RenRe Q1 burnt by $1.6bn wildfire claims
California wildfires torched the first quarter underwriting performance of Bermudian-based reinsurer, RenaissanceRe, leaving available net income for common shareholders at $161.1 million (2024 Q1: $364.8 million).
The underwriting loss of $770.6 million was combined with $30.6 million in fee income and net investment income of $405.4 million.
The company yesterday highlighted growth in book value per share of 0.2 per cent and growth in tangible book value per share plus change in accumulated dividends of 0.9 per cent, in Q1 2025.
RenRe repurchased approximately 1.5 million common shares at an aggregate cost of $361.1 million and an average price of $242.08 per common share.
Annualised return on average common equity of 6.6 per cent was achieved and annualised operating return on average common equity of (2.9) per cent despite the 2025 large loss events (which includes the California wildfires) having a net negative impact of $702.8 million, after tax, on net income available to common shareholders.
The total investment result obtained was $738.3 million with net investment income of $405.4 million and mark-to-market gains of $332.9 million.
The combined ratio of 128.3 per cent and adjusted combined ratio of 126.4 per cent included a 52.6 percentage point impact from the 2025 large loss events.
Casualty and specialty combined ratio of 111.1 per cent and adjusted combined ratio of 108.8 per cent included a 9.2 percentage point impact from the 2025 large loss events.
Fee income of $30.5 million were impacted by the California wildfires, with management fees of $46.1 million and performance fees of ($15.6 million).
Kevin J O’Donnell, president and chief executive officer, said: “This quarter, we grew our primary metric, tangible book value per share plus accumulated dividends, against a backdrop of elevated natural catastrophe losses and significant macroeconomic volatility.
“We also recorded an annualised return on average common equity of 6.6 per cent and a modest operating loss ($69.8 million) while returning $380 million of capital to our shareholders through buybacks and dividends.
“Our ability to deliver enduring shareholder value in times of instability demonstrates the strength of RenaissanceRe’s platform, the benefit of our three drivers of profit and the value we bring as a risk provider.”
RenRe (RNR) at $239.96, fell $3.54 (-1.45 per cent) at close yesterday.
• For more on 2025 Q1 RenaissancRe earnings, see Related Media
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