Bermudian-based RenaissanceRe Holdings has reported net income available to common shareholders of $191 million for the second quarter of the year.

That compares with a net loss of $324.9 million in the same quarter a year earlier.

RenRe reported a 13.5 per cent annualised return on average common equity and 28.8 per cent annualised operating return on average common equity.

This is the third consecutive quarter with annualised operating return on average common equity exceeding 28 per cent, driven by continued positive momentum across the three drivers of profit, the company said.

RenRe said it recorded a strong performance across both segments, with a property combined ratio of 63 per cent and casualty and specialty combined ratio of 93.2 per cent. The overall combined ratio was 80.3 per cent.

Property catastrophe net premiums written grew by $273.4 million, or 54.9 per cent, driven by significant rate increases.

The company reported underwriting income of $351 million.

Fee income was $56.7 million, which translates to 65.5 per cent growth compared with the second quarter 2022.

Net investment income was $292.7 million, 173 per cent growth on year.

During the quarter, RenRe announced an agreement to acquire Validus Re from American International Group in a $2.985 billion transaction.

The company said it raised approximately $2.09 billion in net proceeds through the issuance of 7.245 million common shares at $192 per share and $750 million principal amount of 5.750 per cent senior notes due 2033, in accordance with its financing plan for the Validus acquisition.

Kevin J. O’Donnell, the president and chief executive, said: “RenaissanceRe delivered a strong quarter, distinguished by a 28.8 per cent operating return on average common equity with robust underwriting income and record fee and net investment income.

“In addition, we accelerated our strategy by agreeing to purchase Validus Re, which brings us a large, diversified business in a favourable reinsurance market.

“In aggregate, our accomplishments this quarter demonstrate the effectiveness of our strategy and strengthen our foundation for delivery of shareholder value.”

The transaction with AIG is expected to close in the fourth quarter of 2023.