Bermuda-based RenaissanceRe Holdings Ltd. yesterday announced record operating profits of $365.2 million for 2002.

The fourth quarter results included operating earnings per share of $1.49 up from $0.69, and $5.20 for the full year 2002.

Net income rose to $102.2 million or $1.45 per share for the quarter, compared to $49.2 million or $0.73 per share for the same quarter of 2001.

Net income for the full year 2002 were $364.8 million or $5.20 per share, compared to $164.4 million or $2.63 per share in 2001.

The company's share price rose as the market digested the results and was up $1.50 to $40.35 yesterday afternoon.

James N. Stanard, chairman and chief executive officer, commented: "2002 was an outstanding year for RenaissanceRe by any measure. Our premiums more than doubled, we had a record $365 million in operating profits, and our 29 percent return on equity enabled us to record a tenth consecutive year of industry-leading returns. We continued to expand our leadership in our core catastrophe reinsurance business and substantially grew in specialty reinsurance and individual risk."

The company saw tremendous growth over 2002 with gross premiums written for the fourth quarter rising by 177 percent to $159.3 million, compared to last year's figure of $57.5 million.

For the full year, gross premiums written were $1.2 billion, compared to $501.3 million for 2001.

Net premiums written (the figure once ceded insurance is deducted) were $153.4 million for the quarter versus $46.3 million for the same quarter of 2001. Net premiums written were $923.7 million for the full year compared to $339.5 million for 2001.

Net premiums earned for the fourth quarter of 2002 were $234.5 million, compared to $93.7 million for the same quarter of 2001.

The company's subsidiary DaVinci Re had net premiums earned of $52.9 million during the fourth quarter of 2002 and $153.0 million for the year.

Of the company's four business areas, Individual Risk saw the largest growth (421 percent) followed by Specialty Reinsurance (218 percent).

The company's managed catastrophe business also prospered: gross catastrophe premiums written increased by 67 percent to $738.8 million, from $441.8 million in 2001.

The company recorded 35 percent growth in book value per share and 29 percent operating return on equity for the full year 2002.

Investment results were also good with net investment income for the fourth quarter of $28.9 million up from $20.3 million for the same period in 2001.

Net investment income for the whole of 2002 was $104.1 million, compared to $75.2 million for the same period in 2001.

On the other side of the balance sheet, operational expenses for the quarter also increased - $18.9 million compared to $10.8 million for the same period in 2001.

The increase relates primarily to compensation related expenses.

Claims and claim expenses, however were lower on an annual percentage of earnings basis than last year.

There were $289.5 million in claims and claim expenses in 2002 representing 38.1 percent of net premiums earned.

This compares with $149.9 million or 45.0 percent of net premiums earned.

The reduction in the loss ratio during 2002, compared to 2001, resulted principally from the relatively low level of catastrophe losses during 2002, offset partially by the growth in the specialty and individual risk areas, which operate at higher loss ratios.

Also, the 2001 loss ratio includes losses related to the events of September 11th, 2001.

The company says that profits should continue, estimating that 2003 operating earnings per share will be $5.30 to $5.70.

Mr. Stanard added: "As previously announced, we are projecting 2003 operating earnings per share of $5.30 to $5.70, assuming normal loss activity.

This represents over 25 percent earnings growth when compared to normalised results for 2002 of $4.20 per share, which is net of an estimated $1.00 per share of benefit from the low catastrophe loss activity of 2002. 2003 is already off to a strong start as we had a very successful January 1 renewal season in our reinsurance business and we are continuing to grow our Individual Risk business.

We expect significant growth in written premium for the first quarter."

Shareholders' equity attributable to common shareholders was $1.5 billion at December 31, 2002, compared to $1.1 billion at December 31, 2001.

Separately, the company announced that it had closed the sale of $100 million of ten-year 5.875 percent senior notes and $100 million of 7.3 percent perpetual preference shares.

The company expects to use the net proceeds from these offerings for general corporate purposes.