Renaissance Re Holdings Ltd. reported a 2008 fourth quarter net loss of $55.2 million, or 91 cents per diluted common share, compared to 2007 fourth quarter net income of $62.2 million, or 88 cents per diluted common share.

The Bermuda-based reinsurer said the tumultuous investment environment was the reason for the loss, noting that operating results were strong.

For all of 2008, Renaissance Re reported net loss of $13.3 million, or 21 cents per share, compared to a net income available to common shareholders of $569.6 million, or $7.93 per diluted common share.

In the fourth quarter, Renaissance Re said net realized losses on investments were $83.9 million, compared to net realized gains of $7.2 million in the fourth quarter of 2007.

"The decrease was driven by a $58.7 million increase in other than temporary impairments which totaled $66.3 million in the fourth quarter of 2008 compared to $7.5 million in the fourth quarter, principally due to a widening of credit spreads," the company said.

For the year, the company's total investment result, which includes the sum of net investment income, net realized losses on investments, and the net change in unrealized holding gains on fixed maturity investments available for sale, was negative $152.7 million, a decrease of $575.9 million from $423.3 million in 2007.

Net written premiums for the fourth quarter were $142.1 million, up from $105.3 million in the fourth quarter of 2007. The combined ratio was 36.1, down from 47.3 in the prior period. The company generated $205.7 million in underwriting income as well.

Neill A. Currie, Renaissance Re chief executive officer, said results were "driven in part by a low level of insured catastrophe losses and favorable reserve development."

For the year, net premiums written dropped to $1.35 billion in 2008 from $1.44 billion in 2007. The combined ratio jumped to 79 in 2008 from 59.3 in 2007.

The company said its 2008 operating results, were impacted both by poor investment results and "$276.2 million of net negative impact related to hurricanes Gustav and Ike."

Mr. Currie said, "The results of our Jan. 1 renewals reflect an improving pricing environment. With our well-capitalized balance sheet, strong ratings at all of our operating subsidiaries and continued investments in our people, infrastructure and product offerings, we are well positioned to execute on the opportunities we see in 2009 and beyond."

(Phil Gusman may be reached at pgusman@nuco.com, 201-526-2346)

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