Operating income of $735.5m compared to $796.1m in 2006

RenaissanceRe has reported $186.2m in fourth quarter operating income available to common shareholders, compared to $198.6m in the fourth quarter of 2006.

Operating income excludes net realised investment gains of $7.2m and $2.5m in the fourth quarters of 2007 and 2006, respectively, and, in the fourth quarter of 2007, reported losses of $131.2m arising from net unrealised losses on credit derivatives issued by ChannelRe, as previously announced.

Operating income per diluted common share was $2.64 in the fourth quarter of 2007, compared to $2.74 in the fourth quarter of 2006. Net income available to common shareholders was $62.2m or $0.88 per diluted common share in the fourth quarter of 2007, compared to net income available to common shareholders of $201.1m or $2.78 per diluted common share for the same quarter of 2006.

The company generated an operating return on average common equity of 26.1% for the fourth quarter of 2007, compared to 33.3% in the fourth quarter of 2006. The company also reported a return on average common equity of 8.7% for the fourth quarter of 2007, compared to 33.7% in the fourth quarter of 2006.

Book value per common share increased 1.2% in the fourth quarter of 2007 compared to a 7.9% increase in fourth quarter of 2006. The company’s book value per common share increased 19.3% in 2007, compared to a 40.2% increase in 2006.

For the year ended 31 December 2007, the company generated operating income available to common shareholders of $735.5m, compared to $796.1m in 2006. Operating income excludes net realised investment gains of $1.3m and net realised investment losses of $34.5m for 2007 and 2006, respectively, and net unrealised losses on credit derivatives issued by ChannelRe of $167.2m and $nil in 2007 and 2006, respectively.

Neill Currie, CEO, commented: “I am pleased to report strong full year earnings, resulting in an increase in book value per common share of over 19% and an operating return on equity of 27%. These earnings are a result of a relatively low level of insured catastrophe losses for the full year, solid investment income and strong performance by our team.”

Currie added: “Although our premium volume is down, we are pleased with the results of our January 1 renewals and have constructed an attractive portfolio of business for 2008. We will maintain our underwriting discipline, focusing on profit rather than premium volume. This discipline has been part of our culture since our formation and we believe this strategy will continue to benefit our shareholders over the long term.”