RenaissanceRe Quarterly Profit Improves

By Michael Ha

NU Online News Service, Feb. 4, 2:02 p.m.EST?RenaissanceRe Holdings' 2003 fourth-quarter net incomerose 36 percent, to $160 million from $102.2 million reportedduring the same quarter in 2002, thanks to robust premium growth,management said.[@@]

For the full-year 2003, the Bermuda-based reinsurer's net profitcame in at $604.6 million, improving from the $364.8 million inincome posted for 2002.

"Renaissance delivered another year of outstanding financialresults in 2003, our 10th full year in business, with an operatingreturn on equity of 29 percent," commented RenaissanceRe ChiefExecutive James Stanard.

Mr. Stanard said that, to his knowledge, RenaissanceRe had thebest operating return on equity in the property-casualty businessover the last 10 years. "From our roots in catastrophe reinsurance,we have increasingly applied our proven analytic skills andunderwriting discipline in new areas of the market, developing asignificant and profitable presence in specialty reinsurance andindividual risk," he commented.

The company's net premiums written for the quarter came in at$165.4 million, up from $153.4 million reported during the 2002fourth quarter. Net premiums earned for the 2003 fourth quarterwere $299.4 million, improving from the $234.5 million reported forthe same quarter in 2002.

For 2003 overall, net premiums written were $1.153 billion,compared to $923.7 million for 2002, while net premiums earned for2003 came in at $1.116 billion, improving from $760.9 millionreported for 2002.

The company noted that its total managed catastrophe premiumswritten?which represent gross catastrophe premiums written byRenaissance Reinsurance and related joint ventures?came in at $42.6million for the fourth quarter, compared to $35.5 million one yearago. Total managed catastrophe premiums written for full-year 2003were $720.4 million, up slightly from $716.5 million for 2002.

RenaissanceRe's total individual risk premiums written for the2003 fourth quarter also rose to $111.5 million, from $97.6 millionfor the 2002 fourth quarter. Total individual risk premiums writtenfor 2003 overall were $446.7 million, a 58 percent jump from the$282.6 million written during 2002.

The company's net investment income also improved for thequarter as well as for the full year. RenaissanceRe's investmentincome for the fourth quarter was $35.7 million, up from $29.7million one year ago, while the investment income for 2003 improvedto $129.5 million, from $102.7 million reported during 2002.

RenaissanceRe indemnifies insurers against excess losses onnatural catastrophes, paying insurance claims that exceed a certainretained amount. The company also offers primary property insurancein the United States and Europe through its subsidiaries.

The firm is also part of property catastrophe reinsurer DaVinciRe, a joint venture with State Farm.