Bermuda’s RenaissanceRe Holdings Ltd. reported $186.2 million in fourth quarter operating income, which excludes capital gains/losses, available to common shareholders, compared to $198.6 million in the fourth quarter of 2006. RenRe reported losses of $131.2 million arising from net unrealized losses on credit derivatives issued by ChannelRe Holdings Ltd. in the fourth quarter (See IJ web site – https://www.insurancejournal.com/news/international/2008/01/17/86507.htm).
Net income available to common shareholders was $62.2 million or $0.88 per diluted common share in the fourth quarter of 2007, compared to net income available to common shareholders of $201.1 million or $2.78 per diluted common share for the same quarter of 2006.
For the year ended December 31, 2007, the Company generated operating income available to common shareholders of $735.5 million, compared to $796.1 million in 2006. Operating income per diluted common share was $10.24 in 2007, compared to $11.05 in 2006. Net income, which includes the ChannelRe writedown, available to common shareholders was $569.6 million or $7.93 per diluted common share in 2007, compared to net income available to common shareholders of $761.6 million or $10.57 per diluted common share for 2006.
CEO Neill A. Currie commented: “I am pleased to report strong full year earnings, resulting in an increase in book value per common share of over 19 percent and an operating return on equity of 27 percent. These earnings are a result of a relatively low level of insured catastrophe losses for the full year, solid investment income and strong performance by our team.”
He added, that although our premium volume is down, “we are pleased with the results of our January 1 renewals and have constructed an attractive portfolio of business for 2008. We will maintain our underwriting discipline, focusing on profit rather than premium volume. This discipline has been part of our culture since our formation and we believe this strategy will continue to benefit our shareholders over the long term.”
The full report and supplementary information may be obtained on the Company’s web site at: www.renre.com.
RenRe will conduct an investment community conference call today, Wednesday, February 6, 2008 at 11:00 A.M. EST to discuss its financial results, as well as the company’ s outlook.
A live webcast of this call will be available through the investor section of the web site and an archive of the call will be available from approximately 2:00 p.m. ET on February 6, 2008 through midnight ET on April 21, 2008.
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