RenRe Gives Q4, Full Year Earnings Estimates

December 3, 2003

Bermuda’s premier property reinsurer, RenaissanceRe Holdings Ltd., also chose the Bermuda Angle conference to announce preliminary fourth quarter, full year and 2004 earnings estimates.

It estimated that full year 2003 operating earnings would be in the range of $6.80 to $7.20 per share. RenRe said that in arriving at the 2003 estimates, it “has anticipated a fourth quarter reduction to its prior accident year catastrophe loss reserves in the range of $30 to $40 million, assuming no material changes in the data regarding these loss reserves,” and assuming “normal loss activity for the remainder of the quarter.”

The company projects $6.10 to $6.50 operating earnings per share for 2004, and an operating return on equity in 20 percent range. It expects to report operating earnings for the three months ended December 31, 2003 of between $1.55 to $1.95 per share. The 2004 earnings guidance “assumes an anticipated reduction of prior year catastrophe loss reserves of over $30 million,” said the bulletin. “This reduction in reserves assumes that payment levels and other data regarding these reserves are consistent with 2003.” It cautioned that, however, that the realities could be different.

“We clearly see 2003 as an outstanding year for RenaissanceRe, and are excited about our prospects for 2004,” stated Chairman and CEO James N. Stanard. “For 2003, our operating return on equity is expected to outpace our peer group, and has benefited from light catastrophe loss experience in the first half of the year, favorable reserve development, and foreign exchange gains. For 2004, we project that we will continue with a high operating return on equity, in the range of 20 percent. Looking ahead to our managed gross written premium estimates for 2004, we expect our Cat business to have flat to modestly declining premium, 15 percent growth in our Specialty Reinsurance premium, and over 30 percent growth in our Individual Risk premium.”

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