NU Online News Service, Nov. 2, 11:42 a.m. EST

Another round of Bermuda-based reinsurers/specialty insurers has reported third-quarter earnings, and higher catastrophe losses and/or lower investment returns continue to impact results.

RenaissanceRe Holdings says income available to shareholders was down 76 percent to $49.3 million during the third quarter from $204.8 million during the same time a year ago.

Catastrophe losses for RenRe were “relatively modest” during the quarter, reports Neill A. Currie, chief executive officer, in a statement. However, volatility in the capital markets took a negative toll on investment results.

RenRe records a total investment loss of $18.6 million during the third quarter compared to investment income of $148.5 million during the 2010 third quarter.

Catastrophes, more than investment yields, affected third-quarter results for XL Group.

Net income for shareholders was down 45.3 percent to $42.4 million as XL says catastrophe losses totaled $110.6 million during the quarter.

Net investment income was $290.1 million compared to $296.7 million during the third quarter in 2010.

The company's property and casualty combined ratio was 101.6, up from 94.9 a year ago. XL reports an underwriting loss of $22.2 million.

Third-quarter net income was down 41.5 percent to $48.4 million at Alterra Capital Holdings.

Earnings were pressured by higher catastrophe losses and lower investment yields, says W. Marston Becker, president and chief executive officer, in a statement.

Catastrophe losses were $42.1 million, net of reinstatement premiums, up from $14.1 million a year ago during the third quarter. Losses include $21.8 million from natural disasters—including Hurricane Irene—during the third quarter plus increased loss estimates on events during the first half of the year.

At Axis Capital Holdings, third-quarter net income available to common shareholders was down 11.3 percent to $212 million compared to $239 million last year during the same period.

Axis reports per-tax catastrophe losses of $65 million related to Hurricane Irene, Tropical Storm Lee and flooding in Denmark.

Additionally, pre-tax net losses for first-half catastrophes (earthquakes in Japan and New Zealand) increased $26 million.

Net investment income decreased 59 percent to $49 million during the third quarter, Axis says.

Special Reports /

Bermuda Reinsurers&rsquo; 3Q Results Impacted by Catastrophes, Investment Yields

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