RENAISSANCERE HOLDINGS LTD

Previous wording

The following is a discussion and analysis of our results of operations for the three months ended March 31, 2024 and 2023, as well as our liquidity and capital resources at March 31, 2024. This discussion and analysis should be read in conjunction with the unaudited consolidated financial statements and notes thereto included in this filing and the audited consolidated financial statements and notes thereto contained in our Form 10-K for the fiscal year ended December 31, 2023. This filing contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from the results described or implied by these forward-looking statements. See “Note on Forward-Looking Statements.”

Current wording

The following is a discussion and analysis of our results of operations for the three and six months ended June 30, 2024 and 2023, as well as our liquidity and capital resources at June 30, 2024. This discussion and analysis should be read in conjunction with the unaudited consolidated financial statements and notes thereto included in this filing and the audited consolidated financial statements and notes thereto contained in our Form 10-K for the fiscal year ended December 31, 2023. This filing contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from the results described or implied by these forward-looking statements. See “Note on Forward-Looking Statements.”

Previous wording

Our results of operations and financial condition include Validus since November 1, 2023. The following discussion and analysis of our results of operations for the three months ended March 31, 2024, compared to the three months ended March 31, 2023, as well as our financial condition, liquidity and capital resources at March 31, 2024, should be read in that context.

Current wording

Our results of operations and financial condition include Validus since November 1, 2023. The following discussion and analysis of our results of operations for the three and six months ended June 30, 2024, compared to the three and six months ended June 30, 2023, as well as our financial condition, liquidity and capital resources at June 30, 2024, should be read in that context.

Previous wording

We manage DaVinci, Fontana, Medici, and Vermeer, and own all, or a majority, of the voting interests, but own no, or a minority, economic interest of each. As a result of our controlling voting interests, we fully consolidate these entities in our financial statements, even though we do not retain the full value of the economic outcomes generated by these entities. The portions of the economic outcomes that are not retained by us are ultimately allocated to the third-party investors who hold the noncontrolling interests in these entities. The economic outcomes may include underwriting results, investments results, and foreign exchange impacts, among other items. For example, if one of these entities were to generate underwriting losses due to a natural catastrophe, the full amount would be reflected in net income (loss) on our consolidated statements of operations, but ultimately we would only retain a portion of that amount in our net income (loss) attributable to RenaissanceRe. In the Company’s consolidated balance sheets and consolidated statements of operations, the portion of these items attributable to third parties is reflected in “Net (income) loss attributable to redeemable noncontrolling interests” line item. Refer to “Note 8. Noncontrolling Interests” in our “Notes to the Consolidated Financial Statements” for additional information regarding our redeemable noncontrolling interests and how this accounting treatment impacts the Company’s financial results.

Current wording

We manage DaVinci, Fontana, Medici, and Vermeer, and own all, or a majority, of the voting interests, but own no, or a minority, economic interest of each. As a result of our controlling voting interests, we fully consolidate these entities in our financial statements, even though we do not retain the full value of the economic outcomes generated by these entities. The portions of the economic outcomes that are not retained by us are ultimately allocated to the third-party investors who hold the noncontrolling interests in these entities. The economic outcomes may include underwriting results, investments results, and foreign exchange impacts, among other items. For example, if one of these entities were to generate underwriting losses due to a natural catastrophe, the full amount would be reflected in net income (loss) on our consolidated statements of operations, but ultimately we would only retain a portion of that amount in our net income (loss) attributable to RenaissanceRe. In our consolidated balance sheets and consolidated statements of operations, the portion of these items attributable to third parties is reflected in “Net (income) loss attributable to redeemable noncontrolling interests” line item. Refer to “Note 8. Noncontrolling Interests” in our “Notes to the Consolidated Financial Statements” for additional information regarding our redeemable noncontrolling interests and how this accounting treatment impacts our financial results.

Previous wording

Below is a discussion of the results of operations for the first quarter of 2024, compared to the first quarter of 2023.

Current wording

Below is a discussion of the results of operations for the second quarter of 2024, compared to the second quarter of 2023.

Previous wording

Net income available to RenaissanceRe common shareholders was $364.8 million in the first quarter of 2024, compared to $564.1 million in the first quarter of 2023, a decrease of $199.3 million. As a result of our net income available to RenaissanceRe common shareholders in the first quarter of 2024, we generated an annualized return on average common equity of 16.4%, and our book value per common share increased from $165.20 at December 31, 2023 to $170.92 at March 31, 2024, a 3.7% increase, after considering the change in accumulated dividends paid to our common shareholders.

Current wording

Net income available to RenaissanceRe common shareholders was $495.0 million in the second quarter of 2024, compared to $191.0 million in the second quarter of 2023, an increase of $304.0 million. As a result of our net income available to RenaissanceRe common shareholders in the second quarter of 2024, we generated an annualized return on average common equity of 21.4%, and our book value per common share increased from $165.20 at December 31, 2023 to $179.87 at June 30, 2024, a 5.5% increase, after considering the change in accumulated dividends paid to our common shareholders.

Previous wording

The most significant items affecting our financial performance during the first quarter of 2024, on a comparative basis to the first quarter of 2023, include:

Current wording

The most significant items affecting our financial performance during the second quarter of 2024, on a comparative basis to the second quarter of 2023, include:

Previous wording

•Underwriting Results - we generated underwriting income of $540.7 million and had a combined ratio of 77.9% in the first quarter of 2024, compared to underwriting income of $369.6 million and a combined ratio of 78.0% in the first quarter of 2023. Our underwriting income in the first quarter of 2024 was comprised of our Property segment, which generated underwriting income of $534.4 million and had a combined ratio of 42.9%, and our Casualty and Specialty segment, which generated underwriting income of $6.3 million and had a combined ratio of 99.6%. In comparison, our underwriting income in the first quarter of 2023 was comprised of our Property segment, which generated underwriting income of $298.7 million and had a combined ratio of 56.6%, and our Casualty and Specialty segment, which generated underwriting income of $70.9 million and had a combined ratio of 92.9%;

Current wording

•Underwriting Results - we generated underwriting income of $479.3 million and had a combined ratio of 81.1% in the second quarter of 2024, compared to underwriting income of $351.0 million and a combined ratio of 80.3% in the second quarter of 2023. Our underwriting income in the second quarter of 2024 was comprised of our Property segment, which generated underwriting income of $451.7 million and had a combined ratio of 53.9%, and our Casualty and Specialty segment, which generated underwriting income of $27.6 million and had a combined ratio of 98.2%. In comparison, our underwriting income in the second quarter of 2023 was comprised of our Property segment, which generated underwriting income of $281.0 million and had a combined ratio of 63.0%, and our Casualty and Specialty segment, which generated underwriting income of $70.0 million and had a combined ratio of 93.2%;

Previous wording

•Gross Premiums Written - our gross premiums written increased by $1.2 billion, or 43.0%, to $4.0 billion, in the first quarter of 2024, compared to the first quarter of 2023. This was comprised of an increase of $614.7 million in our Casualty and Specialty segment and $585.7 million in our Property segment, both primarily driven by the renewal of business acquired in the Validus Acquisition, in conjunction with the retention of legacy lines;

Current wording

•Gross Premiums Written - our gross premiums written increased by $773.9 million, or 29.2%, to $3.4 billion, in the second quarter of 2024, compared to the second quarter of 2023. This was comprised of an increase of $423.4 million in our Casualty and Specialty segment and $350.5 million in our Property segment, both primarily driven by the renewal of business acquired in the Validus Acquisition, in conjunction with the retention of legacy lines;

Previous wording

•Investment Results - our total investment result, which includes net investment income and net realized and unrealized gains (losses) on investments, was income of $177.1 million in the first quarter of 2024, compared to $533.8 million in the first quarter of 2023, a decrease of $356.7 million. The primary drivers of the lower total investment result were net realized and unrealized losses on investments in the first quarter of 2024, compared to net realized and unrealized gains in the first quarter of 2023, partially offset by an increase in net investment income. Net realized and unrealized gains (losses) on investments reduced $493.1 million as a result of net realized and unrealized losses on fixed maturity investments, primarily driven by increases in interest rates in the first quarter of 2024, compared to net realized and unrealized gains in the first quarter of 2023 due to decreases in interest rates during the period. Net investment income increased by $136.4 million due to a combination of higher average invested assets, primarily resulting from the Validus Acquisition, and higher yielding assets;

Current wording

•Investment Results - our total investment result, which includes net investment income and net realized and unrealized gains (losses) on investments, was income of $283.3 million in the second quarter of 2024, compared to $69.9 million in the second quarter of 2023, an increase of $213.4 million. The primary drivers of the higher total investment result were an increase in net investment income of $118.2 million due to a combination of higher average invested assets, primarily resulting from the Validus Acquisition, and higher yielding assets, as well as lower net realized and unrealized losses on investments in the second quarter of 2024 compared to the second quarter of 2023. Net realized and unrealized losses on investments decreased $95.2 million as a result of lower net realized and unrealized losses on fixed maturity investments compared to the comparative quarter, primarily due to generally lower increases in interest rates in the second quarter of 2024 compared to the second quarter of 2023;

Previous wording

•Net Income Attributable to Redeemable Noncontrolling Interests- our net income attributable to redeemable noncontrolling interests was $244.8 million in the first quarter of 2024, compared to $267.4 million in the first quarter of 2023. The higher net income attributable to redeemable noncontrolling interests in the first quarter of 2024 was primarily driven by improved underwriting results generated by DaVinci and Vermeer, and higher net investment income resulting from higher interest rates and yields within the investment portfolios of our joint ventures and managed funds; and

Current wording

•Net Income Attributable to Redeemable Noncontrolling Interests- our net income attributable to redeemable noncontrolling interests was $224.7 million in the second quarter of 2024, compared to $174.9 million in the second quarter of 2023. The higher net income attributable to redeemable noncontrolling interests in the second quarter of 2024 was primarily driven by improved underwriting results generated by DaVinci and Vermeer, and higher net investment income resulting from higher average invested assets and higher yielding assets within the investment portfolios of our joint ventures and managed funds; and

Previous wording

•Impact of Large Loss Events- we had a net negative impact on net income available to RenaissanceRe common shareholders of $54.5 million resulting from the Baltimore Bridge Collapse. This compares to a net negative impact on net loss attributable to RenaissanceRe common shareholders of $53.5 million resulting from the Q1 2023 Large Loss Events.

Current wording

•Impact of Large Loss Events- we had a net negative impact on net income available to RenaissanceRe common shareholders of $50.9 million resulting from the Q2 2024 Large Loss Events. This compares to a net negative impact on net income available to RenaissanceRe common shareholders of $44.6 million resulting from the 2023 Large Loss Events.

Previous wording

(1)“Q1 2023 Large Loss Events” includes the earthquakes which impacted southern and central Turkey in February 2023, Cyclone Gabrielle which impacted northern New Zealand, the flooding that impacted northern New Zealand in January and February 2023, and various wind and thunderstorm events which impacted states in both the Southern and Midwest U.S. during March 2023.

Current wording

(1)“2023 Large Loss Events” includes the earthquakes which impacted southern and central Turkey in February 2023, Cyclone Gabrielle which impacted northern New Zealand, the flooding that impacted northern New Zealand in January and February 2023, and various wind and thunderstorm events which impacted states in both the Southern and Midwest U.S. during March 2023 (“Q1 2023 Large Loss Events”), and a series of large, severe weather events that impacted Texas and other southern and central U.S. states in June 2023. Net negative impact on net income (loss) available (attributable) to RenaissanceRe common shareholders for the three months ended June 30, 2023 includes an increase of approximately $20.0 million in the net negative impact of the Q1 2023 Large Loss Events during the second quarter.

Previous wording

Gross premiums written in the catastrophe class of business were $1.3 billion in the first quarter of 2024, an increase of $412.5 million, or 44.4%, compared to the first quarter of 2023. This increase was principally driven by the renewal of business acquired in the Validus Acquisition, in conjunction with the retention of legacy lines, at the January 1, 2024 renewal.

Current wording

Gross premiums written in the catastrophe class of business were $1.3 billion in the second quarter of 2024, an increase of $262.8 million, or 26.2%, compared to the second quarter of 2023. This increase was principally driven by the renewal of business acquired in the Validus Acquisition, in conjunction with the retention of legacy lines, at the June 1, 2024 renewal.

Previous wording

Impacting the underwriting result and combined ratio in the first quarter of 2024 was the Baltimore Bridge Collapse, which resulted in a net negative impact on the Property segment underwriting result of $19.1 million and added 2.0 percentage points to the Property segment combined ratio, all within the other property class of business. Impacting the underwriting result and combined ratio in the first quarter of 2023 were the Q1 2023 Large Loss Events, which resulted in a net negative impact on the Property segment underwriting result of $79.1 million and added 11.8 percentage points to the Property segment combined ratio, reflecting impacts in both the catastrophe and other property classes of business.

Current wording

Impacting the underwriting result and combined ratio in the second quarter of 2024 were the Q2 2024 Large Loss Events, which resulted in a net negative impact on the Property segment underwriting result of $63.0 million and added 7.0 percentage points to the Property segment combined ratio, reflecting impacts in both the catastrophe and other property class of business. Impacting the underwriting result and combined ratio in the second quarter of 2023 were the 2023 Large Loss Events, which resulted in a net negative impact on the Property segment underwriting result of $68.5 million and added 10.8 percentage points to the Property segment combined ratio, reflecting impacts in both the catastrophe and other property classes of business.

Previous wording

Net premiums written in our Casualty and Specialty segment increased by $558.1 million, or 44.9%, to $1.8 billion, in the first quarter of 2024, compared to $1.2 billion in the first quarter of 2023, consistent with the changes in gross premiums written and quota share retrocessional coverage purchased as discussed above.

Current wording

Net premiums written in our Casualty and Specialty segment increased by $428.7 million, or 40.8%, to $1.5 billion, in the second quarter of 2024, compared to $1.1 billion in the second quarter of 2023, consistent with the changes in gross premiums written and quota share retrocessional coverage purchased as discussed above.

Previous wording

The table above shows total fee income earned through third-party capital management activities, including various joint ventures, managed funds and certain structured retrocession agreements to which we are a party. Performance fees are based on the performance of the individual vehicles or products, and may be zero or negative in a particular period if, for example, large losses occur, which can potentially result in no performance fees or the reversal of previously accrued performance fees. Joint ventures include DaVinci, Top Layer, Vermeer, and Fontana. Managed funds includes Upsilon Fund and Medici, as well as fee income earned by AlphaCat Managers, which was acquired as part of the Validus Acquisition. Structured reinsurance products and other includes certain reinsurance contracts and certain other vehicles through which we transfer risk to third-party capital.

Current wording

The table above shows total fee income earned through third-party capital management activities, including various joint ventures, managed funds and certain structured retrocession agreements to which we are a party. Performance fees are based on the performance of the individual vehicles or products and may be zero or negative in a particular period if, for example, large losses occur, which can potentially result in no performance fees or the reversal of previously accrued performance fees. Joint ventures include DaVinci, Top Layer, Vermeer, and Fontana. Managed funds include Upsilon Fund and Medici, as well as fee income earned by AlphaCat Managers, which was acquired as part of the Validus Acquisition. Structured reinsurance products and other includes certain reinsurance contracts and certain other vehicles through which we transfer risk to third-party capital.

Previous wording

In the first quarter of 2024, total fee income earned through third-party capital management activities increased $38.8 million, to $83.6 million, compared to $44.8 million in the first quarter of 2023, due to higher management and performance fee income in the first quarter of 2024 compared to the first quarter of 2023. Management fee income increased $15.1 million compared to the first quarter of 2023, driven by increased capital managed at DaVinci, Fontana and Medici, as well as the addition of fees earned by AlphaCat Managers. Performance fee income increased $23.6 million compared to the first quarter of 2023, driven by current underwriting year results and favorable development on prior year events, primarily in DaVinci.

Current wording

Management fee income increased $11.9 million compared to the second quarter of 2023, driven by increased capital managed at DaVinci and Fontana, as well as the addition of fees earned by AlphaCat Managers.

Previous wording

(1)Reflects total fee income earned through third-party capital management as well as various joint ventures, managed funds and certain structured retrocession agreements to which we are a party, recorded through underwriting income (loss) as a decrease (increase) to operational expenses or acquisition expenses. The $14.7 million includes $15.1 million of management fee income, recorded as a reduction to operational expenses and $(0.4) million of performance fee income recorded as an increase to acquisition expenses (2023 - $13.1 million, $11.6 million and a reduction of $1.6 million, respectively).

Current wording

(1)Reflects total fee income earned through third-party capital management activities recorded through underwriting income (loss) as a decrease (increase) to operational expenses or acquisition expenses. The $13.0 million includes $12.9 million of management fee income, recorded as a reduction to operational expenses and $0.1 million of performance fee income recorded as a reduction to acquisition expenses (2023 - $8.2 million, $11.2 million and an increase of $3.0 million, respectively).

Previous wording

In addition to the $83.6 million of fee income earned through our third-party capital management activities that was recorded through underwriting income (loss), as detailed above, we also earn additional fee income on certain other underwriting-related activities. These fees, in the aggregate, are recorded as a reduction to operational expenses or acquisition expenses, as applicable. The total fees recorded through underwriting income (loss) are detailed in the table below.

Current wording

In addition to the $13.0 million of fee income earned through our third-party capital management activities that was recorded through underwriting income (loss), as detailed above, we also earn additional fee income on certain other underwriting-related activities. These fees, in the aggregate, are recorded as a reduction to operational expenses or acquisition expenses, as applicable. The total fees recorded through underwriting income (loss) are detailed in the table below.

Previous wording

Net investment income was $390.8 million in the first quarter of 2024, compared to $254.4 million in the first quarter of 2023, an increase of $136.4 million. This increase was primarily driven by higher average invested assets, primarily resulting from the Validus Acquisition, and higher yielding assets in the fixed maturity and short term portfolios.

Current wording

Net investment income was $410.8 million in the second quarter of 2024, compared to $292.7 million in the second quarter of 2023, an increase of $118.2 million. This increase was primarily driven by higher average invested assets, primarily resulting from the Validus Acquisition, and higher yielding assets in the fixed maturity and short term portfolios.

Previous wording

(1)Net realized and unrealized gains (losses) on investment-related derivatives includes fixed maturity investments related derivatives (interest rate futures, interest rate swaps, and credit default swaps), equity investments related derivatives (equity futures) and commodity investments related derivatives (commodity futures and commodity options). See “Note 13. Derivative Instruments” in our “Notes to Consolidated Financial Statements” for additional information.

Current wording

(1)Net realized and unrealized gains (losses) on investment-related derivatives includes fixed maturity investments related derivatives (interest rate futures and credit default swaps), equity investments related derivatives (equity futures) and commodity investments related derivatives (commodity futures and commodity options). See “Note 13. Derivative Instruments” in our “Notes to Consolidated Financial Statements” for additional information.

Previous wording

Net realized and unrealized losses on investments were $213.7 million in the first quarter of 2024, compared to net realized and unrealized gains of $279.5 million in the first quarter of 2023. Principally impacting our net realized and unrealized losses on investments in the first quarter of 2024 were:

Current wording

Net realized and unrealized losses on investments were $127.6 million in the second quarter of 2024, compared to net realized and unrealized losses of $222.8 million in the second quarter of 2023. Principally impacting our net realized and unrealized losses on investments in the second quarter of 2024 were:

Previous wording

In the first quarter of 2024, net foreign exchange losses were $35.7 million compared to $14.5 million in the first quarter of 2023. The net foreign exchange losses in the first quarter of 2024 and 2023 were primarily driven by losses attributable to third-party investors in Medici which are allocated through net income (loss) attributable to redeemable noncontrolling interest.

Current wording

In the second quarter of 2024, net foreign exchange losses were $8.8 million compared to $13.5 million in the second quarter of 2023. The net foreign exchange losses in the second quarter of 2024 and 2023 were primarily driven by losses attributable to third-party investors in Medici which are allocated through net income (loss) attributable to redeemable noncontrolling interest, in addition to the impact of certain foreign exchange exposures related to our underwriting activities.

Previous wording

Equity in earnings of other ventures represents our pro-rata share of the net income from our investments in the Tower Hill Companies, Top Layer, and our equity investments in a select group of insurance and insurance-related companies, which are included in Other. Except for Top Layer, which is recorded on a current quarter basis, equity in earnings of other ventures is recorded one quarter in arrears. The carrying value of these investments on our consolidated balance sheets, individually or in the aggregate, may differ from the realized value we may ultimately attain, perhaps significantly so.

Current wording

Equity in earnings of other ventures represents our pro-rata share of the net income from our investments in a select group of insurance and insurance-related companies, including the Tower Hill Companies and Top Layer. Except for Top Layer, which is recorded on a current quarter basis, equity in earnings of other ventures is recorded one quarter in arrears. The carrying value of these investments on our consolidated balance sheets, individually or in the aggregate, may differ from the realized value we may ultimately attain, perhaps significantly so.

Previous wording

Earnings from our investments in other ventures were $14.1 million in the first quarter of 2024, compared to $9.5 million in the first quarter of 2023, an increase of $4.6 million. The increase was principally driven by increased profitability of our equity investments during the first quarter of 2024, primarily driven by certain insurance and insurance-related companies included in Other, which reported higher net income in the first quarter of 2024 as compared to the first quarter of 2023 as a result of negative fair value movements within the underlying portfolios of strategic investments in the prior period.

Current wording

Earnings from our investments in other ventures were $12.6 million in the second quarter of 2024, compared to $7.7 million in the second quarter of 2023, an increase of $4.9 million. The increase was principally driven by increased profitability of our equity investments during the second quarter of 2024, as certain insurance and insurance-related companies reported higher net income in the second quarter of 2024 compared to the second quarter of 2023, as a result of negative fair value movements within their underlying investment portfolios in the prior period.

Previous wording

Corporate expenses were $39.3 million in the first quarter of 2024, compared to $12.8 million in the first quarter of 2023, an increase of $26.4 million which was primarily driven by $20.3 million of expenses associated with the Validus Acquisition. We expect to incur additional costs and expenses associated with the Validus Acquisition. These additional non-recurring costs may be significant, and it is possible that our ultimate costs will exceed our current estimates.

Current wording

Corporate expenses were $35.2 million in the second quarter of 2024, compared to $23.4 million in the second quarter of 2023, an increase of $11.8 million, which was primarily driven by $17.3 million of expenses associated with the Validus Acquisition, compared to $11.3 million in the comparative quarter. We expect to incur additional costs and expenses associated with the Validus Acquisition. These additional non-recurring costs may be significant, and it is possible that our ultimate costs will exceed our current estimates.

Previous wording

We recognized an income tax expense of $15.4 million in the first quarter of 2024, compared to $28.9 million in the first quarter of 2023. The decrease in income tax expense was primarily driven by investment losses in the first quarter of 2024 compared to investment gains in the first quarter of 2023, partially offset by increased underwriting and net investment income in the first quarter of 2024 compared to the first quarter of 2023.

Current wording

We recognized an income tax benefit of $20.8 million in the second quarter of 2024, compared to an income tax expense of $5.9 million in the second quarter of 2023. The decrease in income tax expense was primarily driven by a $33.7 million deferred tax benefit resulting from the merger of RREAG and Validus Switzerland, partially offset by higher income tax expense as a result of increased underwriting and net investment income in the second quarter of 2024 compared to the second quarter of 2023.

Previous wording

Our net income (loss) attributable to redeemable noncontrolling interests was $244.8 million in the first quarter of 2024, compared to $267.4 million in the first quarter of 2023, a change of $22.6 million. This decrease was primarily due to the following:

Current wording

Our net income (loss) attributable to redeemable noncontrolling interests was $224.7 million in the second quarter of 2024, compared to $174.9 million in the second quarter of 2023, an increase of $49.8 million. This increase was primarily due to the following:

Previous wording

•DaVinci, which had a decrease in net income in the first quarter of 2024 compared to the first quarter of 2023, primarily resulting from an increase in net realized and unrealized losses on its investments, partially offset by an increase in underwriting income; and

Current wording

•Medici, which had a decrease in net income in the second quarter of 2024 compared to the second quarter of 2023, primarily resulting from a decrease in net realized and unrealized gains on catastrophe bonds, and partially offset by a decrease in net foreign exchange losses.

Previous wording

Notwithstanding our strong results in the first quarter of 2024, our underwriting results in the first quarter of 2024 were impacted by the Baltimore Bridge Collapse, which resulted in a net negative impact on the underwriting result of $79.9 million and added 3.3 percentage points to the consolidated combined ratio, primarily within the Casualty and Specialty segment. This compares to the first quarter of 2023, which was impacted by the Q1 2023 Large Loss Events, which resulted in a net negative impact on the underwriting result of $79.1 million and added 4.7 percentage points to the consolidated combined ratio, all in the Property segment;

Current wording

Included in our underwriting results in the six months ended June 30, 2024 was the impact of the 2024 Large Loss Events, which resulted in a net negative impact on the underwriting result of $142.5 million and added 2.9 percentage points to the consolidated combined ratio. In comparison, our underwriting results in the six months ended June 30, 2023 were impacted by the 2023 Large Loss Events, which resulted in a net negative impact on the underwriting result of $147.6 million and added 4.5 percentage points to the combined ratio, all within our Property segment;

Previous wording

(1)“2024 Large Loss Events” represents the collapse of the Francis Scott Key Bridge in Baltimore following a collision with a cargo ship in March 2024 (the “Baltimore Bridge Collapse”).

Current wording

(1)“2024 Large Loss Events” includes: the collapse of the Francis Scott Key Bridge in Baltimore following a collision with a cargo ship in March 2024; a series of severe convective storms that impacted the southern and Midwest United States; the Hualien earthquake which impacted Taiwan in April 2024; and certain aggregate loss contracts triggered during 2024.

Previous wording

The net claims and claim expense ratio in the first quarter of 2024 of 16.5% is comprised of a current accident year net claims and claim expense ratio of 26.6% and 10.1 percentage points of net favorable development of prior accident years. In comparison, the first quarter of 2023 had a net claims and claim expense ratio of 27.3%, comprised of a current accident year net claims and claim expense ratio of 39.2% and 11.9 percentage points of net favorable development of prior accident years. The decrease of 12.6 percentage points in the current accident year net claims and claim expense ratio is primarily as a result of a lower impact from the Baltimore Bridge Collapse , which contributed 2.0 percentage points to the current accident year net claims and claim expense ratio in the first quarter of 2024, compared to the Q1 2023 Large Loss Events, which contributed 11.7 percentage points in the first quarter of 2023.

Current wording

The net claims and claim expense ratio of 22.3% was comprised of a current accident year net claims and claim expense ratio of 31.6% and 9.3 percentage points of net favorable development on prior accident years, primarily in the catastrophe class of business in the 2021 to 2023 accident years. In comparison, the six months ended June 30, 2023 had a net claims and claim expense ratio of 32.5%, comprised of a current accident year net claims and claim expense ratio of 40.3% and 7.8 percentage points of net favorable development on prior accident years. The decrease of 8.7 percentage points in the current accident year net claims and claim expense ratio is primarily as a result of a lower impact from the 2024 Large Loss Events which contributed 4.8 percentage points to the current accident year net claims and claim expense ratio in the six months ended June 30, 2024, compared to 11.6 percentage points in the six months ended June 30, 2023.

Previous wording

The underwriting expense ratio decreased 2.9 percentage points, largely driven by an increase in net earned premiums as well as continued relative growth in the catastrophe class of business, which has a lower acquisition expense ratio than the other property class of business, partially offset by the increase in acquisition expenses from purchase accounting adjustments relating to the Validus Acquisition.

Current wording

The underwriting expense ratio decreased 1.1 percentage points, largely driven by a 1.0 percentage point decrease in the operating expense ratio primarily due to an increase in net premiums earned as well as continued relative growth in the catastrophe class of business, which has a lower acquisition expense ratio than the other property class of business, partially offset by the increase in acquisition expenses from purchase accounting adjustments relating to the Validus Acquisition, which added 2.0 percentage points to the acquisition expense ratio in the six months ended June 30, 2024.

Previous wording

Ceded premiums written in our Casualty and Specialty segment increased by $56.7 million, to $298.8 million, in the first quarter of 2024, compared to $242.2 million in the first quarter of 2023, driven by the increase in gross premiums written subject to our retrocessional reinsurance programs, and partially offset by a decrease in amount of quota share retrocessional coverage purchased.

Current wording

Ceded premiums written in our Casualty and Specialty segment increased by 11.7%, to $491.4 million, in the six months ended June 30, 2024, compared to $440.1 million in the six months ended June 30, 2023, primarily driven by the increase in gross premiums written subject to our retrocessional reinsurance programs, and partially offset by a decrease in amount of quota share retrocessional coverage purchased.

Previous wording

The increase in the Casualty and Specialty segment combined ratio in the first quarter of 2024 was primarily driven by the increase of 5.3 percentage points in the net claims and claims expense ratio, mainly as a result of losses related to the Baltimore Bridge Collapse, which contributed approximately 4.2 percentage points to the current accident year net claims and claim expense ratio. In addition, the impact of purchase accounting adjustments relating to the Validus Acquisition added 2.5 percentage points to the combined ratio.

Current wording

The increase in the Casualty and Specialty segment combined ratio in the six months ended June 30, 2024 to 98.9% was principally driven by an increase of 4.2 percentage points in the net claims and claims expense ratio, mainly as a result of losses related to the Baltimore Bridge Collapse, which added approximately 2.0 percentage points to the current accident year net claims and claim expense ratio, as well as higher losses in the professional liability and credit classes of business during the second quarter.

Previous wording

•Fontana, which had a net loss in the first quarter of 2024 compared to net income in the first quarter of 2023, primarily resulting from an increase in net realized and unrealized losses on its investments; partially offset by

Current wording

•Fontana, which had a net loss in the six months ended June 30, 2024, compared to a net income in the six months ended June 30, 2023, primarily resulting from lower underwriting results, and an increase in net realized and unrealized losses on its investments, partially offset by higher net investment income in the six months ended June 30, 2024.

Previous wording

We attempt to structure our organization in a way that facilitates efficient capital movements between RenaissanceRe and our operating subsidiaries and to ensure that adequate liquidity is available when required, giving consideration to applicable laws and regulations, and the domiciliary location of sources of liquidity and related obligations. For example, our internal investment structures and cash pooling arrangements among the Company and certain of our subsidiaries help to efficiently facilitate capital and liquidity movements.

Current wording

We attempt to structure our organization in a way that facilitates efficient capital movements between RenaissanceRe and our operating subsidiaries and to ensure that adequate liquidity is available when required, giving consideration to applicable laws and regulations, and the domiciliary location of sources of liquidity and related obligations. For example, our internal investment structures and cash pooling arrangements among RenaissanceRe and certain of our subsidiaries help to efficiently facilitate capital and liquidity movements.

Previous wording

In the aggregate, our principal operating subsidiaries have historically produced sufficient cash flows to meet their expected claims payments and operational expenses and to provide dividend payments to us. In addition, our subsidiaries maintain a concentration of investments in high quality liquid securities, which management believes will provide additional liquidity for extraordinary claims payments should the need arise. However, in some circumstances, RenaissanceRe may determine it is necessary or advisable to contribute capital to our subsidiaries, or may be contractually required to contribute capital to our joint ventures or managed funds. For example, in 2023, RenaissanceRe contributed capital to RenaissanceRe Specialty U.S. to support growth in premiums. In addition, from time to time we invest in new managed joint ventures or managed funds, increase our investments in certain of our managed joint ventures or managed funds and contribute cash to investment subsidiaries, such as the launch of Fontana in 2022, an innovative joint venture dedicated to writing Casualty and Specialty risks. In certain instances, we may be required to make capital contributions to our subsidiaries or joint ventures or managed funds, for example, we have net worth maintenance agreements with certain operating subsidiaries, and Renaissance Reinsurance is obligated to make a mandatory capital contribution of up to $50.0 million in the event that a loss reduces Top Layer’s capital below a specified level.

Current wording

However, in some circumstances, RenaissanceRe may determine it is necessary or advisable to contribute capital to our subsidiaries or may be contractually required to contribute capital to our subsidiaries, joint ventures or managed funds. For example, in 2023, RenaissanceRe contributed capital to RenaissanceRe Specialty U.S. to support growth in premiums. In addition, from time to time we invest in new managed joint ventures or managed funds, increase our investments in certain of our managed joint ventures or managed funds and contribute cash to investment subsidiaries, such as the launch of Fontana in 2022. Examples of our contractual requirements to make capital contributions to our subsidiaries or joint ventures or managed funds include our net worth maintenance agreements with certain operating subsidiaries and Renaissance Reinsurance’s obligation to make a mandatory capital contribution of up to $50.0 million in the event that a loss reduces Top Layer’s capital below a specified level.

Previous wording

(2)RenaissanceRe owns a noncontrolling economic interest in Medici. Because RenaissanceRe controls all of Medici’s outstanding voting rights, the financial statements of Medici are included in RenaissanceRe’s consolidated financial statements. However, RenaissanceRe does not guarantee or provide credit support for Medici, and RenaissanceRe’s financial exposure to Medici is limited to its investment in Medici’s shares and counterparty credit risk arising from reinsurance transactions. At March 31, 2024, no amounts were issued or drawn under this facility.

Current wording

(2)RenaissanceRe owns a noncontrolling economic interest in Medici. Because RenaissanceRe controls all of Medici’s outstanding voting rights, the financial statements of Medici are included in RenaissanceRe’s consolidated financial statements. However, RenaissanceRe does not guarantee or provide credit support for Medici, and RenaissanceRe’s financial exposure to Medici is limited to its investment in Medici’s shares and counterparty credit risk arising from reinsurance transactions. The drawn amount of the Medici revolving credit facility is included on the Company’s consolidated balance sheets under debt.

Previous wording

As a member of Lloyd’s, the underwriting capacity, or stamp capacity, of Syndicate 1458 is required to be supported by providing a deposit, the FAL, in the form of cash, securities or letters of credit. At March 31, 2024, the FAL required to support the underwriting activities at Lloyd’s through Syndicate 1458 was £636.2 million (December 31, 2023 - £730.9 million). Actual FAL posted for Syndicate 1458 at March 31, 2024 by RenaissanceRe Corporate Capital (UK) Limited was $934.2 million (December 31, 2023 - $935.8 million), supported by a $225.0 million letter of credit and a $709.2 million deposit of cash and fixed maturity securities (December 31, 2023 - $225.0 million and $710.8 million, respectively). Refer to “Note 7. Debt and Credit Facilities” in our “Notes to the Consolidated Financial Statements” for additional information related to this letter of credit facility.

Current wording

As a member of Lloyd’s, the underwriting capacity, or stamp capacity, of Syndicate 1458 is required to be supported by providing a deposit, the FAL, in the form of cash, securities or letters of credit. At June 30, 2024, the FAL required to support the underwriting activities at Lloyd’s through Syndicate 1458 was £705.7 million (December 31, 2023 - £730.9 million). Actual FAL posted for Syndicate 1458 at June 30, 2024 by RenaissanceRe Corporate Capital (UK) Limited was $938.5 million (December 31, 2023 - $935.8 million), supported by a $225.0 million letter of credit and a $713.5 million deposit of cash and fixed maturity securities (December 31, 2023 - $225.0 million and $710.8 million, respectively). Refer to “Note 7. Debt and Credit Facilities” in our “Notes to the Consolidated Financial Statements” for additional information related to this letter of credit facility.