Bermudian (re)insurer RenaissanceRe has posted a decline in both first half and second quarter net profit as the reporting season for US-listed firms begins.
RenRe’s first half net profit fell 41% to $223.27m from $375.29m in the first half of 2011, while second quarter net profit fell 88% to $24.76m from $210.24m. The reinsurer’s first half 2011 combined ratio increased to 174.1% from 45.8%, while the second quarter combined ratio increased to 95.5% from 20.2%.
Gross written premiums rose slightly during the first half of 2011 to $1.25bn from $1.02bn for the same period last year, while the second quarter also rose to $641.56m from $506.54m.
The (re)insurer’s CEO Neil Currie remained upbeat about the company’s performance given the difficult operating environment.
“Our results for the quarter were impacted by $70.8m of net losses from the tornado activity in the U.S. At the same time, we had a successful 1 June renewal season and are pleased with our portfolio of risks, which reflects improving market conditions in our reinsurance segment."
“Our strong balance sheet, high ratings and leadership position in property catastrophe reinsurance allowed us to increase our catastrophe premiums by over 15%,” added Currie.