Equibles

8-K

RENAISSANCERE HOLDINGS LTD (RNR)

8-K 2023-07-25 For: 2023-07-25
View Original
Added on April 05, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 25, 2023

RenaissanceRe Holdings Ltd.

(Exact name of registrant as specified in its charter)

Bermuda 001-14428 98-0141974
(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)

Renaissance House, 12 Crow Lane, Pembroke, Bermuda         HM 19

(Address of Principal Executive Office)         (Zip Code)

(441) 295-4513

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report).

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading<br>symbol Name of each exchange on which registered
Common Shares, Par Value $1.00 per share RNR 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
Depositary Shares, each representing a 1/1,000th interest in a Series G 4.20% Preference Share, Par Value $1.00 per share RNR PRG New York Stock Exchange

Item 2.02    Results of Operations and Financial Condition.

On July 25, 2023, RenaissanceRe Holdings Ltd. (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2023 and the availability of its corresponding financial supplement. Copies of the press release and the financial supplement are attached as Exhibit 99.1 and 99.2, respectively, to this Form 8-K. This Form 8-K and Exhibits 99.1 and 99.2 hereto are each being furnished to the Securities and Exchange Commission (the “SEC”) pursuant to Item 2.02 of Form 8-K and are therefore not to be considered “filed” with the SEC.

Item 9.01    Financial Statements and Exhibits.

(d) Exhibits.

Exhibit #    Description

99.1*    Copy of the Company’s press release, issued July 25, 2023.

99.2*    Copy of the Company’s Financial Supplement.

101    Pursuant to Rule 406 of Regulation S-T, the cover page information is formatted in Inline XBRL.

104    Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101).

* Exhibits 99.1 and 99.2 are being furnished to the SEC pursuant to Item 2.02 and are not being filed with the SEC. Therefore, these exhibits are not incorporated by reference in any of the registrant’s other SEC filings.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

RENAISSANCERE HOLDINGS LTD.
Date: By: /s/ Robert Qutub
July 25, 2023 Robert Qutub
Executive Vice President and Chief Financial Officer

Document

renretitlea.jpg

RenaissanceRe Reports Q2 2023 Net Income Available to Common Shareholders of $191.0 Million; Operating Income Available to Common Shareholders of $407.4 Million.

•13.5% annualized return on average common equity and 28.8% annualized operating return on average common equity.

•Third consecutive quarter with annualized operating return on average common equity exceeding 28%, driven by continued positive momentum across the three drivers of profit.

•Strong performance across both segments; Property combined ratio of 63.0% and Casualty and Specialty combined ratio of 93.2%; overall combined ratio of 80.3%.

•Property catastrophe net premiums written grew by $273.4 million or 54.9%, driven by significant rate increases.

•Fee income of $56.7 million; 65.5% growth compared to Q2 2022.

•Net investment income of $292.7 million; 173.0% growth compared to Q2 2022.

•Announced agreement to acquire Validus Re from American International Group, Inc. in $2.985 billion transaction.

•Raised approximately $2.09 billion in net proceeds through the issuance of 7.245 million common shares at $192.00 per share and $750.0 million principal amount of 5.750% Senior Notes due 2033, in accordance with our financing plan for the Validus Acquisition.

Pembroke, Bermuda, July 26, 2023 - RenaissanceRe Holdings Ltd. (NYSE: RNR) (“RenaissanceRe” or the “Company”) today announced its financial results for the second quarter of 2023.

Net Income Available to Common Shareholders per Diluted Common Share: 4.09Operating Income Available to Common Shareholders per Diluted Common Share*: 8.79
Underwriting Income351.0M Net Investment Income<br><br>$292.7M
Change in Book Value per Common Share: 11.6%Change in Tangible Book Value per Common Share Plus Change in Accum. Dividends*: 13.3%

All values are in US Dollars.

*Operating Return on Average Common Equity, Operating Income (Loss) Available (Attributable) to Common Shareholders, Operating Income (Loss) Available (Attributable) to Common Shareholders per Diluted Common Share and Change in Tangible Book Value per Common Share Plus Change in Accumulated Dividends are non-GAAP financial measures; see “Comments on Non-GAAP Financial Measures” for a reconciliation of non-GAAP financial measures.

Kevin J. O’Donnell, President and Chief Executive Officer, said, “RenaissanceRe delivered a strong quarter, distinguished by a 28.8% operating return on average common equity with robust underwriting income and record fee and net investment income. In addition, we accelerated our strategy by agreeing to purchase Validus Re, which brings us a large, diversified business in a favorable reinsurance market. In aggregate, our accomplishments this quarter demonstrate the effectiveness of our strategy and strengthen our foundation for delivery of shareholder value.”
Consolidated Financial Results
--- Consolidated Highlights
--- --- --- --- --- --- ---
Three months ended June 30,
(in thousands, except per share amounts and percentages) 2023 2022
Gross premiums written $ 2,651,621 $ 2,464,639
Net premiums written 2,195,803 1,863,616
Underwriting income (loss) 351,015 316,386
Combined ratio 80.3 % 78.3 %
Net Income (Loss)
Available (attributable) to common shareholders 191,025 (324,913)
Available (attributable) to common shareholders per diluted common share $ 4.09 $ (7.53)
Operating Income (Loss) (1)
Available (attributable) to common shareholders 407,435 238,132
Available (attributable) to common shareholders per diluted common share $ 8.79 $ 5.51
Book value per common share $ 129.98 $ 113.69
Change in book value per share 11.6 % (6.4) %
Tangible book value per common share plus accumulated dividends (1) $ 150.79 $ 132.05
Change in book value per common share plus change in accumulated dividends 12.0% (6.1)%
Change in tangible book value per common share plus change in accumulated dividends (1) 13.3% (6.4)%
Return on average common equity - annualized 13.5% (25.1)%
Operating return on average common equity - annualized (1) 28.8% 18.4%

(1)See “Comments on Non-GAAP Financial Measures” for a reconciliation of non-GAAP financial measures.

Net negative impact of the 2023 Large Loss Events

Net negative impact on underwriting result includes the sum of (1) net claims and claim expenses incurred, (2) assumed and ceded reinstatement premiums earned and (3) earned and lost profit commissions. Net negative impact on net income (loss) available (attributable) to RenaissanceRe common shareholders is the sum of (1) net negative impact on underwriting result and (2) redeemable noncontrolling interest, both before consideration of any related income tax benefit (expense).

The Company’s estimates of net negative impact are based on a review of the Company’s potential exposures, preliminary discussions with certain counterparties and actuarial modeling techniques. The Company’s actual net negative impact, both individually and in the aggregate, may vary from these estimates, perhaps materially. Changes in these estimates will be recorded in the period in which they occur.

Meaningful uncertainty remains regarding the estimates and the nature and extent of the losses from these catastrophe events, driven by the magnitude and recent nature of each event, the geographic areas impacted by the events, relatively limited claims data received to date, the contingent nature of business interruption and other exposures, potential uncertainties relating to reinsurance recoveries and other factors inherent in loss estimation, among other things.

Net negative impact on the consolidated financial statements

Three months ended June 30, 2023 2023 Large Loss Events (1)
(in thousands)
Net claims and claims expenses incurred $ (95,278)
Assumed reinstatement premiums earned 26,752
Ceded reinstatement premiums earned —
Earned (lost) profit commissions —
Net negative impact on underwriting result (68,526)
Redeemable noncontrolling interest 23,949
Net negative impact on net income (loss) available (attributable) to RenaissanceRe common shareholders $ (44,577)

Net negative impact on the segment underwriting results and consolidated combined ratio

Three months ended June 30, 2023 2023 Large Loss Events (1)
(in thousands, except percentages)
Net negative impact on Property segment underwriting result $ (68,526)
Net negative impact on Casualty and Specialty segment underwriting result —
Net negative impact on underwriting result $ (68,526)
Percentage point impact on consolidated combined ratio 4.2

(1)“2023 Large Loss Events” includes the earthquakes which impacted southern and central Turkey in February 2023, Cyclone Gabrielle which impacted northern New Zealand, the flooding that impacted northern New Zealand in January and February 2023, and various wind and thunderstorm events which impacted states in both the Southern and Midwest U.S. during March 2023 (“Q1 2023 Large Loss Events”), and a series of large, severe weather events that impacted Texas and other southern and central U.S. states in June 2023. Net negative impact for the three months ended June 30, 2023 includes an increase of approximately $20.0 million in the net negative impact of the Q1 2023 Large Loss Events during the second quarter.

Three Drivers of Profit: Underwriting, Fee and Investment Income

Underwriting Results - Property Segment: Combined ratio of 63.0%; Increase in property catastrophe net premiums written of 54.9%

Property Segment
Three months ended June 30, Q/Q Change
(in thousands, except percentages) 2023 2022
Gross premiums written $ 1,402,606 $ 1,218,321 15.1%
Net premiums written 1,144,655 887,975 28.9%
Underwriting income (loss) 281,010 264,463
Underwriting Ratios
Net claims and claim expense ratio - current accident year 41.3 % 33.2 % 8.1 pts
Net claims and claim expense ratio - prior accident years (4.1) % (5.6) % 1.5 pts
Net claims and claim expense ratio - calendar year 37.2 % 27.6 % 9.6 pts
Underwriting expense ratio 25.8 % 30.0 % (4.2) pts
Combined ratio 63.0 % 57.6 % 5.4 pts

•Gross premiums written increased by $184.3 million, or 15.1%, driven by:

–$198.5 million increase in the catastrophe class of business, primarily due to rate improvements on deals written in the second quarter of 2023 which were partially offset by a reduction of premiums written in Upsilon of $110.0 million. In addition, the growth in the catastrophe class of business included an increase in gross reinstatement premiums written of $29.4 million.

–$14.2 million decrease in the other property class of business, primarily due to the non-renewal of certain catastrophe exposed quota share programs that did not meet the Company’s return hurdles.

•Net premiums written increased by $256.7 million, or 28.9%, with an increase of $273.4 million, or 54.9% in the catastrophe class of business, driven by rate improvements and lower ceded premiums written.

•Net claims and claim expense ratio - current accident year increased 8.1 percentage points, primarily as a result of the impact from the 2023 Large Loss Events, which contributed 11.5 percentage points to the current accident year net claims and claim expense ratio.

•Net claims and claim expense ratio - prior accident years reflects net favorable development, primarily from weather-related large losses in the 2017 through 2020 accident years, driven by better than expected loss emergence.

•Underwriting expense ratio decreased 4.2 percentage points, largely driven by improved operating leverage from the increase in net premiums earned from the catastrophe class of business.

Underwriting Results - Casualty and Specialty Segment: Combined ratio of 93.2% and underwriting income of $70.0 million

Casualty and Specialty Segment
Three months ended June 30, Q/Q Change
(in thousands, except percentages) 2023 2022
Gross premiums written $ 1,249,015 $ 1,246,318 0.2%
Net premiums written 1,051,148 975,641 7.7%
Underwriting income (loss) 70,005 51,923
Underwriting Ratios
Net claims and claim expense ratio - current accident year 63.3 % 65.1 % (1.8) pts
Net claims and claim expense ratio - prior accident years (0.1) % (0.9) % 0.8 pts
Net claims and claim expense ratio - calendar year 63.2 % 64.2 % (1.0) pts
Underwriting expense ratio 30.0 % 29.6 % 0.4 pts
Combined ratio 93.2 % 93.8 % (0.6) pts

•Gross premiums written were relatively flat, reflecting proactive cycle management, as growth in the other specialty class of business was largely offset by a decrease in the professional liability class of business.

•Net premiums written increased 7.7% as a result of decreases in ceded premiums written.

•Net claims and claim expense ratio - current accident year decreased by 1.8 percentage points compared to the second quarter of 2022 due to lower current accident year attritional losses.

Fee Income: $56.7 million of fee income, up 65.5% from Q2 2022; increase in both management and performance fees

Fee Income
Three months ended June 30, Q/Q Change
(in thousands, except percentages) 2023 2022
Total management fee income $ 43,439 $ 30,707 $ 12,732
Total performance fee income (loss) (1) 13,242 3,548 9,694
Total fee income $ 56,681 $ 34,255 $ 22,426

(1)Performance fees are based on the performance of the individual vehicles or products, and may be negative in a particular period if, for example, large losses occur, which can potentially result in no performance fees or the reversal of previously accrued performance fees.

•Management fee income increased $12.7 million, reflecting increased capital managed at DaVinciRe Holdings Ltd. (“DaVinci”), Vermeer Reinsurance Ltd. (“Vermeer”) and RenaissanceRe Medici Fund Ltd. (“Medici”), as well as the recording of previously deferred management fees in DaVinci related to the weather-related large losses experienced in the prior years.

•Performance fee income increased $9.7 million, driven by current year underwriting results.

Investment Results: Total investment result improved $616.8 million; net investment income growth of 173.0%

Investment Results
Three months ended June 30, Q/Q Change
(in thousands, except percentages) 2023 2022
Net investment income $ 292,662 $ 107,211 $ 185,451
Net realized and unrealized gains (losses) on investments (222,781) (654,107) 431,326
Total investment result $ 69,881 $ (546,896) $ 616,777
Net investment income return - annualized 5.3 % 2.1 % 3.2 pts
Total investment return - annualized 1.6 % (10.1) % 11.7 pts

•Net investment income increased $185.5 million, primarily driven by higher interest rates, higher yielding assets in the fixed maturity and short term portfolios as a result of our reinvestment of the portfolio during the rising interest rate environment throughout 2022 and 2023, as well as increased catastrophe bond yields.

•Net realized and unrealized gains on investments increased $431.3 million, principally driven by:

–Net realized and unrealized losses on fixed maturity investments trading of $214.0 million, compared to net realized and unrealized losses of $437.0 million in the second quarter of 2022, driven by interest rate increases, which were generally lower in the second quarter of 2023 compared to the interest rate increases in the second quarter of 2022.

–Equity investments contributed net realized and unrealized gains of $1.9 million, compared to net realized and unrealized losses of $91.5 million in the second quarter of 2022. Both the current and comparative quarter equity investment results were in line with wider equity market movements; and

–Catastrophe bonds contributed net realized and unrealized gains of $38.2 million compared to net realized and unrealized losses of $24.7 million in the second quarter of 2022. Both the current and comparative quarter reflected changes in risk spreads in the wider catastrophe bond market.

•Total investments were $25.5 billion at June 30, 2023 (December 31, 2022 - $22.2 billion). Weighted average yield to maturity and duration on the Company’s investment portfolio (excluding investments that have no final maturity, yield to maturity or duration) was 6.1% and 2.4 years (December 31, 2022 - 5.7% and 2.5 years, respectively).

Other Items of Note

•Net income attributable to redeemable noncontrolling interests of $174.9 million was primarily driven by:

–Strong underwriting results for DaVinci and Vermeer;

–Strong net investment income driven by higher interest rates and yields within the investment portfolios of the Company’s joint ventures and managed funds; and

–Net realized and unrealized gains on catastrophe bonds recorded during the quarter in Medici.

•Raised third-party capital of $350.5 million in the second quarter of 2023, including $170.5 million in Medici and $150.0 million in a newly formed segregated account focused on investing in insurance-linked securities (ILS), primarily catastrophe bonds.

•Redemptions of third-party capital of $313.0 million during the second quarter of 2023, of which $285.6 million was from Upsilon Diversified Fund, as a result of the release of collateral associated with prior years’ contracts.

•Corporate expenses increased by $11.0 million, primarily driven by expenses associated with the Validus Acquisition.

•Income tax expense of $5.9 million compared to a benefit of $30.5 million in the second quarter of 2022. The increase in income tax expense was driven by lower investment losses and increased operating income in the Company’s taxable jurisdictions, primarily from the Company’s U.S. operations compared to the second quarter of 2022.

•On May 22, 2023, the Company entered into a Stock Purchase Agreement (the “Stock Purchase Agreement”) with American International Group, Inc. (together with its affiliates and subsidiaries, “AIG”) pursuant to which, upon the terms and subject to the conditions thereof, the Company agreed to purchase certain direct and indirect subsidiaries of AIG, including Validus Holdings, Ltd., Validus Specialty, LLC, and Validus Reinsurance, Ltd. (the acquisitions under the Stock Purchase Agreement, together with the other transactions contemplated thereby, the “Validus Acquisition”). The Validus Acquisition, which is currently expected to close during the fourth quarter of 2023, is subject to customary closing conditions, including, among others, receipt of required regulatory approvals.

•On May 26, 2023, the Company completed an offering of 7,245,000 of our common shares at the public offering price of $192.00 per share. The Company received net proceeds of approximately $1,352.0 million from the offering of common shares after deducting the underwriting discounts and estimated offering expenses payable.

•On June 5, 2023, the Company completed an offering of $750.0 million aggregate principal amount of the Company’s 5.750% Senior Notes due 2033. The Company received net proceeds of approximately $741.0 million from the offering of senior notes after deducting the underwriting discounts and estimated offering expenses payable.

Conference Call Details and Additional Information

Non-GAAP Financial Measures and Additional Financial Information

This Press Release includes certain financial measures that are not calculated in accordance with generally accepted accounting principles in the U.S. (“GAAP”) including “operating income (loss) available (attributable) to RenaissanceRe common shareholders,” “operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted,” “operating return on average common equity - annualized,” “tangible book value per common share” and “tangible book value per common share plus accumulated dividends.” A reconciliation of such measures to the most comparable GAAP figures in accordance with Regulation G is presented in the attached supplemental financial data.

Please refer to the “Investors - Financial Reports - Financial Supplements” section of the Company’s website at www.renre.com for a copy of the Financial Supplement which includes additional information on the Company’s financial performance.

Conference Call Information

RenaissanceRe will host a conference call on Wednesday, July 26, 2023 at 11:00 a.m. ET to discuss this release. Live broadcast of the conference call will be available through the “Investors - Webcasts & Presentations” section of the Company’s website at www.renre.com.

About RenaissanceRe

RenaissanceRe is a global provider of reinsurance and insurance that specializes in matching well-structured risks with efficient sources of capital. The Company provides property, casualty and specialty reinsurance and certain insurance solutions to customers, principally through intermediaries. Established in 1993, RenaissanceRe has offices in Bermuda, Australia, Ireland, Singapore, Switzerland, the United Kingdom and the United States.

Cautionary Statement Regarding Forward-Looking Statements

Any forward-looking statements made in this Press Release reflect RenaissanceRe’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company may also make forward-looking statements with respect to its business and industry, such as those relating to its strategy and management objectives, plans and expectations regarding its response and ability to adapt to changing economic conditions, market standing and product volumes, estimates of net negative impact and insured losses from loss events, and the Validus Acquisition and its impact on the Company’s business, among other things. These statements are subject to numerous factors that could cause actual results to differ materially from those addressed by such forward-looking statements, including the following: the risk that the Validus Acquisition may not be completed within the expected timeframe or at all; the risk that regulatory agencies in certain jurisdictions may impose onerous conditions following the Validus Acquisition; difficulties in integrating the acquired business; risk that the due diligence process that the Company undertook in connection with the Validus Acquisition may not have revealed all facts that may be relevant in connection with the Validus Acquisition; the Company’s ability to manage the growth of the acquired business’ operations successfully following the Validus Acquisition; that historical financial statements of Validus Reinsurance Ltd. are not representative of the future financial position, future results of operations or future cash flows of Validus Reinsurance Ltd. following the Validus Acquisition; risks from The Company’s increased debt obligations as a result of the Validus Acquisition; the Company’s dilutive impact on the Company’s shareholders from the issuance of common shares to AIG in connection with the Validus Acquisition; the Company’s exposure to natural and non-natural catastrophic events and circumstances and the variance it may cause in the Company’s financial results; the effect of climate change on the Company’s business, including the trend towards increasingly frequent and severe climate events; the effectiveness of the Company’s claims and claim expense reserving process; the effect of emerging claims and coverage issues; the performance of the Company’s

investment portfolio and financial market volatility; the effects of inflation; the ability of the Company’s ceding companies and delegated authority counterparties to accurately assess the risks they underwrite; the Company’s ability to maintain its financial strength ratings; the highly competitive nature of the Company’s industry and its reliance on a small number of brokers; collection on claimed retrocessional coverage, and new retrocessional reinsurance being available on acceptable terms or at all; the historically cyclical nature of the (re)insurance industries; the Company’s ability to attract and retain key executives and employees; the Company’s ability to successfully implement its business strategies and initiatives; the Company’s exposure to credit loss from counterparties; the Company’s need to make many estimates and judgments in the preparation of its financial statements; the Company’s ability to effectively manage capital on behalf of investors in joint ventures or other entities it manages; changes to the accounting rules and regulatory systems applicable to the Company’s business, including changes in Bermuda and U.S. laws and regulations; other political, regulatory or industry initiatives adversely impacting the Company; the Company’s ability to comply with covenants in its debt agreements; the effect of adverse economic factors, including changes in prevailing interest rates and recession or the perception that recession may occur; the effect of cybersecurity risks, including technology breaches or failure; a contention by the U.S. Internal Revenue Service that any of the Company’s Bermuda subsidiaries are subject to taxation in the U.S.; the effects of possible future tax reform legislation and regulations in the jurisdictions in which the Company operates; the Company’s ability to determine any impairments taken on its investments; the Company’s ability to raise capital on acceptable terms, including through debt instruments, the capital markets, and third party investments in our joint ventures and managed funds; the Company’s ability to comply with applicable sanctions and foreign corrupt practices laws; the Company’s dependence on the ability of its operating subsidiaries to declare and pay dividends; and other factors affecting future results disclosed in RenaissanceRe’s filings with the SEC, including its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.

INVESTOR CONTACT:<br><br>RenaissanceRe Holdings Ltd.<br><br>Keith McCue<br><br>Senior Vice President, Finance & Investor Relations<br><br>(441) 239-4830 MEDIA CONTACT:<br><br>RenaissanceRe Holdings Ltd.<br><br>Hayden Kenny<br><br>Vice President, Investor Relations & Communications<br><br>(441) 239-4946<br><br>or<br><br>Kekst CNC<br><br>Dawn Dover<br><br>(212) 521-4800
RenaissanceRe Holdings Ltd.
--- --- --- --- --- --- --- --- --- --- --- --- ---
Summary Consolidated Statements of Operations
(in thousands of United States Dollars, except per share amounts and percentages)
(Unaudited)
Three months ended Six months ended
June 30,<br>2023 June 30,<br>2022 June 30,<br>2023 June 30,<br>2022
Revenues
Gross premiums written $ 2,651,621 $ 2,464,639 $ 5,441,882 $ 5,407,603
Net premiums written $ 2,195,803 $ 1,863,616 $ 4,459,506 $ 4,028,833
Decrease (increase) in unearned premiums (410,541) (407,233) (993,694) (1,086,025)
Net premiums earned 1,785,262 1,456,383 3,465,812 2,942,808
Net investment income 292,662 107,211 547,040 190,902
Net foreign exchange gains (losses) (13,488) (50,821) (27,991) (66,307)
Equity in earnings (losses) of other ventures 7,700 7,383 17,230 993
Other income (loss) 3,876 923 (430) 2,116
Net realized and unrealized gains (losses) on investments (222,781) (654,107) 56,670 (1,327,124)
Total revenues 1,853,231 866,972 4,058,331 1,743,388
Expenses
Net claims and claim expenses incurred 931,211 706,239 1,732,411 1,547,972
Acquisition expenses 422,545 361,238 854,802 737,745
Operational expenses 80,491 72,520 157,965 140,427
Corporate expenses 23,371 12,352 36,214 24,854
Interest expense 14,895 11,895 27,029 23,850
Total expenses 1,472,513 1,164,244 2,808,421 2,474,848
Income (loss) before taxes 380,718 (297,272) 1,249,910 (731,460)
Income tax benefit (expense) (5,942) 30,534 (34,844) 67,241
Net income (loss) 374,776 (266,738) 1,215,066 (664,219)
Net (income) loss attributable to redeemable noncontrolling interests (174,907) (49,331) (442,291) (37,419)
Net income (loss) attributable to RenaissanceRe 199,869 (316,069) 772,775 (701,638)
Dividends on preference shares (8,844) (8,844) (17,688) (17,688)
Net income (loss) available (attributable) to RenaissanceRe common shareholders $ 191,025 $ (324,913) $ 755,087 $ (719,326)
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – basic $ 4.10 $ (7.53) $ 16.75 $ (16.64)
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share – diluted $ 4.09 $ (7.53) $ 16.71 $ (16.64)
Operating (loss) income (attributable) available to RenaissanceRe common shareholders per common share - diluted (1) $ 8.79 $ 5.51 $ 16.98 $ 8.99
Average shares outstanding - basic 45,898 43,170 44,387 43,264
Average shares outstanding - diluted 45,990 43,170 44,498 43,264
Net claims and claim expense ratio 52.2 % 48.5 % 50.0 % 52.6 %
Underwriting expense ratio 28.1 % 29.8 % 29.2 % 29.8 %
Combined ratio 80.3 % 78.3 % 79.2 % 82.4 %
Return on average common equity - annualized 13.5 % (25.1) % 28.9 % (26.6) %
Operating return on average common equity - annualized (1) 28.8 % 18.4 % 29.4 % 14.4 %

(1)See Comments on Non-GAAP Financial Measures for a reconciliation of non-GAAP financial measures.

RenaissanceRe Holdings Ltd.
Summary Consolidated Balance Sheets
(in thousands of United States Dollars, except per share amounts)
June 30,<br>2023 December 31,<br>2022
Assets (Unaudited) (Audited)
Fixed maturity investments trading, at fair value $ 15,888,564 $ 14,351,402
Short term investments, at fair value 6,373,969 4,669,272
Equity investments, at fair value 93,058 625,058
Other investments, at fair value 3,091,686 2,494,954
Investments in other ventures, under equity method 89,505 79,750
Total investments 25,536,782 22,220,436
Cash and cash equivalents 943,935 1,194,339
Premiums receivable 6,490,886 5,139,471
Prepaid reinsurance premiums 1,187,177 1,021,412
Reinsurance recoverable 4,689,351 4,710,925
Accrued investment income 147,824 121,501
Deferred acquisition costs 1,300,992 1,171,738
Receivable for investments sold 508,887 350,526
Other assets 358,863 384,702
Goodwill and other intangible assets 235,218 237,828
Total assets $ 41,399,915 $ 36,552,878
Liabilities, Noncontrolling Interests and Shareholders’ Equity
Liabilities
Reserve for claims and claim expenses $ 16,138,128 $ 15,892,573
Unearned premiums 5,717,302 4,559,107
Debt 1,882,101 1,170,442
Reinsurance balances payable 3,780,410 3,928,281
Payable for investments purchased 547,974 493,776
Other liabilities 254,925 648,036
Total liabilities 28,320,840 26,692,215
Redeemable noncontrolling interests 5,676,262 4,535,389
Shareholders’ Equity
Preference shares 750,000 750,000
Common shares 51,182 43,718
Additional paid-in capital 1,825,215 475,647
Accumulated other comprehensive income (loss) (14,050) (15,462)
Retained earnings 4,790,466 4,071,371
Total shareholders’ equity attributable to RenaissanceRe 7,402,813 5,325,274
Total liabilities, noncontrolling interests and shareholders’ equity $ 41,399,915 $ 36,552,878
Book value per common share $ 129.98 $ 104.65
RenaissanceRe Holdings Ltd.
--- --- --- --- --- --- --- --- --- --- --- ---
Supplemental Financial Data - Segment Information
(in thousands of United States Dollars, except percentages)
(Unaudited)
Three months ended June 30, 2023
Property Casualty and Specialty Other Total
Gross premiums written $ 1,402,606 $ 1,249,015 $ — $ 2,651,621
Net premiums written $ 1,144,655 $ 1,051,148 $ — $ 2,195,803
Net premiums earned $ 758,686 $ 1,026,576 $ — $ 1,785,262
Net claims and claim expenses incurred 281,993 649,218 — 931,211
Acquisition expenses 140,606 281,939 — 422,545
Operational expenses 55,077 25,414 — 80,491
Underwriting income (loss) $ 281,010 $ 70,005 $ — 351,015
Net investment income 292,662 292,662
Net foreign exchange gains (losses) (13,488) (13,488)
Equity in earnings of other ventures 7,700 7,700
Other income (loss) 3,876 3,876
Net realized and unrealized gains (losses) on investments (222,781) (222,781)
Corporate expenses (23,371) (23,371)
Interest expense (14,895) (14,895)
Income (loss) before taxes and redeemable noncontrolling interests 380,718
Income tax benefit (expense) (5,942) (5,942)
Net (income) loss attributable to redeemable noncontrolling interests (174,907) (174,907)
Dividends on preference shares (8,844) (8,844)
Net income (loss) available (attributable) to RenaissanceRe common shareholders $ 191,025
Net claims and claim expenses incurred – current accident year $ 313,632 $ 649,677 $ — $ 963,309
Net claims and claim expenses incurred – prior accident years (31,639) (459) — (32,098)
Net claims and claim expenses incurred – total $ 281,993 $ 649,218 $ — $ 931,211
Net claims and claim expense ratio – current accident year 41.3 % 63.3 % 54.0 %
Net claims and claim expense ratio – prior accident years (4.1) % (0.1) % (1.8) %
Net claims and claim expense ratio – calendar year 37.2 % 63.2 % 52.2 %
Underwriting expense ratio 25.8 % 30.0 % 28.1 %
Combined ratio 63.0 % 93.2 % 80.3 %
Three months ended June 30, 2022
Property Casualty and Specialty Other Total
Gross premiums written $ 1,218,321 $ 1,246,318 $ — $ 2,464,639
Net premiums written $ 887,975 $ 975,641 $ — $ 1,863,616
Net premiums earned $ 623,581 $ 832,802 $ — $ 1,456,383
Net claims and claim expenses incurred 171,924 534,315 — 706,239
Acquisition expenses 137,567 223,671 — 361,238
Operational expenses 49,627 22,893 — 72,520
Underwriting income (loss) $ 264,463 $ 51,923 $ — 316,386
Net investment income 107,211 107,211
Net foreign exchange gains (losses) (50,821) (50,821)
Equity in earnings of other ventures 7,383 7,383
Other income (loss) 923 923
Net realized and unrealized gains (losses) on investments (654,107) (654,107)
Corporate expenses (12,352) (12,352)
Interest expense (11,895) (11,895)
Income (loss) before taxes and redeemable noncontrolling interests (297,272)
Income tax benefit (expense) 30,534 30,534
Net (income) loss attributable to redeemable noncontrolling interests (49,331) (49,331)
Dividends on preference shares (8,844) (8,844)
Net income (loss) available (attributable) to RenaissanceRe common shareholders $ (324,913)
Net claims and claim expenses incurred – current accident year $ 206,976 $ 542,220 $ — $ 749,196
Net claims and claim expenses incurred – prior accident years (35,052) (7,905) — (42,957)
Net claims and claim expenses incurred – total $ 171,924 $ 534,315 $ — $ 706,239
Net claims and claim expense ratio – current accident year 33.2 % 65.1 % 51.4 %
Net claims and claim expense ratio – prior accident years (5.6) % (0.9) % (2.9) %
Net claims and claim expense ratio – calendar year 27.6 % 64.2 % 48.5 %
Underwriting expense ratio 30.0 % 29.6 % 29.8 %
Combined ratio 57.6 % 93.8 % 78.3 %
RenaissanceRe Holdings Ltd.
--- --- --- --- --- --- --- --- --- --- --- ---
Supplemental Financial Data - Segment Information
(in thousands of United States Dollars, except percentages)
(Unaudited)
Six months ended June 30, 2023
Property Casualty and Specialty Other Total
Gross premiums written $ 2,706,805 $ 2,735,077 $ — $ 5,441,882
Net premiums written $ 2,164,484 $ 2,295,022 $ — $ 4,459,506
Net premiums earned $ 1,446,106 $ 2,019,706 $ — $ 3,465,812
Net claims and claim expenses incurred 469,602 1,262,809 — 1,732,411
Acquisition expenses 285,925 568,877 — 854,802
Operational expenses 110,890 47,075 — 157,965
Underwriting income (loss) $ 579,689 $ 140,945 $ — 720,634
Net investment income 547,040 547,040
Net foreign exchange gains (losses) (27,991) (27,991)
Equity in earnings of other ventures 17,230 17,230
Other income (loss) (430) (430)
Net realized and unrealized gains (losses) on investments 56,670 56,670
Corporate expenses (36,214) (36,214)
Interest expense (27,029) (27,029)
Income (loss) before taxes and redeemable noncontrolling interests 1,249,910
Income tax benefit (expense) (34,844) (34,844)
Net (income) loss attributable to redeemable noncontrolling interests (442,291) (442,291)
Dividends on preference shares (17,688) (17,688)
Net income (loss) available (attributable) to RenaissanceRe common shareholders $ 755,087
Net claims and claim expenses incurred – current accident year $ 582,934 $ 1,286,327 $ — $ 1,869,261
Net claims and claim expenses incurred – prior accident years (113,332) (23,518) — (136,850)
Net claims and claim expenses incurred – total $ 469,602 $ 1,262,809 $ — $ 1,732,411
Net claims and claim expense ratio – current accident year 40.3 % 63.7 % 53.9 %
Net claims and claim expense ratio – prior accident years (7.8) % (1.2) % (3.9) %
Net claims and claim expense ratio – calendar year 32.5 % 62.5 % 50.0 %
Underwriting expense ratio 27.4 % 30.5 % 29.2 %
Combined ratio 59.9 % 93.0 % 79.2 %
Six months ended June 30, 2022
Property Casualty and Specialty Other Total
Gross premiums written $ 2,561,829 $ 2,845,774 $ — $ 5,407,603
Net premiums written $ 1,778,141 $ 2,250,692 $ — $ 4,028,833
Net premiums earned $ 1,242,172 $ 1,700,636 $ — $ 2,942,808
Net claims and claim expenses incurred 431,685 1,116,287 — 1,547,972
Acquisition expenses 264,663 473,082 — 737,745
Operational expenses 96,559 43,868 — 140,427
Underwriting income (loss) $ 449,265 $ 67,399 $ — 516,664
Net investment income 190,902 190,902
Net foreign exchange gains (losses) (66,307) (66,307)
Equity in earnings of other ventures 993 993
Other income (loss) 2,116 2,116
Net realized and unrealized gains (losses) on investments (1,327,124) (1,327,124)
Corporate expenses (24,854) (24,854)
Interest expense (23,850) (23,850)
Income (loss) before taxes and redeemable noncontrolling interests (731,460)
Income tax benefit (expense) 67,241 67,241
Net (income) loss attributable to redeemable noncontrolling interests (37,419) (37,419)
Dividends on preference shares (17,688) (17,688)
Net income (loss) available (attributable) to RenaissanceRe common shareholders $ (719,326)
Net claims and claim expenses incurred – current accident year $ 483,495 $ 1,125,267 $ — $ 1,608,762
Net claims and claim expenses incurred – prior accident years (51,810) (8,980) — (60,790)
Net claims and claim expenses incurred – total $ 431,685 $ 1,116,287 $ — $ 1,547,972
Net claims and claim expense ratio – current accident year 38.9 % 66.2 % 54.7 %
Net claims and claim expense ratio – prior accident years (4.1) % (0.6) % (2.1) %
Net claims and claim expense ratio – calendar year 34.8 % 65.6 % 52.6 %
Underwriting expense ratio 29.0 % 30.4 % 29.8 %
Combined ratio 63.8 % 96.0 % 82.4 %
RenaissanceRe Holdings Ltd.
--- --- --- ---
Supplemental Financial Data - Gross Premiums Written
(in thousands of United States Dollars)
(Unaudited)
Three months ended Six months ended
June 30,<br>2023 June 30,<br>2022 June 30,<br>2023 June 30,<br>2022
Property Segment
Catastrophe $ 1,001,839 $ 803,333 $ 1,930,434 $ 1,689,424
Other property 400,767 414,988 776,371 872,405
Property segment gross premiums written $ 1,402,606 $ 1,218,321 $ 2,706,805 $ 2,561,829
Casualty and Specialty Segment
General casualty (1) $ 375,945 $ 322,733 $ 843,837 $ 802,875
Professional liability (2) 308,284 448,801 690,537 998,520
Credit (3) 191,985 219,480 423,661 478,584
Other specialty (4) 372,801 255,304 777,042 565,795
Casualty and Specialty segment gross premiums written $ 1,249,015 $ 1,246,318 $ 2,735,077 $ 2,845,774 (1) Includes automobile liability, casualty clash, employer’s liability, umbrella or excess casualty, workers’ compensation and general liability.
--- ---
(2) Includes directors and officers, medical malpractice, and professional indemnity.
(3) Includes financial guaranty, mortgage guaranty, political risk, surety and trade credit.
(4) Includes accident and health, agriculture, aviation, cyber, energy, marine, satellite and terrorism. Lines of business such as regional multi-line and whole account may have characteristics of various other classes of business, and are allocated accordingly.
RenaissanceRe Holdings Ltd.
--- --- --- --- --- --- --- --- --- --- --- --- ---
Supplemental Financial Data - Total Investment Result
(in thousands of United States Dollars, except percentages)
(Unaudited)
Three months ended Six months ended
June 30,<br>2023 June 30,<br>2022 June 30,<br>2023 June 30,<br>2022
Fixed maturity investments trading $ 169,739 $ 76,547 $ 325,239 $ 138,964
Short term investments 50,231 4,397 83,181 5,533
Equity investments 2,766 4,516 6,165 7,270
Other investments
Catastrophe bonds 49,522 20,235 88,353 37,595
Other 20,820 6,894 45,391 12,446
Cash and cash equivalents 4,585 (95) 8,849 (136)
297,663 112,494 557,178 201,672
Investment expenses (5,001) (5,283) (10,138) (10,770)
Net investment income $ 292,662 $ 107,211 547,040 190,902
Net investment income return - annualized 5.3 % 2.1 % 5.1 % 1.8 %
Net realized gains (losses) on fixed maturity investments trading $ (74,212) $ (287,154) $ (178,977) $ (408,306)
Net unrealized gains (losses) on fixed maturity investments trading (139,793) (149,820) 172,233 (613,997)
Net realized and unrealized gains (losses) on fixed maturity investments trading (214,005) (436,974) (6,744) (1,022,303)
Net realized and unrealized gains (losses) on investments-related derivatives (65,051) (66,078) (52,889) (106,366)
Net realized gains (losses) on equity investments (18,755) 35,592 (27,493) 35,572
Net unrealized gains (losses) on equity investments 20,627 (127,104) 59,778 (175,773)
Net realized and unrealized gains (losses) on equity investments 1,872 (91,512) 32,285 (140,201)
Net realized and unrealized gains (losses) on other investments - catastrophe bonds 38,186 (24,660) 62,312 (32,921)
Net realized and unrealized gains (losses) on other investments - other 16,217 (34,883) 21,706 (25,333)
Net realized and unrealized gains (losses) on investments (222,781) (654,107) 56,670 (1,327,124)
Total investment result $ 69,881 $ (546,896) $ 603,710 $ (1,136,222)
Total investment return - annualized 1.6 % (10.1) % 5.5 % (10.5) %
Comments on Non-GAAP Financial Measures
---

In addition to the GAAP financial measures set forth in this Press Release, the Company has included certain non-GAAP financial measures within the meaning of Regulation G. The Company has provided certain of these financial measures in previous investor communications and the Company’s management believes that such measures are important to investors and other interested persons, and that investors and such other persons benefit from having a consistent basis for comparison between quarters and for comparison with other companies within or outside the industry. These measures may not, however, be comparable to similarly titled measures used by companies within or outside of the insurance industry. Investors are cautioned not to place undue reliance on these non-GAAP measures in assessing the Company’s overall financial performance.

Operating Income (Loss) Available (Attributable) to RenaissanceRe Common Shareholders and Operating Return on Average Common Equity - Annualized

The Company uses “operating income (loss) available (attributable) to RenaissanceRe common shareholders” as a measure to evaluate the underlying fundamentals of its operations and believes it to be a useful measure of its corporate performance. “Operating income (loss) available (attributable) to RenaissanceRe common shareholders” as used herein differs from “net income (loss) available (attributable) to RenaissanceRe common shareholders,” which the Company believes is the most directly comparable GAAP measure, by the exclusion of (1) net realized and unrealized gains and losses on investments, excluding other investments - catastrophe bonds, (2) net foreign exchange gains and losses, (3) corporate expenses associated with the pending acquisition of Validus, (4) the income tax expense or benefit associated with these adjustments and (5) the portion of these adjustments attributable to the Company’s redeemable noncontrolling interests. The Company also uses “operating income (loss) available (attributable) to RenaissanceRe common shareholders” to calculate “operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted” and “operating return on average common equity - annualized.” The Company’s management believes that “operating income (loss) available (attributable) to RenaissanceRe common shareholders,” “operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted” and “operating return on average common equity - annualized” are useful to investors because they more accurately measure and predict the Company’s results of operations by removing the variability arising from the listed adjustments. The following table is a reconciliation of: (1) net income (loss) available (attributable) to RenaissanceRe common shareholders to “operating income (loss) available (attributable) to RenaissanceRe common shareholders”; (2) net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted to “operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted”; and (3) return on average common equity - annualized to “operating return on average common equity - annualized.”

Three months ended Six months ended
(in thousands of United States Dollars, except per share amounts and percentages) June 30,<br>2023 June 30,<br>2022 June 30,<br>2023 June 30,<br>2022
Net income (loss) available (attributable) to RenaissanceRe common shareholders $ 191,025 $ (324,913) $ 755,087 $ (719,326)
Adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds 260,967 629,447 5,642 1,294,203
Adjustment for net foreign exchange losses (gains) 13,488 50,821 27,991 66,307
Adjustment for corporate expenses associated with the pending acquisition of Validus 11,341 — 11,341 —
Adjustment for income tax expense (benefit) (1) (10,235) (42,726) 1,087 (84,600)
Adjustment for net income (loss) attributable to redeemable noncontrolling interests (2) (59,151) (74,497) (33,705) (166,507)
Operating income (loss) available (attributable) to RenaissanceRe common shareholders $ 407,435 $ 238,132 $ 767,443 $ 390,077
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted $ 4.09 $ (7.53) $ 16.71 $ (16.64)
Adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds 5.67 14.58 0.13 29.91
Adjustment for net foreign exchange losses (gains) 0.29 1.18 0.63 1.53
Adjustment for corporate expenses associated with the pending acquisition of Validus 0.25 — 0.25 —
Adjustment for income tax expense (benefit) (1) (0.22) (0.99) 0.02 (1.96)
Adjustment for net income (loss) attributable to redeemable noncontrolling interests (2) (1.29) (1.73) (0.76) (3.85)
Operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted $ 8.79 $ 5.51 $ 16.98 $ 8.99
Return on average common equity - annualized 13.5 % (25.1) % 28.9 % (26.6) %
Adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds 18.4 % 48.7 % 0.3 % 47.8 %
Adjustment for net foreign exchange losses (gains) 1.0 % 3.9 % 1.1 % 2.5 %
Adjustment for corporate expenses associated with the pending acquisition of Validus 0.8 % — % 0.4 % — %
Adjustment for income tax expense (benefit) (1) (0.7) % (3.3) % — % (3.1) %
Adjustment for net income (loss) attributable to redeemable noncontrolling interests (2) (4.2) % (5.8) % (1.3) % (6.2) %
Operating return on average common equity - annualized 28.8 % 18.4 % 29.4 % 14.4 %

(1)Represents the income tax (expense) benefit associated with the adjustments to net income (loss) available (attributable) to RenaissanceRe common shareholders. The income tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors.

(2)Represents the portion of the adjustments above that are attributable to the Company’s redeemable noncontrolling interests, including the income tax impact of those adjustments.

Tangible Book Value Per Common Share and Tangible Book Value Per Common Share Plus Accumulated Dividends

The Company has included in this Press Release “tangible book value per common share” and “tangible book value per common share plus accumulated dividends.” “Tangible book value per common share” is defined as book value per common share excluding goodwill and intangible assets per share. “Tangible book value per common share plus accumulated dividends” is defined as book value per common share excluding goodwill and intangible assets per share, plus accumulated dividends. The Company’s management believes “tangible book value per common share” and “tangible book value per common share plus accumulated dividends” are useful to investors because they provide a more accurate measure of the realizable value of shareholder returns, excluding the impact of goodwill and intangible assets. The following table is a reconciliation of book value per common share to “tangible book value per common share” and “tangible book value per common share plus accumulated dividends.”

June 30,<br>2023 March 31,<br>2023 December 31,<br>2022 September 30,<br>2022 June 30,<br>2022
Book value per common share $ 129.98 $ 116.44 $ 104.65 $ 94.55 $ 113.69
Adjustment for goodwill and other intangibles (1) (4.95) (5.78) (5.84) (5.89) (5.90)
Tangible book value per common share 125.03 110.66 98.81 88.66 107.79
Adjustment for accumulated dividends 25.76 25.38 25.00 24.63 24.26
Tangible book value per common share plus accumulated dividends $ 150.79 $ 136.04 $ 123.81 $ 113.29 $ 132.05
Quarterly change in book value per common share 11.6 % 11.3 % 10.7 % (16.8) % (6.4) %
Quarterly change in book value per common share plus change in accumulated dividends 12.0 % 11.6 % 11.1 % (16.5) % (6.1) %
Quarterly change in tangible book value per common share plus change in accumulated dividends 13.3 % 12.4 % 11.9 % (17.4) % (6.4) %
Year to date change in book value per common share 24.2 % 11.3 % (20.8) % (28.5) % (14.0) %
Year to date change in book value per common share plus change in accumulated dividends 24.9 % 11.6 % (19.7) % (27.6) % (13.4) %
Year to date change in tangible book value per common share plus change in accumulated dividends 27.3 % 12.4 % (20.6) % (28.9) % (14.0) %

(1)At June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022, the adjustment for goodwill and other intangibles included $18.3 million, $17.5 million, $17.8 million, $18.0 million and $18.3 million, respectively, of goodwill and other intangibles included in investments in other ventures, under equity method.

18

Document

rnrfinancialsupplement_q223a.jpg

RenaissanceRe Holdings Ltd.
Contents Page
--- --- ---
Basis of Presentation i
Financial Highlights 1
Summary Consolidated Financial Statements
a. Consolidated Statements of Operations 3
b. Consolidated Balance Sheets 4
Underwriting and Reserves
a. Consolidated Segment Underwriting Results 5
b. Consolidated and Segment Underwriting Results - Five Quarter Trend 7
c. Property Segment - Catastrophe and Other Property Underwriting Results 10
d. Gross Premiums Written 12
e. Net Premiums Written 13
f. Net Premiums Earned 14
g. Reserves for Claims and Claim Expenses 15
h. Paid to Incurred Analysis 16
Managed Joint Ventures and Fee Income
a. Fee Income 17
b. Fee income - Five Quarter Trend 18
c. Noncontrolling Interests 19
d. DaVinciRe Holdings Ltd. and Subsidiary Consolidated Statements of Operations 21
Investments
a. Total Investment Result 22
b. Investments Composition 24
c. Managed Investments - Credit Rating 25
d. Retained Investments - Credit Rating 26
Other Items
a. Earnings per Share 27
Comments on Non-GAAP Financial Measures 28

renaissanceresmalla36a.jpg

RenaissanceRe Holdings Ltd.
Basis of Presentation

RenaissanceRe Holdings Ltd. (the “Company” or “RenaissanceRe”) is a global provider of reinsurance and insurance that specializes in matching well-structured risks with efficient sources of capital. The Company provides property, casualty and specialty reinsurance and certain insurance solutions to customers, principally through intermediaries. Established in 1993, the Company has offices in Bermuda, Australia, Ireland, Singapore, Switzerland, the United Kingdom and the United States.

This financial supplement includes certain financial measures that are not calculated in accordance with generally accepted accounting principles in the U.S. (“GAAP”) including “operating income (loss) available (attributable) to RenaissanceRe common shareholders,” “operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted,” “operating return on average common equity - annualized,” “tangible book value per common share,” “tangible book value per common share plus accumulated dividends,” “retained total investment result,” “retained investments, at fair value,” “retained investments, unrealized gain (loss)” and “operating (income) loss attributable to redeemable noncontrolling interests.” A reconciliation of such measures to the most comparable GAAP figures is presented in the attached supplemental financial data. See pages 28 through 35 for “Comments on Non-GAAP Financial Measures.”

All information contained herein is unaudited. Unless otherwise noted, amounts are in thousands of United States Dollars, except for share and per share amounts and ratio information. Certain prior period comparatives have been reclassified to conform to the current presentation. This supplement is being provided for informational purposes only. It should be read in conjunction with documents filed by RenaissanceRe with the U.S. Securities and Exchange Commission, including its Annual Reports on Form 10-K and its Quarterly Reports on Form 10-Q. Please refer to the Company’s website at www.renre.com for further information about RenaissanceRe.

Cautionary Statement Regarding Forward-Looking Statements

Any forward-looking statements made in this Financial Supplement reflect RenaissanceRe’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company may also make forward-looking statements with respect to its business and industry, such as those relating to its strategy and management objectives, plans and expectations regarding its response and ability to adapt to changing economic conditions, market standing and product volumes, estimates of net negative impact and insured losses from loss events, among other things. These statements are subject to numerous factors that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements, including the following: the risk that the pending acquisition of certain direct and indirect subsidiaries of American International Group, Inc, including Validus Holdings, Ltd., Validus Specialty, LLC, and Validus Reinsurance, Ltd. (together with the other transactions contemplated thereby, the “Validus Acquisition”) may not be completed within the expected timeframe or at all; the risk that regulatory agencies in certain jurisdictions may impose onerous

i

conditions following the Validus Acquisition; difficulties in integrating the acquired business; risk that the due diligence process that the Company undertook in connection with the Validus Acquisition may not have revealed all facts that may be relevant in connection with the Validus Acquisition; the Company's ability to manage the growth of the acquired business’ operations successfully following the Validus Acquisition; that historical financial statements of Validus Reinsurance Ltd. are not representative of the future financial position, future results of operations or future cash flows of Validus Reinsurance Ltd. following the Validus Acquisition; risks from the Company's increased debt obligations as a result of the Validus Acquisition; the Company’s dilutive impact on the Company's shareholders from the issuance of common shares to AIG in connection with the Validus Acquisition; the Company’s exposure to natural and non-natural catastrophic events and circumstances and the variance it may cause in the Company’s financial results; the effect of climate change on the Company’s business, including the trend towards increasingly frequent and severe climate events; the effectiveness of the Company’s claims and claim expense reserving process; the effect of emerging claims and coverage issues; the performance of the Company’s investment portfolio and financial market volatility; the effects of inflation; the ability of the Company’s ceding companies and delegated authority counterparties to accurately assess the risks they underwrite; the Company’s ability to maintain its financial strength ratings; the highly competitive nature of the Company’s industry and its reliance on a small number of brokers; collection on claimed retrocessional coverage, and new retrocessional reinsurance being available on acceptable terms or at all; the historically cyclical nature of the (re)insurance industries; the Company’s ability to attract and retain key executives and employees; the Company’s ability to successfully implement its business strategies and initiatives; the Company’s exposure to credit loss from counterparties; the Company’s need to make many estimates and judgments in the preparation of its financial statements; the Company’s ability to effectively manage capital on behalf of investors in joint ventures or other entities it manages; changes to the accounting rules and regulatory systems applicable to the Company’s business, including changes in Bermuda and U.S. laws and regulations; other political, regulatory or industry initiatives adversely impacting the Company; the Company’s ability to comply with covenants in its debt agreements; the effect of adverse economic factors, including changes in prevailing interest rates and recession or the perception that recession may occur; the effect of cybersecurity risks, including technology breaches or failure; a contention by the U.S. Internal Revenue Service that any of the Company’s Bermuda subsidiaries are subject to taxation in the U.S.; the effects of possible future tax reform legislation and regulations in the jurisdictions in which the Company operates; the Company’s ability to determine any impairments taken on its investments; the Company’s ability to raise capital on acceptable terms, including through debt instruments, the capital markets, and third party investments in the Company's joint ventures and managed funds; the Company’s ability to comply with applicable sanctions and foreign corrupt practices laws; the Company’s dependence on the ability of its operating subsidiaries to declare and pay dividends; and other factors affecting future results disclosed in RenaissanceRe’s filings with the SEC, including its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.

ii
RenaissanceRe Holdings Ltd.
--- --- --- --- ---
Financial Highlights
Three months ended Six months ended
June 30,<br>2023 June 30,<br>2022 June 30,<br>2023 June 30,<br>2022
Net income (loss) available (attributable) to RenaissanceRe common shareholders $ 191,025 $ (324,913) $ 755,087 $ (719,326)
Operating income (loss) available (attributable) to RenaissanceRe common shareholders (1) $ 407,435 $ 238,132 $ 767,443 $ 390,077
Underwriting income
Gross premiums written $ 2,651,621 $ 2,464,639 $ 5,441,882 $ 5,407,603
Net premiums written 2,195,803 1,863,616 4,459,506 4,028,833
Underwriting income (loss) 351,015 316,386 720,634 516,664
Net claims and claim expense ratio:
Current accident year 54.0 % 51.4 % 53.9 % 54.7 %
Prior accident years (1.8) % (2.9) % (3.9) % (2.1) %
Calendar year 52.2 % 48.5 % 50.0 % 52.6 %
Acquisition expense ratio 23.6 % 24.8 % 24.6 % 25.0 %
Operating expense ratio 4.5 % 5.0 % 4.6 % 4.8 %
Combined ratio 80.3 % 78.3 % 79.2 % 82.4 %
Fee income
Management fee income $ 43,439 $ 30,707 $ 84,344 $ 57,929
Performance fee income 13,242 3,548 17,109 4,675
Total fee income $ 56,681 $ 34,255 $ 101,453 $ 62,604
Investment results - managed
Net investment income $ 292,662 $ 107,211 $ 547,040 $ 190,902
Net realized and unrealized gains (losses) on investments (222,781) (654,107) 56,670 (1,327,124)
Total investment result $ 69,881 $ (546,896) $ 603,710 $ (1,136,222)
Total investment return - annualized 1.6 % (10.1) % 5.5 % (10.5) %
Investment results - retained (1)
Net investment income $ 189,315 $ 74,983 $ 357,324 $ 137,658
Net realized and unrealized gains (losses) on investments (209,683) (576,071) 15,864 (1,160,694)
Total investment result $ (20,368) $ (501,088) $ 373,188 $ (1,023,036)
Total investment return - annualized (0.4) % (13.6) % 4.9 % (13.9) %

(1)    See “Comments on Non-GAAP Financial Measures” for a reconciliation of non-GAAP financial measures.

Financial Highlights - Per Share Data & ROE
Three months ended Six months ended
June 30,<br>2023 June 30,<br>2022 June 30,<br>2023 June 30,<br>2022
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - basic $ 4.10 $ (7.53) $ 16.75 $ (16.64)
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted $ 4.09 $ (7.53) $ 16.71 $ (16.64)
Operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted (1) $ 8.79 $ 5.51 $ 16.98 $ 8.99
Average shares outstanding - basic 45,898 43,170 44,387 43,264
Average shares outstanding - diluted 45,990 43,170 44,498 43,264
Return on average common equity - annualized 13.5 % (25.1) % 28.9 % (26.6) %
Operating return on average common equity - annualized (1) 28.8 % 18.4 % 29.4 % 14.4 %
June 30,<br>2023 December 31,<br>2022
Book value per common share $ 129.98 $ 104.65
Tangible book value per common share (1) $ 125.03 $ 98.81
Tangible book value per common share plus accumulated dividends (1) $ 150.79 $ 123.81
Year to date change in book value per common share plus change in accumulated dividends 24.9 % (19.7) %
Year to date change in tangible book value per common share plus change in accumulated dividends (1) 27.3 % (20.6) %

(1)    See “Comments on Non-GAAP Financial Measures” for a reconciliation of non-GAAP financial measures.

Summary Consolidated Financial Statements
Consolidated Statements of Operations
Three months ended Six months ended
June 30,<br>2023 June 30,<br>2022 June 30,<br>2023 June 30,<br>2022
Revenues
Gross premiums written $ 2,651,621 $ 2,464,639 $ 5,441,882 $ 5,407,603
Net premiums written $ 2,195,803 $ 1,863,616 $ 4,459,506 $ 4,028,833
Decrease (increase) in unearned premiums (410,541) (407,233) (993,694) (1,086,025)
Net premiums earned 1,785,262 1,456,383 3,465,812 2,942,808
Net investment income 292,662 107,211 547,040 190,902
Net foreign exchange gains (losses) (13,488) (50,821) (27,991) (66,307)
Equity in earnings (losses) of other ventures 7,700 7,383 17,230 993
Other income (loss) 3,876 923 (430) 2,116
Net realized and unrealized gains (losses) on investments (222,781) (654,107) 56,670 (1,327,124)
Total revenues 1,853,231 866,972 4,058,331 1,743,388
Expenses
Net claims and claim expenses incurred 931,211 706,239 1,732,411 1,547,972
Acquisition expenses 422,545 361,238 854,802 737,745
Operational expenses 80,491 72,520 157,965 140,427
Corporate expenses 23,371 12,352 36,214 24,854
Interest expense 14,895 11,895 27,029 23,850
Total expenses 1,472,513 1,164,244 2,808,421 2,474,848
Income (loss) before taxes 380,718 (297,272) 1,249,910 (731,460)
Income tax benefit (expense) (5,942) 30,534 (34,844) 67,241
Net income (loss) 374,776 (266,738) 1,215,066 (664,219)
Net (income) loss attributable to redeemable noncontrolling interests (174,907) (49,331) (442,291) (37,419)
Net income (loss) attributable to RenaissanceRe 199,869 (316,069) 772,775 (701,638)
Dividends on preference shares (8,844) (8,844) (17,688) (17,688)
Net income (loss) available (attributable) to RenaissanceRe common shareholders $ 191,025 $ (324,913) $ 755,087 $ (719,326)
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - basic $ 4.10 $ (7.53) $ 16.75 $ (16.64)
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted $ 4.09 $ (7.53) $ 16.71 $ (16.64)
Operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted (1) $ 8.79 $ 5.51 $ 16.98 $ 8.99
Return on average common equity - annualized 13.5 % (25.1) % 28.9 % (26.6) %
Operating return on average common equity - annualized (1) 28.8 % 18.4 % 29.4 % 14.4 %

(1)    See “Comments on Non-GAAP Financial Measures” for a reconciliation of non-GAAP financial measures.

Summary Consolidated Financial Statements
Consolidated Balance Sheets
June 30,<br>2023 December 31,<br>2022
Assets
Fixed maturity investments trading, at fair value – amortized cost $16,398,682 at June 30, 2023 (December 31, 2022 – $15,038,551) $ 15,888,564 $ 14,351,402
Short term investments, at fair value - amortized cost $6,374,957 at June 30, 2023 (December 31, 2022 - $4,671,581) 6,373,969 4,669,272
Equity investments, at fair value 93,058 625,058
Other investments, at fair value 3,091,686 2,494,954
Investments in other ventures, under equity method 89,505 79,750
Total investments 25,536,782 22,220,436
Cash and cash equivalents 943,935 1,194,339
Premiums receivable 6,490,886 5,139,471
Prepaid reinsurance premiums 1,187,177 1,021,412
Reinsurance recoverable 4,689,351 4,710,925
Accrued investment income 147,824 121,501
Deferred acquisition costs 1,300,992 1,171,738
Receivable for investments sold 508,887 350,526
Other assets 358,863 384,702
Goodwill and other intangibles 235,218 237,828
Total assets $ 41,399,915 $ 36,552,878
Liabilities, Noncontrolling Interests and Shareholders' Equity
Liabilities
Reserve for claims and claim expenses $ 16,138,128 $ 15,892,573
Unearned premiums 5,717,302 4,559,107
Debt 1,882,101 1,170,442
Reinsurance balances payable 3,780,410 3,928,281
Payable for investments purchased 547,974 493,776
Other liabilities 254,925 648,036
Total liabilities 28,320,840 26,692,215
Redeemable noncontrolling interests 5,676,262 4,535,389
Shareholders' Equity
Preference shares: $1.00 par value – 30,000 shares issued and outstanding at June 30, 2023 (December 31, 2022 – 30,000) 750,000 750,000
Common shares: $1.00 par value – 51,182,221 shares issued and outstanding at June 30, 2023 (December 31, 2022 – 43,717,836) 51,182 43,718
Additional paid-in capital 1,825,215 475,647
Accumulated other comprehensive loss (14,050) (15,462)
Retained earnings 4,790,466 4,071,371
Total shareholders' equity attributable to RenaissanceRe 7,402,813 5,325,274
Total liabilities, noncontrolling interests and shareholders' equity $ 41,399,915 $ 36,552,878
Book value per common share $ 129.98 $ 104.65
Underwriting and Reserves
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Consolidated Segment Underwriting Results
Three months ended June 30, 2023 Three months ended June 30, 2022
Property Casualty and Specialty Total Property Casualty and Specialty Total
Gross premiums written $ 1,402,606 $ 1,249,015 $ 2,651,621 $ 1,218,321 $ 1,246,318 $ 2,464,639
Net premiums written $ 1,144,655 $ 1,051,148 $ 2,195,803 $ 887,975 $ 975,641 $ 1,863,616
Net premiums earned $ 758,686 $ 1,026,576 $ 1,785,262 $ 623,581 $ 832,802 $ 1,456,383
Net claims and claim expenses incurred 281,993 649,218 931,211 171,924 534,315 706,239
Acquisition expenses 140,606 281,939 422,545 137,567 223,671 361,238
Operational expenses 55,077 25,414 80,491 49,627 22,893 72,520
Underwriting income (loss) $ 281,010 $ 70,005 $ 351,015 $ 264,463 $ 51,923 $ 316,386
Net claims and claim expenses incurred:
Current accident year $ 313,632 $ 649,677 $ 963,309 $ 206,976 $ 542,220 $ 749,196
Prior accident years (31,639) (459) (32,098) (35,052) (7,905) (42,957)
Total $ 281,993 $ 649,218 $ 931,211 $ 171,924 $ 534,315 $ 706,239
Net claims and claim expense ratio:
Current accident year 41.3 % 63.3 % 54.0 % 33.2 % 65.1 % 51.4 %
Prior accident years (4.1) % (0.1) % (1.8) % (5.6) % (0.9) % (2.9) %
Calendar year 37.2 % 63.2 % 52.2 % 27.6 % 64.2 % 48.5 %
Acquisition expense ratio 18.5 % 27.5 % 23.6 % 22.0 % 26.9 % 24.8 %
Operating expense ratio 7.3 % 2.5 % 4.5 % 8.0 % 2.7 % 5.0 %
Combined ratio 63.0 % 93.2 % 80.3 % 57.6 % 93.8 % 78.3 %
Underwriting and Reserves
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Consolidated Segment Underwriting Results
Six months ended June 30, 2023 Six months ended June 30, 2022
Property Casualty and Specialty Total Property Casualty and Specialty Total
Gross premiums written $ 2,706,805 $ 2,735,077 $ 5,441,882 $ 2,561,829 $ 2,845,774 $ 5,407,603
Net premiums written $ 2,164,484 $ 2,295,022 $ 4,459,506 $ 1,778,141 $ 2,250,692 $ 4,028,833
Net premiums earned $ 1,446,106 $ 2,019,706 $ 3,465,812 $ 1,242,172 $ 1,700,636 $ 2,942,808
Net claims and claim expenses incurred 469,602 1,262,809 1,732,411 431,685 1,116,287 1,547,972
Acquisition expenses 285,925 568,877 854,802 264,663 473,082 737,745
Operational expenses 110,890 47,075 157,965 96,559 43,868 140,427
Underwriting income (loss) $ 579,689 $ 140,945 $ 720,634 $ 449,265 $ 67,399 $ 516,664
Net claims and claim expenses incurred:
Current accident year $ 582,934 $ 1,286,327 $ 1,869,261 $ 483,495 $ 1,125,267 $ 1,608,762
Prior accident years (113,332) (23,518) (136,850) (51,810) (8,980) (60,790)
Total $ 469,602 $ 1,262,809 $ 1,732,411 $ 431,685 $ 1,116,287 $ 1,547,972
Net claims and claim expense ratio:
Current accident year 40.3 % 63.7 % 53.9 % 38.9 % 66.2 % 54.7 %
Prior accident years (7.8) % (1.2) % (3.9) % (4.1) % (0.6) % (2.1) %
Calendar year 32.5 % 62.5 % 50.0 % 34.8 % 65.6 % 52.6 %
Acquisition expense ratio 19.7 % 28.2 % 24.6 % 21.2 % 27.8 % 25.0 %
Operating expense ratio 7.7 % 2.3 % 4.6 % 7.8 % 2.6 % 4.8 %
Combined ratio 59.9 % 93.0 % 79.2 % 63.8 % 96.0 % 82.4 %
Underwriting and Reserves
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Consolidated Underwriting Results - Five Quarter Trend
Total
June 30,<br>2023 March 31,<br>2023 December 31,<br>2022 September 30,<br>2022 June 30,<br>2022
Gross premiums written $ 2,651,621 $ 2,790,261 $ 1,585,276 $ 2,220,661 $ 2,464,639
Net premiums written $ 2,195,803 $ 2,263,703 $ 1,345,616 $ 1,821,711 $ 1,863,616
Net premiums earned $ 1,785,262 $ 1,680,550 $ 1,624,160 $ 1,767,021 $ 1,456,383
Net claims and claim expenses incurred 931,211 801,200 822,937 1,967,931 706,239
Acquisition expenses 422,545 432,257 413,217 417,644 361,238
Operational expenses 80,491 77,474 71,704 64,560 72,520
Underwriting income (loss) $ 351,015 $ 369,619 $ 316,302 $ (683,114) $ 316,386
Net claims and claim expenses incurred:
Current accident year $ 963,309 $ 905,952 $ 977,823 $ 1,999,837 $ 749,196
Prior accident years (32,098) (104,752) (154,886) (31,906) (42,957)
Total $ 931,211 $ 801,200 $ 822,937 $ 1,967,931 $ 706,239
Net claims and claim expense ratio:
Current accident year 54.0 % 53.9 % 60.2 % 113.2 % 51.4 %
Prior accident years (1.8) % (6.2) % (9.5) % (1.8) % (2.9) %
Calendar year 52.2 % 47.7 % 50.7 % 111.4 % 48.5 %
Acquisition expense ratio 23.6 % 25.7 % 25.4 % 23.6 % 24.8 %
Operating expense ratio 4.5 % 4.6 % 4.4 % 3.7 % 5.0 %
Combined ratio 80.3 % 78.0 % 80.5 % 138.7 % 78.3 %
Underwriting and Reserves
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Property Underwriting Results - Five Quarter Trend
Property
June 30,<br>2023 March 31,<br>2023 December 31,<br>2022 September 30,<br>2022 June 30,<br>2022
Gross premiums written $ 1,402,606 $ 1,304,199 $ 372,082 $ 800,330 $ 1,218,321
Net premiums written $ 1,144,655 $ 1,019,829 $ 372,998 $ 696,520 $ 887,975
Net premiums earned $ 758,686 $ 687,420 $ 688,238 $ 839,817 $ 623,581
Net claims and claim expenses incurred 281,993 187,609 240,503 1,372,583 171,924
Acquisition expenses 140,606 145,319 140,872 141,675 137,567
Operational expenses 55,077 55,813 49,638 48,158 49,627
Underwriting income (loss) $ 281,010 $ 298,679 $ 257,225 $ (722,599) $ 264,463
Net claims and claim expenses incurred:
Current accident year $ 313,632 $ 269,302 $ 370,175 $ 1,396,842 $ 206,976
Prior accident years (31,639) (81,693) (129,672) (24,259) (35,052)
Total $ 281,993 $ 187,609 $ 240,503 $ 1,372,583 $ 171,924
Net claims and claim expense ratio:
Current accident year 41.3 % 39.2 % 53.8 % 166.3 % 33.2 %
Prior accident years (4.1) % (11.9) % (18.9) % (2.9) % (5.6) %
Calendar year 37.2 % 27.3 % 34.9 % 163.4 % 27.6 %
Acquisition expense ratio 18.5 % 21.2 % 20.5 % 16.9 % 22.0 %
Operating expense ratio 7.3 % 8.1 % 7.2 % 5.7 % 8.0 %
Combined ratio 63.0 % 56.6 % 62.6 % 186.0 % 57.6 %
Underwriting and Reserves
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Casualty and Specialty Underwriting Results - Five Quarter Trend
Casualty and Specialty
June 30,<br>2023 March 31,<br>2023 December 31,<br>2022 September 30,<br>2022 June 30,<br>2022
Gross premiums written $ 1,249,015 $ 1,486,062 $ 1,213,194 $ 1,420,331 $ 1,246,318
Net premiums written $ 1,051,148 $ 1,243,874 $ 972,618 $ 1,125,191 $ 975,641
Net premiums earned $ 1,026,576 $ 993,130 $ 935,922 $ 927,204 $ 832,802
Net claims and claim expenses incurred 649,218 613,591 582,434 595,348 534,315
Acquisition expenses 281,939 286,938 272,345 275,969 223,671
Operational expenses 25,414 21,661 22,066 16,402 22,893
Underwriting income (loss) $ 70,005 $ 70,940 $ 59,077 $ 39,485 $ 51,923
Net claims and claim expenses incurred:
Current accident year $ 649,677 $ 636,650 $ 607,648 $ 602,995 $ 542,220
Prior accident years (459) (23,059) (25,214) (7,647) (7,905)
Total $ 649,218 $ 613,591 $ 582,434 $ 595,348 $ 534,315
Net claims and claim expense ratio:
Current accident year 63.3 % 64.1 % 64.9 % 65.0 % 65.1 %
Prior accident years (0.1) % (2.3) % (2.7) % (0.8) % (0.9) %
Calendar year 63.2 % 61.8 % 62.2 % 64.2 % 64.2 %
Acquisition expense ratio 27.5 % 28.9 % 29.1 % 29.7 % 26.9 %
Operating expense ratio 2.5 % 2.2 % 2.4 % 1.8 % 2.7 %
Combined ratio 93.2 % 92.9 % 93.7 % 95.7 % 93.8 %
Underwriting and Reserves
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Property Segment - Catastrophe and Other Property Underwriting Results
Three months ended June 30, 2023 Three months ended June 30, 2022
Catastrophe Other Property Total Catastrophe Other Property Total
Gross premiums written $ 1,001,839 $ 400,767 $ 1,402,606 $ 803,333 $ 414,988 $ 1,218,321
Net premiums written $ 771,936 $ 372,719 $ 1,144,655 $ 498,504 $ 389,471 $ 887,975
Net premiums earned $ 423,733 $ 334,953 $ 758,686 $ 279,770 $ 343,811 $ 623,581
Net claims and claim expenses incurred 118,093 163,900 281,993 (3,748) 175,672 171,924
Acquisition expenses 50,637 89,969 140,606 37,634 99,933 137,567
Operational expenses 44,152 10,925 55,077 40,392 9,235 49,627
Underwriting income (loss) $ 210,851 $ 70,159 $ 281,010 $ 205,492 $ 58,971 $ 264,463
Net claims and claim expenses incurred:
Current accident year $ 139,196 $ 174,436 $ 313,632 $ 28,553 $ 178,423 $ 206,976
Prior accident years (21,103) (10,536) (31,639) (32,301) (2,751) (35,052)
Total $ 118,093 $ 163,900 $ 281,993 $ (3,748) $ 175,672 $ 171,924
Net claims and claim expense ratio:
Current accident year 32.8 % 52.1 % 41.3 % 10.2 % 51.9 % 33.2 %
Prior accident years (4.9) % (3.2) % (4.1) % (11.5) % (0.8) % (5.6) %
Calendar year 27.9 % 48.9 % 37.2 % (1.3) % 51.1 % 27.6 %
Acquisition expense ratio 11.9 % 26.9 % 18.5 % 13.4 % 29.0 % 22.0 %
Operating expense ratio 10.4 % 3.3 % 7.3 % 14.4 % 2.7 % 8.0 %
Combined ratio 50.2 % 79.1 % 63.0 % 26.5 % 82.8 % 57.6 %
Underwriting and Reserves
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Property Segment - Catastrophe and Other Property Underwriting Results
Six months ended June 30, 2023 Six months ended June 30, 2022
Catastrophe Other Property Total Catastrophe Other Property Total
Gross premiums written $ 1,930,434 $ 776,371 $ 2,706,805 $ 1,689,424 $ 872,405 $ 2,561,829
Net premiums written $ 1,588,423 $ 576,061 $ 2,164,484 $ 1,100,291 $ 677,850 $ 1,778,141
Net premiums earned $ 776,486 $ 669,620 $ 1,446,106 $ 558,767 $ 683,405 $ 1,242,172
Net claims and claim expenses incurred 105,281 364,321 469,602 71,507 360,178 431,685
Acquisition expenses 92,687 193,238 285,925 72,442 192,221 264,663
Operational expenses 89,961 20,929 110,890 78,534 18,025 96,559
Underwriting income (loss) $ 488,557 $ 91,132 $ 579,689 $ 336,284 $ 112,981 $ 449,265
Net claims and claim expenses incurred:
Current accident year $ 206,795 $ 376,139 $ 582,934 $ 132,118 $ 351,377 $ 483,495
Prior accident years (101,514) (11,818) (113,332) (60,611) 8,801 (51,810)
Total $ 105,281 $ 364,321 $ 469,602 $ 71,507 $ 360,178 $ 431,685
Net claims and claim expense ratio:
Current accident year 26.6 % 56.2 % 40.3 % 23.6 % 51.4 % 38.9 %
Prior accident years (13.0) % (1.8) % (7.8) % (10.8) % 1.3 % (4.1) %
Calendar year 13.6 % 54.4 % 32.5 % 12.8 % 52.7 % 34.8 %
Acquisition expense ratio 11.9 % 28.9 % 19.7 % 12.9 % 28.2 % 21.2 %
Operating expense ratio 11.6 % 3.1 % 7.7 % 14.1 % 2.6 % 7.8 %
Combined ratio 37.1 % 86.4 % 59.9 % 39.8 % 83.5 % 63.8 %
Underwriting and Reserves
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Gross Premiums Written
Three months ended Q/Q Change Q/Q % Change Six months ended Y/Y Change Y/Y % Change
June 30,<br>2023 June 30,<br>2022 June 30,<br>2023 June 30,<br>2022
Property Segment
Catastrophe $ 972,647 $ 803,552 21.0 % $ 1,927,634 $ 1,666,549 15.7 %
Catastrophe - gross reinstatement premiums 29,192 (219) 29,411 (13429.7) % 2,800 22,875 (20,075) (87.8) %
Total catastrophe gross premiums written 1,001,839 803,333 198,506 24.7 % 1,930,434 1,689,424 241,010 14.3 %
Other property 400,944 413,035 (12,091) (2.9) % 778,795 868,447 (89,652) (10.3) %
Other property - gross reinstatement premiums (177) 1,953 (2,130) (109.1) % (2,424) 3,958 (6,382) (161.2) %
Total other property gross premiums written 400,767 414,988 (14,221) (3.4) % 776,371 872,405 (96,034) (11.0) %
Property segment gross premiums written $ 1,402,606 $ 1,218,321 15.1 % $ 2,706,805 $ 2,561,829 5.7 %
Casualty and Specialty Segment
General casualty (1) $ 375,945 $ 322,733 16.5 % $ 843,837 $ 802,875 5.1 %
Professional liability (2) 308,284 448,801 (140,517) (31.3) % 690,537 998,520 (307,983) (30.8) %
Credit (3) 191,985 219,480 (27,495) (12.5) % 423,661 478,584 (54,923) (11.5) %
Other specialty (4) 372,801 255,304 117,497 46.0 % 777,042 565,795 211,247 37.3 %
Casualty and Specialty segment gross premiums written $ 1,249,015 $ 1,246,318 0.2 % $ 2,735,077 $ 2,845,774 (3.9) %

All values are in US Dollars.

(1) Includes automobile liability, casualty clash, employer’s liability, umbrella or excess casualty, workers’ compensation and general liability.
(2) Includes directors and officers, medical malpractice, and professional indemnity.
(3) Includes financial guaranty, mortgage guaranty, political risk, surety and trade credit.
(4) Includes accident and health, agriculture, aviation, cyber, energy, marine, satellite and terrorism. Lines of business such as regional multi-line and whole account may have characteristics of various other classes of business, and are allocated accordingly.
Underwriting and Reserves
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Net Premiums Written
Three months ended Q/Q Change Q/Q % Change Six months ended Y/Y Change Y/Y % Change
June 30,<br>2023 June 30,<br>2022 June 30,<br>2023 June 30,<br>2022
Property Segment
Catastrophe $ 741,829 $ 497,531 49.1 % $ 1,581,955 $ 1,078,123 46.7 %
Catastrophe - net reinstatement premiums 30,107 973 29,134 2994.2 % 6,468 22,168 (15,700) (70.8) %
Total catastrophe net premiums written 771,936 498,504 273,432 54.9 % 1,588,423 1,100,291 488,132 44.4 %
Other property 372,579 388,013 (15,434) (4.0) % 579,826 674,122 (94,296) (14.0) %
Other property - net reinstatement premiums 140 1,458 (1,318) (90.4) % (3,765) 3,728 (7,493) (201.0) %
Total other property net premiums written 372,719 389,471 (16,752) (4.3) % 576,061 677,850 (101,789) (15.0) %
Property segment net premiums written $ 1,144,655 $ 887,975 28.9 % $ 2,164,484 $ 1,778,141 21.7 %
Casualty and Specialty Segment
General casualty (1) $ 339,080 $ 268,076 26.5 % $ 761,500 $ 672,352 13.3 %
Professional liability (2) 267,664 355,072 (87,408) (24.6) % 578,576 787,228 (208,652) (26.5) %
Credit (3) 129,564 152,696 (23,132) (15.1) % 295,108 333,126 (38,018) (11.4) %
Other specialty (4) 314,840 199,797 115,043 57.6 % 659,838 457,986 201,852 44.1 %
Casualty and Specialty segment net premiums written $ 1,051,148 $ 975,641 7.7 % $ 2,295,022 2,250,692 2.0 %

All values are in US Dollars.

(1) Includes automobile liability, casualty clash, employer’s liability, umbrella or excess casualty, workers’ compensation and general liability.
(2) Includes directors and officers, medical malpractice, and professional indemnity.
(3) Includes financial guaranty, mortgage guaranty, political risk, surety and trade credit.
(4) Includes accident and health, agriculture, aviation, cyber, energy, marine, satellite and terrorism. Lines of business such as regional multi-line and whole account may have characteristics of various other classes of business, and are allocated accordingly.
Underwriting and Reserves
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Net Premiums Earned
Three months ended Q/Q Change Q/Q % Change Six months ended Y/Y Change Y/Y % Change
June 30,<br>2023 June 30,<br>2022 June 30,<br>2023 June 30,<br>2022
Property Segment
Catastrophe $ 393,626 $ 278,797 41.2 % $ 770,018 $ 536,599 43.5 %
Catastrophe - net reinstatement premiums 30,107 973 29,134 2994.2 % 6,468 22,168 (15,700) (70.8) %
Total catastrophe net premiums earned 423,733 279,770 143,963 51.5 % 776,486 558,767 217,719 39.0 %
Other property 334,813 342,354 (7,541) (2.2) % 673,385 679,677 (6,292) (0.9) %
Other property - net reinstatement premiums 140 1,458 (1,318) (90.4) % (3,765) 3,728 (7,493) (201.0) %
Total other property net premiums earned 334,953 343,812 (8,859) (2.6) % 669,620 683,405 (13,785) (2.0) %
Property segment net premiums earned $ 758,686 $ 623,582 21.7 % $ 1,446,106 $ 1,242,172 16.4 %
Casualty and Specialty Segment
General casualty (1) $ 352,273 $ 285,526 23.4 % $ 678,901 $ 576,281 17.8 %
Professional liability (2) 282,965 272,403 10,562 3.9 % 575,796 583,640 (7,844) (1.3) %
Credit (3) 120,762 86,652 34,110 39.4 % 248,093 170,491 77,602 45.5 %
Other specialty (4) 270,576 188,221 82,355 43.8 % 516,916 370,224 146,692 39.6 %
Casualty and Specialty segment net premiums earned $ 1,026,576 $ 832,802 23.3 % $ 2,019,706 $ 1,700,636 18.8 %

All values are in US Dollars.

(1) Includes automobile liability, casualty clash, employer’s liability, umbrella or excess casualty, workers’ compensation and general liability.
(2) Includes directors and officers, medical malpractice, and professional indemnity.
(3) Includes financial guaranty, mortgage guaranty, political risk, surety and trade credit.
(4) Includes accident and health, agriculture, aviation, cyber, energy, marine, satellite and terrorism. Lines of business such as regional multi-line and whole account may have characteristics of various other classes of business, and are allocated accordingly.
Underwriting and Reserves
--- --- --- --- --- --- --- --- ---
Reserves for Claims and Claim Expenses
Case Reserves Additional Case Reserves IBNR Total
June 30, 2023
Property $ 2,011,450 $ 2,074,234 $ 2,847,946 $ 6,933,630
Casualty and Specialty 1,967,639 204,511 7,032,348 9,204,498
Total $ 3,979,089 $ 2,278,745 $ 9,880,294 $ 16,138,128
December 31, 2022
Property $ 1,956,688 $ 2,008,891 $ 3,570,253 $ 7,535,832
Casualty and Specialty 1,864,365 167,993 6,324,383 8,356,741
Total $ 3,821,053 $ 2,176,884 $ 9,894,636 $ 15,892,573
Underwriting and Reserves
--- --- --- --- --- --- --- --- --- --- --- --- ---
Paid to Incurred Analysis
Three months ended June 30, 2023 Three months ended June 30, 2022
Gross Recoveries Net Gross Recoveries Net
Reserve for claims and claim expenses, beginning of period $ 15,996,826 $ 4,706,671 $ 11,290,155 $ 13,510,304 $ 4,319,490 $ 9,190,814
Incurred claims and claim expenses
Current year 1,109,621 146,312 963,309 883,768 134,572 749,196
Prior years (19,965) 12,133 (32,098) (84,550) (41,593) (42,957)
Total incurred claims and claim expenses 1,089,656 158,445 931,211 799,218 92,979 706,239
Paid claims and claim expenses
Current year 73,499 7,559 65,940 25,808 2,474 23,334
Prior years 889,199 173,383 715,816 690,613 169,439 521,174
Total paid claims and claim expenses 962,698 180,942 781,756 716,421 171,913 544,508
Foreign exchange (1) 14,344 5,177 9,167 (150,295) (34,097) (116,198)
Reserve for claims and claim expenses, end of period $ 16,138,128 $ 4,689,351 $ 11,448,777 $ 13,442,806 $ 4,206,459 $ 9,236,347
Six months ended June 30, 2023 Six months ended June 30, 2022
Gross Recoveries Net Gross Recoveries Net
Reserve for claims and claim expenses, beginning of period $ 15,892,573 $ 4,710,925 $ 11,181,648 $ 13,294,630 $ 4,268,669 $ 9,025,961
Incurred claims and claim expenses
Current year 2,176,749 307,488 1,869,261 1,903,364 294,602 1,608,762
Prior years (127,389) 9,461 (136,850) (86,591) (25,801) (60,790)
Total incurred claims and claim expenses 2,049,360 316,949 1,732,411 1,816,773 268,801 1,547,972
Paid claims and claim expenses
Current year 104,481 11,572 92,909 45,584 4,460 41,124
Prior years 1,747,052 340,368 1,406,684 1,421,938 291,959 1,129,979
Total paid claims and claim expenses 1,851,533 351,940 1,499,593 1,467,522 296,419 1,171,103
Foreign exchange (1) 47,728 13,417 34,311 (201,075) (34,592) (166,483)
Reserve for claims and claim expenses, end of period $ 16,138,128 $ 4,689,351 $ 11,448,777 $ 13,442,806 $ 4,206,459 $ 9,236,347

(1)    Reflects the impact of the foreign exchange revaluation of the reserve for claims and claim expenses, net of reinsurance recoverable, denominated in non-U.S. dollars as at the balance sheet date.

Managed Joint Ventures and Fee Income
Fee Income

The table below reflects the total fee income earned through third-party capital management as well as various joint ventures and certain structured retrocession agreements to which the Company is a party. Joint ventures include DaVinciRe Holdings Ltd. (“DaVinci”), Top Layer Reinsurance Ltd., Vermeer Reinsurance Ltd. (“Vermeer”), Fontana Holdings L.P. and its subsidiaries (“Fontana”), and certain entities investing in Langhorne Holdings LLC. Managed funds include RenaissanceRe Upsilon Fund Ltd. ("Upsilon Fund") and RenaissanceRe Medici Fund Ltd. (“Medici”). Structured reinsurance products and other include certain reinsurance contracts which transfer risk to capital.

Three months ended Six months ended
June 30,<br>2023 June 30,<br>2022 June 30,<br>2023 June 30,<br>2022
Management fee income
Joint ventures $ 30,313 $ 17,703 $ 58,311 $ 31,098
Structured reinsurance products and other 6,985 6,649 13,623 13,873
Managed funds 6,141 6,355 12,410 12,958
Total management fee income 43,439 30,707 84,344 57,929
Performance fee income (loss)
Joint ventures 13,132 1,037 14,887 934
Structured reinsurance products and other (197) 2,486 1,558 3,419
Managed funds 307 25 664 322
Total performance fee income (loss) (1) 13,242 3,548 17,109 4,675
Total fee income $ 56,681 $ 34,255 $ 101,453 $ 62,604

(1)Performance fees are based on the performance of the individual vehicles or products, and may be negative in a particular period if, for example, large losses occur, which can potentially result in no performance fees or the reversal of previously accrued performance fees.

The table below shows how the total fee income described above contributes to the Company’s consolidated results of operations.

Three months ended Six months ended
Fee income contributing to: June 30,<br>2023 June 30,<br>2022 June 30,<br>2023 June 30,<br>2022
Underwriting income (loss) (1) $ 8,184 $ 12,751 $ 21,325 $ 24,912
Earnings from equity method investments (2) (417) 27 (558) 50
Redeemable noncontrolling interests (3) 48,914 21,477 80,686 37,642
Total fee income $ 56,681 $ 34,255 $ 101,453 $ 62,604

(1)The fees recorded through underwriting income (loss) are recorded as a reduction (increase) to operating expenses or acquisition expenses.

(2)The fees reflected as earnings from equity method investments are recorded through equity in earnings (losses) of other ventures.

(3)The fee income reflected as redeemable noncontrolling interest is recorded through net (income) loss attributable to redeemable noncontrolling interest. A positive number represents the fee income earned from third-party investors in the Company’s Consolidated Managed Joint Ventures (as defined herein). Conversely, a negative number represents a reduction in fee income earned from third-party investors in the Company’s Consolidated Managed Joint Ventures.

Managed Joint Ventures and Fee Income
Fee Income - Five Quarter Trend

The table below reflects the total fee income earned through third-party capital management as well as various joint ventures and certain structured retrocession agreements to which the Company is a party. Joint ventures include DaVinci, Top Layer Reinsurance Ltd., Vermeer, Fontana, and certain entities investing in Langhorne Holdings LLC. Managed funds include Upsilon Fund and Medici. Structured reinsurance products and other include certain reinsurance contracts which transfer risk to capital.

Three months ended
June 30,<br>2023 March 31,<br>2023 December 31,<br>2022 September 30,<br>2022 June 30,<br>2022
Management fee income
Joint ventures $ 30,313 $ 27,998 $ 13,377 $ 12,271 $ 17,703
Structured reinsurance products and other 6,985 6,638 6,342 6,377 6,649
Managed funds 6,141 6,269 6,265 6,341 6,355
Total management fee income 43,439 40,905 25,984 24,989 30,707
Performance fee income (loss)
Joint ventures 13,132 1,755 1,505 1,915 1,037
Structured reinsurance products and other (197) 1,755 2,391 (1,360) 2,486
Managed funds 307 357 467 184 25
Total performance fee income (loss) (1) 13,242 3,867 4,363 739 3,548
Total fee income $ 56,681 $ 44,772 $ 30,347 $ 25,728 $ 34,255

(1)Performance fees are based on the performance of the individual vehicles or products, and may be negative in a particular period if, for example, large losses occur, which can potentially result in no performance fees or the reversal of previously accrued performance fees.

The table below shows how the total fee income described above contributes to the Company’s consolidated results of operations.

Three months ended
Fee income contributing to: June 30,<br>2023 March 31,<br>2023 December 31,<br>2022 September 30,<br>2022 June 30,<br>2022
Underwriting income (loss) (1) $ 8,184 $ 13,141 $ 13,668 $ 11,366 $ 12,751
Earnings from equity method investments (2) (417) (141) 25 19 27
Redeemable noncontrolling interests (3) 48,914 31,772 16,654 14,343 21,477
Total fee income $ 56,681 $ 44,772 $ 30,347 $ 25,728 $ 34,255

(1)The fees recorded through underwriting income (loss) are recorded as a reduction (increase) to operating expenses or acquisition expenses.

(2)The fees reflected as earnings from equity method investments are recorded through equity in earnings (losses) of other ventures.

(3)The fee income reflected as redeemable noncontrolling interest is recorded through net (income) loss attributable to redeemable noncontrolling interest. A positive number represents the fee income earned from third-party investors in the Company’s Consolidated Managed Joint Ventures (as defined herein). Conversely, a negative number represents a reduction in fee income earned from third-party investors in the Company’s Consolidated Managed Joint Ventures.

Managed Joint Ventures and Fee Income
Noncontrolling Interests

The Company consolidates the results of certain of its joint ventures and managed capital vehicles, namely, DaVinci, Medici, Vermeer and Fontana (collectively, the “Consolidated Managed Joint Ventures”), on its consolidated balance sheets and statements of operations. Redeemable noncontrolling interests on the Company’s consolidated balance sheets represents the portion of the net assets of the Consolidated Managed Joint Ventures attributable to third-party investors in these Consolidated Managed Joint Ventures. Net (income) loss attributable to redeemable noncontrolling interests on the Company’s consolidated statements of operations represents the portion of the (income) loss associated with the Consolidated Managed Joint Ventures included on the Company’s consolidated statements of operations that is allocated to third-party investors in these Consolidated Managed Joint Ventures.

A summary of the redeemable noncontrolling interests on the Company’s consolidated statements of operations is set forth below:

Three months ended Six months ended
June 30,<br>2023 June 30,<br>2022 June 30,<br>2023 June 30,<br>2022
Redeemable noncontrolling interests - DaVinci $ (59,527) $ (58,822) $ (225,609) $ (33,499)
Redeemable noncontrolling interests - Medici (62,190) 26,887 (107,259) 32,174
Redeemable noncontrolling interests - Vermeer (52,163) (22,937) (99,568) (41,635)
Redeemable noncontrolling interests - Fontana (1,027) 5,541 (9,855) 5,541
Net (income) loss attributable to redeemable noncontrolling interests (1) $ (174,907) $ (49,331) $ (442,291) $ (37,419) Three months ended Six months ended
--- --- --- --- --- --- --- ---
June 30,<br>2023 June 30,<br>2022 June 30,<br>2023 June 30,<br>2022
Operating (income) loss attributable to redeemable noncontrolling interests (2) $ (234,058) $ (123,828) $ (475,996) $ (203,926)
Non-operating (income) loss attributable to redeemable noncontrolling interests 59,151 74,497 33,705 166,507
Net (income) loss attributable to redeemable noncontrolling interests (1) $ (174,907) $ (49,331) $ (442,291) $ (37,419)

(1)A negative number in the tables above represents net income earned by the Consolidated Managed Joint Ventures allocated to third-party investors. Conversely, a positive number represents net losses incurred by the Consolidated Managed Joint Ventures allocated to third-party investors.

(2)See “Comments on Non-GAAP Financial Measures” for a reconciliation of non-GAAP financial measures.

Managed Joint Ventures and Fee Income
Noncontrolling Interests

A summary of the redeemable noncontrolling interests on the Company’s consolidated balance sheet is set forth below:

June 30,<br>2023 December 31,<br>2022
Redeemable noncontrolling interests - DaVinci $ 2,267,448 $ 1,740,300
Redeemable noncontrolling interests - Medici 1,540,520 1,036,218
Redeemable noncontrolling interests - Vermeer 1,590,408 1,490,840
Redeemable noncontrolling interests - Fontana 277,886 268,031
Redeemable noncontrolling interests $ 5,676,262 $ 4,535,389

A summary of the redeemable noncontrolling economic ownership of third parties in the Company’s Consolidated Managed Joint Ventures is set forth below:

June 30,<br>2023 December 31,<br>2022
DaVinci 73.7 % 69.1 %
Medici 88.9 % 87.2 %
Vermeer 100.0 % 100.0 %
Fontana 68.4 % 68.4 %
Managed Joint Ventures and Fee Income
--- --- --- --- ---
DaVinciRe Holdings Ltd. and Subsidiary Consolidated Statements of Operations
Three months ended Six months ended
June 30,<br>2023 June 30,<br>2022 June 30,<br>2023 June 30,<br>2022
Revenues
Gross premiums written $ 491,657 $ 307,002 $ 1,020,436 $ 732,317
Net premiums written $ 436,483 $ 275,753 $ 955,652 $ 674,942
Decrease (increase) in unearned premiums (184,428) (101,648) (495,710) (334,806)
Net premiums earned 252,055 174,105 459,942 340,136
Net investment income 48,975 17,015 92,873 25,983
Net foreign exchange gains (losses) 1,024 585 (483) 997
Net realized and unrealized gains (losses) on investments (57,497) (76,020) (19,118) (193,671)
Total revenues 244,557 115,685 533,214 173,445
Expenses
Net claims and claim expenses incurred 85,304 (17,016) 94,995 40,843
Acquisition expenses 47,842 22,673 74,176 42,255
Operational and corporate expenses 28,795 19,438 55,598 34,504
Interest expense 1,858 1,858 3,716 3,716
Total expenses 163,799 26,953 228,485 121,318
Income (loss) before taxes 80,758 88,732 304,729 52,127
Income tax benefit (expense) (67) — (1,656) —
Net income (loss) available (attributable) to DaVinci common shareholders $ 80,691 $ 88,732 $ 303,073 $ 52,127
Net claims and claim expenses incurred - current accident year $ 87,254 $ 22,533 $ 134,253 $ 90,668
Net claims and claim expenses incurred - prior accident years (1,950) (39,549) (39,258) (49,825)
Net claims and claim expenses incurred - total $ 85,304 $ (17,016) $ 94,995 $ 40,843
Net claims and claim expense ratio - current accident year 34.6 % 12.9 % 29.2 % 26.7 %
Net claims and claim expense ratio - prior accident years (0.8) % (22.7) % (8.5) % (14.7) %
Net claims and claim expense ratio - calendar year 33.8 % (9.8) % 20.7 % 12.0 %
Underwriting expense ratio 30.4 % 24.2 % 28.2 % 22.6 %
Combined ratio 64.2 % 14.4 % 48.9 % 34.6 %
Investments
--- --- --- --- ---
Total Investment Result
Managed (1) Retained (2)
Three months ended Three months ended
June 30,<br>2023 June 30,<br>2022 June 30,<br>2023 June 30,<br>2022
Fixed maturity investments trading $ 169,739 $ 76,547 $ 133,362 $ 63,294
Short term investments 50,231 4,397 25,219 1,461
Equity investments 2,766 4,516 2,766 4,516
Other investments
Catastrophe bonds 49,522 20,235 6,470 2,986
Other 20,820 6,894 20,820 6,894
Cash and cash equivalents 4,585 (95) 4,350 (99)
297,663 112,494 192,987 79,052
Investment expenses (5,001) (5,283) (3,672) (4,069)
Net investment income $ 292,662 $ 107,211 $ 189,315 $ 74,983
Net investment income return - annualized 5.3 % 2.1 % 4.9 % 2.2 %
Net realized gains (losses) on fixed maturity investments trading $ (74,212) $ (287,154) $ (66,800) $ (240,803)
Net unrealized gains (losses) on fixed maturity investments trading (139,793) (149,820) (102,107) (138,094)
Net realized and unrealized gains (losses) on investments-related derivatives (65,051) (66,078) (63,079) (67,359)
Net realized gains (losses) on equity investments (18,755) 35,592 (18,755) 35,592
Net unrealized gains (losses) on equity investments 20,627 (127,104) 20,634 (127,059)
Net realized and unrealized gains (losses) on other investments - catastrophe bonds 38,186 (24,660) 4,207 (3,465)
Net realized and unrealized gains (losses) on other investments - other 16,217 (34,883) 16,217 (34,883)
Net realized and unrealized gains (losses) on investments (222,781) (654,107) (209,683) (576,071)
Total investment result $ 69,881 $ (546,896) $ (20,368) $ (501,088)
Average invested assets $ 24,373,121 $ 20,724,513 $ 16,195,136 $ 13,941,090
Total investment return - annualized 1.6 % (10.1) % (0.4) % (13.6) %

(1)“Managed” represents the consolidated total investment result, which is comprised of net investment income and net realized and unrealized gains (losses) on investments as presented on the Company’s consolidated statements of operations.

(2)“Retained” represents the consolidated total investment result, less the portions attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds. See “Comments on Non-GAAP Financial Measures” for a reconciliation of non-GAAP financial measures.

Investments
Total Investment Result
Managed (1) Retained (2)
Six months ended Six months ended
June 30,<br>2023 June 30,<br>2022 June 30,<br>2023 June 30,<br>2022
Fixed maturity investments trading $ 325,239 $ 138,964 $ 255,255 $ 118,968
Short term investments 83,181 5,533 37,675 2,103
Equity investments 6,165 7,270 6,165 7,270
Other investments
Catastrophe bonds 88,353 37,595 12,499 5,672
Other 45,391 12,446 45,391 12,446
Cash and cash equivalents 8,849 (136) 8,362 (124)
557,178 201,672 365,347 146,335
Investment expenses (10,138) (10,770) (8,023) (8,677)
Net investment income $ 547,040 $ 190,902 $ 357,324 $ 137,658
Net investment income return - annualized 5.1 % 1.8 % 4.7 % 2.0 %
Net realized gains (losses) on fixed maturity investments trading $ (178,977) $ (408,306) $ (154,207) $ (347,792)
Net unrealized gains (losses) on fixed maturity investments trading 172,233 (613,997) 156,988 (535,520)
Net realized and unrealized gains (losses) on investments-related derivatives (52,889) (106,366) (48,600) (107,095)
Net realized gains (losses) on equity investments (27,493) 35,572 (27,493) 35,572
Net unrealized gains (losses) on equity investments 59,778 (175,773) 59,786 (175,779)
Net realized and unrealized gains (losses) on other investments - catastrophe bonds 62,312 (32,921) 7,684 (4,747)
Net realized and unrealized gains (losses) on other investments - other 21,706 (25,333) 21,706 (25,333)
Net realized and unrealized gains (losses) on investments 56,670 (1,327,124) 15,864 (1,160,694)
Total investment result $ 603,710 $ (1,136,222) $ 373,188 $ (1,023,036)
Average invested assets $ 23,655,559 $ 20,963,895 $ 15,731,076 $ 14,166,678
Total investment return - annualized 5.5 % (10.5) % 4.9 % (13.9) %

(1)“Managed” represents the consolidated total investment result, which is comprised of net investment income and net realized and unrealized gains (losses) on investments as presented on the Company’s consolidated statements of operations.

(2)“Retained” represents the consolidated total investment result, less the portions attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds. See “Comments on Non-GAAP Financial Measures” for a reconciliation of non-GAAP financial measures.

Investments
Investments Composition June 30, 2023 December 31, 2022
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Managed (1) Retained (2) Managed (1) Retained (2)
Type of Investment Fair value Unrealized gain (loss) Fair value Unrealized gain (loss) Fair value Unrealized gain (loss) Fair value Unrealized gain (loss)
Fixed maturity investments trading, at fair value
U.S. treasuries $ 8,592,242 $ (148,134) $ 6,934,936 $ (128,713) $ 7,180,129 $ (186,451) $ 5,772,302 $ (168,146)
Corporate (3) 4,371,407 (230,807) 3,350,977 (210,102) 4,390,568 (331,461) 3,392,129 (300,245)
Other (4) 2,924,915 (131,177) 2,330,539 (103,299) 2,780,705 (169,237) 2,339,897 (140,789)
Total fixed maturity investments trading, at fair value 15,888,564 (510,118) 12,616,452 (442,114) 14,351,402 (687,149) 11,504,328 (609,180)
Short term investments, at fair value 6,373,969 (988) 2,833,470 (382) 4,669,272 (2,309) 1,131,408 (817)
Equity investments, at fair value 93,058 49,237 92,862 49,229 625,058 (10,590) 624,870 (10,600)
Other investments, at fair value
Catastrophe bonds 1,679,184 (117,931) 208,062 (41,493) 1,241,468 (182,798) 209,114 (51,841)
Fund investments 1,241,347 145,353 1,241,347 145,353 1,086,706 111,423 1,086,706 111,423
Term loans 100,000 — 100,000 — 100,000 — 100,000 —
Direct private equity investments 71,155 (27,109) 71,155 (27,109) 66,780 (31,484) 66,780 (31,484)
Total other investments, at fair value 3,091,686 313 1,620,564 76,751 2,494,954 (102,859) 1,462,600 28,098
Investments in other ventures, under equity method 89,505 — 89,505 — 79,750 — 79,750 —
Total investments $ 25,536,782 $ (461,556) $ 17,252,853 $ (316,516) $ 22,220,436 $ (802,907) $ 14,802,956 $ (592,499)
June 30, 2023 December 31, 2022
--- --- --- --- --- --- --- --- --- --- ---
Managed (1) Retained (2) Managed (1) Retained (2)
Weighted average yield to maturity of investments (5) 6.1 % 5.7 % 5.7 % 5.6 %
Average duration of investments, in years (5) 2.4 3.1 2.5 3.2
Unrealized gain (loss) on total fixed maturity investments trading, at fair value, per common share (6) $ (8.64) $ (13.93)

(1)“Managed” represents the consolidated total investments as presented on the Company’s consolidated balance sheets.

(2)“Retained” represents the consolidated total investments, less the portions attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds. See “Comments on Non-GAAP Financial Measures” for a reconciliation of non-GAAP financial measures.

(3)Corporate fixed maturity investments include non-U.S. government-backed corporate fixed maturity investments.

(4)Includes agencies, non-U.S. government, residential mortgage-backed, commercial mortgage-backed and asset-backed securities within the Company's fixed maturity investments trading portfolio.

(5)Excludes equity investments, at fair value, direct private equity investments, private equity funds and investments in other ventures, under equity method as these investments have no final maturity, yield to maturity or duration.

(6)Represents the impact to book value per common share of the unrealized gain (loss) on total fixed maturity investments trading, at fair value. See "Comments on Non-GAAP Financial Measures" for reconciliation of non-GAAP financial measures.

Investments
Managed Investments - Credit Rating (1)
Credit Rating (2) Investments not subject to credit ratings
June 30, 2023 Fair value AAA AA A BBB Non-<br>Investment<br>grade Not rated
Fixed maturity investments trading, at fair value
U.S. treasuries $ 8,592,242 $ — $ 8,592,242 $ — $ — $ — $ — $ —
Corporate (3) 4,371,407 201,216 296,107 1,336,821 1,520,910 986,952 29,401 —
Agencies 476,476 31,370 445,106 — — — — —
Non-U.S. government 401,743 232,170 167,220 2,353 — — — —
Residential mortgage-backed 788,256 76,673 541,368 2,922 7,955 89,244 70,094 —
Commercial mortgage-backed 209,661 160,222 33,210 901 7,706 4,086 3,536 —
Asset-backed 1,048,779 743,078 208,377 69,022 22,484 4,714 1,104 —
Total fixed maturity investments trading, at fair value 15,888,564 1,444,729 10,283,630 1,412,019 1,559,055 1,084,996 104,135 —
Short term investments, at fair value 6,373,969 6,097,216 267,371 2,499 5,676 1,207 — —
Equity investments, at fair value 93,058 — — — — — — 93,058
Other investments, at fair value
Catastrophe bonds 1,679,184 — — — — 1,679,184 — —
Fund investments:
Private credit funds 876,010 — — — — — — 876,010
Private equity funds 365,337 — — — — — — 365,337
Term loans 100,000 — — 100,000 — — — —
Direct private equity investments 71,155 — — — — — — 71,155
Total other investments, at fair value 3,091,686 — — 100,000 — 1,679,184 — 1,312,502
Investments in other ventures, under equity method 89,505 — — — — — — 89,505
Total investments $ 25,536,782 $ 7,541,945 $ 10,551,001 $ 1,514,518 $ 1,564,731 $ 2,765,387 $ 104,135 $ 1,495,065
100.0 % 29.6 % 41.3 % 5.9 % 6.1 % 10.8 % 0.4 % 5.9 %

(1)“Managed” represents the consolidated total investments as presented on the Company’s consolidated balance sheets.

(2)The credit ratings included in this table are those assigned by Standard & Poor’s Corporation (“S&P”). When ratings provided by S&P were not available, ratings from other recognized rating agencies were used. The Company has grouped short term investments with an A-1+ and A-1 short term issue credit rating as AAA, short term investments with an A-2 short term issue credit rating as AA and short term investments with an A-3 short term issue credit rating as A.

(3)Corporate fixed maturity investments include non-U.S. government-backed corporate fixed maturity investments.

Investments
Retained Investments - Credit Rating (1)
Credit Rating (2) Investments not subject to credit ratings
June 30, 2023 Fair value AAA AA A BBB Non-<br>Investment<br>grade Not rated
Fixed maturity investments trading, at fair value
U.S. treasuries $ 6,934,936 $ — $ 6,934,936 $ — $ — $ — $ — $ —
Corporate (3) 3,350,977 148,359 229,014 1,017,390 1,080,319 851,327 24,568 —
Agencies 349,970 26,729 323,241 — — — — —
Non-U.S. government 327,012 195,534 129,125 2,353 — — — —
Residential mortgage-backed 557,539 55,349 331,975 2,922 7,955 89,244 70,094 —
Commercial mortgage-backed 138,404 94,425 27,750 901 7,706 4,086 3,536 —
Asset-backed 957,614 653,701 207,545 68,068 22,484 4,714 1,102 —
Total fixed maturity investments trading, at fair value 12,616,452 1,174,097 8,183,586 1,091,634 1,118,464 949,371 99,300 —
Short term investments, at fair value 2,833,470 2,688,831 137,486 655 5,512 986 — —
Equity investments, at fair value 92,862 — — — — — — 92,862
Other investments, at fair value
Catastrophe bonds 208,062 — — — — 208,062 — —
Fund investments:
Private credit funds 876,010 — — — — — — 876,010
Private equity funds 365,337 — — — — — — 365,337
Term loans 100,000 — — 100,000 — — — —
Direct private equity investments 71,155 — — — — — — 71,155
Total other investments, at fair value 1,620,564 — — 100,000 — 208,062 — 1,312,502
Investments in other ventures, under equity method 89,505 — — — — — — 89,505
Total investments $ 17,252,853 $ 3,862,928 $ 8,321,072 $ 1,192,289 $ 1,123,976 $ 1,158,419 $ 99,300 $ 1,494,869
100.0 % 22.4 % 48.2 % 6.9 % 6.5 % 6.7 % 0.6 % 8.7 %

(1)“Retained” represents the consolidated total investments, less the portions attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds. See “Comments on Non-GAAP Financial Measures” for a reconciliation of non-GAAP financial measures.

(2)The credit ratings included in this table are those assigned by Standard & Poor’s Corporation (“S&P”). When ratings provided by S&P were not available, ratings from other recognized rating agencies were used. The Company has grouped short term investments with an A-1+ and A-1 short term issue credit rating as AAA, short term investments with an A-2 short term issue credit rating as AA and short term investments with an A-3 short term issue credit rating as A.

(3)Corporate fixed maturity investments include non-U.S. government-backed corporate fixed maturity investments.

Other Items
Earnings per Share
Three months ended Six months ended
(common shares in thousands) June 30,<br>2023 June 30,<br>2022 June 30,<br>2023 June 30,<br>2022
Numerator:
Net income (loss) available (attributable) to RenaissanceRe common shareholders $ 191,025 $ (324,913) $ 755,087 $ (719,326)
Amount allocated to participating common shareholders (1) (2,889) (272) (11,650) (507)
Net income (loss) allocated to RenaissanceRe common shareholders $ 188,136 $ (325,185) $ 743,437 $ (719,833)
Denominator:
Denominator for basic income (loss) per RenaissanceRe common share - weighted average common shares (2) 45,898 43,170 44,387 43,264
Per common share equivalents of non-vested shares (2) 92 — 111 —
Denominator for diluted income (loss) per RenaissanceRe common share - adjusted weighted average common shares and assumed conversions (2) 45,990 43,170 44,498 43,264
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - basic $ 4.10 $ (7.53) $ 16.75 $ (16.64)
Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted $ 4.09 $ (7.53) $ 16.71 $ (16.64)

(1)Represents earnings and dividends attributable to holders of unvested shares issued pursuant to the Company’s stock compensation plans.

(2)In periods for which the Company has net loss allocated to RenaissanceRe common shareholders, the denominator used in calculating net loss attributable to RenaissanceRe common shareholders per common share - basic is also used in calculating net loss attributable to RenaissanceRe common shareholders per common share - diluted.

Comments on Non-GAAP Financial Measures

In addition to the GAAP financial measures set forth in this Financial Supplement, the Company has included certain non-GAAP financial measures within the meaning of Regulation G. The Company has provided certain of these financial measures in previous investor communications and the Company’s management believes that such measures are important to investors and other interested persons, and that investors and such other persons benefit from having a consistent basis for comparison between quarters and for comparison with other companies within or outside the industry. These measures may not, however, be comparable to similarly titled measures used by companies within or outside of the insurance industry. Investors are cautioned not to place undue reliance on these non-GAAP measures in assessing the Company’s overall financial performance.

Operating Income (Loss) Available (Attributable) to RenaissanceRe Common Shareholders and Operating Return on Average Common Equity - Annualized

The Company uses “operating income (loss) available (attributable) to RenaissanceRe common shareholders” as a measure to evaluate the underlying fundamentals of its operations and believes it to be a useful measure of its corporate performance. “Operating income (loss) available (attributable) to RenaissanceRe common shareholders” as used herein differs from “net income (loss) available (attributable) to RenaissanceRe common shareholders,” which the Company believes is the most directly comparable GAAP measure, by the exclusion of (1) net realized and unrealized gains and losses on investments, excluding other investments - catastrophe bonds, (2) net foreign exchange gains and losses, (3) corporate expenses associated with the pending acquisition of Validus, (4) the income tax expense or benefit associated with these adjustments and (5) the portion of these adjustments attributable to the Company’s redeemable noncontrolling interests. The Company also uses “operating income (loss) available (attributable) to RenaissanceRe common shareholders” to calculate “operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted” and “operating return on average common equity - annualized.” The Company’s management believes that “operating income (loss) available (attributable) to RenaissanceRe common shareholders,” “operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted” and “operating return on average common equity - annualized” are useful to investors because they more accurately measure and predict the Company’s results of operations by removing the variability arising from the listed adjustments. The following table is a reconciliation of: (1) net income (loss) available (attributable) to RenaissanceRe common shareholders to “operating income (loss) available (attributable) to RenaissanceRe common shareholders”; (2) net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted to “operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted”; and (3) return on average common equity - annualized to “operating return on average common equity - annualized.”

| Comments on Non-GAAP Financial Measures | | --- || | Three months ended | | | Six months ended | | --- | --- | --- | --- | --- | | | June 30,<br>2023 | | | | June 30,<br>2022 | | | June 30,<br>2023 | | | June 30,<br>2022 | | | | Net income (loss) available (attributable) to RenaissanceRe common shareholders | $ | 191,025 | | | $ | (324,913) | | $ | 755,087 | | $ | (719,326) | | | Adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds | 260,967 | | | | 629,447 | | | 5,642 | | | 1,294,203 | | | | Adjustment for net foreign exchange losses (gains) | 13,488 | | | | 50,821 | | | 27,991 | | | 66,307 | | | | Adjustment for corporate expenses associated with the pending acquisition of Validus | 11,341 | | | | — | | | 11,341 | | | — | | | | Adjustment for income tax expense (benefit) (1) | (10,235) | | | | (42,726) | | | 1,087 | | | (84,600) | | | | Adjustment for net income (loss) attributable to redeemable noncontrolling interests (2) | (59,151) | | | | (74,497) | | | (33,705) | | | (166,507) | | | | Operating income (loss) available (attributable) to RenaissanceRe common shareholders | $ | 407,435 | | | $ | 238,132 | | $ | 767,443 | | $ | 390,077 | | | Net income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted | $ | 4.09 | | | $ | (7.53) | | $ | 16.71 | | $ | (16.64) | | | Adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds | 5.67 | | | | 14.58 | | | 0.13 | | | 29.91 | | | | Adjustment for net foreign exchange losses (gains) | 0.29 | | | | 1.18 | | | 0.63 | | | 1.53 | | | | Adjustment for corporate expenses associated with the pending acquisition of Validus | 0.25 | | | | — | | | 0.25 | | | — | | | | Adjustment for income tax expense (benefit) (1) | (0.22) | | | | (0.99) | | | 0.02 | | | (1.96) | | | | Adjustment for net income (loss) attributable to redeemable noncontrolling interests (2) | (1.29) | | | | (1.73) | | | (0.76) | | | (3.85) | | | | Operating income (loss) available (attributable) to RenaissanceRe common shareholders per common share - diluted | $ | 8.79 | | | $ | 5.51 | | $ | 16.98 | | $ | 8.99 | | | Return on average common equity - annualized | 13.5 | | % | | (25.1) | | % | 28.9 | | % | (26.6) | | % | | Adjustment for net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds | 18.4 | | % | | 48.7 | | % | 0.3 | | % | 47.8 | | % | | Adjustment for net foreign exchange losses (gains) | 1.0 | | % | | 3.9 | | % | 1.1 | | % | 2.5 | | % | | Adjustment for corporate expenses associated with the pending acquisition of Validus | 0.8 | | % | | — | | % | 0.4 | | % | — | | % | | Adjustment for income tax expense (benefit) (1) | (0.7) | | % | | (3.3) | | % | — | | % | (3.1) | | % | | Adjustment for net income (loss) attributable to redeemable noncontrolling interests (2) | (4.2) | | % | | (5.8) | | % | (1.3) | | % | (6.2) | | % | | Operating return on average common equity - annualized | 28.8 | | % | | 18.4 | | % | 29.4 | | % | 14.4 | | % |

(1)Represents the income tax (expense) benefit associated with the adjustments to net income (loss) available (attributable) to RenaissanceRe common shareholders. The income tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors.

(2)Represents the portion of the adjustments above that are attributable to the Company’s redeemable noncontrolling interests, including the income tax impact of those adjustments.

Comments on Non-GAAP Financial Measures

Tangible Book Value Per Common Share and Tangible Book Value Per Common Share Plus Accumulated Dividends

The Company has included in this Financial Supplement “tangible book value per common share” and “tangible book value per common share plus accumulated dividends.” “Tangible book value per common share” is defined as book value per common share excluding goodwill and intangible assets per share. “Tangible book value per common share plus accumulated dividends” is defined as book value per common share excluding goodwill and intangible assets per share, plus accumulated dividends. The Company’s management believes “tangible book value per common share” and “tangible book value per common share plus accumulated dividends” are useful to investors because they provide a more accurate measure of the realizable value of shareholder returns, excluding the impact of goodwill and intangible assets. The following table is a reconciliation of book value per common share to “tangible book value per common share” and “tangible book value per common share plus accumulated dividends.”

June 30,<br>2023 December 31,<br>2022
Book value per common share $ 129.98 $ 104.65
Adjustment for goodwill and other intangibles (1) (4.95) (5.84)
Tangible book value per common share 125.03 98.81
Adjustment for accumulated dividends 25.76 25.00
Tangible book value per common share plus accumulated dividends $ 150.79 $ 123.81
Year to date change in book value per common share 24.2 % (20.8) %
Year to date change in book value per common share plus change in accumulated dividends 24.9 % (19.7) %
Year to date change in tangible book value per common share plus change in accumulated dividends 27.3 % (20.6) %

(1)At June 30, 2023 and December 31, 2022, the adjustment for goodwill and other intangibles included $18.3 million and $17.8 million, respectively, of goodwill and other intangibles included in investments in other ventures, under equity method.

Comments on Non-GAAP Financial Measures

Retained Total Investment Result

The Company has included in this Financial Supplement “retained total investment result.” “Retained total investment result" is defined as the consolidated total investment result less the portions attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds. “Retained total investment result” differs from consolidated total investment result, which the Company believes is the most directly comparable GAAP measure, due to the exclusion of the portions of the consolidated total investment result attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds. The Company’s management believes “retained total investment result” is useful to investors because it provides a measure of the portion of the Company’s investment result that impacts net income (loss) available (attributable) to RenaissanceRe common shareholders. The following table is a reconciliation of consolidated total investment result to “retained total investment result.”

Three months ended June 30, 2023 Three months ended June 30, 2022
Managed (1) Adjustment (2) Retained (3) Managed (1) Adjustment (2) Retained (3)
Fixed maturity investments trading $ 169,739 $ (36,377) $ 133,362 $ 76,547 $ (13,253) $ 63,294
Short term investments 50,231 (25,012) 25,219 4,397 (2,936) 1,461
Equity investments 2,766 — 2,766 4,516 — 4,516
Other investments
Catastrophe bonds 49,522 (43,052) 6,470 20,235 (17,249) 2,986
Other 20,820 — 20,820 6,894 — 6,894
Cash and cash equivalents 4,585 (235) 4,350 (95) (4) (99)
297,663 (104,676) 192,987 112,494 (33,442) 79,052
Investment expenses (5,001) 1,329 (3,672) (5,283) 1,214 (4,069)
Net investment income $ 292,662 $ (103,347) $ 189,315 $ 107,211 $ (32,228) $ 74,983
Net investment income return - annualized 5.3 % (0.4) % 4.9 % 2.1 % 0.1 % 2.2 %
Net realized gains (losses) on fixed maturity investments trading $ (74,212) $ 7,412 $ (66,800) $ (287,154) $ 46,351 $ (240,803)
Net unrealized gains (losses) on fixed maturity investments trading (139,793) 37,686 (102,107) (149,820) 11,726 (138,094)
Net realized and unrealized gains (losses) on investments-related derivatives (65,051) 1,972 (63,079) (66,078) (1,281) (67,359)
Net realized gains (losses) on equity investments (18,755) — (18,755) 35,592 — 35,592
Net unrealized gains (losses) on equity investments 20,627 7 20,634 (127,104) 45 (127,059)
Net realized and unrealized gains (losses) on other investments - catastrophe bonds 38,186 (33,979) 4,207 (24,660) 21,195 (3,465)
Net realized and unrealized gains (losses) on other investments - other 16,217 — 16,217 (34,883) — (34,883)
Net realized and unrealized gains (losses) on investments (222,781) 13,098 (209,683) (654,107) 78,036 (576,071)
Total investment result $ 69,881 $ (90,249) $ (20,368) $ (546,896) $ 45,808 $ (501,088)
Average invested assets $ 24,373,121 $ (8,177,985) $ 16,195,136 $ 20,724,513 $ (6,783,423) $ 13,941,090
Total investment return - annualized 1.6 % (2.0) % (0.4) % (10.1) % (3.5) % (13.6) %

(1)“Managed” represents the consolidated total investment result, which is comprised of net investment income and net realized and unrealized gains (losses) on investments as presented on the Company’s consolidated statements of operations.

(2)Adjustment for the portions of the consolidated total investment result attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds.

(3)“Retained” represents the consolidated total investment result, less the portions attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds.

Comments on Non-GAAP Financial Measures

Retained Total Investment Result

Six months ended June 30, 2023 Six months ended June 30, 2022
Managed (1) Adjustment (2) Retained (3) Managed (1) Adjustment (2) Retained (3)
Fixed maturity investments trading $ 325,239 $ (69,984) $ 255,255 $ 138,964 $ (19,996) $ 118,968
Short term investments 83,181 (45,506) 37,675 5,533 (3,430) 2,103
Equity investments 6,165 — 6,165 7,270 — 7,270
Other investments
Catastrophe bonds 88,353 (75,854) 12,499 37,595 (31,923) 5,672
Other 45,391 — 45,391 12,446 — 12,446
Cash and cash equivalents 8,849 (487) 8,362 (136) 12 (124)
557,178 (191,831) 365,347 201,672 (55,337) 146,335
Investment expenses (10,138) 2,115 (8,023) (10,770) 2,093 (8,677)
Net investment income $ 547,040 $ (189,716) $ 357,324 $ 190,902 $ (53,244) $ 137,658
Net investment income return - annualized 5.1 % (0.4) % 4.7 % 1.8 % 0.2 % 2.0 %
Net realized gains (losses) on fixed maturity investments trading (178,977) 24,770 (154,207) (408,306) 60,514 (347,792)
Net unrealized gains (losses) on fixed maturity investments trading 172,233 (15,245) 156,988 (613,997) 78,477 (535,520)
Net realized and unrealized gains (losses) on investments-related derivatives (52,889) 4,289 (48,600) (106,366) (729) (107,095)
Net realized gains (losses) on equity investments (27,493) — (27,493) 35,572 — 35,572
Net unrealized gains (losses) on equity investments 59,778 8 59,786 (175,773) (6) (175,779)
Net realized and unrealized gains (losses) on other investments - catastrophe bonds 62,312 (54,628) 7,684 (32,921) 28,174 (4,747)
Net realized and unrealized gains (losses) on other investments - other 21,706 — 21,706 (25,333) — (25,333)
Net realized and unrealized gains (losses) on investments 56,670 (40,806) 15,864 (1,327,124) 166,430 (1,160,694)
Total investment result $ 603,710 $ (230,522) $ 373,188 $ (1,136,222) $ 113,186 $ (1,023,036)
Average invested assets $ 23,655,559 $ (7,924,483) $ 15,731,076 $ 20,963,895 $ (6,797,217) $ 14,166,678
Total investment return - annualized 5.5 % (0.6) % 4.9 % (10.5) % (3.4) % (13.9) %

(1)“Managed” represents the consolidated total investment result, which is comprised of net investment income and net realized and unrealized gains (losses) on investments as presented on the Company’s consolidated statements of operations.

(2)Adjustment for the portions of the consolidated total investment result attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds.

(3)“Retained” represents the consolidated total investment result, less the portions attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds.

Comments on Non-GAAP Financial Measures

Retained Total Investments

The Company has included in this Financial Supplement “retained total investments.” “Retained total investments” is defined as the consolidated total investments, less the portions attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds. “Retained total investments” differs from consolidated total investments, which the Company believes is the most directly comparable GAAP measure, due to the exclusion of portions of the consolidated total investments attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds. The Company’s management believes the “retained total investments” is useful to investors because it provides a measure of the portion of the Company’s total investments that impacts the investment result included in net income (loss) available (attributable) to RenaissanceRe common shareholders. The following table is a reconciliation of consolidated total investments to "retained total investments."

June 30, 2023 December 31, 2022
Managed (1) Adjustment (2) Retained (3) Managed (1) Adjustment (2) Retained (3)
Fixed maturity investments trading, at fair value
U.S. treasuries $ 8,592,242 $ (1,657,306) $ 6,934,936 $ 7,180,129 $ (1,407,827) $ 5,772,302
Corporate (4) 4,371,407 (1,020,430) 3,350,977 4,390,568 (998,439) 3,392,129
Agencies 476,476 (126,506) 349,970 395,149 (81,312) 313,837
Non-U.S. government 401,743 (74,731) 327,012 383,838 (51,582) 332,256
Residential mortgage-backed 788,256 (230,717) 557,539 710,429 (192,368) 518,061
Commercial mortgage-backed 209,661 (71,257) 138,404 213,987 (64,006) 149,981
Asset-backed 1,048,779 (91,165) 957,614 1,077,302 (51,540) 1,025,762
Total fixed maturity investments trading, at fair value 15,888,564 (3,272,112) 12,616,452 14,351,402 (2,847,074) 11,504,328
Short term investments, at fair value 6,373,969 (3,540,499) 2,833,470 4,669,272 (3,537,864) 1,131,408
Equity investments, at fair value 93,058 (196) 92,862 625,058 (188) 624,870
Other investments, at fair value
Catastrophe bonds 1,679,184 (1,471,122) 208,062 1,241,468 (1,032,354) 209,114
Fund investments:
Private credit funds 876,010 — 876,010 771,383 — 771,383
Private equity funds 365,337 — 365,337 315,323 — 315,323
Term loans 100,000 — 100,000 100,000 — 100,000
Direct private equity investments 71,155 — 71,155 66,780 — 66,780
Total other investments, at fair value 3,091,686 (1,471,122) 1,620,564 2,494,954 (1,032,354) 1,462,600
Investments in other ventures, under equity method 89,505 — 89,505 79,750 — 79,750
Total investments $ 25,536,782 $ (8,283,929) $ 17,252,853 $ 22,220,436 $ (7,417,480) $ 14,802,956

(1)“Managed” represents the consolidated total investments as presented on the Company’s consolidated balance sheets.

(2)Adjustment for the portions of the consolidated total investments attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds.

(3)“Retained” represents the consolidated total investments, less the portions attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds.

(4)Corporate fixed maturity investments include non-U.S. government-backed corporate fixed maturity investments.

Comments on Non-GAAP Financial Measures

Retained Total Investments, Unrealized Gain (Loss)

The Company has included in this Financial Supplement “retained total investments, unrealized gain (loss).” “Retained total investments, unrealized gain (loss)” is defined as the unrealized gain (loss) of the consolidated total investments, less the portions attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds. Unrealized gain (loss) of the consolidated total investments is the difference between fair value and amortized cost or equivalent of the respective investments as at the balance sheet date. “Retained total investments, unrealized gain (loss)” differs from the unrealized gain (loss) of the consolidated total investments, which the Company believes is the most directly comparable GAAP measure, due to the exclusion of portions of the consolidated total investments attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds. The Company’s management believes the “retained total investments, unrealized gain (loss)” is useful to investors because it provides a measure of the portion of the unrealized gain (loss) of investments in the Company’s consolidated total investments that is available (attributable) to RenaissanceRe common shareholders. The following table is a reconciliation of the total unrealized gain (loss) of investments, to “retained total investments, unrealized gain (loss)".

June 30, 2023 December 31, 2022
Type of Investment Unrealized gain (loss) - managed (1) Adjustment (2) Unrealized gain (loss) - retained (3) Unrealized gain (loss) - managed (1) Adjustment (2) Unrealized gain (loss) - retained (3)
Fixed maturity investments trading, at fair value
U.S. treasuries $ (148,134) $ 19,421 $ (128,713) $ (186,451) $ 18,305 $ (168,146)
Corporate (4) (230,807) 20,705 (210,102) (331,461) 31,216 (300,245)
Other (5) (131,177) 27,878 (103,299) (169,237) 28,448 (140,789)
Total fixed maturity investments trading, at fair value (510,118) 68,004 (442,114) (687,149) 77,969 (609,180)
Short term investments, at fair value (988) 606 (382) (2,309) 1,492 (817)
Equity investments, at fair value 49,237 (8) 49,229 (10,590) (10) (10,600)
Other investments, at fair value
Catastrophe bonds (117,931) 76,438 (41,493) (182,798) 130,957 (51,841)
Fund investments 145,353 — 145,353 111,423 — 111,423
Direct private equity investments (27,109) — (27,109) (31,484) — (31,484)
Total other investments, at fair value 313 76,438 76,751 (102,859) 130,957 28,098
Total investments $ (461,556) $ 145,040 $ (316,516) $ (802,907) $ 210,408 $ (592,499)
Unrealized gain (loss) on total fixed maturity investments trading, at fair value, per common share (6) $ (8.64) $ (13.93)

(1)“Managed” represents the consolidated total investments as presented on the Company’s consolidated balance sheets.

(2)Adjustment for the portions of the consolidated total investments attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds.

(3)“Retained” represents the consolidated total investments, less the portions attributable to redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds.

(4)Corporate fixed maturity investments include non-U.S. government-backed corporate fixed maturity investments.

(5)Includes agencies, non-U.S. government, residential mortgage-backed, commercial mortgage-backed and asset-backed securities within the Company's fixed maturity investments trading portfolio.

(6)Represents the impact to book value per common share of the unrealized gain (loss) on total fixed maturity investments trading, at fair value, of $442.1 million and $609.2 million at June 30, 2023 and December 31, 2022, respectively. Book value per common share is calculated net of redeemable noncontrolling interests and third-party investors in certain joint ventures and managed funds. Accordingly, there is no corresponding managed metric for the unrealized gain (loss) on total fixed maturity investments trading, at fair value, per common share.

Comments on Non-GAAP Financial Measures

Operating (income) loss attributable to redeemable noncontrolling interests

The Company has included in this Financial Supplement “operating (income) loss attributable to redeemable noncontrolling interests.” “Operating (income) loss attributable to redeemable noncontrolling interests” is defined as net (income) loss attributable to redeemable noncontrolling interests as adjusted for the portion of the adjustments to the Company’s redeemable noncontrolling interests which are excluded from net income (loss) available (attributable) to RenaissanceRe common shareholders in calculating the Company’s operating income (loss) available (attributable) to RenaissanceRe common shareholders. The Company’s management believes that “operating (income) loss attributable to redeemable noncontrolling interests” is useful to investors because it provides additional information on the operations and financial results of the Company’s Managed Joint Ventures and how noncontrolling interests impact the Company’s results. The following table is a reconciliation of net (income) loss attributable to redeemable noncontrolling interests, the most directly comparable GAAP measure, to "operating (income) loss attributable to redeemable noncontrolling interests."

Three months ended Six months ended
June 30,<br>2023 June 30,<br>2022 June 30,<br>2023 June 30,<br>2022
Net (income) loss attributable to redeemable noncontrolling interests (1) $ (174,907) $ (49,331) $ (442,291) $ (37,419)
Adjustment for the portion of net realized and unrealized losses (gains) on investments, excluding other investments - catastrophe bonds attributable to redeemable noncontrolling interests 46,701 54,227 13,954 135,618
Adjustment for the portion of net foreign exchange losses (gains) attributable to redeemable noncontrolling interests 12,450 20,270 19,751 30,889
Adjustment for non-operating (income) loss attributable to redeemable noncontrolling interests (2) 59,151 74,497 33,705 166,507
Operating (income) loss attributable to redeemable noncontrolling interests $ (234,058) $ (123,828) $ (475,996) $ (203,926)

(1)A negative number in the table above represents net income earned by the Consolidated Managed Joint Ventures allocated to third-party investors. Conversely, a positive number represents net losses incurred by the Consolidated Managed Joint Ventures allocated to third-party investors.

(2)Represents the total portion of adjustments attributable to the Company’s redeemable noncontrolling interests which are excluded from net income (loss) available (attributable) to RenaissanceRe common shareholders when calculating the Company’s operating income (loss) available (attributable) to RenaissanceRe common shareholders. These adjustments include (1) net realized and unrealized gains and losses on investments, excluding other investments - catastrophe bonds and (2) net foreign exchange gains and losses.

35

Report a Problem

Category
Description
Email (optional, for follow-up)