Bermuda-based RenaissanceRe Holdings Ltd. reported fourth-quarter net income of $201 million compared with a net loss of $210 million for the same year-ago period.
Gross premiums written for the fourth quarter were $195 million, compared with $289 million in the same 2005 period.
The company generated $177.3 million of underwriting income and had a combined ratio of 53.4 in the fourth quarter, compared with a $344 million loss and a combined ratio of 183 in the same 2005 period, which included Hurricane Wilma.
In other items, net investment income increased $24 million to $83 million in the fourth quarter of 2006.
Chief Executive Officer Neil Currie said the signs are pointing toward a softening in several of the company's markets.
“We also recognize that uncertainty created by recent legislative changes in Florida will reduce some of the demand for some of our products,” he said.
Florida's new property insurance law, enacted last week, includes a provision to allow primary insurers to purchase additional reinsurance from the state catastrophe fund at cheaper prices than they would see from a private reinsurer.
With that in mind, Mr. Currie said he expects top-line revenues will be down this year compared to last.
Managed catastrophe premiums for the year are now projected to decline 5 percent, as opposed to previous estimates of 15 percent growth.
The firm announced yesterday that the Securities and Exchange Commission had given final approval to a $15 million settlement to end an investigation of accounting irregularities.
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