RENAISSANCERE HOLDINGS LTD

SUMMARY OF RESULTS OF OPERATIONS

Results of Operations Overview

Net income available to RenaissanceRe common shareholders was $161.1 million in the first quarter of 2025, compared to $364.8 million in the first quarter of 2024, a decrease of $203.7 million. As a result, in the first quarter of 2025 we generated an annualized return on average common equity of 6.6%, and our book value per common share increased from $195.77 at December 31, 2024 to $196.18 at March 31, 2025, a 0.4% increase, after considering the change in accumulated dividends paid to our common shareholders.

Significant items affecting our financial performance during the first quarter of 2025 included:

•Underwriting Results

–underwriting loss of $770.6 million, a decrease of $1.3 billion, driven primarily by the impact of the 2025 Large Loss Events

–combined ratio increased by 50.4 percentage points, primarily driven by 52.6 percentage points from the 2025 Large Loss Events

–$702.8 million net negative impact on net income available to RenaissanceRe common shareholders from the 2025 Large Loss Events, compared to $54.5 million in the first quarter of 2024 from the 2024 Large Loss Events

–gross premiums written increased by $164.8 million

•Investment Results

–total investment result increased by $561.2 million, driven by:

–increase of $546.6 million in net realized and unrealized gains on investments

–increase in net investment income of $14.6 million

•Fee Income

–income of $30.5 million, impacted by the 2025 Large Loss Events

•Net Income (Loss) Attributable to Redeemable Noncontrolling Interests

–loss of $195.3 million, compared to income of $244.8 million in the first quarter of 2024, primarily resulting from underwriting losses from the California Wildfires

•Income Tax Benefit (Expense)

–benefit of $45.5 million, compared to an expense of $15.4 million in the first quarter of 2024

Net Negative Impact

Net negative impact on underwriting result includes the sum of (1) net claims and claim expenses incurred, (2) assumed and ceded reinstatement premiums earned and (3) earned and lost profit commissions. Net negative impact on net income (loss) available (attributable) to RenaissanceRe common shareholders is the sum of (1) net negative impact on underwriting result, (2) redeemable noncontrolling interest and (3) income tax benefit (expense) beginning in the first quarter of 2025. Prior to January 1, 2025, net negative impact on net income (loss) available (attributable) to RenaissanceRe common shareholders did not include any related income tax benefit (expense) as it was not meaningful prior to the implementation of the corporate income tax in Bermuda effective January 1, 2025.

Our estimates of net negative impact are based on a review of our potential exposures, preliminary discussions with certain counterparties and actuarial modeling techniques. Our actual net negative impact, both individually and in the aggregate, may vary from these estimates, perhaps materially. Changes in these estimates will be recorded in the period in which they occur.

Meaningful uncertainty remains regarding the estimates and the nature and extent of the losses from these catastrophe events, driven by the magnitude and recent nature of the events, the geographic areas impacted by the events, relatively limited claims data received to date, the contingent nature of business interruption and other exposures, potential uncertainties relating to reinsurance recoveries and other factors inherent in loss estimation, among other things.

Q1 2025 Net Negative Impact

The financial data below provides additional information detailing the net negative impact of the 2025 Large Loss Events on our segment underwriting results and consolidated combined ratio in the first quarter of 2025.

The financial data below provides additional information detailing the net negative impact of the 2025 Large Loss Events on our consolidated financial statements in the first quarter of 2025.

(1)The “California Wildfires” were a series of wildfires that burned throughout southern California in January 2025.

(2)“Other 2025 Large Loss Events” represents: the crash of American Airlines flight 5342 in January 2025, and certain refinery fires in the first quarter of 2025.

(3)“2025 Large Loss Events” includes the California Wildfires and the Other 2025 Large Loss Events.

Q1 2024 Net Negative Impact

The financial data below provides additional information detailing the net negative impact of the 2024 Large Loss Events on our segment underwriting results and consolidated combined ratio in the first quarter of 2024.

The financial data below provides additional information detailing the net negative impact of the 2024 Large Loss Events on our consolidated financial statements in the first quarter of 2024.

(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”).

Underwriting Results by Segment

Property Segment

Below is a summary of the underwriting results and ratios for our Property segment:

Property Gross Premiums Written

•increased by $241.0 million, or 12.7%, driven by:

–an increase of $325.5 million, or 24.3%, in the catastrophe class, driven by $338.4 million of reinstatement premiums, primarily related to the California Wildfires;

–otherwise, gross premiums written in the catastrophe class remained relatively flat, with rate reductions at the January 1st renewals largely offset by other opportunities for growth.

–a decrease of $84.6 million, or 15.4%, in the other property class, driven by:

–downwards premium adjustments on prior underwriting years, largely in catastrophe exposed business.

Property Ceded Premiums Written

Due to the potential volatility of the reinsurance contracts which we sell, we purchase reinsurance to reduce our exposure to large losses and to help manage our risk portfolio. To the extent that appropriately priced coverage is available, we anticipate continued use of retrocessional reinsurance to reduce the impact of large losses on our financial results and to manage our portfolio of risk; however, the buying of ceded reinsurance in our Property segment is based on market opportunities and is not based on placing a specific reinsurance program each year.

•Ceded premiums written decreased $52.4 million, or 10.6%, as part of our gross-to-net strategy, driven by:

–reduced ceded spend and limit purchased, largely within our other property class, and

–reduced utilization of Upsilon, which was not deployed at the January 1st renewals.

Property Net Premiums Written

•increased by $293.4 million, or 21.0%, driven by the increase in gross premiums written, partially offset by the decrease in ceded premiums written.

Property Underwriting Results

•Underwriting loss of $607.2 million, driven by:

–a $1.2 billion impact from the California Wildfires

•Net claims and claim expense ratio increased 113.6 percentage points, driven by:

–a 118.5 percentage points increase in the current accident year net claims and claim expense ratio

–this included a 117.2 percentage point impact from the California Wildfires, compared to 2.0 percentage points from the 2024 Large Loss Events in the first quarter of 2024.

–In the catastrophe class, the 164.7 percentage point increase in the current accident year net claims and claim expense ratio was primarily due to a 159.4 percentage point impact from the California Wildfires.

–In the other property class, the 28.6 percentage point increase in the current accident year net claims and claim expense ratio was primarily driven by a 29.6 percentage point impact from the California Wildfires, compared to the 2024 Large Loss Events which added 4.8 percentage points in the first quarter of 2024.

–included in the net claims and claim expense ratio was net favorable development of 15.0%, primarily driven by:

–net favorable development of $67.4 million from the catastrophe class, primarily driven by the weather-related large losses in 2021, 2022 and 2023; and

–net favorable development of $119.7 million in the other property class, primarily from attritional losses.

•Underwriting expense ratio decreased by 7.8 percentage points, driven by:

–a 6.4 percentage point decrease in the acquisition expense ratio, driven by:

–a 4.2 percentage point decrease from the increase in net reinstatement premiums primarily related to the California Wildfires; and

–a 1.7 percentage point decrease primarily reflecting an adjustment to profit commission as a result of the impact of the California Wildfires on the results of operations of DaVinci, which was principally offset in noncontrolling interests, resulting in no net earnings impact from this adjustment.

–a 1.4 percentage point decrease in the operating expense ratio, primarily due to net reinstatement premiums of $335.3 million.

•Combined ratio of 148.7%, which included a 113.5 percentage point impact from the California Wildfires.

•Net negative impact on the property segment underwriting result of $1.2 billion from the California Wildfires.

–compared to the 2024 Large Loss Events, which had a $19.1 million net negative impact on the property segment underwriting result and added 2.0 percentage points to the combined ratio in the first quarter of 2024.

See “Note 6. Reserve for Claims and Claim Expenses” in our “Notes to the Consolidated Financial Statements” for additional information related to the prior year development of net claims and claim expenses.

Casualty and Specialty Segment

Below is a summary of the underwriting results and ratios for our Casualty and Specialty segment:

Casualty and Specialty Gross Premiums Written

•decreased by $76.1 million, or 3.6%, driven by:

–changes in premium estimates on business written in prior underwriting years, resulting in an increase in the general casualty class of 15.6% and decreases in the professional liability and other specialty classes of 36.0% and 11.3%, respectively; partially offset by

–an increase of 16.1% in the credit class, primarily due to growth on our existing mortgage book of business.

Casualty and Specialty Ceded Premiums Written

We purchase reinsurance to reduce our exposure to large losses and to help manage our risk portfolio. To the extent that appropriately priced coverage is available, we anticipate continued use of retrocessional reinsurance to reduce the impact of large losses on our financial results and to manage our portfolio of risk. As in our Property segment, the buying of ceded reinsurance in our Casualty and Specialty segment is based on market opportunities and is not based on placing a specific reinsurance program each year.

•Ceded premiums written decreased by $26.7 million, driven by:

–a decrease in gross premiums written subject to our retrocessional reinsurance programs.

Casualty and Specialty Net Premiums Written

•decreased by $49.4 million, or 2.7%, consistent with the changes in gross premiums written as discussed above.

Casualty and Specialty Underwriting Results

•Underwriting loss of $163.4 million, included:

–a $135.4 million impact from the 2025 Large Loss Events, and

–$33.7 million from purchase accounting related expense.

•Combined ratio increased 11.5 percentage points, primarily due to the impact of the 2025 Large Loss Events

–The current period combined ratio of 111.1% included a 9.2 percentage point impact from the 2025 Large Loss Events, and 2.3 percentage points, primarily related to premium adjustments and ceded impacts.

•Net claims and claim expense ratio increased by 9.0 percentage points, and included:

–a 9.4 percentage point increase in the current accident year net claims and claim expense ratio, which included 9.7 percentage points from the impact of the 2025 Large Loss Events

–a prior accident year net claims and claim expense ratio of 0.6 percentage points, reflecting net favorable development principally driven by reported losses generally coming in lower than expected on attritional net claims and claim expenses from the other specialty and credit classes, partially offset by adverse development from the general liability line.

•Underwriting expense ratio increased 2.5 percentage points, driven by:

–a 3.0 percentage point increase in the acquisition expense ratio, principally driven by various items including changes in mix of business from increased mortgage premium, which carries higher acquisition costs, as well as ceded impacts and other premium development in the quarter; and partially offset by

–a decrease in the operating expense ratio mainly due to a decrease in performance based compensation expenses.

See “Note 6. Reserve for Claims and Claim Expenses” in our “Notes to the Consolidated Financial Statements” for additional information related to the prior year development of net claims and claim expenses.

Our relative mix of business between proportional business and excess of loss business has fluctuated in the past and will likely continue to do so in the future. Proportional business, which represents the majority of our Casualty and Specialty segment business, typically has a higher expense ratio and tends to be exposed to more attritional and frequent losses, while being subject to less expected severity compared to traditional excess of loss business.

Fee Income

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, Medici and Medici UCITS. In addition, we manage certain third party capital vehicles through AlphaCat Managers, which were acquired in connection with 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.

•total fee income decreased $53.1 million, due to:

–a decrease in management fee income of $10.0 million, driven by:

–a reduction in management fees from DaVinci as a result of the 2025 Large Loss Events, and

–recapture of previously deferred management fees in the prior quarter.

–a decrease in performance fees of $43.1 million as a result of the 2025 Large Loss Events, primarily impacting DaVinci and our structured reinsurance products.

The fees earned through third-party capital management activities are principally recorded through redeemable noncontrolling interest, or as an increase to underwriting income through a decrease in operational expenses or acquisition expenses. Below is a summary of the impact of fee income on the applicable financial statement line items.

(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 $39.4 million includes $12.4 million of management fee income, recorded as a reduction to operational expenses and $27.0 million of performance fee income recorded as a reduction to acquisition expenses (2024 - $14.7 million, $15.1 million and an increase of $0.4 million, respectively). The $27.0 million of performance fee income includes an adjustment to profit commission as a result of the impact of the 2025 Large Loss Events on the results of operations of DaVinci, which was principally offset in noncontrolling interest, resulting in no net earnings impact from this adjustment.

In addition to the $39.4 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.

(1)The $57.0 million includes $27.2 million of management fee income, recorded as a reduction to operational expenses and $29.8 million of performance fee income recorded as a reduction to acquisition expenses (2024 - $34.0 million, $32.5 million and $1.5 million, respectively).

Investment Results

Net Investment Income

•Net investment income increased $14.6 million, primarily due to higher average invested assets in the fixed maturity investments portfolio.

Net Realized and Unrealized Gains (Losses) on Investments

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

We structure our investment portfolio to emphasize the preservation of capital and the availability of liquidity to meet our claims obligations, to be well diversified across market sectors, and to generate relatively attractive returns on a risk-adjusted basis over time. A large majority of our investments are invested in the fixed income markets and, therefore, our realized and unrealized holding gains and losses on investments are highly correlated to fluctuations in interest rates. As interest rates decline, we will tend to have realized and unrealized gains from our investment portfolio, and as interest rates rise, we will tend to have realized and unrealized losses from our investment portfolio.

Principally impacting our net realized and unrealized gains on investments in the first quarter of 2025 were:

•net realized and unrealized gains on our fixed maturity investments trading portfolio, primarily due to:

–decreases in market yields in the first quarter of 2025 compared to increases in the first quarter of 2024;

•net realized and unrealized gains on investment-related derivatives, primarily as a result of:

–the impact of the market yield movements noted above on interest rate futures, and

–commodity price movements favorably impacting commodity futures, including gold futures;

•partially offset by increases in net realized and unrealized losses on catastrophe bonds, reflective of widening risk spreads and principal markdowns following wildfires exposures during the quarter.

–The net realized and unrealized losses are primarily reflected in the Medici portfolio, and are predominantly attributable to third-party investors and allocated through net income (loss) attributable to redeemable noncontrolling interest.

Net Foreign Exchange Gains (Losses)

Our functional currency is the U.S. dollar. We routinely write a portion of our business in currencies other than U.S. dollars and invest a portion of our cash and investment portfolio in those currencies. We are primarily impacted by foreign currency exposures associated with our underwriting operations and our investment portfolio, and may, from time to time, enter into foreign currency forward and option contracts to minimize the effect of fluctuating foreign currencies on the value of non-U.S. dollar denominated assets and liabilities.

•a decrease in net foreign exchange losses of $28.4 million, driven by:

–losses on certain foreign exchange exposures related to our underwriting activities, partially offset by

–gains attributable to third-party investors in Medici which are allocated through net income (loss) attributable to redeemable noncontrolling interest.

Refer to “Part II, Item 7A. Quantitative and Qualitative Disclosures About Market Risk” in our Form 10-K for the year ended December 31, 2024 for additional information related to our exposure to foreign currency risk and “Note 13. Derivative Instruments” in our “Notes to the Consolidated Financial Statements” for additional information related to foreign currency forward and option contracts we have entered into.

Equity in Earnings (Losses) of Other Ventures

Equity in earnings (losses) 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 (losses) 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.

Corporate Expenses

Corporate expenses include certain executive, director, legal and consulting expenses, costs for research and development, and other miscellaneous costs, including those associated with operating as a publicly traded company, as well as costs incurred in connection with the acquisition of Validus. From time to time, we may revise the allocation of certain expenses between corporate and operational expenses to better reflect the characteristic of the underlying expense.

•decreased by $16.4 million, primarily driven by:

–lower expenses associated with the Validus Acquisition, with $1.4 million in the first quarter of 2025, compared to $20.3 million in the first quarter of 2024.

Income Tax Benefit (Expense)

We are subject to income taxes in the jurisdictions in which we operate. Through December 31, 2024, we were not subject to any income taxes or capital gains taxes in Bermuda. The Bermuda CIT became effective on January 1, 2025. Therefore, our profits generated on or after January 1, 2025 in Bermuda (except for profits earned by our joint ventures and managed funds) are subject to a 15% CIT. Furthermore, we generally expect that the profits generated in Bermuda on or after January 1, 2025 by our joint ventures and managed funds, except to the extent those profits are attributable to redeemable noncontrolling interests, will also be taxed at 15% as a result of the enactment or expected enactment of provisions similar to the GloBE Rules by many of the jurisdictions in which we operate. Our consolidated effective tax rate has increased in 2025 as a result of these changes. Our effective tax rate, which is based upon the expected annual effective tax rate, may fluctuate from period to period based on the relative mix of income or loss reported by jurisdiction and the varying tax rates in each jurisdiction.

•Income tax benefit of $45.5 million, compared to an expense of $15.4 million in the first quarter of 2024, primarily driven by:

–a $37.3 million tax benefit recorded due to the release of a valuation allowance against a specific deferred tax asset;

–a $125.7 million tax benefit due to the 2025 Large Loss Events; and partially offset by

–$117.5 million of net tax expense related to investment income, net mark-to-market gains and other items.

Net Income (Loss) Attributable to Redeemable Noncontrolling Interests

Our net loss attributable to redeemable noncontrolling interests was $195.3 million in the first quarter of 2025, compared to income of $244.8 million in the first quarter of 2024, a decrease of $440.1 million. This decrease was primarily due to the following:

•DaVinci, which had a net loss in the first quarter of 2025 compared to net income in the first quarter of 2024, primarily resulting from underwriting losses from the 2025 Large Loss Events;

•Vermeer, which had a net loss in the first quarter of 2025 compared to net income in the first quarter of 2024, primarily resulting from underwriting losses from the California Wildfires;

•Medici, which had a decrease in net income in the first quarter of 2025 compared to the first quarter of 2024, primarily resulting from mark-to-market losses in its catastrophe bond portfolio, driven by the California Wildfires, as well as a decrease in the principal of its catastrophe bond portfolio as a result of a transfer in kind to Medici UCITS on March 3, 2025; and

•Fontana, which had net income in the first quarter of 2025 compared to a net loss in the first quarter of 2024, primarily resulting from improved total investment results in the current period.

Refer to “Note 8. Noncontrolling Interests” in our “Notes to the Consolidated Financial Statements” for additional information regarding our redeemable noncontrolling interests.