RenaissanceRe Reports Income Gain

Gross premiums written for the second quarter increased by 122 percent to $270.3 million, compared to $122.0 million for the same quarter of 2001. Net premiums written for the second quarter were $198.5 million, compared to $92.9 million for the same quarter of 2001.

Net premiums earned for the quarter were $184.7 million, compared to $75.5 million for the same period last year. Those premiums include $34.8 million of gross written premiums, $34.8 million of net written premiums, and $34.2 million of net premiums earned by the company's consolidated joint venture, DaVinci Re, during the second quarter.

Total managed catastrophe premiums written, representing gross catastrophe premiums written by RenaissanceRe Holdings Ltd. and by related joint ventures, increased by 56 percent to $144.8 million for the second quarter, compared to $92.6 million for the same quarter of 2001.

Net investment income, excluding realized and unrealized investment gains and losses, for the second quarter increased to $26.4 million, compared to $18.3 million for the same period in 2001, primarily due to the company's capital-raising activities during the second half of 2001 and cash flows from operations.

"We are very pleased with the 56 percent increase we achieve in managed cat premium in the quarter, and with the accelerating growth trends in our specialty reinsurance and Glencoe insurance businesses," said James N. Stanard, chairman and chief executive officer of RenaissanceRe, in a statement.

"To support the growth of our catastrophe business, we utilized our joint ventures and increased our purchases of reinsurance. Our 31 percent annualized return on equity reflects the inherent earnings power of our business in periods with limited catastrophe loss activity," he said.

"Assuming normal loss activity for the balance of the year, we are increasing our earnings per share estimates for 2002 to a range of $4.45 to $4.60, reflecting the strong earnings we achieved as a result of the limited losses in the second quarter, as well as the growth in our business," Mr. Stanard added.

For the six months ended June 30, net operating income available to common shareholders (excluding realized and loss on investments, and excluding the cumulative effect of a change in accounting principle) was $179.9 million, or $2.57 per common share, compared to $74.7 million, or $1.23 per common share for the same period in 2001.

Net income available to common shareholders for the six months ended June 30 was $174.3 million, or $2.49 per common share, compared to $85.2 million, or $1.41 per common share for the same period in 2001.

In conjunction with the adoption of Statement of Financial Accounting Standard 142, Goodwill and Other Tangible Assets, the company wrote off the entire balance of its goodwill, or $9.2 million. This charge has been reflected as a cumulative effect of a change in accounting principle and is excluded from the net income for the current quarter, and included in the company's net income for the six months ended June 30.

Gross premiums written for the six months ended June 30 were $731.1 million, compared to $320.2 million for the same period of 2001. Net premiums written for the six months ended June 30 were $577.6 million, compared to $214.2 million for the same period of 2001.

Net premiums earned for the first six months were $335.1 million, compared to $159.4 million for the same period of 2001. Those premiums include $130.1 million of gross written premiums, $130.1 million of net written premiums, and $57.8 million of net premiums earned by DaVinci Re during the first half of 2002.

Total managed cat premiums for the six months ended June 30 increased by 68 percent to $515.2 million, from $307.2 million for the same period of 2001.

Net investment income for the first six months of 2002 was $49.1 million, compared to $36.2 million for the same period in 2001.