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.

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:




Twelve months ended December 31, 2014	Catastrophe Reinsurance			Specialty Reinsurance			Lloyd’s			Other			Total
Gross premiums written (1)	$	933,969		$	346,638		$	269,656		$	309		$	1,550,572
Net premiums written	$	541,608		$	295,855		$	230,429		$	344		$	1,068,236
Net premiums earned	$	590,845		$	253,537		$	217,666		$	368		$	1,062,416
Net claims and claim expenses incurred	1,757			88,502			113,825			(6,137		)	197,947
Acquisition expenses	43,161			60,936			46,927			(6,548		)	144,476
Operational expenses	95,851			43,370			51,115			303			190,639
Underwriting income	$	450,076		$	60,729		$	5,799		$	12,750		529,354
Net investment income										124,316			124,316
Net foreign exchange gains										6,260			6,260
Equity in earnings of other ventures										26,075			26,075
Other loss										(423		)	(423		)
Net realized and unrealized gains on investments										41,433			41,433
Corporate expenses										(22,987		)	(22,987		)
Interest expense										(17,164		)	(17,164		)
Income before taxes and noncontrolling interests													686,864
Income tax expense										(608		)	(608		)
Net income attributable to noncontrolling interests										(153,538		)	(153,538		)
Dividends on preference shares										(22,381		)	(22,381		)
Net income available to RenaissanceRe common shareholders													$	510,337

Net claims and claim expenses incurred – current accident year	$	67,268		$	144,411		$	130,066		$	—		$	341,745
Net claims and claim expenses incurred – prior accident years	(65,511		)	(55,909		)	(16,241		)	(6,137		)	(143,798		)
Net claims and claim expenses incurred – total	$	1,757		$	88,502		$	113,825		$	(6,137	)	$	197,947

Net claims and claim expense ratio – current accident year	11.4		%	57.0		%	59.8		%	—		%	32.2		%
Net claims and claim expense ratio – prior accident years	(11.1		)%	(22.1		)%	(7.5		)%	(1,667.7		)%	(13.6		)%
Net claims and claim expense ratio – calendar year	0.3		%	34.9		%	52.3		%	(1,667.7		)%	18.6		%
Underwriting expense ratio	23.5		%	41.1		%	45.0		%	(1,697.0		)%	31.6		%
Combined ratio	23.8		%	76.0		%	97.3		%	(3,364.7		)%	50.2		%

(1) Included in gross premiums written in the Other category is inter-segment gross premiums written of $0.3 million.




Twelve months ended December 31, 2013	Catastrophe Reinsurance			Specialty Reinsurance			Lloyd’s			Other			Total
Gross premiums written (1)	$	1,120,379		$	259,489		$	226,532		$	(988	)	$	1,605,412
Net premiums written	$	753,078		$	248,562		$	201,697		$	610		$	1,203,947
Net premiums earned	$	723,705		$	214,306		$	176,029		$	586		$	1,114,626
Net claims and claim expenses incurred	7,908			67,236			95,693			450			171,287
Acquisition expenses	49,161			41,538			34,823			(21		)	125,501
Operational expenses	108,130			31,780			50,540			655			191,105
Underwriting income (loss)	$	558,506		$	73,752		$	(5,027	)	$	(498	)	626,733
Net investment income										208,028			208,028
Net foreign exchange gains										1,917			1,917
Equity in earnings of other ventures										23,194			23,194
Other loss										(2,359		)	(2,359		)
Net realized and unrealized gains on investments										35,076			35,076
Corporate expenses										(33,622		)	(33,622		)
Interest expense										(17,929		)	(17,929		)
Income from continuing operations before taxes and noncontrolling interests													841,038
Income tax expense										(1,692		)	(1,692		)
Income from discontinued operations										2,422			2,422
Net income attributable to noncontrolling interests										(151,144		)	(151,144		)
Dividends on preference shares										(24,948		)	(24,948		)
Net income available to RenaissanceRe common shareholders													$	665,676

Net claims and claim expenses incurred – current accident year	$	109,945		$	101,347		$	103,949		$	—		$	315,241
Net claims and claim expenses incurred – prior accident years	(102,037		)	(34,111		)	(8,256		)	450			(143,954		)
Net claims and claim expenses incurred – total	$	7,908		$	67,236		$	95,693		$	450		$	171,287

Net claims and claim expense ratio – current accident year	15.2		%	47.3		%	59.1		%	—		%	28.3		%
Net claims and claim expense ratio – prior accident years	(14.1		)%	(15.9		)%	(4.7		)%	76.8		%	(12.9		)%
Net claims and claim expense ratio – calendar year	1.1		%	31.4		%	54.4		%	76.8		%	15.4		%
Underwriting expense ratio	21.7		%	34.2		%	48.5		%	108.2		%	28.4		%
Combined ratio	22.8		%	65.6		%	102.9		%	185.0		%	43.8		%

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




Year ended December 31, 2012	Catastrophe Reinsurance			Specialty Reinsurance			Lloyd’s			Other			Total
Gross premiums written (1)	$	1,182,207		$	209,887		$	159,987		$	(490	)	$	1,551,591
Net premiums written	$	766,035		$	201,552		$	135,131		$	(61	)	$	1,102,657
Net premiums earned	$	781,738		$	164,685		$	122,968		$	(36	)	$	1,069,355
Net claims and claim expenses incurred	165,209			76,813			80,242			2,947			325,211
Acquisition expenses	66,665			23,826			22,864			187			113,542
Operational expenses	103,811			29,124			45,680			536			179,151
Underwriting income (loss)	$	446,053		$	34,922		$	(25,818	)	$	(3,706	)	451,451
Net investment income										165,725			165,725
Net foreign exchange gains										5,319			5,319
Equity in earnings of other ventures										23,238			23,238
Other loss										(2,120		)	(2,120		)
Net realized and unrealized gains on investments										163,121			163,121
Net other-than-temporary impairments										(343		)	(343		)
Corporate expenses										(16,456		)	(16,456		)
Interest expense										(23,097		)	(23,097		)
Income from continuing operations before taxes													766,838
Income tax expense										(1,413		)	(1,413		)
Loss from discontinued operations										(16,476		)	(16,476		)
Net income attributable to noncontrolling interests										(148,040		)	(148,040		)
Dividends on preference shares										(34,895		)	(34,895		)
Net income attributable to RenaissanceRe common shareholders													$	566,014

Net claims and claim expenses incurred – current accident year	$	275,777		$	110,959		$	96,444		$	—		$	483,180
Net claims and claim expenses incurred – prior accident years	(110,568		)	(34,146		)	(16,202		)	2,947			(157,969		)
Net claims and claim expenses incurred – total	$	165,209		$	76,813		$	80,242		$	2,947		$	325,211

Net claims and claim expense ratio – current accident year	35.3		%	67.4		%	78.4		%	—		%	45.2		%
Net claims and claim expense ratio – prior accident years	(14.2		)%	(20.8		)%	(13.1		)%	(8,186.1		)%	(14.8		)%
Net claims and claim expense ratio – calendar year	21.1		%	46.6		%	65.3		%	(8,186.1		)%	30.4		%
Underwriting expense ratio	21.8		%	32.2		%	55.7		%	(2,008.3		)%	27.4		%
Combined ratio	42.9		%	78.8		%	121.0		%	(10,194.4		)%	57.8		%

(1) Included in gross premiums written in the Other category is inter-segment gross premiums written of $0.5 million.

The following is a summary of the Company’s gross premiums written allocated to the territory of coverage exposure:




Year ended December 31,	2014		2013			2012
Catastrophe Reinsurance
U.S. and Caribbean	$	573,696	$	782,211		$	857,740
Worldwide	157,674		99,179			81,595
Worldwide (excluding U.S.) (1)	123,476		146,048			139,265
Japan	31,484		39,060			43,238
Europe	25,353		25,659			37,113
Australia and New Zealand	20,807		22,460			18,578
Other	1,479		5,762			4,678
Total Catastrophe Reinsurance	933,969		1,120,379			1,182,207
Specialty Reinsurance
U.S. and Caribbean	169,045		91,203			69,070
Worldwide	161,329		151,879			96,081
Australia and New Zealand	6,898		12,068			28,307
Worldwide (excluding U.S.) (1)	7,506		1,661			—
Europe	460		2,612			16,429
Other	1,400		66			—
Total Specialty Reinsurance	346,638		259,489			209,887
Lloyd’s
U.S. and Caribbean	120,066		88,535			57,332
Worldwide	118,190		104,249			75,132
Worldwide (excluding U.S.) (1)	13,655		8,071			6,064
Europe	7,609		14,763			14,456
Australia and New Zealand	2,907		2,948			2,152
Other	7,229		7,966			4,851
Total Lloyd’s	269,656		226,532			159,987
Other category (2)	309		(988		)	(490		)
Total gross premiums written	$	1,550,572	$	1,605,412		$	1,551,591


(1)	The category “Worldwide (excluding U.S.)” consists of contracts that cover more than one geographic region (other than the U.S.). The exposure in this category for gross premiums written to date is predominantly from Europe and Japan.


(2)	The Other category consists of contracts that are primarily exposed to U.S. risks and includes inter-segment gross premiums written of $0.3 million for the year ended December 31, 2014 (2013 - $(1.0) million, 2012 - $(0.5) million).