RenaissanceRe Holdings Ltd has reported its financial results for the fourth quarter and full year 2024, highlighting growth in book value per share, underwriting income, and investment performance.
For the full year, the company posted a return on average common equity of 19.3% and an operating return on average common equity of 23.5%. Book value per share increased by 18.5%, while tangible book value per share plus accumulated dividends grew by 26%.
The company reported US$1.6 billion in underwriting income, US$1.7 billion in net investment income, and US$326.8 million in fee income. The combined ratio for the year was 83.9%, with an adjusted combined ratio of 81.5%.
During 2024, RenaissanceRe repurchased US$677.6 million of common shares, with US$462.3 million repurchased in the fourth quarter. The company also raised US$857.4 million in third-party capital through its Capital Partners unit, with an additional US$237.8 million raised effective Jan. 1, 2025.
In the fourth quarter, the company reported an annualized return on average common equity of negative 7.8% and an annualized operating return on average common equity of 16%. The combined ratio for the quarter was 91.7%, while the adjusted combined ratio was 89.4%.
Fee income rose to US$77.1 million, an 8.9% increase from the same quarter in 2023, and net investment income reached US$428.8 million, up 13.8% from the prior-year period.
The company recorded US$630.3 million in mark-to-market losses, largely attributed to US$565.9 million in losses from the fixed maturity portfolio. Hurricane Milton had a net negative impact of US$270.5 million on net income available to common shareholders and contributed 13.9 percentage points to the combined ratio.
President and chief executive officer Kevin J. O’Donnell (pictured above) said the company achieved a 26% increase in tangible book value per share plus accumulated dividends while fulfilling its commitments to customers during a period of elevated catastrophic events.
“At the January 1 renewal, our long-term partnership approach was rewarded with preferential signings across our business, and we retained our attractive underwriting book. Looking forward, we believe our strong capital and liquidity positions will allow us to capture additional opportunities, bolstering our leadership position and generating superior shareholder value,” O’Donnell said.
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