RENAISSANCERE HOLDINGS LTD

Previous wording

The following is a discussion and analysis of our results of operations for the three months ended March 31, 2025 and 2024, as well as our liquidity and capital resources at March 31, 2025. 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, 2024. 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, 2025 and 2024, as well as our liquidity and capital resources at June 30, 2025. 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, 2024. 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 expenses primarily consist of: (1) net claims and claim expenses incurred on the policies of reinsurance and insurance we sell; (2) acquisition costs, which typically represent a percentage of the premiums we write; (3) operational expenses, which primarily consist of personnel expenses, rent and other expenses; (4) corporate expenses, which include certain executive, legal and consulting expenses, costs for research and development, transaction and integration-related expenses, and other miscellaneous costs, including those associated with operating as a publicly traded company; (5) interest and dividends related to our debt, preference shares and common shares; and (6) income taxes. Historically, the majority of our income has been earned in Bermuda, which did not have a corporate income tax, so the tax impact to our operations has been minimal. On December 27, 2023, the Government of Bermuda announced the implementation of a 15% corporate income tax (“CIT”) which 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. 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. These changes have impacted our results for the first quarter of 2025, and we expect our income taxes will increase in the future. We believe that the flexible global operating model that we have utilized will continue to prove resilient.

Current wording

Our expenses primarily consist of: (1) net claims and claim expenses incurred on the policies of reinsurance and insurance we sell; (2) acquisition costs, which typically represent a percentage of the premiums we write; (3) operational expenses, which primarily consist of personnel expenses, rent and other expenses; (4) corporate expenses, which include certain executive, legal and consulting expenses, costs for research and development, transaction and integration-related expenses, and other miscellaneous costs, including those associated with operating as a publicly traded company; (5) interest and dividends related to our debt, preference shares and common shares; and (6) income taxes. Historically, the majority of our income has been earned in Bermuda, which did not have a corporate income tax, so the tax impact to our operations has been minimal. On December 27, 2023, the Government of Bermuda announced the implementation of a 15% corporate income tax (“CIT”), which 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. 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. These changes have, and are expected to, impact our results in the future. We believe that the flexible global operating model that we have utilized will continue to prove resilient.

Previous wording

In March 2025 we launched Medici UCITS, a new Irish domiciled property catastrophe bond fund, a sub-fund of RenaissanceRe Medici ICAV. Medici UCITS is purpose-built to provide European and other global investors with access to RenaissanceRe’s catastrophe bond investment strategy through a dedicated European-regulated UCITS structure. Medici UCITS launched with $341.5 million in total capital, made up of a combination of primarily existing partner capital, new partner capital and a $140.0 million co-investment from the Company. At launch, Medici UCITS was seeded by a transfer in kind of catastrophe bonds of Medici. Medici UCITS is intended to complement the Company’s existing catastrophe bond fund, Medici, and both Medici UCITS and Medici share substantially similar investment guidelines and risk appetites. Medici is consolidated within the results of the Company, whereas Medici UCITS is not controlled by the Company, and is therefore not consolidated within the results of the Company. The Company’s investment in Medici UCITS appears as a fund investment and is accounted for at fair value. The transactions related to the launch of Medici UCITS appear in the Company’s financial statements as a reduction in the overall net asset value of Medici of $316.5 million at March 31, 2025, and the Company’s investment in Medici UCITS appears as a fund investment of $141.1 million.

Current wording

In March 2025 we launched Medici UCITS, a new Irish domiciled property catastrophe bond fund, a sub-fund of RenaissanceRe Medici ICAV. Medici UCITS is purpose-built to provide European and other global investors with access to RenaissanceRe’s catastrophe bond investment strategy through a dedicated European-regulated UCITS structure. Medici UCITS launched with $348.7 million in total capital, made up of a combination of primarily existing partner capital, new partner capital and a $140.0 million co-investment from the Company. At launch, Medici UCITS was seeded by a transfer in kind of catastrophe bonds of Medici. Medici UCITS is intended to complement the Company’s existing catastrophe bond fund, Medici, and both Medici UCITS and Medici share substantially similar investment guidelines and risk appetites. Medici is consolidated within the results of the Company, whereas Medici UCITS is not controlled by the Company, and is therefore not consolidated within the results of the Company. The Company’s investment in Medici UCITS appears as a fund investment and is accounted for at fair value. The transactions related to the launch of Medici UCITS appear in the Company’s financial statements as a reduction in the overall net asset value of Medici of $316.5 million at June 30, 2025, and the Company’s investment in Medici UCITS appears as a fund investment of $143.5 million.

Previous wording

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.

Current wording

Net income available to RenaissanceRe common shareholders was $826.5 million in the second quarter of 2025, compared to $495.0 million in the second quarter of 2024, an increase of $331.5 million. As a result, in the second quarter of 2025 we generated an annualized return on average common equity of 33.7%, and our book value per common share increased from $196.18 at March 31, 2025 to $212.15 at June 30, 2025, an 8.3% increase, after considering the change in accumulated dividends paid to our common shareholders.

Previous wording

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

Current wording

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

Previous wording

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

Current wording

–total investment result increased by $479.6 million, driven by:

Previous wording

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

Current wording

–an increase of $477.3 million in net realized and unrealized gains on investments; and

Previous wording

–increase in net investment income of $14.6 million

Current wording

–an increase in net investment income of $2.3 million.

Previous wording

–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

Current wording

–net favorable development of $131.5 million in the catastrophe class, primarily from the weather-related large losses in 2021, 2022, and 2023; and

Previous wording

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

Current wording

•Net claims and claim expense ratio increased by 1.6 percentage points, and included:

Previous wording

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

Current wording

–a 0.9 percentage point increase in the operating expense ratio mainly due to an increase in compensation expenses.

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 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.

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, Medici and Medici UCITS. In addition, we manage certain third party capital vehicles through AlphaCat Managers, which was 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.

Previous wording

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.

Current wording

In addition to the 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 increased $14.6 million, primarily due to higher average invested assets in the fixed maturity investments portfolio.

Current wording

–higher average invested assets in the fixed maturity investments portfolio, partially offset by

Previous wording

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.

Current wording

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. As part of this strategy, we may use investment-related derivatives to obtain exposure to a particular financial market or to hedge portfolio risk. 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.

Previous wording

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

Current wording

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

Previous wording

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

Current wording

–commodity price movements favorably impacting gold futures;

Previous wording

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

Current wording

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

Previous wording

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

Current wording

–losses on certain foreign exchange exposures related to our underwriting activities.

Previous wording

–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.

Current wording

–lower expenses associated with the Validus Acquisition, with $2.0 million in the second quarter of 2025, compared to $17.3 million in the second quarter of 2024, partially offset by increased compensation expenses.

Previous wording

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.

Current wording

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% corporate income tax. 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.

Previous wording

–$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

Current wording

–a $717.4 million net negative impact on net income available to RenaissanceRe common shareholders from the 2025 Large Loss Events, compared to $105.2 million from the 2024 Large Loss Events; partially offset by

Previous wording

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.

Current wording

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 Bermuda CIT effective January 1, 2025.

Previous wording

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.

Current wording

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 six months ended June 30, 2025.

Previous wording

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.

Current wording

The financial data below provides additional information detailing the net negative impact on our consolidated financial statements in the six months ended June 30, 2025 of the 2025 Large Loss Events.

Previous wording

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.

Current wording

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 six months ended June 30, 2024.

Previous wording

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.

Current wording

The financial data below provides additional information detailing the net negative impact on our consolidated financial statements in the six months ended June 30, 2024 of the 2024 Large Loss Events.

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

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

Current wording

•Ceded premiums written decreased by $40.5 million, or 4.6%, as part of our gross-to-net strategy, driven by:

Previous wording

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

Current wording

–reduced utilization of Upsilon, which was not deployed at the January 1st renewals and with reduced deployment at the June 1st renewals; and

Previous wording

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

Current wording

–reduced ceded spend and limit purchased within our other property class, partially offset by

Previous wording

–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.

Current wording

–a 69.1 percentage point impact from the California Wildfires, compared to 4.8 percentage points from the 2024 Large Loss Events in the six months ended June 30, 2024;

Previous wording

–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.

Current wording

–a 11.0 percentage point increase in the other property class current accident year net claims and claim expense ratio, which was primarily driven by a 15.9 percentage point impact from the California Wildfires, compared to the 2024 Large Loss Events which added 5.1 percentage points in the six months ended June 30, 2024.

Previous wording

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

Current wording

–a 2.3 percentage point improvement from the increase in net reinstatement premiums primarily related to the California Wildfires; and

Previous wording

–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.

Current wording

–a 1.0 percentage point improvement 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.

Previous wording

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

Current wording

–a 0.3 percentage point improvement in the operating expense ratio, primarily due to net reinstatement premiums of $352.2 million.

Previous wording

–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.

Current wording

–compared to the 2024 Large Loss Events, which had a $81.5 million net negative impact on the property segment underwriting result and added 4.6 percentage points to the combined ratio in the six months ended June 30, 2024.

Previous wording

–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

Current wording

–decreases in the professional liability, other specialty, and general casualty classes of 13.9%, 4.8%, and 2.2%, respectively, driven principally by exposure reductions and changes in premium estimates on business underwritten in prior years; partially offset by

Previous wording

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

Current wording

–an increase of 21.2% in the credit class, primarily due to growth on our existing mortgage book of business.

Previous wording

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

Current wording

•Net premiums written decreased by $84.6 million, or 2.6%, consistent with the changes in gross premiums written and quota share retrocessional coverage purchased.