RenRe Q1 Net Income Down on Lower Underwriting, Investment Income

RenaissanceRe reports 2013 first-quarter net income fell to $190.5 million compared to $201.4 million for the same period a year ago, as decreases in underwriting income, written premiums and investment income offset an improvement in weather and energy risk-management operations.

Underwriting income in the quarter dropped to $173 million compared to $196.6 million in 2012's first quarter. RenaissanceRe says in a statement that the drop was due to lower favorable development and lower earned premiums.

The Pembroke, Bermuda-based compay says its combined ratio rose to 36.2 in Q1 2013 compared to 29.4 the year before. Net claims and claim expenses incurred climbed to $27.3 million compared to $15.6 million a year ago.

Gross premiums written dropped to $635.4 million from $664.2 million in 2012's first quarter.

Net investment income was $43.6 million in Q1 2013, down from $67 million the year before, and net realized and unrealized gains on investments dropped to $13.9 million from $46.1 million.

In total, revenues were down in the first quarter to $343.3 million and total expenses were up to $107.8 million, compared to 2012 first quarter total revenues of $356.5 million and expenses of $92.6 million.

RenRe says “other income improved to $7 million in the quarter compared to a loss of $39.1 million the year before, “primarily due to $8.7 million of income in the company's weather and energy risk-management operations, compared to a loss of $35.5 million from such operations as a result of unusually warm weather experienced in parts of the United Kingdom and certain parts of the United States during the first quarter of 2012.

While results were down from last year, CEO Neill A. Currie says in a statement that RenRe still enjoyed a strong first quarter. “Our results reflect strong underwriting profits, principally driven by our high-quality portfolio, the absence of significant catastrophe losses in the quarter, and solid total returns in our investment portfolio,” says Currie.