RenaissanceRe (RNR) Q1 2025 earnings summary

Executive summary

• Net income available to common shareholders was $161.1M in Q1 2025, with an operating loss of $69.8M due to large catastrophe losses, notably the California Wildfires.

• Book value per share increased 0.4% to $196.18 after dividends, and tangible book value per share plus accumulated dividends rose 0.9% in Q1 2025.

• Annualized return on average common equity was 6.6%, while annualized operating return was negative 2.9%, reflecting the impact of $702.8M in after-tax catastrophe losses.

• Returned $380M to shareholders via buybacks and dividends, repurchasing 1.5M shares at an average price of $242.08.

• Business model is anti-correlated to macroeconomic volatility, providing resilience and opportunity in uncertain environments.

Financial highlights

• Gross premiums written increased to $4.16B, up from $3.99B year-over-year; net premiums written rose to $3.44B from $3.20B.

• Net premiums earned were $2.72B, up from $2.44B year-over-year.

• Combined ratio deteriorated to 128.3% from 77.9% year-over-year, mainly due to catastrophe losses.

• Net investment income was $405.4M, with total investment result of $738.3M, including $332.9M in mark-to-market gains.

• Fee income dropped to $30.5M, down 63.5% from Q1 2024, impacted by catastrophe losses.

Outlook and guidance

• Management expects to deliver solid full-year ROE assuming average catastrophe activity for the remainder of the year.

• Management fees expected to recover to $50M per quarter by Q3; performance fees anticipated to resume in late Q2.

• Company anticipates higher income taxes going forward due to Bermuda CIT and global tax changes.

• Focus remains on margin and disciplined underwriting, with appetite to grow in property catastrophe and select specialty lines.

• Net investment income expected to remain flat in Q2.