RenaissanceRe reported net income of $190.8 million for the first quarter of 2007 or $2.63 per common share, up from the $178.98 million in the first quarter of 2006.
First quarter operating income – which excludes capital gains/losses – was $186.7 compared to $195.7 million in the first quarter of 2006. Operating income per diluted common share was $2.57 in the first quarter of 2007, compared to $2.73 in the first quarter of 2006.
CEO Neill A. Currie commented: “We are pleased to report another highly profitable quarter with an annualized operating ROE of 29 percent and over 6 percent growth in book value per share in the quarter. We generated solid underwriting profits, despite European windstorm Kyrill, and our investment portfolio generated strong returns for the quarter. We are maintaining our disciplined underwriting given current market conditions, but finding good opportunities in our core markets to build upon an already attractive portfolio of risks.”
RenRe reported that gross premiums written for the first quarter of 2007 were $632.7 million, a $115.7 million decrease from the first quarter of 2006. “The decrease in gross premiums written was primarily driven by softer markets in both our Reinsurance and Individual Risk segments compared to the first quarter of 2006,” said the bulletin. “As described in more detail below, the Company generated $124.4 million of underwriting income and had a combined ratio of 65.6 percent in the first quarter of 2007, compared to $162.7 million of underwriting income and a 53.7 percent combined ratio in the first quarter of 2006.” The decrease was mainly the result of European Windstorm Kyrill which RenRe said “negatively impacted underwriting income by $70.9 million and added 21.1 percentage points to the Company’s consolidated net claims and claim expense ratio.”
RenRe’s gross premiums written in its reinsurance operations decreased $67.8 million to $516.0 million in the first quarter of 2007, compared to $583.8 million in the first quarter of 2006, “due to a reduction in the Company’s property catastrophe and specialty reinsurance premiums.”
The complete report may be obtained on the Company’s web site at: www.renre.com under the “Investors Section.”
RenaissanceRe will host a conference call today, May 2, 2007 at 8:30 a.m. (ET) to discuss this release. Live broadcast of the conference call will be available through the Investor Section of the web site, or go to IJ web site May 1 for details.
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