Business Wire | Jul 28, 2020 04:16PM EDT

RenaissanceRe Reports Second Quarter 2020 Net Income Available to Common Shareholders of $575.8 Million, or $12.63 Per Diluted Common Share; Operating Income Available to Common Shareholders of $190.1 Million, or $4.06 Per Diluted Common Share

Jul. 28, 2020

PEMBROKE, Bermuda--(BUSINESS WIRE)--Jul. 28, 2020--RenaissanceRe Holdings Ltd. (NYSE: RNR) (the "Company" or "RenaissanceRe") today reported net income available to RenaissanceRe common shareholders of $575.8 million, or $12.63 per diluted common share, in the second quarter of 2020, compared to net income available to RenaissanceRe common shareholders of $367.9 million, or $8.35 per diluted common share, in the second quarter of 2019. Operating income available to RenaissanceRe common shareholders was $190.1 million, or $4.06 per diluted common share, in the second quarter of 2020, compared to $198.8 million, or $4.47 per diluted common share, in the second quarter of 2019. The Company reported an annualized return on average common equity of 38.5% and an annualized operating return on average common equity of 12.7% in the second quarter of 2020, compared to 28.9% and 15.6%, respectively, in the second quarter of 2019. Book value per common share increased $17.12, or 14.6%, to $134.27 in the second quarter of 2020, compared to a 7.3% increase in the second quarter of 2019. Tangible book value per common share plus accumulated dividends increased $18.37, or 16.6%, to $150.09 in the second quarter of 2020, compared to an 8.2% increase in the second quarter of 2019.

Kevin J. O'Donnell, President and Chief Executive Officer of RenaissanceRe, commented: "I am proud of our team's performance in the second quarter, where we delivered strong financial results and accomplished several strategic goals. We demonstrated market leadership in both our Property and Casualty and Specialty segments, constructing a larger and more efficient portfolio through disciplined and focused underwriting. While COVID-19 continues to present unprecedented economic and societal challenges, we feel confident with our portfolio and raised over $1 billion of new common equity in anticipation of future opportunities that we believe will deliver long-term value for our shareholders."

Second Quarter of 2020 Summary

* Gross premiums written increased by $225.0 million, or 15.2%, to $1.7 billion, in the second quarter of 2020 compared to the second quarter of 2019, driven by an increase of $203.3 million in the Property segment and an increase of $21.6 million in the Casualty and Specialty segment. * Underwriting income of $217.1 million and a combined ratio of 78.5% in the second quarter of 2020, compared to underwriting income of $170.8 million and a combined ratio of 81.3% in the second quarter of 2019. The Property segment generated underwriting income of $200.6 million and had a combined ratio of 59.1% in the second quarter of 2020. The Casualty and Specialty segment generated underwriting income of $16.5 million and had a combined ratio of 96.8% in the second quarter of 2020. * Total investment result was a gain of $537.7 million in the second quarter of 2020, generating an annualized total investment return of 11.8%, compared to a gain of $309.8 million and an annualized total investment return of 8.0% in the second quarter of 2019. * On June 5, 2020, the Company issued 6,325,000 of its common shares in an underwritten public offering at a public offering price of $166.00 per share. Concurrently with the public offering, the Company raised $75.0 million through the issuance of 451,807 of its common shares at a price of $166.00 per share to State Farm Mutual Automobile Insurance Company, one of the Company's existing stockholders, in a private placement. The total net proceeds from the offerings were $1.1 billion. The Company intends to use the net proceeds from these offerings for general corporate purposes, which may include expanding existing business lines, entering new business lines, forming new joint ventures, or acquiring books of business from other companies. * Over $250.0 million of gross capital raised in the second quarter of 2020 through the Company's managed joint ventures and third-party capital vehicles, including Upsilon RFO Re Ltd., Vermeer Reinsurance Ltd. ("Vermeer") and RenaissanceRe Medici Fund Ltd ("Medici").

Underwriting Results by Segment

Property Segment

Gross premiums written in the Property segment were $1.0 billion in the second quarter of 2020, an increase of $203.3 million, or 24.2%, compared to $839.2 million in the second quarter of 2019.

Gross premiums written in the catastrophe class of business were $711.8 million in the second quarter of 2020, an increase of $109.1 million, or 18.1%, compared to the second quarter of 2019. This increase was primarily driven by expanded participation on existing transactions, certain new transactions and rate improvements.

Gross premiums written in the other property class of business were $330.8 million in the second quarter of 2020, an increase of $94.2 million, or 39.8%, compared to the second quarter of 2019. This increase was primarily driven by growth from existing relationships and new opportunities across a number of the Company's underwriting platforms.

Ceded premiums written in the Property segment were $338.4 million in the second quarter of 2020, an increase of $43.3 million, or 14.7%, compared to the second quarter of 2019. The increase in ceded premiums written was principally due to certain of the gross premiums written in the catastrophe class of business noted above being ceded to third-party investors in the Company's managed vehicles, primarily RenaissanceRe Upsilon Fund Ltd.

The Property segment generated underwriting income of $200.6 million in the second quarter of 2020, compared to $151.7 million in the second quarter of 2019. In the second quarter of 2020, the Property segment generated a net claims and claim expense ratio of 33.4%, an underwriting expense ratio of 25.7% and a combined ratio of 59.1%, compared to 34.6%, 29.7% and 64.3%, respectively, in the second quarter of 2019. The underwriting result and combined ratio in the second quarter of 2020 improved principally due to a decrease in the underwriting expense ratio of 4.0 percentage points compared to the second quarter of 2019, driven by lower acquisition and operating expense ratios. The decrease in operating expenses was due in part to reduced travel, marketing and office operational expenses as a result of the COVID-19 pandemic. The decrease in the net claims and claim expense ratio was primarily driven by net favorable development on prior accident years net claims and claim expenses of $6.6 million, or 1.3 percentage points, during the second quarter of 2020, resulting from reductions in the estimated ultimate losses associated with a number of small catastrophe events in prior periods. This was partially offset by higher current accident year net claims and claim expenses due to a higher level of attritional losses associated with a larger proportion of the other property class of business being earned in the period compared to the second quarter of 2019. In addition, the underwriting result was impacted by losses related to a number of small weather-related catastrophe events that occurred during the second quarter of 2020.

Casualty and Specialty Segment

Gross premiums written in the Casualty and Specialty segment were $659.3 million in the second quarter of 2020, an increase of $21.6 million, or 3.4%, as compared to the second quarter of 2019. This increase was primarily due to growth from new and existing business opportunities written in the current and prior periods across various classes of business within the segment, substantially offset by non-renewal of a portion of the business acquired in connection with the acquisition of TMR (as defined herein).

The Casualty and Specialty segment generated underwriting income of $16.5 million in the second quarter of 2020, compared to $19.0 million in the second quarter of 2019. In the second quarter of 2020, the Casualty and Specialty segment generated a net claims and claim expense ratio of 66.7%, an underwriting expense ratio of 30.1% and a combined ratio of 96.8%, compared to 63.0%, 33.1% and 96.1%, respectively, in the second quarter of 2019. The increase in the net claims and claim expense ratio of 3.7 percentage points, was principally the result of higher current accident year attritional losses in the second quarter of 2020 compared to the second quarter of 2019 from specialty lines of business. The underwriting expense ratio in the Casualty and Specialty segment decreased 3.0 percentage points, to 30.1%, in the second quarter of 2020 compared to the second quarter of 2019, driven by lower acquisition and operating expense ratios. Operating expenses were impacted by reduced travel, marketing and office operational expenses as a result of the COVID-19 pandemic.

COVID-19

The Company continues to evaluate industry trends and its own potential exposure associated with the ongoing COVID-19 pandemic, and expects historically significant industry losses to emerge over time as the full impact of the pandemic and its effects on the global economy are realized. Among other things, the Company continues to actively monitor information received from or reported by clients, brokers, industry actuaries, regulators, courts, and others, and to assess that information in the context of its own portfolio. Our loss estimates represent our best estimate based on currently available information, and actual losses may vary materially from these estimates.

Other Items

* The Company's total investment result, which includes the sum of net investment income and net realized and unrealized gains on investments, was a gain of $537.7 million in the second quarter of 2020, compared to a gain of $309.8 million in the second quarter of 2019, an increase of $227.9 million. The primary driver of the total investment result in the second quarter of 2020 was net realized and unrealized gains on investments of $448.4 million principally within the fixed maturity and equity investments trading portfolios. * Net income attributable to redeemable noncontrolling interests in the second quarter of 2020 was $118.7 million, compared to $71.8 million in the second quarter of 2019. The increase was primarily driven by growth and improved performance of DaVinciRe Holdings Ltd., Medici and Vermeer. * In the second quarter of 2020, total fee income increased by $5.3 million, to $45.5 million, compared to $40.2 million in the second quarter of 2019, primarily driven by an increase in the dollar value of capital being managed, combined with the improved underlying performance of our joint ventures and managed capital vehicles. * In the second quarter of 2020, corporate expenses decreased by $11.9 million, to $11.9 million, compared to $23.8 million in the second quarter of 2019, primarily driven by $14.5 million of expenses incurred in connection with the acquisition of Tokio Millennium Re AG (now known as RenaissanceRe Europe AG), Tokio Millennium Re (UK) Limited (now known as RenaissanceRe (UK) Limited) and their subsidiaries (collectively, "TMR") during the second quarter of 2019 compared to $2.1 million in the second quarter of 2020. * Income tax expense was $29.9 million in the second quarter of 2020, compared to $9.5 million in the second quarter of 2019, principally driven by investment gains in our U.S.-based operations.

This Press Release includes certain financial measures that are not calculated in accordance with generally accepted accounting principles in the U.S. ("GAAP") including "operating income available to RenaissanceRe common shareholders," "operating income available to RenaissanceRe common shareholders per common share - diluted," "operating return on average common equity - annualized," "tangible book value per common share" and "tangible book value per common share plus accumulated dividends." A reconciliation of such measures to the most comparable GAAP figures in accordance with Regulation G is presented in the attached supplemental financial data.

Please refer to the "Investors - Financial Reports - Financial Supplements" section of the Company's website at www.renre.com for a copy of the Financial Supplement which includes additional information on the Company's financial performance.

RenaissanceRe will host a conference call on Wednesday, July 29, 2020 at 11:00 a.m. ET to discuss this release. Live broadcast of the conference call will be available through the "Investors - Webcasts & Presentations" section of the Company's website at www.renre.com.

About RenaissanceRe

RenaissanceRe is a global provider of reinsurance and insurance that specializes in matching well-structured risks with efficient sources of capital. The Company provides property, casualty and specialty reinsurance and certain insurance solutions to customers, principally through intermediaries. Established in 1993, the Company has offices in Bermuda, Australia, Ireland, Singapore, Switzerland, the United Kingdom and the United States.

Cautionary Statement Regarding Forward-Looking Statements

Any forward-looking statements made in this Press Release reflect RenaissanceRe's current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are subject to numerous factors that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements, including the following: the uncertainty of the continuing impact of the COVID-19 pandemic and measures taken in response thereto; the effect of legislative, regulatory, judicial or social influences related to the COVID-19 pandemic on the Company's financial performance, including the emergence of unexpected or un-modeled insurance or reinsurance losses, and the Company's ability to conduct its business; the impact and potential future impacts of the COVID-19 pandemic on the value of the Company's investments and its access to capital in the future or the pricing or terms of available financing; the effect that measures taken to mitigate the COVID-19 pandemic have on the Company's operations and those of its counterparties; the frequency and severity of catastrophic and other events the Company covers; the effectiveness of the Company's claims and claim expense reserving process; the effect of climate change on the Company's business, including the trend towards increasingly frequent and severe climate events; the Company's ability to maintain its financial strength ratings; the effect of emerging claims and coverage issues; collection on claimed retrocessional coverage, and new retrocessional reinsurance being available on acceptable terms and providing the coverage that the Company intended to obtain; the Company's reliance on a small and decreasing number of reinsurance brokers and other distribution services for the preponderance of its revenue; the Company's exposure to credit loss from counterparties in the normal course of business; the effect of continued challenging economic conditions throughout the world; the performance of the Company's investment portfolio; a contention by the U.S. Internal Revenue Service that Renaissance Reinsurance Ltd., or any of the Company's other Bermuda subsidiaries, is subject to taxation in the U.S.; the effects of U.S. tax reform legislation and possible future tax reform legislation and regulations, including changes to the tax treatment of the Company's shareholders or investors in its joint ventures or other entities it manages; the effect of cybersecurity risks, including technology breaches or failure, on the Company's business; the success of any of the Company's strategic investments or acquisitions, including its ability to manage its operations as its product and geographical diversity increases; the Company's ability to retain its key senior officers and to attract or retain the executives and employees necessary to manage its business; the Company's ability to effectively manage capital on behalf of investors in joint ventures or other entities it manages; foreign currency exchange rate fluctuations; soft reinsurance underwriting market conditions; changes in the method for determining the London Inter-bank Offered Rate ("LIBOR") and the potential replacement of LIBOR; losses the Company could face from terrorism, political unrest or war; the Company's ability to successfully implement its business strategies and initiatives; the Company's ability to determine any impairments taken on its investments; the effects of inflation; the ability of the Company's ceding companies and delegated authority counterparties to accurately assess the risks they underwrite; the effect of operational risks, including system or human failures; the Company's ability to raise capital if necessary; the Company's ability to comply with covenants in its debt agreements; changes to the regulatory systems under which the Company operates, including as a result of increased global regulation of the insurance and reinsurance industries; changes in Bermuda laws and regulations and the political environment in Bermuda; the Company's dependence on the ability of its operating subsidiaries to declare and pay dividends; aspects of the Company's corporate structure that may discourage third-party takeovers and other transactions; difficulties investors may have in servicing process or enforcing judgments against the Company in the U.S.; the cyclical nature of the reinsurance and insurance industries; adverse legislative developments that reduce the size of the private markets the Company serves or impede their future growth; consolidation of competitors, customers and insurance and reinsurance brokers; the effect on the Company's business of the highly competitive nature of its industry, including the effect of new entrants to, competing products for and consolidation in the (re)insurance industry; other political, regulatory or industry initiatives adversely impacting the Company; the Company's ability to comply with applicable sanctions and foreign corrupt practices laws; increasing barriers to free trade and the free flow of capital; international restrictions on the writing of reinsurance by foreign companies and government intervention in the natural catastrophe market; the effect of Organisation for Economic Co-operation and Development or European Union ("EU") measures to increase the Company's taxes and reporting requirements; changes in regulatory regimes and accounting rules that may impact financial results irrespective of business operations; the Company's need to make many estimates and judgments in the preparation of its financial statements; the effect of the exit by the United Kingdom from the EU; and other factors affecting future results disclosed in RenaissanceRe's filings with the Securities and Exchange Commission, including its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and prospectus supplement filed on June 4, 2020.

RenaissanceRe Holdings Ltd.

Summary Consolidated Statements of Operations

(in thousands of United States Dollars, except per share amounts andpercentages)

(Unaudited)

Three months ended Six months ended

June 30, June 30, June 30, June 30, 2020 2019 2020 2019

Revenues

Gross premiums $ 1,701,872 $ 1,476,908 $ 3,727,593 $ 3,041,203 written

Net premiums $ 1,180,803 $ 1,022,965 $ 2,450,611 $ 1,951,996 written

Increase in (170,707) (111,463) (527,417) (490,466) unearned premiums

Net premiums 1,010,096 911,502 1,923,194 1,461,530 earned

Net investment 89,305 118,588 188,778 200,682 income

Net foreignexchange (losses) (7,195) 9,309 (12,923) 6,463 gains

Equity inearnings of other 9,041 6,812 13,605 11,473 ventures

Other (loss) (1,201) 922 (5,637) 4,093 income

Net realized andunrealized gains 448,390 191,247 337,683 361,260 on investments

Total revenues 1,548,436 1,238,380 2,444,700 2,045,501

Expenses

Net claims andclaim expenses 510,272 453,373 1,081,226 680,408 incurred

Acquisition 233,610 227,482 444,214 351,433 expenses

Operational 49,077 59,814 116,538 104,747 expenses

Corporate 11,898 23,847 27,889 62,636 expenses

Interest expense 11,842 15,534 26,769 27,288

Total expenses 816,699 780,050 1,696,636 1,226,512

Income before 731,737 458,330 748,064 818,989 taxes

Income tax (29,875) (9,475) (21,029) (17,006) expense

Net income 701,862 448,855 727,035 801,983

Net incomeattributable to (118,728) (71,812) (216,819) (142,034) noncontrollinginterests

Net incomeattributable to 583,134 377,043 510,216 659,949 RenaissanceRe

Dividends on (7,289) (9,189) (16,345) (18,378) preference shares

Net incomeavailable toRenaissanceRe $ 575,845 $ 367,854 $ 493,871 $ 641,571 commonshareholders



Net incomeavailable toRenaissanceRecommon $ 12.64 $ 8.36 $ 11.04 $ 14.82 shareholders percommon share -basic

Net incomeavailable toRenaissanceRecommon $ 12.63 $ 8.35 $ 11.02 $ 14.81 shareholders percommon share -diluted

Operating incomeavailable toRenaissanceRecommon $ 4.06 $ 4.47 $ 4.91 $ 8.05 shareholders percommon share -diluted



Average sharesoutstanding - 44,939 43,483 44,190 42,774 basic

Average sharesoutstanding - 45,003 43,521 44,253 42,806 diluted



Net claims andclaim expense 50.5 % 49.7 % 56.2 % 46.6 %ratio

Underwriting 28.0 % 31.6 % 29.2 % 31.2 %expense ratio

Combined ratio 78.5 % 81.3 % 85.4 % 77.8 %



Return on averagecommon equity - 38.5 % 28.9 % 17.1 % 26.4 %annualized

Operating returnon average common 12.7 % 15.6 % 7.8 % 14.4 %equity -annualized (1)

(1) See Comments on Regulation G for a reconciliation of non-GAAP financialmeasures.

RenaissanceRe Holdings Ltd.

Summary Consolidated Balance Sheets

(in thousands of United States Dollars, except per share amounts)



June 30, December 31, 2020 2019

Assets (Unaudited) (Audited)

Fixed maturity investments trading, at fair value $ 12,495,135 $ 11,171,655

Short term investments, at fair value 5,570,804 4,566,277

Equity investments trading, at fair value 470,087 436,931

Other investments, at fair value 1,093,338 1,087,377

Investments in other ventures, under equity 94,285 106,549 method

Total investments 19,723,649 17,368,789

Cash and cash equivalents 1,185,844 1,379,068

Premiums receivable 3,519,965 2,599,896

Prepaid reinsurance premiums 1,266,203 767,781

Reinsurance recoverable 2,774,358 2,791,297

Accrued investment income 70,004 72,461

Deferred acquisition costs and value of business 734,286 663,991 acquired

Receivable for investments sold 648,458 78,369

Other assets 298,396 346,216

Goodwill and other intangibles 258,591 262,226

Total assets $ 30,479,754 $ 26,330,094

Liabilities, Noncontrolling Interests and Shareholders' Equity

Liabilities

Reserve for claims and claim expenses $ 9,365,469 $ 9,384,349

Unearned premiums 3,549,641 2,530,975

Debt 1,135,216 1,384,105

Reinsurance balances payable 4,094,027 2,830,691

Payable for investments purchased 1,259,116 225,275

Other liabilities 342,014 932,024

Total liabilities 19,745,483 17,287,419

Redeemable noncontrolling interest 3,387,099 3,071,308

Shareholders' Equity

Preference shares 525,000 650,000

Common shares 50,811 44,148

Additional paid-in capital 1,602,738 568,277

Accumulated other comprehensive loss (3,066) (1,939)

Retained earnings 5,171,689 4,710,881

Total shareholders' equity attributable to 7,347,172 5,971,367 RenaissanceRe

Total liabilities, noncontrolling interests and $ 30,479,754 $ 26,330,094 shareholders' equity



Book value per common share $ 134.27 $ 120.53

RenaissanceRe Holdings Ltd.

Supplemental Financial Data - Segment Information

(in thousands of United States Dollars, except percentages)

(Unaudited)

Three months ended June 30, 2020

Casualty Property and Other Total Specialty

Gross premiums $ 1,042,536 $ 659,336 $ - $ 1,701,872 written

Net premiums written $ 704,138 $ 476,665 $ - $ 1,180,803

Net premiums earned $ 491,116 $ 518,980 $ - $ 1,010,096

Net claims and claim 164,050 346,266 (44) 510,272 expenses incurred

Acquisition expenses 94,772 138,837 1 233,610

Operational expenses 31,656 17,422 (1) 49,077

Underwriting income $ 200,638 $ 16,455 $ 44 217,137

Net investment income 89,305 89,305

Net foreign exchange (7,195) (7,195) losses

Equity in earnings of 9,041 9,041 other ventures

Other loss (1,201) (1,201)

Net realized andunrealized gains on 448,390 448,390 investments

Corporate expenses (11,898) (11,898)

Interest expense (11,842) (11,842)

Income before taxesand redeemable 731,737 noncontrollinginterests

Income tax expense (29,875) (29,875)

Net incomeattributable toredeemable (118,728) (118,728) noncontrollinginterests

Dividends on (7,289) (7,289) preference shares

Net income availableto RenaissanceRe $ 575,845 common shareholders



Net claims and claimexpenses incurred - $ 170,614 $ 355,064 $ - $ 525,678 current accident year

Net claims and claimexpenses incurred - (6,564) (8,798) (44) (15,406) prior accident years

Net claims and claimexpenses incurred - $ 164,050 $ 346,266 $ (44) $ 510,272 total



Net claims and claimexpense ratio - 34.7 % 68.4 % 52.0 %current accident year

Net claims and claimexpense ratio - prior (1.3) % (1.7) % (1.5) %accident years

Net claims and claimexpense ratio - 33.4 % 66.7 % 50.5 %calendar year

Underwriting expense 25.7 % 30.1 % 28.0 %ratio

Combined ratio 59.1 % 96.8 % 78.5 %



Three months ended June 30, 2019

Casualty Property and Other Total Specialty

Gross premiums $ 839,200 $ 637,708 $ - $ 1,476,908 written

Net premiums written $ 544,115 $ 478,850 $ - $ 1,022,965

Net premiums earned $ 425,013 $ 486,489 $ - $ 911,502

Net claims and claim 146,874 306,501 (2) 453,373 expenses incurred

Acquisition expenses 89,711 137,963 (192) 227,482

Operational expenses 36,764 23,016 34 59,814

Underwriting income $ 151,664 $ 19,009 $ 160 170,833

Net investment income 118,588 118,588

Net foreign exchange 9,309 9,309 gains

Equity in earnings of 6,812 6,812 other ventures

Other income 922 922

Net realized andunrealized gains on 191,247 191,247 investments

Corporate expenses (23,847) (23,847)

Interest expense (15,534) (15,534)

Income before taxesand redeemable 458,330 noncontrollinginterests

Income tax expense (9,475) (9,475)

Net incomeattributable toredeemable (71,812) (71,812) noncontrollinginterests

Dividends on (9,189) (9,189) preference shares

Net income availableto RenaissanceRe $ 367,854 common shareholders



Net claims and claimexpenses incurred - $ 136,111 $ 317,029 $ - $ 453,140 current accident year

Net claims and claimexpenses incurred - 10,763 (10,528) (2) 233 prior accident years

Net claims and claimexpenses incurred - $ 146,874 $ 306,501 $ (2) $ 453,373 total



Net claims and claimexpense ratio - 32.0 % 65.2 % 49.7 %current accident year

Net claims and claimexpense ratio - prior 2.6 % (2.2) % - %accident years

Net claims and claimexpense ratio - 34.6 % 63.0 % 49.7 %calendar year

Underwriting expense 29.7 % 33.1 % 31.6 %ratio

Combined ratio 64.3 % 96.1 % 81.3 %

RenaissanceRe Holdings Ltd.

Supplemental Financial Data - Segment Information

(in thousands of United States Dollars, except percentages)

(Unaudited)

Six months ended June 30, 2020

Property Casualty and Other Total Specialty

Gross premiums $ 2,263,062 $ 1,464,531 $ - $ 3,727,593 written

Net premiums $ 1,378,719 $ 1,071,892 $ - $ 2,450,611 written

Net premiums earned $ 912,451 $ 1,010,743 $ - $ 1,923,194

Net claims andclaim expenses 308,902 772,475 (151) 1,081,226 incurred

Acquisition 180,123 264,090 1 444,214 expenses

Operational 75,663 40,876 (1) 116,538 expenses

Underwriting income $ 347,763 $ (66,698) $ 151 281,216 (loss)

Net investment 188,778 188,778 income

Net foreign (12,923) (12,923) exchange losses

Equity in earnings 13,605 13,605 of other ventures

Other loss (5,637) (5,637)

Net realized andunrealized gains on 337,683 337,683 investments

Corporate expenses (27,889) (27,889)

Interest expense (26,769) (26,769)

Income before taxesand redeemable 748,064 noncontrollinginterests

Income tax expense (21,029) (21,029)

Net incomeattributable toredeemable (216,819) (216,819) noncontrollinginterests

Dividends on (16,345) (16,345) preference shares

Net incomeattributable to $ 493,871 RenaissanceRecommon shareholders



Net claims andclaim expenses $ 301,458 $ 781,274 $ - $ 1,082,732 incurred - currentaccident year

Net claims andclaim expenses 7,444 (8,799) (151) (1,506) incurred - prioraccident years

Net claims andclaim expenses $ 308,902 $ 772,475 $ (151) $ 1,081,226 incurred - total



Net claims andclaim expense ratio 33.0 % 77.3 % 56.3 %- current accidentyear

Net claims andclaim expense ratio 0.9 % (0.9) % (0.1) %- prior accidentyears

Net claims andclaim expense ratio 33.9 % 76.4 % 56.2 %- calendar year

Underwriting 28.0 % 30.2 % 29.2 %expense ratio

Combined ratio 61.9 % 106.6 % 85.4 %



Six months ended June 30, 2019

Property Casualty and Other Total Specialty

Gross premiums $ 1,871,584 $ 1,169,619 $ - $ 3,041,203 written

Net premiums $ 1,108,345 $ 843,651 $ - $ 1,951,996 written

Net premiums earned $ 715,758 $ 745,772 $ - $ 1,461,530

Net claims andclaim expenses 202,957 477,434 17 680,408 incurred

Acquisition 143,450 208,175 (192) 351,433 expenses

Operational 65,308 39,405 34 104,747 expenses

Underwriting income $ 304,043 $ 20,758 $ 141 324,942

Net investment 200,682 200,682 income

Net foreign 6,463 6,463 exchange gains

Equity in earnings 11,473 11,473 of other ventures

Other income 4,093 4,093

Net realized andunrealized gains on 361,260 361,260 investments

Corporate expenses (62,636) (62,636)

Interest expense (27,288) (27,288)

Income before taxesand redeemable 818,989 noncontrollinginterests

Income tax expense (17,006) (17,006)

Net incomeattributable toredeemable (142,034) (142,034) noncontrollinginterests

Dividends on (18,378) (18,378) preference shares

Net incomeavailable to $ 641,571 RenaissanceRecommon shareholders



Net claims andclaim expenses $ 190,317 $ 494,164 $ - $ 684,481 incurred - currentaccident year

Net claims andclaim expenses 12,640 (16,730) 17 (4,073) incurred - prioraccident years

Net claims andclaim expenses $ 202,957 $ 477,434 $ 17 $ 680,408 incurred - total



Net claims andclaim expense ratio 26.6 % 66.3 % 46.8 %- current accidentyear

Net claims andclaim expense ratio 1.8 % (2.3) % (0.2) %- prior accidentyears

Net claims andclaim expense ratio 28.4 % 64.0 % 46.6 %- calendar year

Underwriting 29.1 % 33.2 % 31.2 %expense ratio

Combined ratio 57.5 % 97.2 % 77.8 %

RenaissanceRe Holdings Ltd.

Supplemental Financial Data - Gross Premiums Written

(in thousands of United States Dollars)

(Unaudited)



Three months ended Six months ended

June 30, June 30, June 30, June 30, 2020 2019 2020 2019

Property Segment

Catastrophe $ 711,786 $ 602,656 $ 1,647,976 $ 1,447,869

Other property 330,750 236,544 615,086 423,715

Property segmentgross premiums $ 1,042,536 $ 839,200 $ 2,263,062 $ 1,871,584 written



Casualty and Specialty Segment

General casualty $ 206,666 $ 258,357 $ 453,333 $ 411,691 (1)

Professional 222,737 167,206 453,224 316,583 liability (2)

Financial lines (3) 101,635 91,202 248,714 218,558

Other (4) 128,298 120,943 309,260 222,787

Casualty andSpecialty segment $ 659,336 $ 637,708 $ 1,464,531 $ 1,169,619 gross premiumswritten

(1) Includes automobile liability, casualty clash, employer's liability, umbrella or excess casualty, workers' compensation and general liability.

(2) Includes directors and officers, medical malpractice, and professional indemnity.

(3) Includes financial guaranty, mortgage guaranty, political risk, surety and trade credit.

Includes accident and health, agriculture, aviation, cyber, energy,(4) marine, satellite and terrorism. Lines of business such as regional multi-line and whole account may have characteristics of various other classes of business, and are allocated accordingly.

RenaissanceRe Holdings Ltd.

Supplemental Financial Data - Total Investment Result

(in thousands of United States Dollars, except percentages)

(Unaudited)



Three months ended Six months ended

June 30, June 30, June 30, June 30, 2020 2019 2020 2019

Fixed maturity $ 69,943 $ 88,106 $ 143,281 $ 149,589 investments trading

Short term investments 6,049 17,807 18,141 29,651

Equity investments 1,666 916 3,217 1,943 trading

Other investments

Catastrophe bonds 13,519 11,781 27,658 20,472

Other 1,107 1,914 2,736 3,554

Cash and cash equivalents 837 2,306 2,341 3,823

93,121 122,830 197,374 209,032

Investment expenses (3,816) (4,242) (8,596) (8,350)

Net investment income 89,305 118,588 188,778 200,682



Net realized andunrealized gains (losses) on:

Fixed maturity 322,711 171,920 423,932 288,621 investments trading (1)

Equity investments 113,506 22,083 (38,376) 76,027 trading (1)

Other investments

Catastrophe bonds 4,452 (11,902) (9,900) (14,112)

Other 7,721 9,146 (37,973) 10,724

Net realized andunrealized gains on 448,390 191,247 337,683 361,260 investments

Total investment result $ 537,695 $ 309,835 $ 526,461 $ 561,942



Total investment return - 11.8 % 8.0 % 5.8 % 7.3 %annualized

Net realized and unrealized gains (losses) on fixed maturity investments trading includes the impacts of interest rate futures, interest rate(1) swaps, credit default swaps and total return swaps. Net realized gains (losses) on equity investments trading includes the impact of equity futures.

Comments on Regulation G

In addition to the GAAP financial measures set forth in this Press Release, the Company has included certain non-GAAP financial measures within the meaning of Regulation G. The Company has provided these financial measures in previous investor communications and the Company's management believes that these measures are important to investors and other interested persons, and that investors and such other persons benefit from having a consistent basis for comparison between quarters and for comparison with other companies within the industry. These measures may not, however, be comparable to similarly titled measures used by companies outside of the insurance industry. Investors are cautioned not to place undue reliance on these non-GAAP measures in assessing the Company's overall financial performance.

Operating Income Available to RenaissanceRe Common Shareholders and Operating Return on Average Common Equity - Annualized

The Company uses "operating income available to RenaissanceRe common shareholders" as a measure to evaluate the underlying fundamentals of its operations and believes it to be a useful measure of its corporate performance. "Operating income available to RenaissanceRe common shareholders" as used herein differs from "net income available to RenaissanceRe common shareholders," which the Company believes is the most directly comparable GAAP measure, by the exclusion of net realized and unrealized gains and losses on investments, excluding other investments - catastrophe bonds, net foreign exchange gains and losses, transaction and integration expenses associated with the acquisition of TMR, the income tax expense or benefit associated with these adjustments and the portion of these adjustments attributable to the Company's redeemable noncontrolling interests." The Company's management believes that "operating income available to RenaissanceRe common shareholders" is useful to investors because it more accurately measures and predicts the Company's results of operations by removing the variability arising from: fluctuations in the fair value of the Company's fixed maturity investment portfolio, equity investments trading, other investments (excluding catastrophe bonds) and investments-related derivatives; fluctuations in foreign exchange rates; certain transaction and integration expenses associated with the acquisition of TMR; the associated income tax expense or benefit of these adjustments; and the portion of these adjustments attributable to the Company's redeemable noncontrolling interests. The Company also uses "operating income available to RenaissanceRe common shareholders" to calculate "operating income available to RenaissanceRe common shareholders per common share - diluted" and "operating return on average common equity - annualized." The following table is a reconciliation of: (1) net income available to RenaissanceRe common shareholders to "operating income available to RenaissanceRe common shareholders"; (2) net income available to RenaissanceRe common shareholders per common share - diluted to "operating income available to RenaissanceRe common shareholders per common share - diluted"; and (3) return on average common equity - annualized to "operating return on average common equity - annualized." Comparative information for all prior periods has been updated to conform to the current methodology and presentation.

Three months ended Six months ended

(in thousands of UnitedStates Dollars, except June 30, June 30, June 30, June 30,per share amounts and 2020 2019 2020 2019percentages)

Net income available toRenaissanceRe common $ 575,845 $ 367,854 $ 493,871 $ 641,571 shareholders

Adjustment for netrealized and unrealizedgains on investments, (443,938) (203,149) (347,583) (375,372) excluding otherinvestments - catastrophebonds

Adjustment for netforeign exchange losses 7,195 (9,309) 12,923 (6,463) (gains)

Adjustment fortransaction andintegration expenses 2,279 14,483 6,702 40,003 associated with theacquisition of TMR

Adjustment for income tax 21,223 10,442 17,082 18,776 expense (1)

Adjustment for net incomeattributable to 27,472 18,518 40,491 33,932 redeemable noncontrollinginterests (2)

Operating incomeavailable to $ 190,076 $ 198,839 $ 223,486 $ 352,447 RenaissanceRe commonshareholders



Net income available toRenaissanceRe common $ 12.63 $ 8.35 $ 11.02 $ 14.81 shareholders per commonshare - diluted

Adjustment for netrealized and unrealizedgains on investments, (9.86) (4.67) (7.85) (8.77) excluding otherinvestments - catastrophebonds

Adjustment for netforeign exchange losses 0.16 (0.21) 0.29 (0.15) (gains)

Adjustment fortransaction andintegration expenses 0.05 0.33 0.15 0.93 associated with theacquisition of TMR

Adjustment for income tax 0.47 0.24 0.39 0.44 expense (1)

Adjustment for net incomeattributable to 0.61 0.43 0.91 0.79 redeemable noncontrollinginterests (2)

Operating incomeavailable toRenaissanceRe common $ 4.06 $ 4.47 $ 4.91 $ 8.05 shareholders per commonshare - diluted



Return on average common 38.5 % 28.9 % 17.1 % 26.4 %equity - annualized

Adjustment for netrealized and unrealizedgains on investments, (29.7) % (16.0) % (11.9) % (15.5) %excluding otherinvestments - catastrophebonds

Adjustment for netforeign exchange losses 0.5 % (0.7) % 0.4 % (0.3) %(gains)

Adjustment fortransaction andintegration expenses 0.2 % 1.1 % 0.2 % 1.6 %associated with theacquisition of TMR

Adjustment for income tax 1.4 % 0.8 % 0.6 % 0.8 %expense (1)

Adjustment for net incomeattributable to 1.8 % 1.5 % 1.4 % 1.4 %redeemable noncontrollinginterests (2)

Operating return onaverage common equity - 12.7 % 15.6 % 7.8 % 14.4 %annualized

Adjustment for income tax expense represents the income tax expense associated with the adjustments to net income available to RenaissanceRe(1) common shareholders. The income tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors.

Represents the portion of these adjustments that are attributable to the(2) Company's redeemable noncontrolling interests, including the income tax impact of those adjustments.

Tangible Book Value Per Common Share and Tangible Book Value Per Common Share Plus Accumulated Dividends

The Company has included in this Press Release "tangible book value per common share" and "tangible book value per common share plus accumulated dividends." "Tangible book value per common share" is defined as book value per common share excluding goodwill and intangible assets per share. "Tangible book value per common share plus accumulated dividends" is defined as book value per common share excluding goodwill and intangible assets per share, plus accumulated dividends. The Company's management believes "tangible book value per common share" and "tangible book value per common share plus accumulated dividends" are useful to investors because they provide a more accurate measure of the realizable value of shareholder returns, excluding the impact of goodwill and intangible assets. The following table is a reconciliation of book value per common share to "tangible book value per common share" and "tangible book value per common share plus accumulated dividends".

At

June 30, March 31, December September June 30, 2020 2020 31, 30, 2019 2019 2019

Book value per $ 134.27 $ 117.15 $ 120.53 $ 120.07 $ 119.17 common share

Adjustment forgoodwill and (5.56) (6.46) (6.50) (6.55) (6.60) otherintangibles (1)

Tangible bookvalue per common 128.71 110.69 114.03 113.52 112.57 share

Adjustment foraccumulated 21.38 21.03 20.68 20.34 20.00 dividends

Tangible bookvalue per commonshare plus $ 150.09 $ 131.72 $ 134.71 $ 133.86 $ 132.57 accumulateddividends



Quarterly changein book value 14.6 % (2.8) % 0.4 % 0.8 % 7.3 %per common share

Quarterly changein tangible bookvalue per commonshare plus 16.6 % (2.6) % 0.7 % 1.1 % 8.2 %change inaccumulateddividends

Year to datechange in book 11.4 % (2.8) % 15.7 % 15.3 % 14.4 %value per commonshare

Year to datechange intangible bookvalue per common 13.5 % (2.6) % 17.9 % 17.1 % 15.7 %share pluschange inaccumulateddividends

At June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019 and June 30, 2019, goodwill and other intangibles included $23.5 million,(1) $24.2 million, $24.9 million, $25.6 million, $26.3 million and $27.0 million, respectively, of goodwill and other intangibles included in investments in other ventures, under equity method.

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CONTACT: INVESTOR CONTACT: Keith McCue Senior Vice President, Finance & Investor Relations RenaissanceRe Holdings Ltd. (441) 239-4830 MEDIA CONTACT: Keil Gunther Vice President, Head of Global Marketing & Client Communication RenaissanceRe Holdings Ltd. (441) 239-4932 or Kekst CNC Dawn Dover (212) 521-4800