Bermuda-based RenaissanceRe Holdings Ltd. yesterday reported net earnings of $135.7 million for the second quarter, down 26 percent on the same period of last year.

Low catastrophe losses enabled the company to record a combined ratio of 53.5 percent, while annualised return on equity was 19.9 percent.

Operating income was $159.9 million, or $2.50 per share, compared to $194.7 million, or $2.69 per share in the April through June period in 2007.

RenRe's reinsurance segment gross premiums written decreased $118.4 million, or 19.5 percent, to $487.8 million in the second quarter of 2008, compared to the second quarter of 2007. The company's managed catastrophe premiums decreased $47.3 million, or 8.7 percent, a drop the company attributed to softening market conditions which resulted in lower premium rates on business written during the quarter.

Gross premiums written for the company's individual risk segment increased $76.5 million, or 32.1 percent, to $314.8 million in the second quarter of 2008, compared to $238.4 million in the second quarter of 2007. The increase was mostly down to an improvement in premiums written in RenRe's crop insurance line, which increased $86.4 million for the quarter, as the value of agricultural commodities soared.

Chief executive officer Neill Currie said: "I am pleased to report another solid quarter with an annualised operating ROE (return on equity) of more than 23 percent.

"We generated strong underwriting profits and had a successful June 1 renewal season. We are pleased with our portfolio of risks, despite softening market conditions and a challenging investment environment."

The reinsurance segment experienced $37.7 million of favourable development on prior year reserves.

Book value per common share increased to $43.32 at June 30, a 2.8-percent increase in the second quarter of 2008, compared to a 5.9-percent increase in the second quarter of 2007.

Mr. Currie 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."