RenaissanceRe's Net Income Rises 28.3 percent

"We again delivered outstanding financial results in the third quarter," said James N. Stanard, chairman and CEO, in a statement from the company. "Our reinsurance segment performed in line with our expectations and continued to deliver market leading returns on equity."

Mr. Stanard noted that managed catastrophe premiums "are roughly flat for the nine months, although quarterly premiums have fluctuated as large programs move in and out of our portfolio."

The individual risk segment, which includes primary insurance and quota share reinsurance, showed strong growth during the quarter?generating premium growth of over 50 percent from the 2002 third quarter, Mr. Stanard said. He said that this growth figure excludes the benefit of $50 million of premium associated with the assumption of a portfolio of business this year.

For the nine months ended Sept. 30, 2003, net income was $444.7 million, or $6.26 per common share, compared to $262.6 million, or $3.75 per common share, for the same period in 2002. Net operating income for the nine-month period of 2003 was $372.8 million, or $5.25 per common share, compared to $258 million, or $3.68 per common share, for the same period in 2002. Operating income excludes realized investment gains of $71.9 million and $13.7 million for the nine months ended Sept. 30, 2003 and 2002, respectively, and, in 2002, the cumulative effect of a change in accounting principle of $9.2 million.

Gross premiums written for the third quarter of 2003 were $313.3 million, compared to $282.6 million for the same quarter of 2002. Net premiums written for the third quarter of 2003 were $236.6 million, compared to $192.7 million for the same quarter of 2002. Net premiums earned for the third quarter of 2003 were $277.4 million, compared to $191.3 million for the same quarter of 2002. Those premiums include $25.1 million of gross written premiums, $29.5 million of net written premiums and $49.9 million of net premiums earned by RenRe's consolidated joint venture, DaVinci Re, during the third quarter of 2003, compared to $38.5 million of gross written premiums, $36.2 million of net written premiums, and $42.3 million of net premiums earned by DaVinci Re during the third quarter of 2002.

Gross premiums written for the nine-month period ended Sept. 30, 2003, were $1.2 billion, compared to $1.0 billion for the same period of 2002. Net premiums written for the nine months ended Sept. 30, 2003, were $987.2 million, compared to $770.3 million for the same period of 2002. Net premiums earned for the nine-month period in 2003 were $816.4 million, compared to $526.4 million for the same period of 2002. Those premiums include $168.7 million of gross written premiums, $175 million of net written premiums and $145.7 million of net premiums earned by DaVinci Re during the first nine months of 2003, compared to $168.6 million of gross written premiums, $166.3 million of net written premiums and $100.1 million of net premiums earned by DaVinci Re for the nine-month period of 2002.

The company said its total managed catastrophe premiums written, which are gross catastrophe premiums written by Renaissance Reinsurance and by related joint ventures, came to $109.3 million for the third quarter, compared to $165.9 million for the same period in 2002. Total managed CAT premium for the nine months ended Sept. 30 were $677.8 million, compared to $681.1 million for the same period in 2002.

The company said that total individual risk premiums written during the quarter were $173.7 million, compared to $81.2 million for the same quarter of 2002. Individual risk premiums for the quarter include $50 million of premium from the assumption of an in-force book of business. Excluding the assumption of this portfolio, individual risk premiums increased by $42.5 million, or greater than 50 percent, from last year's third quarter. Total individual risk premiums written for the nine months ended Sept. 30 were $335.2 million, an 81 percent increase from the $185 million reported for the comparable period of 2002.