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 September 30, 2014	Catastrophe Reinsurance			Specialty Reinsurance			Lloyd’s			Other			Total
Gross premiums written	$	68,252		$	68,883		$	63,857		$	—		$	200,992
Net premiums written	$	41,807		$	61,879		$	56,027		$	—		$	159,713
Net premiums earned	$	136,719		$	63,473		$	58,788		$	(1	)	$	258,979
Net claims and claim expenses incurred	(666		)	31,759			39,027			(473		)	69,647
Acquisition expenses	9,131			15,806			12,614			(1		)	37,550
Operational expenses	24,154			10,234			12,475			109			46,972
Underwriting income (loss)	$	104,100		$	5,674		$	(5,328	)	$	364		104,810
Net investment income										24,941			24,941
Net foreign exchange gains										5,036			5,036
Equity in earnings of other ventures										9,806			9,806
Other loss										(1,169		)	(1,169		)
Net realized and unrealized losses on investments										(31,097		)	(31,097		)
Corporate expenses										(3,905		)	(3,905		)
Interest expense										(4,290		)	(4,290		)
Income before taxes and noncontrolling interests													104,132
Income tax expense										(245		)	(245		)
Net income attributable to noncontrolling interests										(30,477		)	(30,477		)
Dividends on preference shares										(5,595		)	(5,595		)
Net income available to RenaissanceRe common shareholders													$	67,815

Net claims and claim expenses incurred – current accident year	$	9,661		$	46,444		$	38,882		$	—		$	94,987
Net claims and claim expenses incurred – prior accident years	(10,327		)	(14,685		)	145			(473		)	(25,340		)
Net claims and claim expenses incurred – total	$	(666	)	$	31,759		$	39,027		$	(473	)	$	69,647

Net claims and claim expense ratio – current accident year	7.1		%	73.2		%	66.1		%	—		%	36.7		%
Net claims and claim expense ratio – prior accident years	(7.6		)%	(23.2		)%	0.3		%	47,300.0		%	(9.8		)%
Net claims and claim expense ratio – calendar year	(0.5		)%	50.0		%	66.4		%	47,300.0		%	26.9		%
Underwriting expense ratio	24.4		%	41.1		%	42.7		%	(10,800.0		)%	32.6		%
Combined ratio	23.9		%	91.1		%	109.1		%	36,500.0		%	59.5		%




Nine months ended September 30, 2014	Catastrophe Reinsurance			Specialty Reinsurance			Lloyd’s			Other			Total
Gross premiums written	$	924,046		$	274,727		$	219,019		$	—		$	1,417,792
Net premiums written	$	534,994		$	233,622		$	187,848		$	3		$	956,467
Net premiums earned	$	460,455		$	186,691		$	158,757		$	26		$	805,929
Net claims and claim expenses incurred	42,519			77,915			90,419			(903		)	209,950
Acquisition expenses	34,063			44,052			33,303			(6,691		)	104,727
Operational expenses	66,773			30,854			37,566			244			135,437
Underwriting income (loss)	$	317,100		$	33,870		$	(2,531	)	$	7,376		355,815
Net investment income										98,430			98,430
Net foreign exchange gains										6,367			6,367
Equity in earnings of other ventures										21,237			21,237
Other loss										(1,642		)	(1,642		)
Net realized and unrealized gains on investments										10,958			10,958
Corporate expenses										(12,404		)	(12,404		)
Interest expense										(12,875		)	(12,875		)
Income before taxes and noncontrolling interests													465,886
Income tax expense										(207		)	(207		)
Net income attributable to noncontrolling interests										(109,323		)	(109,323		)
Dividends on preference shares										(16,786		)	(16,786		)
Net income available to RenaissanceRe common shareholders													$	339,570

Net claims and claim expenses incurred – current accident year	$	60,663		$	113,809		$	94,594		$	—		$	269,066
Net claims and claim expenses incurred – prior accident years	(18,144		)	(35,894		)	(4,175		)	(903		)	(59,116		)
Net claims and claim expenses incurred – total	$	42,519		$	77,915		$	90,419		$	(903	)	$	209,950

Net claims and claim expense ratio – current accident year	13.2		%	61.0		%	59.6		%	—		%	33.4		%
Net claims and claim expense ratio – prior accident years	(4.0		)%	(19.3		)%	(2.6		)%	(3,473.1		)%	(7.3		)%
Net claims and claim expense ratio – calendar year	9.2		%	41.7		%	57.0		%	(3,473.1		)%	26.1		%
Underwriting expense ratio	21.9		%	40.2		%	44.6		%	(24,796.1		)%	29.8		%
Combined ratio	31.1		%	81.9		%	101.6		%	(28,269.2		)%	55.9		%




Three months ended September 30, 2013	Catastrophe Reinsurance			Specialty Reinsurance			Lloyd’s			Other			Total
Gross premiums written	$	82,539		$	60,156		$	39,954		$	—		$	182,649
Net premiums written	$	32,380		$	55,717		$	39,014		$	130		$	127,241
Net premiums earned	$	184,416		$	63,045		$	47,150		$	106		$	294,717
Net claims and claim expenses incurred	16,897			17,520			28,175			(1,664		)	60,928
Acquisition expenses	14,049			14,691			8,938			21			37,699
Operational expenses	24,573			7,303			12,559			237			44,672
Underwriting income (loss)	$	128,897		$	23,531		$	(2,522	)	$	1,512		151,418
Net investment income										59,931			59,931
Net foreign exchange gains										488			488
Equity in earnings of other ventures										7,313			7,313
Other income										651			651
Net realized and unrealized gains on investments										28,472			28,472
Corporate expenses										(4,307		)	(4,307		)
Interest expense										(4,298		)	(4,298		)
Income from continuing operations before taxes													239,668
Income tax expense										(223		)	(223		)
Loss from discontinued operations										(9,779		)	(9,779		)
Net income attributable to noncontrolling interests										(44,331		)	(44,331		)
Dividends on preference shares										(5,595		)	(5,595		)
Net income attributable to RenaissanceRe common shareholders													$	179,740

Net claims and claim expenses incurred – current accident year	$	23,041		$	20,227		$	24,886		$	—		$	68,154
Net claims and claim expenses incurred – prior accident years	(6,144		)	(2,707		)	3,289			(1,664		)	(7,226		)
Net claims and claim expenses incurred – total	$	16,897		$	17,520		$	28,175		$	(1,664	)	$	60,928

Net claims and claim expense ratio – current accident year	12.5		%	32.1		%	52.8		%	—		%	23.1		%
Net claims and claim expense ratio – prior accident years	(3.3		)%	(4.3		)%	7.0		%	(1,569.8		)%	(2.4		)%
Net claims and claim expense ratio – calendar year	9.2		%	27.8		%	59.8		%	(1,569.8		)%	20.7		%
Underwriting expense ratio	20.9		%	34.9		%	45.5		%	243.4		%	27.9		%
Combined ratio	30.1		%	62.7		%	105.3		%	(1,326.4		)%	48.6		%




Nine months ended September 30, 2013	Catastrophe Reinsurance			Specialty Reinsurance			Lloyd’s			Other			Total
Gross premiums written (1)	$	1,138,238		$	201,025		$	183,015		$	(988	)	$	1,521,290
Net premiums written	$	774,585		$	188,584		$	159,581		$	413		$	1,123,163
Net premiums earned	$	571,550		$	159,060		$	126,862		$	389		$	857,861
Net claims and claim expenses incurred	72,520			53,723			68,239			(2,341		)	192,141
Acquisition expenses	37,866			32,139			24,338			132			94,475
Operational expenses	74,287			22,458			36,193			509			133,447
Underwriting income (loss)	$	386,877		$	50,740		$	(1,908	)	$	2,089		437,798
Net investment income										129,296			129,296
Net foreign exchange gains										170			170
Equity in earnings of other ventures										16,920			16,920
Other loss										(2,186		)	(2,186		)
Net realized and unrealized losses on investments										(26,788		)	(26,788		)
Corporate expenses										(30,318		)	(30,318		)
Interest expense										(13,632		)	(13,632		)
Income from continuing operations before taxes													511,260
Income tax expense										(356		)	(356		)
Income from discontinued operations										2,422			2,422
Net income attributable to noncontrolling interests										(96,953		)	(96,953		)
Dividends on preference shares										(19,353		)	(19,353		)
Net income attributable to RenaissanceRe common shareholders													$	397,020

Net claims and claim expenses incurred – current accident year	$	115,586		$	76,983		$	71,274		$	—		$	263,843
Net claims and claim expenses incurred – prior accident years	(43,066		)	(23,260		)	(3,035		)	(2,341		)	(71,702		)
Net claims and claim expenses incurred – total	$	72,520		$	53,723		$	68,239		$	(2,341	)	$	192,141

Net claims and claim expense ratio – current accident year	20.2		%	48.4		%	56.2		%	—		%	30.8		%
Net claims and claim expense ratio – prior accident years	(7.5		)%	(14.6		)%	(2.4		)%	(601.8		)%	(8.4		)%
Net claims and claim expense ratio – calendar year	12.7		%	33.8		%	53.8		%	(601.8		)%	22.4		%
Underwriting expense ratio	19.6		%	34.3		%	47.7		%	164.8		%	26.6		%
Combined ratio	32.3		%	68.1		%	101.5		%	(437.0		)%	49.0		%

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