RenaissanceRe Holdings Ltd (RNR) has reported a 26.68 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $97.95 million, or $2.25 a share in the quarter, compared with $133.59 million, or $2.95 a share for the same period last year. Revenue during the quarter grew 5.34 percent to $472.07 million from $448.12 million in the previous year period. Net premium earned for the quarter increased 3.52 percent or $12.44 million to $366.04 million. During the quarter, the company has written premium worth $544.14 million on net basis, up 6.34 percent or $32.46 million.
Total expenses increase substantially
Benefits, losses and expenses for the quarter were at $339.46 million, or 92.74 percent of premium earned from $267.20 million or 75.56 percent of premium earned in the last year period. Operating income for the quarter was $132.61 million, compared with $180.92 million in the previous year period. Net investment income was at $54.32 million for the quarter, up 88.22 percent or $25.46 million from year-ago period. The company has recorded a gain on investments of $43.37 million in the quarter compared with a gain of $61.65 million for the previous year period.
Kevin J. O'Donnell, chief executive officer commented: “We remained disciplined during a successful first quarter renewal and constructed an attractive portfolio of risk. Our first quarter results were impacted by an increase in our combined ratio with the Ogden rate change driving prior accident years and an increase in individual claims affecting the current accident year. We have the right strategy to navigate a challenging reinsurance market and we are well positioned to continue to build shareholder value over the long term.”
Liabilities outpace assets growth
Total assets increased 9.59 percent or $1,165.71 million to $13,319.63 million on Mar. 31, 2017. On the other hand, total liabilities were at $7,270.80 million as on Mar. 31, 2017, up 15.19 percent or $958.82 million from year-ago. Return on assets stood at 1.07 percent in the quarter, down 0.48 from 1.55 percent in the last year period. At the same time, return on equity was at 1.90 percent in the quarter, down 0.79 from 2.69 percent in the last year period.
Investments move up marginally
Investments stood at $9,459.87 million as on Mar. 31, 2017, up 4.64 percent or $419.67 million from year-ago. Meanwhile, yield on investments went up 25 basis points to 0.57 percent in the quarter. Meanwhile, reinsurance recoverables moved down 46.78 percent or $286.36 million over the year to $325.82 million on Mar. 31, 2017.
Total debt was at $945.70 million as on Mar. 31, 2017, down 1.24 percent or $11.83 million from year-ago. Shareholders equity stood at $4,860.84 million as on Mar. 31, 2017, up 2.11 percent or $100.24 million from year-ago. As a result, debt to equity ratio went down 1 basis points to 0.19 percent in the quarter from 0.20 percent in the last year period.
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