RenRe Comments on Hurricanes’ $425 Million Impact; Fitch Affirms Debt Ratings

September 30, 2004

Bermuda-based RenaissanceRe Holdings Ltd. estimates that Hurricanes Charley, Frances, Ivan and Jeanne will have a combined negative impact on the Company’s third quarter earnings of approximately $425 million.

RenRe said “this initial estimate is based on results from catastrophe simulation models and on limited initial loss reports.” It currently projects that each of the four events will generate approximately $100 million of negative impact to the Company. The bulletin added that RenRe “does not expect material losses in the quarter from other reported catastrophe events, including the Japanese typhoons.”

The Company noted: “Compared to other potential catastrophe events, Florida hurricanes of the magnitude recently experienced cause disproportionately higher losses to the Company, as a percentage of total industry losses. This results from the Company’s decision to pursue a relatively large share of the Florida market, as well as from the structure of the Company’s ceded reinsurance, which generally responds to higher industry losses.”

Although it made reference to RenRe’s loss estimates, Fitch Ratings didn’t seem too concerned by them. It announced that it has affirmed the company’s “A-” long-term and senior debt ratings and “BBB+” preferred stock rating. It also affirmed the “BBB+” rating on RenaissanceRe Capital Trust’s capital securities. All of the ratings have a stable outlook.

Fitch said it “views the earnings and capital hit from these storms as significant, but within its expectations for RenRe’s current ratings. RenRe is predominately a property/catastrophe reinsurer and as a result, while Fitch believes that its earnings and capital growth will be very strong during periods of light catastrophe losses, it will suffer during periods of heavy catastrophe losses.

“Annualizing RenRe’s operating results for the first six months of 2004, Fitch estimates the company’s $425 million of hurricane related losses as equal to approximately 75 percent of the its run-rate net earnings and 33 percentage points on the company’s combined ratio. During the 1999-2003 RenRe’s combined ratio averaged 63.2 percent. Fitch also notes that the expected losses are equal to 15 percent of RenRe’s June 30, 2004 equity.”

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