RenaissanceRe Holdings Ltd (RNR) Reports Q3 2023 Net Income of $194.0 Million
RenaissanceRe Holdings Ltd (NYSE:RNR) reports Q3 2023 net income available to common shareholders of $194.0 million.
Operating income available to common shareholders stands at $422.3 million.
Fee income of $64.6 million, up 150.9% from Q3 2022.
Net investment income of $329.1 million, up 108.6% from Q3 2022.
On November 1, 2023, RenaissanceRe Holdings Ltd (NYSE:RNR) announced its financial results for the third quarter of 2023. The company reported a net income available to common shareholders of $194.0 million and an operating income available to common shareholders of $422.3 million. The company's overall combined ratio stood at 78.0%.
Financial Highlights
RenaissanceRe reported an annualized return on average common equity of 11.5% and an annualized operating return on average common equity of 25.0%. The company's fee income increased by 150.9% from Q3 2022 to $64.6 million, while its net investment income rose by 108.6% from Q3 2022 to $329.1 million.
The company's underwriting income was $385.8 million. The change in book value per common share was 2.8%, and the change in tangible book value per common share plus change in accumulated dividends was 3.2%.
In 2023, we continued to confidently execute our strategy and are pleased with the results we are achieving and excited about the future of our company. On November 1, 2023, we closed the acquisition of Validus Re, adding risk expertise and scale in a favorable market and building a solid foundation for the continued execution of our strategy. In addition, we reported strong results for the third quarter, delivering a 25.0% operating return on average common equity driven by significant contributions from each of our Three Drivers of Profit underwriting, fee and investment income. As we approach the January 1 renewals, we remain resolutely focused on executing our strategy as a unified company, retaining the Validus portfolio and capturing additional attractive growth opportunities that support our customers and deliver value for our shareholders." - Kevin J. ODonnell, President and Chief Executive Officer
Performance Analysis
RenaissanceRe's gross premiums written for Q3 2023 were $1,618,443, a decrease from $2,220,661 in Q3 2022. The company's net premiums written were $1,421,260. The company's underwriting income was $385,804, a significant improvement from a loss of $683,114 in Q3 2022. The company's combined ratio improved to 78.0% from 138.7% in Q3 2022.
The company's net investment income increased by $171.3 million, primarily driven by a combination of higher average invested assets and higher yielding assets in the fixed maturity and short term portfolios. Total investments grew to $26.0 billion at September 30, 2023, from $22.2 billion at December 31, 2022, primarily driven by the approximately $2.1 billion raised in the second quarter of 2023 in accordance with the companys financing plan for the Validus Acquisition.
On November 1, 2023, the company completed its acquisition of certain direct and indirect subsidiaries of American International Group, Inc., including Validus Holdings, Ltd., Validus Specialty, LLC, and Validus Reinsurance, Ltd.
Explore the complete 8-K earnings release (here) from RenaissanceRe Holdings Ltd for further details.
This article first appeared on GuruFocus.
