
The company recorded an underwriting profit of $540 million compared to $369 million in 2023 as the combined ratio improved marginally from 78% to 77.9%.
Although net investment income rose from $254 million to $390 million, but this was offset by the drop in net realised and unrealised gains.
Kevin O’Donnell, chief executive officer, said: “We are pleased to deliver another exceptional quarter, characterised by strong profitability, substantial growth and persistent tailwinds behind our Three Drivers of Profit.
"The successful renewal of the RenaissanceRe and Validus portfolio is deepening our partnerships with our customers while broadening our access to attractive risk.
"This combined underwriting portfolio, along with growing fee and net investment income, should continue to drive significant value for our shareholders.”
RenRe said GWP growth was strong for property, where it grew by $585.7 million or 44.9% while casualty and specialty grew by $614.7 million, or 41.4%.
The company attributed much of the property growth to the Validus acquisition, saying it recorded a $412.5 million increase in catastrophe, "driven by the renewal of business acquired in the Validus acquisition, in conjunction with the retention of legacy lines, at the January 1, 2024 renewal".
The increase in other property was $173.1 million, reflecting the renewal of business acquired in the Validus acquisition and organic growth, in both catastrophe and non-catastrophe exposed business.
Fee income from its third party segment jumped 86.6 percent to $83.6 million as the company said management fee income rose $15.1 million and performance fee income jumped $23.6 million.
In the combined casualty and specialty segment, the re/insurer said its net claims and claim expense ratio increased by 3.2 percentage points with the Baltimore Bridge Collapse adding 4.2 points to the net claims and claim expense ratio - current accident year.
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