However, company describes “solid quarter” with 23% ROE
RenaissanceRe has reported $159.9m in second quarter operating income available to common shareholders compared to $194.7m in the second quarter of 2007.
Operating income excludes net realised investment losses of $24.2m and $11.6m in the second quarters of 2008 and 2007, respectively. Operating income per diluted common share was $2.50 in the second quarter of 2008, compared to $2.69 in the second quarter of 2007. Net income available to common shareholders was $135.7m or $2.13 per diluted common share in the quarter, compared to net income available to common shareholders of $183.2m or $2.53 per diluted common share for the same quarter of 2007.
The company reported an annualised operating return on average common equity of 23.4% and an annualised return on average common equity of 19.9% in the second quarter of 2008, compared to 28.5% and 26.8%, respectively, in the second quarter of 2007. Tangible book value per common share increased to $42.14 at June 30, 2008, a 0.2% increase in the second quarter of 2008, compared to a 6.0% increase in the second quarter of 2007. Book value per common share increased to $43.32 at June 30, 2008, a 2.8% increase in the second quarter of 2008, compared to a 5.9% increase in the second quarter of 2007.
Chief executive officer Neill Currie said: "I am pleased to report another solid quarter with an annualised operating ROE of over 23%. We generated strong underwriting profits and had a successful June 1st renewal season. We are pleased with our portfolio of risks, despite softening market conditions and a challenging investment environment."
He added: "Our ability to produce an attractive portfolio of business in this market is a testament to our position as a market leader with strong client and broker relationships. We continue to strengthen our franchise by investing in our people, risk management capabilities and underwriting tools. During the quarter we added to our business capabilities, with the addition of Agro National LLC, a managing general underwriter of multi-peril crop insurance, and Claims Management Services, Inc., a third party claims administrator. As we maintain our strong underwriting discipline in a difficult market, we continue to lay the groundwork for future opportunities."
