NU Online News Service, May 3, 1:13 p.m.EDT

Two Bermuda reinsurers report positive gains in their netearnings for the first quarter of this year helped by lightcatastrophe losses during the period.

Pembroke, Bermuda-based RenaissanceRe Holdings Ltd. reports netincome of $201 million, or $3.88 a share, compared to net loss of$248 million, or loss per share of $4.69, for the same period lastyear.

Revenues dropped more than $31 million from 2010 to $357 millionduring the period.

Revenues were negatively impacted by $39 million in tradinglosses within the company's weather and energy risk managementoperations as a result of unusually warm weather in parts of theUnited Kingdom and the United States. There was also $1.8 billionloss on ceded reinsurance contacts as a result of “net recoverableson the Tohoku earthquake in the first quarter of 2011 which did notreoccur in the first quarter of 2012.”

“Our results reflect a light catastrophe loss quarter, stronginvestment returns and favorable development,” says Neill A.Currie, chief executive officer of RenaissanceRe in a statement.“We also benefited from a successful January 1^st renewalseason in which we deployed more capital, increased our premiums byover 30 percent in each of our [catastrophe], specialty and Lloyd'sunits, and constructed an attractive portfolio of business.”

The company reports underwriting income of $197 million and acombined ratio of 29.4 for the first quarter of 2012 compared to anunderwriting loss of $397 million and combined ratio of 230 for thefirst quarter of 2011.

The 2011 results were impacted by Australian flooding and theNew Zealand and Tohoku earthquakes.

In an analyst's note from Deutsche Bank, the report saysRenaissanceRe operating earnings per share of $2.98 beat streetconsensus of $2.42 and Deutsche Bank's own estimate of $2.14. Thereason for the difference is the net favorable reserve developmentof $49 million.

The company did have investment gains of close to $43 millionrelated to hedge funds, private equity and other non-traditionaloffsetting the trading losses, says Deutsche Bank.

Last week, Partner Re Ltd., based in Pembroke, reported netincome of $360 million, or $5.24 a share, for the first quarter of2012 compared to net loss of $807 million or $11.99 a share for theprevious year.

Total revenues grew 20 percent, or $226 million, to $1.33billion.

The company's first quarter combined ratio stood at 84.7, animprovement from last year's combined ratio of 193.7.

“We had a good first quarter with consistently strongunderwriting results in all our segments, resulting in 13 percentoperating return on beginning equity,” said Costas Miranthis,president and chief executive for Partner Re. “We also hadsignificant gains in our investment portfolio and this enabled usto grow our book value per share approximately 6 percent during thequarter. These results give us a good start to the year.”

The company, which is a mix of non-life and life business, saysnet written premiums were flat at $1.5 billion. New business growthin some segments was offset by decreases in the catastrophe exposedbusiness.

Updated 1:40 p.m. EDT with report from DeutscheBank.