SEGMENT REPORTING

The Company has the following reportable segments: (1) Catastrophe Reinsurance, which includes catastrophe reinsurance and certain property catastrophe joint ventures managed by the Company’s ventures unit; (2) Specialty Reinsurance, which includes specialty reinsurance and certain specialty joint ventures managed by the Company’s ventures unit; and (3) Lloyd’s, which includes reinsurance and insurance business written through Syndicate 1458. RenaissanceRe CCL, an indirect wholly owned subsidiary of RenaissanceRe, is the sole corporate member of Syndicate 1458. All prior periods presented have been reclassified to conform to this presentation.

The financial results of the Company’s strategic investments, former Insurance segment, discontinued operations related to REAL and current 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 June 30, 2014	Catastrophe Reinsurance			Specialty Reinsurance			Lloyd’s			Other			Total
Gross premiums written	$	388,083		$	51,554		$	71,903		$	—		$	511,540
Net premiums written	$	233,698		$	46,254		$	66,452		$	3		$	346,407
Net premiums earned	$	159,152		$	53,588		$	47,672		$	4		$	260,416
Net claims and claim expenses incurred	36,730			20,075			25,111			(528		)	81,388
Acquisition expenses	17,806			11,699			10,122			(6,150		)	33,477
Operational expenses	22,200			10,514			13,058			69			45,841
Underwriting income (loss)	$	82,416		$	11,300		$	(619	)	$	6,613		99,710
Net investment income										34,541			34,541
Net foreign exchange gains										2,392			2,392
Equity in earnings of other ventures										7,232			7,232
Other loss										(535		)	(535		)
Net realized and unrealized gains on investments										27,128			27,128
Corporate expenses										(3,954		)	(3,954		)
Interest expense										(4,292		)	(4,292		)
Income before taxes and noncontrolling interests													162,222
Income tax benefit										204			204
Net income attributable to noncontrolling interests										(36,078		)	(36,078		)
Dividends on preference shares										(5,596		)	(5,596		)
Net income available to RenaissanceRe common shareholders													$	120,752

Net claims and claim expenses incurred – current accident year	$	38,473		$	25,443		$	34,555		$	—		$	98,471
Net claims and claim expenses incurred – prior accident years	(1,743		)	(5,368		)	(9,444		)	(528		)	(17,083		)
Net claims and claim expenses incurred – total	$	36,730		$	20,075		$	25,111		$	(528	)	$	81,388

Net claims and claim expense ratio – current accident year	24.2		%	47.5		%	72.5		%	—		%	37.8		%
Net claims and claim expense ratio – prior accident years	(1.1		)%	(10.0		)%	(19.8		)%	(13,200.0		)%	(6.5		)%
Net claims and claim expense ratio – calendar year	23.1		%	37.5		%	52.7		%	(13,200.0		)%	31.3		%
Underwriting expense ratio	25.1		%	41.4		%	48.6		%	(152,025.0		)%	30.4		%
Combined ratio	48.2		%	78.9		%	101.3		%	(165,225.0		)%	61.7		%




Six months ended June 30, 2014	Catastrophe Reinsurance			Specialty Reinsurance			Lloyd’s			Other			Total
Gross premiums written	$	855,794		$	205,844		$	155,162		$	—		$	1,216,800
Net premiums written	$	493,187		$	171,743		$	131,821		$	3		$	796,754
Net premiums earned	$	323,736		$	123,218		$	99,969		$	27		$	546,950
Net claims and claim expenses incurred	43,185			46,156			51,392			(430		)	140,303
Acquisition expenses	24,932			28,246			20,689			(6,690		)	67,177
Operational expenses	42,619			20,620			25,091			135			88,465
Underwriting income	$	213,000		$	28,196		$	2,797		$	7,012		251,005
Net investment income										73,489			73,489
Net foreign exchange gains										1,331			1,331
Equity in earnings of other ventures										11,431			11,431
Other loss										(473		)	(473		)
Net realized and unrealized gains on investments										42,055			42,055
Corporate expenses										(8,499		)	(8,499		)
Interest expense										(8,585		)	(8,585		)
Income before taxes and noncontrolling interests													361,754
Income tax benefit										38			38
Net income attributable to noncontrolling interests										(78,846		)	(78,846		)
Dividends on preference shares										(11,191		)	(11,191		)
Net income available to RenaissanceRe common shareholders													$	271,755

Net claims and claim expenses incurred – current accident year	$	51,002		$	67,365		$	55,712		$	—		$	174,079
Net claims and claim expenses incurred – prior accident years	(7,817		)	(21,209		)	(4,320		)	(430		)	(33,776		)
Net claims and claim expenses incurred – total	$	43,185		$	46,156		$	51,392		$	(430	)	$	140,303

Net claims and claim expense ratio – current accident year	15.8		%	54.7		%	55.7		%	—		%	31.8		%
Net claims and claim expense ratio – prior accident years	(2.5		)%	(17.2		)%	(4.3		)%	(1,592.6		)%	(6.1		)%
Net claims and claim expense ratio – calendar year	13.3		%	37.5		%	51.4		%	(1,592.6		)%	25.7		%
Underwriting expense ratio	20.9		%	39.6		%	45.8		%	(24,277.8		)%	28.4		%
Combined ratio	34.2		%	77.1		%	97.2		%	(25,870.4		)%	54.1		%




Three months ended June 30, 2013	Catastrophe Reinsurance			Specialty Reinsurance			Lloyd’s			Other			Total
Gross premiums written (1)	$	576,903		$	58,539		$	68,769		$	(988	)	$	703,223
Net premiums written	$	436,852		$	57,348		$	64,643		$	266		$	559,109
Net premiums earned	$	200,483		$	49,206		$	41,933		$	267		$	291,889
Net claims and claim expenses incurred	52,915			25,511			25,536			—			103,962
Acquisition expenses	14,197			9,009			8,484			77			31,767
Operational expenses	23,599			7,595			11,456			139			42,789
Underwriting income (loss)	$	109,772		$	7,091		$	(3,543	)	$	51		113,371
Net investment income										26,163			26,163
Net foreign exchange losses										(932		)	(932		)
Equity in earnings of other ventures										3,772			3,772
Other loss										(1,128		)	(1,128		)
Net realized and unrealized losses on investments										(69,529		)	(69,529		)
Corporate expenses										(21,529		)	(21,529		)
Interest expense										(4,300		)	(4,300		)
Income from continuing operations before taxes													45,888
Income tax expense										(11		)	(11		)
Income from discontinued operations										2,427			2,427
Net income attributable to noncontrolling interests										(14,015		)	(14,015		)
Dividends on preference shares										(7,483		)	(7,483		)
Net income attributable to RenaissanceRe common shareholders													$	26,806

Net claims and claim expenses incurred – current accident year	$	71,369		$	30,903		$	28,517		$	—		$	130,789
Net claims and claim expenses incurred – prior accident years	(18,454		)	(5,392		)	(2,981		)	—			(26,827		)
Net claims and claim expenses incurred – total	$	52,915		$	25,511		$	25,536		$	—		$	103,962

Net claims and claim expense ratio – current accident year	35.6		%	62.8		%	68.0		%	—		%	44.8		%
Net claims and claim expense ratio – prior accident years	(9.2		)%	(11.0		)%	(7.1		)%	—		%	(9.2		)%
Net claims and claim expense ratio – calendar year	26.4		%	51.8		%	60.9		%	—		%	35.6		%
Underwriting expense ratio	18.8		%	33.8		%	47.5		%	80.9		%	25.6		%
Combined ratio	45.2		%	85.6		%	108.4		%	80.9		%	61.2		%

(1) Included in gross premiums written in the Other category is the elimination of inter-segment gross premiums written of $1.0 million.




Six months ended June 30, 2013	Catastrophe Reinsurance			Specialty Reinsurance			Lloyd’s			Other			Total
Gross premiums written (1)	$	1,055,699		$	140,869		$	143,061		$	(988	)	$	1,338,641
Net premiums written	$	742,205		$	132,867		$	120,567		$	283		$	995,922
Net premiums earned	$	387,134		$	96,015		$	79,712		$	283		$	563,144
Net claims and claim expenses incurred	55,623			36,203			40,064			(677		)	131,213
Acquisition expenses	23,817			17,448			15,400			111			56,776
Operational expenses	49,714			15,155			23,634			272			88,775
Underwriting income	$	257,980		$	27,209		$	614		$	577		286,380
Net investment income										69,365			69,365
Net foreign exchange losses										(318		)	(318		)
Equity in earnings of other ventures										9,607			9,607
Other loss										(2,837		)	(2,837		)
Net realized and unrealized losses on investments										(55,260		)	(55,260		)
Corporate expenses										(26,011		)	(26,011		)
Interest expense										(9,334		)	(9,334		)
Income from continuing operations before taxes													271,592
Income tax expense										(133		)	(133		)
Income from discontinued operations										12,201			12,201
Net income attributable to noncontrolling interests										(52,622		)	(52,622		)
Dividends on preference shares										(13,758		)	(13,758		)
Net income attributable to RenaissanceRe common shareholders													$	217,280

Net claims and claim expenses incurred – current accident year	$	92,545		$	56,756		$	46,388		$	—		$	195,689
Net claims and claim expenses incurred – prior accident years	(36,922		)	(20,553		)	(6,324		)	(677		)	(64,476		)
Net claims and claim expenses incurred – total	$	55,623		$	36,203		$	40,064		$	(677	)	$	131,213

Net claims and claim expense ratio – current accident year	23.9		%	59.1		%	58.2		%	—		%	34.7		%
Net claims and claim expense ratio – prior accident years	(9.5		)%	(21.4		)%	(7.9		)%	(239.2		)%	(11.4		)%
Net claims and claim expense ratio – calendar year	14.4		%	37.7		%	50.3		%	(239.2		)%	23.3		%
Underwriting expense ratio	19.0		%	34.0		%	48.9		%	135.3		%	25.9		%
Combined ratio	33.4		%	71.7		%	99.2		%	(103.9		)%	49.2		%

(1) Included in gross premiums written in the Other category is the elimination of inter-segment gross premiums written of $1.0 million.