PEMBROKE, Bermuda - RenaissanceRe Holdings Ltd . (NYSE: NYSE:RNR) announced robust financial results for the first quarter of 2024, surpassing analyst expectations. The global provider of reinsurance and insurance reported an impressive Q1 adjusted EPS of $12.18, significantly higher than the analyst estimate of $9.56.
The company's net premiums written reached $3.2 billion, exceeding the consensus estimate of $3.05 billion, signaling strong growth and underwriting performance.
RenaissanceRe's first-quarter success was characterized by substantial growth in gross premiums written, which surged by $1.2 billion, or 43.0%, compared to the same period last year. The Property segment expanded by 44.9%, while the Casualty and Specialty segment grew by 41.4%. This remarkable expansion reflects the company's strategic acquisitions and organic growth initiatives.
The company's underwriting income stood at $540.7 million, with a combined ratio of 77.9% and an adjusted combined ratio of 75.4%, indicating efficient underwriting profitability. Fee income saw a significant rise of 86.6% from Q1 2023, reaching $83.6 million, while net investment income increased by 53.6% to $390.8 million, contributing to the company's strong financial performance.
President and CEO Kevin J. O'Donnell commented on the results, stating, "We are pleased to deliver another exceptional quarter, characterized by strong profitability, substantial growth, and persistent tailwinds behind our Three Drivers of Profit."
He emphasized the successful renewal of the RenaissanceRe and Validus portfolio, which has deepened customer partnerships and broadened access to attractive risk, driving value for shareholders.
The first quarter of 2024 marked the first full quarter reflecting the results of the Validus acquisition, which has significantly contributed to the company's growth. The acquisition has enhanced RenaissanceRe's underwriting portfolio and expanded its fee and net investment income, positioning the company for continued success.
RenaissanceRe's financial strength is further evidenced by its annualized return on average common equity of 16.4% and an operating return on average common equity of 28.7%. The company's strategic focus on underwriting, fee, and investment income has yielded positive results, with the Property segment's combined ratio improving to 42.9% and the Casualty and Specialty segment's combined ratio at 99.6%.
The company's results indicate a solid start to the year, with management expressing confidence in the ongoing business of the combined entities. As RenaissanceRe continues to integrate its acquisitions and capitalize on its growth strategies, investors can expect the company to maintain its trajectory of delivering value and strong financial performance.
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