RenRe reports 23% premium growth

RenaissanceRe has reported $195.7m in first quarter operating income compared to $54.5m in the first quarter of 2005.

Operating income excludes net realised investment losses of $16.8m and $10.2m in the first quarters of 2006 and 2005, respectively.

Operating income per common share was $2.73 in the first quarter of 2006, compared to $0.76 in the first quarter of 2005. Net income available to common shareholders was $179m or $2.49 per common share in the quarter, compared to net income available to common shareholders of $44.3m or $0.62 per common share for the same quarter of 2005.

Neill Currie, chief executive, commented, “We had a strong first quarter with over 8% growth in our book value per common share. Our first quarter results benefited from light catastrophe losses and lower than expected reported claims on prior year reserves within our reinsurance segment, but also demonstrate the ongoing strength of the RenaissanceRe business and franchise.”

Currie continued, “Given improving pricing and terms for catastrophe reinsurance, we grew our managed catastrophe reinsurance premium by 23% in the quarter; for the year, we continue to expect growth of over 15%, but recognize that there is substantial uncertainty – and potential upside – depending largely upon the ultimate magnitude of our opportunities in Florida.

"Conversely, we are seeing fewer attractive opportunities within specialty reinsurance than we had hoped. Our specialty premium declined by 43% which is more pronounced than our 2006 guidance of a 35% decline, although our specialty premium can fluctuate from quarter to quarter.

"Our individual risk segment is on track with our expectations of 15% top line growth for the year and generated solid underwriting income for the quarter.”

Currie added, “Overall, we are pleased with the performance for the quarter. The team is energized, and we are well positioned to participate in the hardening property catastrophe market we now see for this year.”