RenRe 2Q Profit Down 88% on Tornadoes; Endurance Falls 30%

NU Online News Service, July 27, 11:39 a.m. EST

The second-quarter financial results of Pembroke, Bermuda-based reinsurance and insurance companies RenaissanceRe Holdings Ltd. and Endurance Specialty Holdings Ltd. were each adversely affected by losses tied to the tornado activity in the United States.

Tornado activity during the second quarter cost RenRe nearly $71 million as it reported net income of $24.8 million compared to $210.2 million during the same period a year ago.

Chief Executive Officer Neil A. Currie says RenRe increased its catastrophe premiums by more than 15 percent at June 1 renewals.

Losses attributed to the tornado activity during the second quarter added 51.8 points to RenRe's combined ratio of 95.5 as underwriting income sank to $9.7 million from $169.4 million during the 2010 second quarter.

Catastrophe losses add 12.8 points to Endurance's second quarter combined ratio of 101.9. The company said it was affected by catastrophe losses around the world and severe drought in the Southwest U.S.

Endurance says net income for the second quarter was $41.1 million compared to $58.6 million for the 2010 second quarter.

Endurance's reinsurance segment was hurt by $61.8 million in losses from the U.S. tornadoes in April and May, the company says. The segment's combined ratio was 106.4, with 26.5 points coming from the catastrophe losses.

Net premiums written in the reinsurance segment grew nearly 5 percent, but net premiums written decreased 11 percent in the insurance segment for Endurance.

For RenRe, net premiums written during the quarter jumped to about $423 million from $329 million a year ago during the same period.