RenaissanceRe Holdings has announced strong financial results for the third quarter of 2024, reporting a robust annualized return on average common equity of 47.1% and an operating return of 21.7%.
The company's combined ratio reached 84.8%, with an adjusted ratio of 82.4%. However, large loss events in the quarter contributed to a net negative impact of $243.2 million on net income, adding 12.7 percentage points to the combined ratio.
The company’s fee income rose to $82.1 million, marking a 27.1% increase from Q3 2023. Net investment income also saw growth, reaching $423.9 million, an increase of 28.8% year-over-year.
Mark-to-market gains totaled $943.7 million, largely driven by $612.4 million in the fixed maturity portfolio and a further $134.2 million from RenaissanceRe’s investment in TWFG. During the quarter, RenaissanceRe repurchased $106.8 million worth of common shares, continuing its shareholder capital return strategy.
Looking ahead, Hurricane Milton is expected to negatively impact fourth-quarter results by an estimated $275 million.
In a statement, Kevin J O'Donnell, president and CEO, highlighted the company’s solid capital and liquidity position.
“We believe that these strong returns will persist, providing us with opportunities to grow while continuing to return capital to our shareholders through share repurchases. These actions position us to deliver consistent, superior returns for our shareholders through the course of 2025 and into the future,” O’Donnell said.
Additionally, RenaissanceRe has appointed Dr. Loretta J. Mester (pictured above) as an independent director, effective Nov. 6.
Mester brings nearly four decades of economic and financial policy experience, including a decade as President of the Federal Reserve Bank of Cleveland. Her background in macroeconomic policy and systemic risk is expected to support RenaissanceRe's goal of protecting communities amid global volatility.
Mester’s extensive career includes her role as president and CEO of the Cleveland Federal Reserve until earlier this year and senior positions at the Federal Reserve Bank of Philadelphia.
An adjunct finance professor at the Wharton School, Mester also serves on various boards, including those of the Cleveland Clinic and the Financial Intermediation Research Society. She holds a B.A. from Barnard College and M.A. and Ph.D. degrees in economics from Princeton University.
Brian GJ Gray, a board member since 2013, retired from his position on the same date.
O’Donnell stated that Mester’s expertise would further enhance RenaissanceRe's mission, adding that Gray's industry insights and leadership were invaluable as the company expanded globally and diversified its portfolio.
“I would also like to thank Brian for his 11 years of service on our board. As an industry expert, Brian’s guidance has been invaluable to the company and my fellow directors as we have expanded RenaissanceRe’s global footprint and diversified our underwriting portfolio. We are grateful to Brian for his important contributions and welcome Loretta to the board,” he said.
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