RenaissanceRe (RNR) Q3 2024 earnings summary

Executive summary

• Net income available to common shareholders reached $1.17 billion in Q3 2024, up from $194 million in Q3 2023, with operating income at $540 million and annualized ROE of 47.1%.

• Book value per share increased 12.5% sequentially to $202.01, and tangible book value per share plus accumulated dividends rose 15%.

• Gross premiums written increased 48% year-over-year to $2.4 billion, driven by the Validus acquisition and organic growth.

• The Validus acquisition, completed in November 2023, significantly contributed to scale, diversification, and capital efficiency.

• Share repurchase authorization increased to $750 million, with $215 million repurchased year-to-date.

Financial highlights

• Net premiums earned rose 47% year-over-year to $2.58 billion; underwriting income was $394 million with a combined ratio of 84.8%.

• Net investment income increased 29% to $424 million; total investment result was $1.37 billion, including $944 million in mark-to-market gains.

• Fee income rose 27% to $82 million, reflecting growth in joint ventures and managed funds.

• Diluted EPS was $22.62, up from $3.80 in Q3 2023.

• Tangible book value per share plus change in accumulated dividends up 30% since December 2023.

Outlook and guidance

• Management expects continued strong demand for reinsurance, especially at higher program layers, and ongoing capital returns to shareholders.

• The Validus acquisition is expected to continue providing scale, diversification, and accretive returns.

• Hurricane Milton is estimated to have a $275 million net negative impact on Q4 2024 results.

• Bermuda to implement a 15% corporate income tax in 2025; accruals to begin in Q1 2025.