Decline in premiums driven by the company’s catastrophe and specialty units
RenaissanceRe Holdings has reported net income of $190.5m for the first quarter of 2013, down from $201.4m in the first quarter of 2012.
Gross written premium (GWP) decreased $28.7m, or 4.3%, to $635.4m with the decrease being driven by the company’s catastrophe and specialty units, and partially offset by growth in the company’s Lloyd’s segment.
GWP in its reinsurance segment was $561.1m, a decrease of $48.6m, or 8%. This was comprised of a $30.4m decrease in the company’s catastrophe unit reflecting the non-renewal or renewal at lower rates for a number of contracts during the January 2013 renewals and an $18.2m decrease in the company’s specialty unit, primarily owing to the timing of certain multi-year contracts in the comparative quarter.
The reinsurance segment generated a combined ratio of 27.9%, compared to 23.5% in Q1 2012.
GWP in the Lloyd’s segment was $74.3m, an increase of $19.5m, or 35.5%, primarily because of continued organic growth within the segment. The Lloyd’s segment generated a combined ratio of 89%, compared to a combined ratio of 95.6% in Q1 2012.
“Our results reflect strong underwriting profits, principally driven by our high-quality portfolio, the absence of significant catastrophe losses in the quarter, and solid total returns in our investment portfolio,” said RenRe chief executive Neill Currie.
“We are working with our customers to meet their needs for the upcoming renewal period,” he said. “Our long-standing customer relationships, experienced underwriting team and superior capital management put us in a strong position to construct an attractive portfolio of risks during this period.”