EX-99.1 2 rnr2015q4earningsrelease.htm COPY OF THE COMPANY'S EARNINGS RELEASE
RenaissanceRe Reports Net Income of $92.2 Million for the Fourth Quarter of 2015 or $2.09 Per Diluted Common Share; Quarterly Operating Income of $135.0 Million or $3.07 Per Diluted Common Share
Annual Net Income of $408.8 million for 2015 or $9.28 Per Diluted Common Share; Annual Operating Income of $477.7 million or $10.86 Per Diluted Common Share
Pembroke, Bermuda, February 2, 2016 -- RenaissanceRe Holdings Ltd. (NYSE: RNR) (the “Company” or “RenaissanceRe”) today reported net income available to RenaissanceRe common shareholders of $92.2 million, or $2.09 per diluted common share, in the fourth quarter of 2015, compared to $170.8 million, or $4.42 per diluted common share, respectively, in the fourth quarter of 2014. Operating income available to RenaissanceRe common shareholders was $135.0 million, or $3.07 per diluted common share, in the fourth quarter of 2015, compared to $140.3 million, or $3.62 per diluted common share, respectively, in the fourth quarter of 2014. The Company reported an annualized return on average common equity of 8.5% and an annualized operating return on average common equity of 12.5% in the fourth quarter of 2015, compared to 20.1% and 16.5%, respectively, in the fourth quarter of 2014. Book value per common share increased $1.72, or 1.8%, in the fourth quarter of 2015 to $99.13, compared to a 5.1% increase in the fourth quarter of 2014. Tangible book value per common share plus accumulated dividends increased 2.3% in the fourth quarter of 2015, compared to a 5.5% increase in the fourth quarter of 2014.
For 2015, the Company reported net income available to RenaissanceRe common shareholders of $408.8 million, or $9.28 per diluted common share, compared to $510.3 million, or $12.60 per diluted common share in 2014. Operating income available to RenaissanceRe common shareholders was $477.7 million, or $10.86 per diluted common share in 2015, compared to $468.9 million, or $11.56 per diluted common share in 2014. The Company reported a return on average common equity of 9.8% and an operating return on average common equity of 11.4% in 2015, compared to 14.9% and 13.7%, respectively, in 2014. Book value per common share increased $8.98, or 10.0%, in 2015 to $99.13, compared to a 12.3% increase in 2014. Tangible book value per common share plus accumulated dividends increased 5.0% in 2015, compared to a 13.9% increase in 2014.
Kevin J. O'Donnell, CEO, commented: "I am pleased to report $135.0 million of operating income, an annualized operating ROE of 12.5% and 2.3% growth in tangible book value per share plus accumulated dividends for the quarter. In a year in which we acquired and fully integrated Platinum, we generated solid operating income of $477.7 million for the year and delivered an operating ROE of 11.4%."
Mr. O'Donnell continued: "Our underwriting team executed well during the most recent renewal period, as pressure on pricing from abundant capacity persisted. We maintained discipline, coming off business that did not meet our return hurdles, buying more reinsurance protection, while also building an attractive portfolio of risks. We are a bigger, stronger company today, than a year ago, and have the management team, global operating platforms and risk management expertise to serve our clients, third party capital providers and shareholders well in the years ahead."
FOURTH QUARTER 2015 HIGHLIGHTS

• | Gross premiums written of $336.1 million increased $203.3 million, or 153.1%, in the fourth quarter of 2015, compared to the fourth quarter of 2014, with the Company’s Specialty Reinsurance, Catastrophe Reinsurance and Lloyd’s segments experiencing increases of $195.5 million, or 271.8%, $2.4 million, or 24.2%, and $5.8 million, or 11.4%, respectively, in the fourth quarter of 2015.

• | The Company generated underwriting income of $139.9 million and a combined ratio of 61.3% in the fourth quarter of 2015, compared to $173.5 million and 32.3%, respectively, in the fourth quarter of 2014. The decrease in underwriting income was primarily driven by a $114.0 million increase in net claims and claim expenses incurred and a $24.7 million increase in underwriting expenses, each principally driven by the $105.1 million increase in net premiums earned. Impacting net claims and claim expenses incurred in the fourth quarter of 2015, compared to the fourth quarter of 2014, was a $66.2 million increase in current accident year net claims and claim expenses and a $47.8 million decrease in favorable development on prior accident years net claims and claim expenses. Favorable development on prior accident years net claims and claim expenses was $36.9 million in the fourth quarter of 2015, compared to $84.7 million in the fourth quarter of 2014.

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• | The Company’s total investment result, which includes the sum of net investment income and net realized and unrealized (losses) gains on investments, was $2.8 million in the fourth quarter of 2015, compared to $56.1 million in the fourth quarter of 2014, a decrease of $53.2 million. The total investment result during the fourth quarter of 2015 was primarily driven by net unrealized losses in the Company’s portfolio of fixed maturity investments trading, principally the result of an upward shift in the yield curve driven by the increasing interest rate environment, combined with lower net realized and unrealized gains in the Company’s portfolio of equity investments trading, primarily the result of lower returns related to one large equity position, partially offset by higher average invested assets in this portfolio. Offsetting these items was an increase in net investment income in the Company’s portfolio of fixed maturity investments primarily driven by an increase in average invested assets and net realized and unrealized gains on investments-related derivatives due to the increasing interest rate environment.

• | During the fourth quarter of 2015, the Company repurchased an aggregate of 447 thousand common shares in open market transactions at an aggregate cost of $48.4 million and at an average share price of $108.33. Subsequent to December 31, 2015 and through the period ended February 1, 2016, the Company repurchased 339 thousand common shares in open market transactions at an aggregate cost of $37.3 million and at an average share price of $110.07.

Underwriting Results by Segment
Catastrophe Reinsurance Segment
Gross premiums written in the Catastrophe Reinsurance segment were relatively flat at $12.3 million in the fourth quarter of 2015, compared to $9.9 million in the fourth quarter of 2014. Managed catastrophe premiums were also relatively flat at $17.1 million in the fourth quarter of 2015, compared to $15.1 million in the fourth quarter of 2014.
The Catastrophe Reinsurance segment generated underwriting income of $132.5 million and a combined ratio of 15.4% in the fourth quarter of 2015, compared to $133.0 million and negative 2.0% in the fourth quarter of 2014, respectively. Impacting underwriting income in the Catastrophe Reinsurance segment for the fourth quarter of 2015, compared to the fourth quarter of 2014, was a $26.2 million increase in net premiums earned, which was offset by a $31.0 million increase in net claims and claim expenses incurred, which included a $19.4 million decrease in favorable development on prior accident years net claims and claim expenses. During the fourth quarter of 2015, the Company recognized a recovery and corresponding reduction to acquisition expenses in its Catastrophe Reinsurance segment of $7.7 million associated with the December 2015 decision by the Internal Revenue Service to revoke an excise tax previously imposed on foreign to foreign retrocessions.
The Company experienced $28.0 million of favorable development on prior accident year net claims and claim reserves within its Catastrophe Reinsurance segment during the fourth quarter of 2015, compared to $47.4 million in the fourth quarter of 2014. The $28.0 million of favorable development was principally driven by a reduction in ultimate losses on certain events, including $8.9 million related to Storm Sandy, $4.9 million related to the April and May 2011 U.S. Tornadoes and $4.5 million related to a number of 2014 U.S. weather events, with the remainder related to a number of other catastrophe events.
Specialty Reinsurance Segment
Gross premiums written in the Specialty Reinsurance segment were $267.4 million in the fourth quarter of 2015, an increase of $195.5 million, or 271.8%, compared to the fourth quarter of 2014, primarily driven by increases of$122.5 million and $52.9 million in the Specialty Reinsurance segment’s credit and casualty lines of business, respectively. The $122.5 million increase in the credit line of business in the fourth quarter of 2015 was principally driven by the inception of a number of new mortgage-related reinsurance contracts. The Company’s Specialty Reinsurance segment premiums are prone to significant volatility as this business can be influenced by a relatively small number of relatively large transactions.
The Specialty Reinsurance segment generated underwriting income of $16.9 million and a combined ratio of 88.9% in the fourth quarter of 2015, compared to $26.9 million and 59.8%, respectively, in the fourth quarter of 2014. The Specialty Reinsurance segment’s underwriting income for the fourth quarter of 2015, compared to the fourth quarter of 2014, was principally driven by an $85.3 million increase in net premiums earned, driven by higher net premiums written during the preceding twelve months, which resulted in the Specialty Reinsurance segment experiencing a $55.5 million increase in current accident year net claims and claim expenses, primarily related to a higher level of attritional losses and a $28.0 million increase in underwriting expenses. Operational expenses in the Company’s Specialty Reinsurance segment have increased to support the growth in this segment.
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The Specialty Reinsurance segment experienced $8.3 million of favorable development on prior accident years net claims and claim expenses in the fourth quarter of 2015, compared to $20.0 million in the fourth quarter of 2014. The $8.3 million of favorable development was principally driven by actual reported loss activity coming in better than expected.
Lloyd’s Segment
Gross premiums written in the Lloyd’s segment were $56.4 million in the fourth quarter of 2015, an increase of $5.8 million, or 11.4%, compared to the fourth quarter of 2014, primarily due to Syndicate 1458 continuing to grow organically in the Lloyd’s marketplace, notwithstanding challenging market conditions.
The Lloyd’s segment incurred an underwriting loss of $10.4 million and a combined ratio of 119.6% in the fourth quarter of 2015, compared to generating underwriting income of $8.3 million and a combined ratio of 85.9% in the fourth quarter of 2014. The underwriting loss in the Lloyd’s segment during the fourth quarter of 2015, compared to the fourth quarter of 2014, was primarily impacted by a $12.2 million decrease in favorable development on prior accident year net claims and claim expenses and a $6.1 million decrease in net premiums earned, driven by an increase in ceded premiums earned.
The Lloyd’s segment experienced $0.2 million of adverse development on prior accident years net claims and claim expenses in the fourth quarter of 2015, compared to favorable development of $12.1 million in the fourth quarter of 2014.
Other Items

• | Net income attributable to noncontrolling interests in the fourth quarter of 2015 was $28.1 million, a decrease from $44.2 million in the fourth quarter of 2014, principally due to a decrease in the profitability of DaVinciRe. The Company’s ownership in DaVinciRe was 26.3% at December 31, 2015, compared to 23.4% at December 31, 2014.

• | During January 2016, DaVinciRe redeemed a portion of its outstanding shares from certain existing DaVinciRe shareholders, including RenaissanceRe, while new DaVinciRe shareholders purchased shares in DaVinciRe. The net redemption as a result of these transactions was $100.0 million. The Company’s noncontrolling economic ownership in DaVinciRe subsequent to these transactions was 24.0%, effective January 1, 2016.

• | Corporate expenses in the fourth quarter of 2015 were $11.0 million, compared to $10.6 million in the fourth quarter of 2014. Included in corporate expenses in the fourth quarter of 2015 was a $5.6 million impairment charge associated with the goodwill and other intangible assets of an investment in other ventures, recorded under the equity method, and $1.6 million of expenses associated with the acquisition and integration of Platinum Underwriters Holdings, Ltd. (“Platinum”), compared to $6.7 million of acquisition and integration expenses in the fourth quarter of 2014.

FULL YEAR 2015 HIGHLIGHTS

• | Gross premiums written of $2.0 billion increased $460.7 million, or 29.7%, in 2015, compared to 2014, with the increase principally driven by increases in the Company’s Specialty Reinsurance and Lloyd’s segments. Gross premiums written in the Specialty Reinsurance and Lloyd’s segments increased $419.4 million or 121.0%, and $107.1 million or 39.7%, respectively, partially offset by the Catastrophe Reinsurance segment which experienced a decrease of $65.3 million, or 7.0%.

• | The Company generated underwriting income of $494.6 million and a combined ratio of 64.7% in 2015, compared to $529.4 million and 50.2%, respectively, in 2014. The decrease in underwriting income was primarily driven by a $268.9 million increase in current accident year net claims and claim expenses and a $94.1 million increase in acquisition expenses, each principally driven by the $338.1 million increase in net premiums earned. Favorable development on prior accident years net claims and claim expenses was $162.4 million in 2015, compared to $143.8 million in 2014.

• | The Company’s total investment result, which includes the sum of net investment income, net realized and unrealized (losses) gains on investments, and the change in net unrealized gains on fixed maturity investments available for sale, was $82.4 million in 2015 compared to $164.9 million in 2014, a decrease of $82.5 million. The decrease in the total investment result was primarily due to net unrealized losses in the Company’s portfolio of fixed maturity investments trading, principally the result of an upward shift in the yield curve driven by the increasing interest rate environment, combined with unrealized losses in the Company’s portfolio of equity investments trading and lower net investment income from private equity investments. Offsetting these

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items was an increase in net investment income in the Company’s portfolio of fixed maturity investments primarily driven by an increase in average invested assets and net realized and unrealized gains on investments-related derivatives due to the increasing interest rate environment.

• | During 2015, the Company repurchased an aggregate of 2.5 million common shares in open market transactions at an aggregate cost of $259.9 million and at an average share price of $105.10.

Underwriting Results by Segment
Catastrophe Reinsurance Segment
Gross premiums written in the Catastrophe Reinsurance segment decreased by $65.3 million, or 7.0%, to $868.6 million in 2015, compared to $934.0 million in 2014. Market conditions remained challenging during 2015, and the Company continued to exercise underwriting discipline given prevailing terms and conditions. However, the Company was able to identify and underwrite certain new programs which provided opportunities the Company believes to be attractive. For 2015, managed catastrophe premiums decreased $54.8 million, or 5.3%, to $969.8 million, compared to $1.0 billion in 2014.
The Catastrophe Reinsurance segment generated underwriting income of $406.4 million and a combined ratio of 34.7% in 2015, compared to $450.1 million and 23.8%, respectively, in 2014. The $43.7 million decrease in underwriting income in the Catastrophe Reinsurance segment in 2015, compared to 2014, was primarily driven by a $73.8 million increase in net claims and claim expenses, which included a $78.7 million increase in current accident year net claims and claim expenses, partially offset by a $31.9 million increase in net premiums earned. Included in current accident year net claims and claim expenses is $27.3 million related to a number of U.S. winter storms, $21.6 million related to explosions in Tianjin, China and $21.2 million related to a U.S. wind and thunderstorm event, with the remainder due to a number of other smaller catastrophe events.
During 2015, the Company experienced $70.4 million of favorable development on prior accident year net claims and claim expenses within its Catastrophe Reinsurance segment, compared to $65.5 million in 2014. The favorable development on prior accident years net claims and claim expenses in 2015 was principally driven by $28.0 million related to 2014 U.S. winter storms and wind and thunderstorm events, $10.4 million related to Storm Sandy, $10.2 million related to the April and May 2011 U.S. Tornadoes, $4.7 million related to the 2008 Hurricanes (Gustav and Ike) and $17.0 million related to a number of other catastrophe events, each principally the result of changes in the Company’s estimated ultimate loss for each respective event.
Specialty Reinsurance Segment
Gross premiums written in the Specialty Reinsurance segment were $766.1 million in 2015, an increase of $419.4 million, or 121.0%, compared to 2014, driven primarily by increases in certain casualty and credit related lines of business while continuing to exercise underwriting discipline given prevailing terms and conditions. The Company’s specialty reinsurance premiums are prone to significant volatility as this business can be influenced by a relatively small number of relatively large transactions.
The Company’s Specialty Reinsurance segment generated underwriting income of $98.0 million and a combined ratio of 82.1% in 2015, compared to $60.7 million and 76.0%, respectively, in 2014. Impacting underwriting income in the Specialty Reinsurance segment for 2015, compared to 2014, was a $295.3 million increase in net premiums earned driven by higher net premiums written during the preceding twelve months, which resulted in the Specialty Reinsurance segment experiencing a $192.0 million increase in current accident year net claims and claim expenses due to a higher level of attritional losses and a $102.0 million increase in underwriting expenses. Operational expenses in the Company’s Specialty Reinsurance segment have increased to support the growth in this segment.
The favorable development of prior accident years net claims and claim expenses of $91.9 million in 2015, compared to $55.9 million in 2014, was primarily driven by attritional net claims and claim expenses reported coming in lower than expected on prior accident years.
Lloyd’s Segment
Gross premiums written in the Company’s Lloyd’s segment increased $107.1 million, or 39.7%, to $376.7 million in 2015, compared to $269.7 million in 2014, primarily due to Syndicate 1458 continuing to grow organically in the Lloyd’s marketplace, principally in its casualty and property lines of business, notwithstanding challenging market conditions.
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The Company’s Lloyd’s segment incurred an underwriting loss of $9.7 million and a combined ratio of 104.2% in 2015, compared to generating underwriting income of $5.8 million and a combined ratio of 97.3% in 2014. Impacting underwriting income in the Lloyd’s segment was a $16.6 million decrease in favorable development on prior accident years net claims and claim expenses.
The $12.1 million increase in underwriting expenses in the Lloyd’s segment in 2015, compared to 2014, was primarily driven by increased acquisition expenses as a result of the higher level of net premiums earned, as well as the increased proportion of quota share and delegated authority business written, which generally carry higher acquisition expenses, compared to non-proportional business.
The Lloyd’s segment experienced adverse development of prior accident years net claims and claim expenses of $0.3 million during 2015, compared to $16.2 million of favorable development of prior accident years net claims and claim expenses during 2014.
Other Items

• | Net income attributable to noncontrolling interests in 2015 was $111.1 million, a decrease from $153.5 million in 2014, principally due to a decrease in the profitability of DaVinciRe. The Company’s ownership in DaVinciRe was 26.3% at December 31, 2015, compared to 23.4% at December 31, 2014.

• | Corporate expenses increased $54.1 million to $77.1 million in 2015, compared to $23.0 million in 2014, primarily due to $53.5 million of expenses associated with the acquisition and integration of Platinum, comprised of $11.8 million of transaction-related expenses, $5.4 million of integration-related expenses and $36.3 million of compensation-related expenses.

• | The Company recognized an income tax benefit of $45.9 million in 2015, compared to an income tax expense of $608 thousand in 2014, primarily as a result of a reduction in its U.S.-based deferred tax asset valuation allowance from $48.5 million to $1.0 million in the first quarter of 2015 as a result of expected profits in its U.S.-based operations due principally to the acquisition of Platinum.

This Press Release includes certain non-GAAP financial measures including “operating income available to RenaissanceRe common shareholders”, “operating income available to RenaissanceRe common shareholders per common share - diluted”, “operating return on average common equity - annualized”, “managed catastrophe premiums”, “tangible book value per common share” and “tangible book value per common share plus accumulated dividends.” A reconciliation of such measures to the most comparable GAAP figures in accordance with Regulation G is presented in the attached supplemental financial data.
Please refer to the “Investor Information - Financial Reports - Financial Supplements” section of the Company’s website at www.renre.com for a copy of the Financial Supplement which includes additional information on the Company’s financial performance.
RenaissanceRe Holdings Ltd. will host a conference call on Wednesday, February 3, 2016 at 10:00 am (ET) to discuss this release. Live broadcast of the conference call will be available through the “Investor Information - Company Webcasts” section of RenaissanceRe’s website at www.renre.com.
RenaissanceRe Holdings Ltd. is a global provider of reinsurance and insurance. The Company’s business consists of three 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 RenaissanceRe Syndicate 1458.
Cautionary Statement Regarding Forward Looking Statements
Any forward-looking statements made in this Press Release reflect RenaissanceRe’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are subject to numerous factors that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements, including the following: the frequency and severity of catastrophic and other events that the Company covers; the effectiveness of the Company’s claims and claim expense reserving process; the Company’s ability to maintain its financial strength ratings; the effect of climate change on the Company’s business; the effect of emerging claims and coverage issues; the Company’s reliance on a small and decreasing number of reinsurance brokers and other distribution services for the preponderance of its revenue; the Company’s exposure to credit loss from
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counterparties in the normal course of business; the effect of continued challenging economic conditions throughout the world; continued soft reinsurance underwriting market conditions; a contention by the Internal Revenue Service that Renaissance Reinsurance Ltd., or any of the Company’s other Bermuda subsidiaries, is subject to U.S. taxation; the performance of the Company’s investment portfolio; the Company’s ability to successfully implement its business strategies and initiatives; the Company’s ability to retain key senior officers and to attract or retain the executives and employees necessary to manage its business; the Company’s ability to determine the impairments taken on investments; the availability of retrocessional reinsurance on acceptable terms; the effect of inflation; the adequacy of the Company’s ceding companies’ ability to assess the risks they underwrite; the effect of operational risks, including system or human failures; the Company’s ability to effectively manage capital on behalf of investors in joint ventures or other entities it manages; foreign currency exchange rate fluctuations; the Company’s ability to raise capital if necessary; the Company’s ability to comply with covenants in its debt agreements; changes to the regulatory systems under which the Company operates; challenges to the claim of exemption from insurance regulation of RenaissanceRe and its subsidiaries and increased global regulation of the insurance and reinsurance industry; losses that the Company could face from terrorism, political unrest or war; the Company’s dependence on the ability of its operating subsidiaries to declare and pay dividends; the success of any of the Company’s strategic investments or acquisitions, including the Company’s ability to manage its operations as its product and geographical diversity increases; the effect of cybersecurity risks, including technology breaches or failure on the Company’s business; aspects of the Company’s corporate structure that may discourage third party takeovers or other transactions; the cyclical nature of the reinsurance and insurance industries; adverse legislative developments that reduce the size of the private markets the Company serves or impede their future growth; regulatory or legislative changes adversely impacting the Company; the effect on the Company’s business of the highly competitive nature of its industry, including the effect of new entrants to, competing products for and consolidation in the (re)insurance industry; consolidation of customers or insurance and reinsurance brokers; adverse tax developments, including potential changes to the taxation of inter-company or related party transactions, or changes to the tax treatment of investors in RenaissanceRe or joint ventures or other entities the Company manages; changes in regulatory regimes and/or accounting rules, including the European Union directive concerning capital adequacy, risk management and regulatory reporting for insurers; the Company’s need to make many estimates and judgments in the preparation of its financial statements; and other factors affecting future results disclosed in RenaissanceRe’s filings with the SEC, including its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.

INVESTOR CONTACT: | MEDIA CONTACT:
Rohan Pai | Kekst and Company
Director - Corporate Finance | Peter Hill or Dawn Dover
RenaissanceRe Holdings Ltd. | (212) 521-4800
(441) 295-4513 |

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RenaissanceRe Holdings Ltd.
Summary Consolidated Statements of Operations
(in thousands of United States Dollars, except per share amounts and percentages)
(Unaudited)
| Three months ended |  | Twelve months ended
| December 31, 2015 |  | December 31, 2014 |  | December 31, 2015 |  | December 31, 2014
Revenues |  |  |  |  |  |  |
Gross premiums written | $ | 336,093 |  |  | $ | 132,780 |  |  | $ | 2,011,310 |  |  | $ | 1,550,572 |
Net premiums written | $ | 236,651 |  |  | $ | 111,769 |  |  | $ | 1,416,183 |  |  | $ | 1,068,236 |
Decrease (increase) in unearned premiums | 124,924 |  |  | 144,718 |  |  | (15,632 | ) |  | (5,820 | )
Net premiums earned | 361,575 |  |  | 256,487 |  |  | 1,400,551 |  |  | 1,062,416 |
Net investment income | 45,918 |  |  | 25,886 |  |  | 152,567 |  |  | 124,316 |
Net foreign exchange gains (losses) | 1,203 |  |  | (107 | ) |  | (3,051 | ) |  | 6,260 |
Equity in earnings of other ventures | 3,296 |  |  | 4,838 |  |  | 20,481 |  |  | 26,075 |
Other income (loss) | 8,200 |  |  | 1,219 |  |  | 13,472 |  |  | (423 | )
Net realized and unrealized (losses) gains on investments | (42,817 | ) |  | 30,475 |  |  | (68,918 | ) |  | 41,433 |
Total revenues | 377,375 |  |  | 318,798 |  |  | 1,515,102 |  |  | 1,260,077 |
Expenses |  |  |  |  |  |  |
Net claims and claim expenses incurred | 102,013 |  |  | (12,003 | ) |  | 448,238 |  |  | 197,947 |
Acquisition expenses | 55,399 |  |  | 39,749 |  |  | 238,592 |  |  | 144,476 |
Operational expenses | 64,300 |  |  | 55,202 |  |  | 219,112 |  |  | 190,639 |
Corporate expenses | 10,982 |  |  | 10,583 |  |  | 77,114 |  |  | 22,987 |
Interest expense | 10,359 |  |  | 4,289 |  |  | 35,670 |  |  | 17,164 |
Total expenses | 243,053 |  |  | 97,820 |  |  | 1,018,726 |  |  | 573,213 |
Income before taxes | 134,322 |  |  | 220,978 |  |  | 496,376 |  |  | 686,864 |
Income tax (expense) benefit | (8,453 | ) |  | (401 | ) |  | 45,866 |  |  | (608 | )
Net income | 125,869 |  |  | 220,577 |  |  | 542,242 |  |  | 686,256 |
Net income attributable to noncontrolling interests | (28,068 | ) |  | (44,215 | ) |  | (111,050 | ) |  | (153,538 | )
Net income available to RenaissanceRe | 97,801 |  |  | 176,362 |  |  | 431,192 |  |  | 532,718 |
Dividends on preference shares | (5,595 | ) |  | (5,595 | ) |  | (22,381 | ) |  | (22,381 | )
Net income available to RenaissanceRe common shareholders | $ | 92,206 |  |  | $ | 170,767 |  |  | $ | 408,811 |  |  | $ | 510,337 |
Net income available to RenaissanceRe common shareholders per common share - basic | $ | 2.11 |  |  | $ | 4.46 |  |  | $ | 9.36 |  |  | $ | 12.77 |
Net income available to RenaissanceRe common shareholders per common share - diluted | $ | 2.09 |  |  | $ | 4.42 |  |  | $ | 9.28 |  |  | $ | 12.60 |
Average shares outstanding - basic | 43,131 |  |  | 37,752 |  |  | 43,157 |  |  | 39,425 |
Average shares outstanding - diluted | 43,513 |  |  | 38,145 |  |  | 43,526 |  |  | 39,968 |
Net claims and claim expense ratio | 28.2 | % |  | (4.7 | )% |  | 32.0 | % |  | 18.6 | %
Underwriting expense ratio | 33.1 | % |  | 37.0 | % |  | 32.7 | % |  | 31.6 | %
Combined ratio | 61.3 | % |  | 32.3 | % |  | 64.7 | % |  | 50.2 | %
Operating income available to RenaissanceRe common shareholders per common share - diluted (1) | $ | 3.07 |  |  | $ | 3.62 |  |  | $ | 10.86 |  |  | $ | 11.56 |
Operating return on average common equity - annualized (1) | 12.5 | % |  | 16.5 | % |  | 11.4 | % |  | 13.7 | %

(1) | See Comments on Regulation G for a reconciliation of non-GAAP financial measures.

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RenaissanceRe Holdings Ltd.
Summary Consolidated Balance Sheets
(in thousands of United States Dollars, except per share amounts)
| December 31, 2015 |  | December 31, 2014
Assets | (Unaudited) |  | (Audited)
Fixed maturity investments trading, at fair value | $ | 6,765,005 |  |  | $ | 4,756,685 |
Fixed maturity investments available for sale, at fair value | 17,813 |  |  | 26,885 |
Total fixed maturity investments, at fair value | 6,782,818 |  |  | 4,783,570 |
Short term investments, at fair value | 1,208,401 |  |  | 1,013,222 |
Equity investments trading, at fair value | 393,877 |  |  | 322,098 |
Other investments, at fair value | 481,621 |  |  | 504,147 |
Investments in other ventures, under equity method | 132,351 |  |  | 120,713 |
Total investments | 8,999,068 |  |  | 6,743,750 |
Cash and cash equivalents | 506,885 |  |  | 525,584 |
Premiums receivable | 778,009 |  |  | 440,007 |
Prepaid reinsurance premiums | 230,671 |  |  | 94,810 |
Reinsurance recoverable | 134,526 |  |  | 66,694 |
Accrued investment income | 39,749 |  |  | 26,509 |
Deferred acquisition costs | 199,380 |  |  | 110,059 |
Receivable for investments sold | 220,834 |  |  | 52,390 |
Other assets | 186,595 |  |  | 135,845 |
Goodwill and other intangibles | 265,154 |  |  | 7,902 |
Total assets | $ | 11,560,871 |  |  | $ | 8,203,550 |
Liabilities, Noncontrolling Interests and Shareholders’ Equity |  |  |
Liabilities |  |  |
Reserve for claims and claim expenses | $ | 2,767,045 |  |  | $ | 1,412,510 |
Unearned premiums | 889,102 |  |  | 512,386 |
Debt | 966,079 |  |  | 249,522 |
Reinsurance balances payable | 523,974 |  |  | 454,580 |
Payable for investments purchased | 391,378 |  |  | 203,021 |
Other liabilities | 245,145 |  |  | 374,108 |
Total liabilities | 5,782,723 |  |  | 3,206,127 |
Redeemable noncontrolling interest | 1,045,964 |  |  | 1,131,708 |
Shareholders’ Equity |  |  |
Preference shares | 400,000 |  |  | 400,000 |
Common shares | 43,701 |  |  | 38,442 |
Additional paid-in capital | 507,674 |  |  | — |
Accumulated other comprehensive income | 2,108 |  |  | 3,416 |
Retained earnings | 3,778,701 |  |  | 3,423,857 |
Total shareholders’ equity attributable to RenaissanceRe | 4,732,184 |  |  | 3,865,715 |
Total liabilities, noncontrolling interests and shareholders’ equity | $ | 11,560,871 |  |  | $ | 8,203,550 |
Book value per common share | $ | 99.13 |  |  | $ | 90.15 |

8

RenaissanceRe Holdings Ltd.
Supplemental Financial Data - Segment Information
(in thousands of United States Dollars, except percentages)
(Unaudited)
| Three months ended December 31, 2015
| Catastrophe Reinsurance |  | Specialty Reinsurance |  | Lloyd’s |  | Other |  | Total
Gross premiums written | $ | 12,326 |  |  | $ | 267,375 |  |  | $ | 56,392 |  |  | $ | — |  |  | $ | 336,093 |
Net premiums written | $ | 9,057 |  |  | $ | 183,140 |  |  | $ | 44,413 |  |  | $ | 41 |  |  | $ | 236,651 |
Net premiums earned | $ | 156,601 |  |  | $ | 152,137 |  |  | $ | 52,796 |  |  | $ | 41 |  |  | $ | 361,575 |
Net claims and claim expenses incurred | (9,715 | ) |  | 77,840 |  |  | 34,716 |  |  | (828 | ) |  | 102,013 |
Acquisition expenses | 6,248 |  |  | 36,439 |  |  | 12,712 |  |  | — |  |  | 55,399 |
Operational expenses | 27,528 |  |  | 20,946 |  |  | 15,741 |  |  | 85 |  |  | 64,300 |
Underwriting income (loss) | $ | 132,540 |  |  | $ | 16,912 |  |  | $ | (10,373 | ) |  | $ | 784 |  |  | 139,863 |
Net investment income |  |  |  |  |  |  | 45,918 |  |  | 45,918 |
Net foreign exchange gains |  |  |  |  |  |  | 1,203 |  |  | 1,203 |
Equity in earnings of other ventures |  |  |  |  |  |  | 3,296 |  |  | 3,296 |
Other income |  |  |  |  |  |  | 8,200 |  |  | 8,200 |
Net realized and unrealized losses on investments |  |  |  |  |  |  | (42,817 | ) |  | (42,817 | )
Corporate expenses |  |  |  |  |  |  | (10,982 | ) |  | (10,982 | )
Interest expense |  |  |  |  |  |  | (10,359 | ) |  | (10,359 | )
Income before taxes and noncontrolling interests |  |  |  |  |  |  |  |  | 134,322 |
Income tax expense |  |  |  |  |  |  | (8,453 | ) |  | (8,453 | )
Net income attributable to noncontrolling interests |  |  |  |  |  |  | (28,068 | ) |  | (28,068 | )
Dividends on preference shares |  |  |  |  |  |  | (5,595 | ) |  | (5,595 | )
Net income available to RenaissanceRe common shareholders |  |  |  |  |  |  |  |  | $ | 92,206 |
Net claims and claim expenses incurred – current accident year | $ | 18,249 |  |  | $ | 86,091 |  |  | $ | 34,549 |  |  | $ | — |  |  | $ | 138,889 |
Net claims and claim expenses incurred – prior accident years | (27,964 | ) |  | (8,251 | ) |  | 167 |  |  | (828 | ) |  | (36,876 | )
Net claims and claim expenses incurred – total | $ | (9,715 | ) |  | $ | 77,840 |  |  | $ | 34,716 |  |  | $ | (828 | ) |  | $ | 102,013 |
Net claims and claim expense ratio – current accident year | 11.7 | % |  | 56.6 | % |  | 65.4 | % |  |  |  | 38.4 | %
Net claims and claim expense ratio – prior accident years | (17.9 | )% |  | (5.4 | )% |  | 0.4 | % |  |  |  | (10.2 | )%
Net claims and claim expense ratio – calendar year | (6.2 | )% |  | 51.2 | % |  | 65.8 | % |  |  |  | 28.2 | %
Underwriting expense ratio | 21.6 | % |  | 37.7 | % |  | 53.8 | % |  |  |  | 33.1 | %
Combined ratio | 15.4 | % |  | 88.9 | % |  | 119.6 | % |  |  |  | 61.3 | %
| Three months ended December 31, 2014
| Catastrophe Reinsurance |  | Specialty Reinsurance |  | Lloyd’s |  | Other |  | Total
Gross premiums written (1) | $ | 9,923 |  |  | $ | 71,911 |  |  | $ | 50,637 |  |  | $ | 309 |  |  | $ | 132,780 |
Net premiums written | $ | 6,614 |  |  | $ | 62,233 |  |  | $ | 42,581 |  |  | $ | 341 |  |  | $ | 111,769 |
Net premiums earned | $ | 130,390 |  |  | $ | 66,846 |  |  | $ | 58,909 |  |  | $ | 342 |  |  | $ | 256,487 |
Net claims and claim expenses incurred | (40,762 | ) |  | 10,587 |  |  | 23,406 |  |  | (5,234 | ) |  | (12,003 | )
Acquisition expenses | 9,098 |  |  | 16,884 |  |  | 13,624 |  |  | 143 |  |  | 39,749 |
Operational expenses | 29,078 |  |  | 12,516 |  |  | 13,549 |  |  | 59 |  |  | 55,202 |
Underwriting income | $ | 132,976 |  |  | $ | 26,859 |  |  | $ | 8,330 |  |  | $ | 5,374 |  |  | 173,539 |
Net investment income |  |  |  |  |  |  | 25,886 |  |  | 25,886 |
Net foreign exchange losses |  |  |  |  |  |  | (107 | ) |  | (107 | )
Equity in earnings of other ventures |  |  |  |  |  |  | 4,838 |  |  | 4,838 |
Other income |  |  |  |  |  |  | 1,219 |  |  | 1,219 |
Net realized and unrealized gains on investments |  |  |  |  |  |  | 30,475 |  |  | 30,475 |
Corporate expenses |  |  |  |  |  |  | (10,583 | ) |  | (10,583 | )
Interest expense |  |  |  |  |  |  | (4,289 | ) |  | (4,289 | )
Income before taxes and noncontrolling interests |  |  |  |  |  |  |  |  | 220,978 |
Income tax expense |  |  |  |  |  |  | (401 | ) |  | (401 | )
Net income attributable to noncontrolling interests |  |  |  |  |  |  | (44,215 | ) |  | (44,215 | )
Dividends on preference shares |  |  |  |  |  |  | (5,595 | ) |  | (5,595 | )
Net income available to RenaissanceRe common shareholders |  |  |  |  |  |  |  |  | $ | 170,767 |
Net claims and claim expenses incurred – current accident year | $ | 6,605 |  |  | $ | 30,602 |  |  | $ | 35,472 |  |  | $ | — |  |  | $ | 72,679 |
Net claims and claim expenses incurred – prior accident years | (47,367 | ) |  | (20,015 | ) |  | (12,066 | ) |  | (5,234 | ) |  | (84,682 | )
Net claims and claim expenses incurred – total | $ | (40,762 | ) |  | $ | 10,587 |  |  | $ | 23,406 |  |  | $ | (5,234 | ) |  | $ | (12,003 | )
Net claims and claim expense ratio – current accident year | 5.1 | % |  | 45.8 | % |  | 60.2 | % |  |  |  | 28.3 | %
Net claims and claim expense ratio – prior accident years | (36.4 | )% |  | (30.0 | )% |  | (20.5 | )% |  |  |  | (33.0 | )%
Net claims and claim expense ratio – calendar year | (31.3 | )% |  | 15.8 | % |  | 39.7 | % |  |  |  | (4.7 | )%
Underwriting expense ratio | 29.3 | % |  | 44.0 | % |  | 46.2 | % |  |  |  | 37.0 | %
Combined ratio | (2.0 | )% |  | 59.8 | % |  | 85.9 | % |  |  |  | 32.3 | %

(1) Included in gross premiums written in the Other category is the elimination of inter-segment gross premiums written of $0.3 million for the three months ended December 31, 2014.
9

RenaissanceRe Holdings Ltd.
Supplemental Financial Data - Segment Information
(in thousands of United States Dollars, except percentages)
(Unaudited)
| Twelve months ended December 31, 2015
| Catastrophe Reinsurance |  | Specialty Reinsurance |  | Lloyd’s |  | Other |  | Total
Gross premiums written (1) | $ | 868,631 |  |  | $ | 766,051 |  |  | $ | 376,718 |  |  | $ | (90 | ) |  | $ | 2,011,310 |
Net premiums written | $ | 557,369 |  |  | $ | 582,909 |  |  | $ | 275,953 |  |  | $ | (48 | ) |  | $ | 1,416,183 |
Net premiums earned | $ | 622,714 |  |  | $ | 548,810 |  |  | $ | 229,075 |  |  | $ | (48 | ) |  | $ | 1,400,551 |
Net claims and claim expenses incurred | 75,574 |  |  | 244,495 |  |  | 128,667 |  |  | (498 | ) |  | 448,238 |
Acquisition expenses | 47,264 |  |  | 135,811 |  |  | 55,269 |  |  | 248 |  |  | 238,592 |
Operational expenses | 93,494 |  |  | 70,525 |  |  | 54,827 |  |  | 266 |  |  | 219,112 |
Underwriting income (loss) | $ | 406,382 |  |  | $ | 97,979 |  |  | $ | (9,688 | ) |  | $ | (64 | ) |  | 494,609 |
Net investment income |  |  |  |  |  |  | 152,567 |  |  | 152,567 |
Net foreign exchange losses |  |  |  |  |  |  | (3,051 | ) |  | (3,051 | )
Equity in earnings of other ventures |  |  |  |  |  |  | 20,481 |  |  | 20,481 |
Other income |  |  |  |  |  |  | 13,472 |  |  | 13,472 |
Net realized and unrealized losses on investments |  |  |  |  |  |  | (68,918 | ) |  | (68,918 | )
Corporate expenses |  |  |  |  |  |  | (77,114 | ) |  | (77,114 | )
Interest expense |  |  |  |  |  |  | (35,670 | ) |  | (35,670 | )
Income before taxes and noncontrolling interests |  |  |  |  |  |  |  |  | 496,376 |
Income tax benefit |  |  |  |  |  |  | 45,866 |  |  | 45,866 |
Net income attributable to noncontrolling interests |  |  |  |  |  |  | (111,050 | ) |  | (111,050 | )
Dividends on preference shares |  |  |  |  |  |  | (22,381 | ) |  | (22,381 | )
Net income available to RenaissanceRe common shareholders |  |  |  |  |  |  |  |  | $ | 408,811 |
Net claims and claim expenses incurred – current accident year | $ | 145,951 |  |  | $ | 336,407 |  |  | $ | 128,327 |  |  | $ | — |  |  | $ | 610,685 |
Net claims and claim expenses incurred – prior accident years | (70,377 | ) |  | (91,912 | ) |  | 340 |  |  | (498 | ) |  | (162,447 | )
Net claims and claim expenses incurred – total | $ | 75,574 |  |  | $ | 244,495 |  |  | $ | 128,667 |  |  | $ | (498 | ) |  | $ | 448,238 |
Net claims and claim expense ratio – current accident year | 23.4 | % |  | 61.3 | % |  | 56.0 | % |  |  |  | 43.6 | %
Net claims and claim expense ratio – prior accident years | (11.3 | )% |  | (16.7 | )% |  | 0.2 | % |  |  |  | (11.6 | )%
Net claims and claim expense ratio – calendar year | 12.1 | % |  | 44.6 | % |  | 56.2 | % |  |  |  | 32.0 | %
Underwriting expense ratio | 22.6 | % |  | 37.5 | % |  | 48.0 | % |  |  |  | 32.7 | %
Combined ratio | 34.7 | % |  | 82.1 | % |  | 104.2 | % |  |  |  | 64.7 | %
| 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 | )% |  |  |  | (13.6 | )%
Net claims and claim expense ratio – calendar year | 0.3 | % |  | 34.9 | % |  | 52.3 | % |  |  |  | 18.6 | %
Underwriting expense ratio | 23.5 | % |  | 41.1 | % |  | 45.0 | % |  |  |  | 31.6 | %
Combined ratio | 23.8 | % |  | 76.0 | % |  | 97.3 | % |  |  |  | 50.2 | %

(1) Included in gross premiums written in the Other category is the elimination of inter-segment gross premiums written of $(0.1) million for the twelve months ended December 31, 2015 (2014 - $0.3 million).
10

RenaissanceRe Holdings Ltd.
Supplemental Financial Data - Gross Premiums Written and Managed Premiums
(in thousands of United States Dollars)
(Unaudited)
| Three months ended |  | Twelve months ended
| December 31, 2015 |  | December 31, 2014 |  | December 31, 2015 |  | December 31, 2014
Catastrophe Reinsurance Segment |  |  |  |  |  |  |
Renaissance catastrophe premiums | $ | 11,207 |  |  | $ | 10,569 |  |  | $ | 581,662 |  |  | $ | 622,934 |
DaVinci catastrophe premiums | 1,119 |  |  | (646 | ) |  | 286,969 |  |  | 311,035 |
Total Catastrophe Reinsurance segment gross premiums written | $ | 12,326 |  |  | $ | 9,923 |  |  | $ | 868,631 |  |  | $ | 933,969 |
Specialty Reinsurance Segment |  |  |  |  |  |  |
Casualty | $ | 93,004 |  |  | $ | 40,150 |  |  | $ | 356,913 |  |  | $ | 132,535 |
Credit | 141,939 |  |  | 19,401 |  |  | 257,400 |  |  | 147,720 |
Property Other | 14,176 |  |  | 7,652 |  |  | 53,005 |  |  | 21,924 |
Other | 18,256 |  |  | 4,708 |  |  | 98,733 |  |  | 44,459 |
Total Specialty Reinsurance segment gross premiums written | $ | 267,375 |  |  | $ | 71,911 |  |  | $ | 766,051 |  |  | $ | 346,638 |
Lloyd’s Segment |  |  |  |  |  |  |
Casualty | $ | 37,161 |  |  | $ | 30,562 |  |  | $ | 188,910 |  |  | $ | 131,972 |
Property Other | 14,578 |  |  | 17,179 |  |  | 81,194 |  |  | 63,631 |
Catastrophe | 2,840 |  |  | 1,985 |  |  | 69,329 |  |  | 55,366 |
Credit | 274 |  |  | (119 | ) |  | 7,770 |  |  | 741 |
Other | 1,539 |  |  | 1,030 |  |  | 29,515 |  |  | 17,946 |
Total Lloyd’s segment gross premiums written | $ | 56,392 |  |  | $ | 50,637 |  |  | $ | 376,718 |  |  | $ | 269,656 |
Managed Premiums (1) |  |  |  |  |  |  |
Total Catastrophe Reinsurance segment gross premiums written | $ | 12,326 |  |  | $ | 9,923 |  |  | $ | 868,631 |  |  | $ | 933,969 |
Catastrophe premiums written in the Lloyd’s segment | 2,840 |  |  | 1,985 |  |  | 69,329 |  |  | 55,366 |
Catastrophe premiums written on behalf of the Company’s joint venture, Top Layer Re (2) | 1,923 |  |  | 3,162 |  |  | 38,587 |  |  | 42,556 |
Catastrophe premiums written by the Company in its Catastrophe Reinsurance segment and ceded to Top Layer Re | — |  |  | — |  |  | (6,785 | ) |  | (7,355 | )
Total managed catastrophe premiums (1) | $ | 17,089 |  |  | $ | 15,070 |  |  | $ | 969,762 |  |  | $ | 1,024,536 |

(1) | See Comments on Regulation G for a reconciliation of non-GAAP financial measures.

(2) | Top Layer Re is accounted for under the equity method of accounting.

11

RenaissanceRe Holdings Ltd.
Supplemental Financial Data - Total Investment Result
(in thousands of United States Dollars)
(Unaudited)
| Three months ended |  | Twelve months ended
| December 31, 2015 |  | December 31, 2014 |  | December 31, 2015 |  | December 31, 2014
Fixed maturity investments | $ | 38,047 |  |  | $ | 26,104 |  |  | $ | 134,800 |  |  | $ | 100,855 |
Short term investments | 466 |  |  | 217 |  |  | 1,227 |  |  | 944 |
Equity investments trading | 2,038 |  |  | 1,139 |  |  | 8,346 |  |  | 3,450 |
Other investments |  |  |  |  |  |  |
Private equity investments | 8,260 |  |  | 1,579 |  |  | 9,455 |  |  | 18,974 |
Other | 891 |  |  | (463 | ) |  | 12,472 |  |  | 11,037 |
Cash and cash equivalents | 112 |  |  | 95 |  |  | 467 |  |  | 395 |
| 49,814 |  |  | 28,671 |  |  | 166,767 |  |  | 135,655 |
Investment expenses | (3,896 | ) |  | (2,785 | ) |  | (14,200 | ) |  | (11,339 | )
Net investment income | 45,918 |  |  | 25,886 |  |  | 152,567 |  |  | 124,316 |
Gross realized gains | 11,124 |  |  | 11,973 |  |  | 50,488 |  |  | 45,568 |
Gross realized losses | (13,487 | ) |  | (3,997 | ) |  | (53,630 | ) |  | (14,868 | )
Net realized (losses) gains on fixed maturity investments | (2,363 | ) |  | 7,976 |  |  | (3,142 | ) |  | 30,700 |
Net unrealized (losses) gains on fixed maturity investments trading | (52,984 | ) |  | (1,520 | ) |  | (64,908 | ) |  | 19,680 |
Net realized and unrealized gains (losses) on investments-related derivatives | 6,447 |  |  | (11,280 | ) |  | 5,443 |  |  | (30,931 | )
Net realized gains on equity investments trading | 149 |  |  | 2,330 |  |  | 16,348 |  |  | 10,908 |
Net unrealized gains (losses) on equity investments trading | 5,934 |  |  | 32,969 |  |  | (22,659 | ) |  | 11,076 |
Net realized and unrealized (losses) gains on investments | (42,817 | ) |  | 30,475 |  |  | (68,918 | ) |  | 41,433 |
Change in net unrealized gains on fixed maturity investments available for sale | (257 | ) |  | (292 | ) |  | (1,243 | ) |  | (855 | )
Total investment result | $ | 2,844 |  |  | $ | 56,069 |  |  | $ | 82,406 |  |  | $ | 164,894 |
Total investment return - annualized | 0.1 | % |  | 3.3 | % |  | 0.9 | % |  | 2.4 | %

Comments on Regulation G
In addition to the GAAP financial measures set forth in this Press Release, the Company has included certain non-GAAP financial measures within the meaning of Regulation G. The Company has provided these financial measurements in previous investor communications and the Company’s management believes that these measurements are important to investors and other interested persons, and that investors and such other persons benefit from having a consistent basis for comparison between quarters and for comparison with other companies within the industry. These measures may not, however, be comparable to similarly titled measures used by companies outside of the insurance industry. Investors are cautioned not to place undue reliance on these non-GAAP measures in assessing the Company’s overall financial performance.
The Company uses “operating income available to RenaissanceRe common shareholders” as a measure to evaluate the underlying fundamentals of its operations and believes it to be a useful measure of its corporate performance. “Operating income available to RenaissanceRe common shareholders” as used herein differs from “net income available to RenaissanceRe common shareholders,” which the Company believes is the most directly comparable GAAP measure, by the exclusion of net realized and unrealized gains and losses on investments from continuing and discontinued operations and net other-than-temporary impairments. The Company’s management believes that “operating income available to RenaissanceRe common shareholders” is useful to investors because it more accurately measures and predicts the Company’s results of operations by removing the variability arising from fluctuations in the Company’s fixed maturity investment portfolio and equity investments trading. The Company also uses “operating income available to RenaissanceRe common shareholders” to calculate “operating income available to RenaissanceRe common shareholders per common share - diluted” and “operating return on average common equity - annualized”. The following is a reconciliation of: 1) net income available to RenaissanceRe common shareholders to operating income available to RenaissanceRe common shareholders; 2)
12

net income available to RenaissanceRe common shareholders per common share - diluted to operating income available to RenaissanceRe common shareholders per common share - diluted; and 3) return on average common equity - annualized to operating return on average common equity - annualized:

| Three months ended |  | Twelve months ended
(in thousands of United States Dollars, except percentages) | December 31, 2015 |  | December 31, 2014 |  | December 31, 2015 |  | December 31, 2014
Net income available to RenaissanceRe common shareholders | $ | 92,206 |  |  | $ | 170,767 |  |  | $ | 408,811 |  |  | $ | 510,337 |
Adjustment for net realized and unrealized losses (gains) on investments | 42,817 |  |  | (30,475 | ) |  | 68,918 |  |  | (41,433 | )
Operating income available to RenaissanceRe common shareholders | $ | 135,023 |  |  | $ | 140,292 |  |  | $ | 477,729 |  |  | $ | 468,904 |
Net income available to RenaissanceRe common shareholders per common share - diluted | $ | 2.09 |  |  | $ | 4.42 |  |  | $ | 9.28 |  |  | $ | 12.60 |
Adjustment for net realized and unrealized losses (gains) on investments | 0.98 |  |  | (0.80 | ) |  | 1.58 |  |  | (1.04 | )
Operating income available to RenaissanceRe common shareholders per common share - diluted | $ | 3.07 |  |  | $ | 3.62 |  |  | $ | 10.86 |  |  | $ | 11.56 |
Return on average common equity - annualized | 8.5 | % |  | 20.1 | % |  | 9.8 | % |  | 14.9 | %
Adjustment for net realized and unrealized losses (gains) on investments | 4.0 | % |  | (3.6 | )% |  | 1.6 | % |  | (1.2 | )%
Operating return on average common equity - annualized | 12.5 | % |  | 16.5 | % |  | 11.4 | % |  | 13.7 | %

The Company has also included in this Press Release “managed catastrophe premiums”. “Managed catastrophe premiums” is defined as gross catastrophe premiums written by the Company and its related joint ventures. “Managed catastrophe premiums” differs from total Catastrophe Reinsurance segment gross premiums written, which the Company believes is the most directly comparable GAAP measure, due to the inclusion of catastrophe premiums written on behalf of the Company’s joint venture Top Layer Re, which is accounted for under the equity method of accounting, and the inclusion of catastrophe premiums written on behalf of the Company’s Lloyd’s segment. The Company’s management believes “managed catastrophe premiums” is useful to investors and other interested parties because it provides a measure of total catastrophe premiums assumed by the Company through its consolidated subsidiaries and related joint ventures.
The Company has also included in this Press Release “tangible book value per common share” and “tangible book value per common share plus accumulated dividends”. “Tangible book value per common share” is defined as book value per common share excluding goodwill and intangible assets per share. “Tangible book value per common share plus accumulated dividends” is defined as book value per common share excluding goodwill and intangible assets per share, plus accumulated dividends. “Tangible book value per common share” differs from book value per common share, which the Company believes is the most directly comparable GAAP measure, due to the exclusion of goodwill and intangible assets per share. The Company’s management believes “tangible book value per common share” and “tangible book value per common share plus accumulated dividends” are useful to investors because they provide a more accurate measure of the realizable value of shareholder returns, excluding the impact of goodwill and intangible assets.
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The following is a reconciliation of book value per common share to tangible book value per common share and tangible book value per common share plus accumulated dividends:

| At
| December 31, 2015 |  | September 30, 2015 |  | June 30, 2015 |  | March 31, 2015 |  | December 31, 2014
Book value per common share | $ | 99.13 |  |  | $ | 97.41 |  |  | $ | 96.43 |  |  | $ | 95.21 |  |  | $ | 90.15 |
Adjustment for goodwill and other intangibles (1) | (6.59 | ) |  | (6.65 | ) |  | (6.51 | ) |  | (6.64 | ) |  | (0.86 | )
Tangible book value per common share | 92.54 |  |  | 90.76 |  |  | 89.92 |  |  | 88.57 |  |  | 89.29 |
Adjustment for accumulated dividends | 15.48 |  |  | 15.18 |  |  | 14.88 |  |  | 14.58 |  |  | 14.28 |
Tangible book value per common share plus accumulated dividends | $ | 108.02 |  |  | $ | 105.94 |  |  | $ | 104.80 |  |  | $ | 103.15 |  |  | $ | 103.57 |
Quarterly change in book value per common share | 1.8 | % |  | 1.0 | % |  | 1.3 | % |  | 5.6 | % |  | 5.1 | %
Quarterly change in tangible book value per common share plus change in accumulated dividends | 2.3 | % |  | 1.3 | % |  | 1.9 | % |  | (0.5 | )% |  | 5.5 | %
Year to date change in book value per common share | 10.0 | % |  |  |  |  |  |  |  | 12.3 | %
Year to date change in tangible book value per common share plus change in accumulated dividends | 5.0 | % |  |  |  |  |  |  |  | 13.9 | %

(1) | At December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015 and December 31, 2014, goodwill and other intangibles included $23.2 million, $22.9 million, $23.5 million, $24.4 million and $25.3 million, respectively, of goodwill and other intangibles included in investments in other ventures, under equity method.

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