Bermuda’s RenaissanceRe Holdings reported an operating loss attributable to common shareholders of $143.4 million for the third quarter of 2008, compared to operating income available to common shareholders of $167.8 million in the third quarter of 2007.
RenRe noted that the operating loss figure “excludes net realized investment losses of $87.6 million and net realized investment gains of $1.6 million in the third quarters of 2008 and 2007, respectively, and net unrealized losses on credit derivatives issued by entities included in investments in other ventures, under equity method of $nil and $36.0 million in the third quarters of 2008 and 2007, respectively.” The Company posted an overall net loss for the third quarter of $230.9 million.
For the first nine months of 2008 RenRe reported net income of $41.9 million, compared to $507.37 million for the first nine months of 2007, a 91 percent decline. The combined ratio ballooned to 163.4 percent in the third quarter, but remains a respectable 92 percent for the first nine months.
RenRe’s report said: “Tangible book value per common share was $37.02 at September 30, 2008, a 12.2 percent decrease in the third quarter of 2008, compared to a 4.3 percent increase in the third quarter of 2007. Book value per common share was $38.94 at September 30, 2008, a 10.1 percent decrease in the third quarter of 2008, compared to a 4.2 percent increase in the third quarter of 2007.
“As described in more detail below, the Company’s book value per share for the third quarter of 2008 was negatively impacted by $276.0 million of net negative impact from hurricanes Gustav and Ike and negative investment results of $93.3 million. Tangible book value per share was also impacted by the addition of $46.4 million of goodwill and other intangibles during the third quarter of 2008.”
CEO Neill A. Currie commented: “The combination of the U.S. hurricanes and turmoil in the financial markets resulted in a decrease in our tangible book value per share this quarter, but also served to reinforce our position as a market leader. Our brokers and clients value our financial strength and proven willingness to pay claims quickly as well as our ability to provide substantial reinsurance capacity in these turbulent times.
“We anticipate that additional opportunities will emerge with the expected decline in industry capital and continued stress in the financial markets. As we look ahead to 2009 and the upcoming January 1st renewal season, our strong ratings, solid balance sheet and experienced underwriting team, coupled with our proven risk management systems, position us well to capture these opportunities.”
The full report, additional information and details concerning access to the earnings conference call are available on the Company’s web site at: www.renre.com.
Source: RenaissanceRe Holdings
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