RenaissanceRe Holdings returned to profit in the first half of 2012, boosted by a low level of catastrophe losses and solid investment returns.
The Bermuda-based reinsurer reported an after tax profit of $448.5m for the six months to 30 June 2012 versus a loss of $269.4m for the same period in 2011.
Over the second quarter, net income climbed to $142.3m or $2.75 per share compared to $24.8m or 48 cents per share in the second quarter of 2011.
Combined ratio dropped by more than 100% to 38% during the first half of the year from 174% in 2011.
Gross premiums written remained flat at $1.3bn over the same period.
RenRe chief executive Neill Currie said: “In the second quarter of 2012, we generated an annualised operating ROE of 13.7%.
“We increased our book value per share by 3.8% for the quarter and almost 10% year to date. Our results benefited from relatively low catastrophe losses, solid investment returns and favourable reserve development.”
He continued: “Although property catastrophe pricing at 1 June was a little lower than we had anticipated, we are pleased with the results of the recent renewal season. We have grown significantly in each unit this year, and have produced an attractive portfolio of risks.”
Shareholders’ equity topped $3.8bn for the first half of 2012, up from $3.6bn for the same period last year.
Book value also increased to $65.07 per share in the first six months of the year from $59.27 per share over the same period in 2011.
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