O’Donnell takes positives as RenRe posts strong growth in 2018 but profits dip

RenaissanceRe’s gross written premiums jumped by nearly 20 percent in 2018 – but its profits dipped mainly on the back of high levels of claims from the record-breaking wildfires in California for a second consecutive year.

The company’s gross written premiums leaped by $512.9 million (18.3 percent) in 2018 to reach $3.3 billion, compared with $2.8 billion in 2017. The bulk of this increase was driven by a $320.5 million rise in property premiums, plus a $192.4 million increase in its casualty and specialty insurance segments.

But its net profit fell to $197.3 million last year compared with $244.8 million in 2017. It attributed this drop to the negative impact of large loss events costing some $86.4 million.

Its combined ratio improved to 87.6 percent in 2018 compared with 137.9 percent the year before. Its underwriting income was $244.9 million last year, a big improvement on the underwriting loss of $651.5 million it posted in 2017.

Kevin O’Donnell, president and chief executive officer of RenaissanceRe, said: “Once again in 2018, we benefited from our industry leading ability to construct efficient portfolios of risk through superior underwriting and the application of our gross-to-net strategy.

“In the quarter, we reported positive operating income, while rapidly paying claims to customers facing significant losses from Category 4 Hurricane Michael and a second consecutive year of record-breaking wildfires in California.

“For the year, we outperformed on multiple metrics, posting a strong operating ROE, delivering robust top line growth, and executing effectively on a number of key initiatives, including the formation of our latest innovative joint venture, Vermeer and our pending acquisition of Tokio Millennium Re. Looking ahead, at the recent January 1 renewal we laid the foundation for a successful 2019 and ongoing shareholder value creation.”

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