| Segment Reporting |
SEGMENT REPORTING The Company has three reportable segments: Reinsurance, Lloyd's and Insurance. The Company's Reinsurance operations are comprised of: 1) property catastrophe reinsurance, primarily written through Renaissance Reinsurance and DaVinci; 2) specialty reinsurance, primarily written through Renaissance Reinsurance and DaVinci; and 3) certain property catastrophe and specialty joint ventures, as described herein. The Reinsurance segment is managed by the Global Chief Underwriting Officer, who leads a team of underwriters, risk modelers and other industry professionals, who have access to the Company's proprietary risk management, underwriting and modeling resources and tools. The Company's Lloyd's segment includes reinsurance and insurance business written through Syndicate 1458. Syndicate 1458 started writing certain lines of insurance and reinsurance business incepting on or after June 1, 2009. The syndicate was established to enhance the Company's underwriting platform by providing access to Lloyd's extensive distribution network and worldwide licenses and is managed by the Chief Underwriting Officer Lloyd's. RenaissanceRe Corporate Capital (UK) Limited (“RenaissanceRe CCL”), an indirect wholly owned subsidiary of the Company, is the sole corporate member of Syndicate 1458. The Company's Insurance segment includes the operations of the Company's former Insurance segment that were not sold pursuant to the Stock Purchase Agreement with QBE, as discussed in “Note 1. Organization”. The Insurance segment is managed by the Global Chief Underwriting Officer. The Insurance business is written by Glencoe Insurance Ltd. (“Glencoe”). Glencoe is a Bermuda domiciled excess and surplus lines insurance company that is currently eligible to do business on an excess and surplus lines basis in 49 U.S. states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. The financial results of the Company's strategic investments, weather and energy risk management operations and noncontrolling interests are included in the Other category of the Company's segment results. Also included in the Other category of the Company's segment results are the Company's investments in other ventures, investments unit, corporate expenses and capital servicing costs. The Company does not manage its assets by segment; accordingly, net investment income and total assets are not allocated to the segments. A summary of the significant components of the Company's revenues and expenses is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended March 31, 2012 | Reinsurance | | Lloyd’s | | Insurance | | Eliminations (1) | | Other | | Total | | | Gross premiums written | $ | 609,762 |
| | $ | 54,817 |
| | $ | — |
| | $ | (428 | ) | | $ | — |
| | $ | 664,151 |
| | | Net premiums written | $ | 458,638 |
| | $ | 33,937 |
| | $ | — |
| | | | — |
| | $ | 492,575 |
| | | Net premiums earned | $ | 253,818 |
| | $ | 24,822 |
| | $ | 25 |
| | | | — |
| | $ | 278,665 |
| | | Net claims and claim expenses incurred | 8,324 |
| | 9,001 |
| | (1,773 | ) | | | | — |
| | 15,552 |
| | | Acquisition expenses | 19,386 |
| | 4,668 |
| | 57 |
| | | | — |
| | 24,111 |
| | | Operational expenses | 32,044 |
| | 10,057 |
| | 282 |
| | | | — |
| | 42,383 |
| | | Underwriting income | $ | 194,064 |
| | $ | 1,096 |
| | $ | 1,459 |
| | | | — |
| | 196,619 |
| | | Net investment income | | | | | | | | | 66,971 |
| | 66,971 |
| | | Net foreign exchange losses | | | | | | | | | (1,460 | ) | | (1,460 | ) | | | Equity in earnings of other ventures | | | | | | | | | 5,470 |
| | 5,470 |
| | | Other loss | | | | | | | | | (39,094 | ) | | (39,094 | ) | | | Net realized and unrealized gains on investments | | | | | | | | | 46,113 |
| | 46,113 |
| | | Net other-than-temporary impairments | | | | | | | | | (134 | ) | | (134 | ) | | | Corporate expenses | | | | | | | | | (4,811 | ) | | (4,811 | ) | | | Interest expense | | | | | | | | | (5,718 | ) | | (5,718 | ) | | | Income from continuing operations before taxes | | | | | | | | | | | 263,956 |
| | | Income tax benefit | | | | | | | | | 37 |
| | 37 |
| | | Loss from discontinued operations | | | | | | | | | (173 | ) | | (173 | ) | | | Net income attributable to noncontrolling interests | | | | | | | | | (53,641 | ) | | (53,641 | ) | | | Dividends on preference shares | | | | | | | | | (8,750 | ) | | (8,750 | ) | | | Net income attributable to RenaissanceRe common shareholders | | | | | | | | | | | $ | 201,429 |
| | | | | | | | | | | | | | | | | Net claims and claim expenses incurred – current accident year | $ | 55,144 |
| | $ | 16,280 |
| | $ | — |
| | | | | | $ | 71,424 |
| | | Net claims and claim expenses incurred – prior accident years | (46,820 | ) | | (7,279 | ) | | (1,773 | ) | | | | | | (55,872 | ) | | | Net claims and claim expenses incurred – total | $ | 8,324 |
| | $ | 9,001 |
| | $ | (1,773 | ) | | | | | | $ | 15,552 |
| | | | | | | | | | | | | | | | | Net claims and claim expense ratio – current accident year | 21.7 | % | | 65.6 | % | | — | % | | | | | | 25.6 | % | | | Net claims and claim expense ratio – prior accident years | (18.4 | )% | | (29.3 | )% | | (7,092.0 | )% | | | | | | (20.0 | )% | | | Net claims and claim expense ratio – calendar year | 3.3 | % | | 36.3 | % | | (7,092.0 | )% | | | | | | 5.6 | % | | | Underwriting expense ratio | 20.2 | % | | 59.3 | % | | 1,356.0 | % | | | | | | 23.8 | % | | | Combined ratio | 23.5 | % | | 95.6 | % | | (5,736.0 | )% | | | | | | 29.4 | % | | | | | | | | | | | | | | | |
| | (1) | Represents $0.4 million of gross premiums ceded from the Reinsurance segment to the Lloyd’s segment. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended March 31, 2011 | Reinsurance | | Lloyd’s | | Insurance | | Eliminations (1) | | Other | | Total | | | Gross premiums written | $ | 573,682 |
| | $ | 36,620 |
| | $ | 280 |
| | $ | (77 | ) | | $ | — |
| | $ | 610,505 |
| | | Net premiums written | $ | 423,566 |
| | $ | 28,737 |
| | $ | 272 |
| | | | — |
| | $ | 452,575 |
| | | Net premiums earned | $ | 289,429 |
| | $ | 15,674 |
| | $ | 438 |
| | | | — |
| | $ | 305,541 |
| | | Net claims and claim expenses incurred | 595,404 |
| | 30,523 |
| | 2,610 |
| | | | — |
| | 628,537 |
| | | Acquisition expenses | 29,792 |
| | 2,461 |
| | 82 |
| | | | — |
| | 32,335 |
| | | Operational expenses | 32,363 |
| | 8,972 |
| | 495 |
| | | | — |
| | 41,830 |
| | | Underwriting loss | $ | (368,130 | ) | | $ | (26,282 | ) | | $ | (2,749 | ) | | | | — |
| | (397,161 | ) | | | Net investment income | | | | | | | | | 60,281 |
| | 60,281 |
| | | Net foreign exchange gains | | | | | | | | | 660 |
| | 660 |
| | | Equity in losses of other ventures | | | | | | | | | (23,753 | ) | | (23,753 | ) | | | Other income | | | | | | | | | 50,145 |
| | 50,145 |
| | | Net realized and unrealized losses on investments | | | | | | | | | (5,214 | ) | | (5,214 | ) | | | Corporate expenses | | | | | | | | | (2,064 | ) | | (2,064 | ) | | | Interest expense | | | | | | | | | (6,195 | ) | | (6,195 | ) | | | Loss from continuing operations before taxes | | | | | | | | | | | (323,301 | ) | | | Income tax benefit | | | | | | | | | 52 |
| | 52 |
| | | Loss from discontinued operations | | | | | | | | | (1,526 | ) | | (1,526 | ) | | | Net loss attributable to redeemable noncontrolling interest – DaVinciRe | | | | | | | | | 85,492 |
| | 85,492 |
| | | Dividends on preference shares | | | | | | | | | (8,750 | ) | | (8,750 | ) | | | Net loss attributable to RenaissanceRe common shareholders | | | | | | | | | | | $ | (248,033 | ) | | | | | | | | | | | | | | | | | Net claims and claim expenses incurred – current accident year | $ | 667,362 |
| | $ | 29,326 |
| | $ | 9 |
|
| | | | | $ | 696,697 |
| | | Net claims and claim expenses incurred – prior accident years | (71,958 | ) | | 1,197 |
| | 2,601 |
| | | | | | (68,160 | ) | | | Net claims and claim expenses incurred – total | $ | 595,404 |
| | $ | 30,523 |
| | $ | 2,610 |
| | | | | | $ | 628,537 |
| | | | | | | | | | | | | | | | | Net claims and claim expense ratio – current accident year | 230.6 | % | | 187.1 | % | | 2.1 | % | | | | | | 228.0 | % | | | Net claims and claim expense ratio – prior accident years | (24.9 | )% | | 7.6 | % | | 593.8 | % | | | | | | (22.3 | )% | | | Net claims and claim expense ratio – calendar year | 205.7 | % | | 194.7 | % | | 595.9 | % | | | | | | 205.7 | % | | | Underwriting expense ratio | 21.5 | % | | 73.0 | % | | 131.7 | % | | | | | | 24.3 | % | | | Combined ratio | 227.2 | % | | 267.7 | % | | 727.6 | % | | | | | | 230.0 | % | | | | | | | | | | | | | | | |
| | (1) | Represents $0.1 million of gross premiums ceded from the Reinsurance segment to the Lloyd’s segment. |
|